Project Report On Retail Sector In India By Satishpgoyal

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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1. ITRODUCTIO Retailing consists of the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sales of goods and services to the final consumer.

Retailing as an industry

Retailing is world's largest private industry with annual sales over $ 6600 billion. Wal-Mart annual sales over $ 250 billion. It has share of 2.3% of U.S. G.D.P. There are nine retailers in Fortune 100, which highlights the importance of retailing as category.

According to a market estimate after agriculture, retail is the largest single sector, both in term of turnover or will as employment in India. With market size of $200 billion. The report said the Indian retail industry is in revolution phase.

Organized retailing in India, which account for less than 4%, is likely to grow four fold in the next five years. That means it will grow from current size of around $4 billion (Rs. 17,000 Crore) to around $15 billion (Rs. 66000 Crore) the neighborhoods corner shops estimated at 70 million across the country, and village Mela’s characterize the unorganized and fragmented nature of retailing in India.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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RETAILERS I IDIA

1) K. Raheja Group







Shopper’s stop Home Stop Mother care Hyper city Crossword Planet M

2) Tata Trent
Westside
Star India Bazaar
Landmark 3) RPG Group





Spencer’s supermarket Spencer’s daily Spencer’s hypermarket Music world

4) Reliance Group



Reliance fresh Subhiksha

5) Bharti Group 6) Aditya Birla Group 7) Café Coffee Day 8) Pantaloon retail (I) Pvt. Ltd          

Pantaloons Big bazaar Food bazaar Fashion station All Blue sky E Zone Collection I Home Town Central Mall

9) Godrej Group  Godrej Aadhar  Nature’s Basket

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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TABLE 1.1 : TOP 20 RETAILERS WORLD WIDE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Retailers

Sales (US$)

Wal-mart Stores, Inc Carrefour group The Kroger Co Metro A G The Home depot INC Albertsons inc ITM Enterprise SA sears, Roebuck and co. Kmart Corporation Target Corporation J.C. penny Company, Inc. Royal A hold Safeway Inc Rewe-Gruppe Tesco PLC Ito-Yokado Co., Ltd. Edeka-Gruppe Costco Companies, Inc Tengelmann warenhandelsgesellschaft The daiei, Inc

163,532 52,196.10 45,352 44,163 38,434 37,478 36,762 36,728 35,925 33,702 31,503 31,222 30,801 30,578 30,404 30,237 30,002 26,976 26,509 26,486

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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RETAIL I IDIA The retail industry in India is largely unorganized & predominantly consists of small , independent, owner-managed shops. Retailing is INDIA’s largest industry in terms of contribution to GDP & constitutes 13% of GDP. There are around 5 million retail outlets in India. There are also an uncounted number of low cost kiosks (tea stalls, snacks centre, barber shops, etc) & mobile vendors. Total retail sales area in India was estimated at 328 million sq.mt.in 2001, with an average selling space of 29.4sq.mt. per outlet. In India the per capita retailing space is about 2 sq. ft, which is quite low compared to that of developed economies. In 2000, the global management consultancy AT Kearney put retail trade at 400,000 crore , which is expected to increase to Rs.800,000 crore by year 2005 – an annual increase of 20%. According to the survey, an overwhelming proportion of the Rs.400,000 crore retail market is unorganized. In fact only a Rs20,000 crore segment of market is organized. There is no integrated supply chain management outlook in Indian traditional retail industry. Food sales constitute a high proportion of the total retail sales. The share was 62.7% in 2001,worth apprx. Rs 7032.2 billion, while non food sales were worth Rs.4189.5 billion. However the non-food retailing sector registered faster year-on-year growth than the food sales sector. The trend to market private labels by specific retail store is catching on in India as it helps to improve margins. The turnover from private labels by major retail chains was estimated at around Rs 1200 million in 2001. CURRET SCEARIO OF IDIA RETAIL:  Unorganized market; Rs. 583,000 crores.  Organized market; Rs. 5,000 crores.  5 x growths in organized retailing between 2000-2005.  Over 4000 new modern outlets in last 3 years.  Over 5,000,000 sq. ft. of mall space under development.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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 The top 3 modern retailers control over 750,000 sq.ft of retail space.  Over 400,000 shoppers walk through their doors every week.  Growth in organized retailing on par with expectations and projection of the last 5 years: on course to touch Rs. 35,000 crore or more by 2005-06. TABLE1. 2: GROWTH I RETAIL OUTLETS (MILLIOS): Year Urban 1978 0.58 1984 0.75 1990 0.94 1996 1.80 Source: www.indiainfoline.com

Rural 1.76 2.02 2.42 3.33

Total 2.35 2.77 3.36 5.13

TABLE 1.3: COMPOSITIO OF URBA OUTLETS: Retail outlet

Composition

Grocers

34.7%

Cosmetic stores

4.0%

Chemist

6.3%

Food stores

6.6%

General stores

14.4%

Tobacco, pan stores

17.0%

Others

17.0%

Source: www.indiainfoline.com TABLE 1.4: COMPOSITIO OF RURAL OUTLETS: Retail outlet

Composition

Grocers

55.6%

General stores

13.5%

Chemists

3.3%

Others

27.6%

Source: www.indiainfoline.com

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Retailing in India  Diversities differentiates itself from the standard development of modern retail anywhere in the world.  Conventionally, retailers focus on homogeneity and continuity in order to derive benefits of scale and efficiency in their system.  Globally, retailers develop two or three major formats which are largely standardized, may not work in India.  Significantly large, truly pan-Indian, multi-format modern retailing model needs to be developed in India. 

The Indian market will provide the footsteps to develop a model for globalizing retailing.

 This will be the biggest contribution of Indian retailers to the world.  Indian retailers can establish ‘thought leadership’ is in the field of technology.  Unlike in developed countries, Indian retailers do not have ‘legacy systems’ on which they have to build their technology platform.  As retail grows and develops fresh technology-led solutions, India will take a leap and the next generation retail technology solutions may well come out of India.  Usage of RFID and the next practices in technology-based retail solutions may well emerge from Indian retailing.  Indian retailers would do well to develop their own systems and benchmarks that are admired and followed the world over.

ext 3-5 years are tough for retail biggies  The retail sector is expected to grow 40% to $427 billion by 2011.  By 2017, organized retail will be 15-20% of the total retail market.  Total retail market $ 800-billion by 2017.  Impact on rural incomes and urban prices will be real and positive.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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 Organized retailing in India will need painstaking, often frustrating, effort to chisel out Indiaready business models, retail formats and delivery models.  Products, Properties, People and Profitability are going to be huge challenges.  The real estate prices and shortage of talented staff, the run-up expenses for growth are going to shoot up sharply.  Significant delay in completion of shopping malls by developers and unreasonably high property prices is adversely affecting the growth of the sector.  The situation is expected to improve in 2009, when a large, and probably an oversupply of retail space is expected to come on-stream. By the year 2010, it is expected that there will be around 500 shopping malls, adding over 250 million square feet of retail space.  Its' just the first phase of retail playing out in India currently, where lot of players are merely 'land-grabbing'.  In second phase the focus will be on creating differentiation. And in a couple of years, half of the new entrants of today will simply die.  In 2008, the competitive landscape is also expected to unfold with many large entrants finally launching their operations.  Understanding, interpreting and catering to Indian consumer behavior, taking into account the social diversity in the country will be crucial to the success of new players.  New formats in specialty retail, wholesale retail and luxury retail are expected to emerge.  The next few years will provide the answers to the most crucial questions on the sustainability of modern retailing in India.  Whether the Indian consumer market can sustain such large growth in modern retail, whether more and more people will join the consuming class and what the real market size in small cities will be, become clearer.  By 2010 a conclusion on the consumption potential in India can be reached.  No one can stop the growth of modern retail and the consequent impetus to consumption and development in India.  “
o one can stop an idea whose time has come” - Victor Hugo. Institute Of Business Studies & Research Pune (Satish P.Goyal)

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TABLE 1.5:

Organised retail market in India (Rs crore)

Where is the opportunity? Retailers inspired by the Wal-Mart story of growth in small town America are tempted to focus on smaller towns and villages in India. However, a careful analysis of the town strata-wise population, population growth, migration trends and consumer spend analysis reveals a very different picture for India.

