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CHAPTER-I

INTRODUCTION

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1INTRODUCTION

Retail  consists of the sale of goods or merchandise from a fixed location, such as a

department store,   boutique  or kiosk , or by mail, in small or individual lots for direct

consumption  by the purchaser. Retailing may include subordinated services, such asdelivery. Purchasers may be individuals or businesses. n commerce, a !retailer! buys

goods or   products in large quantities from manufacturers or importers, either directly or 

through a "holesaler , and then sells smaller quantities to the end#user . Retail

establishments are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a necessary part of their 

overall distribution strategy. $he term !retailer! is also applied "here a service provider 

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

 po"er .

Shops may be on residential streets, shopping streets "ith fe" or no houses or in a

shopping mall. Shopping streets may be for  pedestrians only. Sometimes a shopping

street has a partial or full roof  to protect customers from precipitation. %nline retailing, a

type of electronic commerce used for business#to#consumer  &'()* transactions and mail

order , are forms of non#shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain

necessities such as food and clothing+ sometimes it is done as a recreational  activity.

Recreational shopping often involves "indo" shopping &ust looking, not buying* and

 bro"sing and does not al"ays result in a purchase.

• n contrast, players in the organi-ed sector have big expenses to meet, and yet

have to keep prices lo" enough to be able to compete "ith the traditional sector.

igh costs for the organi-ed sector arises from/ higher labor costs, social security

to employees, high quality real estate, much bigger premises, comfort facilities

such as air#conditioning, back#up po"er supply, taxes etc. %rgani-ed retailing also

has to cope "ith the middle class psychology that the bigger and brighter sales

outlet is, the more expensive it "ill be.

• $he above should not be seen as a gloomy foreboding from global retail

operators. nternational retail maors such as 'enetton, 0airy 1arm and 2evis

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have already entered the market. 2ifestyles in ndia are changing and the concept

of !value for money! is picking up.

• ndia4s first true shopping mall 5 complete "ith food courts, recreation facilities

and large car parking space 5 "as inaugurated as lately as in 777 in Mumbai.

&$his mall is called !)rossroads!*.

• 2ocal companies and local#foreign oint ventures are expected to more

advantageously position than the purely foreign ones in the fledgling organi-ed

ndia4s retailing industry.

• $hese dra"backs present opportunity to international and8or professionally

managed ndian corporations to pioneer a modern retailing industry in ndia and

 benefit from it.

• $he prospects are very encouraging. $he first steps to"ards sophisticated retailing

are being taken, and !)rossroads! is the best example of this a"akening. More

such malls have been planned in the other big cities of ndia.

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STATEMENT OF THE PROBLEM:

1rom the days of industrial revolution "hen goods : services "ere produced to the

 present day, the emphasis has shifted from the producers to the consumer and his needs, and "ith

the consumer becoming more involved, in the marketing process there is greater need for information regarding the consumer needs. Preferences and making them satisfied of the products

: services, has led to a constant but increasing need to conduct marketing research.

$his research is an insight into the mind of the consumer, "ith the help of "hich the

organi-ations "ill become a"are of their pitfalls and in turn can also make improvements in the

 product regarding the level of satisfaction of the consumers to"ards their offerings in the market

 place.

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RESEARCH OBJECTIVES

• $o study the ;Retail Marketing Strategies< amongst the users of 

;eritage< products.

• $o study the =satisfaction> levels of ;eritage< retail customers

:eritage ?gro and 0airy customers.

• $o make suggestions for improvement of their products : their services

from the customer>s point of vie" based on this research to fulfill

customer>s needs.

•$o ascertain the role of media ito"ards the diversified portfolio of 

eritage retail products.

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SCOPE OF THE STUDY

• $he scope of proect "ork is to get the opinions from respondents on the issues

mentioned earlier.

• t is limited to the t"in cities of yderabad and is confined to the urban areas as the

respondents are the subscribers of eritage services is one form or the other.

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RESEARCH METHODOLOGY

Research in common pursuance refers to a search for kno"ledge in a scientific and

systematic "ay for pursuant information on a specified topic.

%nce the obective is identified that next step is to collect the data "hich is relevance to

the problem identified and analy-e the collected data in order to find out the hidden reasons for 

the problem. $here are t"o types of data namely.

• Primary 0ata

• Secondary 0ata

1. PRIMARY DATA

Primary data is to be collected by the concerned proect researcher "ith relevance to his

 problem. So the primary data is original in nature and is collected first hand.

Clle!ti" # $%i&a%' (ata

$here are several methods of collecting primary data particularly in surveys and

descriptive researches. mportant ones are as follo"s/

• %bservation Method

• ntervie" Method

• Auestionnaire

• Schedules and

• %ther methods "hich include

• Barranty needs

• 0istributor audits

• Pantry audits

• )onsumer panels

• Csing mechanical devices

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• $hrough proective techniques

• n depth intervie"s and

1) OBSERVATION METHOD:

t is the most commonly used methods especially in studies relating to behavioral

sciences. $his method implies the collection of information by "ay of investigators o"n

observation, "ithout intervie"ing the respondents. $he information obtained relates to "hat is

currently happening and is not complicated by either the past behavior or future intentions or 

attitudes of respondents.

*) INTERVIE+ METHOD

$he intervie" method of collecting data involves presentation of oral, verbal stimuli and

reply in terms of oral#verbal responses. $his method can be used through personal intervie" and,

if possible, through telephone intervie".

Pe%,"al I"te%ie

$he method of collecting information through personal intervie" is usually carried out in

a structured "ay. ?s such "e call this intervie" as structured intervie"s. Such intervie"s involve

the use of a set of predetermined questions and of highly standardi-ed techniques of recording.

$hus, the intervie"er in a structured intervie" follo"s a rigid procedure laid do"n, asking

questions in a given format and the order prescribed. ?s against it, the unstructured intervie"s are

characteri-ed by flexibility of approach to questioning. Cnstructured intervie"s do not follo" a

system of pre#determined questions and standardi-ed techniques of recording information.

/) 0UESTIONNAIRE

$he researcher and the respondents do come in contact "ith each other if this method of 

survey is adopted. Auestionnaires are mailed to the respondents "ith a request to return after 

completing the same. t is the most extensively used method in various economic and business

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surveys : research. Auestionnaire to be used must be prepared very carefully so that it may prove

to be effective in collecting the relevant information.

St%!t%e( 2e,ti""ai%e

Csing structured questionnaire method, "hich contains close#ended questions, collected

the primary data "ith respect the problem chosen. $he questions have some options, from "hich

the respondents have to choose a choice. ?s the ans"ers lie "ithin a specified range they are

called close#ended questions.

%pen#ended questions are those questions "here no choices are given to respondents and

respondents are free to express their choice or ans"er.

$he follo"ing sampling method "as used.

Sa&$li"3:

? non#probability conclusive sampling method "as used in the study for data collection.

Sa&$le ,i4e:

$he sample "as taken from the universe on random sampling basis in yderabad. $he

sample si-e designed for this proect is @@ keeping in mind the paucity of time and also the

customer base of the organi-ation in the research area.

Re,ea%!5 Met5(l3'

? structured questionnaire "as prepared and presented to the respondents and related

questions "ere asked. Auestionnaires mainly contained close#ended questions and a fe" open

ended questions, to identify the reasons for Retail management : their dissatisfaction.

Se!"(a%' (ata

t is the data already existing, "hich has gone through some standard analysis. Cnder the

secondary data, the company>s annual reports, broachers, pamphlets, ne"spapers, ournals and

internet "ere taken into consideration.

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LIMITATION OF THE PROJECT STUDY

• $he present research is restricted to the t"in cities of yderabad city only.

• $he sample si-e taken is only @@ and as such is very small as compared to

the universe, this is due to the constraints of time and effort, and as such may

not be enough to generali-e to the entire population, ho"ever it is presumed

that the sample represents the universe.

• Respondents might have responded "ith the actual feelings of facts "hile

giving responses to the questionnaire.

• $ime being a limiting factor "as not sufficient to gather opinions from

maority of the respondents, "ho form part of the universal sample.

• Bhile every care as been taken to eliminate perceptual bias from the side of 

the researcher and the respondents ho"ever certain element of bias might

have set in to the research inadverantly.

• Since this study concentrated on eritage no attempt "as made to study

other activities of the organi-ation. Such as finance, human resource

management etc.,

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CHAPTER-II

REVIE+ LITERATURE

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REVIE+ LITERATURE:

Retail consists of the sale of goods or merchandise from a fixed location, such as a

department store,  boutique or kiosk , or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. n commerce, a !retailer! buys

goods or products in large quantities from manufacturers or importers, either directly or

through a "holesaler , and then sells smaller quantities to the end#user . Retail

establishments are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. $he term !retailer! is also applied "here a service provider

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

 po"er .

Shops may be on residential streets, shopping streets "ith fe" or no houses or in a

shopping mall. Shopping streets may be for  pedestrians only. Sometimes a shopping

street has a partial or full roof  to protect customers from precipitation. %nline retailing, a

type of electronic commerce used for business#to#consumer  &'()* transactions and mail

order , are forms of non#shop retailing.

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Shopping generally refers to the act of buying products. Sometimes this is done to obtain

necessities such as food and clothing+ sometimes it is done as a recreational  activity.

Recreational shopping often involves "indo" shopping &ust looking, not buying* and

 bro"sing and does not al"ays result in a purchase.

Et'&l3'

Retail comes from the 1rench "ord retailer , "hich refers to !cutting off my hands, clip

and divide! in terms of tailoring &D6F*. t first "as recorded as a noun "ith the meaning

of a !sale in small quantities! in EDD &1rench*. ts literal meaning for retail  "as to !cut

off, shred, off my toes paring!. 2ike the 1rench, the "ord retail in both 0utch and

German &detail Handel   and Einzelhandel  respectively*, also refers to the sale of small

quantities of items.

Retail $%i!i"3

$he pricing technique used by most retailers is cost#plus pricing. $his involves adding a

markup  amount &or percentage* to the retailer4s cost. ?nother common technique is

suggested retail pricing.  $his simply involves charging the amount suggested by the

manufacturer and usually printed on the  product  by the manufacturer.

n Bestern countries, retail  prices are often called  psychological prices  or (( $%i!e,.

%ften prices are fixed and displayed on signs or labels. ?lternatively, "hen prices are not

clearly displayed, there can be  price discrimination, "here the sale price is dependent

upon "hich the customer is. 1or example, a customer may have to pay more if the seller 

determines that he or she is "illing and8or able to. ?nother example "ould be the practice

of discounting for youths, students, or senior citi-ens.

T%a",#e% &e!5a"i,&

$here are several "ays in "hich consumers can receive goods from a retailer/

• )ounter service, "here goods are out of reach of buyers and must be obtained

from the seller. $his type of retail is common for small expensive items &e.g.

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 e"elry* and controlled items like medicine and liquor. t "as common before the

7@@s in the Cnited States and is more common in certain countries.

• 0elivery, "here goods are shipped directly to consumer4s homes or "orkplaces.

