Documentos de Académico
Documentos de Profesional
Documentos de Cultura
ON
“ FACTORS THAT INDUCE SUCCESS OF RETAIL OUTLET
(SPECIAL EMPHASIS ON LOCATION)”
FROM
I.T.S – INSTITUTE OF MANAGEMENT, KNOWLEDGE PARK-III
GREATER NOIDA
SUBMITTED BY
FACULTY MENTOR
PROF.NEHA ZAIDI
I.T.S-INSTITUTE OF MANAGEMENT
1
CERTIFICATE BY FACULTY MENTOR
C. Fulfills the requirements of the rules and regulations relating to the final
live project of the institute.
D. Is up-to the standard both in respect of contents and languages for being
reffered to the examiner.
Prof.Neha Zaidi
2
Faculty Mentor
DECLARATION
All the data and information mentioned in this project have been collected through
primary data and secondary data. Based upon the concept of business objective of
the project in mind, the recommendations have been made.
The recommendations are made, keeping all the costs, expenses and technical
barriers as constant.
3
ACKNOWLEDGEMENT
)”, Gurgaon
INDUCE SUCCESS OF RETAIL OUTLET(SPECIAL EMPHASIS ON LOCATION
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TABLE OF CONTENT
Page no.
Acknowledgments 3
Abstract 6
1. Chapter-1 (Introduction) 5
1.1 Need of study 8
1.2 Scope of study 9
1.3 Objective 10
1.4 Research methodology 11
2. Chapter-2 (Company profile) 16
2.1 Product line 20
2.2 Sponsorship 22
2.3 Corporate information 23
2.4 Slogan 23
2.5 adidas originals 24
2.6 Product technology 25
2.7 Management hierarchy 27
2.8 Retail excellence 28
2.9 Training 32
2.10 Operation 33
3. Chapter-3 (Analytic framework/ model used) 35
3.1 Market analysis 41
3.2 Location strategy 46
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3.3 Site specific analysis 50
4. Chapter-4 Analysis of research work 65
5. Chapter-5 Conclusion 75
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EXECUTIVE SUMMARY
The performance of the retail outlets depends upon many factors such as:
• Inventory keeping,
• Visual merchandise,
Of all these factors, first and most important factor is Location of retail outlet. Location is
the major determinant factor for success and future of any retail outlet.
This study includes analysis of retail hygiene, visual merchandising and overall retail
atmospheric factors that plays a significant role in retail industry to attract customer inside the
store. These factors also affect the sales of the retail outlets. Hence this study also includes
analysis of both internal as well as external factors that affects the sales of retail outlets. In order
to improve the store ambience and sales of particular store several needful inputs taken from
managements.
Adidas company is having many types of outlets (retailing channels) i.e. retail stores,
distributors, MBO’s, EBO’s, Key accounts, shop in shops, factory outlets etc. Out of these an
assignment is given to study the adidas retail stores and analysis of factors that induce success of
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NEED OF STUDY
The choice of a store location has a profound effect on the entire business life of a retail
operation. A bad choice may all but guarantee failure, a good choice, and success. This report
takes up site selection criteria, such as retail compatibility and zoning, that the small store
owner-manager must consider after making basic economic, demographic, and traffic analyses.
It offers questions the retailer must ask (and find answers to) before making the all important
choice of store location. The first step in choosing a retail business location takes place in your
head. Before you do anything else, define your type of business in the broadest terms and
determine your long term objective. Write them down. This exercise will help you greatly later
in choosing a retail location. In picking a store site, many store owners believe that it's enough to
learn about the demographics ("people information" like age, income, family size, etc.) of the
population, about the kind of competition they will be facing, and about traffic patterns in the
area they are considering. Beyond a doubt, these factors are basic to all retail location analysis.
Once you have spotted a tentative location using these factors; however, you have only done half
the job. Before you make a commitment to moving in and setting up, you must carefully check
several more aspects of the location to help insure your satisfaction with —and, most
8
OBJECTIVE OF PROJECT
1. To formulate the location strategy and site selection for new retail
outlet
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RESEARCH METHODOLOGY
Most science have their own specific scientific methods, which are supported by methodologies
The social science is methodological diver’s using qualitative, quantitative, and mix method
approaches. Qualitative method includes the case study, phenomenology, grounded theory, and
ethnography, among others. Quantitative method include hypothesis testing, power analysis, met
Type of research:
The nature of the study was exploratory, descriptive and analytical. The study aims at
finding the factors that induce success of retail outlet and factors should be considered to
select location for retail outlet. Review of related literature on location strategy for retail
outlet and interaction with various retailers e at different market location have given an
idea about the attributes to be considered for the analytical study of store location.
