NEW DELHI, 110044






Submitted towards fulfillment of M.B.A. 2008-2010 IILM BUSINESS SCHOOL, NEW DELHI




I specially extend my heartfelt thanks to my Placement Head Mrs.RETAIL I extend my sincere thanks to all those who helped me in the completion of this project. And her team members for helping me at every step. Without their undying help and guidance. APARNA MATHUR. this project would not be what it is. This project would not have been successful without her help and continuous guidance throughout. and guiding me in every way possible. A special note of thanks also goes out to the people from various fields for giving me their precious 5 .

RETAIL Mr. RAJEEV KUMAR SINGH MBA (MARKETING) DECLARATION 6 . I also extend my appreciation towards my family who encouraged me and were by my side whenever I needed them.time and helping me with this project.

NEW DELHI declare that this project on SALES AND PROMOTION OF THE ELECTRONICS PRODUCTS in NEXT RETAIL INDIA LIMITED is being submitted in the partial fulfillment of the requirement of MBA from IILM BUSINESS SCHOOL the work conducted under the guidance of Mrs. 7 .I. RAJEEV KUMAR SINGH student of IILM BUSINESS SCHOOL. RAJEEV KUMAR SINGH MBA (MARKETING) IILM BUSINESS SCHOOL Executive Summary This is the project about retail Business growth: Success NEXT retailing constitutes the study of customer perception and the customer behavior. the customer’s age group. income group. In this study we have studied about the NEXT Retailing in India. the undersigned. The report included the survey of the customer’s of these particular brands and then analyzing what kind of these customers are. RETAIL Mr. the brand targets which segment of the customers. Mr. their education level. The project involves the study of the Retail market. APARNA MATHUR. what does they prefer from the particular retail outlet.

or for its ambience. expanded at an average annual rate of 7% during 1999-2002. To know whether customer prefer a retail outlets for the availability of brand. its booming phase.1% for consumer expenditure. retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. likings of the customers for individual brands. To ascertain potential market and competition in retail market.7400 billion in 2002. for convenience. Ascertain the consumer preferences and satisfaction factor To highlight the perception of the consumers for the organized retail outlets. retail sales are also expected to expand at a higher pace of nearly 10%.RETAIL The objective of the research includes: • • • • • • • • To identify the Indian Retail industry. the players within this segment. or for prices. Across the country.2008 is 8.3% per year. Why do they prefer to purchase from NEXT retail only? Retail sales in India amounted to about Rs. To know the personality traits. its challenges. To do the analysis of retail market. Modernization of the Indian retail sector will be reflected 8 . compared with 7. The forecast growth in real retail sales during 2003. With the upturn in economic growth during 2003.

5 outlets per 1000 population. Around 7% of the population in India is engaged in retailing. In a developing country like India. Kearney Inc.in rapid growth in sales of supermarkets. departmental stores and hyper marts. according to a latest report by Euro monitor International. Hence. however. as compared to 20% in the USA. The share of food related items had. T. a large chunk of consumer expenditure is on basic necessities. down from 73% in 1999. it is not surprising that food. beverages and tobacco accounted for as much as 71% of retail sales in 2002. declined over the review period. with the rapid growth in numbers of such outlets due to consumer demand and business potential The factors responsible for the development of the retail sector in India can be broadly summarized as follows: 9 . especially food-related items. The country has the highest per capita outlets in the world . places India 6th on a global retail development index. This high acceleration in sales through modern retail formats is expected to continue during the next few years. RETAIL Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008. A.5. a leading provider of global consumermarket intelligence.

V. but the organized sector 10 . Panasonic. • Shift in consumer demand to foreign brands like McDonalds. Reach of satellite T. etc. the retail sector is bound to take big leaps in the years to come. Unilever. • The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Nestle. and this will increase to 55% by 2015. About 47% of India’s population is under the age of 20. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers. The Indian retail sector is estimated to have a market size of about $ 180 billion.RETAIL • Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. • As India continues to get strongly integrated with the world economy riding the waves of globalization. Sony. • Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogs. etc. channels is helping in creating awareness about global products for local markets.

represents only 2% share of this market. 11 .2 Outlets of NEXT To Page No.2 Growth of Retail in India 1. A similar phenomenon has swept through all other Asian countries.1 Retail in India Retail sector 1. Most of the organized retailing in the country has just started recently. In Thailand.7 Key drivers to growth 1. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services RETAIL Contents Particulars Chapter1) Introduction to the 1. and has been concentrated mainly in the metro cities.5 FDI into Retail 1.1 HistoryRETAILING 2.8 Forms of retailing Chapter2) Introduction NEXT & its existence 2. more than 40% of all consumer goods are sold through the super markets and departmental stores. India is the last large Asian economy to liberalize its retail sector.3 Success of Retail Sector 1.4 Challenges to Retail Sector 1.6 What is organized retail? 1.

RETAIL 2.4 Limitations of Research 3.1 Strategies Adopted Story 4.3 • • • • Its major competitors Westside Pantaloons Marks & Spencer Big Bazaar Chapter 3) Research 3.2 NEXT RETAIL In Nutshell Chapter 5) Concluding 5.1 Objectives of Study 3.5 Analysis of Questionnaires Chapter 4) NEXT RETAIL Success 4.2 Research Methodology 3.3 Sample Status 3.1 Conclusion 5.2 Scope of further research Questionnaire Bibliography 12 .

2 percent in the year 03-04 • Among top 10 FDI destinations • Stable Government with 2nd stage reforms in place • Growing Corporate Ethics (Labor laws. • US $ 130 billion investment plans in infrastructure in next 5 years • 2nd Second most attractive developing market. intellectual and property rights. China & Japan • To be the 3 rd largest economy in terms of GDP in next 5 years. Child Labor regulations. ahead of China • 5th among the 30 emerging markets for new retailers to enter 13 .RETAIL Chapter 1: Introduction to the Retail sector: Retail in India INDIA – A Vibrant Economy & Resplendent Market • 4th largest economy in PPP terms after USA. • The US $ 580 billion economy grew 8. • 2nd fastest growing economy in the world. • Major tax reforms including implementation of VAT. social responsibility). environmental protection lobby.

but also because there is the danger of going against the commitments to the World Trade Organization. Current profits in the organized retail trade may be good and the future prospects even more alluring. where more and more segments of economic activity are thrown open to overseas. The situation is such that even a company with virtually no track record of profitable functioning or dividend payout can price its offering at a hefty premium and expect to attract robust participation by investors and sustain interest in the secondary market too.A country with the largest young population in the worldover 867 million people below 45 years of age! More English speaking people in India than of in the whole of Europe 300 million odd middle class . . Not only because it is in the very nature of evolution of the Indian economy. The stock market has also developed a fancy for stocks of companies engaged in retail trade. India may attract retaliation should it insist on keeping the door 14 RETAIL . But it is only a matter of time before the Government relents on it. A COMBINATION OF factors seems to have triggered a wholesale capacity expansion by the organized retail industry in the country. the official policy is not welcoming of foreign direct investment in retailing.the Real consumers .is catching the attention of the world With over 600 million effective consumers by 2010 India to emerge as one of the largest consumer markets of the world by 2010. these shares are outperforming the market indices by a good margin. Interests. Currently.

is the country then heading for a retail revolution? Though official statistics may belie the claim.shut to foreign investments in retailing. The global economy is in the third wave of value creation. India has not been able to escape the social trends of rising incomes. it is dawning on producers that value can be created and sustained only by ensuring the continued patronage of consumers through loyalty programmers. spending his income on a wider array of goods than earlier. goods were mass-produced and sold to consumers at affordable prices by a multitude of producers. Viewed from this perspective too. Much has been written about how India's changing demographics and consumer behavior will open up opportunities for the growth of organized retailing as represented now by such players as Trent. Another process too has been at work. importantly. there is strong empirical evidence that the average urban consumer is saving less today than he did a few years ago and. If the first wave of consumer spending addressed satisfaction of certain basic needs and the 15 RETAIL . Pantaloon. So. and Shopper's Stop. The second saw value being created through clever marketing and brand association. In the first wave. double salaries and nuclear families that have sparked retail revolution elsewhere. domestic players have an added interest in quickly expanding their presence across geographical regions and product segments. But as discerning consumers realized that many brands offered more or less identical products.

