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RETAILING PROJECT
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SUBMITTED BY:
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NAMES
AKMAL WARICH
USMAN SHAHID
SAUD ATIQ

REG#
L1S10BBAM0083
L1S10BBAM0079
L1S10BBAM0075

SUBMITTED TO:
PROF: B. MAILK
SEC:

DATE:24/1/14

Bank square market, model town,

Lahore, Punjab
Category Specialist Store
Deals with all types of
sports
o Expert opinion
o Guaranteed Quality
Product
o
o

Think about sports and you will find everything under one
roof

PAKISTAN SPORTS CITY

Type of Retail Store:
Category specialist or category killer plays an important part in any retail
industry. Currently there are many category specialists operating in Pakistani
markets. When you talk about bicycles, Neela Gumbad comes to your mind.
Similarly, there is Hafeez Centre for mobile & computers and Abid Market for
electronics. However, when you think about sports, nothing comes to mind
which is differentiable, having deep assortment and a perfect category
specialist. So we decided to open a category specialist store for major and
popular sports in Pakistan. The retail store in the name of Pakistan sports
city will offer deep assortment for sports goods like cricket, football, hockey,
snooker, table tennis, swimming and body building at low price. Along with
that, excellent service mindset is complementary.

Functions Performed by Retailers:

Providing Assortment
We offer very deep assortment in sports goods. As the store is positioned as
category specialist, the store will provide every possible product lying in the
specific category. The products would be available at any time.
Breaking the bulk
Fortunately, best manufacturers regarding cricket, hockey, football etc, are
located in Pakistan. Sialkot in Punjab is the hub of the sports industry. So
after buying in bulk from that, the customer will get the unit product at
reasonable price.
Warehousing and storing
Pakistan sports city will own a mega warehouse for keeping all SKUs. Storing
a specific quantity is vital to fulfill any sudden rise in demand.
Selling
Selling is the most important part of retail functioning. Satisfying the
customer and creating more loyal customers id the ultimate goal for any
retailer. The management of Pakistan sports city will use combination of

strategies and CRM program to enhance the selling and to create more loyal
customers.
Providing services
Excellent service mindset is mandatory to compete in the industry. We will
provide following services to the customers.
Opportunity to test the product
Expert opinion for the products
Excellent, digital display, portraying the technical aspects of sports
goods
Return facility
Replacements
Advise for proper use of the products
Delivery

Keeping the new trends in the retail industry, online selling and home
delivery will be the part of the services provided by Pakistan sports city

Customer buying behavior:

Need recognition
Customers will recognize the need when they want to buy any sports goods,
either to but for own self or to gift it to someone.
Information search
According to the type of need, like expensive good or non-expensive good,
they seek the information about retailers
Evaluation of alternatives
If Pakistan sports city portray it according to the positioning, the customer
will place Pakistan sports city at highest while evaluating the retail store for
buying sports goods.
Choice of alternatives
At this stage the customer will choose the retail store on the basis of
convenience and the value created by the retailer. Convenience can be in the
form of location and value can be added by discounts, variety etc.
Purchase

At this stage the customer actually buy the product from a retail store.
Post purchase evaluation
This is very important stage for both customer and retailer. Customer will
evaluate his or her decision of choosing the specific retail store. So if the
customer is satisfied, the retailer will gain the opportunity of repeat
purchase, word of mouth and customer loyalty.
Getting into the consideration set:
It is important for startups like Pakistan sports city to get into the
consideration sets of the customers. In order to achieve this objective we can
do two things, increase beliefs about the stores performance and add a new
benefit.
This can be done by providing superior services and add benefits like return
facilities, free repairs etc.

Strategic Retail planning process:

In order to carry out successful business operation, every retail organization
must formulate strategies and plan their activities. Following are major
stages of strategic Retail planning process.
Define the business mission
The business mission of Pakistan sports city is to provide best quality sports
goods to the customers at optimum price and to become the most reliable
and preferred retail store in the sports retail industry.
Conduct a situation analysis
According to the market audit of sports retail industry, there is gap for such a
retail store. There is no category specialist sports store in the current location
of market. Furthermore, it is easier to serve and to deliver the products to
the customers.

