RETAIL BUSINESS

MANAGEMENT

BY GROUP 14:
KARTHIK GS
MITHRA MIRIYAM
NIKHITA SHAJI
CILNU MARIA
RITHIN JACOB
NISHKAM JOHN
 RETAILERS SELECTED

MAX FASHION

Max Fashion is a fashion brand under the banner of the Dubai based Landmark Group. The
brand was first launched in May, 2004, in the UAE. Max Fashion has a combination of
physical stores and an e-commerce portal. Headquartered in Dubai, it has 350+ stores across
17 countries, the latest of which were launched in Malaysia in July, 2017. The first Max
Fashion store launched in India was at Indore in 2006.

The brand has a number of physical stores across the world, sized typically around 10,000 sq.
ft. to 20,000 sq. ft. that sell the company’s own label for clothing, footwear, accessories,
cosmetics, and home products.

Max, a division of Lifestyle India Pvt. Ltd., opened its 1st store in Indore in the year 2006. In
India, Max has more than 200 stores across 80 cities. Max is a mono brand with its own label
merchandise that is created by in-house designers for every season, and is currently growing
at a 35% CAGR year on year. Max caters to family as its primary TG and Youth as its
secondary TG. With Youth contribution to business growing by 68% every year, the brand
engages with this target audience throughout the year. Max launched three IPR’s in the space
of modeling, design & acting, facilitating aspirations and democratizing fashion for the
youth.

RELIANCE TRENDS
It is a specialty apparel store that will sell men, women and children‟s garments. The store
will carry the best of national and international brands like John Players, Peter England,
Indigo Nation, Wrangler, Reebok, and Lee, apart from in-house brands. The store layout is to
compliment the evolving taste and preference of fashion savvy consumers, giving them an
opportunity to view /shop with ease, along with well trained customer service associates, to
compliment the entire shopping process. Reliance trends is operation with 123 stores across
the country, providing employment to so many people and planning to launch many new
stores.

Both of the retailer have similar kind of product categories of merchants:

 Men
 women
 Kids
 Accessories

The merchandise category that we have taken for the study is Women’s clothing

RETAIL STARERGY

MAX FASHION

Target market

The target audience for Max India is primarily middle class family and young working
couples within the age group of 25 to 35 yrs. As Max has positioned itself as a youth brand, it
also targets teenagers and college students within the age group of 18 to 24 years. Max is
reaching out to customers in Tier II towns through brand initiatives like Max Fashion Icon
which addresses the aspirations of the stylish youth of the city and Max Little Icon which
captures the interest of family oriented markets.

STRATERGY

 Low priced merchandises targeting youths.

 Landmark reward membership programme. Customer gets reward points on their
purchases which can be encashed.
 Gift vouchers on special occasions to drive sales
  Fashion shows on MAX Apparels at colleges and stores before season launch.
 Selfie contest sporting MAX apparels.
 Find your size (If a customer does not get the size, max promises to deliver it at door
step within 48 hours without any extra charges).
 Various spot offers at stores.
 Bundled merchandise offer (buy 2 get 1 free)
 Max launched three IPR’s in the space of modelling, design & acting, facilitating
aspirations and democratizing fashion for the youth.
1. Max Elite Model
2. Look Max Design Awards
3. Max Emerging Star

RELIANCE TRENDS

Target market

The target audience for Reliance Trends is primarily middle class family and young working
couples within the age group of 18 to 50 yrs. As Trends has positioned itself as a economic
brand, it also targets fashion seeking teenagers and college students within the age group of
18 to 24 years. Trends is also reaching out to customers through there showrooms and online
store.

STRATERGY

 Lower Price

 Coupons, Voucher

 Promotional Products

 Good Quality

 Value to money
 Understanding the customer needs

 Implementation of the pint theory (5 theory = greeting)

 Offer on national holiday like 15 august, 26 Jan, 16 Jun etc.

