INTRODUCTION
Retailing industry occupies a prominent segment in any economy both in terms of GDP contribution and share in total employment. It is contribute 10% of total Indian GDP. Indian retail sector is divided into two sector organized and unorganized. Organized retailers are the licensed retailers who pay sales tax, income tax but in India only 2% are organized retailer and 98% is unorganized. Retail has been acknowledged as one of the major employment sources all over India and the number of potential opportunities in the sector is on the rise. Many changes have been occurred in the field of retailing and hence marketing functions too have been experiencing dramatic changes across the world by virtue of the unrelenting wave of globalization sweeping across the world. The project explain the current retail scenario of India and growth of different retail sector and about the major retail players of India. The project will Also describe the opportunities and challenges of Indian retail sector.

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A.OBJECTIVE OF THE STUDY
o To know the past and current scenario of organized retail sector in India. o To know strengths, weakness, opportunities and, threats to retail sector in India. o To know about the major retail players and their future. o To understand the future growth of retail sector and their contribution in the country . o Scope of investment in retail market.

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B. RETAILING
Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. AT Kearney, the well-known international management consultancy, recently identified India as the ‘second most attractive retail destination’ globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of many foreign eyes. With a contribution of 14% to the national GDP and employing 7% of the total workforce (only agriculture employs more) in the country, the retail industry is definitely one of the pillars of the Indian economy The retail scenario is one of the fastest growing industries in India over the last couple of years. India retail sector comprises of organized retail and unorganized retail sector. Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Unorganized retailing consists of small and medium grocery store, medicine stores, subzi mandi,
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kirana stores, paan shops etc. More than 90% of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities. Organized retail in India is expected to grow 25-30 per cent yearly and is expected to increase from Rs35, 000 cr. in 2004-05 to Rs109, 000 cr. ($24 billion) by 2010.

Manufacturer

Retailers

Customers

Distributors/Wholesalers

Retailing involves selling products and services to consumers for their personal or family use. Department stores, like Burdines and Macy's, discount stores like Wal-Mart and K-Mart, and specialty stores like The Gap, Zales Jewelers and Toys 'R' Us, are all examples of retail stores. Service providers, like dentists, hotels and hair salons, and on-line stores, like Amazon.com, are also retailers.

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B.1 Importance of Retailing

• As the final link between consumers and manufacturers, retailers are a vital part of the business world. It would be very costly and time consuming for you to locate, contact and make a purchase from the manufacturer. Similarly, it would be very costly for the manufactures of these products to locate and distribute them to consumers individually. By bringing multitudes of manufacturers and consumers together at a single point, retailers make it possible for products to be sold, and, consequently, business to be done.

• Retailers also provide services that make it less risky and more fun to buy products. They have salespeople on hand who can answer questions, may offer credit, and display products so that consumers know what is available and can see it before buying. In addition, retailers may provide many extra services, from personal shopping to gift wrapping to delivery, that increase the value of products and services to consumers.

• According to the National retail federation, 1 in 5 American workers are employed in the retail industry. The Department of Labor estimates that since 1990, 700,000 new jobs have been created in the retail sector. That's 13% of all new jobs in the United States.
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B.2 Traditional Retailing of India
India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low
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range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions .

Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge.

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B.3Quick facts of Indian Retail
• Indian Retail sector is the fifth largest global retail destination. • India retail market is dominated by the unorganized sector. • The top five companies in retail hold a combined market share of less than 2%. • The Indian retail market has been ranked by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009 as the most attractive emerging market for investment in the retail sector. • Currently the share of retail trade in India's GDP is around 12 per cent, and is estimated to reach 22 per cent by 2010. • According to Government of India estimate the retail sector is likely to grow to a value of Rs. 2,00,000 cr. (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population. • India continues to be among the most attractive countries for global retailers. According to the Department of Industrial Policy and Promotion, approximately US$ 47.43 million was the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand retail trading. More than 80% of the retail sector in the country is concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most preferred location followed closely by Bengaluru in the second position.
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B.4 Industry analysis of Indian Retail sector
Modern retailing has entered India in form of malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats mostly due to the convenience factor i.e. near to their house. This organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and even the labour class is also in the working process timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years.
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Traditionally, the kirana retailing has been one of the easiest ways to generate self-employment, as it required minimum investment in terms of land, labour and capital. These store are not affected by the modern format of retailing. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Reliance has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India.

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B.5 Present Indian Retail scenario
• Unorganized market: Rs. 583,000 cores. • Organized market: Rs.5, 000 cores • 5X growth in organized retailing between 2000-2005 • Over 4,000 new modern Outlets in the last 3 years • Over 5,000,000 sq. ft. of mall space under development • The top 3 modern retailers control over 750,000 sq. ft. of retail space • Over 400,000 shoppers walk through their doors every week • Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world 1.8 million households in India have an annual income of over 45 lakes (US$97,650)
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A. UNORGANISED RETAIL IN INDIA
Retail in India is essentially “unorganized.” 98% of the retail industry is made up of counter-stores, streetmarkes, hole-in-the-wall shops and roadside peddlers. The term “unorganized retail” is better understood when comparing this form of retail to the organized retail that one is familiar with in developed countries. Unorganized retail is characterized by: 1) Family-run stores 2) Lack of best practices when it comes to inventory control and supplychain management 3) Lack of standardization 4) Essentially a sector populated by anyone who has something to sell Unorganized Retail is essentially the next-step above agriculture for those seeking to climb the ladder of affluence in search of a higher income. Combine this with very few barriers to entry in the retail sector andone gets an industry run by people commonly referred to as “Baniyas”(See exhibit), with a lack of education, experience and exposure. This is the major factor responsible for the manner in which the retail industry functions. It is no surprise then that the productivity of this sector is approximately 4% that of the U.S. retail industry.

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A.1 Causes of Low Productivity in Unorganized Retail
1) Labor intensity: Counter-stores in India have a very low output to labor consumption ratio. Low labor costs, failure to employ part-time labor and the absence of multitasking are the mainly responsible for the unusually high consumption of labor. This has driven down the productivity in the sector. 2) Inventory and Supply Chain Management: Unorganized retailers in India rarely track consumer behavior and sales data to improve their inventory management practices. Even among the handful of retailers that employ experience-based improvements in their business, their efforts are largely met with no support from their suppliers. Counter stores and street vendors do not have the infrastructure, exposure or credibility to form lasting relationships with suppliers. As a result retailers usually use different suppliers every time they purchase inventory. This leaves them largely incapable of strategically managing their business. 3) With 700 million agricultural labor18 looking to move into retail, low barriers to entry and the absence of regulation in this sector have made it a largely over-supplied sector. The excess supply of counter-stores and street vendors represents a tremendous decrease in the productivity of this sector.

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4) The absence of any real competition-almost all retailers find a way to make ends meet or change their merchandise till they make ends meet-is also responsible for a form of status quo in the sector where little to no improvements in efficiency, management and by extension productivity are seen. In fact, this sector is so stagnant with respect to operational changes that no improvement in productivity is expected in the near future.

A.2 Low Productivity, but Still Successful: However, low productivity is only an indication of underutilization and/or over allocation of resources. It does not reflect the market share or potential of the unorganized retail sector when it comes to catering to the Indian consumer. The unorganized retail sector competes on the basis of a number of factors that give it a leg up on organized retail. Much of the reason why unorganized retail has dominated the retail market is the unique ways in which it operates when it comes to serving the consumer. Corner-stores have catered to the traditional Indian consumer psyche and are partially responsible for shaping it. For unorganized retail in India the market mantra is “convenience”: 1) Home-Delivery: Corner-stores and street vendors do their best to cater to the local population in the area in which they operate. As a result most
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of them provide home-delivery services, for any and all order sizes, at no extra charge. Shopping is as simple as making a phone call and narrating the shopping list to the store owner. Within minutes, the entire list of groceries with an itemized, hand-written bill reaches your doorstep. The absence of product variety, brand diversity, marketing and exposure had made shopping in stores almost unnecessary for the Indian consumer. Retailers unconstrained by labor costs had no problem in understanding this dynamic and adapting to the needs of the Indian consumer.