SWOT Analysis

Strengths:
Premium location of Model Town
Deep assortment

 Low prices for the customers

Following new trends of retail markets
Providing superior services
Weaknesses:
New in the market
Operating and fixed cost is high
Opportunities:
Can establish chain of stores in other cities
Can create partnership with sports club and go for related
diversification
Threats:
Inflation and operating cost
Forward integration by the mega suppliers like CA
Identify strategy opportunities
The strategic opportunities for Pakistan city sports are establishing chain of
the stores all over the country and related diversification in the form of
opening sports training centers etc.
Evaluate strategic alternatives
According to market analysis and competitive environment, chain of such
retail store is more viable for Pakistan sports city once the first retail store is
established in the region of Lahore.
Established specification objective and allocate recourses
The objectives of opening of chain of the stores are to expand and grow in
terms of delivering sports goods, production and profits. The most valuable
source will be the practical experience of first store; in addition finances are
as important. Finances can be arranged through bank loan or best way is to
use the income from existing retail store.
Develop a retailer mix to implement strategy
The next most important step is to develop a retail mix for the specific
strategy.

 Evaluate performance and make an adjustments

This is the most important stage of retail planning process. Evaluating the
performance will allow us to improve and excel in the business.

Retail market strategy:

There are four broad categories of retail market strategies

Market penetration:
Pakistan sports city is penetrating into the existing sports market of Lahore.
The idea is to compete and sustain on the bases of key advantages like
sustainable competitive advantage.
Market development:
Online selling will enable Pakistan sports city to find new markets for their
existing products. It will also broaden the trade area.
Target market:
Demographically, all the professional and non-professional players of major
sports in Lahore are the target market of Pakistan sports city. Online selling,
website and social media are also making the players of Cricket, Football and
Hockey as customers of Pakistan sports city.

Sustainable competitive advantage:

Sustainable competitive advantage consists of numerous elements. Pakistan
sports city is planning to work on each element to beat the competition and
to become the market leader.
Customer Loyalty
Competitive prices and superior services will help to gain the customer
loyalty. Pakistan sports city will keep the data base of their customers to
identify its premium customers. 20/80 rule must be kept in the mind.
Location
Location of Model Lahore is the biggest advantage for Pakistan sports city. All
the cricket matches of PCB first-class are mostly held in Model Town. The
most recognized cricket and football clubs are located in Model Town. So
there is a highest probability of customer visit.
Human recourse
Pakistan sports city will emphasize on employees training. Especial programs
will be arranged to educate the employees to satisfy the customers in the
best possible way.
Distribution and Information Systems
Collaborating and sharing information will be the main focus for Pakistan
sports city. It is extremely necessary to manage all the SKUs.
Unique Merchandise
Pakistan sports city will plan to make every available for the customers,
attaining the deepest assortment ever in Pakistan for sports goods.
Vendor Relations
Long term relations with vendors will depend on the volume of purchases
and on time payments to the supplier. This will help Pakistan sports city to
create an advantage of having best sporting goods available at any time.
Customer service
Opportunity to test the product, expert opinion for the products return
facility, replacements and advice for proper use of the products are the

customer services to create customer loyalty and to gain the sustainable

competitive advantage.

Retail site store selection

We will select the retail site at model town because there are many sports
club near the model town, schools and colleges are also located near bank
square market as well. At this place there is no such category store place,
customers have to go to the other side of canal to purchase the sports
products which make difficulties for customers and heavy cost is incurred.
Location
Model town
Trade area:
Trade area dividend in three zones
Primary trade area
Our primary trade area is model town
Secondary trade area
Our secondary trade area is township, gulberg, DHA and fiasal town etc
Tertiary trade area
Our tertiary trade area is rest of Lahore city