As per our estimates, the share of the 35 towns with a present population of greater than 1 million in India's total population would grow much faster than their smaller counterparts, from 10.2 per cent today to reach 14.4 per cent by 2025. Simultaneously, the share of these towns in the overall retail market would grow from 21 per cent today to 40 per cent by 2025.

Within these top 35 towns, an estimated 70 to 80 per cent of retail trade could be in the organised sector. This is similar to the experience in China, where in cities like Shanghai and Beijing, the organised sector accounts for 70 to 80 per cent of overall retail trade in certain categories. Retailers should therefore focus on the top 37 towns in the next decade, as the opportunity in smaller towns and

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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rural India would be smaller and more fragmented, compared to the larger towns.

TABLE 1.6: Organised retail market in India

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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1.2 OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE: 1. Study about the LOYALTY schemes run by the mall. 2. Study the customer approach towards the mall. 3. Study about the floor operations in a shopping mall. 4. Comparative analysis of all retailers in this section to differentiate with other competitors.

SECODARY OBJECTIVE: 1. Understand the customer behavior inside the mall. 2. Customers expectation from the mall. 3. Gather all the information about all the competitors. 4. All details about the loyalty scheme in retail sector. 5. To make suggestion towards the improvement in loyalty schemes. 6. To make suggestion towards STORE PATRONAGE.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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1.3 RESEARCH METHODOLOGY

ITRODUCTIO:

Research methodology is a way to systematically solve research problem. In it we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them. It is necessary for a researcher to know not only the research methods/techniques but also the methodology. It may be noted, in the context of planning & development, that the significance of research lies in its quality and not in quantity. Researchers should know how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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There are various stages to solve the research problem as shown in following diagram:

Research Problem

Rational/ Scope of Study Research Design •

Research Methodology

•

Type of research

Sampling Design • • • •

•

Technique of sampling Sample Population Sample Frame Sample unit Sample Size

Data Collection • •

Primary Data Secondary Data

Fig 1.1 DATA COLLECTIO:

PRIMARY SOURCE: The method of data collection is done by the way of survey; this is a process where by first hand information is collected. This method is needed for meeting the specific objective of research study. I have collected primary data in the form of filled structured questionnaire by customers. In first questionnaire I collect whole data about customer’s feedback about LOYALTY CARD. In second I collect all the data regarding to comparative analysis.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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SECONDARY SOURCE: The secondary data was collected in the form of company profile and product profile from the Web Site of PANTALOONS. Some other Web Sites were also referred. For collecting the required data the CSA’S of the mall were also consulted. The data has helped in ascertaining the strategies and approaches of major players in market. Thus the study involved collection, analysis and interpretation of a lot of data relating to this sector. The data is collected from various sites, books, journals, etc. SAMPLE DESCRIPTION: After deciding on the research approach and instruments, the marketing research must design the sampling plan: 1. SAMPLIG SIZE:

The target for this the customers who come for shopping inside the

mall. Sample size of the study is 200 customer’s who come for shopping inside the mall. 2. SAMPLE SELECTIO PROCEDURE: Since it is the survey of customer, to obtain an unbiased result the customers sample from the population were interviewed randomly. So the sampling technique chosen for the research is Random sample technique. Every customer inside the mall had an equal chance of being interviewed. 3.

SAMPLE UIT: The customer who come for shopping inside the mall is the sample unit.

4. COTACT METHOD: Personal approach to each and every customer for all surveys and interviews were the Contact method used for obtaining a proper and detailed feedback. A face-toface Interaction took place with each sample representative. The data collected through questionnaire was properly classified and tabulated in the form of a report. These reports formed the basis for the comparative analysis and drawing inferences there from. From the inferences drawn certain conclusions and recommendations were made. 5. FIELD WORK: The fieldwork was conducted for a period of 15 days for both the research. Interviews were conducted inside the mall by face – face interviewing. Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Institute Of Business Studies & Research Pune (Satish P.Goyal)

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2.1 REVIEW OF COCEPT AD THEORIES:

FIRSTLY WE DISCUSS ABOUT WHAT IS CUSTOMER LOYALTY? SHETH & MITTAL have defined customer loyalty as “ a customer’s commitment to a brand , store or supplier based on a strong favourable attitude & manifested in consistent re-patronage .”

Fig 2.1 Strong

Behavior

weak

Strong

ATTITUDE

Weak

The above given definition of customer loyalty includes both behavior & attitude, which can result in four possible situations as shown in above fig. When both attitude & behavior are weak , it means no loyalty exists , weak attitude indicates the customer may not have any liking for the brand & the store. While weak behavior means that the purchase of the brand or visiting the store is sporadic. When the attitude & behavior are strong , it means that the customer has a strong brand or store loyalty. The remaining two situation cases are interesting. When behavior is high but attitude is low, it can be said that the customer has spurious loyalty, i.e the customer may buy the same brand again & again or shop at same store regularly but may not have Institute Of Business Studies & Research Pune (Satish P.Goyal)

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a preferential attitude towards it. Very often in such instance the choice of the brand or store may due to convenient location or the customer loyalty is incidental & not yet well founded, he or she may easily switch brands change stores if given more choice or interesting price deals. Thus the retailers or marketers would have to make efforts at strengthening the customer’s perception of the brand’s or store’s image. In the quadrant with strong attitude & weak behavior, the customer can be said to be having latent loyalty. The customer likes the brand or store but is unable to buy or visit the same probably because the price is too high or he or she lacks accessibility to the brand or the store. Thus in such instances , the retailers or marketers needs to reduce whatsoever barriers & tap the hidden potential of the market. Retailers are beginning to focus their attention on encouraging customers to visit outlets, treating them to attractive promotions, thus adding more value to their best customers & satisfying them in the process. For to the retailers, customer loyalty will indicate that customer are committed to purchasing merchandise & services from them & will resist the activities of competitors attempting to attract their patronage.

The term customer loyalty is used to describe the behavior of repeat customers, as well as those that offer good ratings, reviews, or testimonials. Some customers do a particular company a great service by offering favorable word of mouth publicity regarding a product, telling friends and family, thus adding them to the number of loyal customers. However, customer loyalty includes much more. It is a process, a program, or a group of programs geared toward keeping a client happy so he or she will provide more business. Customer loyalty can be achieved in some cases by offering a quality product with a firm guarantee. Customer loyalty is also achieved through free offers, coupons, low interest rates on financing, high value trade-ins, extended warranties, rebates, and other rewards and incentive programs. The ultimate goal of customer loyalty programs is happy customers who will return to purchase again and persuade

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others to use that company's products or services. This equates to profitability, as well as happy stakeholders. Customer loyalty may be a one-time program or incentive, or an ongoing group of programs to entice consumers. Buy-one-get-one-free programs are very popular, as are purchases that come with rebates or free gifts. Another good incentive for achieving customer loyalty is offering a risk free trial period for a product or service. Also known as brand name loyalty, these types of incentives are meant to ensure that customers will return, not only to buy the same product again and again, but also to try other products or services offered by the company. Excellent customer service is another key element in gaining customer loyalty. If a client has a problem, the company should do whatever it takes to make things right. If a product is faulty, it should be replaced or the customer's money should be refunded. This should be standard procedure for any reputable business, but those who wish to develop customer loyalty on a large-scale basis may also go above and beyond the standard. They may offer even more by way of free gifts or discounts to appease the customer. Some of the common bases for attracting customers are having dedicated employees, variety, unique merchandise & superior customer service. But the challenge for the retailer is to have a loyal database of customer, who will be unwilling to switch their loyalty. The strategies are built after: 1. Developing a clear & specific positioning strategies. 2. Making customer develop an emotional attachment with the retailer’s product offerings.

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Ten Tips to Build Customer Loyalty

The key to a successful business is a steady customer base. After all, successful businesses typically see 80 percent of their business come from 20 percent of their customers. Too many businesses neglect this loyal customer base in pursuit of new customers. However, since the cost to attract new customers is significantly more than to maintain your relationship with existing ones, your efforts toward building customer loyalty will certainly payoff. Here are ten ways to build customer loyalty:

1.

Communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a holiday greeting card, reach out to your steady customers.

2.

Customer Service. Go the extra distance and meet customer needs. Train the staff to do the same. Customers remember being treated well.

3.

Employee Loyalty. Loyalty works from the top down. If you are loyal to your employees, they will feel positively about their jobs and pass that loyalty along to your customers.

4.

Employee Training. Train employees in the manner that you want them to interact with customers. Empower employees to make decisions that benefit the customer.

5.

Customer Incentives. Give customers a reason to return to your business. For instance, because children outgrow shoes quickly, the owner of a children?s shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years.

6.

Product Awareness. Know what your steady patrons purchase and keep these items in stock. Add other products and/or services that accompany or compliment the products that your regular customers buy regularly. And make sure that your staff understands everything they can about your products. Read Know Product Basics for more.

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7.

Reliability. If you say a purchase will arrive on Wednesday, deliver it on Wednesday. Be reliable. If something goes wrong, let customers know immediately and compensate them for their inconvenience.

8.

Be Flexible. Try to solve customer problems or complaints to the best of your ability. Excuses ? such as "That's our policy" ? will lose more customers then setting the store on fire. Read our 60Second Guide to Managing Upset Customers for more information.

9.

People over Technology. The harder it is for a customer to speak to a human being when he or she has a problem, the less likely it is that you will see that customer again.

10.

Know Their ames. Remember the theme song to the television show Cheers? Get to know the names of regular customers or at least recognize their faces.

Building loyalty through advocating certain essential factors:

Customers are constantly changing & their expectations also rising. Consumer behavior in the organised retail industry has altered drastically in the last few years. The retail market is growing not only in terms of nos. but also in terms of stature, image & class. Alongside with Indians becoming world class service. So it becomes vital for retailers to pay attention to every little detail in order to be successful. This can be done by providing a good brand & store experience. For this in general the retailer will have to look into various aspects such as: Timing of the store In store design & layout Welcome the customer receives The ability to browse easily The behavior & product knowledge possessed by sales persons The facility for making payments The attractiveness of the loyalty programs The packaging & The exit. All these above aspects are really very important for the customer to experience delightful shopping experience in the mall. If not handled well, it could result in a disgruntled consumer , who will spread a bad word-of-mouth. On the contrary, if the overall brand & store experience is Institute Of Business Studies & Research Pune (Satish P.Goyal)

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positive & pleasant , the retailer may gain a flow of customer who would likely to patronize the outlet again & again. Further it is also likely that the popularity of the store increases through word of mouth.

How to improve CUSTOMER LOYALTY in organization?

Strong customer service is the bedrock for creating loyal customers. Make it a priority by properly training your staff and continually reinforcing the message that the customer comes first. You can also let your customers know that you value their business by reaching out to them through newsletters, postcards, and e-mail, so they're aware of seasonal sales and special products. Install a strategy for responding to customer inquiries and complaints and create a fair, flexible return policy. Finally, once you've developed a rapport with loyal customers, you can reward them with special discounts on products or services. Loyalties schemes are different for different organizations. Basically loyalty schemes are there for the existing customers or for coming customers for their benefits.

In the study carried out by A .C. IELSO company of BRITISH super market shoppers on the basis of their attitude towards price & promotions, five groups of customers were identified:

BRADED EVERY DAY LOW PRICIG (ELDP) SEEKERS (19%) : These customers were strapped for cash due to limited income, so they shop around to get the best price on their favorite brands, generally seeking ELDP instead of promotions which may require them to alter their buying patterns i.e. they go for bulk purchases. Such customers are low on store loyalty but high on brand loyalty.

LOW- PRICE FIXTURES FERRETS (23%): These customers are young families with strained financial expenses due to growing expenses due to growing expenses like mortgage Institute Of Business Studies & Research Pune (Satish P.Goyal)

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etc. they are very budget conscious ,though dislike bulk purchases, they seek price deals & use coupons .They respond well to store loyalty schemes but tend to switch brands although they may spend a lot on store brands.

PROMOTIO JUKIES(18.4%): These customers will do anything to get the lowest shopping bill – they find a thrill in finding bargain sale & take pride in telling others where such sales take place. They may switch between rational & store brands, having loyalty neither for the brands. Thus retailers & marketers will not earn any long-term gain from such customers. STOCKPILERS (21%): These customers are affluent & are unconcerned about the size of their bill. They select stores based on the location , product assortment. & product quality rather than price or promotions. They may take advantage of the promotions on their favorite brands, happily buying in bulk to stockpile & save money, although they may not switch brands. They can easily be the retailers delight since they may be loyal to both brands & stores. PROMOTIOALLY OBLIVIOUS (18.3%): This group is basically driven by habit, settled on brands & stores & not interested in exploring better deals. They may occasionally indulge in soft deals such as free items or coupons but dislike aggressive promotions & deals. So they reliable to a certain extent.

Institute Of Business Studies & Research Pune (Satish P.Goyal)

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FACTORS ESSETIAL FOR BUILDIG STORE LOYALTY

A. Make shopping a delightful experience.

B. offer spice of variety under a single roof.

E E. customer complaint handling & +ve attitude S S E N T I A L S F. build customer loyalty through adopting multi channel retailing. F O R

C. understand customer needs & provide a mutually beneficial customer service.

D. provide physical appeal Leading to store brand loyalty

B U I L D I N G L O Y A L T Y

G. adopt innovative or unique concept to please the customer.

Fig 2.2 FACTOR FOR BUILDING LOYALTY Institute Of Business Studies & Research Pune (Satish P.Goyal)

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THIS IS ALL ABOUT THE CUSTOMER LOYALTY IN RETAIL SECTOR.

In CETRAL for loyalty scheme there is a card named “FUTURE CARD”. This card we called it as a credit card which is powered by ICICI CREDIT card. The customer can collect it from any ICICI bank branch or from any PANTALOON’S outlets. Its available all over. This future card can be applicable in any store or mall comes under FUTURE GROUP. Anyone whose monthly income is above min.5000 can be a part of this loyalty card.

Aaj se

Kharchey ban gaye

kamai ! This is the slogan of the future card. Apart from this CENTRAL’s goes with various loyalty services such as FREE redeem of parking coupons, free alteration to all customers, sometimes free home delivery to customers etc. this is the loyalty scheme run by CENTRAL.

The main benefit beyond this future card is you can use this card in various outlets run by FUTURE GROUP! Apart from this as we talk about other player in retail sector SHOPPERS having FIRST CITIZEN card. INDIA BULL MEGA STORE having PPC(pyramid power club) which goes with loyalty card.

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Before FUTURE CARD there were CENTRAL CARD which is only applicable for CENTRAL’S purpose. It is a loyalty card for CENTRAL’S customers. Following are some details about CENTRAL’s card. Exclusive Benefits

•

Get 0% EMI option for purchases more than Rs. 3,000/- at Central.

•

Get free gift voucher of Central worth Rs. 250/- with the offer booklet.

•

Earn 4 reward points for every Rs.100/- spent at Central. Also earn 1 reward point for every Rs. 200/- spent at merchant establishments other than Central.

•

Priority Payment Counters at Central for cardholder to save valuable time.

•

Cardholder gets priority to view the product launches and seasonal collections at Central.

•

Upto 10% discount to all cardholders restaurants within Central, on bills of Rs. 250/- and above.

•

Get 12 free coffee vouchers on approval of card.

•

The Cardholder will get access to select airport lounges across the country with complimentary snacks and non-alcoholic beverages.

•

All the benefits of Solid Gold Card.

These were all the benefits provides by CENTRAL’S card.

After that PANTALOONS introduces FUTURE CARD for all its stores. Future card is powered by ICICI BANK (CREDIT CARDS). Future card is like a retail credit card. Lots of offers & gifts are there on the FUTURE CARD.

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BRADS BIG BAZAAR

GIFTS & OFFERS 1st 3 months 15% off on fashion 1st 3 months 10% off on general Merchandize.

