15971678 PROJECT REPORT on Retail Sector in India by Satishpgoyal

7/31/2019 15971678 PROJECT REPORT on Retail Sector in India by Satishpgoyal

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Retailing consists of the business activities involved in selling goods and services to

consumers for their personal, family, or household use. It includes every sales of goods and

services to the final consumer.

Retailing is world's largest private industry with annual sales over $ 6600 billion. Wal-Mart

annual sales over $ 250 billion. It has share of 2.3% of U.S. G.D.P. There are nine retailers in

Fortune 100, which highlights the importance of retailing as category.

According to a market estimate after agriculture, retail is the largest single sector, both in term

of turnover or will as employment in India. With market size of $200 billion. The report said

the Indian retail industry is in revolution phase.

Organized retailing in India, which account for less than 4%, is likely to grow four fold in the

next five years. That means it will grow from current size of around $4 billion (Rs. 17,000

Crore) to around $15 billion (Rs. 66000 Crore) the neighborhoods corner shops estimated at

70 million across the country, and village Melas characterize the unorganized and

fragmented nature of retailing in India.


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1)

Shoppers stop

Home Stop

Mother care

Hyper city

CrosswordPlanet M

2)

Westside

Star India Bazaar

Landmark

3)

Spencers supermarket

Spencers daily

Spencers hypermarket

Music world

4)

Reliance freshSubhiksha

5)

6)

7)

8)

Pantaloons

Big bazaar

Food bazaar

Fashion stationAll

Blue sky

E Zone

Collection IHome Town

Central Mall

9)

Godrej AadharNatures Basket


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TABLE 1.1 : TOP 20 RETAILERS WORLD WIDE

Retailers Sales (US$)

1 Wal-mart Stores, Inc 163,532

2 Carrefour group 52,196.10

3 The Kroger Co 45,352

4 Metro A G 44,163

5 The Home depot INC 38,434

6 Albertsons inc 37,478

7 ITM Enterprise SA 36,762

8 sears, Roebuck and co. 36,728

9 Kmart Corporation 35,925

10 Target Corporation 33,702

11 J.C. penny Company, Inc. 31,503

12 Royal A hold 31,222

13 Safeway Inc 30,801

14 Rewe-Gruppe 30,578

15 Tesco PLC 30,404

16 Ito-Yokado Co., Ltd. 30,237

17 Edeka-Gruppe 30,002

18 Costco Companies, Inc 26,976

19 Tengelmann 26,509warenhandelsgesellschaft

20 The daiei, Inc 26,486


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The retail industry in India is largely unorganized & predominantly consists of small , independent,

owner-managed shops. Retailing is INDIAs largest industry in terms of contribution to GDP

& constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also

an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobile

vendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an

average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2

sq. ft, which is quite low compared to that of developed economies.

In 2000, the global management consultancy AT Kearney put retail trade at 400,000 crore , which is

expected to increase to Rs.800,000 crore by year 2005 an annual increase of 20%.

According to the survey, an overwhelming proportion of the Rs.400,000 crore retail market is

unorganized. In fact only a Rs20,000 crore segment of market is organized. There is no

integrated supply chain management outlook in Indian traditional retail industry.

Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001,worth

apprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the

non-food retailing sector registered faster year-on-year growth than the food sales sector. The

trend to market private labels by specific retail store is catching on in India as it helps to

improve margins. The turnover from private labels by major retail chains was estimated at

around Rs 1200 million in 2001.

Unorganized market; Rs. 583,000 crores.

Organized market; Rs. 5,000 crores.

5 x growths in organized retailing between 2000-2005.

Over 4000 new modern outlets in last 3 years.

Over 5,000,000 sq. ft. of mall space under development.


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Diversities differentiates itself from the standard development of modern retail anywhere in

the world.

Conventionally, retailers focus on homogeneity and continuity in order to derive benefits of

scale and efficiency in their system.

Globally, retailers develop two or three major formats which are largely standardized, may

not work in India.

Significantly large, truly pan-Indian, multi-format modern retailing model needs to be

developed in India.

The Indian market will provide the footsteps to develop a model for globalizing retailing.

This will be the biggest contribution of Indian retailers to the world.

Indian retailers can establish thought leadership is in the field of technology.

Unlike in developed countries, Indian retailers do not have legacy systems on which they

have to build their technology platform.

As retail grows and develops fresh technology-led solutions, India will take a leap and the

next generation retail technology solutions may well come out of India.

Usage of RFID and the next practices in technology-based retail solutions may well emerge

from Indian retailing.

Indian retailers would do well to develop their own systems and benchmarks that are admired

and followed the world over.

The retail sector is expected to grow 40% to $427 billion by 2011.

By 2017, organized retail will be 15-20% of the total retail market.

Total retail market $ 800-billion by 2017.

Impact on rural incomes and urban prices will be real and positive.


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Organized retailing in India will need painstaking, often frustrating, effort to chisel out India-

ready business models, retail formats and delivery models.

roducts, roperties, eople and rofitability are going to be huge challenges.

The real estate prices and shortage of talented staff, the run-up expenses for growth are going

to shoot up sharply.

Significant delay in completion of shopping malls by developers and unreasonably high

property prices is adversely affecting the growth of the sector.

The situation is expected to improve in 2009, when a large, and probably an oversupply of

retail space is expected to come on-stream.

By the year 2010, it is expected that there will be around 500 shopping malls, adding over 250

million square feet of retail space.

Its' just the first phase of retail playing out in India currently, where lot of players are merely

'land-grabbing'.

