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Study of Retail Strategy in Organized Retail for Consumer Electronics Submitted to: - Prof. J. Bose. 18/9/2010 Submitted by: - Nishikant Mishra PG09068 Pragya Kumari PG09075 Nitin Garg PG09069 Rahul R. Choubey PG09080 Shrisha Jha PG09098 Abhishek Gupta PG09126 Retail Management 1 A PROJECT REPORT ON Study of Retail Strategy in Organized Retail for Consumer Electronics NAME OF ORGANIZATION NEXT RETAIL INDIA LTD UNDER THE GUIDANCE OF PROF. J. BOSE INTEGRATED ACADEMY OF MANAGEMENT AND TECHNOLOGY, GHAZIABAD (NCR) 2 ACKNOWLEDGEMENT "Gratitude is not a thing of expression; it is more matter of feeling." To acknowledge, it would be a word too small for the help and guidance extended by all the people involved in my project as my mentors. There is always a sense of gratitude which one express towards others for their help and supervision in achieving the goals. This formal piece of acknowledgement is an attempt to express the feeling of gratitude towards people who helpful me in successfully completing of my training. My success at NEXT RETAIL INDIA LTD. was because of the contribution and guide provided to me by the Institute itself. My sincere acknowledgements are due to them. To begin with, we would first like to thank Mr. RAJESH MOHILE and Mr. RAHUL BHUTANI (Zonal Marketing Manager) for giving me the opportunity to work with NEXT and get in depth knowledge about the Strategy Used in Retail. We would also like to thank Mrs. LORITTA (HR Manager) and Mr. LALIT (IT) for valuable support and help. We would also like to express my sincere thanks to Prof. J. Bose for his timely help and advice. Last but not least we would like to thank to Gaurav Thakur and Priya Sinha for giving their precious time and relevant information and experience, we required, without which the Project would have been incomplete. 3 PREFACE Research work in management is extremely important for it gives a close view of the real business world and bridges the gap between theory and practical. For any MMS student who is striving to perform outstanding, it is of paramount importance that apart from theoretical knowledge one must also gain practical knowledge. Which in turn widely influence their conceptions and perceptions? This project was undertaken towards the partial fulfillment of the requirements “Integrated Academy of Management and Technology, Ghaziabad.”, . This really provided us an opportunity to demonstrate our ability in applying theory to practical business situations. The study undertaken by my team is “Study of Retail Strategy in Organized Retail for Consumer Electronics”. In this, we have tried to perform our best. 4 Executive Summery Objective of research; Study of Retail Strategy in Organized Retail for Consumer Electronics, Which retail strategy is appropriate for customer to come across the electronic product? How can certain retailing decisions influence them to buy product.  How Location helps attracting customers towards store? What is their expectation about feature of product while looking to certain retail outlets? To know for which media customer can give times like print, audio, visual. To know how is customer come to know about electronic product before buying it. Findings after Research on Study of Retail Strategy in Organized Retail for Consumer Electronics, is as follows, The most important strategy is determination of 4 P’s and 7 P’s also how you give importance to your customer in respect to their pride and image. The post purchase behavior of customer is always given more Weightage. The store location decision has become the most impeccable strategic decision because location strategy is most valued in retailing. When there is availability of different media for advertisement like print, audio and visual these media have different impact on customer so today in competition it become necessary to adopt media which will fulfill the expectation of customer because every product is not self explanatory so retailer has to take care of all the things should be include in ads and it becomes the push strategy towards the outlet, in case of consumer electronic customer wants all the feature about product its price, variety of brand their services. I observed today customer become so conscious about shopping they does not want to take risk for 2nd purchase so before purchase they concentrating first on price then variety of brands, looks of product, its sales after services, technology used in it, retailer has to take care their preference. 5 No. Index Page No. 1 Next Retail India LTD 7 2 Retail Market In India 14 3 Retail Strategy and structure 18 4 Retailing Decision 27 5 SWOT Analysis of Next 38 6 BCG Matrix of Next 39 6 Questionnaire 42 7 Graphical Représentation of Questionnaire 45 8 Suggestion and Recommendation 57 9 Conclusion 58 10 Bibliography 59 Next Retail India LTD NEXT Retail India Ltd. is India’s largest electronic Retail Chain incorporated in 2003. Next is one of the emerging giants in organized retailing of consumer electronics, home appliance, IT, imaging, accessories and small home appliances. It has been formed to tap the immense potential promised by the retail industry. NEXT is a multi-brand multi-product showroom and stocks an entire range of consumer durables. Right from air-conditioners, LCD and 6 Plasma TVs, home theater systems, washing machines, refrigerators, microwaves to small home appliances. NEXT retails some of the most popular brands such as LG, Samsung, Sony, Electrolux, Kelvinator, Whirlpool, Onida, Philips, Kenstar, Videocon, Sansui, including its own brand under its stable. NEXT also stocks Xbox of Microsoft, computers & laptop of Acer, HCL, Lenovo and HP. The company is independently managed by the board of Directors currently operating over 348showrooms across 16 states with a presence in 187 cities & towns spanning metros and large towns under the brand name of “NEXT”. NEXT Retail India Limited has tied up with all the leading brands of national and international repute which are showcased under one roof and would combine the best in quality, service, convenience and price. NEXT Retail India Limited also plans to spread its roots into Apparel and lifestyle segments separately. We have already launched our showrooms all across the country and are rapidly expanding our network in all regions and major states in the country Next aims at changing the way an Indian consumer shops for electronics and plans to build a chain of over 1,000 showrooms throughout the country with an estimated annual turnover of Rs. 3,000 crore in the next three years. NEXT has more than doubled its last year’s turnover in the current financial year. Plans ahead are more ambitious with a targeted turnover of 1800 Crs for next year with 600 plus showrooms. NEXT has opened up a world of choices for shopping enthusiasts (including homemakers), across all demographic and psychographic segments. Mint – Pitch – Synovate India Retail Brands Survey 2007* rated NEXT as all India No. 1 in consumer satisfaction in the consumer durables category. In the Consumer Survey NEXT scored 1345 on satisfaction index which is way ahead of its closest competitor (with an index of 482). The Survey finding is an endorsement of NEXT leading the organized consumer durable retail sector and the destination point for consumers Organization Structure 7 NEXT Retail outlet all over the India M arketing 8 Planning & Pr Our Vision The vision of NEXT is to be the number one in the retail field in our category and to become a globally recognized company through innovation, passion through quality, freedom through empowerment and cost through volumes. We should 9 imbibe a world class system to bring in delight to all our associates and the society at large. Our Mission The mission of our enterprise is to create unique customer satisfaction through innovation, quality, productivity, human resource development, continuously striving for excellence with pride in our values and confidence in our approach. Business Categories Consumer Electronics • LCD, CTV, DVD, Audio & Home Theatre. LCD segment would be the fastest growing sub category Contributes 44 % of the total Sales Home Appliances • Refrigerators, AC, Washing Machine Category, would be expanded in current financial year across India • Contributes 44% of the total sales