Retail Industry

Name : Mahesh Chavda PGDM A Roll No - 5

INDEX
Sr. No 1. 2. 3. 4. 5. 6. 7. 8. 9. Topics Introduction Organized & Unorganized retailing in India: Growth drivers in India for retail sector: Employment opportunities in retail sector in India: Conclusion Provogue Questionnaire on Provogue Tata Tea Questionnaire on Tata Tea Page Number 2 3 4 4 5 6 7 9 11

Introduction:
Retailing involves all activities incidental to selling to ultimate consumer for their personnel family and household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is any person/organization instrumental in reaching the goods or merchandise or services to the end users. Retailer is a must and cannot be eliminated. The Indian retailing industry is becoming intensely competitive, as more and more payers are targeting for the same set of customers. The major retail players are Pantaloon Retail, Shoppers Stop, Reliance, etc.., Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in growth stage in 2008. India's retail market is expected to grow tremendously in next few years. Retail market is expected to grow 10% a year, with modern retailing just beginning. This window of opportunity is useful for executives who plan their market-specific strategies; the four stages or the lifecycle of this industry are as follows:

Growth:
In growth stage, the market is developing quickly and also ready for modern retailing. Countries, which are in Peaking stage such as India. Retailers entering this stage have the best chance for long-term success. Retailers at this stage should enter through local representations, sourcing offices and new stores. Strategy suggested: The strategy of adopting quality and styled products with new models and shift of advertising from product awareness to product preference .The idea behind adopting this strategy is to strengthen against competitors.

Maturity:
In this stage the market is still big and growing, but the space for new entrants will become tighter and retailers should act quickly at this stage because retailers at this stage have limited time to explore, and also their margin for error is thin. In general, they should act according to the established rules and should be open to face the competition from international retailers. This stage generally lasts longer than the previous two stages. Strategy suggested: Enter new market segments that is either enter new geographic areas or introduce new and innovative products and offers.

Decline:
The window of opportunity is closing fast and modern retail share is reaching 40 to 60 percent. Though the opportunity is closing the existing retailers can enter with new formats such as discount models or non-food formats such as consumer electronics and apparel. Window of opportunity ends for about 5 to 10years before a market enters the closing phase and reaches saturation level. India for example, was in the opening stage in 1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005. Strategy suggested: Identifying weak segments, maintaining investment level selectively.

Unorganized retailing in India:

In India, the most of the retail sector is unorganized. In India, the retail business contributes around 11 percent of GDP. Of this, the organized retail sector accounts only for about 3 percent share, and the remaining share is contributed by the unorganized sector which is mostly a family owned business in India. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a low cost structure; they are mostly operated by owners, has very low real estate and labour costs and has low taxes to pay.

Organized 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. 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 by 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. The organized sector is expected to grow faster than GDP growth in next few years driven by favourable demographic patterns, changing lifestyles, and strong income growth. This organized retail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores.

Growth drivers in India for retail sector:

Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Liberalization of the Indian economy Increase in spending per capita Income. Advent of dual income families also helps in the growth of retail sector. Shift in consumer demand to foreign brands. Consumer preference for shopping in new environs. The Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. The increasing share of young population in total population of India. Availability of quality real estate and mall management practices Foreign companies' attraction to India is the billion-plus population.

Employment opportunities in retail sector in India:

India's retail industry is the second largest sector, after agriculture, which provides employment. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the retail sector will create 50,000 jobs in next few years. Retail companies are starting retail management courses in partnership with management institutes, roping in talent from other sectors and developing comprehensive career growth and loyalty plans for existing employees. Trent has also started in-house learning programmes and now goes to under graduate colleges to recruit students. Since, the job market is hugely receptive to this with more and more business schools focusing on the sector and large retailers setting up retail academics. Challenges of Retailing in India

In India the Retailing industry has a long way to go, and to become a truly flourishing industry, retailing needs to cross the following hurdles:
The first challenge facing the organized retail sector is the competition from unorganized sector. In retail sector, Automatic approval is not allowed for foreign investment. Taxation, which favours small retail businesses. Lack of trained work force. Low skill level for retailing management. Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low margins. Organized retail sector has to pay huge taxes, which is negligible for small retail business. Cost of business operations is very high in India.
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Conclusion:
Many agencies have estimated differently about the size of organized retail market in 2010. The one thing that is common amongst these estimates is that Indian organized retail market will be very big in 2010. The status of the retail industry will depend mostly on external factors like Government regulations and policies and real estate prices, besides the activities of retailers and demands of the customers also show impact on retail industry. As the retail market place changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore it is important for retailers to secure a distinctive position in the market place based on values relationships or experience. Finally it is important to note that these strategies are not strictly independent of each other; value is function of not just price quality and service but can also be enhanced by personalization and offering a memorable experience.

Questionnaire: Name: Suresh Menon Designation: Store Manager Company: Provogue

Provogue is a Mumbai based Indian company incorporated on November 11, 1997 asAcme Clothing Private Limited. The brand Provogue was launched in March 1998and is currently one of the biggest retail apparel brands in India based in Mumbai.] As of March 31, 2009, Provogue fashions and accessories were available across 126 Provogue stores and 110 shop-in shops They have a subsidiary called Prozone which recently got funded from Liberty International. Prozone is a chain of malls initiated by provogue. The first shopping mall is scheduled for launch in May 2010. After the launch, Prozone mall in Aurangabad will be one of the largest mall in the country in terms of size and Gross Leasable Area. Mukesh Ambani an Indian business magnate and chairman of Indian conglomerateReliance Industries buys Provogue shirts often, so the company makes shirts in his size in various colours..

1. When a customer complains that the Apparel is not upto her expectation , what would you do? I offer to have a look on the other shelves to the customer. I take the complaint seriously. I normally offer her the option of trying another one, as this one may not have been to her taste. 2. What according to you is good customer service? Good customer service means having thorough knowledge of your inventory, experience with your products, and being able to help customers make the best choices for them. It's one of the things that can set your business apart from the others of it's kind.

3. How do you manage your co-worker when they are rude to customers? I normally try to set a good example, by being courteous and helpful to the customers and my co-workers. I try to get friendly with them, and see if there is something going on that is making him unhappy. I dont want to be a snitch, but a store's reputation depends largely on it's customer service, and rude sales associates can create a negative impact on that reputation. 4. What is most important - a good product or friendly, fast service? Both are extremely important. A good product is essential, but without the customer service to back it up, there is no reason for someone to buy it here as opposed to somewhere else or on line. Fast, friendly service can make a bargain product that much more attractive to customers. A superior product will speak for itself, and friendly, efficient customer service is what will set us apart from the competition. 5. What is customer service to you? It includes trying your best to make sure that the customer is satisfied.Customer service is being friendly and helpful to customers.Customer service is helping customers satisfy the need that brought them into the store

6. In a fashion led clothing industry as a retailer, who would be your targeted customer? my target customer are fashion conscious young people, typically between the age of 18 to 35, who would want to dress well and can spend money on that. Actually, there is no age limit as fashion is a state of mind; anybody can retain it for whatever age. However, easily targeted customers would be of this age people.

7. As a Store manager, how do you plan your financials for your budget? I analyze actual spend vs. forecast and plan future sales and retail storage. Provide sales adjustments/discounts reporting and analysis, which could be helpful in further analysis of the business. As a manager I ensure, that I keep a track of all the finances and expenses incurred during the process of transportation, salaries and wages of drivers and other helpers in loading and unloading the goods and services. Maintain a ledger for the cost involved in storage and maintenance of goods and services.

8. What are your ideas on handling store management? Store management is a very critical thing, especially if you are not able to transport everything on the same day or a given deadline; you need to store the goods and services properly until it is transported to the correct destination or to the proper retailer. It involves managing and refining the goods, forecasting the process, inventory and product strategies, and their impact on store level performance 9. How would you ensure that all the goods and services are being transported properly from wholesale market to retail market? I directly supervise and co-ordinate the transportation activities and material moving machine and vehicle operators and take a physical count of the goods being transported and check with the actual numbers. I also keep a track of the retailer suppliers for the exact number of goods and services being transported. 10. What are the things that you need to check in a retail market, as a store manager? As a store manager I directly manage the sales workers in my store. I get involved in management functions such as purchasing, budgeting, accounting and ensure quality of supply apart from my regular supervisor work. 11. How do you get more customers for your business? What are the steps you would take? Being in a lucrative market, Promotional activities like posters, contests, coupons, give-away to create extra interest in the purchase of a product or services from customers. 12. As a supervisor for a wholesale market, what actions would you take to increase the profit? I Oversee the distribution of merchandize to different outlets and maintain adequate stock levels. Establish a good rapport with suppliers and supervise the retail outlet markets to get a better knowledge of supply chain management which automatically increases my profit. 13. Is there any effect of seasonal festivals on sales? Yes, there is a defintate good and positive impact of seasons in our sales. It directly increases our sales double further increasing our profits and thus our incentives 14. Which method of controlling stock in your showroom? We use Periodic review system for controlling our stock. 15. What are the factors on which you decide the visibility of the Apparels? Its basically predetermined, The newest trend in the industry is made visible to the customers to attract them.