In second phase the focus will be on creating differentiation. And in a couple of years, half of

the new entrants of today will simply die.

In 2008, the competitive landscape is also expected to unfold with many large entrants finally

launching their operations.

Understanding, interpreting and catering to Indian consumer behavior, taking into account thesocial diversity in the country will be crucial to the success of new players.

New formats in specialty retail, wholesale retail and luxury retail are expected to emerge.

The next few years will provide the answers to the most crucial questions on the sustainability

of modern retailing in India.

Whether the Indian consumer market can sustain such large growth in modern retail, whether

more and more people will join the consuming class and what the real market size in small

cities will be, become clearer.

By 2010 a conclusion on the consumption potential in India can be reached.

No one can stop the growth of modern retail and the consequent impetus to consumption and

development in India.

- Victor Hugo.


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Organised retail market in India (Rs crore)

Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on

smaller towns and villages in India. However, a careful analysis of the town strata-wise population,

population growth, migration trends and consumer spend analysis reveals a very different picture for

India.

As per our estimates, the share of the 35 towns with a present population of greater than 1 million in

India's total population would grow much faster than their smaller counterparts, from 10.2 per cent

today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail

market would grow from 21 per cent today to 40 per cent by 2025.

Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organised

sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the

organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers

should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and


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1. Study about the LOYALTY schemes run by the mall.

2. Study the customer approach towards the mall.

3. Study about the floor operations in a shopping mall.

4. Comparative analysis of all retailers in this section to differentiate with other competitors.

1. Understand the customer behavior inside the mall.

2. Customers expectation from the mall.

3. Gather all the information about all the competitors.

4. All details about the loyalty scheme in retail sector.

5. To make suggestion towards the improvement in loyalty schemes.

6. To make suggestion towards STORE PATRONAGE.


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:

Research methodology is a way to systematically solve research problem. In it we study the

various steps that are generally adopted by researcher in studying his research problem along with the

logic behind them. It is necessary for a researcher to know not only the research methods/techniques

but also the methodology. It may be noted, in the context of planning & development, that the

significance of research lies in its quality and not in quantity. Researchers should know how to apply

particular research techniques, but they also need to know which of these methods or techniques, are

.relevant and which are not, and what would they mean and indicate and why


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There are various sta ges to solve the research problem as shown in following

diagram:

Research Problem

Rational/ Scope of

Study

Research Design

Research

Methodology

Type of research

Sampling Design

Technique of

sampling

Sample Population

Sample Frame

Sample unit

Sample Size

Data Collection

Primary Data

Secondary Data

:The method of data collection is done by the way of survey; this is

a process where by first hand information is collected. This method is needed for meeting the specific

objective of research study. I have collected primary data in the form of filled structured

questionnaire by customers. In first questionnaire I collect whole data about customers feedback

about LOYALTY CARD. In second I collect all the data regarding to comparative analysis.


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SECONDARY SOURCE: The secondary data was collected in the form of company

profile and product profile from the Web Site of PANTALOONS. Some other Web Sites were also

referred. For collecting the required data the CSAS of the mall were also consulted. The data has

helped in ascertaining the strategies and approaches of major players in market. Thus the study

involved collection, analysis and interpretation of a lot of data relating to this sector. The data is

collected from various sites, books, journals, etc.

SAMPLE DESCRIPTION:

After deciding on the research approach and instruments, the marketing research must design the

sampling plan:

1. : The target for this the customers who come for shopping inside the

mall. Sample size of the study is 200 customers who come for shopping inside the mall.

Since it is the survey of customer, to obtain an

unbiased result the customers sample from the population were interviewed randomly. So the

sampling technique chosen for the research is Random sample technique. Every customer

inside the mall had an equal chance of being interviewed.

. : The customer who come for shopping inside the mall is the sample unit.

Personal approach to each and every customer for all surveys and

interviews were the Contact method used for obtaining a proper and detailed feedback. A face-to-

face Interaction took place with each sample representative.

The data collected through questionnaire was properly classified and

tabulated in the form of a report. These reports formed the basis for the comparative analysis and

drawing inferences there from. From the inferences drawn certain conclusions and recommendations

were made.

The fieldwork was conducted for a period of 15 days for both the research. Interviews were

conducted inside the mall by faceface interviewing.


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others to use that company's products or services. This equates to profitability, as well as happy

stakeholders.

Customer loyalty may be a one-time program or incentive, or an ongoing group of programs to

entice consumers. Buy-one-get-one-free programs are very popular, as are purchases that come with

rebates or free gifts. Another good incentive for achieving customer loyalty is offering a risk free trial

period for a product or service. Also known as , these types of incentives are

meant to ensure that customers will return, not only to buy the same product again and again, but also

to try other products or services offered by the company.

Excellent customer service is another key element in gaining customer loyalty. If a client has a

problem, the company should do whatever it takes to make things right. If a product is faulty, it

should be replaced or the customer's money should be refunded. This should be standard procedure

for any reputable business, but those who wish to develop customer loyalty on a large-scale basis may

also go above and beyond the standard. They may offer even more by way of free gifts or discounts to

appease the customer.

Some of the common bases for attracting customers are having dedicated employees, variety,

unique merchandise & superior customer service. But the challenge for the retailer is to have a loyal

database of customer, who will be unwilling to switch their loyalty. The strategies are built after:

1. Developing a clear & specific positioning strategies.

2. Making customer develop an emotional attachment with the retailers product offerings.


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7. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be

reliable. If something goes wrong, let customers kno w immediately and compensate them for their

inconvenience.

