Hyp Final Report 29

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HYPERCITY RETAIL INDIA LTD.

2010

Consumer Profiling of Hi-Tech in

HyperCITY, Malad

In Guidance of

Prof. Veni Nair

(Faculty guide at ITM)

Mr. Bhusan Bawkar

(Service Manager, Hi-Tech Section, HyperCITY, Malad)

Submitted By: Saurav Kumar

(KHR2009PGDMRMF059)

[Type the document subtitle]

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I T M B U S I N E S S S C H O O L , K H A R G H A R , N A V I M U M B A I

ITM Business School, Kharghar, Navi Mumbai Page 2

ACKNOWLEDGEMENT

I would like to acknowledge a deep sense of gratitude to my internal guide at

Institute for Technology and Management, Mumbai, Professor Veni Nair who

guided me in making this project, for his constant support and guidance.

I would like to acknowledge a deep sense of gratitude to my project guide

Mr.Bhusan Bawkar Service Manager, Hi-Tech (section) HyperCITY, Malad,

Mumbai for imparting me with knowledge about the Operations in the store without

whose help this project would have not taken this shape.

I would also like to thank my industry guide Mr. Siddarthan M, Head of

Operations, HyperCITY Retail India Ltd. for allowing me to undertake my project

work there. I also thanks to Mr. Darshan Thakkar (General Manager, HyperCITY,

Malad), and to all of my colleagues and fellow interns at HyperCITY, Malad.

Finally I thank all the employee of HyperCITY, Malad who helped in understanding

the various processes there.


DECLARATION

I, Mr. Saurav Kumar, Roll No. KHR2009PGDMRMF059,hereby declare that this

project report is the record of authentic work carried out by me during my summer

training of duration of 3 months starting from 5th May 2010. The summer internship

was undertaken at HyperCITY Retail India Ltd., (Malad) Mumbai.

Saurav Kumar

20th August 2010


Table of Contents

Sr. No Topic Page No.

1. Executive Summary 5

2. Company Profile 6-27

3. Industry Profiling 28-35

4. Objectives of the study 36

5. Findings & Analysis 37-48

6. Conclusions 49

7. Recommendations 50-51

8. Limitations 52

9. Annexure 53-55


EXECUTIVE SUMMARY:

HyperCITY Retail (India) Ltd. is part of the K. Raheja Corp. Group, a leader in the

Indian retail sector. K Raheja Corp helped create retail boom in India with

Shoppers’ Stop, Inorbit Mall, Crosswords, MotherCare and Home Stop apart from

their successes in Realty and hospitality. HyperCITY is a hypermarket in the true

sense and offers its customers a dominating assortment of quality products at great

value in a large, modern and exciting format.

The main purpose of the study was to understand the customer buying behavior of

consumer durables in a hypermarket. The research also tries to understand the

customer base visiting the Hi-Tech section of HyperCITY and its competitors.

Another important task was to analyze the competition in the market, the

customers satisfaction level with respect to price, offers, product range etc.

Consumers' buying behavior is divergent and situational. For durable products, such

behavior got different dimensions again. The Indian consumer durables industry

has witnessed a considerable change in the past couple of years. Changing lifestyle,

higher disposable income coupled with greater affordability and a surge in

advertising has been instrumental in bringing about a sea change in the consumer

behavior pattern. Apart from steady income gains, consumer financing and hire-

purchase schemes have become a major driver in the consumer durables industry.

To make the study simple and informative Hi-Tech section of HyperCITY

(HYPERMARKET) is used to represent the consumer durable market. The Indian

consumers were indifferent in choosing the brand since a lot of close substitutes

were available in the market. Choosing the right brand difficult enough when there

were half a dozen brands and all of these claimed to give excellent quality.

Hypermarkets are interested not only in the product but also the behavior of the

consumers because it gives them the right orientations for product development

and positioning. The level of consumer's satisfaction provides the scope for

repeated purchases and brand loyalty that lead to optimum profitability.

The study plays a significant role in understanding the profile of customers of

HyperCITY, Malad as well as its competitors like Vijay sales and Croma Store. This

report also helps in analyzing consumer Profiling in Hi-Tech section. The report

speaks about customer satisfaction based on various attributes like price offers,

after sales service etc. This research finds that consumer`s perception on buying

from Hi-Tech section is mostly affected by the factors, such as, price offers, stoick

availability, delivery time of products, after sales service etc.


Company Profile

HyperCITY Retail (India) Pvt. Ltd. is part of the K. Raheja Corporation group, a

leader in the Indian retail sector.

HyperCITY provides a truly international shopping experience, where customers can

shop in comfort in a large, modern, & exciting environment and stocks an

astonishing array of products ranging from groceries, food, house items, fresh food,

garments to consumer durables and offers consumers more variety and value for

money, all under one roof.