Retail sector: on an upward curve India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets.64 per cent. hypermarkets.2 Growth of Retail in India India's retail sector is wearing new clothes and with a three-year compounded annual growth rate of 46. driven by changing lifestyles. retail is the fastest growing sector in the Indian economy. strong income growth and favorable demographic patterns. Traditional markets are making way for new formats such as departmental stores. Western-style malls have begun appearing in metros and second-rung cities alike.5 billion. predicts that by 2010. a retail consulting and research agency.second the `perceived' values. 16 .5-billion mark from the current size of US$ 7. supermarkets and specialty stores. RETAIL 1. this third wave is about a certain contextual element (ambience) to the satisfaction of basic and perceived needs that products embody. it is expected to grow 25 per cent annually. KSATechnopak. introducing the Indian consumer to an unparalleled shopping experience. organized retailing in India will cross the US$ 21. While organized retail in India is only two per cent of the total US$ 215 billion retail industry.

RETAIL Retail space: up for grabs By 2007. estimated at about US$ 6 billion. an estimated 50 million square feet of quality retail space will be available across India. A push for branded retail India's branded retail sector. 17 . Then. Of the 700 new malls coming up all over India. but is forecast to grow at 25-30 per cent a year over the next four years. 40 per cent are concentrated in the smaller cities. Mumbai and their suburbs. Organized retailing in small-town India is growing at a staggering 50-60 per cent a year compared to 35-40 per cent in the large cities. there are about 100 malls. makes up only three per cent of the total market. in Delhi. with plush department stores and malls springing up across the country. This is in sharp contrast to the situation a decade ago. there was not one shopping mall in India. Today.

at just US$ 5.handset. The US$ 6. In comparison. Kids retailing: no child's play Kids retailing is growing by leaps and bounds in India and those in the industry say it is likely to see 30-35 per cent 18 . growing at over 20 per cent per year. which forms 44 per cent of the entire FMCG sales. the consumer electronics and appliance market looks paltry.7 billion business. airtime and accessories . The mobile revolution The retail market for mobile phones . with growth rate just half of the mobile market. Since nearly 60 per cent of the average Indian grocery basket comprises non-branded items.1 billion Indian foods industry. is growing at 9 per cent and has set the growth agenda for modern trade formats.6 billion. the branded food industry is homing in on converting Indian consumers to branded food.is already a US$ 16.RETAIL Food retail Food dominates the shopping basket in India. and that too in a good year.

Apparel. footwear and accessories.2 – 780. however. “The total apparel market in India for kids is around US$ 2. According to industry insiders. remains the key revenue driver accounting for almost 80 per cent of total sales. outerwear. out of which about US$ 668. the list is endless.9 billion. eyewear. tailored clothing. From clothes to stationary. fragrance.5 million is branded apparel. watches. sportswear.growth per annum.” RETAIL 19 .

With the growth of organized retailing estimated at 40 per cent (CAGR) over the next few years. Organized retailing has finally emerged from the shadows of unorganized retailing and is contributing significantly in the growth of Indian retail sector. the opportunity is huge—by 2010. This report looks in to detail. And it is names of small towns like Dehradun. 1. Indian retailing is clearly at a tipping point. organized retail is expected to grow to US$ 22 billion.RETAIL The retail road ahead The Indian retail market is estimated at US$ 350 billion. However. But organized retail is estimated at only US$ 8 billion. Lucknow and Nasik that will power India up the rankings soon. the forces that have significantly influenced the Indian Retail Industry. India is currently the ninth largest retail market in the world. Vijayawada. in order to trace its future direction 20 .3 Success of Retail Sector Indian retailing industry has seen phenomenal growth in the last 5 years.

In the meantime. • • A shopping revolution is ushering in India where. In its market research report “Indian Retail Sector – An 21 . the organized sector will grow at the rate of around 30% per annum • Cultural and regional differences in India are the biggest challenges in front of retailers. These factors deter the retailers in India to adopt a single retail format • . • Hypermarket is emerging as the most favorable format for the time being in I • ndia.RETAIL • Organized retail will form 10% of total retailing by the end of this decade. RPG. a large population between 20-34 age groups in the urban regions is boosting demand by 11.308 purchasing power. The arrival of multinationals will further push the growth of this format • Convenience store (or its variation) format is the best way to compete with unorganized retailing in India The key players currently operating in the Indian retail industry including Future group.1 percent in 2004-05 to an Rs 23. This has resulted in huge international retail investment and a more liberal FDI. Vishal retailers Ltd and SRS Value Bazar. Trent.

Outlook (2005-2010)” analyzes the greatly divided Indian retail market and the trends in its business. investors and malls • India is on the radar of Global Retailers Suppliers 22 . Five Reasons why Indian Organized Retail is at the brink of Revolution: RETAIL • Scalable and Profitable Retail Models are well established for most of the categories • Rapid Evolution of New-age Young Indian Consumers • Retail Space is no more a constraint for growth • Partnering among Brands. Issues such as foreign investment restrictions. modern merchandizing in India. logistics and payment terms for distribution. franchisees. The market research report further analyzes the sustainability of the Indian retail sector and on the basis of 25 domestic and international companies the report has given a suitable business model. role of channel members and growth trends in different regions are discussed. retailers.

4 Challenges to Retail Sector 23 .RETAIL 1.

Menzer (third from left) during a meeting at Parliament House in New Delhi. John B. on Thursday met the Prime Minister. John B. As for whether the world's largest retailer would be prepared to invest in case 26 per cent FDI was allowed. Manmohan Singh. with the President and Chief Executive Officer. he said this would depend on 24 . to discuss opening up of the retail sector in this country for foreign direct investment (FDI).Wal-Mart chief seeks FDI in retail sector RETAIL WHAT'S IN STORE : The Prime Minister. He described it as a "good meeting" while expressing the hope that there would be a change in the FDI policy so that his company could enter the Indian market. He told newspersons after the meeting that Wal-Mart sought to invest "significantly" in India both for opening stores and outsourcing from the market. Menzer. The President and CEO of Wal-Mart International. Manmohan Singh. Wal-Mart International.

The sourcing from Indian was around $1. Taxation. which favours small retail businesses. At present. as there was room for everyone in the Indian economy. Low skill level for retailing management. Lack of trained work force. 25 RETAIL • • • • • • . Regulations restricting real estate purchases. In contrast. Wal-Mart bought about $18-billion worth of goods from China. he was confident that opening up the retail sector would not affect small players. he said. he said it could investing in things like cold chains. Mr. he said the company would be close to the market. The low costs here were a big attraction. Since much of fruit and vegetable production in this country were now spoiled. Absence of developed supply chain and integrated IT management. He also referred to farm produce as an area where Wal-Mart could help by providing a cold chain in the country. and cumbersome local laws. Menzer said Wal-Mart was sourcing products from the textile sector like apparel and home furnishing apart from other products like jewellery. By having retail here. India was the fastest growing export market for the company. Retailing as an industry in India has still a long way to go. To become a truly flourishing industry.5 billion last year and this was expected to increase by 30 per cent this year. retailing needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. At the same time.the market and what the Government offered.

Three types of arguments are reported after the recent meting with the ruling coalition's coordination committee. managing. with little research evidence. 1. the issue of 26 . promotions. and coping up with new challenges in an ever-changing marketplace. First. on the one hand. and the `foreign hand'.advertising.5 The retail FDI bugbear THE POLITICAL OPPOSITION to direct investment by foreign retail chains is a case of two old phobias hopelessly mixed up — of large size and the private sector. are some of the aspects which Indian retailers need to focus upon on a more proactive basis. All comprise special pleading or flawed logic. on the other. constant threat of product obsolescence and low margins. building loyalty by identifying regular shoppers and offering benefits to them. and try to understand the regional variations in consumer attitudes to retailing. Retail marketing efforts have to improve in the country . Indian retailers must use innovative retail formats to enhance shopping experience. and monitoring customer needs constantly.RETAIL • Intrinsic complexity of retailing – rapid price changes. and campaigns to attract customers. efficiently managing high-value customers. The retailers in India have to learn both the art and science of retailing by closely following how retailers in other parts of the world are organizing.

more fleecing the consumer for miserable value in return occurs when public or private sector factories enjoy limited competition and flabby overheads. The fear of multinational retail chains charging lower prices is so weird as to raise a number of questions.employment. domestic servants. Those with a degree of sorts seek employment in the back offices of multinationals. including transportation. if large-scale retailing does squeeze the consumer. apparently one 27 RETAIL . Living in ideological isolation perhaps prevents some noticing the quiet revolution happening from the lowest levels on. No doubt their diplomas may not be the best but they get jobs and earn incomes. because today the kind of manufacturing that comes into the country is not likely to employ the semiliterate millions. some have a smattering of English and a disposable income beyond the dreams of their parents. mechanics. The children of peons. Also. prices will drop. is it that a desi squeeze is more bearable than a foreign bear-hug? In fact. delivery and inshop staff. If there is more competition. have the potential to employ the vast numbers of undereducated youth as drivers. If anything the retail. physical storage and distribution sectors. Is this indeed a disadvantage? Do we want to ensure higher margins to traders? What of the hoary tales of exploitative and non-value adding middle-men? The forecast of eventual `squeezing' of the consumer is equally bizarre. To contrast retailing with manufacturing is laughable. How. would FDI in retail favour monopolistic pricing? In any event. private security staff and shop assistants are today better educated. then.

