A PROJECT REPORT ON RETAIL & SALES MANAGEMENT

SUBMITTED BY RAJKUMAR SINGH A 30101909065

SUBMITTED TO MRS. APRAJITA DASGUPTA SR. LECTURER

AMITY GLOBAL BUSINESS SCHOOL, NOIDA AMITY UNIVERSITY

RETAILING INTRODUCTION
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of nonshop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.

Types of Retail Outlets
A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follows  Food products  Soft goods - clothing, apparel, and other fabrics.

 Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting goods, etc.

There are the following types of retailers by marketing strategy:
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Supermarkets - sell mostly food products; Department stores - very large stores offering a huge assortment of "soft" and "hard goods". Discount stores - tend to offer a wide array of products and services, but they compete mainly on price. General merchandise store - a hybrid between a department store and discount store; Warehouse store - low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee. Variety store or "dollar store" - extremely low-cost goods, with limited selection.

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 Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals). Some stores take a no frills approach, while others are "mid-range" or "high end", depending on what income level they target. Other types of retail store include:
 

General store - a store which sells most goods needed, typically in a rural area. Convenience store - a small store often with extended hours, stocking everyday or roadside items. Big-box stores encompass larger department, discount, general merchandise, and warehouse stores. Automated Retail stores are self service, robotic kiosks located in airports, malls and grocery stores. The stores accept credit cards and are usually open 24/7. Examples includeZoomShops and Redbox.

COMPANY PROFILE
Big Bazar , is the chain of retail stores of the big banner Pantaloon Retail (India) Ltd., which in turn is a segment of Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendly ambiance and the organized retailing of products also makes Big Bazar one of the successful retail companies in India. The chain was inspired by Saravana Stores, a hugely popular shop in Chennai which made huge profits by selling everything under the sun at prices much less than other shops. Big Bazar Overview: Big Bazar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazar with over 50 outlets in different parts of India, is present in both the metro cities as well as in the small towns. Big Bazar has no doubt made a big name in the retail industry of india, moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazar products and accessories. The variety of product range in Big Bazar: This large format store comprise of almost everything required by people from different income groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationary and toys, footwear, plastics, home utility products,cosmetics, crockery,home textiles, luggage gift items, other novelties, and also food products and grocery. The added advantage for the customers shopping in Big Bazar is that there are all time discounts and promotional offers going on in the Big Bazar on its salable products. The significant features of Big Bazar: Shopping in the Big Bazar is a great experience as one can find almost everything under the same roof. It has different features which caters all the needs of the shoppers. Some of the significant features of Big Bazar are: The Food Bazar or the grocery store with the department selling fruits and vegetables There is a zone specially meant for the amusement of the kids. Furniture Bazar or a large section dealing with furnitures. Electronics Bazar or the section concerned with electronic goods and cellular phones. [FutureBazaar.com] or

the online shopping portal which makes shopping easier as one can shop many products of Big Bazar at the same price from home Well regulated customer care telecalling services The following are few of the sections at Big Bazar: 1. Books 2. Cameras 3. Computers & Peripherals 4. Electronics 5. Gift Vouchers 6. Health and Fitness 7. Home & Kitchen 8. Jewelery 9. Memory & Storage 10. Mobiles & Phones 11. Movies & Videos 12. Watches 13. Women’s wear 14. Men’s wear 15. Children’s wear 16. Others.

RETAIL INDUSTRY IN INDIA
Retail is India’s largest industry. It accounts for over 10 per cent of the India's GDP and around eight per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175200 billion by 2016. The organized retail industry in India had not evolved till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector. A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing workingwomen population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof. But there is a flip side to the boom in the retail sector. It is feared that the entry of global business giants into organized retail would make redundant the neighbourhood kiryana stores resulting in dislocation in traditional economic structure. Also, the growth path for organized retail in India is not hurdle free. The taxation system still favours small retail business. With the intrinsic complexities of retailing such as rapid price changes, constant threat of product

obsolescence and low margins there is always a threat that the venture may turn out to be a loss making one. A perfect business model for retail is still in evolutionary stage. Procurement is very vital cog in the retail wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted food provisions and daily fluctuating prices as against consumer expectations of round-the-year steady prices, sorted and cleaned food and fresh stock at all times.

Trained human resource for retail is another big challenge. The talent base is limited and with the entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary hikes at the level of upper and middle management and thereby eroding the profit margin of the business. All the companies have laid out ambitious expansion plans for themselves and they may be hampered due lack of requisite skill manpower. But retail offers tremendous for the growth of Indian economy. If all the above challenges are tackled prudently there is a great potential that retail may offer employment opportunities to millions living in small town and cities and in the process distributing the benefits of economic boom and resulting in equitable growth.

