Final(Details)

7/31/2019 Final(Details)

1/105

`7

EXECUTIVE SUMMARY

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. The term "retailer" is also applied where a service provider

services the needs of a large number of individuals, such as a public utility, like electric

power.

The ultimately goal of Reliance Super is to provide superior services to the customers and

achieve customer delight. The research of a departmental store was conducted to know the

segment of the customers at Reliance Super in Jamnagar. In this project sample size of 100

customers has been taken visiting the store regularly.

Surveys conducted by the use of Questionnaires. Moreover, the SWOT analysis model has

also been made used. To get better understanding of, a glimpse of retail including stores

strategy and local stores strategy is included. The objective of the research was to identify

the different segments of the customers visiting the store and to know their taste and

preferences towards the merchandise. Another objective behind the research was to identifythe demographic and socio-psychographic profile of the customers.

The use of exploratory method was done for the purpose of research. The major findings

were all the age-grouped people visited the store but maximum buyers belonged to the age

group of 20-30 years. The customers visiting the store were mostly graduates with an

average monthly income of 10,000-S20,000, the female gender was more in comparison to

male gender visiting the store. The customers preferred to buy products from Reliance Super

for the availability of branded products, Quality, Discount schemes and proximity to the

store. The maximum purchase of grocery and domestic products were done by the customers

From the research done at the store, it can be concluded that the store has to add its product

line and improve upon the freshness of F&V to attract more customers and to make it one

stop shop
http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Electric_powerhttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Sales


2/105

`8

INTRODUCTION

WHAT IS RETAILING?

Retailing is defined as a conclusive set of activities or steps used to sell a product or a

service to consumer for their personal or family use. The word retail is derived from the

French word retailer, meaning to cut a piece off or to break bulk .

A retailer is a person, agent, agency, company, or organization, which is instrumental in

reaching the goods, merchandise, or services to the ultimate consumer. Retailers perform

specific activities such as anticipating customer wants, developing assortments of products,

acquiring market information, and financing. Retailing encompasses selling through the

mall, the internet, door to door visit-any channel that could be used to approach the

consumer, they also perform the retailing function.

Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and

around eight per cent of the employment. Retail industry in India is at the crossroads. It has

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

the market. But because of the heavy initial investments required, break even is difficult to

achieve and many of these players have not tasted success so far. However, the future is

promising; the market is growing, government policies are becoming more favorable and

emerging technologies are facilitating operations.

Retailing in India is gradually inching its way toward becoming the next boom industry. The

whole concept of shopping has altered in terms of format and consumer buying behavior,

ushering in a revolution in shopping in India. Modern retail has entered India as seen in

sprawling shopping centers, multi-storeyed malls and huge complexes offer shopping,

entertainment and food all under one roof. The Indian retailing sector is at an inflexion point

where the growth of organized retailing and growth in the consumption by the Indian

population is going to take a higher growth trajectory. The Indian population is witnessing a

significant change in its demographics. A large young working population with median age

of 24 years, nuclear families in urban areas, along with increasing working-women

population and emerging opportunities in the services sector are going to be the key growth

drivers of the organized retail sector in India.


3/105

`9

DRIVERS OF CHANGE IN RETAILING

- Changing demographics & industry structure.

- Expanding computer technology.

- Emphasis on lower cost & prices.

- Emphasis on convenience & service.

- Focus on productivity.

- Added experimentation.

- Continuing growth of non-store retailing.

FUNCTIONS OF RETAILING

- Sorting

- Breaking bulk

- Holding stock

- Additional services

- Channel of communication

- Transport & advertising functions


4/105

`10

ELEMENTS OF RETAIL STORE ATMOSPHERICS.

Exterior atmospherics

- Storefront

- Marquee

- Entrances

- Display windows

- Size of building

- Visibility

- Adjoining stores

- Parking

- Accessibility

Interior atmospherics

- Flooring

- Lighting

- Odour

- Fixtures

- Wall

- Temperature

- Aisles

- Trial room

- Dead area

- Personnel

- Cleanliness

Store layout

- Floor space allocation for selling,

- E-display & customers

- Traffic flow

- Department location

- Space/merchandise category

-

Signage

Visual merchandising

- Assortment

- Theme

- Ensemble

- Racks & shelves

- Payment counters

Source: Oxford Retail management bajaj, tuli, srivastava.


5/105

`11

INDUSTRY DETAILS

RETAILING entails not just selling, but rather the art of selling with the right ingredients

that include merchandise, store design, sales people, product line and display Retail means

selling goods and services in small quantities directly to customers. Retailing consists of all

activities involved in marketing of goods and services directly to consumer for their personal

family and household use.

Retailing in India is gradually inching its way towards becoming the next boom industry.

The whole concept of shopping has altered in terms of format and consumer buying

behaviour, ushering in a revolution in shopping India. Earlier, it was a big contrast to shop

abroad and shop in India, but over the last five years or so the country has seen a remarkable

change in retail, not just the sales, but in the entire visual display of stores. One could notice

a significant change in the visual display of the stores, be it specialty or department. The first

sensory perception the eyes catch and convey the message to the brainthat this is the store

that needs to be dropped into is the faade. The Indian population is witnessing a

significant change in its demographics.

Earlier stores were highly unorganized. The maturity of the retail sector took place with the

establishment of retail stores in the locality for convenience. With the government

intervention the retail industry in India took a new shape.

Retailing covers diverse products such as foot apparels, consumer goods, financial services

and leisure. A retailer is the final stock point who makes products or services available to the

consumer whenever require. Hence, the value proposition a retailer offers to a consumer is

easy availabilities of the desired product in the desired sizes at the desired times. In the

developed countries, the retail industry has developed into a full-fledged industry. Huge

retail chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now

replaced the individual small stores. The retail industry in India gathered a new dimension

with the setting up of the different International Brand Outlets, Hyper or Super markets,

shopping malls and departmental


6/105

`12

FACTORS AFFECTING CONSUMER DECISION MAKING

Demographic factors

- Gender- Age- Occupation- Education- Family size- Income- Size of the population- Market segmentation- Birth rate, death rate

Psychological factors

-Motives

- Perception- Learning- Attitude- Personality

Environmental factors

- Physical environment- social environment-culture- sub-culture, social class

Lifestyle

- Activities & interests- Nature of occupation- Availability of leisure- Taste & preference of the

population-

Source: Oxford Retail management bajaj, tuli, srivastava.


7/105

`13

RETAIL INDUSTRY EVOLUTION

TRADITIONAL RETAIL SCENE IN INDIA

India is the country having the most unorganized retail market. Traditionally the retail

business is run by Mom & Pop having Shop in the front & house at the back. More than

99% retailers function in less than 500 sq.ft of area. All the merchandise was purchased as

per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or

by seeing at the face of customer. Generally the accounts of trading & home are not

maintained separately. Profits were accumulated in slow moving & non-moving stocks

which were to become redundant or consumed in-house.

The Changing Face Of Retail:

Liberalization of the economy in the nineties and the entry of large players in the retail

business have brought the retail industry into spotlight. Big players and national retail chains

are changing the rules of the game, in spite of their meager share in the overall retail trade.

Organized retailing though still in an embryonic stage has huge growth potential. In

organized retailing, the retailer is no longer just a last mile distributor. Experiential

marketing is becoming the paradigm of organized retailing and this has further raised the

significance of the retailer in the business value chain. Emergence of hyper and super

markets trying to provide customer with 3 Vs - Value, Variety and Volume.

Source:www.economywatch.com
http://www.economywatch.com/http://www.economywatch.com/http://www.economywatch.com/http://www.economywatch.com/


8/105

`14

DEMAND DETERMINANTS IN RETAIL INDUSTRY

Price

Price is an important element in the marketing, as customers are very price sensitive. Pricingis of different kinds such as maximum retail price, promotional price, odd price etc. If

pricing is innovative and exclusive and offering the right value to the buyers, it will bring in

more and more customers and help the retailer to retain them as well.

Income

The retailer needs to have a clear idea about the average household income and distribution

of this income in the area. This is very essential as level of income largely determines the

kind of retail facilities required. For example in a locality, where average income is lower a

high fashion retail store is unlikely to succeed. Not only income but the level and type of

employment also could indicate the preferences that the population may have for certain

products or services.

