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Indian Institute of Planning & Management Satbari Campus
The Importance & Analysis Of Marketing Activities (Outdoor & In store) During New Store Launch
Submitted By: Anuj Gupta
I, hereby declare that the project work entitled “The Importance and Analysas of Marketing Activities (outdoor and instore) during New Store Luanch” submitted to IIPM Satbari Campus, is a record of an original work done by me and this project has not performed the basis for the award of any Degree or diploma/ associate ship/ fellowship ans similar project if any. The results embodied in this thesis have not been submitted to any other University or Institute for the award of anything.
Anuj Gupta IIPM SB-2, 2011-13
The understanding of the business organization had been a stepwise familiarization with policies procedure etiquettes responsibilities execution, implementation, etc. Every step had presented some challenges or the other. But had at the end crowned our efforts with something valuable called experience. The short span of traineeship with Reliance brings to me the fond recollection of balanced work atmosphere which helped to optimize on my skill sets. In this regard I express my deepest sense of gratitude to Mr. Puneet Mishra and Mr. Vibhor Bhargava for their valuable support, encouragement for the completion of the project. I vote my special thanks to Ms. Shivajali from HR. In addition I would like to give my sincere thanks to my team members with whom I worked. It was a great experience working with these people. Gaurav Soni Nalin Lal Das
Retailing consists of all activities involved in selling goods and services to consumersfor their personal, family or household use. It covers sales of goods ranging from automobiles to apparel and food products and services ranging from hair cutting to air travel and computer education. Sales of goods to intermediaries who resell to retailers or sales tomanufacturers are not considered a retail activity. Retailing can be examined from many perspectives. A manufacturer of white goods like washing machine and refrigerators has many options to reach out to consumers. The retail sector in India is highly fragmented with organized retail contributing to only 2% of total retail sales. The retail sector in developed countries was also highly fragmented at the beginning of the last century but the emergence of large chains like Wal Mart, RIL led to rapid growth of organized retail and growing consolidation of the retail industry in the developed countries. Today, in India we see a rise in the purchasing power and growth of a middle class which follows the western lifestyle. Hence, conditions are conducive for the rapid growth of organized retail in India. Organized retail is growing rapidly and we see the emergence of large organized retail chains like Reliance Retail, Bigbazzar, Easyday etc . We also find retail malls mushrooming all over the country. The opportunities in retail industry in India will increase since Indian retailing is on the threshold of a major change. However, with the rapid growth in organized retail and increased emphasis of manufacturers on understanding sales at the retail level, the study of retailing has become increasingly relevant.
A-3 Sarita Vihar. This market research is a short introduction to the main management concept that has determined the structure of Reliance Retail. In order to achieve the objectives as mentioned above objective. The more I become conclusive with the outcome of my research I became incredibly amazed by the depth of research on the subject of marketing strategies of Reliance Retail. To perform a profound analysis of functioning of various department of business concern where we undergo the training. But any serious omission is my fault and I owe humble apologies for that. South Delhi. my training was arranged in: Reliance Industries Limited(RIL). To blend the practical experience acquired in the business concern with the theoretical knowledge received in the classroom and apply them in actual business situation soon after the completion of MBA programme. we have tried to identify the areas where strategic management as a paradigm has be applied to manage and withstand the unforeseen and competitive challenges offered by this growing segment of Retail Sector. Contents 5 .Preface It is an integral part of our MBA programme to undergo “On the job/summer training “ in a business organization with following objective: To acquire a better understanding of business environments under professional guidance.
..9-15 • Reliance Retail Limited……………………..83 6 ..• Reliance Group ……………………………….43-45 • Loyalty……………………………………….…....16-27 Growth through Valuable Creation Reliance Digital Reliance Fresh • Types of Retailers………………………….....………...46-54 • Methodology………………………………….55-58 • Demographic Delails…………………...28-29 • Some of the Major Groups………………………30 • Retail Scenario……………………………………31 • Visual Merchandising……………………….32-35 • Retail Customers…………………………….36-42 • Functioning of Retailing……………………..59-81 • Conclusion…………………………………………82 • Bibliography……………………………………….
• To analyze the concept of loyalty program and consumer response to such program. • Understanding and analyze consumer behavior during NSO. 7 . • Understanding the importance of outdoor media and its placement.OBJECTIVE OF PROJECT • To understand the concept of retailing during NSO.
1932 ." Dhirubhai H.Only when you can dream it.Reliance group Founder Chairman of Reliance Group "Growth has no limit at Reliance. courage and conviction. His life and achievements prove that backed by confidence. The US$ 54 billion Reliance Group is 8 .July 6. Ambani Founder Chairman Reliance Group December 28. From a humble beginning. He dared to dream on a scale unimaginable before in Indian industry. a man can achieve the impossible. I keep revising my vision. he went on to create an enviable business empire within a span of just 25 years. 2002 Shri Dhirubhai Ambani was an exceptional human being and an outstanding leader. you can do it.
Indian investors would provide him with the necessary resources. becomes a standard for others to follow. his people were his most important asset. Today. The corporate philosophy he followed was short.a living testimony to his indomitable will. Aim for the best". The Group's track record of consistent growth is unparalleled in Indian industry and perhaps internationally too. as he said proudly. Think fast.not only in India but in the world. nurtured them and continuously propelled them to aim for still higher goals. Shri Dhirubhai Ambani visualized the growth of Reliance as an integral part of his grand vision for India. 9 . The Bhagavad Gita states. He inspired the Reliance team to do better than the best . He was convinced that India could become an economic superpower within a short period of time and wanted Reliance to play an important role in realizing this goal. "The actions of a great man are an inspiration for others. For him. single-minded dedication and an unrelenting commitment to his goals." This certainly applies to Shri Dhirubhai Ambani. Think ahead. These highly motivated people comprise the core of what he named: "The Reliance Family". Think differently. He was supremely confident that finance would never be a constraint in executing his projects because. simple and succinct . the Group's turnover represents nearly 3 percent of India's GDP. Whatever he does. He scouted around for the best and most talented professionals. He was probably the first Indian businessman to recognize the strategic significance of investors and discover the vast untapped potential of the capital markets and channelise it for the growth and development of industry."Think big.
Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited. is a Fortune Global 500 company and is the largest private sector company in India. petroleum refining and marketing.to be fully integrated along the materials and energy value chain. Group's annual revenues are in excess of USD 22 billion. The Group exports products in excess of USD 7 billion to more than 100 countries in the world. The Group's activities span exploration and production of oil and gas. fiber intermediates. There are more than 25. being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products.The Reliance Group is India's largest private sector enterprise. Reliance pursued a strategy of backward vertical integration . Starting with textiles in the late seventies. petrochemicals (polyester. with businesses in the energy and materials value chain. Reliance Industries Limited.in polyester. The flagship company. plastics. petrochemicals. fiber intermediates. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Reliance enjoys global leadership in its businesses. textiles and retail. 10 .000 employees on the rolls of Group Companies. plastics and chemicals). Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited). petroleum refining and oil and gas exploration and production .
age 49. making him the world's 14th richest person and the second richest person in India. world-class manufacturing facilities involving diverse technologies that have raised Reliance's manufacturing capacities from less than a million tonnes to twelve million tonnes per year. Mukesh and younger brother Anil are sons of the late founder of Reliance Industries. deep water oil and gas exploration and production program. he directed the creation of several new and large world-class manufacturing facilities involving diverse 11 .1 billion as of March 2007. USA. In this process. Ambani. Founder Chairman of the Company Mukesh Ambani is the chairman. Mr.Mr. India's largest private sector company and a Fortune 500 Company. is a Chemical Engineer from the University of Bombay and pursued MBA from Stanford University. managing director and the largest shareholder of Reliance Industries. Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibers and further into petrochemicals. Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals. He is the elder son of Mr. Mukesh Ambani is also steering Reliance's initiatives in a world scale. plant and industrial biotechnology.800 outlets and a research-led life sciences initiative covering medical. a pan-India petroleum retail network involving 5. Ambani. Mukesh Ambani Chairman & Managing Director Mr. Dhirubhai H. offshore. His wealth is US$ 20. His personal stake in Reliance Industries is 48%. Mukesh D. Mukesh D. In this process. he directed the creation of 60 new.
with a present capacity of 660. power generation and port and related infrastructure.000 barrels per stream day integrated with a 0.000 barrels per day (33 million tones per year) integrated with petrochemicals. Ambani is steering Reliance's initiatives in a world scale.9 MMTPA polypropylene plant. India. He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar. Mr. offshore and onshore oil and gas exploration and production program. He had set up the Reliance's communications technology initiative that is the largest and most complex information and communications technology initiative in the world. creation of a pan-India petroleum retail network and setting up of a new export oriented refinery through RIL's subsidiary Reliance Petroleum Limited (RPL) with a capacity of approximately 580. 12 .technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tones to over thirteen million tones per year.
Ambani's Achievements include: Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006. Ambani is the Chairman of Indian Petrochemicals Corporation Limited. Mr. Ranked No. May 2004.C. Had the distinction and honor of being the co-chair at the World Economic Forum Annual Meeting 2006 in Davos. Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine. WashingtonD. London. He is member of the Shareholders'/ Investors' Grievance Committee of the Company. March 2004. October 2004.Mr. Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom. November 2004. Mukesh D. September 2004. Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine. August 2004..1 for the second consecutive year. Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Price waterhouse Coopers and published in Financial Times. in The Power List 2004 published by India Today. Switzerland. USA. 30 Growth is Life Conferred the 'Asia Society Leadership Award' by the Asia Society. Reliance Petroleum Limited and Reliance Retail Limited. 13 .
Major Subsidiaries & Associates:The Reliance Industries Limited is the flagship company of Reliance Group which has ownership interest in the following subsidiaries & associates 14 .
The magnitude and strategy of RIL's retail foray is sure to have far reaching social and economic implications by directly influencing the lifestyles of hundreds of millions of consumers. The project will boast of a seamless supply chain infrastructure. will be an integral feature of this project. By creating value at all levels they will actively endeavor to contribute to India's growth. they are aggressively working on introducing a pan-India network of retail outlets in multiple formats. state of art technology. besides indirectly impacting the livelihood of tens of millions. Towards this end. Reliance is aiming to touch almost every Indian customer and supplier.RELIANCE RETAIL LIMITED Growth through Value Creation Reliance is gearing up to revolutionize the retailing industry in India. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer. The retail initiative of Reliance will be without a parallel in size and spread and make India proud. unprecedented even by world standards. This indirect impact will be on those engaged in a wide range of 15 . is what this initiative is all about. a seamless supply chain infrastructure. Through multiple formats and a wide range of categories. unmatched customer experience. both in quality and quantity. A world class shopping environment. a host of unique valueadded services and above all.
Quite clearly. Business analysts feel that Mukesh Ambani's advantage is his huge financial strength coupled with a track record of implementing mega projects in record time. The Indian retail scene is now going to witness some real fast-paced action. and a host of myriad other services that bring hundreds of categories of goods and services from the producers to the final consumers. let the action begin! 16 . at globally competitive capital costs. So. Mukesh Ambani has learned to dream big from his great visionary father. consumer goods manufacturing. as they say. the late Dhirubhai H Ambani. who is acknowledged as one of India's tallest. Mukesh Ambani has indeed inherited all these skills from his father.economic activities including farming. RIL is now all set and ready to conquer the organized retail domain. If the announced retail project is any indication. with the consumer – as always – having the best deal. most ambitious and successful business leaders for his sharp business acumen and skilled people management ability. Re-writing the rules of business has been the forte of Dhirubhai and Mukesh is attempting the same in retail.
000-30. will function as one-stop shops for all technological solutions in the consumer durables and IT telecommunications segment to cater to the tastes and requirement of customers. home theatres. Reliance Staple. As part of their overall business strategy they will have their own consumer durable private labels. 15. With its own labels in the consumer durables segment. Reliance Digital stores would sell everything from TV sets. ft. the mega retail venture from the Mukesh Ambani stable. Reliance Digital. in the NCR region. marked its foray into speciality retail with the launch of its first consumer durable outlet. cooking ranges. Reliance Retail will be fighting for 17 . Reliance Digital Store has been launched five months after the company first introduced its fresh food format outlets. refrigerators. The first of the stores was unveiled at the Shipra Mall at Indirapuram in Ghaziabad on the outskirts of the national capital New Delhi April 24 Reliance Retail Ltd. that stock its own label of groceries under the brand.000 products from over 150 brands. RELIANCE DIGITAL has on offer of more than 4.000 sq. Each store would be set up at an investment of Rs4 to Rs7 core and also provide after-sales services On private labels. but not immediately.000 core over the next three to four years One-stop shops: The stores size approx.Reliance Digital: Mukesh Ambani's Reliance Industries Ltd launched a second group of retail stores called RELIANCE DIGITAL which will sell consumer electronics and other household appliances. Reliance Fresh. Reliance is planning to open a total of 150 Reliance Digital stores across 70 cities with investment of Rs 1. dishwashers to computers and mobile phones from across brands.
10-15 per cent of which will be contributed through retailing of consumer durables at its Reliance Digital stores and hypermarkets.000 crore revenues in the next five years. a common membership and loyalty Programme across all its formats. 18 . would be able to redeem points earned on purchases. The stores will also offer finance schemes for consumers for which the retail majors are in talks for tie-ups with several financial institutions. Besides. which means users. the stores will also provide pre.000 crore for the retail business. Citi Financial being one of them.6-billion domestic market.a share of the $5. Other formats of Reliance Retail such as supermarkets and hypermarkets are soon to launch.and post sales services through its inhouse RelianceresQ vertical. The domestic consumer electronics market is growing by 10 per cent annually and is split between imported South Korean brands such LG and Samsung and Japan’s Sony on the one hand and Indian market leaders like Videocon and BPL The prices being offered at the Reliance Digital stores will be most competitive and if any consumer finds a cheaper product in the market within 30 days they will not hesitate to match the offer. Reliance Industries had last year announced an investment of Rs 25. which it hopes would help the company earn around Rs 100. Reliance Digital will also be offering customers Reliance One. which is dominated by South Korean brands LG and Samsung and Japan's Sony.