The views of existing retailers can provide valuable insights to retail location in developing
appropriate location for new retail outlet. The study insights include understanding the factors
that are conducive to the success of existing retail outlet of Adidas. And it also analyses factors
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that should be considered before finalizing the location for new retail outlet.
As research design applicable to exploratory studies are different from objective firmly in mind
Which searching for hypothesis, exploratory design are appropriate; when hypothesis have been
established are to be listed, conclusive design are needed. It should be noted however, that the
research process tends to become circular over a period of time. Exploratory may define
hypothesis, which are then tested by conclusive research; but a byproduct of conclusive research
Other characteristics of exploratory research are flexibility and ingenuity, which characterize the
investigation. As we proceed with the investigating it must be on the alert to recognize new
ideas, as it can swing the research in the new direction until they have exhausted it or have found
a better idea. Thus they may be constantly changing the focus of invest as new possibilities come
to attention.
It should be added here that formal design in the research is the key factor.
The reason for selecting this mode of research for this type is that it’s a probably quickest and
most economical way for research to find possible hypothesis and to take the advantage of the
work of other and utilize their earlier effort. Most large company that have maintained marketing
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research programs over a number of years accumulated significant libraries of research
Data source
Source of information for the purpose of this project study, primary and secondary data was
Primary data – data original, collected from investigation are known as primary data. The
primary data in this study was collected from the retailers for this purpose questionnaire was
framed.
Secondary data- secondary data means data that are already available i.e. they refer to the data
which have already been collected and analyzed by someone else. When the researcher utilizes
secondary data, then he has to look in to various sources from where he can obtain them.
Secondary data either be published or unpublished .usually published data are available in
various publication of the central, state, and local bodies. In technical and trade journals, books,
magazines, newspaper, reports and publications of various associations connected with business
Procedure
The research to be conducted to achieve the objectives of both exploratory and descriptive in
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Sample size: 80
The sample size includes retailers of the various location in Bangalore which covers malls/hyper
market and high street market to analyze the factors that are important in order to finalize
Types of data:
Secondary: website, annual report of companies, magazines, and CMIE data base etc.
As it is secondary research, all the data is selected after rigorous analysis of article from
All the collected is done by marketing analyst across the world and is compiled in this project to
understand this term “study of factors that induce the success of retail store” more effectively.
The study being descriptive in nature it is dependent on primary data, to a large extent.
The primary data for the study is generated through personal canvassing of a schedule. A
This is done to ensure the effectiveness of schedule as the single most important tool for
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direct structured questionnaire containing hypothesis was administered to retailers to
understand the factors that contribute to finalize the location for retail outlet.
1. The project is limited to the market of Bangalore; the conclusions drawn may not be
2. Since being proprietary to the organization, the information contained in the project is
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COMPANY PROFILE
Adidas AG is a German sports apparel manufacturer and part of the Adidas Group, which
consists of Reebok Sportswear Company, Taylor Made-adidas Golf Company, and Rockport.
Besides sports footwear, the company also produces other products such as bags, shirts, and
other sports and clothing related goods. The company is the largest sportswear manufacturer in
Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike.
The company's clothing and shoe designs typically feature three parallel bars, and the same motif
A brief history
1928-Shoes made by Adolf Dassler were worn in Olympics games for the first time.
1948-The company adidas is formed. The name “adidas” was derived from Adolf’s nickname
After a period of trouble following the death of Adolf Dassler's son Horst Dassler in 1987, the
company was bought in 1989 by French industrialist Bernard Tapie. Tapie decided to move
production offshore to Asia. He also hired Madonna for promotion. He sent Walter Head, from
Christchurch, New Zealand, a shoe sales representative, to Germany and met Adolf Dassler's
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descendants (Amelia Randall Dassler and Bella Beck Dassler) and was sent back with a few
1994-Combined with FIFAYouth Group, SOS Children's Villages became the main beneficiary.