Vision: - ‘To be an integral part of customer lives, by offering them a high quality

shopping experience through great products at ever better prices.’

Objective: -

• To provide an international shopping experience.

• To be committed to extending high standards of customer service.

• To be one point destination for customers for all kind of products.

Positioning: -

• HyperCITY format offers a true one-stop shopping destination with

authoritative assortments in every category.

• HyperCITY Outlets are for upper middle class income group.

• HyperCITY have multiple brands products along with their own brand of

products too which are available at not very high price.

Target Consumer: -

• Upper & Upper middle income group

• Families & not just individuals

• They target the upper income consumer with a quality shopping experience.


• And target the middle income group by giving them a one stop destination

for all shopping needs.

HyperCITY (Malad Store): -

The HyperCITY store is situated over 1,20,000 sq feet area. Its Merchandise area

80,000 sq feet & consists of 1,16,000 SKUs in the store.

The store is divided into two sections i.e. it has 2 floors. The 1st floor has all the

grocery and household items that includes vegetables, diary, poultry etc. The 2nd

floor consists of HAM (Hi-Tech, Appliances, Multimedia), furniture, garments, sports

material etc. It also has a pharmacy, Presto Dry Clean and a Vodafone gallery.

The Store timings are from 10.00am to 10.00pm working from Monday to Sunday.

There are 30 Billing counters in the store, 26 are at the Ground floor & 4 at the 1st

floor.

Number of staff is approximately 328, out of which 280 are service associates and

the numbers of shifts is 3.

Features of HyperCITY (Malad Store): -

a) HyperCITYDiscoveryClub: -

Now, shopping at HyperCITY is an even more rewarding experience. The

HyperCITY Discovery Club brings you great savings, exclusive promotions,

special previews and a whole lot more. Earn Discovery Reward points and

redeem them against purchases. HyperCITY Discovery Club reflects our

commitment to offer you the ultimate shopping experience.


b) 'Splash&Dash'Car,WashFacility:

Now you can get your car a new look while you are busy with your shopping.

HyperCITY presents a car wash facility and a lot more for your car. Interior

services like complete interior cleaning, sanitization & protection, upholstery

cleaning, dry vacuuming & sanitation, carpet shampooing & vacuuming,

console treatment, fiber parts treatment, trail trip dressing. Dash board

enhancement, etc. & exterior services like high pressure jet foam wash,

engine wash (diesel/shampoo/chemical), polymer paint protection, shine

protection and enhancer, spots/ stain treatment, polish coating to engine and

much more are available at HyperCITY.

c) DailyDiamonds:

A range of Diamonds perfectly cut for your pocket. Discover affordable prices

& great deals on an exquisite range of diamond jewellery.

d) Crossword:

Pick your favorite books, magazines, movies or the month’s bestsellers at

HyperCITY.


e) Pressto:

Pressto is a global leader in high quality dry cleaning, with more than 500

stores in over 20 countries and over 100 million satisfied customers.

Pressto’s reputation as the best brand in dry cleaning stems from a

commitment to quality, personalized service and speed of delivery. Now

leave your clothes in safe hands while you shop at HyperCITY.

f) Home Delivery:

HyperCITY is committed to extending high standards of customer service

even beyond shopping through our Home delivery service. Our aim is to

delight our customers through timely delivery of goods, every time.

HyperCITY`s home delivery service is aimed at setting the industry

benchmark. The mantra of 'Delivery on Time-Every Time' is what underlines

the service. Also to ensure that the service standards are raised and not

compromised HyperCITY has decided to manage the process in-house.


g) Enrich:

Pamper yourself at Enrich, the largest chain of unisex salons in Mumbai.

h) Vodafone:

Now recharge your mobile, pay your bills at Vodafone gallery in HyperCITY,

which is open during store hours.

i) ATM:

We have an in-store ATM facility, which is accessible during store hours.


j) Restaurants&Cafés:

Sit down for a relaxing cup of coffee, pick a wine, enjoy a good meal &

freshly baked cakes & savories or unwind post shopping at Desicafe, Café

Coffee Day, Kwality Swirls, Gelato, Turkish Delights, Living Liquidz & Fresh

Basket bakery at HyperCITY.

k) HyperCITY Extended Warranty: -

Our electronics come with a unique feature. Peace of mind!

Pay a nominal fee. We`ll cover mechanical & electrical breakdown. Get the

benefit of genuine parts. Free parts and no labor charge. Hassle free repairs.

Inflation free repairs, Free replacement if not repaired. For details call our

dedicated toll free no. for EW claims 1800-209-9993.

l) Parking Facility: -

Parking facility is available at HyperCITY and charges will be levied as under:

4-wheelers : Rs.20

2-wheelers : Rs.10

This money will be refunded to customers, upon purchases of Rs.100 and

above, on the same day itself.


m) Institutional Billing: -

One stop solution for institutional and corporate requirements. Also available,

HyperCITY gift vouchers for corporate gifting.