through different routes as follows: • • • • • Franchise Joint venture Manufacturing Distribution Cash and carry (100 per cent). hence. If so. RETAIL FDI in retail. foreign participation is unnecessary. why is the huge opportunity in food processing and packaged branded low-cost edible products still unexploited? . cold chains and warehousing Implementation of IT in retail Stimulate infant industries and other supporting industries Increased local sourcing 28 • • • • • • • • • .benefits and concerns Inflow of investment and funds Growth of infrastructure Knowledge base/ Technical know-how Reduced cost and increased efficiency Franchising opportunity for local entrepreneurs Investment in supply chain.section of opinion is that there is plenty of money for investment in retail and.Present FDI regime and entry routes The Central Government in 1997 had taken a careful policy decision of keeping FDI in retail at bay. But the present policy allows India to have a presence of international brands.

retailing is the last leg in the channel through which goods travel from the producer to the consumer.) Organized retail Organized retail may be said to refer to a form of retailing. whereby consumers can buy goods in a similar 29 . Generally. (However. a retailer does not effect any significant change in the product. Thus.the sale of goods and commodities in small quantities to the ultimate consumer.6 What is organised retail? Retail Retail is defined as . in the absence of proper regulatory guidelines • Create monopoly and promote cartels • Give rise to cut-throat competition rather than promoting incremental business 1.RETAIL • • Increase number and improve quality of employment Provide better value to end customers • Foreign players would displace the unorganized retailers because of their superior financial strengths • Induce unfair trade practices like predatory pricing. there may be exceptions like soft-drink vending machines that take in concentrate and give out a ready-to-drink beverage.

jewellery. grocery. etc. depending on the type of products serviced. However. apparel. Such retail may entail the use of different store formats like single-product stores. accessories. The categories of goods retailed would include food. Food and groceries form the biggest category in the retail pie.purchase environment across more than one physical location. beauty products. malls. home décor. it has the lowest organized retail penetration. music. This is indicative of the opportunity for organized retail growth in this segment. books. consumer durables. RETAIL Segments in retail Retail as a whole can be broken into categories. accounting for around 76 per cent. 30 . department stores. etc. The footwear and clothing segments boast the highest penetration of organized retail. as players in these segments started setting up stores over a decade ago. footwear.

Food and grocery has the maximum scope for growth. at present. it accounts for only 19 per cent of the organised retail market. clothing and textiles have the largest share at 40 per cent. There are exclusive brand stores that stock and sell apparel. hypermarkets and department stores. 31 . in addition.RETAIL Of the organised retail market of Rs 350 billion. clothing is available in speciality chains.

Besides sprucing up exiting stores in Delhi and Punjab. The company wants to double its presence to 14 stores by 2006. a part of the Dubai-based Landmark Group retail chain. now owns seven stores located across various metro cities.  Lifestyle.000 square feet. occupying a combined retail space of one million square feet. the company is expanding to other north Indian states. 32 . the New Retail Entrepreneurs  Delhi-based Ebony has commenced a massive expansion in northern India with eight new stores and a combined retail space of 150.RETAIL Enter.

 TCNS Clothing has 17 stores across the country and is planning to increase the number to 37. and plans to add 30 more by mid 2006.  Bangalore-based SRS Value Bazar – which currently has 15 stores spread over 9 of India’s largest cities. covering all major cities  Spykar has set up 22 stores across the country. with organized retailing accounting for a mere 3. plans to open 35 more outlets in the next three years.RETAIL  Mumbai-based lifestyle chain Pantaloon has spent around US $ 660000 this year to revitalize its brands and promote new brands. ORGANIZED RETAIL TO GET BIGGER Organized retail in India is on a high growth trajectory and is expected to grow at 25-30 per cent per annum in the next 5-6 years.5 per cent of India’s total retail market. 33 . The size of the retailing market is estimated to be around Rs 350 billion in 2004-05.

34 . value retailing is seen to be gaining ground in India. with home décor. thus. Impulse goods like books and music are also gaining a larger share in the organised retail market. The penetration levels of organized retail are expected to touch 8 per cent by 2010.The retail industry growth is estimated to be slightly higher than GDP growth at constant prices. with players making stores more accessible to consumers. The proliferation of hypermarkets and supermarkets has led to a growth in food and grocery retail. and food and grocery emerging as the fastest-growing segments. thereby taking the total organized retail business to around Rs 1. The other high growth verticals are apparel and durables.095 billion. RETAIL Organised retail is expected to grow at 25-30 per cent per annum.

This figure is expected to increase to 32% by 2010. But with a population base of 1. a market next only to USA. While consumer demand is driving retail growth.07 billion people. this number amounts to 30 million people. Urbanization: The Indian urban population is projected to increase from 28% to 40% of the total population by 2020 and incomes are simultaneously expected to grow in these segment. Japan and China.a. which currently comprises 22% of the total population.5% p.000 a year (PPP terms) on conspicuous consumption represent 2.KEY DRIVERS OF GROWTH RETAIL Indians with an ability to spend over USD 30. till 2015. Disposable incomes are expected to rise at an average of 8.8% of the entire population. it is in turn being driven by the following factors:  Economic growth: This has meant greater disposable incomes for the booming Indian middle class.   35 . Demographics: More than 50% of the population is less than 25 years of age and strong growth is expected to continue in this age bracket.

5.000 sq.7 bn by 2005 RETAIL These positive macro trends are resulting in changing preferences in demand for lifestyle goods. 1. The Indian Government is also likely to spend USD 150 billion over the next few years to develop world class infrastructure. Another key driver for organized retail is the surge in mall growth. ft) Convenience store. thereby aiding growth in the retail sector. 36 . Credit availability: Retail loans have doubled in the last three years to reach USD 38. Mindsets are shifting towards an organized retailing experience.000 sq. free home delivery etc. typically (7.500 . typically (1.000 .7 Different Forms of Retailing : Emergence of new formats of retailing in India • • • • • Popular Formats Hypermarts Large supermarkets.2. The number of malls is expected to rise from 158 in 2005 to 600 by 2010. ft) Discount/shopping list grocer • Traditional retailers trying to reinvent by introducing self-service formats as well as value-added services such as credit. ft) Mini supermarkets. typically (3.000 sq.50 .1.

 HEALTH & BEAUTY PRODUCTS With growth in income levels. Indians have started spending more on health and beauty products .RETAIL The Indian retail sector can be broadly classified into:  FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector.In comparison. However the growth rate of super market sales has being significant in recent years because greater numbers of higherincome. single-outlet retailers dominate the market.However in recent years. a few 37 . who operate small singleoutlet businesses mainly using family labour. super markets account for a small proportion of food sales in India.Here also small. dominate this sector . Traditional types of retailers. Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience.

Despite the large size of this market. Although these retail chains account for only a small share of the total market . modern clothing and footwear stores have modern products and attractive displays to lure customers. RETAIL  HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. with rapid urbanization.  DURThe Indian durable goods sector has seen the entry of a large number of foreign 38 . However. However there is considerable potential for the entry or expansion of specialized retail chains in the country. it is unlikely that the traditional outlets will survive the test of time. very few large and modern retailers have established specialized stores for these products. Traditional outlets stock a limited range of cheap and popular items. and changing patterns of consumer tastes and preferences.retail chains specializing in these products have come into the market. in contrast. their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products.  CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India.

etc. music products. There are specialized retailers for each category of products (books. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers.companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. RETAIL 39 .) in this sector.  LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country.

LG. Samsung. NEXT has some of the topmost brands such as Electrolux. Home Theatre systems. Microwaves to small Home Appliances.Chapter2) Introduction To NEXT Retailing:- RETAIL History and its Existence: NEXT is one of the emerging giants in the organized retailing of consumer electronics and home appliances products which has been formed to tap the immense potential of the 50. Philips. HCL. Aiming to be a multi-brand multi-product outlet it stocks an entire range of consumer durables right from AirConditioners. Under the aegis of NEXT Retail India Ltd. Hyundai. NEXT. NEXT has now become the only consumer electronics chain that delivers across India with its presence in 16 states and over 384 outlets spanning across all metros and mini metros in the country.000 crores retail industry. Sahara. Washing Machines. Toshiba. NEXT is a project developed by a consortium of investors and professionals with more than 3 decades of retail experience. 40 . Kelvinator. Refrigerators. LCD and Plasma TVs. Nokia. Videocon including its own brand under its stable. Sansui. Onida. Kenstar.