FOOD BAZAAR

1 KG Food bazaar sugar free 1st 3 months 3% off on foods.

Pantaloons

Rs.100 off on apparel purchase of Rs. 500 or get a T-shirt worth Rs. 299 on apparel purchase of Rs. 1000

Central

Rs. 50 off on Rs.1000 & above purchase. For 1st 3 months Rs. 250 off on Rs. 2500 & above purchase.

BRAND FACTORY

Rs. 50 off on Rs. 1000 & above purchase. For 1st 3 months Rs. 250 off on Rs.2500 & above purchase.

DEPOT Shoe Mport/genm Planet sports

F123/CO TOP 10 Home Town

STAR & SITARA eZONE Futurebazaar.com

Bombay blue

Rs .50 book free from exclusive depot collection per month. Shoe polish/socks FREE on Rs. 100 per month. Airtel live VAS cards ( worth Rs. 500 content FREE) Rs. 249 Spalding/Converse cap FREE on purchase of Rs.111 & above per month. 1 video game FREE per month with load of min. Rs. 50 Rs. 200 off on Rs. 1000 & above purchase. Gift worth Rs.250 for every Rs. 1000 & above spent per month. Get gift worth 7.5% of purchase above Rs. 10,000 at HOME TOWN. 1 time foot massage FREE per month. A head phone worth Rs. 199 with purchase through FUTURE CARD at eZONE. A Future card & futurebazaar.com MUG worth Rs.50 on 1st purchase every month. 10%-15% off on total bill amount.

COPPER CHIMNEY

10%-15% off on total bill amount

YATRA

10%-15% off on total bill amount

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PENNE

10%-15% off on total bill amount

SPAGHETTI

10%-15% off on total bill amount

The Apollo Clinic

HP Lilliput

VLCC

For 1st 3 months 50% discount on a range of special FUTURE CARD & Apollo health checkups. 15% off on health check up. 20% off on diagnostics checkups. Get 2.5% surcharge waiver on fuel purchases at select HPCL outlets. 10% discount for Future card holders on all Lilliput apparels & accessories. 15% discount on all Lilliput footwear. Inaugural offer: 1 face / body firming session plus counseling worth Rs. 2000 FREE. Regular offer: slimming/beauty/hair package 30% flat discount. Regular offer: beauty services -30% flat discount. Regular offer: 15% off on RBS(salon services)

Travel Port

15% off on Domestic packages 10% off on Weekend breaks. 12.5% off on INTERNATIONAL packages.

Table 2.1 list of brands in FUTURE CARD

These are all details about FUTURE CARD. These are all offers which are provided by FUTURE CARD. This is first time in INDIA that any company providing such type of LOYALTY CARD which any 1 can use in number of brands. This type of card really change the mind of customer towards the LOYALTY.

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2.2 REVIEW OF PREVIOUS RESEARCH & FIDIG

FOLLOWING RESEARCH HAS BEEN DONE BY :

Grahame R. Dowling Australian Graduate School of Management University of New South Wales & Mark Uncles School of Marketing University of New South Wales Sydney 2052 Australia. Abstract In a bid to strengthen relationships with their customers marketers are showing renewed interest in customer loyalty programs. But how effective are these programs? Surprisingly—given their current popularity—the evidence is equivocal. Research on “normal” patterns of loyalty in established competitive markets suggests that in many cases it is hard to obtain exceptional advantages through the launch of a loyalty program. Also, competitive forces tend quickly to erode any differential gains. Before introducing a loyalty program, managers would be wise to fully cost it (including development, marketing and on-going costs), and compare these costs with a realistic assessment of the benefits of the program—an assessment that goes beyond the rhetoric of relationship marketing. Here we argue that to stand the best chance of success under tough market conditions, a loyalty program must enhance the overall value-proposition of the product or service. This in turn will help to motivate buyers to make the next purchase of a product, and therefore support other aspects of the firm’s offensive and defensive marketing strategy.

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The Claimed Benefits of Loyalty Programs Advocates contend that loyalty programs are more profitable to a firm because: (a) The costs of serving customers are less, (b) Loyal customers are less price sensitive, (c) They spend more with the company, and (d) They pass on positive recommendations about their favorite brands/suppliers.

 J.. SHETH & B. MITTAL IN “CUSTOMER BEHAVIOUR” Thomson South Western learning,2003 give definition of CUSTOMER LOYALTY as given below: SHETH & MITTAL have defined customer loyalty as “ a customer’s commitment to a brand , store or supplier based on a strong favourable attitude & manifested in consistent re-patronage .”  REY OLDS,DARDE & MARTI , 1975 come with the new study that “a sample of older , lower income group & less educated women were willing to shop in the same store & avoid the risk of shopping in the new stores.”  ARIEH GOLDMA ,(1977-78) in his study said that, “store loyal consumer to be engaged in less repurchase search , know about fewer stores & less likely to shop even in stores known to them.” He also found that “the shopping behavior or style to more likely exist among low income consumers because they were constrained by their inability to shop much.”  J.F. DASH , L.G. SCHIFFMA & CO RAD BERE SO , 1976 they came with the study that “store loyal consumers found more risk in shopping & hence felt being store loyal would reduce the risk of shopping in unknown stores.”  YA KELOVICH , SKELLY AD WHITE , 1982 they found that “more no. of single parent household also limited the amount of time available for shopping & the additional cost of being store loyal was worth the time saved.”

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 Rosalind McMullan, Audrey Gilmore Abstract: Purpose – The purpose of this paper is to focus on establishing individuals' levels of loyalty and what sustains and develops their customer loyalty. This paper recognizes the importance customer loyalty has for many competitive organizations and industries. However there has been less focus on what value customer’s attach to customer loyalty in this context. Design/methodology/approach – A two-stage study is presented, establishing individual levels of loyalty and then identifying the role of mediating effects in loyalty development. The first stage involved a postal survey, including a 28-item scale, designed to measure customer loyalty, and its sustainers and vulnerabilities (mediating effects). The second stage, and the main focus of this paper, uses scores from the loyalty scale (high, medium and low levels of loyalty) to examine what sustains and develops loyalty amongst differing levels of development. Findings – The findings highlight the importance of identifying, understanding and managing mediating effects, in the context of loyalty development. The research emphasizes the importance of a differentiated approach to developing and managing customer loyalty by appropriately rewarding customers at different levels. The findings highlight the need to acknowledge the importance of reciprocity in terms of which aspects of service customers value. Originality/value – The main contribution of this paper is that it uniquely identifies an approach to understanding the sustaining and vulnerability effects mediating customer loyalty development going beyond previous categorization attempts. Understanding this approach should lead to effective customer loyalty management and greater awareness of managing recognition, reciprocity and rewards.

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About Future Group Future Group is one of the country’s leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The group’s flagship company, Pantaloon Retail (India) Limited operates over 6 million square feet through 450 stores in 45 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generali India, Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the group’s financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The group’s joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer Staples Inc, UK-based Lee Cooper and Indiabased Talwalkar’s, Blue Foods and Liberty Shoes. Future Group’s vision is to, “Deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core value and its corporate credo is - Rewrite rules, Retain values.

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Pantaloon Retail (India) Limited Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people.

The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, ALL, Top 10, mBazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com.

A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment.

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ITERATIOAL & ATIOAL AWARDS Pantaloon Retail was recently awarded as: 1.

International Retailer of the Year 2007 by the

US-based ational Retail Federation ( RF) and 2. The Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. 3. Best of the BEST RETAILER 2006 & 2007, by ASIA PACIFIC TOP 500, SI GAPORE. 4. Business Leadership Award in retail by DTV, 5. Readers Digest Trusted Brands Platinum Award. 6. C BC AWAZ most preferred Large Food & grocery Super market. 7. Hewitt

international

BEST

15

EMPLOYER

in

I DIA.

Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

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Now we are going to discuss about all LINE OF BUSINESS come under PANTALOON’s RETAIL. Table 3.1 line of business LOB

NAME

SIZE(PER SQR.FT)

FORMAT TYPE

FASHION

FOOD

PANTALOONS CENTRAL BIG BAZAR FASHION STATION FOOD BAZAAR

25,000 1,25000 50,000 15000 10000

LIFESTYLE LIFESTYLE VALUE VALUE LIFESTYLE & VALUE

GM, BOOKS & MUSIC

BIG BAZAAR DEPOT

50,000 1,000 TO 6000

VALUE LIFESTYLE & VALUE

HEALTH ,BEAUTY & WELL NESS

STAR & SITARA (BEAUTY PRODUCTS) STAR & SITARA (SALON) HEALTH VILLAGE

1,000 TO 2,000

VALUE

2,500

VALUE

25000

LIFESTYLE & VALUE

GEN M M PORT M BAZAAR

500 TO 1,000 1500 TO 2000 250 TO 500

LIFESTYLE LIFESTYLE VALUE

COMMUNICATION

SUBSIDIARY – HOME SOLUTIO RETAIL(I) LTD. Table 3.2 LOB ELECTRONIC GOODS & CONSUMER APPLIANCES

NAME

SIZE(PER.SQR.FT)

FORMAT TYPE

E-ZONE ELECTRONIC BAZAAR

12,500 3,000 TO 6,000

LIFESTYLE VALUE

COLLECTION I FURNITURE BAZAAR

10,000 3,000-6000

LIFESTYLE VALUE

HOME TOWN

1,25,000

LIFESTYLE & VALUE

FURNITURE,FURNISHINGS & ACCENTS

HOME IMPROVEMENT

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JOIT VETURES: Table 3.3 LOB RESTAURANT ,LEISURE & ENTERTAINMENT

NAME

SIZE(PER.SQR.FT)

BLUE FOODS(50:50)

FINE DINING RESTAURANT

GALAXY ENETRTAINMENT BOWLING COMPANY F123-ARCADE & GAMES SPORTS BAR CHAMOSA

FORMAT

(15.73%)STAKE 30,000 7000-20,000

LIFESTYLE LIFESTYLE

2,500 100

LIFESTYLE VALUE

6,000-15,000

VALUE

FOOT WEAR RETAILING FOOTMART RETAIL(I)LTD LIBERTY SHOES (51:49) SHOE FACTORY FASHION & SPORTS WEAR KIDS WEAR RETAILING

PLANET RETAIL(49:51)

GJ FUTURE FASHIONS LTD.(50:50) GINI & JONY

LIFE STYLE

1,500-5,000

LIFESTYLE

HEALTH ,BEAUTY & WELLNESS MANIPAL HEALTH SYSTEMS MANIPAL CURE & CARE (50:50) TAWALKAR’S(50:50) AIRPORT(DUTY FREE SHOPPING)

LIFESTYLE & VALUE

ALPHA AIRPORTS ALPHA FUTURE(50:50)

INSURANCE ASSICURAZIONI GENERALI (ITALY) FUTURE GENERALI(58:16:26) REITS & MALL MGMT (50:50) J V

CAPIA LAND RETAIL.LTD (SINGAPORE)

Source: PANTALOON PRESS

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CETRAL’S

Launched in May'04 at Bangalore, Central is a showcase, seamless mall and the first of its kind in India. The thought behind this pioneering concept was to give customers an unobstructed and a pure shopping experience and to ensure the best brands in the Indian market are made available to the discerning Indian customer.

Central offers everything for the urban aspiration shopper to shop, eat and celebrate. Located in the heart of the city, Central believes its customers should not have to travel long distances to reach us; instead we must be present where customers frequently visit.

In a short span of its existence Central has revolutionized and redefined the shopping experience in India. At Central, customers no longer only shop, they get SHOP-ATAINED!

Central strategy

Fig 3.1 central strategy Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Applying the Retailing concept in Relation to Central

1.

Customer Orientation – central determine the attribute and needs of it's customers.

2.

Coordinated Effort – central integrates all plan and activities to maximize efficiency. All the employees make their best service to customer.

3.

Value Driven – central offer good value to customers whether it to be discounter or up sale this means having the price appropriate for the level of product and customer service

4.

Goal Orientation - central set goals and then uses a strategy to attain them. central set goal to achieve the one hundred crore target in 2008.

To relate the marketing concept to retailing, with an emphasis on the total retail experience customer service, and relationship retailing. The marketing concept (known as retailing concept when applied to retail situations) should be understood and used by all the retailers. The total retail experience includes all the elements in retail offering that encourage consumers during their contact with retailer. Many elements such as number of sale people, displays price. The brands carried, and inventory in hand are controllable by a retailer, others like the adequacy of on-street parking, the speed of on line shopping and sale taxes are not. If some part of the total retail experience is unsatisfactory, consumers may not buy a given good or service. The total retail experience of CE
TRAL is very good. There is goods systematic display of goods. Synapses indicate price of the goods. Smart sales people, they always maintain eye contact with customer. There are good branded item's are available in CENTRAL store.

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Strategic Planning in Retailing

A retail strategy is overall plan that guide a firm. It consists of situation analysis objectives identification of customer market, broad strategy specific activities, control and Feedback.

Situation Analysis

Organisational mission Ownership Management alternatives Goods/Services Category Sales Profit Satisfaction of Publics Image

Objectives

Mass Marketing Concentrated Marketing Differentiated Marketing

Feedback

Identification

Overall Strategy

Controllable Variables Uncontrollable Variables Daily and Short term Operations

Specific activities

Responses of environment Evaluation

Control

Adjustment

Element of Retail Strategy

Fig 3.2 retail strategy

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Objectives are the retailer's long term and short term goal. A firm may pursue one or more of their objectives Sales (growth, Stability and market share) Profit (level, return on investment, and efficiency) Satisfaction of public (Stockholders, consumers and others) and image pinioning (customer and industry perception)

Next consumer characteristics and needs are determined and a retailer elects a target market. A firm can sell to a broad spectrum of consumers (Mass Marketing) Zero in an one consumer group (concentrated Marketing) or aim at two or more distinct group s of consumers (differentiated marketing) with repeated retailing approaches for each.

A broad strategy in then formed. It involve controllable variables (aspects of business a firm can directly affect) Uncontrollable variable (factors of a firm cannot control and to which it must adapt)

Controllable Variables

Uncontrollable Variables

1.

Store Location

1. Consumers

2.

Managing business

2. Competition

3.

Merchandise management

3. Technology

and pricing 4.

Communicating with the

4. Economic Condition

Customer

5. Seasonality

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Central Mall

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Controllable Variables of “Pune central” Store Location 1.

It Cover the customer of shivajinagar, aundh, & north-western part of Pune, which has emerged as an IT hub.

2.

Central provides a complete shopping service for a major part of consumer shopping. Central also include for certain type of home wares & other thing.

Managing of Business – The record area of strategic planning managing a business into two major element human resources. The Retail Management - Management look like promotion, display are very good at central there are special promo area for different event. Special price policy like Buy 2 gets one Free. At the end of week central give special offer in merchandise.

Merchandise Management and Pricing: Product Mix – Central

keep all the category of merchandise. Different choices of

merchandise are in the More is according to their classification. Price - Central charge medium& high price but offer wide range of deep assortment. With regard to pricing central choose several pricing techniques (such as leading following, cost plus/demand oriented and so on) then decide what range of price is set, consistent with the More is image and quality of goods and service offered.

Uncontrollable Variables : Consumers - Basically central target upper medium& high class people According to this central learns about its target market and from a strategy consistent with consumer trends and Institute Of Business Studies & Research Pune (Satish P.Goyal)

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desire. Selecting a target market is within a retailer's control but the firm cannot sell goods or services that are beyond the price range of its customers not wanted, or not displayed or advertised I n proper manner.

Competition - Competition in retail sector increasing in India. Retail industry even organized retail is fragmented industry in India. Every region has local competitors (Margin Free in Kerala, Subiksha ,Nilgiri in Chennai) Big Bazaar , Reliance and Spencer are close rivals of More make a good presence in Maharashtra while R.P.G. make good presence in south India. Government has gave the approval F.D.I. in retail sector so it will increase competition n retail rector wall Mart J.C Penny, Mark & Spencer could inter in Indian Market. Technology - In today's world of retailing technology is advance rapidly. Computer system is available for inventory control and check out. Operation. Bar coding has revolutionized merchandise handling and inventory control. Economic Conditions - Economic condition of India is more better than one decade before. Per capita income as increase by 5.2% in this fiscal year. G.D.P. also increase people have more disposal income. Unemployment Interest rate, inflation tax levels and the annual gross Domestic product (GDP) are Just some economic factors with which a retailer copes and which it cannot change In outlining the controllable to consider and adapt to forecast about international, national state and local economics.