2) Credit: Unorganized retailers enjoy a loyal and limited clientele. The personal nature of transactions coupled with small transaction sizes allows unorganized retailers to sell goods on credit often settling bills with clients at the end of the month. 3) Proximity: Unorganized retailers like corner stores are almost always located at a few minutes walking distance from their clients. Street vendors will go door-to-door selling their goods. This has provided a number of advantages to the Indian consumer. He receives his purchase almost immediately thanks to the home-delivery of goods, he never has to move more than half a mile from his house to purchase food, clothing and other goods. Finally, the proximity of unorganized retailers caters to the just-in-time mentality of Indian consumers who prefer to buy goods when needed for immediate use rather than making bulk purchases in advance.

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Unorganised re etail: sec ctor wise e break u up

23% 2% % 3% %

food & & groceries beaut ty care cloth & textile consu umer durables jewellery & watches s home e décor & furnising other rs

60% 4% 4

4% 4%

Fig.1 F Shows unor S rganized re etail sector wise brea up. r ak

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Growth of unorganiz retail sector in I G zed India 2010

Go owth in 2010

30%

14%

3% 10% food & groceri f ies Beauty care 20% Cloth & Textile C e Consumer durable C

40% %

Jewellery J Home décor 

Fig.2 F Shows the growth of unorganiz retail s S f zed sector 2010 0.

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B. ORGANISED RETAILING IN INDIA
In late 1990's the retail sector has witnessed a level of transformation. Retailing is being perceived as a beginner and as an attractive commercial business for organized business i.e. the pure retailer is starting to emerge now. Organized retail business in India is very small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about 11% of GDP. In this total market, the organized retail accounts for only $8 billion of total revenue. According to A T Kearney, the organized retailing is expected to be more than $23 billion revenue by 2010. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion 2010-11. Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, kolkata, Banglore and Kanpur. After Dubai, Singapore and Hong Kong, In India Delhi will be the next big retail destination, According to Confederation of Indian Industries whose findings have shown that Delhi has the good resources and good conditions for the retail sector. Out of the total earnings of the Government of Delhi Rs 11,000 crore, Rs 6,500 crore is achieved from the retail sector. .

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Organise O ed retailing:sect tor wise berak u up

2% 5% 8% 3%

1% 22%

Foot wear 22% Clothing 12 2% Book & ma agazines 9% Jewellery & & assessory 8% % Durable 5% %

9%

12 2%

Home furn nishing 3% Medical se ervices 2% Food & gro ocery 1% Health & b beauty 1%

Fig.3 F Shows orga S anized retail sector w break u wise up.

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Sect tor wise CAGR g growth: o organised  e retailing
80.00% 8 70.00% 7 60.00% 6 50.00% 5 40.00% 4 30.00% 3 20.00% 2 10.00% 1 0.00% Sector wise CAGR growth:  etailing organised re

Fig.4 F Shows secto wise CA S or AGR grow wth.

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Growth of Organize retail in India 2010 G ed n

Growth in 2010

6.40% 9.90% 2.90% 3%

11.50% Foo otwear Clot thing Boo ok & Magazine e 38.10% Jew wellary & assessary Dur rable Hom me Furnishing

Fig.5 F Shows the growth of organized retail sect 2010 S g d tor .

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C.AUTHORISED VS UNAUTHORISED RETAILING
Many consumers are confused about the terms "authorized" and "unauthorized" retailers. Partly due to the efforts of manufacturers, who discourage unauthorized retailers, consumers may be reluctant to purchase legitimate products from an unauthorized retailer who is offering a genuine product. What is an "authorized" retailer? An authorized retailer has a contractual relationship with a big manufacturer. This benefits both the retailer and the manufacturer. Big corporations like to have as much oversight over their marketing as possible, because more control means bigger profits. They like to operate vertically-that is, with direct control over everything from research to manufacturing to retail sales. This makes it easier to keep retail prices high and generate bigger profits. Big companies want customers to buy from their authorized dealers because they make a bigger profit. However, many retailers operate outside the corporate system. Why? To offer lower prices. The unauthorized retailer can often purchase and then re-sell products at a lower price than the authorized retailer. Generally, the unauthorized retailer can do this by obtaining genuine products overseas and bringing them back to the U.S. for sale.
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Who does this? Surprisingly, not just Internet or regional operations; even some big-box names like Costco, Amazon, and Target have engaged in unauthorized retailing. Is this legal? Yes! In the case of Quality King Distributors v. L'Anza Research International, No. 96-1470, the Supreme Court held unanimously that an American company cannot block the domestic sale of genuine products that the company had originally sold overseas. The Court ruled that once a product had been distributed in an authorized manner (the "first sale," according to Federal copyright law), the copyright owner had no further control over the product's fate. The Supreme Court's decision overturned a lower court case establishing copyright law as a defense against unauthorized retailers. In 1996 the United States Court of Appeals for the Ninth Circuit, in San Francisco, had ruled that a distributor of genuine beauty products had infringed the copyright on a brand of hair products manufactured in the United States for sale at a discount overseas. In the U.S. market, the products were intended for exclusive sale in salons. The Supreme Court ruling supports free trade that benefits American consumers. The products in question are authentic American-made goods, not counterfeit or pirated. Trademark law was not at issue in this case because the challenged products were legitimate products authorized by
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the manufacturer for sale. So big corporations sought to use copyright law as a source of protection. How does the consumer benefit? Simple-lower prices! Because unauthorized retailers are free to purchase genuine products from a variety of sources-not just from the manufacturers-they can offer lower prices than other stores. So if you know you are buying a genuine product, you may be able to get a great deal from an unauthorized retailer.

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D. DEVELOPMENT OF RETAIL
Peddlers and Producers The Retail Trade is rooted in two groups, the peddlers and producers. Peddlers tended to be opportunistic in their choice of stock and customer. They would purchase any goods that they thought they could sell for a profit. Producers were interested in selling goods that they had produced. General Store: This division continues to this day with some shops specializing in specific areas, reflecting their origins as outlets for producers (such as Pacific Concord of Hong Kong), and others providing a broad mix, known as General Store (such as Casey's in the Midwest of the U.S.A.).Although specialist shops are still with us, over time, the general store has increasingly taken on specialist products. Customers have found this to be more convenient than having to visit many shops - thus the term "Convenience Store" has also been applied to these shops. As the popularity of general stores has grown, so has their size. This combined with the advent of Self-Service has lead to the Supermarket, or Superstore. Early Markets: Over time, producers would have seen value in deliberately overproducing in order to profit from selling these goods. Merchants would also have begun to appear. They would travel from village to village,
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purchasing these goods and selling them for a profit. Over time, both producers and merchants, would regularly take their goods to one selling place in the centre of the community. Thus, regular markets appeared. The First Shop : Eventually, markets would become permanent fixtures i.e. shops. These shops along with the logistics required to get the goods to them were, the start of the Retail Trade. The Birth of Distance Retailing: Defined as sales of goods between two distant parties where the deliverer has no direct interest in the transaction, the earliest instances of distance retailing probably coincided with the first regular delivery or postal services. Such services would have started in earnest once man had learned how to ride a camel, horse etc. When individuals or groups left their community and settled elsewhere, some missed foodstuffs and other goods that were only available in their birthplace. They arranged for some of these goods to be sent to them. Others in their newly adopted community enjoyed these goods and demand grew. Similarly, new settlers discovered goods in their new surroundings that they dispatched back to their birthplace, and once again, demand grew. This soon turned into a regular trade. Although such trading routes expanded mainly through the growth of traveling salesmen and then wholesalers, there were still instances where individuals purchased goods at long distance for their own use. A second reason that distance selling increased was through war. As armies marched through territories, they laid down communication lines stretching from their home base to the front. As well as garnering