For a consumer. Now. holiday packages. attractive exchange offers and free home delivery within city limits – as part of a launch offer. RETAIL It is reasons such as these that have positioned NEXT as an emerging leader with a host of multinational brands in its kitty.” The highflying brands you come across here are coupled with a host of freebies . opening offers. 700 crores by next year. specialized prices. Being India’s largest chain of electronics showroom. NEXT is all set to enter other lifestyle categories as well. 41 . Further NEXT is the only chain to do institutional supplies across all product categories and across brands. NEXT has always stood by its promise of “Best brands.Next has an ambitious plan to create a network of more than 400 retail outlets and a targeted turnover of more than Rs. under which premium brands from various categories would be available at competitive prices. zero percent finance options. And aah! there is also an exclusive range of NEXT CTV’s and home appliances. A single roof. NEXT promises to deliver across the country subject to the availability of a NEXT outlet in the state. Best bargains. this means a complete shopping experience.surprise gifts.

waiting to take you far! RETAIL BEST BRANDS. Dhruva. freedom through empowerment.” 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. NEXT promises to deliver across the country subject to the availability of a NEXT outlet in the state. and cost through volumes. Efforts are on to expand the network to more than 400 retail outlets in the near future. So the next time you decide to shop. Chief Operating Officer.According to Mr. Because there may well be a NEXT outlet close by. 700 crores next year. passion through quality. BEST BARGAINS “NEXT Retail India Ltd. don’t go far. with a targeted turnover of more than Rs. has some very aggressive plans chalked out for brand NEXT. is one of the emerging giants in the organized retailing of consumer electronics and home appliances products. India's largest chain of electronics showroom. We should imbibe a world class system to bring in delight to all our associates and the society at large.” 42 . Further NEXT is the only chain to do institutional supplies across all product categories and across brands. NEXT Retail India Ltd.

quality. continuously striving for excellence with pride in our values and confidence in our approach”. human resource development.RETAIL MISSION “The mission of NEXT is to create unique customer satisfaction through innovation.  Customer Oriented organization – have even created special email ids for suggestions / complaints of customers and employees  Always Open to suggestions & improvements. Unique to Next  Only chain of outlets to deliver across India. freedom through empowerment.  Only chain which does institutional supplies across all product categories and across brands. productivity. spread across India. BUSINESS:We are a chain of retail outlets dealing into consumer electronics. We are currently having 43 .

Onida. A single roof.Sansui.Sahara.NEXT.Hyundai.Nokia. Home Theatre systems. Now.200 operational retail outlets all across the country. this means a complete shopping experience.Toshiba.Phil ips. For a consumer. Washing Machines. under which premium brands from various categories would be available at competitive prices. 700 crores by next year. thus making us the largest retail chain in India. LCD and Plasma TVs.Kenstar. It is reasons such as these that have positioned NEXT as an emerging leader with a host of multinational brands in its kitty.LG.Kelvinator.Videocon including its own brand under its stable. NEXT is all set to enter other lifestyle categories as well.Samsung. Refrigerators. Microwaves to small Home Appliances. NEXT has an ambitious plan to create a network of more than 400 retail outlets and a targeted turnover of more than Rs. NEXT has some of the topmost brands such as Electrolux. 44 . RETAIL Aiming to be a multi-brand multi-product outlet it stocks an entire range of consumer durables right from AirConditioners. HCL.

such as refrigerators. safe and comfortable as possible for people. This mission is present in everything we do.The Electrolux Group is the world’s largest producer of appliances and equipment for kitchen. We make products that do their job instead of being in the way. Our products are designed for those who wish for sensible and practical solutions.RETAIL BRANDS OF NEXT  ELECTROLUX: Electrolux mission is to make daily life as easy. When we develop new products. chainsaws. 45 . cleaning and outdoor use. our goal is to satisfy ordinary people’s daily needs. washing machines. cookers.

Frigidaire. Eureka.lawn mowers and garden tractors. Electrolux is also one of the world’s largest producers of similar equipment for professional users. which are sold under the Electrolux brand or other famous brands such as AEG. Every year consumers if more than 150 countries buy more than 55 million Group products. RETAIL 46 . Flymo and Husqvarna. Zanussi.

30 years of IT expertise Single window solution to satisfy all your IT needs Association with Global Technology Leader to bring you the latest and the best India's largest installed base for PCs and Servers Successful rollout of the largest order in the country . 47 . No.RETAIL  HCL: HCL.1 in PCs for the last 6 years and Top 3 in Servers .

Since then Hyundai has scaled numerous obstacles and overcome the odds to earn global recognition for advanced technology and quality.RETAIL  HYUNDAI: The undisputed Global leader of the auto and shipping industry on whom the global media spotlight is shining today has a very short corporate history that dates back to the year 1967 when it was founded in Korea. Backed by 48 . Hyundai proudly announces a new chapter – Hyundai Electronic India Ltd by foraying into consumer electronic and the home appliances industry. In just over three decades. their courage and their desire to realize the impossible dream. Hyundai has grown into the world’s eighth largest automaker. What has made all the difference are the people of Hyundai. Never complacent with its achievements.

state-of-the-art production facilities at home and abroad plus aggressive market strategies.its sophisticated R&D capabilities. RETAIL 49 . the company is now all set to conquer the Consumer Electronic and Home Appliances industry in India.

Residential and commercial Heating and 50 .RETAIL  KELVINATOR: Since 1926. Kelvinator has been manufacturing various types of refrigerators for seventy-five years. a British mathematician and physicist who originated the concept of absolute zero. Kelvinator has always been about controlling the temperature inside an environment. The Kelvinator name stems from the work of Baron Kelvin. Kelvinator has been a leader in scientific applications of requiring constant temperatures as low as -130 degrees. Still today this is the basis for the thermodynamic measurement of temperature. including early work with appliances using block ice.Their commercial work made them recognized as a leader in the ice cream market segment.

cooling products are Kelvinator's history. just a natural RETAIL extension of 51 .

Telecommunication Equipment & Handset. With annual total revenues of more than US $16. The company is a major global force in electronics and information and communications products with more than 64.9 billion(nonconsolidated). Digital Appliance. 52 . LG Electronics comprises three main business companies : Digital Display & Media.RETAIL  LG: It was established in 1958 as the pioneer in the Korean consumer electronics market.000 employees working in 76 overseas subsidiaries and marketing units around the world.

It aims at captivating Rs.3000 Crores in next 3 years. 53 .50. Next is an emerging leader in the Multi-brand Multiproduct retail sales network of consumer Durables.000 Crores retail industry through our 1500+ Exclusive retail outlets across the country with the estimated annual turnover of Rs.RETAIL  NEXT: An emerging Leader in Consumer Durable Retail Sales.

Our constant endeavour to introduce newer and newer models that are not just feature rich but futuristic and visually appealing as well. Mirchandani and Mr.RETAIL  ONIDA: Onida was started in 1981 in Mumbai by Mr. Onida started assembling television sets. Onida has strengthened its reputation for the intelligent and pioneering application of technologies. In 1982. Superior products and the combination of clever advertising and purposeful marketing soon ensured that Onida became a household name.Onida today enjoys a strong equity among consumers making it one of the leading brands in India. have made Onida a leading 54 . G.L. Over the years. Capitalizing on the Asian Games at New Delhi. Vijay Mansukhani.

2 Million CTV sets per annum. RETAIL 55 .CTV player today. In fact Onida now has an installed capacity of over 1.

wireless communications. electric shavers. With activities in the three interlocking domains of healthcare. We are active in about 60 businesses.RETAIL  PHILIPS: It is one of the world's biggest electronics companies and Europe's largest.500 employees in more than 60 countries.Philips is tenth on Fortune's list of global top electronics corporations. it has market leadership positions in medical diagnostic imaging and patient monitoring.We are a world leader in digital technologies for television and displays.3 billion in 2004. storage and optical products as well as the underlying 56 . varying from consumer electronics to domestic appliances. lighting and silicon system solutions. and from security systems to semiconductors. video compression. with sales of EUR 30. color television sets. speech recognition. lifestyle and technology and 161.

semiconductor technology breakthroughs possible.








Ever since it was founded in 1938, SAMSUNG has continually refined its mission statement to respond both to change in itself and in the world: "Economic contribution to the nation," "Priority to human resources," "Pursuit of rationalism." Each slogan represents significant moments in SAMSUNG's history, reflecting different stages of the company's growth from a domestic industrial leader into a global consumer electronics powerhouse.In the 1990's, we once again acknowledged the need to transform our mission statement to keep pace with our growing global operations, rapid changes in the world economy, and escalating competition from well-established rivals."We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society.



