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Presented to Mr. mohammed Wasim,
Ashish Sharma Diawakar pandey Surrender k jaiswal R vijay Ragavan Sujit k gupta Ashish
Post Graduate diploma in management (2009-2010)
we would thank to Mr.Sindwani to provide us relevant information for this Project.Acknowledgement This project report was written on Saturday of year 2009 and is the result of weeks of hard work. This study would not have been possible conduct without your help. First of all. Additionally we would like to express our gratitude to Mr. A study like this can not be completed without help from other persons and therefore we would like to express our gratitude to all persons having contributed to completition of this project. Furthermore. Big Bazaar. we hope to develop a futuristic view of industry¶s progress. wasim Head saturday development day. SNIPERS PGdbm (2009-2011) Dated- 2 . rajiv tewari and Mr. we would like to thank our friends and family member for giving us constant support and encouragement. Thank you for allocating this project. throughout the writing of this report. These 4 weeks have been a very interesting period that has provided us with a deeper knowledge about the area of Store operation. Finally. inspiration. Who has been provided us with guidance. we would like to thank our mentor Mr. prashant singh Store Manager. With this project.Trilok N. perspective and stimulating discussion. new delhi. vasant square mall.
Future Group Manifesto ««««««««««««««««««««««.16 5.. Executive Summery««««««««««««««««««««««...«.14 4.. Company Profile «««««««««««««««««««««««««..««««««««««««««««««.Table of Contents 1.5 3.. Findings««««««««««««««««««««««««. Retail Scenario of New Delhi ..«««««19 7.«««...««.18 6.20 3 .3 2... India Retail Scenario«««««««««««««««««««««. Hierarchy of Pantaloon (Future Group)«««««««««««««««««..
000 people. is India¶s leading retailer that operates multiple retail formats. 4 .000 Crores by 2010. Textiles & fashion accessories as the highest contributor (39%). which was only 3% of the total retailing market. Pantaloon Retail (India) Limited.a. the size of Indian organized retail industry was Rs 28. With the metros already been exploited. In India. Rs 28.000 Crores. and is estimated to reach an astounding Rs 1. Food & Grocery contributed to 18% whereas Pharma Retail had a contribution of 2%. the focus has now been shifted towards the tier-II cities**. has over 450 stores across 40 cities in India and employs over 18. The projection for the current year ie 2005 is Rs 35. it has been found out that the top 6 cities contribute for 66% of total organized retailing. where as health & beauty had a contribution of 2%.00.Executive Summary Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 2004. Retailing in its present form started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. Organized retailing in India is projected to grow at the rate of 25%-30% p. The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade.000 Crores.000 Crores organized retail industry had Clothing. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. the company operates over 5 million square feet of retail space. 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. In the year 2004. The 'retail boom'. It is the 3rd largest employer segment in USA.
There is stable 8 % annual growth.3 2003 8.INDIAN RETAIL SCENARIO OVERALL INDIA VIEW Area(`000 sq km) =3.2 GDP Growth(%) CPI(%) Source : EIU. y y y Rising foreign exchange reserves of close to USD 140 billion.3 3. India is now preferred investment destination and has surpassed the U.2%. Export surge in excess of 20%. in the world after China. This altogether enable the Indian economy to expand in coming years.8 2004 8.8 2005 8.5 4.300 Population(million) =1.5 3.6 4. July 2006 5 . ¸ Investment eccentric : With a rapidly expanding consumer base (private consumption currently account for 61% of India¶s GDP) and stabilized consumer price index rate 4.S to become the second most favourable destination for FDI. Consistent and flowing Foreign Direct Investment(FDI) of close to UDS 8 billion. GDP and CPI 2002 3.095 Medium Age =25 years Government Type =democratic ¸ Economic Overview : Indian is currently undergoing an economic revolution which is generating fast-paced changes and development.