Tertiary rest of Lahore city

Secondary area
Primary trade area
Model town
DHA, Gulberg,
Township

Retail mix:
Strategic market components are determined by several factors like price,
communication, personnel and location.
Price:
Keeping the factor of price sensitivity into the consideration, Pakistan sports
city planned to set their price from lower to moderate. In addition, discounts
card, membership cards and loyalty cards will be issued to give benefits to
the loyal customers and premium customers.
Communication:
Communicating the benefits of the products is extremely essential. So
Pakistan sports city will use every medium to communicate the customers
about the benefits of buying from Pakistan sports city. In order to gain this
goal, all types of media will be used. Communication with vendors and flow
of information is also as important.
Personnel:
Employees and management can play a vital role in the success of any
business. Pakistan sports city will focus on training employees and on
customer relationship management. So dealing with customers and with
suppliers must be done through skilled, hardworking and dedicated
employees.
Location:
Location of Model Town Lahore is the best location for all potential
customers. Most famous grounds, clubs and training centers are located
nearby.

Issue in retail HRM:

Part time employees

Unskilled employees
Communication problem
Employees behavior
Salaries unfair
Conflicts with sub-coordinators

Learning

Expense control
Action
Less
motivation level

How to resolve the HRM issue

Training program
Incentives

CRM implementation in retailing

Collecting the customer data

Analyzing customer data and identifying target customers

Implementing CRM programs

Developing the CRM programs

Collecting customer data:

We collect the data by the history of purchase of sports products made by
the customer including the purchase date and we also collected contact
number and other data from school, colleges and university and sports clubs
by providing loyalty card, purchase throw website and on special promotion
like discount offers and by the interest of customers in the favorites sports.
Analyzing the data and identifying the target customers
After collecting the data we analyze the data which customer is most
profitable in which types of sports which is help in that how much customer
is paying and how may time customer visit our shop and which combination
sports product should be placed near to each other. We will also find out the
customer life time value, the contribution made by the customer in profits,
then we will divided these cards into three categories; platinum, gold, iron
and lead.
Developing the CRM program
In developing CRM program process, we select the most profitable customer
whom contribution is the most in the profits. We will then give discounts on
sports goods purchased by such customers. it might include sports items,
free shirts, balls and gift hampers.
Implementing the CRM programs
We will update the customers data base over the period. It will help to
introduce the new IT system to maintain the customer data and also to keep
in touch with profitable customers. Mass advisement, email, mobile
messaging will be used to inform the customers about the products

Negotiating with vendors:

Negotiating with vendors is very essential to manage the cash flow and to
get the product in time during the whole year.
Terms of purchase:
It is necessary to prolong the payment period to manage the cash flow. In
addition we can get discounts as well. All this negotiation must be done in a
very good environment with spoiling the long term relation with vendor.
Exclusivity:

Pakistan sports city is planning to make arrangements with mega brands like
CA and Boom Boom to offer their product on Pakistan sports city for the first
time that no other retailer will get the rights to offer new arrivals.

Retail communication mix

Advertising:
Banners we located the banner in the Model Town grounds/clubs etc.
We will Distribute the brochures in societies, sports clubs and
academies, colleges, universities and schools and grounds
Word of mouth
Sports magazine
Ad in News papers
Team and tournament sponsorships we will sponsor the selective
teams and local leagues
Event sponsorship we will sponsor the local events like youth festival
Cable network for the TV commercial
Direct marketing

School
University
Colleges
Sports complex
Cricket club
Cricket academy

Public relation
Orphans houses
We make a good relationship with orphans house which will help to
create the good image our brand and fulfill the social responsibilities.
Trust school
In trust school we will arrange the sports event and providing all items of
sports free which will be fulfill the social responsibilities and build the
good brand image,
Sponsorships

We will provide the sponsorship schools, colleges and universities to make

the good public relation.
Web marketing
Social media
We will make a face book page and blog.
websites

Lay out design and visual merchandise:

We make shelves for different categories of sports products like cricket
products, football, hockey and snooker etc.
Racks
Wall fixtures

Visuals
Lighting
LCD
Window display