Sansui Electric Co., Ltd.. The Groups principal activities are the manufacturing and sale of audio and visual equipment including LC TVs and information devices.The operations are carried out through the following divisions: Audio and Visual equipments and other. The Audio and Visual equipment division manufactures audio equipment, liquid crystal television, liquid crystal display and related products. The Other division deals in after sales service and leasing.


 60 .RETAIL  TOSHIBA: It is the holding company for one of the nation’s leading group of high technology companies. sales and service in its field of expertise. with 364 consolidated subsidiaries worldwide. By 1989. Toshiba America had achieved its current structure of separate operating companies marketing a variety of diversified electronics and high technology products. manufacturing. the Tokyo-based parent company. TAI is a subsidiary of Toshiba Corporation. a world leader in high technology products. History Toshiba Corporation. TAI is the parent of six operating companies that together span a diversified range of modern electronics. established American operations in 1965. each conducting research and development.

Strip loaders and others. tools and related machine tools like Straighteners.RETAIL IFB  IFB Industries Limited originally known as Indian Fine Blanks Limited started their operations in India during 1974 in collaboration with Hienrich Schmid AG of Switzerland. Decoilers. The product range includes Fine Blanked components. 61 .

dishwashers. Amana. Brastemp and Consul. the world’s leading independent brand valuation and marketing metrics consultancy. including fabric care. The Whirlpool brand is the world's No. Jenn-Air. KitchenAid. cooking. garage organization and water filtration. 1 global appliance brand and ranks among the world's most valuable brands identified by Brand Finance.RETAIL WHIRLPOOL Whirlpool manufactures appliances across all major categories. 62 . refrigeration. includingWhirlpool. countertop appliances. Bauknecht. Maytag. Whirlpool markets some of the world’s most recognized appliance brands.



The Sony Group is primarily focused on the Electronics (such as AV/IT products & components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial Services (such as insurance and banking) sectors. It not only represents a wide range of businesses, but also remains globally unique. Its aim is to fully leverage this uniqueness in aggressively carrying out our convergence strategy so that it can continue to emotionally touch and excite its customers.




Samsung is comprised of companies that are setting new standards in a wide range of businesses, from consumer electronics to petrochemicals, from advertising to life insurance. They share a commitment to creating innovative, high quality products that are relied on every day by millions of people and businesses around the world. Samsung has been dedicated to making a better world through diverse businesses that today span advanced technology, semiconductors, skyscrapers and plant construction, petrochemicals, fashion, medicines, finance, hotels and more. Samsung Electronics leads the global market in high tech electronics manufacturing and digital media.




The Videocon Group is committed to create a better quality of life for people and furthering the interests of society, by being a responsible corporate citizen.. In 1985, through a technical tie-up with Toshiba Corporation of Japan, Videocon International Limited launched India's first world class Color Television. Today, Videocon International Ltd., the flagship company of the Videocon Group, is India's leading manufacturer of Consumer Electronic products. Fired by a passion for innovation, Videocon has kept pace with the changing face of technology, constantly upgrading its manufacturing facilities to incorporate advanced technology and high standards of quality into its product range, right across the spectrum. Videocon's production facilities are located

both backward areas. RETAIL 66 . near Aurangabad.at Chitegaon and Bhalgaon . India.

000 square feet store of appliances doesn’t need much introduction. There is a plethora of appliances available here from a variety of multinational brands. The sleek range of mostly black. Each appliance is grouped as per its type.RETAIL Outlets of NEXT Retailing: NEXT Shops Welcome to a friendly place where you can pick up your new articles . What you see – This 2.Subscribe to any value added services and get more information on them. white and silver appliances goes well with splashes of orange on the walls and the logo of the shop. MetroMela also noticed that the huge LCD screen which was a part of the window dressing seemed to gather a lot of attention from passers-by. NEXT Shops are located at very convenient locations around the country. What you get – 67 . Next is a part of a large consumer appliances retail chain which has made its presence felt in 16 states with around 400 outlets.

These are available in door variety. CD players and even small home appliances. 14. 16. Videocon and its own brand Next are available here.000.500 and a multi-purpose one with baking option would come for Rs. solo with grill would come for Rs. LG. While the basic one would cost Rs. 65. HCL.1.000 be good for small offices or cabins. Videocon and Samsung brands.500 while the ones from Samsung or LG cost about Rs. 5. RETAIL 68 . 8.000. They also have a small-sized television from Next that could cost a mere Rs. washing machines. Philips. We really liked from Videocon which would personal Our verdict of brands are also available both single door and double the small fridge of Rs. 4. Sahara. Refrigerators from a variety here.000 and go up to Rs.Next stocks various appliances like air-conditioners. Fully automatic washing machines from Whirlpool cost Rs. Microwave ovens can be chosen from Kenstar. depending upon the size. Toshiba. 12. Sansui.50. microwave ovens. LCD and plasma televisions. refrigerators. Samsung. Nokia. Kenstar. Brands like Electrolux.000. Onida. Hyundai. LCDs from Samsung seem to have many patrons here. Kelvinator.500. These start from Rs. home theater systems. 4.000.

We are a chain of retail outlets dealing into consumer electronics. thus making us the largest retail chain in India. We encourage you to read our privacy 69 . To earn your trust and confidence in our commitment. the place is top-notch as the salesman gave MetroMela detailed information about the specialty of each appliance and brand. The Largest Consumer durables retail chain invites your resumes for certain openings at various locations. having fun while you are at it.. we are fully disclosing our privacy practices. NEXTCommitment NEXT is strongly committed to your right to privacy and to keeping your personal and financial information secure.Next has around 11 stores within the city of Pune and they are planning to launch many more. We are currently having 200 operational retail outlets all across the country. In terms of customer service. Also to enjoy the satisfaction that comes from handling important responsibilities in the best way possible. the chance to work with one of India's most respected companies. in one of India's fastest growing industries and the opportunity to make a difference. spread across India. They always have freebies on offer. distance will not be an issue. RETAIL What can you expect from a career at NEXT ? Well. And most importantly. • NEXT Retail India Ltd. So keep an eye for those. So irrespective of where you stay.

By making them available on this Site. There are a number of proprietary logos. and trademarks found on this Site all of them being property of their registered owners. writings. and clippings. and civil and criminal statutes. service marks. service marks. the laws of privacy and publicity. or trademarks. NEXT Websites The NEXT site may contain links or references to other websites. NEXT is not responsible for the privacy practices or the content of such websites. You cannot use the Content. and other copyright laws. including but not limited to images. trademark laws. are protected by copyright under the copyright law. RETAIL Ownership All materials on this Site.statement to understand what types of personally identifiable information we collect and how we use this information. You agree to follow all instructions on this Site limiting the way you may use the Content. NEXT does not grant you any permission to utilize those proprietary logos. except as specified herein. software. Any unauthorized use of the Content may violate copyright laws. schemes and offers This may contain contests that offer prizes or that requires you to send in material or information about 70 . Contests. international conventions.

distribute and publicly display such comments and materials without limitation or liability. reproduce. including but not limited to developing. concepts or techniques. NEXT shall have no obligation of any kind with respect to such response. manufacturing and marketing products incorporating such ideas. and NEXT shall be free to use. knowhow or techniques contained in such response for any purpose whatsoever. NEXT intends the information contained in the NEXT Web Site to be accurate and reliable RETAIL 71 . which you must read and agree to before you take part in them. No Responsibility for Errors or Other Inaccuracies NEXT is not responsible for typographic errors or other inaccuracies in the content provided on the NEXT Web Site. Each contest scheme and offer has its own rules. Responses Provided to NEXT Any comments or materials sent to NEXT. suggestions and any other response shall be deemed to be nonconfidential.yourself. including feedback data such as questions. comments. concepts. NEXT shall also be free to use any ideas.

NEXT has equally emphasized on this basic concept of five senses.RETAIL STORE ATMOSPHERICS Every store tries to provoke all the five senses i. on account of having a separate fragrances counter. FRAGRANCE Many buying decisions are based on emotions. skin and tongue. disgust and nostalgia-the same feeling marketers want to tap”.-eyes.e. is a straight line to feelings of happiness. nose. and smell or the olfactory sense has a large impact on our emotions. “Smell more than any other sense. ears. VISUAL 72 . a very soothing fragrance is maintained which helps customers to relax. At NEXT. hunger. of customers so as to enable them to shop in a more relaxed and soothing manner.