Top 10 Retailers in India The Indian retail industry is valued at $270 billion, with organised retail cornering 4.5 %. The organized pie is expected to see a growth at a CAGR of 37 % (India Retail Report 2007)

Top players: 1. Pantaloon Retail: It is headquartered in Mumbai with 450 stores across the country employing more than 18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001. An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions (Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.) One of their recent innovations include e-commerce’ hybrid format of ’small’ shops , the area for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged to browse through the entire range of products on digital screen. They will be able to place the order, the delivery of which will be arranged by the shop to their homes within a few hours. 2. K Raheja Group They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001. It is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs 6.75 billion. The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross sales of Rs. 1 bn in its first year. Crossword brand of book stores, Homes stop a store for home solutions, Mothercare a concept stocking merchandise related to childcare are also owned by them. Recently, Raheja’s have signed an MoU with the Home Retail Group of UK to enter into a franchise arrangement for the Argos formats of catalogue & internet retailing. The group has announced plans to establish a network of 55 hypermarkets across India with sales expected to cross the US$100 million mark by 2010. 3. Tata group: Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside registered a turnover of Rs 3.58 mn in 2006.

Tata’s has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007. Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India has 200 exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their combined turnover is Rs 6.55 billion. Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the next 12 DLF malls. 4. RPG group: One of the first entrants into organised food & grocery retail with Foodworld stores in 1996 and then formed an alliance with Dairy farm International and launched health & glow (pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencer’s Hyper, Super, Daily and Express formats and Music World stores across the country. RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006. It is planning to venture into books retail, with the launch of its own bookstores “Books and Beyond” by the end of 2007. An IPO is also in the offering, with expansion to 450+ MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010. 5. Landmark group: were launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft. with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has emerged for their international brands business comprising Bossino, Kappa and Springfield in their portfolio. Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark International), value retailing (max retail), hypermarkets & supermarkets (Max), kids entertainment (Funcity). They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100 crores on Citymax 3 star hotel chain. They have already instituted a separate company christened Citymax Hotels (India). 6. Piramal Group In September 1999, Piramal Enterprises announced their arrival into retail with the launch of three retail concepts: India's first true shopping mall of international standards, called Crossroads; a lifestyle department store named Piramyd Megastore; and a family entertainment centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the business of food & grocery retail with the launch of TruMart supermarkets in Pune. They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs 37.6 mn in 2005. Piraymd Megatsore’s contributes more than 70 % to their retail mix with a turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in the next 5 years. 7. Subhiksha Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom, discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It has more than 500 stores across the country covering a retail space of more than 1 million sq ft with a

registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300 crores to ramp up its operations to 1200 stores by 2008. New but potential BIG players 8. Bharti-Walmart Their plans include US$ 7 bn investment in creating retail network in the country including 100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the front-end. 9. Reliance India’s most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000 cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by 200910. There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermart has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana. 10. AV Birla Group They have a strong presence in apparel retailing through Madura garments which is subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen Solly, Peter England, Trouser town. In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 - 9000 crores in the first 3 years till 2010. The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400 stores in the country. Their “More” range of 15 supermarkets are slated to open at Nashik, Pune and other tier II cities in Western India in 2007.

BIG BAZAAR AT NASIK

STORE LOCATION

Big Bazaar :: Nasik (Lawate Nagar) Address : City Centre Mall (Sarda Mall) , Lawate Nagar, Nasik Pincode : 422 002 State : Maharashtra Phone : 0253 - 3918 280 / 81 Big Bazaar :: Urban Space(Nasik) Address : BB Urban Space, Nasik Pune Road, Next to Bell temple, Opp Indian Security Press Hospital. Nasik Pincode : 422101 State : Maharashtra Phone : 0253 - 6627 830/33 Big Bazaar :: Nasik Address : The Zone, College Road, Nasik Pincode : 422005 State : Maharashtra Phone : 0253 - 6610 900 / 01

MERCHANDISE AT BIG BAZAAR, NASIK

DATA ANALYSIS
1. This store has modern-looking equipment and fixtures. Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree Percentage 3 6 3 24 63

Interpretation: As per the concern about the above chart that more than 4/5 th part of the respondent are strongly agree or somewhat agree that this store has modern looking equipment and fixtures and approximately half of the one part are neutral or disagree about the fact that this store has modern-looking equipment and fixtures.

2. Materials associated with this store’s service ( such as shopping bags, catalogs, or statements ) are visually appealing.

Basis Strongly disagree Somewhat disagree Neutral

Percentage 0 3 33

Somewhat agree Strongly agree

39 25

Interpretation: This pie chart shows that more than 3/5 th part of the respondent are strongly agree or somewhat agree that material associated with this store’s service (such as shopping bags, catalogs or statements) are visually appealing. And 2/5 th part of the respondents has neutral or negative thought.