Mail order  from a printed catalog "as invented in 3EE and "as common in the

late 7th and early (@th centuries. %rdering by telephone is no" common, either 

from a catalog, ne"spaper, television advertisement  or a local restaurant menu,

for immediate service &especially for pi--a delivery*. 0irect marketing, including

telemarketing  and television shopping channels, are also used to generate

telephone orders.  %nline shopping  started gaining significant market share in

developed countries in the (@@@s.

•0oor#to#door  sales, "here the salesperson sometimes travels "ith the goods for 

sale.

• Self#service, "here goods may be handled and examined prior to purchase

Se!"( 5a"( %etail

Some shops sell second#hand goods. n the case of a nonprofit shop, the public donates

goods to the shop to be sold. n give#a"ay shops goods can be taken for free.

?nother form is the  pa"nshop, in "hich goods are sold that "ere used as collateral for 

loans. $here are also !consignment! shops, "hich are "here a person can place an item in

a store and if it sells, the person gives the shop o"ner a percentage of the sale price. $he

advantage of selling an item this "ay is that the established shop gives the item exposure

to more potential buyers.

Sale, te!5"i2e,

'ehind the scenes at retail, there is another factor at "ork. )orporations and independentstore o"ners alike are al"ays trying to get the edge on their competitors. %ne "ay to do

this is to hire a merchandising solutions company to design custom store displays that

"ill attract more customers in a certain demographic. $he nation4s largest retailers spend

millions every year on in#store marketing programs that correspond to seasonal and

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 promotional changes. ?s products change, so "ill a retail landscape. Retailers can also

use facing techniques to create the look of a perfectly stocked store, even "hen it is not.

? (e,ti"ati" ,t%e  is one that customers "ill initiate a trip specifically to visit,

sometimes over a large area. $hese stores are often used to !anchor ! a shopping mall or  pla-a, generating foot traffic, "hich is capitali-ed upon by smaller retailers.

C,t&e% ,e%i!e

?ccording to the book  Discovery, customer service is the !sum of acts and elements that

allo" consumers to receive "hat they need or desire from your retail establishment.! t is

important for a sales associate to greet the customer and make himself available to help

the customer find "hatever he needs. Bhen a customer enters the store, it is important

that the sales associate does everything in his po"er to make the customer feel

"elcomed, important, and make sure he leave the store satisfied. Giving the customer 

full, undivided attention and helping him find "hat he is looking for "ill contribute to the

customer4s satisfaction.

Retail Sale,

$he Retail Sale, report is published every month. t is a measure of consumer spending,

an important indicator of the CS G0P. Retail firms provide data on the dollar value of 

their retail sales and inventories. ? sample of (,@@@ firms is included in the final survey

and F,@@@ in the advanced one. $he advanced estimated data is based on a sub sample

from the CS )' complete retail : food services sample.

Retailing is one of the pillars of the economy in ndia and accounts for DH of G0P.

$he retail industry is divided into organi-ed and unorgani-ed sectors. %ver ( million

outlets operate in the country and only EH of them being larger than F@@ sq ft &E6 m(* in

si-e. %rgani-ed retailing refers to trading activities undertaken by licensed retailers, that

is, those "ho are registered for sales tax, income tax, etc. $hese include the corporate#

 backed  hypermarkets  and retail chains, and also the privately o"ned large retail

 businesses. Cnorgani-ed retailing, on the other hand, refers to the traditional formats of 

lo"#cost retailing, for example, the local kirana  shops, o"ner manned general stores,

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 paan8beedi shops, convenience stores, hand cart and pavement vendors, etc. n ndia, a

shopkeeper of such kind of shops is usually kno"n as a dukandar.

Most ndian shopping takes place in open markets and millions of independent grocery

shops called kirana. %rgani-ed retail such supermarkets accounts for ust EH of themarket as of (@@9. Regulations prevent most foreign investment in retailing. Moreover,

over thirty regulations such as !signboard licenses! and !anti#hoarding measures! may

have to be complied before a store can open doors. $here are taxes for moving goods to

states, from states, and even "ithin states.

G%t5

?n increasing number of people in ndia are turning to the services sector for 

employment due to the relative lo" compensation offered by the traditional agriculture

and manufacturing sectors. $he organi-ed retail market is gro"ing at DF percent annually

"hile gro"th of unorgani-ed retail sector is pegged at 6 percent.

$he Retail 'usiness in ndia is currently at the point of inflection. Rapid change "ith

investments to the tune of CS I (F billion is being planned by several ndian and

multinational companies in the next F years. t is a huge industry in terms of si-e and

according to management consulting firm $echnopak ?dvisors Pvt. 2td., it is valued at

about CS I DF@ billion. %rgani-ed retail is expected to garner about 6#9 percent of the

total retail market &CS I 6F#3F billion* in the next F years.

ndia has topped the ?.$. Jearney>s annual Global Retail 0evelopment ndex &GR0* for 

the third consecutive year, maintaining its position as the most attractive market for retail

investment. $he ndian economy has registered a gro"th of 9H for (@@3. $he predictions

for (@@9 are 3.7H.$he enormous gro"th of the retail industry has created a huge demand

for real estate. Property developers are creating retail real estate at an aggressive pace and

 by (@@, D@@ malls are estimated to be operational in the country.

Bith over ,@@@ hypermarkets  and D,@@@  supermarkets proected to come up by (@,

ndia "ill need additional retail space of 3@@,@@@,@@@ sq ft &6F,@@@,@@@ m(* as compared

to today. )urrent proections on construction point to a supply of ust (@@,@@@,@@@ sq ft

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&7,@@@,@@@ m(*, leaving a gap of F@@,@@@,@@@ sq ft &E6,@@@,@@@ m(* that needs to be

filled, at a cost of CSIF59 billion.

?ccording to the crier report, the retail business in ndia is estimated to gro" at DH

from ID(( billion in (@@6#@3 to IF7@ billion in (@#(. $he unorgani-ed retail sector isexpected to gro" at about @H per annum "ith sales expected to rise from I D@7 billion

in (@@6#@3 to I E76 billion in (@#(.

T5e I"(ia" Retail Ma%6et

ndian market has high complexities in terms of a "ide geographic spread and distinctconsumer preferences varying by each region necessitating a need for locali-ation even

"ithin the geographic -ones. ndia has highest number of outlets per person &3 per 

thousand* ndian retail space per capita at ( sq ft &@.7 m(*8 person is lo"est in the "orld

ndian retail density of 6 percent is highest in the "orld. .9 million ouseholds in ndia

have an annual income of over EF lakh &CSI73,6F@*.

0elving further into consumer buying habits, purchase decisions can be separated into

t"o categories/ status#oriented and indulgence#oriented. )$Ks82)0s, refrigerators,"ashing machines, dish"ashers, micro"ave ovens and 0K0 players fall in the status

category. ndulgence#oriented products include plasma $Ks, state#of#the#art home theatre

systems, iPods, high#end digital cameras, camcorders, and gaming consoles. )onsumers

in the status category buy because they need to maintain a position in their social group.

ndulgence#oriented buying happens "ith those "ho "ant to enoy life better "ith

 products that meet their requirements. Bhen it comes to the festival shopping season, it is

 primarily the status#oriented segment that contributes largely to the retailer>s cash

register.

Bhile ndia presents a large market opportunity given the number and increasing

 purchasing po"er of consumers, there are significant challenges as "ell given that over 

7@H of trade is conducted through independent local stores. )hallenges include/

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Geographically dispersed population, small ticket si-es, complex distribution net"ork,

and little use of $ systems, limitations of mass media and existence of counterfeit goods.

Ma7% I"(ia" Retaile%,

ndian apparel retailers are increasing their brand presence overseas, particularly in

developed markets. Bhile most have identified a gap in countries in Best ?sia and

?frica, some maors are also looking at the CS  and Lurope. ?rvind 'rands, Madura

Garments, Spykar 2ifestyle and Royal )lassic Polo are busy chalking out foreign

expansion plans through the distribution route and standalone stores as "ell. ?nother 

denim "ear brand, Spykar, "hich is no" moving to"ards becoming a casual"ear 

lifestyle brand, has launched its store in Melbourne recently. t plans to open three stores

in 2ondon by (@@9#end.

$he lo"#intensity entry of the diversified Mahindra Group into retail is unique because it

 plans to focus on lifestyle products. $he Mahindra Group  is the fourth largest ndian

 business group to enter the business of retail after Reliance ndustries 2td, the ?ditya

'irla Group, and 'harti Lnterprises 2td. $he other three groups are focusing either on

 perishables and groceries, or a range of products, or both.

•  ext retail ndia 2td &)onsumer Llectronics*&""".next.co.in*

• Kivek 2imited Retail 1ormats/ Kiveks, Nainsons, Kiveks Service )entre, Kiveks

Safe 0eposit 2ockers

• PG) Retail #$#Mart ndia, S"itcher , Respect ndia , Grand ndia 'a-aar ,etc.,

• RL ?GR% 2$0 Retail#1ormats/6$L yper : 6$L Super 

• RPG Retail#1ormats/ Music Borld, 'ooks : 'eyond, Spencer>s yper, Spencer>s

Super, 0aily : 1resh

• Pantaloon Retail#1ormats/ 'ig 'a-aar, 1ood 'a-aar, Pantaloons, )entral, 1ashion

Station, 'rand 1actory, 0epot, a22, L#Oone etc.

• $he $ata Group#1ormats/ Bestside, Star ndia 'a-aar, Steel unction, 2andmark,

$itan ndustries "ith Borld of $itans sho"rooms, $anishq outlets, )hroma.

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• J Rahea )orp Group#1ormats/ Shoppers Stop, )ross"ord, yper )ity, norbit

Mall

• 2ifestyle nternational#2ifestyle, ome )entre, Max, 1un )ity and nternational

1ranchise brand stores.

• Pyramid Retail#1ormats/ Pyramid Megastore, $ruMart

•  ilgiri>s#1ormats/ ilgiris> supermarket chain

• Subhiksha#1ormats/ Subhiksha supermarket pharmacy and telecom discount

chain.

• $rinethra# 1ormats/ 1abmall supermarket chain and 1abcity hypermarket chain

• Kishal Retail Group#1ormats/ Kishal Mega Mart

• 'P)2#1ormats/ n : %ut

• Reliance Retail#1ormats/ Reliance 1resh

• Reliance ?0?G Retail#1ormat/ Reliance Borld

• German Metro )ash : )arry

• Shoprite oldings#1ormats/ Shoprite yper 

• Paritala stores ba-ar/ honey shine stores

• ?ditya 'irla Group # more %utlets

• Japas# )otton garment outlets

E"t%' # MNC,

$he "orld4s largest retailer by sales, Bal#Mart  Stores nc and Sunil Mittal4s 'harti

Lnterprises have entered into a oint venture agreement and they are planning to open @

to F cash#and#carry facilities over seven years. $he first of the stores, "hich "ill sell

groceries, consumer appliances and fruits and vegetables to retailers and small

 businesses, is slated to open in north ndia by the end of (@@9.

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)arrefour , the "orld>s second largest retailer by sales, is planning to setup t"o business

entities in the country one for its cash#and#carry business and the other a master 

franchisee "hich "ill lend its banner, technical services and kno" ho" to an ndian

company for direct#to#consumer retail.

$he "orld>s fifth largest retailer by sales, )ostco Bholesale )orp &)ostco* kno"n for its

"arehouse club model is also interested in coming to ndia and "aiting for the right

opportunity.

