UNIVERSITY OF MUMBAI

PROJECT ON

A STUDY INTO THE CONSUMER PREFERENCE TOWARDS CROMA

MASTERS OF COMMERCE (BUSINESS MANAGEMENT) SUBJECT: RESEARCH METHODOLOGY SEMESTER III 2013-14

IN PARTIAL FULFILLMENT OF THE REQUIREMENT UNDER SEMESTER BASED CREDIT AND GRADING SYSTEM FOR POST GRADUATE (PG) PROGRAMME UNDER FACULTY OF COMMERCE

SUBMTTED BY ALI JAMAL ROLL NO. 24

PROJECT GUIDE DR. MS RAJESHWARY G. K.P.B. HINDUJA COLLEGE OF COMMERCE 315 NEW CHARNI ROAD MUMBAI 400004

M.Com (BUSINESS MANAGEMENT) 3rd SEMESTER

A STUDY INTO THE CONSUMER PREFERENCE TOWARDS CROMA

SUBMITED BY
ALI JAMAL ROLL NO. 24

CERTIFICATE

This is to certify Mr. ALI JAMAL of M.Com Business Management semester 3rd 2013-2014 has successfully completed the project on A Study into the Consumer Preference towards Croma under the guidance of Dr. Ms Rajeshwary G.

Project Guide

_________________________

Course Coordinator

_________________________

Internal Examiner

_________________________

External Examiner

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Principal

_________________________

Date: ________

Place: Mumbai

DECLARATION

I Mr. ALI JAMAL the student of M.Com Business Management 3rd Semester (2013-2014) hereby declare that I have completed the project on A Study into the Consumer Preference towards Croma

The information submitted is true and original to the best of my knowledge.

ACKNOWLEDGMENT

My sincere Thanks to Dr. Ms Rajeshwary G, K.P.B. Hinduja College of Commerce, Mumbai for her valuable guidance and support at all time. Also, I would like to thank and remember my neighbours & friends for their effort and helping hand. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.

ALI JAMAL Roll No. 24 M. Com - III Semester

TABLE OF CONTENT

Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 Introduction

TOPIC

PAGE 1 4 5 6 8 9 13 20 27 31 33 35

History & Background Mission ,Vision & Values Objectives of the Study Significance of the study SWOT Analysis Initiatives towards the Customers Factors Behind the Success of Croma Competitors of Croma Industrial Growth Of Croma Conclusion Questionnare & Bibliography

INTRODUCTION
Tata croma, they help you buy..It is cromass motto.. Croma is promoted by Infiniti Retail Ltd, a 100% subsidiary of Tata Sons. Woolworths, one of the worlds leading retailers, provides technical and strategic sourcing support, ensuring that you buy nothing but the best. Croma's first store opened on October 9, 2006 at Juhu in Mumbai, and it's rolling out many more stores across India. So, no matter where you are, if you want high-quality products, backed by advice you can trust, head for the nearest Croma. Infiniti Retail Limited is a 100% subsidiary of Tata Sons. The company has launched Croma, a national chain of mega stores of consumer electronics and durables. Infiniti Retail Ltd., owns and runs Croma's retail operations in India, while Woolworths provides technical support and strategic sourcing facilities from its global network. Croma has stores in 7 places in india,namely gujarat,delhi ncr,pune,mumbai,chennai,hyderabad and bengaluru..the total numbers of stores it has is approximately 50 across india.croma has also opened croma zip stores in many airports of the country ex.mumbai. You can shop for 6000 products across eight categories in a world-class ambience.at croma Friendly, theyll-trained and knowledgeable store advisors will give you sound and personalised advice so that you can make informed buying decisions about any technology or consumer electronics product.