Exclusive Brands in HyperCITY (Malad): -

HyperCITY have a wide array of exclusive brands across all categories. These

brands ensure increased value to our customers through superior product offerings,

quality and uniqueness at great prices.

I. Food & Grocery: -

I. Terzo:

The Power of Super clean is now in your hands. Introducing Terzo

Home cleaners with power of 3! The range comprise of power cleaners,

Everyday Cleaner, Toilet cleaner, Floor Cleaner & Utensil Cleaner.


II. Fresh Basket:

Every Fresh Basket product guarantees freshness and quality on a

daily basis, with all the goodness locked in. Fresh Basket offers the

freshest selection of meat, seafood, fresh produce, freshly baked

breads, specialty bread, etc.

III. Waitrose:

Voted the top supermarket chain in UK. Exclusively available at

HyperCITY. Come and taste the best of teas, coffees, juices,

jams and more.

II. Home:

IV. Ebano:

Discover stylish essentials for your home with HyperCITY’s

exclusive brand e b a n o. e b a n o presents a selection of

basic products with a modern appeal. Bringing your home to

life with contemporary designs, vibrant colours, great value


& is present across Utensils, Cutlery, Bakeware, Crockery,

Glassware, Pots'n'pans, Implements, Bed linen, Towels,

Cushions, Table linen, pillows and more.

V. Avorio:

Make your home a more luxurious place with Avorio, the

exclusive brand from HyperCITY. AVORIO offers exclusive,

versatile and classic designs to enhance your lifestyle. Avorio

spans Implements, Pots'n'pans, Glassware, Cutlery,

Crockery, Towels, Bed linen, Table linen, Duvets & quilts and

more.

VI. Everyday:

The range includes everything you need for your office -

office accessories, writing instruments, paper stationery, etc.

III. Sports: -


VII. Raleigh:

The Raleigh Series of bicycles are available exclusively at

HyperCITY. Raleigh is one of the world’s biggest brands in

Bicycles. Raleigh bicycles are simple, elegant, efficient and

fun. They are designed with care and fitted with latest

technology. Raleigh has the following varieties in bicycles -

Mountain Sport, Platinum, Juvenile, Toy cycles, etc.

VIII. Maxit:

The Maxit line of sports equipment and apparels is available

exclusively at HyperCITY. Maxit stands for - Maximum

Range, i.e. it offers a superior line up of sports gear at great

value. Maxit is available across sports categories like cricket,

football, basketball, volleyball, boxing and baseball.

Channel Partners(HyperCITY, Malad): -

To bring Indian shoppers a world-class retailing experience, HyperCITY has

partnered with the best of class.

HyperCITY has partnered with JHP of London for in-store design. JHP is a

world-class retail design firm with considerable experience in large format

stores around the world.


HyperCITY has deployed best of breed technology infrastructure from JDA,

which is the leading global retail technology provider. The JDA suite

comprises of the Merchandise Management System (MMS), WinDSS point of

sale, E3 Advanced Replenishment, and Intactix space planning modules. The

system ensures that customers don't have to wait in long queues for billing,

or transaction processing. Thereby enhancing the overall customer

experience at HyperCITY.

Johnson Diversey is a world class & trusted source of Cleaning and Hygiene

products and services. Since food sanitation, store hygiene, safety, etc., are

important in any store, Johnson Diversey helps improve the customer

shopping experience across key interaction points like food safety,

sanitation, etc.


General Merchandise Category(Department code-301): -

GM is made up of the following departments:

• Home

• Furniture

• Linen and Luggage

• Hi-Tech

• Appliances

• Multimedia

• Sports

• Toys

• Stationary

General Merchandise plays a significant role from the bottom line perspective. The

margin contribution from this segment is 48% of the overall company margins.


Hi-Tech (Department Code: -107)