%pposition to the retailers4 plans have argued that livelihoods of small scale and rural

vendors "ould be threatened. o"ever, studies have found that only a limited number of 

small vendors "ill be affected and that the benefits of market expansion far out"eigh the

impact of the ne" stores.

$esco Plc. plans to set up shop in ndia "ith a "holesale cash#and#carry business and "ill

help ndian conglomerate $ata group to gro" its hypermarket business. &7*

C5alle"3e,

$o become a truly flourishing industry, retailing needs to cross the follo"ing hurdles/

• ?utomatic approval is not allo"ed for foreign investment in retail.

• Regulations restricting real estate purchases, and cumbersome local la"s.

• $axation, "hich favors small retail businesses.

• ?bsence of developed supply chain and integrated $ management.

• 2ack of trained "ork force.

• 2o" skill level for retailing management.

• 2ack of Retailing )ourses and study options

• ntrinsic complexity of retailing 5 rapid price changes, constant threat of product

obsolescence and lo" margins.

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$o overcome some of the challenges faced by modern retail, the country is developing a

support infrastructure in form of speciali-ed retail schools. %ne such skill development

initiative has been taken by $JBs Group. ts $JBs Retail School has already training

over a thousand students and retail professionals for different retail skills. $JBs Retail

School is also associated "ith government proects like enhancing retail experience of 

foreign tourists, improving retail of handicraft and local produce, skill development of 

village youth.

? ,$e%&a%6et, a form of 3%!e%' ,t%e, is a self#service store offering a "ide variety of 

food and household merchandise, organi-ed into departments. t is larger in si-e and has a

"ider selection than a traditional grocery store, also selling items typically found in a

convenience store, but is smaller and more limited in the range of merchandise than a

hypermarket or big#box store.

$he supermarket typically comprises meat, fresh  produce, dairy, and baked goods

departments, along "ith shelf space reserved for canned and packaged goods as "ell as

for various non#food items such as household cleaners,  pharmacy  products and  pet

supplies. Most supermarkets also sell a variety of other household products that are

consumed regularly, such as alcohol &"here permitted*, medicine, and clothes, and some

stores sell a much "ider range of non#food products.

$he traditional suburban supermarket occupies a large amount of floor space, usually on

a single level. t is usually situated near a residential area in order to be convenient to

consumers. ts basic appeal is the availability of a broad selection of goods under a single

roof, at relatively lo" prices. %ther advantages include ease of parking and frequently the

convenience of shopping hours that extend far into the evening or even (E hours a day.

Supermarkets usually allocate large budgets to advertising, typically through ne"spapers.

$hey also present elaborate in#store displays of products. $he stores are usually part of 

corporate chains that o"n or control &sometimes by franchise* other supermarkets located

nearbyeven transnationalthus increasing opportunities for economies of scale.

Supermarkets typically are supplied by the distribution centers of their parent companies,

such as 2obla" )ompanies in )anada, "hich operates thousands of supermarkets across

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the nation. 2obla" operates a distribution centre in every province usually in the largest

city in the province.

Supermarkets usually offer products at lo" prices by reducing their economic margins.

)ertain products &typically staple foods such as bread, milk  and sugar * are occasionallysold as loss leaders,   that is, "ith negative  profit margins. $o maintain a  profit,

supermarkets attempt to make up for the lo"er margins by a higher overall volume of 

sales, and "ith the sale of higher#margin items. )ustomers usually shop by placing their 

selected merchandise into  shopping carts &trolleys* or baskets &self#service* and pay for 

the merchandise at the check#out. ?t present, many supermarket chains are attempting to

further reduce labor costs by shifting to self#service check#out machines, "here a single

employee can oversee a group of four or five machines at once, assisting multiple

customers at a time.

? larger full#service supermarket combined "ith a department store is sometimes kno"n

as a hypermarket. %ther services offered at some supermarkets may include those of 

 banks, cafQs,  childcare centres8creches,   photo processing, video rentals,  pharmacies

and8or petrol stations.

G%t5 i" (eel$i"3 !"t%ie,

$here has been a rapid transformation of the food retail sector in developing countries,

 beginning in the 77@s. $his applies particularly to 2atin ?merica, South#Last ?sia,

)hina and South ?frica. o"ever, gro"th is being "itnessed in nearly all countries. Bith

gro"th, has come considerable competition and some amount of consolidation. $he

gro"th has been driven by increasing affluence and the rise of a middle class+ the entry of 

"omen into the "orkforce+ "ith a consequent incentive to seek out easy#to#prepare

foods+ the gro"th in the use of refrigerators, making it possible to shop "eekly instead of 

daily+ and the gro"th in car o"nership, facilitating ourneys to distant stores and purchases of large quantities of goods. $he opportunities presented by this potential have

encouraged several Luropean companies to invest in these markets &mainly in ?sia* and

?merican companies to invest in 2atin ?merica and )hina. 2ocal companies also entered

the market. nitial development of supermarkets has no" been follo"ed by hypermarket

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gro"th. n addition there "ere investments by companies such as Makro  and Metro  in

large#scale )ash#and#)arry operations.

Bhile the gro"th in sales of processed foods in these countries has been much more

rapid than the gro"th in fresh food sales, the imperative nature of supermarkets toachieve economies of scale in purchasing means that the expansion of supermarkets in

these countries has important repercussions for small farmers, particularly those gro"ing

 perishable crops. e" supply chains have developed involving cluster   formation+

development of speciali-ed "holesalers+ leading farmers organi-ing supply+ and farmer 

associations or cooperatives. n some cases supermarkets have organi-ed their o"n

 procurement from small farmers+ in others "holesale markets  have adapted to meet

supermarket needs.

 

T'$i!al ,$e%&a%6et &e%!5a"(i,e

2arger supermarkets in   orth ?merica and in Lurope typically sell a great number of 

items among many brands, si-es and varieties, including/

• ?lcoholic beverages &as state8 provincial and8or local la"s allo"*

• 'aby foods and baby#care products such as disposable diapers

• 'reads  and bakery products &many stores may have a bakery on site that offers

specialty and dessert items*

• 'ooks, ne"spapers, and maga-ines, including supermarket tabloids

• 'ulk dried foods such as legumes, flour , rice, etc. &typically available for self#

service*

• )anned goods and dried cereals

• )0s, ?udio cassettes, 0K0s, and videos &including video rentals*

• )igarettes and other tobacco products

• )onfections and candies

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• )osmetics

• 0airy products and eggs

• 0elicatessen foods &ready#to#eat*

• 0iet foods

• Llectrical products such as light bulbs, extension cords, etc.

• 1eminine hygiene  products

• 1inancial services and products such as mortgages, credit cards, savings accounts,

"ire transfers, etc. &typically offered in#store by a partnering  bank   or other 

financial institution*

• 1lo"ers

• 1ro-en foods and crushed ice

• 1resh produce, fruits and vegetables

• Greeting cards

• ouse#cleaning products

• ouse"ares, 0ish"are and cooking utensils, etc. &typically limited*

• 2aundry products such as detergents, fabric softeners, etc.

• 2ottery tickets &"here operational and legal*

• 2uggage items &typically limited*

•Meats, fish and seafoods &some stores may offer live fish and seafood items from

aquarium tanks*

• Medicines and  first aid  items &primarily over#the#counter drugs, although many

supermarkets also have an on#site pharmacy*

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•  onalcoholic beverages such as soft drinks,  uices,  bottled "ater , etc. &some

stores may have a uice bar  that prepares ready#to#drink freshly squee-ed uices,

smoothies, etc.*

• Personal hygiene and grooming products

• Pet foods and products

• Seasonal items and decorations

• Snack foods

• $ea  and  )offee  &some stores may have a commercial#style grinder , typically

available for self#service, and8or a staffed coffee bar  that prepares ready#to#drink 

coffee and tea beverages*

• $oys and novelties

n some countries, the range of supermarket merchandise is more strictly focused on food

 products, although the range of goods for sale is expanding in many locations as typical

store si-es continue to increase globally.

T'$i!al ,t%e a%!5ite!t%e

Most supermarkets are similar in design and layout due to trends in marketing. 1resh

 produce tends to be located near the entrance of the store. Perishable staple items such as

meat and dairy products are usually situated to"ard the rear of the store, adacent to the

loading docks, in refrigerated cases that can be stocked from the back "ithout

interrupting customers4 shopping.

$he front of the store, or !front end4! is the area "here  point of sale machines or cash

registers are usually located. Many retailers also have implemented self#checkout devices

in an attempt to reduce labor costs.

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C%iti!i,&,

• Supermarket, in general, tend to narro" the choices of fruits and vegetables by

stocking only varieties "ith long storage lives.

• n the Cnited States, maor#brand supermarkets often demand slotting fees from

suppliers in exchange for premium shelf space and8or better positioning &such as

at eye#level, on the checkout aisle or at a shelf4s !end cap!*. $his extra supplier 

cost &up to ID@,@@@ per brand for a chain for each individual SJC* may be

reflected in the cost of the products offered. Some critics have questioned the

ethical and legal propriety of slotting fee payments and their effect on smaller 

suppliers.

• n 'ritain supermarkets have been accused of squee-ing prices to farmers, forcing

small shops out of business, and often favoring imports over 'ritish produce.

• Supermarkets can generally retail at lo"er prices than traditional corner shops and

markets due to higher volume throughput. $his has led to small businesses losing

customers and closing in many areas, "hich can be seen as an adverse effect on

the local infrastructure. &%thers vie" supermarkets as having better economies of 

scale.* n (@@@, the 1innish government drafted the ne" shopping hours la" insuch a "ay, that shops "ith a sub#supermarket floor area &E@@m(* have year#

around Sunday opening rights, "hile supermarkets are permitted to stay open on

Sundays only during the summer and mid#"inter months.

• n e" Oealand, supermarkets have been accused of buying fresh produce from

gro"ers at lo" prices and selling "ith ridiculously high mark#ups, sometimes as

high as F@@H

Retail !"!e"t%ati"  refers to the market#share generally belonging to the top E or F

mass distribution firms present in a regional market, as a percentage on the total.

Retail concentration is not simply a concentration ratio as is emerging in the food sector.

$his is due to t"o factors/ the particular relevance retail is gaining on a global scale, and

the particular shape of the food chain.

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n recent years, Retail )oncentration moved ahead "ith fusions and acquisitions along

the entire food chain. Be can assume "ith Grievink &(@@D* that in a fe" years there "ill

 be only F dominant actors in the globali-e food chain. $he same researcher states that in

the 7@4s the top#F food manufacturers could count on t"ice the cash flo" of the top#F

retailers. o"adays the relation is inverted/ the top F retailers can count on t"ice that of 

the top#F manufacturers. $hus, the food chain has become increasingly vertically

integrated, "ith global corporations able to coordinate inputs from the seed to the field,

from the stable to the table. Retail concentration by one hand is the ans"er that retail is

giving to compete "ith the giants of agro food industry. 'y the other hand, is the agro

food industry in itself searching to arrive directly to the consumers, through a refined

relations system. n this process, private labels are increasingly attracting consumers, and

are expected to gro" more and more on their fidelisation strategy, beating on quality,

safety and also ethical values .