Availability of Finance Option and High Interest rates

The availability of finance is always the core ingredient for any enterprise and is even more

crucial for a new one. Most new businesses need more capital in the initial stage than at a

later stage of the project and organized retailing in no exception. As compared to other

industry, avenues of finance for retail sector in India are surprisingly very limited. Even

many developing countries around the world categories supermarkets as a part of social

infrastructure and lay great emphasis on their development but surprisingly in India, most

financial institutions are totally ignorant of this.

Apart from lack of avenues for resource mobilization, the retailer also faces hurdles in terms

of high interest costs. The most of financial institution in India do not even have the retail

business on their charter and while the rest of the world lends funds to retail companies at

interest rates ranging between 4 to 7 per cent per annum, in India the rate is ranging 16 to 20

per cent in most of cases. So, it prevents most retailers form holding an adequate inventory.


9/105

`15

Promotion

Promotional schemes help retailer to get short-term goals. Promotions may be price-led or

occasion-led in which case merchandise is offered by store only for occasions. Most retail

organizations run promotion during festive time. However it runs very frequently,promotions may prove detrimental to the image of and positioning of the store.

Lower average amount of sales transaction

The average amount of sales transaction at retail point is much less in comparison to the

other partners in the value chain. Many consumers buy products in small quantities for house

hold consumption. Due to lower disposable incomes, some consumer segments in India even

buy grocery items on a daily basis rather a weekly or monthly basis.


10/105

`16

INDIAN RETAIL INDUSTRY: STRATEGIES,

TRENDS AND OPPORTUNITIES

Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and

around eight per cent of the employment. It has emerged as one of the most dynamic and

fast paced industries with several players entering the market. The retail market is growing,

government policies are becoming more favorable and emerging technologies are facilitating

operations. Retailing in India is gradually inching its way toward becoming the next boom

industry. The whole concept of shopping has altered in terms of format and consumer

buying behavior, ushering in a revolution in shopping in India. Modern retail has entered

India as seen in sprawling shopping centers, multi-storeyed malls and huge complexes offer

shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of organized retailing

and growth in the consumption by the Indian population is going to take a higher growth

trajectory. The Indian population is witnessing a significant change in its demographics. A

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

areas, along with increasing working-women population and emerging opportunities in the

services sector are going to be the key growth drivers of the organized retail sector in India.

Large retail formats, with high quality ambiance and courteous, and well-trained sales staff

are regular features of the retailers.


11/105

`17

SIZE OF INDIAN RETAIL INDUSTRY AND PRESENT

SCENARIO

The size of retail industry in an economy depends on many factors and the level of consumer

spending is the most important among these factors. The retail sector in India has grown by

leaps and bounds in the last five years. The reason behind this growth has been the synergy

of many propellants. However the growth is not always genuine as there are exaggerations

as well. But these exaggerations also have benefits since they given a feel of growing

competition all around.

Secondly the present situation is just a depiction of nascent stage. The future of the

trajectory may not be as steep as it is now or may be even slope downward. 'What will be the

future size of the retail industry' is the mind boggling question. Another moot point that will

gain importance in due time concerns the future of the unorganized retail market which

constitute a significant proportion of the whole industry. The retail stores have proved to be

a vantage point for the customers. This implies that the small farmers who used to sell their

product in the sabji-mandis and on roadsides are going to lose a significant market share asthey can't employ the two profit maximizers-economies of scale and economies of scope.

Retail growth is already gathering momentum and the organized retail industry is expected

to grow by 30 per cent in the next five years. Thus, the growth potential for the organized

retailer is enormous.


12/105

`18

RETAIL FORMATS IN INDIA

Some of the prevalent relating formats in India include:

Malls:

Most malls give floor space out to individual shops on lease, and these are enticed by the

economies resulting from the sharing of costs. India's largest shopping arcade Spencer Plaza

(600,000-sq-ft) in Chennai is an example. In malls like these, the combined brand pull of all

outlets is used to create a pull for the mall.

Branded Stores:

Exclusive showrooms run by premium brands have been the catalysts in pushing up the

Indian retail scenario. This concept is now being used to introduce organized retailing to the

second rung towns. Madura Garments has started setting up exclusive outlets in cities like

Trichy and Thanjavur.

Departmental Stores:

Departmental Stores are expected to take over the apparel business from exclusive brand

showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in

Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even

has its own in store brand for clothes called Stop!.

Specialist Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,

RPG's Music World and the Times Group's music chain Planet M, are focusing on specific

market segments and have established themselves strongly in their sectors. Absence of

discounting as a dominant format of retailing in India is a glaring peculiarity. The reasons

are two-fold. Unlike most Western countries, Indian retailers have much less bargaining

power. They thrive as small store and don't have the clout to negotiate terms with the

manufacturers.


13/105

`19

DIFFERENT SEGMENTS IN THE INDIAN

RETAIL INDUSTRY

The retailing sector of India can be split into two segments. They are the informal and the

formal retailing sector. The informal retailing sector is comprised of small retailers.

For this sector, it is very difficult to implement the tax laws. There is widespread tax

evasion. It is also cumbersome to regulate the labour laws in this sector. As far as the formal

retailing sector is concerned, it is comprised of large retailers. Stringent tax and labour laws

are implemented in this sector.

If the retail industry is divided on the basis of retail formats then it can be split into the

modern format retailers and the traditional format retailers. The modern format retailers

comprise of the supermarkets, Hypermarkets, Departmental Stores, Specialty Chains and

company owned and operated retail stores. The traditional format retailers comprise of

Kiranas, Kiosks, Street Markets and the multiple brand outlets.

The retail industry can also be subdivided into the organized and the unorganized sector. Theorganized retail sector occupies about 3% of the aggregate retail industry in India.

Unorganized Retail Sector

The unorganized retail sector basically includes the local kiranas, hand cart, the vendors on

the pavement etc. This sector constitutes about 98% of the total retail trade. But Foreign

Direct Investment in the retail sector is expected to shrink the employment in theunorganized sector and expand that in the organized one.

Organised Retail Sector

In the organized sector trading is undertaken by the licensed retailers who have registered

themselves to sales as well as income tax. The organized retail sector has in their ambit,

corporate backed hypermarkets and retail chains.


14/105

`20

The organised retail sector can be further subdivided into:

1) Instore RetailersThis type of retail format is also known as the brick and mortar format. These retail stores

are in the form of fixed point sale outlets. They are specially designed to lure the customers.

There are different types of stores through which the in store retailers operate.

Branded Stores appear in the form of exquisite showrooms. Here the total range of a

particular brand is available and the quality of the product is certified by the government.

There are also multi brand specialty stores that sell a series of brands so that the consumer

can choose from the wide array of brands.

Department stores have a large number of brands and products catering to all basic needs to

luxurious items as well. Supermarkets are basically self service retail stores. Discount Stores

offer commodities at reduced prices.

In Supers customers have wide variety of products to choose from and they are also

available at discounted rates. Convenient stores are located in prominent places within the

reach of majority of the customers and do not operate in stringent work hours.

Shopping Malls are a storehouse of a large variety of retail shops situated close to each

other.


15/105

`21

THE INDIAN RETAIL INDUSTRYSKY IS THE LIMIT

In terms of the retail development index India ranks fifth. In Asia it occupies the second

position, next to China. Among all the global markets, the Indian retail market is the mostexpanding. This is owing to absence in restriction at the entry level. So the large foreign

companies can reap the benefits of economies scale by entering the green retail fields of

India. There are many reasons why the retail industry in India can reach the zenith.

Firstly the organized retail sector in India has a very low contribution to the entire retail

sector in the country. Hence there is ample scope for the new players to achieve success in

the backdrop of soaring disposable income of the upcoming generation.

Secondly, not only have the incomes increased but there has been a sea change in the

preferences of the consumers. These factors have acted as a stimulus for the ushering of

foreign players retailing in apparels, accessories, electronic appliances etc. Large shopping

malls have already mushroomed in the metropolitan cities. There still lies untapped potential

in the IndianRetail Market.


