Retail Aspects of Videocon

A

PROJECT REPORT

ON

SUBMITTEDBY

RANAJEE

MMS2005-2007

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, NEW PANVEL-410206

Date :- 09/04/2007

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Ranajee, student of MMS (Finance) of Pillai’s Institute of Management Studies and Research (PIMSR), has undertaken a project in our Company on the topic “RETAIL ASPECTS OF VIDEOCON”.

During this period he was found sincere and hardworking and has keen interest in learning new concepts.

We wish him good luck for his carrier.

ACKNOWLEDGEMENT

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 1

Sometimes the words are the only medium to show your appreciation and gratitude.

While preparing this project report I got enormous assistance from various persons to whom I wish to express my thankfulness for their unsolicited help.

The stimulus to my desire to make report came mainly from Dr. R Chandran, Director, Pillai’s Institute of Management Studies and Research (PIMSR), New Panvel and project guide Prof. Nalini Krishnan and Dean of PIMSR Mr G Vijay Raghvan who allowed me to do research work. I therefore, express my deep gratitude to them.

I specially thank to all the marketing executives and all the staff members of videocon Pvt. Ltd. Who always help me out during my project work. I express my gratitude to videocon Pvt. Ltd. for their kind co-operationand giving the opportunity to work in their excellent working conditions.

Last but not the least I am thankful to all my friends and colleagues for their support.

Ranajee

ContentsSr. No. Topics Page No.


1 Executive Summary

2 Chapter 1 Introduction

Introduction to Retail Industry Introduction to Topic Objectives Scope of the work Limitations Research Methodology

3 Chapter 2 Company Profile

Videocon Group Emart India Ltd

4 Chapter 3 Retail Management

Concepts and Application

5 Chapter 4 Information & Analysis

Parameters Comparative Analysis

6 Chapter 5 Findings

Observations Conclusions Suggestions

7 Appendix ( Cross Promotion Scheme)

8 Annexure

9 References


Executive Summary


Executive Summary

The idea of selling to India has caught on. It appears to have become an almost

default exercise for a number of international white goods makers. A number of

them now prefer to launch their products in India. Some of the latest product

innovations are being tried out in India first, even before the US, Europe or Japan.

India has become a premium market for a number of consumer durable makers. To

succeed here, however, requires discretion. Indians are different from Americans or

Europeans and need to be treated differently. This fact was nailed home when a

number of foreign companies burnt their hands about a decade ago by introducing

their products without adequate research on the market being addressed.

The Project programs are designed to give the future mangers feel of being a part of

corporate world and closer look to the working environment of the company. This

project program bridges the gap between the bookish knowledge and work

experience. Project program made us to understand how theoretical knowledge will

be applied in practical field.

I exactly in this context that I was privileged enough to join Emart India Ltd, a part

of Videocon Group, as a summer trainee. The experience that I have gathered over

past eight weeks has certainly provided me with an orientation, which believe will

help me and shoulder any assignment successfully in future.


The project deals with the study of the Next, Retail outlet situated at Udaipur . The

Retail store plays very important role in enhancing sales for the company. The store

is evaluated on the various parameters set by us and the relevant suggestions which

can be implemented in the outlets were made.

All the information is collected by the observation and unstructured interviews from

the franchisee of Next outlet. There are in all $6 parameters covered in this study to

have a perfect idea about the performance of the Next Outlet at Udaipur.

The study is held to have a perfect idea about:

The outlet performance

Product Assortments

Retail Mix Analysis

Point of Sale consumer Behavior

The analyzed data was later on presented in the form of observation with

comparative Analysis where the proposed suggestions were made.


Introduction


Retail Industry

Introduction

The Retail Market size in India is estimated to be around $180 billion. Retailing provides

jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor

to India's GDP.

But the flip side of the coin is that the average size of each of the retail outlets in India is

only 50 square feet and though a large employer, the industry is very unorganized,

fragmented and with a rural bias.

The Indian retail industry is unorganized

There are nearly twelve million retail outlets in India and the number is growing. Two thirds

of these stores are in rural location. The vast majority of the twelve million stores are small

"father and son" outlets. According to the "Retailing in India" report published by the PwC

Global Retail Intelligence Program, share of the unorganized sector is 98%.

The Indian retail industry has rural bias

Nearly two thirds of the stores are located in rural areas. The retail industry in rural India has

typically two forms: "Haats" and "melas". Haats are the weekly markets: they serve groups

of 10-50 villages and sell day-to-day necessities. They are frequently used as replenishment

point for the small village retailer. Melas are larger in size and more sophisticated in terms of

the goods sold. Mela merchandise would include more complex manufactured products such

as televisions.


Even in urban areas, organized in India is restricted to the top few cities of the country as

shown in Table given below:

CitiesTop 6 Next 4 Top 6 Next 4

1999 2008 (Expected)

Distribution of organized

retailing88% 12% 66% 20%

VISION 2010

The past 2-3 years have seen a number of developments in the retailing business in India.

The entry of corporate houses like RPG, Tatas and Piramals has increased the capital

availability in the market. Bigger players like Shoppers Stop are in a position to take

advantage of their sizes in dealing with the manufacturers. Despite a slowdown in the

economy, customer queues at the stores are not decreasing. Retail sector is bound to grow in

the coming years. But how much and in what direction are the questions that need to be

evaluated.

Various agencies have made different estimates of the size of organized market in 2010. The

one thing in common amongst these estimates is that the Indian organized retailing industry

will be very big in 2010. The status of the industry will depends lot on external factors like

Government regulations and real estate prices, besides activities of the retailers and demands

of the customers. Based on our analysis of present trends, and development of retailing

elsewhere, we present our perspectives and snapshots of organized retailing, as it would exit

in 2010.

Investment will increase

Retail sector will see huge investments in the next 4-5 years. Newer chains will come in and

the present players will increase their penetration. By 2005, the established players would

have reached saturation levels in metropolitans and will shift the focus of their investments

to other Class 1 cities. By 2010, there will be little difference between the metros and the

next 20 cities (the present million plus cities).

However, the investments would largely be private investments, or at best secondary

markets. This will happen because expansion will happen through investments by business

houses that will not sell their stakes. If any purely retailing company exists, it will be an


exception. However, if the ban on foreign players holding a controlling stake is lifted, the

sector could see drastic movements. The entry of foreign players will undoubtedly result in

buying and selling and some businesses might withdraw their money in anticipation.

The entry of foreign players, if allowed, will not only affect ownership, but also change the

basics of business. Huge investments in stores and their supply chains can transform the

entire scenario. But the lifting of ban is a policy issue that cannot be predicted, and can only

be decided by the government.

24 hours retailing

Time stressed consumers will also ask for round the clock retailing. As these consumers will

be ready to pay a premium for service at odd hours, the timings of shopping will have to

adapt to needs of these consumers. A number of 24 hours retail stores would emerge to cater

to this need.