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WORK DOE  Understanding the Retail operations. I did my summer project from Central 2. In Central there are 5 floors and each floor is divided into each segment . Ground floor is having all international brands like Lacoste , Tommy Hilfiger , Nautica and many more . First floor is having ladies and kids section and Shoes section . Second floor is divided into 2 sections in which 1 section is for all Casuals in which we have brands like Lee, Levi’s, Lee Cooper etc. and the another section is for Planet Sports in which all main brands are existing like Adidas , Nike , Puma , Converse etc. Third Floor is for all Men’s formal dressings like Arrow, Excalibur, Peter England, Urbana,Van Hausen, Wills lifestyle etc. and we also have ethnic wears also in which we have Akkriti and Manyawar. Fourth Floor is for Casual’s wearing and Home Furnishing also in casuals we have brands like Provogue, Status quo, M Square, Proline and many more brands. Fifth Floor is divided into 2 segments. 1 is for Food court named as “Spoon the food court” and another section is for Food bazaar in which you can get all the FMCG goods . These are the segments and floors in which central 2 is divided. I did my project basically for 3rd floor which is known for FORMAL’S SECTION. In each floor there is the Floor Manager, ADM(asst. departmental manager), Team leader, CSA’s. all these people working for a floor.

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After my 3 months project in CENTRAL I can say there are 6 PARAMETRES OF RETAIL OPERATIONS. These are the parameters which is to be followed and maintained by every organization . 1 STOCK. 2 STAFF. 3 CUSTOMER& CUSTOMER SERVICE. 4 SALES. 5 VISUAL MARCHE
DISI
G. 6 MARKETI
G & PROMOTIO
AL EVE
TS.

STOCK Stock is very essential part of operation. We should know about the stock presence on the floor. On which brand we have a full option & cut option .so we have to make option plan of the floor every Monday. We makes stock requirement also of those product which is fast moving & on demand items. A manager should also aware about each and every brand requirement and he has to make sure about the refilling and replenishment of the stock . The stock has to be refilled accordingly. Sometimes some of the items are not moving in brands then we send it back to the vendors or sometimes we send it to Brand Factory.

Profit Maximization- In Retail industry at the end of the day the one thing which matters is only one thing that is profit . In central for earning profit we daily distributed the targets for each and every brands and these brands have to perform better for the achievement of the their targets . They also got there brands targets on monthly , quarterly and yearly bases . For the achievement they do hard work and if they succeed in achieving their targets then they get incentives according to their contribution. Institute Of Business Studies & Research Pune (Satish P.Goyal)

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Staff In Operations Staff plays a important role in achieving the targets . Sales executives are the persons which are directly interacted to the customer and they know what the customer actually want. Customer can’t meets to the Managers directly. So it’s necessary that staff should be well groomed & interactive to the customer. We daily check the grooming of staff just like hair cut, clean clothes, etc & their eye contact, body language, communication skill etc. We should train the staff time to time like: •

How to communicate with customers?

•

How to increase the selling?

•

How to make the customer to purchase more?

Customer & customer service Customer is most important thing in retail .

In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity. To better understand the rationale behind this theory and to face the challenge, we need to break down shoppers into five main types:

•

Loyal Customers: They represent no more than 20% of our customer base, but make up more than 50% of our sales.

•

Discount Customers: They shop our stores frequently, but make their decisions based on the size of our markdowns.

•

Impulse Customers: They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.

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•

eed-Based Customers: They have a specific intention to buy a particular type of item.

•

Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community.

If we are serious about growing our business, we need to focus our effort on the loyal customers, and merchandise our store to leverage the Impulse shoppers. The other three types of customers do represent a segment of our business, but they can also cause us to misdirect our resources if we put too much emphasis on them. We can delight our customer if we give them better service. In Central’s we give some following service to our customers :

•

Discounts.

•

Gift wrapping.

•

Some time we do home delivery also

•

Exchange in 7 days.

•

Free alterations.

VISUAL MERCHADISE- Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new life into his store products.

Visual merchandising is acted as a silent communicator to the customer. The main function of V.M is to aware about what merchandise is available in store.

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Visual merchandising includes window displays, signage’s, interior displays, cosmetic promotions and any other special sales promotions taking place.

V.M also helps to customers as –




Educating the customers about the product/service in an effective and creative way.




Establishing a creative medium to present merchandise in 3D environment, thereby enabling long lasting impact and recall value.




Setting the company apart in an exclusive position.




Establishing linkage between fashion, product design and marketing by keeping the product in prime focus.




Combining the creative, technical and operational aspects of a product and the business.




Drawing the attention of the customer to enable him to take purchase decision within shortest possible time, and thus augmenting the selling process.

Sales How will you survive and grow in profitability in today's very competitive marketplace?

Consider these facts. 1. Your margins are already stretched. 2. You're stretching your advertising dollars as far as they'll go. 3. You don't have the brand or product loyalty that you once had. Then how will you compete? Institute Of Business Studies & Research Pune (Satish P.Goyal)

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It's simple! You'll compete by maximizing your greatest source of productivity -- your people! Look at these realities. 1. Few companies budget sufficient dollars to professionally train their sales And customer contact people. 2. Most retail salespeople are poorly trained in professional selling skills. 3. Most training is product training. 4. Old-fashioned sales techniques are outmoded and contribute to turnover and poor job performance. Modern day, value-focused selling can usually increase a salesperson's effectiveness Around 15% to 25%. As a Manager we have to look up following thing, so that we know about our actual selling & achievement of our target:•

Walk ins- no. of customers is coming in our mall?

•

o. of bills- how many customers are purchasing out of them?

•

Average bill value- total sale/no. of bill

•

Floor contribution towards mall- for ex. Floor 3 contributes 15 to17 % of mall selling.

•

Specific brands contribution towards mall- Van hausen, Arrow etc. is the brands who are contributing higher in floor 3.

•

Sq. feet return of the brand- each brand has to provide a specific area in sq. feet Sales in month /sq. feet area =sq feet return in month/ no. of days.

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Managing Promotions, Events, Alliances and partnership


In order to ensure the success of an event or promotion, it is necessary that the store where action is to take place be geared for the same.




Managing alliances and partnership with local partners is also an important part of store operations.




Display of merchandise and point of purchase material has to be managed at the store level.




An integral part of managing a super market is an understanding of fresh produce and its storage needs and replacing the product when needed.




Control of perishables and sanitations are two important aspects of the operations of the store.

During my project in central they organized event named as “THE GREAT FRENCH AFFAIR” The main purpose of this event was to get familiar our customers with the French culture. By celebrating this festival they tried to experience the French culture.

Marketing promotion& events It can be defined as strategic and tactical planning program and the attendant execution exercises for a brand using the full mix of communication. (Short term) Consumer promotion can do 1. Increase sales 2. Build Market share 3. Generate awareness and trial of new brand 4. Stimulate retrial 5. Encourage repeat purchases 6. Generate purchase continuity 7. Provide alternate usage suggestions. 8. Stimulate trade-up to larger sizes 9. Temporary adjust pricing 10. Defense against competitive activity 11. Excite the sales force.

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I was the part of 3 events in PUE CETRAL 1.

The Great French affair.

2.

Youth buzz.

3. EOSS (end of season sale). The Great French Affair 10th May - 1st June 2008. Come fall in Love! With the spirit of France... Experience the glamour of Eiffel Tower at Central


Wine Tasting: Come get a heady taste of the finest French wines on all weekends.




French Feast: Watch mouth watering French delicacies being whipped up by a renowned chef on all weekends.




Le Pastry: Delectable French pastries will have you begging for more.




Paris Runway: Watch the leading models sizzle on the ramp in designer French collections on May 17th & 24th 2008.