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goods from whichever locality they found themselves in, they would have also taken advantage of the lines of communication to order goods from home. It is likely that, as markets became more permanent fixtures they evolved into shops. Although advantageous in many respects, this removed the mobility that a peddler or traveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers and create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail chain would have started. Its thought that this process would have started in china over 2200 years ago with a chain of shops owned by a trader called Lo Kass. The First Self-Service Store: This all changed in 1915 when Albert Gerrard opened the Groceteria in Los Angeles, the first documented self-service store. This was soon followed a year later by the Piggly Wiggly® self-service store, founded by Clarence Saunders in Tennessee in the U.S. Growth: This new type of shopping was more efficient and many customers preferred it. Although personal service stores remain to this day, this new concept started a rapid growth of self-service stores in the United States.

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Other countries were slow to take up the idea, but there has been a steady rise in the global amount of self-service stores ever since .Efficiency These entrepreneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. The groceries were stacked on shelves allowing customers to walk around and browse, collecting their shopping in a basket that was supplied. The shopkeeper would only need to tot up the final bill at the end of the process and transfer the goods from the basket to the customer and receive payment. From Family Business to Formal Structure: Although retail chains would have been mostly run by families, as some chains grew, they would have needed to employ people from outside of their family. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Another, even more definite limiting factor was the distance the furthest shop would have been from the original shop. The greater the distance, the more time and effort would have been needed to effectively manage outpost shops and to service them with goods. There was, therefore, a natural barrier to expansion. That was the case until transport and communications became faster and more reliable. When this happened towards the end of the 19th century, chains became much bigger and more widespread. Many of these businesses became more structured and formalized, leading to the retail chain that we see today.

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It is likely that, as markets became more permanent fixtures they evolved into shops. Although advantageous in many respects, this removed the mobility that a peddler or traveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers and create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail chain would have started. Its thought that this process would have started in china over 2200 years ago with a chain of shops owned by a trader called Lo Kass.

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E. CLASSIFICATION OF INDIAN RETAIL SECTOR
a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector. Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector .In comparison, super markets account for a small proportion of food sales in India. However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience.

b) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market. However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market , their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products . c) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap
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and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbanization, and changing patterns time. d) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. e) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign 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. f) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of

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F. INVESTMENT POLICY AND INITIATIVES
F.1.FDI Policy in the Retail Sector
India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in single brand retail with prior Government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cashand-carry wholesale mode. The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Government is considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment. Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The Government has to walk a tightrope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in single-brand product retailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel ,accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi (luxury products), Damro (knockdown furniture), Argenterie Greggio (silverware, cutlery, traditional

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home accessories and gift items) and Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly. F.2 Business models for entry in Indian markets Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players from setting up shops in India. In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run retail operations in India, Woolworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support and strategic sourcing facilities from its global network.

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G. MAJOR TYPES OF RETAIL STORES
It is in retailing that very drastic changes have occurred during the last two decades. Some institutions have disappeared whereas newer ones have been added. This process of deletion / addition still continues in newer forms. There are large scale retailing shops together with very small units, both working simultaneously. They have from hawkers and peddlers, who have no permanent place, to well organized, settled retail shops like chain stores, departmental stores, etc. The institutions carrying on the retail business can be classified as under Major Types of Retail Stores

A) Instore-Retaling 1. Department Stores 2. Grocery Stores 3. Speciality Stores 4. Box stores 5.Hyper Market 6.Super Market 7.Shopping Mall C) Franchising

B) Non-Store Retailing 1. Direct Selling 2. Telemarketing 3. Online Retailing 4. Automatic vendirs 5. Direct Marketing.

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G.1 A. Instore retailing Department Stores Department stores consist of separate sections, known as departments, such as clothing, sporting goods, automotive supplies, health and beauty products and electronics equipment. Some department stores may also sell food products. Some department stores feature discounted merchandise, while others sell more expensive items geared toward the upscale shopper.

     

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Grocery Stores

Grocery stores sell prepackaged dry food products as well as perishable items like produce, dairy and meat products. Grocery stores also typically sell non-food items such as stationery supplies, cookware, health and beauty products and greeting cards. Larger grocery stores may include features like fast-food restaurants and flower shops, as well as modern conveniences like Internet cafes.

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Specialty Stores

Specialty stores sell specific types of merchandise, such as jewelry, electronics equipment or toys. The specialty store may be further divided into different categories within the specialty. For example, toy stores may have separate departments for board games, video games, dolls and model cars. Specialty stores may be small, independently-owned operations or larger stores that are part of a retail chain.

   

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Box Stores

Box stores, also known as warehouse stores, sell merchandise packaged in larger quantities that feature lower unit costs to the consumer. They appeal to shoppers who wish to buy frequently-used items in bulk to save money. Because they offer larger package sizes, box stores are usually very large and sparsely decorated, giving the look and feel of a warehouse.

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Hypermarket
In commerce, a hypermarket (from the French hypermarché) is a store which combines a supermarket and a department store. The result is a gigantic retail facility which carries an enormous range of products under one roof, including full lines of fresh groceries and apparel. When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of their routine weekly shopping needs in one trip to the hypermarket.

 

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Supermarket:
Supermarkets usually offer products at low prices by reducing margins. To maintain a profit, supermarkets attempt to make up for the low margins with a high volume of sales. Customers usually shop by putting their products into trolleys (shopping carts) or baskets (self-service) and pay for the products at the check-out. At present, many supermarket chains are trying to reduce labour costs (and thus margins) further by shifting to self-service check-out machines, where a group of four or five machines is supervised by a single assistant.

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Shopping mall:
Collection of independent retail stores, services, and parking areas constructed and maintained by a management firm as a unit. It is a 20thcentury adaptation of the historical marketplace. A shopping mall, shopping centre, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area – a modern, indoor version of the traditional marketplace.

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G.2 B.Non-Store Retailing A large majority - about - 80% - of retail transactions are made in stores. However, a growing volume of sales is taking place away from stores. Retailing activities resulting in transactions that occur away from a physical store are called non-store retailing. It is estimated that non-store sales account for almost 20% of total retail trade. Following are the five types of non store retailing: direct selling, telemarketing, online retailing, automatic vending and direct marketing. Each type may be used not just by retailers but by other types of organisations as well.

Direct Selling In the context of retailing, direct selling is defined as personal contact between a sales person and a consumer away from a retail store. This type of retailing has also been called in home selling. Annual volume of direct selling in India is growing fast from the beginning of the 21st century. The two kinds of direct selling are door to door and party plan. There are many well known direct-selling companies including Amway, Creative memories and Excel communications. Diverse products are marketed through direct selling. This channel is particularly well suited for products that require extensive demonstration.

