Professional Documents
Culture Documents
Training Report
On
SUBMITTED TO :- SUBMITTED BY :-
Preface
This project report deals with the “Study to analyze the target
audience and the competitive advantages of the retail format
for consumer durable and footwear sector in GIP Mall.”
In this report , where I have tried to combine all the aspects to analyze the
target audience & competitive advantages of the retail format.
2
ACKNOWLEDGEMENT
This project would have been difficult to complete, but for the invaluable
contributions from some important people. Let me take this opportunity to thank them.
But firstly, I thank my HOD Dr.Dolly Phillip for giving me such a challenging
project to work upon. I hope this challenge has brought the best out of me.
I am also thankful to Dr. Dharmendra, my faculty guide for constantly
supporting and guiding me in achieving the objectives of my project. I am indebted to my
faculty guide for the direction and purpose he gave to this project through his invaluable
insights, which constantly inspired me to think beyond the obvious. His encouragement
and patience helped me instill a great degree of self-confidence to deliver a good research
work. I feel indebted to my parents and friends who have provided help directly or
indirectly in successful completion of this project
Finally, I express gratefulness to the local ‘janata’ for all their co-operation in
making this research possible.
The satisfaction, which accompanies the successful completion of any task is
incomplete without the mention of the names of those people who made it possible
because although success may be the epitome of one’s hard work and determination, but
it can’t be achieved without someone’s encouraging guidance, advice, coordination and
encouragement.
NIDHI SINGH
ROLL NO.: PGDO8039
3
DECLARATION
I further declare that the information presented in this project is true and original
to the best of my knowledge.
4
CONTENTS
Preface
Acknowledgement
Declaration
1 Introduction
2 Problem Statement
3 Research Methodology
References
Annexure
5
INTRODUCTION
Retail has played a major role world over in increasing productivity across a wide
range of consumer goods and services .The impact can be best seen in countries like
U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like
Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the
retail sector.
Retail is the second-largest industry in the United States both in number of
establishments and number of employees. It is also one of the largest world wide. The
retail industry employs more than 22 million Americans and generates more than $3
trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the
world’s largest retailer. Already the world’s largest employer with over 1million
associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company
when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most
successful retail brand in the world due its ability to leverage size, market clout, and
efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500
companies in the world. Forbes Annual List of Billionaires has the largest number
(45/497) from the retail business.
6
T op T en Indian
N am e
Future G ro up (Pantalo o n)
RETAIL FORMATS
Sho ppers Sto p
Land m ark (L ifestyle)
T rent
P yram id retail
Subhiksha
V ishal M ega M art
E bo ny retail
GVS
lo bu s
T rinetra
7
DIFFERENT FORMS OF RETAILING: EMERGENCE OF NEW
FORMATS OF RETAILING IN INDIA
8
The Indian retail sector can be broadly classified into:
a) FOOD RETAILERS: There are large number and variety of retailers in the food-
retailing sector. Traditional types of retailers, who operate small single-outlet businesses
mainly using family labour, dominate this sector .In comparison, super markets account
for a small proportion of food sales in India. However the growth rate of super market
sales has being significant in recent years because greater numbers of higherincome
Indians prefer to shop at super markets due to higher standards of hygiene and attractive
ambience.
b) HEALTH & BEAUTY PRODUCTS: With growth in income levels, Indians have
started spending more on health and beauty products .Here also small, single-outlet
retailers dominate the market .However in recent years, a few retail chains specializing in
these products have come into the market. Although these retail chains account for only a
small share of the total market , their business is expected to grow significantly in the
future due to the growing quality consciousness of buyers for these products .
e) DURABLE GOODS: The Indian durable goods sector has seen the entry of a large
number of foreign companies during the post liberalization period. A greater variety of
9
consumer electronic items and household appliances became available to the Indian
customer. Intense competition among companies to sell their brands provided a strong
impetus to the growth for retailers doing business in this sector.
