Contributed by: Muhammad Jahanzaib Shafique & Shahbaz Murad
To surprise many, Imtiaz Super Market is providing its customers the unique
shopping
experience since 1955, and is one of its kind modern retail
departmental store offering products. In Karachi, Imtiaz is currently operating with 5 outlets
located in all major areas in Karachi namely
Nazimabad, Gulshan-e-Iqbal, DHA,
Bahadurabad and Shahra-e-Faisal. It is the first
ever retail-store located in the southern region
of Pakistan’s financial capital.
Convenience, amazing product range, excellent
customer service and unmatched affordability
are few of the features that make Imtiaz Super
Market the leader in modern trade channel shopping in Pakistan. Flexible timings allow customers to shop more
conveniently in a safe and secure environment
unlike open markets; where the products like
vegetables, fruits and meat are offered in an
unhygienic environment.
RETAIL FORMAT
a) Factors for choosing store location:
Mall availability for the type of store Imtiaz
wants to develop is the first key element in
establishing a new store. High rentals are also
charged for the extent of space which Imtiaz
looks for. Infrastructure including 3 to 4 floors
and parking space is necessary for the store to
run its operations.
Supply Chain Management
Warehouse inside the store is also another
important thing for Imtiaz to carry out its daily
operations without shortage of inventory. An
inside warehouse is established at each store
and continuous updating of that warehouse inventory is maintained to run the operation
smoothly throughout the day.
Premium Location:
Premium location in terms of high footfall of
customers is achieved by the opening of Imtiaz
super markets in the main areas of Karachi. The
areas in which stores are safe to operate and
which are easily accessible by the customers in
their convenient timing. Prime Locations
including the most important and densely
populated areas are targeted.
b) Type of Location
Imtiaz super market has carefully chosen the
location of their stores. All the major areas of
Karachi which are densely populated and have
average leading to elite standard of living are
the target market of their stores. For solving the
problem of parking area and making sure that
roads adjacent to their stores do not get stuck
and avoid traffic jams huge space for parking is
reserved adjacent to stores. To reduce time
wastage in parking the vehicle by customers themselves valet parking is also available at
many stores.
STORE DESIGN & RETAILING IMAGE
MIX
a) Employee Type and Density
Minimum qualification of employees required
by Imtiaz is matriculation. Employees speak
national language i.e. Urdu. Female and male
employees are designated as per the nature of
their job. Products related to women personal
care and hygiene have mostly female
employees at the counters and for helping
customers while others categories of products
have male employees. Final checkout counters
have both female and male counters to
conveniently manage the traffic checking out of
the store. The dress code is blue shirt and black
pent for males and black long shirts and blue pants for ladies with a black scarf. Most of the
salesmen are engaged in work in the sections of
basic commodities. As far as density is
concerned, they have 4- 5 employees working
in each aisle.
b) Merchandise Type and Density
Imtiaz Store is very dense as far as merchandise
is concerned and has approximately 1,000
pieces per sq ft. It has both a wide and deep
assortment of merchandise to cater a versatile market.
c) Fixture Type and Density
The fixtures at Imtiaz Store include blue plastic
racks that carry all items. The number of
fixtures per square foot of space at Imtiaz is 40.
The density of the fixture complements the
density of the merchandise there, thus making
shopping convenient for customers.
d) Sound Type and Density
High quality sound systems are installed in the
stores. Five times prayers calls are lively recited
on the speakers. Important and emergency
announcements are also made through the
speakers.
e) Odor and Density
Every department of the store have their own
special odor prevailing in the stores.Bakery department have smell of the baked items,vegetables have fresh smell at their department
while personal care and hygiene fragment have
a nice odor of different perfumes, soaps,
shampoos etc. A tangy smell can also be smelt
when entered in the section of spices.
f) Visual Type and Factors
Bright white lights are installed inside the stores
to brightly present all the products and provide
convenience to the customers to find and
inspect the items without facing any difficulty.
Bright white lights also induce the customers to
buy more.
VISUAL MERCHANDISE AND
DISPLAY:
Through visual merchandising Imtiaz reduces
the employee mix and increase per square feet
returns and can further helps in reducing
marketing budgets.
To attract the customers and make them buy
more in bulk Imtiaz store utilize the freezers of
different companies which attract customers to
buy more and more of their desired products.
Pepsi, Coke, K&N’s and many more companies
have their fridges placed in the store with
attractive color and pricing schemes. In
perfume and deodorants section customers can
use from large variety of products and choose
them through free testing samples.
Advertisement on the front of Imtiaz stores also attract customers and induce them to buy more
of that product. New temporary style stalls of
different companies are also placed in the store.
SHOP DISPLAYS
Exterior and interior shop displays are used for
the to make the customers decide and buy
quickly. Shop displays also help customers to
find their desired product without the wastage
of time.
a) Live Displays
Products from the personal care and hygiene
companies are used for the live displays on the
entrance of Imtiaz store like fair & lovely etc.
b) Counter Displays
For impulse purchases Imtiaz uses its counter
displays for merchandise like suparis, bubble
gums, cigarette lighters and batteries.
c) End Cap Displays
Imtiaz uses end cap displays as their point of
purchase products like staples etc. and induce
customers to less browse and buy more during the distance covered between aisles and end
cap.
