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CHAPTER-I
INTRODUCTION
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1INTRODUCTION
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 asdelivery. Purchasers may be individuals or businesses. n commerce, a !retailer! buys
goods or products in large quantities from manufacturers or importers, either directly or
through a "holesaler , 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. $he term !retailer! is also applied "here a service provider
services the needs of a large number of individuals, such as a public utility, like electric
po"er .
Shops may be on residential streets, shopping streets "ith fe" 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. %nline retailing, a
type of electronic commerce used for business#to#consumer &'()* transactions and mail
order , are forms of non#shop 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 "indo" shopping &ust looking, not buying* and
bro"sing and does not al"ays result in a purchase.
• n contrast, players in the organi-ed sector have big expenses to meet, and yet
have to keep prices lo" enough to be able to compete "ith the traditional sector.
igh costs for the organi-ed sector arises from/ higher labor costs, social security
to employees, high quality real estate, much bigger premises, comfort facilities
such as air#conditioning, back#up po"er supply, taxes etc. %rgani-ed retailing also
has to cope "ith the middle class psychology that the bigger and brighter sales
outlet is, the more expensive it "ill be.
• $he above should not be seen as a gloomy foreboding from global retail
operators. nternational retail maors such as 'enetton, 0airy 1arm and 2evis
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have already entered the market. 2ifestyles in ndia are changing and the concept
of !value for money! is picking up.
• ndia4s first true shopping mall 5 complete "ith food courts, recreation facilities
and large car parking space 5 "as inaugurated as lately as in 777 in Mumbai.
&$his mall is called !)rossroads!*.
• 2ocal companies and local#foreign oint ventures are expected to more
advantageously position than the purely foreign ones in the fledgling organi-ed
ndia4s retailing industry.
• $hese dra"backs present opportunity to international and8or professionally
managed ndian corporations to pioneer a modern retailing industry in ndia and
benefit from it.
• $he prospects are very encouraging. $he first steps to"ards sophisticated retailing
are being taken, and !)rossroads! is the best example of this a"akening. More
such malls have been planned in the other big cities of ndia.
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STATEMENT OF THE PROBLEM:
1rom the days of industrial revolution "hen goods : services "ere produced to the
present day, the emphasis has shifted from the producers to the consumer and his needs, and "ith
the consumer becoming more involved, in the marketing process there is greater need for information regarding the consumer needs. Preferences and making them satisfied of the products
: services, has led to a constant but increasing need to conduct marketing research.
$his research is an insight into the mind of the consumer, "ith the help of "hich the
organi-ations "ill become a"are of their pitfalls and in turn can also make improvements in the
product regarding the level of satisfaction of the consumers to"ards their offerings in the market
place.
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RESEARCH OBJECTIVES
• $o study the ;Retail Marketing Strategies< amongst the users of
;eritage< products.
• $o study the =satisfaction> levels of ;eritage< retail customers
:eritage ?gro and 0airy customers.
• $o make suggestions for improvement of their products : their services
from the customer>s point of vie" based on this research to fulfill
customer>s needs.
•$o ascertain the role of media ito"ards the diversified portfolio of
eritage retail products.
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SCOPE OF THE STUDY
• $he scope of proect "ork is to get the opinions from respondents on the issues
mentioned earlier.
• t is limited to the t"in cities of yderabad and is confined to the urban areas as the
respondents are the subscribers of eritage services is one form or the other.
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RESEARCH METHODOLOGY
Research in common pursuance refers to a search for kno"ledge in a scientific and
systematic "ay for pursuant information on a specified topic.
%nce the obective is identified that next step is to collect the data "hich is relevance to
the problem identified and analy-e the collected data in order to find out the hidden reasons for
the problem. $here are t"o types of data namely.
• Primary 0ata
• Secondary 0ata
1. PRIMARY DATA
Primary data is to be collected by the concerned proect researcher "ith relevance to his
problem. So the primary data is original in nature and is collected first hand.
Clle!ti" # $%i&a%' (ata
$here are several methods of collecting primary data particularly in surveys and
descriptive researches. mportant ones are as follo"s/
• %bservation Method
• ntervie" Method
• Auestionnaire
• Schedules and
• %ther methods "hich include
• Barranty needs
• 0istributor audits
• Pantry audits
• )onsumer panels
• Csing mechanical devices
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• $hrough proective techniques
• n depth intervie"s and
1) OBSERVATION METHOD:
t is the most commonly used methods especially in studies relating to behavioral
sciences. $his method implies the collection of information by "ay of investigators o"n
observation, "ithout intervie"ing the respondents. $he information obtained relates to "hat is
currently happening and is not complicated by either the past behavior or future intentions or
attitudes of respondents.
*) INTERVIE+ METHOD
$he intervie" method of collecting data involves presentation of oral, verbal stimuli and
reply in terms of oral#verbal responses. $his method can be used through personal intervie" and,
if possible, through telephone intervie".
Pe%,"al I"te%ie
$he method of collecting information through personal intervie" is usually carried out in
a structured "ay. ?s such "e call this intervie" as structured intervie"s. Such intervie"s involve
the use of a set of predetermined questions and of highly standardi-ed techniques of recording.
$hus, the intervie"er in a structured intervie" follo"s a rigid procedure laid do"n, asking
questions in a given format and the order prescribed. ?s against it, the unstructured intervie"s are
characteri-ed by flexibility of approach to questioning. Cnstructured intervie"s do not follo" a
system of pre#determined questions and standardi-ed techniques of recording information.
/) 0UESTIONNAIRE
$he researcher and the respondents do come in contact "ith each other if this method of
survey is adopted. Auestionnaires are mailed to the respondents "ith a request to return after
completing the same. t is the most extensively used method in various economic and business
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surveys : research. Auestionnaire to be used must be prepared very carefully so that it may prove
to be effective in collecting the relevant information.
St%!t%e( 2e,ti""ai%e
Csing structured questionnaire method, "hich contains close#ended questions, collected
the primary data "ith respect the problem chosen. $he questions have some options, from "hich
the respondents have to choose a choice. ?s the ans"ers lie "ithin a specified range they are
called close#ended questions.
%pen#ended questions are those questions "here no choices are given to respondents and
respondents are free to express their choice or ans"er.
$he follo"ing sampling method "as used.
Sa&$li"3:
? non#probability conclusive sampling method "as used in the study for data collection.
Sa&$le ,i4e:
$he sample "as taken from the universe on random sampling basis in yderabad. $he
sample si-e designed for this proect is @@ keeping in mind the paucity of time and also the
customer base of the organi-ation in the research area.
Re,ea%!5 Met5(l3'
? structured questionnaire "as prepared and presented to the respondents and related
questions "ere asked. Auestionnaires mainly contained close#ended questions and a fe" open
ended questions, to identify the reasons for Retail management : their dissatisfaction.
Se!"(a%' (ata
t is the data already existing, "hich has gone through some standard analysis. Cnder the
secondary data, the company>s annual reports, broachers, pamphlets, ne"spapers, ournals and
internet "ere taken into consideration.
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LIMITATION OF THE PROJECT STUDY
• $he present research is restricted to the t"in cities of yderabad city only.
• $he sample si-e taken is only @@ and as such is very small as compared to
the universe, this is due to the constraints of time and effort, and as such may
not be enough to generali-e to the entire population, ho"ever it is presumed
that the sample represents the universe.
• Respondents might have responded "ith the actual feelings of facts "hile
giving responses to the questionnaire.
• $ime being a limiting factor "as not sufficient to gather opinions from
maority of the respondents, "ho form part of the universal sample.
• Bhile every care as been taken to eliminate perceptual bias from the side of
the researcher and the respondents ho"ever certain element of bias might
have set in to the research inadverantly.
• Since this study concentrated on eritage no attempt "as made to study
other activities of the organi-ation. Such as finance, human resource
management etc.,
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CHAPTER-II
REVIE+ LITERATURE
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REVIE+ LITERATURE:
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. n commerce, a !retailer! buys
goods or products in large quantities from manufacturers or importers, either directly or
through a "holesaler , 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. $he term !retailer! is also applied "here a service provider
services the needs of a large number of individuals, such as a public utility, like electric
po"er .
Shops may be on residential streets, shopping streets "ith fe" 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. %nline retailing, a
type of electronic commerce used for business#to#consumer &'()* transactions and mail
order , are forms of non#shop retailing.
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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 "indo" shopping &ust looking, not buying* and
bro"sing and does not al"ays result in a purchase.
Et'&l3'
Retail comes from the 1rench "ord retailer , "hich refers to !cutting off my hands, clip
and divide! in terms of tailoring &D6F*. t first "as recorded as a noun "ith the meaning
of a !sale in small quantities! in EDD &1rench*. ts literal meaning for retail "as to !cut
off, shred, off my toes paring!. 2ike the 1rench, the "ord retail in both 0utch and
German &detail Handel and Einzelhandel respectively*, also refers to the sale of small
quantities of items.
Retail $%i!i"3
$he pricing technique used by most retailers is cost#plus pricing. $his involves adding a
markup amount &or percentage* to the retailer4s cost. ?nother common technique is
suggested retail pricing. $his simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer.
n Bestern countries, retail prices are often called psychological prices or (( $%i!e,.
%ften prices are fixed and displayed on signs or labels. ?lternatively, "hen prices are not
clearly displayed, there can be price discrimination, "here the sale price is dependent
upon "hich the customer is. 1or example, a customer may have to pay more if the seller
determines that he or she is "illing and8or able to. ?nother example "ould be the practice
of discounting for youths, students, or senior citi-ens.
T%a",#e% &e!5a"i,&
$here are several "ays in "hich consumers can receive goods from a retailer/
• )ounter service, "here goods are out of reach of buyers and must be obtained
from the seller. $his type of retail is common for small expensive items &e.g.
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e"elry* and controlled items like medicine and liquor. t "as common before the
7@@s in the Cnited States and is more common in certain countries.
• 0elivery, "here goods are shipped directly to consumer4s homes or "orkplaces.
Mail order from a printed catalog "as invented in 3EE and "as common in the
late 7th and early (@th centuries. %rdering by telephone is no" common, either
from a catalog, ne"spaper, television advertisement or a local restaurant menu,
for immediate service &especially for pi--a delivery*. 0irect marketing, including
telemarketing and television shopping channels, are also used to generate
telephone orders. %nline shopping started gaining significant market share in
developed countries in the (@@@s.
•0oor#to#door sales, "here the salesperson sometimes travels "ith the goods for
sale.
• Self#service, "here goods may be handled and examined prior to purchase
Se!"( 5a"( %etail
Some shops sell second#hand goods. n the case of a nonprofit shop, the public donates
goods to the shop to be sold. n give#a"ay shops goods can be taken for free.
?nother form is the pa"nshop, in "hich goods are sold that "ere used as collateral for
loans. $here are also !consignment! shops, "hich are "here a person can place an item in
a store and if it sells, the person gives the shop o"ner a percentage of the sale price. $he
advantage of selling an item this "ay is that the established shop gives the item exposure
to more potential buyers.
