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    PROJECT REPORT

    EVALUATING THE STORE

    OPERATIONS

    AT

    BOSS HUGO BOSS

    NEW DELHI

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    Contents

    1. Acknowledgement 3

    2. Executive summary 4

    3. Introduction 7

    4. Objectives 13

    5. Boss Hugo Boss 15

    6. Brands Offered By Hugo Boss 21

    7. The Store Insight 24

    Layout 25

    Display & Visual Merchandise 28

    Customer Care Executive 32

    8. Supply Chain Activities 34

    9. Inventory Management And Merchandising Activities 39

    10. Fast Moving Vs Slow Moving Merchandise 43

    11. The Customer Relationship Management 46

    12. The Competition Analysis 56

    13. Observations 59

    14. The S.W.O.T Analysis 62

    15. Recommendations 64

    16. Questionnaire. 67

    17. Bibliography 70

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    ACKNOWLEDGEMENT

    I take this opportunity to acknowledge the efforts of the many individual who helped me

    in making this project possible. First and foremost, I would like to express my heartfelt

    appreciation and gratitude to BINHENDI FASHIONS PVT LTD for allowing me to do

    this project.

    The satisfaction, which accompanies the successful completion of the project, is

    incomplete without the mention of the names of those people who made it possible,

    Completion of this project was only possible with the help of my guides and mentors. I

    am indebted to Mr. VINEET RANA (STORE MANAGER) who had a great influence

    on the way the project progressed.

    I also want to thankMs JYOTI CHAUHAN, and MR SUMIT BANSAL (FASHION

    CONSULTANTS) who spared their valuable time and has taken pains to make me

    understand the practices followed in the BOSS HUGO BOSS STORE

    I also thank my Faculty Guide for the project, Prof. Shalini Srivastava for her valuable

    inputs from time to time as well as help me compile this entire report in its entirety.

    I would also like to thank the Birla Institute of Management Technology, forproviding

    me the opportunity to do a project with BOSS HUGO BOSS.

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    Executive Summary

    Introduction:

    The dazzling array of luxury goods available today is clearly catering to the growing

    number of Indians who are enjoying unprecedented level of affluence. Statistics show that

    in 2001-2002 there were 20,000 families in India with annual income of more than Rs 1

    crores .By 2005, that number has increased to 53,000 families and by 2010 ,India will

    have an astounding 1,40,000 millionaires.

    It is not just the big Indian cities like Delhi, Mumbai and Bangalore where the rich are

    located. A small town like Nagpur had nine millionaires in 1995-1996. By 2001, that

    figure increased to 425, with a growth rate of 91 percent.

    Research Methodology:

    To complete my project successfully I participated in the store activities. To collect the

    primary data like the footfalls, daily sales, and the fast moving and the slow moving

    merchandise, customer behavior and their satisfaction, etc.I followed four simple steps

    Step no.1: I participated in the front end activities of the store, for 8 weeks I stayed back

    in the store for an 8 hours shift which gave me an insight on how the store is being

    operated on daily basis.

    Step no.2: I interacted with the customers to understand their needs and expectations

    from the brand Hugo Boss.

    Step no.3: To compare the working of the Hugo Boss store with its competitors I

    collected information by going to the Hugo Boss competitors as a customer to analyze

    their way of working.

    Step no.4: finally I devised a questionnaire for the fashion consultants working in the

    Hugo Boss store to get a feedback from them on the store operations.

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    Conclusion:

    Based on my observations and discussions with the staff of the Delhi store I have

    following recommendations to make:

    The visual merchandising needs improvement, as a carelessly done visual

    merchandise will effect the brand image

    Sales promotions should not be flashed on the newspapers as it effect the luxury

    brands image. It is very important to maintain the brand exclusivity which is its

    strength

    The supply of carry bags should be adequate

    Product manuals should be given to each store so that everybody on the retail

    floor should have the product knowledge. No one without any adequate product

    knowledge should be allowed on the floor.

    When new stock comes then its setting should be done by closing the store, for an

    hour. So that inconvenience is not caused to the customers

    The company should arrange for a separate dining room

    Area where the suits are displayed should have more space.

    Both the trial rooms should be kept functional.

    The store has one tailor who does the alterations, if he could get a helper then

    speedy services can be given to the customers resulting in customer satisfaction.

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    Limitations:

    The data used for comparing different luxury brands with Hugo Boss has been taken

    from different articles.

    Disinterest of the luxury retailers in answering questions.

    Inability to use advanced research tools as the report is totally qualitative in nature

    and is based on my observations in the store.

    Finally the recommendations given by me are based on the data that was observed by

    me during the period of 2 months.

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    INTROD

    UCTION

    INTRODUCTIONLuxury, derived from the Latin word luxus, means indulgence of the senses, regardless of

    cost. Luxury brands are brands whose ratio of functional utility to price is low while that

    of intangible utility to price is high. Such brands share characteristics like consistent

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    premium quality, a heritage of craftsmanship, a recognizable style or design, a limited

    production run of any item to ensure exclusivity, an element of uniqueness and an ability

    to keep coming up with new designs when the category is fashion-intensive.

    Luxury Retail in India:

    India, throughout history, has been a land of extremes and known for the indulgence of its

    opulent classes. The good lifestyle, once experienced by a select club, is now getting

    democratized. More than 1 million Luxury consumers. More numbers getting added

    every day. The fastest growing auto market in the world. Doubling of market sizes in

    many high-end categories of electronics, jewelry, clothing etc. over a year. A

    phenomenon which is unmatched by any economic event anywhere else globally. A

    market which is waiting to be plucked by Luxury products

    Luxury brands are brands whose ratio of functional utility to price is low while that of

    intangible utility to price is high."

    The market for luxury brands in our country has expanded in recent times. With income

    levels going up, customers prepared to buy such brands are growing in numbers.

    According to an NCAER Household Income Survey, in 2001-02, there were 20,000

    families in India with annual incomes of more than Rs 1 crore. By 2005, that number is

    expected to increase to 53,000. By 2010, India will have some 1, 40,000 crorepatis. Retail

    management company KSA Technopak estimates the market for luxury and high-end

    clothing in India at Rs 1,000 crore and for accessories at another Rs 1,000 crore.

    In the past, brands like Liz Claiborne and Pierre Cardin tested Indian waters but made a

    hasty retreat following poor customer response. This led to a general perception that India

    is still not ready for luxury brands. But now that impression is changing. Many leading

    global luxury brand marketers have started taking Indian market seriously.

