CASE STUDY – CITY MANAGER

Read the passage. Then answer question about the passage below :

Upton is a clothing and accessories brand, started in 2009 in Tokyo, Japan. By 2012, Upton was
declared as the most trendiest and affordable fashion brand in Japan. With a vision to become
the most sought out brand in the Asia, Upton ventured into India in 2014. Initially, they had few
stores in New Delhi, Bangalore and Mumbai. By 2016, they also opened stores in Hyderabad,
Kanpur, Patna, Kolkata and Chennai.

You are the new City Manager for Patna. At present stores are opened only in the South region,
as it is considered to be an upscale and a developing area. Upton has 6 stores which sell only
clothing apparels. Initially, the brand was very well received because of the affordability and
international appeal. However, in the second half of 2017, a nearby mall opened and had
renowned brands, both local and international, which gave customers a variety in fashion and
price as well. This led to lagging in sales target, which were assigned according to number of
store staff.

This bought the stock turnover ratio of stores within the range of 8 - 8.7, from an ideal ratio
range of 10 - 12. Despite many efforts by the previous city manager, the range of the stock
turnover ratio reduced to 7.3 - 8.5. Below is the last 3 months data of your stores:

Stock at
Cost of Selling price of Stock at end
Store beginning of
goods sold goods sold of period
period
I 1700000 1900000 200000 45000
II 1800000 2050000 150000 65000
III 900000 1125000 50000 30000
IV 1700000 1995000 100000 95000
V 1600000 1850000 95000 85000
VI 850000 990000 50000 40000

The company also hires vendors to conduct mystery audits quarterly. Below are their areas of
evaluation, ratings and comments across all stores:

Sr. No. Areas of Evaluation Ratings (out of 5)

1 Customer Experience 2
2 Branding and Merchandising 2.5
3 Stock Management 2
4 Operational Hygiene 3.5

A summary of their analysis for all stores have been shared below:
Areas that meet standards: Customers were greeted at the store, all promoters were groomed
well and stores maintained standards of cleanliness and hygiene.

Areas of improvement: At the entry there was no sign or indication for the baggage counter or
area for taking shopping bags. The ambience did not match the festive season and there were
no clear sign boards or hoardings regarding discounts.

Areas which need immediate attention: There was less staff as compared to the number of
customer. The operation of the inventory management system was not well known to the staff.

On enquiring with store managers, they say that - there is shortage of staff, because of which
they have to put staff on the floor with minimal training, which results in mistakes and error in
recording inventory. Often there is shortage of stock; because of which customers prefer to
shop on the online website or mobile portals. The main customer feedback is - there are only
apparels here of same kind with no other product. Your task is to help the stores achieve their
targets, increase brand presence, innovate marketing strategies and increase company
revenue.

Q1. How will you alter the sales target allocation process?
Options :
a. Will not change it.
b. Based on size of store.
c. Based on skills and capability of the store staff.
d. Based on trend and potential of region.

Q2. What factors will you consider when assigning budget to stores?
Options :
a. Store size.
b. Store location.
c. Strength of store staff.
d. Store performance.
Q3. What steps will you take to reduce attrition in the stores?
Options :
a. Rotate roles often to deal with monotony.
b. Introduce team building activities.
c. Encourage staff in decision making process.
d. Introduce rewards and bonus structure in stores.

Q4. What will help reduce the difference between recorded vs. actual inventory?
Options :
a. Delegate inventory management solely to the store manager as they know how to
manage records accurately.
b. Invest in a new inventory management system.
c. Hire more staff, so that each staff can be divided into various departments.
d. Invest in current employee’s training on inventory management system.

Q5. If you were asked to explore other regions, how will you go about it?
Options :
a. Understand the buying patterns and brand preferences of the target population in those
regions.
b. Understand the infrastructural costs involved in the region.
c. Will prefer not exploring other regions till one region is stable.
d. Understand demographic preferences of the region.

Q6. Which of the following market strategies will help in increasing sales?
Options :
a. Partner with other companies to get relevant discounts and packages that can be
offered as vouchers.
b. Constantly change visual merchandize to have a better appeal and response.
c. Sponsor local events.
d. Introduce discounts and offers on public holidays.

Q7. Which of the following can help in increasing brand presence?

Options :
 a. Initiate opening of a store in the nearby mall and explore other regions.
b. Propose attractive social media activities to reach the customers.
c. Advertise more using flyers to make the customer aware of products and current offers.
d. Tie up with institutions/events where there would be access to the target population.

Q8. Which of following would help drive sales in stores?

Options :
a. Strive for more personal relations with customers by providing intimation of upcoming
and continuing offers.
b. Hire more staff in proportion to the number of customers.
c. Incorporate customer feedback in policies and procedures.
d. Provide seasonal discounts as other brands.

Q9. Fill in the blanks :

Sale = Rs. 84555 Blank 1 : ATV =

Quantity = 42 Blank 2 : ABS =
Bills = 32 Blank 3 : Conversion % =
Walkins = 60 Blank 4 :ASP =
Square. Feet area = 900 sq. ft Blank 5 :PSFPD =

Enter only numeric values.

Q10. Fill in the blanks :

ATV = Rs. 3700 Blank 1 : Sale =

ASP = Rs. 2600 Blank 2 : Quantity =
Conversion = 60% Blank 3 : Bills =
Walkins = 65 Blank 4 :ABS =
Square. Feet area = 2000 sq. ft Blank 5 :PSFPD =

Enter only numeric values.

Q11. Calculate the Category wise Contribution in Value:

Total Sale = Rs. 50, 00,000/-

Category %Contribution Contribution Amount

Shirts 37% Blank 1 : Rs. ____________

Trousers 18% Blank 2 : Rs. ____________

Suits & Blazers 28% Blank 3 : Rs. ____________

Accessories 8% Blank 4 : Rs. ____________

Women’s Wear 9% Blank 5 : Rs. ____________

Q12. Fill in the blanks :

Sale = Rs. 135470 Blank 1 : ATV =

Quantity = 85 Blank 2 : ABS =
Bills = 62 Blank 3 : ASP =
Walkins = 102 Blank 4 :Conversion % =
Square. Feet area = 1400 sq. ft Blank 5 :PSFPD =

Enter only numeric values.

Q13. How will you help stores sell comparatively higher priced products?
Options :
a. Introduce new products that are priced even higher than the existing products.
b. Repackage the product with additional relevant products to increase its perceived value.
c. Couple the price of the product with its long-term value.
d. Create a perception of the product to make the high-priced products seem accessible.

Q14. The store managers have complained that often there is shortage of stock, which
means customer requests have to be declined. What action will you take to deal with this
issue?
Options :
 a. Ask store staff to direct customers to the mobile application or online portal.
b. Provide all stores with additional buffer stock for such situations.
c. Ensure stock inventory is continuously calculated so as to re-stock whenever required.
d. Accurately forecast demand based on store and product performance.

Q15. What advice will you give the store managers to further improve store ambience for
customers to have a better instore experience?
Options :
a. Have elaborate displays with latest products on Mannequins.
b. Have a well thought out store design and layout.
c. Make sure there is proper signage wherever required.
d. Make the store atmosphere inviting and comfortable using visual merchandising.

Q16. What steps will you take to address customers’ concerns?

Options :
a. Propose introduction of accessories in stores.
b. Tie-up with other brands for their services; salons, beauty products etc., and provide
vouchers to customers.
c. Introduce seasonal merchandise mix.
d. Introduce referral points for customers.

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