10
C la s s if y in
F o rm a t D e s c r ip t
B r a n d e d S t oE rxe cs l u s i v e
m anuf
S p e c i aS ltt oy r e s F o c u s o n
b ra n d s
D e p a r t m e n t L Sa rt go er e s t
in t o d i
w a re s,
11
12
MALLS
Mall development is phenomenal in India. The mall mania is spreading fast and
entering even the second tier cities in India. Real estate developers are jumping very fast
to take this further from Metro cities to smaller cities and corporate houses like ITC and
Sriram group are making steady progress to make this phenomena feasible in rural
market also. There is no denying that the top notch cities like Mumbai, Delhi, Bangalore,
Hyderabad, Kolkata, Chennai and Pune are leading the way but the second tier cities like
Ludhiana, Chandigarh, Nagapur and Surat are catching the eye of all retailers. Retail
developers are in such a mood that they may over ride the requirement in a specific city.
Large format malls are increasingly getting prominent with adequate retail space
allocated to leisure and entertainment. Some states like Punjab have lifted entertainment
tax on multiplexes till 2009. This boosted the confidence of the mall developers to
accommodate entertainment players like PVR, Waves, Adlab and Fun Republic in large
malls.
13
DEPARTMENT STORE
A department store offers an extensive assortment (width and depth) of goods and
services that are organized into separate departments for the purpose of efficient buying,
assortment, promotion and above all ease of shopping for the consumer. Such a format
provides the greatest selection of any general merchandize and very often serves as the
anchor store in shopping mall or shopping centre. In India, the number of department
stores is less compared to other retail formats such as supermarkets and discount stores.
HYPERMARKET
14
Hypermarkets have emerged as the biggest crowd pullers due to the fact that
regular repeat purchases are a norm at such outlets. Hypermarkets not only offer
consumers the most extensive merchandise mix, product and brand choices under one
roof, but also create superior value for money advantages of hypermarket shopping. With
product categories on offer ranging from fresh produce and FMCG products to
electronics, value apparels, house ware, do it yourself (DIY) and outdoor products, the
hypermarkets are becoming popular formats in India..
SUPERMARKET
Unlike western countries where supermarkets are prominently visible, in our
country this is lacking. The supermarkets largely concentrate on selling food related
15
products and are considerably smaller in size compared to hypermarkets. Their value
proposition is also different from the hypermarkets. The supermarkets offer relatively
less assortments but focus on specific product categories. They do not play the game on
price rather use convenience and affordability as their salient features. In India this role is
played by the provision stores and sweet shops. Interestingly the fresh vegetables and
fruits are sold on the foot path and in open markets. Traditionally consumers feel
conservative to buy fruits and vegetables from air conditioned supermarkets. They prefer
to buy either from the local mobile vegetable sellers or from the nearest sabji market.
Probably that works as deterrent factor for the growth of supermarkets in India. But the
situation is changing and slowly supermarket operators are coming to their own.
CATEGORY KILLER
The category killer concept originated in the U.S. due to abundance of cheap land
and the dominant car culture. Category Killer is a kind of discount specialty store that
offers less variety but deep assortment of merchandise. By offering a deep assortment in
a category at comparative low prices, category specialist can be able to “kill’ that specific
category of merchandize for other retailers. Generally such kind of retailers uses a self
service approach. They use their buying power to negotiate low prices, excellent terms
and assured supply when items are scarce. In India this kind of retail stores are not
prevalent at this point of time. But there is scope for such kind of format. In India, Mega-
Mart is one sort of category killer which sells apparel products.
16
LITERATURE REVIEW
17
Emerging Trends in Modern Retail Formats &
Customer Shopping Behavior in Indian Scenario: A
Meta Analysis & Review
To analyze the emerging trends in shoppers’ behavior 30 shop keepers from 6 Malls
operating in Delhi & NCR were interviewed during November 2007-Jan 2008.Since the
study is focused on country analysis, hence, for the rest part of the country secondary
data published by different research institutions like TSMG, CSSO, Future Group,
NCAER etc have been considered to draw the key inferences.
Key Observations: The primary data collected from the respondents, led to the
following key observations about customers’ shopping behaviour in Indian scenario
among the modern retail formats:
1. Master and serving class employee, never shop at the same store, though lower
middle class visits hyper markets and discount stores, the upper middle class
frequents department stores, specialty chains and super market.
2. For India two, the clean and shiny environment of modern retail stores creates the
perception that such stores are too expensive and exclusive, so they are not meant
for them. India two tends to feel alienated in environment, frequent by India one.
3. India two moves and finds lot of comfort in crowds, so they normally hesitate in
visiting the stores having broader area coverage.
