Retail management in gul ahmed ideas

7/24/2019 Retail management in gul ahmed ideas

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Retail Management in Gul

AhmedFinal Project

Prepared By:

Tanzeel-e-Rahman Khan13125

Zaeem Munawar 13118

Arslan Khalil13127

Adullah Muzaffar13165

Fatima Rauf13169

Asif Sultan13125

Submitted to: Mr. Asim Jameel


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Acknowledgment

We would like to express our special appreciation and thanks to our

advisor Mr Asim Jameel, you have been a tremendous mentor for us. We

would like to thank you for encouraging our project and for allowing us to

grow as better citizens. Your advice on both project as well as on our career

have been priceless. We would also like to thank Gul Ahmedand their Staff

for their courteous cooperation and, they have also been helpful for our project

and they have been modes of guidance and motivation. I also want to thank

my mentor Mr. Asim Jameel for letting my project be an enjoyableexperience, and for your brilliant comments and suggestions, thanks to you. I

would also like to thank my group members for their hard work and support.

Your contribution will be building blocks of our foundation. All of you have

been there to support us in the execution of our project.

Regards:

M.Tanzeel-e-Rahman Khan(Group Leader)


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Table of Contents

1 Introduction__________________________________________________________________ 4

2 Question (A) Identify the type of retail outlet, and type of ownership. (Department, drug,

confectionery, restaurant, service, single store, retail chain). _______________________________ 5

3 Question (B) Defined the retail strategy, described the target market, and identify the

competitors, of the store? __________________________________________________________ 5

3.1 Target market:____________________________________________________________ 5

3.2 Retail strategy: ___________________________________________________________ 6

3.3 Competitor analysis _______________________________________________________ 6

4 Question (C) Is the store management making efforts building sustainable competitive

advantage? If so how? Narrate in briefly. _______________________________________________ 7

4.1 Sustainable competitive advantage ___________________________________________ 7

4.2 Store location ____________________________________________________________ 7

4.3 Store interior and exterior __________________________________________________ 8

4.4 Employees _______________________________________________________________ 8

4.5 Products Assortment ______________________________________________________ 8

4.6 Ownership combination ____________________________________________________ 9

4.7 Company owned distribution network ________________________________________ 10

5 Questioned (D) What kind of vendor relations do they have? Are the deriving any kind of

benefit out of that relationship? Pen down to the details. ________________________________ 10

6 Question (E) How does the retailer motivate its employees does it help in retaining them? __ 11

7 Question (F) How do they keep the operation no cost? And build multiple sources of

advantage? _____________________________________________________________________ 12

7.1 Having their own distribution network ________________________________________ 12

7.2 Warehouse management systems and inventory databases _______________________ 12

7.3 Minimising wastages ______________________________________________________ 12

8 Question (G) What kind of growth strategies do they follow, Like market penetration, market

expansion, retail format development, and or diversification? _____________________________ 13

9 Question (H) How do they define their mission statement? And write down the mission

statement. ______________________________________________________________________ 13

9.1 Mission statement _______________________________________________________ 13

9.2 How they define it? _______________________________________________________ 13

10 Question (I) Carry out swot analysis of the store. _________________________________ 14

10.1 Question (J) Whether the basis of selecting the retail site? Please give details. ________ 15

11 Question (K) What kind of retail organisation structure do they have? Please narrate briefly15

12 Question (L) What kind of incentives do they offer to their employees? _______________ 16

13 Question (M) How do they build employs commitment? ___________________________ 16


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14 Question (N) How dothey evaluate store employees and provide feedback? ___________ 17

15 Question (O) What steps do they take to detect/prevent shoplifting? _________________ 17

15.1 RFID tags _______________________________________________________________ 18

15.2 Theft detection system and chips ____________________________________________ 18

15.3 Inventory database _______________________________________________________ 18

15.4 Periodic surprise inspections _______________________________________________ 18

16 Question (P) What is your overall evaluation of the store? And what are your suggestions to

further improve the stores business? Also evaluate the location of the store includingthe strengths

and weaknesses of the location. _____________________________________________________ 19


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1

INTRODUCTION

The Gul Ahmed group in the Pakistani company

that includes Gul Ahmed Textile Mills, Gul

Ahmed Energy and Habib Metropolitan Bank.

More recently, a chain of retail outlets has been

founded under the name ideas by Gul Ahmed.

The groups concerns go by the name of Swisstex

chemicals (private) Ltd, which is a large

chemical distribution company that has the sole rights for supplying Ciba speciality chemicals

in Pakistan. The Gul Ahmed group began trading textiles in the early 20thcentury. In 1953 the

group decided to enter the field of manufacturing under the name of Gul Ahmed textile Mills

Ltd, and was incorporated as a private limited company. In 1972, it was listed on the Karachi

stock exchange. Since then, the company has made rapid progress and is currently one of the

leading composite textile houses in the world.

Gul Ahmeds fine textile products represent a unique fusion of the century old traditions of the

East and the latest textile technology of the West. The purest of cotton fibres, produced from

the fertile lands of Indus Valley, are spun, woven and processed into the finest quality cotton

and blended products through a combination of latest technology, skills and craftsmanship of

this traditional industry. Overall Gul Ahmed is one of the largest textile industry of Pakistan

which is providing its services locally and globally.

The purpose of this project is to analyse the retail strategies being practised in Ideas, the retail

store chain of Gul Ahmed. We have selected model town Link Road branch of Ideas and we

collected all the information written below from the branch manager. We will be discussing

details according to the given questions format by Mr. Asim Jameel. We will try our level bestto be precise and as brief as we can be, so that the given information is not misunderstood or

misinterpreted by the readers. Although the information provided below is collected by

interviewing the store staff mainly the branch manager, and is written as is. The authenticity of

the given information is not guaranteed due to different opinions and point of views of the

branch staff while the official and verified information can only be collected by making

requests to the corporate offices of the firm. We are only able to collect the relevant information

by requesting the outlet staff, and we consider this information to be close to real life situations


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because the employee statements are based on the daily experiences. The specified questions

are written below with the brief answers.

2 QUESTION A)IDENTIFY THE TYPE OF RETAIL OUTLET,AND TYPE OF

OWNERSHIP. DEPARTMENT,DRUG,CONFECTIONERY,RESTAURANT,

SERVICE,SINGLE STORE,RETAIL CHAIN).

Ideas is a very famous fashion retail chain in

Pakistan owned by one of the biggest textile houses

in the country. They offer fabric, apparel, home

textile, accessories, shoes and bags in both ladies and

gents varieties. Ideas offer exclusive distribution of

products available only in ideas outlets, and nowhere

else. Ideas have more than 65 outlets all over

Pakistan and most of these outlets company-owned and some of these outlets are franchised to

other partners.

Most of the outlets located in the metropolitan cities like Lahore, Islamabad, Karachi etc. are

company-owned and are very few outlets are franchised located in less crowded areas. In

Lahore only one or two outlets are franchised and all other outlets are company-owned. But in

other smaller cities most of the outlets are franchised to business partners.

3 QUESTION B)DEFINED THE RETAIL STRATEGY,DESCRIBED THE TARGET

MARKET,AND IDENTIFY THE COMPETITORS,OF THE STORE?

3.1

TARGET MARKET:The main target market for ideas is adult males and

females belonging to middle and upper class and

from all adult ages. A very small section targets kids

with a very limited assortment for them in that area.

Currently they are focusing mainly on the ladies

products and they are offering a very wide variety of

both Eastern and Western ladies ready to wear


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products, unstitched fabrics, apparel, bags, shoes and accessories. For men they are offering

apparel, good variety of high quality unstitched fabric, and some assortment of accessories like

cufflinks, ties, belts, socks and wallets.

The fabric ranges from lawn, cotton, viscose, silk, Khaddar, chiffon, corduroy, velvet silk etc.

Some of the famous collections are G-Pret, G-Women, G-Silk, G-Mom etc.

They are also offering home fabric products like bedroom textile, bed linen, kitchen textile,

bath accessories and other Textile accessories like quilts, blankets, cushion covers, tablecloths,

pillow covers, towels and bathrobes etc. Their most selling products are from ladies section

and it represents large portion of their sales.

3.2

R

ETAIL STRATEGY

:

they have a very strong network of more than 65 outlets all over Pakistan, many of them are

company-owned, which gives them independence and allows them to implement their set

standards and organisational values and they have been very successfully able to create a very

strong brand image in the market. They are following rapid expansion strategies and are

moving in areas where they are not yet present.