The Croma chain of stores offers, in different cities of India, a wide range of consumer electronics products across categories and brands. The stores are spread over 12,000 to 20,000 sq ft and have more than 6,000 products and 180 brands in eight categories: home entertainment, small appliances, white goods, computers, communication, music, imaging and gaming software CROMA SO FAR Cromas first store came up in 9th October, 2006. At Mumbai, within 6 month second store came up at Malad in Mumbai. The store has wide display provided detailed information of the product which made decision quicker for the customer and reduced service time. Infiniti Retail has decide to open 28 stores by the end of 2007. Croma wanted to be the best in the business of retail by providing everyday best price and deep discounting because they dont want to lose any customer. Croma took the help of durables from Woolworth because Croma didnt had it and it was trying to establish Croma wanted to provide a wide range of variety to its customers. Tata invested Rs. 320 Crore in Croma to increase it retail stores into Bangalore and Delhi by December 2007. In March 2008, Dell ties up with Croma. With increasing inflation, Croma has decided to improve its logistics efficiencies. Croma outsourced its product through Woolworth so during recession, they decide to get the products from the local vendors like LG, Samsung, Sony abd HP. This saved the cost in the supply chain and increased their bottom-line. In 2009, Croma started selling the application forms for Tata Nano; they will give discount of Rs. 300 in selected products across any range for every purchase of application form. Nano will also be find space in the retail store. It was decide to open 52 retail store by FY 10 and 100 retail stores by FY12. Tata group invested Rs. 150 Cr for the brand expansion of Croma. In September

2009 Tata sons decide to dilute its stake by selling some percentage of stake to the Private Equity investors because it wanted to focus on its own brand and product categories. In 2010, Croma launched its own brand of LED and LCD TVs to increase their sales to 20%. By June 2010, the marginal issues have come up bettheyen the local vendors, because they have include the local vendors in their supply chain. From the start of Croma in 2006 till today, Croma has registered two digit growths. It has also included the local vendors which has saved their cost but increased their profits. Croma has took the help of Woolworth for sourcing, strategies and technical support. Croma has expanded throughout the country and is still expanding with megastores and zip stores formats. It has also started his own brand has established itself in the country.

Market Share
Croma holds a good market position of about 18% in consumer durable and electronic retail segment. The biggest competitor is eZone which is 37% strong follotheyd by NEXT with 27%, reliance digital has 13% and others at about 5%. STORES Tata Croma is operating in two formats, the Megastore and the Zip store. The Zip stores are found in airports also.Megastores are large format stores, the store size ranges from 15000 20000sq. ft, is theyll planned and designed for world class in store experience and backed by robust after sales service. The stores are in Mumbai, Pune, Bangalore, Chennai, Aurangabad, Delhi NCR, Hyderabad, Punjab and Gujarat. The stores in Mumbai ranges from 15000-22000 sq.

ft in area, in Bangalore the size is 22.000 sq. ft. the Croma Zip stores has size ranges of 2500 6000 sq. ft. There are total 62 stores consisting of 38 stores in the high streets and 24 stores in the malls spread over 7 cities and 2 states in India. There are 6 Zip stores; 1 in Santacruz airport, Vashi and Fort in Mumbai, 1 in Delhi airport, 1 in T3 Domestic airline and T3 international airline. DISRTIBUTION OF STORES ACROSS INDIA.

CITIES/STATES MUMBAI

HIGHSTREETS 6

MALLS 8

ZIPSTORES 3(Santacruz Airport,Fort,And Vashi)

PUNE BENGALURU CHENNAI HYDERABAD AURANGABAD DELHI NCR

4 10 4 3 9

2 2 1 5

3(Delhi Airport, T3 domestic and T3

international) PUNJAB (Jalandhar 2 -

and Amritsar)

MISSION
The mission pf the enterprise is to create unique customer satisfaction thorough innovation , quality , productivity,human resource development continuously strivingf o r our approach.| The overall mission of Croma is to be the first choice of the customers excellence with pride in our values a n d confidence in

VISION
The vision of CROMA is to be the number onein the retail in electronics and durablesproducts in India, through quality productsand delivery services (for larger products e.g..Washing machine, refrigerator etc ) CROMAshould imbibe a world class system to bringin delight to all our associates and the societyatlarge.

VALUES
Leadership With Trust As any 'Tata person' will tell you, there's something positively distinctive, something less than completely explainable, about working for the group the experience is cast in a hue quite different from the ordinary The Tata name in itself is a unique asset representing leadership with trust.

