PROJECT REPORT

ON

RETAIL MARKETING IN INDIA

FOR

THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF DEGREE OF MASTERS OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT

Submitted to: Submitted by:

Ms. SunmeetKaur Sadak Ahmed
Assistant Professor 2012-PGMB-095
Bahra University
Management Dept.

BAHRA UNIVERSITY,WAKNAGHAT,
P.O. KIARIGHAT-173215,
DISTT.SOLAN (H.P.)
CERTIFICATE

I hereby certify that the work which is being presented in the M.B.A.( 4th semester) Project
Report entitled Retail Marketing In India, in partial fulfilment of the requirements for the
award of the M.B.A. In Marketing and submitted to the School of management of Bahra
University, Shimla Hills is an authentic record of my own work carried out during 4th semester
under the supervision of Ms. SunmeetKaur, Assistant Professor of Bahra University in
Management Dept.

Signature of Student
Sadak Ahmed

This is to certify that the above statement made by the student is correct to the best of my
knowledge.

Signature of Supervisor
Ms. SunmeetKaur
..
Designation:
Assistant Professor
Bahra University
Management Dept.
ACKNOWLEDGEMENT

I would like to express my special thanks to my supervisor Ms. SunmeetKaur who gave me the
golden opportunity to do this wonderful project on the topic Investing in mutual funds which
also helps me doing a lot of research and I came to know about so many things.

Signature of Student
Sadak Ahmed

TABLE OF CONTENT

1) INTRODUCTION

a) The Retail Marketing Revolution

b) Retail Marketing in India
c) Information Technology in Retail
d) Foreign Touch in Indian Retail

2) COMPANY PROFILE

3) LITERERATURE REVIEW
a) Introduction
b) Objectives of the study
c) Detailed Review of Literature

4) RESEARCH METHODOLOGY

a) Research objectives
b) Research design
c) Data sources
i) Primary data
ii) Secondary data
d) Limitations of the research

5) DATA ANALYSIS

6) CONCLUSION & FINDINGS

7) RECOMMENDATIONS

BIBLIOGRAPHY
Executive Summary

The Indian retail industry is now beginning to evolve in the line with the transformation that has
swept other large economies. It witnesses tremendous growth with the changing demographics
and an improvement in the quality of life of urban people. The growing affluence of Indias
consuming class, the emergence of the new breed of entrepreneurs and a flood of imported
products in the food and grocery space, has driven the current retail boom in the domestic
market.

The concept retail which includes the shopkeeper to customer interaction, has taken many forms
and dimensions, from the traditional retail outlet and street local market shops to upscale multi
brand outlets, especially stores or departmental stores. Though at this moment, it is still
premature to say that the Indian retail market will replicate the success stories of names such as
Wal-Mart stores, Sainsbury and Tesco but at least the winds are blowing in the direction of
growth.

Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Non-store Retailing.
Store Retailing as the departmental store, which is a store or multi brand outlet, offering an array
of products in various categories under one roof, trying to cater to not one or two but many
segments of the society and Nonstore Retailing as the direct selling, direct marketing, automatic
vending.

Therefore, this concept of retail marketing through departmental stores, which is coming up in a
big way in India was decided to be studied in detail, through an exploratory and conclusive
research.

The objective being to assess the various parameters that influences a buyer to visit or shop at
departmental store thereby contributing to its turnover (in terms of sales and profits) hence
leading to its overall success.

The extensive research brought me to conclude that departmental stores are soon emerging on
the top priority lists, amongst the shopping spree in Delhi, as they seem to derive immense
pleasure of convenience and exposure to variety under one roof, in their extremely busy lives,
when they dont have time for things.

Though some of the customers perceive departmental stores to be expensive and only high
income categorys cup of tea, the stores make constant efforts to induce them to at least visit the
store at once during the sale period, or discount offers.

Most of these stores believe in creating not just a marketing activity with its customers, but
rather favor relationship building with him so as to convert first time customers into a client.

Hence this document entails me through these aspects in great detail, helping me to understand
the concept of retail marketing through departmental stores in Delhi.
RETAILING THE SUNRISE INDUSTRY

Introduction To The Project Report

The word retail means to sell or be sold directly to individuals. Retail is Indias largest
industry, and arguably the one with the most impact on the population. It is the countrys largest
source of employment after agriculture, has the deepest penetration to rural India, and generates
more than 10percent of Indias GDP. However, retailing in India has so far, been mostly in the
hand of small disorganized entrepreneurs. It is also Indias least evolved industries. In fact, it is
not even considered a real industry. The industry suffers from lack of management talent, poor
access to capital, unfavorable regulation and denial of access to best practices. The Indian retail
industry is only now beginning to evolve in line with the transformation that has swept other
large economies. Fifty years of restricting the consumer goods industry, a national mindset
which favored denial over indulgence, and a fractured supply chain for agricultural products
have all contributed to prevent the development of modern tenants based on scale advancements
and consumer preferences.

India has some 12 million retail outlets, but many of these act merely as subsistence providers
for their owners and survive on a cost structure where labor and land is assumed to be free and
taxes nil. Compare this with the global retail industry, which is one of the worlds largest
organized employers, is at the cutting edge of technology, and which leverages scale and scope
to offer value-added services to its customers.

However, only recently has there been an awakening in this sector, with more organized retailers
starting to make an impact. The liberalization of the consumer goods industry, initiated in the
mid-80s and accelerated through the 90s has begun to impact the structure and conduct of the
retail industry. Backed by changing consumer trends and metrics, liberalization in mindsets
driven by media, new opportunities and increasing wealth, retailing in India, presents a vast
opportunity for a variety of businesses - real estate, store design & operations, visual
merchandising logistics and communications, B2C service providers, and FMCG companies who
can add to their offers by partnering this revolution.

The Indian Retailing Industry stands poised to take off into the 21st century. It is one of the
fastest growing sectors in the nation that caters to the world's second largest consumer market.
Retail boom is unabating. India has five million retailers with a business volume of $180 million
growing at 5 to 7 per cent a year. The middle class drives retailing anywhere in the world and
this segment should have reasonable income. The next driver is availability of variety of goods,
products and brands. The third one is sense of awareness.

In other developing economies, this transformation has already begun. In many of these
countries, organized retail already has a 40 percent share of the market, compared to Indias
current levels of 2 percent. As India goes through this transformation, new businesses with sales
of 1billion 2 billion US $ will be created in grocery and of 250million - 500million US $ in
apparel. Smaller but still interesting opportunities will be created in other sectors like books,
electronics, and music. This transformation will also impact the supply chain in agriculture, the
tax collections from trade and the way people shop.
In the last 10 years, all Southeast Asian countries like Indonesia, Malaysia, Taiwan and Korea
have gone through similar phases. China, with a per capita income of $650-700 per annum, is
going through the same phase what India is also facing now. Europe went through this phase of
retail revolution about 40-50 years ago. It is believed that when a countrys per capita income
reaches the level of $1,200 per annum, organized retailing begins to takeover. Though India has
a per capital income of $ 400, on the basis of purchasing power parity (PPP) it has already hit the
$1200 level. This does strengthen the belief that probably, the right time for organized retailing
to click in India has come.

This report aims at providing an insight into the emerging trends in the industry and the barriers
to change and a perspective on what this industry could become, using the global industry as the
backdrop.
OVERVIEW OF GLOBAL RETAIL INDUSTRY

Retail: World Largest Industry

Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of financial
industries $ 5.1 trillion. It is also home to a number of the worlds largest enterprises. Over 50 of
the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers. The
industry accounts for over 8 percent of the GDP in western economies.

Retail: Largest Private Industry In The World Economy

A Study by Mc Kinsey states that organized retail accounts for just around 2 percent (out of
which modern retail formats account for 7 percent of trade) presently is set to grow at
exponential exceeding 35 percent. Fitch estimates the current share of organized retail to grow
from 2percent presently to around 15 to 20 percent by 2010.

Retail Consumption areas US $ billion Existing Companies in the organized sector

Food Retailing 130 Food Bazaar (Pantaloon) Food World
Subhishka.
Clothing & Apparel 12 Pantaloon Westside, Shoppers Stop
Jewelry, Watches 7 Tanishq, Titan, Gold Bazaar (Pantaloon)
Home Furnishing 5 Home Store, Arcus (Pantaloon)
Foot wear 1.7 Bata, Woodland
Beauty Care 3.6 VLCC, Health & Glow

Source: economic times industry report

Traditionally, most retailers have had very localized operations. This localized nature of the
industry is changing as retailers face low rates of growth and threatened profitability at home.
New geographies will help them sustain top-line growth as well as permit global sourcing.
Profits in retail have steadily been rising and have generated 18 percent shareholder returns
between 1994 and 1999. Significantly, retail is also one of the worlds largest employers,
accounting for instance 16 percent of the US workforce, Poland 12 percent, China 8percent,
India 10 percent and Brazil 6percent. Factors such as scale in sourcing, merchandising,
operational effectiveness and ambience have driven the spread of organized retail.

Grocery, electronics are examples of categories that compete on the strength of better pricing,
which in turn is driven by superior sourcing and merchandising and cost-efficient operations.
Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these fields.

In apparel, home furnishings and furniture, the advantage is driven by the marketers ability to
provide better products in a comfortable ambience at affordable prices. In these cases sourcing
capability has to be backed by strong design capability and store management. IKEA and GAP
are good examples of this model of retailing.
Over the last few decades, retail formats have changed radically. The basic department stores and
co-operatives of the early 20th Century have given way to mass merchandisers, hypermarkets,
warehouse clubs, category killers, discounters and convenience stores. Each of these formats has
been driven by marketers need to offer relevant, distinctive and economic propositions to an
evolving consumer base.

Global retailers have also reached a position of strength that enables their brand to be leveraged
across a wide range of services. Many of them have expanded their offering, over the years to
include fuel retail, car retail, convenience services and personal financial services. This has put
them in a position where they are not only beginning to capture growth from geographical
expansion, but are also entering large new areas of business.