 Ultimate offer (offer for the whole yr)

RETAIL MIX

RETAIL MIX OF MAX

Max is a shopping destination for the entire family with a wide range of products for men,
women and kids. They provide clothes, foot wears and accessories. The brand provides
various fashion apparels at affordable prices. The tagline itself is quite comfortable to the
customers which is “look good feel good”

PRICING STRATEGY

 Max stores price their products accordingly, the price ranges varies from low to high
 The main focus of the store is to ensure that all types of customers gets the products
that they want
 They follows discount pricing and sharp pricing as well
 The women apparel products starts at price range of 300 and can goes up to 4000.
 In case of foot wears the price range starts at 400 and goes up to 2000
 The different rates products are placed in the same section but arranged according to
their prices.
 They follow value pricing as well which means best products at reasonable price and
a value that will purchase a definite quantity, weight or other measure of a good or
service
 They also uses odd pricing and psychological pricing
(Psychological pricing means that certain prices or price ranges are more appealing to
customers like 399,1999,1450 etc. which means in odd numbers and not rounding it to
even numbers or correct figure)
PROMOTIONAL STRATEGY

Max uses a variety of promotional strategy in sense the means they uses advertisements,
offers, sales etc. which improves their brand image as well as the sales.

Some of the techniques that they use to increase sales are:

 Advertisements are among the best and well known sales promotion tools besides
those special displays, coupons, promotional discounts, contests and gift offers.
 Coupon sales is one technique which they offers to the customers where they can
save huge discounts by using max fashion codes and promo codes both online and
offline as well(e.g.: buy 2 get Rs 99 off , Flat Rs 200 off etc.)
 Cash back :max offers customers cash back sales where by the customers can get
cash back for their purchase( e.g. Max Fashion HDFC offer: Extra 10% cash back)
 Seasonal sales
 Discounts on Online shopping(Discount sales)
 Membership Card: for those customers who get a membership card will be getting
certain discounts on their purchases.
 Best Price and Hot deal offers( offers like buy 2 at just Rs 499)
 Shop more and save more strategy is used by them

LOCATION STRATEGY

Max has a unique presentation and styling of their products which also indicates that they
have a good location for the store as well:

The location strategy used by the retailer is that:

 Target market and by assessing the market potential

 Customer behavior and customer traffic( say for e.g. here in kakkand itself there are
various colleges, schools, and households nearby which increases customers since the
number of good quality stores nearby is less so more customers will come to purchase
apparels, foot wear etc. especially women)
  Parking facility: good parking facility for customers will increase customer traffic as
well
 Man-made or artificial disturbance: the stores would like to be in a place which is free
from all these
 Uniqueness of retail offering
 Spacious store space
 Demographics: both in case of target market and target shoppers, like how far the
customer have to travel? etc.
 Competition

RETAIL MIX OF RELIANCE TRENDS

Reliance trends are a specialty apparel store that primarily caters to men’s, women’s and
children’s apparel. The stores carry some of the best national and international brands like
John Players, PeterEngland, IndigoNation, Wrangler, Reebok and Lee apart from their
various in-house brands. The store layout is complimenting the evolving taste and preference
of fashion savvy customers giving them an opportunity to view the shop with ease along with
well trained customer service associates to compliment the entire shopping process. They
provide an extraordinary design pool of Indian and international designers integrating the
international design trends and preferences of the Indian customers.

The company is offering solutions to common maintenance problems through its state of the
art innovative products like Ever White Shirts, Anti Stain Trousers, Wrinkle free range of
garments, aromatic clothes for infants and quick dry sportswear that ensures optimum
moisture management.

Product quality is ensured of always and is part of the mission of “grahakdevobhava”.The

quality system are designed, implemented and monitored as per international standards by a
highly competent team of professionals to deliver the customer the best value for money only
the products that pass the quality standards of international range like American Association
of textile standards, ISO, BIS and so on by a highly competent team of professionals make it
to the shelves.

