Rathin Bandhapadhyay Of Dept. Who has enriched my knowledge and gave me a moral support to do this report. I am also highly thankful to Mr. Dipanjan Mitra Management Faculty for showing the right path and encouraging me for the preparation of this report. I extremely thankful for her involvement and interest and providing necessary guidance regarding concept clarity of the project and support during all the stages of this project. I am very much thankful to all those people who gave me their valuable time and related information about the project.
To shine like a real diamond one must have practical exposure of what he has learnt. For the management students, theoretical knowledge is just like lock without key, so practical knowledge is of utmost importance. It is quite true that world outside: your home is many times quite different from what you have perceived.
It is my pleasure to present this project work. This Project has expanded my horizon of knowledge in practical as well as theoretical, which is vital for management level students.
Only the basic understanding of the principles of management is not sufficient but their application is also equally important. Compared to other business activities this kind of business has low risks because of low required investments. New forms of cost cutting and store optimization will help to set up a successful business. A company that provides additional service activities for the customers can be sure to have a high demand and a strong competition advantage General Store is located in the Sevoke Road, located near Cosmos Mall, Siliguri, in the Famous area of the City.
This business plan is prepared to obtain Rs. We are seeking joint financing from our local Economic Development Fund. India is the only one country having the highest shop density in the world, with 11 outlets per people 12 million retail shops for about million households. Rather we can see the democratic scenario in Indian Retail because of low level of centralization, low capital input and due to a good number of self organized retail.
Indian retail is dominated by a large number of small retailers consisting of the local shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etc.
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Discount Stores Stores offering discounts on the Low prices. Hyper-mart Larger than a Supermarket, Low prices, vast choice sometimes with a warehouse available including services Shopping Malls An enclosure having different Variety of shops available formats of in-store retailers, all close to each other.
Source: India info line Non-store Retailing It is another type of retail marketing. A variant of direct selling is called multilevel marketing, whereby companies such as Amway recruit independent businesspeople who act as distributors for their products, who in turn recruit and sell to sub distributors, who eventually recruit others to sell their products, usually in customer homes.
Direct Marketing Direct marketing has its roots in mail-order marketing but today includes reaching people in other ways than visiting their homes or offices, including telemarketing, television direct response marketing, and electronic shopping.
Automatic Vending Automatic vending has been applied to a considerable variety of merchandise, including impulse goods with high convenience value cigarettes, soft drinks, candy, newspaper, hot beverages and other products hosiery, cosmetics, food snacks, hot soups and food, paperbacks, record albums, film, T-shirts, insurance policies, and even fishing worms. Structure of the retailing industry according to ownership patterns: An unaffiliated or independent retailer A chain retailer or corporate retail chain A franchise system A Leased Department LD Vertical Marketing System VMS Consumer Co-operatives A new entrant in the retail environment is the 'discounter' format.
It is also is known as cash and- carry or hypermarket. These formats usually work on bulk buying and bulk selling. Shopping experience in terms of ambience or the service is not the mainstay here. RPG group has set up the first 'discounter' in Hyderabad called the Giant. Now Pantaloon is following suit. Two categories of customers visit these retail outlets.
The small retailer. For example, a customer of Giant could be a dhabawala who needs to buy edible oil in bulk. The regular consumer who spends on big volumes large pack sizes because of a price advantage per unit. Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out; the old ones tweaked around or just discarded.
Some of these are listed in Table below. Crossword bookstores are experimenting with Crossword Corner, to increase reach and business from their stores. FoodWorld is experimenting with a format of one- fourth the normal size called FoodWorld Express. In India the trends are mainly in three sectors. These sectors are: Trends in retail marketing 1. New retail forms and combinations continually emerge. Bank branches and ATM counters have opened in supermarkets.
Gas stations include food stores that make more profit than the gas operation. Bookstores feature coffee shops. They provide a way for malls to bring in more mom-and-pop retailers, showcase seasonal merchandise, and prospect for permanent tenants.
New retail forms are facing a shorter life span. They are rapidly copied and quickly lose their novelty. The electronic age has significantly increased the growth of non store retailing, consumers receive sales offers in the mail and over television, computers, and telephones, to which they can immediately respond by calling a toll-free number or via computer. Competition today is increasingly intertype, or between different types of store outlets. