Project reportOnRETAIL INDUSTRY IN INDIA

Submitted to:Submitted by

Acknowledgement

It gives me immense pleasure to acknowledge my deep sense of gratitude to Mr. Kapil Sharma (Marketing Head) & Mr. Amit Verma (Departmental Head) for providing me an opportunity to enlighten me from their rich & varied experience during the different stages of my training.

The efforts put by me during the development of this project would not have been a success, had it not been for the people around me, who encouraged & help me at all times. I am also thankful to Mr. Sameer Mathur (Stores Manager) who encouraged me a lot. I am grateful to my friends & parents who helped me during the different stages of my project.

I owe this moment of satisfaction with a deep sense of gratitude to my Management Department who motivated me right from the beginning. The interest, skillful continuous guidance & constant supervision at every stage of project have been the greatest help to me to bring out this work in its present form.

(Priti Sharma) M.B.A-III sem

Declaration

I, Priti Sharma, the student of M.B.A. (III sem), TIT&S Bhiwani, hereby declare that I have completed this project myself during summer training under the title Retail Industry in India in Gurgaon, for a period of 8 weeks started from 4th June to 4th August.

All the information is wholly my own and original and not copied from anywhere else.

(Priti Sharma) M.B.A. III sem.

Contents

Industry Profile Company Profile Background Growth Pioneering Brands Concept & Evolution Retail space Business Division Big Bazaar Food Bazaar Pantaloon Performance Drivers Vision Rewards & Recognition Unit Profile Project undertaken Preface Research Design Population Sampling Procedure Sampling Unit Sample Size Data collection Method Limitations Data Analysis Conclusion Recommendations Annexure Questionnaire Bibliography

RETAIL INDUSTRY IN INDIARetailing occupies a pre-eminent position in all economies. Retailing includes all those activities that involve the sale of goods and services to ultimate consumers for personal, family and household use. Indian consumers are always known for its price sensitivity. Change in Indian retailing has been constant but the pace of development is fast over past few years. According to survey conducted by CII & McKinsey, the total number of retail outlets in India are more than 12 million. The survey estimated that retail segment in India contributes more than 10% to the GDP and employs around 8% of the total workforce. The high contribution is attributable to the fact that India has the largest retail outlet destiny relative to population. Compared to the number of retail outlets per 1000 people, India has 5-10 retail outlets where as it is just 3.7 in US. This itself highlights the extent of retail penetration in India.

TRADITIONAL VIEW:India is the country having the most unorganized retail market. Traditionally the retail business is run in a shop in the front of the house. Making India a nation of shopkeepers. The estimated number of outlets in India was 5.37 million in 1999. This means at least 5.5 outlets per 1000 people, the highest number of outlets per capita in the world. These outlets however, barely come within the organized sector.

CHANGING VIEW:Since Indian industry is showing changing faces, the retail industry is not an exception. Indian consumer wants big in less time. With the changing time, people are more occupied with work, office, family and children. With this change in their lifestyle their consuming pattern has also changed.

UPCOMING ORGANIZED RETAIL SECTOR:In the opening of 21st century, there is evidence of new forms of retailing. The retail market is becoming more segmented with retail formats focusing on the needs of a particular consumer groups. The traditional forms of independently owned small business and co-operatives are losing their market share in big areas, metro cities and satellite areas.

RetailerTurnover (Rs Cr)Total floor space(lakh sq. feet)Total no. of outlets

2003-042004-052003-042004-052003-042004-05

Pantaloon650130011.030.03174

RPG5458005.27.5110130-134

ShoppersStop4045456.38.51340

Lifestyle2303103.23.2715

Westside120-2.33.31418/19

Ebony851001.72.4812

Piramyd721401.35.037/8

GlobusN.A.-1.56.0 *714/15*

Foot Notes: *figures are for the year 2006-07.PROSPECTS:

According to CII-McKinsey report retailing in India is the biggest industry with gross sales totaling $180 billion and second largest generator of employment after agriculture. Retail industry is expected to grow at the rate of 15-20% per annum in the organized retail sector. The retail sector is expected to show maximum growth in the areas of Apparels, Food Retailing and Entertainment.Big format stores are classified into: - Retail malls Specialty stores Departmental stores Discount/Bargain stores Hypermarket Hybrid stores.

Though the numbers are few but the success stories of these retail formats can give the picture of retail potential in India. Pantaloons (Biyanis), Westside (Tatas), Lifestyles (ITC), Food world (RPG), Music World, Marks &Spencer and many more have made a landmark in Indian organized sector exceeding Rs.100 crore marks.