    Luxury retailing:

    Luxury goods retailing is a different ball game as the type of customers involved fall in a

    different class altogether. These customers are influenced more by glamour and style and

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    want to stand out in a crowd. They do not bat eyelid when they buy a Vuitton bag costing

    Rs 50,000 or a Mont Blanc diamond-encrusted pen for Rs 50 lakh, Ermenegildo Zegna's

    top-of the-line, custom-tailored suit costing Rs 6 lakh or a mid-range Louis Vuitton

    briefcase priced Rs 1.27 lakh.

    NO. of multi-millionaire families

    2001-02 20,000

    2005-06 53,000

    2010 1,40,000

    *No of households with annual income of more than Rs 1 crore between 2001-02 and

    2005-06 the increase is two-half times estimated

    As these figures suggest, luxury brands are prestige products characterised by high-

    involvement decision-making that is strongly related to the person's self-concept. Sensory

    gratification and social approval are the primary factors in selecting a prestige product.

    Cutting prices or giving discounts can be detrimental in case of luxury brands. A higher

    price implies a higher level of quality and also suggests a certain degree of prestige.

    Similarly, distribution should be restricted. Status-sensitive consumers may reject a

    particular product if the feeling of exclusivity goes away.

    Managing luxury brands is as much an art as a science. The challenge is to create a

    demand for something which is not really needed. After all, it looks crazy to spend Rs

    50,000 on a handbag or Rs1,27,000 on a briefcase. Creativity plays a key role in creating

    such a premium image. Many luxury brands achieve legitimacy and fashion authority as a

    result of the creative talent of their design teams who respect the brand heritage and yet

    continuously reinvent it.

    Brand-building is a different ball game in case of luxury goods. Fashion shows, special

    events, and other public relations efforts must be carefully coordinated to convey thedesired image. The magazines selected for advertising are often unconventional and

    trend-setting. It is the kind of people who read them, not the numbers, which matter. The

    movies in which the brand appears and the celebrities and pop icons who endorse the

    brand must also be selected carefully.

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    Merchandising activities in Luxury Market:

    The product line decisions in case of luxury brands are somewhat tricky. First, to what

    extent should companies include in their lines lower-priced accessory items to target a

    broader market? A second and related issue is whether there should be line extensions

    beyond the core category. Such a strategy may make operations more complex and drive

    up costs. Moreover, transferring the brand's fashion authority from the core to another

    category may not be as simple as it sounds. Despite these concerns, most successful

    designer wear luxury brands combine a risky and perishable ready-to-wear offering with

    sales of less fashion-intensive items, such as leather accessories. A Gucci store might

    display its latest fashion accessories prominently but generate most of its sales from black

    and brown handbags and conservative silk ties. Many luxury brands realize less than 25per cent of their sales from ready-to-wear products. The balance comes from fragrances,

    leather accessories, and home furnishings.

    No. of millionaire families

    2001-02 40,000

    2005-06 1,00,000

    2010 2,50,000

    * Figures are number of households with annual income between Rs 50 lakh and Rs 1

    crore estimatedDistribution of the luxury products:

    Channel management issues are again different for luxury brands. Here the focus is not

    on expanding reach. Indeed, marginal and unfocused retailers must be dropped from time

    to time to improve the strength of the brand franchise for those remaining. Investment in

    flagship monobrand stores augments the brand's prestige and presents it as a lifestyle

    concept.

    Customer Relationship Management:

    In the past, customer service for luxury brands meant making to order. Craftsmanship and

    customization went hand-in-hand. Today exclusivity is provided not by customization but

    by restricted supply. But selective distribution and limited assortments cause

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    inconvenience to consumers. So many luxury brands are looking at new ways of

    improving customer service.

    Traditionally, luxury brand retailers have not paid much attention to computerizing

    records of transactions with clients. Now they are realizing the importance of customer

    relationship management for various reasons. Customers who buy an accessory today

    may purchase higher-value items tomorrow. The tourist who buys a single item from one

    store may buy items of the same brand in other stores around the world. Databases enable

    retailers to know how important their customers are, no matter which store they may shop

    in, around the world. Customer databases enable owners to contact their consumers with

    invitations to collection previews, end-of-season sales and other events. Customer

    databases also ensure that even when salespeople leave, their knowledge is not lost.

    Conclusion:

    Developing luxury brands involves heavy investment of time, effort and money. That

    needs a different kind of mindset which is generally lacking in many Indian companies

    who look for quick returns. That is why there are few Indian luxury brands. But for those

    who are willing to take the plunge and wait patiently for the results to come, there is a pot

    of gold waiting at the end of the rainbow.

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    THE OBJECTIVE

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    OBJECTIVES

    This project is an attempt to do a conclusive research and analysis of the store operationsat Boss Hugo Boss store which could lead to charting out better future strategies for the

    management to provide better customer satisfaction. In order to achieve this primary

    objective, I moved ahead in four fold process.

    I participated in the front end activities of the store, for 8 weeks I stayed back in

    the store for an 8 hours shift which gave me an insight on how the store is being

    operated on daily basis.

    I interacted with the customers to understand their needs and expectations from

    the brand Hugo Boss.

    To compare the working of the Hugo Boss store with its competitors I collected

    information by going to the Hugo Boss competitors as a customer to analyze their

    way of working.

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    BOSS HUGO BOSS

    History:

    Hugo Boss is a fashion house based in Germany, which specializes in high-end and

    casuals menswear and womenwear. It is named after its founder Hugo boss.

    Hugo boss established his company in Metzingen, Germany in 1923 only a few years

    after the end of World War 1 while most of the country was in a state of economic ruin.

    Boss died in 1948, and the company then languished in relative obscurity until the 1950s

    when in 1953, Hugo Boss released its first suit design for mens wear Boss BLACK.

    In 1993, 70 years after its founding, Hugo Boss launched its first fragrance and created a

    division which has since grown to be an important part of the company. In 1987, Boss

    Orange for men was launched described as sporty and casual separating itself from the

    trendy Hugo brand and the sophisticated boss black brand. Boss green is a completely

    sporty brand selling items designed for sport or sporty look.

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    transforms these ideas into prototypes supported by up-to-date CAD software. HUGO

    BOSS production sites, like plant in Izmir, Turkey, where they quickly manufacture

    models, which are then shown in the international showrooms as sales samples. Hugo

    Boss quality assurance department monitors the entire production process, uniformly

    applying high standards. It also ensures the ongoing specialist training of staff.

    Infrastructure

    Seamless provision of Hugo Boss products to retailers is assured by an efficient, globally

    networked infrastructure. Trading partners receive seasonal collection components in

    several delivery windows each year, allowing a prompt and flexible response to customer

    needs. Moreover, in the case of individual re-orders, our partners can obtain delivery of

    goods in stock within 24 hours in Germany and 48 hours within Europe.