16/105

`22

COMPANY DETAILS

RELIANCE RETAIL LIMITED

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,

Reliance is aggressively working on introducing a pan-India network of retail outlets in

multiple formats. A world class shopping environment, state of art technology, a seamless

supply chain infrastructure, a host of unique value-added services and above all, unmatched

customer experience, is what this initiative is all about. The retail initiative of Reliance will

be without a parallel in size and spread and make India proud. Ensuring better returns to

Indian farmers and manufacturers and greater value for the Indian consumer, both in qualityand quantity, will be an integral feature of this project. By creating value at all levels, we

will actively endeavor to contribute to India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by

world standards. Through multiple formats and a wide range of categories, Reliance is

aiming to touch almost every Indian customer and supplier Reliance Retail Limited (RRL), a

subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail.

Reliance Retail Limited, a 100% subsidiary of Reliance Industries Limited started rolling its

stores in November last year and today operates over 472 stores in over 19 cities spanning 3

million Sq ft. Reliance Retail launched the eighth Reliance Super mini-mart in Gujarat

atJamnagar. Reliance Retail is India largest organized retail company with both Value

format &Specialty formats, with a pan India footprint, with over 1000 stores. The company

has recently changed management in value format and is on a fast expansion spree. There

are tremendous growth opportunities.

After the successfullaunch of ten formats Reliance Fresh, Reliance Digital, Reliance

Trends, Reliance Wellness, Reliance I store, Reliance Footprint, Reliance Jewels, Reliance

Timeout and Reliance Super, this is the second Reliance Mart to be launched in Gujarat.

Shoppers will have the option to choose from a wide array of products in every category

ranging from Fresh Produce, Food and Grocery, Home Care Products, Apparel and

Accessories, Non-food FMCG products, Consumer Durables and IT Accessories, Lifestyle

Product, Footwear, wellnessproducts.


17/105

`23

The revolution in organised retail in India can bring about unprecedented socio-economic

transformation in our country. Reliance Super is another step forward by Reliance retail

towards providing a superior shopping experience to all our customers. Reliance Mart seeks

to exceed its customers expectations by offering them a wide range of products and servic es

of guaranteed quality at unmatched affordability. Reliance Mart marks the achievement of

another milestone in our effort to unleash a retail revolution in India

The store planning, atmospherics and layout has beendesigned specifically to provide a

complete solution to the customer.Reliance Super will remain open from 10 am to 10 pm,

seven days a week. The store has over 38 highly skilled and trained customer sales

representatives.

Reliance claimed last year to start a retail chain that will be unique in size and spread, will

lead to the welfare of one and all ranging from Indian farmers, manufacturers and ultimately

consumers. It is known as Reliance Retail Ltd. (RRL) and is a 100 percent subsidiary of

Reliance IndustriesLtd.(RIL). Soon after the Bharti-Wal Mart tie up, there was the news that

RIL (Reliance Industries Ltd.) Chairman Mukesh Ambani met Commerce Minister Kamal

Nath to discuss the apprehension of cheap imports from China. Reliance Retail has plans to

open 4,000 outlets across 1,500 towns for an investment of $5.6 billion. Reliance is not away

from agro-business. According to BuddhadebBhattacharjee, Chief Minister of West Bengal,

Reliance will hold demonstration farming, produce good quality seeds and give inputs to

farmers. Its most significant participation has been in the food procurement business in

Madhya Pradesh and Punjab. This has in fact compelled the government to import wheat this

year. Reliance Retail has also been reported to have entered into an agreement with footwear

manufacturer Bata India Ltd. so that they will involve in selling each other's products.


18/105

`24

ORGANIZATIONAL STUDY:

SR NO. PARTICULARS PAGE NO

1 Introduction 26

2 Vision and mission 27

3 Tagline 28

4 SWOT analysis 29

5 Departmentation 34

6 Category management 35

7 Layout 388 Operations management 40

9 Supply chain management 43

10 Marketing Department 44

11 H.R. Department 47

12 Work of Employees 49

13 Financial management 50

14 Customer problems & their resolution 52


19/105

`25

RELIANCE SUPER-JAMNAGAR


20/105

`26

INTRODUCTION

RELIANCE SUPER took an initiation in Jamnagar district of Gujarat on 9th of July-2008.

The premises of the store cover the land of 17,000 square feet. It serves the customers with

20,000 SKUs i.e. products. It has its distant office at Ahmedabad district and main office in

Mumbai. There are more than 600 malls of Reliance in India and around 60 in Gujarat.

The first store manager was Mr. Ashish Pandey, but today the responsibility is handled by

Mr. Jaydeep Kanakhara and the Assistant Deputy Manager is Mr. Jitendra Goswami


21/105

`27

VISION AND MISSION

The Vision and mission of Reliance Super are:

To lead in competition

Reliance Super faces the competition from local vendors and also in future it has a probable

threat of upcoming malls in Jamnagar. The aim of the store is to beat the competition and

capture the customers from all over the city. In order to beat the competition it is designing

various promotional and discount schemes.

Satisfy , sustain and increase customers

GRAHAK DEVO BHAVAHA is the pledge which is taken by the employees every

day. The customer needs are paid utmost attention. The customer complaints and

grievances are handled and solved quickly to increase their satisfaction.

Example: Products are replaced in case of damaged.

To provide goods at low rates than competitors

Goods at Reliance are provided at RRP i.e. Reliance Retail Price rather than MRP. 85% of

goods carry some discount scheme in it. Local stores may not offer such discounts. It has

offers like discount of some percentage, buy 1 get 1 free, saving of some amount offers and

other hot offers.

Example: Smith and Jones Ketchup at 50% discount on MRP at Reliance Super which was

sold at MRP at local stores.


22/105

`28

TAGLINE

The tagline of Reliance Super addresses the customers satisfaction.

The tagline of Reliance Super firmly believes in -AAPKI KHUSHI, HAMARI KHUSHI

It interprets as Customers satisfaction is the aim of Reliance super.

The tagline of prices assures-

Reliance prices always low


23/105

`29

SWOT ANALYSIS

STRENGTH

The competitive advantages which Reliance Super possesses are:

VARIETY OF PRODUCTS

Easy availability of variety of products to satisfy customers is available at Reliance

Super. It has 20,000 SKUs. To serve the varied needs of different types of customers.

GOOD RELATION WITH SUPPLIERS

It has good relation with suppliers of local products i.e. for consumables like fruits and

vegetables, milk products, bakery items etc. All the transactions are on credit basis with

the local vendors. The payment period of which ranges from 7 days to 15 days.

EFFICIENT MANAGEMENT

The store manager also takes care of layout of the store, stacking at shelves, plannogram,

controls inventory at the warehouse, motivates and directs workforce, keeps a check overprices and promotional schemes, checks cash management and all the other functions

related to the store.

GOOD WORKING ATMOSPHERE

It has good working atmosphere and peaceful industrial relation between employer and

employees, also among its colleagues. The employees in the organization work in

harmony and co-operate with each other. They have a sense of belongingness to the

organization and are also dedicated towards their work.


24/105

`30

WEAKNESS

Few areas which Reliance Super needs to work upon are as follows:

INADEQUATE STAFF

It possesses inadequate staff due to which delay takes place to satisfy customer

queries. Moreover, one employee has to undertake more than one function.

Example: An employee supervising the apparels department may also have to undertake

the task of billing.

The book maintained for customer complaints consisted of maximum complaints of

unavailability of employees at CSD counter and CDIT department.

COLD STORAGE:

Due to summer season, the problem of freezing the cold drinks, milk products

arises at an adequate temperature. The products like cheese melted and customer complaints

like finger prints on it arise.

TECHNICAL DRAWBACKS

Sometimes due to technical drawbacks, the offers at shelves do not comply with the billing

system. In case of price change, the prices are changed in the system but the SEL are

unchanged or old priced packets are unsold which has less price printed than its current

price.


25/105

`31

OPPORTUNITIES

The available Opportunities for Reliance Super are:

LARGE SCALE OF CUSTOMER

Reliance Super can capture large scale of customer due to its location, product line,

promotional and discount schemes. It is a ONE STOP SHOP as all the necessary products

are available at one location, especially for the people who are migrants to Jamnagar and are

unaware about the demographics of the city.

PRODUCT LINE

Reliance Super can extend its product line as per customers requirements due to easy

availability of funds and other resources. The product line is decided by the main office at

Mumbai but recommendation can be made by the store manager as per customers demands

or suggestions/ feedback given by the customers.