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Telemarketing Sometimes called telephone selling, telemarketing refers to a sales person initiating contact with a shopper and closing a sale over the telephone. Telemarketing many entail cold canvassing from the phone directory. Many products that can be bought without being seen are sold over the telephone. Examples are pest control devices, magazine subscriptions, credit cards and cub memberships. Telemarketing is not problem free. Often encountering hostile people on the other end of the line and experiencing many more rejections than closed sales, few telephone sales representatives last very long in the job. Further some telemarketers rely on questionable or unethical practices. For instance firms may place calls at almost any hour of the day or night. This tactic is criticized as violating consumers' right to privacy. To prevent this, some states have enacted rules to constrain telemarketers' activities. Despite these problems, telemarketing sales have increased in recent years. Fundamentally, some people appreciate the convenience of making a purchase by phone. Costs have been reduced by computers that automatically dial telephone number, even deliver a taped message and record information the buyer gives to complete the sale. The future of telemarketing is sure to be affected by the degree to which the problems above can be addressed and by the surge of online retailing.

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Online Retailing: When a firm uses its website to offer products for sale and then individuals or organizations use their computers to make purchases from this company, the parties have engaged in electronic transactions (also called on line selling or internet marketing). Many electronic transactions involve two businesses which focuses on sales by firms to ultimate consumers. Thus online retailing is one which consists of electronic transactions in which the purchaser is an ultimate consumer. Online retailing is being carried out only by a rapidly increasing number of new firms, such as Busy.com, Pets Mart and CD Now.com. Some websites feature broad assortments, especially those launched by general merchandise retailers such as Way-mart and Target. Some Internet only firms, notably Amazon.com are using various methods to broaden their offerings.

Automatic vending The sale of products through a machine with no personal contact between buyer and seller is called automatic vending. The appeal of automatic vending is convenient purchase. Products sold by automatic vending are usually well-known presold brands with a high rate of turnover. The large majority of automatic vending sales comes from the "4 c's" : cold drinks, coffee, candy and cigarettes. Vending machines can expand a firm's market by reaching customers where and when they cannot come to a store. Thus vending equipment is
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found almost everywhere, particularly in schools, work places and public facilities. Automatic vending has high operating costs because of the need to replenish inventories frequently. The machines also require maintenance and repairs. The outlook for automatic vending is uncertain. The difficulties mentioned above may hinder future growth. Further, occasional vendingrelated scams may scare some entrepreneurs away from this business. Direct Marketing There is no consumers on the exact nature of direct marketing. In effect, it comprises all types of non-store retailing other than direct selling, telemarketing, automatic vending and online retailing. In the context of retailing, it has been defined as direct marketing as using print or broadcast advertising to contact consumers who in turn, buy products without visiting a retail store. Direct marketers contact consumers through one or more of the following media: radio, TV, newspapers, magazines, catalogs and mailing (direct mail). Consumer order by telephone or mail. Direct marketers can be classified as either general - merchandise firms, which offer a variety of product lines, or specialty firms which carry - only one or two lines such as books or fresh fruit.

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Direct marketing has drawbacks. Consumers must place orders without seeing or touching the actual merchandise. To off-set this, direct marketers must offer liberal return policies. Furthermore, catalogs and to some extent, direct mail pieces are costly and must be prepared long before they are issued. Price changes and new products can be announced only through supplementary catalogs or brochures. Direct marketing's future is difficult to forecast, given the rise of the Internet. The issue is whether or not firms relying on direct marketing can achieve and sustain a differential advantage in a growing competition with online enterprises.

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G.3 C.Franchising A franchising operation is legal contractual relationship between a franchiser (the company offering the franchise) and the franchisee (the individual who will own the business). The terms and conditions of the contract vary widely but usually the franchiser offers to maintain a continuing interest in the business of the franchisee in such areas as the site selection, location, management, training, financing, marketing, record-keeping and promotion. He also offers the use of a trade name, store motif standardized operating procedure and a prescribed territory. In return the franchisee agrees to operate under conditions set forth by the franchiser. For the manufacturers, the franchising is beneficial in these directions: i. it allows them to conserve capital. ii. the distribution system is established in the shortest possible time, iii. Marketing costs are lowest and iv. Expenses of fixed overhead such as administrative expenses of the personnel of the company owned units are cut down substantially.

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H.COMPETITIVE ADVANTAGE WITH SPECIAL REFERENCE TO PHYSICAL FACILITIES
Another competitive advantage of retailers will be how they create physical facilities which represent the distribution element of a retailer's marketing mix. Some firms engage in non-store retailing by selling on hire or through catalogs or door to door, for example-but many more firms rely on retail stores. Firms that operate retail stores must consider four aspects of physical facilities.

LOCATION It is frequently stated that there are three keys to success in retailing: Location! Although overstated, this axiom does suggest the importance that retailers attach to location. Thus a stores site should be the first decision made about facilities. Considerations such as surrounding population, traffic and cost determine where a store should be located. SIZE This factor means the total square footage of the physical store, not the magnitude of the firm operating the store. These are much different factors. A firm may be quite large with respect to total sales, but each of its outlets may be only several thousand square feet in size.

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DESIGN This factor refers to a stores appearance, both interior and exterior over its competitor.

LAYOUT The amount of space allocated to various product lines, specific locations of products and a floor plan of display tables and racks comprise the store's layout. As would be expected, the location, size, design and layout of retail stores are based on where consumers live and how they like to go about their shopping. Consequently, the bulk of retail sales occur in urban, rather than rural, areas. And suburban shopping areas have become more and more popular, where as many down town areas have declined.

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I. KEY PLAYERS IN INDIAN RETAIL SECTOR

1.AV Birla Group has a strong presence in apparel retail and owns renowned brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of Rs 8000 – 9000 cr. till 2010

Different business areas of AV group cement The Group's cement business was earlier under both Grasim Industries and UltraTech Cement. The two entities are now merged into Ultra Tech cement to form India's largest cement company. UltraTech cement was originally the cement business of L&T which was acquired by Aditya Birla Group in 2004.

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Carbon black The Group is the fourth largest manufacturer of Carbon Black worldwide. It operates out of facilities in Egypt, Thailand, India and China. Textile business The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber industry. It operates out of India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament yarn businesses and spinning mills at several locations all over India and South East Asia. The group has pulp and plantation interests in Canada and has recently invested in plantations in Laos. The Aditya Birla group is also a major player in the branded garments market in India. Telecom Services Idea Cellular is now owned by Aditya Birla Group.Idea Cellular started off as a joint venture with the group, AT&T and the Tata Group. However the stakes of the remaining partners was eventually acquired by the group. After an Initial Public Offering on the Indian Stock Markets, Idea Cellular now accounts for a third of the group's market capitalization. The company is headquartered in Mumbai and has operations in all the 22 telecom circles in India and is the 3rd largest GSM player in the country.

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Other Businesses Apart from the above businesses, the Group is a major player in industry sectors like Insulators, Fertilizers, BPO (Aditya Birla Minacs), Insurance (Birla Sun Life Insurance), IT, Chemicals, Mining, Sponge Iron, Financial Services (jointly with Sunlife and more recently, Retail. Aditya Birla acquired Business Processing Outsource Minacs in 2007.

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2.Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book and music retail chain, consumer electronic chain etc. Westside, the lifestyle retail chain registered a turnover of Rs 3.58 mn in 2006 areas of business.

Trent is a retail operations company that owns and manages a number of retail chains in India. Established in 1998, Trent runs lifestyle chain Westside, one of India’s largest and fastest growing chain of lifestyle retail stores, Star Bazaar, a hypermarket chain, Landmark, a books and music chain, and Fashion Yatra, a complete family fashion store.

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Areas of business

Westside: With a number of stores across India, this chain offers clothes, footwear and accessories for men, women and children, along with furnishings, artifacts and a range of home accessories. Star Bazaar: This hypermarket chain offers a wide choice of products, including staple foods, beverages, health and beauty products, vegetables, fruits, dairy and non-vegetarian products. Landmark: A leader in the books and music category, this chain has a range of over 100,000 titles in books and music, and also stocks movies, toys, gift items and stationery. Fashion Yatra: The stores bring quality fashion at low prices to value conscious customers in towns across India.