The assumption here is that the current administrative restrictions on running shops at nights

will be lifted. It is expected that in the face of increasing demand from both the consumers

and the industry for, regulations regarding retailing will be eased.

Small retailer will coexist

Within a decade, large organized retailers would be controlling a substantial portion of the

retail trade. Yet, it is not to say that small, independent and unorganized retailers will

disappear in large numbers. They will survive on their core strengths of personal relations

with customers and closeness to residences. The experiences of South East Asian countries

has been that even after 10 to 15 years of allowing FDI in retailing, unorganized retailers still

control a sizeable chunk of the retailing market. The Indian experience in retailing is

expected to be no different.

Supply chain dynamics


The balance of power between retailers and manufacturers will shift towards the retailers.

The bigger retailers would be able to seek the lowest prices, require their suppliers to assume

greater business risks, and collaborate with suppliers to achieve overall cost reduction in

their operations.

Scale economics would help in operating optimized supply chains and logistics network with

investments in information technology enabling process efficiencies and effectiveness.

Increased volumes would enable investments in specialized equipment for transportation of

goods. Retailers with large chains would negotiate and get central procurement but local

dispatches from their suppliers.

Internet

Internet retailing will thrive in the coming decade. It may not be apparent now because

Internet access is far behind the US and west and high usage charges represent a serious

impediment to frequent consumer usage. The Government has already shown intent to

deregulate the telecommunications sector. Deregulation would increase Internet usage in the

country and also the trading on the net.

However, it is expected that the bricks and mortar stores converting to clicks and mortar

model would dominate the Internet sector. ? This is because of their already existing brand

names and economies of operations that they would be able to reap.

Conclusion

The past 4-5 years have seen increasing activity in retailing. Various business houses have

already planned for few investments in the coming 2-3 years. Though the retailers will have

to face increasingly demanding customers and intensely competitive rivals, more investments

will keep flowing in and the share of organized sector will grow rapidly.

Organized retailing in India is surely poised for a takeoff and will provide many

opportunities both to existing players as well as new entrants.


Introduction to Topic

Retail Audit

“The systematic examination and evaluation of a firm's total retailing effort or some

specific aspect of it. Its purpose is to study what a retailer is presently doing,

appraise how well the firm is performing, and make recommendations for future

actions.”

Since the stores are the physical space where the customer interface happens it is

essential for the store to connect with it customers. The projection of the store to

customers depends on a attributes like layout, ambience, visual merchandising. In

addition the store should also perform its function of interfacing with the customer in

an efficient way; this can be best achieved by careful planning and tracking the

procedures.

Retail Audit includes:

Store layout and Visibility ManagementIn-store ManagementCustomer Relations and InterfaceVisual Merchandising


Ambience and Hygiene ManagementManpower Planning and Responsibility allocationSales and Cash Management

The study of Retail outlet is one of the distinct experiences in itself where the

actual consumer behavior can be studied through observations. I chose this topic of

Retail Audit because I was interested in finding out how does the retail outlet

actually works, what are their limitations and the most important part is it’s a

realtime study where you can actually stay in the outlet for some time and see what

all is happening there.

I have observed the different activities involved in the outlet very critically and at

the same time I suggested some very good recommendations which were

implemented on the spot.

Objectives

Detailed study of different activities involved in the Retail outlet.

To find out the performance of the next outlet on the basis of different

parameters.

To find out the behavior of the sales staff present in the next outlet.

To find out the customer flow and the conversion rate.

To find out the point of sale consumer behavior.

To find out the order processing time for a transaction.

To analyze different services provided to customers.


Scope of the work

o This study is conducted in the Next retail outlet only situated at Udaipur city

in Rajasthan.

o The study is related to observational part of marketing research techniques.


o This study is conducted with the help of parameters list which includes the

marketing as well as operational factors.

o This study doesn’t includes the responses given by the consumers coming to

retail outlet

Limitations

o The study was conducted simultaneously where the different activities in the

outlets were being carried out.

o There is always a chance of biasness while using the observational technique of

research.


o The information related to the outlet was on the basis of information provided

by the outlet person which could be different from reality.

Research Methodology

The study is qualitative in nature, which includes observation of different activities related to

retail operations and marketing at company outlet of NEXT at Udaipur city. The information

related to sales staff, location, product merchandising, store atmospherics, visual

merchandising and related to other important areas were collected.

These observations covered all the major areas related to retail operations and at the same

time they were critically examined and the suitable suggestions for the same were provided

so that these can be implemented in the outlet.

The observation were made inside the outlet at different point of time like in the

morning from 11 am to 1 pm, then in the afternoon from 3pm to 5 pm and in the


evening from 6pm to 8 pm so that all the different activities at different time can be

observed and the biases can be ignored.

In this study, I have found some of the serious areas where we need to work on. The detailed

observations and the suggestions related to the same are described in the further part of the

report.

Research Plan:

While developing the research plan following points were taken into consideration-

Data sources, research approach, Research instrument, sampling plan so that

information can be gathered in most effective way.

Data Sources:

Primary Data: Observation Method Secondary Data: Company Branch office, Journals, Website

Research Approach: Qualitative Exploratory Research

Research Instrument: Unstructured Interviews and Disguised Observation

Sampling Plan:

Study Centre: Next Outlet at Udaipur Sampling Technique: Convenience Method


Company Profile

Videocon


Corporate Profile

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set

trends in every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors:

Consumer Durables Thomson CPT CRT Glass Oil & Gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

Videocon enjoy a pre-eminent position in terms of sales and customer satisfaction in

many of our consumer products like Color Televisions, Washing Machines, Air

Conditioners, Refrigerators, Microwave ovens and many other home appliances,

selling them through a Multi-Brand strategy with the largest sales and service

network in India. Refrigerator manufacturing is further supported by our inhouse

compressor manufacturing technology in Bangalore.

Color Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high

level of experience and technical expertise operating through Poland and India.

Videocon will leverage on this synergy after the Thomson acquisition to internally

source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest


http://www.videoconworld.com/consumer-durables/index.php

http://www.videoconworld.com/thomson/index.php

http://www.videoconworld.com/glass/index.php

http://www.videoconworld.com/oil-gas/index.php

operating costs in the world producing 50,000 barrels of oil per day. The group has

ambitious plans for expansion in this sector globally.

Vision & Mission

Videocon’s Mission: A reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and emerging realities:

“To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…” the end

This segment not only underlines the importance of the ultimate goal - customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers and reliable associates, Videocon is able to exceed expectations.

“…through ingenious strategy…”: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity and improvisation that is flexible enough for scenarios both imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides game-plans, or sometimes changes the rules of the game.

Product Profile


Group Companies:

Videocon Appliances Ltd Videocon International Ltd. Eagle Corporation Ltd. Videocon Narmada Glass Ltd. Videocon Power Ltd. Videocon VCL Ltd. Videocon Petroleum Ltd Emart India Ltd.