The recent evolution of the Internet has helped further broaden the scope of operations of large
retailers. Further, a large number of retailers are pursuing innovative aggregation and supply
chain-streamlining initiatives using B2B technology.
 THE RETAIL MARKETING REVOLUTION

By 2010, the list of India's top 10 retailers will have at least 5 Indian corporate. Retail Marketing
will go through a tremendous change in India this millennium. It will change India's cities, its
people, and its households. The Indian consumer is reportedly the largest spender in Singapore
and London. It is, therefore, strange that there have, so far, been few efforts to present the
product in the right kind of environment in India. Indeed, the right shopping experience does
induce Indian consumers to spend more. This is evident from the experiences of retail-outlets
like Shoppers' Stop, Music World, Food World, Crosswords, The Home Store, Ebony, Bigjos,
Saboos, Standard, Vijay Store and Janaki Das & Sons, Westside etc.

However, the development of organized retail is dependent on the efforts of several agencies and
institutions. The first among these is the government. In a country as big as India and with as
many states as ours, it is imperative that the Central government and all state governments bring
in Value Added Taxation or a unified taxation system to ensure that the tax-regimes are the same
across the country.

The laws governing retail real estate should also be looked into, so that it is possible to develop
retail-estate beyond the city-limits.

Apart from providing entertainment and retail opportunities, this will also decongest the city
center and facilitate the development of suburbs. The relevant rules should also be amended to
allow retail-stores to operate 7 days a week, 12 hours a day. Given the hours most urban
consumers keep at work, and keeping in mind the increase in the number of nuclear families, this
may, indeed, make sense. This will also help people enjoy their evenings, out at malls.

The second group, whose participation is essential in making retail a boom-sector in this
millennium, comprises developers. Most properties are developed without considering the end
user; thus, we sometimes find high-ceilinged offices and low-ceilinged retail stores. Often, the
shopper's convenience is not taken into consideration while the property is constructed.

Another area of concern is the way in which developers sell their space. The only consideration
is the price, not the usage pattern or the nature of the product that is to be sold. In contrast,
internationally, mall-management is treated as a specialized discipline of retail management.
This is what we have to focus on in this millennium.

The third constituency that has a role to play in the fortunes of organized retail this century is the
education-sector. Retail is a people-intensive business, and there is a huge opportunity for retail
institutes in India.

For manufacturers, retailing will present an attractive opportunity. Organized retail allows them
to expose their products to a large volume of customers in an environment conducive to buying.
Already, several transnational retail giants have established their presence in India; others,
notably Chinese retailers, have visited India and studied the Indian market. There's a lot at stake
here: even so early in the 21st Century, India is too large a market to be ignored by transnational
retail giants.
From the manufacturing company's perspective, the focus should be on producing good
products, and forging relationships with organized retail. Manufacturers need to draw a plan of
producing quality products and tie in with retailers. Indeed, the birth of organized retail will also
engender the creation of private labels and store-brands. Thus, if a manufacturing company lacks
the resources to build a brand, it can supply to a retail-chain that has the resources to create a
brand of its own.

A glimpse of the last 2 decades of the previous century proves illuminating. Large-format
retailing started with outlets like Vivek's and Nalli's in Chennai and Kidskemp in Bangalore, and,
at another level, with manufacturer-retail brands like Bata, Bombay Dyeing, and Titan. The last
decade of the millennium witnessed the emergence of lifestyle brands and the plastic culture.
Liberalization and increasing awareness of the world around us created the Indian yuppie, who
aspired to own everything we saw on TV or in shops during jaunts abroad. New lifestyle brands
offered traditional retail-outlets an opportunity to convert themselves into exclusive stores,
franchised or otherwise. And even as these developments were taking place, the Indian consumer
became more mature. Customer-expectations zoomed

Thus, at the beginning of the New Millennium, retailers have to deal with a customer who is
extremely demanding. Not just in terms of the product-quality, but also in terms of service, and
the entire shopping experience. Today, the typical customer who shops in a retail outlet
compares the time spent at the check-out counter with that at an efficient petrol station, and the
smile of the counter-person to that decorating the face of a Jet Airways' crew member. To cope
with the new customer, manufacturers have to focus on product quality and brand building. And
retailers, in turn, have to focus on the quality of the shopping experience.

Internationally, retailing is a large business; you find at least one retailer amongst the top 10
companies in every country. In the US, it is Wal-Mart with a turnover in excess of $ 120 billion.
In the UK, it is Marks and Spencer's with close to 10 billion; and, in Germany, it
is Karstadt with a turnover in excess of dm 10 billion.

Top 10 Retailers Worldwide

Rank Retailer No of stores Sales in US$

owned Millions
1 Wall-Mart Stores Inc. (USA) 4178 $180,787
2 Carrefour Group (France) 8130 $61,047
3 The Kroger Co. (USA) 3445 $49,000
4 The Home Depot, Inc. (USA) 1134 $45,738
5 Royal Ahold (Netherlands) 7150 $45,729
6 Metro AG (Germany) 2169 $44,189
7 Kmart Corporation (USA) 2105 $37,028
8 Sears, Roebuck and Co. (USA) 2231 $36,823
9 Albertson's, Inc. (USA) 2512 $36,726
10 Target Corporation (USA) 1307 $36,362
 Source: economic times industry report

Studies by consulting firms like A.T. Kearney, KSA Technopak, and McKinsey & Co. in India
have indicated a huge potential for retailing in the country. Drawn by the magic number of Rs
1,60,000crore that is expected to be the size of the retail industry by the end of the first decade of
this millennium, several companies from the organized sector have also jumped into the fray.

In this millennium, like in the last, customers will want to spend time with their family and
friends. They may like to visit malls on weekends where everything will be available under one
roof. India will benefit from these developments because of increased consumption through
retailing and the corresponding increase in employment created by retailing.

Retail Marketing

Retail Marketing includes all the activities involved in selling goods or services directly to final
consumes for personal, non-business use. Any organization selling to final consumers -- whether
a manufacturer, wholesaler, or retailer is doing retailing. It does not matter how the goods or
services are sold (by Person, Mail, Telephone, Vending Machine, or Internet) or where they are
sold (in a store, on the street, or in the consumers home).

There are many approaches to understanding and defining retail marketing; most emphasize
retail marketing as the business activity of selling goods or services to the final consumer, but
what we emphasized upon is defined as follows:

Any business that directs its marketing efforts towards satisfying the final consumer based upon
the organization of selling goods and services as a means of distribution

The concept assumed within this definition is quite important. The final consumer within the
distribution chain is a key concept here as retailers are at the end of the chain and are involved in
a direct interface with the consumer.

A retailer or retail store is any business enterprise, whose sales volume comes primarily from
retailing. Retail organizations exhibit great variety and new forms keep emerging. There are
store retailers, non-store retailers, and retail organizations. Consumers today can shop for goods
and services in a wide variety of stores. The best-known type of retailer is the department store.
Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers
each year. These stores feature art galleries, cooking classes, and childrens playgrounds.

A retailer is at the end of the distributive channel. He provides goods and service to the ultimate
consumers. This he does through his small organization, with the help of a few personnel. In an
individual retail store there is not much scope for organization except in the sense that the
shopkeeper has to organize and apportion his time and resources. The need for organization
becomes essential as soon as he hires people and enters into partnership or takes the help of
members of his family in running his store. A retailer deals in an assortment of goods to cater to
the needs of consumers. His objective is to make maximum profit out of his enterprise. With that
end in view he has to pursue a policy to achieve his objective. This policy is called retailing mix.
A retailing mix is the package of goods and services that store offers to the customers for sale. It
is the combination of all efforts planned by the retailer and embodies the adjustment of the retail
store to the market environment. Retailing mix, a communication mix and a distribution mix.
The maximum satisfaction to the customers is achieved by a proper blend of all three.

The success of the retail stores, therefore, depends on customers reaction to the retailing mix
which influences the profits of the store, its volume of turnover, its share of the market, its image
and status and finally its survival.

There are three main phases in the life of a retailing institution. These are: -

Innovation (Entry)
Trading Up
Vulnerability.

In the entry stage, a new retailer enters with new price appeal, limiting product offerings, Sparton
Stores & Limited services. Its monopoly power over the others is its price advantage, which
means that it offers products at low prices so as to get a competitive edge over its competitors.

In the trading up stage, the retailer starts expanding. It expands in terms of product offering,
better services, and improved interiors. With all these, it starts charging a bit higher prices.

In the vulnerability stage, there is a gap in the market leaving some space for the new players to
come in. this is due to increase in the prices by the retailer.

I have already explained the three stages in life of a retail institution. Normally these stages are
there in the life of a retail institution. But all these may not be necessarily there in every retail
institution. For instance, any retail institution targeting the upper class may start itself with a
large variety & high price.

This brings to broadly identify and categorize the types of retail marketing, which are defined as
follows:

1. Store Retailing

2. Non store Retailing

Types Of Retail Marketing

Store Retailing

Store retailing provides consumers to shop for goods and services in a wide variety of stores and
it also help the Consumers to get all the needed goods and services from one shop only. The
different types of store retailing are given below:
Specialty Stores

These stores focus on leisure tastes of different individuals. They have a narrow product line
with deep assortment such as apparel stores, sporting goods stores, furniture stores, florists and
bookstores. These stores are usually expensive and satisfy the needs of selected consumers who
have liking or preference for exclusive things.

Departmental Store

These stores are usually built in large area and keep variety of goods under one shed. It is usually
divided into different sections like clothing, kids section, home furnishings, electronic appliances
and other household goods. In a departmental store a consumer can buy variety of goods under
one shed.

Supermarket

These stores are relatively large, low cost, low margin, high volume, self service operations
designed to serve total needs for food, laundry and household maintenance products.
Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net worth.

Convenience Stores

These are relatively small stores located near residential area, open for long hours seven days a
week, and carrying a limited line of high turnover convenience products at slightly higher prices
than departmental stores. Many such stores also have added takeout sandwiches, coffee and
pastries.

Off - Price Retailer

These stores sell goods at low price with lower margins & higher volumes. These stores sell
goods with deteriorated quality. The defects are normally minor. This target at the persons
belonging to the lower income group, though some have a collection of imported goods aimed to
target the younger generation. The company owned showroom selling the seconds products is a
typical example of off - price retailer.

Discount Store

These stores sell standard merchandise at lower prices by accepting lower margins and selling
higher volumes. The use of occasional discounts or specials does not make a discount store. A
true discount store regularly sells its merchandise at lower prices, offering mostly national
brands, not inferior goods.

In recent years, many discount retailers have traded up. They have improved decor, added new
lines and services, and opened suburban branchesall of which has led to higher costs and
prices and as some department stores have cut their prices to compete with discounters.
Not only that, discount stores have moved beyond general merchandise into specialty
merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores.

Catalog Showroom

Catalog showrooms generally sell a broad selection of high-markup, fast-moving, brand-name

goods at discount prices. These include jewelry, power tools, cameras, luggage small appliances,
toys, and sporting goods. Catalog showrooms make their money by cutting costs and margins to
provide low prices that will attract a higher volume of sales. Catalog showrooms have been
struggling in recent years to hold their share of the retail market.
RETAIL SCENE IN INDIA

India has some sometimes been called a nation of shopkeepers. This epithet has its roots in the
huge number of retail enterprises in the country totaling 12 million, about 78 percent of these are
small family owned businesses utilizing only household labour. even among retail enterprises
that hire workers the bulk of them hire less than 3 workers .Indias retail sector appears
backwards not only by standards of industrialized countries but also in comparison to several
other emerging markets in Asia and elsewhere. There are only 14 companies that run
departmental stores and mere two with hypermarket operations. While the number of businesses
operating supermarkets is higher ( 425 in 2004 ) most of these had only 1 outlet, the number of
companies with supermarket chains was less than 10.

Major Formats of Retailing

Major formats of In-Store Retailing have been listed in Table given below:

Table 3:

Format Description The Value Proposition

Branded Stores Exclusive showrooms either Complete range available
owned or franchised out by a for a given brand, Certified
manufacturer. product quality.
Specialty Stores Focus on a specific consumer Greater choice to the
need; carry most of the brands consumer, comparison
available. between brands possible
Department Stores Large stores having a wide variety One stop shop catering to
of products, organized into varied consumer needs.
different departments, such as
clothing, house wares, furniture,
appliances, toys, etc.
Supermarkets Extremely large self-services One stop shop catering to
retail outlets. varied consumer needs.
Discount Stores Stores offering discounts on the Low prices.
retail price through selling high
volumes and reaping the
economies of scale.
Hyper-mart Larger than a Supermarket, Low prices, vast choice
sometimes with a warehouse available including services
appearance, generally located in as cafeterias.
quieter parts of the city
Convenience Stores Small self-service formats located Convenient location and
in crowded urban areas. extended operating hours.
Shopping Malls An enclosure having different Variety of shops available
formats of in-store retailers, all close to each other.
under one roof.

Source: India info line

Non-Store Retailing

It is another type of retail marketing. Different types of non-store retailing are given below:

Direct Selling

Direct selling which started centuries ago with itinerant peddlers has burgeoned into a $9 billion
industry, with over 600 companies selling door to door, office to office, or at home sales parties.
A variant of direct selling is called multilevel marketing, whereby companies such as Amway
recruit independent businesspeople who act as distributors for their products, who in turn recruit
and sell to sub distributors, who eventually recruit others to sell their products, usually in
customer homes.

Direct Marketing

Direct marketing has its roots in mail-order marketing but today includes reaching people in
other ways than visiting their homes or offices, including telemarketing, television direct
response marketing, and electronic shopping.

Automatic Vending

Automatic vending has been applied to a considerable variety of merchandise, including impulse
goods with high convenience value (cigarettes, soft drinks, candy, newspaper, hot beverages) and
other products (hosiery, cosmetics, food snacks, hot soups and food, paperbacks, record albums,
film, T-shirts, insurance policies, and even fishing worms).

Organized Retail Formats in India

Each of the retail stars has identified and settled into a feasible and sustainable business model of
its own.

Shoppers' Stop - Department store format

 Westside - Emulated the Marks & Spencer model of 100 per cent private label, very good
value for money merchandise for the entire family
Giant and Big Bazaar - Hypermarket/cash & carry store
Food World and Nilgiris Supermarket format
Pantaloons and The Home Store - Specialty retailing
Tanishq has very successfully pioneered a very high quality organized retail business in
fine jewellery.

Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer

A chain retailer or corporate retail chain
A franchise system
A Leased Department (LD)
Vertical Marketing System (VMS)
Consumer Co-operatives

A new entrant in the retail environment is the 'discounter' format. It is also is known as cash and-
carry or hypermarket. These formats usually work on bulk buying and bulk selling. Shopping
experience in terms of ambience or the service is not the mainstay here. RPG group has set up
the first 'discounter' in Hyderabad called the Giant. Now Pantaloon is following suit.

Two categories of customers visit these retail outlets.

1. The small retailer. For example, a customer of Giant could be a dhabawala who needs to buy
edible oil in bulk.

2. The regular consumer who spends on big volumes (large pack sizes) because of a price
advantage per unit.

Retailing in India is still evolving and the sector is witnessing a series of experiments across the
country with new formats being tested out; the old ones tweaked around or just discarded. Some
of these are listed in Table below.

Retailer Current Format New Formats

Shoppers' Stop Department Store Quasi-mall
Ebony Department Store Quasi-mall, smaller outlets, adding food retail
Crossword Large bookstore Corner shops
Pyramid Department Store Quasi-mall, food retail
Pantaloon Own brand store Hypermarket
Subhishka Supermarket Considering moving to self service
Vitan Supermarket Suburban discount store
Foodworld Food supermarket Hypermarket, Foodworld express
Glob us Department Store Small fashion stores
Bombay Bazaar Super market Aggregation of Kiranas
Efoodmart Food super market Aggregation of Kiranas
Metro Departmental store Cash and carry
S Kumar's Departmental store Discount store

Source: India info line

Retailers are also trying out smaller versions of their stores in an attempt to reach a maximum
number of consumers. Crossword bookstores are experimenting with Crossword Corner, to
increase reach and business from their stores. FoodWorld is experimenting with a format of one-
fourth the normal size called FoodWorld Express.

Trends In Retail Marketing

At this point, I can summarize the main development retailers and manufacturers need to take
into account as they plan their competitive strategies.

In India the trends are mainly in three sectors. These sectors are:

Trends In Retail Marketing

1. New retail forms and combinations continually emerge. Bank branches and ATM counters
have opened in supermarkets. Gas stations include food stores that make more profit than the gas
operation. Bookstores feature coffee shops.

Even old retail forms are reappearing: In 1992 Shawna and Randy Heniger introduced peddlers
carts in the Mall of America. Today three-fourths of the nations major malls have carts selling
everything from casual wear to condoms. Successful carts average $ 30,000 to $ 40,000 a month
in sales and can easily top $ 70,000 in December. With an average start-up cost of only $3,000,
push carts help budding entrepreneurs test their retailing dreams without a major cash
investment. They provide a way for malls to bring in more mom-and-pop retailers, showcase
seasonal merchandise, and prospect for permanent tenants.

2. New retail forms are facing a shorter life span. They are rapidly copied and quickly lose their
novelty.

3. The electronic age has significantly increased the growth of non store retailing, consumers
receive sales offers in the mail and over television, computers, and telephones, to which they can
immediately respond by calling a toll-free number or via computer.

4. Competition today is increasingly intertype, or between different types of store outlets.

Discount stores, catalog showrooms, and department stores all compete for the same consumers.
The competition between chain superstores and smaller independently owned stores has become
particularly heated. Because of their bulk buying power, chains get more favorable terms than
independents, and the chains large square footage allows them to put in cafes and bathrooms. In
many locations, the arrival of a superstore has forced nearby independents out of business. In the
book selling business, the arrival of a Barnes & Noble superstore or Borders Books and Music
usually puts smaller bookstores out of business. Yet the news is not all bad for smaller
companies. Many small independent retailers thrive by knowing their customers better and
providing them with more personal service.

5. Todays retailers are moving toward one of two poles, operating either as mass merchandisers
or as specialty retailers. Superpower retailers are emerging. Through their superior information
systems and buying power, these giant retailers are able to offer strong price savings. These
retailers are using sophisticated marketing information and logistical systems to deliver good
service and immense volumes of product at appealing prices to masses of consumers. In the
process, they are crowding out smaller manufacturers, who become dependent on one large
retailer and are therefore extremely vulnerable, and smaller retailers, who simply do not have the
budget of the buying power to compete. Many retailers are even telling the most powerful
manufacturers what to make; how to price and promote; when and how to ship; and even how to
reorganize and improve production and management. Manufacturers have little choice: They
stand to lose 10 to 30 percent of the market if they refuse.

6. Marketing channels are increasingly becoming professionally managed and programmed.

retail organizations are increasingly designing and launching new store formats targeted to
different lifestyle groups. They are not sticking to one format, such as department stores, but are
moving into a mix of retail formats.

7. Technology is becoming critical as a competitive tool. Retailers are using computers to

produce better forecasts, control inventory costs, order electronically from suppliers, send e-mail
between stores, and even sell to customers within stores. They are adopting checkout scanning
systems, electronic funds transfer, and improved merchandise-handling systems.

8. Retailers with unique formats and strong brand positioning are increasingly moving into other
countries. McDonalds, The Limited, Gap, and Toys R Us have become globally prominent as
a result of their great marketing prowess. Many more Indian retailers are actively pursuing
overseas markets to boost profits.

9. There has been a marked rise in establishments that provide a place for people to congregate,
such as coffeehouses, tea shops, juice bars, bookshops, and brew pubs. Denvers two Tattered
Covered bookstores host more than 250 events annually, from folk dancing to womens
meetings. Brew pubs such as New Yorks Zip City Brewing and Seattles Trolley man Pub offer
tasting and a place to pass the time. The Discovery Zone, a chain of childrens play spaces, offers
indoor spaces where kids can go wild without breaking anything and stressed-out parents can
exchange stories. There are also the now-ubiquitous coffeehouses and espresso bars, such as
Starbucks, whose numbers have grown from 2,500 in 1989 to a forecasted 13,000 by 2001. And
Barnes & Noble turned a once-staid bookstore industry into a fun-filled village green.
RETAIL MARKETING IN INDIA

Retail marketing is the most important part of the entire logistics chain in a business especially in
consumer related products. Without proper retailing the companies can't do their business.
Retailing is the process of selling goods in small quantities to the public and is not meant for
resale. Retail is derived from the French word retailer, meaning to cut a piece off or to break
bulk.

There are various ways of making goods available to consumers like:

Company to distributor to wholesaler to retailer to consumer

Company to salesperson to consumer
Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to consumers. But
in India the three layered system of distributor, wholesaler and retailer, forms the backbone of
the front-end logistics of most of the consumer-goods companies.

In this system the company operating on all India bases appoints hundreds of distributors across
the country that supplies to various retailers and wholesalers. Wholesalers in turn can either
directly sell in the market or can supply to retailers. The current retailing system prevalent across
the country is highly fragmented and unorganized. Anyone with some money and some real
estate can open a small shop and become a retailer catering to the locality in which he opens the
shop.

There are a number of reasons behind this fragmented retail market. Some of the major reasons
being:

Poverty and lower literacy levels.

Low per capita income.
Savings focused and less indulgence mindset.
Poor infrastructure facilities like roads etc.
Restrictions on intra-state good movement.
High taxes.
No exposure to media.
High import duties on imported goods.
FDI in retailing is not allowed.
Retailing is not considered as a business or industry by the government.
Hitherto none of the business schools in India were offering specialized courses on
retailing.
Expensive supply chain.

Besides this there is other reasons too, which led to stifling of growth of organized segment of
retailing sector and which instead led to highly fragmented market.
Today in India we have more than 12 million retail outlets and most of then are family run and
locally owned. There are very few nationally present retail stores. In India the process of buying
and selling at these unorganized retail outlets, is highly characterized by bargaining and
negotiations. But slowly with increasing influence of media and urbanization the market is
shifting towards organized segment. Seeing the huge market size of retail business in the country
and the current level of organized segment, many players have jumped into the fray and many
are waiting for the right opportunity to enter it.

Retailing In 1990s

On account of the liberalization drive in the 1990s, several structural and demographic changes
that are taking place are helping the industry to grow. The GDP has grown by 6.6percent in the
last decade resulting in increased income levels and higher purchasing power for the population.
Increasing literacy levels, increasing number of working women, increasing urbanization, higher
international travel by Indian population and increasing media penetration has raised aspiration
levels of the population, resulting in demand for better shopping experience and larger variety of
goods. India has close to 54percent of population below the age of 25, which translates into
higher prospects for increased consumption levels in the future. Finally, interest rates have also
declined in the past few years further propelling the consumption demand.

These factors were the key drivers for the retail wave in the country. Notable among the early
entrants were players like Shoppers Stop, Pantaloon, Ebony, Foodworld, Subhiksha, etc.
Initially, the growth in organized retail was very slow and concentrated mainly in metros, with
south India holding its ground as the pioneer in organized retail growth, on account of the low
cost of real estate. Due to the high investments required in the early stages and the fact that real
estate was the key deciding factor for success of stores, real estate developers have been the
major players in the industry (see Table).

Table 5:

Sponsors

Group Retail Business

RajanRaheja Real Estate Developer Globus Chain of departmental stores
K, Raheja - Real Estate Developer Shoppers Stop - Chain of departmental
stores
Hiranandani - Real Estate Developer Haiko supermarket, Loft shoe stores and
Hakone mall.
Tata Diversified Business House Westside chain of department stores
DS Group - Real Estate Developer Ebony - chain of department stores
RPG Diversified Business House Foodworld supermarkets, Giant
hypermarkets, Health & Glow beauty and
health stores.
DLF Real Estate Developer DLF malls
ITC - Diversified Business House Wills Sport Chain of apparel stored.

Source: Fitch

In the early 1990s, as the players were lower down on the learning curve many faltered in their
models, and growth of the industry remained slow. The second half of 1990s saw several players
making losses and exiting from the business. The worst years for the industry were 2000 and
2001, as the stock market downturn, which reduced customer confidence and spending, had a
direct impact on the performance of the industry. The industry recovered starting 2002. It now
appears the efforts and learnings of the players in the last decade are beginning to pay off; the
organized retail industry has established firm roots and is beginning to grow.

Present Retail Scenario In India

The present value of the Indian retail market is estimated by the India Retail Report to be around
Rs. 12,00,000crore($270 billion) and the annual growth rate is 5.7 percent. Retail market for
food and grocery with a worth of Rs. 7,43,900crore is the largest of the different types of retail
industries present in India. Furthermore around 15 million retail outlets help India win the crown
of having the highest retail outlet density in the world. The contribution of retail sector to GDP
has been manifested below:

Country Retail Sector's share in GDP (in %)

India 10

USA 10

China 8

Brazil 6

*Source:CII-AT Kearney Retail Study

As can be clearly seen, retailing in India is superior than those of its contenders. Retail sector is a
sunrise industry in India and the prospect for growth is simply huge. There are many factors that
have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of them can
be listed as follows:
1. Rise in the purchasing power of Indians- the rise in the per capita income in the last few
years has been magnificent. This has led to the generation of insatiable wants of the upper and
middle class. The demand of new as well as second hand durables has risen throughout the
country thus providing the incentive for taking up retailing.

2. Favorable to farmers- retailing has helped in removing the middlemen and has thus
enhanced the remuneration to farmers. This is a new revolution in the agricultural sector in India
and will go a long way in amending the condition of agriculture, a major concern among policy
makers.

3. Use of credit- a typical Indian is most conversant with using credit cards than carrying money.
This has led to a shift of the consumer base towards supermarkets and make the payments in the
form of credit.

4. Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the
generation-Y. People and kids prefer to shop in an air conditioned a tech savvy manner.

The retail industry is the second largest employer in India. It currently employs about 7 percent
of the total labor force in India. Finance Minister P. Chidambaram's recent statement salaries
ought not be legislated is a welcome move as most of the organized retail is in private hands.
However only about 4.6% of the total retail trade is in organized sector. It generates about
Rs.55,000crore ($12.4 billion). The major and minor players desperately need to work hard in
this direction so that next time the figures look more decent. The government must also make an
attempt to ameliorate the situation as political instability and infrastructure namely power and
roads are the major roadblocks in the path of smooth functioning of the market.

Retail Sectors In Neighboring Countries:

China- The total sales from retail market in China reached US$755 billion in 2005. However
organized retailing in China accounts for only 20% of it. Also the fragmentation of China's retail
market is so high that top 100 retailers make up for only 10.5% of the total market. The
registered sales of department stores grew by 25.7% and that of convenience stores grew by
36.5% in 2005. The Chinese retail market is expected to reach new highs as the population of
strong middle class is expected to double by 2020 and mergers and acquisitions among retailers
are3 going in great guns. The WTO restrictions are also expected to have a favorable impact on
its retail sector.

Japan- Total annual sales for the Japanese retail industry for 2003 amounted to JPY 133,273
billion. Japan had 1.2 million retail establishments in June 2004 and there were 42,738 specialty
superstores. Between 2002 and 2004 annual sales per store increased by 3.8%. The growth was
mainly driven by the grocery superstores but the number of superstores specializing in clothes
gradually came down. The organized retail sector in Japan couldn't perform at its full efficiency
because of collapse of the 'bubble economy' in the early 90s.
Retail Experts Find Indian Industry Promising

The retail movement in India has acquired the critical mass that is required for rapid acceleration
in terms of industry growth as well as geographical spread. The Indian retail industry can no
longer be called nascent.

The spread of super stores to the northern cities such as Delhi, Chandigarh, Jaipur and Kolkata is
evidence of the fact that organized retailing in India has emerged from its southern bastion.

The retailing boom is being driven by increased expectations as well as changing shopping
behavior of the urban Indian consumer. With the increasing number of nuclear families, working
women, greater work pressure and increased commuting time, consumers are looking for
convenience. And, convenience is defined as having everything under one roof, longer hours and
multiplicity of choice.

On the supply side, the current inefficient supply chain in India, particularly for food items has
led a few players to consolidate their operations to take advantage of economies of scale and
match consumer expectations in terms of delivery as well as space. So, we have a situation where
both demand and supply side dynamics are fuelling the growth of organized retailing in India,
although improvements in the supply chain are yet to fully match with consumer expectations.

The future growth need not necessarily come only from the big metros, where there already
exists a good retail network. The fact that big Indian retail chains are moving into places like
Indore or Chandigarh is an important indicator of future growth. For the Rs. 5000-crore
organized retail industry it is, perhaps, time to tap the relatively smaller cities. The share of
organized sector in total retail sales will grow from one per cent now to six per cent by
2005.While projections can be slippery, hard facts point to exciting growth ahead for this sector.

According to KSA, organized retailing is focusing on only SEC-A cities, Indias 23 largest cities.
That is where a large portion of the country's urban population exists. Today 82 per cent of
organized retailing comes from the top six cities and 12 per cent from the next four. KSA says
the top 10 cities provide 94 per cent of organized retail sales in India.

By 2005, KSA projects the top six cities will account for 66 per cent of total organized retailing
and the next four for 20 per cent. The top 10 cities will account for 86 per cent of organized retail
sales. There could be variations in growth patterns in different segments. The second half of the
top 10 cities will provide large growth for food and groceries, while the top six would still be the
growth centers for consumer durables, believes KSA.

The spread of organized retailing is unlikely to be a national phenomenon yet. This appears to be
the case so far. South India, particularly Chennai, Hyderabad and Bangalore, have seen the
emergence of chain stores or large format stores. While garment stores have been around for
sometime, other segments like food and groceries, consumer durables and even books and music
have witnessed the emergence of organized players in large cities in South India. The lack of
trained manpower or alternatively the tremendous scope the sector has to provide employment is
another issue.

Mall Mania: The Developing Mall Culture In India

Modern malls made their entry into India in the late 1990s, with the establishment of Crossroads
in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall projects were announced.
According to market estimates, close to 12 million sq. ft. of mall space is being developed across
several cities in the country, of which 10 million sq. ft. is expected to be operational by end of
2003 (see Table below). With this, rentals for retail properties have shown a marked decline,
which has brought down the break-even levels of the retail projects. Moreover, retailers would
now have access to retail-specific properties, which will increase their efficiencies.

Mall Development In India

Mall Location Rate / Sq. ft.

Crossroads Tardeo, Mumbai 225-250
Ansals South Ex, Delhi 175-200
Nirmal Lifestyle Mulund, Mumbai 75-90
Runweals Mall Mulund, Mumbai 75-90
Karnavat Mall Thane, Mumbai 65-85
Raheja Mind space Malad, Mumbai 60-80
Jogs Mall Andheri, Mumbai 55-75
Cable Corporation Borevali, Mumbai 55-75
Ansals East Delhi 75
Sahara Gurgaon 50-70
MGF Malls Metroplitian& Plaza Gurgaon 65-85*
DLF Gurgaon 65-85
Shipra Noida 80-180
Forum KolKotta 100
City Center KolKotta 55
Rave 3 Kanpur 45-55
Inox Baroda 75
Forum Bangalore 70-90
Spencers Plaza Phase III Chennai 70
Indore, Nasik and Jaipur Malls 45-55
Hyatt, Mumbai &Leela, 175-300
Phoenix Malls Lower Parel, Mumbai 100-125

*average for the metropolitian is Rs. 60 per sq. ft..

source: ChestertenMeghraj. Industry Reports

Till some time back, there were only few international style shopping malls in India --Spencer in
Chennai, Crossroads in Mumbai, Ansals Plaza in New Delhi and Srirams Arcade in Kolkata. By
the end of 2004, that number jumped to many.

It looks like a virtual stampede, major players with a cumulative investment of Rs 375 crore are
set to change cityscapes across India. In the next one year, close to 40 lakh square feet of retail
space will be developed. In three years, this will rise to 70-lakh sq ft.

As the retail industry evolves, consumers want more variety before making their purchase
decision. A study on consumer outlook suggests that over 80 percent of consumers want a wide
range of products at hand while shopping. This signifies that people are finally ready for multi-
option complexes.

Many old-time corporates are seriously considering using their idle assets. It makes sense for
landowners to develop it and keep the returns rather than sell it outright or even lease it,
especially when there is opportunity here. It is perhaps the best way to use an idle real estate
asset.

The limited kitty of brands has yet another significant knock on effect on the typical size of
Indian malls. In the US and South-East Asia, malls are as large as 50 lakh sq ft. Spencer is by far
the largest mall in India - it occupies 7 lakh sqft and even that is dwarfed by Asia's largest mall,
the 4-million sq ft mega mall in Malaysia. Even the 26 malls that are being planned are likely to
measure between 50,000 sq ft and 2 lakh sq ft. The Indian mall cannot offer too many choices in
terms of brands. So, developing a very large mall can never be sustainable.

There's a flip side though -malls even as small as 80,000 sq ft, like Shopper's City in Kolkata or
the Esplanade Mall at Kochi, can be sustained.

Emergence of Region-Specific Formats

For the first time in 10 years, the industry is witnessing the development of region-specific
formats. With organized retail penetrating into B class towns, retailers have started
differentiating in the sizes and formats of stores. For example, in departmental store format,
while most A class cities and metros have larger stores of 50,000 plus sq. ft. sizes, stores in B
class towns have stabilized in the 25,000-35,000 sq. ft. range. Most players have started
operating these two formats across various cities, which has helped them to standardize the
merchandise offering across the chain.

Emergence Of Discount Formats

Larger discount formats, popularly known as hypermarkets, are now emerging as major
competitors to both unorganized and organized retailers. Penetration of organized retail into the
lower strata of income groups and consumer demand for increased value-for-money has
improved the prospects of these formats. These formats span across the entire range of
merchandise categories. Big Bazaar, promoted by Pantaloon and Giant, promoted by the RPG
Group, are examples of this format.
Entry Of International Players

A large number of international retailers have evinced interest in India, despite the absence of
favorable government policy for foreign players (see Table below). A number of the major
brands have entered the country through licensing agreements with Indian players to capitalize
on the opportunities available in the sector.

International Players

International Players Retail Ventures In India

Landmarc Group, Dubai Lifestyle Chain of Departmental Stores
Metro, Germany Hypermarket
Shoprite, South Africa Supermarket, Hypermarket
Nanz, Germany Supermarket
Marks & Spencer, UK Apparel Retailer
Mango, Spain Apparel Retailer
McDonalds, USA Food Retailer
Dominos USA Food Retailer
Tricon Restaurant, USA Food Retailer

Source: Industry Reports

INFORMATION TECHNOLOGY IN RETAIL

Over the years as the consumer demand increased and the retailers geared up to meet this
increase, technology evolved rapidly to support this growth. The hardware and software tools
that have now become almost essential for retailing can be divided into 3 broad categories:

Customer Interfacing Systems

Bar Coding And Scanners

Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to
calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where
the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a
matter of seconds, the items in the cart are hit with laser beams and scanned. All that the
consumer has to do is to pay for the goods.

Payment

Payment through credit cards has become quite widespread and this enables a fast and easy
payment process. Electronic cheque conversion, a recent development in this area, processes a
cheque electronically by transmitting transaction information to the retailer and consumer's bank.
Rather than manually process a cheque, the retailer voids it and hands it back to the consumer
along with a receipt, having digitally captured and stored and image of the cheque, which makes
the process very fast.

Internet

Internet is also rapidly evolving as a customer interface, removing the need of a consumer
physically visiting the store.

Operation Support Systems

ERP System

Various ERP vendors have developed retail-specific systems which help in integrating all the
functions from warehousing to distribution, front and back office store systems and
merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting
his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the
customer better.

CRM Systems

The rise of loyalty programs, mail order and the Internet has provided retailers with real access
to consumer data. Data warehousing & mining technologies offers retailers the tools they need to
make sense of their consumer data and apply it to business. This, along with the various available
CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase
behavior of consumers in detail and grow the value of individual consumers to their businesses.

Advanced Planning And Scheduling Systems

APS systems can provide improved control across the supply chain, all the way from raw
material suppliers right through to the retail shelf. These APS packages complement existing (but
often limited) ERP packages. They enable consolidation of activities such as long term
budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into
one overall planning process using a single set of data.

Leading manufacturers, distributors and retailers and considering APS packages such as those
from i2, Manugistics, Bann, Mercialincs and Sterling-Douglas.

Strategic Decision Support Systems

Store Site Location

Demographics and buying patterns of residents of an area can be used to compare various
possible sites for opening new stores. Today, software packages are helping retailers not only in
their locational decisions but in decisions regarding store sizing and floor-spaces as well.

Visual Merchandising

The decision on how to place & stack items in a store is no more taken on the gut feel of the
store manager. A larger number of visual merchandising tools are available to him to evaluate
the impact of his stacking options. The SPACEMAN Store Suit from AC Nielsen and Modacad
are example of products helping in modeling a retail store design.
 FOREIGN TOUCH IN INDIAN RETAIL

The chief of Marks & Spencer has been making trips to India over the past year. Global
investment bank Warburg Pincus is awaiting the Indian government's clearance to pick up a 25.1
per cent stake, worth $13 million, in Shoppers Stop.

Dairy Farm International and Jardine Matheson are present here, through tie-ups with the RPG
Group. Fast food major McDonalds have already made a dent in the marketplace and in Indian
palates.

The Dubai-based Landmark group is making its presence felt in Chennai through its Lifestyle
mega store of over 30,000 sq ft. Landmark is owned by Mukesh Jagtiani, a non-resident
Indian. Lifestyle International Private Limited, formed in India recently, is a wholly-owned
subsidiary of the Mauritius-based Lifestyle International which, in turn, is wholly-owned by the
Landmark group. In India, according to Lifestyle International's marketing manager, Roshan
Mathew, the target is to "have 12 to 16 stores by 2005." These stores will sell all lifestyle
products, barring furniture, under one roof.

Immediate plans include opening a 46,000 sq ft store in Hyderabad, which Mathew terms "The
Millennium Store". The Hyderabad store will have additional sections for books and music,
unlike the Chennai store. Besides, as soon as Lifestyle gets a keenly awaited Foreign Investment
Promotion Board clearance for a Rs 100 crore investment, it will create outlets in Bangalore,
Pune, Mumbai, Delhi and Ahmedabad.

The Hong Kong-based Dairy Farm International, a 125 year old retail major with around 1,300
outlets across nine countries, recently converted its technical tie-up (since 1996) with the RPG
group's Spencer & Company for Foodworld into a 49:51 joint venture. The new venture is called
Foodworld Supermarkets Limited. DFI also has a 50:50 joint venture with the Indian group in
RPG Guardian. DFI is the retail arm of Jardine Matheson.

In Western markets, a familiar sight is the McDonalds golden arch. In India too McDonalds has
maintained its unique selling proposition -- providing the same quality of food and the same
ambience as anywhere in the world. Its raw material requirements are totally out-sourced. But
what it has taken care of is world class quality in all its raw material sourcing, with specifications
ensured strictly. The chain has been smart enough to tailor its products to the Indian
environment, adding fare for the large number of vegetarians who love fast food, and avoiding
certain beef and pork in deference to social sensitivities. In a market place where Kentucky Fried
Chicken failed to make an impact, McDonalds seems to be finding its place slowly but surely.
COMPANY PROFILE
Store One Retail India Ltd (formerly known as Indiabulls Retail Services Ltd) is the retail arm of
India bulls Group, a business conglomerate catering to the entire Indian consumption space. The
company operates multiple retail formats in both the value and lifestyle segment of the Indian
consumer market. They are engaged in retail business of lifestyle, food, home and personal care
products. The company has a brand presence with 44 stores located in eight cities with an
operation area of 596,000 square feet. Of these 44 stores, eight are lifestyle stores, which are run
as India bulls Megastore, 36 are super mart stores which are run as Indiabulls Mart Indiabulls
Megastores are one-stop lifestyle shopping destinations offering assortment across apparels,
accessories, fragrances, cosmetics, footwear, home furnishing and decor products. Indiabulls
Marts sell groceries and other daily need products in Mumbai, Pune, Nagpur, Ahmedabad, Jaipur
and Indore. Store One Retail India Ltd was incorporated on March 18, 2005 as Piramyd Retail
Ltd to engage in the business of retailing of apparel, food, home and personal care products. In
March 28, 2005, the company took over the net current assets and capital work in progress of the
retail business of Piramyd Retail and Merchandising Pvt Ltd for a total consideration of Rs 1,803
lakh. In April 1, 2005, they took over the fixed assets and net current assets of Crossroads
ShoppertainmentPvt Ltd for a total consideration of Rs 234.6 lakh. The company commenced
their operation by taking over the retail business at 3 megastores previously operated by Piramyd
Retail and Merchandising Pt Ltd in the cities of Mumbai, Pune and Nagpur as well as 5
supermarkets operated in the past by Crossroads ShoppertainmentPvt Ltd. During the year 2005-
06, the company made an initial public offer of 9,000,000 equity shares having a face value of Rs
10 each at a premium of Rs 110 per share, aggregating to Rs 108 crore. In January 2006, the
company launched 2 Megastores and 3 supermarkets. During the year 2006-07, the company
aligned TruMart, the FHPC Supermarket business of the company as a separate SBU. TruMart
entered new cities like Nagpur, Jaipur and Ahmedabad and taking their number of operating
stores to 26.In September 2006, they launched their second megastore in Pune and in December
2006, they launched their first store in Jaipur. During the year 2007-08, Indiabulls Wholesale
Services Ltd, a 100% subsidiary of Indiabulls Real Estate Ltd acquired 12,783,000 Equity shares
of the company representing 63.92% of the paid-up capital of the company from their erstwhile
promoters. Thus, the company became the subsidiary of Indiabulls Wholesale Services Ltd. In
June 2007, the company launched 4 supermarkets at Ahmedabad, 2 supermarkets at Jaipur and 1
supermarket at Nagpur. In September 2007, they launched 2 supermarkets at Indore & 1
supermarket at Jaipur and Ahmedabad. In December 2007, they launched 1 Megastore at
Shalimar Bagh, Delhi and 1 Mart each at Indore and Mumbai. In March 2008, they launched 3
supermarkets at Ahmedabad and 1 supermarket each at Bhopal and Jaipur. They also reopened 1
Megastore in Shahdra, East Delhi and launched a new Megastore in Ahmedabad. The company
changed their name from changed from Piramyd Retail Ltd to Indiabulls Retail Services Ltd,
pursuant to acquisition of controlling majority stake in the company by an Indiabulls Group
company with effect from May 22, 2008. In June 2008, the company launched 2 supermarkets, 1
each at Rajasthan and Madhya Pradesh. As a part of their restructuring initiatives, the company
closed 7 megastores, 30 marts and opened 1 hypermart during the current financial year 2008-09.
The company changed their name from Indiabulls Retail Services Ltd to Store One Retail India
Ltd with effect from October 6, 2009.
 LITERATURE REVIEW
1. Introduction
The Government of India initiated its own public distribution system years back by starting
ration shops in addition to canteen stores department for Defence personnel that was a kind of
organized retailing. It also provided support to rural retail initiatives by constituting the khadi
and village industries commission. The emergence of organized retail chains was seen in the
1980s when textile companies such as Bombay Dyeing, Raymonds, S Kumar and Grasim set up
their own stores. In January 2006, the Union Cabinet approved the policy on foreign direct
investment (FDI) in retail to further simplify procedures for investing in India and to avoid
multiple layers of approvals required in some activities. To facilitate easier inflow, FDI up to
100% was allowed under the automatic route for cash and carry wholesale and export trading.
However to protect the interests of Indian retailers, the FDI up to 51% was permitted in single
brand retail. However, we are currently confronting the political disturbances due to proposal
for FDI in multi-brand retail in India. On the other hand we are experiencing the concept of
shopp-tainment in the malls and business centers. Retailing is transforming to be smart and
techno-savvy. The total concept and idea of shopping has undergone an attention drawing change
in terms of format and consumer buying behavior in India. Modern retailing has entered into a
retail market in India. The future of Indian retail industry looks promising with growing of the
market, with the government policies becoming more favorable and the emerging technologies
facilitating operations.

2. Objectives Of Study

i) To compile and classify various research findings regarding organized retailing and its impact
on traditional retailing in India.
ii) To analyze and discuss the common findings of the studies referred.

3. Detailed Review Of Literature

Parasuraman et al. (1980s) conducted an exploratory investigation in the attempt to define