INCREASE IN NUMBER OF STORES AND TIE-UPS

Reliance is planning to open up new stores with different formats and specialty stores all

over India and also Jamnagar in the near future. This will give rise to its sales and it will

have an opportunity to trap more customers. Moreover, it is also planning to build tie ups

with the western retailers entering India.


26/105

`32

THREATS

The challenges to be faced by Reliance Super are as follows:

MALL CULTURE

Mall culture is rapidly increasing in Jamnagar. People visit malls for branded products and

social reasons. Upcoming up of the Crystal mall in Jamnagar district is a threat for Reliance

Super. There is also a scope of other big malls to be established at Jamnagar in near future.

LOCAL RETAIL STORES

People prefer to buy from the local vendor due to credit facility, proximity, better relationwith the supplier etc. Some people have a false notion that prices at mall are high due to

which they do not prefer to buy from there.

The store has an availability of branded products only, people who cannot afford to buy

them, visit small stores to buy local products. Also, people residing at distant location and

have small purchases to make visit the small store than Reliance Super.


27/105

`33

A comparison between Reliance store and local stores:-

Point of difference Reliance store Local store

Price Expensive Average

Product availability Wide rangeLimited range due to the

space

Discount/schemesRegularly given by the

stores

No discount/scheme

available

Familiarity

No familiarity with stores

because employees are

changing after some period

of time

Due to the constant shopping

from one shop familiarity

with the shopkeeper

Atmosphere A.C. available in the storeA.C. available in some of the

shops

SizeHuge store and sufficient

spaceSmall or medium sized store.

Bargaining

Fixed rate of the products

therefore bargaining power

of the buyers is nil

Bargaining capacity of the

buyers is more

Service

Buyers themselves have to

search for the products they

need

Store keeper provides the

product on hand when

demanded by buyer

Home delivery

It is not provided for any

product except for few

electronics

Given for grocery and

electronics.


28/105

`34

DEPARTMENTATION

Departmentation is done for the ease of customers and management and also for easy

allocation of work among employees. The Store is divided into departments mainly on threebasis as follows. Under the three main heads, the sub departments are created.

The goods entering the store are physically checked through micro check. The data of

which is entered into the system before they are actually stacked into respectivedepartments.

Each department is headed by two or three employees who do the work of shelf help,

stacking, checking SEL & POP etc.

The departments are supervised by the ASM [Assistant Store Manager] or the store

manager.

Source: as per guided by the store manager

FOOD

Fruits andvegetables

Beverages

Dairy products

Process food

Confectionery

Staples

NON-FOOD

Personal care

Home Care

Baby careHealth care

LIFESTYLE

Apparels

Cosmetics

House wear Furnishing and

Decora

C.D.I.T.

Footwear


29/105

`35

CATEGORY MANAGEMENT

I. FOOD DEPARTMENT

1. FRUITS AND VEGETABLES:Minimum 35 SKUs are kept. Some of them are

Apples, mangoes , bananas, peach, potatoes,

tomatoes, onions, capsicum, carrots, coriander,

cabbage, cucumber, lemon, beet root etc.

2. BEVERAGES:Cold drinks, Tea, Coffee, Juices, Sharbat, Mineral water, Health drinks

3. DAIRY PRODUCTS:Milk, Butter milk, Ice cream, Cheese, Butter etc

4. PROCESS FOOD:Noodles, Ketch up, Soup, Biscuits, Papad, Oats, breakfast cereals, Instant food products,

vinegar

5. CONFECTIONERY:Toffee, chewing gums, Cadburys, wafers, jams, popcorn biscuits and other bakery items

etc

6. STAPLES:Puffed rice, wheat sugar oil spices condiments pulses other cereals etc


30/105

`36

II. NON FOOD

1. PERSONAL CARE:shampoos, bath soap, fairness creams, talc, deodorants,

gels, hand wash, bleaching creams, anti ageing creams,

hair dye, conditioner, hair oil, Shaving creams, tooth

brush, tooth paste, face wash, hair color, rose water, razor

& blades, scrubs, hair removing cream etc

2. HOME CARE:Detergents, toilet cleaners, Soap bar, utensil cleaner, cloth

pins, washing brush, brushes, mops, mosquito repellants,

disposable vessels etc

3. BABY CARE:Soaps, shampoo, tooth brush, toys, oil, baby foods dippers,

toys apparels bib socks footwear etc

4. HEALTH CARE:Eno, glucose bourn vita energy drinks &Juices etc


31/105

`37

III. LIFESTYLE

1. APPARELS:Mens jeans t-shirt shirt, formal wear, trousers

Women dress material sarees jeans t-shirt, Capri

Children wear-frocks, skirts t-shirts trousers shorts jeans etc.

2. COSMETICS:Nail-polish, talcum, deodorants, body lotions, anti-marks cream, eye-counter etc.

3. HOUSE WEAR:Jug, plastic bottles, steel utensils, lunch boxes, water bottles,

knives, etc.

4. FURNISHING AND DECORS:Hand napkins, dish napkins, bath towels, bed sheets, curtains,

mats etc.

5. C.D.I.T. [CONSUMER DURABLES INFORMATION TECHNOLOGY]Mobile phones, pen drive, refrigerator, television, DVD player, electric stove, Vaccum

cleaner, Water purifier, washing machine, Mixer grinder, handy mixer, Iron, Camera,

Fans tube lights , bulbs.

6. FOOTWEAR:Sandals sports shoes, mens formal shoes, baby foot wear, slippers .

7. STATIONARY:Pens pencil compass box pouches wax & painting colors note books pen stand ruler&

sharpener, sketch pens etc.


32/105

`38

LAYOUT

The layout of any store is an important decision to be taken as it the first factor which

attracts the attention of the customers.

Reliance Super has an attractive layout. Sufficient parking facilities are provided for the

customers. The customers belongings are secured outside the store in the racks under

the supervision of the guard.

The store is well lighted and ventilated with sufficient floor space. Huge hoardings are

placed outside the store for its promotion and add to the beauty of the store.

For the security inside the store, camera are connected with Ahmedabad distant office

and Mumbai head office

Racks, baskets, blogs, trolleys are well maintained in a queue and at their respective

place.

As per the rules of the plannogram designed by the main office, there should be only one

brand of the product in the row. In a gondola, there is a bay division which determines

the rows and columns to be maintained for a product.

A separate rack is maintained for free products at CSD and a mike for making

announcements for informing offers and for giving a call to employees.

A frame at CSD counter has to be stuck by use of magnet of A5 size which should

include the details of store manager

Floor stacking for cartons is done on a plank of 5 ft and POP is placed exactly in centre

Sufficient space is maintained between the racks for the customers to walk comfortably.

Cleanliness is maintained at every corner of the store.


33/105

`39

Centralized A.C. is provided for the comfort of the customers.

Hoardings are hung inside the store for highlighting the hot mega offers.

Shelf-help is done continuously throughout the day i.e. maintenance of shelf by cleaning,

dusting, Sorting and arranging the products, Placing SEL & POP and complying with the

plannogram.

The C.D.I.T. department, footwear, apparels, Stationary & toys, luggage &bags are in

the first floor of the store.

The Back of House is maintained by not storing the excessive stock and placing the

products in the rack to the fullest capacity within two hours of the arrival of the stock.

A separate Cash office is maintained in the store. A cafeteria, parking and adequate wash

rooms are maintained for the employees.

At the exit, the watchmen thoroughly checks the goods as per bill, places thank you seal

on the bill and the customer checks out of the store


34/105

`40

OPERATIONS MANAGEMENT

1) Operations Strategy: Common scanning method with HHT (Hand HeldTerminal)

2) Location Details: At the back of Trading area. Wide area facilitated for transportVehicles.

3) Maintenance Policy: Inventory is segmented according to product category likeApparels, CDIT, Home ware etc. Special Freezer and chiller available for maintaining

fruits, vegetables and beverages.

4) Procurement of materials & SCM: Through DC (Distribution Center) and DSD (Direct Store Delivery).

DC located in NarodaAhemdabad

CDIT from Sarkhej, Ahemdabad.

At EOD(End Of Day) stock is verified by use of software.

If products are out of stock, the number of units sold, automatically enters into the

system and is refilled/delivered by distribution center.

