Retail ManagementCompiled by:

Sumit Kumar Chakraborty

PGDM “A”

Roll-054

Introduction

• Current Size: $. 716 billion

• Projected Size (2018): $.1245 billion (Dazeinfo.com, January 7,2015)

• Market Share: 92% (Unorganized Retail) (Business Insider India 16th Feb 2015)

8% (Organized Retail)- [Apparel-33%,Food-11%,Mobile &

Electronics-19%, Food Service-7%,Jewellery-6,Footware-4%]

• Multibrands- 53 operation cities,FDI-51% Share,$100+

Investment

• Single Brands: 100% FDI share allowed. (Zee News, 27 Feb 2015.)

• 1/3rd of goods sourced from India.

Scope and Studies• Plano gram, Consumer Buying behavior & needs,

Competition between organized and un-organized

sector, Consumer complaint service.

Studies in Navi Mumbai area only.

No budget allocation, limited time period.

Buying pattern in different areas differ.

Economic conditions of different areas differ.

Focus on only urban area, rural area not considered.

Plano gram of retail stores differ according to area.

Customer buying behavior is dynamic.

Non co-operation of convenience store owners.

Literature Review

• February 11, 2014; The Hindu Article: Indian Retail Market Study 2016-17:

“Favourable demographics, increasing urbanisation, nuclearisation of families,

rising affluence amid consumers, growing preference for branded products.

• December, 2014; Indian Brand Equity foundation article says “Some of the factors

which are expected to affect this trend are higher incomes, young shoppers,

urbanisation and the increased use of credit cards. Furthermore, e-commerce and

online delivery modes are expected to be some of the most popular trends in the

retail industry in India in the near future.

• February 10, 2015: Live Mint article states India’s retail market expected to

double in next 5 years, attitudinal shifts will be seen as 75% of the population will belong

to generation I, that is they were below 14 years of age when the economy started

opening and hence will have higher consumption levels, said the report.”

• February 28, 2015: India Today Article stated The survey highlighted that 58.3

per cent of the Indian population was below 30 years. Around 31 per cent of this

population living in urban areas with rising disposable income makes one of the key

positives for the future of the retail sector.

Activities

Visit local unorganized retailers and sabji mandis.

Visit to Reliance Fresh, talking to manager & customers.

Visit Dmart and Studying Planogram and talking to customers.

Visit Malls and Study buying behavior and crowd accumulation

patterns.

Visiting Stores finding out what, why and when people buy.

Visit convenience stores in Navi Mumbai and learn their service.

Talking to retail store managers and detecting problem areas .

Analysis of collected data, formulating solutions.

Learning

Consumer focus on “Price + Brand + Quality”

Organized sector provides convenience.

Consumers rated food products’ quality average 2.5/5.

Consumer rate vegetable and perishable products 1.5/5 (evenings)

Higher rating to convenience stores and sabji mandis for vegetables.

Working class people mainly shop post 7:00PM, when the quality is bad in

organised retail stores where as better than that in mandis and kiranas.

Reliance Fresh has a demand of cosmetics unutilized.

Dmart is more cost effective and has effectively equal quality.

Reliance stores have better ambience than Dmart.

Both indegeneous brands are prefered, “Reliance Select” & “Dmart Primea

Learning

Dmart and Reliance Crowded at point of purchase.

Express counters not available for lesser amounts.

Lack of flashy price tags for special offers in Reliance stores.

Average 15 minutes of waiting at point of purchase.

7/10 times average customers visit local Kirana or Mandi.

Consumers typically follow steps like problem recognisition,

Info search, look for alternatives, select best, make purchase.

Consumers are reluctant to try new products unless they have

attractive offers.

Planogram Namkeen:

Reliance Fresh: Haldiram-Bikaner-Reliance Brand-Peanuts- Chiwda- Chakli.

The products are arranged according to the demand of the product and visibility in the

market.

DMart- Maharashtian Namkeen-Haldirams-Bikaner-Dmart-Local Brands

Big Bazaar- Brands are kept in accordance to the discount rates.

Biscuits:

Parle G-Britannia-Sunfeast-Parle Cream-Hide&Seek-Oreo-Bourbon-Dark Fantasy-

KrackJack.

Products are kept according to their categories.

Cold Drinks:

Reliance: Thums up-CocaCola-Pepsi-7UP-Fanta

Big Bazaar : According to discount- Coca Cola- Pepsi- Sprite- Thumps Up- 7up- Fanta

Chocolate:

Reliance Fresh, DMart AND Big Bazaar- All are same according to the demand that is

5 Star- Dairy Milk Brands- Kitkat- Munch-Perk- Jems- Bounty-Galaxy

Planogram Soaps and Shampoo:

Bathing soaps-Bathing Gels-Shampoo-Conditioners-Cloth Washing Soaps-Detergent

Powders-Liquid Detergents.

Health Drinks:

Reliance, D Mart And Big Bazaar- According to demand- Bournvita- Horlicks- Boost-

Complan- Amul Pro

Tea:

Reliance, D Mart And Big Bazaar: All same according to the demand that is: Tata tea-

Red label- Reliance-Tata Tea Premium-Taj mahal

Flour:

Reliance- Low price: Reliance-Ashirwaad-Nature :

DMart- According to the demand: Ashirwaad-Nature Fresh- Pilsburry

Big Bazaar- According to demand- Ashirwaad-Nature Fresh- Pilsburry.

Interaction with Mentor Special attention needed for vegetables because the quality of the vegetables is not

up to the mark especially during evening when the working people come to the store.

Flashy price tags should be introduced to get the attention towards special offers and

discounts.

Old Price tags should be removed which creates confusion in the minds of the

customers.

Opening of a small counter for customers buying less than five products to reduce

waiting time for those who have to buy fewer things.

Keeping an eye on the local sabji mandi and Kirana store prices to be in the

competition.

Assure quality of the products which are bought in bulk, like potatoes.

Assure gentle handling of products prone to damage like vegetables.

Maintain a general quality level of products during day and evening to ensure uniform

sales during the whole day.

Train the staff to be more attentive and be ready to assist customers in need.

Demand book for customers to register their specific demand of a product.

Feedback from the customers to know where they need to improve at regular

intervals.