DECLARATION

We, the students of Group – 10 belonging to MBA-I, Section -A hereby declare that the project report
based on “Research under the Retail Category- Departmental Store” submitted for the partial
fulfillment of the requirement for the Marketing Management – II to Prof. Joydeep Biswas (Faculty
of Marketing, KIIT School of Management at Campus-7, KIIT University, Bhubaneswar, Odisha-
751024) is our original work .
 ACKNOWLEDGEMENT

We feel immense pleasure and feel privileged in expressing our deepest and most sincere
gratitude to our supervisor Prof. Joydeep Biswas for his excellent guidance throughout our
project work. His hard work and attention to detail have been great inspirations to us. We would
like to convey our heartfelt thanks to him for the unlimited support and patience he has shown
to us.

We are also very thankful to the owners, executives, and staff for their kind cooperation in the
completion of market research. They shared some valuable information about their stores that
was required for our project report for Marketing Management-II.
 ABSTRACT

Understanding the topics under Retail Management in a real-life and practical situation. An approach
to relate, implement and experience the retail management concepts to the actual retail settings and
various concrete scenarios of everyday life. Retail Management is one the most important aspects of
marketing as it involves the medium through which the products and services are sold to the end-
users or consumers and that that adds up to the income of the store. It is mostly unorganized and
consists of small, independent owner-managed shops and stores. India has the largest retail outlet
density as compared to other countries around the globe. The highest contribution to the Indian
GDPis done by the Retail Sector. It is also amongst the fastest growing sectors of the country.
 TABLE OF CONTENTS
SL. NO TOPICS PAGE NO.

DECLARATION
ACKNOWLEDGEMENT
ABSTRACT
1. INTRODUCTION
2. OBJECTIVE OF THE PROJECT
RETAIL STORES:
3. RELIANCE FRESH
4. VISHAL MEGA MART
5. SHREE BAJRANG’S STORE
6. GROCERA
7. SPENCHERS’S RETAIL
8. PATANJALI AROGYA KENDRA STORE
9. D-MART
10. MEDKART
11. NIGAM FASHION & GIFTS
12. MORE
13. CONCLUSION
 INTRODUCTION

1. What is retail?
As the definition states, retail is the sale of a company's goods or services to
consumers for their own use. Retail transactions involve small quantities of
goods, while wholesalers are involved in purchasing large quantities of goods.
One shouldn’t confuse retail and online transactions. Goods from one branch
must be sold directly to the consumer for the end consumer.
2. Who is retailer?
A retailer is a natural or business from whom one purchases goods.
Retailers usually do not produce their own products. They buy goods from
manufacturers or wholesalers and sell them in small quantities to consumers.

EVOLUTION OF RETAIL

 Worldwide: The retail sector is undergoing a paradigm shift around the world as revolutionary
changes take place in the global economy and the growing importance of 24/7 business
operations. Today the world has become a global village. Consumerism is having a huge impact
on retail today, and advances in technology have created opportunities and challenges for retail.
With the arrival of the Internet, retail growth has been impressive thanks to the benefits of
economies of scale and the expansion of operations across geographic boundaries at the B2B and
B2C levels. As of 2021, Amazon is the world's most expensive retail brand with an estimated
value of around $254 billion. The third is Taobao, an Alibaba-owned online brand with a brand
value of $53.2 billion. Amazon is a multibillion-dollar e-commerce giant that offers online
shopping, computer services, consumer electronics, multimedia content, and other local services
including regular sales and goods. With a net turnover of over $385 billion, Amazon has been
consolidated into America's premier e-commerce.
 India: In the Indian economy, retail is one of the pillars contributing to a growth rate of around
10% of total GDP and a total employment growth of around 8%. According to a recent survey,
India's retail market is one of the top five global retail markets worth about $600 billion. India's
retail industry is expected to have a bright future and many opportunities for growth and growth.
Some of the lucrative factors supporting retail growth, according to the GRDI report, are the
growth of a modern and recognizable young population, widespread urbanization, and increased
new investment opportunities in retail. In 2020, it was 22,500 crores ($3.19 billion), up 76% year-
on- year. Traditional retail is predicted to rise for 75% of the major share in 2021, retail industry
will account for 18%, and e-commerce retail will make for 7% of the combined retail market.

Types of Retail Stores:

1. Specialty store: Specialty stores offer a very limited product line with a wide variety of
products. They offer a wide range of models, sizes, styles, colours and other important
attributes for the range they offer.
2. Department store: Department stores are large stores selling a variety of products. Each
line has a wide range and consists of separate departments for purchasing, marketing, service
and management. Also known as a department store for the mass market.
3. Supermarket: Supermarkets are designed to meet all your food, laundry and household
needs. It is relatively large in size. Their work is characterized by low cost, low margin, high
volume and self-service.
4. Convenience Store: Convenience stores are close to residential areas. It is relatively
small. It is open for a long time. A limited range of products are sold. The price charged is
slightly higher.
5. Discount store: Discount stores sell general merchandise at discounted prices.
The more sales you have, the lower your margins and the higher your overall
 profitability. Discount stores have moved to specialty stores such as sporting
goods, electronics, and bookstores.
6. Super Stores: Super stores cater to all consumer needs for both conventional and non-
conventional food.
7. Catalogue Showroom: Customers order items from a catalogue shown in the showroom.
The products are then picked up at a store's merchandise pickup location.

Objectives of the Project:

 The size and form of a retail store will determine the organizational structure. The bulk of the
activities involved in running a retail store would be the same. Smaller or independent retail
stores, on the other hand, can combine multiple sectors under one division, while larger stores
establish multiple divisions for each feature, as well as multiple layers of management.
For example, the employees of a small specialty shop might be grouped together under the
heading Store Operations. For its Sporting Goods department, Home and Garden Bed and
Bath, and each additional department, a large department store can have a full staff consisting
of a manager, assistant manager, and sales associates.
Stunt by listing all of the activities that must be done in order to describe the store's
organisation. Then delegate roles to different people or networks. Each work should be
grouped and graded into a job with a title and description. The last move is to build a
summary of the company.
Also, here we understand the retail management topics in a practical situation by visiting the
stores. We try to link retail management principles to real-world situations, recognize the
application of Retail Management in real-world environments and experimentation of various
retail stores face retail management problems. Along with that, -To learn more about the
operations done in the store.
Also, here we understand the retail management topics in a practical situation by visiting the
stores. We try to link retail management principles to real-world situations, recognize the
application of Retail Management in real-world environments and experimentation of various
retail stores face retail management problems. Along with that, -To learn more about the
operations done in the store.
 To learn about the company's plans for making the store appealing to customers.
 To think about the employee benefit programs.
 To be knowledgeable of the store's inventory management.
 To understand how displays are designed to entice customers.