Sale, te!5"i2e,
'ehind the scenes at retail, there is another factor at "ork. )orporations and independentstore o"ners alike are al"ays trying to get the edge on their competitors. %ne "ay to do
this is to hire a merchandising solutions company to design custom store displays that
"ill attract more customers in a certain demographic. $he nation4s largest retailers spend
millions every year on in#store marketing programs that correspond to seasonal and
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promotional changes. ?s products change, so "ill a retail landscape. Retailers can also
use facing techniques to create the look of a perfectly stocked store, even "hen it is not.
? (e,ti"ati" ,t%e is one that customers "ill initiate a trip specifically to visit,
sometimes over a large area. $hese stores are often used to !anchor ! a shopping mall or pla-a, generating foot traffic, "hich is capitali-ed upon by smaller retailers.
C,t&e% ,e%i!e
?ccording to the book Discovery, customer service is the !sum of acts and elements that
allo" consumers to receive "hat they need or desire from your retail establishment.! t is
important for a sales associate to greet the customer and make himself available to help
the customer find "hatever he needs. Bhen a customer enters the store, it is important
that the sales associate does everything in his po"er to make the customer feel
"elcomed, important, and make sure he leave the store satisfied. Giving the customer
full, undivided attention and helping him find "hat he is looking for "ill contribute to the
customer4s satisfaction.
Retail Sale,
$he Retail Sale, report is published every month. t is a measure of consumer spending,
an important indicator of the CS G0P. Retail firms provide data on the dollar value of
their retail sales and inventories. ? sample of (,@@@ firms is included in the final survey
and F,@@@ in the advanced one. $he advanced estimated data is based on a sub sample
from the CS )' complete retail : food services sample.
Retailing is one of the pillars of the economy in ndia and accounts for DH of G0P.
$he retail industry is divided into organi-ed and unorgani-ed sectors. %ver ( million
outlets operate in the country and only EH of them being larger than F@@ sq ft &E6 m(* in
si-e. %rgani-ed retailing refers to trading activities undertaken by licensed retailers, that
is, those "ho are registered for sales tax, income tax, etc. $hese include the corporate#
backed hypermarkets and retail chains, and also the privately o"ned large retail
businesses. Cnorgani-ed retailing, on the other hand, refers to the traditional formats of
lo"#cost retailing, for example, the local kirana shops, o"ner manned general stores,
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paan8beedi shops, convenience stores, hand cart and pavement vendors, etc. n ndia, a
shopkeeper of such kind of shops is usually kno"n as a dukandar.
Most ndian shopping takes place in open markets and millions of independent grocery
shops called kirana. %rgani-ed retail such supermarkets accounts for ust EH of themarket as of (@@9. Regulations prevent most foreign investment in retailing. Moreover,
over thirty regulations such as !signboard licenses! and !anti#hoarding measures! may
have to be complied before a store can open doors. $here are taxes for moving goods to
states, from states, and even "ithin states.
G%t5
?n increasing number of people in ndia are turning to the services sector for
employment due to the relative lo" compensation offered by the traditional agriculture
and manufacturing sectors. $he organi-ed retail market is gro"ing at DF percent annually
"hile gro"th of unorgani-ed retail sector is pegged at 6 percent.
$he Retail 'usiness in ndia is currently at the point of inflection. Rapid change "ith
investments to the tune of CS I (F billion is being planned by several ndian and
multinational companies in the next F years. t is a huge industry in terms of si-e and
according to management consulting firm $echnopak ?dvisors Pvt. 2td., it is valued at
about CS I DF@ billion. %rgani-ed retail is expected to garner about 6#9 percent of the
total retail market &CS I 6F#3F billion* in the next F years.
ndia has topped the ?.$. Jearney>s annual Global Retail 0evelopment ndex &GR0* for
the third consecutive year, maintaining its position as the most attractive market for retail
investment. $he ndian economy has registered a gro"th of 9H for (@@3. $he predictions
for (@@9 are 3.7H.$he enormous gro"th of the retail industry has created a huge demand
for real estate. Property developers are creating retail real estate at an aggressive pace and
by (@@, D@@ malls are estimated to be operational in the country.
Bith over ,@@@ hypermarkets and D,@@@ supermarkets proected to come up by (@,
ndia "ill need additional retail space of 3@@,@@@,@@@ sq ft &6F,@@@,@@@ m(* as compared
to today. )urrent proections on construction point to a supply of ust (@@,@@@,@@@ sq ft
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&7,@@@,@@@ m(*, leaving a gap of F@@,@@@,@@@ sq ft &E6,@@@,@@@ m(* that needs to be
filled, at a cost of CSIF59 billion.
?ccording to the crier report, the retail business in ndia is estimated to gro" at DH
from ID(( billion in (@@6#@3 to IF7@ billion in (@#(. $he unorgani-ed retail sector isexpected to gro" at about @H per annum "ith sales expected to rise from I D@7 billion
in (@@6#@3 to I E76 billion in (@#(.
T5e I"(ia" Retail Ma%6et
ndian market has high complexities in terms of a "ide geographic spread and distinctconsumer preferences varying by each region necessitating a need for locali-ation even
"ithin the geographic -ones. ndia has highest number of outlets per person &3 per
thousand* ndian retail space per capita at ( sq ft &@.7 m(*8 person is lo"est in the "orld
ndian retail density of 6 percent is highest in the "orld. .9 million ouseholds in ndia
have an annual income of over EF lakh &CSI73,6F@*.
0elving further into consumer buying habits, purchase decisions can be separated into
t"o categories/ status#oriented and indulgence#oriented. )$Ks82)0s, refrigerators,"ashing machines, dish"ashers, micro"ave ovens and 0K0 players fall in the status
category. ndulgence#oriented products include plasma $Ks, state#of#the#art home theatre
systems, iPods, high#end digital cameras, camcorders, and gaming consoles. )onsumers
in the status category buy because they need to maintain a position in their social group.
ndulgence#oriented buying happens "ith those "ho "ant to enoy life better "ith
products that meet their requirements. Bhen it comes to the festival shopping season, it is
primarily the status#oriented segment that contributes largely to the retailer>s cash
register.
Bhile ndia presents a large market opportunity given the number and increasing
purchasing po"er of consumers, there are significant challenges as "ell given that over
7@H of trade is conducted through independent local stores. )hallenges include/
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Geographically dispersed population, small ticket si-es, complex distribution net"ork,
and little use of $ systems, limitations of mass media and existence of counterfeit goods.
Ma7% I"(ia" Retaile%,
ndian apparel retailers are increasing their brand presence overseas, particularly in
developed markets. Bhile most have identified a gap in countries in Best ?sia and
?frica, some maors are also looking at the CS and Lurope. ?rvind 'rands, Madura
Garments, Spykar 2ifestyle and Royal )lassic Polo are busy chalking out foreign
expansion plans through the distribution route and standalone stores as "ell. ?nother
denim "ear brand, Spykar, "hich is no" moving to"ards becoming a casual"ear
lifestyle brand, has launched its store in Melbourne recently. t plans to open three stores
in 2ondon by (@@9#end.
$he lo"#intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. $he Mahindra Group is the fourth largest ndian
business group to enter the business of retail after Reliance ndustries 2td, the ?ditya
'irla Group, and 'harti Lnterprises 2td. $he other three groups are focusing either on
perishables and groceries, or a range of products, or both.
• ext retail ndia 2td &)onsumer Llectronics*&""".next.co.in*
• Kivek 2imited Retail 1ormats/ Kiveks, Nainsons, Kiveks Service )entre, Kiveks
Safe 0eposit 2ockers
• PG) Retail #$#Mart ndia, S"itcher , Respect ndia , Grand ndia 'a-aar ,etc.,
• RL ?GR% 2$0 Retail#1ormats/6$L yper : 6$L Super
• RPG Retail#1ormats/ Music Borld, 'ooks : 'eyond, Spencer>s yper, Spencer>s
Super, 0aily : 1resh
• Pantaloon Retail#1ormats/ 'ig 'a-aar, 1ood 'a-aar, Pantaloons, )entral, 1ashion
Station, 'rand 1actory, 0epot, a22, L#Oone etc.
• $he $ata Group#1ormats/ Bestside, Star ndia 'a-aar, Steel unction, 2andmark,
$itan ndustries "ith Borld of $itans sho"rooms, $anishq outlets, )hroma.
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• J Rahea )orp Group#1ormats/ Shoppers Stop, )ross"ord, yper )ity, norbit
Mall
• 2ifestyle nternational#2ifestyle, ome )entre, Max, 1un )ity and nternational
1ranchise brand stores.
• Pyramid Retail#1ormats/ Pyramid Megastore, $ruMart
• ilgiri>s#1ormats/ ilgiris> supermarket chain
• Subhiksha#1ormats/ Subhiksha supermarket pharmacy and telecom discount
chain.
• $rinethra# 1ormats/ 1abmall supermarket chain and 1abcity hypermarket chain
• Kishal Retail Group#1ormats/ Kishal Mega Mart
• 'P)2#1ormats/ n : %ut
• Reliance Retail#1ormats/ Reliance 1resh
• Reliance ?0?G Retail#1ormat/ Reliance Borld
• German Metro )ash : )arry
• Shoprite oldings#1ormats/ Shoprite yper
• Paritala stores ba-ar/ honey shine stores
• ?ditya 'irla Group # more %utlets
• Japas# )otton garment outlets
E"t%' # MNC,
$he "orld4s largest retailer by sales, Bal#Mart Stores nc and Sunil Mittal4s 'harti
Lnterprises have entered into a oint venture agreement and they are planning to open @
to F cash#and#carry facilities over seven years. $he first of the stores, "hich "ill sell
groceries, consumer appliances and fruits and vegetables to retailers and small
businesses, is slated to open in north ndia by the end of (@@9.
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)arrefour , the "orld>s second largest retailer by sales, is planning to setup t"o business
entities in the country one for its cash#and#carry business and the other a master
franchisee "hich "ill lend its banner, technical services and kno" ho" to an ndian
company for direct#to#consumer retail.
$he "orld>s fifth largest retailer by sales, )ostco Bholesale )orp &)ostco* kno"n for its
"arehouse club model is also interested in coming to ndia and "aiting for the right
opportunity.
%pposition to the retailers4 plans have argued that livelihoods of small scale and rural
vendors "ould be threatened. o"ever, studies have found that only a limited number of
small vendors "ill be affected and that the benefits of market expansion far out"eigh the
impact of the ne" stores.
$esco Plc. plans to set up shop in ndia "ith a "holesale cash#and#carry business and "ill
help ndian conglomerate $ata group to gro" its hypermarket business. &7*
C5alle"3e,
$o become a truly flourishing industry, retailing needs to cross the follo"ing hurdles/
• ?utomatic approval is not allo"ed for foreign investment in retail.
• Regulations restricting real estate purchases, and cumbersome local la"s.
• $axation, "hich favors small retail businesses.
• ?bsence of developed supply chain and integrated $ management.
• 2ack of trained "ork force.
• 2o" skill level for retailing management.
• 2ack of Retailing )ourses and study options
• ntrinsic complexity of retailing 5 rapid price changes, constant threat of product
obsolescence and lo" margins.
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$o overcome some of the challenges faced by modern retail, the country is developing a
support infrastructure in form of speciali-ed retail schools. %ne such skill development
initiative has been taken by $JBs Group. ts $JBs Retail School has already training
over a thousand students and retail professionals for different retail skills. $JBs Retail
School is also associated "ith government proects like enhancing retail experience of
foreign tourists, improving retail of handicraft and local produce, skill development of
village youth.
? ,$e%&a%6et, a form of 3%!e%' ,t%e, is a self#service store offering a "ide variety of
food and household merchandise, organi-ed into departments. t is larger in si-e and has a
"ider selection than a traditional grocery store, also selling items typically found in a
convenience store, but is smaller and more limited in the range of merchandise than a
hypermarket or big#box store.
$he supermarket typically comprises meat, fresh produce, dairy, and baked goods
departments, along "ith shelf space reserved for canned and packaged goods as "ell as
for various non#food items such as household cleaners, pharmacy products and pet
supplies. Most supermarkets also sell a variety of other household products that are
consumed regularly, such as alcohol &"here permitted*, medicine, and clothes, and some
stores sell a much "ider range of non#food products.
$he traditional suburban supermarket occupies a large amount of floor space, usually on
a single level. t is usually situated near a residential area in order to be convenient to
consumers. ts basic appeal is the availability of a broad selection of goods under a single
roof, at relatively lo" prices. %ther advantages include ease of parking and frequently the
convenience of shopping hours that extend far into the evening or even (E hours a day.
Supermarkets usually allocate large budgets to advertising, typically through ne"spapers.
$hey also present elaborate in#store displays of products. $he stores are usually part of
corporate chains that o"n or control &sometimes by franchise* other supermarkets located
nearbyeven transnationalthus increasing opportunities for economies of scale.
Supermarkets typically are supplied by the distribution centers of their parent companies,
such as 2obla" )ompanies in )anada, "hich operates thousands of supermarkets across
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the nation. 2obla" operates a distribution centre in every province usually in the largest
city in the province.
Supermarkets usually offer products at lo" prices by reducing their economic margins.
)ertain products &typically staple foods such as bread, milk and sugar * are occasionallysold as loss leaders, that is, "ith negative profit margins. $o maintain a profit,
supermarkets attempt to make up for the lo"er margins by a higher overall volume of
sales, and "ith the sale of higher#margin items. )ustomers usually shop by placing their
selected merchandise into shopping carts &trolleys* or baskets &self#service* and pay for
the merchandise at the check#out. ?t present, many supermarket chains are attempting to
further reduce labor costs by shifting to self#service check#out machines, "here a single
employee can oversee a group of four or five machines at once, assisting multiple
customers at a time.
? larger full#service supermarket combined "ith a department store is sometimes kno"n
as a hypermarket. %ther services offered at some supermarkets may include those of
banks, cafQs, childcare centres8creches, photo processing, video rentals, pharmacies
and8or petrol stations.
G%t5 i" (eel$i"3 !"t%ie,
$here has been a rapid transformation of the food retail sector in developing countries,
beginning in the 77@s. $his applies particularly to 2atin ?merica, South#Last ?sia,
)hina and South ?frica. o"ever, gro"th is being "itnessed in nearly all countries. Bith
gro"th, has come considerable competition and some amount of consolidation. $he
gro"th has been driven by increasing affluence and the rise of a middle class+ the entry of
"omen into the "orkforce+ "ith a consequent incentive to seek out easy#to#prepare
foods+ the gro"th in the use of refrigerators, making it possible to shop "eekly instead of
daily+ and the gro"th in car o"nership, facilitating ourneys to distant stores and purchases of large quantities of goods. $he opportunities presented by this potential have
encouraged several Luropean companies to invest in these markets &mainly in ?sia* and
?merican companies to invest in 2atin ?merica and )hina. 2ocal companies also entered
the market. nitial development of supermarkets has no" been follo"ed by hypermarket
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gro"th. n addition there "ere investments by companies such as Makro and Metro in
large#scale )ash#and#)arry operations.
Bhile the gro"th in sales of processed foods in these countries has been much more
rapid than the gro"th in fresh food sales, the imperative nature of supermarkets toachieve economies of scale in purchasing means that the expansion of supermarkets in
these countries has important repercussions for small farmers, particularly those gro"ing
perishable crops. e" supply chains have developed involving cluster formation+
development of speciali-ed "holesalers+ leading farmers organi-ing supply+ and farmer
associations or cooperatives. n some cases supermarkets have organi-ed their o"n
procurement from small farmers+ in others "holesale markets have adapted to meet
supermarket needs.
T'$i!al ,$e%&a%6et &e%!5a"(i,e
2arger supermarkets in orth ?merica and in Lurope typically sell a great number of
items among many brands, si-es and varieties, including/
• ?lcoholic beverages &as state8 provincial and8or local la"s allo"*
• 'aby foods and baby#care products such as disposable diapers
• 'reads and bakery products &many stores may have a bakery on site that offers
specialty and dessert items*
• 'ooks, ne"spapers, and maga-ines, including supermarket tabloids
• 'ulk dried foods such as legumes, flour , rice, etc. &typically available for self#
service*
• )anned goods and dried cereals
• )0s, ?udio cassettes, 0K0s, and videos &including video rentals*
• )igarettes and other tobacco products
• )onfections and candies
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• )osmetics
• 0airy products and eggs
• 0elicatessen foods &ready#to#eat*
• 0iet foods
• Llectrical products such as light bulbs, extension cords, etc.
• 1eminine hygiene products
• 1inancial services and products such as mortgages, credit cards, savings accounts,
"ire transfers, etc. &typically offered in#store by a partnering bank or other
financial institution*
• 1lo"ers
• 1ro-en foods and crushed ice
• 1resh produce, fruits and vegetables
• Greeting cards
• ouse#cleaning products
• ouse"ares, 0ish"are and cooking utensils, etc. &typically limited*
• 2aundry products such as detergents, fabric softeners, etc.
• 2ottery tickets &"here operational and legal*
• 2uggage items &typically limited*
•Meats, fish and seafoods &some stores may offer live fish and seafood items from
aquarium tanks*
• Medicines and first aid items &primarily over#the#counter drugs, although many
supermarkets also have an on#site pharmacy*
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• onalcoholic beverages such as soft drinks, uices, bottled "ater , etc. &some
stores may have a uice bar that prepares ready#to#drink freshly squee-ed uices,
smoothies, etc.*
• Personal hygiene and grooming products
• Pet foods and products
• Seasonal items and decorations
• Snack foods
• $ea and )offee &some stores may have a commercial#style grinder , typically
available for self#service, and8or a staffed coffee bar that prepares ready#to#drink
coffee and tea beverages*
• $oys and novelties
n some countries, the range of supermarket merchandise is more strictly focused on food
products, although the range of goods for sale is expanding in many locations as typical
store si-es continue to increase globally.
T'$i!al ,t%e a%!5ite!t%e
Most supermarkets are similar in design and layout due to trends in marketing. 1resh
produce tends to be located near the entrance of the store. Perishable staple items such as
meat and dairy products are usually situated to"ard the rear of the store, adacent to the
loading docks, in refrigerated cases that can be stocked from the back "ithout
interrupting customers4 shopping.
$he front of the store, or !front end4! is the area "here point of sale machines or cash
registers are usually located. Many retailers also have implemented self#checkout devices
in an attempt to reduce labor costs.
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C%iti!i,&,
• Supermarket, in general, tend to narro" the choices of fruits and vegetables by
stocking only varieties "ith long storage lives.
• n the Cnited States, maor#brand supermarkets often demand slotting fees from
suppliers in exchange for premium shelf space and8or better positioning &such as
at eye#level, on the checkout aisle or at a shelf4s !end cap!*. $his extra supplier
cost &up to ID@,@@@ per brand for a chain for each individual SJC* may be
reflected in the cost of the products offered. Some critics have questioned the
ethical and legal propriety of slotting fee payments and their effect on smaller
suppliers.
• n 'ritain supermarkets have been accused of squee-ing prices to farmers, forcing
small shops out of business, and often favoring imports over 'ritish produce.
• Supermarkets can generally retail at lo"er prices than traditional corner shops and
markets due to higher volume throughput. $his has led to small businesses losing
customers and closing in many areas, "hich can be seen as an adverse effect on
the local infrastructure. &%thers vie" supermarkets as having better economies of
scale.* n (@@@, the 1innish government drafted the ne" shopping hours la" insuch a "ay, that shops "ith a sub#supermarket floor area &E@@m(* have year#
around Sunday opening rights, "hile supermarkets are permitted to stay open on
Sundays only during the summer and mid#"inter months.
• n e" Oealand, supermarkets have been accused of buying fresh produce from
gro"ers at lo" prices and selling "ith ridiculously high mark#ups, sometimes as
high as F@@H
Retail !"!e"t%ati" refers to the market#share generally belonging to the top E or F
mass distribution firms present in a regional market, as a percentage on the total.
Retail concentration is not simply a concentration ratio as is emerging in the food sector.
$his is due to t"o factors/ the particular relevance retail is gaining on a global scale, and
the particular shape of the food chain.
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n recent years, Retail )oncentration moved ahead "ith fusions and acquisitions along
the entire food chain. Be can assume "ith Grievink &(@@D* that in a fe" years there "ill
be only F dominant actors in the globali-e food chain. $he same researcher states that in
the 7@4s the top#F food manufacturers could count on t"ice the cash flo" of the top#F
retailers. o"adays the relation is inverted/ the top F retailers can count on t"ice that of
the top#F manufacturers. $hus, the food chain has become increasingly vertically
integrated, "ith global corporations able to coordinate inputs from the seed to the field,
from the stable to the table. Retail concentration by one hand is the ans"er that retail is
giving to compete "ith the giants of agro food industry. 'y the other hand, is the agro
food industry in itself searching to arrive directly to the consumers, through a refined
relations system. n this process, private labels are increasingly attracting consumers, and
are expected to gro" more and more on their fidelisation strategy, beating on quality,
safety and also ethical values .
Recently the Luropean )ommission proposed solutions to face "ith overall price increase
about foodstuff. ?mong the measures proposed, several relate to the retail po"er recently
acquired.
n particular, the payments delay to the producers+ the additional fees asked to the
producers to place on the shelves branded products+ price transparency+ better regulation
on promotional activities and openings8closing time are all issues on the agenda.
