Chroma vs Vijay Sales

8/11/2019 Chroma vs Vijay Sales

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INDUSTRY PROFILE

ABSTRACT:-

This paper provides detailed information about the growth of retailing industry in India. It

examines the growing awareness and brand consciousness among people across different socio-

economic classes in India and how the urban and semi-urban retail markets are witnessing

significant growth. It explores the role of the Government of India in the industry growth and

the need for further reforms. In India the vast middle class and its almost untapped retail

industry are the key attractive forces for global retail giants wanting to enter into newer

markets, which in turn will help the India Retail Industry to grow faster. The paper includesgrowth of retail sector in India, strategies, strength and opportunities of retail stores, retail

format in India, recent trends, and opportunities and challenges. This paper concludes with the

likely impact of the entry of global players into the Indian retailing industry. It also highlights

the challenges faced by the industry in near future.

INTRODUCTION:-

The India Retail Industry is the largest among all the industries, accounting for over 10 per cent

of the country GDP and around 8 per cent of the employment. The Retail Industry in India has

come forth as one of the most dynamic and fast paced industries with several players entering the

market. But all of them have not yet tasted success because of the heavy initial investments that

are required to break even with other companies and compete with them. The India Retail

Industry is gradually inching its way towards becoming the next boom industry. The total

concept and idea of shopping has undergone an attention drawing change in terms of format and

consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has

entered into the Retail market in India as is observed in the form of bustling shopping centers,

multi-storied malls and the huge complexes that offer shopping, entertainment and food all under

one roof.


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A large young working population with median age of 24 years, nuclear families in urban areas,

along with increasing workingwomen population and emerging opportunities in the services

sector are going to be the key factors in the growth of the organized Retail sector in India. The

growth pattern in organized retailing and in the consumption made by the Indian population will

follow a rising graph helping the newer businessmen to enter the India Retail Industry.

In India the vast middle class and its almost untapped retail industry are the key attractive forces

for global retail giants wanting to enter into newer markets, which in turn will help the India

Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern

retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India

dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7

billion business, growing at over 20 per cent per year. The future of the India Retail Industry

looks promising with the growing of the market, with the government policies becoming more

favorable and the emerging technologies facilitating operations.

GROWTH OF RETAIL SECTOR IN INDIA:-

Retail and real estate are the two booming sectors of India in the present times. And if industry

experts are to be believed, the prospects of both the sectors are mutually dependent on each

other. Retail, one of India largest industries, has presently emerged as one of the most dynamic

and fast paced industries of our times with several players entering the market.

Accounting for over 10 per cent of the country GDP and around eight per cent of the

employment retailing in India is gradually inching its way toward becoming the next boom

industry.


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RECENT TRENDS:-

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes

up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at 24%

Ranked second in a Global Retail Development Index of 30 developing countries drawn

up by AT Kearney.

Multiple drivers leading to a consumption boom:

o Favorable demographics

o Growth in income

o Increasing population of women

o Raising aspirations: Value added goods sales

Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban

Phenomenon with affluent classes and growing number of double-income households.

More successful in cities in the south and west of India. Reasons range from differences

in consumer buying behavior to cost of real estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected in the share of the

rural market across most categories of consumption.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay to radically

change buying behavior across the globe.


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RETAIL SALES IN INDIA:-


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Objectives of the study:-

1.To find out the buying behavior of the customers coming to Croma and Vijay Sales.

2. To determine the current status of Vijay Sales and Croma.

3. To find out the customers response towards Vijay Sales and Croma.

4. To study the satisfaction level of customers in different attributes of Vijay Sales and Croma.

5.To identify main competitors of Vijay Sales and Croma.

Croma:-


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TATA Croma Retail (formerly known as Infiniti Retail Limited) is an Indian retail chain for

consumer electronics and durables. Established in 2006, it is a 100% subsidiary of TATA Sons

Ltd. It offers 6,000 products and 180 brands in eight categories. These categories include Phones,

Camera, Computers, Entertainment, Home Appliance, Kitchen Appliance, Gaming and

Accessories.