STORE ATMOSPHERICS
The store atmospherics at Imtiaz Store has
been properly maintained to create the unique
image of the store.
a) Exterior
Exterior of the store depicts the overall image
of a high quality super store. Advertisements
are displayed on the front of store through bill
boards and different large Pena flexes.
b) Signage
The storefront has been designed in a way that
compliments the color combination that has
been used throughout the store. A big light blue
sign with Imtiaz Store written in bold letters is
the first thing you see when you enter the lane.
c) Interior
Interior is designed to facilitate customers
starting from the good temperature inside the
store. As per the weather conditions, bright
lights and the proper maintenance of the aisle
placed with formality throughout the store.
Space Mix:
The selling area at Imtiaz Store accounts for
70% of the total area, and the retailing 30% has been kept circulation and back area
respectively. The 30% non-selling area includes the staircase and obstacles which leads to the
warehouse. Back area includes the go down and
the warehouse present within boundaries of the
store.
Selling space of Imtiaz store is divided in term
of size and location of different groups of
merchandise such as U-shaped fastener and
impulse items. These goods constitute about
50% of the store and are placed at the deeper
end of the store.
Retail Space Management:
The customer enters to the store for buying
basic commodities like wheat, rice and other
staples which are kept in the deeper of the store,
customer often keeps walking inside follow the
walkway where it leads to basic commodities.
This technique works because it makes
customers to buy stuff that is not even in their
shopping list. Haji Imtiaz Khan is very critical
about the space management in his store as he believes that, “80 out of 100 customers follow
the silent guide that we provide them. His
philosophy was “if we don't provide the right
way to walk, our sales can go down drastically”.
He said that the floor is marbled and clean our
space strategy must force customer to move
within the boundaries of the store.
Impulse goods are also kept in the cash counter.
Ice Cream and some local chocolates are kept
near the cash counter for not only attracting kids
also attracting the attention of passers as well.
Some other items like personal care products
(Facewash) are also kept near the stairs.
Layout/Circulation Plan:
a) Inside store:
The display and the placements of products
catches customer’s eyes and enable them to get
exposed to the entire store offerings.
b) Lightning and Display Strategy:
Cosmetics, household and chocolates are
highlighted with lightening and displays
strategically placed along the aisles which pulls customers traffic from section to section. Each
aisle width is planned as per the product type
and density of the product pattern in that area.
The main aisle is 5ft wide, which then goes to
into 8 more aisles each for different product
categories.
c) Entrances:
There are two entrants in the main store for kids
and women. The circulation pattern followed by
Imtiaz Store is “Grid Circulation”. The aisles
and fixtures are at the right angle of each other.
Imtiaz entrance goes directly to the sweet
section and house-hold section, this allow
customers to go directly to their destination
without moving through the store.
d) Floor Space Management:
The employees and store owners are working
very hard on floor space management for
making sure that the customers frequently visit
their store.
e) Gross Margin on Footage:
Each month they check the per square foot
merchandise selling and the customer traffic.
The hot spots include the rice and staples area.
Cold spots include the household items but by
adding more varieties of merchandise and
imported goods there they are effectively
converting it into warm spots.
MERCHANDISING
Imtiaz Store merchandise hierarchy is
widespread. They carry a wide assortment of products to numerous categories
Hierarchy:
As a research suggests held in 2014 Imtiaz
Store is serving approx. 90,000 customers per
day, it caters an assortment of more than 40,000
variations and options. Their largest category is
of beauty products that is sub divided into
soaps, lotions, creams, face masks, scrubs,
fragrances, (body sprays and perfumes for both
Men and Women gender), hair care products
(shampoos, balms, gels, oils, dyes and
conditioners) and dental care (creams,
toothpastes, toothpowders, and mouth
fresheners). The other divisions confectionary,
include chocolates, biscuits, chewing gums,
toffees, and chips. Food groceries include pasta
(rice, noodles, spaghetti etc.), sauces, cooking
oils, and ghee’s, foods, grains, spices, and dairy
products (cheese, butter, milk, yoghurts, and ice
creams). Under the division of beverages,
Imtiaz carries an assortment of tea, coffee, energy drinks, soft drinks, juices (bottled or
tetra packs) and milk shakes.
other divisions include pharmaceuticals,
sanitary, sundry (cigarettes, battery cells, small
electrical items, men’s shirts and socks, animal
food, and plastic items like combs, brushes etc.
and utensils and crockery (also includes
decorative items).
Buying Function:
a) Open to Buy:
Imtiaz store has open to buy plan which enables
Imtiaz to achieve strategies and the standards of
qualities of deliveries to their customers.
b) Forward planning:
Imtiaz forwards planning by forecasting sales at
the end of month (EOM) inventories for
specified periods. They pre-plan a stock for one
week in advance and they store a week’s stock.