Retail Categories

1. Auto dealers, including auto parts, new and used vehicle sales.
2. Non-store retailers, which means online retail sales.
3. Department stores.
4. Apparel, such as specialty clothing stores.
5. Electronics and appliance stores, including big-box retailers like Best Buy.
6. Food and beverage stores, including grocery and liquor stores.
7. Building and garden supply stores, such as Lowes and Home Depot.
8. Sporting goods/hobby stores. Health/beauty shops, including drugstores Furniture stores
Hospitality and leisure, including hotels, restaurants, and bars Gas stations Miscellaneous.
RETAIL STORE 1:

RELIA
NCE
FRESH
Reliance Fresh is the convenience store format which forms part of the retail business of Reliance
Industries of India under its subsidiary Reliance Retail Limited.
Industry – Retail
Type – Supermarket
Chairman – Mukesh Ambani First outlet – Hyderabad
Product – Vegetables, fruits, food and beverages, dairy products.
Price – Low cost model, Discount pricing, Value based pricing
World bank report on India’s fruits and vegetable trade mentions that India produce 11% of world vegetable and
15% fruits at 53.63% in global price but it shares in global fruit and vegetable is 1.7% and 0.5% respectively Lack of
best supply chain in fruit and vegetables Food accounted for over two-thirds of the $200 billion Indian retail market
and yet, it had seen hardly any penetration modern retail so far.

RETAIL STORE SIZE, LOCATION AND APPROPRIATENESS

The size of a retail store is a supermarket. It is located in Patia,Bhubaneswar.

TYPES OF DIFFERENT CHANNEL FORMAT :

COLLECTION CENTER:
1. Visual Quality inspection of Bulk products
2. Sorting
3. Crating of acceptable bulk produce
4. Weighing
5. Payment to Farmer
6. Store it under cooler environment
7. Loaded it in air conditioning vehicle and sealed it.

PROCESSING STATION:
1. Weight of arrived material and matching it with the data in the collection center
2. Visual quality rechecks of the received bulk
3. Dump wastage or sell in market
4. Stored (if required in cooler environment)
5. Create material according to the requirements of stores and dispatch it to different stores.

RELIANCE FRESH STORE:

1. Received at store
2. Keep it for sale
3. Payment receive from people who buy that material
4. Wastage material dumps
5. Take customer feedback

PRODUCT ASSORTMEMNT AND THEIR RESPECTIVE TARGET SEGMENTS:

Product offerings include home care, general merchandise, and basic range of apparel. Vegetables,
Groceries, Fresh fruits, Fresh juice bars, Staples, Dairy products Bread, Non- vegetarian products.
Product variety: Frozen items, Grocery, Fresh fruit, Dairy product.
Quality: They directly purchase from the farmer and wholesaler.
Design: Product display is well organized, easy choice, bright and clean store, convenient Location with
layout allow for navigation.
Packaging: Environment friendly packing at the counter. Warranties: Product or accessories repaired and
replaced.
Return: Return policy is also there with promise.
Although retailers normally aim at the mass market, a growing number are engaging in marketing research
and market segmentation, because they are finding it increasingly difficult to satisfy everyone. Through a
careful definition of target markets, retailers can use their resources and capabilities to position themselves
more effectively and achieve differential advantage. The tremendous growth in the number of specialty
stores in recent years is largely due to their ability to define precisely the type of customers, they want to
serve.

 In order to generate revenue reliance, fresh should target house makers since they are the one
purchasing the goods for the house so they will be the frequent visitor also.
 Older shoppers and Generation X consumers hold the key to survival for stores like reliance
fresh and independent outlets, says a research.
 A new survey points out the two groups are natural markets for small operations to target in
order to survive an increasingly competitive industry.
 In order to survive the price competition from the mega giants in the retail business, Reliance
fresh must stress target marketing and customer service. Reliance fresh should target older
shoppers and Generation X consumers because these people are looking for particular
conveniences when they shop.
 Generation X consumers and house makers are a key market because they seek many of the
same conveniences, plus take-home food and 24-hour service.
 In stressing customer service, Reliance fresh should position themselves in the communities
and neighborhoods as the customer service leader in the market.
 Stores should continuously track the customer service perception.

Private label:
It sells staples, food, home, personal care and general merchandise under its own brands such as Best
Farms, Good Life, Masti Oye, Kaffe, Enzo, Mopz, Expelz and Home One. Most e-commerce retailers—
grocery firms and others—are increasingly focusing on such in-house brands which offer better margins.

Pricing strategy
1. Discount price strategy
2. Wide price of each item
3. Price marked In
4. Comparable Price
5. Competitive Price
6. Value pricing EDLP (Everyday Low Price)
7. “Growth Through Value Creation”
8. Psychological Pricing
9. Product Bundle Pricing
10. Promotional Pricing (Buy one get one)
11. Special Event Pricing

Promotion
1. Saturday Sunday consider discount scheme day.
2. BPGO. BXGY. Festive session special offer.
3. Live announcement & spot discount.
4. Reliance mart membership card.
5. Social event & store tour.
6. Providing gift free goods.
7. Print and broadcast ads with the help of national and local news paper.

VARIOUS MARKETING COMMUNICATIONS USED INSIDE THE STORE:

IN-STORE:Reliance fresh uses media for in-store communication. The in-store level of communication is
done through following modes.
1. Point-of-Purchase: The point of purchase is used to communicate the promotions with the help
of ‘Shelf-Talkers’. Shelf-Talker is a mode of communication at the shelf where the product is
displayed.
2. Danglers: Danglers are the signages which are hanged through the ceiling of the store
communicating regarding the promotions and offers. A copy of danglers used in Reliance
fresh during the period of study is attached with the report.
3. Audio Material: all the promotions are communicated to all the visiting customers through an
audio system installed in the store. Every store receives an audio file which contains all the
details regarding the latest promotions and offers.
4. Leaflets: leaflets are distributed to every customer entering the store for the current
promotions and for the forthcoming promotions as well.
5. C.C.A (Customer Care Associates): Customer Care Associate the sales force inside the store is
also a vehicle for communication.