19 .5 billion by 2010.Industry estimates suggest India's retail market is worth $320 billion.5 billion and expected to grow to $21. of which organized retail accounts for $7.
which will help company understand customer needs. By creating value at all levels.Reliance Fresh Reliance Industries launched its first retail format called Reliance Fresh in Hyderabad. Relianceis gearing up to revolutionize the retailing industry in India. rice) as well the company’s in-house brand Reliance Select and Reliance Value.000 sq ft. both in quality and quantity. Towards this end. 11 such Reliance Fresh neighborhood convenience stores were come up in the city. unprecedented even by world standards. unmatched customer experience. Reliance is aiming to touch almost every Indian customer and supplier. atta. The project will boast of a seamless supply chain infrastructure. will be an integral feature of this project.000-5. Through multiple formats and a wide range of categories. These stores sell fresh fruit and vegetables besides staples (dal. we will actively endeavor to contribute to India's growth. we are aggressively working on introducing a pan-India network of retail outlets in multiple formats. The Fresh stores at Hyderabad are part of a pilot project. The pilot for this format will be taken to many other cities over the next few months. Next on the company’s list are bigger cities including Delhi and Mumbai 20 . The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer. a host of unique value-added services and above all. a seamless supply chain infrastructure. is what this initiative is all about. A world class shopping environment. state of art technology. Spread over 2.
Reliance Fresh is selling vegetables and fruits sourced from farmers through the company’s agri hubs.000-2. But even as the retail debut kicks off with fruit and vegetables. Reliance Fresh would carry fresh fruits and vegetables. top-up grocery. This means about 30-40 stores in the major metros. All the stores opened have an average area of about 1. it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and supermarkets.000 crore over the next five years in the retail business.m.000 crore over the next five years – that's the retail vision of 21 . The company plans to establish 4. From Hyderabad. Instead.800 sq ft and an average of about 20 sales associates attending to customers in each store open from 8 a.000 families. on all seven days of the week.000-15. nonfood items and dairy products and a whole lot of other categories at very competitive prices. consumer electronics. the company also plans to launch larger format stores called “Feel Fresh Plus” which will be spread over 10. The Fresh Plus stores will stock fruit and vegetables as well as apparel. Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarket The strategy is to open one Reliance Fresh store in a radius of three to four km to serve 1. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. to 10 p.000 sq ft. and is eyeing sales of Rs 1. these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each.00. FMCG items and even medicines. Besides Reliance Fresh.000 retail outlets across various formats by then. staples.000 crore over the 5-year period from the retail business.000 crore (US$ 20 billion) by 2010 with a planned investment of Rs 30.RIL intends to invest close to Rs 25. A targeted sales turnover of Rs 90.m.
is entering the Indian retail sector in a real big way. and that too in record time! Culling information from all possible sources. discount stores. it was only whispered in close industry circles. Sears and Tesco that are eager to enter the Indian retail arena once the FDI barrier is lifted. supermarkets. Amidst all sorts of speculations in the media circles about RIL's intended retail foray. But with virtually nothing coming from anyone in the know inside RIL about their retail plans. The Reliance Retail blueprint envisages nation-wide chains of hypermarkets. The 22 . Carrefour. this has to be one of the most closely guarded secrets of India's corporate story. the word finally came out on January 23. when the Mukesh Ambani-controlled Reliance Industries Limited presented the mega retail initiative plans to its board of directors who subsequently gave their consent to pursue the retail business through a wholly-owned subsidiary of the company – likely to be christened Reliance Retail Limited. Reliance Industries Limited (RIL). and the word gained ground that India's largest private sector company. Earlier. convenience stores and specialty stores. RIL's retail venture seems all set to achieve the status of being the flag-bearer of India Retail Inc. department stores. about a year ago. 2006. how it impacts the intermediaries and consumers. Metro. how will it stand up to the real competition from global retail powerhouses like Wal-Mart. Images F&R Research attempts to put the Reliance Retail jigsaw in order and see how the concept and strategy differentiates from the existing competition. Slowly the whispers become louder. Target. in about 800-odd cities and towns across the length and breadth of India. and more interestingly.Mukesh Ambani and his RIL retail team. Read on for the full story… It's been in the news for quite some time now.
likely to be achieved much earlier than 2010. If Indian retail was lacking a whole-hearted and full-blooded thrust from a big and large corporate house (apart from the lukewarm investments made by the Tatas and ITC). more than one leading international daily – chiefly. it is now all set to change.000 crore (US$ 8 billion).000 crore (US$ 22 billion) by 2010 now appears conservative. Just how big and grand this investment is for the Indian retail sector can be gauged by the simple fact that the entire Indian retail sector is estimated to be at Rs 1050. Mukesh Ambani.RIL board of directors approved the initial phase of the retail foray at an estimated cost of Rs 3. albeit growing at over 30 per cent every year. who has been nourishing retail ambitions for quite some time now. Giving full respect to the importance of this announcement. projections by the Images-KSA India Retail Report 2005 of an organised retail market of Rs 100. which went all agog again with intense speculation. at present. So much so. That makes Reliance Retail's proposed investments equivalent to about 10 per cent of India's organised retail market – such a level of investment in the Indian retail arena has been unprecedented in the country's most promising sunrise industry – retail. That was big news for both the national and international media.350 crore (US$ 750 million). The Financial Times – gave this news a front-page treatment. speculating (like many others) that this investment could just be an initial tranche of a much larger commitment from Reliance Industries towards the retail project.000 crore (US$ 233 billion) – growing at five per cent annually – and the estimated share of organised retail is only Rs 36. has clearly positioned himself in to the role of redefining the entire landscape of Indian retail. 23 .
The impact can be best felt in countries like USA. Hong Kong and Malaysia are also heavily boosted by the Retail Industry. how will this impact the major international retailers who plan to enter the Indian retail market? Reliance Retail is in fact giving India for the first time a real feel of the scale at which these global retail powerhouses actually operate.RIL Set To Become World's Largest Real Estate Property Owner What is even more interesting is that Reliance Industries Limited will far out-surpass the Catholic Church in becoming the world's largest owner of real-estate property by virtue of its mega Retail and SatelliteTownship plans. and have already established a good foothold? How will this impact the existing retail majors – the likes of Pantaloon Retail. in terms of retail strategy? How will RIL differentiate its stores and concept from existing players who have already moved into the retail space earlier. Trent India. 24 . suppliers and farmers all along the supply chain network benefit? What will be the USP of Reliance Retail? And. This industry has traveled a long way from a humble beginning to a situation where worldwide Retail sales are more than $ 7 Trillion. more significantly. Retailing has played a vital role worldwide in increasing productivity across a wide range of consumer goods and services. Mexico. allow consumers the full benefits of modern retail. in the next two to three years! Now what exactly does this mega retail plan portend for the Indian retail sector? In fact. Economies of countries like Singapore. it is preparing India to stand up to the ensuing competition and in the process. Thailand and more recently in China. etc? How will the consumer benefit from RIL's venture and how will intermediaries like traders. Retailing is the business where an organization directly sells its products and services to an end consumer and this is for his personal use. By definition whenever an organization is manufacturing or a whole seller sells directly to the end consumer it is actually operating in the Retail space. Shoppers' Stop. UK. what exactly are RIL's plans. RPG.