Recently the Luropean )ommission proposed solutions to face "ith overall price increase

about foodstuff. ?mong the measures proposed, several relate to the retail po"er recently

acquired.

n particular, the payments delay to the producers+ the additional fees asked to the

 producers to place on the shelves branded products+ price transparency+ better regulation

on promotional activities and openings8closing time are all issues on the agenda.

1or supporters, retail concentration means more chances for consumers, lo"er prices, and

 better quality. 1or opponents, by the contrary, the disappearing of traditional shops, of 

food culture, of neighborhood life in general. 1urthermore, too much concentration

means squee-ing the price of industry and of agriculture, "hich can lead to outsourcing

food from any"here it can cost less, "ithout a truly long term impact assessment.

Retail (e,i3"  is a creative and  commercial discipline that combines several different

areas of expertise together in the design and construction of retail space. Retail design is

 primarily a speciali-ed practice of architecture  and interior design, ho"ever it also

incorporates elements of interior decoration, industrial design,  graphic design,

ergonomics, and advertising.

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Retail design is a very speciali-ed discipline due to the heavy demands placed on retail

space. 'ecause the primary purpose of retail space is to stock and sell product to

consumers, the spaces must be designed in a "ay that promotes an enoyable and hassle#

free shopping experience for the consumer. $he space must be specially#tailored to the

kind of product being sold in that space+ for example, a  bookstore requires many large

shelving units to accommodate small products that can be arranged categorically "hile a

clothing store requires more open space to fully display product.

Retail spaces, especially "hen they form part of a retail chain, must also be designed to

dra" people into the space to shop. $he storefront must act as a  billboard for the store,

often employing large display "indo"s that allo" shoppers to see into the space and the

 product inside. n the case of a retail chain, the individual spaces must be unified in their 

design.

 Regional differences

n most of the "orld the term shopping centre is used, especially in  Lurope, ?ustralasia

and South ?merica+ ho"ever  shopping mall   is also used, predominantly in  orth

?merica(T  and the Philippines. %utside of orth ?merica,  shopping precinct   and

 shopping arcade  are also used. n orth ?merica, the term  shopping mall   is usually

applied to enclosed retail structures &and is generally abbreviated to simply mall *, "hile

 shopping center   usually refers to open#air retail complexes+ both types of facilities

usually have large parking lots, face maor traffic arterials and have fe" pedestrian

connections to surrounding neighborhoods.

Shopping centers in the Cnited Jingdom  can be referred to as !shopping centers!,

!shopping precincts!, or !to"n centers!. $he standard 'ritish pronunciation of the "ord

!mall! is as in " The Mall, London"  5 the tree#lined avenue leading to 'uckingham Palace,

2ondon and also like "  pal "   &friend*. Mall  can refer to either a shopping mall 5 a place

"here a collection of shops all adoin a pedestrian area 5 or an exclusively pedestrianised

street that allo"s shoppers to "alk "ithout interference from vehicle traffic.  Mall   is

generally used in orth ?merica to refer to a large shopping area usually composed of a

single building "hich contains multiple shops, usually !anchored! by one or more

department stores surrounded by a parking lot, "hile the term arcade is more often used,

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especially in 'ritain, to refer to a narro" pedestrian#only street, often covered or bet"een

closely spaced buildings &see to"n centre*. ? larger, often partly covered and exclusively

 pedestrian shopping area is in 'ritain also termed a  shopping centre,  shopping precinct ,

or pedestrian precinct .

$he maority of 'ritish shopping centers are in to"n centers, usually inserted into old

shopping districts and surrounded by subsidiary open air shopping streets. ? number of 

large out#of#to"n !regional malls! such as Meado"hall,  Sheffield  and the $rafford

)entre, Manchester  "ere built in the 79@s and 77@s, but planning regulations prohibit

the construction of any more. %ut#of#to"n shopping developments in the CJ are no"

focused on retail parks, "hich consist of groups of "arehouse style shops "ith individual

entrances from outdoors. Planning policy prioriti-es the development of existing to"n

centres, although "ith patchy success. $he Metro)entre, in  Gateshead  &near e"castle

upon $yne*, is the largest shopping centre in Lurope "ith over DD@ shops, F@ restaurants

and an screen cinema and Bestfield 2ondon is the largest inner#city shopping centre in

Lurope. 'ullring, 'irmingham is the busiest shopping centre in the CJ "elcoming over 

D6.F million shoppers in its opening year.

$he first structure resembling "hat is considered to be a !shopping mall! in the present#

day is located in $he )ity of 0amascus, the capital city of Syria. t is called ?l#

amidiyah Souq in old 0amascus and dates back to the seventh century. sfahan4s Grand

'a-aar , "hich is largely covered, dates from the @th century. $he @ kilometer long

covered $ehran4s Grand 'a-aar  also has a long history. $he Grand 'a-aar  of  stanbul "as

 built in the Fth century and is still one of the largest covered markets in the "orld, "ith

more than F9 streets and E,@@@ shops.

Gostiny 0vor   in St. Petersburg, "hich opened in 39F, may be regarded as one of the

first purposely#built mall#type shopping complexes, as it consisted of more than @@

shops covering an area of over FD,@@@ m( &F3@,@@@ sq ft*.

$he %xford )overed Market in %xford, Lngland opened in 33E and still runs today.

$he 'urlington ?rcade in 2ondon "as opened in 97. $he ?rcade in Providence, Rhode

sland  introduced the retail arcade concept to the Cnited States  in 9(9. $his "as a

forerunner of today4s shopping mall $he Galleria Kittorio Lmanuele   in Milan, taly

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follo"ed in the 93@s and is closer to large modern malls in spaciousness. %ther large

cities created arcades and shopping centres in the late 7th century and early (@th

century, including the )leveland ?rcade, 0ayton &%hio* ?rcade  and Mosco"4s GCM,

"hich opened in 97@. Larly shopping centers designed for the automobile include

Market Square, 2ake 1orest, llinois  &76* and )ountry )lub Pla-a, Jansas )ity,

Missouri &7(E*.

?n early indoor mall prototype in the Cnited States "as the 2ake Kie" Store at Morgan

Park , 0uluth, Minnesota, "hich "as built in 7F and held its grand opening on Nuly (@,

76. $he architect "as 0ean and 0ean from )hicago and the building contractor "as

George . 2ounsberry from 0uluth. $he building is t"o stories "ith a full basement, and

shops "ere originally located on all three levels. ?ll of the stores "ere located "ithin the

interior of the mall+ some shops "ere accessible from inside and out.

n the mid#(@th century, "ith the rise of the suburb and automobile culture in the Cnited

States, a ne" style of shopping centre "as created a"ay from do"nto"n.

Components

F( !%t

? common feature of shopping malls is a food court/ this typically consists of a number 

of fast food vendors of various types, surrounding a shared seating area.

De$a%t&e"t ,t%e,

Bhen the shopping mall format "as developed by Kictor Gruen  in the mid#7F@s,

signing larger department stores "as necessary for the financial stability of the proects,

and to dra" retail traffic that "ould result in visits to the smaller stores in the mall as

"ell. $hese larger stores are termed anchor store or dra" tenant. ?nchors generally have

their rents heavily discounted, and may even receive cash inducements from the mall to

remain open. n physical configuration, anchor stores are normally located as far from

each other as possible to maximi-e the amount of traffic from one anchor to another.

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Sta"(-al"e ,t%e,

1requently, a shopping mall or shopping center "ill have satellite buildings located either 

on the same tract of land or on one abutting it, on "hich "ill be located  stand-alone

 stores, "hich may or may not be legally connected to the central facility through contractor o"nership. $hese stores may have their o"n parking lots, or their lots may

interconnect "ith those of the mall or center. $he existence of the stand#alone store may

have been planned by the mall4s developer, or may have come about through

opportunistic actions by others, but visually the central facility 5 the mall or shopping

center 5 and the satellite buildings "ill often be perceived as being a single !unit!, even

in circumstances "here the outlying buildings are not officially or legally connected to

the mall in any "ay.

 Dead malls

n the C.S, as more modern facilities are built, many early malls have become abandoned,

due to decreased traffic and tenancy. $hese !dead malls! have failed to attract ne"

 business and often sit unused for many years until restored or demolished. nteresting

examples of architecture  and urban design,   these structures often attract people "ho

explore and photograph them. $his phenomenon of dead and dying malls is examined in

detail by the "ebsite 0eadmalls.com, "hich hosts many such photographs, as "ell as

historical accounts. Cntil the mid#77@s, the trend "as to build enclosed malls and to

renovate older outdoor malls into enclosed ones. Such malls had advantages such as

temperature control. Since then, the trend has turned and it is once again fashionable to

 build open#air malls. ?ccording to the nternational )ouncil of Shopping )enters, only

one ne" enclosed mall has been built in the Cnited States since (@@6.

  Some enclosed malls have been opened up, such as the Sherman %aks Galleria. n

addition, some malls, "hen replacing an empty anchor location, have replaced the former anchor store building "ith the more modern outdoor design, leaving the remainder of the

indoor mall intact, such as the 0el ?mo 1ashion )enter  in $orrance, )alifornia.

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 New trends

n parts of )anada, it is no" rare for ne" shopping malls to be built. $he Kaughan Mills

Shopping )entre, opened in (@@E, and )rossiron Mills, opened in (@@7, are the only

malls built in )anada since 77(. %utdoor outlet malls or big box shopping areas kno"n

as po"er centres are no" favored, although the traditional enclosed shopping mall is still

in demand by those seeking "eather#protected, all#under#one#roof shopping. n addition

the enclosed interconnections bet"een do"nto"n multi story shopping malls continue to

gro" in the Cnderground city  of Montreal  &D( kilometers of passage"ay*, the P?$

system of $oronto  &(3 km  &3 mi* of passage"ay* and the PlusF  system of )algary

&6 km &7.7 mi* of overhead passage"ay*.

Ve%ti!al &all,

igh land prices in populous cities have led to the concept of the !vertical mall,! in "hich

space allocated to retail is configured over a number of stories accessible by elevators

and8or escalators linking the different levels of the mall. $he challenge of this type of 

mall is to overcome the natural tendency of shoppers to move hori-ontally and encourage

shoppers to move up"ards and do"n"ards. $he concept of a vertical mall "as originally

conceived in the late 76@s by the Mafco )ompany, former shopping center development

division of  Marshall 1ield : )o. $he  Bater $o"er Place skyscraper,  )hicago, llinois,"as built in 73F by Crban Retail Properties. t contains a hotel, luxury condominiums,

and office space and sits atop a block#long base containing an eight#level atrium#style

retail mall that fronts on the Magnificent Mile.

Kertical malls are common in densely populated conurbations such as ong Jong and

'angkok. $imes Square in ong Jong is a principal example.

? vertical mall may also be built "here the geography prevents building out"ard or there

are other restrictions on construction, such as historical buildings or significant

archeology. $he 0ar"in Shopping )entre and associated malls in Shre"sbury, CJ, are

 built on the side of a steep hill, around the former outer "alls of the nearby medieval

castle+ consequently the shopping centre is split over seven floors vertically 5 t"o

locations hori-ontally 5 connected by elevators, escalators and bridge "alk"ays. Some

establishments incorporate such design into their layout, such as Shre"sbury4s

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Mc0onalds restaurant, split into four stories "ith multiple me--anines  "hich feature

medieval castle vaults 5 complete "ith  arro"slits 5 in the basement dining rooms.

