ROYAL AGENCIES RETAIL MGMT SLIDES

1. Royal Agencies
Prepared by
M.Karthik chinnaraja
M.Sabarish kumar
Gowtham
Athithan
Manoj kumar

2. HISTORY
 The proprietor is K.Subramanium.
 One of the un organized players in the market.
 Perceived as South India’s largest retailer at the time of starting.
 Started in 1965 in Nanjappa road
 Started as multi storey building at that time
 House and office needs, furniture items covering all the segments
in the market.

3. LOCATION
 Having two shops in Coimbatore ( one in Avinashi road and
Nanjappa road).
 Head Office is at Nanjappa road with 3 floors.
 Branch office started in 1999 at Avinashi road
 No of employees are 12 in both units in showroom

4. Location
 Head office located in the mid of the city where the traffic of
the customers is very high
 Many Steel furniture Whole sale shops are located near by so
that customers who are owning small shops looking for
suppliers will prefer royal, which has more variety than other
dealers
 The branch office is located in Avinashi road covering the
resident areas

5. Manufacturing facilities
 There are three units for manufacturing
 Each unit manufactures particular product category
 Head office is owned building
 Branch office is rental building

6. CUSTOMERS
 Target all segments from below to above of the poverty line.
 Targets both home, institutions and industrial users
 Since the product range starts from Rs 500 and above
It focus on all segments
 Average daily footfall is 15 customers per day
 Average buyers varies from 3-4. per day

7. Products
 20 % items are from Nilkamal and supreme furniture in
plastic items
 70% items are private label manufactured by Royal agencies
 10 % items are imported from china and Malaysia(wooden
and luxury items)
 Strictly followed policies includes no replacement and no
exchange

8. Pricing
 Follows multiple pricing strategy
 Price vary for well known customers
 Increase in government taxes are charged from customers
along with the bill
 Mark up’s vary from 10-15%(apart from discounts)

9. PRODUCT PROMOTIONS
 Promotional activities are done in local exhibitions.
 No other forms of advertisement are done
 Standard price with nominal discounts throughout the year is their
strategy

10. Store design and layout

11. Elements of store design
parking
location
Royal
agencies

12. Exterior design-products showing
entrance.
Straight front
Larger Parking Area
Entrance showing Products
Window display. Where you
can see the products from
outside.
Gardens which gives
attractiveness

13. Exterior design
Name boards for royal is
provided by branded goods
like Godrej and Supreme
furniture

14. Safety measures
Sand and water buckets
present outside showroom
Inside the shop water line
with compressor is present
near godown

15. Layout - free form layout

16. Space Planning
In this store large number of space is
allocated to wooden cots and beds
40% allocated to cots
25% allocated to sofas
5% for plastic furniture
5% for admin purpose
15% for dressing tables office tables
5% for bureau cupboards
5% for store room and other purpose

17. Interior design
 Lighting is much important in furniture store.
 White color light is used for display in order to provide
accurate color of the goods
 Floors are tiles. I.e. in light color. Which suits to the roof of the
store.
 Yellow color is painted in walls which is attractive
 Large Mirrors are attached to the walls in the end of
showroom in order to project there are more products in the
showroom

18. Visual Merchandising
FIXTURES
Steel racks are provided by branded
company Godrej for displaying their
lockers.
Only their branded items are allowed
to display in that shelfs

19. Visual merchandising
Products are arranged in a coordinated way
Plano gram depends on the managing director and store manager
Customers may see all the products irrespective of price

20. Problems
Since all product categories are closely
arranged the customer feels distracted
Sometimes cluster of products becomes less
attractive

21. Logistics and Supply chain

22. Supply Chain Flow
Distributors
Godown
Displays
Customer

23. Distributors
 Distributors are located in Chennai who imports goods and
distribute to various outlets
 Each product category has different distributors
 Nilkamal and supreme furniture agent comes to showroom
and check for stock, based on store manager decision
number of units are decided
 Private label products are ordered immediately after each
unit sale and sent for display

24. Stock keeping & Display
 Each manufacturing units have plenty of place to stock goods




that are manufactured
Based on availability of place stocks from other units are also
stored
Showroom in Avinashi road also have space for stocking
goods
All new models manufactured are immediately displayed
Three manufacturing units goods are displayed in two
showrooms only no catalogue provided

25. Delivery to Customers
 Ordered goods are delivered to customers from godown
stocks to avoid transportation costs
 Plastic items and small items involving low cost are
transported from showroom itself
 If the product is not available
Lead time depends on 15- 20 days for imported goods
Lead time for private labels will be 1-10 days.

26. Logistics
 Goods are transported through trucks . It is the responsibility
of supplier in Chennai to bear the cost
 Goods are delivered from showroom to customers through
hired vehicles and the charge is collected from customers
 Hired vehicles are booked on situational and on day basis
 The company has three owned vehicle

27. Logistics contd..
 No returns are accepted by dealers in Chennai
 Damaged items are re worked and sold by royal itself
 Damaged items from nilkamal and branded items ate taken
by agents of the company itself during his next visit

28. Merchandising

29. Merchandise planning
Demand analysis
 Sales forecast- past year sales units + 10% -15% stock
 Seasonal consideration- increase the stock during festivals
 For office segment and commercial institutions mainly they
increase the production volume units by the month of April,
May and June.
 Customers feedback and opinion
 Competitors models

30. Budget consideration
 They invest 15% extra amount in buying new models and
design(imported and branded goods)
 For Private labels budget is allocated during each month end
thereby avoiding less stock
 In private labels they invest much less in new models

31. Types of Merchandise
Products
Type of Merchandise
Plastic Chairs , Steel tables office tables
Steady demand
Wooden sofas ,cots , cupboards lockers
Seasonal -festivals

32. Merchandise hierarchy
Royal
agencies
Office
furnitures
Cupboards
Chairs
Tables
Home
furnitures
Lockers
Sofas
Tables
Sofas
Chairs
Cots
Wardrobe

33. Merchandise hierarchy contd…
Royal
wooden
Imported
Office
chairs
Royal
plastics
Supreme
nilkamal

34. Key components of merchandise plan
 Planned markdowns are not done in Royal
 If the product quality is bad in imported goods they are not
returned back
 The defect goods are sent to manufacturing unit and it is
corrected and sold
 Employee discounts are given in Royal. The margin is very
low for employees, some case they don’t collect margins
from employees

35. Contd..
 Imported goods are ordered once in 3 months mostly
 Some times distributor calls Royal when the stock has arrived




from China and Malaysia
The models are selected by Managing director and the quantity of
the product is decided by him
Regarding private labels inventories are checked at the end of the
month
During festival season inventory is checked weekly
For branded items at end of every months company agents come
and take order

36. Assortment planning
 This is done by the store manager of two branches
 Model stock plan is prepared and shown to managing
director and shown for approval
 Number of units to be purchased are decided by managing
director

37. Merchandise procurement
 Royal has a list of standard dealers and distributors in
Chennai
 They evaluate the suppliers by the years of experience in
business
 They avoid new suppliers who are unknown
 Raw materials for private labels are procured as whole sale in
various parts of Chennai, Coimbatore

38. Negotiations
 Payment terms are negotiated during managing director visit
 Advance is given initially
 Remaining amount is paid within 15- 20 days after the
delivery of goods
 Amount is paid in two or three installments sometimes

39. Private label
 Royal agencies has 70% of its product as private label
 It sells its product in many outlets across Tamil nadu
 The difference between price of branded and Royal product
is 25%
 They make their own product through their own units