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3.Landmark Group invested Rs. 300 cores to expand Max chain, and Rs 100 cores on Citymax 3 star hotel chain. Lifestyle International is their international brand business.

The Landmark Group provides value-driven product range for the entire family through a diverse portfolio of core retail brands:

Landmark Brands

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1. K Raheja Corp Group has a turnover of Rs 6.75 billion which is expected to cross US$100 million mark by 2010. Segments include books, music and gifts, apparel, entertainment etc. K Raheja Corp are the pioneers in organized retail by taking a first giant step to successfully establish a retail store know as "Shopper's Stop" The group is expanding its retail chains across the country on the back of the vast experience it gathered from feedbacks and keen observance of people's taste keeping in tune with its culture, customs, traditions and income. . Crossword, Inorbit Mall & Hyper City have set new bench marks on the basis of information and adaptation of worldwide changes, innovations and new techniques in retailing practices.

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2.Reliance has more than 300 Reliance Fresh stores; they have multiple formats and their sale is expected to be Rs 90,000 crores ($20 billion) by 2009-10.

Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organisation that caters to millions of customers, thousands of farmers and vendors. Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned investment of Rs 30,000 crore over the next five years that's the retail vision of Mukesh Ambani and his RIL retail team. RIL's retail venture seems all set to achieve the status of being the flag-bearer of India Retail Inc, and that too in record time!

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Subsidiaries of Reliance Retail Limited Reliance Fresh Limited Retail Concepts & Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited RESQ Limited Reliance digital Retail Limited Reliance Financial Distribution and Advisory Services Limited Reliance Hypermart Limited Reliance Retail Finance Limited Reliance Retail Travel & Forex Services Limited Reliance Trends Limited Reliance Wellness Limited Reliance Brands Limited Reliance Footprint Limited Reliance F&B Services Limited Strategic Manpower Solutions Limited Reliance Gems and Jewels Limited
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Reliance Integrated Agri Solutions Limited Reliance Universal Ventures Limited Reliance Lifestyle Holdings Limited Reliance Autozone Limite Delight Proteins Limited Reliance Supply Chain Solutions Limited Reliance Leisures Limited Reliance Home Store Limited Reliance Agri Products Distribution Limited Reliance Food Processing Solutions Limited Reliance Trade Services Centre Limited Reliance Digital Media Limited Reliance Personal Electronics Limited Daiwik Trading Private Limited Reliance Home Products Limite Reliance Style Fashion India Private Limited

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5.Future group
Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-section of Indian consumers.

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India’s largest retailer, Pantaloon Retail India Ltd, is gearing up to more than double the number of its Food Bazaar and Big Bazaar stores, the expansion contrasting with its simplification drive. Three years ago, the Future group, the parent company, set out on a journey to redefine itself. That coincided with the economic slowdown, which allowed the group to look inward and simplify the complexities of running a high-growth retail business. The process began with the group’s fashion and apparel concept Pantaloons—a Rs1,000 crore business. It cut its production offerings and assortments by 60-70% and consolidated its supply chain from 18 delivery centers to four for its fashion business. Big Bazaar is a chain of hypermarket in India, which caters to every family’s needs and requirements. This retail store is a subsidiary of Future group, Pantaloons Retail India Ltd. At Big Bazaar, you will definitely get the best products at the best prices that’s what we guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience.

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5.RPG spencer:Its largest chain of Spencers offers a complete array
of products and durables. It is operating through 80 stores spread in 20 cities, and is still growing rapidly. Every month nearly 2.6 million people walk in its stores. The stores are located in Bangalore, Mumbai, Delhi, Chennai, Trivandrum, Hyderabad, Faridabad, Vizag, Aurangabad, Pune, Ghaziabad, Cochin, and many more.

Spencer's has retail footage of approximately 1 million square feet and over 220 Spencer's stores in 35 cities. The company operates through the following formats: • The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They offer everything under one roof. The merchandise ranges from fruits & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion accessories, consumer electronics & electrical products, home decor and needs, office stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUs across 35,000 items.

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2. Vishal Retail Group:
The jewel in Vishal Group’s crown is its flagship company Vishal Retail Ltd. a company engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of 172 fully integrated stores in spread over the area of more than 24,00,000 sq. ft. in around 110 cities across India in 24 states. The turnover of the company for 09-10 was 1105 Cr . Maintaining the highest standards in quality and design, these stores have come to offer the finest fashion garments at down-to-earth price structure. A fact that is better visible in the constant flow of shoppers all through the year. Under the title of Vishal Mega Mart these stores have emerged as the regular haunts for the bargain-hunters and fashion enthusiasts alike.

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7.Other retailers:
• •

Next retail India Ltd (Consumer Electronics) Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers PGC Retail -T-Mart India, Switcher , Respect India , Grand India Bazaar ,etc., REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily & Fresh The Tata Group-Formats: Westside, Star India Bazaar,

• •

Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.

Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgiri’s-Formats: Nilgiris’ supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount chain. Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine stores Kapas- Cotton garment outlets
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J. FUTURE TRENDS
• Lifestyle International, a division of Landmark Group, plans to have more than 50 stores across India by 2012–13.

• Shoppers Stop has plans to invest Rs250 crore to open 15 new supermarkets in the coming three years.

• Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to add up to existing 2.4 million sq ft retail space. PRIL intends to set up 155 Big Bazaar stores by 2014, raising its total network to 275 stores.

• Timex India will open another 52 stores by March 2011 at an investment of US$ 1.3 million taking its total store count to 120. In the first six months of the current fiscal ending September 30, 2009, the company has recorded a net profit of US$ 1.2 million.

• Australia's Retail Food Group is planning to enter the Indian market in 2010. It has plans to clock US$ 87 million revenue in five years.

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In 20 years they expect the India operations to be larger than the Australia operations.

• Carrefour, the world’s second-largest retailer, has opened its first cash-and-carry store in India in New Delhi. Germany-based wholesale company Metro Cash & Carry (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking to its number to six in the country.

• Electronic retail chain major, Next Retail India, plans to open 400 showrooms across the country during January-March 2011 increasing the total number of retail stores to 1,000 by the end of the fiscal year 2010-11.

• Jewellery retail store chain Tanishq plans to open 15 new retail stores in various parts of the country in the 2011-12 fiscal.

• V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13 stores in 2011, in Tier-II and Tier-III cities.

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• Reliance Retail, the wholly owned subsidiary of Mukesh Ambani's Reliance Industries, is set to open 150 stores by the end of March 2011 and double the number of stores across the country in all formats within five years.

• Future Value Retail, a Future Group venture, will take its hypermarket chain Big Bazaar to smaller cities of Andhra Pradesh, with an investment of around US$ 1.54 million to US$ 4.41 million depending on the size and format.

• RPG-owned Spencer's Retail plans to set up 15-20 new stores in the country in 2011-12.

• Spar Hypermarkets, the global food retailing chain of the Dubaibased Landmark Group, expects to start funding its India expansion beyond 2013 out of its local cash flow in the country. So far, the Landmark Group has invested US$ 51.31 million in setting up five hypermarkets and plans to pump in another US$ 51.31 million into the next phase of expansion.

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• Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 million for opening 50 premium watch outlets Helios in next five years to attain a sales target of US$ 87.31 million.

• British high street retailer, Marks and Spencer (M&S) plans to significantly increase its retail presence in India, targeting 50 stores in the next three years.

• Spain's Inditex, Europe's largest clothing retailer opened the first store of its flagship Zara brand in India in June 2010. It further plans to open a total of five Zara outlets in India.