In the preparation to face fierce competitive pressure, Indian retailers must come to
recognize the value of building their own stores as brands to reinforce their marketing
Positioning, to communicate quality as well as value for money. Sustainable competitive
advantage will be dependent on translating core values combining products, image and
reputation into a coherent retail brand strategy. With the generous use of Global and
Local Experiences, Indian retailers are going to improve their bottom lines with efficient
management of Supply Chain and Logistics. At the same time, Indian Retailers like
Future Group with retail stores like Big Bazaar, Pantaloons and Reliance Retail are also
going to show the world as to how it can be managed in a more innovative and efficient
manner. The retail sector in India is witnessing a huge revamping exercise as traditional
18
markets make a way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores. Western style malls have begun appearing in metros
and second-rung cities which introduced the Indian consumer to a shopping experience
like never before.
FEATURES
The Great India Place was developed by the Unitech Group and is located in
Sector 18-A of Noida. The mall is part of the larger Entertainment City amusement park.
The mall houses big retail outlets like Shopper's Stop, Globus, Pantaloons, Big Bazaar,
Home Town, Lifestyle and Lifestyle Home, along with international brands like Adidas,
Nike, Guess, Marks & Spencer. The mall follows a zoned concept with home and
grocery on the basement level, women's apparel on one side, men's on the other and a
180,000 sq.ft. Food and Entertainment zone on the top floor, with a 6-screen Adlabs
19
multiplex, with a total seating capacity of 1220 seats. There is also a 80,000 sq.ft. zone
dedicated for the Wedding Bazaar, and a Home saaz section for home improvement. The
maximum area of the mall is covered by Future Group ventures named as Home Town,
Big Bazaar and Pantaloon. Designed by Callison Inc. the interior theme is
"shoppertainment", which integrates shopping and entertainment in the same premises. •
Shops of all possible product and service categories.
PROBLEM STATEMENT
Key objective
To analyze the target audience and the strategic competitive advantages of the
multibranded and exclusive retail outlet for Consumer Durables sector and Footwear
sector in the GIP Mall.
Sub Objectives:
• To analyze the socio-economic profile of the target customers visiting the retail
• To analyze the retail success in GIP, where it is operating, its position in the area
20
RESEARCH METHODOLOGY
1. PROBLEM DEFINITION:
The problem can be briefly defined as: “To develop a deeper understanding of the
strategic target audience and the strategic competitive advantages of the various retail
formats present in GIP for the different product category.”
Primary data: The primary data was collected by the survey method for the consumers
making use of the questionnaire method and the interview method for the retailers to
collect the responses of the individuals.
Secondary Data: The secondary data was collected through various books, magazines,
websites, journals.
21
4. DESIGNING THE SAMPLE: This involves determining the (a) sampling frame, (b)
sample selection process and (c) the size of the sample.
a) Sampling Frame: It is the list of the population elements from which the sample will be
drawn. For the research work, the sample selected for consumers was 100 consumers as the
sample size. This sample frame was decided based on the location of the retail formats to be
targeted. The sampling frame comprised of 50 consumers from the ground floor and 50
consumers from the fourth floor of the GIP Mall.
b) Sample Selection Process: The sampling process used involved the SIMPLE RANDOM
PROBABILITY SAMPLING.
c) Sample Size: The sample size was 100 for the consumer survey and 4 retailers for the
retail format survey. The sample size was determined on the basis of certain parameters, such
as, the importance of the decision, the nature of the research, the nature of the analysis,
sample sizes used in similar studies, etc.
A) Editing: Scanning the data-collection forms to be sure that they are complete and
consistent with the instructions specified.
22
C) Tabulation: Orderly arrangement of the data in a table or other summary format
achieved by counting the frequency of responses to each questions.
Although all the efforts have been put and no stone have been left unturned, some
limitations might have inadvertently crept in:
• The time period of 9 weeks was quite insufficient to learn completely about the
advertising industry and all its technicalities.
• There was a time constraint in the study with a large sample.
• Some more intriguing question could have been incorporated in the questionnaire
to gain further insights into the problems.