Purchase order note is written to vendors for purchase order in which following

particulars need to be entered:

No of articles

Description of the article

Weight & Rate of the articles

Date of goods sent

Names of Consignor & Consignee

Freight paid

Amount paid and outstanding amount

Manufacturing No.


35/105

`41

When stock enters in the store-invoice is received which isfed into the system with

the following details:

Serial no.

Article no.

Description

Quantity

Rate/unit

Tax rate in %

Tax amount

Other taxes

The data is fed into the computer and the same is stuck on the cartons by the

Distribution center. In case of products measured in carat it is first converted into pieces

inch wherein 1 c= 24 pieces and 1 inch =1 piece. Later GRN (Goods Received Note) is

entered into SAP. In case of goods not received note is written on distribution center.

The inventory is stored at Back of House, and later on loaders carry them on the floor as

per need.

5) Store Management:Auto engine system and Manual intendment system followed.

Auto engine System: It follows Nanogram technique using standard MBQ (Minimum

Batch Quantity).For every SKU (Special Key Unit) MBQ is to be maintained and if it

decreases, automatically product order is updated for refilling. Manual Intendment

System: Here, Store requirement is analyzed by Department Manager and accordingly

order is placed to raise PO (Purchase Order).

6) TQM: Quality for Food products is taken special care by focusing Manufacturingand Expiry date .For other. If expired food items are sold, then store is penalized. On

food products, if any quality issues are raised, Brand is penalized.


36/105

`42

7) Inventory Management: Segmentation done like Damage & Expiry cage ,Micro check

pending cage, High value item cage, marketing cage,

Consumer item cage , etc. Bays are maintained Brand wise and product wise as apparels,sports and games, etc.

Purchase of branded goods is done from distributor in Ahmedabad routed from

Noida-Mumbai

Order of milk products is placed twice in week from local

Damaged goods are sold for discounts as per customers willingness.

Expired goods are dumped at JMC.

Use of FEFO method i.e. First Expiry first Out is followed. Near expiry products areplaced at top for quick sales

Distribution Centre at Ahmedabad receives goods from various companies

In case of clash of trucks arriving at same time, first priority is given to frozen

products then to chiller then regular products

Stacking of inventory is done at every department after they arrive at BOH. If

Stock is in excess and the racks are not vacant then cartons can be placed on the floor

Posting date i.e. date on which stock arrives is entered into the system Few goods arrive late which are near expiry due to which dumping increases. The

cost of which is borne by the store.

In case code does not exist in system the product has to be dumped

Alien product are products which are chosen by customers , but not purchased have to

be appropriated by the employees.

If in system fewer prices are shown then actual then call lock is done and POP of not

for sale is stuck. A separate department at BOH has to be maintained for dumped products and a POP

has to be placed stating not for sale.


37/105

`43

SUPPLY CHAIN MANAGEMENT

1) Vehicle

2)

Loading3) Goods Received Notes (GRN)

4) Discrepancy

5) Report

6) Macro checking

7) Micro checking

8) Distribution centre (DC)

2) USE OF SOFTWARES:

SAP & RETALICS are made use of for maintaining inventory. SAP for stock in and

Retalix for issue of stock. The receipt and issue should match each other.

Receipt and issue of stock at the end of day can be seen along with time of sale

Retalix version 8.8.0.0-033 is made use of.

Vehicle

Discrepancy

Micro checking

Loading

Report

Distributioncentre (DC)

GRN

Macro checking

Stacking


38/105

`44

MARKETING DEPARTMENT

1) Target Market:Reliance township, Essar township, GSFC township and nearby towns and villages like

Khambhalia, Khavdi, and Jamnagar district.

2) Positioning Strategy:Our strategy of investing upfront in creating a solid back-end, especially a robust

supply chain, was the correct strategy. Wide categorization of products. It makes good

positioning into customers mind regarding the easy availability of the product. Reliance

Retail has adopted a multi-format strategy. It operates through multiple distinct formats

which are broadly classified into Value formats and Specialty formats. During the year,

even as they continued to grow at a steady pace, our Value formats Reliance Fresh,

Reliance Super and Reliance Mart reoriented themselves around a brand new expression

AapkiKhushi, HamariKhushi.

This simple, but powerful phrase embodies its vision to generate inclusive

growth and prosperity for all its key stakeholders including employees, farmers,

customers, vendors and supply chain partners. With respect to our Specialty formats too,each of them has developed its own winning formula for its market segment, and is currently

in the process of scaling up rapidly to become market leaders in their businesses .Seal of

thankyou is compulsory to be placed on the bill before exit. Talkers i.e. Reliance price

always low. Highlight offers, customer announcement, goods movement Seasonal products

highlighted. Voucher is issued for membership card if customer wants to for paying for a

product.

3) Product Details & Product Portfolio:Segmentation of product into categories like

a) Apparels-Mens ware, Womens ware, Children ware.

b) CDIT - Electric Items, Electronic Items like LCDs, Mixer Grinder setc.

d) Home wareFurniture, Furnishing & Decor, Gift Items

e) Lifestyledeodorants

f) BooksBooks & Stationery.


39/105

`45

g) FMCGBakery items, Fruits & Vegetables, Beverages, Wholesale Grocery,Dairy

products

h) NFMCGWashing Powder, Soaps, Shampoos.

i) Foot wareMens ware, Womens ware, Children ware.

j) LuggageTrolley, Tracking bags.

4) Channel of distribution:As it is Retailing sector, it itself acts as a distribution channel.

5) Pricing policy:

a)Loss leader policy- followed basically to sale the stock which is soon going

to be expired.

b)Bundling policy- Selling products earning higher revenue in Bundles along

with lower revenue earning complementary products.

Ex: Select Atta 5kg + Tirupati cotton seed oil 3L + 2kg R value sugar @ Rs. 315.

c)Discount offersavailable as % on MRP and sometimes directly available by

brands.

6) DISCOUNTS

THERE ARE 3 TYPES OF DISCOUNTS:

1. Monthly on apparels

2. Weekend discounts

3. Star of the week

7) POP[Point Of Purchase]While designing POP following things should be kept in mind:

Actual MRP is striked off 4 type of POP FREE BUY 2 SAVE


40/105

`46

8) HOT OFFER

Yellow coloured POP are used for promotion communication

White coloured POP are used for price communication

A5 size paper is used

It is placed in the centre of the row and no two POP are placed twice for same

product

They are placed in jackets

They cannot be used for F & V

9) SEL(SHELF END LABEL)

It is placed at the corner end of the shelf for each product to communicate price

along with name of product and its qty.

10) BINPROMOTION LOCATION

Bin are placed at the entrance for first attraction of the customers

POP is placed on a stand besides the bin

Bin should be wrapped on all the four sides with promotional offer

All the bins must be placed in order and POP must also be in a queue

11) BLACK SLATE FOR F &V

The slate is hung in the center of the F&V crate

It is divided into two parts wherein the upper half consists of description and the

latter half of qty and price in legible handwriting by use of chalk

12) FRAMESFor promoting staples A5 size frames are placed besides the bins used for loose

staples.


41/105

`47

H.R DEPARTMENT

1) Introduction :

Workforce is the live factor of the organization and is affected by feelings. They

have to be guided, motivated, and trained.

There are 38 employees employed in the organization and Employees work in 2

shifts from 9 a.m.to 6 a.m. or 1:30 p.m. to 10:30 p.m.

The work of staff maintenance is outsourced to strategic manpower solution. The

staff salary, recruitment functions are handled by it.

The staff is mainly divided into 5 parts:

Each department has its own sub- departments. Under each sub-department, two or

three employees are placed as per need, turnover and area occupied by that

department.

Reliance super also has a cleaners staff, repairer, electrician, security staff

employed.

Timely salary is paid to the employees but no incentives are provided

Provident fund is deducted and net salary is deposited in the respective accounts of

the employees.

Training is given to new employees off the job.

During recruitment, applications received are made use of. Telephonic interviews are

taken during selection of employees before they are called for a face to face

interview.

Groaning standard i.e. compulsory dress on floor area has to be followed by each

House keeping Security [SLM] Renters

Electrician

repairer Customer care


42/105

`48

employee.