3.3

C

OMPETITOR ANALYSIS

The main competitors are Khaddi, Chen One, Bareeze, Chinyere etc. lets discuss each of them

one by one:

3.3.1 Khaddi

Khaadi is a Pakistani multinational luxury fashion house founded in 1998 by Shamoon Sultan.

It specialises in handwoven technique, products include unstitched lawn, menswear, luxury

Pret, childrens clothing, shoes, bags and jewelry. Khaadi have more than 35 stores in Pakistan

as a lay stores in UAE, Malaysia and the United Kingdom.

It one as a best high-street brand at 13th Lux style awards in 2014. It is currently developing a

Western fashion brand Khaadi West. And a 22,000 ft. Khaadi store under construction at

Karachis dolmen mall Clifton.

3.3.2 Chen One

Chen one is a chain of fashion stores owned by Chenab group (based in Faisalabad, Pakistan).

The 1st ChenOne store was opened in 1997 at Islamabad. ChenOne has stores located in

Pakistan and Middle East. Fashion products by Chen one are featured in the fashion magazines

of Pakistan. The ChenOne kiosks are attraction in the Dubai shopping Festival. They have more


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than 30 outlets all over Pakistan and Middle East. Their major products are clothing, footwear,

bed linen, kitchen accessories and furniture.

3.3.3 Bareeze

Sefam (Bareeze) is a Pakistani high end fashion retailer and one of the countrys leadingbusinesses. Bareeze is in the list of Haute Couture which is a list of high end brands. It has

managed to get itself into that list by making extremely good quality clothing particularly in

Shalwar Kamese. Their main attraction is embroidered designer fabrics.

3.3.4 Chinyere

Chinyere is a 2nd brand under Sefam group, and they focuses on sophistication and style. It

was established in 1999 that has now evolved into countrys most popular and accessible

fashion brand. Catering to women as well as men, Chinyere has outlets all across Pakistan aswell as in Dubai, India, UK, Canada and Norway. Their main categories are Casual wear,

Formal wear, Couture, Menswear, Sleepwear, Abayas, Accessories and Jewellery.

4 QUESTION C)IS THE STORE MANAGEMENT MAKING EFFORTS BUILDING

SUSTAINABLE COMPETITIVE ADVANTAGE?IF SO HOW?NARRATE IN

BRIEFLY.

4.1 SUSTAINABLE COMPETITIVE ADVANTAGE

4.2 STORE LOCATION

All outlets of ideas are located in densely crowded market

locations of the city. These locations are convenient and

very accessible for the consumer as well as the

surrounding give these outlets much better visibility and

finally the competitive edge over other brands. Brands like Khaadi and chenOne etc. have not

emphasised that much on site location as they have done. One of the main reason for attraction

of consumer is that the outlets have large signage visible from far away on the roads makes the

outlet highlighted.


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4.3 STORE INTERIOR AND EXTERIOR

Ideas have very brilliantly designed store interior

and exterior with very carefully designedlayouts to

give consumers best shopping experience in the

outlet. These outlets leave a very long lasting

impression on the minds of the customers, and

makes the shopping experience very highly

energetic by the use of bright colours and fresh

themes. The exterior of the outlets is also designed very brilliantly and is capable of attracting

customers from far away from the outlets just by site impulse attraction. Thats why even

outlets play important role in impulse buying of the customer even if he had not even entered

the store yet.

The store interior is beautifully decorated and efficiently designed by the sales point of view.

The stores gives impression of liveliness and freshness for the outside customers. They have

placed different glass panel sections to display advertisement on the walls, they have nice

dressed up mannequins in the apparel section and the main entrance ground level of the store.

There are large illuminated signs alongside the entrance displaying advertisement of various

promotions and new arrival offers.

4.4

EMPLOYEES

every outlet of ideas have around 25 to 30 employees on average and most of the sales staff is

consisted of females because of their hot category is ladies products. Thats why the highest

number of employees are allocated to the women apparel section. Employees are well trained

and adequately educated and well-groomed and well dressed in special uniforms. Their

responsibility is to cater the needs of the customer warmly and courteously so that they can

take home not only the products but also the warmth of the brand with them.