1997-Adidas AG acquired the Salomon Group who specialized in ski wear, and its official
corporate name was changed to Adidas-Salomon AG because with this acquisition Adidas also
acquired the Taylormade Golf Company and Maxfli which allowed them to compete with Nike
Golf.
1998-Adidas sued the NCAA over their rules limiting the size and number of commercial logos
on team uniforms and apparel. Adidas withdrew the suit, and the two groups established
guidelines as to what three-stripe designs would be considered uses of the Adidas trademark.
2005- Adidas told the public that they sold their partner company Salomon Group for €485m to
2005-Adidas declared its intention to buy British rival Reebok for $3.8 billion (US). This
takeover was completed with partnership in January 2006 and meant that the company will have
business sales closer to those of Nike in North America. The acquisition of Reebok will also
allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the
world.
Adidas has corporate headquarters in Germany, and many other business locations around the
world such as Hong Kong, Toronto, Taiwan, England, Japan, Australia and Spain. Mainly sold
in the U.S., Adidas makes lots of assets from these countries and is expanding to more oversea
countries.
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COMPANY MISSION STATEMENT
Company’s mission – “To be the leading sports brand in the world”. The adidas group strives
to be the global in the sporting goods industry with sport brands built on a passion for sports and
a sporting lifestyle.
Vision- our passion for sports makes the world a better place.
Brand values
• Authentic
• Passionate
• Inspirational
• Innovative
• Honest
• Committed
PRODUCT LINE
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APPARELS 40% contribution in total business
Adidas is manufacturing footwear, apparels and accessories for different sports categories. These
1. Running: Adidas currently manufactures several running shoes, including the adiStar
Control 5, the adiStar Ride (the replacement for the adiStar Cushion 6), the Supernova
Sequence (the replacement for the Supernova Control 10), and the Supernova Cushion 7
(which will soon be replaced by the Supernova Glide), among others. In addition, their
performance apparel is widely used by runners. Adidas also uses kangaroo leather to
2. Training
3. Tennis: Adidas has sponsored tennis players and recently introduced a new line of
tennis racquets. While the Feather is made for the "regular player", and the Response for
the "club player", Adidas targets the "tournament player" with the 12.2 oz Barricade tour
model. Adidas sponsors the following professional players: Marat Safin, Dinara Safina,
Ana Ivanović, Novak Djokovic, Gilles Simon, Marcos Baghdatis and doubles team Bob
and Mike Bryan. Adidas tennis apparel contains the ClimaCool technology found in
4. Football: One of the main focuses of Adidas is football kit and associated equipment.
Adidas also provides apparel and equipment for all teams in Major League Soccer.
Adidas remain a major company in the supply of team kits for international football
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teams. Current examples include France, Germany, Greece, Romania, Argentina, Spain,
5. Cricket: In 2008, Adidas made their first big move into the cricket market, sponsoring
English batting star Kevin Petersen & Ian Bell. Their products are now available, notably
6. Golf: In 1997, Adidas purchased Tailor-made, and made it a subsidiary. The image
and focus of Taylor Made was redirected shortly after the acquisition to take over the
driver market. The company succeeded in achieving this goal in late 2005 when it
officially became the No. 1 driver in golf. On 14 October 2008, Adidas, through its
7. Basketball
8. Adventures
9. Swim
10. Lifestyle
Lacrosse: In 2007, Adidas announced the future production of lacrosse equipment, and
will sponsor the Adidas National Lacrosse Classic in July 2008 for the top 600 high
Out of these 12 categories running and training are most business generating
categories.
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Sponsorship:
Adidas are the main sponsor and kit supplier of the highly successful New Zealand national
rugby team, the All Blacks. Adidas also are the kit supplier to the Argentina national rugby team
Adidas are the main sponsors and kit sponsors of the successful Australian Cricket Team and the
England Cricket Team. They are also the main sponsors of the Indian Star Cricketers Sachin
Tendulkar and Virender Sehwag. Adidas are the main sponsors of Australian Domestic Cricket
Competitions - Pura Cup, KFC Twenty20 Big Bash, and Ford Ranger One Day Cup. They are
sponsors of the Indian Premier League Teams Delhi Daredevils and Mumbai Indians.