6 Source : EIU.8 2009 29.7 63.4 4.6 2004 31.7 DEMOGRAPHICS AND CONSUMER BEHAVIOUR A growing population.5 2005 295293. Age profile % of total population 0-14 years 15-64 years Over 65 years 1999 34.6 65.3 2004 248062.2 FDI (FDI bn) 5. July 2006 6 . a youthful workforce and soaring consumer confidence are solid argument for long term growth.3 2005 1095.FOREIGN DIRECT INVESTMENTS: Foreign direct investment is opened to single brand retailers.0 61. Steady increase in FDI 2002 FDI (INR m) 273530. y y A growing population.4 6.1 2004 1080. is estimated to 1095mn.2 Trend Source : EIU.7 2003 1065. July 2006 2003 201379. India will have second highest population in world after China. a youthful workforce and soaring consumer confidence are solid argument for long term growth.6 4. India¶s population in 2005. 2002 1049.2 Population (mn) More than 50% of the India¶s Population is less than 25 years of age compared to others developed countries.2 5.5 4. By 2016.4 5.
ft.of Total Total Expansions Stores Retail Sales Plans Space(µ000 2004sq ft) 05(USD mn) Pantaloon Department Pantaloon 13 1. Hypermarket Big Bazaar 18 N/A N/A Triple total Retail area by FY08 to 6.Indian Retail market is estimated to be worth USD 350 billions.MAJOR RETAIL PLAYERS Comprised of organized and traditional retail formats. o TOP MAJOR RETAIL PLAYERS Retailer No. o Of india¶s 12 millions retail outlets.Burgeoing growth rate in the retail industry are attributed to growth in India economy. Supermarkets Food 9 N/A N/A Enter into Bazaar Furniture and home retailing. o The retail industry represents 13% of GDP and accounts for 6% of india¶s work force. Open 80-100 more stores across formats. Organised Retail is estimated at USD 8 billions. Seamless Central 3 N/A N/A Malls RPG Hyper markets Spencer¶s 3 480 96 Open 21 Retail hypermarkets and supermarkets Existing formats Brand Names 7 .948 241 Invest around Retail store USD125 mn Indian Ltd between FY06-FY08.Organised Retail is growing at over 30% annually.5 mn Sq.more than 80% are operated by small family business using household loabour.rising income and changing consumption and expenditure patterns.
stores Stop 49 20 N/A 1000 N/A 96 Books & Crosswords 33 Music Stores N/A N/A Home furnishing Home Stop N/A N/A N/A Landmark Department Group Stores (Based in Dubai) Lifestyle 8 370 67 Trent Department India Ltd Stores West side 19 350 52 Hypermarkets Star India Bazaar 1 N/A N/A Books & Land Mark 4 Music Stores N/A N/A 8 . Open 17 Stores under the departmental and Hypermarket formats by FY08. of Retail Space. Super markets Spencer¶s Shopper¶s Department Shopper¶s Stop Ltd.Music Stores Music world 225 N/A N/A Open another 100 Music Stores in FY08. Invest USD 65mn over next 5 years. 18 Stores planned by FY08 Setting up Speciality Stores for Home Solutions. of Retail Space in FY08 Entering Hypermarket format. Ft.000 sq.ft. Set up 25 New Departmental stores by FY08. Add 2 mn Sq. Add 640.
of Malls Pune 9 Ahmedabad 5 Tier II Cities 81 Total 220 Let us look at the evolution process Detailing reasons why Indian organized retail is at the brink of revolution. of Malls 60 28 15 9 9 4 125 Mini Metropolitan Cities No. Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. Raheja.Malls in India (till 2007) Metropolitan Cities National Capital Region Mumbai Hyderabad Bangalore Kolkata Chennai Sub Total No. Reliance. Retail Space is no more a constraint for growth. India is on the radar of Global Retailers and suppliers / brands worldwide are willing to partner with retailers here. Further. Bombay Dyeing. ITC. the IMAGESKSA report says that the last few years have seen rapid transformation in many areas and the setting of scalable and profitable retail models across categories. large Indian corporate groups like Tata. Murugappa & 9 .
Piramal Groups etc and also foreign investors and private equity players are firming up plans to identify investment opportunities in the Indian retail sector. Investments into the sector are estimated at INR 2000 . and over INR 20.000 Crore by end of 201 10 . The quantum of investments is likely to skyrocket as the inherent attractiveness of the segment lures more and more investors to earn large profits.2500 Crore in the next 2-3 years.
mBazaar and Star and Sitara. Pantaloon Retail is the flagship company of Future Group. blends the look. futurebazaar. convenience and quality and Central. The company¶s leading formats include Pantaloons.Company Profile:- Pantaloon Retail (India) Limited. is India¶s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. operates Home Town. Shoe Factory.000 people. a uniquely Indian hypermarket chain. a business group catering to the entire Indian consumption space. Collection i. Depot. selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Top 10. aLL. A subsidiary company. a chain of seamless destination malls. a chain of fashion outlets. Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Brand Factory. Fashion Station. Food Bazaar. touch and feel of Indian bazaars with aspects of modern retail like choice. The company also operates an online portal. has over 450 stores across 40 cities in India and employs over 18. Blue Sky. a supermarket chain. Some of its other formats include. Headquartered in Mumbai (Bombay). Big Bazaar.com. the company operates over 5 million square feet of retail space. a large-format home solutions store. Home Solutions Retail (India) Limited. 11 .