IT & Gaming • Laptop, Desktop, DTH, Imaging, Gaming, Printer & Accessories Digital Camera’s, Camcorder’s newly introduced Contributes 5% of the total sales Small Home Appliances • Microwave, Food Processors, Water Purifiers, Toaster etc. Contributes 7 % of the total Sales Need of Advertisement 10 Advertising is a form of communication used to influence individuals to purchase products or services or support political candidates or ideas. Frequently it communicates a message that includes the name of the product or service and how that product or service could potentially benefit the consumer. Advertising often attempts to persuade potential customers to purchase or to consume a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, billboards or direct mail. Advertising may be placed by an advertising agency on behalf of a company or other organization. Organizations that spend money on advertising promoting items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Non-profit organizations may rely on free modes of persuasion, such as a public service announcement. According to William J. Stanton, "Advertising consists of all the activities involved in presenting to an audience a non-personal, sponsor-identified, paid- for message about a product or organization.” Advertising is any paid form of non-persona: presentation and promotion of ideas, goods or services of an identified sponsor. The message which is presented or disseminated is known as ‘advertisement'. Features of Advertising American Marketing Association has defined advertising as "any paid form of non- personal presentation and promotion of ideas goods and services of an identified sponsor". This definition reveals the following features of advertising: 1. It is a paid foam of communication. Advertisements appear in newspapers, magazines, television or cinema screens because the advertiser has purchased some space or time to communicate information to the prospective customers. 2. It is non-personal presentation of message. There is no face-to-face direct contact with the customers. That is why, it is described as non-personal salesmanship. 11 It; is a non-personal form of presenting products and promoting ideas and is complementary to personal selling. It simplifies the task of sales-force by creating awareness in the minds of potential customers 3. The purpose of advertising is to promote idea about the products and service, of a business. It is directed towards increasing the sale of the products and services of a business unit. 4. Advertisement a issued by an identified sponsor Non disclosure of the name of the sponsor in propaganda may lead to distortion, deception and manipulation. Advertisement should disclose or identify the sources of opinions and ideas it presents. TYPES OF ADVERTISING 1. Consumer-oriented or Persuasive Advertising. Persuasive advertising surrounds our daily lives, telling us to buy particular products or services. It helps in creating and maintaining regular demand in the market. Persuasive advertising also helps attract the attention and preference of the customers. It informs the target audience about the various schemes of sales promotion. Ex. Rs. 200 off on every purchase of food processer, free. The objectives of consumer-oriented advertising areas under. (I) To inform consumers about new products. (ii) ,To hold consumer patronage against intensified campaign. (:iii)To teach how to use the product. , iv) To promote a contest or a premium offer. (v) To establish a new trade character. 2. Informative Advertising, Purchases of durable products are made once in s life- time. These are often expensive, so the potential buyer requires detailed information about them e.g., TV sets, refrigerators, air-conditioners and washing machines The manufacturers spend a lot on informative advertising. 3. Institutional or Corporate Advertising. 12 The main objective of this type of advertising is building a corporate image. Corporate advertising highlights, therefore, the objectives and achievements of a company. Big companies such as Godrej, TELCO, Reliance, JK Cement, Bombay Dyeing, etc. resort to this type of advertising. The institutional advertising campaigns have the following objectives : (I)To create a corporate personality of image. (ii) To build a company prestige. (iii)To emphasize company services and facilities. (iv) To enable company salesman to see top executives of various organizations when making sales calls. (v) To increase consumer friendliness and goodwill towards the company. 4. Financial Advertising. Financial advertising refers to advertisements issued by financial institutions like banks, UTI, GIC. LIC and company's/corporation's sale of shares. These advertisements provide information about investment opportunities, with its attendant risks and benefits. 5. Classified Advertising. Classified advertisement refers to the messages which are placed under specific or particular headings and columns in newspapers and magazines e.g. Situations Vacant, For Sale and Matrimonial. 6. Govt. Advertising. It is conducted by Govt. Departments Undertakings to promote public awareness with a view to overcome social problems like dowry, drinking, AIDS, environmental pollution and overpopulation. Since such advertising has a social purpose, it is also known as social advertising. RETAIL MARKET IN INDIA Fundamentals of Retailing Retailing is still in its infancy in India. In the name of retailing, the unorganized retailing has dominated the Indian landscape so far. Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shake-up as the country is 13 witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places be it – metros or the smaller cities, across the length and breadth of the country. A Retail business offers a wide variety of products (width) or depth of products or both, supplied by multiple vendors from various geographic locations across diverse supply chains, to thousands of seemingly individualistic customers at their preferred time and place and at a competitive price and expects to earn a decent margin. Online retailing, also known as e-commerce is the latest form of non-shop retailing. Retail business operates on razor thin margins hence protecting and exceeding the expected return from the business i.e. margin management is a critical aspect of a retail business. Business Scenario in Retail  Retail industry is the largest industry in India, with an employment of around 8.5% and contributing to over 10% of the country's GDP  Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.  It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.  It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.  The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010.  There are under construction at present around 325 departmental showrooms, 300 new malls, and 1500 supermarkets.  India ranked first for the third consecutive year, on the Global Retail Development Index – 2007, conducted by AT Kearney across 30 emerging economies. India is ranked as the most preferred retail destination for international investors.  Over 12 million small and medium retail showrooms exist in India, the highest in any country.  Traditional retail is highly pronounced in small towns and cities with primary presence of neighborhood “kirana” showrooms, push-cart vendors, “melas” and “mandis”. Current Retail Industry Status : 14  World’s largest private industry  S$ 6.6 trillion sales annually – Dominated by US, Japan, U.K, Germany & France – Supermarkets & Hypermarkets & Convenience Showrooms are the dominant formats  Sales of Top 250 retailers totaled $2.84 trillion  Wal-Mart sales at $315 billion followed by Carrefour at $ 90 billion  In contrast the total Indian retail market stood just over USD 300 billion  Key Trends in Urban India:  Retailing in India is witnessing a huge revamping exercise.  India is rated the fifth most attractive emerging retail market: a potential goldmine  Food and apparel retailing key drivers of growth.  