23
SECTORAL ANALYSIS OF RETAIL FORMATS IN GIP
STRENGTH WEAKNESS
25
INCLUDEPICTU
INCLUDEPICTU
TARGET CUSTOMER
The target customers visiting the store are:
1. Corporates and students.
2. Age Group 5 yrs onwards.
3. Middle class and upper middle class to elite class.
CLASSIFICATION OF CUSTOMERS
PROFITS
20222FGFCBBXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXBXXXXXXXXBX
SALES IN- STORE
XBMNABXMNBXAMNBXANXMANNXN
SPENDER
CONVERSION
LOYAL
SHOPPERS
BROWSER
PASSER-BY
1. PASSER-BY: 100%
2. BROWSER: 95%
26
3. SPENDER: 66.5% ( 70% OF BROWSER)
4. BIG SPENDER: 28.5% (30% OF BROWSER)
INCLUDEPICTU
5. LOYAL SHOPPERS: 35%
INCLUDEPICTU
ANALYSIS OF COMPETITIVE ADVANTAGE THROUGH RETAILING MIX
5. NO. OF SKUs: The products are divided into two broad categories with various sub-
categories.
CATEGORY A: STATIONERY CATEGORY B: IT PRODUCTS
1. Files: 50 1. Laptops: 50
2. Pens: 1000 2. Printers: 80-100
3. Pins: > 1000 3. IT accessories: > 1000
4. Boards: 40-50
5. Globes: 8-10
6. Wallets: 10
7. Lunch boxes & Bottles: 50
7. AVERAGE BILLING PER CUSTOMER: For stationery, the value ranges between
Rs. 100-300. For IT products, the billing varies from customer to customer.
27
INCLUDEPICT
9. SHOP DISPLAY: Staples has a mix of various displays. It has an OPEN WINDOW
DISPLAY on the outer side so as to attract the attention of the passers-by. Inside the INCLUDEPICT
store, it has COUNTER DISPLAYS with the impulse- buying merchandise at the
counters. It has also utilized the walls for the display. This type of display is known as
CASCADE/ WATERFALL DISPLAYS.
10. VISUAL MERCHANDISING: The products are divided into two categories:
STATIONERY and IT PRODUCTS. The STATIONERY are displayed on the left side
and the IT PRODUCTS are displayed on the right side of the store. Each product
category has further sub-categories.
11. EMPLOYEE TYPE AND DENSITY: There are 40 Employees with each employee
responsible for a different sub-category and a category.
INCLUDEPICTU
13. FIXTURE TYPE: The fixtures complement the value of the merchandise. The
fixtures comprised of wooden shelves, iron pillars, aluminium racks and Strong plastic
shelves attached to the iron pillars.
14. SOUND TYPE: Staples store does not use any type of sound impact. They keep an
official atmosphere with no music.
15. ODOUR TYPE: The store uses the room freshner for building the odour in the
atmosphere that adds to the shopping experience in the store.
28
16. CRM : Personalized attention to each customer is delivered at STAPLES store. The
facility of exchanging the goods, updated information about the new collection through
the personalized SMSs and mailers to the loyal as well as one time purchasers are some
of the CRM practices.
INCLUDEPICTU
INCLUDEPICTU
WRITING
INSTRUME
NT
FIL
ING
&
BIN D W N I C P P
DIN E R O T A R R
G S I T B I I
K T E P L N N
A I B R E T T
IT
C N O O S E E
C G O D R R
FIL
E K U S S
ING
S S C
&
O T
BIN 29
R s
DIN
G
IT
ART &
CRAFT
I-2 I-2
S-1
STORE
ROOM
IT
LAPTOPS
IT
EXIT
INCLUDEPICTURE "http://
JUMBO ELECTRONICS
Global Brands: The flagship company, Jumbo Electronics Company Ltd. (LLC), is ISO
9001 certified and was founded in the United Arab Emirates in 1974. It's U.A.E. presence
encompasses the seven Emirates of Dubai, Sharjah, Abu Dhabi, Umm Al Qawwain, Ras
30
Al Khaimah, Fujairah and Ajman. Jumbo Electronics is one of the largest distributors of
Sony products in the world, the company has an enviable line-up of various other
international brands in its portfolio including Acer, Apple, Brother, LG, Palm, Creative,
Dell, Dyson, Epson, Fujitsu Siemens, Hewlett Packard, Hitachi, IBM, Kenwood,
Lenovo, Linksys, Motorola, I-mate, Nokia, Samsung, Sendo, Siemens, Sony Ericsson,
Supra, Toshiba, etc.