Adidas also sponsors the Gold Coast Titans and St George Illawarra Dragons rugby league clubs
Adidas is the longstanding kit provider to the Germany national football team, a sponsorship that
Adidas are very active at sponsoring top football clubs such as IFK Göteborg, A.C. Milan,
Olympique de Marseille, Ajax Amsterdam, Bayern Munich, FC Schalke 04, Benfica, Chelsea
F.C., Liverpool F.C., Newcastle United F.C., Galatasaray SK, Fenerbahçe SK, UANL Tigres,
Real Madrid, Club Atletico River Plate, SE Palmeiras, Club de Fútbol Universidad de Chile, and
the Colombian football teams Club Deportivo Los Millonarios, Deportivo Cali and Atletico
Nacional.
Adidas and Major League Soccer announced a 10-year sponsorship agreement in November
2004 to make Adidas the official athletic sponsor and licensed product supplier for the league,
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Adidas also sponsors events such as The London Marathon.
Adidas has also been marketing in Nascar, sponsoring big name drivers like Dale Earnhardt Jr.
. Corporate information
PRODUCT TECHNOLOGIES
FOOTWEAR TECHNOLOGIES:-
RUBBER- EVA
COMPOUND
TORSION Provides stability and mid foot support MIDFOOT T.P.U.-THERMO
POLY URETHANE
TRAXION Provides superior grip on loose and OUTSOLE CARBON RUBBER
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(Run, Adven.) uneven surface
(Soccer) Provides grip in all directions with OUTSOLE TPU,NYLON,PEBAX
HEEL
PROMODERATOR Keeps foot stable, prevents excess MID FOOT T.P.U.-THERMO
SOLE
Push Through Stability and protection against sharp MID FOOT T.P.U.-THERMO
APPARELS TECHNOLOGIES:-
body dry
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Clima WARM (INSULATION) keeps you All
OBJECTIVE: - To have an excellence and standardization among all adidas store across.
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Target vs. achieved (store and individual both) avg. transaction value (ATV), item transaction
No. of bills
• Make a recommendation
• Make a recommendation
TRAINING:
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• The new staff should be given a brief on the brand, the company and the products.
• The new staff should works as a stock boy spending at least 3 days in the stock room so
• Once he is familiar with the names of the entire product, the sporting category etc. the
sales staff should be taught on skills of customer handling, adidas history and adidas
technologies.
OPERATION
1. SOUTH
2. WEST
3. EAST
4. DELHI
5. REST-NCR
1. KARNATKA
2. ANDHRA PRADESH
3. TAMIL NADU
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4. KERLA
OUTLETS:
Though marketing authorities have written volumes on customer psychology and researchers
have spent their lives analyzing buying decisions, we are still searching for selling strategies that
will always deliver. The unpredictability of sales makes our task a continual challenge.
Motivating customers to visit the store and making them buy are two different things and require
different strategies. Research has revealed that 60% of customers make buying decisions while
they are in the store. This revelation clearly signifies the value of ambience, design, and
display in the retail store that direct customers to make purchasing decisions.
A few simple ideas can revitalize a store's displays. Apart from proper utilization of space, a
strategic mix of colors, layout, and balance can help retail professionals create an enticing
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Here are some tips that can help retail professionals not only attract customers but also convert
STOCK ANALYSIS: This includes complete analysis of stock in hand, stock maintains, aging
STORE ANALYSIS: This includes complete analysis of store about hygienic factors, visual
Select the focal point of the store. A store lacking a focal point will confuse visitors. Unless
you determine what visitors should notice in your store and design accordingly, people will
Plan the layout. Rather than displaying products haphazardly, visualize some layouts, sketch
some potential designs, and try out one or two before settling on the shape of your display plan.
Create symmetry. Good stores balance colors, spacing, and heights and weights of products.
Keep the design simple. Trying to do too much takes away from a store's design. The goal is to
keep the layout easy to follow and attractive to customers. Simple rows and shelves at eye level
Loud Music: Playing music in a retail store can help create a certain atmosphere for our
shoppers. Music that is too loud, inappropriate or of poor quality can run a positive shopping
experience.
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Burned-out or Poor Lighting: Replace any burned out light bulbs as soon as possible. Make
sure all customer areas of the store have ample lighting and take into consideration shoppers
with aging or less than perfect eyesight. Your store should be well illuminated for all customers.