Organized retailing in India has been largely an urban phenomenon with affluent classes and growing number of double-income households. Available Routes for Foreign Players to Enter the Retail Sector Strategic License Agreements This route involves foreign company entering into a licensing agreement with a domestic retailer or partnering with Indian promoter owned companies. Cash and Carry Wholesale Retailing 100% Foreign Direct Investment is allowed in wholesale trading which involves building of a large distribution network. Distribution An international company can set up a distribution office in India and supply products to the local retailers. Franchisee showrooms can also be set up in this route. Franchisee Route 15 This entry route is widely used, with many international brands setting up shop. There exists the master franchise route and the regional franchise route for India entry. Manufacturing Company can establish its manufacturing unit in India along with standalone retailing showrooms Joint Venture International firms can enter into agreements with domestic players and set up base in India. Share of MNC s is restricted to 49% in this route Retailing Formats in India Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, and Pantaloon. Department Showrooms: Departmental Showrooms are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in NCR and now has more than seven large showrooms (over 30,000 sq. ft) across India and even has its own in showroom brand for clothes called Stop!. Specialty Showrooms: Chains such as the Bangalore based Kids Kemp, the NCR books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors. Hyper marts/Supermarkets: Large self service showrooms, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These 16 showrooms today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales. Discount Showrooms: As the name suggests, discount showrooms or factory showrooms, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods. Convenience Showrooms: These are relatively small showrooms 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. Department Showrooms: Large showrooms ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. MBO’s: Multi Brand showrooms, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros RETAIL STRATEGY AND STRUCTURE Successful retail operations depend largely on two main dimensions: margin and turnover. How far a retail enterprise can reach in margin and turnover depends essentially on the type of business (product lines) and the style and scale of the operations. In addition the turnover ,also depends upon the professional competence of the enterprise. In a given business two retail companies may choose two different margin levels, and yet both may be successful, provided the strategy and style of management are appropriate. 17 1.4.1 Margin Turnover Model Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for understanding the retail structure and evolving a retail strategy." Margin is defined as the percentage mark tip at which the inventory in the store is sold and turnover is the number of times the average inventory is sold in a year. Fig. 2 is a diagrammatic representation of the frame work and can be applied to almost any type of retail business. Depending upon the, combination of the two parameters, a retail business will fall into one of the four quadrants. For instance L-L signifies a position which is low on both margin and turnover; whereas, H-L indicates high margin and low turnover. Low Margin High Turnover Stores Such an operation assumes that low price is the most significant determinant of customer patronage. The stores in this category price their products below the market level. Marketing communication focuses mainly on price. They provide very few services; if any, and they normally entail an extra charge whenever they do. The merchandise in these stores are generally pre-sold or self sold. This means that the customers buy the product, rather than the store selling them. 18 These stores are typically located in isolated locations and usually stock a wide . range of fast moving goods in several merchandise lines. The inventory consists of well known brands for which a consumer pull is created by the manufacturer through national advertising. Local promotion focuses on low price. Wal-mart in the United States is an example and Pantaloon Chain or Subhiksha are Indian examples of such stores. High Margin Low Turnover This operation is based on the premise that distinctive merchandise, service and sales approach are the most important factors for attracting customers. Stores in this category price their products higher than those in the market, but not necessarily higher than those in similar outlets. The focus in marketing communication is on product quality and uniqueness. Merchandise is primarily sold in store and not pre-sold. These stores provide a large number of services and sell select, categories of products. They do not stock national brands which are nationally advertised. Typically, a store in this category is located in a down town area or a major shopping center. Sales depends largely on salesmanship and image of the outlet. High Margin High Turnover Stores These stores generally stock a narrow line of products with turnover of reasonably high frequency. They could be situated in a non commercial area but not too far from a major thoroughfare. Their locational advantage allows them to charge a higher price. High over head costs and, low volumes also necessitate a higher price. 19 Low Margin-Low Turnover Stores Retail enterprises in this category are pushed to maintain low margins because of price wars. Compounding this problem is the low volume of sales, which is probably a result of poor management, unsuitable location etc. such businesses, normally get wiped out over a period of time. RETAILING FORMATS (CLASSIFYING RETAIL FIRMS) Regardless of the particular type of retailer (such as a supermarket or a department store), retailers can be categorized by (a) Ownership, (b) Store strategy mix, and (c) Non store operations. Figure 1.3 illustrates this concept. 20 1. Form of Ownership A retail business like any other type of business, can be owned by a sole proprietor, partners or a corporation. A majority of retail business in India are sole proprietorships and partnerships. 2. Independent Retailer Generally operates one outlet and offers personalized service, a convenient location and close customer contact. Roughly 98% of all the retail businesses in India, are managed and run by independents, including barber shops, drycleaners, furniture stores, bookshops, LPG Gas 21 Agencies and neighborhood stores. This is due to the fact that into retailing is easy and it requires low investment and little technical knowledge. This obviously results in a high degree of competition.. Most independent retailers fail because of the ease of entry, poor management skills and inadequate resources. 3. Retail Chain It involves common ownership of multiple units. In such units, the purchasing and decision making are centralized. Chains often rely on, specialization, standardization and elaborate control- systems. Consequently chains are able to serve a large dispersed target market and maintain a well known company name. Chain stores have been successful, mainly because they have the opportunity to take advantage of "economies of scale" in buying and selling goods. They can maintain their prices, thus increasing their margins, or they can cut prices and attract greater sales volume. Unlike smaller, independent retailers with lesser financial means, they can also take advantage of such tools as computers and information technology. Examples of retail chains in India are Shoppers stop; West side and IOC, convenience stores at select petrol filling stations. 4. Retail Franchising 22 Is a contractual arrangement between a "franchiser" (which may be a manufacturer, wholesaler, or a service sponsor) and a "franchisee" or franchisees, which allows the latter to conduct a certain form of business under an established name and according to a specific set of rules. The franchise agreement gives the franchiser much discretion in controlling the operations of small retailers. In exchange for fees, royalties and a share of the profits, the franchiser offers assistance and very often supplies as well. Classic examples of franchising are; McDonalds, Pizza Hut and Nirulas. 