Departmental Store Several Product Lines –typically clothing. Specialty Store These stores are characterized by narrow product lines but with deep assortments such as Apparel Stores. Men’s custom shirt store).home furnishing and household goods with each line operated as a separate department managed by specialist buyers and merchandisers Examples: Supermarkets Relatively large . Retailers are continuously challenging themselves to find out ways and means of identifying customers need.self-service operationwhich is designed to cater total needs for food. They are busy in devising new strategies to have an atomic level understanding of consumer demand. Type of Retailers: Retail Organizations have shown great variety and different format of stores are coming up quite rapidly. It is an Industry which is heavily dependent on consumer spending. Example of such stores is Reliance Mart. Furniture store. Sporting goods store.low cost . Generally Retailers can be of six types.Florist and Book store. In this ecosystem consumers play the most important role. Under this also there could be specializations like limited line store (eg. Men’s clothing store) and Superspecialty store (eg. As a result of this.low margin high volume .It is a changing Industry and old traditional ways of doing business has lost relevance nowadays. household maintenance products 25 . laundry.
Example: Kiryana Stores Discount Stores Standard merchandise sold at lower prices with lower margin but higher volumes. Many have added take away sandwiches. Discount electronic store or discount book store Example: NEXT Store Off Price Retailers Merchandise bought at less than regular wholesale prices and sold at less than retail prices. irregulars obtained at reduced prices from manufacturers and other retailers.000+ cr ($ 20 bn) by 2009-10 Bharati Group:Plans Rs. Example: Reliance Super. Actual discount stores regularly sell merchandise at lower prices and offer mostly national brands. ConvenienceStore These are the stores which are relatively small in size and they are located near residential area.Supermarkets earn an average profit of only 1 percent on sales. Discount specialty retailing is also present eg. 90. normally remains open seven days a week and carrying a limited line of high turnover convenience products at slightly high prices. coffee and pastries.000 cr ($ 6. Factory outlets are owned and operated by manufacturers and they normally carry manufacturer’s surplus. 11. 30.250 cr (US$ 2. Example:Shopper Stop Some of the major groups & their plans are as follows Reliance Group:Rs. In Discount retailing.67 bn) investment to set up multiple retail formats with expected sales of Rs. Often left over goods.discontinued and irregular goods..5 bn) by 2015 investment and will open multi-format Retail outlets across all cities in India with a population of over 26 .
a books and music chain calledLandmark.000 crore in its retail venture and began its retail play early this Year by taking over Trinethra Super Retail for Rs 150 crore (currently with two formats . is an astounding 250 million in size and is growing at a healthy rate of 7% per annum. hypermarket Star India Bazaar. Tata Group:It runs departmental stores under Westside. Retail is India’s largest industry after Agriculture with around 20% of the economically active population engaged in it and generation 10% of our country’s GDP. 27 . The growth of the efficient small store culture can be attributed to the 6 million villages distributed across the length and breadth of the country. Birla Group:The A. contract services.Trinethra and Fabmall plans 220 stores with a turnover of over Rs. that the Urban Population although just 25% of the total.one million. A.000 people. in a tie-up with Woolworths of Australia. exports and Agri retailing (through Mahindra Shubh-Labh stores).000 cr ($ 6. and a consumer durables chain christened Croma.V.7%. Pantaloon Retail (Future Group):Expansion into all possible formats of retail across categories and segments will have 30 mn Sq. It is only natural that the agricultural sector is the biggest employer with its contribution to GDP pegged at 26.Ft of retail space by FY10. and cater to the purchase need of its pole. The group turnover is expected to touch Rs. Birla group plans to invest Rs 15. which is involved in contract farming. It is interesting to note. 300 cr ($667 mn) this fiscal. RETAIL SCENARIO The Indian population is whooping 1 billion with 75% of the people living in villages and small towns. Bharti Retail looking at approximately 10 million square feet of retail experience & will employ around 60. The venture will leverage on Mahindra agribusiness division.67 Bn) in FY 10 – 11. Trent is planning to open 27 more stores across its retail formats adding 1 mn sq ft of space in the next 12 DLF malls.V. 30. Mahindra Group:Mahindra & Mahindra is in talks with European fresh produce supply chain and distribution companies to set up a supply joint venture to cater to international and domestic markets. The 12 million retail outlets in India are the highest in the world.
with the spending increasing at an average of 11% per annum.4 million sq ft. The Core and the Lower middle have increased their share in the Growth. over the next 2-3 years. Super Bazar etc. North region has 39% of India’s retail share.5 million sq ft. For example. East region has 10% of India’s retail share. Apna Bazar. Delhi and Mumbai now have maximum number of shopping centers. • • • • • • • • • • Smaller cities will have about 12.The chief driver of growth in the retail sector has been the consumer. Mother Dairy. Ahmedabad about 3. Gurgoan saw the largest development in terms of retail outlet. Kendriya Bhandar. 28 . Ludhiana to account for 2. South region has 18% of India’s retail share. Government and co-operative sector is also making their steps in retailing. Currently estimated at $205 billion to grow to $400-500 million.8 million sq ft of mall space by 2007. West region has 33% of India’s retail share.
• Floor layout • Aesthetics and appeal for standardization of process across shops • Focuses on much targeted control of visual displays • Benchmarking product displays 29 .Visual Merchandising • Exterior Presentation – Marquees – Banner • Interior Presentation – Fixtures – Floor layout – Signage – Plan-o-gram(visual mapping) VM • Product placement.
Plan-o-gram implementation Carry forwarding ability of employees has been studied. of available products and SKUs in store Defining the merchandise flow No. 30 . The effectiveness and result of the implementation of Plan-o-gram has been asked from employees. The carry forwarding duration of activity has been recorded after DURING During the period of implementation.PROCESS BEFORE Categorization of product. the behavior of the employee and customer was observed. Working culture and technical working knowledge of employee was observed. Preparing and printing plan-o-gram for the specific store Finding out the no. of allotted bay according to the area available Defining the time of the day and day of the week to work on the project AFTER After implementation of plan-o-gram the sales of the store has been monitored To measure the efficiency of employees store’s VM has been monitored. After implementation of plan-o-gram views has been collected from customers.
Problems in VM implementation • Too many Props • Poorly selected Props • Undefined Areas of Responsibility • Lack of Coordination • Improper Communication • Poor Time Management 31 . implementation.
which includes decision variables regarding. brand selection.RETAIL CUSTOMER Consumer buying behavior refers to the buying behavior of the ultimate consumer. 32 . using and disposing goods and services. shopping timing and choice of retail format and store. The behavior of humans as consumers is complex. In the retailing context marketers are required to understand customers’ shopping behavior. among other things. Marketers’ understanding of the drivers of consumers’ buying behavior will help them to serve their customers effectively and efficiently and attract new customers. money and effort for buying. Consumer behavior is the study of how consumers make decisions to use their respective resources such as time.
Thus. These factors could be demographic. environmental or related to the lifestyle of the customer. It is equally important for the retailer to identify the various stages in the consumer decision-making process and the major influences at each stage. but the utility of their buying process itself. Physical activity—it involves considerable amount of exercise. Consumers’ motives are important and positively related to their pleasure and satisfaction while shopping in terms of retail choices. Communication with other similar interests—it provides opportunity for interactions with other customers or sales people. Diversion—shopping may be motivated not by the expected utility of consuming. encounters with friends or just ‘people watching’. • 33 .Consumers’ shopping behavior can be understood by analyzing the factors that affect behavior. Sensory stimulation—shopping can provide sensory benefits such as looking at and handling merchandise. WHY DO PEOPLE SHOP? It has been suggested that consumer shopping activities are influenced by personal and social motives. listening to the sounds and smelling scents. such as mother or housewife. emotional states or moods may explain why or when someone goes shopping. psychological. Social Motives • Social experience outside home—shopping can provide opportunities for seeking new acquaintances. This would make possible an effective retail marketing strategy. Learning about new trends—shopping provides consumers with information about trends and movements and product symbols reflecting attitudes and lifestyle. Personal Motives • • • • • Role playing—shopping activities are learned behaviors and are expected or accepted as part of one’s position or role.