Sub Department Class Sub Class Description

Computing

107 101 101 Desktop computer

107 101 102 Peripheral

107 101 103 Laptop and Notebook

107 101 104 Plam Top PDA

107 101 105 Monitor

107 101 106 Projector

107 101 107 Disk Drive and Storage

107 101 108 Networking

107 101 109 Bag and Case

107 101 110 Computing New Technology

107 101 111 Computing Repair

Software

107 102 101 Business

107 102 102 Home

107 102 103 Game

107 102 104 Educational

Communication

107 103 101 Desktop Phone

107 103 102 Cordless Phone

107 103 103 Answering Machine

107 103 104 Fascimile Machine


107 103 105 Mobile Phone

107 103 106 Mobile Bundle

107 103 107 Mobile Accessory 12.5%

107 103 108 Mobile repair

107 103 109 Mobile Prepaid

107 103 110 Mobile Contract

107 103 111 Mobile Accessory 4%

Photographic

107 104 101 Film Camera

107 104 102 Digital Camera

107 104 103 Cam Corder 4%

107 104 104 Distant Vision-Binaculars

107 104 105 Memory and Tape

107 104 106 Processing

107 104 107 Photo Accessory 12.5%

107 104 108 Photo Printer

107 104 109 Photo Repair

107 104 110 Photo Accessory 4%

107 104 111 Camcorder 12.5%

Imaging

107 105 101 Printer

107 105 102 Scanner

107 105 103 Web Camera

107 105 104 Imaging Accessories

107 105 105 Imaging Services


Category Drivers: -

Communication

• Mobile Phone

• Mobile Bundle

Computing

• Laptop and Notebook

High Margin SKUs

Imaging

• Printers

Processes: -

Merchandising standards and checks

• End to end merchandising with promotional talker at the center.

• Minimum gap between shelves

• Peg hooks of the same size placed end to end on the cross bar.

• Same product category to be stacked on a gondola.

• Promotional product category stacked on HyperCITY Discovery plinth only.

• 100% adherence to the floor plan given by the buying team.

• All High-end products must be displayed with FAB cards.

• All products to be in power on mode to enable customer demos.

Ticketing in section

Shelf edge labels placed on the left side of the product.

FAB Cards

FAB cards are prepared for laptops, printers, Mobile phones, Monitors, cordless

phones, Desktop and Computing accessories.


Hygiene standards

Product Cleaning, Plinth cleaning must be done every day.

Communication through POST

• Information w.r.t post should be collected from Store Coordinator

• Task to be accordingly implemented and status must be entered in the

post document

• Lastly the document must be filed in the POST file for Hi-Tech

Promotion

The Service Manager must check the following

• Last date of Promotion

• Price prompt in the POS next day (after promotion ends)

• Inform the same to his team

• Incase of errors, report to the Buyer

Global Counts

Mobile phones, cameras, SD cards, Scratch guards, Blue tooth Head sets are

counted on a daily basis during opening and closing and the data is maintained in a

register signed off by the Service Manager.


Planogram (Hi-Tech Section): -

Total Area of Hi-Tech = 2400 sq. ft. Approx

Mobile Section = 256 sq. ft.

Camera + EOL = 42 sq. ft. + 10 sq. ft.

Laptops = 153 sq. ft.

Sony Laptops = 25 sq. ft.

Gateway Laptops = 25 sq. ft.

Periferals = 25 sq. ft

Cordless Phones = 68 sq. ft.

Total Trading Area = 600 sq. ft.


Sales Report of Hi-Tech section: -

Hi-Tech sales Report (weekly)

TARGET NET SALES VARIATION (%)

WEEK 1(3RD MAY TO 9TH MAY) 4,362,104 3,315,083 -24

WEEK 2(10TH MAY TO 16TH MAY) 3,925,893 3,726,903 -5

WEEK 3(17TH MAY TO 23RD MAY) 3,925,893 3,016,373 -23

WEEK 4(24TH MAY TO 30TH MAY) 4,362,104 3,189,090 -27

WEEK 5(31ST MAY TO 6TH JUNE) 4,984,057 4,053,665 -19

WEEK 6(7TH JUNE TO 13TH JUNE) 4,614,867 3,265,517 -29



WEEK 9(28TH JUNE TO 4TH JULY) 4,852,863 3,783,500 -22

WEEK 10(5TH JULY TO 11TH JULY) 4,493,391 3,081,235 -31



WEEK 13(26TH JULY TO 30th JULY) 2,552,711 1,772,684 -31



Conversion List: -

CUSTOMER

ENTRY

NO. OF

CASH

MEMOS

CONVERSION

(%)

AVERAGE

CASH

MEMO

SIZE

TOTAL

SALES

WEEK 1(3RD MAY TO 9TH MAY) 68,334 28,291 42 1,284 36,313,930

WEEK 2(10TH MAY TO 16TH MAY) 61,343 27,732 46 1,232 34,141,094

WEEK 3(17TH MAY TO 23RD MAY) 58,231 27,062 47 1,185 32,065,463

WEEK 4(24TH MAY TO 30TH MAY) 64,861 28,484 44 1,208 34,392,516

WEEK 5(31ST MAY TO 6TH JUNE) 73,203 30,450 42 1,322 40,251,413

WEEK 6(7TH JUNE TO 13TH JUNE) 67,859 29,705 44 1,248 37,052,812



WEEK 9(28TH JUNE TO 4TH JULY) 71,584 27,363 39 1,503 41,116,510

WEEK 10(5TH JULY TO 11TH JULY) 57,934 26,506 46 1,413 37,451,392



WEEK 13(26TH JULY TO 30th JULY) 32,233 14,791 46 1,258 18,604,042


Awards & Recognition: -

International Awards: -

HyperCITY, Mumbai won The Award of Merit for Large Format Specialty Store

at the United States International Design Awards in New York on 15th

January, 2007. This is the first time that an Indian Company has received an

award like this. This was the 36th awards function for the Institute of Store

Planners/VM+SD International Store Design, New York.