Questionnaire: Name: Lokesh .k Designation: Store Manager Company: Retail Shop

Tata Global Beverages Limited (formerly Tata Tea Limited) is a multinational non-alcoholic beverages company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee. Tata Global Beverages markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMA. Tata Tea is the biggest-selling tea brand in India, Tetley is the biggest-selling tea brand in the United Kingdom and Canada and the second biggest-selling in theUnited States and JEMA is the biggest-selling tea brand in the Czech Republic

'Superbrand' status and 2nd most trusted beverage brand in India This year Tata Tea Celebrates its 25th year, which has been brought to life in a number of brand communications Market leader measured by volume and value branded packet tea Successful across India with 4 national and 3 regional brands Has transformed the way beverages are marketed by positioning tea as a catalyst for social change Promotes social awakening and action through its landmark 'Jaago Re' marketing campaigns Tata Tea began a journey with this spirit 25 years ago, when the packaged tea market was dominated by one large player with over 70% market share. While most saw entering this market as an almost impossible task, Tata Tea saw an opportunity. Tata Tea has evolved from being a brand that promised freshness of the tea gardens, to a brand that awakens every Indian. We have come to stand for a way of life to our consumers. The brand enjoys almost 'legendary' status in India as a trusted 'Superbrand' that not only enjoys market leadership in branded packet tea, but has also transformed the way beverages are marketed through its 'Jaago Re' campaigns. Tata Tea has promoted social awakening and action encouraging young people to vote, inviting consumers to pledge against bribery and through www.jaagore.com bringing citizen volunteers together with 70+ NGOs to give their time for a range of good causes. The brand has also initiated the Arsenal Tata Tea Jaago Re Soccer Stars program. This is a unique soccer tournament which promotes soccer among school children and helps talented young soccer players in India to access the best in terms of infrastructure, training and above all an International platform to exhibit India's future talent.

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1. What is the name of the brand? The name of the brand is TATA TEA. 2. What is the product line? The Product line is Hot beverages. Tata Tea Gold new aromas, new packaging and new marketing make this the fastest grower in our portfolio Tata Tea Agni still the economy tea of choice in India despite fierce competition from unbranded rivals Life the tea that helps you get more out of every day. Life is still a firm favourite for the busy modern day lifestyle Tata Tea Gold Darjeeling our Darjeeling alternative is winning rave reviews from premium tea enthusiasts Chakra Gold - the tea that opens you up is a leading premium brand in Andhra Pradesh Gemini the undisputed market leader in Andhra Pradesh, achieving impressive year on year growth Kanan Devan - infused with the freshness of the Kannan Devan hills , it is a leading brand in Kerala 3. Which is the most selling variety in the product ? The most selling Variety in this product line is Tata Tea Premium our flagship and the largest tea brand and volume leader in india with over 18 per cent volume share

4. Which packaging size sells more in your store? Usually housewives come for the purchasing of the houseold grocery so they go for the 250 gm packet most of the times. 5. Who is your distributor? Super Enterprises M N Dsouza Compound, Behind Solo India Company Sakinaka, Kherani Road, Andheri East, Mumbai 400072 6. Do you use any strategies to increase the profit? Usually we give discounts to attract our customers. This is the startergy that we have been using since long. And is very successful thus increasing our profit .

7. Who is the potential customer for the brand? (age Group)? The Target group is almost all the customers. Tea being the daily consumption beverage is consumed the highest. 8. Does company allocate shelf space for the product? Its we only who do it ourselves. We place it according to our space availability.

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9. If any schemes, brand initiates or retailer does? Normallt whatever brand initiates we follow, But to remove the product before their expiry dates we club it in pack of Combos to sell it faster. And to your surprise it does works. 10. Is there any seasonal effect in the sales of the product? No, Not really but only during winter season the sales of hot beverages rises. The sales are a bit higher in winter and during rains to. 11. How do you manage any problems faced by your consumers? We normally dont receive any such problems because we pay full attention to the handling of the products. But in case of Tampering or Seal broken we replace the psck instantly. The tampered products are returned back to the company with the products which are expired. 12. If the product gets expired what do you do with it? The Expired products are returned back to the company. 13. How much do you sell in a month? Normally we sell 150Packets of the Tata tea 250gms in one month. 14. What is the product margin? The profit margin that we earn is about Rs. 5/ Packet. 15. What is the price of the packet?

Tata Tea... Rs 318

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