2.1 Choice of Topic
Before beginning to work on specified store, we had certain meetings among group in choosing the store. We based stored to be selected on store size, staff members, physical location, product range to be maintained in store and on the geographic importance of Store. We have certain choices among Pace, Metro, Hyper Star, Q-Mart and U-Mart but at the end Makro was the only store which fulfil our requirements which will be proved to be as necessary and helpful for our project.
We had visited Makro in the Semester Holidays. At that time we went to Makro for the purchasing of Mobile phone, Computer printer, Digital Camera and also Garments. At that time, we were surprised from the price of products available there. But only thing which annoyed us was stock selves which was situated very next to the shelve containing normal range of Macro Prodict. When our Sir, gave us the gist of Consumer Behavior, we undoubtfully preferred Makro.
2.2 Chosen Theory
We use the concepts in the book “Why We Buy” written by Underhill which is the main source of research, this book guides us some of the specific points that effect the people in buying different products. This book gives some ideas about good and bad layout with signs, displays, lights, space, arrangements, etc. These theories will help to focus and give recommendations to improve the store layout which may help in increasing the sales volume of the store. We use some of the ideas given in “Consumer Behaviour” by Evans and Jamal to add some interesting points to check the consumer behaviour and how to get the attention of customers.
2.3 Data Collection
This project is more practical than theoretical, so all the information collected and used in this research is basically based on the appearance of all the group members individually and collectively in the Makro store. So most of the data collected and analyzed by primary data sources but secondary data collection methods is also used. For secondary information, we have used the company´s official website which is gives information about the histoty and product range of the store and also its aims and professional customer advantages..
2.4 Time Frame
The following timings were used for collections of data and store analysis.
3. Theories, Findings and Analysis
This analysis part shows the relation between our findings through observations and the selected theories from course.
3.1 Layout & Space
Makro has designed their departments in such a way that all the products of the same kind like fresh food, non-food & dry-food etc. are grouped together. For the convenience of the customers currently they have 18 departments and these are:
- Fruits & Vegetables
- Spices & Pickles
- Fish
- Dairy
- Meat
- Grill
- Bakery
- Tobacco
- Beverages
- Beauty Solutions
- Office, Media
- Home Electronics
- Toiletries, Detergents
- Edible Grocery
- Household Goods
- Pots & Pans (Tefal, Sonex, Majestic, Prestige)
- Tableware (Luminarc, Clayworks)
- Glass (Pasabache, Bormioli Rocco, Toyonasic, Ocean)
- Cutlery & Cutting Tools (Cocktail, Kiwi)
- Kitchen Utensils & Serving Articles (Fackleman)
- The range also include decoration products (Walther Glass),
- Candles
- Cleaning items
Ladies wear/Men’s wear/Children’s wear/Shoes/Luggage
- Sports & Seasonal
Home Improvement/DIY (Do it Yourself)
- Lamp fixtures, lamps & bulbs (OSRAM, PHILIPS)
- Electrical items (BUSH) Bathroom & Sanitary (Faisal & ICL)
- Flooring (Krono Flooring)
- Paints and painting accessories (ICI,Master Paints)
- General use and specialized hand tools (Stanley)
- Power tools (BOSCH, Black & Decker)
- Generators (Honda) and operating equipment.
Come to talk on the layout of Makro Ravi Center. At very first stage when we begins to enter the Makro Center we have to pass through the Makro’s check post which have made for security measures. As we pass away from that place we will have to go to the parking area which is huge space as compared to the parking of other shopping place. Near the Parking Space they have designated a place for cart (trolleys) for the convenience of customers. We picked cart from that place move toward the way which will lead us toward the backdoor entrance of Makro Center. At the entrance they have placed a scanning door from which each customer has to pass in order to prove that they are not carrying any weapon. Then we have move toward the Escalator will guided us inside the Makro center. When we reached the internal area of Makro first thing we will watch the Customer Service Office on which on duty Manager Picture was displayed. As we move to the left side we will approach to Electronic Department in which Home Appliances (Television, Sound Systems, Washing Machine Microwave Oven) and Computer Systems and accessories were displayed. As we move further more we will reach the stationary department in which Children and Office stationary were place separately and in very well manner. Then the further more there will be textile (garments) section in which Male and Female garments including undergarments were separately and there was wall between male and female clothing items so that women will feel no hesitation in moving and selecting a clothing product from that specific area. As we move further more will reach the department reserved for household and glass crockery section. One think was not good in that place that they place glass crockery at the height at which child can have easy access to pick and touch the items from that place. As we move straight we will the four departments including Drinks and Beverages, Fruits and vegetables, Fish & Sea Food and last Meat & Poultry Section. The placement and displacement layout of all four departments were awesome. As we move further there will come there stores Diary(Fresh Milk and Sweets), Café(Fast-food Restaurant) and Bakery(Deserts and Bakery items). As we move to right side we will be between the series of shelves on our right, there are the shelves of Basic Commodities, Grocery, Spices, Milk, DIY (Do It Yourself) and Apparel. And on the left side there will be the shelves if Chocolate, Snacks, Tea, Toiletries, Soap, and Detergents’ Shelves.