JUMBO ELECTRONICS: Jumbo Electronics is one of the biggest names in the field
of consumer electronics, information technology, telecommunications, home appliances,
office automation and entertainment in the UAE and is amongst the first transnational
corporations with a well spread out network of 31 retail stores and 9 service centres
across the emirates. INCLUDEPICTURE "http://ww
CLASSIFICATION OF CUSTOMERS
PROFITS
20222FGFCBBXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXBXXXXXXXXBX
SALES IN- STORE
XBMNABXMNBXAMNBXANXMANNXN
SPENDER
CONVERSION
LOYAL
SHOPPERS
BROWSER
31
PASSER-BY
1. PASSER-BY: 100%
2. BROWSER: 90%
3. SPENDER: 45% ( 50% OF BROWSER)
4. BIG SPENDER: 27% (30% OF BROWSER)
5. LOYAL SHOPPERS: 30%
INCLUDEPICTURE "http://ww
2. POSITIONING: .
5. NO. OF SKUs: The retail store has 12- 14 brands. Each brand has 200-250 products
displayed. The various brands displayed at the store are:
APPLE BROTHER CASIO
NOKIA SONY SONY ERICSSON
RICOH HEWLETT PACKARD ACER
DELL TOSHIBA LG
SAMSUNG MOTOROLA MICROSOFT
7. AVERAGE BILLING PER CUSTOMER: Rs. 1500-3000 per customer per month.
32
8. AVERAGE FOOTFALL: 800-1000 per week.
10. VISUAL MERCHANDISING: The products are divided into various brands. The
products are displayed according to the brand categories.
11. EMPLOYEE TYPE AND DENSITY: There are 22 Employees with each employee
responsible for a different product in a particular brand.
12. MERCHANDISE TYPE AND DENSITY: Merchandise in the store can be
categorized as:
STAPLES Domestic Appliances.
CONVENIENCE GOODS Mobiles, TV, Digital Cameras.
IMPULSE BUYING GOODS Mobiles accessories, Watches, Calculators
13. FIXTURE TYPE: The fixtures complement the value of the merchandise. The
fixtures comprised of wooden shelves, iron pillars, aluminium racks and Strong plastic
shelves attached to the iron pillars.
14. SOUND TYPE: JUMBO ELECTRONICS uses rock music or any other fast track
musics.
15. ODOUR TYPE: The store uses the room freshner for building the odour in the
atmosphere that adds to the shopping experience in the store.
16. CRM : Personalized attention to each customer is delivered at the store. The facility
of exchanging the goods, updated information about the new collection through the
33
personalized SMSs and mailers to the loyal as well as one time purchasers are some of
the CRM practices.
Customer service is supported by the customer database programs that allow the
store to identify which customers purchased what items and when. These systems link
every SKU to the customer’s name and address. This facilitates the store in building the
communication and the upcoming promotions. CRM helps at the POS to gather all the
information about the customer and ensures that his payments are easier too.
INCLUDEPICTURE "http://
18. PRICING: The JUMBO ELECTRONICS sell the product on the MAXIMUM
DIFFERENTIATION FROM THE COMPETITORS: The JUMBO
RETAIL PRICE (MRP) and PRICE BUNDLING. For large value products,
ELECTRONICS is a one stop shop for all the consumer durables at reasonable it provides
prices,
excellent ambience,
certain discounts. good quality and better customer services.
INCLUDEPICTURE "http://
34
BRAND 3 BRAND 4
BRAND 2 BRAND 5
BRAND 1 BRAND 6
FOOTWEAR SECTOR
EXIT
The availability of abundant raw material base, large domestic market and the
opportunity to cater to world markets makes India an attractive destination for
technology and investments.
35
WALK IN M&B
Walk in M&B, the retail project of M&B Footwear (P) Ltd., is one of the
country's most aggressively expanding footwear retail chains. Located at all the premium
shopping destinations including malls and high street, Walk In M&B is a platform for
selling exclusive international and national brands to the fashion and brand conscious
urban customer. It is an effort to bring the world's most sought after footwear brands
under one roof and provide the customers a world class shopping experience. These
lifestyle showrooms are splashed with brand colours and attract the most envious
footfalls everywhere. These stores operate under the retail format of company owned
stores, stand alone franchisee stores and shop-in-shops.
