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DECLARATION

We hereby declare that this project titled STUDY ON

MICRO ECONOMICS ON RIVERDALE, MANIPAL

is original work done by us under the guidance of Dr. T.

N. RAMAKRISHNA.

The report has been submitted to Manipal Institute

of Management in partial fulfilment of academic

requirement for the award of the Degree of master of

Business Administration.

We also declare that this project has neither been

submitted to any other university for the award of the

degree/ diploma or any other similar title nor done by

any other student earlier.

Date: March 16, 2010

PLACE: MANIPAL

Kamal 091203003

Jagannath 091203004

Shreekanth 091203002


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INTRODUCTION

-RIVERDALE Started its operation in 2001 with 500 sq

meter area space behind Chandrasekhar hostel, end pointroad in Manipal.

-It was the first branded outlet in manipal whose first

collection was mainly focused on brand like LEVIS and

SPYKER.

-Within 6-7 years they expanded their space to 5000 sq

m and raised their total inventory cost from 6 lacs to 64lacs.

-Their main customers are students so they mainly focus

on products that cater the need of young generation.

-Customers are retained through better services. For this

purpose they give special training to their employees.

-Employees are recruited on the basis of their

communication skill and attitude.

-The employees are not given any favors such as

Employees Insurance etc.


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LOCATION:

Riverdale is located at 19 B krishnapura colony, end

point road, Manipal.

It is near to tiger circle of manipal which is hub of

commercial activities.Location was decided keeping in view the easy

assessment of the showroom to the students of Manipal

University.

PRODUCT:

They opened their showroom by keeping in mind the

increasing demand of branded items especially in

manipal. So they focused their inventory management

mainly on branded items that broadly includes apparels

and foot wares. The major brands are:

APPARELS: LEVIS, PEPE JEANS, SPYKER,

TANTRA, NEWPORT, MTV,

OXEMBERG, EXCALIBUR.

FOOTWARES: LOTTO, NIKE, ADIDDAS, REEBOK,

FLOTTERS.

Apart from these products they also have a wide

collection of undergarments, caps, belts, bags, wallets,

fancy beads and others accessories.


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OORRGG OONNAALLHHIIEERRAARRCCHHYY

Store Assistant

Store Executive

Operations Manager

Store Manager

Sales Person

ManagingDirector


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INTRODUCTION OF RETAIL CHAIN

Typical common features of different retail chains are joined

ownership, centralised management, similar outline of individual

stores, and ownership of at least two stores

Gist defines a retail chain as consisting of at least two storeswith

joined ownership and management, centralised purchasing aswell

as a similar range ofproducts The different stores also often

resemble each other in design.

A retailers chaining activity is based on its business idea.The

concept of business idea is summarised in the following

questions:what is being sold, towhom and howit is sold.

Another central question of business idea is alsowhere it is sold

since the stores location is still one of the most important issuesinfluencing the consumers choice of aparticular store.The

location is in fact one of the most important aspects offering a

competitive edge to a store regardless of the store type.

Market segmentation can be considered as the startingpoint for

developing a business idea.The primarygoal is to find outwhom

the business is supposed to serve (TO WHOM).It is also

essential to clarify the needs that the companyattempts to satisfy

with its productportfolio and services (WHAT and HOW).

Thus the future productportfolio is planned at the same timewith the customer segmentation.

The location of the stores is naturallyalso ofvital importance

(WHERE). When deciding on the location of its different stores,

a retail chain has to consider the number of the potential target

customers in the area


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Competition Model

Supplier

Branded items from authorized distributors

Avg.profit margin 26%, on cash payment 28%. Some branded items directly from company for e.g. arvind

mills products purchased from its mfg. unit inBangalore.

Local made goods procured directlyfrom company. Profitmargin goes up to 40%.

Buyers Caters the needs ofyoung and dynamic student generation. Main buyers are NRIS and north Indian students.

Fast moving brands: apparel LEVIS, EXCALIBER,OXYMBERG,FIBRE, MTV,TANTRA, PEPE JEANS

etc.

Footwear's: NIKE, ADIDAS,FLOTTERS,CROX,REEBOK etc.

Levis is most sought after brand.

RIVALS

PRIMUS

BIG BAZZAR

REEBOK SHOWROOM

NewEntrants

Shopping mall.

LEVIS exclusive showroom


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Apparel Market

The competition has been increasing in thissegment due to the

internationalisation of trade.

The growth of trade hasstabilised and consumers elasticity toprices has increased.

At the same time, there is a demand for better quality and service

and increased scepticism towards branded product and services.


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Business Policy

Keep trackof customers.

Old stockclearance bydiscount sales. Publicitybysponsorship of events.

Regular advertisement inprint and electronic media.

Separate ladies section. Planning for e marketing.

Theyhave the facilityof log bookinwhich customers areencouraged to enter their recommendation and address

details on the basis ofwhich theyare kept in touchwith the

store and latest arrivals.

Recently theyhave engaged themselves in student relatedactivities in order towoo this segment.

Theyare constantlyunder the renovations keeping in touchwith the aesthetical aspect of the store.


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PROSPECTS OF THE INDUSTRY:Because of expansion of the university campus and

no. of courses wide varieties of the students populations

including north Indians and NRIS students who arebrand buff are coming to Manipal. So very bright future

for the industry.

RECOMMENDATIONS AND SUGGESTIONS:

- Efforts must be made by the govt. and university toincrease the road and other infrastructure facilities so

that they can improve the campus environment and

market places.

- University should provide some more outlets of theirown for growth of business.


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Nature of competition:Na r f c mp i i n is p rf c . Th r is n c hr a

c mp i i n ins ad a h al hy c mp i i n is pr vailing

in h mark nvir nm n .

Number of competitors:Numbers of competitors are not so many in Manipal

but those who are existing in market are heavily

affecting its business. The significant competitors

are PRIMUS FACTORY OUTLET, REEBOK

SHOWROOM, and COTTON WORLD etc.

Types of competition:As m

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Market share of riverdaleAs per the sources their market share varies from 30-35%.But they are not satisfied with this market share so they

have opened one more showroom of their own in manipal,and they have named it PAISA VASSOL and they have

promised to emerge a major brand player in this region


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SWOANALY

SIS

S RENGTH

y Established brand image over the years.

y Well known forwide range collection of modern andethnic designs.

y Better customer service

y Special schemes on significant and festive occasions

y Good infrastructural facilities

WEAKNESS

y Price range is often beyond the reach of middle class

y Lackof market research

y Limited number of showrooms

y Not able to capturewhole manipal market

OPPORTUNITIES:

yBooming apparel market in manipal.yMore outlets to be opened in suburban areas.

yTo explore the needs of middle income groups and cateraccordingly.

THREATS:

yEmerging competitors

yAlreadyestablished market competitors

yThe present continuous price rise mayaffect the industry


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BIBILIOGRAPHYECONOMICENVIRONMENTANDPOLICY-MISHRA

ANDPURI. 6THEDITION. HIMALAYAPUBLICATIONS

www.Riverdale.org

www.encyclopedia.com

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