Study Vishal Mega Mart Marketing Essay

Diwali is a Hindu festival of lights that is celebrated all over India. Families and friends exchange gifts and wish each other good luck for the next year. Many Indian families wait until Diwali to make major purchases. This means that Diwali is the busiest time of the year for retailers and will bring in strong revenues, as well as the opportunity to expand their customer base. Vishal Mega Mart was India’s largest fashion-led supermarket and faced exactly this combination of challenge and opportunity.

Gagan Sharma

The Senior Manager at Vishal mega Mart. He says: “We have a rapidly growing business. We not only run a fashion website that features a range of brands but also have over 190 brick-and mortar stores throughout India. Each year, we open 25 new stores. We have been able expand our customer base in this climate of increasing prosperity. We have had to meet increased demand during Diwali, however.

“Retail, online and in-store generates a lot of data. Sales reports, supply chain inventories and financial information are just some of the many data sources. Over a period of four years, our data grew from 3.3TB up to 9.5TB. Our IT systems weren’t performing at their best as we increased our operations. Particularly, our supply chain data took a long time to process, which resulted in delayed deliveries during the festival season. Our stores ran out of stock sooner than we expected. This reduced our sales potential, and was likely to adversely impact customer experience.

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Transformation story

Supply chain management: Supercharging

Gagan Sharma adds: “Our old systems couldn’t handle all the data we were creating as our business grew.” We looked at more reliable and efficient hardware options. We compared a lot of hardware options before settling on IBM Power Systems.

Vishal Mega Mart’s IT team worked with IBM(r), Systems Lab Services in migrating the company’s SAP(r), ERP solution, to the IBM Power Systems ™ server and IBM Storwize (r) V7000 storage. To support SAP HANA, the company installed three IBM Power(r), System E870 servers. It also deployed three IBM Power System S822 server and three IBM Power System S822 server. One IBM Power System S822L was used to support other databases as well as the application layer. Vishal Mega Mart created a dedicated logical part (LPAR), and shared resources with other databases and applications using IBM PowerVM[r] virtualization technology.

IBM Power Systems

Vishal Mega Mart relies on IBM Power Systems servers to provide the flexibility, reliability, and ease of administration that it needs to run its core ERP system. Even during peak customer demand, the IBM Power Systems servers are able to handle high volumes of customers. Vishal Mega Mart uses IBM Power Systems servers now to support its core SAP Business Suite powered with SAP HANA and SAP Business Warehouse powered SAP HANA.

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We chose to work with IBM because of two reasons. Gagan Sharma says that IBM is a well-respected global company and that they can rely on them to complete the implementation. Second, a system that integrates with SAP ERP applications was essential. “Additionally, Storwize V7000 provides fast, near-real-time data compression which allows us to manage our large, growing data store with ease. After the IBM hardware was installed, the team decided to migrate to SAP ERP powered with SAP HANA(r). The new application runs on SAP HANA architecture and SUSE Linux Enterprise Server to SAP Applications.

SAP HANA

Selecting SAP HANA for Vishal MegaMar was an easy decision,” says Manuhaar, who was the General Manager of IT at Vishal Mega Mar and also the project leader. We have used SAP ERP for our financial reporting and supply chain management for many years. To speed up our reporting, supply chain management and billing, we wanted SAP HANA’s columnar, in-memory data to be used.

“We knew that we could transform our business quickly and be more future-ready if our technical capabilities improved. We knew that SAP ERP powered SAP HANA on IBM Power Systems would accelerate our performance. This would allow us to spend more time attracting new customers and directing more energy towards developing a mobile-e-commerce app, which is our next step towards a truly global digital revolution.

“The implementation process was a success and it became evident that the IBM Systems Lab Services representatives were unmatched. We were surprised at their level of professionalism and diligence. The migration went smoothly due to IBM’s extensive knowledge of interconnecting its systems with SAP software. We were able to move most of our SAP ERP modules from the previous database to this SAP HANA version in less than 48 hours.

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Story about the results

The path to digital transformation: Illuminating the way. Vishal Mega Mart now has the ability to respond to spikes in demand by using the SAP HANA version of IBM Power Systems. By ensuring that the stores are always stocked, the company is ready for Diwali. Gagan Sharma comments: “The best immediate improvement is a significant rise in processing power. We saw a 50% increase in performance after migrating to IBM Power Systems. Then, there was a 60 percent increase when we implemented SAP HANA.

Transactions and batch processes now run much faster than ever, which allows us to handle higher standard and peak volumes. In business terms, when we do a sales analysis to determine what stock replenishment we require from suppliers, we can place orders sooner, which helps us stock our shelves well. Customers are more likely to shop at our stores during busy times, as they know that they can always find a great Diwali deal, even in peak festival season.

Our financial reporting is also much more efficient, which increases our agility and gives us the information we need faster to make important purchasing decisions. This version of SAP HANA allows us to turn transactional data into actionable insight: We can see when we should purchase the right amount of clothes, cookware, and groceries during Diwali.

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Reduced the size

Moreover, we were able to save a lot of energy. We have, for example, significantly reduced the size and power consumption of our data center. We have made significant energy savings and also reduced our OPEX. Additionally, we were able to cut the cost of hiring additional staff during festivals by eliminating the need to hire one seasonal team. These operational savings are re-invested into improving the quality of our products as well as expanding our online presence.

Gagan Sharma concludes, “Working with IBM on SAP HANA implementation on IBM Power Systems has allowed us to focus more time and resources on increasing our presence in India and achieving our core goal of creating high quality products at affordable prices. Implementing SAP HANA on IBM Power Systems has opened the door to future growth for Vishal Mega Mart.

Fashion Led Hypermarket

“We are looking ahead and plan to open brick-and-mortar shops as well as develop a mobile app for customers to increase online trading. Although our current focus is on improving the appearance and feel of our physical stores’, we plan to enhance our customers’ experiences by fully embracing mobile commerce technology in the near future. It’s easy to transition into the future retail with SAP HANA’s dynamic functionality and IBM hardware.

Vishal Mega Mart India’s largest fashion-led hypermarket chain has more than 192 stores. It also boasts a combined trading area of over 3 million square feet in 110 Indian cities. The company offers fashion, general merchandise, groceries, and personal care products that are destined to millions of Indian homes.

 

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