1or supporters, retail concentration means more chances for consumers, lo"er prices, and
better quality. 1or opponents, by the contrary, the disappearing of traditional shops, of
food culture, of neighborhood life in general. 1urthermore, too much concentration
means squee-ing the price of industry and of agriculture, "hich can lead to outsourcing
food from any"here it can cost less, "ithout a truly long term impact assessment.
Retail (e,i3" is a creative and commercial discipline that combines several different
areas of expertise together in the design and construction of retail space. Retail design is
primarily a speciali-ed practice of architecture and interior design, ho"ever it also
incorporates elements of interior decoration, industrial design, graphic design,
ergonomics, and advertising.
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Retail design is a very speciali-ed discipline due to the heavy demands placed on retail
space. 'ecause the primary purpose of retail space is to stock and sell product to
consumers, the spaces must be designed in a "ay that promotes an enoyable and hassle#
free shopping experience for the consumer. $he space must be specially#tailored to the
kind of product being sold in that space+ for example, a bookstore requires many large
shelving units to accommodate small products that can be arranged categorically "hile a
clothing store requires more open space to fully display product.
Retail spaces, especially "hen they form part of a retail chain, must also be designed to
dra" people into the space to shop. $he storefront must act as a billboard for the store,
often employing large display "indo"s that allo" shoppers to see into the space and the
product inside. n the case of a retail chain, the individual spaces must be unified in their
design.
Regional differences
n most of the "orld the term shopping centre is used, especially in Lurope, ?ustralasia
and South ?merica+ ho"ever shopping mall is also used, predominantly in orth
?merica(T and the Philippines. %utside of orth ?merica, shopping precinct and
shopping arcade are also used. n orth ?merica, the term shopping mall is usually
applied to enclosed retail structures &and is generally abbreviated to simply mall *, "hile
shopping center usually refers to open#air retail complexes+ both types of facilities
usually have large parking lots, face maor traffic arterials and have fe" pedestrian
connections to surrounding neighborhoods.
Shopping centers in the Cnited Jingdom can be referred to as !shopping centers!,
!shopping precincts!, or !to"n centers!. $he standard 'ritish pronunciation of the "ord
!mall! is as in " The Mall, London" 5 the tree#lined avenue leading to 'uckingham Palace,
2ondon and also like " pal " &friend*. Mall can refer to either a shopping mall 5 a place
"here a collection of shops all adoin a pedestrian area 5 or an exclusively pedestrianised
street that allo"s shoppers to "alk "ithout interference from vehicle traffic. Mall is
generally used in orth ?merica to refer to a large shopping area usually composed of a
single building "hich contains multiple shops, usually !anchored! by one or more
department stores surrounded by a parking lot, "hile the term arcade is more often used,
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especially in 'ritain, to refer to a narro" pedestrian#only street, often covered or bet"een
closely spaced buildings &see to"n centre*. ? larger, often partly covered and exclusively
pedestrian shopping area is in 'ritain also termed a shopping centre, shopping precinct ,
or pedestrian precinct .
$he maority of 'ritish shopping centers are in to"n centers, usually inserted into old
shopping districts and surrounded by subsidiary open air shopping streets. ? number of
large out#of#to"n !regional malls! such as Meado"hall, Sheffield and the $rafford
)entre, Manchester "ere built in the 79@s and 77@s, but planning regulations prohibit
the construction of any more. %ut#of#to"n shopping developments in the CJ are no"
focused on retail parks, "hich consist of groups of "arehouse style shops "ith individual
entrances from outdoors. Planning policy prioriti-es the development of existing to"n
centres, although "ith patchy success. $he Metro)entre, in Gateshead &near e"castle
upon $yne*, is the largest shopping centre in Lurope "ith over DD@ shops, F@ restaurants
and an screen cinema and Bestfield 2ondon is the largest inner#city shopping centre in
Lurope. 'ullring, 'irmingham is the busiest shopping centre in the CJ "elcoming over
D6.F million shoppers in its opening year.
$he first structure resembling "hat is considered to be a !shopping mall! in the present#
day is located in $he )ity of 0amascus, the capital city of Syria. t is called ?l#
amidiyah Souq in old 0amascus and dates back to the seventh century. sfahan4s Grand
'a-aar , "hich is largely covered, dates from the @th century. $he @ kilometer long
covered $ehran4s Grand 'a-aar also has a long history. $he Grand 'a-aar of stanbul "as
built in the Fth century and is still one of the largest covered markets in the "orld, "ith
more than F9 streets and E,@@@ shops.
Gostiny 0vor in St. Petersburg, "hich opened in 39F, may be regarded as one of the
first purposely#built mall#type shopping complexes, as it consisted of more than @@
shops covering an area of over FD,@@@ m( &F3@,@@@ sq ft*.
$he %xford )overed Market in %xford, Lngland opened in 33E and still runs today.
$he 'urlington ?rcade in 2ondon "as opened in 97. $he ?rcade in Providence, Rhode
sland introduced the retail arcade concept to the Cnited States in 9(9. $his "as a
forerunner of today4s shopping mall $he Galleria Kittorio Lmanuele in Milan, taly
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follo"ed in the 93@s and is closer to large modern malls in spaciousness. %ther large
cities created arcades and shopping centres in the late 7th century and early (@th
century, including the )leveland ?rcade, 0ayton &%hio* ?rcade and Mosco"4s GCM,
"hich opened in 97@. Larly shopping centers designed for the automobile include
Market Square, 2ake 1orest, llinois &76* and )ountry )lub Pla-a, Jansas )ity,
Missouri &7(E*.
?n early indoor mall prototype in the Cnited States "as the 2ake Kie" Store at Morgan
Park , 0uluth, Minnesota, "hich "as built in 7F and held its grand opening on Nuly (@,
76. $he architect "as 0ean and 0ean from )hicago and the building contractor "as
George . 2ounsberry from 0uluth. $he building is t"o stories "ith a full basement, and
shops "ere originally located on all three levels. ?ll of the stores "ere located "ithin the
interior of the mall+ some shops "ere accessible from inside and out.
n the mid#(@th century, "ith the rise of the suburb and automobile culture in the Cnited
States, a ne" style of shopping centre "as created a"ay from do"nto"n.
Components
F( !%t
? common feature of shopping malls is a food court/ this typically consists of a number
of fast food vendors of various types, surrounding a shared seating area.
De$a%t&e"t ,t%e,
Bhen the shopping mall format "as developed by Kictor Gruen in the mid#7F@s,
signing larger department stores "as necessary for the financial stability of the proects,
and to dra" retail traffic that "ould result in visits to the smaller stores in the mall as
"ell. $hese larger stores are termed anchor store or dra" tenant. ?nchors generally have
their rents heavily discounted, and may even receive cash inducements from the mall to
remain open. n physical configuration, anchor stores are normally located as far from
each other as possible to maximi-e the amount of traffic from one anchor to another.
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Sta"(-al"e ,t%e,
1requently, a shopping mall or shopping center "ill have satellite buildings located either
on the same tract of land or on one abutting it, on "hich "ill be located stand-alone
stores, "hich may or may not be legally connected to the central facility through contractor o"nership. $hese stores may have their o"n parking lots, or their lots may
interconnect "ith those of the mall or center. $he existence of the stand#alone store may
have been planned by the mall4s developer, or may have come about through
opportunistic actions by others, but visually the central facility 5 the mall or shopping
center 5 and the satellite buildings "ill often be perceived as being a single !unit!, even
in circumstances "here the outlying buildings are not officially or legally connected to
the mall in any "ay.
Dead malls
n the C.S, as more modern facilities are built, many early malls have become abandoned,
due to decreased traffic and tenancy. $hese !dead malls! have failed to attract ne"
business and often sit unused for many years until restored or demolished. nteresting
examples of architecture and urban design, these structures often attract people "ho
explore and photograph them. $his phenomenon of dead and dying malls is examined in
detail by the "ebsite 0eadmalls.com, "hich hosts many such photographs, as "ell as
historical accounts. Cntil the mid#77@s, the trend "as to build enclosed malls and to
renovate older outdoor malls into enclosed ones. Such malls had advantages such as
temperature control. Since then, the trend has turned and it is once again fashionable to
build open#air malls. ?ccording to the nternational )ouncil of Shopping )enters, only
one ne" enclosed mall has been built in the Cnited States since (@@6.
Some enclosed malls have been opened up, such as the Sherman %aks Galleria. n
addition, some malls, "hen replacing an empty anchor location, have replaced the former anchor store building "ith the more modern outdoor design, leaving the remainder of the
indoor mall intact, such as the 0el ?mo 1ashion )enter in $orrance, )alifornia.
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New trends
n parts of )anada, it is no" rare for ne" shopping malls to be built. $he Kaughan Mills
Shopping )entre, opened in (@@E, and )rossiron Mills, opened in (@@7, are the only
malls built in )anada since 77(. %utdoor outlet malls or big box shopping areas kno"n
as po"er centres are no" favored, although the traditional enclosed shopping mall is still
in demand by those seeking "eather#protected, all#under#one#roof shopping. n addition
the enclosed interconnections bet"een do"nto"n multi story shopping malls continue to
gro" in the Cnderground city of Montreal &D( kilometers of passage"ay*, the P?$
system of $oronto &(3 km &3 mi* of passage"ay* and the PlusF system of )algary
&6 km &7.7 mi* of overhead passage"ay*.
Ve%ti!al &all,
igh land prices in populous cities have led to the concept of the !vertical mall,! in "hich
space allocated to retail is configured over a number of stories accessible by elevators
and8or escalators linking the different levels of the mall. $he challenge of this type of
mall is to overcome the natural tendency of shoppers to move hori-ontally and encourage
shoppers to move up"ards and do"n"ards. $he concept of a vertical mall "as originally
conceived in the late 76@s by the Mafco )ompany, former shopping center development
division of Marshall 1ield : )o. $he Bater $o"er Place skyscraper, )hicago, llinois,"as built in 73F by Crban Retail Properties. t contains a hotel, luxury condominiums,
and office space and sits atop a block#long base containing an eight#level atrium#style
retail mall that fronts on the Magnificent Mile.
Kertical malls are common in densely populated conurbations such as ong Jong and
'angkok. $imes Square in ong Jong is a principal example.
? vertical mall may also be built "here the geography prevents building out"ard or there
are other restrictions on construction, such as historical buildings or significant
archeology. $he 0ar"in Shopping )entre and associated malls in Shre"sbury, CJ, are
built on the side of a steep hill, around the former outer "alls of the nearby medieval
castle+ consequently the shopping centre is split over seven floors vertically 5 t"o
locations hori-ontally 5 connected by elevators, escalators and bridge "alk"ays. Some
establishments incorporate such design into their layout, such as Shre"sbury4s
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Mc0onalds restaurant, split into four stories "ith multiple me--anines "hich feature
medieval castle vaults 5 complete "ith arro"slits 5 in the basement dining rooms.