Integrated marketing communication (IMC): - A concept of marketing communication planning

that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines and combines these disciplines to provide clarity, consistency and maximum
communication impact. In short combine the disciplines to provide clarity, consistency and maximum
communication impact. The main reasons behind the growth in importance of IMC tools are shift from
media advertising to other forms of marketing communication, rapid growth of database marketing, and
increasing importance of branding. The POP displays ALL OUT-event Danglers in-store.

VISUAL COMMUNICATION:

Pure foods convenience store model of reliance fresh requires far less space than a full-fledged
supermarket.
Facility exterior Outlet area 5000 sq. ft. Parking:
Separate entry (Building) Billboard outside of the store.

STORE DESIGN:
1. The place mainly consists of the distribution channels. It is important so that the product
is available to the customer at the right place, at the right time and in the right quantity.
2. 3-minute drive from a Reliance Fresh outlet.
3. Reliance fresh offers a hygienic environment, good ambience and great service.
4. Reliance Fresh (music through radio instead of the normal music)
5. Certain dedicated areas for children where they can play while their parents can have
some quality time together.

SALESPERSON MANAGEMENT:
1. Staff uniform red blue and green.
2. Amiable staff.
3. Simple, color full basket.

Number of salesperson-10
Cost of each salesperson- Rs 4500/- Training Process- 1 month
Recruitment process-
 Selection based on training performance.
Technology Involvement Technology: -
SAP (System application Product)
Retailer Profitability:
 Average Daily Footfall per day = 200
 COGS annually = 2.70 Cr
 Revenue = 3.05 Cr
 Gross Sales = 35,00,000
 Gross margin % = 11.47 %
 Sales per unit space: Rs. 5400
 Efficiency: CR: 80%
 Product return rate: 4%
 Category wise Sales:
o Grocery: 65%
o Food & Beverages: 25%
o Others: 10%
 GMROI = 1.09
 GMROF= 699.67

RETAIL STORE 2:

VISHAL MEGA MART

Vishal Mega Mart is an Indian hypermarket chain founded by Ram Chandra Agarwal in
Kolkata in 1986, in a 100 sq. ft. shop in Lal Bazaar. A few years down the line, it was bought
by private equity consortium—Partners Group and Kedaara Capital—for reportedly more
than ₹5,000 crore. Vishal Mega Mart has over 192 physical stores across the country with a
cumulative trading area of more than 2 million square feet across 110 cities and towns in
India. The company’s range includes groceries, general merchandise, fashion and personal
care products.
Industry: Retail
Type: Hypermarket
Chairman: Ram Chandra Agarwal First Outlet: Kolkata
Headquarters : Delhi
Competitors in the area: Bazaar kolkata and Big mart

RETAIL PROCESS:
To grow with increased demand and keep customers coming back for more, the retailer
transformed the core systems powering its business with super-scalable technology. The
retailer worked with IBM and SAP to accelerate performance across its core operations, with
agile, scalable technology—improving its ability to meet peak demand and deliver stellar
services. VMM has also partnered with flipkart to get into the online retail business.
Products: Groceries, Fashion, electronics, furniture, child care etc.
Target Segment: Vishal Retail targets cities with urban population of 1 million people or
above or can be classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens
retail outlets on the outskirts, rather than the prime area. Its target market includes people with
middle income and lower income levels. This enables the company to overcome competition
to some extent due to its first mover advantage (as competitors have relatively less space in
tier-2 and tier-3 cities) and helps to lower rental cost.
Private Label: M/s Vishal apparels, Mavie jeans.
Pricing Strategy: They work on the model of economics of scale. Their pricing objective is to
get "Maximum Market Share".
The various techniques used at Vishal Mega-mart are:
-Value Pricing (EDLP - Everyday Low Pricing): Vishal Mega-mart promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or
comparison shopping.
-Promotional Pricing: Vishal Mega-mart offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as a promotional tool. Vishal Mega-
mart also caters on Special Event Pricing (Close to Diwali, Holi, Raksha- Bandhan and Durga
Pooja).
-Differentiated Pricing: Time pricing i.e. difference in rate based on peak and non-peak hours
or days of shopping is also a pricing technique used in Indian retail, which is aggressively
used by Vishal Mega-mart.
-Bundling: Selling combo-packs and offering discounts to customers. The combo-packs add
value to customers.
Store Planning (As per DMR location):
 Size: 29000 sq. ft.

Visual marketing communication:

Layout: Grid Layout
Store Design: The store pans across three floors where each floor is dedicated to a certain
category. Groceries are kept on the first floor since this is the highest selling segment and
apparels on the second floor for both men and women while electronics and other
commodities are on the third floor.

 Groceries are mostly displayed in aisles in shelves in a grid layout where every similar
product is kept together and products that go with it in some cases are placed at the end of the
aisle so that the customer goes through several other products before reaching his/her desired
product. .

CALCULATIONS:
Salesperson Management:
 No. of salespersons = 65
 Training process - Training is given for a period of 1 month to master sales.
 Recruitment Process - Ads are posted on newspapers only for this location and a job is
given after the successful completion of the training period.
 Cost of each salesperson - Rs. 5500 per month

Retailer Profitability:
 Avg. daily footfall: 125 approx.
- Size: 29,000 sq. ft.
 Sales per unit of space: Rs. 64.65
 Gross Sales annually: Rs. 18,75,000 approx.
 Approximate number of sales annually: 45,000
 Avg. transaction value: 41.66
 Revenue: Rs. 2.25 Cr approx.
 PAT: Rs. 10,00,000 approx.
 Category wise Sales: (approx.)
o Grocery: 52%
o Apparels: 30%
o Electronics: 10%
o Others: 8%
 Efficiency: CR: 65% approx.
 Product return rate :8% approx.
 GMROI= 0.97
 GMROF= 5.17
Vishal has the lowest GMROF in comparison to all other outlets. So, we would suggest it
to Focus on Customer Preference and go for an Appropriate Store Layout.
Retail Store 3:Shree Bajrang Store’s:
Shree Bajrang Store, is a leading player in the segment Departmental Stores.This well-known
establishment serves customers both locally and from other parts of Jamshedpur as a one-stop
shop. This company has built a strong presence in its industry over the course of its life. The idea
that customer loyalty is just as important as their goods and services has helped this company
build a large customer base that is growing by the day. This organisation hires people who are
passionate about their jobs and put in a lot of effort to fulfil the company's overall mission and
objectives.
Shree Bajrang Store is one of the most well-known Departmental Stores in the city. Grocery
Home Delivery Services, Grocery Stores, Departmental Stores, Stationery Shops, Cashew Nut
Retailers, Dairy Food Retailers, Departmental Stores Home Delivery, Jeera Retailers, and a
number of other services it is famous for.