About Croma:-

Indias first national , large format, specialist retail chain for consumer durable& electronics

Croma is owned and run by Infiniti Retail Limited Infiniti Retaila 100% subsidiary of Tata

Sons.

Woolworths Ltd provides technical support and strategic sourcing facilities from its global

network.

The first Croma store was launched in Juhu, Mumbai on

October 9, 2006

Croma has over 180 brands and 6000 products

Plush stores, floor space between 15,0000 to 20,000 sq. feet

15 Stores currently located in 5 cities.

Croma planning to open 100 stores across India.

OBJECTIVES OF STUDY:-

To understand different aspects or the pillars of the modern retail formats.

To learn and study the exact difference between the organized and unorganized formats in

electronics retail.

To analyze the proper attributes that create difference between the two retail chain of the

same categories.

To compare ambiance of two different modern outlets i.e., at Tata Croma and Vijay sales as a

part of strategy to retain and attract the customers.

Design of store:-


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Design of store our stores are large (15,000-20,000 sq ft), well-planned and designed to make

shopping a pleasure. The world class in-store experience is backed by robust after-sales service.

First there was mobile shop then after laptop & then home theatre.

Brand image Brand Philosophy:-

If service wasn't important.

If technology wasn't complex.

If variety wasn't confusing. We would have no reason to be in business.

We help you buy.

Strength:-

Croma sales people have visited clients' homes to measure the size of their bedrooms and

recommend a TV. They have also visited kitchens to measure the space left by the architect for

the fridge and recommend one accordingly. Croma also makes recommendations, based on the

energy- and water-saving potential of the products.

Croma products:-

Croma has over180 brands and 6000 products for you to choose from below?


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Own brand

Computers

Home appliances

Communication

Gaming

Small applications

Large application

Imaging apart from that Croma, plans to launch new products in rich categories such as

jewellery.

Products:-

Large Appliances- refrigerator, AC washing machine

Small appliances- Microwave woven

Computers- home PCs, laptops

Music and DVD- audios and videos CDs, DVD Communicators- mobile phone

Imaging- digital camera camcoder

Gaming home entertainmenthome theatre TV &DVD player

Why Croma?


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Widest range of products:-

Choose from 6000 products across eight categories.

We help you buy:-

Sound and knowledgeable advice from well-trained advisors to help you make informed buying

decisions.

A name you can trust:-

Croma is promoted by Infiniti Retail Ltd, an initiative of the Tata group, a brand that stands for

trust and reliability globally.

Customer commitment:-

Croma not only gives you a world-class shopping experience, but also backs it with great after-

sales service.

Great deals and offers:-

Croma periodically offers exciting deals on all your favorite products.

A first of its kind:-

Consumer electronics and durable retail is a fragmented segment and has been largely catered to

by regional players.

Croma is the first of its kind:-

Large-format, specialist and pan-Indian.

Infinite retail limited:-

About Infiniti Retail Limited Infiniti Retail Limited is a 100% subsidiary of Tata Sons. The

company has launched Croma, a national chain of mega stores of consumer electronics and


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durables. Infiniti Retail Ltd., owns and runs Croma's retail operations in India, while Woolworths

provides technical support and strategic sourcing facilities from its global network. The first

Croma store was launched in Juhu, Mumbai on October 9, 2006. Infiniti Retail Ltd plans to

launch stores across India in the coming months.

Stores of Croma in all over India:-

Delhi NCR

Aurangabad Hyderabad

Bangalore

Chennai

Gujarat

Pune

Mumbai

Store Formats:-

Croma Stand Alone Stores15,000 to 20,000 sq. ft.

Croma Stores located in Malls5000 to 10,000sq. ft.


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Store Design Objectives:-

Consistent with retailers image and strategy.

Positive influence on customer satisfaction and purchase behavior.