The responsibility of the buying function. The
buying function of Imtiaz store is segmented
into packaged goods and perishable good. This
function is structured to meet the needs of the
store in managing the wide range of products.
- Fresh Produce
- Frozen foods
- Foods (packaged grocery)
- Medicines
- Non-food items (personal products/
Household goods/ General
merchandise/ Apparel).
c) Markup/ Markdown:
No special markup charges at Imtiaz store
because Imtiaz store is following a low-cost
strategy but there are often markdowns in
products/ merchandise like biscuits and sweets.
Their markdowns are seasonal like during December when it is wedding or Eid season and
any other special occasion like 14th August or
Ramzan package.
d) Shrinkage:
At Imtiaz Store they face shrinkage but they
control this by keeping a manual checking of all
the employees as well as customers. Their
employees are given special uniforms which
they have to wear while they arrive at work their
uniforms have no pockets so it lessens the
chances of employees shrinkage and they keep
their wallets and other things around the
counter, . Shrinkage by customers is controlled
by proper checking by all the employees at the
lower level as well as the middle management
level.
Supply Chain Management at Imtiaz Super Store
Supply chain management at Imtiaz super store comprises of the following sub-sections
Procurement and Distribution
Logistics Management
Inventory Management
Information management
Procurement and Distribution:
Imtiaz Super Store’s process of procurement involves reducing its purchasing costs as far as possible so that it can offer best price to its customers. The company procures goods directly from the manufacturers, bypassing all intermediaries. Imtiaz Super Store has distribution centers. Imtiaz Super Store’s own warehouses supplies about 80% of the inventory. Each distribution center is divided in different groups depending on the quantity of goods received. The inventory turnover rate is very high, about once every week for most of the items.
Logistics Management:
This involves fast & responsive transportation system. Company owned trucks services the stores. These dedicated trucks enable shipping of goods from distribution centers to the stores within 2 days and replenish the store shelves thrice a week. The drivers hired are all very experienced & their activities are tracked regularly. This allows the drivers to be aware of the terms & conditions for safe exchange of Imtiaz Super Store property. For more efficiency, finished goods are directly picked up from the manufacturing site of supplier, sorted out and directly supplied to the stores. This system reduces handling & storage of finished goods, virtually eliminating role of distribution centers & stores.
Inventory Management:
Considering the expansion of Imtiaz Super Store stores, it was essential to have a very good
communication system. Imtiaz Super Store ensures that unproductive inventory is as less as possible, by allowing the stores to manage their own stocks, thereby reducing pack sizes across many categories and timely price markdowns. Imtiaz Super Store makes full use of its IT infrastructure to make more inventories available in case of items that customers wanted most, while reducing overall inventory. By making use of Bar-coding, different processes like efficient picking, receiving & proper inventory control of the products along with easy packing and counting of the inventories was ensured. A Centralized inventory database allows the personnel at the store to find out the level of inventories and location of each product at a given time. It also shows the location of the product like distribution center or transit on the truck. When the goods are unloaded at the store, the inventory system is immediately updated.
Information Management:
In recent years, Imtiaz Group has achieved growth through an aggressive strategy for opening new stores. While Supermarket sales are a major driver for this strategy, the company’s warehouses had become burdened by poor inventory visibility and control and limited data that compromised its decision making. As an expanding business, they required a modern IT platform that could consolidate their Retail and warehousing operations and foster the planned pace of growth.
No centralized access to inventory information & availability of proper sales data
Inefficient stock monitoring & movement
High transaction time at point of sale and system constraint to handle high footfall at store
Data existed in siloes at each branch & lead inaccurate inventory calculation
Unmanageable data consolidation & audits
For this purpose, iVend Retail Management Suite with SAP Business One was introduced. Benefits of this new system are as follows:
iVend Retail enhanced key retail transaction performance at store & increased overall employee efficiency
Synchronized data transfers between Stores & enterprise ensured accuracy across Retail chain
Allowed to measure sales numbers better and track inventory stock levels efficiently
Easy identification of slow moving inventories for improved purchasing decision making
RETAIL MARKETING STRATEGIES
Private Labels:
Imtiaz launched its personal brand PONAM. Imtiaz Store has been popular for providing excellent quality rice under their brand named 'Ponam' rice. Besides rice, Imtiaz store has also provided spices with its brand name. Now many other products like honey, and other grocery items are provided the brand umbrella of Ponam. It has its own factories located in Karachi which helps it to be efficient in providing the required units in time to the store with reduced cost of manufacturing.
STORE POSITIONING
Target market
Includes people from lower to upper classes.
traffic on weekends, as it's filled with families who come to the store especially for their weekly grocery and other items.
CONCLUSION AND FORTHCOMING FUTURE
Imtiaz is already a market leading retail store due its everyday low price strategy with addition to efficient and effective value chain network which includes supply chain management, personal brand Ponam, excellent customer service and customer driven policies. Imtiaz is goal orient organization and opening stores across Pakistan and they now cater a bigger market of diverse culture. Future of Imtiaz is in untapped online market which needs to be addressed soon. Sooner this step is taken to tap this opportunity the more fruitful it will be to the owners of Imtiaz.
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