Information about Shree Bajrang Store’s:

1) Type of Retail store:
 Format: Departmental Store
 Retailing Processes: Direct selling
 Ownership: Rented

2) Type of different channel formats: Direct selling Channel

3) Retail store size: 1000 Sq. Ft.

4) Product assortment: Grocery items, personal care products, Prepared meal items, Baked
goods, beverages, frozen foods and dry goods, pickles, processed foods, stationary items.
 Respective target segments: Middle class people, youth and middle-aged people.
 Private labels: No
 Pricing Strategy being implemented: Low Rate Pricing

5) Various marketing communications used inside the store: A poster of Cadbury inside
the store at eyelevel, sales promotion by the sales person, different advertisements of different
brands.
6) Visual Communication –
 Store frontage: Nivea’s Poster
 Retail identity: Departmental store with all household items and food in a nearby place.
It portrays availability of these items in a nearby locality.

7) Store Planning –
 Space allocation of the store: 1000 Sq. Ft.
 Store layout: Mixed Layout

8) Merchandising –
 Merchandise presentation- The floor space is a little too less. This is why different
racks are there in the store to make it look “almost everything is available”. This helps them
to make profit.

9) Store Design –
 Store ambience: Very nice with good smell. It makes people want to buy more.
 Lighting: Good lighting
 Sound: No music, just people chattering.
 Interior design: floor is of tiles, nothing special interior designing because everything is
rack.
 Overall consumer experience: Consumers are happy with the products, all up-to date
products are available, the plus point is it is in the locality outside the main market so it is
easier for the consumers to get the products.

10)Salesperson management –
 Number of salespersons: 3
 Cost of each salesperson: Rs 10000
 Recruitment process and training process for salespersons: The salesmen are recruited
on the basis of reducing unemployment. A little benefit is seen is their approach, dedication
and loyalty. They are made to work one day without fee to see their dedication. There is no
training process as such. They see and learn.
 Innovative use of technology: Usage of google pay, Sodexo and Paytm.

11)Inventory: Rs. 2500000

12)Retailer Profitability in terms of: (Feb)

 Average daily footfalls: 80 footfalls
 Footfalls in feb: 2240
 Overall: 80
 Purchaser: 80
 13)Sales –
 Gross Sales: Rs 1800000 (per month)
 Net Sales: Rs 1600000 (per month)
 Sales growth:
 Sales per unit of space: 1600000/1000 sq. ft.= Rs. 1600 per sq.ft
 Category wise sales: Household Products and pulses.
 Department wise sales:
14)Profit –
 Margin: Rs. 540000
 Monthly return= 15%
 Yearly return= 180%

15)Efficiency –
 Conversion rate: 80/80*100= 100%
 Average transaction value: Rs. 1600000/2240= Rs. 714.28
 Inventory turns: 1800000/2500000= 72%
 Product returns: no as such.
 GMROF: 540000/1000= Rs.540
 GMROII: 540000/2500000= 21.6%

16)Employee Productivity –
No. of employees: 10
Sales per employee: 1600000/10= Rs.160000
No. of salesperson: 3
Sales to salesperson cost: 1600000/30000= 53.33 per sales

RETAIL STORE 5 :GROCERA

Overview:
Grocera is a super store which was established in 2019. It is a growing marketplace for nearby
locality for the people in Sonari. It is also available online where they go for home delivery for
grocery products. During Covid 19, Grocera delivered more products to the respective homes. It
uses more offers to attract the consumers. Since they has recently built the market place, it has
made other products also available. It is a two-storey building with ample amount of products.
But, less customers because of the locality. The lighting of the building is very attractive so it
attracts consumers more. Grocera is also an online store that sells groceries, fruits, vegetables, and
non-vegetarian items.

Information’s about Grocera:

1. Type of Retail store:
 Format: Super store
 Retailing Processes: Direct selling, home delivery
 Ownership: Sole Proprietor

2. Type of different channel formats: Direct selling Channel, online store

3. Retail store size: 3000 Sq. Ft.

4. Product assortment: You will find everything you need in our catalogue, which contains
over 10,000 items and 1000 brands. They have everything from fresh fruits and vegetables,
rice and dals, spices and seasonings, to packaged goods, drinks, personal care items, and
meats.
a. Respective target segments: Rich, Middle class people, youth and middle-aged
people.
b. Private labels: No
c. Pricing Strategy being implemented: Low Rate Pricing and discount oriented as it
is a budding brand.

5. Various marketing communications used inside the store: Properly arranged shelves. The
counter is very beautiful that makes the consumers want to buy something or the other.

6. Visual Communication –
 Store frontage: Extremely good lighting.
 Retail identity: Super store with all household items and food in a nearby place. It portrays
availability of these items in a nearby locality. It also has an app that delivers grocery
products at our home.

7. Store Planning –
 Space allocation of the store: 3000 Sq. Ft.
 Store layout: Grid Layout

8. Merchandising –
Merchandise presentation- The floor space is wide spread. All types of items are available here.
Beautiful graphics of the brands. The products are uniformly arranged. Color combination is also
nicely chosen.

9 Store Design –
 Store ambience: Very nice with good smell. A security guard at the store. Varieties of
products are available, it makes people want to buy more.
 Lighting: Good lighting
  Sound: No music, just people chattering.
 Interior design: The counter area is beautifully decorated. The store as a whole is very
colorful.
 Overall consumer experience: Consumers are happy with the products, all up-to date
products are available in huge quantity. Since it is a super store in a certain locality there
are many walkouts too.