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CHAPTER-III
COMPANY 8 INDUSTRY
PROFILE
$he ndian retail industry is the fifth largest in the "orld. )omprising of organi-ed and
unorgani-ed sectors, ndia retail industry is one of the fastest gro"ing industries in ndia,
especially over the last fe" years. $hough initially, the retail industry in ndia "as mostly
unorgani-ed, ho"ever "ith the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organi-ed as "ell. Bith gro"ing
market demand, the industry is expected to gro" at a pace of (F#D@H annually. $he ndia
retail industry is expected to gro" from Rs. DF,@@@ crore in (@@E#@F to Rs. @7,@@@ crore by the year (@@.Gro"th of ndian Retail?ccording to the 9th ?nnual Global Retail
0evelopment ndex &GR0* of ?$ Jearney, ndia retail industry is the most promising
emerging market for investment. n (@@3, the retail trade in ndia had a share of 9#@H in
the G0P &Gross 0omestic Product* of the country. n (@@7, it rose to (H. t is also
expected to reach ((H by (@@.?ccording to a report by orthbride )apita, the ndia
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retail industry is expected to gro" to CSI 3@@ billion by (@@. 'y the same time, the
organi-ed sector "ill be (@H of the total market share. t can be mentioned here that, the
share of organi-ed sector in (@@3 "as 3.FH of the total retail market.Maor Retailers in
ndia Pantaloon/Pantaloon is one of the biggest retailers in ndia "ith more than EF@
stores across the country. eadquartered in Mumbai, it has more than F million sq. ft
retail space located across the country. t4s gro"ing at an enviable pace and is expected to
reach D@ million sq. ft by the year (@@. n (@@, Pantaloon launched country4s first
hypermarket ='ig 'a-aar>. t has the follo"ing retail segments/
• 1ood : Grocery/ 'ig 'a-aar, 1ood 'a-aar
• ome Solutions/ ometo"n, 1urniture 'a-aar, )ollection#
• )onsumer Llectronics/ e#-one
• Shoes/ Shoe 1actory
• 'ooks, Music : Gifts/ 0epot
• ealth : 'eauty )are/ Star, Sitara
• L#tailing/ 1utureba-aar.com
• Lntertainment/ 'o"ling )o.
$ata Group$ata group is another maor player in ndian retail industry "ith its subsidiary
$rent, "hich operates Bestside and Star ndia 'a-aar. Lstablished in 779, it also
acquired the largest book and music retailer in ndia =2andmark> in (@@F. $rent o"ns
over E lakh sq. ft retail space across the country.RPG Group
RPG Group is one of the earlier entrants in the ndian retail market, "hen it came into
food : grocery retailing in 776 "ith its retail 1ood"orld stores. 2ater it also opened the
pharmacy and beauty care outlets =ealth : Glo">. Reliance is one of the biggest players
in ndian retail industry. More than D@@ Reliance 1resh stores and Reliance Mart are quite
popular in the ndian retail market. t4s expecting its sales to reach Rs. 7@,@@@ crores by
(@@.
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?K 'irla Group?K 'irla Group has a strong presence in ndian apparel retailing. $he
brands like 2ouis Phillipe, ?llen Solly, Kan eusen, Peter Lngland are quite popular. t4s
also investing in other segments of retail. t "ill invest Rs. 9@@@#7@@@ crores by (@@.
Retail formats in ndiaypermarts8supermarkets/ large self#servicing outlets offering
products from a variety of categories.
• Mom#and#pop stores/ they are family o"ned business catering to small sections+
they are individually handled retail outlets and have a personal touch.
• 0epartmental stores/ are general retail merchandisers offering quality products
and services.
• )onvenience stores/ are located in residential areas "ith slightly higher prices
goods due to the convenience offered.
• Shopping malls/ the biggest form of retail in ndia, malls offers customers a mix
of all types of products and services including entertainment and food under a
single roof.
• L#trailers/ are retailers providing online buying and selling of products and
services.
• 0iscount stores/ these are factory outlets that give discount on the MRP.
• Kending/ it is a relatively ne" entry, in the retail sector. ere beverages, snacks
and other small items can be bought via vending machine.
• )ategory killers/ small specialty stores that offer a variety of categories. $hey are
kno"n as category killers as they focus on specific categories, such as electronics
and sporting goods. $his is also kno"n as Multi 'rand %utlets or M'%4s.
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• Specialty stores/ are retail chains dealing in specific categories and provide deep
assortment. Mumbai4s )ross"ord 'ook Store and RPG4s Music Borld are a
couple of examples.
)hallenges facing ndian retail industry
• $he tax structure in ndia favors small retail business
• 2ack of adequate infrastructure facilities
• igh cost of real estate
• 0issimilarity in consumer groups
• Restrictions in 1oreign 0irect nvestment
• Shortage of retail study options
• Shortage of trained manpo"er
• 2o" retail management skill
$he 1uture $he retail industry in ndia is currently gro"ing at a great pace and is
expected to go up to CSI 9DD billion by the year (@D. t is further expected to reach CSI
.D trillion by the year (@9 at a )?GR of @H. ?s the country has got a high gro"th
rates, the consumer spending has also gone up and is also expected to go up further in the
future. n the last four year, the consumer spending in ndia climbed up to 3FH. ?s a
result, the ndia retail industry is expected to gro" further in the future days. 'y the year
(@D, the organi-ed sector is also expected to gro" at a )?GR of E@H.
Et'&l3'
Retail comes from the 1rench "ord retailer , "hich refers to !cutting off my hands, clip
and divide! in terms of tailoring &D6F*. t first "as recorded as a noun "ith the meaning
of a !sale in small quantities! in EDD &1rench*. ts literal meaning for retail "as to !cut
off, shred, off my toes paring!. 2ike the 1rench, the "ord retail in both 0utch and
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German &detail Handel and Einzelhandel respectively*, also refers to the sale of small
quantities of items.
T'$e, # %etail tlet,
? marketplace is a location "here goods and services are exchanged. $he traditional
market square is a city square "here traders set up stalls and buyers bro"se the
merchandise. $his kind of market is very old, and countless such markets are still in
operation around the "hole "orld.
n some parts of the "orld, 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 follo"s/
• 1ood products
• ard goods &!hardline retailers!* # appliances, electronics, furniture, sporting
goods, etc.
• Soft goods # clothing, apparel, and other fabrics.
$here are the follo"ing types of retailers by marketing strategy/
• 0epartment stores # very large stores offering a huge assortment of !soft! and
!hard goods+ often bear a resemblance to a collection of specialty stores. ? retailer
of such store carries variety of categories and has broad assortment at average
price. $hey offer considerable customer service.
• 0iscount stores # tend to offer a "ide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable
and cut#rate prices. ormally retailers sell less fashion#oriented brands. o"ever
the service is inadequate.+
• General merchandise store # a hybrid bet"een a department store and discount
store+
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• Supermarkets # sell mostly food products+
• Barehouse stores # "arehouses that offer lo"#cost, often high#quantity goods
piled on pallets or steel shelves+ "arehouse clubs charge a membership fee+
• Kariety stores or !dollar stores! # these offer extremely lo"#cost goods, "ith
limited selection+
• 0emographic # retailers that aim at one particular segment &e.g., high#end retailers
focusing on "ealthy individuals*.
• Mom#?nd#Pop or Jirana Stores/ is a retail outlet that is o"ned and operated by
individuals. $he range of products are very selective and fe" in numbers. $hese
stores are seen in local community often are family#run businesses. $he square
feet area of the store depends on the store holder.
• Specialty Stores/ ? typical specialty store gives attention to a particular category
and provides high level of service to the customers. ? pet store that speciali-es in
selling dog food "ould be regarded as a specialty store. o"ever, branded stores
also come under this format. 1or example if a customer visits a Reebok or Gap
store then they find ust Reebok and Gap products in the respective stores.
• )onvenience Stores/ is essentially found in residential areas. $hey provide limited
amount of merchandise at more than average prices "ith a speedy checkout. $his
store is ideal for emergency and immediate purchases.
• ypermarkets/ provides variety and huge volumes of exclusive merchandise at
lo" margins. $he operating cost is comparatively less than other retail formats. ?
classic example is the MetroU in 'angalore.
•
Supermarkets/ is a self service store consisting mainly of grocery and limited products on non food items. $hey may adopt a i#2o or an L02P strategy for
pricing. $he supermarkets can be any"here bet"een (@,@@@#E@,@@@ square feet.
Lxample/ SP?RU supermarket.
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• Malls/ has a range of retail shops at a single outlet. $hey endo" "ith products,
food and entertainment under a roof. Lxample/ Sigma mall and Garuda mall in
'angalore, Lxpress ?venue in )hennai.
• )ategory Jillers or )ategory Specialist/ 'y supplying "ide assortment in a single
category for lo"er prices a retailer can !kill! that category for other retailers. 1or
fe" categories, such as electronics, the products are displayed at the centre of the
store and sales person "ill be available to address customer queries and give
suggestions "hen required. %ther retail format stores are forced to reduce the
prices if a category specialist retail store is present in the vicinity. 1or example/
Pai LlectronicsU store in 'angalore, $ata )roma.
• L#tailers/ $he customer can shop and order through internet and the merchandise
are dropped at the customer4s doorstep. ere the retailers use drop shipping
technique. $hey accept the payment for the product but the customer receives the
product directly from the manufacturer or a "holesaler. $his format is ideal for
customers "ho do not "ant to travel to retail stores and are interested in home
shopping. o"ever it is important for the customer to be "ary about defective
products and non secure credit card transaction. Lxample/ ?ma-on and Lbay.
• Kending Machines/ $his is an automated piece of equipment "herein customers
can drop in the money in machine and acquire the products. 1or example/ Soft
drinks vending at 'angalore ?irport.
Some stores take a no frills approach, "hile others are !mid#range! or !high end!,
depending on "hat income level they target.
%ther types of retail store include/
• ?utomated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores. $he stores accept credit cards and are usually open (E83.
Lxamples include OoomShops and Red box.
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• 'ig#box stores encompass larger department, discount, general merchandise, and
"arehouse stores.
• )onvenience store # a small store often "ith extended hours, stocking everyday or
roadside items+
• General store # a store "hich sells most goods needed, typically in a rural area+
Retailers can opt for a format as each provides different retail mix to its customers based
on their customer demographics, lifestyle and purchase behavior. ? good format "ill lend
a hand to display products "ell and entice the target customers to spa"n sales.
COMPANY PROFILE
He%ita3e at a Gla"!e:
$he eritage Group, founded in 77( by Sri ara )handra 'abu aidu, is one of the
fastest gro"ing Private Sector Lnterprises in ndia, "ith four#business division>s vi-.,
0airy, Retail, ?gri, and 'akery under its flagship )ompany eritage 1oods &ndia*
2imited &12*. $he annual turnover of eritage 1oods crossed Rs.@76 crores in (@@#
.