• • Pleasure Bargaining—shopping may offer the enjoyment of gaining a lower price through bargaining comparison shopping or visiting special sales. Having understood why people shop it is important to analyze the factors that affect the consumers’ decision making process regarding what.• Peer group attraction—certain stores provide a meeting place where members of peer group may gather. Status and authority—shopping may provide an opportunity to attain status and power by being waited. 34 . when and from where to shop.
Lifestyle DEMOGRAPHIC FACTORS Gender Age Occupation Education Family size Income ENVIRONMENTAL FACTORS Physical Environment Social Environment—culture. there is a strong possibility of positive behaviortowards that particular store or shopping center.FACTORS AFFECTING CONSUMER DECISION-MAKING A consumer’s purchase decision tends to be affected by the following four factors: 1. social class PSYCHOLOGICAL FACTORS Perception Learning Attitude Personality LIFESTYLE Activities and interests Nature of occupation CONSUMERS’ IMAGE OF RETAIL STORES A consumer’s image of a store is the summation of his attitudes towards various aspects of that store. Demographic 2. Every retail store possesses an individuality that differentiates it from its competitors. Consumer decision-making is a process of matching self-imaged with the image of relevant retail store to meet their specific needs. It is argued that where there is some degree of congruity of individual’s self-image and his image of a store or brand. The measurement of consumers’ images of the store and measurement of consumers’ self-images aid retailers in segmenting the consumer population into 35 . Environmental 4. A retailer must devise a strategy to communicate its individuality or personality across to its target segments to build their confidence in its merchandise and services. Psychological 3. Retail marketers have provided considerable importance to consumers’ attitude and images in store selection and rejection.
Travelling time 4. Parking availability 1. Price of same item in a substitute store 4. Sales effort and store services 5. Reliability and usefulness of advertising 4. Adequacy of credit arrangements 6. Merchandise displays 4. Store layout 2.groups by demographic characteristics or patronage practices based on differences in the image of the retail store or shopping center. Number of outstanding departments in the store. Helpfulness of sales clerks 3. Depth of assortment 5. Traffic barrier 3. Store décor 3. Satisfaction with returns and adjustments 3. Value for price 4. Satisfaction with good in use 2. Merchandise suitability 3. Courtesy of sales clerks 2. Price of same item in another store 3. Store traffic and congestion 1. Post-transaction satisfaction Determinants 1. Price of a particular item in a particular store. Eating facilities 1. 2. Class of customers 5. Billing procedures 5. Delivery promptness and care 7. Trading stamps and discounts 1. Access route 2. Satisfaction with accessibility to store 36 . 1. Locational convenience 2. Breadth of assortment 4. Satisfaction with price paid 4. Quality of line 3. Number of brands stocked 2. Dimension 1. Congeniality 6.
Posters/Calendars: -Retailers use posters to promote specific activities and events or as free gift to other channel members. An excellent location may be next or close to parallel or complementary businesses that will help to attract customers. They have a short shelf life. especially their loyal customers. compatibility with their objective and the rest of the communication strategy. While selecting a particular set of materials for the publicity. Direct mail advertising includes postcards. such as banking. targeted letters as part of their communication strategy. so they are most useful for marketing specific activities such as opening of a new outlet or off-season sale. industrial parks. retailers have to consider factors such as cost of the selected material. Direct mail:-Retailers can opt to send out regular. Intense competition in the area shows that new businesses will have to divide the market with existing businesses. Booklets:-Retailers from the organized sector can afford this costly mode of communication. catalogues. POPULAR MEDIA VEHICLES USED IN THE INDIAN RETAIL SECTOR There is a whole range of vehicles for promotion available to the retailers to choose from. It is effective in case of products or services which are intense on information. The presence of major retail centers. a retailer selling baby products could put an ad in Parenting orHealth and Nutrition.Competitor’s Location The type and number of competitors is another important factor. This technique is considered to be effective at the time of introducing new product and informing about prospective sales and or special discounts. franchisee chains and department stores should be noted. fashion designers and insurance services. If one is not able to offer better quality and competitively priced products. 37 . For example. Magazines:-Magazines are considered to be and effective medium to advertise to the target segment. real estate practitioners. Leaflets of Flyers:-Retailers to promote specific activities and events use leaflets or flyers. one might reconsider that particular location. brochures. email and single letters.
RETAIL ACCORDION THEORY:. use this medium tocommunicate about their offerings and promotions to their target segment more effectively. THEORIES AND MODELS OF RETAILING 1.A theory of retail institutional changes that states that retailing institutions that can most effectively adapt toenvironmental changes are the ones that are most likely to prosper or survive. iii. 38 . RETAIL LIFECYCLE THEORY:-A theory of retail competition that states that retailing institutions. pass through andidentifiable cycle. wideassortment institution. 3. The model states that the volume of purchases by consumers and the frequency oftrips to the outlets are a function of the size of the store and the distancebetween the store and the origin of the shopping trip. like the products they distribute.Local Cable Channels:-With the advent of the local cable TV channels. and iv.A theory of retail institutional changes that suggests that retail institutions go from outlets with wide assortments tospecialized. narrow. 4. line store merchants and then back again to the moregeneral. Decline. Innovation. WHEEL OF RETAILING THEORY: . 5. Maturity. DIALECTIC PROCESS: .A theory about the structure of market areas. It is also referred to as the generalspecific-general theory. 6. This cycle can be partitioned into four distinct stages: i. GRAVITY MODEL: . 2. NATURAL SELECTION THEORY: .An evolutionary theory based on the premise that retail institutions evolve.A theory of retail institutional changes that explains retail evolution with an institutional life cycle concept. The theory suggests that new retail formats emergeby adopting characteristics from other forms of retailers in much the sameway that a child is the product of the pooled genes of two differentindividuals. basically located in central business districts. Accelerated development. most of the small retailers. ii.
39 .7. At the bottom of the hierarch arecommunities that represent the smallest central places (centres of commerce). found in lower-ordercentral places plus more specialized ones that are not necessary. CENTRAL PLACE THEORY: . Further up the hierarchy are thelarger central places.A model that ranks communities according to the assortment of goods available in each. which carry all goods and services.They provide the basic necessities of life.
Retailers are able to balance the demands of bothsides. advertising and certain additional services. Through this process. prefer a large variety of goods and services to choose from and usuallybuy them in small quantities. customers wouldhave to visit several stores to complete their shopping. The word retailing is derived from the French word retailler. buying them insufficiently large quantities and selling them to consumers in small units. Westside provides clothing and accessories. Ifeach manufacturer had a separate store for its own products.wholesalers. incontrast. SORTING Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few buyers to redu7ce costs. holding stock. while Pantaloons is targeted at the middle class. which are then tailored by the retailers into smaller quantities to meetindividual consumption needs. 40 . they specialize in types of assortment offered and the market to which the offering is made. BREAKING BULK Breaking bulk is another function performed by retailing. Shoppers’ Stop targets the eliteurban class. In this context. breaking bulk. meaning ‘to cut a piece off’. as a channel ofcommunication. Final consumers. sizes and brands from just one location. storage. 15. To reducetransportation costs. While all retailers offer anassortment. Supermarkets in the US offer. while a chainlike Nilgiris specializes in food and bakery items.FUNCTIONS OF RETAILING Retailers play a significant role as a conduit between manufacturers. manufacturers and wholesalers typically ship large cartons ofthe product. by collection an assortment of goods from different sources. retailers undertake activities and perform functions that add to the value of theproducts and services sold to the consumer. Customers are able tochoose from a wide range of designs.000 different items from 500 companies. The above process is referred to as the sorting process. suppliers and consumers. on andaverage. they perform variousfunctions like sorting.