French Makeover: Get a stunning 'Ooh la la' French Style makeover.




La Troupe: Sizzle, Shake and Cheer with French Cancan dances on May 10th 2008.

•

Dance Classes: Learn charming French moves from leading dancers on all weekends

•

Art De Portrait : Get your portrait sketched by a true blue French

Youth buzz :  Double your shopping.  Double your eat  Double celebrate Youth buzz offering you no. of discounts & offers like •

Denim exchange mela.

•

Magic weekend

•

Offering apparels like future C.E.O., Saturday night fever. Overall response from the customer was good.

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EOSS: (E D OF SEASO SALE) THE BIGGEST DISCOU T CHALLE GE BY CE TRAL’S HAPPI ESS SALE UPTO 50% OFF* Basically EOSS means stock clearance sale. During this period there were huge no. of discounts are over there. During this sale period huge crowd was there, because of discounts on each and every item. Main thing in this period is stock. Before 10 days of the sale period we send requirement of the stock to each and every company for this period. Main work during this season is to manage all thing including signage’s, proper updates of offers. There were special offers on 15th ,16th,17th AUGUST because of INDEPENDENCE DAY, RAKSHA BANDHAN.

 How can you better present your store and products to the buying public? Start by doing a basic evaluation of your store. Front Signage: • Is your sign up-to-date or is it old and dated-looking? • Is your sign clearly visible and in good repair; no holes, cracks or burned out bulbs? • Does your sign tell customers what type of products you sell at a glance? • Do you have adequate signage for your building as it relates to street visibility? • Does your signage make a strong statement about your company? Interior Signage: • Is your product signage uniform in design? • Does your product signage describe the high points or features of the product?

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• Is signage up to date? • Is directional signage easy to see and understand at a glance? • Do you use signage as part of your visual merchandising? Floor Coverings: • Is your floor clean and fresh looking? • Is your carpet clean, lying well, and vacuumed? • Is your entry clean and in good repair? • Are you using multiple styles of floor coverings to direct traffic flow and distinguish between departments? Lighting: • Are all of your bulbs operating and in good condition? • If using fluorescent bulbs are all bulbs the color temperature? • Is your appliance area bright in contrast to the more subdued electronics area? • Are you using Track or spotlights to create focal points? • Good white light 3500 to 4100K should be used to light an appliance section. Housekeeping: • Is your store clean? Are floors waxed and buffed, carpet shampooed and vacuumed? • Is your product neat and tidy? • Are your aisles free of clutter and boxes? • Is your exposed office area neat with continuity? Store Display Fixtures: • Do your store fixtures match or are they a conglomeration of manufacturer's displays? • Are your fixtures broken or in disrepair? • Are your fixtures being used for the products for which they were intended?

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• Does your store use store fixturing? (Appliance fixtures, built-in fixtures, platforms, gondolas, etc.) Apart from these there are some work which were performed by me as a “Management Trainee”. 1. Daily distributing sales report to each and every CSA including target & last night’s sale. 2. Daily check the global counting book of the stock. 3. Keep details of all the inwards & outwards on the floor. 4. Check whether the staging & color blogging is perfect or not. 5. At the weekends (sat. & sun) help cashiers for packing & sometimes for billing also. 6. On the Mondays collect the details of fast moving merchandize from each and every brand & their requirement of stocks also. 7. During the GREAT FRENCH AFFAIR I had perform the job to tell every customer what is the French festival is all about? 8. After this festivals, I also work for “Customer Feedback Counter”. Where I had to request each and every customer to feel the feedback form. From which I can get more knowledge of customer behavior, there expectation from the mall. 9. During the sale period (eoss) lots of work there which I performed.(staging, color blogging, stock inwards, placing of gondola’s, rearranging the section because of a huge stock in each section. 10. During EOSS sometimes I help for alteration also. 11. On the billing counters it really tough to handle the customers over there, for that purpose I was always there to solve all the problem.

This is all about my project profile during my internship.

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DATA AALYSIS

Research 1: Objective: To collect whole detail about the awareness of customers towards FUTURE CARD. Sample size: 200 customers How often do you buy apparels (clothes)?

OPTIONS

RESPONSE

Once a year

25

Once a month

35

Twice a month

65

Thrice a month

75

TOTAL

200

How often do you buy apparels (clothes)?

16% 34%

Once a year Once a month 20%

Twice a month Thrice a month

30%

Fig 3.3 often buy apparels

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2. From where do you buy your apparels (clothes)? Options

Response

Pyramid

60

Central

80

Shoppers

50

Mega mart

10

Total

200

5% 30%

25%

pyramid Central’s shoppers Mega mart

40%

Fig 3.4 where do u shop?

3. Age of the customer ? Below 18 yrs Between 18 to 25 yrs Between 25 to 35 yrs Between 35 to 45 yrs Above 45 yrs

45 63 47 35 10

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Fig 3.5 age of customer

4. Gender of the customer?

a. Male b. Female

Fig 3.6 gender 5. Income range of the customer (per month)? Options >15000 20000-25000 25000-30000 30000 above

response 12 62 56 70

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Fig 3.7 income range

6.

How much do you normally spend on apparels (clothes) bought from shopping malls in a single shopping ? Less than 500 Between 500 to 1000 Between 1000 to 2000 Between 2000 to 5000 More than 5000 Not Applicable

32 43 47 43 15 20

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NORMALLY SPEND ON SHOPPING LESS THAN 500

10%

BETWEEN 5001000

16%

8%

BETWEEN 10002000 21%

22%

BETWEEN 20005000 MORE THAN 5000

23% NOT APPLICABLE

Fig 3.8 spend on shopping

7. Customers aware of “FUTURE CARD” Loyalty Programme in CETRAL’S ? OPTIONS

RESPONSE

Yes

60

No

140

TOTAL

200

CUSTOMER AWARE OF FUTURE CARD 30% YES NO 70%

Fig 3.9

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8. Reasons for not being aware of FUTURE GROUP? OPTIONS

RESPONSE

Don’t have any idea

70

Not inform by any CSA

60

Don’t have any display

70

Total

200

FIG 3.10 RESOS

9. Do you have FUTURE CARD?

OPTIONS

RESPONSE

Yes

50

No

150

TOTAL

200

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FIG 3.11 10. Are you interested to be a part of FUTURE CARD?

OPTIONS

RESPONSE

Yes

150

No

50

TOTAL

200

FIG 3.12 THIS RESEARCH IS BASICALLY FOR THE LOYALTY SCHEMES.

This questionnaire is totally about loyalty card in CENTRAL’S

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Second research has been done to collect data about the comparative analysis among the competitors.

Research 2 : Objective : To collect data for COMPARATIVE AALYSIS with respect to other stores in PUE.

Sample size: 200 customers.

PARAMETERS

PUE CETRAL

SHOPPERS

PIRAMYD

WESTSIDE

MEGA MART

STOP

Price

68

29

34

23

46

Brands

79

34

45

17

25

Product Range

67

23

42

34

34

Trial Rooms

87

17

23

43

30

Offers

78

21

72

12

17

Customer

85

34

46

23

12

Parking

98

23

33

32

14

Store Layout

103

22

36

29

10

Events

110

32

34

18

06

Ambience

98

12

54

23

13

Food court

167

08

10

10

05

Loyalty scheme

33

75

80

12

00

Available

Service

Table no. 3.4

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Q.1) Which store you find the price best?

FIG 3.13 I
TERPRETATIO
& SUGGESTIO
: From the above chart we can say that on the basis of price as a parameter 34% people likes to shop in CENTRAL’s. The main reason behind is the in house brands of PANTALOONS which are really very affordable to everyone who comes for shopping & wide range of options & sufficient space for each and every brand & good service. As compare to price range there is close competition. So CENTRAL have to keep focus on each & every brands.

Q.2) Which store you find that there is a good range of brands available?

FIG 3.14 I
TERPRETATIO
& SUGGESTIO
: From the above chart we can say that on the basis of brands available 39% people prefer to shop in CENTRAL’s. The reason is availability of various brands as Institute Of Business Studies & Research Pune (Satish P.Goyal)

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well as various in-house brands. As compare to other competitors CENTRAL’S have more space for each and every brand, wide range of options.