Company ProfilePANTALOONS PROFILE

Background:

Pantaloon Retail (India) limited was incorporated as Manz Wear Private Limited by Kishore Biyani on 12 October 1987, converted into public limited company in September 1991, renamed as Pantaloon Fashions (India) Limited a year later & thereafter into Pantaloon Retail (India) Limited in July 1999. The company is headquartered in Mumbai & possesses plants at Tarapore & Mumbai to manufacture garments.

Growth:Pantaloon reported a turnover of Rs 650 Cr in 2003-04, Over this period company has evolved as from a small manufacturing concern into Indias largest manufacture-retailer, integrated along the entire value chain. By the end of the first quarter of 2002-03, the companys presence had grown to 14 departmental stores & 4 hypermarkets. The company had 2,13,000 Sq Ft. of Pantaloons departmental stores & 1,72,000 Sq Ft. of Big bazaar discount stores (end of first quarter, 2002-03).Pioneering:Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before this was attempted by any other Indian retail company. The company was first to introduce the concepts of the retail departmental store for the entire family in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkatta in October 2001. And the company introduces the concept of Food Bazaar, a unique Mandi within a hypermarket, which was launched in July 2002 in Mumbai.

Brands:The companys retail presence is marked by visible & reputable brands like: John Miller, Bare, srishti, HNY, Annabelle, scotsville, Ajile, pantalength & Pantaloon (Indias no. one trouser).The company delivers adequate customer choice by stocking non competing & complementary brands owned by other manufacturers.Concept:Pantaloons introduced the concept of the departmental store. It stocked all the customer lifestyle needs from clothing, home needs, apparels, beauty accessories & other products. In doing so, the company addressed around 20% of the customers shopping basket. In 2002-03, the company took this initiative an important step further. It introduced the hypermarket discount store with more than 1,80,000 items --- food, grocery, utensils, kitchen needs, home needs, bath needs, toys, stationery, electronics & white goods- that now catered to nearly 60% of the customers shopping basket, translating into higher footfalls & turnover. Evolution:

1987-88 Product Driven: Began manufacturing trousers.

1988-92 Brand Driven: Bare and John Miller came in.

1992-97 Distribution Driven: Began focusing on wholesale, multi-level marketing to drive penetration.

1997-2001 Retail Driven: The stores came up, first own label stores, then department stores and other formats.

2001-04 Knowledge Based: Begins focusing on capturing internal knowledge on consumers, processes, locations..

By 2007, Pantaloons will be Design Driven organization.

Stage VStage VIStage IVStage IIIStage IIStage I

RETAIL SPACE: The company has 15 Pantaloon stores across some of the most attractive retail designations in India. These locations continued to be marked by people with a disposable surplus and a discernable willingness to buy quality products and pay commensurate prices for them.The companys coverage is given below:

S.No.Name of the storeRetail Space (Sq. feet)

1.Pantaloons, Gariahat, Kolkata16,000

2.Pantaloons, Hyderabad16,000

3.Pantaloons, Nagpur6,000

4.Pantaloons, Adyar4,500

5.Pantaloons, Himayatnagar, Hyderabad9,000

6.Pantaloons, Secunderabad1,500

7.Pantaloons, Crossroad, Mumbai4,000

8.Pantaloons, Thane, Mumbai6,000

9.Pantaloons, Pune10,000

10.Pantaloons, Chennai22,000

11.Pantaloons, Ahemdabad34,000

12.Pantaloons, Camac street, Kolkata46,000

13.Pantaloons, Kanpur30,000

14.Pantaloons, Pune-INOX8,000

15.Pantaloons,Gurgaon58,000

Total Area2,71,000

BUSINESS MODEL:It has been calculated that most Indian retail companies enjoy a margin of 28 percent on sales. But the retail cost, estimated at 28 percent of sales generally leaves them with a little to cover H.O. expenses. This explains why most organized retailers in India struggle to break even.Faced with challenging scenario, Pantaloons rewrote some rules. It introduced private labels as opposed to selling only popular brands. Pantaloons prudently selected apparel as a volumedriver. It manufactured 40 percent of all the garments that it put on its shelves. It eliminated supply-chain inefficiencies, reduced costs and passed these savings to customers. It offered an exchange policy with no questions asked.