This also works the otherway round in case the number of retailers is small.after-sales service and dealing with consumer complaints are some of the servicesthat add value to the actual product at the retailers’ end. storage. Manufacturers. The display itselfallows the consumer to see and test products before actual purchase. From advertisements. salespeople and display. shoppers learn about the characteristics and features of a product orservices offered. learn of sales forecasts. Providing product guarantees. and customer complaints. TRANSPORT AND ADVERTISING FUNCTIONS Small manufacturers can use retailers to provide assistance with transport. 41 . Retailers fill orders. CHANNEL OF COMMUNICATION Retailers also act as the channel of communication and information between the wholesalers or suppliers and the consumers. Retailessentially completes transactions with customers. ADDITIONAL SERVICES Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. deliverydelays. Retailers maintain an inventory that allows for instant availability of the productto the consumers. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. Retailers also offer creditand hire-purchase facilities to the customers to enable them to buy a product nowand pay foe it later. promptly process. Consumers can keep a small stock of products at home asthey know that this can be replenished by the retailer and can save on inventorycarrying costs.HOLDING STOCK Retailers also offer the service of holding stock for the manufacturers. It helps to keep prices stable and enables the manufacturer toregulate production. advertising and pre-payment of merchandise. The number of functionsperformed by a particular retailer has a direct relation to the percentage andvolume of sales needed to cover both their costs and profits. in their turn. deliver and installproducts. The manufacturer can then modify defective orunsatisfactory merchandise and services.
Holding stock 4. Extending services 42 . retailers are required to perform the following activities: ACTIVITIES PERFORMED BY RETAILERS Retailers undertake various business activities and perform functions that add value to the offerings they make to their target segments.As a result of these functions. The four major activitiescarried out by retailers are: 1. Retailers provide convenient location. Arrange for assortment of offerings 2. stock and appropriate mix of merchandise in suitablepackages in accordance with the needs of customers. Breaking quantity 3.
Moreover. If he is late. the customer will never trust any claims of “zero error” quality made by you. service and more service! That’s right! One of the best ways of ensuring your customers keep coming back to you is providing impeccable service. He will judge your company even on small things like whether the salesperson reached in time. Companies like Eureka Forbes and Whirlpool pride themselves on superb customer service satisfaction levels. the buzzword of the industry. This includes everything from service at the point of sale to after-sales service. 43 . the purchase might have taken place somewhere different from where the service is required. Remember. Most manufacturers of white goods understand relationship marketing like no one else. which builds a lasting relationship with the customer.LOYALTY The degree to which customers are predisposed to stay with one company and resist competitive offers. watch out for service. So. They manufacture a wide range of durables which can be serviced at various locations throughout the country. The peculiarity lies in the product itself. the customer is smart. Building Customer Loyalty SERVICE NETWORK:-The mantra for marketing professionals is service. where it might need to be serviced long after it is bought.
quality is conveyed via word-of-mouth. it’s gotta be good! CONSTANT INNOVATION:-“Once a customer. This is true especially for restaurants. Another good way of assuring customers value the quality of your product is to get an outside agency or someone else to endorse the results. They now have variants for their instant noodles like ‘Dal Atta Noodles’ and ‘Rice Noodle Mania’. Amul. now called Hindustan Unilever Limited) tickled the Indian palate by making multiple variants of the traditional Tomato Ketchup in flavors like mint. where the food served has to be of the same quality time and again to keep customers coming back to you. Here. Nestle India does it best with its brand of Maggi food products. Their competitors in the food segment. Colgate Toothpaste continually reminds the customer that it is endorsed by IDA. HLL gets customers to talk about their “Pond’s Age Miracle” range of cosmetics and Dove soaps in their television ads. sensed the need to keep the health-conscious customer in its kitty by 44 . Impeccable service too cannot save you if you do not deliver a good quality product each and every time. If a Vim Bar is a good dishwashing bar for Mrs X. Customers now have more choices than before and are more willing to try out new brands.“You never get a second chance to make a first impression” was the tagline for ‘Head and Shoulders’ shampoo years ago.QUALITY CONTROL:. to endorse the quality of their products. That is also the psyche behind prompting a customer to try out the product. One bad experience is enough to ruin the impression forever. This fickle-minded buying warrants a constant focus on the changing mindset of the customer. always a customer”. HLL (Hindustan Lever Limited. The brand too has to change with customer tastes. which has a strong presence in the icecream segment. it has to be good for you too! If others say that your product is good. is no longer true in these days of fluctuating brand usage. the Indian Dental Association and it is the brand trusted by most dentists. For instance. tamarind and chilli. a housewife.
Lotus Herbals. Knorr Soups. cheese and even ice-creams. I can tell you how important this is. It has a strong base of happy customers because of its USP ‘herbal ingredients’. Now. it has also launched its ‘herbal’ range of cosmetics on the shelves. Perk tastes just as 45 . for instance. Hot & Sour. manufactured by HLL. Amul too capitalized on its distribution network to deliver different products to its customers.adding the new Probiotic range of sugar free ice-creams! Kellogg’s Chocos are now available in a new flavour – Chocos Toffee to keep the children happy and dedicated! Innovation is the name of the game and timing is everything! DIVERSIFICATION INTO SIMILAR PRODUCT LINES:- If a customer feels that Dove Soap is the best for her skin. From personal experience. makes chemical-free skincare products like creams. If I want to buy a product. brand loyalties can be stretched further. They started from milk and now provide butter. extended their “instant soup powder” mixes to include “instant make-a-meal” powders for Chinese recipes. ghee. but many a time I end up coming home with a Cadbury’s Perk in hand. it For fast moving consumer items. why not make her think the same way about shampoos as well? That’s exactly why the brand name has now been extended to shampoos in the Indian market. they will be only too eager to try them out! Even when it comes to food products. I like Nestle’s Munch chocolate a lot. Chances are. Stretch the loyalty and benefits associated with a brand to include other similar products. it means availability at the nearest grocer. Chilli and other preparations for a quick meal at home. They now offer instant Chinese Manchurian. STRONG DISTRIBUTION CHAINS:must simply be available. So the same customers have a choice of using herbal preparations for their lipsticks and eye shadows as well. due to unavailability of the other brand. lotions and sunscreens.