Emart India ltd


COMPANY PROFILE

Emart India Ltd.:

An emerging Leader in Consumer Durable Retail Sales. Next is an emerging leader

in the Multi-brand Multi-product retail sales network of consumer Durables. It aims

at captivating Rs.50, 000 Crores retail industry through our 1500+ Exclusive retail

outlets across the country with the estimated annual turnover of Rs.3000 Crores in

next 3 years.

Emart India Mission:

“To build a multi-brand, multi-facet chain of consumer durable retail outlets and

emerge as a strong leader in the technology Retail Chain -Store system.”

Emart India Objectives:

Generate a turnover of 3000 Crores by opening 1500 exclusive retail outlets across

the country.

Total control and transparency on the retail sale/MRP. Ensure standardization and

uniformity in everything from designing and branding the outlet to the internal

functioning.

Strengthen the Brand and Corporate image at strategic locations by initiating

marketing activities through Outlets.

Corporate Positioning:


“Best Brands Best Bargains”

Corporate Promise:

" To provide, under one roof, value for money products with variety of National And

Multinational Brands and to offer overall superior service, within bounds of ethical

business practices, in every market segment we operate. "

Emart India Network:

Total 100 Next outlets will be opened at the strategic locations including Udaipur,

Pune, Hyderabad, Banglore and Delhi in the 1st week of December, 2005. In the

second phase of expansion, Next outlets will be opened at metros and mini metros

across the country.

Emart India Ahead:

We also plan to spread our roots into Cosmetics, Pharma, Apparels and life style

segment separately, to provide complete brand and shopping experience to the

consumer.

Emart India will enter into Joint Venture agreement with leading retail sales business

houses / overseas partners to strengthen technical, commercial and administrative

skills and thereby to provide the best shopping experience through its multi-brand,

multi-product outlets.


Product Profile

ACCESSORIESAIR CONDITIONER

CTVREFRIGERATOR

WASHING MACHINECAMERA

DVDVCD

MUSIC SYSTEMHOME THEATER

SPEAKERSAUDIO

MICROWAVESMALL APPLIANCES


http://www.emartindia.net/description.asp?comp=NOKIA

http://www.emartindia.net/description.asp?comp=PHILIPS

http://www.emartindia.net/description.asp?comp=NEXT

http://www.emartindia.net/description.asp?comp=ONIDA

http://www.emartindia.net/description.asp?comp=LG

Organization Structure

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

PromotionAdministration

Zonal Head

25

Sales & Marketing

Accounts PaymentCollection

National Head

Emart India Ltd

3 Party LogisticsAstha Solutions

Distribution Channel

Suppliers Emart India Ltd. Astha Solutions Next Customer

LG

Samsung

Videocon

Ken star

Electrolux

Thomson Hyundai

Kodak

IFB

Kelvinator

Philips

Toshiba

Nokia

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Supplier Companies

Franchisee

26

Next Outl

Next Outl

Next Outl

Next Outl

Next Outl

SWOT Analysis of Next Outlet at Udaipur

Strengths Weaknesses

o Most appropriate Location

o Large Space for merchandising

o Positive owners Image

o Good corporate contacts

o Not well trained Sales Staff

o Lack of professionalism

o No window shopping Efforts

o Low customer conversion Rate

o Tap the nearby rural market.

o Increase the No. of product

categories like Mobile Phones,

Cameras.

o Large competition with

conventional dealers.

o Existence of Organised

Consumer durable Retailers

Opportunities Threats


Retail Management


Concepts & Application

Retailing consists of the sale of goods/merchandise for personal or household

consumption either from a fixed location such as a department store or kiosk, or

away from a fixed location and related subordinated services. In commerce, a retailer

buys goods or products in large quantities from manufacturers or importers, either

directly or through a wholesaler, and then sells individual items or small quantities to

the general public or end user customers, usually in a shop, also called store.

Retailers are at the end of the supply chain. Marketers see retailing as part of their

overall distribution strategy.

Shops may be on residential streets, or in shopping streets with little or no houses, or

in a shopping center. Shopping streets may or may not be for pedestrians only.

Sometimes a shopping street has a partial or full roof to protect customers from

precipitation.

Shopping is buying things, sometimes as a recreational activity. Cheap versions of

the latter are window shopping (just looking, not buying) and browsing.


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

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

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

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

http://en.wikipedia.org/wiki/Precipitation_(meteorology)

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

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

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

http://en.wikipedia.org/wiki/Distribution_(business)

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

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

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

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

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

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

http://en.wikipedia.org/wiki/Product_(business)

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

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

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

http://en.wikipedia.org/wiki/Consumption_(economics)

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

Etymology

Retail comes from the French word retaillier which refers to "cutting off, clip and

divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning

of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to

"cut off, shred, paring".

Retail Mix

Location Layout

Customer service Merchandising

Advertising Pricing

Promotion


Retail Mix

Visual MerchandisingInteriors & Exteriors

Supply chain & Logistics


Information & Analysis


Parameters

Location Parking facility Cleanliness Punctuality of Staff Reporting Schedule Store Atmosphere Promotion Material Visual Merchandising Dress Code Behavior of salesman Outlet discipline Point of Purchase Visibility of Products Display of Broachers Understanding of Consumer Needs Window Shopping Efforts Company Branding Order Processing time Lightings Complaint Management System Arrangement of Furniture Display of Products After Sales Service Responsiveness Personal Attention Product knowledge Cross Selling Efforts Redistribution Facilities Aroma Music Space mix Circulation Area Customer Service Signage Customer Relationship Sitting Facility


Store Facade Danglers Posters Air Conditioner Shelf Takers Finance Facility

Comparative Analysis

In the NEXT outlet at Udaipur the different activities under specified parameters

were observed. The detailed description of all those parameters is as follows:

1. LOCATION:

The Next showroom in Udaipur is situated on high street location.

The traffic from both the sides is very high and the drawing power of the outlet is

also high so we can say that the location is very good. In the back lane most of the

big showrooms of the readymade garment, restaurants exist. The competitive

environment in that is is also good because the dealer for almost each and every

brand of consumer durables is there in that key trade area.

2. PARKING FACILITY:

The consumers coming to the outlet usually come on cars and bikes, so proper space

for the parking is required. But I have observed that there is no proper and sufficient

place for the parking outside the store. The outlet should initiate some activity to

make parking area free of inconveniences.


Many a times the delivery van stand outside the outlet which unable the customer to

park their vehicle properly.

3. STORE FAÇADE

It is the front part of the outlet from where the first impression about the outlet is

made by the customer. In retailing it plays very important role. The outlet needs to

make some adjustments to plan how to hang the signboards. When I was there I

observed that a big flex of the new scheme Buy N fly was hanged on the front wall

from upside down.

The stock of products was kept outside the store, which can’t be changed but the

visibility is not proper in that case. The cartons of the product displayed outside the

store is worn and torn, some chairs were also kept outside for no one so all these

small things effects on the front image of the outlet.