Offensive Odors: Certain odors are understandable and may even appeal to the customer's sense
Disorganized Checkout Counters: This particular area where a customer’s financial transaction
is taking place should not show any signs of disorganization. Like messy dressing rooms, a
disorganized checkout counter can lead to theft. Keep those register areas neat and tidy.
HIDDEN FACTORS: Analysis of factors which are not apparent in nature but affects the
business activity of retail outlets: for example; customer awareness about store, location of store
etc.
In addition to considering these primary factors, retail store professionals should strive to
innovate and change their displays periodically. Learning has great value in store management,
and there is no harm in acquiring ideas from competitors. Effective monitoring and analysis of
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B. To formulate the location strategy and site selection for new retail outlet
Descriptive work
Retail revolution is a strategic marketing firm with expertise in and passion for place based
marketing- helping dynamic retailers get the best result from their location. Our site selection
service includes:
• Market analysis:
• Location strategy:
Using the information gathered in the market analysis, a comprehensive location strategy
will be developed including key spatial factors square footage ratio calculations and ideal
site description.
Once the location strategy has been determined and shared with the commercial retailers,
Retail Revolution will conduct on site investigation of proposed outlet, exploring things
like signage site lines, pedestrian and auto traffic counts, access and how the site fits the
retail environment.
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The majority of retail locations fail, but that’s because the majority do not ever take the time to
methodically and thoughtfully explore the relationship between their product, location and
customers.
The choice of a store location has a profound effect on the entire business life of a retail
operation. A bad choice may all but guarantee failure, a good choice, and success.
This publication takes up site selection criteria, such as retail compatibility and zoning, that the
small store owner-manager must consider after making basic economic, demographic, and traffic
analyses. It offers questions the retailer must ask (and find answers to) before making the all
The first step in choosing a retail business location takes place in your head. Before you do
anything else, define your type of business in the broadest terms and determine your long term
objective. Write them down. This exercise will help you greatly later in choosing a retail
location.
In picking a store site, many store owners believe that it's enough to learn about the
demographics ("people information" like age, income, family size, etc.) of the population, about
the kind of competition they will be facing, and about traffic patterns in the area they are
considering. Beyond a doubt, these factors are basic to all retail location analysis.
Once you have spotted a tentative location using these factors, however, you have only done half
the job. Before you make a commitment to moving in and setting up, you must carefully check
30
several more aspects of the location to help insure your satisfaction with —and, most
Marketing analysis
Before a successful location strategy can be developed a full assessment of the market conditions
1. Strategic context:
This is determined through 1-2 in person meeting with the client, as well as continual
communication over the course of the project. This process gives us direction by
determining:
• SWOT analysis
This analysis is done through external secondary research and provides an overview of
• Legal/regulatory issue
1. Market research:
The most important step: determining the nature of industry, customer and competition.
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This includes
a. Market segmentation
b. Target market
a. Market Segmentation
characteristics.
1. Homogenous
2. Diffused
preferences
3. Clustered
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Degrees of Segmentation
If Segmentation is considered as a process with two polar points from zero to complete, four
For example:
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Basis of Segmentation
There is no one way of Segmenting the Market. A Marketer may look for one or
more variable
• Geographic
• Demographic
• Psychographic
• Behavioral
1. Demographic Segmentation
2. Psychographic Segmentation
1. Demographic Segmentation
Age basis and Lifestyle: adidas make product for kids and adult people.
Gender: different type of footwear, apparels and accessories for men and women
category.
Income: different range product for customer according to income level. For example;
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adidas mainly known as sports brands. Further in sports, there are different sports
Psychographic Segmentation:
dynamics of purchase can be assessed & marketing offer can be designed only on
• Social Class
• Life-style
• Personality
Social class:
Society consists of a structure, which represents a hierarchy of classes or grades of people. Caste
is one of the divisions of class system in India along with wealth. However, presently social class
is determined by a combination of factors like education, occupation, income, wealth and others.
1.Upper-Upper
2.Lower-Upper
3.Upper-Middle
4.Lower – Middle
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a. Target market
Next Step, Targeting involves evaluating the various segments and selecting how many
and which ones to target or Target market is the group of customers that the retailer is
seeking to serve.
• The location strategy of other thrift stores, Where they are, what population do
Once the market place is understood, a detailed and precise location strategy is possible.