Brands Available: Lee Cooper (Mens), Lee Cooper (Femmes), iD (Footwear and
Spareparts), Geox, Merrell, Provogue, Rider and Firangi
STORE AT GIP
BUSINESS MODEL
36
STUDY OF TARGET AUDIENCE
37
ANALYSIS OF COMPETITIVE ADVANTAGE THROUGH RETAILING MIX
2. POSITIONING: Creating a world class experience with one stop shop for all the
brands of the footwear.
5. NO. OF SKUs: The products are segregated according to the various brand types. The
total stocks displayed consist of 250 pairs of shoes.
6. NO. OF SUPPLIERS: Directly from the Warehouse located at Gurgaon and through
company owned vehicles. The Warehouse receives the merchandise from the various
brands through the brand’s supply chain.
9. SHOP DISPLAY: The Retail Store has a mix of various displays. It has an OPEN
WINDOW DISPLAY on the outer side, with the MANNEQUINS displayed, so as to
attract the attention of the passers-by.
38
10. VISUAL MERCHANDISING: The products are segregated according to the varius
brands and the products are neatly displayed in pairs. The FOOTWEAR are neatly and
well displayed on the GONDALAS, SLATWALLS and GRID WALLS.
11. EMPLOYEE TYPE AND DENSITY: There are 8 Employees with each employee
responsible for meeting his/ her sales targets. The employee density is 1 employee per
450 square feet.
13. FIXTURE TYPE: The fixtures complement the value of the merchandise. The
fixtures comprised of wooden shelves, iron pillars, aluminium racks and Strong plastic
shelves attached to the iron pillars. The fixtures used are GONDOLAS, SLATWALLS
and GRID WALLS.
14. SOUND TYPE: M & B Footwear plays ROCK, JAZZ, ENGLISH, and other
YOUTH suiting music.
15. ODOUR TYPE: The store uses the room freshner for building the odour in the
atmosphere that adds to the shopping experience in the store.
16. CRM : Personalized attention to each customer is delivered at M&B store. The
facility of exchanging the goods, updated information about the new collection through
the personalized SMSs and mailers to the loyal as well as one time purchasers are some
of the CRM practices.
17. LOYALTY PROGRAMS: Priviledge cards, which provide 10% discount to the
card holders on any kind of purchase they make. It is valid for 2 years.
39
18. PRICING: M&B sells the product on the MAXIMUM RETAIL PRICE (MRP), of
the various brands, which are fixed. However, in order to gain a competitive advantage
the store uses various PRICE OFF schemes in the form of DISCOUNTS. Ex: It provides
discount Upto 40% Off On MRP. It also offers the scheme of SALE ON FLAT
PRICES.
STORE ROOM
C
O
POSTERS U
N
T
E COUNTER
ACCESS R
ORIES
S
S S
H
H H
O B
B B O O
E E
E E E E
R N
N N R R EXIT
A C
C C A A
C H 40
H H C C
K E
E E K K
S S
S S
Mannequi
n S
H
E O
N E
T S
R
Y
SHOE RACKS
41
1. More of the “SINGLE-PRICE DENOMINATION” retail stores such as THE
DOLLAR STORE should come up in various malls.
2. In order to increase the number of footfalls, the stores should go for JOINT
PROMOTION, tied up with malls.
3. The retail outlet should develop more innovative CRM practices.
4. The exclusive speciality stores should develop loyalty programmes to increase the
conversion ratio of prospective buyers to the loyal customers.
5. The Retail Store should come up with an innovative technology embedded supply
chain to reduce the operating costs and thereby increase the profit margins.
6. The retail store can provide the value added services such as FREE PARKING
SPACES to their buyers, thus increasing the conversion ratio from prospects into
sales.
7. CROSS SELLING: The retailers could develop the various cross-selling
strategies to gain competitive advantages. Ex: The exclusive apparel retailer can
tie up with footwear stores thereby promoting each others store and hence
increasing the footfall.
CONCLUSION
42
1) Retailers need to think about shoppers not just about a format as understanding the
shoppers’ dynamics holds the key to such a business. Retailers would have to create
new delivery formats that can cater to the huge mass of consumers.
2) Retailers must understand what value shopper is looking for and how the retailers can
deliver that desired value to the customer. However, most retailers look for what they
are offering and how shoppers can fit into retailer’s scheme of offerings.
3) In the long run such strategies may not be viable. Sam Walton and Jack Welch share
a same line of thinking that consumer is the source of competitive advantage and one
of leading UK based retailers Tesco Inc. has shown how understanding consumer can
be a source of redefining business and gaining sustainable advantage.