Besides the, the above departments, Reliance has a B.O.H. team i.e. Back Of House

team which handled the issue and receipts of Goods from the Distribution centre to

the store.

Whenever any promotional offers come to the store, the employees are given priority

for the purchase of those goods , later they are placed for the customers.

Job rotation is practiced is the store to avoid fatigue among the employees.

2)Personnel Policy:

Grooming, discipline, dressing standards should be maintained.

3)Recruitment:

It is done through references given by employees.

4)Selection:.

Initially screening is done by store manager. Once the candidate is selected, HR manager

conducts telephonic interview and final selection is done.

5) Training and development:

Training is given by particular Department Manager to the CSAs and within every 6

months HR person comes from State Office for training the employees.

6) Performance appraisal:

Done by conducting award ceremony in every 6 months, by giving them certificates and

promotions.

7)Industrial relations (Dispute Redressal):

Done through personally guiding them and sort out disputes if any arises, through

mutual understanding.


43/105


44/105

`50

FINANCIAL MANAGEMENT

Banking transactions are done with ICICI and HDFC

THE CDM outsourced company takes the cash to the bank from the store for security

purpose

All the transactions are credit transactions. collection period is different for all

products

If there is shortfall then it is collected from billing boys

MODES OF PAYMENT

Credit and debit cards of every recognized company are accepted.

Sodexho & Accor cards are accepted only for food products only. They are submitted

to the company which in turn deposits that amount in its bank account. They are made

use of employees working at Reliance refinery and Essar refinery

R1 royalty cards are membership. On purchase of Rs. 100/- , 70 paisa are

accumulated or 1 point is scored. The voucher is issued when certain amount of points

are scored and goods can be purchased from that amount.

Gift vouchers are given to customers on purchase of goods of certain amount. These

Gift vouchers can be used to purchase another product on some discounted rates.

Credit & Debitcard

Sodexho&Accor cards

Gift voucherR1 loyalty

cards

Cash


45/105

`51

Example:

On purchase of goods worth Rs. 500/-, gift voucher of Rs 5000/- was given in which if the

customer purchased electronic goods worth Rs 5000/- then they were given a discount of Rs

500/- applicable from 10th June to 10th July.

WRITING OF CREDIT NOTE

Credit note is written by the CSD person for the following reason:

Exchange of product by the customer

Size problem

Product defect

Wrong barcode entered by the billing person

Other product purchase wrongly made by the customer

Double scanning is done at billing counter

Scheme problem due to IT fault

Damaged product received by the customer

Wrong price is entered by the billing person

Refund of amount

A separate register is maintained for writing of credit note in which following particulars

are noted:

date of writing of note,

Item replaced

barcode number,

name of customer,

Contact no

Qty replaced

QtyAmt

Problem of product

Bill no

Pose no(counter no)

Sign of both parties


46/105

`52

CUSTOMER PROBLEMS

Customer problems have to be resolved to the quickest to keep them satisfied. Few

complaints lodged in the complaint book and portal is as follows: Offer at gondola is not applicable at computer system

When there is increase in price of product, the new price is installed in computer and

old price are applicable on products package.

Open packets are sometimes found in gondola.

Stocked is messed up, so there is difficulty in finding products

Long Queues at cash counters due to which impatient customers leave the store

without making the purchases.

No refund on Sodexho cards is provided.

No salesman is available on 1st floor in CDIT department

CSD person are not available at counter

Unsatisfied answers for queries are received

Rude language by exit man

Giving of chocolates in place of change/coins.

Few prices are more than MRP

No demo for DVD player

Purchase is different and barcode is different in vegetables.

No priority for billing for senior citizens

Milk quality is poor

No quick services by staff. It is busy with gossips

No bulk stock available in F & V and cold drinks and unavailability of small

quantities.

When new permanent membership card is made in place of temporary one, the old

points are not accumulated due to system error


47/105

`53

RESOLVING CUSTOMER COMPLAINTS

Damaged products are replaced for customers

Damaged products are sold at discount

F&V is dumped and each day fresh F&V is placed.

Special seating arrangement is made for senior citizens

Milk products of various brands are made available

A.C. is provided for ease of customers.

Schemes are well explained by employees of the respective department to settle the

queries of customers.

Stacking is done systematically on daily basis for the consumer ease.

Product replacement is done if wrong purchase is made by the customer

Products with warranty are replaced immediately if they are damaged

The schemes on coupons are well interpreted by customer service desk

Suggestions of customers are taken into consideration and interpreted to the main

office.


48/105

`54

COMPETITORS DETAILS

The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving

behind the kiranas that served us for years. Such companies are basically IT based. The otherimportant participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies,

Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

TOP COMPANIES: AN ANALYSIS

SR NO PARTICULARS PAGE NO

1 Big Bazaar 53

2. Bharti Retaila 53

3 Pantaloons 54

4 Shopper Stop 54

Big Bazaar:

Big Bazaar is a chain of department stores owned by the Pantaloon Group(Future Group)and

headed by Kishore Biyani and headquartered at Mumbai. It offers all types of household

items such as home furnishing, utensils, fashion products etc. It has a grocery department

and vegetable section known as the Food Bazaar and its online shopping site is known as

FutureBazaar.com. The real estate fund management company promoted by the Future

Group expects to develop more than 50 projects across India covering a combined area of

more than 16 million sq. ft. On April 1 2007, Big Bazaar had to shut its outlets in Mumbai as

the 100 retrenched employees called a strike with the support of Bhartiya Kamgar Sena (the

trade Union wing of Shiv Sena). Later the management agreed to reinstate the sackedworkers.

BhartiRetaila:

Wholly owned subsidiary of Bharti Enterprises has announced two joint ventures (JV)with

the international retailing behemoth, Wal-Mart. The first JV ensures cash and carry business,

in which 100 percent FDI is permitted and it can sell only to retailers and distributors. The

second JV concerns the franchise 35 arrangement. Sunil Mittal, Chairman of the BhartiGroup assured that the ventures will use low prices every day and best practices for the


49/105

`55

satisfaction of the customer. Processed foods and vegetables will be delivered by Bharti

Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray every city with a

population exceeding 1 million. It has plans to come up with an investment of more than $2

billion in convenience stores, supermarkets and hypermarkets spread over an aggregate 10

million sq. ft. The expansion drive looks ambitious but analysts are worried that Bharti may

face stiff competition from Pantaloon and Reliance as they too have sanguine plans to flood

the markets with thousands of retail outlets in the coming five years. Bharti Telecom also

has plans to offer all its fixed and mobile telecom products and services from a single

window to the SMB (Small and Medium Business) enterprises under the Bharti Infotel

division.

Pantaloons Retail:

Pantaloon Retail India Ltd, is Indias leading retail company with presence across food,

fashion, home solutions and consumer electronics, books and music, health, wellness and

beauty, general merchandise, communication products, E-tailing and leisure and

entertainment. Headquartered in Mumbai (Bombay), has over 450 stores across 30 cities in

India and employs over 18,000 people. Pantaloon founded by Mr. Kishore Biyani. The

company owns and manages multiple retail formats catering to a37 wide cross-section of the

Indian society and its width and depth of merchandise helps it capture almost the entire

consumption basket of the Indian consumer. Founded in 1987, as a garment manufacturing

company, Pantaloon Retail forayed into modern retail in 1997 with the opening up of a chain

of department stores, Pantaloons. In 2001, it launched Big Bazaar, a hypermarket chain,

followed by Food Bazaar, a supermarket chain. It went on to launch Central, first of its kind,

seamless mall located in the heart of major Indian cities. Some of its other formats include,

Collection I (home improvement products), E-Zone(consumer electronics), Depot (books,

music, gifts and stationeries), all (fashion apparel for plus-size individuals), Shoe Factory

(footwear) and Blue Sky (fashion accessories). It has recently launched its retailing venture,

futurebazaar.com.

In India's chaotic markets, Kishore Biyani is the unchallenged king of retail. He has the

knack of catching rivals off-guard and striking where it hurts most. And now that he's set

himself the task of retaining control of the largest retail space in the country, he won't let

anyone - suppliers or international promoters included - catch him slacking. The latest to

face the wrath of the 43-year-old is South African hypermarket Shop rite, which opened


50/105

`56

shop in Mumbai last month through a franchise agreement with local company Normal

Lifestyle.