As we move all the way further, we will reach the counter side in which six cash counter are placed. From where customers have to make payments for the products being purchase and in the result of that payment they will get a slip which will check at the exit place. And when the slips are checked and analysis we will have to move toward the escalator along with the cart. So that in this way Makro Center has organized their layout.
3.1.1 Location
a. Makro Ravi Centre,75 Ravi Road, Lahore (Near Minar-e-Pakistan)
Lahore, Pakistan
3.1.2 Parking
b. Basement Parking at Makro Ravi Centre, Lahore
There is huge parking at the ground store and approximately space for parking is around 4.2 acres. People do not face any problem for parking cars, only they have to travel a lot if they park their car at a distant place but there is no shortage of available space.
3.1.3 Entrance
The entrance of Makro is very wide but due current situation of country, they have placed scanner in it for security purpose which has made the entrance area congested.
3.1.4 Lay Out of the Store
Makro consists of big hall & it has been divided into different sections & many products can be seen in different parts of the store.
As we enter the store, we see that there are about 54 selves placed together each self has display the type of products it contain. The sequence & name of selves are mentioned below.
- Juicer / Blender
- Shampoo
- Toaster / Kettle
- Hair Oil
- Oven / Microwave
- Shampoo Conditioner
- Fans / Exhaust
- Tooth paste / Brush
- Air Conditioner / Fans
- Tooth paste
- Iron / Vacuum Cleaner
- Toilet
- Phenayl
- Scotch Bright
- Refrigerator
- Washing Powders
- Office use
- Polish / Air Freshener
- Color Pencils / Pencils / Markers
- Tissue Paper
- Bags / Games / Software
- Diapers
- Lunch Box / Child Clothes
- Pampers
- Ladies Clothes / Shoes
- Milk Pack
- Men Wear
- Dry Milk
- Mobil Oil
- Tea / Coffee
- Electric Accessories
- Sugar Biscuits
- Bags
- Biscuits
- Rug Mats
- Biscuits
- Table Towels
- Toffees
- Pillows / Bed Sheets
- Chocolate
- Bath / Kitchen
- Nimko
- Chips
- Deserts
- Glass Wear
- Honey / Jam /Mayonnaise
- Tea Set
- Pickles / Chatni
- Pickles
- Ketchup
- Sauces
- Packet Spices
- Salt Spices
- Pasta / Noodles / Baking Ingredients / Dry Fruits
3.1.5 Cash at Counter
c. Cash Counter view at Makro Ravi Centre, Lahore
The space at cash counter is adjusted to the size of cart provided available at macro. As there are 8 cash counter in store, it is rare thing to see long queue before the cashier.
3.1.6 Display
d. Edible Grocery Section at Makro Ravi Centre, Lahore
Makro strength lies in this area they have used display cards for different department name, use display tags for separate men, women ^ children clothes and also placed discount offer for various products but only to be purchased in bulk (5 or more)
3.1.7 Signs
e. Escalator Entrance at Makro Ravi Centre, Lahore
There were many significant signs showing the promotional message especially on the entrance (in front of customer service counter). But store deficiency lies in that spot that they have not display promotional message of any product at the outside of store. So at this point they failed to attract more customers.
3.1.8 Cashier
As mentioned in the above phase there are about 6 cash counters in macro. Each cash counter was operated by one cashier each. The cashier was provided by computerized cash machines and scanning device in order to make accurate speedy cash handling.
We observed that they placed some items near by the cash counter for the customers so that they can save their line and can stop easily and increase sales volume of these items.