5. Cooperatives A retail cooperative is a group of independent retailers, that have combined their financial resources and their expertise in order to effectively control their wholesaling needs. They share purchases, storage, shopping facilities, advertising planning and other functions. The individual retailers retain their independence, but agree on broad common policies. Amul is a typical example of a cooperative in India. Store Strategy Mix Retailers can be classified by retail store strategy mix, which is an integrated combination of hours, location, assortment, service, advertising, and prices etc. The various categories are: (A)Convenience Store: Is generally a well situated, food oriented store with long operating house and a limited number of items. Consumers use a convenience store; for fill in items such as bread, milk, eggs, chocolates and candy etc. 23 (B)Super markets: Is a diversified store which sells a broad range of food and non food items. A supermarket typically carries small house hold appliances, some apparel items, bakery, film developing, jams, pickles, books, audio/video CD's etc. The Govt. run Super bazaar, and Kendriya Bhandar in Delhi are good examples of a super market. Similarly in NCR, we have Apna Bazaar and Sahakari Bhandar. (C)Department Stores: A department store usually sells a general line of apparel for the family, household linens, home furnishings and appliances. Large format apparel department stores include Pantaloon, Ebony and Pyramid. Others in this category are: Shoppers Stop and Westside. (D)Specialty Store: Concentrates on the sale of a single line of products or services, such as Audio equipment, Jewellery, Beauty and Health Care, etc. Consumers are not confronted with racks of unrelated merchandise. Successful specialty stores in India include, Music World for audio needs, Tanishq for jewellery and McDonalds, Pizza Hut and Nirula's for food services. (E)Hyper Markets: Is a special kind of combination store which integrates an economy super market with a discount department store. A hyper market generally has an ambience which attracts the family as whole. Pantaloon Retail India Ltd. (PRIL) through its hypermarket "Big Bazaar", offers products at prices which are 25% - 30% lower than the market price. 24 Non Store Retailing In non store retailing, customers do not go to a store to buy. This type of retailing is growing very fast. Among the reasons are; the ability to buy merchandise not available in local stores, the increasing number of women workers, and the presence of unskilled retail sales persons who cannot provide information to help shoppers make buying decisions The major types of non store retailing are: (A)In Home Retailing: Where, a sales transaction takes place in a home setting - including door-door selling. It gives the sales person an opportunity to demonstrate products in a very personal manner. He/She has the prospect's attention and there are fewer distractions as compared to a store setting. Examples of in home retailing include, Eureka Forbes vacuum cleaners and water filters. 25 (B)Telesales/Telephone Retailing: This involves contact between the prospect and the retailer over the phone, for the purpose of making a sale or purchase. A large number of mobile phone service providers use this method. Other examples are private insurance companies, and credit companies etc. (C)Catalog Retailing: This is a type of non store retailing in which the retailers offers the merchandise in a catalogue, which includes ordering instructions and customer orders by mail. The basic attraction for shoppers is convenience. The advantages to the retailers include lover operating costs, lower rents, smaller sales staff and absence of shop lifting. This trend is catching up fast in India. Burlington's catalogue shopping was quite popular in recent times. Some multi level marketing companies like Oriflamme also resort to catalogue retailing. (D)Direct Response Retailing: Here the marketers advertise these products/ services in magazines, newspapers, radio and/or television offering an address or telephone number so that consumers can write or call to place an order. It is also sometimes referred to as "Direct response advertising." The availability of credit cards and toll free numbers stimulate direct response by telephone. The goal is to induce the customer to make an immediate and direct response to the advertisement to "order now." Telebrands is a classic example of direct response retailing. Times shopping India is another example. (E)Automatic Vending: Although in a very nascent stage in India, is the ultimate in non personal, non store retailing. Products are sold directly to customers/buyers from machines. These machines dispense products which enable customers to buy after closing hours. ATM's dispensing cash at odd hours represent this form of non 26 store retailing. Apart from all the multinational banks, a large number of Indian banks also provide ATM services, countrywide. (F)Electronic Retailing/E-Tailing: Is a retail format in which retailers communicate with customers and offer products and services for sale, over the internet. The rapid diffusion of internet access and usage, and the perceived low cost of entry has stimulated the creation of thousands of entrepreneurial electronic retailing ventures during the last 10 years or so., E-bay and are some of the many e-tailers operating today. THE WHEEL OF RETAILING Is a hypothesis that attempts to explain the emergence of new retailing institutions and their eventual decline and 27 replacement by newer retailing institutions. Like products retailing institutions also have a life cycle. According to this theory new retailers enter the market as, low margin, low price, low status institutions. The cycle begins with retailers attracting customers by offering low price and low service. Over a period of time these retailers want to expand their markets and begin to stock more merchandise, provide more services, and open more convenient locations. This trading up process. increases the retailers costs and prices, creating opportunities for new low price retailers to enter the market. The evolution of the department store illustrates the "wheel of retailing" theory. In its entry phase, the department store was a low cost-low service venture. With time it moved up into the trading-up phase. It upgraded its facilities, stock selection, advertising and service. The same department store then moves into the vulnerability phase, because it becomes vulnerable to low cost/low service formats, such as full line discount stores and category specialists. Figure 1.5 illustrates this theory. While the wheel hypothesis has a great deal of intuitive appeal and has been borne out in general by many studies of retail development, it only reflects a pattern. It is not a sure indicator of every change, nor was it ever intended to describe the deve lopment of every individual retailer. 28 RETAILING DECISIONS There are many factors for retailers to consider while developing and implementing their marketing plans. Among the major retailing decisions are these related to (a) Target markets (b) Merchandise management (c) Store location (d) Store image (e) Store personnel (f) Store design (g) Promotion, and (h) Credit and collections. This is shown diagrammatically in Figure 1.6. 29 Target Markets: Although retailers normally aim at the mass market, a growing number are engaging in marketing research and market segmentation, because they are finding it increasingly difficult to satisfy everyone. Through a careful definition of target markets, retailers can use their resources and capabilities to position themselves more effectively and achieve differential advantage. The tremendous growth in number of specialty stores in recent years is largely due to their ability to define precisely the type of customers, they want to serve 30 Merchandise Management: The objective here is to identify the merchandise that customers want, and make it available at the right price, in the right place at the right time. Merchandise Management includes (i) merchandise planning (ii) merchandise purchase, and (iii) merchandise control. Merchandise planning deals with decisions relating to the breadth and depth of the mix, needed to satisfy target customers to achieve the retailers return on investment. This involves sales forecasting, inventory requirements, decisions regarding gross margins and mark ups etc. Merchandise buying involves decisions relating to centralized or decentralized buying, merchandise resources and negotiation with