By developing a structure, systems and a workplace culture that provides challenging jobs, rewards performance and delivers opportunities continuously, we are striving to get the outof,our,most,valuable,assetourpeople. Powering that quest is an entire range of human resource initiatives aimed at realizing the potential of and, consequently, maximizing the returns from Tata employees. Robust leadershipdevelopment systems that accelerate the development of current and potential leaders, a performance culture that's calibrated through rigorous processes, and reward mechanisms that are amongthebestinthecorporate world. best

Our relationship with our employees is a bond that continues to be nourished with compassion and care. The richness of this relationship, fashioned by a tradition of compassion and empathy, represents a workplace culture that goes way beyond work. As an example we can cite that long before many western industrial nations followed suit, this company introduced the eight-hour working day (1912), maternity leave (1928) and even profit sharing for its employees (1934). The Tatas have implemented many such firsts - the list is long and still growing. As a part of the TATA group we are committed to the tradition of always being fair and benevolent to our people.

Expansion Plans
Tata Croma is the India's first national, large format, retail chain for consumer electronics and durables.Croma is owned and run by Infiniti Retail Limited, a 100% subsidiary of Tata Sons. Woolworths Ltd, the Australian retail giant, provides technical support and strategic sourcing facilities from its global network. Brand Philosophy
If If If

service wasn't important. technology wasn't complex. variety wasn't confusing. have no reason to be in business.

We would We help

you buy.

At Croma, shoppers are offered one of widest ranges of products and brands in consumer electronics and durables and a shopping experience that's truly world-class. Shoppers can choose from a number of products across eight categories which are

1.Own brand of Tata Croma

2.Computer

3. Home Entertainment

4.Communication

5.Large Appliances

6.Small Appliances

7.Gaming

8. Imaging

Apart from that Croma, plans to launch new products in niche categories such as jewellery cleaners, renegotiate rentals with owners and increase its presence in metros to boost revenues.

The chain is planning to launch 10 to 15 new products in smaller home appliances and specialized wellness products and expand the current private label portfolio under the Croma brand.

Reason for selecting Tata Croma

Currently, Indias consumer durable market is estimated at Rs 32,000 crore. There is growing interest for new age products such as LCD-TVs and DVD players. Meanwhile, the penetration of the basic, largest dollar items such as ovens, washing machines and refrigerators is also increasing. India too, has witnessed a similar phenomenon, with the urban consumer durables market growing at almost 10 %p.a., andthe rural durables market growing at 25% p.a.

Tata Croma is a dominating player in this space. These retail chain are seeing sales growth of 15% month-on-month. The companys turnover is around Rs 1,000 crores. To make their presence in all over India Tata Croma has announced to open 100 croma stores within three years including 22 stores in the current financial year. This expansion plan is exclusively for the Class II and III towns. As Ranchi comes in the Class II towns & devoid of such type of Electronic retail chain, so we can plan to open the store in Ranchi.

They help you buy TATA CROMA, first store came up on October 9th, 2006. Infiniti Retail operates a
national chain of multi-brand electronics stores under the brand name Croma. It is a wholly owned subsidiary of Tata Sons, the holding company of the Tata Group.

The company, headquartered in Mumbai, has a technical and sourcing agreement with Australian retail giant Woolworths until October, 2011 when they parted. Under the arrangement Infiniti Retail owns and runs retail operations in India while Woolworths provides technical support and strategic sourcing facilities through its global network.

EXECUTIVE SUMMARY Retailing

Definition

Philip Kotler Retail includes all the activities involved in selling goods or services to the final consumers for personal or non-business use.

Meaning The word retail is derived from the French word retaillier which means to cut off or to break bulk.Retailing is the set of business activities that add values to the products and servicessold to consumers for their personal or family use All retailing is not done in stores.Example of non-store retailing include internet sales or direct sales or catalog sales.

OBJECTIVE OF THE STUDY

After almost five years of its inception the company isventuring into online retailing space. The company calls it a new strategy to tap the large number of net savvy customers and plans to cash on online retail space that is getting hotter with each passing day. A source from the company puts that it is eyeing on implementing some unique features like cash on delivery to its upcoming online shop so as to suit customers of all types. Tata Croma is also planning on adding 10 more stores to take the total count of its stores to 75 all over India. Already Tata Sons has allocated Rs. 200 crore for this exercise. Also, a dedicated after sales service facility is in the offing for its customers. For the first phase, the service centers would be opened at Delhi, Mumbai and Bangalore and cater to Croma branded products Competition But the going may not be easy for Tata Croma as there are established players in the space. For instance, the Future Group, with its online retail portal FutureBazaar.com is eyeing on having at least 10% of its total retail sales from this medium. Probably, they may have bigger plans for that to happen And other players including eBay, FlipKart etc. may also give a big competition to the upcoming Tata Croma online store. While eBay needs no introduction further in terms of its share of the cake, Flipkart, an upstart in this segment, is gaining much popularity these days owing to its dedicated services and support. There are others too that have established themselves quite theyll in online retailing. Product

6000 products, 180 brands, 50 categories 31% revenues from computer and laptops 6-8% from Croma label goods

Consumer durables and electronics include Televisions, Refrigerators, Air conditioners, washing machines, Kitchen appliances, Gaming devices, Computers and laptops, Mobiles and accessories, cameras, etc. Target Segment Value for money best products with reasonable pricing, Best discounts and offers, Warranties and guaranties, FINANCIAL POSITION OF CROMA Croma has generated 657 crore of 2008-09. Croma has generated around 1000 crore revenue at the end of 2009. Tata Group has invested around 50 crores capex in year 2009 into Croma. Company has recently received 200 crore from Tata group to fund network expansion and other activites. For Year 2010-11, Total Revenue for Infiniti Retails total revenue stood at Rs. 1549 Crore. But Company has not break even yet, althoughsince the last five years, Infiniti has managed to grow by over 50% annually.

Turnover Year 2007-08 2008-09 2009-10 2010-11 Revenue Rs 667 Cr Rs 1000 Cr Rs 1021 Cr Rs 1700 Cr

IMAPCT OF SLOWDOWN During the slowdown, Croma decided to go for revenue sharing because the rentals are and it constitutes 30% - 40% of the total cost per store. Croma also changed their supply chain by tying up with the local customers. The last slowdown has made all the retailers to work faster and also made Croma to act faster. Croma renegotiated, increased the retail size and revenue sharing during the slow down. During the recent recession, Croma decided to renegotiate the rental, controlling administrative expenses and investing in the IT firms to increase profits. At present, Croma has negotiated rental for 70% of its properties and is implementing ERP solutions by investing in IT which will not only save cost but also increase their profits.

DIFFERNECE BETTHEYEN TATA CROMA AND WOOLWORTH The 5 year old agreement bettheyen Tata Croma and Woolworth has come to an end and has lead to parting of the alliance. The Australian based company wanted to deepen the die-up if the Indian government allotheyd direct investment in the retail market. The Woolworths view this agreement in a big picture and they wanted to be as a sourcing company. The disagreement by the Croma has taken the Woolworths by surprise because they didnt find the reason as time bound. The reason for separation was not the investment or money matter. Croma has started building its warehouses in Mumbai, Bengaluru and Chennai though Infiniti Retail has been using the warehouses of the Woolworth for the retail business, Woolworth has been in the retail business for last 85 years and they have been providing strategy and technical help in the retail business for the development of Croma. Croma has been making business relation with large and small companies to carry on their business in the country. After having all the information gathered, both the companies decide to split. The split will effect Croma because till now they havent been established properly and they are making warehouse throughout the country for the supplies of the products. Woolworth has been providing them the retail strategy and technical support which Croma lacked and they will be still lacking. Croma is still developing so strategy is required to enter into every corners of the country which the Croma will lack and also the technical support.

Brand Philosophy
If service wasn't important, If technology wasn't complex, If variety wasn't confusing, They would have no reason to be in business,they help you buy. The reason why people could choose croma over other stores are many and a few stated by company are stated below::: Widest range of products Choose from 6000 products across eight categories They help you buy Sound and knowledgeable advice from theyll-trained advisors to help you make informed buying decisions. A name you can trust Croma is promoted by Infiniti Retail Ltd, an initiative of the Tata group, a brand that stands for trust and reliability globally. Customer commitment Croma not only gives you a world-class shopping experience, but also backs it with great aftersales service. Great deals and offers Croma periodically offers exciting deals on all your favorite products.

A first of its kind Consumer electronics and durable retail is a fragmented segment and has been largely catered to by regional players. Croma is the first of its kind

Large-format, specialist and pan-Indian

After information technology & outsourcing, retail is going to be the next big thing . Experts are predicting a gigantic shift from unorganized to organized retail. So, Indian retail is sitting at the threshold of a complete metamorphosis. Currently organised retail is only 3 to 6 per cent whereas the total retail turnover in India was 250 million dollars last year. But organised retail is growing at a speed of 40 per cent. The pie is large enough." At croma the buyer is spoiled for choice, with nearly 6,000 products and 180 brands to choose from.

RETAILING. Retailing includes all the activities selling goods or services directly to final consumers for personal ,non business use.CROMA IS A SPECIALITY STORE SELLING ELECTRONICS. SEGMENTATION. THE croma stores directly SEGMENTED the areas they wanted to work upon i.e cities with high per capita income or simply metro cities..the stores are designed in a contemporary fashion with state of the art architecture to give you the best experience while you shop.The plan was only made after realizing that every class needs a product which can deliver that required economy of scale in terms of price and quality. TARGETTING. Marketers in Woolworths,then decided to target people with disposable incomes in middle class and classes above them who have a sense of indulgence while shopping and are looking for the right price with quality and which can be tested physically with live demos. The value-based retail business has received a phenomenal acceptance from the customers POSITIONING: As it was a tata enterprise concern people wanted to believe it and as per the deals and the type of aggressive marketing they did with introducing low prices with combo deals and seasonal sales .basically,their concept and style worked for them.In the beginning only it got a huge customer base and if they look at the facts margin in durables retail is wafer-thin and hence scale is the single-most important thing.

COMPETITORS NOW Next,a venture by VIDEOCON group did a business of Rs 1,100 crore in FY 2010 and expects around Rs 1800 crore business this year. Croma, hotheyver, did much more business per store with its turnover touching Rs 1,000 crore in FY 10. Ajit Joshi, managing director and chief executive of Infiniti Retail, which runs Croma Stores, wants to double the turnover in this financial year. Next, the consumer durable and electronic chain promoted by the Videocon Group, is the largest player in the market and has 526 stores already over 10 times than Cromas. Next plans to add 300 more stores by the end of this fiscal. The other leading players in this segment are Kishore Biyani's Future Group which runs 36 standalone stores of eZone and 16 shop-in-shops, and Reliance Digital with 39 stores. Tatas have so far invested Rs 280 crore in the business.

SWOT ANALYSIS
Strengths: Being a tata concern it already had consumer trust and a huge capital.best marketers theyre taking up the task of marketing it.ex.ajit joshi.also On an average, a Croma store costs bettheyen Rs 3.5 crore and Rs 5 crore, including infrastructure and the inventory. that means foreseeing the market share tata could easily venture and succeed, the weakness:it was heading into a market which was already being dominated by next{videocon group},which plans to open another 300 stores soon ,reliance digital. the strategy had to be full proof .

OPPORTUNITIES: CROMA had a large opportunity ahead because of the increasing retail business.the sector is growing tremendously at a fast rate. THREATS: THREATS theyre the players in the market which had already invested huge in retailing and theyre having a good market share already..threats theyre also the local dealers and distributors which theyre blooming because of personal factors like loyalty etc. Croma has also got another Tata firm TCS to implement the SAP system in its back end operations. Earlier it was using the software of its back-end partner Woolworths. The Indian consumer durable and electronics market is estimated to be around Rs 80,000 crore and is expected to grow at 10-12 per cent this year. Croma is growing in terms of size, reach and turnover. Cromas growth rate so far is more than 50 per cent in terms of turnover and it has aggressive plan for the coming years. The companys strategy is to penetrate deeper in the cities it is operating in. This will aid operational efficiency and allow Croma to garner higher market share. electronics retail has not been impacted and has been growing at an impressive rate right through the festive period. Year 2010 will establish us as a leader in the electronics retail category.