Presently eritage>s milk products have market presence in ?ndhra Pradesh, Jarnataka,
Jerala, $amil adu and Maharashtra and its retail stores across 'angalore, )hennai and
yderabad. ntegrated agri operations are in )hittoor and Medak 0istricts and these are
backbone to retail operations.
n the year 77E, 12 "ent to Public ssue to raise resources, "hich "as
oversubscribed FE times and its shares are listed under ' )ategory on 'SL &Stock )ode/
F7FF(* and SL &Stock )ode/ LR$G1%%0*
A9t t5e #"(e%:
Sri )handra 'abu aidu is one of the greatest 0ynamic, Pragmatic,
Progressive and Kisionary 2eaders of the ( st )entury. Bith an obective of bringing
prosperity in to the rural families through co#operative efforts, he along "ith his relatives,
friends and associates promoted eritage 1oods in the year 77( taking opportunity from
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the ndustrial Policy, 77 of the Government of ndia and he has been successful in his
Lndeavour.
?t present, eritage has market presence in all the states of South ndia.
More than three thousand villages and five lakh farmers are being benefited in thesestates. %n the other side, eritage is serving more than 6 lakh customers needs,
employing more than 3@@ employees and generating indirectly employment opportunity
to more than F@@@ people. 'eginning "ith a humble annual turnover of ust Rs.E.D9
crores in 77D#7E, the sales turnover has reached close to Rs.D@@ crores during the
financial year (@@F#(@@6.
Sri aidu held various coveted and honorable positions including )hief
Minister of ?ndhra Pradesh, Minister for 1inance : Revenue, Minister for ?rchives :
)inematography, Member of the ?.P. 2egislative ?ssembly, 0irector of ?.P. Small
ndustries 0evelopment )orporation, and )hairman of Jarshaka Parishad.
Sri aidu has "on numerous a"ards including ! Member of the Borld
Lconomic 1orum4s 0ream )abinet! &$ime ?sia *, !South ?sian of the Vear ! &$ime
?sia *, ! 'usiness Person of the Vear ! &Lconomic $imes*, and ! $ ndian of the
Millennium ! & ndia $oday*.
Sri aidu "as chosen as one of F@ leaders at the forefront of change in theyear (@@@ by the 'usiness Beek maga-ine for being an unflinching proponent of
technology and for his drive to transform the State of ?ndhra Pradesh .
F%a%( l6i"3 ,tate&e"t,:
;Be have gro"n, and intended to gro", focusing on harnessing our
"illingness to experiment and innovate our ability to transform our drive to"ards
excellence in quality, our people first attitude and our strategic direction.
Mi,,i"
'ringing prosperity into rural families of ndia through co#operative efforts and providing
customers "ith hygienic, affordable and convenient supply of ! 1resh and ealthy ! food
products.
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Vi,i"
$o be a progressive billion dollar organi-ation "ith a pan ndia foot print by (@F.
$o achieve this by delighting customers "ith !1resh and ealthy! food products, those
are a benchmark for quality in the industry. Be are committed to enhanced prosperity and
the empo"erment of the farming community through our unique !Relationship 1arming!
Model. $o be a preferred employer by nurturing entrepreneurship, managing career
aspirations and providing innovative avenues for enhanced employee prosperity.
He%ita3e Sl3a":
Bhen you are healthy, "e are healthy
Bhen you are happy, "e are happy
Be live for your !L?2$ : ?PPLSS!
0alit' $li!' # HFIL:
Be are committed to achieve customer satisfaction through hygienically
processed and packed Milk and Milk Products. Be strive to continually improve the
quality of our products and services through up gradation of technologies and systems.
eritage4s soul has al"ays been imbibed "ith an un"ritten perpetual commitment
to itself, to al"ays produce and provide quality products "ith continuous efforts to
improve the process and environment.
?dhering to its moral commitment and its continuous drive to achieve
excellence in quality of Milk, Milk products : Systems, eritage has al"ays been laying
emphasis on not only revie"ing : re#defining quality standards, but also in
implementing them successfully. ?ll activities of Processing, Auality control, Purchase,
Stores, Marketing and $raining have been documented "ith detailed quality plans in each
of the departments.
$oday eritage feels that the S% certificate is not only an epitome of
achieved targets, but also a scale to identify : reckon, "hat is yet to be achieved on a
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continuous basis. $hough, it is a beginning, eritage has initiated the process of
standardi-ing and adopting similar quality systems at most of its other plants.
C&&it&e"t,:
Mil6 P%(!e%,:
)hange in life styles of rural families in terms of/
• Regular high income through co#operative efforts.
• Bomen participation in income generation .
• Saved from price exploitation by un#organi-ed sector .
• Remunerative prices for milk .
• ncrease of milk productivity through input and extension activities
• Shift from risky agriculture to dairy farming
• eritage
• 1inancial support for purchase of cattle+ insuring cattle
• Lstablishment of )attle ealth )are )enters
• Supplying high quality )attle feed
• %rgani-ing !Rythu Sadasu! and Kideo programmes for educating the farmers in
dairy farming
C,t&e%,:
• $imely Supply of Auality : ealthy Products
• Supply high quality milk and milk products at affordable prices
• 1ocused on utritional 1oods
• More than E lakh happy customers
• igh customer satisfaction
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• (E hours help lines & @ complaints a day*
E&$l'ee,:
• Lnhancing the $echnical and Managerial skills of Lmployees through continuous
training and development
• 'est appraisal systems to motivate employees
• ncentive, bonus and re"ard systems to encourage employees
• eritage forges ahead "ith a motto !add value to everything you do!
Ret%",:
)onsistent 0ividend Payment since Public ssue &Nanuary 77F*
Se%i!e:
• ighest impotence to investor service+ no notice from any regulatory authority
since (@@ in respect of investor service
• Kery transparent disclosures
S$$lie%,:
De5la%: technical collaboration in Milk drinks, yogurts drinks and fruit
flavoured drinks ?lfa#2aval/ supplier of high#end machinery and technical support
1ocusing on $etra pack association for products package.
S!iet':
• Potential Lmployment Generation
More than DF@@ employees are "orking "ith heritage
More than 7F@@ procurement agents got self employment in rural areas
More than F@@@ sales agents associated "ith the company
• Lmployment for the youth by providing financial and animal husbandry support
for establishing M 0?RLS
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• Producing highly health conscious products for the society
0alitie, # &a"a3e&e"t $%i"!i$le,:
• )ustomer focus to understand and meet the changing needs and expectations of
customers.
• People involvement to promote team "ork and tap the potential of people.
• 2eadership to set constancy of purpose and promote quality culture trough out the
organi-ation.
• Process approach to assess the efficiency and effectiveness of each process.
• Systems approach to understand the sequence and interaction of process.
• 1actual approach to decision making to ensure its accuracy.
• )ontinual improvement processes for improved business results.
• 0evelopment of suppliers to get right product and services in right time at right
place.
P%(!tMa%6et i,e $e%#%&a"!e:
$he total turnover is Rs DE )rores during the financial year (@@6#@3
against the turnover of (7(.@( )rores in (@@F#@6. $oday eritage distributes quality milk
: milk products in the states of ?.P, Jarnataka, Jerala : $amil nadu.
0uring the year (@@6#@3 liquid milk sales "as Rs.(9D(7.37 lakhs against
Rs.(EF(F.(D lakhs in the previous year. $he sales of milk products including bulk sales of
cream, ghee and butter "ere recorded Rs F39.F7 lakhs against Rs E633.( lakhs.
Mil6 ,ale,:
(DH gro"th "as recorded in ?P (.D9 lakhs litres per day&22P0* in (@@6#@3
against .7D 22P0 in (@@F#@6. DH gro"th "as recorded in $amilnadu#.FD 22P0 in
(@@6#@3 against .DF 22P0 in (@@F#@6. %ver all gro"th of 6H "as recorded# F.E7 22P0
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in (@@6#@3 against F.6 22P0. 1lavoured milk sales recorded a gro"th rate of 33H over
(@@F#@6. 'utter milk sales have gone up by EFH over (@@F#@6.
Otl6:
)onsidering the gro"th potential in the liquid milk market, the company
has dra"n plans to increase its market share in the existing markets and to enter into ne"
markets there by doubling revenues in dairy business in the next D years. $o achieve this
obect, company is undertaking maor expansion in dairy business by inverting over Rs(@
crores during (@@6#@3 and over Rs@ crores during the current year to strengthen the milk
procurement.
CODE OF CONDUCT AND ETHICS 1%R 0RL)$%RS : SL%R M??GLML$
PREFACE $his )ode of )onduct and Lthics &herein after referred to as the !)ode!* has
been adopted by the 'oard of 0irectors of eritage 1oods &ndia* 2imited &herein after
referred to as !the )ompany!* , to be applicable to all 0irectors and all members of senior
management i.e., personnel "ho are a part of the core management team and including all
functional heads of the company &herein after referred to as the 4Members4* "ith effect
from 0ecember (D, (@@F .$his )ode helps the Members maintain good standards of
business conduct, foster ethical and moral conduct and promote a culture of honesty and
accountability, so as to set an example to others in the company.
$he )ode is not an all#inclusive comprehensive policy and cannot anticipate every
situation that may arise in the course of the company4s business. $he Members are
expected to bear in mind the essence and substance of the )ode in all their dealings 8
transactions "ith the )ompany.
STRICT COMPLIANCE ?ll Members shall act "ithin the bounds of the authority
conferred upon them and undertake the duty to make and enact informed, udicious and
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harmonious decisions and policies in the best interests of the )ompany and its
shareholders 8 stakeholders. Bith a vie" to maintain the high standards the )ompany
requires, the follo"ing rules8 code of conduct to be observed in all activities. 1or the
purpose of the code, the )ompany appoints the )ompany Secretary as compliance
officer, "ho "ill be available to Members to ans"er questions and help them in
complying "ith the code. CONFLICT OF INTEREST $he term !)onflict of interest!
pertains to situations in "hich financial or personal considerations may compromise, or
have the appearance of compromising udgment of professional activities. ? conflict of
interests exists "here the interests or benefits of one person or entity conflicts "ith the
interests or benefits of the other person8entity8company.?ll Members should not engage
in any business, relationship or activity, "hich may be in conflict "ith the interest of the
)ompany. )onflict may arise in many situations. t is not possible to cover every possible
conflict situation and at times, it "ill not be easy to distinguish bet"een the proper and
improper activities. Set forth belo", are some of the common circumstances that may
lead to conflict of interest, actual or potential.
i. Members should not engage in any activity 8 employment that interfere "ith your performance
or responsibility to the )ompany or other"ise in conflict "ith or preudicial to the interests of
the )ompany.ii. ?s a general policy, Members should avoid conducting business "ith a relative or "ith a
firm 8 )ompany in "hich a relative 8 related party is associated in a significant role 8 position.iii. Bhenever8 "herever the related party transaction is unavoidable Members "ill fully disclose
their interest in the transaction to the 'oard or to the )L% of the )ompany and due records for
such transactions "ill be maintained as per the statutory requirements.