suppliers. Merchandise Control: deals with maintaining the proper level of inventory and protecting it against shrinkage (theft, pilferage etc.). Store Location: Location is critical to the success of a retail store. A store's trading-area is the area surrounding the store from which the outlet draws a majority of its customers. The extent of this area depends upon the merchandise sold. For example some people might be willing to travel a longer distance to shop at a specialty store because of the unique and prestigious merchandise offered. Having decided on the trading area a specific site must then be selected. Factors affecting the site include, traffic patterns, accessibility, competitors' location, availability and cost and population shifts within the area. Store Image: A store image is the mental picture, or personality of the store, a retailer likes to project to customers. Image is affected by advertising, services; store layout, personnel, as well as the quality, depth and breadth of merchandise. Customers tend to shop in stores that fit their images of themselves. Store Personnel: Sales personnel at a retail store can help build customer loyalty and store image. A major complaint in many lanes of retailing is the poor attitude of a salesperson. There is a growing trend now, to provide training to, these sales clerks to convert them from order takers to effective sales associates. Store Design: A store's exterior and interior design affect its image and profit potential. The exterior should be attractive and inviting and should blend with the store's general surroundings. The term Atmospherics" is used to refer to the retailer's effort at creating the right ambience. " Merchandise display is equally important. An effective layout guides the customer though the various sections in the store and facilitates purchase. Promotion: retail promotion includes all communication from retailers to consumers and between sales people and customers. The objective is to build the stores image, promote customer traffic, and sell specific products. It includes, both, personal and non personal promotion. Personal communication is personal selling - the face to face interaction between the buyer and the seller. Department stores and speciality stores, emphasize this form of promotion. Non personal promotion is advertising. The media used are TV, Radio, Newspapers, Outdoor displays and direct mail, other forms of promotion include, displays, special sales, give always and contests etc. Credits & Collections: Retailers are generally wary of providing credit, because of additional costs-financing accounts receivables, processing forms and bad debts etc. But many customers prefer some form of credit while purchasing. This explains the popularity of different types of credit cards and debit cards. EMERGING TRENDS IN RETAILING In recent years the nature of retailing has changed dramatically, as firms try to protect their positions in the market place. Many customers are no longer willing to spend as much time on shopping as they once did. Some sectors of retailing have become saturated, several retailers are operating under high levels of debt and number of retailers after running frequent "sales", have found it difficult to maintain regular prices. Retailers are adapting to*the shopping needs and time constraints of working women, dual earner households and the increased customer interest in quality and customer service: Shopping Malls: A growing number of shopping malls are coming up all over the country. In north India; there seems to be a proliferation of such malls surrounding Delhi, in places like Gurgaon and Noida. In general they target higher income customers, with their prestigious speciality shops, restaurants and department stores. Factory Outlets: Manufacturers are opening factory outlets to sell off surplus inventories and outdated merchandise. This forward vertical integration gives manufacturers greater control ' over distribution, than selling the merchandise to off price retailers. Mohini knitwear of Ludhiana (Punjab) and number of woolen and hosiery manufacturers set up their outlets in Delhi during winters. Non Store Retailing: Non store retailing is accelerating at a faster rate than in store retailing. This includes direct marketing. In Home shopping, TV shopping and e-tailing etc. Diversification of Offerings: Scrambled (unrelated products or services) merchandising is taking on a broader meaning and inter type competition among retailers is growing. For instance Citibank is organizing tourist trips and sending mail order catalogues to its credit card customers. Impact of Technology on Shopping Behaviour: The way retailers present their merchandise and conduct their transactions are changing. Cable TV Channels are used to present merchandise, Videos have replaced catalogues and computer linkages to acquire information and make purchases are on the increase. Virtual shopping through PDA's is another possibility. Multi Channel Retailing: Traditional store based and catalogue retailers are placing more emphasis on their electronic channels and evolving into multi channel retailers, because they can reach new markets and overcome limitations posed by traditional formats, CONSUMER ELECTRONIC MARKET IN INDIA India has an increasingly affluent middle class population that, on the back of rapid economic growth, has made the country’s consumer electronics industry highly dynamic. The industry has been witnessing significant growth in recent years due to several factors, such as retail boom, growing disposable income and availability of easy finance schemes. But still, the consumer electronic goods, like refrigerators, microwave and washing machines have low penetration in the country, representing vast room for future growth The report finds that since the penetration of several products like TV’s and refrigerators are reaching saturation in the urban areas, the markets for these products are shifting to the semi urban and rural areas This analytical research evaluates the Indian consumer electronic industry. It briefly discusses about the current and emerging trends in the industry, underlying the future potential areas and key issues crucial for the industry development. It provides an insight into the emerging and potential future trend in all the categories and highlights the key strategies that need to be worked upon to get success in the highly competitive industry. The report thoroughly analyses the historic performance and future prospects, offering 4-year industry forecast, of following consumer electronic products: Washing Machines (Semi-Automatic &Fully Automatic) Television Set-top Box Refrigerator (Frost-free & Direct Cool) Air Conditioner Microwave Oven MP3 Players Digital Camera & Camcorder Mobile Handsets PCs (Desktop & Notebook) WORLD WIDE CONSUMER ELECTRONIC MARKET The consumer durables industry has witnessed a phenomenal growth over the past few years. This growth can be attributed to the increasing effect of state of the art electronic devices on the market. The consumer electronic industry is ushering in the dawn of Convergence. It is the confluence and merging of hitherto separated markets of digital based audio, video and information technology, removing entry barrie3rs across the market and industry boundaries. This convergence of technologies has resulted in a greater demand for consumer devices, be they portable, in-home (mobile phones, digital camera) or in-car (CD/DVD players), offering multiple functions, The revolution brought about by Digital technology has enabled the consumer electronics sector to profit from the growing interaction of digital applications such as camcorders, DVD player/recorder, still cameras, computer monitor, LCD TV etc. It has also witnessed the emergence of mobile telecommunication technology, incorporating both digital visual and digital MP3 capabilities. The computer industry has also benefited by being able to make its way into consumer’s living room. HDTV’s with VGA connections and SD/MMC card slots, personal media players and Microsoft-based Media center PC’s have pushed the two industries even closer together than before. The overall revenue earned through the sale of audio, video and gaming consoles constitutes the international consumer electronics market. The global sale of consumer electronics is estimated to exceed all expectations to touch n all time high of $135.4billion in 2006, which indicated 8% increase Media Used In Retail Market the media for advertisement used in electronic retail market is ATL and BTL for the purpose marketing that is under ATL and BTL activity. Below the line (BTL), Above the line (ATL), and Through the Line (TTL), in organizational business and marketing communications, are advertising techniques. Promotion can be loosely classified as "above the line" or "below the line". Promotional activities carried out through mass media, such as television, radio and newspaper, are classed as above the line promotion. The terms "below the line" promotion or communications, refers to forms of non-media communication, even non-media advertising. Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in FMCG products, but also for industrial goods. "Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line". An example would be a TV commercial that says 'come into the store to sample XYZ product'. In this example, the TV commercial is a form of "above the line" advertising and once in the store, the target customer is presented with "below the line" promotional material such as store banners, competition entry forms, etc. Above the line sales promotion Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines to promote brands. Major uses include television and radio advertising, web and Internet banner ads. This type of communication is conventional in nature and is considered impersonal to customers. It differs from Below the line advertising, which believes in unconventional brand-building strategies, such as direct mail and printed media (and usually involves no motion graphics). The term comes from accountancy and involves the way in which Procter and Gamble, one of the world’s biggest advertising clients, was charged for its media in the 1950s and 1960s. Advertising agencies made so much commission from booking media for clients that the creative generation and actual production costs of making TV ads was free – hence above the line. Everything else they paid for and were therefore below the line. Since then, models have changed and clients are no longer charged for their media in that way.[1] Used loosely, above the line still means mass media. However the media landscape has shifted so dramatically that advertisers have reconsidered the definitions of mass media. According to Altaf Jasnaik, what needs consideration is the definition of "What does the line divide?". For some marketers it is the line that divides the realm of "Awareness or Attention focused marketing" and that of "Interest + Desire focused marketing". Since audience numbers in the Interest and Desire phase of the AIDA sales model narrow down to a fraction of the Awareness audience, the line could be drawn right below the awareness set of activities. For some retail giants the definition of the line is "their floor space" where they convert footfall to purchase. Loosely put, everything done prior to a customer's actual entry into a retail outlet is ATL for some retailers, as they define shop-floor activities as the true BTL set of activities which decide on which brand sells eventually. Below the line sales promotion Below the line sales promotions are short-term incentives, largely aimed at consumers. With the increasing pressure on the marketing team to achieve communication objectives more efficiently in a limited budget, there has been a need to find out more effective and cost efficient ways to communicate with the target markets. This has led to a shift from the regular media based advertising. In other words, below-the-line sales promotion is an immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration. Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies. These may include activities such as direct mail, public relations and sales promotions for which a fee is agreed upon and charged up front. Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates. Another interesting and very effective BTL is Ssop Intercept. Trained sales personnel, often young women, are deployed at Retail Stores, near the shelves of targeted products. These young women convince customers visiting these shelves about the better aspects of their brand compared with others. This is ideal for new launches as it generates trials, which if successful result in repeat sales. In addition, above the line is much more effective when the target group is very large and difficult to define. But if the target group is limited and specific, it is always advisable to use BTL promotions for efficiency and cost-effectiveness. Say, for example, if a pen manufacturer is going to promote its product, it may take the ATL route, but if a company manufactures computer UPS, it will certainly take the BTL route, as the target group is very limited and specific. More recently, agencies and clients have switched to an 'Integrated Communication Approach.' BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensure recall of the brand while at the same time highlighting the features of the product. A common term being used by savvy media sales persons these days is of that of a Through The Line approach, which according to Altaf Jasnaik, has been around forever but under a new named coined for media dinners is called the TTL approach. The TTL approach is where a mix of the two (ATL+BTL) are used to integrate a marketers efforts and optimize returns from these separate investments. More recently however the TTL approach has shifted its attention with more weight shifting to the BTL side of the fulcrum. The idea remains to optimize the ROI on marketing budget spent, by focusing ones energy on winning smaller yet more crucial BTL battles than ATL wars which are being raged by Sponsorship and logo positioning crazy big spenders. In a nutshell, while Above-the-Line promotions are tailored for a mass audience, BTL promotions are targeted at individuals according to their needs or preferences. While Above-the-Line promotions can establish brand identity, BTL can actually lead to a sale. Above-the-line promotions are also somewhat impossible to measure well, while BTL promotions are highly measurable, giving marketers valuable insights into their return-on-investment. According to EBS Worldwide, mainstream mass broadcast marketing is increasingly being viewed as uneconomical, in terms of Return on Investment, which is where BTL marketing fits in. Methods of below the line sales promotion 1. Price promotion Price promotions are also commonly known as "price discounting". These can be done in two ways: o A discount to the normal selling price of a product, or o More of the product at the normal price Price promotions however can also have a negative effect by spoiling the brand reputation or just a temporary sales boost (during the discounts) followed by a lull when the discount would be called off. 2. Coupons 3. Gift with purchases, also gifts certificates 4. Competitions and prizes This is an important tool to increase brand awareness amongst the target consumer. It can be used to boost up sales for temporary period and ensure usage amongst first time users. 5. Money refunds A customer receives a money refund after submitting a proof of purchase to the manufacturer. Customers often view these schemes with some suspicion – particularly if the method of obtaining a refund looks unusual or onerous. 6. Frequent user/loyalty incentives 7. Point-of-sale displays Shopping habits are changing for the people living in metropolitan cities. People prefer big retail outlets to local mum & dad stores. Most of the decisions of buying are taken by the virtue of point-of-sale displays in these retail outlets. In these times of high inflation and more and more channel surfing, BTL are proving to be a very cost effective tool. SWOT ANALYSIS OF NEXT STRENGTHS  Strong product and technical knowledge of employees across categories.  Multitasking Staff.  Location.  Good Brand Name.  Very competitive pricing. WEAKNESSES  Lack of motivation among the Employees.  Average Window and in-store display.  Less usage of the area (or inadequate usage of area)  Sales skills are less sharpened and low level of customer interaction.  Ineffective Customer Loyalty Measures. OPPORTUNITIES  Effective use of staff.  