BEHAVIOUR OF CONSUMERS:CONSUMER BEHAVIOUR As even I visited croma and analysed there for an hour .I found out dat customers when they enter get to see a lot of products and variations,they feel delighted because of the neat and good ambience and most of them do find a product which suits there need.And a salesman told me that most of customers look for products ranging bettheyen 15000-20000.they have over 6ooo types of products.consumers are accepting it and buying from it.it has increased its market share rapidly and croma intents to reach 100 store mark by 2012.. PRODUCTS: Apart from there in house products like lcd tv, led tv,washing machines,sofas,refrigerators, table fans etc. You can choose from a number of products across eight categories. Croma has over180 brands and 6000 products for you to choose from. Plush stores, spread over nearly 20,000 sq feet, with strategically planned products and category lay outs allow you to make hassle-free purchases.There are deals all the time that people go for.. Mothers day, Fathers day, Diwali, Christmas, they celebrate all occasions with offers that make them special for you. now it has over 100 consumer electronic products under its portfolio ranging from accessories like head phones, pen-drives to high-end products like LCD and plasma screen TVs..

ABOUT CONSUMER DURABLE GOODS INDUSTRY

Durable goods are those which dont wear out quickly, yielding utility over time rather than at once. Examples of consumer durable goods include electronic equipment, home furnishings and fixtures, photographic equipment, leisure equipment and kitchen appliances. They can be further classified as either white goods, such as refrigerators, washing machines and air conditioners or brown goods such as blenders, cooking ranges and microwaves or consumer electronics such as televisions and DVD players. Such big-ticket items typically continue to be serviceable for three years at least and are characterized by long inter-purchase times.

Performance

In the past 10 years, the global market has witnessed a surge in demand as economies such as Brazil, Mexico, India and China have opened up and begun rapid development, welcoming globalization with lan. The consumer durables industry has always exhibited impressive growth despite strong competition and constant price cutting, and the first contraction since the 2001 dot-com bust has been due to the global recession. Given the strong correlation between demand for durables (both new and replacements) and income, the industry naturally suffered during the 2008-2009 period. However, projections for current year going forward are very optimistic, as consumers resume spending, and producers launch new enticing variants to grab new customers. Leading players include Sony Corporation, Toshiba Corporation, Whirlpool Corporation and Panasonic Corporation.

Developing countries such as India and China have largely been shielded from the backlash of the recession, as consumers continued to buy basic appliances. In fact, China has been ranked the

second-biggest market in the world for consumer electronics. Despite the recession, their strong domestic economy and growing high-income population have buoyed demand leading to aggressive market growth.

There is growing interest for new age products such as LCD-TVs and DVD players. Meanwhile, the penetration of the basic, largest dollar items such as ovens, washing machines and refrigerators is also increasing. India too, has witnessed a similar phenomenon, with the urban consumer durables market growing at almost 10 %p.a., and the rural durables market growing at 25% p.a. Some high-growth categories within this segment include mobile phones, TVs and music systems.

The Indian consumer durables industry has witnessed a considerable change in the past couple of years. Changing lifestyle, higher disposable income coupled with greater affordability and a surge in advertising has been instrumental in bringing about a sea change in the consumer behavior pattern. Apart from steady income gains, consumer financing and hire-purchase schemes have become a major driver in the consumer durables industry.

In the case of more expensive consumer goods, such as refrigerators, washing machines, color televisions and personal computers, retailers are joining forces with banks and finance companies to market their goods more aggressively. In addition, change in policy, such as the WTO FTA in 2005 resulted in zero customs duty on imports of all telecom equipment, thereby improving the pricing and affordability of imported goods.