    Integrated IT systems support this process at all HUGO BOSS warehousing and sales

    locations. Hugo Boss will continue to focus on the constant adaptation of their

    technologies to ongoing market developments and internal corporate requirements in the

    future.

    Distribution policy

    Despite the difficult economic situation, HUGO BOSS will continue to intensify the

    transformation of its brands into international life-style brands with worldwide

    recognition. Hugo Boss sales policy is based on two strategies: On the one hand,

    distribution via so called monobrand shops serves to reinforce the brand experience and

    create a global image. On the other hand, they rely on their long-term close cooperation

    with strong trading partners which enables them to convey the fascination of their brands

    to the final customer. The goal of distributing via up-market fashion retailers is to

    contribute to joint synergy and focus more sharply on customer convenience.

    As a result of this distribution policy, customers from 108 countries currently trust their

    brands and products. Unique customer and market proximity is achieved by HUGO

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    similar image transfer through sport sponsorship activities. HUGO BOSS is engaged in

    dynamic sports that impressively convey the values of the BOSS core brand:

    internationalism, perfection and success.

    Activities in the world of sports as well as big fashion events in the worlds major cities

    allow them to demonstrate their fashion expertise and permit their brands to be identified

    with emotional experiences.

    BOSS HUGO BOSS in India:

    The Hugo Boss in India is through franchise route, Binhendi fashions PVT LTD.brought

    Hugo Boss in India. With the first store in New Delhi at the oberoi hotel was opened in

    the year 2004, and in the year 2005 the store had a sales turnover of Rs 10 crore. The

    Mumbai store was the second Hugo Boss store in India and the sales turnover of the

    Mumbai store was Rs 7 crore. The success of the Delhi and Mumbai stores led to the

    opening up of the 3rd store in Bangalore.

    Since Hugo Boss entry into the country, Hugo Boss has brought three premium lines to

    the country: Boss Black, Boss Orange and Boss selection. All these collections areavailable in the Bangalore store.

    The three stores in India and their locations are:

    Boss Hugo Boss : The Oberoi Hotel, New Delhi

    Boss Hugo Boss: The Grand Hayatt,Mumbai

    Boss Hugo Boss : Leela Palace , Bangalore:

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    Brands O ffered By Boss

    Hugo Boss

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    Brands Offered by BOSS HUGO BOSS

    The brands which are offered by Hugo Boss are:

    BOSS BLACK

    BOSS ORANGE

    BOSS SELECTION

    BOSS GREEN

    BOSS WOMAN

    Among these arrays of brands the fastest moving brand is BOSS ORANGE and

    BOSS BLACK.

    The table on the next page gives a brief about each brand of BOSS and its origin, its

    concept, and launch in India.

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    Brand

    Name

    Boss

    Black

    Boss

    Orange

    Boss

    Selection

    Boss

    Green

    Boss

    Woman

    Born In 1953 1987 2001 1953 2005

    Concept

    Assurance is provided by BOSSBlack with acollection thatconsistently offers

    the right outfit BOSSBlack, with a focuson youthful designand high-qualityworkmanship, linkssophisticatedelegance

    Trends are set by

    the sporty BOSSOrange line with itsmens collectionfor individualists

    by making adistinct fashionstatement in thecasual market

    Pure comfortcreated by alove of detailawaits the mostdemandingconnoisseur.BOSS

    Selectioncombines thetraditionalstrengths of BOSS intailoring and fitwith the finestfabrics andexcellentquality.Superiorworkmanship,

    which alsoentails somehandwork,creates clothingtargetedspecifically forthe top end ofthe market

    Function isaddressed by theBOSS Greencollection for themodern, activeman. Technicallyoptimizedsportswear andsporty daily wear iscombined withfunctional fabrics

    in stylish multi-functional clothingof the higheststandard for dynamic outdoorand the latest

    leisure activities.

    Versatility isthe keynoteof BOSSWomancollection.Thecosmopolitanand self-confidentBOSSWoman

    customer canexpress hervery personalstyle with anoutfit of outstandingquality inperfect taste..

    Indian 2004 2004 2006 2008 Not yet

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    launch

    THE STORE INSIGHTS

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    THE STORE LAYOUT

    The store design and layout tells a customer what the store is all about. It is a very strong

    tool in the hands of the retailer for communicating and creating the image of the store in

    the minds of the customers.

    For a retailer store layout is:

    The primary considerations that the retailer takes into account while choosing the look

    for his store are his target audience, their needs, and buying habits and the merchandise

    that he is going to sell. Creating a store image is like giving a personality to the store

    For the consumer:

    A store needs to be simple to navigate; it must appeal to his sensory perceptions and must

    create a sense of belonging, a sense of relationship, a sense of security or assurance and a

    sense of pleasure in the shopping experience

    Finally it is the physical attribute of the store which affects the customers sensory

    perceptions, and makes him relate to the store in a particular manner.

    The store layout can be classified into

    Grid

    Race track

    Free form.

    Grid layout: It is most commonly used in a supermarkets and discount stores. It Is a

    preferred layout in many retail stores that adopt self service.

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    Race track layout: This layout is popularly found in department stores. The display is in

    the form of the race track or a loop with a major aisle running through the store. It links

    the various departments or the sections inside the store

    Free form layout: In a freeform, merchandise is arranged in an asymmetrical manner. It

    allows for free movement and is often used in retail outlets to encourage people to browse

    and shop.

    At Hugo Boss Store the layout that is used is a free form layout.

    The layout of the store is as such that it allows ample walking space inside the store. this

    encourages people to move and browse around the store, taking in the merchandise that

    has been stocked.

    One of my observations in the store is that once the customers enters the store he/she

    usually moves towards the right side of the store first and then to the middle and finally to

    the left.

    Store Layout at BOSS HUGO BOSS: New Delhi

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    In conclusion:

    There is no standardized rule about what kind of layout a particular type of a store should

    adopt, a retailer may choose the same on the basis of the target customer that he chooses

    to serve or the general image and look that he wishes to create for the store.

    However the free form layout may not allow for the maximum utilization of retail space

    available

    Chief considerations that should be kept in mind before selecting the layout:

    Selecting a layout which allows for the complete presentation of the merchandise

    to the customer. a good layout encourages customer to move around the complete

    store and at times , make unplanned purchase.

    Striking the right balance between space used for displays and service areas so

    that the return on the investment is maximized.