4.5 PRODUCTS ASSORTMENT

They have nice and large assortment of SKU in the categories of Ladies products and Home

Textile, ladies can do one stop shopping of their favourite merchandise from one store relating

to their clothing, fashion and domestic needs. They have one of the best colour ranges in the

market, they very unique and attractive colour collection, which is not fully available on any

other brands. The designer series of Gul Ahmed brands also gives them unique selling pointsand attracts a large footfall of the customers. In the men section they are offering the highest


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quality fabric collection in the market, they offer best quality cotton and mixture material for

unstitched fabric section. Their chairman Latha and Khadar are particularly very famous.

Finally they have obtained full potential of convenience goods and impulse goods and they

have ingeniously designed the product displays to ensure maximum mental impact and highest

level of sales. The assortment of these items along with the main product lines ensures

maximum impulse buying in most of the outlets located in central urban areas and posh

societies.

4.6 OWNERSHIP COMBINATION

In past few years Gul Ahmed has grown at a very fast pace without losing consistency in their

services, one of the key reasons behind this is their expansion style and business partnership

strategies. Many of the outlets are company-owned that means the company has more

flexibility and authority over these outlets and the company can enjoy much better profit levels

as compared to the franchise format. The company can easily implement their set organisation

standards to their company-owned outlets and can interfere in all type of store operations.

While another hand if we discuss their franchise format, they have very strong strategies of

doing business with partners and creating win-win situations. They have successfully

implemented all their standards in the franchises and they are able to create the same image

from them as well.


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4.7 COMPANY OWNED DISTRIBUTION NETWORK

They have a very effective cost efficient transportation system and distribution network which

allows them to keep minimum levels of inventory and minimise the costs associated with it

they have applied just in time and on demand distribution strategies. The distribution network

delivers the goods with minimum time possible and the distribution centres are also located in

the same city catering the needs of multiple outlets on the basis of hub and spoke distribution

network system. The transportation network is also used for other purposes like delivering back

the faulty items and returned goods and as well as the internal branch transportation of goods.

If the item is not available in one branch they can make a request to fetch it from other branches

to fulfil the need of a regular customer.

5

QUESTIONED D)WHAT KIND OF VENDOR RELATIONS DO THEY HAVE?

ARE THE DERIVING ANY KIND OF BENEFIT OUT OF THAT RELATIONSHIP?

PEN DOWN TO THE DETAILS.

Most of the mainstream products of ideas are

sourced from Gul Ahmed textile mill and other

internal sources. A few of these products and

some impulse goods are usually outsourced

from different vendors, like handbags, clutches,

wallets, leather products, some shoes variety

etc. these items are bought on quarterly basis in

alignment of the seasonal sales. The top management of the firm chooses vendors on basis of

quality and their consistency and reliability only if it aligns with Gul Ahmed image. A contract

is signed with these vendors on sound terms. Ideas have its own distribution network and their

responsibility is to deliver all types of merchandise to the outlets without delays and shortages.They also have alliances with other transportation companies on contract basis for the

Landi kotalKarachi

LahoreWarehouse

Distribution Outlets


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distribution purposes in many cities. The vendors enjoy and level of benefits from the

organisation, but the organisation also have up to hand to dictate them their own terms and

conditions when necessary by having multiple vendors on their panel and minimising channel

monopolies.

6 QUESTION E)HOW DOES THE RETAILER MOTIVATE ITS EMPLOYEES DOES

IT HELP IN RETAINING THEM?

Ideas have a very good HR system and hiring

department and it is commonly observed that

employees are satisfied and highly motivated to serve

the needs of the customers in all ways possible. Ideas

involve them in multiple activities of store

management during job rotation. They are groomed

by involving them in multiple training sessions and

counselling activities on regular basis. Extensive training workshops and courses are also

organised in order to keep the staff with suitable and significant knowledge of their jobs. This

gives them job satisfaction and keeps them motivated on their jobs. The purpose of the uniform

for the staff is to make them feel as part of an organisation as a single body, this also unites

them and creates different interpersonal corporations among the staff members. The staff is

respected at highest moral standards and they make them feel that they are important to ideas.

They are encouraged to share their opinions and thoughts to improve the operations and they

are also rewarded for their contributions that so they feel motivated and obliged to contribute

in the organisation and for its success.

They are also given daily targets to achieve on daily basis different incentives attached with

these targets which also gives them monetary motivation to perform better and create more

sales for the store.