REFERENCES
43
PRIMARY SOURCES:
SECONDARY SOURCES:
1. http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-IRHome
2. http://www.jumbocorp.com/corporate.asp
3. http://footwearsinfolinethree.tripod.com/india_footwear.pdf
4. http://www.irs.gov/pub/irs-mssp/retail_industry__102005_final.pdf
5. http://www.investopedia.com/features/industryhandbook/retail.asp
ANNEXURES
44
A. CONSUMER QUESTIONNAIRE:
Dear Respondent,
Good morning/afternoon.
We are undertaking the research to gather the view of customers towards retail formats.
I would request you to answer a small questionnaire so that we can know your valuable
opinion.
A. Personal Details:
1. What is your age group?
a. less than 25 b. 25-35 c. 35-44 d. 45 and above
B. RETAIL FORMATS:
1. Please rate the following retail formats that you consider for shopping on a scale
of 1 to 5 ( 1 being the least important and 5 being the most important).
Sr.
Parameter 1 2 3 4 5
No.
1 Hypermarket (Big
bazaar)
2 Speciality Stores
( Zardozi)
3 Dollar Stores ( My
Dollar store)
4 Departmental stores
( Pantaloons,
Lifestyle)
5 Emporium ( CTC
Plaza)
45
3. Please rate following parameters that you consider for selecting a store for
shopping on a scale of 1 to 5 (1 being the least important and 5 being the most
important)
Sr.
Parameter 1 2 3 4 5
No.
1 More variety
2 Good Quality Product
3 Value for money
4 Accessibility
5 Better Service
4. Does the window / shop display/ mannequins affect your buying behaviour?
a. Yes b. No
5. How do you find the price difference between the Multibrand retail outlet (e.g.
Max) and Exclusive retail outlet (e.g. Ws)?
a. More b. Less
6. Rate on a scale of 1-5, the factors for differentiating a retail outlet from others. (1
being the least important and 5 being the most important)
Sr.
Parameter 1 2 3 4 5
No.
1 Service
2 Affordability
3 Store Circulation
plan
4 Internal ambience
5 Sales promotion plan
7. Does the mailers / reminder SMSs/ telemarketing, etc, affect your buying
behaviour?
a. Yes b. No
8. Does the CRM practices ( fast billing, credits given) influence your decision
regarding the selection of the shop?
a. Yes b. No
46
9. Rate on a scale of 1-5, the various sales promotion schemes, on the basis of their
influence on the buying behaviour. (1 being the least important and 5 being the most
important)
Sr.
Parameter 1 2 3 4 5
No.
1 Price-offs
2 Free gifts
3 Discounts
4 Contests
5 Exchange offer
a. Yes b. No
Thank you for your support. I would be glad to share the findings of the study if
you so desire.
B. RETAILERS QUESTIONNAIRE
1. What is the socio-economic profile of your target customers?
47
a. Upper Class b. Middle Class c. Lower Class d. Mixed
e. Others specify______________________________________
1. POSITIONING
2 FLOOR SIZE
3 LOCATION (WHICH FLOOR OF
GIP MALL?)
4 NO. OF SKUs
5 NO. OF SUPPLIERS
6 AV. BILLING / CUSTOMER
7 AVERAGE FOOTFALLS
8 TYPE OF DISPLAYS
9 EMPLOYEE NO.
10 MERCHANDISE TYPE
(STAPLES, CONVENIENCE,
IMPULSE BUYING GOODS)
11 FIXTURES
12 SOUND
13 ODOUR
14 VISUAL MERCHANDISING
15 STORE LAYOUT
16 CRM PRACTICES
17 LOYALTY PROGRAM
18 SUPPLY CHAIN PROCESS
19 PRICING
48
4. SALES PROMOTION AS A TOOL FOR COMPETITIVE ADVANTAGE:
S.NO. PARAMETERS FOR MULTIBRANDED EXCLUSIVE
COMPETITIVE ADVANTAGE RETAIL OUTLET RETAIL OUTLET
1 END OF SEASON
2 FESTIVE PROMOTIONS
3 LOYALTY CARD PROGRAM
4 SPECIAL PROMOTION
(EVENTS)
5 JOINT PROMOTION
6 MEDIA USED
7 PROMOTION TYPE
8 EVALUATION OF
PROMOTION
49