HONESTY AND INTEGRITY ?ll Members shall conduct their activities, on behalf of
the )ompany and on their personal behalf, "ith honesty, integrity and fairness. $hey "ill
act in good faith, "ith responsibility, due care, competence and diligence, allo"ing
independent udgment to their subordinates. Members shall act in the best interests of the
)ompany and fulfill their fiduciary obligations. POLICY OF BUSINESS
RELATIONSHIP
$he )ompany "ill conduct business legally and ethically. $he quality of company4s
products and the efficiency of its services at the most competitive price is the greatest tool
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in conducting the business of the company. Profits do not ustify unfair8 unethical
practices. ?ll Members should uphold the highest standards of integrity in all the business
relationships.
INTELLECTUAL PROPERTY POLICY
?ll Members have utmost obligation to identify and protect the intellectual properties,
trade secrets and confidential information o"ned by the )ompany and its clients or
associates as it is critical to the success of the company. "Intellectual Property ights"
!IP means generally patented or potentially patentable inventions, trademarks,
copyrightable subect matters and trade secrets.
CORPORTE OPPORTUNITIES Members o"e a duty to the )ompany to advance its
legitimate interests "hen the opportunity to do so arises and are expressly prohibited
from improper use of information 8 property or taking improper advantage of their
position. PREVENTION OF INSIDER TRADING nsider trading is prohibited both
by the 2a" as "ell as by the company policy . nsider trading generally involves the act
of subscribing to or buying or selling of the )ompany4s securities, "hen in possession of
any Cnpublished Price Sensitive nformation about the company. "Price sensitive
in#ormation ! is such information, "hich relates directly or indirectly to the company and
"hich if published is likely to materially affect the price of securities of the )ompany. t
is important to note that both positive and negative information could be price sensitive.
Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the )ompany, "hich is not in public domain and thus
constituting insider information. Members shall comply "ith the prevention of insider
trading guidelines as issued by Securities Lxchange 'oard of ndia &SL'*.
SECURITIES MAR;ET POLICY
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$he )ompany is committed to comply "ith securities la"s in all the markets in "hich the
)ompany4s securities are listed. $he company prohibits fraudulent and unfair trade
practices "ith regard to the securities of the )ompany by all Members.
CONFIDENTIALITY OF INFORMATION POLICY $he )ompany4s confidentialinformation is a valuable asset. Members shall understand that protection of all
confidential information is essential. Members should undertake and be committed to
protecting business and personal information of confidential nature obtained from clients,
associates and employees. ?ny information concerning the )ompany4s business, its
customers, suppliers etc "hich is not in the public domain and to "hich the Members
have access or possesses such information, shall be considered confidential and held in
confidence, unless authori-ed to disclose or such disclosure is required as a matter of la".
Members shall not provide any information either formally or informally, to the press or
any other publicity media, unless specially authori-ed to do so.
COMPLIANCE +ITH LA+S< RULES AND REGULATIONS
Members should comply "ith all applicable la"s, rules, and regulations, both in letter
and sprit. n order to assist the )ompany in promoting the la"ful and ethical behavior,
Members have to report any possible violation of la", rules, regulations or the code of
conduct to the )ompany Secretary.
PROTECTION AND PROPER USE OF COMPANY=S ASSETS
?ll Members have the responsibility to protect the assets of the company, ensure optimal
utili-ation of assets and to report and record all transactions. Members shall protect the
)ompany4s assets from loss, damages, misuse or theft and assets may only be used for
business purposes and other purposes specifically approved by management and must
never be used for any personal or illegal purposes.
COMPETITION POLICY
$he )ompany shall compete only in an ethical and legitimate manner. t prohibits all
actions that are anti# competitive or other"ise contrary to la"s that govern competitive
practices in the market place. Members shall uphold the same.
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SELECTING SUPPLIERS
$he )ompany4s suppliers make significant contribution to its success. $he )ompany4s
policy is to purchase 8 avail supplies based on need, quality, service, price and other
commercial terms and conditions. Suppliers should be selected based on merit, price,quality and performances. $he )ompany4s policy is to select significant suppliers through
a competitive bid process "herever possible. Cnder no circumstance should the )ompany
or its employee, agent or contractor attempt to coerce suppliers in any "ay.
ENVIRONMENT< HEALTH AND SAFETY POLICY
Members shall take environmental consciousness a step further as a company and
contribute to preserving nature as "ell as safety measures in o"n respective "ork areas.
?ll Members are responsible for conducting safe and environmentally sound operations+this is in the interest of our o"n "ell#being and the quality of life of others. Members
shall abide by this policy.
ELIMINATION OF CHILD LABOUR
t is the )ompany4s policy not to support child labor. $he )ompany is committed to
implement the provisions of the )hild 2abor &Prohibition and Regulation* ?ct, 796. $o,
promote this the )ompany encourages its suppliers also to "ork to"ards a no child labor
policy in their industries. Members shall strictly observe that no child labor is employed
in the company.
ABOLITION OF FORCED LABOUR
$he )ompany strictly prohibits forced or compulsory labor. $he )ompany is committed
to ensuring that employees enter into employment and stay on in the )ompany of their
o"n free "ill. Members shall uphold this policy.
GIFTS 8 DONATIONS
o Member shall receive or offer, directly or indirectly, any gifts, donations,
remuneration, hospitality, illegal payments and comparable benefits "hich are intended
or perceived to be intended to obtain business &or uncompetitive* favors or decision for
the conduct of the business. ormal gifts of commemorative nature for special events
may be accepted and reported to the 'oard.
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OTHER DIRECTORSHIPS
$he )ompany feels that serving on the 'oard of directors of other companies may raise
substantial concerns about potential conflict of interest. $herefore all 0irectors shall
report 8 disclose such relationships to the 'oard on an annual basis. t is felt that serviceon the 'oard of a direct competitor is not in the interest of the )ompany. ence all the
0irectors are barred in accepting such position "ithout the concurrence of the 'oard.
ACCOUNTABILITY
$he 'oard of 0irectors &'%0* shall oversee the )ompany4s adherence to ethical and
legal standards. ?ll employees and members of the '%0 shall undertake to stop or
prevent actions that could harm customers or reputation of the )ompany and to report
such actions as soon as they occur to take corrective steps and see that such actions arenot repeated.
COMPLIANCE +ITH CODE OF CONDUCT
Lach 0irector and senior management personnel shall adhere to this code of conduct and
affirm compliance "ith the code on an annual basis as per the ?nnexure to the )ode.
Kiolation of this )ode "ill lead to appropriate disciplinary action.
+AIVER OF THE CODE
?ny "aiver of the applicability of the )ode or "aiver of application of any provision of
the )ode to any Member shall be approved by the 'oard of 0irectors and disclosed as
required by 2a" or SL' 8 Stock Lxchange regulations.
BRANCHES OF HFIL:
12 has D "ings. $hey are
• 0airy
• Retail
• ?gribusiness
1. Dai%':
t is the maor "ing among all. $he dairy products manufactured by 12 are
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Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.
*. Retail:
n the retail sector 12 has outlets namely ;1reshW<. n those stores the
products sold are vegetables, milk: milk products, grocery, pulses, fruits etc.
n yderabad 7 retail shops are there. n 'angalore: )hennai, D:E
respectively are there. $otally there are (6 retail shops are there.
1reshW is a unique chain of retail stores, designed to meet the needs of the
modern ndian consumer. $he store rediscovers the taste of nature every day making
grocery shopping a never before experience.
$he unique: distinctive feature of 1reshW is that it offers the "idest
range of fresh fruits and vegetables "hich are directly hand picked from the farms.
1reshness lies in their merchandise and the customers are al"ays "elcomed "ith fresh
fruits and vegetables no matter "hat time they "alk in.
/. A3%i B,i"e,,:
n this business 12 employees "ill go to farmers and have a deal "ith
them. $hose farmers "ill sell their goods like vegetables, pulses to 12 only. ?nd 12
"ill transport the goods to retail outlets.
$he agricultural professors "ill examine "hich area is suitable to import
vegetables from and also examine the vegetables, pulses and fruits in the lab. ?nd finally
they report to the ead#?gribusiness. Representatives as per the instructions given by the
agri professors "ill approach the farmers directly and make a deal "ith them. t is the
process of registering the farmers.
eritage 1inlease He%ita3e Fi"lea,e Li&ite( "as incorporated under the companies ?ct
7F6 on (Drd of 1ebruary 776 and commenced business from (nd day of ?pril 776.
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$he Registered office is located at 6#D#FE8c Punagutta, yderabad#F@@@9(.
T5e #lli"3 a%e t5e (i%e!t%, # t5e !&$a"': Sri 0.SeetharamaiahSmt. .
'huvanes"ari Sri M. Sivarama Karaprasad Sri R.S.'akkannavar $he )ompany "as
registered as on 'anking 1inancial nstitution on Fth 0ay of 0ecember 779 by
Reserve 'ank of ndia as a 0eposit $aking )ompany under the category ire Purchase
)ompany.
?t Present the company is allo"ing 0airy 2oans to Small 1armers under $ie up
arrangement "ith eritage 1oods &ndia* 2imited. $he )ompany has been earning profits
from inception and functioning in conformity "ith the rules and directions of Reserve
'ank of ndia.
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CHAPTER-IV
DATA ANALYSIS
8
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INTERPRETATION
?GL GR%CP %1 $L RLSP%0L$S/
$he belo" table sho"s the age group of the respondents surveyed/
?GL o %f Respondents
9#(9 FE
(9#D9 (9
D9#E9 @
?bove E9 9
$otal @@
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1LRL)L/ 1rom the above table, FEH of the respondents belong to the age group of
9#(9 years, (9H of the respondents belong to the age group of (9#D9 years, @H of the
respondents belong to the age group of D9#E9 years, 9H of the respondents belong to the
age group of above E9 years.
%))CP?$% %1 $L RLSP%0L$S/
$he belo" table sho"s the type of respondents of the respondents surveyed.
%ccupation o %f Respondents
Student D6
'usiness 9
Private Lmployee (9
Govt Lmployee 9
$otal @@
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1LRL)L/ 1rom the above table D6H of the respondents are students, 9H of the
respondents are businessmen, (9H of the respondents are private employee, 9H of the
respondents are Govt employee.
?KG J%B2L0GL %R %$/
$he belo" table sho"s that "hether the respondents is having a t"o "heeler or not
aving Jno"ledge or not o of respondents
Ves 9@
o (@
$otal @@
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1LRL)L/
1rom the above table 9@Hof people having Jno"ledge Retail products and (@H are not
having Jno"ledge Retail products.
$VPL %1 1%%0 PR%0C)$S $?$ $L RLSP%0L$ S J%B/
$he belo" table sho"s the type of food products that the respondent kno".