Knowing your customer.  Increase in footfalls.  Opportunity to improve sales through employee motivation. THREATS  Competition  Customer Attrition  Employee Attrition BCG MATRIX OF NEXT [ PROJECT PROPOSAL ] PROJECT BRIEF/PROBLEM DEFINITION “Study of Retail Strategy in Organized Retail for Consumer Electronics” RESEARCH OBJECTIVE Which retail strategy is appropriate for customer to come across the electronic product? How can certain retailing decisions influence them to buy product.  How Location helps attracting customers towards store? What is their expectation about feature of product while looking to certain retail outlets? To know for which media customer can give times like print, audio, visual. To know how is customer come to know about electronic product before buying it. Data collection  To finding desirable and effective media for consumer durable electronic product in retail market we are using here a primary data and secondary data so these will help me to analysis the interest of customer about media selection. Research methodology  We are using the exploratory research methodology for making a research over effective media for consumer electronic product in retail.  It enables us to formulating the problems for more precise investigation.  It enables us to understanding ones perception about media by making a structured investigation.  To gathering information about real life setting and analyzing the practical possibilities exploratory research technique will be more suitable. Method of administering the questionnaire  Personal In-depth interview Nature of questionnaire  Type of Questionnaire: Structured  Type of Questions: Open ended & multiple choice  Avg. interview time: 15 - 20 mins Sampling procedure  Target Population:  I have administered 100 questionnaires at different outlet across NCR personally from customer who is coming to Next retail outlet.  Sampling technique:  Sampling without replacement: An element will not be included in the sample size more than once. Field work :  Who: Management trainees from INMANTEC  How: Personal interviews using surveys  Supervision: Under The Zonal manager of Next retail India Ltd. Data Analysis :  tables, charts & diagrammatic representation Reporting :  Presenting a hard copy report of entire research project Time Schedule :  Project period : 60 days. QUESTIONNAIRE Name: ____________________________________________________ Address: __________________________________________________ __________________________________________________________ Contact No: ________________________ Age:_____________________ Email Id: ______________________________________________________ Gender: Male Female Occupation: Salaried Self Employed Student Others Q.1.How you come to know Next today? O Newspaper Advt O Old customer O Paper Inserts O friend/Relative O Direct Walk-in Q.2.What is the last product that you purchased at retail store? O AC O Washing Machine O Refrigerators O Color TV , O LCD O Laptop O Desktop O Print O DVD O Microwave O Food Processors O Water Purifiers O Digital Camera O OTHER ______________________________________  Where did you get the information? O Newspaper Advt. O Paper Inserts O Friend / Relative O On Internet O Local Fm Radio O Hording O Cable Advt. O seen a attractive offer at outlet  Where did you purchased the electronic product? (Name of the retail outlet) O Next O Croma O Kohinoor O Vijay Sales O E-Zone O Sony Mony O Others___________________ Q.3. What factors do you consider before buying an electronic product from any retail store? O Price O After sales service O Warranty of product O Prompt Servic O Brand O looks of product O Location of outlet O Features of product O Retailer name O Product Range O Convenient location Reliability of the Store Q.4. Where do you like to search information regarding electronic product? O Newspaper Advertisement O Paper Inserts O Cable Advertisement O On Internet O Local Fm Radio O Hording Q.5. From where you prefer to by electronic products? O Dealers outlets O Multi-brand outlets in malls O Specialized stores O Local Markets O Others. 6)Do you use the internet as information source before going to shopping? O Frequently O Regularly O No use 7)Have you made purchases after reading attractive scheme in paper inserts? O Yes O No 8) And from where did you purchase? O Next O Croma O Kohinoor O Vijay Sales O E-Zone O Sony Mony THANK YOU Graphical Representation of Questionnaire Q.1 How you Come to Know Next Today Direct Old- Walk- Newspap customer Friend/Relat in er ive 47 15 19 29 Analysis of graphical Representation:- The major customer coming into the outlet is through direct walk-in that is 43% then the people who has the information, sharing with their friend and relative and pulling the customer to NEXT that is 26%. Old customer keep on walking into the next outlet as well as Newspaper becoming good medium for NEXT and attracting customer towards the store that is 14%. Reason The major customer coming to the outlet is unknown about the location that means need to promote the awareness of outlet location repeatedly through Newspaper and through hoardings and 2nd things local competitor is pulling more customer to creating more awareness than NEXT so that attracting the customer. Q.2.occupation Self Salari Employ Stude ed ed nt 60 25 15 Analysis of graphical Representation:- The major occupation in graphical section is 60% of salaried people and 25% of self employed as well as 15% of student taken into consideration to get proper idea for making the decision about effective medium which pulling more customer towards the store and which medium is proper for them to pulling the customer. Q.3.(a)Last product that purchased by Respondent Washin Digital g A Color DV Deskt camer Microwa lapto LCD Mobil refrigerat Machin C TV D op a ve p TV e or e 9 19 9 13 7 6 12 13 17 8 11 Analysis of graphical Representation:- To know the medium of advertisement, how is the customer come to know about product, its feature why he/she selecting particular outlet for purchasing it. Which media is influencing him/her and how? I am taking into consideration his last purchase how he done so here given that Color TV, Mobile, Desktop, laptop etc how they could bring they had purchased. Q.3.(b)where did you get information about Product & Outlet Direct Friend Intern Hordin Newspap Local paper Seen Walk- et g er Advt FM insert attracti in Radio ve offer at outlet 19 16 7 5 27 6 11 29 Analysis of graphical Representation:- Here in graph we can see 24% of customer out of 100 purchased their electronic product at the outlet after looking attractive offer and 23% of customer come through the newspaper advertisement for making purchase then 16% of customer did their purchase through direct walk-in, there was no such plan to go in particular outlet but when they reach they fulfill with product and its price .13% of customer made purchase with the help of their friends and relative because when he purchased he was satisfied so he suggested for making purchase their.9% of customer could decide to make purchase at certain outlet because the paper insert was influenced for making purchase in certain outlet. the respondent by local radio as well and 5% customer could made purchase. Some people used to do shopping with the help of internet they check product, their offer on internet and goes direct in outlet and done shopping. Some of them also made purchase by looking the hording that was few 4%. Q.3.