service quality and develop a model of service quality. The results showed that regardless of the
type of service, consumers used basically the similar criteria in evaluating service quality
(Parasuraman et al., 1985). They labeled those 10 criteria as service quality determinants.
Since then, service quality was defined through 10 dimensions: Access, Communication,
Competence, Courtesy, Credibility, Reliability, Responsibility, security, Tangibles and
Understanding/ Knowing the customer. Later, they were simplified into
five dimensions including Tangibles, Reliability, Responsiveness, Assurance and
Empathy.Dawar&Parkar (1994): Retailers reputation is a proxy for the retailers credibility and
can stand for signal of quality. The use of retailers reputation is specific when it applies to an
assortment of products carried within the store. Dabholkar et al. (1996) developed Retail Service
Quality Model (RSQS). Based on SERVPERF, RSQS includes 28 item scale, of which 17 items
are from SERVPERF and 11 items are developed by qualitative research. It composes of 5
dimensions, namely
Physical Aspects, Reliability, Personal Interaction, Problem Solving; and Policy.Sinha&Batra
(1999) also find the relationship between price consciousness and private label brand purchase to
be positive but also document that it can vary by different product categories. Shah (2001)
reported that imagine the Kerala is the home to the largest organized retail chain in the country,
there is margin free market (MFM), a 160 store chain selling almost everything from electronic
and electrical appliances to food products, beverages, FMCGs, stationary and goods. Das (2000)
revealed that the Indian situation is rather paradoxical. At $180 billion, the Indian retail business
contributes 10-12% of the GDP higher than the some western economies, where it averages 8%.
It revealed that India have the worlds thickest density of outlets at 5.5% for every 1000 people
between 12million retail stores, Indias per capita retail space is dismissal 2 sq ft per person.
Johnson (2000) reported that real estate is an issue in India, also labor is cheap, so getting
products delivered home is a whole lot easier and he supposes the internet will facilitate such
shopping. India could actually leapfrog the west where we will probably have drive through
shopping malls. In India, your friendly local guy will deliver the other opportunity is
convenience stores to do things that families do not have the time for, if both husband and wife
are working. Poviah and Shirali (2001) were of the viewpoint that shopping malls are classic self
service 4000- 20000 sq ft. stores with shopping carts, as popularized in India by crazy boys film,
with typical focus on regular groceries, household goods and personal care products. Tesco and
Nilgiris. India is namely a groceries market and here, shopping malls have not been able to eat
into the business of kriyana shops. While the housewife might pick up her shampoo at a
shopping mall, she continues to use her local cart pusher for daily needs such as fresh vegetables.
In fact, so far organized Indian retailing has enveloped only the middle section (self esteem,
social recognition) of Maslows pyramid. Purohit&Srivastava (2001): The retailers reputation is
a high-scope cue for consumer to judge the product quality and make purchase decision. Their
findings show that a low-quality brand cannot convey improvement in product quality through a
warranty unless it goes through a reputable retailer.
Chandrasekhar Priya (2004) selected 10 particularly ripe areas which should be hot markets for
at least the next several years. These comprised of China, Hong Kong, Taiwan, India etc.
Shekhar M. Raj (2005) in a study found that whether the hegemony of high streets over Indian
retail can continue. Glitzy malls are coming up by dozen all over the county. With their snazzy
interiors, an offering that is a mix of shopping, entertainment and leisure, and facilities like
packing and childcare, the malls are beginning to pull the traffic from the traditional markets.
Today we are much more comfortable with the quality the brands are connoted than the word of
a shopkeeper about the quality of product. More families now prefer to shop on weekends,
preferably not too far from the home and away from madden crowds and even more madding
parking attendants. So it is showing that now Indian consumer is ready for organized retail. As
the most likely time for shopping is the weekends so the families also look for some
entertainment, eating courts and recreational activities. To fulfill all these needs we have the
latest form of shopping malls where all these needs of average customer can be taken care of
SubhashiniKaul (2005) concluded that consumers satisfied with the stores service quality are
most likely to remain loyal. Service quality is being increasingly perceived as a tool to increase
value for the consumer, as a means of positioning in a competitive environment to ensure
consumer satisfaction, retention and patronage. Despite its strategic importance, Indian retailers
did not have an appropriate instrument to measure service quality. This study examined the
Retail Service Quality Scale (RSQS)
developed in the U.S for applicability to Indian retail and the scale had been found appropriate.
Rao(2006) also states that security, trust, internet speed, responsiveness significantly affect
online purchasers behavior. Thirumoorthi, P. (2006) concluded that the company must
concentrate more on high margin to create a better performance. Importance must be given to
sales promotion. The retailers must also be asked to give more displays and discounts.
Tamilarasan, R. (2007) studied in depth the variety of store dimensions and service quality
dimensions and revealed that all these dimensions have
to be of the changing and emerging retail scenario in India.
Malliswari, M. (2007) indicated that Indian consumer is now sowing the seeds for an exciting
retail transformation that he already started bringing in larger interest from international brands/
formats.
With the advent of these players, the race is on to please the Indian customer and its time for
theIndian customer sits back and enjoys the hospitality to be integrated like a king.
ParomitaGoswami(2007) conducted a study on how college students in urban areas shopped for
apparels. The factors investigated for the study were brand conscious and needed variety and
best quality for their apparel purchase. Furthermore, parents influence their purchase behavior
the most, followed by peer store approval, friends influence and peer product influence. Deb
and Sinha (2007), attempted to develop a model to measure service quality by the relationship
between service quality and customers commitment to retain a relationship. They focused on
price, brand name, store name and levels of advertising and collected data from 350 malls via
questionnaire. The model is relevant for marketers as a tool to quantify their performance. Sinha
and Kar (2007) investigated modern retail developments and growth of modern formats in India.
They also analysed the challenges and opportunities available to the retailers to succeed in India
and concluded that retailers need to innovate in designing the value proposition, deciding the
format to deliver to the consumer and also strive to serve the consumer better, faster and at less
cost. Vijayraghavan K. and Ramsurya M.V. (2007), discussed the topic in their study that it is a
matter of debate as to whether Indian kirana stores would be able to survive in the face of
competition from organized modern trade grocery retailers. Although traditional retail currently
constitutes over 95% of the total sales in the country, smaller kiranas that are unable to compete
with new age retailers in terms of variety and scale have begun losing volume in several parts of
the country.
AnuradhaKalhan (2007) found in her study by taking small sample survey of the impact of malls
on small shops and hawkers in Mumbai points to a decline in sales of groceries, fruits and
vegetables, processed foods, garments, shoes, electronic and electrical goods in these retail
outlets, ultimately threatening 50% of them with closure or a major decline in business. Only
14% of the sample of small shops and hawkers has so far been able to respond to the competitive
threat of the malls with the institution of fresh sales promotion initiatives. VaishaliAggarwal
(2008) concluded that among the factors important for customer satisfaction, quality,
convenient location and availability got the highest rating in term of their importance to the
customer on a 5-point scale. Customers were not very price sensitive and they did not pay more
attention to the display and ambience of the store. SunaynaKhurana (2008) examined the
differences in consumers expectations and perceptions for service quality they received while
shopping at various retail stores in Haryana. She also considered consumer demographic
characteristics for the study. Statistically, she identified five prime factors for service quality viz.
physical aspects reliability, personal interaction, problem-solving, and policy. Her study
concluded that a wide disparity existed between expectations and perceptions for personal
attention and
policy factor. Alisa Nilawan (2008) conducted a study to survey customers satisfaction with
Metro Mall at Sukhumvit station and revealed that food and beverage shops, reasonable prices
compared with the product quality modern decoration and location of mall, word of mouth;
availability of discount coupons and prompt and attentive services of salespersons were the main
factors influencing customers on visiting Metro Mall at Sukhumvit station. Sonia (2008)
conducted a study on customers perception towards Mega Marts in Ludhiana. The author
highlighted that customers preferred a particular mega mart due to its convenience in terms of
space, product range, billing system, multiple choice, etc., and location at an easy approach and
safety. She found that in Ludhiana, customers are generally not satisfied with the safety measures
and parking facilities at mega marts. She concluded that customers preferred cash discount
offers, followed by free gifts and financing facility. Quality and discount were the most
important factors in influencing customers decision to purchase. Dr. Biradar retail. (2008) in
their article pointed out that the organized retail sector is registering tremendous growth fuelled
by the unleashed spending power of new age customers who have considerable disposable
income and willingness to have new shopping experience. It is emphasized that Indias top
retailers are largely lifestyle, clothing and apparel stores followed by grocery stores. The paper
further mentions that increasing number of nuclear families, working women, greater work
pressure and increased commuting time; convenience has become a priority for Indian
consumers. All these aspects offer an excellent business opportunity for organized retailers in the
country. Goswami P. and Mishra M.S. (2009), conducted a study that was carried across four
Indian cities- two major metros (Kolkata and Mumbai), and two smaller cities (Jamshedpur and
Nagpur) with around 100 respondents from each city. The results suggest Kiranas would do best
to try and upgrade in order to survive. Given that modern trade outlets have deeper pockets and
can afford to make mistakes and get away with it in the short term, Kiranas have to stay alert, try
to upgrade and continue to serve customers well, while concentrating on innovating, evolving
and remaining efficient on retailer productivity scores.
V.Ramanathan (2009) in the article mentioned that the entry of organized retailers with their
completely integrated marketing practices, franchising agreements, contractual selling, joint
ventures and co- promotions creates a profound threat to unorganized retailers and compels them
to change their style of doing business from convenience to intensive. The article reveals that
unorganized retailers dealing in clothing and footwear, furniture and appliances, and beverages
were among the most affected. Further the author suggests that the traditional retailers enjoyed
the advantages of proximity to the customers in neighborhood areas, long standing personal
relationship with customers and providing home delivery and credit facility. Prasad & Ansari
(2009) stated that web store environment and customer service have significant impact on the
willingness to buy from online retail stores. They have also identified that customer service and
online shopping enjoyment have significant impact on the willingness to buy from online retail
stores than the perceived trust. Chandan A. Chavadi and Shilpa S. Koktanur (2010), tried to find
out the various factors driving customers towards shopping malls and consumer buying response
for promotional tools. They found four major factors that drive the customers towards the
shopping malls. Those factors are product mix, ambience, services and promotional strategies.
Customers consider fast billing, parking facility and long hours of operations as prime services.
Mittal and AnupamaParashar(2010) explained that irrespective of area, people prefer grocery
stores to be nearby, product assortment is important for grocery. Ambience of the grocery stores
has been perceived differently by people of different areas and prices are equally important for
all grocery. Perception and preference towards importance of service was also different across
different areas. SandipGhoshHazra and Kailash B.L. Srivastava(2010), found that firms are using
service enhancement and are developing a range of techniques to measure service quality
improvement. The competition between private and public sector has resulted in an increased
need for service providers to identify the gaps in the market in order to improve service
provisions to retain customers. Satisfactory service quality is an indispensable competitive
strategy. They concluded that customer value for four dimensions of perceived service quality
i.e. assurance-empathy, tangibles, security and reliability. S.P.
Thenmozhi Raja, D. Dhanapal& P. Sathyapriya(2011) explained that the most critical challenge
for a business is the improvement of service and product quality. They also explained that
perception of retail service quality varies across different cities, the retailers can meet the
customer expectations based on the factors drive them. Sharif Menon(2011) explained that brand
identities were designed to reassure a public anxious about the whole concept of factory
produced goods. Brands have transformed the process of marketing into one of perception
building, so, image is now everything. Customers make buying decisions based around the
perception of the brand, rather than the reality of the product.
Perception is a fragile thing. India is lucky to have international brands, but the Indian consumer
is very choosy in selecting the brands and especially in the consumable sector. The research
brings out that importance of taste is one the important factor for the success of a brand.
SandhyaJoshi(2011) explained that the surest path to a strong business bottom line is assuring
that customers receive the highest appropriate quality of service across multiple applications and
delivery mechanisms. Customers make their purchasing and defection decisions on the basis of
the perceived value of the service package being offered, rather than simply their current levels
of satisfaction. Fulbag Singh and DavinderKaur(2011), explained that customer perception of
service quality is concerned with the judgment and attitude of the customer towards quality of
the service after availing the same and in turn this perception decides whether the service has
provided more than what he expected then he will be satisfied and if he perceives it to be less
than his expectation then he will be dissatisfied. Therefore, customer satisfaction is the
summation of customers all expressions of service quality and depends upon his own perception
and expectations. Fulbag Singh and DavinderKaur(2011), explained that an
organization cannot survive in the long run if its customers are not satisfied. Customer
satisfaction is the summation of customers all expressions of service quality and depends upon
his own perception and expectations. Komal Chopra (2011) pointed following prominent Indian
retailers: Future Group: Future group started its operations in 1993 with Pantaloon Retail as the
flagship enterprise. The company operates on a multi-format retail strategy. Its sub-brands are
Pantaloons, Central, Big Bazaar, Planet Sports, Home Town, e-Zone, Aadhaar, Future Generali,
Future Mediap, Blue Foods, Spaghetti Kitchen, Noodles Bar, The Spoon etc. K. Raheja Group:
The Raheja Group launched its retail venture Shoppers Stop in 1991. Shoppers Stop sold a
range of branded apparel and private labels under the categories of apparel, footwear, fashion
jewellery, leather products, accessories and home products. HomeStop, Desi Cafe, Hypercity,
Inorbit, Brio etc. Reliance Retail: Reliance Retail Ltd. (RRL), the retail venture of Reliance
Industries Ltd., launched its first store in November 2006 through its supermarket format called
Reliance Fresh. Other stores are Reliance Digital, Reliance Mart, Reliance Timeout, Reliance
Trends, Reliance Jewels, Reliance Autozone, Reliance Wellness etc. Tata Group: Trent, the retail
arm of Tata group launched operations in 1998. The portfolio of Trent consists of lifestyle chain
called Westside, a hypermarket chain called Star Bazaar, books and music chain called
Landmark and family fashion stores called Fashion Yatra. The Tatas also run electronic
megastores under the brand Croma, watch and eye care stores under the brand Titan and
jewellery stores under the brand Tanishq. RPG Group: The retail arm of RPG, called
Spencers Retail was established in 1996.
Spencers focused on supermarket and hypermarket formats with verticals like food and
beverage, electrical and electronic goods, home and office essentials, garments and fashion
accessories, toys, personal care, music and books. Aditya Birla Group: Aditya Birla Retail
Limited, the retail arm of Aditya Birla Group, ventured into retail into retail in 2007 by acquiring
Trinethra, a south-India based chain of stores. The retail chain focused on supermarkets called
more and hypermarkets called more.MEGASTORE. By 2009, Aditya Birla Retail had more
than 600 supermarkets across India and was planning a massive expansion in the hypermarket
format. Vishal Group: Vishal Megamart, the retail venture of Vishal Group, launched the first
hypermarket in India in 1986. Since then, Vishal Megamart underwent a massive expansion and
by 2009, it had presence in 100 cities and 24 states of India.
RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making deductions and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research.