Location strategy:
Using the data from the marketing as well as further consultation with the client, the location
strategy outlines:
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.
1. Type of business
Well before hitting the street to look for a location, take a hard look at the type of business you
will be operating. For example: what is your product mix? Your product mix will have an impact
on such things as the amount of SQFT and storage space required at the location. How much
2. Demographic:
Another critical component of retail location selection understands your target market, both in
terms of your target shopper and the geographic area surrounding your proposed location. If you
are choosing a city or state to locate your retail store, research the area thoroughly before making
a final decision. Read local papers and speak to other small businesses in the area. Obtain
location demographics from the local library, chamber of commerce or the Census Bureau. Any
of these sources should have information on the area's population, income and age. You know
who your customers are, so make sure you find a location where your customers live, work and
shop.
3. Retail compatibility:
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Make sure that you have thorough knowledge of competitors in a proposed location, good and
bad.
For a small retail store in its first year of operation, with limited funds for advertising and
promoting, retail compatibility can be the most important factor in the survival of the store.
Will you be located next to businesses that will generate traffic for your store? Or will you be
For example, if you offer "shoppers" (items such as men's and women's clothing, major
appliances, or expensive jewelry), the best location is near other stores carrying shoppers goods.
Conversely, locating your shoppers goods store in a "convenience goods" area or centre is not
Take a look at shopping centres in your area. Invariably, you'll find a clothing centre, shoppers
goods and convenience goods outlets may now be found co-existing easily under the same roof.
In this situation, it is still important to be located in a section of the shopping complex that is
conducive to what you're selling. For example, a pet store should not be located immediately
adjacent to a restaurant, dress shop, or salon. You would want to locate a gift shop near places
like department stores, theaters, restaurants -- in short, any place where lines of patrons may
form, giving potential customers several minutes to look in the gift shop's display windows.
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II. Analysis of “key” players in general area
V. Bad competitors are those that will have a negative effect on your business. Some examples
might include retail store that might be selling the exact same product at a discount or stores that
attract the opposite target audience as your retail operation. a high end fashion boutique may not
VI. Good competitors are retail stores that compliment your business by drawing a similar target
It’s also important to know how vehicles and pedestrians patterns might affect business at a
proposed location. Don't confuse a lot of traffic for a lot of customers. Retailers want to be
located where there are many shoppers but only if that shopper meets the definition of their
target market. Small retail stores may benefit from the traffic of nearby larger stores.
V. When considering visibility, look at the location from the customer's view point. Can the
store be seen from the main flow of traffic? Will your sign be easily seen? In many cases, the
better visibility your retail store has, the less advertising needed. A specialty retail store located
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six miles out of town in a free standing building will need more marketing than a shopping store
located in a mall.
5. Merchant association
An often overlooked factor when considering a location is the presence and strength of local
merchant association.
Understanding all the rules and plans your municipality has laid is very important when it comes
to selecting a location- your retail store’s long term success could depend on it. Before signing a
lease, be sure you understand all the rules, policies and procedures related to your retail store
location. Contact the local city hall and zoning commission for information on regulations
regarding signage. Ask about any restrictions that may affect your retail operation and any future
I. By laws- what are some of the laws that might have an effect of your retail operation? For
example, can you use the space in front of your store for promotions?
II. Planning – are there any major development plans that could impact your retail operation?
7. Location costs
Beside the base rent, consider all cost involved when choosing a retail location. For example:
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IV. Local taxes
IX. If the location is remote how much additional marketing will it take for customer to find
you?
8. Special consideration:
II. Is there adequate fire and police protection for the area?
III. Quality of life: recreational opportunities, culture, low crime, and clean environment attract
• Store-Based Retailers operate from a fixed store location that requires customers to travel
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• Non-store-Based Retailers intercept customers at home, at work, or at a place other than a
Shopping center:
Shopping centers are distinctly different from other locations that are downtown, high street and
local business strips. The shopping center business building is preplanned as a merchandising
unit for interplay among tenants. Its site is deliberating selected by the developer for easy access
to pull customer from a trade area. It has onsite parking as a common feature of layout. The
amount of parking space is directly related to the retail area. Customer like the shopping center
convenience, they drive in, park and walk to their destination in relative safety and speed. Some
shopping centers also provide weather protection and most provide an atmosphere created for
shopping comfort. For the customer, the shopping center has great appeal.