(c)From Which Outlet You Have Purchased your Electronic Product Croma Kohino Next Vijay sony other or sales Mony 22 9 15 27 12 15 Analysis of graphical Representation:- Major customer is attracting by vijay Sales that is 27% and we have seen in last graph the major sector through customer attracted was News paper and as per research done over the newspaper vijay sales investment is highest for advertisement and continuous offer offering to the customer, their consistency in prompt service, product varieties, ambience and location of outlet, their space these were added advantage in vijay sales that is why it is one of the biggest competitor in NCR for NEXT RETAIL INDIA ltd. CROMA it is the Tata owned electronic retail chain outlet and in last time purchase CROMA attracted 22% of customer and by the way due to the Tata product customer attention they have already attracted through their core brands that is added advantage to them. The advertisement is very high and trying to focus the customer through all kind of media. Their service, location, space of outlet and sales after service is better so those things’ pulling the customer towards outlet. It is the big competitor for Next retail India ltd. Sony Mony and Kohinoor is also attracting customer towards themselves by providing best ambiance , variety of product and etc. it is also expending lots of money for advertisement in newspaper and so here last purchaser purchased around 12% and 9%. Local retailer are not into advertisement but as traditional shopkeeper their status is becoming rising and customer preferring them also so around whatever making business by Next that is captured by local retailer and they having convenient location customer going there. Next retail India ltd. But it is not rising because of service, after sales service, location of outlet , low standard of CSE , ambiance of outlet not proper awareness of Next retail outlet money times even the customer living in same area does not have idea about Next so those all problem making decline in Next retail India ltd. Although due to the competitive price and less than other making business for Next retail India ltd. Q.4.Factor that you had consider before buying electronic product after featur Warran promp looks sales e of ty of t of retaile convenie servic produ produc servic produ r nt Price e Brand ct t e ct name location 68 33 45 27 29 22 36 39 18 Analysis of graphical Representation:- Customer before going to purchase many thing take into consideration that I observed while interview. The customer first preference is to know the price 22%, then Retailer Name is also important then how is their facility about after sales services, is they have major brand so it would be convenient for selecting product then they also focus over the prompt service of retailer is they have delivery facility product, the location of outlet at convenient location so this way customer expectation is more from the retailer. Q.5. From where you prefer to by electronic products? Dealers Multi-brand outlets in Specialized Local outlets malls stores Markets Others 16 34 30 8 12 . Analysis of graphical Representation When we asked this question to respondents we find the fact that local market is diminishing and organized retail is increasing rapidly. Q.6.The use of internet for shopping Frequen Regul tly No ar 21 70 9 Analysis of graphical Representation:- When I asked the question about The use of internet for shopping most of customer was un-aware about the fact of online shopping means 70% of people were unaware reason because no availability of internet access, computer illiteracy, can’t believe in baling transaction, delivery as per the product shown and etc so people unaware. But when talk about the customer who use internet for shopping that is 9% these people does not time to go in outlet and get information so better, that they like to select their product then as per their requirement they purchase and about frequent user these people basically use internet for just enquiry so 21% of people attracting now days towards purchase. Q.7.Have You Made Purchased After Reading Attractive Scheme Yes No 23 77 Analysis of graphical Representation:- Result of attractive scheme is that 77% of customer does not took any action on attractive scheme in newspaper that means they does not trust on scheme or they think that is greed shown company and try to avoid such purchase but 23% of people said that they have made purchase after getting good scheme they said offer is something a opportunity to purchase our product in economical price so they get involved and purchased the consumer electronic product that means offer does work well for attracting customer. Q.8. Where did you purchase Kohino Vijay sony Croma or Next sales Mony 27 11 19 31 12 Analysis of graphical Representation:- The result of attractive scheme is 23% but in market which retailer showing attractive scheme and that is vijay sales 31% customer said they have many times attracted towards vijay sales purpose of shopping that means in market they are making effectively marketing that their main media is newspaper. 2nd number croma making good scheme that is attracting towards the store their main media newspaper .19% of Customer said Next retailer have good scheme and even they have attracted for the purchase towards retail shop them they were regular customer of Next. Then Kohinoor and Sony mony also famous for their fledge advertisement in newspaper and their response is 12% and 11% respectively they could attract customer towards retail outlet. Suggestion and Recommendation The major customer coming to the outlet is unknown about the location that means need to promote the awareness of outlet location through Hording at different places. Next retail India ltd. Is not rising because of after sales service, location of outlet , standard of CSE not proper , ambiance of outlet not proper than competitor so need to improve. Offers and scheme retailer need to plot outside the outlet so people come to know about the product because the Next customer is most of the customer direct-walk-in. Newspaper is the effective media for attracting customer towards the outlet so in newspaper times of India is highest consumption so for targeting all kind customer need to ads through Times of India as well as for attracting regional customer need to target trough Mid day Guajarati – for Guajarati people , for attracting NCR effective media is Dainik Jagaran, Hindusta times, New Delhi times. In radio FM, radio mirchi is on top of mind of customer so it will be right option for ads through radio FM as well as now a day’s FEVER 104 FM getting more popularize so it is also best one for ads. Attractive scheme does work well for Next so need to concentrate over the improvement, it is helping in rising the sales of Next Retail India Ltd. At Store Level  The manager can come up with an inter-store contest such as “Best Store Display”.  Increase employee motivation by rewarding them through such contests thereby motivating them to work on the display.  Customer Feedback System. (e.g. a suggestion box or book)  Continuous Monitoring by management.  Should allot customer care executive work to an existing staff on rotation basis. Conclusion Research carried over the topic of “Study of Retail Strategy in organized Retail for consumer electronics” with the help of 100 customer all over the Next Retail outlet in NCR, individually I have interviewed with the customer and also studied market research then I come at conclusion for effectiveness of media in organized retail for consumer electronics product is as follows, The organized retailer increasing day to day and competition increasing in themselves for attracting the customer towards their outlet, media playing a vital role for getting popularize the retailer name as well as Brand building in the mind of customer. Retailer planning every possible plane to attract customer and trying to increase their sales through Hugh advertisement on media. Now a day’s ATL and BTL activities practiced in organized retail. Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines to promote brands and increases the sales. I have observed that out of ATL activity Print media is doing well job for promoting and brand building, customer want to purchase in economical price with regarding facility which retailer can give them and awaiting for offers and scheme so they come to know where they could satisfied so proper and economical media is newspaper through retailer can target customer and influence them to buy. Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. than Above the Line strategies .BTL include activities such as direct mail, public relations so it does helps in pushing the customer towards the outlet so for better performance ATL is helpful and for maintain relation definitely BTL do well job so by using both the method Next retail India ltd. Really makes global opportunity for themselves. Bibliography Books Referred Marketing Management V S Ramaswami S Namakumari Advertisement and promotio Devid and Aker Retail Management Swapna Pradhan Website NEWSPAPER Times of India Economic Times DNA Indian Express Hindustan Times Dainik Jagaran