HyperCITY was voted as India's top retail store by ‘Retail Week’, a leading

U.K. magazine revered by retailers worldwide. It was voted as the ‘100

Shops You Must Visit’, across the world and was featured amongst

internationally renowned stores such as Bloomingdales New York, Selfridges

U.K, Louis Vuitton Paris and Carrefour Shanghai. The special report carried

weightage for innovation and creativity in retail, as well as recognizing retail

excellence. The report was based on a survey carried out by ‘Retail Week’

amongst key players in the retail industry consisting of businessmen,

analysts, retail consultants, editors and top shoppers around the globe.

Domestic Awards: -

Coca Cola Golden Spoon Awards 2009 - Images award for excellence in food

retailing awarded Gourmetcity as "Most Admired Food Retailer of the Year" &

"Innovative Retail Concept".

Star Retailer Awards awarded Gourmetcity "Debutant Retailer of the Year

2008".

The Bold 100 - IDG India CIO magazine has recognized Shoppers Stop and

HyperCITY as a recipient of 2008 CIO 100 Award. The annual award program


recognizes those executives and organizations those are playing not just to

survive, but to win and embrace great risk for the sake of great reward.

Most Admired Retailer of the Year for Retail Design & Visual Merchandising -

Images India Retail Forum, 2007.

Star Retailer - Value Retailer of the Year 2007.

Asia Retail Congress - Reid & Taylor Retailer of The Year (Hypermarket).


Industry Profiling

Retail Sector is the most booming sector in the Indian economy. Some of the

biggest players of the world are going to enter the industry soon. It is on the

threshold of bringing the next big revolution after the IT sector. Although

organized retail market is not so strong as of now, it is expected to grow

manifolds by the year 2010. The sector contributes 10% of the GDP, and is

estimated to show 20% annual growth rate by the end of the decade as against

the current growth rate of 8.5%. A CRISIL report says that the Indian retail

market is the most fragmented in the world and that only 2% of the entire

retailing business is in the organized sector. This suggests that the potential for

growth is immense. There are about 300 new malls, 1500 supermarkets and 325

departmental stores currently being built in the cities across India.

Estimates and predictions for retail sector:

At present, the industry is estimated to be at more than US$ 400 billion by

a study of McKinsey.

The Economist Intelligence Unit (EIU) estimates the retail market in India

will increase to US$608.9 billion in 2009 from US$394 billion in 2005.

KPMG Report says that the organized retail would grow at a higher rate

than the GDP in the next five years.

The retail sector would generate employment for more than 2.5 million

people by the year 2010, predicts an analysis by Ma Foi Management

Consultants Ltd.

Evolution of Indian Retail Industry: -

The origins of retailing in India can be traced back to the emergence of Kirana

stores and mom-and-pop stores. These stores used to cater to the local people.

Eventually the government supported the rural retail and many indigenous

franchise stores came up with the help of Khadi & Village Industries


Commission. The economy began to open up in the 1980s resulting in the

change of retailing. The first few companies to come up with retail chains were

in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc.

Later Titan launched retail showrooms in the organized retail sector. With the

passage of time new entrants moved on from manufacturing to pure retailing.

Retail outlets such as Foodworld in FMCG, Planet M and Musicworld in

Music, Crossword in books entered the market before 1995. Shopping malls

emerged in the urban areas giving a world-class experience to the customers.

Eventually hypermarkets and supermarkets emerged. The evolution of the

sector includes the continuous improvement in the supply chain management,

distribution channels, technology, back-end operations, etc. this would finally

lead to more of consolidation, mergers and acquisitions and huge investments.

Phases in the evolution of retail sector

Weekly Markets, Village and Rural Melas

Source of entertainment and commercial exchange

Convenience stores, Mom-and-pop / Kirana shops

Neighbourhood stores/convenience

Traditional and pervasive reach

PDS outlets, Khadi stores, Cooperatives

Government supported

Availability/low costs/distribution


Exclusive brand outlets, hypermarkets and supermarkets, department

stores and shopping malls

Shopping experience/ efficiency

Modern formats/ international

Modern Format retailers:-

Supermarkets

Hypermarkets

Department Stores

Specialty Chains

Company Owned Company Operated

Tradiitonal Format Retailers:-

Kiranas: Traditional Mom and Pop Stores

Kiosks

Street Markets

Exclusive/ Multiple Brand Outlets


Percentage of Organised Retail across the world

Indian Retail market

Indian retail industry is the fifth largest in the world. Comprising of organized

and unorganized sectors, India retail industry is one of the fastest growing

industries in India, especially over the last few years. Though initially, the retail

industry in India was mostly unorganized, however with the change of tastes

and preferences of the consumers, the industry is getting more popular these

days and getting organized as well. With growing market demand, the industry

is expected to grow at a pace of 25-30% annually. The India retail industry is

expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by

the year 2010.