The hypermarket began retailing products from big boys Nestle, Unilever and Procter &

Gamble at consumer discounts of 20-30 per cent, lower than even Biyani's purchase prices in

his Big Bazaar and Food Bazaar stores.

Shoppers Stop:

The foundation of Shopper's Stop was laid on October 27, 1991 by the K.Raheja Corp.

group of companies Shoppers Stop aims to position itself as a global retailer. The company

intends to bring the worlds best retail technology ,retail practices and sales to India.

Currently, they are adding 4 to 5 new stores every year with an immense amount of expertise

and credibility, Shopper's Stop has become the highest benchmark for the Indian retail

industry Shopper's Stop in the only retailer 38 from India to become a member of the

prestigious Intercontinental Group of Departmental Stores (IGDS).With its wide range of

merchandise, exclusive shop-in-shop counters of international brands and world-class

customer service, Shoppers Stop brought international standards of shopping to the Indian

consumer providing them with a world class shopping experience. The stores offer a

complete range of apparel and lifestyle accessories for the entire family. From apparel

brands like Provogue, Color Plus, Arrow, Levis, Scullers, Zodiac to cosmetic brands like

Lakme, Chambor, Le Teint Ricci etc., Shoppers Stop caters to every lifestyle need .

Shoppers' Stop retails its own line of clothing namely Stop, Life, Kashish, VettorioFratini

and DIY. The merchandise at Shoppers Stop is sold at a quality and price assurance backed

by its guarantee stamp on every bill.


51/105

`57

UNDERSTANDING THE CONSUMER BEHAVIOR

TOWARDS SHOPPING STORES

INTRODUCTION:

Shopping, buying and utilizing are three activities which constitutes the consumer behavior

in a holistic manner

Gifts, clothing, groceries, gifts and household items are some of the most common type of

shopping which consumers indulge in a highly frequent manner.

Occasion and motives are also some crucial points which influence the consumers shopping

behavior. For example, for some consumers, shopping is all about getting the best deal out

of bargaining, for some (especially teenagers or the young crowd) shopping is a means of

getting acquainted and interact more with others in a social context and for some it is a way

of breaking out from the regular monotonous professional and personal routine

It is also possible, that the motives behind two consumers shopping at the same store could

be same or different. Same motives may arise as when the customers look for convenience,

shopping experience etc, whereas motives mat vary as a result of compulsion or by free

choice. Compulsion shopping happens when the customer is forced to indulge in shopping

and for him/her it could be a great deal of burden, in this case he/she will try to finish of the

work in minimum time that too with minimum effort. While for the other customer who see

shopping as a mean of enjoyment, may consider shopping as a form of sport, in this case

he/she will not mind sparing extra time and effort while searching and evaluating variousalternatives available to him.

Shopping is very distinctive in nature, its more to just purchasing what one wants but it also

includes the customers acceptance of the product, brand or stores as well, using multiple

senses like- seeing, smelling, tasting, hearing and even tasting (at times).

Solomon (1994), proposed five types of shoppers which he identified from his study on

customers of western countries. The following are the five types:


52/105

`58

The economic shopper:

A balanced and more coherent kind of customer who tries to get the best deal so as to utilize

his/her money efficiently and effectively.

The personalized shopper:

Customer who will only shop at a store with which he/ she has formed a strong attachment.

The ethical shopper:

Customer is very conscious and concerned about the local stores and will prefer them over

the big retail giants.

The apathetic store:

Customer who doesnt like to do shopping but does it because he/she consider as a necessary

evil.

The recreational shopper:

For this customer, shopping is a means of socializing, spending leisure time and for him/her

shopping is fun.

Reid and Brown(1996), proposes that the customers orientation towards shopping may

shed light into the way he/she indulge in shopping and it may also tell the reason why he/she

chooses a particular retail store. This would be of great help to marketers to design the Store

in a way so as to increase the shopping experiences of the customers and coping up with the

expectations and needs of the store customers; as Underhill (1999), observed that nowadays,

upon entering a store the environment is so vibrant

Source:http://www.ibef.org/industry/retail.aspx
http://www.ibef.org/industry/retail.aspxhttp://www.ibef.org/industry/retail.aspxhttp://www.ibef.org/industry/retail.aspxhttp://www.ibef.org/industry/retail.aspx


53/105

`59

CUSTOMER BUYING PATTERN

Men Women Kids Family couple old

Camera Cosmetics Stationery Bottles Milkproducts

Milkproducts

Cold drinks Grains Chips Chocolates Grains F & v

Hair care Vegetables Biscuits Stationery Namkeen Grains

Ready to

cook

vegetables

Plastic wear Chocolates Biscuits Juices Biscuits

Cooking oil Home wear Namkeen PlasticMilk

products

Washing

powders

Health

drinksBiscuits

Deo Bathing soaps Clothes F&v

Shaving

foamsSpices packets Talc

Shirts Papad Magi

Magi Crockery Milkproducts

Vegetables

and grainsToothpaste F &v

Hand wash Mats

Milk products Bags

Magi Grains

Shampoo DetergentKitchen

napkinsMukhvas

Foot wear Crockery

From the observation it can be concluded that Women were more attracted

towards discount and price offers.

Men emphasized more on brand while purchase of shirts and electronics


54/105

`60

RESEARCH


55/105


56/105

`62

RESEARCH OBJECTIVES

In context of this project study

Primary Objective:The main objective of this project is to know the different segments of the customers

visiting the store.

Secondary Objective:

To know the taste and preference of the customers visiting the store

Identification of the demographic profile of the customers

To find the socio-demographic profile of the customers


57/105

`63

RESEARCH METHODOLOGY

To meet the objectives primary research was undertaken. The research approach adopted

was exploratory type.

Exploratory research-the objective of exploratory research is development of hypothesis

rather than their testing.

In exploratory research, using Questionnaire as tool, it is explored that how segmentation of

customers with different demographic profile is done. Both, Primary and Secondary data is

used. Primary data was collected through Questionnaire and secondary through company

website, www.ril.com. The instrument used for the data collection was Ratio

&Questionnaire. The target respondents were the visitors of Reliance Super, with the sample

size of 100 for the study. Mainly, regular customers were targeted. Tables & charts were

used to translate responses into meaningful information to get the most out of the collected

data.


58/105


59/105

`65

Convenience Dimension:

Operating hours and time taken to reach the outlet are one of the main criteria which the

consumers look for while selecting a shopping outlet (Kaufman, 1996). As evident from the

theory of retail location, Consumers give higher preference to shopping outlet which is

nearby their homes. Loudon and Bitta (1993) also discovered that consumers seek high

convenience; they despise spending time and effort finding parking space, department or a

particular product; they also found that convenience is also an important criterion for

customers who are either visiting or making purchase in a mall very infrequently. Also,

according to Kaufmann (1996), consumers are getting more and more inclined towards a

one stop destination for their complete shopping desire, thereby complementing the theory

of emergence of the mall culture.

Escape dimension:

Malls, because of their exciting, lavish and sophisticated environments proffer a sense of

relief and break to the customers from the same monotonous and routine rituals of job and

personal works. Underhill (1999 and 2005) explained that many modern malls have started

to offer a myriad level of sensory stimulus. A trip to shopping malls can provide an

individual/family a very economic means of entertainment, leisure and recreation with a

great deal of effortless planning. This leads us to our third hypothesis:

H3: Shoppers motivation to go to a shopping mall will be higher when there is a higher

preference towards escape activity of the customers.

Exploration Dimension:

According to Tauber (1972), Malls attract shoppers by offering an opportunity to learn new

trends i.e. Exploration. Infact, customers perceive the process of accumulating information

by exploring various products or stores (both new and old) as a sense of benefit (Wakefield

and Baker, 1998). Consumers always look for new and upgraded product and their desire for

variety can only be met through the process of exploration. So, it is of utmost importance to

the mall management to offer a variety of products and alternatives for an improved mall

performance (Kaufmann, 1996).


60/105

`66

Flow Dimensions:

Bloch et al (1994) and Lui (1997) have explained the meaning of Flow as a blissful state

of absorption which is associated with the forgetting about the sense of time. For example if

the mall experience is good the customers will not mind the time which they have spent

inside the mall while shopping or enjoying and may even have a high desire to spend more

time inside the mall thus resulting in better performance of the mall. Moreover, visiting a

mall alone is also not perceived as a sense of negativity which however, is present in case of

watching movies alone or dining out alone.