8. Try to solve customer problems or co mplaints to the best of your ability. Excuses ?

such as "That's our policy" ? will lose more customers then setting the store on fire. Read o ur 60-

Second Guide to Managing Upset Customers for mo re information.

9. The harder it is for a customer to speak to a human being when he or

she has a problem, the less likely it is that you will see that customer again .

10. Remember the theme song to the television show ? Get to know the

names of regular customers or at least recognize their faces.

Building loyalty through advocating certain essential factors:

Customers are constantly changing & their expectations also rising. Consumer behavior in the

organised retail industry has altered drastically in the last few years. The retail market is growing not

only in terms of nos. but also in terms of stature, image & class. Alongside with Indians becoming

world class service. So it becomes vital for retailers to pay attention to every little detail in order to be

successful. This can be done by providing a good brand & store experience. For this in general the

retailer will have to look into various aspects such as:

Timing of the store

In store design & layout

Welcome the customer receives

The ability to browse easily

The behavior & product knowledge possessed by sales persons

The facility for making paymentsThe attractiveness of the loyalty programs

The packaging & The exit.

All these above aspects are really very important for the customer to experience delightful

shopping experience in the mall. If not handled well, it could result in a disgruntled consumer ,

who will spread a bad word-of-mouth. On the contrary, if the overall brand & store experience is


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positive & pleasant , the retailer may gain a flow of customer who would likely to patronize the

outlet again & again. Further it is also likely that the popularity of the store increases through

word of mouth.

How to improve CUSTOMER LOYALTY in organization?

Strong customer service is the bedrock for creating loyal customers. Make it a priority by properly

training your staff and continually reinforcing the message that the customer comes first. You can also

let your customers know that you value their business by reaching out to them through newsletters,

postcards, and e-mail, so they're aware of seasonal sales and special products. Install a strategy for

responding to customer inquiries and complaints and create a fair, flexible return policy. Finally, once

you've developed a rapport with loyal customers, you can reward them with special discounts on

products or services.

Loyalties schemes are different for different organizations. Basically loyalty schemes are there

for the existing customers or for coming customers for their benefits.

In the study carried out by company of BRITISH super market shoppers on the

basis of their attitude towards price & promotions, five groups of customers were identified:

: These customers

were strapped for cash due to limited income, so they shop around to get the best price on

their favorite brands, generally seeking ELDP instead of promotions which may require them

to alter their buying patterns i.e. they go for bulk purchases. Such customers are low on store

loyalty but high on brand loyalty.

These customers are young families with

strained financial expenses due to growing expenses due to growing expenses like mortgage


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Fig 2.2 FACTOR FOR BUILDING LOYALTY


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THIS IS ALL ABOUT THE CUSTOMER LOYALTY IN RETAIL SECTOR.

In for loyalty scheme there is a card named

The customer can collect

it from any ICICI bank branch or from any PANTALOONS outlets. Its available all over.

This future card can be applicable in any store or mall comes under FUTURE GROUP.

Anyone whose monthly income is above min.5000 can be a part of this loyalty card.

This is the slogan of the future card.

Apart from this CENTRALs goes with various loyalty services such as FREE redeem o

parking coupons, free alteration to all customers, sometimes free home delivery to customers

etc. this is the loyalty scheme run by CENTRAL.

The main benefit beyond this future card is you can use

this card in various outlets run by FUTURE GROUP!

Apart from this as we talk about other player in retail sector SHOPPERS having FIRST

CITIZEN card. INDIA BULL MEGA STORE having PPC(pyramid power club) which goes

with loyalty card.


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BIG BAZAAR 1 3 months 15% off on fashions t

1 3 months 10% off on generals t

Merchandize.

FOOD BAZAAR 1 KG Food bazaar sugar free

1 3 months 3% off on foods.s t

Pantaloons Rs.100 off on apparel purchase ofRs. 500 or get a T-shirt worth Rs. 299 on

apparel purchase of Rs. 1000

Central Rs. 50 off on Rs.1000 & above

purchase.

For 1 3 months Rs. 250 off ons t

Rs. 2500 & above purchase.

BRAND FACTORY Rs. 50 off on Rs. 1000 & above

purchase.

For 1 3 months Rs. 250 off ons t

Rs.2500 & above purchase.DEPOT Rs .50 book free from exclusive

depot collection per month.

Shoe Shoe polish/socks FREE on Rs.

100 per month.

Mport/genm Airtel live VAS cards ( worth Rs.

500 content FREE)

Planet sports Rs. 249 Spalding/Converse cap

FREE on purchase of Rs.111 & above per

month.

F123/CO 1 video game FREE per month

with load of min. Rs. 50

TOP 10 Rs. 200 off on Rs. 1000 & above

purchase.

Home Town Gift worth Rs.250 for every Rs.

1000 & above spent per month.Get gift worth 7.5% of purchase

above Rs. 10,000 at HOME TOWN.

STAR & SITARA 1 time foot massage FREE per

month.

eZONE A head phone worth Rs. 199 with

purchase through FUTURE CARD at eZONE.

Futurebazaar.com A Future card & futurebazaar.com

MUG worth Rs.50 on 1 purchase everys t

month.

Bombay blue 10%-15% off on total bill amount.

COPPER CHIMNEY 10%-15% off on total bill amount

YATRA 10%-15% off on total bill amount


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PENNE 10%-15% off on total bill amount

SPAGHETTI 10%-15% off on total bill amount

The Apollo Clinic For 1 3 months 50% discount on ast

range of special FUTURE CARD & Apollohealth checkups.