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7 QUESTION F)HOW DO THEY KEEP THE OPERATION NO COST?AND

BUILD MULTIPLE SOURCES OF ADVANTAGE?

They keep their operations low cost by following ways:

7.1 HAVING THEIR OWN DISTRIBUTION NETWORK

They have a very effective cost efficient

transportation system and distribution network which

allows them to keep minimum levels of inventory and

minimise the costs associated with it they have

applied just in time and on demand distribution

strategies. The distribution network delivers the goods with minimum time possible and the

distribution centres are also located in the same city catering the needs of multiple outlets on

the basis of hub and spoke distribution network system. The transportation network is also used

for other purposes like delivering back the faulty items and returned goods and as well as the

internal branch transportation of goods. If the item is not available in one branch they can make

a request to fetch it from other branches to fulfil the need of a regular customer.

7.2

W

AREHOUSE MANAGEMENT SYSTEMS AND INVENTORY DATABASES

Outlets have small stores to keep inventory and most of the space is given to the sales floor to

display more items in the outlet. Distribution centres are responsible to keep all that excessive

inventory and provide it to the outlets on regularly basis. They have a very nice ERP system

installed manage the inventory both in the outlets and the warehouses, by using this information

management system they are able to synchronise the inventory flow levels both in the

warehouses and the outlets. They have complete information of every single unit and its

location whether it is in warehouse or it is displayed in the outlet, this helps them to manage

the surplus and shortages of inventory.

7.3

MINIMISING WASTAGES

on regular daily basis store managers and their assistants are responsible to reduce wastage is

on daily basis for example saving electricity by shutting down extra air conditioners during low

footfall of customers and increasing the air conditioning capability accordingly when the

customer footfall rises. They dont have to use 20 conditioners installed in a single outlet where

there are only 10 customers at a time so they can reduce it to 2 or 3 air conditioners or as per

the requirement according to the climate of the outlet. Similarly they have installed systems to


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minimise shoplifting by customers and they have installed high-tech systems to detect and

prevent shoplifting.

8

Q

UESTION

G)

W

HAT KIND OF GROWTH STRATEGIES DO THEY FOLLOW

,

LIKE MARKET PENETRATION,MARKET EXPANSION,RETAIL FORMAT

DEVELOPMENT,AND OR DIVERSIFICATION?

Ideas is following market expansion and market penetration

strategies currently to grow their business and for this purpose

they are offering franchises to investors in cities other than the

Metropolitan cities, like in Multan, Bahawalpur etc. they

provide full support to the franchise owners and all the

advertising and training are done by the corporate staff of the

firm. Franchise format is very fast requires least investment and

gives you nominal amounts of profits against your brand name. Currently they have 15 to 20

franchises all of Pakistan. As the company is a public limited, these franchised outlets are later

on purchased by the company. For market penetration they are working on introducing new

brands and products to cater the needs of wider target section. Like they are planning to launch

a complete kids category to target this segment as well while very few of the competitors are

catering this segment, it will give them strong competitive edge over other brands.

9 Q

UESTION

H)

H

OW DO THEY DEFINE THEIR MISSION STATEMENT

?

A

ND

WRITE DOWN THE MISSION STATEMENT

.

9.1

MISSION STATEMENT

To deliver value to our stakeholders through innovative technology, teamwork and by fulfillingour social and environmental responsibilities.

9.2

H

OW THEY DEFINE IT

?

Still after 50 years since the inception Gul Ahmed is still consistent with its quality, innovation

and reliability. They want to give their stakeholders value by giving achieving local and

international competitive advantage through superior textile products and services at best

prices. They try to meet and exceed customer expectations through superior retail strategy and


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better quality of the products. They want to achieve results by promoting professionalism,

productivity and efficiency all of this at competitive prices and premium products to the clients.

10QUESTION I)CARRY OUT SWOT ANALYSIS OF THE STORE.

Strengths

Unique Colors, Designs & Competitive

product prices.

Large Infrastructure and strong

organizational background

Great human resource

Company owned outlets and distributions

network

Weaknesses

Limited variety in Mens segment and

almost no assortment for kids

segment

Lack of competitive aggressiveness

to sustain and defend market share

Lack of customer loyalty programs

Lack of CRM initiatives

Opportunities

Market saturation

Diversification and more penetration in

home dcor and furniture segment.