BIG BAZAARBig bazaar Isse Sasta Aur Acha Kahin Nahinis the hypermarket discount store initiative of the company (Pantaloon) commissioned to address the discount & bargain-hunting tendency of the Indian shopper.Firstly Big Bazaar was set up across 50,000 Sq. ft. in Kolkatta. Driven by the resounding success of the concept, four Big Bazaars were rolled out across 2,00,000 Sq. ft. in Hyderabad, Bangalore, & Mumbai.These include Mens, Ladies, children apparel, utensils, kitchenware, stationery, luggage, toys, optical products, a photo studio & an STD booth among others.Big Bazaar has more than 50 sales offers across its countries at any time & these discounts range from 6 to 60%.The magic of the concept is reflected in the footfall. Big Bazaar attracts more than 5,00,000 shoppers every month. More importantly, it has emerged as the first organized store to reach out to a broad customer spectrum-from a village to a wealthy businessman.At Big Bazaar, price was the principal value proposition at these stores. The store sold a variety of products 5 to 60% lower than the corresponding market price. Schemes of Big bazaar are very popular like buy two get one free. Also positioning & product availability in Big Bazaar gained a higher share of the customers shopping basket.FOOD BAZAAR

Food Bazaar Ab Ghar Chalaana Kitna Aasaan!In July 2002, Big Bazaar made a challenging extension: It entered the Food Retail with a 9,000 Sq. ft. Food bazaar at its lower parel store in Mumbai. Enthused by the phenomenal response, the company has set up Food Bazaar in other Big Bazaar stores also.The companys reason for entering Food retail were: Food spending at 53% of personal income outstripped every other itemized spending in India. Despite this high spending, the role of organized food retail in the countrys total food spend was just one percent. Within this under penetration, an interesting pattern was noticed: organized food retail was estimated to be the fastest growing retail segment.

Business model:

The companys Food Bazaar was adapted to the Indian environment. To attract regular bazaar-goers, a mandi was created within the Food Bazaar where consumers could touch, feel, pick & choose products. This choice was supplemented by the provision for packaged food for the westernized shoppers. Food Bazaar prices were priced at wholesale rates below the MRP. Private labels were introduced for high margin & price-sensitive products like tea, salt and oil.Products:The Food Bazaar stocked an average of 11,000 SKUs. This includes provisions, vegetables and fresh produce, FMCG products, bakery products, basic staples, cereals, pulses, cooking oils, flour, spices, dry fruit, health food, baby food, dairy products, drinks, beverages as well as ready-to-eat, ready-to-cook products. The incidence of special purchase offers and discounts made shopping at Food Bazaar highly affordable.

Big Bazaar isse sasta aur achha kahin nahi is the hypermarket discount store initiative of the company commissioned to address the discount and bargain hunting capacity of the Indian shopper.

At big Bazaar, price was the principal value proposition at these stores. The store sold a variety of products 5% to 60% lower than the corresponding market price. Apparel, for instance, was normally cheaper by 25% to 60%. To popularize discounts, Big Bazaar circulated a Patrika with offer like: Kanchan frying pan worth Rs. 250/- free with Dawat premium Basmati rice worth Rs. 310/- and Buy two bottles of Haveli pickles, Get the third free.The magic of the concept is reflected in footfall, Big Bazaar attracts more than 500000 shoppers every month. More importantly, it has emerged as the first organized store to reach out to a broad customer spectrum- from a villager to a wealthy businessman.In addition to the attractive price differential, Big Bazaars draw was its unusual offer: that the customer could not locate similar product at a lower sticker price elsewhere within 10 days, then the customer would be entitled to gift voucher worth twice the amount of the difference! Besides, the Shop-in-Shop concept also maximized footfalls.Thanks to its positioning and product availability, the Big Bazaar stores gained a higher share of the costumers shopping basket. The Big Bazaar stores contributed Rs. 55.88 Cr to the companys turnover in 2001-02 (including Shop-in-Shop sales of Rs. 12.87 Cr).PRODUCTSA Big drive of footfall at Big Bazaar is the product Variety. The Company stocks about 1,30,000 items over 20 product categories. This has been supported by the Companys decision not just to stock it with shops. As a result, a usual Big Bazaar companies shops that stock medicines, optical accessories, camera rolls bakery products dry fruits, crockery, utensils, glassware, health and beauty products, ladies accessories, saree and dress material, infant necessities, readymade garments, fabrics, electronics, watches, clocks, computer accessories, food and beverages, stationery, household appliance, house hold products, plastic products, furniture, home furnishings and luggage. A Big Bazaar also provides PCOs, Photostats and ATM services. Apparels: Apparels accounted for 70% of Big Bazaar off take in 2001-02 the price factor was singularly responsible for the success it started from Rs. 99/- upwards to Rs. 799/-. Even though the apparel products at Big Bazaar reinforced the price with its range mens wear, ladies ethnic, western wear and kids wear the role of Visual Merchandising was emphasized.Non Apparels: Non apparels sales accounted for 10% of Big Bazaar total of sale in 2001-02. A range of more then 1 lac items coupled with a 6% to 60% discounts started a virtuous cycle: thanks to the increased footfall, Big Bazaar entered in to an attractive negotiation with its vendors for better prices, which translated into an even higher footfalls. The non apparel categories include plastics items, footwear toys, luggage, appliance white goods and stationery.