15% off on health check up.

20% off on diagnostics checkups.

HP Get 2.5% surcharge waiver on fuel

purchases at select HPCL outlets.

Lilliput 10% discount for Future card

holders on all Lilliput apparels & accessories.

15% discount on all Lilliput

footwear.

VLCC Inaugural offer: 1 face / body

firming session plus counseling worth Rs. 2000

FREE.

Regular offer: slimming/beauty/hair

package 30% flat discount.Regular offer: beauty services -30%

flat discount.

Regular offer: 15% off onRBS(salon services)

Travel Port 15% off on Domestic packages

10% off on Weekend breaks.

12.5% off on INTERNATIONAL

packages.

These are all details about FUTURE CARD. These are all offers which are provided by

FUTURE CARD. This is first time in INDIA that any company providing such type of

LOYALTY CARD which any 1 can use in number of brands.

This type of card really change the mind of customer towards the LOYALTY.


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FOLLOWING RESEARCH HAS BEEN DONE BY :

Grahame R. DowlingAustralian Graduate School of Management

University of New South Wales

&

Mark Uncles

School of MarketingUniversity of New South Wales

Sydney 2052Australia.

In a bid to strengthen relationships with their customers marketers are showing renewed interest in

customer loyalty programs. But how effective are these programs? Surprisinglygiven their current

popularitythe evidence is equivocal. Research on normal patterns of loyalty in established

competitive markets suggests that in many cases it is hard to obtain exceptional advantages through

the launch of a loyalty program. Also, competitive forces tend quickly to erode any differential gains.

Before introducing a loyalty program, managers would be wise to fully cost it (including

development, marketing and on-going costs), and compare these costs with a realistic assessment of

the benefits of the programan assessment that goes beyond the rhetoric of relationship marketing.

Here we argue that to stand the best chance of success under tough market conditions, a loyalty

program must of the product or service. This in turn will help

to of a product, and therefore of the

firms offensive and defensive marketing strategy.


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Advocates contend that loyalty programs are more profitable to a firm because:

(a) The costs of serving customers are less,

(b) Loyal customers are less price sensitive,

(c) They spend more with the company, and

(d) They pass on positive recommendations about their favorite brands/suppliers.

IN Thomson South Western

learning,2003 give definition of CUSTOMER LOYALTY as given below:

SHETH & MITTAL have defined customer loyalty as

come with the new study that a sample of older ,

lower income group & less educated women were willing to shop in the same store & avoid

the risk of shopping in the new stores.

in his study said that, store loyal consumer to be engaged in

less repurchase search , know about fewer stores & less likely to shop even in stores known to

them. He also found that the shopping behavior or style to more likely exist among low

income consumers because they were constrained by their inability to shop much.

came with the

study that store loyal consumers found more risk in shopping & hence felt being store loyal

would reduce the risk of shopping in unknown stores.

they found that more no. of single parent

household also limited the amount of time available for shopping & the additional cost of

being store loyal was worth the time saved.


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The purpose of this paper is to focus on establishing individuals' levels of loyalty

and what sustains and develops their customer loyalty. This paper recognizes the importance

customer loyalty has for many competitive organizations and industries. However there has

been less focus on what value customers attach to customer loyalty in this context.

A two-stage study is presented, establishing individual

levels of loyalty and then identifying the role of mediating effects in loyalty development.

The first stage involved a postal survey, including a 28-item scale, designed to measure

customer loyalty, and its sustainers and vulnerabilities (mediating effects). The second stage,

and the main focus of this paper, uses scores from the loyalty scale (high, medium and low

levels of loyalty) to examine what sustains and develops loyalty amongst differing levels of

development.

The findings highlight the importance of identifying, understanding and managing

mediating effects, in the context of loyalty development. The research emphasizes the

importance of a differentiated approach to developing and managing customer loyalty by

appropriately rewarding customers at different levels. The findings highlight the need to

acknowledge the importance of reciprocity in terms of which aspects of service customers

value.

The main contribution of this paper is that it uniquely identifies an

approach to understanding the sustaining and vulnerability effects mediating customer loyalty

development going beyond previous categorization attempts. Understanding this approach

should lead to effective customer loyalty management and greater awareness of managing

recognition, reciprocity and rewards.


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Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in

both the value andlifestyle segment of the Indian consumer market. Headquartered in Mumbai

(Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores

across 53 cities in India and employs over 25,000 people.

The companys leading formats include , a chain of fashion outlets, , a

uniquely Indian hypermarket chain, , a supermarket chain, blends the look, touch and

feel of Indian with aspects of modern retail like choice, convenience and quality and

, a chain of seamless destination malls. Some of its other formats include,

. The

company also operates an online portal, .

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format

home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to

the consumer electronics segment.


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Pantaloon Retail was recently awarded as:

1. by the

3.

4.

5.

6.

7.

is the flagship company of , a business group catering to

the entire Indian consumption space.


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Now we are going to discuss about all LINE OF BUSINESS come under PANTALOONs RETAIL.


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Launched in May'04 at Bangalore, Central is a

showcase, seamless mall and the first of its kind in India. The thought behind this pioneering concept

was to give customers an unobstructed and a pure shopping experience and to ensure the best brands

in the Indian market are made available to the discerning Indian customer.

Central offers everything for the urban aspiration shopper to . Located in

the heart of the city, Central believes its customers should not have to travel long distances to reach

us; instead we must be present where customers frequently visit.