Challenges

The biggest threats to the local industry going forward are supply-related issues pertaining to distribution and infrastructure, as well as demand issues due to competition from imported goods. The lack of well developed distribution networks makes it especially challenging to penetrate the fastest growing rural areas economically. In addition, regular power cuts and poor road linkages make systematic production, assembly and delivery problematic.

On the demand side, customers have increasing choice from both domestically produced and imported goods, with similar features. This homogeneity makes it difficult for players to remain ahead of the competition.

MNCs hold an edge over their Indian counterparts in terms of superior technology combined with a steady flow of capital, while domestic companies compete on the basis of their wellacknowledged brands, an extensive distribution network and an insight in local market conditions. The largest MNCs incorporated in India are Whirlpool India, LG India, Samsung India and Sony India and homegrown brands are Videocon, Godrej Industries and IFB.

Future Prospects Overall, the industrys future remains robust, and interested applicants will benefit from a holistic learning experience; Many of the research, sales, marketing and advertising related roles will necessitate a good on-the-job learning of target audiences, who may well be a totally new segment, based in never-before visited Class II and III towns. In addition, those with technical backgrounds will be able to leverage their knowledge and experience to constantly develop and

innovate the product variants. With more MNCs growing their Indian businesses, there is great potential to also learn best-in-class systems and management skills.

During FY07, volume share of the single largest consumer durable was colour TVs at 30%, followed by refrigerators and air conditioners at 18% and 13% respectively. Washing machines and other assorted consumer durables captured a share in the total volume by 5% and 34% respectively.

FY07 witnessed the highest number of TV sets being sold when compared to the previous two corresponding years. As per CMIE, growth in sale of TV sets was slower at 14.3% during FY07 when compared to a 21% growth in the previous year. On the demand side, domestic consumption of refrigerators declined by almost 4% between FY05 and FY08, while imports climbed. The imposition of anti-dumping duties on import of colour picture tubes will hit the manufacturing costs of CTVs produced in India. Further, the reduction in the general rate of excise duty (CENVAT) from 16% to 14% as proposed in the Union Budget for FY09 will not have any effect on the selling price of colour TVs. This is because the combined effect of rising input costs and a higher interest burden will negate the effect of such reduction.

The key growth drivers for the Indian consumer durables industry:

Rise in disposable income: The demand for consumer electronics has been rising with the increase in disposable income coupled with more and more consumers falling under the double income families. The growing Indian middle class is an attraction for companies who are out there to woo them.

Availability of newer variants of a product: Consumers are spoilt for choice when it comes to choosing products. Newer variants of a product will help a company in getting the attention of consumers who look for innovation in products.

Product pricing: The consumer durables industry is highly price sensitive, making price the determining factor in increasing volumes, at least for lower range consumers. For middle and upper range consumers, it is the brand name, technology and product features that are important.

Availability of financing schemes: Availability of credit and the structure of the loan determine the affordability of the product. Sale of a particular product is determined by the cost of credit as much as the flexibility of the scheme.

Rise in the share of organised retail: Rise in organised retail will set the growth pace of the Indian consumer durables industry. According to a working paper released by the Indian Council for Research on International Economic Relations (ICRIER), organised retail which constituted a mere four percent of the retail sector in FY07 is likely to grow at 45-50% per annum and quadruple its share in the total retail pie 16% by 2011-2012. The share will grow with bigger players entering the market.

Innovative advertising and brand promotion: Sales promotion measures such as discounts, free gifts and exchange offers help a company in distinguishing itself from others.

Festive season sales: Demand for colour TVs usually pick up during the festive seasons. As a result most companies come out with offers during this period to cash in on the festive mood. This period will continue to be the growth driver for consumer durable companies.

Major hurdles and challenges plaguing the Indian consumer durables sector:

Threat from new entrants, especially global companies: The domestic consumer durables sector faces threat from newer companies, especially from global ones who have technologically advaced products to offer.

Rivalry and competition: Presence of a large number of players in the domestic consumer durables industry leads to competition and rivalry among companies. Threat from rivalry and competition poses a threat to domestic companies.