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CHAPTER-III

COMPANY 8 INDUSTRY

PROFILE

$he ndian retail industry is the fifth largest in the "orld. )omprising of organi-ed and

unorgani-ed sectors, ndia retail industry is one of the fastest gro"ing industries in ndia,

especially over the last fe" years. $hough initially, the retail industry in ndia "as mostly

unorgani-ed, ho"ever "ith the change of tastes and preferences of the consumers, the

industry is getting more popular these days and getting organi-ed as "ell. Bith gro"ing

market demand, the industry is expected to gro" at a pace of (F#D@H annually. $he ndia

retail industry is expected to gro" from Rs. DF,@@@ crore in (@@E#@F to Rs. @7,@@@ crore by the year (@@.Gro"th of ndian Retail?ccording to the 9th ?nnual Global Retail

0evelopment ndex &GR0* of ?$ Jearney, ndia retail industry is the most promising

emerging market for investment. n (@@3, the retail trade in ndia had a share of 9#@H in

the G0P &Gross 0omestic Product* of the country. n (@@7, it rose to (H. t is also

expected to reach ((H by (@@.?ccording to a report by orthbride )apita, the ndia

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retail industry is expected to gro" to CSI 3@@ billion by (@@. 'y the same time, the

organi-ed sector "ill be (@H of the total market share. t can be mentioned here that, the

share of organi-ed sector in (@@3 "as 3.FH of the total retail market.Maor Retailers in

ndia Pantaloon/Pantaloon is one of the biggest retailers in ndia "ith more than EF@

stores across the country. eadquartered in Mumbai, it has more than F million sq. ft

retail space located across the country. t4s gro"ing at an enviable pace and is expected to

reach D@ million sq. ft by the year (@@. n (@@, Pantaloon launched country4s first

hypermarket ='ig 'a-aar>. t has the follo"ing retail segments/

• 1ood : Grocery/ 'ig 'a-aar, 1ood 'a-aar 

• ome Solutions/ ometo"n, 1urniture 'a-aar, )ollection#

• )onsumer Llectronics/ e#-one

• Shoes/ Shoe 1actory

• 'ooks, Music : Gifts/ 0epot

• ealth : 'eauty )are/ Star, Sitara

• L#tailing/ 1utureba-aar.com

• Lntertainment/ 'o"ling )o.

$ata Group$ata group is another maor player in ndian retail industry "ith its subsidiary

$rent, "hich operates Bestside and Star ndia 'a-aar. Lstablished in 779, it also

acquired the largest book and music retailer in ndia =2andmark> in (@@F. $rent o"ns

over E lakh sq. ft retail space across the country.RPG Group

RPG Group is one of the earlier entrants in the ndian retail market, "hen it came into

food : grocery retailing in 776 "ith its retail 1ood"orld stores. 2ater it also opened the

 pharmacy and beauty care outlets =ealth : Glo">. Reliance is one of the biggest players

in ndian retail industry. More than D@@ Reliance 1resh stores and Reliance Mart are quite

 popular in the ndian retail market. t4s expecting its sales to reach Rs. 7@,@@@ crores by

(@@.

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?K 'irla Group?K 'irla Group has a strong presence in ndian apparel retailing. $he

 brands like 2ouis Phillipe, ?llen Solly, Kan eusen, Peter Lngland are quite popular. t4s

also investing in other segments of retail. t "ill invest Rs. 9@@@#7@@@ crores by (@@.

Retail formats in ndiaypermarts8supermarkets/ large self#servicing outlets offering

 products from a variety of categories.

• Mom#and#pop stores/ they are family o"ned business catering to small sections+

they are individually handled retail outlets and have a personal touch.

• 0epartmental stores/ are general retail merchandisers offering quality products

and services.

• )onvenience stores/ are located in residential areas "ith slightly higher prices

goods due to the convenience offered.

• Shopping malls/ the biggest form of retail in ndia, malls offers customers a mix

of all types of products and services including entertainment and food under a

single roof.

• L#trailers/ are retailers providing online buying and selling of products and

services.

• 0iscount stores/ these are factory outlets that give discount on the MRP.

• Kending/ it is a relatively ne" entry, in the retail sector. ere beverages, snacks

and other small items can be bought via vending machine.

• )ategory killers/ small specialty stores that offer a variety of categories. $hey are

kno"n as category killers as they focus on specific categories, such as electronics

and sporting goods. $his is also kno"n as Multi 'rand %utlets or M'%4s.

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• Specialty stores/ are retail chains dealing in specific categories and provide deep

assortment. Mumbai4s )ross"ord 'ook Store and RPG4s Music Borld are a

couple of examples.

)hallenges facing ndian retail industry

• $he tax structure in ndia favors small retail business

• 2ack of adequate infrastructure facilities

• igh cost of real estate

• 0issimilarity in consumer groups

• Restrictions in 1oreign 0irect nvestment

• Shortage of retail study options

• Shortage of trained manpo"er

• 2o" retail management skill

$he 1uture $he retail industry in ndia is currently gro"ing at a great pace and is

expected to go up to CSI 9DD billion by the year (@D. t is further expected to reach CSI

.D trillion by the year (@9 at a )?GR of @H. ?s the country has got a high gro"th

rates, the consumer spending has also gone up and is also expected to go up further in the

future. n the last four year, the consumer spending in ndia climbed up to 3FH. ?s a

result, the ndia retail industry is expected to gro" further in the future days. 'y the year 

(@D, the organi-ed sector is also expected to gro" at a )?GR of E@H.

Et'&l3'

Retail comes from the 1rench "ord retailer , "hich refers to !cutting off my hands, clip

and divide! in terms of tailoring &D6F*. t first "as recorded as a noun "ith the meaning

of a !sale in small quantities! in EDD &1rench*. ts literal meaning for retail  "as to !cut

off, shred, off my toes paring!. 2ike the 1rench, the "ord retail in both 0utch and

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German &detail Handel   and Einzelhandel  respectively*, also refers to the sale of small

quantities of items.

T'$e, # %etail tlet,

?  marketplace  is a location "here goods and services are exchanged. $he traditional

market square  is a city square  "here traders set up stalls and buyers bro"se the

merchandise. $his kind of market is very old, and countless such markets are still in

operation around the "hole "orld.

n some parts of the "orld, the retail business is still dominated by small family#run

stores, but this market is increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follo"s/

• 1ood products

• ard goods &!hardline retailers!* # appliances, electronics, furniture, sporting

goods, etc.

• Soft goods # clothing, apparel, and other fabrics.

$here are the follo"ing types of retailers by marketing strategy/

• 0epartment stores  # very large stores offering a huge assortment of !soft! and

!hard goods+ often bear a resemblance to a collection of specialty stores. ? retailer 

of such store carries variety of categories and has broad assortment at average

 price. $hey offer considerable customer service.

• 0iscount stores  # tend to offer a "ide array of products and services, but they

compete mainly on price offers extensive assortment of merchandise at affordable

and cut#rate prices. ormally retailers sell less fashion#oriented brands. o"ever 

the service is inadequate.+

• General merchandise store # a hybrid bet"een a department store and discount

store+

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• Supermarkets # sell mostly food products+

• Barehouse stores  # "arehouses that offer lo"#cost, often high#quantity goods

 piled on pallets or steel shelves+ "arehouse clubs charge a membership fee+

• Kariety stores or !dollar stores! # these offer extremely lo"#cost goods, "ith

limited selection+

• 0emographic # retailers that aim at one particular segment &e.g., high#end retailers

focusing on "ealthy individuals*.

• Mom#?nd#Pop or Jirana Stores/ is a retail outlet that is o"ned and operated by

individuals. $he range of products are very selective and fe" in numbers. $hese

stores are seen in local community often are family#run businesses. $he square

feet area of the store depends on the store holder.

• Specialty Stores/ ? typical specialty store gives attention to a particular category

and provides high level of service to the customers. ? pet store that speciali-es in

selling dog food "ould be regarded as a specialty store. o"ever, branded stores

also come under this format. 1or example if a customer visits a Reebok or Gap

store then they find ust Reebok and Gap products in the respective stores.

• )onvenience Stores/ is essentially found in residential areas. $hey provide limited

amount of merchandise at more than average prices "ith a speedy checkout. $his

store is ideal for emergency and immediate purchases.

• ypermarkets/ provides variety and huge volumes of exclusive merchandise at

lo" margins. $he operating cost is comparatively less than other retail formats. ?

classic example is the MetroU in 'angalore.

•

Supermarkets/ is a self service store consisting mainly of grocery and limited products on non food items. $hey may adopt a i#2o or an L02P strategy for 

 pricing. $he supermarkets can be any"here bet"een (@,@@@#E@,@@@ square feet.

Lxample/ SP?RU supermarket.

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• Malls/ has a range of retail shops at a single outlet. $hey endo" "ith products,

food and entertainment under a roof. Lxample/ Sigma mall and Garuda mall in

'angalore, Lxpress ?venue in )hennai.

• )ategory Jillers or )ategory Specialist/ 'y supplying "ide assortment in a single

category for lo"er prices a retailer can !kill! that category for other retailers. 1or 

fe" categories, such as electronics, the products are displayed at the centre of the

store and sales person "ill be available to address customer queries and give

suggestions "hen required. %ther retail format stores are forced to reduce the

 prices if a category specialist retail store is present in the vicinity. 1or example/

Pai LlectronicsU store in 'angalore, $ata )roma.

• L#tailers/ $he customer can shop and order through internet and the merchandise

are dropped at the customer4s doorstep. ere the retailers use drop shipping

technique. $hey accept the payment for the product but the customer receives the

 product directly from the manufacturer or a "holesaler. $his format is ideal for 

customers "ho do not "ant to travel to retail stores and are interested in home

shopping. o"ever it is important for the customer to be "ary about defective

 products and non secure credit card transaction. Lxample/ ?ma-on and Lbay.

• Kending Machines/ $his is an automated piece of equipment "herein customers

can drop in the money in machine and acquire the products. 1or example/ Soft

drinks vending at 'angalore ?irport.

Some stores take a no frills approach, "hile others are !mid#range! or !high end!,

depending on "hat income level they target.

%ther types of retail store include/

• ?utomated Retail stores are self service, robotic kiosks located in airports, malls

and grocery stores. $he stores accept credit cards and are usually open (E83.

Lxamples include OoomShops and Red box.

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• 'ig#box stores encompass larger department, discount, general merchandise, and

"arehouse stores.

• )onvenience store # a small store often "ith extended hours, stocking everyday or 

roadside items+

• General store # a store "hich sells most goods needed, typically in a rural area+

Retailers can opt for a format as each provides different retail mix to its customers based

on their customer demographics, lifestyle and purchase behavior. ? good format "ill lend

a hand to display products "ell and entice the target customers to spa"n sales.

COMPANY PROFILE

He%ita3e at a Gla"!e:

$he eritage Group, founded in 77( by Sri ara )handra 'abu aidu, is one of the

fastest gro"ing Private Sector Lnterprises in ndia, "ith four#business division>s vi-.,

0airy, Retail, ?gri, and 'akery under its flagship )ompany eritage 1oods &ndia*

2imited &12*. $he annual turnover of eritage 1oods crossed Rs.@76 crores in (@@#

.