In a short span of its existence Central has revolutionized and redefined the shopping experience in

India. At Central, customers no longer only shop, they get SHOP-ATAINED!


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1. central determine the attribute and needs of it's customers.

2. central integrates all plan and activities to maximize efficiency. All the

employees make their best service to customer.

3. central offer good value to customers whether it to be discounter or up sale

this means having the price appropriate for the level of product and customer service

4. - central set goals and then uses a strategy to attain them. central set goal to

achieve the one hundred crore target in 2008.

To relate the marketing concept to retailing, with an emphasis on the total retail

experience customer service, and relationship retailing. The marketing concept (known as retailing

concept when applied to retail situations) should be understood and used by all the retailers.

The total retail experience includes all the elements in retail offering that encourage

consumers during their contact with retailer. Many elements such as number of sale people, displays

price. The brands carried, and inventory in hand are controllable by a retailer, others like the adequacy

of on-street parking, the speed of on line shopping and sale taxes are not. If some part of the total

retail experience is unsatisfactory, consumers may not buy a given good or service.

The total retail experience of is very good. There is goods systematic display of

goods. Synapses indicate price of the goods. Smart sales people, they always maintain eye

contact with customer. There are good branded item's are available in CENTRAL store.


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A retail strategy is overall plan that guide a firm. It consists of situation analysis objectives

identification of customer market, broad strategy specific activities, control and Feedback.

Organisational mission

Situation Analysis Ownership Management alternativesGoods/Services Category

Sales

ProfitObjectives

Satisfaction of PublicsImage

Mass Marketing

Identification Concentrated MarketingDifferentiated Marketing

Controllable VariablesOverall

StrategyUncontrollable Variables

Daily and Short term OperationsSpecificactivities

Responses of environment

Evaluation

ControlAdjustment

Element of Retail Strategy


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Objectives are the retailer's long term and short term goal. A firm may pursue one or more of

their objectives Sales (growth, Stability and market share) Profit (level, return on investment,

and efficiency) Satisfaction of public (Stockholders, consumers and others) and image

pinioning (customer and industry perception)

Next consumer characteristics and needs are determined and a retailer elects a target market.

A firm can sell to a broad spectrum of consumers (Mass Marketing) Zero in an one consumer

group (concentrated Marketing) or aim at two or more distinct group s of consumers

(differentiated marketing) with repeated retailing approaches for each.

A broad strategy in then formed. It involve controllable variables (aspects of business a firm

can directly affect) Uncontrollable variable (factors of a firm cannot control and to which it

must adapt)

1. Store Location 1. Consumers

2. Managing business 2. Competition

3. Merchandise management 3. Technology

and pricing

4. Communicating with the 4. Economic Condition

Customer 5. Seasonality


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Central also include for certain type of home wares & other thing.

The record area of strategic planning managing a business into two major element human resources.

- Management look like promotion, display are very good at central

there are special promo area for different event.

Special price policy like .

At the end of week central give special offer in merchandise.

Central keep all the category of merchandise. Different choices of

merchandise are in the More is according to their classification.

- Central charge medium& high price but offer wide range of deep assortment. With

regard to pricing central choose several pricing techniques (such as leading following, cost

plus/demand oriented and so on) then decide what range of price is set, consistent with the

More is image and quality of goods and service offered.

- Basically central target upper medium& high class people According to this

central learns about its target market and from a strategy consistent with consumer trends and


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desire. Selecting a target market is within a retailer's control but the firm cannot sell goods or

services that are beyond the price range of its customers not wanted, or not displayed or

advertised I n proper manner.

Competition in retail sector increasing in India. Retail industry even organized

retail is fragmented industry in India. Every region has local competitors (Margin Free in

Kerala, Subiksha ,Nilgiri in Chennai) Big Bazaar , Reliance and Spencer are close rivals of

More make a good presence in Maharashtra while R.P.G. make good presence in south India.

Government has gave the approval F.D.I. in retail sector so it will increase competition n

retail rector wall Mart J.C Penny, Mark & Spencer could inter in Indian Market.

- In today's world of retailing technology is advance rapidly. Computer system is

available for inventory control and check out. Operation. Bar coding has revolutionized

merchandise handling and inventory control.

Economic condition of India is more better than one decade before.

Per capita income as increase by 5.2% in this fiscal year. G.D.P. also increase people have more

disposal income. Unemployment Interest rate, inflation tax levels and the annual gross Domestic

product (GDP) are Just some economic factors with which a retailer copes and which it cannot change

In outlining the controllable to consider and adapt to forecast about international, national state and

local economics.


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I did my summer project from Central 2. In Central there are 5 floors and each floor is divided into

each segment .

is having all international brands like Lacoste , Tommy Hilfiger , Nautica and many

more .

is having ladies and kids section and Shoes section .

is divided into 2 sections in which 1 section is for all Casuals in which we have

brands like Lee, Levis, Lee Cooper etc. and the another section is for Planet Sports in which all main

brands are existing like Adidas , Nike , Puma , Converse etc.

is for all Mens formal dressings like Arrow, Excalibur, Peter England, Urbana,Van

Hausen, Wills lifestyle etc. and we also have ethnic wears also in which we have Akkriti and

Manyawar.

is for Casuals wearing and Home Furnishing also in casuals we have brands like

Provogue, Status quo, M Square, Proline and many more brands.

is divided into 2 segments. 1 is for Food court named as Spoon the food court and

another section is for in which you can get all the FMCG goods .

These are the segments and floors in which central 2 is divided. I did my project basically for 3rd

floor which is known for FORMALS SECTION

In each floor there is the Floor Manager, ADM(asst. departmental manager), Team leader,

CSAs. all these people working for a floor.