10 Salesperson management –
 Number of salespersons: 5
 Cost of each salesperson: Rs 10000
 Recruitment process and training process for salespersons: Here the recruitment is
done through internships. Looking at the quality of their work they are given employment in
grocery. There is no training process as such because it is a new brand in a growth stage so
there are no more expenses as such.
 Innovative use of technology: App. Through the app of grocera all the grocery
products are delivered to the respective homes scattered around.

11 Inventory: Rs. 3000000

Retailer Profitability in terms of: (Feb)
 Average daily footfalls: 50 footfalls
 Footfalls monthly: 1500
 Overall: 65
 Purchaser: 50

13)Sales –
 Gross Sales: Rs 1600000 (per month)
 Net Sales: Rs 1490000 (per month)
 Sales per unit of space: 1490000/3000 sq. ft.= Rs. 496.67 per sq.ft

Category wise sales: grocery products

14)Profit –
 Margin: Rs. 330000
 Monthly return= 15%
 Yearly return= 180%

15)Efficiency –
 Conversion rate: 50/65*100= 77%
 Average transaction value: Rs. 1490000/1500= Rs. 993.33
 Inventory turns: 1600000/3000000= 53.33%
 Product returns: no as such.
 GMROF: 330000/3000= Rs.110
 GMROII: 330000/3000000= 11%

16)Employee Productivity –
No. of employees: 12

18) Sales per employee: 1490000/12= Rs.124167

No. of salesperson: 5
 19) Sales to salesperson cost: 1490000/50000= 30 per sales

RETAIL STORE 5: SPENCER’S RETAIL

Spencer's Retail is an Indian chain of retail stores headquartered in Kolkata, West Bengal having
presence in over 35 cities in India. It is owned by RP-Sanjiv Goenka Group.
Date of Establishment -1996
Revenue Rs. 2,402.84 crores (March’20)
Chairman, Non Ind & Non-Exe Director: Sanjiv Goenka
Spencer ‘s Retail is a part of the RPG Companies that deals with food, apparel, fashion,
electronics, lifestyle products, music and books. It operates through over 350 stores. It also offers
services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance
India Ltd. It consists of Spencer ‘s Hypermarkets, Spencer ‘s Super, Spencer ‘s Daily and Spencer
‘s Express. Spencer's began operations as a retail chain in the early 1990s in Southern India.
Stores are largely set up in one of 2 formats.
 Convenience stores, called Spencer’s
 Hypermarkets, called Spencer’s Hyper
RETAIL PROCESS
Operation Support Systems ERP System Various Enterprise Resource Planning (ERP)
vendors have developed retail-specific systems which help in integrating all the functions
from warehousing to distribution, front and back office store systems and merchandising. An
integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on
time, preventing stock-outs and thus reducing his costs, while servicing the customer better.
CRM Systems The rise of loyalty programs, mail order and the Internet has provided retailers
with real access to consumer data. Data warehousing and mining technologies offer retailers
the tools they need to make sense of their consumer data and apply it to business. Advanced
Planning and Scheduling Systems (APS systems) can provide improved control across the
supply chain, all the way from raw material suppliers, right through to the retail shelf. They
enable consolidation of activities such as long- term budgeting, monthly forecasting, weekly
factory scheduling and daily distribution scheduling into one overall planning process using a
single set of data. Strategic Decision Support Systems Store Site Location Demographics and
buying patterns of residents of an area can be used to compare various possible sites for
opening new stores. Today, software packages are helping retailers not only in their locational
decisions but in decisions regarding store sizing and floor- spaces as well.

FORMA STOCKS TRADING(

T Sq.ft)
Spencer’s Dairy, Fruit, Vegetables, Coffee, Tea Masalas, 1000
Express Pickle
Spencer Vegetables, Fruit, Milk, egg 2000
Fresh
Spencer Regular Grocery 4000-7000
Daily
Spencer Homecare products, personal products, Bakery, 8000-15000
Super Baby care products.
Spencer’s Miscellaneous More than
Hyper 25000

'
RETAIL STORE SIZE, LOCATION AND APPROPRIATENESS
The size of the retails store was hypermarket with an approximate size of 17000 square feet.

Product Assortment:
DIFFERENT FORMAT OF SPENCER

TARGET SEGMENT OF SPENCER RETAIL

The target segment for Spencer Retail is 18-35 years of age. It accounts for approximately
71% of household income.

Few of the private labels used in spencer are: -

1. Spencer Smart Choice

2. Tasty Wonders
3. Maroon Home essentials
4. Clean Homes

PRICING STRATEGY
The pricing objective at Spencer is to get “Maximum Market Share”. Pricing at Spencer is
based on the following techniques: Value Pricing (EDLP – Everyday Low pricing): Spencer
promises consumers the lowest available price without coupon clipping, waiting for discount
promotions, or comparison shopping. Promotional Pricing: Spencer offers financing at low
interest rate. The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is also used to
attract customers.
Spencer also caters on Special Event Pricing (Close to Diwali, Gudi Padva, and Durga Pooja).
Differentiated Pricing: Differentiated pricing i.e. difference in rate based on peak and non-
peak hours or days of shopping is also a pricing technique used in Indian retail, which is
aggressively used by Spencer. Bundling: It refers to selling combo-packs and offering
discounts to customers. The combo-packs add value to customers and lead to increased sales.
Spencer lays a lot of importance on bundling. e.g. 3 Good Day family packs at Rs 60(Price of
1 pack = Rs 22) 5kg oil + 5kg rice + 5kg sugar for Rs 599.
VARIOUS MARKETING COMMUNICATION USED INSIDE THE
STORE
The various promotion schemes used at Spencer include: Exchange Offers “Junk swap offer”
Future card (3% discount) Shakti card Advertisement (print ad, TV ad, radio) Brand
endorsement FOR EVERY RS.100 YOU SPEND AT SPENCER'S, YOU EARN 10
POINTS.
People: Well trained staff at stores to help people with their purchases Employ close to
10,000people and employ around 500 more per month. Well-dressed staff improves the
overall appearance of the store.