PRODUCTS

The network range of garments comprises of formal office wear and collection for women
while the NETPLAY range showcases a smart casual collection for the evolving workplace.
The DNMX range has been developed with a clear focus on the youth of India with denims-
tops and so on.

SPARSH range of Indian wear for women offers the finest collection of salwarkurthis,
churidars and a fast evolving mix and match range of garments. An exclusive label PANDA
has been developed for infants and toddlers while the FRENDZ range is for the growing
generation of boys and girls.

Apart from private labels they also offer the most renowned brands like Levi Strauss,
IndigoNation, AmericanTourister, and John Players and so on.

Continuing to reach out to the idle class of the country the current offering from Reliance
Trends is easily affordable to the Indian customer. The specific label called FIRST CLASS is
designed to cater to the needs of men women and children providing extreme value for
money.

PROMOTION EFFORTS

They always cater to the customer needs and customer feedback is asked for and encouraged
at the billing area. The place season specific advertisements with the recognizable theme
music that encourages the rebel spirit and trendsetting towards their target customers the
middle class youth of the country. They also continuously give out coupons and vouchers for
set purchase amounts and encourage both online as well as offline purchases.
PERSONNEL

There are always a minimum of 10 staff personnel who are well trained and guide each
customer. They are well dressed in their trends uniforms and provide adequate service.

PRESENTATION

The stores are always well light and maintained according to the various seasons. the best
pics and price options are set out in hoardings outside the shops as well as in banners all over
town. There are huge TV’s that play the store ads and music that plays out encouraging the
shopping and fun environment.

LOCATION STRATERGY

The stores are always placed in crowd favourite spots like malls, shoppingceneters and so on.
it is always easily accessible and easy to spot. Reliance trends are operational with 123 stores
across the country providing employment to so many people and planning to launch so many
new stores. Each store is located at prime city hubs with each stores area of more than
15000sq.ft.It has been designed and furnished by the best of the international design agencies
to offer a high style and lavish experience for the customers.

PRICE
The target customers are the middle class population and hence the products are all mostly
very reasonably priced. There are garments of all ranges but it is usually kept to the
maximum of 1200-1000 range.
MERCHANDISE CATEGORIES

MAX FASHION

Tops

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Jackets 6 80-100 550-1900 Special offer on limited
stocks.
Max. Discount 40%
Shirts & 10 Above 200 300-1200 Special offer on limited
Blouses stocks.
Max. Discount 40%
Shrugs 3 60-70 300-1500 No discounts available

Tops & 10 Above 200 199-1000 Special offer on limited

Tees stocks.
Max. Discount 60%
Tunics 4 Around 100 399-1200 Special offer on limited
stocks.
Max. Discount 40%

Table -1

Ethnic wear

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Churidars 1 Around 100 550-1600 Special offer on limited
stocks.
Max. Discount 40%
Dupattas 1 Above 50 300-1400 Special offer on limited
stocks.
Max. Discount 40%
Harem & 1 10-20 300-1500 No discounts available
Dhoti
Pants

Kotis 10 30-40 199-1000 No discounts available

Leggings 2 100-120 399-1499 Special offer on limited

stocks.
Max. Discount 40%
Kurtas & 1 Around 50 399-1200 Special offer on limited
stocks.
Kurtis
Max. Discount 40%

Table -2

Bottoms

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Capri’s 2 Around 40 200-1099 Special offer on limited
stocks.
and 3/4
Max. Discount 40%
Jeans 3 Above 50 550-1900 Special offer on limited
stocks.
Max. Discount 40%
Plazzos 1 10-20 400-1200 No discounts available

Shorts 3 30-40 599-1200 No discounts available

Trousers 2 10-20 300-1099 Special offer on limited
stocks.
Max. Discount 40%
Pants 1 Around 20 599-1400 Special offer on limited
stocks.
Max. Discount 40%