The bright light adds freshness to the store and used for quick sales. Lightning is also used to highlight merchandise.Graphics. both in the stores and in the window-help boost sales by providing information about the products and suggesting items for special purchases. signs. sculpt space. and capture a god mood of feelings that enhances the store image. At NEXTs’. RETAIL 73 . Good lightning in store involves more than simply illuminating space. and theatrical effect.

At NEXTs’ pop and peppy music is played to ensure a quick purchase effect on the customers. Cafeteria named as “CAFÉ BRIO” where customer can sit back and relax and have some snacks 74 .RETAIL MUSIC Like colour and lightning. music can also add or detract from a Retailer’s total atmospheric package by affecting the aural sense. TOUCH The products are easily assessable to customers so that they can touch and feel the quality of the merchandise and see if it appeals their sense of touch. The music playing in the store was kept to be western so as to prevent the salesmen picking up the song easily and offend the customers by singing . TASTE NEXT is amongst the few department stores to have the concept of taste into consideration.

To make a shopper a stopper is an achievement of visual merchandising. People buy colour before they buy size. to who it appeals. and the caliber of its merchandise and merchandising VARIOUS ELEMENTS OF VISUAL MERCHANDISING COLOUR Colour is the biggest motivation for shopping. to let people know what the store is. fit or price. where it stands on fashion trends. 75 .VISUAL MERCHANDISING RETAIL Visual merchandising involves creating a display that stimulates. tantalizes. The purpose of Visual merchandising is to promote the store image. what one can expect inside the store. InNEXT’s’. even though the shopper is not motivated by the displayed product itself. its price range. Colour blocking is done in order to differentiate and display colours in a beautiful manner and thus catch customers eye. or arouses the shoppers’ curiosity to such a degree that a person walking by is “challenged” to enter the store and wander through it.

This type of music ensures fast and quick sales by stimulating the aural sense of the customers.Music in particular helps create a retail environment in which sensory satisfaction brings relaxation and willingness to purchase.Colour blocking is done mainly from cool colours to warm colours in summers and vice-versa in winters.more on the Jazz and Pop side. NEXT’ go style wise. NEXT’ descend the sizes from bottom to top.placement plays a very important role both functionally and visually. MUSIC Aural sense is another sense to be playing an important role when a consumers decides to buy. colour wise and size wise. Besides displaying the merchandise colour wise RETAIL PLACEMENT OF MERCHANDISE Merchandise needs to be placed in a manner that is easy to locate and enhances the visual display of the store. LIGHTING 76 . Talking about the size wise display.NEXTs’ Stop plays english music.

FIXTURES Flexible fixtures gives the freedom to take them off whenever a store plans to move out from a particular location.The visual aspect of the store is enhanced by the correct use of lighting. Fluoroscent light is used for quick sales.NEXTs’ uses a combination of flexible and permanent fixtures. It makes them make proper use of the investment they make in the fixtures. flexible fixtures remove boredom and redundancy by giving a new look to the store every now and then.Selection and use of right lighting is vital to a store’s success. NEXTs’ assigns a particular section to fragrances offered by various brands and this tends to keep the entire store fresh and aromatic. TYPE OF STORE LAYOUT 77 . RETAIL SMELL Smell is one of the important element in creating a pleasant ambience inside a store.It stimulates the olfactory sense of a customer.Besides this.NEXTs’ uses Flouroscent lighting in the apparels section and incandesecent light is used to highlight the cosmetics section.

The entire focus is to make customers feel at home.This layout is adopted for upmarket merchandise and allows abundant open space. TYPE OF WINDOW NEXTs’ tends to go for both closed back and open back windows on different floors.83% had free-flow layout. thus making it a grid layout. It exposes shoppers to a great deal of merchnadise as they follow a perimeter trafiic aisle with departments on there right and left of the circular. This layout provides the customers a convenience of browsing in the store whereever they like. RETAIL STORE LAYOUT NEXTs’ follows a race track layout where merchandise is strategically place in order to make the customer browse through the entire store befor he reaches his pre-decided product. This 78 . A closed back window lets the customer see only the specially prepared window and shuts off the interior view of the store completely. Only 2% of stores surveyed had aisles.This type of layout allows unstructured traffic flow.In all the speciality stores surveyed. rectangular or oval racetrack. square.

An open back window gives a chance to the passer bys to peep inside the store and look beyond what is displayed in the window.Shoppers’ maintains the same VM. which can convey either a quality or a popular price image.etc. RETAIL APPLICATION OF THE SAME VM TECHNIQUES It is very important for a brand to maintain uniformity in its image. across all its locations. A brand can maintain the same image only when it has visual merchandisers to take care of all the stores in a particular region.noida. interiors.allows the retailer to bring customer’s attention on displays. It means that a person shopping at NEXTs’ at sec-18. Ansal Plaza should be getting the same retail environment at Great India Place.This window comes with the disadvantage of people overlooking the nicely done windows. store interiors and the colors used in a store. FIXTURES 79 .music.This uniformity is maintained through the windows.

Simply. hold. PROMOTIONAL SCHEME DURING DEWALI • • • • • • 101 COMBO OFFER 5% OFF FOR ALL CUSTOMER 5% OFF FOR OUR EXITING CUSTOMER COUPANS GIFT PACKS INSURED GIFT FOR SOME SELECTED PRODUCTS. a fixtureless store is one that is not equipped to function. 80 . take money and make change. It is not ready to accept.RETAIL A store without fixtures is not finished. stock. There would be nothing in the store to tell you what is being offered. It is not equipped to transact sales. and stock merchandise. and what accessories are available. and wrap the purchase. what the selection is.

Indore and Ahmedabad. operates Westside. lingerie. Nagpur. Gurgaon. These include Menz wear. Star India Bazaar. Pune. Jaipur. Ghaziabad. Kolkata. Kid’s wear.COMPETITORS OF NEXT RETAIL  Westside: Established in 1998 as part of the Tata Group. Chennai. Trent Ltd. Trent ventured into the hypermarket business in 2004 with Star India Bazaar. Hyderabad. Perfumes and Handbags. aptly exemplifying its ‘Chota Budget. Delhi. The Westside stores have numerous departments to meet the varied shopping needs of customers. Footwear.30. providing an ample assortment of products made available at the lowest prices. Bangalore. Household Accessories. Cosmetics. Lambi Shopping’ motto.000 square feet each) in Mumbai. The company has already established 25 Westside departmental stores (measuring 15. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing. Women’s wear. one of India's largest and fastest growing chains of retail stores.000 .000 square feet store in Ahmedabad and plans to extend its presence 81 . Noida. and Gifts. presently has one 50.

women and children. It was later that music was added to it. stationery. Until 1996. music. CDs and other gift items. varying in size from 12. Landmark also sparked the trend of stocking curios. 3 in Chennai and 1 each in Bangalore. ft. one of the largest books & music retail chains in the country.across all major metros. dairy products.000 sq. consumer electronics and household items at the most affordable prices. Gurgaon. Trent recently acquired a 76% stake in Landmark. to 45. What separates Landmark from other stores of its kind is the range and depth of its stock. Landmark’s product portfolio comprised books. RETAIL In addition. Landmark began operations in 1987 with its first store in Chennai with a floor space of 5500 sq. beverages.000 sq.  Pantaloons 82 . fruits. vegetables. This store offers customers an eclectic array of products that include staple foods. ft. health and beauty products. At present Landmark has 7 stores. greeting cards. Mumbai and Vadodara. toys. Star India Bazaar also includes a large range of fashionable inhouse garments for men. exclusively available at the store. ft.

Some of it’s other formats include.000 people.5 million square feet of retail space. It went on to launch Central. home solutions and consumer electronics. seamless mall located in the heart of major Indian cities. Pantaloons. general merchandise. Depot (books. aLL (fashion apparel for 83 . gifts and stationeries). Collection I (home improvement products). wellness and beauty. followed by Food Bazaar. the company operates through 3.RETAIL Pantaloon Retail (India) Ltd. a first of its kind. a hypermarket chain. health. In 2001. E-Zone (consumer electronics). it launched Big Bazaar. Pantaloon Retail forayed into modern retail in 1997 with the opening up of a chain of department stores. has over 100+ stores and 30+ cities in India and employs over 14. books and music. e-tailing and Leisure & Entertainment. The company owns and manages multiple retail formats catering to a wide cross-section of the Indian society and its width and depth of merchandise helps it capture almost the entire consumption basket of the Indian consumer. music. fashion. a supermarket chain. communication products. is India’s leading retail company with presence across food. Founded in 1987. Headquartered in Mumbai (Bombay).