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After my 3 months project in CENTRAL I can say there are 6 PARAMETRES OF RETAIL

OPERATIONS. These are the parameters which is to be followed and maintained by every

organization .

Stock is very essential part of operation. We should know about the stock presence on the floor.

On which brand we have a full option & cut option .so we have to make option plan of the floor

every Monday.

We makes stock requirement also of those product which is fast moving & on demand items.

A manager should also aware about each and every brand requirement and he has to make sure about

the refilling and replenishment of the stock . The stock has to be refilled accordingly.

Sometimes some of the items are not moving in brands then we send it back to the vendors or

sometimes we send it to Brand Factory.

- In Retail industry at the end of the day the one thing which matters is

only one thing that is profit . In central for earning profit we daily distributed the targets for each and

every brands and these brands have to perform better for the achievement of the their targets . They

also got there brands targets on monthly , quarterly and yearly bases . For the achievement they do

hard work and if they succeed in achieving their targets then they get incentives according to their

contribution.


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In Operations Staff plays a important role in achieving the targets . Sales executives are the persons

which are directly interacted to the customer and they know what the customer actually want.

Customer cant meets to the Managers directly.

So its necessary that staff should be well groomed & interactive to the customer.

We daily check the grooming of staff just like hair cut, clean clothes, etc & their eye contact, body

language, communication skill etc.

We should train the staff time to time like:

How to communicate with customers?

How to increase the selling?

How to make the customer to purchase more?

Customer is most important thing in retail .

In retail, this idea of focusing on the best current customers should be seen a s an on-going

opportunity. To better understand the rationale behind this theory and to face the challenge,

we need to break down shoppers into five main types:

: They represent no more than 20% of our customer base, but make up more

than 50% of our sales.

: They shop our stores frequently, but make their decisions based on the

size of our markdowns.

: They do not have buying a particular item at the top of their To Do

list, but come into the store on a whim. They will purchase what seems good at the time.


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: They have a specific intention to buy a particular type of item.

They have no specific need or desire in mind when they come into

the store. Rather, they want a sense of experience and/or community.

If we are serious about growing our business, we need to focus our effort on the loyal

customers, and merchandise our store to leverage the Impulse shoppers. The other three types

of customers do represent a segme nt of our business, but they can also cause us to misdirect

our resources if we put too much emphasis on them.

We can delight our customer if we give them better service. In Centrals we give some

following service to our customers :

Visual Merchandising is the art of displaying

merchandise in a manner that is a ppealing to the eyes of the customer. It sets the context of

the merchandise in a n aesthetically pleasing fashion, presenting them in a wa y that would

convert the window shoppers into prospects and ultimately buyers of the produc t. A creative

and talented retailer can use this upcoming a rt to breathe in new life into his store produc ts.

Visual merchandising is acted as a sile nt communicator to the custome r. The main function

of V.M is to aware a bout what merchandise is available in store.


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It's simple!

You'll compete by maximizing your greatest source of productivity --

Look at these realities.

1. Few companies budget sufficient dollars to professionally train their sales

And customer contact people.

2. Most retail salespeople are poorly trained in professional selling skills.

3. Most training is product training.

4. Old-fashioned sales techniques are outmoded and contribute to turnover and poor job performance.

Modern day, value-focused selling can usually increase a salesperson's effectiveness

Around 15% to 25%.

As a Manager we have to look up following thing, so that we know about our actual selling &

achievement of our target:-

- no. of customers is coming in our mall?

- how many customers are purchasing out of them?

- total sale/no. of bill

- for ex. Floor 3 contributes 15 to17 % of mall selling.

- Van hausen, Arrow etc. is the brands who are

contributing higher in floor 3.

- each brand has to provide a specific area in sq. feet


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In order to ensure the success of an event or promotion, it is necessary that the store where

action is to take place be geared for the same.

Managing alliances and partnership with local partners is also an important part of store

operations.

Display of merchandise and point of purchase material has to be managed at the store level.

An integral part of managing a super market is an understanding of fresh produce and its

storage needs and replacing the product when needed.

Control of perishables and sanitations are two important aspects of the operations of the store.

During my project in central they organized event named as THE GREAT FRENCH AFFAIR

The main purpose of this event was to get familiar our customers with the .

By celebrating this festival they tried to experience the French culture.

It can be defined as strategic and tactical planning program and the attendant execution exercises for a

brand using the full mix of communication

(

1. Increase sales

2. Build Market share

3. Generate awareness and trial of new brand

4. Stimulate retrial

5. Encourage repeat purchases

6. Generate purchase continuity

7. Provide alternate usage suggestions.

8. Stimulate trade-up to larger sizes

9. Temporary adjust pricing

10. Defense against competitive activity

11. Excite the sales force.


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I was the part of 3 events in

1. The Great French affair.

2. Youth buzz.

3. EOSS (end of season sale).

Experience the glamour of Eiffel Tower at Central

: Come get a heady taste of the finest French wines on all weekends.

: Watch mouth watering French delicacies being whipped up by a renowned

chef on all weekends.

Delectable French pastries will have you begging for more.

Watch the leading models sizzle on the ramp in designer French collections

on May 17th & 24th 2008.

: Get a stunning 'Ooh la la' French Style makeover.

: Sizzle, Shake and Cheer with French Cancan dances on May 10th 2008.

Learn charming French moves from leading dancers on all weekends

: Get your portrait sketched by a true blue French

Youth buzz offering you no. of discounts & offers like

Denim exchange mela.