Cost effective & Flexible

Outlets of Croma In Mumbai:-

Malad

Santacruz east

Mahim west

Bandra west

Mira road west

Dahisar

CBD belapur

Vile parle

Vashi

Lower parel

Mulund west

Pratiksha Nagar

Planned to open outlet in Thane

Promotion schemes:-

Exchange schemes for T.V. & small appliance under certain circumstances.

They gives installation to submit payment.

They gives 0% of interest on their product. Promotion schemes.


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Product Overview:-

Technology simplifies life. At Croma, we simplify technology. We offer our shoppers one of

widest ranges of products and brands in consumer electronics and durables and a shopping

experience thatstruly world-class. You can choose from a number of products across eight

categories. Our trained and knowledgeable advisors will help you arrive at an informed decision

with their personalized advice.

Whether you want to increase your productivity with the latest notebook, tune into your favourite

music on the go, keep your cool in steamy weather with an AC, talk nineteen to the dozen on

your mobile phone or do your laundry in a jiffy with a fully-automatic washing machine, Croma

can help you make the right choice.

Concept:-

The central concept in the Croma store provide wide display of items allow the touch and feel

experience for customers and ensure that trained staff are always there to help customers to make

their right choice.

Ordering process:-

Branch manager pass the order to the head office.

Order according to availability of product

Bring product directly from warehouse.

Twice in a week.


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Bring products through contractor.

Target group:-

Middle class

Upper middle class

High class

Timings:-

Opening Time 12PM

WORKING Lunch Time 8 HOUR

Lunch Time 20 min

Closing time 8 pm

Total Number of staff at croma:-

2 person were present in counter.

10 staff with red t-shirt & black pant.

One female staff.

Two security guard.

Recommendation:-

They have to low down their price.

They have to increase product categories more than Vijay sales.

Expands their outlets.

Croma store should make some changes with lighting system to make the store look bright.


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More counter should be introduced in which cash and card payment counter differently.

Showroom should have more aisle space to move inside.

some offer and advertisement should make, to increase sale

As croma has there own products they should have some pamphlet advertisement.

Ratio of female worker and male worker should be 1:2

TATA CROMA SWOT ANALYSIS:-

STRENGTH:-

Trusted Brand TATA


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Trusted service offered

Strong presence in Indian Market

Attractive promotional offers

Wide reach all over India

Get wide range of products i.e. more than 6000 products.

Give EMI facilities to the customer with down payments of Rs 1****

Weaknesses:-

Still hasn't been able to reach across all major cities.

Faces huge competition.

They dont do advertisement

They dont distribute free pamphlets

No of show room are less

Costs off some products are high.

Threats:-

Croma have tough competitors like next Like Vijay sales, e-zone etc.

International and domestic players entering the market.

Continuous improvement in technology means difficult inventory management.

Opportunities:-

Opportunity to enter into other services like hypermarket.

Domestic expansion as well as going global.

More advertising to increase brand visibility.

They can increase their no of outlets.


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They can invest in advertisement.

They can distribute the free pamphlets.

They can put some hording on roads.

Vision:-

The vision of CROMA is to be the number one in the retail in electronics and durables products

in India, through quality products and delivery services (for larger products e.g... Washing

machine, refrigerator etc) CROMA should imbibe a world class system to bring in delight to all

our associates and the society at large.

Mission:-

The mission of our enterprise is to create unique customer satisfaction through innovation,

quality, productivity , human resources development ,continuously striving for excellence with

pride in our values and confidence in our approach.The overall mission of CROMA is to be the

first choice of the customers.

Conclusion:-

Visit to the CROMA outlet was an overall impressive experience. CROMA is one of the

biggest retail chain for consumer durables and electronics. It has wide range of products and

brands to select from. CROMA not only gives a world class shopping experience but also

backs it with great after sale service.


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CROMA periodically offers exciting offers to its customers especially on 15th august and

26th January every year.

Around 250-300 people visit it every day and around 500 people visit it during weekends.

There was also some of the drawbacks which we found in the CROMA store.

Lighting system of the store was not adequate.

Store was quite congested. Overall it was a great experience for our group to visit the

CROMA store.