• Bharti Retail, owner of Easy Day store—supermarkets and hypermarkets—plans to invest about US$ 2.5 billion over the next five years to add about 10 million sq ft of retail space in the country by then, according to a company spokesperson

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14. EXPECTED GROWTH OF RETAIL SALES
• The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. • Mass grocery retail (MGR) sales in India are expected to undergo enormous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 145 per cent to reach US$ 21.35 billion by 2014. • BMI forecasts consumer electronic sales at US$ 29.09 billion in 2011, with over-the-counter (OTC) pharmaceutical sales at US$ 2.69 billion. The former sub-sector is expected to show growth of 55.6 per cent between 2011 and 2014, reaching US$ 45.27 billion, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase slightly more, by 56.5 per cent throughout the forecast period, to reach US$ 4.21 billion.

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China and India are predicted to account for more than 91 per cent of regional retail sales in 2011, and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2011-2014 is forecast by BMI at 48.1 per cent, an annual average 15 per cent.

According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India', organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015.

Furthermore, according to a report titled 'India Organized Retail Market 2010', published by Knight Frank India in May 2010 during 2010-12, around 55 million square feet (sq ft) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and

Pune. Besides, between 2010 and 2012, the organized retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft.

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Driven by the growth of organized retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025, according to a report by KPMG.

India's retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organized retail, meaning that the opportunity in India remains immense. Retail should continue to grow rapidly—up to US$ 535 billion in 2013, with 10 per cent coming from organized retail, reflecting a fast-growing middle class, demanding higher quality shopping environments and stronger brands, according to the report ‘Expanding Opportunities for Global Retailers’, released by A T Kearney.

Foreign direct investment (FDI) inflows between April 2000 and October 2010, in single-brand retail trading, stood at US$ 197.04 million, according to the Department of Industrial Policy and Promotion (DIPP).

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L. GROWTH OF INDIAN RETAIL 2010
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 810% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market.

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M. OPPERTUNITIES AND CHALLENGES
M.1. Investment Opportunities in the Retail Sector
AT Kearney’s study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base in India, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour, Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure. A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players. The retail industry in India, according to experts, will be a major employment generator in the future. Currently, the market share of organised modern retail is just over 4 per cent of the total retail industry, thereby leaving a huge untapped opportunity.

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M.2. The Potential of the Indian Retail Sector
A.The high growth projected in domestic retail demand will be fuelled by: • ¾ The migration of population to higher income segments with increasing per capita incomes • ¾ An increase in urbanization • ¾ Changing consumer attitudes especially the increasing use of credit cards • ¾ The growth of the population in the 20 to 49 years age band B.There is retail opportunity in most product categories and for all types of formats • ¾ Food and Grocery: The largest category; largely unorganised today • ¾ Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years • ¾ Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years C. Opportunities for investment in supply chain infrastructure: Cold chain and logistics India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies ¾ Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India

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The sector is expected to see an investment of over $30 billion within the next 4-5 years, catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak estimates. Of the total organized retail market of Rs 550 billion, the business of fashion accounts for Rs 300.80 billion, which translates into nearly 55 per cent of the organized retail segment in the country. Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the country's retail market of Rs 12,000 billion. Commanding such a large chunk of the organized retail business in India, fashion retailing has indeed been responsible for single-handedly driving the business of retail in India.

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M.3.Challenges of Retailing in India
Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing needs to cross the following hurdles: • Automatic approval is not allowed for foreign investment in retail. • Regulations restricting real estate purchases, and cumbersome local laws. • Taxation, which favors small retail businesses. • Absence of developed supply chain and integrated IT management. • Lack of trained work force. • Low skill level for retailing management. • Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins. 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, managing, and coping up with new challenges in an ever-changing marketplace. Indian retailers must use innovative retail ormats to enhance shopping experience, and try to understand the regional variations in consumer attitudes to retailing. Retail marketing efforts have to improve in the country - advertising, promotions, and campaigns to attract customers; building loyalty by identifying regular shoppers and offering benefits to them; efficiently managing high-value customers; and monitoring customer needs constantly, are some of the aspects which Indian retailers need to focus upon on a more pro-active basis. Despite the presence of the basic ingredients required for growth of the retail industry in India, it still faces substantial hurdles that will retard and
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inhibit its growth in the future. One of the key impediments is the lack of FDI status. This has largely limited capital investments in supply chain infrastructure, which is a key for development and growth of food retailing and has also constrained access to world-class retail practices. Multiplicity and complexity of taxes, lack of proper infrastructure and relatively high cost of real estate are the other impediments to the growth of retailing. While the industry and the government are trying to remove many of these hurdles, some of the roadblocks will remain and will continue to affect the smooth growth of this industry. Fitch believes that while the market share of organized retail will grow and become significant in the next decade, this growth would, however, not be at the same rapid pace as in other emerging markets. Organized retailing in India is gaining wider acceptance. The development of the organized retail sector, during the last decade, has begun to change the face of retailing, especially, in the major metros of the country. Experiences in the developed and developing countries prove that performance of organized retail is strongly linked to the performance of the economy as a whole. This is mainly on account of the reach and penetration of this business and its scientific approach in dealing with customers and their needs. In spite of the positive prospects of this industry, Indian retailing faces some major hurdles (see Table 1), which have stymied its growth. Early signs of organized retail were visible even in the 1970s when Nilgiris (food), Viveks (consumer durables) and Nallis (sarees) started their operations. However, as a result of the roadblocks , the industry remained in a rudimentary stage. While these retailers gave the necessary ambience to customers, little effort was made to introduce world-class
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customer care practices and improve operating efficiencies. Moreover, most of these modern developments were restricted to south India, which is still regarded as a ‘Mecca of Indian Retail’.

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A. A COM MPERAT TIVE AN NALYS OF G SIS GROWT OF TH BIG B BAZ ZAAR A AND RE ELIANC MAR OF 2010 CE RT
1 Footwear r

footwe ear

8%

8% 8 Big Bazaar r Reliance M Mart

Fig.6.a F In 2010 bot Big baza and Reliance mar both grow their f n th aar rt wth footwear se egment up 8%. pto

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2. Clothing g

clothin ng

9.90 0%

Bigbazaar r 37% Reliance m mart

Fig.6.b F In 2010 Big bazaar gr n g rowth their clothing u r upto 9.90% and Relia % ance Mart upto 37% which is gre growth regarding to Big baz u w eat h g zaar.

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3.Book

Book k

3% 4% %

Big Bazaar r Reliance m mart

Fig.6.c F In 2010 Big bazaar se n g elling grow of book upto 3% a Reliance mart wth k and n upto 4%. u

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4.Jewellary 4 y

jewelle ery
6%

Big bazaar r Reliance m mart 40 0%

Fig.6.d F In 2010 jew n wellery growth upto 6 in Big B 6% Bazaar and 40% upto Reliance d o mart. m

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5. 5 Durable

Durabl le

30% 40% %

Big bazaar r Reliance m mart

Fig.6.e F In Durable good in 20 Big ba n 010 azaar growt upto 30% and Reliance mart th % i t upto 40%. u

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6.Home fur 6 rnishing

Ho ome furn nising

6% %

6% 6 Big bazzar r Reliance m mart

Fig.6.f F In 2010 Home Furnish n hing upto 6 in Big Bazaar an Reliance upto 6% 6% nd e which is eq in this year. w qual Competition between higher gro C n owth of Re eliance Mart and Big Bazaar

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Result of comparison

Segment Footwear Clothing Book Jewellery Durable Home furnishing

Big Bazaar 8% 9.9% 3% 6% 30% 6%

Reliance Mart 8% 37% 4% 40% 20% 6%

Growth increase 0% 27.1% 1% 34% 10% 0%

Comparative growth Equal Reliance Mart Reliance Mart Reliance Mart Big Bazaar Equal