I have done my training in the Big Bazaar, division of the Pantaloon (Gurgaon) in Sahara Mall. The title of my project is customer feedback which was conducted with the way of questionnaire by getting the response of regular customers in the household section of Big Bazaar. It was a good experience as how to conduct with various people & how to get different information from different customers.

Customer Feedback:

Customer feedback is very necessary practice in marketing because with the help of this, a marketer can know his customers attitudes about their products. By taking customer feedback the marketer can make necessary improvement in his product according to the requirements of the customers.Nowadays, it becomes a common practice that every company is taking the customers feedbacks from any of the methods like through websites or e-mails.According to planet_customer.com companies like Cadbury India, Godrej Soaps, Voltas, Johnson & Johnson, Raymond, Eureka Forbes and Dabur etc. have already registered at the site & customers can send their feedback through to them. Through net customers can communicate with the companies directly- for complaints, compliments, suggestions and even questions.Many FMCG products producers are providing their e-mail addresses or websites at the backside of the wrapper, in order to built a link between customers & producers. They listen to different queries of customers & provide assurance about the quality of product.

Objective of study

1. To find out the source from where the respondents came to know about Big Bazaar (division of Pantaloon).

2. To find out the customers response about the Layout & Display of Big Bazaar.

3. To find out the availability of products in the Household section.

4. To find out the quality satisfaction of Plastics in the Household section.

5. To find out the quality satisfaction of utensils in the Household section.

6. To find out the quality satisfaction of appliances in the Household section.

7. To find out the Price satisfaction level among customers.

8. To find out the availability & capability of salespersons service stranded at the Household section.

9. To find out the most preferred brands in Plastics.

10. To find out the most preferred brands in appliances.

Research MetholodgyA research Methodology is a way to systematically solve the research problem. In Research Methodology we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them.Research in common parlance refers to a search for knowledge. Information is the lifeblood of managerial decision-making. The purpose of methodology section is to describe the research procedure by which the relevant information is gathered.This section comprises the research design, the data collection method, the sampling procedures and analysis procedures.Research Methodology includes: Research Design Sample Design Data Collection Data AnalysisRESEARCH DESIGN:A Research design is the overall plan or program of research. It is the general blueprint for the collection, measurement and analysis of data. It includes an outline of what the investigator will do from writing the hypothesis and their operational implications to the final analysis of data. It is the overall operational pattern or framework of the project that stipulates what information is to be collected, from which sources and by which procedure. Population:It is the target group, which the researcher wants to know about by studying one or more of its samples. To be complete, a population must be very explicitly defined in terms of elements, sampling units, extent and time. Sampling Procedure:Sampling is simply the process of learning about the population on the basis of a sample drawn from it. Thus, in the sampling technique instead of every unit of the universe only a part of the universe is studied and the conclusions are drawn on that basis for the entire universe. A sample is a subset of population units. The process of sampling involves three elements: Selecting the sample, Collecting the information, and Making an inference about the population.

CONVENIENCE SAMPLINGSampling Unit:The sampling unit is the basic unit containing the elements of the population to be sampled. It may be the element itself, i.e., the object on which measurements are taken or a unit in which the element is contained. Sampling unit chosen for the project: INDIVIDUAL Sample Size: 100Data Collection Method:Depending on the source, statistical data are classified under two categories:1) Primary Data2) Secondary Data

Data used during project: PRIMARY DATA

Primary data are obtained by a study specifically designed to fulfill the data needs of the problem at hand. Such data are original in character and are generated in large number of surveys.

Method of data collection used: QUESTIONNAIRE METHODLimitations: People in Gurgaon are very large in number. We used random sample and convenient sample method. Actual information couldnt be taken from these people because they were large in numbers. 1. As the sample size was only 100, so it cannot be a true representative of the whole Gurgaon.2. We had very less time to complete this study. To cover all the people it requires lot of time and money.3. Some people did not have interest in the questionnaire, because of less time. They didnt response well. So it affected the results of the study.

Data analysis

1) The different sources from where the respondents came to know about Big Bazaar.