Vijay Sales:-

Introduction:-

Vijay Sales is an Indian electronics retail store chain based out of Mumbai. It is headquartered

in Kandivali, Mumbai. Vijay Sales was started as a small TV showroom at Mahim by Nanu


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Gupta in 1967. It currently operates 52 stores across the states of Maharashtra, Gujarat

and Delhi. and has more than 9,000 Products to choose and is located in prime location all over

India and has 9 stores in Delhi, 1 store in Gurgaon,4 stores in Ahmedabad, 2 stores in Surat, 17

stores in Mumbai,4 stores in Thane, 2 stores in Kalyan, 2 store in Vasai, 4 stores in Navi

Mumbai, 7 store in Pune, 1 store in Vadodara. Two more stores are going to be open in Nagpur

by 2013.

History:-

Vijay sales was founded on 1967 as a small Television Showroom by Mr. Nanu Gupta

in Mahim, Mumbai as Vijay Television Store. In 1981 it changed its Name and Corporate

structure to present it. Vijay Sales has long since evolved into one of Mumbais leading chain of

electronic superstores, now having expanded to major cities across India. by 2012 it has Spread

from Mumbai to Pune, Surat, Nagpur, Delhi and all other major cities in India. It has since got

many awards for its service and Goods it has delivered. It has launched a special Apple products

section and stores.

Corporate Structure:-

Vijay sales corporate Headquarters in V Mall Thakur complex,Western Express Highway

(WEH), Kandivali, Mumbai. It is head by Nanu Gupta who isFounder and Chairman of Vijay

sales and is followed by his two sons Nilesh Gupta who is CEO of the company and Ashish

Gupta who is CFO of the company. By March 2012 Vijay sales has more than 3,000 employees

and a well connected supply chain and Warehouses at it disposal. It also maintain an online

Electronic shopping site to stay ahead of its competitors.

About Vijay Sales:-

Vijay Sales (VS, the Company) is the largest retail chain selling electronics, consumer

durables, white goods and appliances. It has its head office at Mumbai, over 60 stores, 5

warehouses across the country. Stores are across Mumbai, Pune, Thane, Ahmedabad, Surat, New
http://en.wikipedia.org/wiki/Western_Express_Highwayhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Western_Express_Highway


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Delhi, Gurgaon, Noida. The Company keeps adding more locations periodically. It has a staff of

over 1500.

VS has been known to be ahead of the rest in adopting technology to manage its business and

improve efficiencies.

Objectives of the study:-

1.To find out the buying behavior of the customers.

2. To determine the current status of Vijay Sales.

3. To find out the customers response towards Vijay Sales.

4. To study the satisfaction level of customers in different attributes of Vijay Sales.

5.To identify main competitors of Vijay Sales.

Retail Philosophy:-

By the people, for the people and of the people retailing involves selling products and services

to consumers for their individual or family use. As the final link between consumers and

manufacturers, retailers are a vital part of the business world. Retailers add value to products by

making it easier for manufactures to sell and consumers to buy.

Design of store:-

Area of 2,000 to 3,000 sq. feet and is set up at a cost of Rs.7 to 8 million for iStores

Design of store-20,000 to 25,000 sq. ft. & investment of Rs.3000 per sq. ft

Super Facility:-

Experience Zones to simulate true-life conditions

Vijay Sales ResQOnline Solution (24*7 hrs)


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All the electronic durable under one roof

Extended warranty plans

Easy Home delivery facility

Reliable after sales services

Business Model:-

Understanding your Requirements.

Product/Service Consulting.

Identify Installation and delivery needs.

Best Fit proposal.