Table -3
RELIANCE TRENDS

Tops

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Jackets 4 10-20 550-1900 No discounts available
Shirts 8 Above 150 200-1490 Special offer on limited
stocks.
Max. Discount 50%
Shrugs 4 40-50 300-1200 No discounts available

Tops & 10 Above 200 150-899 Special offer on limited

Tees stocks.
Max. Discount 40%
Tunics 4 Around 70 499-1200 No discounts available

Sweaters 3 Around 30 599-1400 No discounts available

Table -4

Ethnic wear

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Churidars 1 Around 60 450-1800 Special offer on limited
stocks.
Max. Discount 50%
Dupattas 1 Above 50 200-1000 Special offer on limited
stocks.
Max. Discount 25%
Harem & 1 20 200-1200 No discounts available
Dhoti
Pants
Kotis 6 70-80 299-1400 No discounts available

Leggings 4 100-150 299-1399 Special offer on limited

stocks.
Max. Discount 30%
Kurtas & 1 Around 50 399-1200 Special offer on limited
stocks.
Kurtis
Max. Discount 40%

Ghagtras 1 20-30 400-1200 No discounts available

Tunics 3 40 399-1450 Special offer on limited

stocks.
Max. Discount 30%
Table -5

Bottoms

TYPES ASSORTMENT TOTAL PRICE PROMOTION

QUANTITY RANGE
(Rs.)
Capri’s 4 Around 50 199-999 No discounts available
and 3/4
Jeans 3 80-100 450-1900 Special offer on limited
stocks.
Max. Discount 30%
Plazzos 3 30-40 200-900 No discounts available

Shorts 3 40 399-1100 No discounts available

Trousers 2 10-20 300-1099 Special offer on limited
stocks.
Max. Discount 30%
Pants 2 Around 30 499-1200 Special offer on limited
stocks.
Max. Discount 30%

Table -6
COMPARISON OF STORES

The table 1 to 6 shown above represents the different stock keeping units of the two retailers.
The assortment, types ,price range and promotions for the merchandise are all given in the
above tables.

Merchandise Depth

From the above table we can analyze that the merchandise dept are greater for Max fashion
than the Reliance trends. The max fashion provides much more selection of a particular
category of a merchandise than the reliance trends.

Merchandise Breadth

From the above table we can analyze that the merchandise breadth are greater for Reliance
trends than the Max. The Reliance trends provides more variety of particular category of a
merchandise than the Max fashion.

RELIANCE TRENDS MAX FASHION

BOTTO BOTTO
TOP, 8 TOP, 6
MS, 8 MS, 6

ETHENI
C
WEAR, ETHENIC
9 WEAR, 8
PRICE

The price of the similar merchandise in both the retail stores is nearly in the same range.
Since the customers are mostly influenced by the price both f the retailers keep the price at an
economical level. In some category of products such as Tops reliance trends have a lower
price range compared to Max. At the same time when it comes to the ethnic wear Max has
lower price range than Reliance trends.

MAX FASHION RELIANCE TRENDS

Above Above
1500 1500

Below 1000- Below

1000- 500 1500 500
1500
500- 500-
1000 1000

OVERALL ANALYSIS

As per our analysis on the two retail store the two of them where nealy focusiing the same
target customers and where providing the nearly same sort of merchandise for the
customers.The stratergies adopted by the stores where some what different from one another.
While the Max fashion was focusiing more on the mercandise depth and they offer wide
fashion of the same product with different design and colours. At the same time Reliance
trends was focussing more on the merchandise width that is they provide more types of a
category but the depth of eacg category was less.

Total sales was found more in the max fashion than the reliance trend this was mainly
because thet provide much more choice and options for the customers to select from rather
than providing small amount of all the category.

So from our analysis we can conclude that the customers always opt for the stores with much
product depth than product breadth,since it provides the customers with more choices.