Future encourages us to explore areas yet unexplored. We will not just post satisfactory results. Retain Values. do just one thing. achievement. We will be the trendsetters in evolving delivery formats. 12 . growth. Group Mission We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. It is this understanding that has helped us succeed. we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. And it is this that will help us succeed in the Future. create new opportunities and new successes. associates and partners. we will write success stories. beauty. Thereby. We will not just spot trends. creating retail realty. how and when they need. strength. rewards and perfection. Rewrite Rules. our ability to learn. making consumption affordable for all customer segments ± for classes and for masses. our ability to evolve. will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. in Future Group. Group Vision Future Group shall deliver Everything. we will evolve it. shareholders. We. We will not just operate efficiently in the Indian economy. unlearn and re-learn. Our customers will not just get what they need. Everywhere. We shall keep relearning. employees. we will effect socio-economic development for our customers. write rules yet unwritten. but also get them where. To strive for a glorious future brings to us our strength. Everytime for Every Indian Consumer in the most profitable manner. And in this process.Future Group Manifesto ³Future´ ± the word which signifies optimism.
sincerity. to meet challenges. We shall ensure that our positive attitude. Introspection: leading to purposeful thinking. Respect & Humility: to respect every individual and be humble in our conduct. Core Values Indian ness : confidence in ourselves. Leadership: to be a leader. Adaptability: to be flexible and adaptable.conscious and committed to quality in whatever we do. Openness: to be open and receptive to new ideas. cost. 13 . Simplicity & Positivity: Simplicity and positivity in our thought. both in thought and business. business and action. Valuing and Nurturing Relationships: to build long term relationships. We shall be efficient. knowledge and information.We shall infuse Indian brands with confidence and renewed ambition. humility and united determination shall be the driving force to make us successful. Flow: to respect and understand the universal laws of nature.
Gopikishan Biyani. Ved Prakash Arya. Wholetime Director Mr.Integrated Merchandising Group CEO . Independent Director Ms. D O Koshy.Incubation & Innovation CEO . Independent Director Ms.Hierarchy of Pantaloon (Future Group) Mr. S Doreswamy. Managing Director Mr.Central & Brand Factory 14 . CEO .General Merchandising CEO . Independent Director Mr. Wholetime Director Mr. Rakesh Biyani. Anil Harish. Independent Director Dr. Independent Director Rakesh Biyani Anshuman Singh Damodar Mall Hans Udeshi Hemchandra Javeri Kailash Bhatia Madhumati Lele Rajan Malhotra Sadashiv Nayak Sanjeev Aggarwal Vishnu Prasad CEO ± Retail CEO . Bala Deshpande.Home Solutions Retail (India) Ltd.Services CEO . Shailesh Haribhakti. Independent Director Mr.Food Bazaar CEO ± Pantaloons CEO .Value Fashion CEO . Director Mr.Big Bazaar CEO . Kishore Biyani. Anju Poddar.
Operations (West Zone) Head .Human Resources Executive Board Member Head .Group IR & New Ventures (PE) Head . These stores contributed over Rs. 2.Operations (South Zone) Head .Kruben Moodliar Mayur Toshniwal Rajesh Joshi Rohit Malhotra Sandeep Marwaha Sanjay Jog Ushir Bhatt Atul Takle Prashant Desai Vinay Shroff President. It has changed the customer¶s perception to that extent that they have already started to realize that Big Bazaar can provide real value for their money.Corporate Communications Head .43 crores to the company¶s business and over Rs. 15 .Supply Chain Management Big Bazaar-A paradigm shift to the Modern Retail Bazaar Big Bazaar PRIL¶s Hypermarket format that truly heighten up the expectation of value concisious Indian customer to a new level ever before.Operations (East Zone) Head .Operations (North Zone) Head .Operations (Value Retailing) Head .89 crores to the PBDIT in first year it self. The first store opened in Kolkata in 2001 at VIP and was followed by stores in Hyderabad and Bangalore in short span of 22 days.