Future Space (management of retail real estate). Future Capital (financial products and services).” One of the core values atFuture Group is. Future Brands (management of all brands owned or managed by group companies). Gini & Jony. Everywhere. RETAIL Some of the group’s subsidiaries include Home Solutions Retail India Ltd. Everytime to Every Indian Consumer in the most profitable manner.plus-size individuals). Future Bazaar (India) Ltd and ConvergeM Retail (India) Ltd.com. Other group companies include Pantaloon Industries Ltd. Future Group’s vision is to. “deliver Everything. 84 . Pantaloon Retail is the flagship enterprise of the Future Group. respectively. Retain values. It has also entered joint venture agreements with a number of companies including ETAM group. ‘Indianess’ and its corporate credo is – Rewrite rules. It has recently launched its retailing venture. Galaxy Entertainment and Indus League Clothing. which leads the group’s foray into home improvement. e-tailing and communication products. The Future Group operates through six verticals: Future Retail (encompassing all retail businesses). Debenhams and Guess in India. futurebazaar. which is positioned to cater to the entire Indian consumption space. a company that owns the franchisee of international brands like Marks & Spencer. Shoe Factory (footwear) and Blue Sky (fashion accessories). Liberty Shoes and Planet Retail.

in Manchester. Hulme. the title of Chairman went to Marks’ son Simon Marks.RETAIL  Marks & Spencer The origin of Marks and Spencer was a chain of "penny bazaars". Marks and Spencer became a Limited Company after adopting the revolutionary policy of buying directly from manufacturers. Then Café Bars were introduced in many stores. a wholesaler. Simon Marks started to work with his friend Israel Sieff and thanks to their joint efforts. In 1930 M&S opened a flagship store at Marble Arch. a food department was introduced selling produce and canned goods. The official first Marks and Spencer store opened in 1904. Marks entered into a partnership with Thomas Spencer who was working as Dewhirst cashier. Marks' first full store was opened in 1894 at Stretford Road. A new store format designed by Urban Salon Architects. Michael Marks in Leeds with a loan of £5 from Issac Dewhirst. In 1926 the company then started selling textiles and in 1928 the St Michael Trade Mark was registered. Marks and Spencer grew to become a household name. In 1931. founded in the late 1800s by a Russian-born Polish-Jewish immigrant. has won much praise and is in the process of being rolled 85 . Dewhirst went into manufacturing and remains the biggest supplier to M&S. Then when founders Michael Marks and Thomas Spencer passed away. London.

carpets replaced by laminate flooring. lighting and new black or beige uniform for customer assistants and section co-ordinators and red shirts for section managers. designs. which is a temporary update to interiors in stores which have had recent investment in them. and some new decals. 86 . 35% RETAIL have been Several of the 'Luton' format stores have received what is known internally as a 'Light Touch' re-fit. Areas covered by this refit may include new mannequins. to rejuvenate the old store formats until the full new look overhaul can be undertaken. replacing carpets and laminate floors with white tile throughout (black tile in Foods) thus opening the floor instead of having pathways. or where stores are in areas that are likely to be subject to re-development. larger fitting rooms (replacing old curtained booths baring fleurde-lys designs. equipment. all stores. modern and contemporary design. The full new look makeover is a drastic reworking of store design. and general total updating of decals. till points. including the gutting of old stores. new displays and kit such as new design clothing rails.out across completed. and installation of a brighter. display and product walls. glass walls. product stands (formerly known as "Lutons"). of which. window display styles. more spacious. with new contemporary doored compartments baring black and white model photoshoots). having new contemporary white mannequins in new designs and poses.

Mumbai. It caters to every need of your family.In india M& S has nearly 12 stores all over in New delhi (Ansal Plaza. Retail history: Big Bazaar made Rs 125 crore in total in a three-day sale across its outlets. Gurgaon (MGF Metropolitian Mall). Big Bazaar is not just another hypermarket. 87 . Hyderabad. Pune. Big Bazaar has recognized this. RETAIL  Big Bazaar There is untapped. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. (Above) A file picture of police trying to control the crowds at a Big Bazaar sale in Hyderabad last year. and bigger. Lucknow. potential beyond the new middle-class in this country. Shivaji Place).

it has opened the doors into the world of fashion and general merchandise including home furnishings. cutlery. crockery. sports goods and much more at prices that will surprise you. And this is just the beginning. With the ever increasing array of private labels. RETAIL 88 .At Big Bazaar.that’s what we guarantee. you will definitely get the best products at the best prices -. Big Bazaar plans to add much more to complete your shopping expereince. utensils.

To identify the Indian Retail industry. likings of the customers for individual brands. Marks & Spencer and Big Bazaar and To ascertain potential market and competition in retail market. 89 . To do the analysis of retail market. Is NEXT retail affordable by every income group? Do the customers want to repurchase or revisit Next retailing or not? If yes. then why so. for convenience. Why do they prefer to purchase from NEXT Retail only? How much ratings they give to the particular characteristics of a particular brand. or for its ambience. Ascertain the consumer preferences and satisfaction factor To highlight the perception of the consumers for the organized retail outlets. the players within this segment. or for prices. its booming phase.1 Objectives Of Research: • • • • • • • • • • • To know whether customer prefer a retail outlets for the availability of brand. To know the personality traits. We Have taken the major competitors in Retail segment Westside. Pantaloons.RETAIL  Chapter3) Research 3. its challenges.

2 Research Methodology: There are many ways to get information.RETAIL 3. The methods used are:  Research Design  Data Collection Primary Research Questionnaire Surveys Talking with people 90 • ⇒ ⇒ .

2. The questionnaire development took place in a series of steps as described below: Step 1 Research objectives are being transformed into information objectives. 91 . This gave not only in depth knowledge about what is been offered by the bank but also proved useful while developing the questionnaire. Steps in the Development of the Survey Instruments: The main instruments required for survey was a well-developed questionnaire. Conclusion 3.RETAIL ⇒ ⇒ • Personal interviews Telephone surveys Secondary research Literature searches Through internet Through Periodicals Sampling Procedure Analysis Of Data.1 Process adopted: Gaining knowledge about the Retail Market: Reading about the retail market was the first step undertaken.

Step 8 Revise the questionnaire layout if needed. Step 6 The number of information needed is being determined. Step 4 Specific Questions/Scale Measurement format is developed. Step 5 Question/Scale Measurements is being evaluated.RETAIL Step 2 The Appropriate data collection methods have been determined Step 3 The information required by each objective is being determined. 92 . Step 7 The questionnaire and layout is being evaluated.

Step 11 Filled questionnaire are being analyzed through using software called SPSS. 93 . Step 12 Conclusion and Recommendations are drawn after the analysis.RETAIL Step 9 The Questionnaire format is being finalized. Step 10 The selected customers have filled the questionnaires.

Thus the research is designed with a combination of: • • Exploratory Research design Descriptive Research design EXPLORATORY RESEARCH As I was unaware of the Retail market. and was able to gather information on retail market. exploratory research helped me to gather information from the secondary resources. Internet. I referred to various magazines. 94 .2.2Research Design We carried out the research using a combination of primary and secondary data.L RETAI 3. and industry association reports etc.

It has further helped me in a careful analysis of the secondary data and also refining the desired data by making the objective clearer. 95 .L RETAI DESCRIPTIVE DESIGN After conducting the exploratory research. Under this I have analyzed the consumer behavior on different parameters. I resorted to the Descriptive Design of market research. The Descriptive design has given me a better insight of scope of Retailing (SRS Value Bazar) by bringing to the fore many minute details regarding the consumer preferences. for further concrete details regarding various retail players.

Primary Data: Primary data collected through the questionnaire from the various users of Air Conditioners 96 .L RETAI Descriptive Design using the following methods: QUALITATIVE METHODS: • • • Telephone Surveys Questionnaire Survey Talking to the customers QUANTITATIVE METHODS: Data Collection The whole research is based on primary data as well as secondary data.

Voltas.L RETAI Of LG. 97 . Hitachi. Videocon. newspapers. Samsung. Secondary Data: Secondary data collected through the magazines. shopkeepers’ catalogue and the advertisement.

g.L RETAI 3. city block. Define The population is define in population terms of (a) element (b) Units (c) Extents (d) Time. Specify The means of representing the sampling element of the population e.g.. frame telephone directory. 4.1 STEPS PROCESS Steps IN SAMPLING Description 1. Specify Unit for sampling which holds Sampling the sampling household elements e. 2.3 Sample Status 3. Specify The method by which the sampling sampling unit to be selected method is described i. 3. Determine The number of elements of the Sample Size population to be sampled is 98 . 5.3. Map. probability / non-probability.e. household.