Magic weekend

Offering apparels like future C.E.O., Saturday night fever.

Overall response from the customer was good.


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Basically EOSS means stock clearance sale. During this period there were huge no. of discounts

are over there.

During this sale period huge crowd was there, because of discounts on each and every item.

Main thing in this period is stock. Before 10 days of the sale period we send requirement of the stock

to each and every company for this period.

Main work during this season is to manage all thing including signages, proper updates of offers.

There were special offers on 15 ,16 ,17 AUGUST because of INDEPENDENCE DAY, RAKSHAt h t h t h

BANDHAN.

Start by doing a basic evaluation of your store

Is your sign up-to-date or is it old and dated-looking?

Is your sign clearly visible and in good repair; no holes, cracks or burned out bulbs?

Does your sign tell customers what type of products you sell at a glance?

Do you have adequate signage for your building as it relates to street visibility?

Does your signage make a strong statement about your company?

Is your product signage uniform in design?

Does your product signage describe the high points or features of the product?


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Is signage up to date?

Is directional signage easy to see and understand at a glance?

Do you use signage as part of your visual merchandising?

Is your floor clean and fresh looking?

Is your carpet clean, lying well, and vacuumed?

Is your entry clean and in good repair?

Are you using multiple styles of floor coverings to direct traffic flow and distinguish between

departments?

Are all of your bulbs operating and in good condition?

If using fluorescent bulbs are all bulbs the color temperature?

Is your appliance area bright in contrast to the more subdued electronics area?

Are you using Track or spotlights to create focal points?

Good white light 3500 to 4100K should be used to light an appliance section.

Is your store clean? Are floors waxed and buffed, carpet shampooed and vacuumed?

Is your product neat and tidy?

Are your aisles free of clutter and boxes?

Is your exposed office area neat with continuity?

Do your store fixtures match or are they a conglomeration of manufacturer's displays?

Are your fixtures broken or in disrepair?

Are your fixtures being used for the products for which they were intended?


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Does your store use store fixturing? (Appliance fixtures, built-in fixtures, platforms,

gondolas, etc.)

1. Daily distributing sales report to each and every CSA including target & last nights

sale.

2. Daily check the global counting book of the stock.

3. Keep details of all the inwards & outwards on the floor.

4. Check whether the staging & color blogging is perfect or not.

5. At the weekends (sat. & sun) help cashiers for packing & sometimes for billing also.

6. On the Mondays collect the details of fast moving merchandize from each and every

brand & their requirement of stocks also.

7. During the GREAT FRENCH AFFAIR I had perform the job to tell every customer

what is the French festival is all about?

8. After this festivals, I al so work for Customer Feedback Counter. Where I had to

request each and every customer to feel the feedback form. From which I can get

more knowledge of customer behavior, there expectation from the mall.

9. During the sale period (eoss) lots of work there which I performed.(staging, color

blogging, stock inwards, placing of gondolas, rearranging the section because of a

huge stock in each section.

10. During EOSS sometimes I help for alteration also.

11. On the billing counters it really tough to handle the customers over there, for that

purpose I was always there to solve all the problem.

This is all about my project profile during my inte rnship.


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To collect whole detail about the awareness of customers towards FUTURE CARD.

OPTIONS RESPONSE

Once a year 25

Once a month 35

Twice a month 65

Thrice a month 75

TOTAL 200

16%

34%Once a year

Once a month20%

Twice a month

Thrice a month

30%


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2. From where do you buy your apparels (clothes)?

Options Re sponse

Pyramid 60

Central 80

Shoppe rs 50

Mega mart 10

Total 200

5%

30%25%

pyramid

Centrals

shoppers

Mega mart

40%

Fig 3.4 where do u shop?

3. Age of the customer ?

Below 18 yrs 5

Between 18 to 63

25 yrs

Between 25 to 7

35 yrs

Between 35 to 35

45 yrs

Above 45 yrs 10


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4.

a. Male

b. Female

Fig 3.6 gender

>15000 12

20000-25000 6225000-30000 56

30000 above 70


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Fig 3.7 income range

Less than500Between 500to 1000Between1000 to 2000Between2000 to 5000More than5000NotApplicable


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OPTIONS RESPONSE

Yes 60

No 140

TOTAL 200


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Reasons for not being aware of FUTURE GROUP?8.

OPTIONS RESPONSE

Dont have any idea 70

Not inform by any CSA 60

Dont have any display 70

Total 200

OPTIONS RESPONSE

Yes 50

No 150

TOTAL 200


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10.Are you interested to be a part of FUTURE CARD?

OPTIONS RESPONSE

Yes 150

No 50

TOTAL 200

FIG 3.12

THIS RESEARCH IS BASICALLY FOR THE LOYALTY SCHEMES.

This questionnaire is totally about loyalty card in CENTRALS


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Second researc h has be en done to collect data about the comparative analysis among

the competitors.

To collect data for

: 200 customers.


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: From the above chart we can say that on the basis of price as a

parameter 34% people likes to shop in CENTRALs. The main reason behind is the in house brands

of PANTALOONS which are really very affordable to everyone who comes for shopping & wide

range of options & sufficient space for each and every brand & good service. As compare to price

range there is close competition. So CENTRAL have to keep focus on each & every brands.

: From the above chart we can say that on the basis of brands

available 39% people prefer to shop in CENTRALs. The reason is availability of various brands as


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well as various in-house brands. As compare to other competitors CENTRALS have more space for

each and every brand, wide range of options.