4. STORE ATMOSPHERE

The atmosphere at the outlet has its importance in retail business. It should be

positive for the customer as well as for the franchise owner. There should be a

peaceful, working atmosphere, which I have seen, in the next outlet at Udaipur. The

ambience of the outlet shows the image of the company. Most of the customers who

buy any product from next showroom are satisfied with the store atmosphere. I think

no as such suggestion is required for this parameter.


5. STORE CLEANLINESS

The Image of the Next as a largest retail chain of electronics at national level is

clearly visible by the cleanliness, which it has in the outlet. As we know that in India

most of the conventional dealer is facing the problem of making the outlet clean

because of the stock quantity of each and every product. In Udaipur outlet I have

observed that there is a severe problem regarding the cleanliness. Most of the time

there is problem of cleaning the product, which are displayed for the sale. They

usually clean the products in every 7 days, which am I think quite a big period. I have

personally seen the dust over the CTV displayed in the showrooms, which gives the

negative image of the outlet as well as of the company.

6. VISUAL MERCHANDISING

The consumer durable industry works on the concept of selling the product, which

are well displayed in the showrooms. Visual merchandising plays very important role

in that. In the outlet I noticed that there is no as such activity conducted by b the

franchise owner to promote the brands through visual merchandising. Although the

arrangement of the CTV, Ref, WM, Ac and other products by the company is very

good and well appreciated by the customer. There is a separate section for the Plasma

TV. The lighting above the products also helps to make the visibility clearer. The

glass in front of the outlet is cleaned regularly which also help the customer to see

inside the outlet.

7. PROMOTION MATERIAL

The different promotional material like flex, booklets, price bands etc, was displayed

inside and outside the store in order to promote the brand value. The stock of gifts,

freebies, and all other material, which is displayed by the branch to the outlet, is kept


in the small store at ground floor. They were provided to the customer as and when

require to the customers and the sales staff.

8. POINT OF PURCHASE

Point of purchase is a part of branding where different small items which are kept at

the place of counters or the place, which is most suitable for the sale of that product.

This parameter is critically examined and the observation is positive one for this. The

Danglers, which are very few for some brands, are kept and arranged properly at

right places. The point of purchase also includes the price tags, which are attractive

and also uniform where the next is printed on top and the model no. And its price is

printed below.

9. VISIBILITY OF PRODUCTS

The products, which are shown to the customer, should be visible from most of the

angles so the customer can touch it properly. The CTV, which are kept on the first

row, has very good visibility due to the height factor. But the products, which are

displayed on the last row, were quite difficult to see. On the ground floor of the outlet

where ref are displayed for each brand of most of the models a problem regarding the

visibility is faced where some ref are kept at last corner. Customer is generally

reluctant to go at last and see the product. On the first floor where WM, Ac, and

other small appliances were kept are not visible from outside and the customer needs

to go upstairs to see them.

10. AVAILIBILITY OF PRODUCTS


The products and the brands, which are sold from next outlet, was most of the time

not available for the customer. Many times’ customer comes to the outlet with all the

information and the model no. But due to the various reasons they were not made

available for the customers. Sometime there is problem regarding the color,

packaging etc that disable the outlet to sell. The credibility of the outlet is on the

stake when the product is not available for the customer. Sometimes the problems

relating to transport delivery also delays the availability.

11. DISPLAY OF BROCHUERS

Customer of Consumer Durables generally first look at the product itself, but if it is

not ready in display then they will ask for brochures and pamphlets for the same. In

the outlet when the customer enters they will found a small section on the right hand

side where the brochures of all the products and all brands kept one by one. But the

point that is noted by me that most of the time they were not kept properly. I have

also seen the dust over them. I would suggest that whenever any customer enters in

the outlet all the brochures should be ready and they should be made available at the

product display only. They can also be kept inside the small plastic racks so that

customer can see himself or herself pick them up and see the necessary.

12. WINDOW SHOPPING EFFORTS

As we know that to create a very professional and trendy look of the outlet the

franchise owner needs to execute some sort of functions to promote the window-

shopping. Although it is not sure that customer will buy the product by only seeing it

from outside but there is big chance that he will look at it and try to come inside and


inquire about the same. It could increase the footfalls of the customers in the outlet.

As it is noticed in jaipur outlet that there were some T-shirts hanged on the glass of

front door which attracts the customer, but the similar type of activity is not seen at

Udaipur outlet.

13. COMPANY BRANDING

In Next we have around 15 brands of more than 10 product categories so it is quite

difficult to maintain the branding efforts regularly. Inspite of that the outlet and

company is doing a very decent job to execute the branding function. The different

models of different brands are displayed on the shelves both on the ground as well as

on the top floor. The schemes, which are directly coming from the company for

example onida exchange, offer is displayed on the onida models in the outlet, which

could differentiate the brand from the one. Mostly the posters of videocon are

stacked on the walls of the outlet, which gives the customer a direction to think that

this is a videocon owned outlets. The materials which is dispatched to the franchisee

is displayed but sometimes they were lazy in their approach for example in the case

of buy n fly scheme they stacked the flex after 5-6 days from the date of sending the

material. So this should not be done.

14. ORDER PROCESSING TIME

The time taken by the outlet to execute an order from the customer is normally not

high but in some cases when there is some problem related to the staff it takes around

45 minutes. Mostly the customer himself takes time to select the model, then he will

negotiate on the counter for the schemes and prices and other aspects, then regarding

the payment so it all consume lot of time. On part of franchise they will take their

time to see the current prices and then they will execute the order, billing and

collecting cash, then the delivery will take around 2-3 hours in all. So from the


company perspective they should delight the customer by not consuming lot of time

and they should control all the activities related to that.

15. STORE AMENITIES

Store amenities will include the facilities provided by the customer inside the outlet

when the customer came. It will include the facility for roaming, water dispenser,

other refreshments for some close customers. So in the outlet I have seen that they

were quite a good in managing this parameter. The water is available for the

customer as and when required.

16. LIGHTINGS

This is one of the most important parameter that could help the franchisee to increase

its sale and at the same time outlet image. The lighting that is used in the outlet is

very compact and they are sufficient at the same time. I would suggest that they

should have some battery backup because without electricity they could not even

show their products to the customer and the environment becomes unhealthy due to

the heat. It could also be done that the models that are new could be shown by using

special lighting from behind so that they can be separately visible.

17. COMPLAINT MANAGEMENT SYSTEM


In consumer durables it is very necessary to provide after sales services. One of them

is to handle the complaints. Customer by nature will complaint to the outlet due to

the various reasons related to demonstration, functioning, after sales service,

replacement, delivery etc. But the owner should take it seriously and approach the

problems positively. They should promote the customers to complaint and at the

same time solve them fully. I noticed that there were many complaints that were

pending from long time, which results into negative dissonance. They should have

proper complaint form and policy to handle them as well.

18. FIXTURES & FURNITURES

The furniture, used throughout all the outlets of next in the country is same as

company is appreciating a very good concept of corporate identification program.