    A store needs to provide for a seating arrangement for people, if they expect

    people to spend hours in a store.

    Finally, a store has to be designed keeping in mind the merchandise that the

    retailer intends to sell in the store and its target audience.

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    The Display and Visual merchandising:

    Visual merchandising is no longer just a matter of making merchandise look attractive for

    the customer. It is the actual selling of merchandise through a visual medium. Visual

    merchandising is the way for the stores to say, This is who we are and what we stand

    for.

    Visual Merchandising at the Hugo Boss Store:

    Color presentation:

    Color is the biggest motivation for shopping. People buy color before they buy size, fit or

    price. People also react to the colors around the garment being considered. Hugo Boss

    introduces a whole new palette each season. Though the styling is similar, it is the new

    color presentation that brings the shoppers into carefully color schemed and color

    coordinated sales floor. Colors can immediately create a mood. The colors that are used

    inside the store are Brown and Yellow. The walls of the store are off white in color

    Significance of each color used at Boss Store:

    Brown: the earth, hearth and the home; the family. Brown is warm and can sometimes

    cast a glow. From the lightest off white and beige to the deepest charcoal brown, it is

    relaxed, and in no way unnerving.

    Yellow: it is sunshine and gold; happy, bright, cheerful, vital, fun filled and alive; it is

    optimism, expectancy, relaxation and a wide open armed acceptance of the world

    suggestive of change, challenge and innovation.

    Off white: the blankest of the blank, but a strong support and able supporting player that

    makes every other color, by comparison turn in bigger, bolder and brighter performances.

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    Lighting at the Boss Store:

    Color as color-means little unless it is considered in relation to the type of light in which

    the color is seen. It is light that makes things visible. All colors depend on light. There is

    natural daylight and artificial light, which can be incandescent, fluorescent, or high

    intensity discharge lighting

    A lighting plan for a store combines many elements and many types of lamps. Hidden

    fluorescent tubes can illuminate a raised element in the ceiling or wash over the perimeter

    walls. Incandescent lamps can pour down on areas over the merchandise while halogen

    lamps can add sparkle and enrich the color of the products in the featured displays.

    At Hugo Boss store the lighting that is used is incandescent lighting. This lighting is used

    for warmth, for emphasis , for highlighting, as well as on the merchandise that thrives

    under them.

    Incandescent bulbs are set into ceiling fixtures to provide a warm and upscale ambient

    light for the mens area. They also light up the merchandise set out on the tables along the

    traffic aisle

    Suggestions for using light effectively:

    Avoid bright, white lights directly on a mannequins face, elbows, or shoes.

    Use colored light to create the right setting for the merchandise.

    It is more effective to light across a display rather than directly down on it. Direct

    down lighting can create unpleasant and unattractive shadows.

    The lighting in a window display should be checked at night. Many imperfections,

    such as wrinkles, are more apparent under the artificial light.

    Fixtures used at the Hugo Boss Store:

    The fixtures that are used in the Hugo Boss Store are

    1. Aisle tables

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    2. Round racks

    3. Back wall

    4. Counter fixtures

    Finally, In selecting a fixture to use on the selling floor, there are certain criteria or

    expectations the display person may have with regard to making that selection the criteria

    include

    Appearance: How does the fixture look on the floor?

    Construction: Is the unit flexible?

    End use: Does the unit make full use of the valuable area of the selling

    floor that the fixture will occupy?

    Upkeep: Is the fixture serviceable, dependable, reliable, and safe?

    Finishes: What the fixture is constructed of and how it is finished will not

    only affect its floor life but its appearance on the floor.

    Display at Hugo Boss:

    The primary purposes of displays are to present and to promote. A display is at its best

    when it simply shows a color, an item, a collection, or just an idea. At Hugo Boss the

    display that is used is a mixture of line of goods display and related merchandise display.

    A Line of Goods Display: Is one that shows only one type of merchandise, although they

    may be in a variety of designs or colors.

    Related Merchandise Display: In a related merchandise display, separates, accessories, or

    other items that go together are displayed because they are meant to be used together,because they share an idea or a theme.

    Display settings:

    In presenting any display, there are some basic approaches that a retailer can take to set

    the scene for the merchandise or the concept to be sold. These approaches include

    following:

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    Realistic setting

    Environmental setting

    Semi realistic setting

    Fantasy setting Abstract setting

    At Hugo Boss the display setting is realistic setting. It is essentially the depiction of a

    room area, or otherwise recognizable locale, reinterpreted in the allotted display area. It is

    the best controlled and most effective in a fully enclosed display.

    CONCLUSION STORE INSIGHTS:

    A good display depends on planning, coordination, and cooperation

    A change of windows set for every 10 to 15 days but should never be longer than

    a month.

    The visual merchandiser should plan advance preparation time for big

    promotional and sale events. These should be developed in cooperation with

    retailers and the promotion and advertising staff for themes, concepts and

    diection.

    Customer Care Executive:

    The customer care executives at Hugo Boss store are an important part of the daily store

    operations. They play an important part in the retail selling process during my

    observations that the cca have

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    Adequate product knowledge.

    Knowledge of the customer.

    Approaching the customer.

    Presenting the merchandise Overcoming the resistance

    Suggestive selling

    Closing the sale

    Evaluation of employees should be done not only based on sales/ day but also other social

    factors and personal attributes should be kept in mind.

    Process in which a CCA entertains the customer:

    Allow him to scan himself so that he feels comfortable with the display

    Then as per what he is looking for.

    He tries to understand the customer

    Product awareness training manuals should be specially made for employees so that they

    can brace themselves with these fashionable brands.

    These manuals would be an added advantage for the employees to understand that how a

    product will get sold.

    It teaches about- color, fabric, size, weight, styling, after sales services, etc.

    For suit section the CCA responsible should be dressed up in the latest suit or the one

    which is not moving out. This technique would really give high results

    Finally, Today's retailers face a number of challenges in delivering customer delight and

    maintaining customer loyalty. Having well-trained and knowledgeable employees using

    the right systems and processes can help give the cutting edge, one needs.

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    Supply Chain Activities:

    Supply Chain Activities:

    This part of my project aims at studying the Supply Chain Management aspects of Boss

    Hugo boss. The reason of studying SCM was to get an insight of actual SCM and

    inventory management practices.

    The interaction with store manager and few employees of Hugo Boss forms the basis of

    this report. The various aspects studied are:

    Supply Chain Management partners

    Drivers of SCM

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    Scheduling of production

    Lead time of supply of materials

    Inventory levels maintained

    Introduction:

    A supply chain is a network of facilities and distribution options that performs the

    functions of procurement of materials, transformation of these materials into intermediate

    and finished products and the distribution of these products to the customers.