Presently eritage>s milk products have market presence in ?ndhra Pradesh, Jarnataka,

Jerala, $amil adu and Maharashtra and its retail stores across 'angalore, )hennai and

yderabad. ntegrated agri operations are in )hittoor and Medak 0istricts and these are

 backbone to retail operations.

  n the year 77E, 12 "ent to Public ssue to raise resources, "hich "as

oversubscribed FE times and its shares are listed under ' )ategory on 'SL &Stock )ode/

F7FF(* and SL &Stock )ode/ LR$G1%%0*

A9t t5e #"(e%:

  Sri )handra 'abu aidu is one of the greatest 0ynamic, Pragmatic,

Progressive and Kisionary 2eaders of the ( st )entury. Bith an obective of bringing

 prosperity in to the rural families through co#operative efforts, he along "ith his relatives,

friends and associates promoted eritage 1oods in the year 77( taking opportunity from

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the ndustrial Policy, 77 of the Government of ndia and he has been successful in his

Lndeavour.

?t present, eritage has market presence in all the states of South ndia.

More than three thousand villages and five lakh farmers are being benefited in thesestates. %n the other side, eritage is serving more than 6 lakh customers needs,

employing more than 3@@ employees and generating indirectly employment opportunity

to more than F@@@ people. 'eginning "ith a humble annual turnover of ust Rs.E.D9

crores in 77D#7E, the sales turnover has reached close to Rs.D@@ crores during the

financial year (@@F#(@@6.

  Sri aidu held various coveted and honorable positions including )hief 

Minister of ?ndhra Pradesh, Minister for 1inance : Revenue, Minister for ?rchives :

)inematography, Member of the ?.P. 2egislative ?ssembly, 0irector of ?.P. Small

ndustries 0evelopment )orporation, and )hairman of Jarshaka Parishad.

  Sri aidu has "on numerous a"ards including ! Member of the Borld

Lconomic 1orum4s 0ream )abinet! &$ime ?sia *, !South ?sian of the Vear ! &$ime

?sia *, ! 'usiness Person of the Vear ! &Lconomic $imes*, and ! $ ndian of the

Millennium ! & ndia $oday*.

  Sri aidu "as chosen as one of F@ leaders at the forefront of change in theyear (@@@ by the 'usiness Beek maga-ine for being an unflinching proponent of 

technology and for his drive to transform the State of ?ndhra Pradesh .

F%a%( l6i"3 ,tate&e"t,:

  ;Be have gro"n, and intended to gro", focusing on harnessing our 

"illingness to experiment and innovate our ability to transform our drive to"ards

excellence in quality, our people first attitude and our strategic direction.

Mi,,i"

'ringing prosperity into rural families of ndia through co#operative efforts and providing

customers "ith hygienic, affordable and convenient supply of ! 1resh and ealthy ! food

 products.

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Vi,i"

$o be a progressive billion dollar organi-ation "ith a pan ndia foot print by (@F.

$o achieve this by delighting customers "ith !1resh and ealthy! food products, those

are a benchmark for quality in the industry. Be are committed to enhanced prosperity and

the empo"erment of the farming community through our unique !Relationship 1arming!

Model. $o be a preferred employer by nurturing entrepreneurship, managing career 

aspirations and providing innovative avenues for enhanced employee prosperity.

He%ita3e Sl3a":

  Bhen you are healthy, "e are healthy

Bhen you are happy, "e are happy

Be live for your !L?2$ : ?PPLSS!

0alit' $li!' # HFIL:

Be are committed to achieve customer satisfaction through hygienically

 processed and packed Milk and Milk Products. Be strive to continually improve the

quality of our products and services through up gradation of technologies and systems.

eritage4s soul has al"ays been imbibed "ith an un"ritten perpetual commitment

to itself, to al"ays produce and provide quality products "ith continuous efforts to

improve the process and environment.

?dhering to its moral commitment and its continuous drive to achieve

excellence in quality of Milk, Milk products : Systems, eritage has al"ays been laying

emphasis on not only revie"ing : re#defining quality standards, but also in

implementing them successfully. ?ll activities of Processing, Auality control, Purchase,

Stores, Marketing and $raining have been documented "ith detailed quality plans in each

of the departments.

  $oday eritage feels that the S% certificate is not only an epitome of 

achieved targets, but also a scale to identify : reckon, "hat is yet to be achieved on a

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continuous basis. $hough, it is a beginning, eritage has initiated the process of 

standardi-ing and adopting similar quality systems at most of its other plants.

C&&it&e"t,:

Mil6 P%(!e%,:

)hange in life styles of rural families in terms of/

• Regular high income through co#operative efforts.

• Bomen participation in income generation .

• Saved from price exploitation by un#organi-ed sector .

• Remunerative prices for milk .

• ncrease of milk productivity through input and extension activities

• Shift from risky agriculture to dairy farming

• eritage

• 1inancial support for purchase of cattle+ insuring cattle

• Lstablishment of )attle ealth )are )enters

• Supplying high quality )attle feed

• %rgani-ing !Rythu Sadasu! and Kideo programmes for educating the farmers in

dairy farming

C,t&e%,:

• $imely Supply of Auality : ealthy Products

• Supply high quality milk and milk products at affordable prices

• 1ocused on utritional 1oods

• More than E lakh happy customers

• igh customer satisfaction

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• (E hours help lines & @ complaints a day*

E&$l'ee,:

• Lnhancing the $echnical and Managerial skills of Lmployees through continuous

training and development

• 'est appraisal systems to motivate employees

• ncentive, bonus and re"ard systems to encourage employees

• eritage forges ahead "ith a motto !add value to everything you do!

Ret%",:

)onsistent 0ividend Payment since Public ssue &Nanuary 77F*

Se%i!e:

• ighest impotence to investor service+ no notice from any regulatory authority

since (@@ in respect of investor service

• Kery transparent disclosures

S$$lie%,:

  De5la%:  technical collaboration in Milk drinks, yogurts drinks and fruit

flavoured drinks ?lfa#2aval/ supplier of high#end machinery and technical support

1ocusing on $etra pack association for products package.

S!iet':

• Potential Lmployment Generation

More than DF@@ employees are "orking "ith heritage

More than 7F@@ procurement agents got self employment in rural areas

More than F@@@ sales agents associated "ith the company

• Lmployment for the youth by providing financial and animal husbandry support

for establishing M 0?RLS

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• Producing highly health conscious products for the society

0alitie, # &a"a3e&e"t $%i"!i$le,:

• )ustomer focus to understand and meet the changing needs and expectations of 

customers.

• People involvement to promote team "ork and tap the potential of people.

• 2eadership to set constancy of purpose and promote quality culture trough out the

organi-ation.

• Process approach to assess the efficiency and effectiveness of each process.

• Systems approach to understand the sequence and interaction of process.

• 1actual approach to decision making to ensure its accuracy.

• )ontinual improvement processes for improved business results.

• 0evelopment of suppliers to get right product and services in right time at right

 place.

P%(!tMa%6et i,e $e%#%&a"!e:

  $he total turnover is Rs DE )rores during the financial year (@@6#@3

against the turnover of (7(.@( )rores in (@@F#@6. $oday eritage distributes quality milk 

: milk products in the states of ?.P, Jarnataka, Jerala : $amil nadu.

  0uring the year (@@6#@3 liquid milk sales "as Rs.(9D(7.37 lakhs against

Rs.(EF(F.(D lakhs in the previous year. $he sales of milk products including bulk sales of 

cream, ghee and butter "ere recorded Rs F39.F7 lakhs against Rs E633.( lakhs.

Mil6 ,ale,:

(DH gro"th "as recorded in ?P (.D9 lakhs litres per day&22P0* in (@@6#@3

against .7D 22P0 in (@@F#@6. DH gro"th "as recorded in $amilnadu#.FD 22P0 in

(@@6#@3 against .DF 22P0 in (@@F#@6. %ver all gro"th of 6H "as recorded# F.E7 22P0

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in (@@6#@3 against F.6 22P0. 1lavoured milk sales recorded a gro"th rate of 33H over 

(@@F#@6. 'utter milk sales have gone up by EFH over (@@F#@6.

Otl6:

  )onsidering the gro"th potential in the liquid milk market, the company

has dra"n plans to increase its market share in the existing markets and to enter into ne"

markets there by doubling revenues in dairy business in the next D years. $o achieve this

obect, company is undertaking maor expansion in dairy business by inverting over Rs(@

crores during (@@6#@3 and over Rs@ crores during the current year to strengthen the milk 

 procurement.

CODE OF CONDUCT AND ETHICS 1%R 0RL)$%RS : SL%R M??GLML$

PREFACE $his )ode of )onduct and Lthics &herein after referred to as the !)ode!* has

 been adopted by the 'oard of 0irectors of eritage 1oods &ndia* 2imited &herein after 

referred to as !the )ompany!* , to be applicable to all 0irectors and all members of senior 

management i.e., personnel "ho are a part of the core management team and including all

functional heads of the company &herein after referred to as the 4Members4* "ith effect

from 0ecember (D, (@@F .$his )ode helps the Members maintain good standards of 

 business conduct, foster ethical and moral conduct and promote a culture of honesty and

accountability, so as to set an example to others in the company.

$he )ode is not an all#inclusive comprehensive policy and cannot anticipate every

situation that may arise in the course of the company4s business. $he Members are

expected to bear in mind the essence and substance of the )ode in all their dealings 8

transactions "ith the )ompany.

STRICT COMPLIANCE ?ll Members shall act "ithin the bounds of the authority

conferred upon them and undertake the duty to make and enact informed, udicious and

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harmonious decisions and policies in the best interests of the )ompany and its

shareholders 8 stakeholders. Bith a vie" to maintain the high standards the )ompany

requires, the follo"ing rules8 code of conduct to be observed in all activities. 1or the

 purpose of the code, the )ompany appoints the )ompany Secretary as compliance

officer, "ho "ill be available to Members to ans"er questions and help them in

complying "ith the code. CONFLICT OF INTEREST $he term !)onflict of interest!

 pertains to situations in "hich financial or personal considerations may compromise, or 

have the appearance of compromising udgment of professional activities. ? conflict of 

interests exists "here the interests or benefits of one person or entity conflicts "ith the

interests or benefits of the other person8entity8company.?ll Members should not engage

in any business, relationship or activity, "hich may be in conflict "ith the interest of the

)ompany. )onflict may arise in many situations. t is not possible to cover every possible

conflict situation and at times, it "ill not be easy to distinguish bet"een the proper and

improper activities. Set forth belo", are some of the common circumstances that may

lead to conflict of interest, actual or potential.

i. Members should not engage in any activity 8 employment that interfere "ith your performance

or responsibility to the )ompany or other"ise in conflict "ith or preudicial to the interests of 

the )ompany.ii. ?s a general policy, Members should avoid conducting business "ith a relative or "ith a

firm 8 )ompany in "hich a relative 8 related party is associated in a significant role 8 position.iii. Bhenever8 "herever the related party transaction is unavoidable Members "ill fully disclose

their interest in the transaction to the 'oard or to the )L% of the )ompany and due records for 

such transactions "ill be maintained as per the statutory requirements.