The fixed furniture in the outlet covers around 80% area. The movable furniture like

tables, chairs and other small items covers only 5-10% area. The furniture at the back

that is fixed is torn from the bottom and the waste material lies on the floor for long,

which should not be happened in the outlet. It all affects the company’s image in the

customer minds. The fixtures on which the products are displayed are a glass that is

not cleaned from long time gives negative image of the brand. The chairs that are

provided to the customers to seat are not so comfortable to seat. The table at the back

where most of the accounts and finance work is done is not cleaned from long time. I

told many times to the office boy but they were not bothered to even listen to me and

other person of the outlet. So this is the key area where the company should think and

make some necessary changes.

19. DISPLAY OF PRODUCTS

In the outlet there are in all two floors including ground floor. On the top floor the

products like microwaves, washing machines, ac, and other small appliances are


displayed. I noticed that sometimes the product, which is not ready for the sale due to

various reasons, is also displayed with other saleable products, which creates

negative impression. On the ground floor, when the customer enters on the right hand

side all CTV of all brands in a very systematic manner is displayed to the end. Just in

front of those the refrigerators of both the categories are displayed.

20. PRODUCT RANGE

Next is a multi brand multi product outlet so obviously there is lot of SKU’s in each

category, which needs to be displayed in the outlet. The model that is displayed in the

outlet will have more chances to be sold. In the outlet the customer will get a very

good range of products. They can have the benefit of comparing all the models of

each product category on the background of price, functions, utility etc. In CTV there

is a separate section for Elite class of customers so that they can directly go there and

see the product. On the top floor there is small section for music system and home

theaters where a Sofa is kept where customer can come and enjoy the experience of

music.

21. AFTER SALES SERVICES

One of the most important functions of the retailer is to provide the after sales

services to the end users. It includes demonstration of the product, as they are

technical in nature, repairs, replacement, and delivery on the site. These all helps the

owner to maintain good relations with the customers for future sale. The Udaipur

Next outlet is somehow able to maintain their standards of providing the after sales

services to the customers, although due to the uncontrollable reasons there are some

problems arise which could be ignored. They should also maintain good relation and

control over the service person of all the company.


22. REDISTRIBUTION FACILITY

Redistribution is nothing but distributing the products from the franchisee to the end

users. The outlet has facilities to deliver the product to the customer place as and

when required from their own means. Sometimes the customer comes with their own

vehicle, in which they can take their product. Most of the deliveries are made on time

but sometimes when the transporter doesn’t come than it causes some problem. The

outlet owner should maintain good relations with the local transporters so that they

provide their best of services.

]

23. STORE AROMA

The aroma in the outlet is very pleasant. There is no as such activity is seen which is

creating any kind of problem for the customers related to aroma. There is an

electronic product smell lies in the outlet which makes the environment user friendly

for the customers. They feel comfortable in that atmosphere. Sometimes due to the

electricity problems in the morning time there is some problem of heat.

24. MUSIC

Music is also one the key element to make the ambience pleasant for shopping. As

we know that Next is a retail chain that is professionally managed, the outlets also

take care of these small things. There is a light music runs in slow volume on the top

floor where the music section is kept. Sometimes due to the demonstration made to


the customers to check the sound output the volume is increased but it is quite

comfortable to shop in such environment.

25. SPACE MIX

In the outlet, which is double storied, the total occupied area is around 1000 square

feet. The total area is divided in three broad categories, which are display area, free

area, and BackOffice function area. The space in the display area is divided

according to the products. The CTV are highest selling products so there is more

space given to display most of the CTV of all categories on the first floor itself. Then

for Refrigerator, AC, WM, Microwave, DVD, etc the space is provided which is

sufficient for their product category. The free area is also sufficient for the customer

to walk and roam and see the displayed product. The space in the gallery is sufficient

that two people can easily cross each other at one time. The space for each of the

sales person is also sufficient and divided according to the floors and products. In

retailing it is very important to make a suitable space mix so that the products could

be kept at the right place wherever they will feel comfortable to buy. I think

everything is decided centrally from the Jaipur Branch so there is no as such scope to

change in this area.

26. CIRCULATION AREA

The total circulation area for the free movement and the product arrangements is

quite sufficient. It is generally around 20-30% of total area. Sometimes there are

some problems for the customers to go at the end of the outlet due to the products

that are kept on the free circulation area. Sometimes the new ordered products due to

the lack of space are kept inside the outlet that creates inconvenience to the

customers. So the total circulation area should be sufficient and free from any sort of


hassles for the customers. The outlet owner should watch that there is no packed

product is kept in the way for the customers.

27. CUSTOMER SERVICE

Customer service is one of the important elements in retailing because it is the

retailer who interacts with the customers directly. The behavior of the sales staff, his

dressing sense, the way he talks to the customers, his way of convincing the customer

and all other activities has a bearing on the customer satisfaction. In the outlet I have

seen that the customers are treated in a very good manner. They were handled

properly, there are all the facilities provided to them, which are required to be there

in the outlet.

28. SIGNAGE

The signage includes the direction for the customers for the product availability, way

for the facilities, push/pull direction on the front door, prices of the product, model

no. Section wise display, scheme name etc. In the outlet I observed that the proper

signs for each and everything is provided so that customer should not feel that where

is the product. The prices of all the models with NLC Next price and MRP are

displayed at the display of product. But still there should be proper uniform signs for

the way for upstairs is required so that customer can directly go to top floor to see the

products displayed over there.


29. CUSTOMER RELATIONSHIP

The Franchise owner and all the sales staff were very good at making relations with

the customers coming to their outlet. They were given proper recognition. The

schemes, which are going at that time, were provided to them over and above the

product; so that customer feels delighted and a ladder for the relations is build on the

spot. Many a times customers demands to pay some less or want some free gifts on

some product, for that the salesperson provide them some gifts under the company’s

policy. So all these activities suggest that the customer relationship is made very

gently.

30. SITTING FACILITY

There are in all 4 chairs and 3-4 small chair to seat for the customers. These are

sufficient for the customers coming to the Next outlet. They are although not very

much comfortable, but usually customer sits for 15-20 minutes for that much time it

will do. Sometime the chairs are not arranged properly. For this the office boys


should see that when the customer comes they arrange all the chairs and make them

available as and when required.

31. CUSTOMER CONVENIENCE

Customer is the king of current markets. It is no longer a sellers market. The outlet

needs to provide all the facilities to the customer for their convenience. The outlet is

situated on a very prime location where customer can come easily. After coming to

the outlet the customer should feel good due to the atmosphere out in the outlet. He

should get proper space to walk, roam in the outlet. He should get the brochures as

and when required. There is also sitting facility for him. So the outlet takes care of

the customer convenience.

32. DANGLERS

Danglers are also very important materials for the branding of the product. In the

outlet I have not seen any such Danglers, which is used for any brand. They were

kept inside the small store on the ground floor. They are not displayed for the

specific brand. There is no as such space available to hang them. The company

should try to get the information about this display so that they can control over the

franchise owners.