Consciously. you were correct! It’s no wonder then that the L’Oreal ad shows Aishwarya Rai spouting the phrase “Because you’re worth it! Customer loyalty towards your brand can give you the advantage of decreased cost of advertising. •You can also increase the price of your brand to capitalize on the same. tell them that they have made the right decision. aha!” You will have customers hanging on to you forever. If you want people to keep buying your brands. Originating from Gujarat. An effective media campaign helped pass this advantage on to the customers. You can also increase the price of your brand to capitalize on the same. the availability of its products was restricted to the home state and a few neighboring ones. “Yehi hee hai right choice baby. 46 . This shows how just availability or lack of it can affect the customer’s brand choices forever. to tell itself that yes. REINFORCE THE DECISION:-Lastly. What better example to give you than the Pepsi ad which said. after a lot of effort Amul successfully expanded its distribution chains throughout the country.good. The human mind looks for signals to reinforce the decision made by it. after people have tried your product. and pretty soon I ended up asking for Perk at the local grocery shop instead of Munch. make sure the grocery store around the corner stocks it. go ahead and take the plunge into the world of brand loyalty! Benefits •Customer loyalty towards your brand can give you the advantage of decreased cost of advertising. For a long period Amul faced a similar problem with its products. So.
and tightly integrate with the central price file and all the customer touch points. and effective. Successful Loyalty programs pinpoint value to a specific group of consumers. Coupled with the Retalix 1-to-1 Targeted Marketing Analysis tool. The continuous change in programs keeps consumers engaged and avoids the attitude of entitlement. is not your run-of-the-mill solution. Moreover. centralized system that manages the Loyalty and Promotional marketing campaigns for Grocery and Convenience Store Retailers. however. a retailer can easily reward customers according to their specific taste and loyalty level via a multitude of reward programs to keep it fresh and fun. easy to administer. 47 . through a tight integration with the Pricebook. POS and Fuel Pumps. electronic rewards can be fulfilled for the consumer right at their purchase location.Loyalty Sales % = Sales through the Loyalty Card Total Sales X 100 Customer Loyalty programs need to stay fresh. online. It is comprehensive. The Retalix customer loyalty application suite. be easy to administer. Retalix Loyalty is a real time.
and redeem e-gift certificates.Retalix Loyalty includes: Integrated POS and Pump interface to collect data. and loyalty points Net-based online communications architecture Multiple set of basic programs (Charity. e-Coupons. tender credits. Continuity. print Loyalty program information on the receipt. discount items. Sweepstakes. according to loyalty levels Reports to measure loyalty not only by gross spending but also by gross profit Reports to measure program participation by store and chain Net-based Centralized Management System Retalix 1-to-1. Targeted Marketing 48 . display messages to the cashier and customer. Points) Tiered pricing rewards (electronic discounts) including fuel.
What is Loyalty Membership? Loyalty Membership is a program devised by Reliance Industries Limited for Reliance Fresh to retain the customers visiting their stores. • For every purchase of Hundred Rupees customer will receive One reward point. • Retailers remove or cut back slow-moving items and devote more shelf space to the products that program members buy. Followings are the features of the program: • An electronic method of identifying customer purchases and translating that information to reward customers based on their shopping habits. • Offer the products and services according to their best customers demand. • Customer will be issued a permanent membership card after 180 days of issuing of temporary card. • Identify their most loyal customers. 49 . It is a program by which Reliance Fresh store issues a Loyalty Membership Card to its customers to encourage them to shop at the store regularly. • Customer should accumulate minimum of 25 points to get a reward voucher by which he can make purchase at the store equivalent to Rupees 25. • Members will also receive accidental insurance of Rupees 50.000 under this program. • Customers can also retain these points and receive reward voucher whenever they want. Each time they buy something they collect points which will allow them to redeem cash vouchers to shop at store in future. • There is a reward point system by which customers receive reward points on every purchase made at the store. • Learn more about their best customers buying habits. How Loyalty Membership Program benefitRetailers? • The program data help retailers to adjust their product assortment to customer demands.
address. income etc. e-mail address. • Each time cardholders make a purchase. customers typically complete an application form asking for their Name. • Loyalty Membership programs give customers points that accrue with their purchases and can be redeemed for rewards. 50 . gender. the store scans their membership card. phone number.How do Loyalty-Membership Program works? • To enroll. • Cardholders receive their discounts by presenting their card at the checkout or by redeeming targeted coupons. tracks the sale and converts this data into useful information.
000. • Regular announcement should be made to encourage customers to use their loyalty cards to redeem reward points. • Increase level of personalized service/interactive approach with the customers.What are the advantages of this LoyaltyProgram for customers? Following are the advantages of Loyalty Program: • Loyalty Program gives customers the sense that the retailer values them personally and respects them. • We can issue prepaid cards in different denominations to our customers and provide additional discounts and offers in addition to our normal reward point system. How we can make Loyalty Program more effective? • We can make it effective by introducing various types of schemes which can attract customers. Through interaction and personalize service the front line staff should ensure to make the customers feel that they are the valued clients. Gold and Silver based on purchasing capacity/trend of different segments of customers. • Cashier should request and enlighten the customers to use their cards. • Card can be made attractive by issuing a plastic or a laminated card in place of the present paper card so that it can be retained for a long time. 51 . • Besides this it also offers an accidental insurance of rupees 50. • This program has an inbuilt system of giving discount over the competitive prices of the goods. • We can also categories the cards as Platinum. The advantages can be increased with the upgraded membership. • There can be additional rewards depending on the frequency of usage of card or can be based on their visit to the store. if compared from general retailers.
52 . it is suggested that the form should be made simple and some irrelevant questions. • Customers need instant answers to their queries. may be removed. • If need be in order to facilitate the customers.• The Loyalty Program form can be bilingual and should be of one page so that customers find it easy to fill. • The FDM should ensure optimum utilization of available manpower. So store staff can be trained about this Loyalty Program so that they can also assist customers. a separate person may be assigned the task for filling up the forms. Therefore. • The form at present is very lengthy and it becomes irritating for the customer when too much information is being asked. if any.
Further.METHODOLOGY This project is the mixture of theoretical as well as practical knowledge. I have visited various stores who are the best ones in retailing business. Also it contains ideas and information imparted by the guide. expectations of the consumers etc. a field survey was also conducted to find out the tastes and preferences. purchasing habits. The secondary data required for the project was collected from various websites and books of reputed authors. To add value to the project and to understand the practicality of retailing business. The project started with sorting all the raw data and arranging them in perfect order. to understand the consumers better. 53 . Analysis of this primary data has been done to actually understand the survey in a better way.
45 45 .Name : Age : Sex : Marital Status : Contact : Occupation : < 18 M Married 18-30 F Single 30 .60 > 60 ____________________________________ ________ _______ Service _ Businees _ Retired _______ _ Others _______ _ 1 Which is your preffered place to shop ? Big Baazar Reason : Low Price Reliance Store Mega More Kirana Store _______ _ Others _______ _ Others Quality Range Nearby 2 How frequently do you visit? Once in a week Twice in aweek Once in a month Depending on the need 3 How much money you spent per month on purchasing from this place ? Below 2000 2000-4000 4000-6000 6000-8000 4 What have you shopped mostly from this place ? Grocery Electronics Apparel Home Furniture 5 How did you come to know about the offers ? Hoard/Banners Catalogue Press ad 6 Please rate the players on the basis of given parameters Price Big Baazar Reliance Store Quality Big Baazar Big Baazar Reliance Store Reliance Store Above 8000 passing by word of mouth Mega More Mega More Mega More Kirana Store Kirana Store Kirana Store Others Others Others 54 Offers 7 Which offers you like most? BOGO Price Off Buy X Get Y any other .