HONESTY AND INTEGRITY ?ll Members shall conduct their activities, on behalf of 

the )ompany and on their personal behalf, "ith honesty, integrity and fairness. $hey "ill

act in good faith, "ith responsibility, due care, competence and diligence, allo"ing

independent udgment to their subordinates. Members shall act in the best interests of the

)ompany and fulfill their fiduciary obligations. POLICY OF BUSINESS

RELATIONSHIP 

$he )ompany "ill conduct business legally and ethically. $he quality of company4s

 products and the efficiency of its services at the most competitive price is the greatest tool

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in conducting the business of the company. Profits do not ustify unfair8 unethical

 practices. ?ll Members should uphold the highest standards of integrity in all the business

relationships.

INTELLECTUAL PROPERTY POLICY 

?ll Members have utmost obligation to identify and protect the intellectual properties,

trade secrets and confidential information o"ned by the )ompany and its clients or 

associates as it is critical to the success of the company. "Intellectual Property ights" 

!IP means generally patented or potentially patentable inventions, trademarks,

copyrightable subect matters and trade secrets.

CORPORTE OPPORTUNITIES Members o"e a duty to the )ompany to advance its

legitimate interests "hen the opportunity to do so arises and are expressly prohibited

from improper use of information 8 property or taking improper advantage of their 

 position. PREVENTION OF INSIDER TRADING nsider trading is prohibited both

 by the 2a" as "ell as by the company policy . nsider trading generally involves the act

of subscribing to or buying or selling of the )ompany4s securities, "hen in possession of 

any Cnpublished Price Sensitive nformation about the company. "Price sensitive

in#ormation ! is such information, "hich relates directly or indirectly to the company and

"hich if published is likely to materially affect the price of securities of the )ompany. t

is important to note that both positive and negative information could be price sensitive.

Members shall not derive benefit or assist others to derive benefit or assist them to derive

 benefit on their behalf by giving investment advice from the available access to and

 possession of information about the )ompany, "hich is not in public domain and thus

constituting insider information. Members shall comply "ith the prevention of insider 

trading guidelines as issued by Securities Lxchange 'oard of ndia &SL'*.

SECURITIES MAR;ET POLICY 

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$he )ompany is committed to comply "ith securities la"s in all the markets in "hich the

)ompany4s securities are listed. $he company prohibits fraudulent and unfair trade

 practices "ith regard to the securities of the )ompany by all Members.

CONFIDENTIALITY OF INFORMATION POLICY  $he )ompany4s confidentialinformation is a valuable asset. Members shall understand that protection of all

confidential information is essential. Members should undertake and be committed to

 protecting business and personal information of confidential nature obtained from clients,

associates and employees. ?ny information concerning the )ompany4s business, its

customers, suppliers etc "hich is not in the public domain and to "hich the Members

have access or possesses such information, shall be considered confidential and held in

confidence, unless authori-ed to disclose or such disclosure is required as a matter of la".

Members shall not provide any information either formally or informally, to the press or 

any other publicity media, unless specially authori-ed to do so.

COMPLIANCE +ITH LA+S< RULES AND REGULATIONS 

Members should comply "ith all applicable la"s, rules, and regulations, both in letter 

and sprit. n order to assist the )ompany in promoting the la"ful and ethical behavior,

Members have to report any possible violation of la", rules, regulations or the code of 

conduct to the )ompany Secretary.

PROTECTION AND PROPER USE OF COMPANY=S ASSETS 

?ll Members have the responsibility to protect the assets of the company, ensure optimal

utili-ation of assets and to report and record all transactions. Members shall protect the

)ompany4s assets from loss, damages, misuse or theft and assets may only be used for 

 business purposes and other purposes specifically approved by management and must

never be used for any personal or illegal purposes.

COMPETITION POLICY 

$he )ompany shall compete only in an ethical and legitimate manner. t prohibits all

actions that are anti# competitive or other"ise contrary to la"s that govern competitive

 practices in the market place. Members shall uphold the same.

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SELECTING SUPPLIERS 

$he )ompany4s suppliers make significant contribution to its success. $he )ompany4s

 policy is to purchase 8 avail supplies based on need, quality, service, price and other 

commercial terms and conditions. Suppliers should be selected based on merit, price,quality and performances. $he )ompany4s policy is to select significant suppliers through

a competitive bid process "herever possible. Cnder no circumstance should the )ompany

or its employee, agent or contractor attempt to coerce suppliers in any "ay.

ENVIRONMENT< HEALTH AND SAFETY POLICY 

Members shall take environmental consciousness a step further as a company and

contribute to preserving nature as "ell as safety measures in o"n respective "ork areas.

?ll Members are responsible for conducting safe and environmentally sound operations+this is in the interest of our o"n "ell#being and the quality of life of others. Members

shall abide by this policy.

ELIMINATION OF CHILD LABOUR  

t is the )ompany4s policy not to support child labor. $he )ompany is committed to

implement the provisions of the )hild 2abor &Prohibition and Regulation* ?ct, 796. $o,

 promote this the )ompany encourages its suppliers also to "ork to"ards a no child labor 

 policy in their industries. Members shall strictly observe that no child labor is employed

in the company.

ABOLITION OF FORCED LABOUR  

$he )ompany strictly prohibits forced or compulsory labor. $he )ompany is committed

to ensuring that employees enter into employment and stay on in the )ompany of their 

o"n free "ill. Members shall uphold this policy.

GIFTS 8 DONATIONS 

 o Member shall receive or offer, directly or indirectly, any gifts, donations,

remuneration, hospitality, illegal payments and comparable benefits "hich are intended

or perceived to be intended to obtain business &or uncompetitive* favors or decision for 

the conduct of the business. ormal gifts of commemorative nature for special events

may be accepted and reported to the 'oard.

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OTHER DIRECTORSHIPS 

$he )ompany feels that serving on the 'oard of directors of other companies may raise

substantial concerns about potential conflict of interest. $herefore all 0irectors shall

report 8 disclose such relationships to the 'oard on an annual basis. t is felt that serviceon the 'oard of a direct competitor is not in the interest of the )ompany. ence all the

0irectors are barred in accepting such position "ithout the concurrence of the 'oard.

ACCOUNTABILITY 

$he 'oard of 0irectors &'%0* shall oversee the )ompany4s adherence to ethical and

legal standards. ?ll employees and members of the '%0 shall undertake to stop or 

 prevent actions that could harm customers or reputation of the )ompany and to report

such actions as soon as they occur to take corrective steps and see that such actions arenot repeated.

COMPLIANCE +ITH CODE OF CONDUCT 

Lach 0irector and senior management personnel shall adhere to this code of conduct and

affirm compliance "ith the code on an annual basis as per the ?nnexure to the )ode.

Kiolation of this )ode "ill lead to appropriate disciplinary action.

+AIVER OF THE CODE 

?ny "aiver of the applicability of the )ode or "aiver of application of any provision of 

the )ode to any Member shall be approved by the 'oard of 0irectors and disclosed as

required by 2a" or SL' 8 Stock Lxchange regulations.

BRANCHES OF HFIL:

12 has D "ings. $hey are

• 0airy

• Retail

• ?gribusiness

1. Dai%':

t is the maor "ing among all. $he dairy products manufactured by 12 are

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Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

*. Retail:

  n the retail sector 12 has outlets namely ;1reshW<. n those stores the

 products sold are vegetables, milk: milk products, grocery, pulses, fruits etc.

  n yderabad 7 retail shops are there. n 'angalore: )hennai, D:E

respectively are there. $otally there are (6 retail shops are there.

  1reshW is a unique chain of retail stores, designed to meet the needs of the

modern ndian consumer. $he store rediscovers the taste of nature every day making

grocery shopping a never before experience.

  $he unique: distinctive feature of 1reshW is that it offers the "idest

range of fresh fruits and vegetables "hich are directly hand picked from the farms.

1reshness lies in their merchandise and the customers are al"ays "elcomed "ith fresh

fruits and vegetables no matter "hat time they "alk in.

/. A3%i B,i"e,,:

  n this business 12 employees "ill go to farmers and have a deal "ith

them. $hose farmers "ill sell their goods like vegetables, pulses to 12 only. ?nd 12

"ill transport the goods to retail outlets.

  $he agricultural professors "ill examine "hich area is suitable to import

vegetables from and also examine the vegetables, pulses and fruits in the lab. ?nd finally

they report to the ead#?gribusiness. Representatives as per the instructions given by the

agri professors "ill approach the farmers directly and make a deal "ith them. t is the

 process of registering the farmers.

eritage 1inlease He%ita3e Fi"lea,e Li&ite( "as incorporated under the companies ?ct

7F6 on (Drd of 1ebruary 776 and commenced business from (nd day of ?pril 776.

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$he Registered office is located at 6#D#FE8c Punagutta, yderabad#F@@@9(.

T5e #lli"3 a%e t5e (i%e!t%, # t5e !&$a"': Sri 0.SeetharamaiahSmt. .

'huvanes"ari Sri M. Sivarama Karaprasad Sri R.S.'akkannavar $he )ompany "as

registered as on 'anking 1inancial nstitution on Fth 0ay of 0ecember 779 by

Reserve 'ank of ndia as a 0eposit $aking )ompany under the category ire Purchase

)ompany.

?t Present the company is allo"ing 0airy 2oans to Small 1armers under $ie up

arrangement "ith eritage 1oods &ndia* 2imited. $he )ompany has been earning profits

from inception and functioning in conformity "ith the rules and directions of Reserve

'ank of ndia.

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CHAPTER-IV

DATA ANALYSIS

8

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INTERPRETATION

?GL GR%CP %1 $L RLSP%0L$S/

$he belo" table sho"s the age group of the respondents surveyed/

?GL o %f Respondents

9#(9 FE

(9#D9 (9

D9#E9 @

?bove E9 9

$otal @@

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1LRL)L/ 1rom the above table, FEH of the respondents belong to the age group of 

9#(9 years, (9H of the respondents belong to the age group of (9#D9 years, @H of the

respondents belong to the age group of D9#E9 years, 9H of the respondents belong to the

age group of above E9 years.

%))CP?$% %1 $L RLSP%0L$S/

$he belo" table sho"s the type of respondents of the respondents surveyed.

%ccupation o %f Respondents

Student D6

'usiness 9

Private Lmployee (9

Govt Lmployee 9

$otal @@

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1LRL)L/ 1rom the above table D6H of the respondents are students, 9H of the

respondents are businessmen, (9H of the respondents are private employee, 9H of the

respondents are Govt employee.

?KG J%B2L0GL %R %$/

$he belo" table sho"s that "hether the respondents is having a t"o "heeler or not

aving Jno"ledge or not o of respondents

Ves 9@

 o (@

$otal @@

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1LRL)L/

1rom the above table 9@Hof people having Jno"ledge Retail products and (@H are not

having Jno"ledge Retail products.

$VPL %1 1%%0 PR%0C)$S $?$ $L RLSP%0L$ S J%B/

$he belo" table sho"s the type of food products that the respondent kno".