Indian market has high complexities in terms of a wide geographic

spread and distinct consumer preferences varying by each region necessitating

a need for localization even within the geographic zones. India has highest

number of outlets per person (7 per thousand) Indian retail space per capita at

2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6

percent is highest in the world.1.8 million households in India have an annual

income of over 45 Lakhs.

Delving further into consumer buying habits, purchase decisions can be

separated into two categories: status-oriented and indulgence-oriented.

CTVs/LCDs, refrigerators, washing machines, dishwashers, microwave ovens

and DVD players fall in the status category. Indulgence-oriented products

include plasma TVs, state-of-the-art home theatre systems, iPods, high-end

digital cameras, camcorders, and gaming consoles. Consumers in the status

category buy because they need to maintain a position in their social group.

Indulgence-oriented buying happens with those who want to enjoy life better

with products that meet their requirements. When it comes to the festival

shopping season, it is primarily the status-oriented segment that contributes

largely to the retailer’s cash register.

While India presents a large market opportunity given the number and

increasing purchasing power of consumers, there are significant challenges as

well given that over 90% of trade is conducted through independent local

stores. Challenges include: Geographically dispersed population, small ticket

sizes, complex distribution.

http://en.wikipedia.org/wiki/LCD

http://en.wikipedia.org/wiki/Refrigerators

http://en.wikipedia.org/wiki/Microwave


Retail formats in India:-

Hyper marts/supermarkets: large self-servicing outlets offering products from a

variety of categories.

Mom-and-pop stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a

personal touch.

Departmental stores: are general retail merchandisers offering quality

products and services.

Convenience stores: are located in residential areas with slightly higher

prices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers

customers a mix of all types of products and services including

entertainment and food under a single roof.

E-trailers: are retailers providing online buying and selling of products

and services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages,

snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories.

They are known as category killers as they focus on specific categories,

such as electronics and sporting goods. This is also known as Multi

Brand Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and

provide deep assortment. Mumbai's Crossword Book Store and RPG's

Music World are a couple of examples.


Major Indian Retailers:-

Indian apparel retailers are increasing their brand presence overseas,

particularly in developed markets. While most have identified a gap in countries

in West Asia and Africa, some majors are also looking at the US and Europe.

Arvind Brands, Madura Garments, Spykar Lifestyle and Royal Classic Polo are

busy chalking out foreign expansion plans through the distribution route and

standalone stores as well. Another denim wear brand, Spykar, which is now

moving towards becoming a casualwear lifestyle brand, has launched its store

in Melbourne recently. It plans to open three stores in London by 2008-end.

The low-intensity entry of the diversified Mahindra Group into retail is unique

because it plans to focus on lifestyle products. The Mahindra Group is the

fourth large Indian business group to enter the business of retail after Reliance

Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other

three groups are focusing either on perishables and groceries, or a range of

products, or both.

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre,

Viveks Safe Deposit Lockers

PGC Retail -T-Mart India, Switcher , Respect India , Grand India Bazaar

,etc.,

REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super

RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper,

Spencer’s Super, Daily & Fresh

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central,

Fashion Station, Brand Factory, Depot, E-Zone etc.

The Tata Group-Formats: Westside, Star India Bazaar, Steel junction,

Landmark, Titan Industries with World of Titans showrooms, Tanishq

outlets, Chroma.

K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City

http://en.wikipedia.org/wiki/Africa

http://en.wikipedia.org/wiki/US

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Mahindra_Group

http://en.wikipedia.org/wiki/Reliance_Industries_Ltd

http://en.wikipedia.org/wiki/Reliance_Industries_Ltd

http://en.wikipedia.org/wiki/Aditya_Birla_Group

http://en.wikipedia.org/wiki/Bharti_Enterprises


Lifestyle International-Lifestyle, Home Centre, Max, Fun City and

International Franchise brand stores.

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiri’s-Formats: Nilgiris’ supermarket chain

Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom

discount chain.

Vishal Retail Group-Formats: Vishal Mega Mart

BPCL-Formats: In & Out

Reliance Retail-Formats: Reliance Fresh

Reliance ADAG Retail-Format: Reliance World

German Metro Cash & Carry

Paritala stores bazar: honey shine stores

Aditya Birla Group - More Outlets

http://en.wikipedia.org/wiki/Reliance_World


Objective of the study

1. To understand consumer buying behavior for Hi-Tech Section at HyperCITY,

Malad.