Rise in Pakistan Retail Industry

Development of new Retail formats like

departmental stores.

Global expansion

Benefit from removal of trade barriers byEuropean Union and other trade bodies.

Threats

Regulations, restriction and taxes.

Retention of key talented staff and

management.

Seasonal life cycles of the products

Strong environmental and economicchanges

Other competitors catching up byfollowing the footsteps.


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10.1QUESTION J)WHETHER THE BASIS OF SELECTING THE RETAIL SITE?PLEASE GIVE DETAILS.

Most of the ideas outlets are located in central highly crowded markets like Liberty, DHA Y-

block, Model down link road, Gulberg etc. to attract maximum number of customers and to

achieve targeted sales objectives the following are main bases of selecting the retail site:

Convenience

Visibility

Traffic

Signal crossings

Area footage

Parking facility

High footfall probability

11Q

UESTION

K)

W

HAT KIND OF RETAIL ORGANISATION STRUCTURE DO

THEY HAVE

?

P

LEASE NARRATE BRIEFLY

CEO

HRM Manager

Assistant HRMManager

Marketing andCreativeManager

Marketing Team

Creatvie Team

Regionalmanagers

Branch Manager

Asst. Manager

Cash Counterstaff

Floor manager

Store/Sales Staff

AccountsManager

AssistantAccountsManager

Accounts Dept.

General Manager


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12QUESTION L)WHAT KIND OF INCENTIVES DO THEY OFFER TO THEIR

EMPLOYEES?

Gul Ahmed has human resource and remuneration committee

which is responsible to ensure that the company adopts,

monitors and applies appropriate remuneration policies and

procedures. They provide adequate level of benefits in

combination with the pay scale of the staff. They try to

maintain a friendly environment and provides safe working

conditions to provide them job satisfaction. Of the job

satisfaction is also necessary for an employee's performance so

they have other policies as well like medical allowances and loan facilities etc.

They have very good reward system as well which allows them to achieve sales targets as well

as motivating the employees. They give sales targets on daily basis, quarterly basis and 6

monthly basis. These targets are designed in slabs format and each slab has higher target with

higher rewards as well. If youll achieve 1st slab you are eligible to claim lowest level of the

reward and as you go higher and achieve next target slabs you can claim higher rewards. This

reward system gives employees an opportunity to create extra income over their fixed salaries

by performing better.

They also have a very nice retirement benefit policies giving the employees independent lives

after the retirement. They have both the gratuity and provident funds. Last year the company

had contributed Rs. 82 million for these retirement benefits. The total retirement funds are

valued at Rs. 534 million, out of which Rs. 42 million has already been paid to retiring

employees.

13QUESTION M)HOW DO THEY BUILD EMPLOYS COMMITMENT?

As discussed above their employs are given different targets on daily bases which allows them

to earn extra over their salaries, this provides the organisation to achieve employee

commitment even on daily basis and they are able to achieve record sales levels in past years.

To understand how this mechanism works lets discuss the sales targets and reward system.

The branch /floor managers are responsible to calculate the branchs daily target, on the basis

of previous days sales. They use this previous data and calculate new sales targets by putting


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them in companys standard forecasting formulas. Then the calculated target is then divided

over 3 stages called slabs in normal days achieving the 1st slab of target will give 25% of his

salary to the employee, if he achieved the next slab he will be eligible to claim 50% amount of

his salary as reward, 3rd slab will give him 75% and so on. In promotional days these

percentages can very like 25% on 1st slab, 37% on 2nd slab and 50% on 3rd slab and so on.

Secondly there are other reward policies as well which also creates employees commitment

towards the store. They have very nice appraisal policies, according to which they provide

promotions, salary increments, job rotations and many other benefits to the employees.

Employers enjoy these benefits and appraisals on bases of their evaluation of performance.

14

Q

UESTION

N)

H

OW doTHEY EVALUATE STORE EMPLOYEES ANDPROVIDE FEEDBACK?

Employees performance is recorded on regularly basis, especially the sales staffs

performance is recorded on daily basis in different journals available under the authority of the

manager. In branch level floor managers and assistant managers are responsible to monitor and

evaluate the performance of sales staff and cash counter staff as well as store management staff.