STORE PLANNING AND STORE LAYOUT

The Spencer stores are operational across three formats — hypermarkets spread over 40,000-
45,000 sq. ft., the Express format over 15,000-20,000 sq. ft. and the Super Centre’s set up
over 1 lakh sq. ft. Currently Spencer operates in over 34 cities and towns across India with
116 stores. Apart from the Metros these stores are also doing well in the tier II cities. These
stores are normally located in high traffic areas. Spencer aims at starting stores in developing
areas to take an early advantage before the real estate value booms. RPG is planning to invest
around Rs 350 crore over the next one-year expansion of Spencer. In order to gain a
competitive advantage Spencer has also launched a website www.spencer.com, which helps
customers to order products online which will be delivered to their doorstep. This helps in
saving a lot of time for its customers. Spencer stores are normally ‘U shaped’ and well
planned & designed.
MERCHANDISING
Products in Spencer are properly stacked in appropriate racks. There are different departments
in the store which display similar kinds of products. Throughout the store there are
boards/written displays put up which help in identifying the location of a product. Moreover
boards are put up above the products which give information about the products, its price and
offers.
Technology in Retail adopted by Spencer Hypermarket the ERP Initiative at Spencer’s Retail
Ltd. Over the years, during the turn of the twentieth century as the consumer demand
increased and the retailers geared up to meet this increase world over, technology evolved
rapidly to support this growth. The hardware and software tools that have now become almost
essential for retailing can be classified into 3 broad categories: Customer Interfacing Systems.
1. Barcoding and Scanners Point of Sale (POS) systems use scanners and bar coding to
identify an item, use pre- stored data to calculate the cost and generate the total bill for a
client.
2. Payment through credit cards has become quite widespread and this enables a fast and
easy payment process. Electronic cheque conversion, a recent development in this area,
processes a cheque electronically by transmitting transaction information to the retailer and
consumers bank.
3. Internet is also rapidly evolving as a customer interface, removing the need of a customer
physically visiting the store.

STORE DESIGN
The store is well lit and all products are properly visible in the store soothing music is turned
on and also sometimes special offers are announced in the mic.
SALESPERSON MANAGEMENT
1. Well trained staff at stores to help people with their purchases
2. Employ close to 10,000 people and employ around 500 more per month.
3. Well-dressed staff improves the overall appearance of the store.

INNOVATIVE USE OF TECHNOLOGY

Operation Support Systems:

1. ERP System - Various Enterprise Resource Planning (ERP) vendors have developed
retail- specific systems which help in integrating all the functions from warehousing to
distribution, front and back office store systems and merchandising. An integrated supply
chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing
stock-outs and thus reducing his costs, while servicing the customer better.
2. CRM Systems- The rise of loyalty programs, mail order and the Internet has provided
retailers with real access to consumer data. Data warehousing and mining technologies offer
retailers the tools they need to make sense of their consumer data and apply it to business.
3. Advanced Planning and Scheduling Systems APS systems can provide improved
control across the supply chain, all the way from raw material suppliers, right through to the
retail shelf. They enable consolidation of activities such as long-term budgeting, monthly
forecasting, weekly factory scheduling and daily distribution scheduling into one overall
planning process using a single set of data.

RETAILER PROFITABILITY:
- Avg. footfall per day = 700
- Size: 30,000 sq. Ft for South City Mall
- Approximate no of sales annually: 1,89,000
- COGS annually: Rs. 9,45,00,000/-
- Approximate No. of Sales annually: 1,44,000
- Net Sales annually: Rs. 8,72,00,000/-
- Gross Margin: - 73,00,000/-
- Gross margin % = 8.37%
- Sales per unit of space = Rs. 500
- Efficiency: CR: 75%
- Avg. transaction value: Rs. 300
- Product return rate: 8%
- Category wise Sales:
 - Grocery: 45%
- Fish & Meat: 20%
- Liquor: 15%
- Grooming, Hygiene & Sanitation: 10%
- Beverages & Processed, frozen, canned, etc. food: 6%
- Electronics, kitchen appliances and utensils: 4%
- GMROI= 1.04
- GMROF= 243.288

RETAIL STORE 6:

Patanjali Arogya Kendra Store

Patanjali is an Indian multinational FMCG company, established in the year 2006 by Baba
Ramdev, with an aim to reposition Ayurveda in India and introduce it to the world. Patanjali
quickly became a prominent brand in and started looking for franchises. One such franchise is
Jadugoda’s Arogya Kendra Store. Which is not just a Patanjali retail outlet but also Jadugoda’s
first mini organized store.

Patanjali Arogya Kendra Store’s

Patanjali franchise is here owned by the owners of Ashok Medical Store, eastablised in 2018, Mr.
S K Agarwal and his family, is a convinience good store, and being a franchise the control of the
store primarily lies in the hands of thecompany that is Patanjal, the retailer does get a margin of
10% in total. Area on which the store is established is 300 ft2 and is clearly having a grid layout.
Products that have a good product line depth are kept at the entrance for example cosmetics,
skincare, soaps, shampoos, cooking oil, talcum powder, biscuits, etc. Whereas staples like sugar,
salt, whole wheat flour are kept at the back end of the store, they are kept in such a way that
when the consumer enters to buy a staple good they have to cross the other products and the

chances of buying those products could increase.

This patanjali store has two promotional boards bearing Baba Ramdev’s image, the brand name,
brand motto and retail store’s name at the entrance. Upon entering the store the very first thing a
consumer may notice is a banner with Patanjali’s logo, Baba Ramdev’s picture and product range
that Patanjali has to offer. The ayurvedic medicines and suppliments are kept adjecent to the cash
counter to ensure 100 percent visibility to the consumer when they are paying the bills, which
trigger a curiousity in them to enquire about the products kept there.
The store is well lit and fully air conditioned. Each and every product is clearly visible and easily
accesable.
There's no merchandising in this store, there's only one cash counter with one employee under one
manager (who is the owner himself) who supervises the store. They do have a membership
program, the consumers who get that membership program always get a 5% reduction on price
upon every purchase.
Net margin is 10% for this outlet.

Inventory, Employees, COGS and Revenue generated

The opening inventory of the shop is rupees 15 lacs annually and the revenue
generated by the shop is rupees 36 lacs annually. COGS is Rs 35,640,000.
Therefore, ROI is 10.1%.
The shop has 1 salesperson, getting Rs 180000.