    For any store, in all probability, has atleast a hundred suppliers. Some of these could be

    manufacturers, some of them agents and others distributors. The challenges of managing

    a continuous supply of goods from all these different entitities is the challenge of

    managing the supply chain.

    Objectives of an efficient supply chain:

    The objectives of the efficient supply chain management are to ensure that the right

    product reaches the right place at the right time and importantly, for the right price and

    profit for the retailer. It ensures a smooth and efficient flow from raw materials to

    finished goods in the hands of the consumers.

    A Model of Simple Supply Chain:

    SUPPLIERSMANUFACTURERSDISTRIBUTIONCENTRERETAILER

    CONSUMER

    In a most simplistic supply chain the raw materials is procured from the suppliers then the

    raw material is sent for manufacturing and then finally the finished product is sent to the

    distribution centre from there it reaches the retail outlet and finally to the end consumer.

    In getting goods to reach to the consumer the retailer spends a lot of money at each step.

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    An effective supply chain would be the one in which the cost involved in making goods

    available to the consumer is minim

    Supply Chain Model at Boss Hugo Boss Store:

    The whole process of the making goods available to the consumers takes 8 MONTHS.

    HUGO BOSS OFFICE (HONG KONG)

    Cost incurred by the boss Hugo boss

    BIN HENDI (DUBAI)

    4% of the entire inventory

    INDIA

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    Outsourced to clearance agent Rs25000

    DELHI MUMBAI BANGLORE

    AIRPORT AIRPORT AIRPORT

    No warehousing cost

    BOSS HUGO BOSS STORES

    CONSUMERS

    The Supply Chain Management Process:

    As stated earlier that the whole supply chain takes 8 months to make the goods available

    to the consumers. The supply chain for the Hugo Boss starts in the month of August

    where the store manager will order the inventory by going to Hong Kong and ordering the

    merchandise according to the demand of the fashion product.

    Advantages of the Supply chain management:

    Reduction in the holding cost

    Reliable and consistent delivery performance

    Minimum product damage

    Quick response

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    The outsourcings of the logistics are also an added advantage to Binhendi fashion

    ltd:

    Cost saving

    Focus on core business

    Proper utilization of funds

    The warehouse that the Hugo Boss has following function:

    Material storage function

    Material handling function

    Information handling function.

    Inventory &Merchandising

    Management

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    Inventory & Merchandising :

    In this part of my project I plan to study the inventory management practices at Boss

    Hugo Boss. The objective of studying inventory management is that it is directly related

    to the level of customer satisfaction. Hence finding of the inventory management at the

    Boss store will help in improving customer satisfaction.Inventory is stock or store of goods. Inventory are held in order to manage and hide from

    the customer the fact that manufacture delay is longer than delivery delay, and also to

    ease the effect of imperfections in the manufacturing process that lower production

    efficiencies if production capacity stands idle for lack of materials.

    The form of inventory management at Hugo Boss Store:

    At Hugo Boss the form of inventory management is finished product inventory. In this

    form the retailer procures finished products from the manufacturer and according to the

    demand among the target market.

    A function of an effective inventory management systemat Boss Hugo Boss is:

    To meet anticipated customer demand

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    To smooth production req. (seasonal demands)

    To buffer operational problems

    To protect against stockouts

    To take advantage of order cycles( economic lot sizes)

    To hedge against price increases

    To take advantage of quantity discounts

    Objective of the inventory management at Boss Hugo Boss is:

    To increase level of customer service, i.e. to have the right goods at the right place

    in the right amount at the right time

    Minimize the cost of ordering and carrying inventory

    For an efficient inventory management following criteria should be met:

    A system to keep track of the inventory on hand and on order

    A reliable forecast of demand with possible forecast error

    Knowledge of lead times

    Reasonable estimates of inventory holding costs, order costs and storage costs

    At Hugo Boss the inventory is managed in the following ways:

    The system used to keep track is of the inventory is TALLY

    The forecasting is done by the store manager and his team

    The lead time that exist is of 8 months

    The estimates of holding cost and order cost is maintained by the store

    manager.

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    Finally every month end the company has a system of retail audit where

    the inventory in the story is manually counted and tallied with the actual

    figures with the auditor

    Inventory system at Hugo Boss is perpetual inventory system where the no of each

    sku is counted manually and then finally tallied with the records that the auditor keep

    with him.

    Lead Time at Hugo Boss: 8 months.

    A lead time is the:

    Time interval between ordering and receiving the order

    Greater the lead time variability, greater is the need for additional stock to reduce

    risk of shortage

    Safety Stock:

    Safety stock is a business term used to describe a level of stock that is maintained below

    the reorder level to protect an organization against stock outs during replenishment

    periods

    The safety stock is kept for 2 months at Hugo Boss.

    Safety stock is usually used as a buffer to protect organizations from stock outs caused

    by inaccurate planning or poor schedule adherence by suppliers, as such its cost (in

    both material and management) is often seen as a drain on financial resources which

    results in reduction initiatives.

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    Various methods exist to reduce safety stock, these includes better use of technology,

    increased collaboration with suppliers, and more accurate forecasting In a lean supply

    environment lead times are reduced which can help minimize safety stock levels

    reducing the likelihood and impact of stock outs

    The safety stock is required because demand may fluctuate at any point of time.

    In conclusion:

    The inventory management of the Hugo Boss Store is effective and is meeting the

    requirement of the customer; however the target market that the store is catering to

    wants a new stock every month if management could cater to this requirement then It

    will lead to more customer satisfaction which is only possible by reducing the lead time

    and effective logistics.

    Fast Moving vs

    Slow Moving Products:

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    Casual wear is not very high priced hence price conscious as well as brand

    conscious customer buy it

    As denim and t shirts are displayed together hence it results in cross selling.

    Even for gifting purposes customers prefer to buy t shirts or shirts

    Display of the casual wear on the right side results in impulse buying as once the

    customer enters the store the first side he moves is towards the right as observed

    Finally the sale of the good is closed due to efficient sales staff as they are able to

    identify the customers needs and are able to up sell and cross sell the products.

    The reasons for the slow moving products:

    Out of fashion products are ordered

    Colors and sizes ordered are odd that people dont like it.