2. TO know the consumer profiling of Hi-Tech Section in HyperCITY, Malad.

3. To Understand the Awareness of HyperCITY Discovery Card in HyperCITY,

Malad.

4. To analyze the Share of Voice of the major competitors in the CDIT category


Finding & Analysis

1. To understand consumer buying behavior for Hi-Tech Section at HyperCITY,

Malad : -

Here, we can see that frequency of customer is maximum in once in a week slot

i.e.86 out of 200 says that they visit HyperCITY for shopping once in a week.

So, it can be said that people comes to hypermarket as to buy their weekly

basket goods.


Here, we can see that most of people get all the brands they wish to shop in

HyperCITY, Malad. i.e. 116 out of 200 gets the brand that they wish to shop &

84 out of 200 do not get the product they wish to buy. People also do not get

different models of product in same range.

Here, we can see that majority of people says that HyperCITY does not provide

adequate offers as its compititor. i.e. 119 out of 200 says that offer available in


HyperCITY is not compititive to market offers & 81 says that offers of HyperCITY

is better than its compititors. People often says that Freebie provided by Croma

has more worth that that of HyperCITY.

Here, we can say that most of the people finds price of HyperCITY is less than

that of its compitition. i.e. 109 out of 200 says that price of HyperCITY is less

than its compititor`s price & 91 out of 200 says that price of HyperCITY is more

than its compititor`s price.


Here, it is showing that mojority of the customer gets well informed about the

product & service that they wish to buy. i.e. 132 out of 200 get well informed

about the product & service they want to buy & rest 68 was not satisfied by the

service of the associates.

Here, we can find that majority of people says that HyperCITY is not the

Destination store for purchase of consumer durable goods. i.e. 124 out of 200


says that HyperCITY does not have all the consumer durable good that there

compititor have in the market.

2. TO know the consumer profiling of Hi-Tech Section in HyperCITY, Malad : -

From the above table we can infer that, people in the age group of 16-24

years are the major shoppers at HyperCITY, Malad followed by the age group

25-36 years. This shows that the young people are the major consumer as

well as major shoppers. We can say that, the youth population of India has

adopted this system and prefer to shop at this format.


Here, form the data we can find that customer whose occupation is service

comes more to store for shopping. This may be because they have higher

spending capacity in their hands. Then it is followed by students because

they are the people who are very prone of mobiles, laptop, camera etc. so,

we can say those customers visited to HyperCITY are educated people.

Here, it is shows that customers are coming from distant area to shop from

HyperCITY, Malad. This study reveals that catchment area of HyperCITY,


Malad is not just 0-5 km but it is more than 21km, also the frequency of visit

to store does not depend on area of residence or the distance from the store.

3. To Understand the Awareness of HyperCITY Discovery Card in HyperCITY,

Malad : -

Here, it is find that 26 out of 40 customer has HyperCITY Discovery card

i.e.65% of people own Membership card.It is also be infer that people who

has Discovery card comes very often to buy products in the store & avail

extra discount in store.


Here, we can say that only 10 customer have been informed about

HyperCITY Discovery card out of 20 which is just 25%. For a good

Hypermarket their Loyal customer are very important for business. Loyalty

cards are essentially different from other varieties of cards primarily because

these cards are used to attract, reward and retain customer.


Here, it can be seen that only 17 out of 40 associates ask for Discovery card

during billing which is not a good sign for the company. So it can be said that

people who are often visiting store does not have Discovery card will loose

extra benefit provided by the company. We can find that 50% checkout

counter associates does not ask for membership card.


Here, we can see that 10% of people use their card on big purchase, 30% use it in

every purchase, and 25% seldomly use their card on buying of goods in the store.

4. To analyze the Share of Voice of the major competitors in the CDIT

(consumer durable and information technology) category : -

A Share of Voice is a brand's or group of brands' advertising weight expressed as

a percentage of a defined total market or market segment in a given time period.

The weight is usually defined in terms of expenditure, ratings, pages, poster

sites etc. (Share of voice)

Below is a pie chart representing the Share of Voice of various electronic brands

competing in the market.

http://en.wikipedia.org/w/index.php?title=Advertising_weight&action=edit&redlink=1

http://en.wikipedia.org/wiki/Market_segment

http://en.wikipedia.org/w/index.php?title=Poster_site&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Poster_site&action=edit&redlink=1


The study shows that Vijay Sales is a major player in the market, and it spends

heavily on its advertising campaigns. The data shows that Vijay Sales has 49% (i.e.

60 print ads) of share of voice in past 3 months. Vijay Sales advertises aggressively

in the leading newspapers like Times of India, Mumbai Mirror and DNA.

In the period of last 3 months i.e. from May 5th, 2010 to July 25th, 2010; HyperCITY

has advertised its electronic section in the newspaper only 4 times which is just 3%

in the total share of voice.