For the merchant making a decision whether or not to locate in a shopping center, these “plus”
Characteristics must be related to the limitations placed upon you as tenant. In a shopping center
tenant is a part of merchant team. As, you must pay your prorate share of the budget for the team
effort. You must keep store hours, light your windows, and Place your signs within established
rules.
Whether or not a small retailer can get into a particular shopping center depends on the market
and management. A small shopping center may need only one children shoe store, for example,
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while a regional center may expect enough business for several. The management aspect is
simple to state: developers and owners of shopping centers look for successful retailers.
In finding tenants whose line of goods will meet the needs of the desired market, the developer
owner first sign on a prestige merchant as the lead tenant? Then the developer selects other type
of stores that will complement each other. In this way, a “tenant mix” offers a varied array of
merchandise. Thus, the center’s competitive strength is bolstered against other centers as well as
To finance a center, the developer needs major leases from companies with strong credit ratings.
The developers own lenders favor tenant roster that include the triple – A ratings of national
chains. However, local merchants with good business record and proven/ understanding of the
local markets have a good chance of being considered by shopping centers developers. But even
Suppose that the owner- developer of a shopping center asks you to be a tenant. In considering
the offer, you would need to make sure of what you can do in the center. What rules will there be
on your operation? In exchange for the rules, what will the center do for you? Even more
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• The location of your space in the center
These factors help you to determine how much business you can except to do in the center.
In order to examine the center location look for the answer to questions such as these:
• Would the center offers the best sales volume potential for your kind of
merchandising?
• Can you benefit enough from the center’s access to market? If so, can you
produce the appeal that will make the center’s customer come to your store?
Availability of parking.
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Clean, neat environment.
High rents.
Possibility of too much competition and the fact that much of the traffic is not interested
• Inexpensive parking.
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• Difficulties in attracting customers for the initial visit.
Local factors
We have equipped the local factors that influence the location and expansion of firms into six
categories. In this section, we organize the location factors described in this appendix into the six
local factors.
1. Building space
Land:
Firms need’s land for building and associated uses, and the built space itself.
Location, cost and quality of space matter to all firms, but needs vary widely by industry.
2. Workforce
Labor, for most firms’ labor is the largest operating cost, and the single most important factor to
most firms deciding where to locate is the cost and quality of local labor force.
3. Access to market
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Company accesses their market by moving people and goods via transportation system.
Local infrastructure, cities must have modern and efficient infrastructure, including road,
4. Business environment
Regulation:
Permitting procedure and environmental regulation have an impact on the monetary cost of
doing business and on the amount of time it takes to bring a product to market.
5. Taxes:
Tax rates for business and individual as well as unemployment insurance and worker
6. Industry cluster:
New firms tend to locate in areas where there is already a concentration of firms like their own.
Innovative capacity:
Economic has shown that a business culture promoting innovation, creativity, flexibility and
7. Quality of life
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Analysis
FACTOR ANALYSIS
Factor Analysis is primarily used for data reduction or structure detection.
• The purpose of data reduction is to remove redundant (highly correlated) variables from
the data file, perhaps replacing the entire data file with a smaller number of uncorrelated
variables.
• Factor analysis is used in this project because there are various factors on the basis of that
retailer finalize their retail location. But aim was to find out what are the primary factors
• There are some factors like retail compatibility that creates dilemma for retailers like
whether select the location near to direct competitor or not. So this factor analysis will
help them to figure out that is this right decision for their business or not.
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Scree Plot
2.0
1.5
lu
nE
ig
a
v
e
1.0
0.5
1 2 3 4 5 6 7 8 9 10 11
Component Number
49
The screen plot helps you to determine the optimal number of components. The eigenvalue of each
Demographic(.717)
Situational factor:
Demographic (.717)
Site factors:
Parking (.868)
50
Other factors:
Brand (.845)
Hypothesis:
disagreeing.
Hypothesis:
51
• Malls and hypermarkets are more potential site compare to high street market for retail
shop.