    Display of the slow moving products in corners

    High prices of suits

    Visual merchandising effects the sales of the product as the presentation should be

    such that it shows that the products value

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    Customer Relationship Management:

    There are three or more aspects of CRM, each of which can be implemented in isolation:

    1. Operational CRM: The automation or support of customer processes involving

    sales or service representatives

    2. Collaborative CRM: Direct communication with customers not involving sales or

    service representatives (self service)

    3. Analytical CRM: The analysis of customer data for a broad range of purposes

    Operational CRM

    Operational CRM provides support to "front office" business processes / teams, including

    sales, marketing and service. Each interaction with a customer is generally added to a

    customer's contact history, and staff can retrieve and update information on customers

    from the database as necessary.

    Data gathered on customers can be used to determine how a customer is handled. Data

    may include profitability, contact history and products purchased. Staff members are able

    to access this data when servicing customers or making a sales pitch.

    BIMTECH, PGDRMM, 45

    http://en.wikipedia.org/wiki/Front_officehttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Front_officehttp://en.wikipedia.org/wiki/Marketing
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    Collaborative CRM

    Collaborative CRM covers the direct interaction with customers. This can include a

    variety of channels, such as the Internet, whether through a website or e-mail, or

    automated telephone systems. It can generally be equated with self service. One of the

    latest trends in collaborative CRM isbehavioral emarketing which is focused on building

    an ongoing relationship with customers through online mediums (emails, RSS Feeds,

    XML, Vlogs, Blogs, etc.).

    The objectives of Collaborative CRM can be broad, including cost reduction and service

    improvements.

    Analytical CRM

    Analytical CRM analyzes customer data for a variety of purposes, including:

    design and execution of targeted marketing campaigns to optimize marketing

    effectiveness

    design and execution of specific customer campaigns, including customeracquisition, cross-selling, up-selling, retention

    analysis of customer behavior to aid product and service decision making (e.g.

    pricing, new product development, etc)

    management decisions, e.g. financial forecasting and customer profitability

    analysis

    prediction of the probability of customer defection (churn).

    Analytical CRMgenerally makes heavy use ofPredictive analytics.

    Technology considerations

    The technology requirements of a CRM strategy can be very complex and far reaching.

    The basic building blocks include:

    BIMTECH, PGDRMM, 46

    http://en.wikipedia.org/wiki/Behavioral_emarketinghttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Acquisitionhttp://en.wikipedia.org/wiki/Cross-sellinghttp://en.wikipedia.org/wiki/Up-sellinghttp://en.wikipedia.org/wiki/Retentionhttp://en.wikipedia.org/wiki/Predictive_analyticshttp://en.wikipedia.org/wiki/Behavioral_emarketinghttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Marketing_effectivenesshttp://en.wikipedia.org/wiki/Acquisitionhttp://en.wikipedia.org/wiki/Cross-sellinghttp://en.wikipedia.org/wiki/Up-sellinghttp://en.wikipedia.org/wiki/Retentionhttp://en.wikipedia.org/wiki/Predictive_analytics
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    A database to store customer information. This can be a CRM specific database or

    an enterprise data warehouse.

    Operational CRM requires customer agent support software.

    Collaborative CRM requires customer interaction systems, eg an interactive

    website, automated phone systems etc.

    Analytical CRM requires statistical analysis software, as well as software that

    manages any specific marketing campaigns.

    Support CRM systems require interactive chat software to provide live help and

    support to web site visitors.

    Privacy and Data Security

    The data gathered as part of CRM must respect customer privacy and data security.

    Customers want the reassurance that their data will not be shared with third parties

    without their consent or accessed illegally by anyone.

    Customers also want to benefit when their information is used by companies. For

    instance, an increase in unsolicited telemarketing calls is generally resented by customers

    while a small number of relevant offers is generally appreciated.

    Customer relationship management software

    Customer relationship management software is comprised of both business management

    and automation of the front-office divisions of an organization. CRM software is

    essentially meant to address the needs of Marketing, Sales and Distribution, and

    Customer Service and Support divisions within an organization and to allow the three to

    share data on prospects, customers, partners, competitors and employees. The purpose of

    CRM software is to manage the customer through the entire lifecycle, i.e. from prospect

    to qualified opportunity to order.

    CRM software automates many of the needs of Marketing, Sales and Support users, such

    as Telephony, or the ability to conduct phone calls and manage call data, and tools to

    capture, share and manage automated alerts on lead data as it passes through the sales

    pipeline. CRM software provides a standard framework for pushing leads through a sales

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    pipeline and managing it amongst many stakeholders in real time, in order to provide

    better customer relations and grow revenues by creating more sales, and losing fewer

    customers

    Sales force management systems are information systems used in marketing and

    management that automate some sales and sales force management functions. They are

    frequently combined with a marketing information system, in which case they are often

    called customer relationship management systems.

    Sales Force Automation Systems (SFA), typically a part of a companys customer

    relationship management system, is a system that automatically records all the stages in a

    sales process. SFA includes a contact management system which tracks all contact that

    has been made with a given customer, the purpose of the contact, and any follow up that

    might be required. This ensures that sales efforts wont be duplicated eliminating the risk

    of irritating customers. SFA also includes a sales lead tracking system, which lists

    potential customers through paid phone lists, or customers of related products. Other

    elements of a SFA system can include, sales forecasting, order management andproduct

    knowledge. More developed SFA systems have features where customers can actually

    model the product to meet their required needs through online product building systems.

    This is becoming more and more popular in the automobile industry, where patrons cancustomize various features such as color and interior features such as leather vs.

    upholstered seats.

    An integral part of any SFA system is company wide integration among different

    departments. If SFA systems arent adopted and properly integrated to all departments,

    there might be a lack of communication which could result in different departments

    contacting the same customer for the same purpose. In order to mitigate this risk, SFA

    must be fully integrated in all departments that deal with customer service management.

    Advantages to sales people

    Proponents claim that sales force automation systems can improve the productivity of

    sales personnel. Here are some examples:

    BIMTECH, PGDRMM, 48

    http://en.wikipedia.org/wiki/Information_systemshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/w/index.php?title=Sales_force_management&action=edithttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/w/index.php?title=Contact_management_system&action=edithttp://en.wikipedia.org/w/index.php?title=Sales_lead_tracking_system&action=edithttp://en.wikipedia.org/w/index.php?title=Sales_forecasting&action=edithttp://en.wikipedia.org/w/index.php?title=Order_management&action=edithttp://en.wikipedia.org/w/index.php?title=Product_knowledge&action=edithttp://en.wikipedia.org/w/index.php?title=Product_knowledge&action=edithttp://en.wikipedia.org/wiki/Information_systemshttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/w/index.php?title=Sales_force_management&action=edithttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/w/index.php?title=Contact_management_system&action=edithttp://en.wikipedia.org/w/index.php?title=Sales_lead_tracking_system&action=edithttp://en.wikipedia.org/w/index.php?title=Sales_forecasting&action=edithttp://en.wikipedia.org/w/index.php?title=Order_management&action=edithttp://en.wikipedia.org/w/index.php?title=Product_knowledge&action=edithttp://en.wikipedia.org/w/index.php?title=Product_knowledge&action=edit
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    Rather than write-out sales orders, reports, activity reports, and/or call sheets,

    sales people can fill-in prepared e-forms. This saves time.