Hyper Action Deals: Discounts on Camera

Hyper Action Deals: Discounts on LCD’s, CRT’s

Hyper Whiz Deals: Discounts on laptops and Computers

Hyper Pouring Deals: Discounts on Washing machines, Iron etc.


Advertisement


Conclusion

1. The First & most objective of our study is comparative study of

consumer buying behavior. The study of consumer behavior is the

most important factor for marketing of any goods and services. The

consumer behavior suggest how individual, groups and organization

select, buy, use and dispose of goods, services, ideas or experience to

satisfy their needs and wants. It also clues for improving or

introducing products or services, setting price, devising channels etc.

2. The marketers always look for emergent trends that suggest new

marketing opportunities and here in india a lot of opportunities are

available.

3. Hypermarket as a destination to shop is now become the trend among

the Indian people, however we see that customers do not visit

frequently to our store. This gives us an impetus that we have to be

visible in the market.

4. We also analyzed the sales of Hi-Tech section of our store. We found

that advertisement of the CDIT product is very productive. It increased

the sales of Hi-Tech section for that particular week.


Recommendation

1. HyperCITY Should increase the range of mobiles as it is one of the most

fast moving product in Hi-Tech Section. Eg: - Micromax

2. One Billing counter has to be open in the HAM Section (Hi-Tech,

Appliances & multimedia).

3. As it is known that over stock is bad & stock out is worse so it is

suggested that Stock out should be avoided as it creates a bad image in the

eyes of customer.

4. Customer Service Associates should be given proper training (i.e. How

to Greet customers, proper product knowledge, personal & Interpersonal

training)

5. During the business hours it should be seen that Laptops which are

running in charging throughout the day should be taken care of i.e. it is

making battery weak which reduces the life of battery.

6. HAM specific catalogue advertisement should be come in the NEWS

paper so that people can easily compare HyperCITY with other stores in

terms of Pricing, Promotions.

7. Display of EOL (End of Life ) product has to be in a manner as it should

look like a new arrival in the section.

8. Grouping of customer service associates should be avoided on the floor

at the Business hours.

9. Breaks of CSAs have to be managed by service manager because at

time there were no associates present when customer needs information

about the products.

10. Service Manager should always check if the promotion price is relecting

on the POS.


11. CSAs should highlight the products on the shop floor with promotional

signage.

12. Complain/ Feedback Box can use for suggestion from customers at the

HAM Section.

13. CCTV Camera should be in working just above the cash counter.


Limitations

1. A major number of the questionnaires were filled by telephonic interview and

from the HyperCITY, Malad office so there could be biasness involved while

comparing with the competitors.

2. The time for the project was 3 months when not many offer were available on

appliance and not the apt season to buy Hi-Tech Products.

3. All the age groups were not equally represented.

4. Customer fatigue could have led to some inaccuracies in the respondents.


Annexure

Consumer profile & their Expectation

1. How often do you visit HyperCITY?

a. Once in a week

b. Twice in a week

c. Twice in 15 days

d. Once in a month

e. Others (………………………….)

2. Do you get all the brands with us for whom you wish to shop in HyperCITY

(Hi-Tech section)?

a. Yes

b. No

If No, Please specify……………………………………………………………………………………

3. Do you find our offers competitive to market offers (Hi-Tech section)?

a. Yes

b. No


4. Do you find our pricing competitive to market (Hi-Tech section)?

a. Yes

b. No


5. Do you get sufficient assistance from our Team to help you buy (Hi-Tech

section)?

a. Yes

b. No

If No, Please specify ………………………………………………………………………………….

6. Do you consider HyperCITY to be a destination store for Hi-Tech Goods?

a. Yes

b. No


7. Gender: - ……………………..

8. Marital Status: - ……………………..

9. Age: - (a) 16-24 Years (b) 25-36 Years (c)

37-48 Years

(d) 49-60 Years (e) 61 Years & Above

10.Occupation: - (a) Service (b)Self Employed

(c)Housewife (d)Student

11.Area of residence (in Distance KM): - (a)0-5 Km (b)6-10 Km (c)11-

15 Km

(d)16-20Km (e)21 Km & Above

12.Any suggestion for Improvement

……………………………………………………………………………………………………..

……………………………………………………………………………………………………..


Discovery Questionnaire

Malad Store – 1001

1. Do you have HyperCITY Discovery Card?

If NO, then

(i) Have you been informed by our associates about Discovery card? If NO then,

(ii) Would you like to enroll yourself for Discovery card?

If YES

(i) Does the associate ask for the card before billing?

2. How often do you use your membership card?

Every transaction

Big purchase only

Seldom

Never

3.If Seldom / Never, then

Please let us know the reason why you don’t swipe your card for every transaction?

4.Your suggestions and feedback:

Documents

Hyp Final Report 29