They have attendance checks on monthly basis, whether the employees are coming on time or

not, how many absentees they have and how disciplined they are during the work hours. This

complete information is then reviewed by the manager and then sent to the HR department for

further evaluation and feedback. HR department provides feedback to the managers and it is

their responsibility convey it to the staff and take relevant actions if necessary. Promotions and

salary increments are directly controlled by the HR and remuneration Department.

15QUESTION O)WHAT STEPS DO THEY TAKE TO DETECT/PREVENT

SHOPLIFTING

?

Ideas have installed many high-tech Information Systems and other technologies to prevent

shoplifting as well as they also have different other strategies to prevent or detect shoplifting

activities either on customers end or employees end. The following are the strategies they have

implemented successfully in all outlets.


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15.1RFIDTAGS

They have installed RFID tags on all of their products small or large, which gives them freedom

to track any products location within the bounds of the outlet premises and a few metres

outside. When a custom purchases an item and item is scanned at the cash counter the RFID

tag is also scanned and the computer knows the customer has now paid the amount and now he

can take the product with him outside the building. If the item is not scanned and someone tries

to take it out of the building the computer will alert the management that the item is not scanned

and someone is taking it out of the building.

15.2THEFT DETECTION SYSTEM AND CHIPS

But the RFID technology has a drawback that these tags can be removed easily from the

products, so in order to improve security they have also added special antitheft chips which can

only be removed by the management and is installed on all of the items which can be concealed

and taken out of the store. On the cash counter a special device is provided which is used to

remove these chips from the products after the payment and the sensors placed in front of the

doors will not sound any alarm but if any chip passes through that sensor gate it will trigger the

alarm and the guards outside can easily stop the culprit.

15.3

I

NVENTORY DATABASE

they have complete inventory database records of all outlets directly connected to the head

office, and if any item is misplaced and is still in the record the store management will have to

find it and then notify them management and the head office.

15.4

PERIODIC SURPRISE INSPECTIONS

Ideas have hired inventory inspectors whose responsibility is to randomly make surprise visits

to different outlets every day and perform a quick audit of the inventory available in the outlet.


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16QUESTION P)WHAT IS YOUR OVERALL EVALUATION OF THE STORE?

AND WHAT ARE YOUR SUGGESTIONS TO FURTHER IMPROVE THE STORE

S

BUSINESS?ALSO EVALUATE THE LOCATION OF THE STORE INCLUDING

THE STRENGTHS AND WEAKNESSES OF THE LOCATION

.

In our evaluation ideas is currently in a nice position in the market but there is much room for

improvement clearly. While other brands are striving to achieve maximum customer loyalty

by introducing different CRM programs, ideas is still not able to introduce any CRM initiative,

which can prove to be a very harmful mistake for them. Ideas has strong organisational policies

and innovative strategies, and courteous staff who are committed to them and are highly

motivated. Ideas enjoy many competitive advantages but still they are not the market leader

due to some lacking like short assortment of mens products and almost no assortment for kids,

these 2 segments are also equally profitable as ladies segment, so they need to focus on these

segments as soon as possible. Ideas provide unique, convenient and beautiful shopping

environment with beautifully designed interior and exterior as well which makes the

customers experience much more fresh and energetic as portrayed in their brand image. Ideas

is able to create a strong brand image by consistently providing high quality fabric material

comparable to any other brand in the market at a very sensible price range. They also have

plans to add a new and innovative products every year to capture more and more market

segments. They are also striving to gain international presence as the word becomes more and

more like a global village, and they also have a strong reputation locally and internationally

regarding their quality, reliability and innovativeness.

As far as the location of the store is concerned they have very nicely chosen all the major outlet

locations and have invested large amounts for these locations, because they are extremely

expensive prime locations for any retail store. In my opinion these locations are excellent

because they are adjacent to densely populated middle and upper class societies who are their

direct target market and this gives them a competitive edge. The outlet are located on the main

roads or inside malls which are located in high foot for probability areas, they also have

adequate parking space available to these outlets and are highly convenient to the customers.

In my opinion ideas should start focusing on men and kids segment as well and they should

also go for international trends like other brands are approaching Western trends. Moreover

they should also speed up the franchising process so that they can gain more and more presence


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in smaller cities as well in this way they can become a true national brand and may be achieve

market leader position with better prospects of further growth in international markets.

Documents

Retail management in gul ahmed ideas