Footfalls, conversions, returns, and other numbers:

 Around 110 people visit the store in one month and mostly all are conversions.
 Footfalls in one month = 110
 Footfalls in one year = 12 x 110 = 1320
 In this case, all Footfalls are converted, so Conversions = 1320 Let’s have a look on the
returns, Monthly returns = 10
 Yearly returns = 10 x 12 = 120

As mentioned earlier the area of the shop is 300 ft2 therefore,

 Sales/ft2 = Rs 36 lacs/ 300 ft2 = Rs 120,000/ft2 (approximately)

 Rate of conversion = 110/110 x 100 = 100%
 Average transaction value = Rs 36,00,000/ 1320 = Rs 29,268.29
 The shop has employment cost of Rs 180000 annually.

Placement, Positioning, Promotion, and Targets

 Target consumers: People who are vegetarian, who belive in ayurveda, housewives,
mothers, followers of Baba Ramdev.
 Located on the main road of Jadugoda, which ensures a good amount of traffic.
 The store has a transparent clear glass door which enables the consumer to see what
products they have very clearly, the shop is clean and well lit; they have a grid layout.
 As Patanjali is a well established brand it has campagains, advertisements, social
media platform to promote themselves.
 Word of mouth plays an important role in the store’s promotion.

Consumer Reviews
Consumers seem to be quite satisfied, that’s why they do repeat purchase and being the only
organised store in this locality has added value to the store’s popularity.

RETAIL STORE 7:MEDKART 24

MEDKART Retail Store is a local retail store situated in Patia ,Bhubaneswar.

Type of Retail store: It is a local convenience store.
Ownership:
Retail Process:
Responsiveness: Willingness of the company to help its customers in providing them with a
good quality and fast service. Medkart Retail offers time to time schemes depending on the
customer requirements, to generate enough demand for its products.
Types of Different channel format: Direct selling channel
Direct selling is the marketing and selling of products directly to consumers away from a fixed
retail location. Peddling is the oldest form of direct selling.
Retail store size: 1000 Sqft
Location:Patia,Bhubaneswar
Target Market Segment: It targets all the local people within the area and the households.
Pricing Strategy: They are using value-based pricing.
Value Pricing: Provides Lowest available price without coupon clipping, waiting for
discount promotions or comparison shopping.

Visual Communication – store frontage and retail identity:

Types of Products Maintained & Visual Merchandising at Sulekha offers different types
of merchandise in a wide range of categories of food and grocery items.
 Visual Merchandising decisions are taken by internal staff and the owner based on the
share of cells of a particular brand in that particular category.
 Brands with the highest selling product in a category are displayed at the facade of the
store and the less selling product kept in the backside.
 Products like Maggie, Chocolates are displayed near the cash counter.

Store Planning – Space allocation of the store and store layout:

 Store layout: Grid layout
 Stores are normally ‘L shaped’ and well planned & designed.
 Stores designed like a convenience store giving street shopping experience.

Planogram of Sulekha:
 It shows the placement of retail products on shelves.
 It makes a section more aesthetically appealing to the customer.

Effects of Planograms:
 Satisfying customer with a better visual appeal
 Tighter inventory control and reduction of out of stock
 Better-related product positioning
 Improved sales
 Assign selling potential to every inch of retail space
 Effective communication tool for staff –produced display.

Fixture:
 WALL FIXTURES: To make the store wall merchandisable, and varieties of products
can be fitted into it.
Store Design - Store ambience, lighting, sound, interior design and overall consumer
experience:
The store is spread across the ground floor only. All the items staked very attractively.
All products are kept such a way that the consumer will be able to see easily.

Salesperson management:
 Number of salespersons: 2
 cost of each salesperson: 5000
 recruitment process and training process for salespersons: Random recruitment process.

Retailer Profitability:
- Average Footfall: 200 (approx.)
- Gross Sales: Rs. 1,80,00,000 Approx./Year
- COGS: Rs. 1,40,00,000 approx./Year
- No. of sales annually: 72,000
- Net Sales: Rs. 1,71,00,000 approx./Year
- Gross Margin: 22%
- PAT: Rs. 14,80,000 approx./Year
- Net Margin: 9%
- Sales per Unit: Rs. 2,800
- Efficiency: CR: 5% approx.
- Avg. transaction value: Rs. 237.5
- Sales Return: 5%
- Category wise Sales:
- Grocery: 75%
- Grooming, Hygiene & Sanitary: 15%
- Others: 10%
- GMROI = 1.14
- GMROF = 376.2

RETAIL STORE 8:

NIGAM FASHION & GIFTS

About Nigam Fashion store:
Nigam fashion store situated in Brahmeswar Patna, BBSR. It was established in 2005. It is a
stationery shop except cosmetics, stores have many household products like plastic bottle,
kitchenware and gift items.
Type of Retail store in terms of Format- Departmental store.
1.Retailing Processes- Direct Selling

2.Ownership- Independent Retailer

3.Type of different channel formats, if any- Direct Selling Channel

4.Retail store size- 250 Sq. Ft

5.Location- Brahmeswar Patna and its appropriateness- suitable

6.Product assortment- Cosmetics, House hold items, gift items

7.Their respective target segments- Everyone, Mostly Ladies and youth

8.Private labels, if any – No

9. Pricing Strategy being implemented- Going rate Pricing

10.Various marketing communications used inside the store- Hoardings and Poster of
different cosmetics brands
11.Visual Communication – Advertising of different brand through pamphlet and catalogues

12.Store frontage- Hoarding, Light-weight items & gift items

13.Retail identity- They have the items of good brands and prices are relatively cheaper than
other retail store.
14.Store Planning – Space allocation- of the store and store layout- Grid layout

15. Merchandising – Communicate Layout and different items are displayed together for a
particular product to attract customer and give some discount
16.Store Design - Store ambience, lighting- LED lights,
17.Sound- There is no sound.

18. Interior design and overall consumer experience- Showroom types design and overall
customer satisfied with their behaviour and services. They got all most all cosmetics products
with cheaper price.
19.Salesperson management – Number of salespersons- 2

20.Cost of each salesperson- 6000 per person,

21.Recruitment process and training process for salespersons- sales and marketing skill

22.Innovative use of technology- Advertising by newspaper and hoarding.

23. Retailer Profitability -

The opening inventory of the shop is rupees 8,00,000 annually and the revenue generated by
the shop is rupees 15,00,000 annually. COGS is Rs 10,25,000
The shop has 2 salespersons. Each getting Rs 6,000

• Around 300 people visit the store in one month and mostly all are conversions.