: From the above chart we can say that on the basis of product

range 33% people prefer to go with CENTRALS. It has a good range of products as various in-house

brands are also available with economical prices. They can still improve upon by getting various other

brands and introducing various in-house brands .

After interpreting the chart we come to know that 43% people

are satisfied with the trial rooms at CENTRALS as compared to other stores in Pune. So


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CENTRALS should maintain the service oftrial room in the same manner. Another reason is enough

space in each trial room, which made by latest technology.

After interpreting the chart we come to know that 39% people

feel the offers in CENTRALS are really good & attractive. So customers are satisfied with the offers

that CENTRALS launches at regular intervals.


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Taking into consideration the above statistics we can see that

42% people feel that the service (free alteration, exchange policy, staff suggestions, redeem parking

coupon etc.) given by CENTRALS are much better as compared to other stores in Pune. So they

should keep enhancing the loyalty program and should keep in mind that customer is the king so we

need to provide best services to keep the customers loyal.

We can interpret from the above chart that 49% people find

that parking is not a problem at CENTRALS. As compare to other stores in PUNE, only

CENTRALs has its own space for parking other than others , because they are parking on the sharing

basis. Its parking is in basement that why customers get more space for parking. While paying the

shopping bill they can redeem the parking coupon. There is the lift facility for customers to the

basement. In centrals they provide valet parking also which is not there in other stores in PUNE.


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DENIM EXCHANGE MELA, electronic AUCTIONS etc. In all these events there is huge

response of customers because of that during those days sale of the mall also increases.

We can interpret from the above chart that 49% people feel

that ambience in CENTRALS is better than other stores in PUNE. Basically CENTRALs pays more

attention towards the customers requirement what they want? What are their expectations towards the

mall.


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We can interpret from the above chart that 83% people feel

that events organised in CENTRALS is better than other stores in PUNE. Because only CENTRALS

goes with the concept that , SHOP ,EAT, & CELEBRATE. That is the slogan of CENTRALs.

Other stores not allow any type of food stuff inside the mall. That the reason why there is huge

approach of customers in CENTRALS.

We can interpret from the above chart that only 16% people

goes with CENTRALs. Only in this section CENTRALs lack behind others stores in PUNE.

CENTRALs has to keep more attention towards this.


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From this above given questionnaire following are the observations & recommendations.

1. From this research, there are majority no. of customers who buys more than 3 times in a

month as compare to other customers. So these customers are loyal customers for

CENTRALS. No of other customers who buys more than 2 times, 1 time in a month are

also there. These are also the targeted customers for the CENTRALS.

2. There were higher percentage of customers who like to buy from CENTRAL as compare

to other competitors.( pyramid, shoppers etc.) means majority of customers are like to

shop from CENTRALS. So by organizing some events or with good product range &

discounts, these remaining customers get diverted towards CENTRAL.

3. As per the data collected through this survey, we can say higher no. of customers are

youngsters. Along with professionals, businessmen etc. between the age group 25-35.

4. Majority of females customers are there, as compare to male customers.

5. As per income range is concern, majority of customers are high class customers means

income(30000+/month).who loves to shop in CENTRALs. They are really brand

conscious.

6. There are higher no. of customers who spend more than 3000 for their 1 time shopping,

more than 3000 also. Some customers are there who even shop more than 10000 also.

Basically main objective behind this questionnaire is to collect information about the

awareness about FUTURE CARD among the customers.

As per the data collected by questionnaire, i am very disappointed by the result that is

only 30% customers were aware about the FUTURE card.

The main reason behind it is that they dont have any idea about FUTURE CARD. Only

few of them know about it. The main reason behind it is, there is no display inside the mall


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for FUTURE CARD. All the employees working over there are not aware of that, among 200

customers only 30% customers have the FUTURE CARD.

After that i ask for their interest in FUTURE CARD, more than 75% customers are

interested to be a part of FUTURE CARD. They are really very interested to be a member of

FUTURE CARD. They want more information about the FUTURE CARD.

As per all this data, as per my opinion is concern, CENTRALs have to think more about

the FUTURE CARD. Because as we discuss above more than 75% customers really very

interested to be a part of the FUTURE CARD.

This one is really very important thing where CENTRALS have to be concentrate.

Because of this they get more LOYAL customers. CENTRALS have to arrange some events

for promotion of FUTURE CARD. Including proper displays inside the mall, informing every

employees over there to tell every customers about the FUTURE CARD.

At the cash counter keep any executive to give information to each and every customer.

Or make a proper section for FUTURE CARD at the entrance of the mall. By that every

customer get idea about FUTURE CARD.


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www.retailbiz.com

www.google.com

www.retailyatra.com

www.wikipidea.com

www.timesofindia.com

www.economictimes.com

www.future.com

www.amazon.com

www.futurebazaar.com

Retail management book by CHETAN BHAGAT

Book RETAILING by PATRICK M . DUNNE

Retail management book by SUJA NAIR

ICFAI JOURNALS.

BUSINESS TODAY

HARVADS JOURNALS

MARKETING MANAGEMENT BY PHILIP KOTLER

IT HAPPENS ONLY IN INDIA BY KISHORE

BIYANI.


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5) How often do you buy apparels (clothes)?

Once a Week

Once in 15 days

Once a month

Once every three months

Once every 6 months

Once a Year

6) From where do you buy your apparels (clothes)?

Pyramid

Centrals

Shoppers


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To collect data for

: 200 customers.

Documents

15971678 PROJECT REPORT on Retail Sector in India by Satishpgoyal