33. POSTERS

The posters are the main part of communication for the customer about the brand and

the schemes that currently exist in the market. In the outlet on the walls there are


some posters of videocon displaying Shahrukh Khan with the range of products. The

poster is very attractive and they are making the atmosphere very pleasant. But I have

noticed that there is some posters that are stacked on the POP are torn and due to that

the POP is breaking. There are some spots of tapes on the walls and roof, which

doesn’t look good.

34. AIR CONDITIONER

There are in all three Split Ac stacked on the walls of ground floor that makes the

environment cool. But I have seen that the AC at the back does not work. One day

the service person from the company comes but he did not able to make it in working

condition. So the owner should take care of these small things because due to this the

environment becomes quite hot and the customer will not bothered to stand in these

conditions.

35. SHELF TAKERS

Shelf takers are generally kept inside the outlet where the company that likes to take

some space in the outlet displays their product separately and their salesperson stands

there and tell about the products to the customer. These types of shelf takers are not

there in the Udaipur Next outlet. The company could try and give some space to any

small appliance company that can demonstrate their products to the customers.


36. FINANCE FACILITY

As the consumer durable products are high involvement products and also high

priced so most of the customer required taking a small loan. For this the outlet has

offered a facility of finance from local level finance companies. The companies that

are currently giving finance are GE money, Citi Financial, Bajaj Allianz. The

company executive is telling the EMI, interest rates and the down payment amount

directly to the customer. In the outlet there are always 2-3 people from the finance

company sits and they execute their functions related to the files and payments.

There are some problems arise due to the finance provided to the customer. One is

the payment made by the finance company is not sound due to which the franchisee

is facing many problems regarding their deposits in the company, their orders etc.

Sometime there is a huge gathering of people from finance company that disturbs the

customer to see the product. So for this the owner should control their activities.

37. PUNCTUALITY OF STAFF

In the outlet I have seen that most of the time the sales staff is not punctual, which

shows that they are not so professional. Sales staff comes at any time and leaves at

any time. There is no fixed hour duty for them. I have seen that due to this the outlet

owner himself is facing some problem. Many customers go back without even

looking at the product when the sales person is not there. In the outlet the sections are

divide for both the sales person, but when there is always problem that the products

on the top floor were not shown effectively to the customer as one of the sales person

is missing from his place. So the company should take a serious action for this if they

did not want to loose the sale on part of the salesperson.


38. REPORTING SCHEDULE

There are two office boys and two counter sales persons in the outlet. The timings for

the outlet are 10 a.m. to 9 p.m. But many a times the salesperson comes after 11 or

11.30. Due to that the customer who comes early needs to go back. There should be a

proper policy for the reporting and leaving time. So that the sales person will come

on time. If it goes continuously then strict action should be taken over them.

Sometimes one of the salesperson did not tell the outlet owner where he is going and

remains absent for the rest of the day.

39. DRESS CODE

The dress code of the sales staff is orange color T-shirt and they can wear any jeans

below that. But in the next outlet of Udaipur I have seen that both the salesperson

have not bothered to wear the dress code on a single day. I ask them for their dress

code but they said that they have not received the T-shirts yet. They were also

complaining that the company is giving only one T-shirt that could not be worn

everyday. The dressing sense of the salesperson doesn’t look professional. One of the

salesperson always kept his shirt outside which effects the company’s image. So for

this the outlet owner should take necessary actions.


40.BEHAVIOUR OF SALES STAFF

Sales persons are the representatives of the company for the customers. They play a

crucial role in creating positive brand image. In the outlet I observed that the

behavior of the staff with the customer and the other person, their colleagues etc. is

very proper but sometimes due to the pressure of the job and sale they did not behave

properly with the customer. The body language and facial expression of the staff is

minutely observed and

I suggest that they should work on it so that they can make customer happy. Buying a

product is in itself is a big experience of the customers, so they should be treated

well. Sometimes the salesperson did not shave for long time and did not dressed

properly which affects the overall behavior.

41. OUTLET DISCIPLINE

Emart India ltd is in the professional business of consumer durable chain where the

factor, which is very much important, and also one of the distinctive elements is

discipline. The outlet is well organized everything is kept at right places but due to

the absence of workers sometime the broachers were not kept properly at their

places.

The finance facility provided by the outlet to the customer sometimes creates some

inconveniences to the customer such as the files were thrown on the table, the cash

counter is also sometime not arranged the files were lies on the table for long

Sometimes people from the finance company come and sit in the outlet for long and

they start chatting, which disturbs the outlet discipline. They saw TV for long in high

volumes. So for this the outlet owner should control these activities, so that proper

discipline can be maintained.


42. UNDERSTANDING OF CONSUMER NEEDS

Satisfying customer needs is one of the crucial tasks for each and every organization.

No organization is fully successful in doing so, but the first step for the same is to

understand the customer needs. Many a time I have observed that the customers were

not shown what they exactly want. The salesperson should ask to the customer that

what is the purpose of buying the product in what range of what size etc so that

accordingly he can give him 3-4 choices out of the he could help the customer to buy

the best product at best price which will satisfy his/her needs.

So a key area where the salesperson needs to work on is to understand the customer

needs and satisfy them as well. This could be inculcated as the salesperson

experiences in the outlet.

43. CUSTOMER RESONSIVENESS

Customer coming to the next outlet has some question in mind related to brands,

product availability, model availability, credibility and many more. So the

salesperson should be well versed and prepared to answer to lot of customer queries.

In the outlet I have seen it lot of time when the customer were not responded quickly.

If any query raised by the customer then the solution for that will take lot of time

which changes the customer decision. The salesperson should feel it and help the

customer as quickly as possible after all these are the part of customer satisfaction.

From the company point of view they should think about the communication from

different mediums so that the confusion on the part of customer could be removed

and a better and positive image would be created.


Sometimes the broacher for a particular model of a product is not available on the

shelf so to search the same consumes customer’s time.

44. CUSTOMER ATTENTION

In retailing specially dealing with the end users one of the crucial element is to give

customer proper attention. If there are more than 5 customers in the outlet at one time

and you are not able to give them attention then the customer will not wait for you.

So for such inconvenience of customer the franchise owner should control the

situation in right manner and he should analyze the minds of customers. The

salesperson out there in the outlet should support the customer decisions and show

them the right path to take the right decision. It could save their time, which they can

spend on other customers.

In the outlet once I observed that a customer comes in the morning and due to the

absence of staff the owner alone was handling two customers at a time. This result in

negative impression among one of the customer he started shouting at them that why

are you wasting my time. In such situation proper attention to each of the customer is

required because customer spent lot of time in the outlet as well as in the house to

take the decision of buying a consumer durable product.

45. PRODUCT KNOWLEDGE

Product knowledge is a very key element when a salesperson deals with the

consumer, because he/she is depending on the knowledge, which will be given to

them by the counter person. Regarding product knowledge I am quite satisfied with

both the salesperson and the franchise owners. They know about the product very

well but sometime a problem regarding the USP of the model comes into the picture

where customer becomes irrational and he foregoes the purchase or postpones it.