• Footfalls in one month = 300 Footfalls in one year = 12 x 300= 3,600

As mentioned earlier the area of the shop is 250 sq./ft therefore,

• Sales/ft2 = Rs 15,00,000 / 250 ft2 = Rs 6000 /ft2 (approximately)

• Average transaction value = Rs 15,00,000 / 3600 = 416

• The shop has employment cost of Rs 1,44,000

• Sales per person =Rs 7,50,000

RETAIL STORE 9:D -MART

INTRODUCTION

1. It is a Chain of hypermarkets
2. Founder: Radhakishan Damani in 2000
3. Revenue- 15,081.53 Cr (31st March 2018)

TYPE OF RETAIL STORE

It is mainly of 2 types:

1. Supermarket
2. Hypermarket

Target Segment
Middle & Lower Class. All age groups. Tier 1,2,3 cities.
Private Labels:
Few of the private labels are D Mart minimax, Dmart premia, D homes, Dutch Harbour etc.

PRICING STRATEGY
Low Pricing, Heavy Discounts, Daily discount, Daily savings Value-based positioning. Offers
• Low Advertising
• Own buildings
• Bulk buying
• Short Distributor Channel

Various Marketing communications Used inside the store:

• Offers gift coupons to reward its employees and during certain periods to boost its sales
• Coupons allotted to customers when they meet certain standards of bulk purchase
• Discounts offered during festive seasons
Example:10% off on prices of Cadbury products during Raksha Bandhan
• D-Mart also creates brand awareness and visibility through hoardings.

STORE PLANNING:

Visual Merchandising
Visual Merchandising at the entrance:
STORE DESIGN:
It is well lit with proper products at a proper level with proper lighting at proper places.

SALESPERSON MANAGEMENT:

There are 15 salespeople in Dmart and the cost for each employee
is Rs12000. They have a training schedule for 2 months. They are
hired on the basis of previous work experience and personal
Interview.

RETAILER PROFITABILITY

- Average Footfall: 500

- Net Sales: Rs. 450,00,000 Approx./Year
- COGS: Rs. 36000000 approx./Year
- Gross Sales: Rs.436,50,000 approx./Year
- Gross Margin: 20%
- PAT: Rs. 2520000 approx./Year
- Net Margin:5%
- Sales per Unit: Rs. 2400
- Efficiency: CR: 3% approx.
- GMROI = 1.09
- GMROF = 480
 RETAIL STORE : MORE

Retail Process: -

RETAIL STORE SIZE, LOCATION AND APPROPRIATENESS:

The size of the retails store was hypermarket with an approximately size of
3000 square feet. It is a well located and well-lit facility .

Different Format of More:

FORMA STOCKS TRADING(

T Sq.ft)

Grocery Dairy, Fruit, Vegetables, Coffee, Tea, Masalas, 1000

fresh Pickle

Grocery Dry fruits, staples, spices, beverages and 2000

food breakfast items.

Grocery Personal care products to home care & cleaning 3000

non- food

Grocery Homecare products, personal products, Bakery, 2000-4000

lifestyle Baby care products.

Spencer’s Miscellaneous More than

Hyper 2500
TARGET SEGMENT:

1. The target segment for More retails is for all sections of society. More’s
stores are conveniently located in neighborhoods and cater to the daily needs
of families and young adults.
2. The hypermarkets are aimed at attracting families and small businesses to
make large purchases on a weekly or monthly basis.
Working women and homemakers are the targeted segment.

Pricing Strategy:
• More’s private label products were marked down by a significant margin.
• Pricing strategies used for private label products were unique so that they
could not be compared with usual products.
• More promises best in market pricing as it sources fresh fruits, vegetables
and staples directly from Farmers.
• More also generally follows the Value Pricing Strategy.
Advertising and Brand Building Activities
• More uses mass media such as print, radio and outdoor to advertise its
promotional schemes. Television ads are scarcely aired. Social media presence
is very limited.
• Its most popular advertising campaign was ‘Hamesha Extra’ for which it
received many accolades.
• More displays large-sized promotional offers and special offers near the
entrances of its stores.
• There is audio-visual promotion of private label products inside the stores.
• More has color slips based on product pricing.

Visual Communication:
• ‘More’ stores are bright and clean, with grid layouts that allow ease of
navigation.
• The product display is well organized and categorized into sections
allowing ease of choice.
• The stores have been designed by Fitch, the leading international retail
design firm. • The minimum size of a More Supermarket is 2,500 sq. ft. and
that of a More Megastore Hypermarket is 50,000 sq. ft

Merchandising:
1. Barcoding and Scanners Point of Sale (POS) systems use scanners and
bar coding to identify an item, use pre- stored data to calculate the cost and
generate the total bill for a client.
2. Payment through credit cards has become quite widespread and this
enables a fast and easy payment process. Electronic cheque conversion, a
recent development in this area, processes a cheque electronically by
transmitting transaction information to the retailer and consumers bank.
3. Internet is also rapidly evolving as a customer interface, removing the
need of a customer physically visiting the store.
Retailer Profitability:

- Avg. footfall per day: 100 (approx.)

- No. of sales annually: 36,000 (approx.)
- Size: 3000 sq. ft for City Center 2
- Avg. transaction value: Rs. 172.22
- COGS annually: Rs. 57,60,000/-
- Net Sales annually: Rs. 62,00,000/-
- Gross Margin: 4,40,000/-
- Gross margin % = 7%
- Sales per unit of space: 2304/-
- Efficiency: CR: 70%
- Product return rate: 5 %
- Category Wise Sales:
- Grocery: 70%
- Grooming & Cosmetics: 20%
- Stationary: 10%
- GMROI = 1.1
- GMROF= 161.28
 CONCLUSION

Retail Management is the process that encourages the customers to

secure the ideal product from the retail store for their utilization. It
incorporates every one of the means needed to carry the customers into
the store and satisfy their purchasing needs. The above project on retail
management made us understand numerous new things like the current
situation of the food business, the competition between the businesses,
and the effective marketing strategy they are following.
All the 10 food centers which we have taken into consideration are
doing good business in a perfect competition market where their main
target is to be unique among all competitors. So, to be unique the food
centers have their unique pricing strategy which is pocket friendly
so that they can attract more customers and their conversion rate and
revenue will increase by the end of the month. The ambiance, the
sitting place, the interior design, and lighting of these stores are good
where customer can spend their quality time which is an important
part to increase traffic in a large amount.