In case if it¶s a relatively new store then past sales data of other stores of same retail chain can be used to anticipate the sales volume. we had specifically studied those three days of Mega sale at Big Bazaar. While we were juggling customer on the shop floor at various departments. 1. We realized that customer is somewhat willing to forgive a bit despite their inconvenience because of the understanding of difficulties of store personals and management people. we were noticing that stocks were disappearing very quickly but replenishments were not done at timely manner and because of this a lot of customers were going back without making any purchase.Forecasting is to done in well advance . pay the bill. if we will take care of those areas and fix them as soon as possible then overall profitability of the store and customer¶s shopping experience would be definitely better then before. enter the store . 125 cores and in 2008 it has made a sale of whopping Rs. many customers were leaving their baskets within the store. stock replenishments and customer satisfaction We have found that few areas need some attention from the management side. Kolkata) like customer handling. We noticed several scope of improvement in the Big Bazaar store (Lee Road. even worse enter into the store. Findings We have studied each scope of improvement and tried our best to make a proposition. So to improve the overall sales volume and profitability of the store management has to take necessary steps .In the 2007 customer had spent Rs. 2.Sabse Sasta 3 din Science. During Big sale days we have noticed that hundreds of customers were waiting on queues . But. which have drawn our attention.The line never stop to buy a product.To reducing the customer wait time we can implement 16 . 2006 Republic day¶s mega sale of Big Bazaar has been generating a unprecedented response from customer. After selecting products.These queues deter many customers to make a purchase.300 cores During our project period. Our proposition to fix this situation that respective Category managers as well as Department managers need to be careful about the backup stock . Its now been extended for three days .
That allows the customer to scan the merchandise as they pick the products off-the-shelf. I-Scan (Symbol Technologies-New York) its a generation in precision replenishment. Big Bazaar can thinks over another interesting technology to deploy to make better shopping experience for its customers especially on the extreme occasions. create desire and finally increase store traffic and sales volume. it is about implementing effective design. which will offset the initial investments. if the payment is not accepected by the handheld machine. Once the shopping is completed.µQueue Buster¶ A handheld device . Findings We noticed few section of store¶s trading area wherein some scope of improvement lies. especially apparel is very important if retailer wants to increase the sales volume of those categories. b) If any thing goes wrong. if visual merchandising of those area can be taken care of. Visual Merchandising What is VM? VM is art and science of displaying merchandise within store.printer . Initial investment for implementation of these technologies might be high but they definitely improve the overall store profitability. thus saving them significant amount of shopping time.computer.In this way customer¶s can check out process will be faster in two ways a) Customers can get their bill¶s printout paid off bill amounts either in cash or credits to store personals who are using the handheld devices. they can handover the device to the customer service desk and can cash-out quickly. Because research¶s shown that customer 17 . ideas to educate customer. then also customers reached the POS counter with mobile POS receipts could make the check out process faster by checking out the receipts they have got from the mobile printers and keep their cash ready when they arrived at cashiers. swipe card reader .it¶s a mobile handheld it sported a barcode reader . then possibility of increase in the some particular category¶s sales is quite high The visibility of certain categories.
We found customers ware not so happy with the verity and the rang we have. People generally came from vicinity of the store.y People generally search for the product on offer so the high margin product should be up fronted that means those item should be in the eye height so that it¶s easily catches customers attention and generate impulse purchase y We have also noticed improper. Although there was a lot of impulse purchase also. inadequate some time no signage which creating inconvenience for the customer & ultimately hampering the sale Demographics of Catchments For the frontline employee it¶s easier to judge the customer profile & behavior. Many of them ware not too happy with the level of service also . One thing was always in the back of their mind is the word SASTA. They want more verity to choose form. Marwari community and age approx 20-70 but mostly between 30-60. although a few ware come form outside of the Kolkata also. because they are the one who come in direct contact with the customer. As we have worked there for three days we also find some interesting fact about the customers. 18 . Sindhi. Nevertheless offers ware the main crowd puller. I found a high conversion rate in the customer at least in croaky and they all want to avail the offer. Customer ware mostly Bengali & form Gujrat. So in that way the job of a frontline staff is also quit important and the same time challenging.
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