From the company point of view they can have some special demonstration programs

for the salesperson as well as for franchise owners because I have noticed that the

salesperson will not take any chances to loose the sale and will suggest the customer

to buy the product about which he knows well.

The sales person at their own level should prepare a comparison chart for all the

product category and brands with their prices and USP so that they can also

understand to whom they can sell the right product at right time.

46. CROSS SELLING EFFORTS

In the outlet I have observed that the counter sales person was not well versed in the

business of making more sale. Sometime the customer comes with a mind of buying

more than one product at a time, so the salesperson needs to understand the

psychology of customer and should show him/her the entire range of products so that

cross sale in other product category can also be improved. For instance if any

customer come to buy a microwave than the salesman should understand that the

customer who will be making the decision is women so he can show other small

appliances like mixer grinder, toaster etc.

To increase the overall sales volume for the outlet company should take initiative and

include some activities in their training module to train sales people to understand the

value of cross selling.

One more suggestion can be implemented that the counter salespeople should be

given some incentives on the cross selling efforts and that should be a key part of

overall remuneration.



Findings

Observations

This study of Retail Audit at Next outlet at Udaipur brings out some of the very

key observations. These are as follows:

The location of the Next outlet at Udaipur is most appropriate in the city. The

outlet is situated just in front of town hall, which is one of the most renowned

places in Udaipur city. The best part is that the outlet is in the heart of the city

where the total trade area is 2-3 Km. Most of the consumer Durable Dealers

were existed in the radius of .5 Km.


Suggestions

1. Since the distribution channel members play a vital role in the success of the brand, it is necessary to create interest among them by giving them more incentives to push the brand.

There are many middlemen in the distribution channel and they are as follows:

Manufacturer

Distributor

C and F agent

Wholesaler

Retailer

Consumer

These all play very vital role and take lots of effort to make the product available to the consumers everywhere and make the sales of the company , so company should take grate care of these people and see to it they get the best benefit for their work they in making the company more profitable.

2. The sales staff of the company should go to the retail shops regularly. By this the retailer also feels that the company also thinks about them and as in touch with them regularly. The retailer are the one who makes the sale of the company so the company should always know about the problems of the retailers if


any and see to it that those problems get solved immediately as any late action may or may not affect the sales of the company.

3. In its endeavor to develop brand loyalty towards the company, Videocon can come out with the measures that give the customers the reason to buy the product of the company, develop channel members interest. In this direction it is essential to stay close to the customer.

4. Company should introduce the Gifts / Schemes for the customer because of whom the customer is happy and satisfied and also feel that they are getting the bit return of their money paid for the product purchased. The company should also distribute some complimentary for the customer who purchase their product. This type of schemes definitely attracts the customer towards the brand and the company will have ore sales than they had before they introduced the particular scheme in the market.

5. Company should also have the process of the feedback from the wine shop owners about the customers attitude towards their product so that company gets some idea about the image of their product or even they get an idea that what is to be done to attract the customer towards their product so that the mission of the company of being number 1 position in industry will soon fulfilled.


Appendix

Appendix

“CROSS PROMOTION SCHEME”

(A limited period Sales Promotion Effort)


Executive Summary:

Introduction:

Emart India ltd, Jaipur has initiated a very interesting and very useful short-term sales promotional scheme in the respective territory. This scheme is known as cross-promotional activity because in this scheme different other corporate partners participated with their offerings to the customers of Next. It was quite a good experience while dealing with the retail outlet owners in Udaipur. They were negotiated fully and the business propositions were made. The detailed description and actual findings of the study is as follows:

Objective:

“To develop and Implement a Cross-Promotional Scheme in the Udaipur city”.

Methodology:

In this project, I have first found out the list of big showrooms and organized retail outlets in Udaipur city. They were further divided into homogeneous categories like lifestyles, restaurants, beauty saloons, car décor, aquarium etc.

I approached to around 45 outlets and out of that, I have positive response from 30 outlets. The concerned person at the outlet, exposed to the booklet of discount coupons prepared for Jaipur city, they were negotiated to give their best deals and on the blank sheet, the description and their signature are taken down. For the monogram for their outlet I have also colleted their visiting cards and pamphlets.

I used to visit the respective outlet in day timings. The entire exercise took around one week. The printing of the booklet will take next 15 days and then this scheme could be launched in Udaipur city, which I am sure will help us and our business partners to increase their sales and awareness about their offerings.

List of Scheme Partners


Sr. No. Name of Outlet Category1. Bombay Dyeing Lifestyle2. Crocodile Lifestyle3. Readymade Palace Lifestyle4. Manasi Plaza Lifestyle5. Geetanjali Grasim Lifestyle6. 7 Eleven Lifestyle7. Image Lifestyle8. Just Me Lifestyle9. Tulsi Boutique Boutique10. Titan Lifestyle11. Metro Boots Lifestyle12. Monark Beauty Saloon Beauty Saloon13. Prabhat Beauty Saloon Beauty Saloon14. Archies Gallery Toys & Gift Articles15. Toy Zone Toys & Gift Articles16. Hansa Udyog Furniture17. Dwarkas Furniture18. Shilpi Car Décor Car Décor19. Music World Music20. Fish Aquarium Gallery Aquarium21. Kamal Studio Studio22. Aravali Hospital Diagnostic Center23. Top n Town Ice Cream Parlor24. The Ice & Bake Ice Cream Parlor25. Hotel Abhinandan Restaurant26. Hotel Vishnupriya Restaurant27. Saffire Restaurant28. Honey Dew Restaurant29. Sagar Restaurant Restaurant30. Ambrosia Restaurant

Development of Scheme & its Implementation:


In the initial stage of the project I have first visited the market in the Udaipur and found out the Big and Famous Retail Outlets in Udaipur. To develop the scheme in the city was quite a big task for me because it was quite a difficult to explain the actual plan of this scheme. The outlet owner was exposed by the covering letter (attached in annexure) with the booklet of jaipur city.

The outlets in their respective category were arranged and were approached in a systematic manner where list of area wise outlets was prepared for the conveience. The target was to meet the shop owner and give him the brief about the company and the cross promotion activity.

As soon as the retail owner understand the scheme he/she agrees to offer their best deal for a limited period and became a partner of E mart India ltd. The required material for the same is the letter of retail owner with the discount description and other conditions, with their visiting card for the monogram, which will be printed on the discount coupon booklet.

The offers from different outlets I have visited are described as follows:

A. Lifestyle

In this category we have 10 outlets, which were famous in Udaipur. Initially 15+ outlets were visited but positive deals were made only with 10 such outlets. Many of them were agreed at one shot because they also want to induce their sales through the publicity, which they will be getting from this scheme.

In Lifestyle Big brands like Bombay dyeing, Crocodile, Lee, Nike, Titan and other were included. Bombay dyeing has offered a flat discount of10%on all home collection, Crocodile, a leading chain of casual wear offered 10% discount except on innerwears.