55 .DEMOGRAPHC DETAILS The profile of the data gathered through questionnaires is summarized in the following table.
we see that out of 400 people. Gender Male Female 288 112 72 28 % Cumulative% 400 INTERPRETATIONS:From the above dig. Age 56 . FINDINGS: We found that percentage of male are more than that of female in the store.No of respondents 1 . 288 are Male and 112 are Female.
FINDINGS: People who are of age group in between 18-30 are found more inclined towards Reliance store. People of age group of 30-45(108).INTERPRETATIONS: Major age group in reliance store was between 18-30(276). 57 . 4560(8) and above 60(8) was comparatively lower than age group of 18-30.
Marital Status INTERPRETATIONS: From the above figuren we came to know that out of (400). 269 are single and 131 are married. FINDINGS: It has been found that people who are single and working use to come to Retail store as they preffer to purchase weekly rather than the married people who buy in bulk. 58 .
Occupation INTERPRETATIONS: From the above dig. FINDINGS: It has been found that service class people has to go to out every day. So. we can see that service class people(327) come frequently in the store which is more than business class(29). they need day to day products frequently. retired(8) and others. 59 .
60 . of stores of Reliance in Delhi.1. Mega More(0). NCR region. Other stores are mostly located in the big market areas. because in their opinion availability of these stores are less than reliance store. others(9) . Which is your preffered place to shop? INTERPRETATIONS: From the above table and dig we can see that maximum people prefer to go to reliance outlets(370) for their purchasing and remaining goes to big bazaar(22). FINDINGS: We can find more no.
and table we can easily understand that most of the people go to retail store because they are Near By(145) and the other reason is because of Low Price(131).Reason: INTERPRETATIONS: From the above dig. FINDINGS: People preffer to go to Retail store because of its availability and low price. 61 .
FINDINGS: Due to lack of time it has been found that people like to come mostly on weekends or holidays. from the dig we can see that maximun no. of people come once in a week.2. How frequently do you visit? INTERPRETATIONS: Most of the people visit store mainly in weekends(247) and very few comes twice in a week(130). 62 . So.
2000-4000(181) while purchasing their monthly requirements from retail outlets as compare to them who spent in between below 2K(130). FINDINGS: Generally people buy branded and well packed product like chips and biscuits etc from these retail stores.6K-8K(16) and ablove 8K(0). 63 .3. 4K-6K(73). How much money you spent per month on the purchasing from this place? INTERPRETATIONS: From the above data we see that maximum people spent in between Rs.
What have you shopped mostly from this place? INTERPRETATIONS: People generally buy fruits. 64 .4. vegetables(168) and FMCG products(HOME)(148) from these retail outlets and the sales of apparels(8) and other products are quite less as those. FINDINGS: Study shows customer visit reliance store mainly for buying fruits and vegetables and FMCG products.
5. FINDINGS: Hoard/banners are very effective source of communicating offers to public at large. 65 . How did you come to know about the offers? INTERPRETATIONS: As we see from the above table and dig that the Hoard/Banners(200) of reliance retailstores is very effective and able to attract the customer towards the store.
who have high and low purchasing power preffer to come to Reliance store as in Reliance store price of the products are low and customer always get some or the other offer in the store. Please rate the players on the basis of given parameters Price INTERPRETATIONS: From the above dig. and table we can see that maximum no. FINDINGS: It has been found that both customer. 66 . of customer come to Reliance store because reliance is known for its low price.6.
Quality INTERPRETATIONS: According to observation many customers(174) are coming to Reliance Store due to there Quality then to Big Baazar(152). FINDINGS: According to customers Reliance Store are giving good quality then others. 67 .
Offers INTERPRETATIONS: According to above figure we can see that 210 customers are coming to Reliance because of there offers other then Big Baazar(116). 68 . FINDINGS: Offers in Reliance Store attracts customers more then others.
69 . FINDINGS: People get attracted towards buy and get scheme . Which offers you like the most? INTERPRETATIONS: From the above table and dig we see that maximum people inclined towards buy and get free(232) scheme rather than others offers.7.People want tangible thing as free for buying the product.
FINDINGS: Customers come to Reliance Store and then come to know about the offers by observing them 70 .8. How do you come to know about the offers in the store? INTERPRETATIONS: With the help of the figure we came to know that most of the customers come to know about the offers by observation(362) than other ways.
9.. Have you meet with the premoting stock in the store? INTERPRETATIONS: According to figure only 175 out of 400 customers meet the promoting stock in the Store. 71 . FINDINGS: Matching to the promoting stock is little difficult for the store due to unavailability of stock.
10.What are the difficulties that you suffered in the store?
INTERPRETATIONS: 225 customers out of 400 found stock unavailable in the store other 175 customer found deley in billing. FINDINGS: Stock unavailable and deley in billing is the major problem in the store.
11.What are the things you found in the staff?
INTERPRETATIONS: According to figure, 298 customers found staff helpful and 87 found knowledgable. FINDINGS: Communication is a major problem in the store but staff is found to be helpful.
12.Do you/ family members have a Loyalty Card ?
INTERPRETATIONS: 392 customers have Loyalty Card out of 400. FINDINGS: Customers are aware of Loyalty Card
company's loyalty card do you have?
INTERPRETATIONS: 392 customers have Reliance Loyalty Cards. FINDINGS: Customers are having Loyalty card of Reliance.
Do you know the benefits of Loyalty programs? INTERPRETATIONS: 363 customers out of 400 are getting benefits from Reliance Loyalty Card. 76 .14. FINDINGS: Customers are getting benefits from card.
77 . FINDINGS: People are aware about the loyalty program and prefer points reward. Which benefits you like most? INTERPRETATIONS: We see that maximum people are aware of our membership scheme and they like the points reward very much.15.
Have you discussed about benefits of loyality card with your friends/ family? INTERPRETATIONS: 334 customers out of 400 have aware of card and also spreading it’s knowledge among others. 78 . FINDINGS: Customers are aware of spreading the importance of Card.16.
79 . F&V is the major footfall driver in the Reliance Fresh Store. Reliance Fresh should improve its operations in its Fruits and Vegetable section as it has been seen that people coming just to buy fruits and vegetables go ahead and buy other products in the store. During the course of study it was found that Queuing problem exists at the billing counters which need immediate attention.Conclusion Reliance Fresh has a tremendous potential where it can improve its revenue drastically by concentrating on its existing customer base. As in the research findings it is very clear that even regular customers are still not spending major part of their monthly expense in the Reliance Fresh Store. This problem can be sorted by improving operational efficiency by way of better managing the staff available at the stores.
2007).com 81 . “Consumer Decision Making & Beyond”. 2008). “Analysing Consumer Markets”. 8th ed.com www. 550 – 626. Retailing Management 5th Edition (Tata McGraw-Hill. Koshy & Jha. 570 – 571. Marketing Management (Pearson Education. Marketing Whitebook 2011-2012 www. 2007). Kotler. 2004).cpasind. “Retail Store Operations”. (Prentice Hall of India. Keller. Leon G. Consumer Behaviour. Schiffman & Leslie Lazar Kanuk. 166 – 167. 272 – 280.Bibliography I have made this report by the help of internet and some books details of which are mentioned below. Michael Levy & Barton A Weitz. (Tata McGraw-Hill. Swapna Pradhan.ril. Retailing Management 2nd ed. “Store Management”.