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Graphical represent G tation of gr rowth
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% % 30% 20% 8% % 8% 9.90% 3% 4% 6% 6% 6%

37.00%

Big B Bazaar Relia ance Mart

Fig.7 , show graphical represen F ws ntation of g growth

Compariso of grow increas of differ C on wth se rent sector r

40% 35% 30% 25% 20% 15% 10% 10% 5% 0% 0% 0% wear Footw Clothin ng Book Jewellery Durable Home  furnishing 0% 0% 1% Big Bazaar Reliance mart t 27% 34%

0%

0%

0% 0 0%

Fig.8, show compari F ws ison of growth increa ase

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B. RESEARCH METHODOLOGY
Research is a systematic and objective investigation of a subject or a problem in order to discover relevant information or principles. Research methodology is basically the method of how to collect data. The information regarding our research are as follows: 2.1 Objective of our research: We wanted to understand as well as compare the “customer relationship management” followed by the Reliance Mart and Big Bazaar. It is expletory study 2.2 Type of research: Our research was empirical kind of research since we were dealing with the behavioral or qualitative aspect of customers and not the quantitative data’s. Here we were not supported with any external data nor were adopting any secondary data to do our research. 2.3 Data collection and analysis: collection, and analysis of the information gathered by Interaction with employees and customers and also by observing activities of the employees. For better understanding of CRM in Big Bazaar and Reliance Mart we also had prepared a questionnaire for both customers and managers. 2.4 Sampling procedure and sample size: persons selected by us were randomly selected and were from different age group, sex and educational background .this diversification was done to measure the

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different

choice

and

preferences

prevailing

in

customers

demographically different.

B.1CRM policy of Reliance Mart Meaning of Customer Relationship Management (CRM): CRM is a comprehensive strategy & process of acquiring & retaining customers to create superior value for the company as well as the customers. It consists of the processes a company uses to track and organize its contacts with its current and prospective customers. To support these processes, various CRM Software like SAP, ORACLE Sales force.com etc. are used. These software record and store information about customers, various customer interactions, their problems etc which can be accessed by employees in different departments of the company. These information are used by the organization to make future plans that can satisfy the customer on a better way and retaining them for a longer period. Goal of CRM: The goal of CRM is to provide improved services to the customers, and to use customer contact information for targeted marketing. CRM policy of reliance mart can be divided into four major parts, namely; 1) Customer loyalty 2) Customer retention

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3) Customer communication 4) Customer gratification

There exists a blanket customer relationship programmed called the reliance one membership programmed for the purpose of maintaining customer loyalty. The membership programmed is a very simple one where a willing customer is required to fill a form giving personal information and he gets a temporary card which will be made permanent after six months. On each purchase of Rs. 100 the customer gets one redeemable point on the production of card at billing counter. The collected points can be redeemed in form of discounts on future purchases on demand of the customer. The customers also get the opportunity of availing four different kinds of insurance on the payment of a nominal fee. For example a customer can get an accidental death insurance of Rs. six lakes on the payment of Rs. 400 only. Other forms of insurances are disability, hospitalization and home insurances. The members of reliance one get the opportunity of taking part and winning prizes by the way of lucky draws on regular intervals. Customer retention policy implementation is at the zonal level. Generally each state is regarded as a zone and the offers and discounts in a zone are not available in other zones. Such policy helps reliance retail to
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understand and capture the local markets better. The products which show improvement due to offers and discounts on them are repeated with these offers again so as to retain the sales of the customers who bought it the last time. Also such the days best offers are constantly announced in the store making the regular customers aware about them. Maintaining a good store ambiance is also a part of customer retention policy of reliance retail. Clean and hygienic environment with properly and well spaced products along with a uniform color theme attracts the existing customers to the store again and again. A fast billing system and good and easy grievance handling system which can be accessed through customer service desk and company website, ensures that customers feel satisfied with the store management. Less harassment to customers means better customer retention. Communication to existing customers takes the form of sms and e-mails, generally sent to reliance one members. They get information about ongoing offers and also information and latest news about their nearest stores and the company in general. Another source of customer database is the information collected during the organizing of special events in the stores. Customers participating in such events provide their contact information which are also used in form of database for communication purposes. Thank you and festive cards on special occasions are an innovative way of communicating with the customers.
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Trained salespersons make customer gratification very easy. A simple thank you with a smile goes a long way for the store to keep the customers happy. The special events organized by the stores across India are also a way to gratify the customers by allowing them to play and win prizes. Gift vouchers and discount coupons are an attraction for the customers and give them the feel that the store cares about them and their money. Local customers many a times make limited personal contacts with the store staff just like that made at a Kirana store and help the store to some extent to maintain a relationship with the customers.

The implementation of the policies brings out certain limitations in them. Few major ones are as follows: • The personal contact numbers of reliance one members are open to tele marketing calls from various marketers as they leak out of the reliance retail’s database, causing unnecessary customers. • The customer communication policy is less followed in small towns and cities and is more concentrated towards the metro cities. harassment to

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• There is a common CRM policy for both reliance fresh and mart. This should not be the case as both the stores offer different kinds of merchandize and generally attract different kinds of customers. • Reliance retail generally delays the processing of permanent membership cards to those customers who have not paid for such a card. Customers have been waiting for over three months for their card. Those who have paid the nominal fee of Rs. 50 get their permanent card within 15 days but the rest who have optioned not to pay the fees do not receive the card until too late. • Unmanned billing counters create long queues at the open counters. This creates impatiens in the customers as they expect faster billing at the stores and do not want to stand with too much of goods held in their hands while billing.

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B.2. CRM policy of Big Bazaar
Database is formed through the issue of future card and card is of three types silver card, gold card and sakthi card. Sakthi card is issued to ladies and this card provides, free sugar(1 kg) per month. Customer profitability analysis (CPA) is done on the basis of transactions made through the future cards. ○Platinum customers (most profitable). ○Gold customers (profitable). ○Iron customers (low profitability but desirable). ○Lead customers (unprofitable and undesirable). Differentiate customers in terms of: (1) their needs and (2) their value to company. Interact with individual customers to improve the knowledge about individual needs and to build stronger relationships.

There are four type of analysis done for analysis of CRM ○Periodic Surveys: It’s done on quarterly, its an overall survey done by the future group authorities and CRM is a part of it. ○Customer Loss Rate : ○Mystery Shoppers: They pose as normal customers perform specific tasks such as purchasing a product, asking questions, registering

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complaints or behaving in a certain way – and then provide detailed reports or feedback about their experiences ○Monitor Competitive Performance

Complain Handling Procedures Screening And Logging -- The type of product or service; manufacturer/brand purchase/contract; name; model name/number; date of warranty expiration date; salesperson; cost of

product/service; date problem occurred; and a description of the problem is listed. This allows organization to exercise control, and assure proper follow-through.

Investigating -- customer's explanation of a problem provides much information. Nevertheless, to assure they have all the information needed for a thorough review of the facts involved, by: ○Researching in-house records on the customer; ○Requesting receipts, or other records; ○Inspecting the product, or service performed; and ○Following-up with the customer for any necessary additional information.

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Acknowledging -- When Big Bazaar cannot resolve an issue immediately, it is important to let customer know that the matter is receiving attention. Customer is given information about how long it will take to complete action on the complaint. If there is further delay, it’s made sure to advise customer why and when Big Bazaar expects to have an answer.

Formulating A Solution -- solution is made to be consistent with established customer relations policy and important criteria are taken into account: ○Contractual and/or warranty obligations; ○The customer's expectations; ○expectations of the customer; ○The cost/benefit of alternative solutions; ○The probability and cost of customer seeking redress in some other way; ○The comprehensiveness and fairness of solution; ○ability to perform the solution; and ○What to do if the customer rejects solution.