$ype of food products o of respondents H of respondents

LR$?GL E( E(

S%PPLRS> S$%P E E

M%RL (6 (6

'G '?O??R F F

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21L S$V2L @D D

$%$?2 @@ @@

1LRL)L/

 1rom the above table E(Hof the respondents are having LR$?GL food products.

EHof the respondents are having S%PPLRS> S$%P. (6Hof the respondents are having

M%RL food productss.FH of the respondents are having 'G '?O??R food

 productss.DH of the respondents are having 21L S$V2L food products.

S%CR)LS %1 1%RM?$%

$he belo" table sho"s, from "here did the respondent get the information about the

1ood products.

Sources of information o of respondents

%ffers F

?dvertisements (3

Referred from friends : relatives DD

$echnology @

1inance Schemes F

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$otal @@

1LRL)L/

1rom the above table FHof people kno"n from offers, (3H of people kno"n from

advertisements, and DDH of people kno"n from their friends and relatives, @H of people

kno"n from technology, FH of people kno"n from finance schemes.

S?$S1?)$% B$ LR$?GL/

LR$?GL Style Performance 1eatures Price Auality Reliability

  Service

 providing eatness'rand mage

Lxcellent 7 F @ F @ @ @ 7

Kery good @ 7 6 D 7 F @ @

Good @ D ( F F F

?verage6 F @ @ 3 @

Poor  @ @ @ @ @ @ @ @

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S%PPLRS>

S$%P Style Performance 1eatures Price Auality Reliability

  Service

 providing eatness 'r

Lxcellent 6 ( @ @ @ @ (

Kery good E F 6 3 9 ( 6 (

Good ( E F F @ ( 6 3 (

?verage @ ( F 9 6 @ ( D

Poor @ @ @ @ @ @ @ @ @

S?$S1?)$% B$ S%PPLRS> S$%P/

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S?$S1?)$% B$ 21L S$V2L/

21L S$V2L Style Performance 1eatures Price Auality Reliability Service providing eatness

'r

m

Lxcellent ( D 7 F ( 3 @ ( D

Kery good ( F 7 F E 6 F (

Good @ F D E F F 6 D 9

?verage F ( @ 6 @ F F

Poor @ @ @ @ @ @ @ ( (

 

S?$S1?)$% B$ M%RL/

M%RL Style Performance 1eatures Price Auality Reliability

  Service

 providing eatness

'rand

mage

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Lxcellent D 6 ( F 6 9 F 6 E

Kery good( F 6 E 6 6 E 6 9

Good 6 ( 9 7 D F 3 E F

?verage ( F 6 ( E 9 3 ( F

Poor @ @ @ @ @ @ @ @ @

 

$he follo"ing table sho"s, the main motive, "hich the respondents "ant to be in their 

 brand of food products.

Mai" Mtie N # Re,$"(e"t,H of respondents

Style

Performance (( ((

1eatures E E

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Price (( ((

Auality ( (

Reliability

Service providing ( (

 eatness 3 3

$otal @@ @@

1LRL)L/

1rom the above table H of the respondents preferred S$V2L as their main motive,

((H of the respondents preferred PR)L as their main motive, EHof the respondents

 preferred PLR1%RM?)L as their main motive, ((H of the respondents preferred

AC?2$V as their main motive, (H of the respondents preferred RL2?'2$V as their 

main motive, H of the respondents preferred SLRK)L as their main motive, (H of 

the respondents preferred L?$LSS as their main motive, 3H of the respondents

 preferred 'R?0 M?GL as their main motive.

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S$V2L/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected S$V2L as their main motive.

'rand o of respondents

LR$?GL (E

S%PPLRS> S$%P DF

M%RL D@

21L S$V2L @

'G '?O??R @

$otal @@

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1LRL)L/

  $he above table sho"s that S%PPLRS> S$%P and M%RL are the competitors

"ith LR$?GL.

PR)L/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected PR)L as their main motive.

'randN # %e,$"(e"t,

LR$?GL (3

S%PPLRS> S$%P 9

M%RL E(

21L S$V2L

'G '?O??R (

$otal @@

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1LRL)L/

  $he above table sho"s that M%RL is the competitor "ith LR$?GL.

PLR1%RM?)L/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected PLR1%RM?)L as their main motive.

'rand o of respondents

LR$?GL EF

S%PPLRS> S$%P @

M%RL D@

'G '?O??R @

21L S$V2L F

$otal @@

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1LRL)L/

  $he above table sho"s that LR$?GL is the best.

AC?2$V/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected AC?2$V as their main motive.

Auality o of respondents

LR$?GL FE

S%PPLRS> S$%P F

M%RL (

'G '?O??R F

21L S$V2L F

$otal @@

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1LRL)L/

  $he above table sho"s that LR$?GL is the best.

RL2?'2$V/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected RL2?'2$V as their main motive.

Reliability o of respondents

LR$?GL E@

S%PPLRS> S$%P (

M%RL E@

'G '?O??R F

21L S$V2L D

$otal @@

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1LRL)L/

$he above table sho"s that M%RL is the competitor "ith LR$?GL.

 SLRK)L/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected SLRK)L as their main motive.

?fter Sales Service o of respondents

LR$?GL F(

S%PPLRS> S$%P 9

M%RL (3

21L S$V2L D

'G '?O??R @

$otal @@

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1LRL)L/

  $he above table sho"s that LR$?GL is the best.

 L?$LSS/

$he follo"ing table sho"s that, some of the brands of Retail products respondents

selected L?$LSS as their main motive.

 L?$LSS o of respondents

LR$?GL D@

S%PPLRS> S$%P @

M%RL (F

21L S$V2L @

'G '?O??R (F

$otal @@

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1LRL)L/

$he above table sho"s that LR$?GL is the best.

'R?0 M?GL/

$he follo"ing table sho"s that, some of the brands of Retail products respondentsselected 'R?0 M?GL is their main motive

'rand mage o of respondents

LR$?GL D@

S%PPLRS> S$%P @

M%RL D@

21L S$V2L F

'G '?O??R F

$otal @@

 

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1LRL)L/

  $he above table sho"s that LR$?GL : M%RL is the best.

Respondents "ho "ant to buy the Shopping of a particular brand/

'rand o of respondents

LR$?GL EF

S%PPLRS> S$%P @@

M%RL (@

21L S$V2L @

'G '?O??R (F

$otal @@

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1LRL)L/

  $he above table sho"s EFH of the respondents "ant to buy LR$?GL.

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CHAPTER-V

SUMMARY OF SUGGESTIONS

 

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SUGGESTIONS

•   $he food products recently introduced by LR$?GL are mostly concerned

about Stylish Goods. So, they should also consider middle#class people also

• ndian market is a price sensitive market>s the food products should be at

Minimum price "ith maximum quality.

•  $he standard of service should be improved.

• ?dvertisements in $elevisions, offers should be increased to attract the People.

• f LR$?GL can improve in S$V2L and L?$LSS it "ill be the best in all

the %ther competition brands.

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C5a$te% >

CONCLUSIONS

FINDINGS

BIBILIOGRAPHY

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CONCLUSIONS

• E@H of the respondents are LR$?GL customers and hence it is most

Preferred Retail products brand out of various brands.

• LR$?GL 0?R is the most preferred out of ?ll others

• 6@H of the respondents are considering LR$?GL brand before Purchasing

their retail needs.

• Most of the respondents are getting information through friends 'efore

 purchasing the retail brand products.

• Most of the respondents are having good satisfaction "ith Service comparing

to other brands.

• Most of the respondents are giving more preference to Auality.

• 6@H of the respondents are affecting by their friends and relatives.

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FINDINGS

• E@H of the LR$?GL customers are employees and (7H of the customers are

others.

• Most of the respondents belong to the age group of 9#E@ years.

• LR$?GL 0?R : RL$?2 Products is the most preferred in the LR$?GL

 products.

• Most of the respondents getting information through the Media and friends before

 purchasing the vehicle.

• Most of the respondents are motivated by their friends and family members.

• Most of the respondents have good satisfaction "ith the performance of outlets.

• 6EH of the respondents are satisfied "ith the Auality of their Products.

• Most of the respondents felt that the price is reasonable.

• )ent percent of the respondents satisfied "ith the response of the sales executive

at first visit.

• 6@H of the LR$?GL users have good satisfaction "ith the services given by

the company.

• Most of the respondents are satisfied "ith the response of the company to the

complaints given by the customers.

• Most of the respondents are satisfied "ith the fulfillment of promises by the

company.

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BIBILIOGRAPHY .  $%TH& '$ME E(EED )&&*+

• P22P J%$2LR Principles of Marketing 5 th Ldition

  Prentice all ndia.

• P22P J%$2?R Marketing Management 5 Millennium

  Ldition.Prentice all ndia

• K.S.R?M?SB?MV : Marketing Management #3th Ldition

  ?M?JCM?R Millennium ndia 2td.

• R)?R0 R S$22 Sales Management #Fth Ldition

  Prentice all ndia.

• G.).'LR Marketing Research #6th Ldition

  $ata McGra" ill )o.2td.

• 2C)J 0?K0 : Marketing Research #3th Ldition

  R%' R%?20 Prentice all ndia.

  BL' S$LS

""".heritagefoods.com

  """.retailinginindia.com

  """birlagroup.com

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""".S%PPLRS> S$%P .com

)hapter 3

?nnexure

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ACLS$%?RL

'CVG M%$KLS 1%R RL$?2 'CSLSS

  Gender/ Male Fe&ale?????? A3e: ???? Hi35e,t E(!ati"al

0ali#i!ati":??????????????? 

 

Q.1) How Often you visit Heritage store: …………………………..

  Q.2) What is the best in Heritage store:?

  1) Infrastructure 2) Arrangeent

  !) "ervice #) $one

  Q.!) %ate the Heritage service ?

a) &oor b) 'o(erate c) "atisfactory () oo( e) e*ce++ent.

  Q.#) ,y-e of faci+ity:………………………………..

  a) "e+f serve

  b) u++ serve

  c) /oth

 

Q.0) Are you satise( by custoar service -rovi(e( at Heritage retai+store

  a) 3" b) $O

  Q.4) What is your Average bi++ that you a5e here:………………………

99

Loyola Business School, Bangalore

7/17/2019 Retail Marketing System - Heritage

http://slidepdf.com/reader/full/retail-marketing-system-heritage 84/84

 

Retail Management System at

Q.6) In which way you -referre( in buying Heritag /ran(

a)O7er b)a(vertiseent c),echno+ogy ()inance sches

Q.8) Avai+abi+ity of -ro(ucts at Heritage retai+ store is ?

  a)e*ce++ent b)very oo( c)oo( ()Average e)&oor

  Q.9) %ate the -rices in(e*e( here re+ating to 'ar5et -riceOther stores?

  a) ;ow b) 'o(erate<"atisfactory c) High

  Q.1=) WHA, I" ,H3 'AI$ 'O,I>3 /3HI$ &@%HA"I$ H3%I,A3

&%O@,"?

"ty+e &erforance &rice

  Qua+ity %e+iabi+ity "ervice

Q.11) Out of the fo++owing -ro(ucts which -ro(ucts are being so+( at yourretai+

Out+et?&+ease tic5 at a--ro-riate -+ace)

 ,y-e of &ro(uct our res-onse

  roceries

'

  $O$B'