Product Category:-

Mobiles

Cameras

Household electronics

Home appliances,

Computers

Gaming Office electronics equipment

Mobiles:-

Mobile Phones

Bluetooth Headsets

Cameras:-

Cam cords


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Digital Cameras

Digital SLR cameras

Household electronics:-

Audio and video products like TVs, DVD players

Electronic musical instruments

Car audio players

LCD TV

LED TV

Home appliances:-

Washing Machine

Water Purifier

Microwave ovens

Vacuum Cleaners Refrigerators

Air Conditioners

Air Coolers

Fans

Geysers

DTH

Computers:-


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Desktop

Laptop

Keyboards

Webcam

Printer

Scanners

Computer Process

Antivirus

Ultra books

Notebooks

Tablets

Gaming:-

Gaming Consoles

Games

Latest Video & computer Games

Office electronics equipment:-

Digital Projectors

Office Printers

Fax machines

Photocopiers

Videoconferencing System

Office chairs

Major Business Locations:-

Hyderabad


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Bangalore

Delhi

Mumbai

Chennai

Research methodology:-

Technology, customers tastes and preferences play a vital role in todays generation. Research

Methodology is a set of various methods to be followed to find out various informations

regarding market strata of different products. Research Methodology is required in every

industry for acquiring knowledge of their products.

Research objectives:-

Primary objectives:-

To find out the buying behavior of the customers to Vijay Sales.

Secondary objectives:-

To determine the current status of Vijay Sales.

To find out the customers response towards Vijay Sales.

To study the satisfaction level of customers in different attributes of Vijay Sales.

To identify main competitors of Vijay Sales.

Mission:-


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We will be the trendsetters in evolving delivery formats.

Make consumption affordable for all customer segmentsfor classes and for masses.

We shall be efficient, costconscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united determination

shall be the driving force to make us successful.

Vision:-

Vijay Salass vision is to, deliver Everything, Everywhere, Everytime to Every Indian

Consumer in the most profitable manner.

Vijay Sales considers Indian-nessas a core value and its corporate credo is - Rewrite

rules, Retain values.

Strategies for Success:-

To be heard you need to shout rather than rest.

Rewrite rules of games. Keeping

Family income in mind.

Understanding customer behavior.

No forecasting.

Size.

Killing Rumors.

OBJECTIVES:-


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1. To analyze how the mix influence the customer satisfaction level.

2. To determine the current status of Vijay Sales.

3. To study the satisfaction level of customers with regard of Vijay Sales.

4. To find out the buying behavior of the customers coming in to Vijay Sales.

5. To identify main competitors of Vijay Sales with regard to services.

Vijay Sales use 8 golden rules to deal with Customer Services.

Answer the phone.

Dont make promise unless you will keep them.

Listen to your customer.

Deal with complaints.

Be helpful.

Train your staff to be always helpful, courteous and knowledgeable.

Take the extra step.

Throw in something extra.

Customer satisfaction in Vijay Sales:-

The degree of customer satisfaction you deliver determines the level of

long- term success you will achieve in business.

Customer satisfaction their top priority:-


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Don't just make sales. Create customers - satisfied customers. In addition to the immediate profit

they provide on the first sale, satisfied customers help you build your business in 2 other

important ways:

1. They become a reservoir of repeat buyers. For some businesses that means repeat buyers for

more of the same product or service. For every business, it means buyers for additional products

and services.

2. They automatically refer more business to you from their friends and business contacts. This is

highly profitable business for you because it doesn't cost you any time or money to get it.

Customer oriented Strategy:-

Attracting & retaining customers.

Uses Non- Traditional Strategy.

Used young population as strategic blessing.

Attractive Design, interior & good atmosphere.

Vijay Sales SWOT ANALYSIS:-


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1. Strengths:-

Everyday low pricing

Point of purchase

Experience marketing team executive staff

Emphasis on providing total customer satisfaction

Variety of stuff under single roof

Maintain good employee-employer relationship

2. Weakness:-

Failing revenue/sq.ft

Unable to meet store targets

Unavailability of popular brands

3. Opportunities:-

Population of country is growing where the scope of market is kept on increasing for

retail sector.

Evolving consumer preference

Organized retail presently nearly 5% in India. So it acts as a great opportunities to the

organization for its growth.

4. Threats:-

Competition from organized retail players which are in market and are emerging.

Competition from local retailers.

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