Specify sampling plan 7. 99 . Select the sample The operational procedure for selection of sampling units are selected.L RETAI chosen. 6. The office and field work necessary for the selection of the sample are carried out.

L RETAI 3. The income level of respondents taken also lies between Rs18000to Rs45000or above per month. It is based on the convenient sampling. These 50 respondents are selected approximately equally for all the brands. Total of 50 respondents. Samsung. 50 customers/respondents The customers of LG. Hitachi. 100 . Videocon.3. The Age of respondents is approximately between 18-45 yrs.2 SAMPLE SIZE: • • • • • • • Appox. 80% are the males and rest 20% are the females. Voltas Air Conditioners.

L RETAI Reasons for selecting convenient sampling. • Time constraint • • Resource constraint • Cost constraint 101 .

3. . Sample size The sample size taken for this market research was 50. • The sample size of 50 consumers not sufficient for exact results Regional limitations In conducting the market survey on scope of Online marketing I found regional limitations as our research was limited to Delhi and NCR region. Although I conducted telephonic interviews in different states.4 Limitations Of Research • The results through the questionnaire not always correct. but our statistics holds a greater percentage of Delhi and NCR region. But this sample size is too small to be a true representative for population size. • Convenient sampling some time leads to the distortion in results. The data collected from this sample size cannot be generalized for the population.

Thus adding biasness to the inferences. but manage business complicated by tax structures which vary from state to state. Class limitation The targeted population was in majority from the middle and high-income group. which affected our inferences on the preference on the Internet.Target population The target population for this market group was 18 and above. cultural and linguistic diversity. which limited the boundaries of our research. Retailers not only have to contend with geographical. A successful retailer needs not only the right products at the right place and the right time but must also have the right price to be . But while conducting the research I found that the respondents were maximum in the age category of 18-25. RETAIL INTELLIGENCE India is a very complex retail market.

CLEANSING THE DATA Before any IT initiative. Every solution is graded on the criteria and vendors are expected to demonstrate their products’ . starting from knowing the customers’ buying patterns to ensuring customer loyalty. The third intelligence is operational intelligence. The second is customer intelligence. shoplifting by customers or vendor fraud. In addition. This includes everything related to merchandise. This evaluation process ensures that the business processes are aligned with IT before deploying any IT solution including BI. the business requirements as well as the process to be supported and workflow to be facilitated are carefully evaluated.acceptable to the customer. from product inventory to price and marketing. This ensures cost management and includes reducing retail shrinkage due to theft by employees. the number of products managed is very high. “We use extensive qualitative and quantitative evaluation criteria. Retailers are highly dependent on three types of Intelligence. First is merchandise intelligence. It also covers labour optimisation and proper selection of the shopping mall site.

He adds. “Our current BI applications are fairly compatible with the existing ERP.” elaborates Unnikrishnan. Even if compatibility issues arise. “We ensure that the business process supports the data lifecycle and has the necessary checks and controls to validate the data being entered.” says Unnikrishnan. all the criteria. a company may build their own proprietary data model. updating. transformation is carried out and then this data is loaded onto the data warehouse. The choice may vary based on various factors. SCM and CRM applications.capabilities on Unnikrishnan. “The data which is transferred from online transaction processing systems (OLTP) has to be cleansed. enough Enterprise Application Integration (EAI) tools and middleware applications are available to .” emphasises As BI analytics depend critically on data integrity and reliable data resources. In some cases. changing and deleting data through the business processes. As and when required. But first. SRS Value Bazar have models for collecting. a data mapping exercise that maps company-specific data to a retail industry standard data model should be completed.

profitability of a customer base or segment and total revenue earned through the lifecycle of a customer. BI implementations in some areas have paid rich dividends. inventory and sales as required.” stresses Unnikrishnan. We also use BI for our CRM activities as well as for other areas of merchandising. Here too the results have been encouraging. and the transformed data can be easily loaded on the data mart or data warehouse. business processes and functions. ETL tools too are easily available to extract data.” BI solutions are currently implemented to measure revenue parameters. customer enrolments. “Birthday mailers are sent out to our loyal customers and the response to this initiative is phenomenal. We also use BI during the festival season to increase traffic to the stores. . BI is also used to measure the merchandise mix. RICH DIVIDENDS The RoI depends on the application for which the BI is used.” says Unnikrishnan. “Business Objects is used for many business applications.resolve the issue and harvest the data into the data warehouse.

This has helped create a focused campaign and incentives for its high-value customer base. The organisation uses the information and analysis collected from the BI tools to help it study the demographic details of the target markets and position merchandise in retail store locations. The recent diamond mine festival was a big hit with high-value customers as was its iPod giveaway scheme. FUTURE OF RETAIL BI .NEXT retailing has used various predictive methods and models to find out which of its customers are likely to buy again and how much.

000 square feet of retail space and stocks over 250 brands of garments and accessories.00. Jaipur. Pune. About 50. Delhi.BI will help the retail sector in understanding the customer. Chennai. Mumbai. Hyderabad. This insight will be used to make proper business decisions pertaining to various areas. Make shopping a delight by understanding the customer's needs. In BI’s future is a fusion of intelligence with business processes. Shopper's Stop ani is a family store delivering a sati complete shopping on experience. Raheja Corporation with operations in Bangalore. The company has a national presence of over 6. It is a retail venture of the K. The Aiming to position itself as a org global retailer.000 customers visit a Shopper's Stop every day. provide better products and reduce operational cost The need . Gurgaon and Kolkata.

Business The benefits BI has helped the company craft focused campaigns and offer incentives to its highvalue customers. It has helped the organisation study the demographics of target markets and position appropriate merchandise in its retail stores.and boost revenues. The solution BI solutions from Objects and SAS. .

SWOT analysis of NEXT .Chapter 5.

VM should be given more consideration and some necessary changes should be made such as lighting. 4. . 2. Merchandise should be arranged in a proper manner. To set up an electronic information KIOSK where from the customer can get the information about the location of various products since the shop floor is very large. Merchandise not meant for selling should be immediately removed from the shelves. 3. fixtures and colour blocking. 5. Proper training programs should be held in order to train CCAs to motivate them and to enhance their skills especially new CCAs should be trained properly regarding the departments they are going to handle and to make them fully aware of the brands.Chapter6) Concluding: CONCLUSIONS AND SUGGESTIONS 1. wall colour.

There should be a well lit emergency exit. Proper staff scheduling should be there. Provision for smoking zone for the customers who smoke in order to retain them so that they shouldn’t leave the preemies. Paging should be louder and for longer period. Special occasions should be celebrated to engulf the customers in the environment by conducting extra activities. 5. 11. 9.2 Scope of further study: This Research project has surveyed only the 50 respondents but as we all know that there is large market. 7. As the shrinkage and theft is a general problem so to prevent it the store should be put on electronic surveillance. 8. 14. 12. TV screens could be used for in-house promotions wherein you can display the current offers and schemes running in the store and can also give information about various inhouse and private label brands.6. 10. . Uniform ticketing should be there at each and every browser. Proper marketing channels should be used to increase the customer base. large number of customers who have their differing opinions. 13.

50 respondents do represent a group of people or masses but still we need to further study some more respondents to make this study more feasible and more reliable. Reasons for selecting convenient sampling. The study involves only the customers of Delhi and NCR region not All over the country. Sometimes even the questionnaires or the surveys are not properly or carefully given the attention. Normally most of the purchase decisions for the Air conditioner in the families are jointly taken by the family members but at the time of filling the questionnaire these are filled by only one person from a family hence it can not be the truly reliable responses. Respondents sometimes do fill them without giving time and filling what comes first to their mind. The sample size or the respondents were selected on the basis of convenient sampling. Hence there can differing customer perceptions from the region to region. • Time constraint • Resource constraint • Cost constraint .

this can also provide inconsistent analysis because most f the purchasing decisions are made by he housewives but the questionnaire are filled by the male members of the family or the husband.Due the above constraints also sometimes the conclusions drawn are not accurate. 70% of the males responded and only 30% are the female respondents. to better understand the brand profiling and understanding the customers of a particular brand we need to further continue our study so that we get the maximum out of it and reach to the highly reliable and feasible conclusions. Hence. . Sometimes even the customer’s do not understand the importance of these surveys and just give their responses just for the sake of giving. Therefore. In this analysis we found that appox.

marksandspencer.wikipedia.tatagroup.com Magazines & Periodicals: 4Ps Business Week Retail biz Retail Asia Images Retail .emartindia.com www.quickmba.com www.com www.com www.com www.Bibliography: Websites: www.pantaloons.pantaloon.com/merchandisebigbazaar.google.htm www.com  www.

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