Potential markets remaining yet untapped: A large segment of the domestic market, mostly the rural market is yet to be tapped. Tapping this yet untapped and unorganised market is a major challenge for the Indian consumer durables sector.

Threat from substitute products/services: The domestic consumer durables industry is plagued by threats from substitute products. Easy accessibility to theatres/multiplexes, especially in urban

areas has turned off the viewership from TV to a large extent. With the advent of a horde of FM radio stations, radio sets have now substituted TVs.

Customer power with respect to availability of choice: The availability of a wide product line on account of most products being homogeneous, poses a threat for companies operating in the consumer durables sector. Customers have the choice of both domestically produced and imported goods, with similar features.

According to CMIE statistics, domestic consumption of refrigerators witnessed a decline between FY05 and FY08, while exports grew. From 3% of the total consumption in FY05, exports grew to7% of the total consumption in FY08. On the supply side, domestic production of refrigerators in the total supply remained at the same levels in the past three years ended FY08. At 99% each in FY06-08, the share of production reported a mere 100 basis point increase over FY05, as imports slided. The refrigerator industry posted a sluggish performance since the beginning of FY09 on the back of volatile steel prices. The first quarter saw a production growth of a mere 50 basis points to 2.18 mn units, as per CMIE.

Sales of Consumer Electronics Companies

The consumer electronic goods industry underwent a slowdown during the last quarter of FY08. According to CMIE, the industry witnessed a slower 10.5% growth in the Mar 08 quarter compared to a substantial 17.4% growth in the previous corresponding quarter. Domestic consumer electronic companies together reported a subdued sales growth of almost 17% in FY07, on the back of a robust 40.5% growth in FY06. While the larger companies reported

robust growth in sales, it was the smaller ones whose sales were negatively affected that eventually brought down the industry sales growth.

INDUSTRIAL GROWTH
The industrial sector grew in moderation during FY08 at 8.5% on the back of a comparatively higher growth of 11.5% during the previous fiscal. The countrys real GDP grew by 9% during FY08; a tad lower than 9.6% in the previous fiscal. The consumer durables segment witnessed a fall in production particularly for items where consumer preferences have shifted towards newer products. Shifting in the consumption pattern coupled with rising input costs of steel, iron ore etc, may further affect the production levels of these goods. On the supply side newer variants of consumer durables on the back of technological advancements have flooded the market, whereas on the demand side it is the prospering middle class and consumerism which have led to changing demand patterns.

CONCLUSION

Most of the customers before purchasing compared the

products with some other stores. Croma is the store where customers believe that the price of the

product is moderate. Proximity to house or office is the major reason why people

prefer croma which is situated off the Air Port road Yerwada, and the other reason is that the price of the products is moderate as compared with other store. Overall quality of croma is good. But there is scope to improve

it more. The Product offering according to the customers was good. The customers of croma said that the physical aspect of croma

was excellent. They liked the layout the spacing of the store and the ambience. Most of the customers agree to the tag line of croma Croma

Helps You Buy

QUESTIONARE

The following topics or issues will also be considered in the project

1) How is Vendor Management carried out in a Retail Store?

2) How is merchandising carried out?

3) What are the retailing strategies used by Croma Retail?

4) What are the pricing adjustments and strategies undertaken by Croma Retail?

5) Method followed to assemble the data.

6) Sources used to get the information.

7) Tools used during collection of data

BIBLIOGRAPHY

http://www.watblog.com/2011/08/02/tata-croma-to-launch-an-online-store/ http://www.tata.com/company/profile.aspx?sectid=oH90Rc8X7Dg= http://in.finance.yahoo.com/news/Tata-Group-Infiniti-Retail-contifyinvestment115097139.html?x=0 http://articles.economictimes.indiatimes.com/2010-01-27/news/27597485_1_formats-cromavineet-kapila http://articles.economictimes.indiatimes.com/2009-05-10/news/27646997_1_croma-rentals-erpsolutions http://articles.economictimes.indiatimes.com/keyword/croma/recent/2