    Rather than printing out reports and taking them to the sales manager, sales people

    can use the company intranet to transmit the information. This saves time.

    Rather than waiting for paper based product inventory data, sales prospect lists,

    and sales support information, they will have access to the information when they

    need it. This could be useful in the field when answering prospects questions and

    objections.

    The additional tools could help improve sales staff morale if they reduce the

    amount of record keeping and/or increase the rate of closing. This could

    contribute to a virtuous spiral of beneficial and cumulative effects.

    These sales force systems can be used as an effective and efficient training device.

    They provide sales staff with product information and sales technique training

    without them having to waste time at seminars.

    Better communication and co-operation between sales personnel facilitates

    successful team selling.

    More and better qualified sales leads could be automatically generated by the

    software.

    This technology increases the sales persons ratio of selling time to non-sellingtime. Non-selling time includes activities like report writing, travel time, internal

    meetings, training, and seminars.

    Advantages to the sales manager

    Sales force automation systems can also affect sales management. Here are some

    examples:

    The sales manager, rather than gathering all the call sheets from various sales

    people and tabulating the results, will have the results automatically presented in

    easy to understand tables, charts, or graphs. This saves time for the manager.

    Activity reports, information requests, orders booked, and other sales information

    will be sent to the sales manager more frequently, allowing him/her to respond

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    more directly with advice, product in-stock verifications, and price discount

    authorizations. This gives management more hands-on control of the sales process

    if they wish to use it.

    The sales manager can configure the system so as to automatically analyze the

    information using sophisticated statistical techniques, and present the results in a

    user-friendly way. This gives the sales manager information that is more useful

    in :

    Providing current and useful sales support materials to their sales staff

    Providing marketing research data : demographic, psychographic, behavioural,

    product acceptance, product problems, detecting trends

    Providing market research data : industry dynamics, new competitors, new

    products from competitors, new promotional campaigns from competitors, macro-

    environmental scanning, detecting trends

    Co-ordinate with other parts of the firm, particularly marketing, production, and

    finance

    Identifying your most profitable customers, and your problem customers

    Tracking the productivity of their sales force by combining a number of

    performance measures such as : revenue per sales person, revenue per territory,

    margin by , margin by customer segment, margin by customer, number of callsper day, time spent per contact, revenue per call, cost per call, entertainment cost

    per call, ratio of orders to calls, revenue as a percentage of sales quota, number of

    new customers per period, number of lost customers per period, cost of customer

    acquisition as a percentage of expected lifetime value of customer, percentage of

    goods returned, number of customer complaints, and number of overdue accounts.

    More complex models like the PAIRS model (by Parasuraman and Day) and the

    Call Plan model (by Lodish) can also be used.

    Advantages to the marketing manager

    It is also claimed to be useful for the marketing manager. It gives the marketing manager

    information that is useful in:

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    Understanding the economic structure of your industry

    Identifying segments within your market

    Identifying your target market

    Identifying your best customers

    Doing marketing research to develop profiles (demographic, psychographic, and

    behavioral) of your core customers

    Understanding your competitors and their products

    Developing new products

    Establishing environmental scanning mechanisms to detect opportunities and

    threats

    Understanding your company's strengths and weaknesses

    Auditing your customers' experience of your brand in full

    Developing marketing strategies for each of your products using the marketing

    mix variables of price, product, distribution, and promotion

    Coordinating the sales function with other parts of the promotional mix (such as

    advertising, sales promotion, public relations, and publicity)

    Creating a sustainable competitive advantage

    Understanding where you want your brands to be in the future, and providing an

    empirical basis for writing marketing plans on a regular basis to help you get there Providing input into feedback systems to help you monitor and adjust the process

    Strategic advantages

    Sales force automation systems can also create competitive advantage. Here are some

    examples:

    As mentioned above, productivity will increase. Sales staff will use their time

    more efficiently and more effectively. The sales manager will also become more

    efficient and more effective.(see above) This increased productivity can create a

    competitive advantage in three ways: it can reduce costs, it can increase sales

    revenue, and it can increase market share.

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    Field sales staff will send their information more frequently. Typically

    information will be sent to management after every sales call (rather than once a

    week). This provides management with current information, information that they

    will be able to use while it is still valuable. Management response time will be

    greatly reduced. The company will become more alert and more agile.

    These systems could increase customer satisfaction if they are used with wisdom.

    If the information obtained and analyzed with the system is used to create a

    product that matches or exceeds customer expectations, and the sales staff use the

    system to service customers more expertly and diligently, then customers should

    be satisfied with the company. This will provide a competitive advantage because

    customer satisfaction leads to increased customer loyalty, reduced customer

    acquisition costs, reduced price elasticity of demand, and increased profit margins.

    Disadvantages

    Detractors claim that sales force management systems are:

    difficult to work with

    require additional work inputting data

    dehumanize a process that should be personal

    require continuous maintenance, information updating, and system upgrading

    costly difficult to integrate with othermanagement information systems

    Encouraging use

    For all the reasons stated above many organizations have found it difficult to persuade

    sales people to enter data into the system. For this reason many have questioned the value

    of the investment. Recent developments have embedded sales process systems that give

    something back to the seller within the CRM screens. Because these systems help the

    sales person plan and structure their selling in the most effective way they give a reason

    to use the CRM

    The purpose ofCustomer Reference Management is to improve and enhance the level

    of "advocacy" a set of customers displays related to a vendor's products & services.

    Specifically, a vendor's objective is to gain referrals and positive "word of mouth" from

    this advocacy.

    BIMTECH, PGDRMM, 52

    http://en.wikipedia.org/wiki/Management_information_systemshttp://en.wikipedia.org/wiki/Sales_processhttp://en.wikipedia.org/wiki/Management_information_systemshttp://en.wikipedia.org/wiki/Sales_process
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    Methods employed include participation in a written case study, speaking on a telephone

    call with a potential customer or the media, or engaging in an event or seminar to share

    the story of a product or services success.