Role enactment Dimension:

People behave in manner which is socially accepted or expected depending on the cohort

they belong to. For example, shopping of household items in Raipur is done by housewives

and shopping for clothes and other related accessories are done by individuals. Wakefield

and Baker (1998) observed that hedonic shoppers (those who seek pleasure in shopping)

were noticed to visit malls more than utilitarian shoppers (those fulfill the duty of shopping).

Solomon (1994) also elicited that some shoppers enjoy bargaining and that they see

shopping as a sport. Thus, in a nutshell we may say that consumers enact their social roles

by shopping or visiting a mall.

Social Dimensions:

Shopping offers an individual an opportunity to socialize, it often result in meeting up with

old friends or new acquaintances. Researches done by Tauber (1972); Wakefield and Baker

(1998) have posit that the opportunity of socialization is an important factor related shopping

experience. In addition to this, Loudon and Bitta (1993) have highlighted that most of the

people prefer to shop at location where employees behavior towards them are cordial and

courteous. Teens (even families) in particular have shown a great tendency of visiting and

recreating at shopping malls because of the economic cost of entry.


61/105

`67

PreetaVyas from IIM-Ahmedabad did

A RESEARCH PROJECT ON

PROJECT STUDY ON CONSUMER PREFERENCESWITH RESPECT

TO SALES PROMOTION IN FMCG CATEGORY

The Project Objectives were:

To study consumer preferences with respect to sales promotion at FMCG category.

To examine tradeoffs, relative importance of different attributes while responding to a sales

promotion offer with conjoint design.

To study variations in the preferences across different demographic variables.

To understand the media habits of the consumers.

The Research Findings is that Age, Family Income, Education, Occupation, Family type,

Household No. ,etc are attributes for measuring deal proneness. There are 72% respondents

for deal proneness. Price off offers with immediate incentive on a national brand &

awareness through point of purchase and awareness was created through word of mouth.

Mostly, all respondents prefer to read news papers to know about the promotional offers.


62/105

`68

AJAY KUMAR At Bangalore did


OPERATION MANAGEMENT IN RETAIL SECTOR

MAJOR FINDINGS

_ The Retail Sector in India can be split up into two, the organized and the unorganized. The

organized sector whose size is expected to triple by 2010 can be further split up into

departmental stores, supermarkets, shopping malls.

_ In terms of value the size of the retail sector in India is $300 billion.

The organized sector contributes about 4.6% to the total trade. The retail sector in India

contributes 10% to the Gross Domestic Product and 8% to the employment of the country.

In terms of growth the FMCG retail sector is the fastest growing unit relating to household

care, confectionery etc, have lagged behind the foreign retail giants were initially restricted

from making investments in India.


63/105

`69

Manjunath Reddy from AIMS, Hubli did


THE EFFECTIVE PROMOTIONAL STRATEGIES WHICH

INFLUENCES CUSTOMER TO PURCHASE A PRODUCT OF BIG

BAZAAR

The Research Objective is to know the effective promotional strategy which influence

customer to purchase a product of Big Bazaar. The Research Methodology used is Based on

the topic objectives were set and to arrive at the opinion on objectives a set of 100

questionnaires were designed of 10 questions and response is collected from the customers

who are visiting the store. For data collection Random Convenient sampling method was

adopted From the sample size of 100 samples it is found that the Brand is well positioned in

the minds of customers because 77% of the respondents preference is Big Bazaar for their

shopping.23% of people told that 1st they came to know through T V advertisement and

34% of people told that through hoardings 31% of them told that through news paper and

finally 12% of them highly agree that through bus painting.87% of them told that they are

aware of promotional activities of big bazaar .only 13% of them told that they are not aware

of promotional activity of big bazaar .51% of them told that they are attracted towards big

bazaar only for the offers 9% of them told that service and 23% of them told that quality and

only 17% of them told that due to availability of products


64/105

`70

Shalini Shrivastav of Maharaja Sayajirao University, Vadodara did


EFFECTIVENESS OF THE PROMOTIONAL SCHEMEAT BIG

BAZAAR

The research objective of this project is to know the profile of the customers.

. To identify Segment what is most preferred by customers in Reliance Super. To identify

the relation between Discounts offered and purchase intension of customers. From the

sample of 200 respondents, it is found that 72% of them are aware about the promotional

schemes offered by big bazaar and only 28% of them are not aware.From those who are

aware about the schemes they are mostly in FMCG and Apparels segment and most of the

respondents prefer discounts and price packs.The three most preferable schemes are Cash

Refund Offers, Price Packs, and Coupons. So, its founded that 55% consumers prefer Price

Packs and 47.5 % of them prefer Cash Refund as major promotional tools.Overall customers

prefer to take the advantage of promotional schemes during Weekends and Weekdays, as

they can take some time off for shopping during these periods. Big Bazaar have also fixed

one day, i.e., Wednesdays Bazaar where people can avail the benefits of the offers.77% of

them mostly get informed about these schemes mostly through Mass Media includes

Newspapers, Television and Print Media.The Brand, Price and Quality are well positioned in

the minds of customers because customer give more preference to these attributes for their

shopping.The purchase pattern of almost 70% customers is changed due to the promotional

schemes.


65/105

`71

Ms. ANJANI JHA Xavier Institute of Social Service, Ranchi did


RELIANCE RETAIL STORE OPERATION

OBJECTIVES:

- To identify the reliance marketing strategy in Ranchi

- We provide information to reliance fresh to focus on middle class consumers in Ranchi

- Implementation of this plan should not affect Other Retail store.

Findings:

Based on my observation I found that reliance fresh is not able to make an advertisement

properly as compare to big bazaar or other retail store which is its competitor. so company

should make a proper team to let the people aware about their schemes and offers being

given by reliance fresh. Company should increase the number of counter so that it may

minimize the quiet of the customers. Company should acquire more and more skilled people

so that itmay satisfied their customer in all areas. Company should pay kind attention

towards the existing customer and try to provide them quick response in the sphere of

services so that they become BSNLS loyal customers. Many corporate houses was there

who were reluctant to use BSNL lease line provided that someone assure them to have a

prompt services from them. Main competitor Airtel Tata and Reliance comes with various

schemes and margins on the other hand Bsnl is not giving any sort of scheme and discount

that is why many clients were inclined toward using the lease line offered by other players.

After all business is all about profit and retailer wants some profit and margins.


66/105

`72

RESEARCH DESIGN

According to Kipling Research design is the plan, structure and strategy of investigation

conceived so as to obtain answers to research questions and to control variance.

A research design is pattern or an outline of a research projects working. It is a statement of

only the essential elements of a study, those that provide the basic guidelines for the details

of the project. It comprises a series of prior decisions that taken together provide a master

plan for executing a research project.

A research design serves as a bridge between what has been established i.e. the research

objective and what is to be done, in conduct of the study to realize those objectives. If there

were no research design, the research would have only foggy notion about what is to be

done. There are numerous specific designs, which can be classified into three broad

categories.

Research design is the conceptual structure within which the research would be conducted.

In fact, it is the general blueprint for the collection, measurement and analysis of data.

In context of this project study

The object of study is to gain familiarity with a phenomenon or to achieve new insights into

it. So, the research design is EXPLORATORY type.


67/105


68/105

`74

Sample Size

Sample size of 100 is taken from the population at random..

Sampling Technique

Convenient sampling technique is used for the purpose of research.

Location

The data is collected from Reliance Super-Jamnagar at random with the help of

questionnaire.


69/105

`75

LIMITATION OF THE STUDY

Different person have different mindset so it is difficult to find what they want. In thisresearch some of the limitations are as follows:

1. This exploratory research is done focusing on Jamnagar region only thereforefindings and suggestions given on the basis of this research and cannot be considered

for the entire retail Industry.

2.

Due to limitation of time and cost constraints a sample size of only 100 are chosen.

3. Data Analys

Date post:	05-Apr-2018
Category:	Documents
Upload:	priyasangtani89
View:	220 times
Download:	0 times

Final(Details)

Documents