3.1.9 Sitting Area
When the customers visit in such kind of big stores, there should be some specific sitting area for the customers and that space the company can use to grab the attention of customers for some of luxury products. But in Makro we have not seen any specific are for sitting. There are many old age people who visit Makro which we observed during our visit and they could be tired during the visit of store but there was no place for them to sit.
3.1.10 Lighting
f. Kitchenware Section of Makro Ravi Centre, Lahore
Effective lighting gives a positive effect for the products and attracts the customers by clearly visible physical features of the products. We observed that is the strength of the macro because their lighting system is very good & effective All the products clearly visible. 3 electricians are available on per shifts that check the lighting system regularly.
3.1.11 Staff
There are around 70 employees per shift currently working in this store that belong to different areas. There are both stationed and out stationed employees. There are around 18% out stationed employees and 82% stationed employees. All employees are skilled and minimum criteria are graduation. Employees work in shifts, when on weekends, public holidays and in Ramadan when customer traffic is high almost all of these are available. Then the no of employees reduces with the customer traffic. On week days around 50 to 60 % of the employees are available. So there no keeps on changing. The general hierarchy is given below.
3.1.12 Consumer Demographic
Target Customers:
Our main target customers are men. 70% are men & 30% are women. The high rate of men in Makro because of this.
- Retailers
- Small shopkeepers
- HORECA(Hotel, Restaurant and Caterers)
- Bulk Customers
- End Users
All over the month customer flow is divided into different types of flows:
- Major traffic
- Minor traffic
- Average flow
There are different flows of customers in all over the month. There is huge flow of customers on weekend and on public holidays. Similarly on the start of month customer number is very large. This is known as major traffic. All over the month flow is normal and this is known as minor flow and average flow. Major flow of customers constitutes retailers and shopkeepers whereas minor flow constitutes end users.
3.1.13 Exit
g. Exit Area at Makro Ravi Centre, Lahore
Exit space is very wide. Before the exit scanners, there is a person appointed to check the luggage according to customer slip which they get from cashier. This activity helps to reduce the risk of the theft items. But in major traffic this activity failed because there is only one person appointed so macro management should appoint more then one person on exit.
4.0 Weakness
- They have placed children’s aged 5-7 years bicycle in front of Electric Board.
- Crockery is placed at the height where a child age 3 can touch and pick that item easily.
- Power tools were placed at lower height, so that thing increases the risk for children injury.
- Inventory Placement.
- Chocolate and Snacks shelves are kept at the back.
5.0 Strengths
- Store placement in Vegetable and Fruits Department.
- Grocery placement of Store.
- Beauty Solution Department organization and placement.
- Separate clothing sections for Males and Females.
- Home Electronics products display and demonstration system.
- Sports products section and the arrangement of that section.
- Separate place reserved for Baby Toys.
- Placement of electric generators.
- Ideal arrangement for Cleaning items.
- Arrangement for Office Equipments.
Chicken, Mutton, Fresh Fish & Seafood placement and order.
- Different sections reserved for soap and detergents.
- Pictures, arrows and language description to help and provide guidance to customers.
- Separate Area’s or portions are reserved for Bakery, Café and Diary.
- Separate arrangement to be made for placement of Cutlery Items
6.0 Swot Analysis
6.1 Strength:
- Largest whole seller platform
- Makro don’t spend money on advertisements through electronic media.
- Makro is operating their business according to the buying pattern of the customers.
- Makro Values its Employees and Customers.
- Defined format adapted to local market needs
- Efficient and low-cost operations
6.2 Weakness
- Not providing goods on credit bases
- Location of the store is quite far away
- Relatively poor security check and balance on few items
- High priced imported items
6.3 Opportunities:
- Changing trend of shopping, people prefer to go the place where they can find maximum variety under one roof
- Plan to open new stores at different locations.
- Company name itself is an opportunity as “Metro” itself is a very popular name and they can expand business with any company they like to.
- People are coming more towards hygienic food
6.4 Threats:
- Competitors like Metro & Hyper Star.
- Inflation
- Government instability
- Terrorism
7.0 Suggestions
- They have to change the children bicycles and should place them near toys sections.
- They should have to place crockery on the shelf at the height where the child age 5-8 cannot approach or touch it. So by doing that they will be able to protect the product from breaking it.
- They should have to pay special attention regarding to place powerful tools away from the height of children age 5-8. So as to minimize child injury risk.
- They should have to place inventory at the store room, so as to make the store looks marvelous not horrible.
- They should have to move the Snack to front in order to attract more customers (Specially children).
8.0 References