$ype of food products o of respondents H of respondents
LR$?GL E( E(
S%PPLRS> S$%P E E
M%RL (6 (6
'G '?O??R F F
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21L S$V2L @D D
$%$?2 @@ @@
1LRL)L/
1rom the above table E(Hof the respondents are having LR$?GL food products.
EHof the respondents are having S%PPLRS> S$%P. (6Hof the respondents are having
M%RL food productss.FH of the respondents are having 'G '?O??R food
productss.DH of the respondents are having 21L S$V2L food products.
S%CR)LS %1 1%RM?$%
$he belo" table sho"s, from "here did the respondent get the information about the
1ood products.
Sources of information o of respondents
%ffers F
?dvertisements (3
Referred from friends : relatives DD
$echnology @
1inance Schemes F
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$otal @@
1LRL)L/
1rom the above table FHof people kno"n from offers, (3H of people kno"n from
advertisements, and DDH of people kno"n from their friends and relatives, @H of people
kno"n from technology, FH of people kno"n from finance schemes.
S?$S1?)$% B$ LR$?GL/
LR$?GL Style Performance 1eatures Price Auality Reliability
Service
providing eatness'rand mage
Lxcellent 7 F @ F @ @ @ 7
Kery good @ 7 6 D 7 F @ @
Good @ D ( F F F
?verage6 F @ @ 3 @
Poor @ @ @ @ @ @ @ @
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S%PPLRS>
S$%P Style Performance 1eatures Price Auality Reliability
Service
providing eatness 'r
Lxcellent 6 ( @ @ @ @ (
Kery good E F 6 3 9 ( 6 (
Good ( E F F @ ( 6 3 (
?verage @ ( F 9 6 @ ( D
Poor @ @ @ @ @ @ @ @ @
S?$S1?)$% B$ S%PPLRS> S$%P/
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S?$S1?)$% B$ 21L S$V2L/
21L S$V2L Style Performance 1eatures Price Auality Reliability Service providing eatness
'r
m
Lxcellent ( D 7 F ( 3 @ ( D
Kery good ( F 7 F E 6 F (
Good @ F D E F F 6 D 9
?verage F ( @ 6 @ F F
Poor @ @ @ @ @ @ @ ( (
S?$S1?)$% B$ M%RL/
M%RL Style Performance 1eatures Price Auality Reliability
Service
providing eatness
'rand
mage
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Lxcellent D 6 ( F 6 9 F 6 E
Kery good( F 6 E 6 6 E 6 9
Good 6 ( 9 7 D F 3 E F
?verage ( F 6 ( E 9 3 ( F
Poor @ @ @ @ @ @ @ @ @
$he follo"ing table sho"s, the main motive, "hich the respondents "ant to be in their
brand of food products.
Mai" Mtie N # Re,$"(e"t,H of respondents
Style
Performance (( ((
1eatures E E
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Price (( ((
Auality ( (
Reliability
Service providing ( (
eatness 3 3
$otal @@ @@
1LRL)L/
1rom the above table H of the respondents preferred S$V2L as their main motive,
((H of the respondents preferred PR)L as their main motive, EHof the respondents
preferred PLR1%RM?)L as their main motive, ((H of the respondents preferred
AC?2$V as their main motive, (H of the respondents preferred RL2?'2$V as their
main motive, H of the respondents preferred SLRK)L as their main motive, (H of
the respondents preferred L?$LSS as their main motive, 3H of the respondents
preferred 'R?0 M?GL as their main motive.
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S$V2L/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected S$V2L as their main motive.
'rand o of respondents
LR$?GL (E
S%PPLRS> S$%P DF
M%RL D@
21L S$V2L @
'G '?O??R @
$otal @@
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1LRL)L/
$he above table sho"s that S%PPLRS> S$%P and M%RL are the competitors
"ith LR$?GL.
PR)L/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected PR)L as their main motive.
'randN # %e,$"(e"t,
LR$?GL (3
S%PPLRS> S$%P 9
M%RL E(
21L S$V2L
'G '?O??R (
$otal @@
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1LRL)L/
$he above table sho"s that M%RL is the competitor "ith LR$?GL.
PLR1%RM?)L/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected PLR1%RM?)L as their main motive.
'rand o of respondents
LR$?GL EF
S%PPLRS> S$%P @
M%RL D@
'G '?O??R @
21L S$V2L F
$otal @@
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1LRL)L/
$he above table sho"s that LR$?GL is the best.
AC?2$V/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected AC?2$V as their main motive.
Auality o of respondents
LR$?GL FE
S%PPLRS> S$%P F
M%RL (
'G '?O??R F
21L S$V2L F
$otal @@
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1LRL)L/
$he above table sho"s that LR$?GL is the best.
RL2?'2$V/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected RL2?'2$V as their main motive.
Reliability o of respondents
LR$?GL E@
S%PPLRS> S$%P (
M%RL E@
'G '?O??R F
21L S$V2L D
$otal @@
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1LRL)L/
$he above table sho"s that M%RL is the competitor "ith LR$?GL.
SLRK)L/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected SLRK)L as their main motive.
?fter Sales Service o of respondents
LR$?GL F(
S%PPLRS> S$%P 9
M%RL (3
21L S$V2L D
'G '?O??R @
$otal @@
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1LRL)L/
$he above table sho"s that LR$?GL is the best.
L?$LSS/
$he follo"ing table sho"s that, some of the brands of Retail products respondents
selected L?$LSS as their main motive.
L?$LSS o of respondents
LR$?GL D@
S%PPLRS> S$%P @
M%RL (F
21L S$V2L @
'G '?O??R (F
$otal @@
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1LRL)L/
$he above table sho"s that LR$?GL is the best.
'R?0 M?GL/
$he follo"ing table sho"s that, some of the brands of Retail products respondentsselected 'R?0 M?GL is their main motive
'rand mage o of respondents
LR$?GL D@
S%PPLRS> S$%P @
M%RL D@
21L S$V2L F
'G '?O??R F
$otal @@
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1LRL)L/
$he above table sho"s that LR$?GL : M%RL is the best.
Respondents "ho "ant to buy the Shopping of a particular brand/
'rand o of respondents
LR$?GL EF
S%PPLRS> S$%P @@
M%RL (@
21L S$V2L @
'G '?O??R (F
$otal @@
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1LRL)L/
$he above table sho"s EFH of the respondents "ant to buy LR$?GL.
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CHAPTER-V
SUMMARY OF SUGGESTIONS
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SUGGESTIONS
• $he food products recently introduced by LR$?GL are mostly concerned
about Stylish Goods. So, they should also consider middle#class people also
• ndian market is a price sensitive market>s the food products should be at
Minimum price "ith maximum quality.
• $he standard of service should be improved.
• ?dvertisements in $elevisions, offers should be increased to attract the People.
• f LR$?GL can improve in S$V2L and L?$LSS it "ill be the best in all
the %ther competition brands.
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C5a$te% >
CONCLUSIONS
FINDINGS
BIBILIOGRAPHY
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CONCLUSIONS
• E@H of the respondents are LR$?GL customers and hence it is most
Preferred Retail products brand out of various brands.
• LR$?GL 0?R is the most preferred out of ?ll others
• 6@H of the respondents are considering LR$?GL brand before Purchasing
their retail needs.
• Most of the respondents are getting information through friends 'efore
purchasing the retail brand products.
• Most of the respondents are having good satisfaction "ith Service comparing
to other brands.
• Most of the respondents are giving more preference to Auality.
• 6@H of the respondents are affecting by their friends and relatives.
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FINDINGS
• E@H of the LR$?GL customers are employees and (7H of the customers are
others.
• Most of the respondents belong to the age group of 9#E@ years.
• LR$?GL 0?R : RL$?2 Products is the most preferred in the LR$?GL
products.
• Most of the respondents getting information through the Media and friends before
purchasing the vehicle.
• Most of the respondents are motivated by their friends and family members.
• Most of the respondents have good satisfaction "ith the performance of outlets.
• 6EH of the respondents are satisfied "ith the Auality of their Products.
• Most of the respondents felt that the price is reasonable.
• )ent percent of the respondents satisfied "ith the response of the sales executive
at first visit.
• 6@H of the LR$?GL users have good satisfaction "ith the services given by
the company.
• Most of the respondents are satisfied "ith the response of the company to the
complaints given by the customers.
• Most of the respondents are satisfied "ith the fulfillment of promises by the
company.
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BIBILIOGRAPHY . $%TH& '$ME E(EED )&&*+
• P22P J%$2LR Principles of Marketing 5 th Ldition
Prentice all ndia.
• P22P J%$2?R Marketing Management 5 Millennium
Ldition.Prentice all ndia
• K.S.R?M?SB?MV : Marketing Management #3th Ldition
?M?JCM?R Millennium ndia 2td.
• R)?R0 R S$22 Sales Management #Fth Ldition
Prentice all ndia.
• G.).'LR Marketing Research #6th Ldition
$ata McGra" ill )o.2td.
• 2C)J 0?K0 : Marketing Research #3th Ldition
R%' R%?20 Prentice all ndia.
BL' S$LS
""".heritagefoods.com
""".retailinginindia.com
"""birlagroup.com
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""".S%PPLRS> S$%P .com
)hapter 3
?nnexure
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ACLS$%?RL
'CVG M%$KLS 1%R RL$?2 'CSLSS
Gender/ Male Fe&ale?????? A3e: ???? Hi35e,t E(!ati"al
0ali#i!ati":???????????????
Q.1) How Often you visit Heritage store: …………………………..
Q.2) What is the best in Heritage store:?
1) Infrastructure 2) Arrangeent
!) "ervice #) $one
Q.!) %ate the Heritage service ?
a) &oor b) 'o(erate c) "atisfactory () oo( e) e*ce++ent.
Q.#) ,y-e of faci+ity:………………………………..
a) "e+f serve
b) u++ serve
c) /oth
Q.0) Are you satise( by custoar service -rovi(e( at Heritage retai+store
a) 3" b) $O
Q.4) What is your Average bi++ that you a5e here:………………………
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Q.6) In which way you -referre( in buying Heritag /ran(
a)O7er b)a(vertiseent c),echno+ogy ()inance sches
Q.8) Avai+abi+ity of -ro(ucts at Heritage retai+ store is ?
a)e*ce++ent b)very oo( c)oo( ()Average e)&oor
Q.9) %ate the -rices in(e*e( here re+ating to 'ar5et -riceOther stores?
a) ;ow b) 'o(erate<"atisfactory c) High
Q.1=) WHA, I" ,H3 'AI$ 'O,I>3 /3HI$ &@%HA"I$ H3%I,A3
&%O@,"?
"ty+e &erforance &rice
Qua+ity %e+iabi+ity "ervice
Q.11) Out of the fo++owing -ro(ucts which -ro(ucts are being so+( at yourretai+
Out+et?&+ease tic5 at a--ro-riate -+ace)
,y-e of &ro(uct our res-onse
roceries
'
$O$B'