Q.3) Which store has a good product range available?

FIG 3.15 I
TERPRETATIO
& SUGGESTIO
: From the above chart we can say that on the basis of product range 33% people prefer to go with CENTRAL’S. It has a good range of products as various in-house brands are also available with economical prices. They can still improve upon by getting various other brands and introducing various in-house brands. Q.4) Which store has a good trial room facility?

FIG 3.16 I
TERPRETATIO
& SUGGESTIO
: After interpreting the chart we come to know that 43% people are satisfied with the trial rooms at CENTRAL’S as compared to other stores in Pune. So

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CENTRAL’S should maintain the service of trial room in the same manner. Another reason is enough space in each trial room, which made by latest technology. Q.5) Which store has got good promotional offers?

FIG 3.17 I
TERPRETATIO
& SUGGESTIO
: After interpreting the chart we come to know that 39% people feel the offers in CENTRAL’S are really good & attractive. So customers are satisfied with the offers that CENTRAL’S launches at regular intervals.

Q.6) Which store provides the best service?

FIG 3.18

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I
TERPRETATIO
& SUGGESTIO
: Taking into consideration the above statistics we can see that 42% people feel that the service (free alteration, exchange policy, staff suggestions, redeem parking coupon etc.) given by CENTRAL’S are much better as compared to other stores in Pune. So they should keep enhancing the loyalty program and should keep in mind that customer is the king so we need to provide best services to keep the customers loyal.

Q.7) Which store has a good parking facility?

FIG 3.19 I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that 49% people find that parking is not a problem at CENTRAL’S. As compare to other stores in PUNE, only CENTRAL’s has its own space for parking other than others , because they are parking on the sharing basis. Its parking is in basement that why customers get more space for parking. While paying the shopping bill they can redeem the parking coupon. There is the lift facility for customers to the basement. In central’s they provide valet parking also which is not there in other stores in PUNE.

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Q.8) Which store has a good store layout?

FIG 3.20 I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that 54% people feel that it is comfortable to move around in the store. The items in the store are visible and it’s convenient to shop. Each section gives enough space that customers can easily go and select their favourite item. In CENTRAL mall each section is divided in to various section. There is food court also which also encourage customer to shop inside the mall.

Q.9) Which store has organize good events?

FIG 3.21 I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that 55% people feel that events organised in CENTRAL’S is better than other stores in PUNE. During my internship we organised various events such as “YOUTH BUZZ” in this we organise SALSA DANCE competition, Institute Of Business Studies & Research Pune (Satish P.Goyal)

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“DENIM EXCHANGE MELA”, “electronic AUCTIONS” etc. In all these events there is huge response of customers because of that during those days sale of the mall also increases.

Q.10) Which store has good ambience?

FIG 3.22 I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that 49% people feel that ambience in CENTRAL’S is better than other stores in PUNE. Basically CENTRAL’s pays more attention towards the customer’s requirement what they want? What are their expectations towards the mall.

Q.11) Which store has good food court?

FIG 3.23

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I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that 83% people feel that events organised in CENTRAL’S is better than other stores in PUNE. Because only CENTRAL’S goes with the concept that , “SHOP ,EAT, & CELEBRATE”. That is the slogan of CENTRAL’s. Other stores not allow any type of food stuff inside the mall. That the reason why there is huge approach of customers in CENTRAL’S.

Q.12) Which store has good loyalty scheme?

FIG 3.24 I
TERPRETATIO
& SUGGESTIO
: We can interpret from the above chart that only 16% people goes with CENTRAL’s. Only in this section CENTRAL’s lack behind others stores in PUNE. CENTRAL’s has to keep more attention towards this.

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From this above given questionnaire following are the observations & recommendations.

Observations: 1. From this research, there are majority no. of customers who buys more than 3 times in a month as compare to other customers. So these customers are loyal customers for CENTRAL’S. No of other customers who buys more than 2 times, 1 time in a month are also there. These are also the targeted customers for the CENTRAL’S. 2. There were higher percentage of customers who like to buy from CENTRAL as compare to other competitors.( pyramid, shoppers etc.) means majority of customers are like to shop from CENTRAL’S. So by organizing some events or with good product range & discounts, these remaining customers get diverted towards CENTRAL. 3.

As per the data collected through this survey, we can say higher no. of customers are youngsters. Along with professionals, businessmen etc. between the age group 25-35.

4.

Majority of females customers are there, as compare to male customers.

5.

As per income range is concern, majority of customers are high class customer’s means income(30000+/month).who loves to shop in CENTRAL’s. They are really brand conscious.

6. There are higher no. of customers who spend more than 3000 for their 1 time shopping, more than 3000 also. Some customers are there who even shop more than 10000 also.

Basically main objective behind this questionnaire is to collect information about the awareness about FUTURE CARD among the customers.

As per the data collected by questionnaire, i am very disappointed by the result that is only 30% customers were aware about the FUTURE card. The main reason behind it is that they don’t have any idea about FUTURE CARD. Only few of them know about it. The main reason behind it is, there is no display inside the mall

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for FUTURE CARD. All the employees working over there are not aware of that, among 200 customers only 30% customers have the FUTURE CARD. After that i ask for their interest in FUTURE CARD, more than 75% customers are interested to be a part of FUTURE CARD. They are really very interested to be a member of FUTURE CARD. They want more information about the FUTURE CARD.

Recommendations:

As per all this data, as per my opinion is concern, CENTRAL’s have to think more about the FUTURE CARD. Because as we discuss above more than 75% customers really very interested to be a part of the FUTURE CARD. This one is really very important thing where CENTRAL’S have to be concentrate. Because of this they get more LOYAL customers. CENTRAL’S have to arrange some events for promotion of FUTURE CARD. Including proper displays inside the mall, informing every employees over there to tell every customers about the FUTURE CARD. At the cash counter keep any executive to give information to each and every customer. Or make a proper section for FUTURE CARD at the entrance of the mall. By that every customer get idea about FUTURE CARD.

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WEBSITES 

www.retailbiz.com



www.google.com



www.retailyatra.com



www.wikipidea.com



www.timesofindia.com



www.economictimes.com



www.future.com



www.amazon.com



www.futurebazaar.com

BOOKS & MAGAZIES

       

Retail management book by CHETAN BHAGAT Book “RETAILING” by PATRICK M . DUNNE Retail management book by SUJA NAIR ICFAI JOURNALS. BUSINESS TODAY HARVADS JOURNALS MARKETING MANAGEMENT BY PHILIP KOTLER “IT HAPPENS ONLY IN INDIA” BY KISHORE BIYANI.

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APPENDIX

QUESTIOAIEER 1)

AME :

2)

AGE:

3)

ADRESS:

4) GEDER:

5) How often do you buy apparels (clothes)? Once a Week Once in 15 days Once a month Once every three months Once every 6 months Once a Year

6) From where do you buy your apparels (clothes)? Pyramid Central’s Shopper’s

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Mega mart

7) How much do you normally spend on apparels (clothes) bought from shopping malls in a single shopping Less than 500 Between 500 to 1000 Between 1000 to 2000 Between 2000 to 5000 More than 5000 Not Applicable

8) Customers aware of “FUTURE CARD” Loyalty Programme in CENTRAL’S ?

Yes

No

11. Do you have FUTURE CARD?

Yes

No

10) Are you interested to be a part of FUTURE CARD? Yes

No

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Research 2 :

QUESTIOAIEER Objective : To collect data for COMPARATIVE AALYSIS with respect to other stores in PUE. (CETRAL, PRAMID, SHOPPER’S, WESTSIDE, MEGA MART)

Sample size: 200 customers.

Q.1) Which store you find the price best? Q.2) Which store you find that there is a good range of brands available? Q.3) Which store has a good product range available? Q.4) Which store has a good trial room facility? Q.5) Which store has got good promotional offers?

Q.6) Which store provides the best service? Q.7) Which store has a good parking facility? Q.8) Which store has a good store layout? Q.9) Which store has organize good events? Q.10) Which store has good ambience? Q.11) Which store has good food court? Q.12) Which store has good loyalty scheme?

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