Research Objectives
To study the tastes, preferences, and buying behavior of consumers in case of products &
goods.
To analyze buying behavior segment of consumers and their needs/demands.
To recommend strategies to increase sales in the Retail Market.

The Main Objectives Of This Study Are:

Plans & Working of improving sales.

Analysis of the product sold
Comparative study with the competitors

Research Design
Type Of Research: -

Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; she can only
report what has happened or what is happening.

Data Sources
There are two types of data.
Source of primary data for the present study is collected through questionnaire and answered by
consumers of Retail Market. The secondary data is collected from journals, books and through
Internet search.
Primary Data
The data that is collected first hand by someone specifically for the purpose of facilitating the
study is known as primary data. So in this research the data is collected from respondents
through questionnaire.

Secondary Data

For the Retail Market information I had used secondary data like brochures, web site of the
company etc.
The Method used by me is Survey Method as the research done is Descriptive Research.

Research Instrument
Selected instrument for Data Collection for Survey is Questionnaire.

Sampling Techniques: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the probability
sampling design the sampling design chosen is stratified random sampling.
Because in this survey I had stratified the sample in different age group, different gender and
different profession

Sample Size
Sample size is 50

Steps Followed In Completing The Study

(i) Libraries at (a) Indian Council for Applied Economic Research (ICAER), (b) Council of
scientific and industrial Research (CSIR) (c) PHD chamber of commerce, are visited.
Management / marketing books, journals are consulted.
(ii) Internet sites containing information on Retail Marketing & marketing are browsed.
(iii) Sample survey was conducted.
(iv) Data was thoroughly checked for error.

Data processing methodology

(i) Once the primary data have been collected, they are edited inspected, corrected and
modified.
(ii) Tabulation bring similar data together and totaling them in meaningful categories.
Questionnaires are edited both in the field and later in home. Field editing took place just often
the interview. Generally editing is required for open type of questions. Brief notes or symbols are
frequently used during the interview to initially record the interviewers response since it was not
desirable to interrupt the flow with lengthy note taking. Then immediately after the interview,
brief notes are respondent. The responses are thoroughly checked in home for incorrect,
inconsequential or contradictions categories are developed only often the replies has been
reviewed. This review provided a feel for the pattern of answers and thus determine what
categories best represent the answers.

The collected data are placed into an order. Percentages of respondents answered similarly are
calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from
the gathered data. Interpretation changes the new information immerging from the analysis into
information that is pertinent or relevant to the study.
 ANALYSIS OF DATA

Q1
a) 38%
b) 62%

GENDER

MALE
38%

FEMAL
62%

Q2
a)16% b)40%
c) 36% d)8%
45
40
35
30 A
25 B
20 C
15 D
10
5
0
AGE

Q3 a) 68% b) 32%
 Marital Status

Unmarried
32%

Married
68%

Q4 a) 6% b) 18% c) 39%
d) 28% e) 9%

Occupation
House Wife Paid Employment Business Retired Student

39

28

18

9
6

Q5 a) 46% b)31% c) 19% d)4%

 A
A B C D

4%

19%

46%

31%

Q6 a)7% b)42% c)51%

A B C

51

42

SEC

Q7 a) 48% b) 41% c)11%

 Family Size
60

50

40

30

20

10

0
A B C

Q8 a) 36% b) 29% c) 18%

d)14% e)3%

Distance travelled to store

A B C D

3%

14%

36%

18%

29%

Q9 a)15% b)34% c)43% d)8%

 Mode of transport used for shopping
A B C D

8% 16%

42% 34%

Q10 a)11% b)17% c)26% d)37% e)9%

Chart Title
Series 1 Series 2 Series 3 Series 4 Series 5

37

26

17

11
9

Q11A)
a)9% b)11% c) 17% d)26% e)37%

Neighbourhood Kirana stores

A B C D E

9% 11%
37%
17%

26%

B)
a) 39% b)23% c)16% d)14% e)8%

Supermarkets
A B C D E

8%

14%
39%

16%

23%
Q12A)
a)5% b)12% c)9% d)34% e)40%

Neighbourhood Kirana stores

A B C D E

5
12

40
9

34

B)
a)11% b)14% c)8% d)49% e)18%

Supermarkets

A B C D E

18 11
14
8

49
Q13A)
a)49% b)27% c)16% d)8%

Neighbourhood Kirana
stores

A B C D

8%

16%
49%

27%
B)
a)47% b)24% c)19% d)10%
A B C D

10%

19%
47%

24%
Conclusion Was Drawn Based On The Survey Findings

1. The India Retail Industry is the largest among all the industries, accounting for over 10 per
cent of the countrys GDP and around 8 per cent of the employment.

2. The Retail Industry in India has come forth as one of the most dynamic and fast paced
industries with several players entering the market. But all of them have not yet tasted success
because of the heavy initial investments that are required to break even with other companies and
compete with them.

3. The India Retail Industry is gradually inching its way towards becoming the next boom
industry.

4. The total concept and idea of shopping has undergone an attention drawing change in terms of
format and consumer buying behavior, ushering in a revolution in shopping in India.

5. Modern retailing has entered into the Retail market in India as is observed in the form of
bustling shopping centers, multi-storied malls and the huge complexes that offer shopping,
entertainment and food all under one roof.

6. A large young working population with median age of 24 years, nuclear families in urban
areas, along with increasing workingwomen population and emerging opportunities in the
services sector are going to be the key factors in the growth of the organized Retail sector in
India.

7. The growth pattern in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen to enter the India Retail
Industry.

8. In India the vast middle class and its almost untapped retail industry are the key attractive
forces for global retail giants wanting to enter into newer markets, which in turn will help the 9.
9. India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually.
Modern retail in India could be worth US$ 175-200 billion by 2016.

10. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail
Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year.
11. The future of the India Retail Industry looks promising with the growing of the market, with
the government policies becoming more favorable and the emerging technologies facilitating
operations
12. Finally recommendation was made to improve the sales strategy of Retail Marketing to
increase the sales volume in segment.

Limitations Of Research
The geographical area was very much limited to residential area & so the results are not
particularly reflection of the current behavior.

Biases And Non-Cooperation Of The Respondents.

The collected data are placed into an order. Percentages of respondents answered similarly are
calculated and placed in a table. Then this is interpreted. This involved drawing conclusion from
the gathered data. Interpretation changes the new information immerging from the analysis into
information that is pertinent or relevant to the study.

Due to limited time period and constrained working hours for most of the respondents, the
answers at times were vague enough to be ignored.
CONCLUSION

The retail sector has played a phenomenal role throughout the world in increasing productivity of
consumer goods and services. It is also the second largest industry in US in terms of numbers of
employees and establishments. There is no denying the fact that most of the developed
economies are very much relying on their retail sector as a locomotive of growth. The India
Retail Industry is the largest among all the industries, accounting for over 10 per cent of the
country GDP and around 8 per cent of the employment. The Retail Industry in India has come
forth as one of the most dynamic and fast paced industries with several players entering the
market. But all of them have not yet tasted success because of the heavy initial investments that
are required to break even with other companies and compete with them. The India Retail
Industry is gradually inching its way towards becoming the next boom industry.

ANNEXTURE

QUESTIONNAIRE FORMAT
QN. 1) Gender
( a) Male ( b ) Female

QN.2) Age
(a) 20 30 Years ( b) 30 40 Years
(c) 40 50 Years ( d) 50 60 Years

QN.3) Marital Status

( a ) Married ( b ) Unmarried

QN.4) Occupation
(a) House Wife (b) Paid Employment

(c) Business (d) Retired (e) Student

QN.(5) Monthly Household income

(a) < INR 10,000 (b) Rs. 10,000 20,000

(c) Rs. 20,000 30,000 (d) > INR 30,000

QN.(6) Socio Economic Class (SEC)

(a) SEC- A (b) SEC- B (c) SEC- C

QN.(7) Family Size

(a) 1 3 (b) 3 5 (c) 5 & More

QN. (8) Distance travelled to store

(a) < 1 Km (b) 1 to 2 Km (c) 2 to3 Km

(d) 3 to 4 Km (e) > 4 Km

QN.(9) Mode of transport used for shopping

(a) Two Wheeler (b) Four Wheeler
(c) Public / Private transport (d) None

QN.(10) How often do you shop for food and grocery products s for you and your
house hold consumption?
(a) Never ( b) Rarely (c) Occasionally
(d) Usually e) Always

QN.(11) Please indicate how often you shop at the following types of retail format
when shopping for food & grocery products.
1 2 3 4 5
Never Rarely Occasionally Often Always

NeighbourhoodKirana stores
Supermarkets

QN.(12) How frequently do you purchase food and a grocery product from
particular retail format?

Twice Once Once Once Once

in in in in in six
Week Week fortnight month months
(a) NeighbourhoodKirana
stores

(b) Supermarkets

QN.(13) Please indicate the amount of money spent at the following store formats
for purchasing apparel (men, women, kids) products per month?

Amount Spent / <INR3000 INR3000 - 4000 INR 4000-5000 >INR 5000

Retail formats
NeighbourhoodKirana
stores

Supermarkets