3. The store layout at this store makes it easy for customers to find what they need.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 3 6 9 50 32

Interpretation: This graph shows that maximum number of customers (more than 4/5 th ) are satisfied with the store layout and they find out according to their need but there are very few customers who are not satisfied with the store layout at this store.

4. The store layout at this store makes it easy for customers to move around the store.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 3 9 3 63 22

Interpretation: According to above pie chart this is clear that maximum number of customers who find proper space in this store to move around but not so much. But some of them find that the particular outlet has enough space to move around and they can find every product easily.

5. This store provides plenty of convenient parking for customers.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 12 27 9 21 31

Interpretation: This graph shows that more than there are maximum number of customers who are satisfied with the fact that this store provides plenty of convenient parking for customers and approximately half of the respondents has neutral and negative thinking about it.

6. Employees in this store has the knowledge to answer customers question.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 6 6 24 54 10

Interpretation: This graph shows that there are more than 60 % respondents who are agree that employees in this store have knowledge to give answer to the customers questions. And about 1/3 rd of the respondents are disagree or has neutral thought.

7. The behavior of employees in this store instills confidence in customers.

Basis Strongly disagree Somewhat disagree

Percentage 0 15

Neutral Somewhat agree Strongly agree

10 45 30

Interpretation: The graph shows that there are maximum numbers of customers who are happy with the behavior of the employees of the store but not so much as sometimes the response of the employees doesn’t come according to their expectation. There are some customers who are happy with the behavior of employees in the store.

8. Employees in the store give prompt service to the customers.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 3 9 6 48 34

Interpretation: This graph shows that most of the customers are satisfied with the services which are provided by the employees of this store immediately what they want but sometimes they don’t get the service on time due to the lack of availability of the products or some other reasons. But many of the customers always gets the service on time according to their need.

9. This store gives customers individual attention.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 12 24 18 36 10

Interpretation: This graph shows that the employees of the store give attention to the customers individually and most of the customers are satisfied with the behavior and attention of the employees of the store to, but sometimes it becomes impossible for employees to give attention to every individual and some of the customers are not satisfied with the service delivered by the employees. Thus one should give the customer the required attention.

10. The store offers high quality merchandise.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 0 9 6 30 55

Interpretation: The above pie chart shows that maximum number of customers are satisfied with the merchandising of the particular store as they find every product of every brand offering a high end quality merchandise. The effect of this merchandise had created a important impact on the store efficiency.

11. This store accepts most major credit cards.

Basis Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree

Percentage 3 0 24 10 63

Interpretation: This above graph shows that maximum number of customers use their credit cards in this store for transaction to get the services. But there are some customers who don’t use credit cards, as they get the service in the store by cash so they have no knowledge or interest.

QUESTIONNAIRE
Respected Sir/Madam, We are the student of Amity global business school, Noida doing a survey on customer services provided by big bazaar, urban space, Nasik.

This questionnaire is a part of survey being conducted to understand the services provided by Big Bazaar to their customers. Name : Gender Marital status : Male Married Strongly Disagree __ Age : Female Single somewhat disagree __ Neutral __ somewhat agree __ strongly agree __

1. This store has modern-looking equipment and fixtures. 2. Materials associated with this store’s service (such as shopping bags, catalogs, or statements ) are visually appealing. 3. The store layout at this store makes it easy for customers to find what they need. 4. The store layout at this store makes it easy for customers to move around the store. 5. This store provides plenty of convenient parking for customers. 6. Employees in this store has the knowledge to answer customers question. 7. The behavior of employees in this store instills Confidence in customers. 8. Employees in the store give prompt service to the customers. 9. This store gives customers individual attention. 10. The store offers high quality merchandise. 11. This store accepts most major credit cards.

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CONCLUSION

1. There are many customers who are satisfied with the modern-looking equipments and fixtures but there are 1/4 th customers who are not much satisfied. There are many customers who agree with the materials provided by outlet. 2. There are 2/4 th customers who don’t find everything in the particular outlet always but more than 1/4 th customers always find everything in the store. 3. There are many customers who find the proper space in the outlet to move and most of the customers are satisfied with the parking facility. 4. There are many customers who are satisfied with the answers of the employees regarding their problems and there are not much satisfied with the behavior of employees. 5. There are maximum customers who are highly satisfied with their transaction in the store but sometimes they find some faults. There are customers who agree that employees in the store give prompt services but there are many customers who are not happy with the services provided by the store. 6. There are many customers who find the individual attention of the employees but sometimes they are not satisfied with the services and the behavior of the employees in the store. 7. There are maximum customers who are satisfied with the merchandising of the store and they find every product of brand in each category and shelf according to their choices.

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