61% -- FRIENDS/RELATIVES 16% -- PRINT MEDIA 19% -- NEAR TO THE PLACE 4% -- OTHER SOURCES

2) The customers response about the layout & display of Big Bazaar. 98% -- LIKE 2% -- DISLIKE

3) Customers feedback about the availability of products in the household section.

93% -- AVAILABLE 7% -- NOT AVAILABLE4) Quality satisfaction level of plastics in household section.

53% -- GOOD 29% -- BAD 18% -- DONT KNOW5) To know about the purchasing percentage of plastics in the Big Bazaar.

82% -- PURCHASED 18% -- NEVER PURCHASED6) Customers feedback about the quality of appliances in the household section.

38% -- GOOD 4% -- BAD 58% -- DONT KNOW7) To know about the purchasing percentage of appliances in the household section.

42% -- PURCHASED 58% -- NEVER PURCHASED 8) Customers feedback about the quality of utensils in the household section.

24% -- GOOD 76% -- NEVER PURCHASED

9) To know whether the prices of items in the household section are Comparatively less than the market price or not.

65% -- REASONABLE PRICES 13% -- NOT REASONABLE 22% -- SAME AS MARKET PRICE

10) The most preferable brands of Appliances among customers.

20% -- LG 5% -- SUNFLAME 15% -- MAHARAJA5% -- SINGER 12% -- INALSA 4% -- SUMIT 9% -- PHILIPS3% -- REMSON 7% -- USHA3% -- JVG 6% -- BIRLA11% -- ANY OTHER

CONCLUSIONAs the slogan of Big Bazaar Isse Sasta Aur Acha Kahin Nahin, has been attracted most of the customers which directly affects on the increase in number of footfalls of customers in Big Bazaar. As what I have observed that slogan attracts many number of customers and ultimately affects on increase in number of footfalls in Big Bazaar. The offers and discounts also attract lot of customers to purchase items from Big Bazaar rather than outside. Also convenient shopping and self-service attracts the customers.According to my survey a great number of population are very much satisfied with the availability & accessibility of products in Big Bazaar. But there are many complaints regarding the quality of Plastics & Garments In Big Bazaar. Customers found most of the items in Plastics were damaged &told that they are not long lasting. But the purchasing of Plastics was in bulk as they are cheaper than other items. So purchasing percentage of Plastics were more.RECOMMENDATIONS1) In the household section some products consisting of Barcode showing the prices, were not displaying the discounted price on the label of the product. Means discount deducted from the actual price were not shown; they were deducted later at the counter during payment. It made a negative impact on the purchasing of the products by customers. So staff members have to put the offered prices on the product itself, as customers may not see the discount board. 2) Chocolate counter should be displayed near the Toy section so that it can easily attract the attention of Kids. a. Sometimes the shelves remain empty. b. So it is the task of salesperson to put all the products, which are lacking on the shelf or which have been finished on the shelf.

3) The section containing curtain fabric should be removed from the a. household section because of very less sales and turnover. It also b. occupies lot of shelf space in the section.4) There should be some sitting arrangements in Big bazaar, as the old a. people & children get tired & wanted to sit somewhere. 5) The quality of Garments & Plastics should be improved. Means some a. good brands should also maintained in Big bazaar. CUSTOMER FEEDBACK FORM

1. From where did you know about Big Bazaar? Friends/Relatives Print Media Near the place Any Other 2. Did you like the layout/display of the household section? Yes No If No, then why_________________________________________ 3. Did you find the product, which you came to buy here? Yes No If No, then what was the item______________________________?4. Are you satisfied with the quality of: Plastic Goods Yes No Dont Know Appliances Yes No Dont Know Utensils Yes No Dont Know 5. Do you feel that prices of items in household section are comparatively less than the market price? Yes No Same 6. What do you feel about the service stranded of staff at the household section? Good Average Bad 7. Which are your most preferred brands of Plastics?1.___________________ 2.________________________8. Which are your most preferred brands of Appliances? 1.___________________ 2.________________________9. Do you find all the items easily accessible in the section? Yes No If No, then why_________________________________________ 10. Do you prefer to buy the products, which are under discounts/schemes? Yes Not necessary11. Suggestions:________________________________________________________________________________________________________________

Name: _______________________Address: _________________________________________________Contact No.:___________________Bibliography BOOKS:

Basic Retailing - Dr. Rekha Goel Marketing Management - T.N. Chabra Fundamentals of Modern Marketing - Edward W. Cundiff

Magazines and Newspapers: Business Today Economic Times Web Sites: www.nkarten.com www.namikarten.comOther Supporting Material: Companys Profile Report

23