Readymade Palace offered a discount of 7% on the minimum purchase of 700Rs.on all the brands of casual as well as formal wear. Manasi Plaza was agreed to give a discount of 10% on sarees and salwar suit and also 20% discount on the labour charges incurred for the jewellery.

In this category only Geetanjali Grasim offered a good deal where any customer who buys 2 suits/sherwani from the outlet will get a honeymoon package free for 2 days and three nights at Mt. Abu. 7 Eleven offered a discount of 10% on the purchase of Rs. 500 and Image agreed to give the discount of 10% on every purchase.


Just Me is ready to give a fair discount of 10% on all nightwears except on innerwear’s and also 15% discount on the purchase of above 2000Rs.The deal from Titan is 10%off on repairs of watches, 5% less on watches worth Rs. 1500 and above that the customer will get a 7% discount. Metro boots offered to give 10% off on every purchase.

A. Boutique

In boutiques I have gone to 3 outlets but I was successful in dealing with only one that is Tulsi Boutique, the owner of the boutique was agreed to give a discount of 10%, 15% and 10% discount on Suits, Lehenga Chuni and Dress Material respectively.

B. Beauty Saloon

In this category we have 2 well-known beauty saloons in Udaipur. Monark Beauty Saloon offered a discount of 10% on hair coloring, hair treatment & Skin treatment. On the other hand Prabhat Beauty Saloon agreed to give 10% flat discount on the bill of above Rs. 500

D. Toys & Gift articles

Archies Gallery and Toy Zone were the only outlet negotiated to participate in the cross promotional scheme. The Discount given by Archies Gallery is 15% flat on all purchases, and Toy Zone is ready to give 5 to 30 %off on the purchase of Rs. 300.

C. Furniture

Two premier Furniture manufacture in Udaipur city were approached and the deals with them were finalized for the scheme. Hansa Udyog offers a discount on various range of furniture. It offered 10% on T.V trollies, 10% on computer tables, 15% on T.V. wall units.


The other furniture manufacturer Dwarkas was ready to give a discount of 10% on all type of furniture.

F. Car Decor

The only outlet in this category is Shilpi Car Décor that offered a discount of 12.5% off on MRP on center locking, power window relay & Reverse Sensor, 10 % off on MRP on power window, 5 % off on MRP on Sony & Pioneer car stereo.

G. Music

In this category Music World was approached and after a long discussion with the shop owner he was agree to give a discount of 10% on VCD, DVD, ACD, and also the customer will get 2 MP3 VCD free with the purchase of 10 MP3 VCD.

H. Aquarium

The Fish Aquarium Gallery offered a discount of 10% on dry items, and 15% discount of fish and fishmeals.

I. Ice Cream Parlor

Two Ice cream parlors were approached and both of them were ready to deal with us. Top N Town a famous leading chain of ice cream parlor offered a discount of 10% on bill above 200 Rs.

The Ice and Bake was the another one that offered a discount of 5% on dairy Fun ice-cream below 200 Rs bill and above that customer will get a discount of 10%

J. Studio

Kamal studio a famous studio in the city offered a discount of 15% on 10 modeling photos and 10% off on 5 modeling photos.


K. Diagnostic Center

Aravali hospital has also shown its interest in participating in this scheme where it offered a flat 10% discount on all investigations

L. Restaurants

Restaurants are the biggest source of income for the residents of Udaipur as it is a tourist place where lot of people from abroad and home states come.In this category there were many hotels and restaurants were visited but out of them only 6 deals were finalized.Firstly, in Hotels we have Hotel Vishnupriya that offered a discount of 15% on food as well as on room stay. Hotel Abhinandan is ready to give a discount of 15% on food bill.

In Restaurants, Saffire a big chain of restaurants in Rajasthan agreed to give a discount of 15 % off on menu prices, 20% discount for group of 25 persons & above, Fixed Meal Kitty Party Birthday Party Packages available. Honey Dew offered a discount of 10% on the bill of Rs. 100and above and a special discount of 15% on bill of above 500 Rs. Sagar Restaurant, negotiated on the deal of giving 10% discount on food between 2pm to 5 pm in the afternoon. Ambrosia agrees to give a deal of 10% off on bill of 500 Rs, and 15% off on bill above 500 Rs, also free cold drink with Pizza and 20% off on all parties.

Conclusion:

A short period Sales promotion scheme for the Udaipur territory is developed and implemented with the help of the discount coupon booklet, which will be given to each and every customer of Next coming to Udaipur outlet. They can later on within


the specified time period use those coupons. They just need to visit the respective outlet and show them the coupon where the counter person will see it and give discount that will be printed on the other side of coupon.

This scheme will be successful for the brand awareness and also to maintain the relationship with the customers of Next where nothing extra will be charged to them for the booklet.

Although there were some limitations on the part of implementing the scheme such as when to launch it and for what period. Some problems while the development of the scheme was faced but they were handled properly.

Overall it was a great experience for me to develop and implement this cross-promotional activity.

Annexure


Annexure

Covering Letter for Cross Promotion Scheme

The Manager Date: Subject: Proposal for cross-promotional activities

Dear SirThis is regarding the cross-promotional activity that E-Mart India Ltd. is planning to initiate, in Rajasthan, in collaboration with your organization.

E-Mart India Ltd. is a multi-national company having 150 outlets across India in major cities. In a short span of time we have become the largest national electronic


retail chain in India. Within next two year we are planning to open 1500+ retail outlets in order to achieve an annual turnover of Rs. 3000 crores..We are also planning to spread our roots into various segments, to provide complete brand and shopping experience to the consumer. E-Mart India will enter into joint venture agreement with leading retail sales business houses/ overseas partners to strengthen technical, commercial and administrative skills and thereby to provide the best shopping experience through its multi brand multi product outlets.

In Rajasthan we have 12 outlets across the state. It is planning to extend the number to around 25 outlets all over Rajasthan covering all the major cities, within next 6 months. Monthly sales of all the operative showrooms at Rajasthan are more than 2500 products.

In order to provide our valuable customer with value added services we would like to provide them privilege to visit your outlets and with purchase up a certain limit can avail some kind of discount or free gift.

In this cross promotion activity, with every purchase a customer will get the discount coupon. This will in turn not only increases our customer loyalty but will also increase your sales. Customer will be keener to visit your showroom if they receive some kind of discount or free gift. This can be an opportunity for you to increase your customer base and they can be aware of the product that your organization offers.

Conditions can be further negotiated for availing discount so that even your organization can be most benefited.

We are looking forward for your cooperation in this regard.

Thanking youMr. Sandeep SharmaAsst. Manager (Rajasthan)


References


References

Books

o Market Research, G. C. Beri

o Retail Marketing , Gilbert

o Marketing Management, Philip Kotler

Websites & Search Engines

o Videoconindustries.com

o Emartindia.net

o Google.co.in


Documents

Retail Aspects of Videocon