Malls and hyper market is better site for retail location as 35%
Hypothesis:
52
Size and rental are th e first consideration
feedback
50%
40%
30%
20%
10% feedback
0%
stronglydisagree feedback
disagree neutral agree
strongly
agree
Hypothesis:
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D em ograph ic factors for retail location
feedback
60%
50%
40%
30%
feedback
20%
10%
0%
strongly disagree neutral agree strongly
disagree agree
Hypothesis:
54
• Accessibility, Visibility and Traffic are the factor should be taken into
consideration
Series 1
40%
30%
20%
10%
Series 1
0%
stronglydisagree Series 1
disagree neutral agree
strongly
agree
Hypothesis:
55
• Retail space you are planning to take should have enough Parking
place
Hypothesis:
56
feedback
50%
40%
30%
20%
10% feedback
0%
stronglydisagree feedback
disagree neutral agree
strongly
agree
57
There are various situational and site factors that should be taken into consideration before
• Retail compatibility
• Before buying a retail property, it is important to meet previous tenants of that particular
property
58
From all these factors there are some prime factor which are the most
considered by retailers:
• The research study shows that while selecting retail location retailers gives
segment in location.
ii. City plan analysis: These include analysis of traffic flow, presence of
• The research suggest that most of the retailer preferred the business location
where their similar category business retail outlet are present because
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• Availability of parking place is the important factor, so before finalizing the
location so site analysis and look for enough parking place that is required
• In malls and hyper market different type of shop are available under one
roof which is more convenient for customer for shopping as it’s save time
and energy. Malls and hyper markets are always full of customers. This is
the reason most of the retailers believe that malls and hyper markets are the
better location than high street market. So for new store opening retailers
give preference to mall and hyper market over high street and other market.
• Survey suggested that though location is first priority for success of retail
outlet but brand also play significant role in success of retail store. Because
sometimes its happens retailer is not able to get desired location but brand
The challenges:
• Opening a new retail location is not easy. Whether its your 1st, 5th, or 50th retail outlet.
Independent retailers often do not have to consider the very basic needs of an outlet, such
as;
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• The sore must be situated at a location which optimizes exposure to target consumer and
• The sore must generate enough revenue per square feet to cover the cost of rent,
insurance, any applicable parking fees any applicable sprinkler, any applicable taxes any
heating, ventilating and air conditioning (HVAC) cost, any common area maintenance
• In addition to cover cost, it is necessary for the store to turn a profit within a reasonable
amount of time in order to make the venture worthwhile and to justify the tremendous
investment made by the owner and business partners. A thorough marketing analysis and
solid location strategy will position your new outlet for success, financially/ logically as
Appendix
FACTOR ANALYSIS
Factor Analysis is primarily used for data reduction or structure detection.
• The purpose of data reduction is to remove redundant (highly correlated) variables from
the data file, perhaps replacing the entire data file with a smaller number of uncorrelated
variables.
• The purpose of structure detection is to examine the underlying (or latent) relationships
61
• The Factor Analysis procedure has several extraction methods for constructing a solution.
For Data Reduction. The principal components method of extraction begins by finding a
linear combination of variables (a component) that accounts for as much variation in the
original variables as possible. It then finds another component that accounts for as much
of the remaining variation as possible and is uncorrelated with the previous component,
continuing in this way until there are as many components as original variables. Usually,
a few components will account for most of the variation, and these components can be
used to replace the original variables. This method is most often used to reduce the
62
NAME: AGE Stron Disagr Neutr Agre Stron
gly ee al e gly
STORE LOCATION
Disag Agree
Hypothesis ree
2. ^ Adidas told its three stripes don't constitute a trademark at The Guardian
3. ^ http://www.adidas.com/campaigns/women/content/stella/stella.asp?
strCountry_Adidascom=com
5. ^ http://aolsvc.news.aol.com/business/article.adp?id=20050803092509990002
6. ^ http://www.savethekangaroo.com/international/australia/adidasflyer.pdf
7. ^ tennis-warehouse.com/
8. ^ adidas.com/us/tennis/
9. ^ http://www.tradingmarkets.com/.site/news/Stock%20News/1942911/
10. ^ http://www.adidasnationallacrosseclassic.com
11.www.barista.co.in
12.www.rbk.com
13.www.fernspetals.com
14.http://www.mumbaipropertyexcahnge.com
15.www.retailindustry.about.com
64
16.www.dmsretail.com
Journals:
• Internal references from M/s adidas India Pvt. Ltd
Books:
Websites:
1. Google.com
2. Prowess database (CMIE)
65