    Ultimately, a professionally desisgned customer reference management program should

    result in the following:

    Improving the effectiveness of the sales process

    Your relationship with your customers will grow

    You should not have to keep asking your customer to give you a references. This

    is known as reference customer burnout.

    Allows any size organization to communicate their customers references across

    the entire organization

    You should be able to measure the effectiveness of a customer reference program

    One benefit of the internet is that potential customers can listen and/or view customer

    references onlin

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    COMPETITORS

    ANALYSIS:

    The Competitors Analysis

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    The five top purchases of the affluent consumer that visiting Hugo Boss:

    Jewellery

    Clothing

    Digital accessories

    Time wear

    Cosmetics and skincare

    CATCHING UP

    Spending on luxury goods

    (per annum per affluent household)

    India $8,900

    WHERE'S THE MARKET for Boss Hugo Boss:

    The new generation affluent

    CEOs and other senior professionals

    in their thirties and early forties

    Entrepreneurs in new businesses

    Returning "prodigal children"

    Franchisees, and small and medium

    retailersINCREASING NUMBERS

    The luxury space in India

    1.6 million households; this number is likely to cross 3 million by 2010

    Each household earns around Rs 45 lakh (about $100,000) per year

    The spend is about Rs 4 Lacs ($9,000) per year on luxury/very premium goods and

    services

    The number of households is grow-ing at 14 per cent per year

    Today Hugo Boss, and especially the core brand Boss, is a big lifestyle brand. They are

    the top brand globally. Boss is present in 106 countries where they sell their fashion in the

    high end menswear segment. BOSS is clearly No 1 with a global market share of 13

    per cent. On the second rung are Armani and Zegna in the high end with a market share

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    of 8 per cent and then there are a lot of smaller companies like Canali, Kenzo, etc. In

    women wear they have competitors like Armani, Max Mara and Gucci, and in shoes

    and leather accessories we have competition again from Gucci and Ferragamo.

    Boss Hugo Boss enjoys the first move advantage. It has very few direct competitors.

    In the direct competitors brands like

    Dunhill

    Valintino

    Paulsereli

    Aigner

    Canali

    Zegna

    Armani

    In indirect competition brands like:

    Luivitton

    Mont blanc

    Bvlgari

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    OBSERVATIONS

    Observations:

    Key observations on the customer:

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    According to my observations customers demanded more for the denim jeans, t shirts,

    polo. It is very important that the customers find their sizes also. If possible then atleast

    the hand bags should be made available throughout the year.

    If we follow the movement of the customer upon entering the store they first browsed

    through the boss orange collection and then to the boss black collection. The movement

    was from casual to formals.

    D eman d in terms of the Produ ctline at Hu g

    2

    3

    6

    4

    5

    3

    1

    Access

    Shirts

    Denim

    T-Shirt

    Suits

    Shoes

    Trousers

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    The S.W.O.T Analysis:

    The S.W.O.T Analysis:

    The strength, weakness, opportunity and threat analysis of the Hugo Boss store is

    The strength:

    Location: the location of the store at Oberois is strength for the company as the

    kind of clients visiting the hotel is all luxury loving and are well aware of the

    brand Hugo Boss.

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    No direct competitors: there are no direct competitors for Hugo boss in Delhi. It

    is a market leader in mens wear segment.

    Highly courteous staff: is an added advantage as customers always leave the store

    with a smiling face.

    Exclusive merchandise: the store offers exclusive merchandise which is not

    available anywhere in Delhi.

    The weakness:

    The target group that the store caters to is around 2000 people in Delhi.

    Specialized services are offered to100 or even less people.

    The visual merchandise does not serve the purpose of attracting new customers.

    The merchandise is selling more due to the brand name rather than the Visual

    merchandise.

    Inefficient supply chain, which ultimatley hinders the revenue or the store

    The opportunity:

    With the retail boom the company can open couple of stores in Delhi.

    Company can bring boss women in India and hence increase the target market.

    Increasing income levels

    The threat:

    Opening up of new luxury brands in mens segment

    Changing demographic

    Indian consumer becoming more and more price conscious, they need value for

    money.

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    Recommendations:

    Recommendations:

    Based on my observations and discussions with the staff of the Delhi store I have

    following:

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    The visual merchandising needs improvement, as a carelessly done visual merchandise

    will effect the brand image

    Sales promotions should not be flashed on the newspapers as it hurts the luxury

    brands image. It is very important to maintain the brands exclusivity which is its

    strength

    The supply of hand bags should be adequate

    Product manuals should be given to each store so that everybody on the retail

    floor should have the product knowledge. No one without any adequate product

    knowledge should be allowed on the floor.

    When new stock comes then its setting should be done by closing the store, for an

    hour. So that inconvenience is not caused to the customers

    The company should arrange for a separate dining area for the staff to eat as thw

    smell of the food comes in the front area and it gives a bad impression.

    Area where the suits are displayed should have more space.

    Both the try rooms should be kept functional.

    The store has one tailor who does the alterations, if he could get a helper then

    speedy services can be given to the customers resulting in customer satisfaction.

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    Questionnaire

    'Feed back from fashion consultants

    What is the most important thing for a CCA?

    A. Product knowledge

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    B. Service orientation

    C. Consumer behaviour understanding

    D. Awareness of Latest trends

    (A) (B) (C) (D)

    20% 80% - -

    Do you think training makes any difference?

    A. Yes

    B. No

    (A) (B)

    60% 40%

    What parameters should be used to evaluate the performance?

    A. Sales/ day

    B. Sales/ sq ft.

    C. Social factors including sales/ day

    (A) (B) (C)

    20% - 80%

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    Should a minimum level of qualification be there for CCA's?

    A. Yes

    B. No

    (A) (B)

    80% 20%

    Are you satisfied with the incremental procedure?

    A. Yes

    B. No

    (A) (B)

    100% -

    Is briefing useful or is just a formality?

    A. Yes

    B. No

    (A) (B)

    70% 30%

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    Should personal targets be designed for one's own assessment?

    A. Yes

    B. No

    (A) (B)

    - 100%

    Bibliography:

    BOOKS:

    Swapna Pradhan, Retailing Management, second edition, published by Tata

    Mc Graw-Hill Publishing Company Limited.

    Martin M. Pegler, Visual Merchandising & Display, fourth edition, published

    by Fairchild publications (New York).

    Levy Weitz, Retailing Management, fifth edition, published by Tata Mc

    Graw-Hill Publishing Company Limited.

    WEBSITE:

    www.wikepedia.com

    www.bosshugoboss.com

    http://www.wikepedia.com/http://www.bosshugoboss.com/http://www.wikepedia.com/http://www.bosshugoboss.com/