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Responding -- The response is made clear and appropriate. The customer must understand the response, and the response must address the issues raised in the customer's original complaint. An explanation of decision preserves the goodwill of customer, even if the decision itself is adverse.

Following-Up – Customer is contacted following response to verify whether or not the matter has been resolved satisfactorily. If customer is unhappy with response, organization refers the matter to a third party dispute resolution mechanism for assistance. Steps Involved in customer Satisfaction through Service: ○Seeing problems from the customer’s perspective ○Managing customers' "moments of truth" ○Communicating effectively through better listening ○Analyzing how customer perceptions are formed ○Managing anger and other service behaviors ○Dealing with long-term consequences of service breakdowns ○Negotiating solutions ○Generating an action plan for improved on-the-job effectiveness

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CUSTOMER COMMUNICATION: Future group maintains its records of customers by observing their purchasing habits & categories them into various groups like high revenue, moderate revenue & low revenue customers. They communicate to the customers through various medium like SMS, E-mail, Mobile vans, Print media etc. This is the way to built a strong presence in the existing customers & prospective customers. Presently they are using oracle software to maintain database. Recently they have tied up with California based firm GREENPLUM to provide new software for data warehousing. The company boasts strong share of its profits from top line customers who provide them around 70% of their revenues in total. The company can said to be going on the famous management principle i.e. 80/20 PRINCIPLE which says that 20 percent of variables cause 80% effect. In big bazaar it can be related to the fact that 20% of its top line customers provide 80% of its revenues in a year. This is the reason why the retail giant is focusing strongly on customer retention in order to boasts its sales numbers substantially.

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CUSTOMER GRATIFICATION : It is an important element of a sales process. Every company should survey their customers in order to find out the satisfaction level among the consumers. Big bazaar also conducts periodic surveys in order to ascertain the satisfaction level in their consumers. Various activities are done in order to enhance the shopping experience among buyers & various offers, discount coupons; exchange offers are initiated by the firm in order to develop a good satisfaction level in their existing customers. Special coupons are given to customers who can be redeemed by the costumers in their future purchases from the store.

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B.3.Custo B omer’s po of vi oint iew
1)Sales Person’s Assi istance: Th refers to the exten of help a individu his o nt an ual gets from the sales p g t person present in the store in choosing a particular e product or in case of a query. There can be two in p i any n nstances i.e inadequa e. ate help or exc h cess help. Inadequate help is a very case because most of th e e he ti sales person is th to solv our quer ime p here ve ries. In nstances of excess he can ari which m elp ise makes the customer feel that th he person is in p nterfering in his decis n sion or pushing the pr roduct to h him. People’s preference o sales per P of rsons assist tance

15% 35%

Big bazaar r Reliance m mart 50% Other

Fig.9.a F Shows peop prefere S ple ence of sale persons assistance es
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2)Expectati Fulfilm 2 ion ment: every customer has certa expecta y r ain ations whe en he h visits a store. This expectati will va from pe s ion ary erson to pe erson. It ca an be b getting a particular brand of product or particular quantity o variant o r f r r or of th product 55% peo he t. ople felt th their ex hat xpectations are more fulfilled at s e Big B Bazaar while 45% preferre Reliance Mart. Th may be because o r % ed e his e of greater prod depth at Big Baz g duct zaar than i Reliance Mart. in e People’s ex P xpectation l level

expectation fu ulfilmen nt

45% 55% % Big Bazaar r Reliance M Mart

Fig.9.b F Shows the fulfillment of people expectatio level S f t on

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3)Discounts & Offer these a announ s rs: are nced from time to t time to lu ure cu ustomers to buy mo 60% pe t ore eople pref ferred the D Discounts & Offers o of Big B Bazaar while only 40% preferred that of Relian Mart. T may b y t nce This be because mo people are aware of the di b ore e iscounts of ffered by B Big Bazaar due d to their huge adve r ertisements s.

Disc cosunt & & offers

40%

60 0%

Big Bazzar r Reliance M Mart

Fig.9.c F Shows peop S ple’s prefer rence of d discount & offers

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4)Product Arrangeme 4 A ent: this b basically m means the sequence or order in which diffe w erent varie eties, brand or segm ds ments of pro oducts are arranged s so th custom feel at ease in se hat mers electing the product o his/her c e of choice. People’s preference o product a P of arrangemen nt.

Produ uct Arran ngement t

45% 55% % Big Bazzar r Reliance M Mart

Fig.9.d F Shows 55% people p S % preferred th product arrangem he t ment of Re eliance Ma art while 45% preferred that of Bi Bazaar. This is be w ig ecause Big Bazaar ha g as la arge space due to wh e hich produ are m ucts more fragm mented or scattered o on th contrary Reliance Mart has smaller sp he y pace in whi produc are more ich cts lo ogically ar rranged. A Also it has more spa between the she s ace elves whic ch provide eas of walking to custo p se omers and they think less space means less k e en nergy wastage.

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5)Accessibi ility: it refe to the r ers reach of the store to t customers. e the People’s pr P reference o accessib of bility.

Accessibility A
11%

50% 39 9% Big bazzar Relian nce

Fig.9.e F Shows 50% people p S % preferred B Bazaa 39% R Big ar, Reliance M Mart & 11% % were neutra that me w al eans acces ssibility do oesn’t mat to them Majority tter m. li ikes Big Bazaar because it is situated in the mai city while Relianc B n in ce Mart M is loca at a ve posh ar which i very far from the m ated ery rea is main city.

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6)Preferenc it refers to the pre 6 ce: s eference of the custom regarding making f mer g a choice be etween the two stores i.e. Big B s Bazaar & R Reliance M Mart. Shopping preference o people. S p of .

preferen nce

35%

65% 6

Big bazaar r Reliance m mart

Fig.9.f F Shows 65% people p S % prefer shopp ping at Big Bazaar an 35% pe g nd eople preferred to do shopp p o ping at Reliance Mart This may be becau of any o t. y use of th above mentioned r he m reasons.

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C. LIMITATIONS OF THE STUDY
To carry out the research study the following limitations are faced: o Availability of sufficient data from different sources may be difficult. o Wrong selection of sample may create of wrong conclusion. o Time, cost and factor may cause difficulties. o Sample size may not be exact representative of the universe. However sincere efforts has been put to overcome the expected limitations.

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D. CONCLUSION
• Transformation by integrating customer facing front-end with back-end systems and partners and suppliers. This will effectively help in generating better filtered data source from feedbacks received. Also the feedbacks will be dealt with in a much more careful and professional way. • Growth of CRM facilitated by growth of IT. In this age of Information Technology an effective IT planning on the CRM can help the organization earn a lot of repute.

• New database solutions.
This will help to filter and clean the raw data received from feedbacks more efficiently. • Mutual benefit through CRM. The stores and their customers can mutually benefit through the application of CRM. So at this “era of customers”, the companies should project themselves as customer oriented as possible to help them benefit in a long term survival plan. • Effective segmentation of customers. With more and better quality of data, this can be done very easily. Enhancing the shopping solutions. This is the age of innovation. Especially in Indian markets, low cost innovation is the ultimate tool to win the battle for the companies. Thus, the companies need to be innovative with their ideas and always try to deliver the customer with some added value for their purchase.

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A.BIBLIOGRAPHY

BOOKS
  Marketing Management by Phillip Kotlar and Khoshy  Retail management by Michael Levy and Barton A Weitz Retail management by Chetan Bajaj                                      

WEB SITES
  www.auditbureau.org  www.executiveplanet.com/business‐etiquette/India.html  www.cygnusindia.com  www.scribd.com       
   

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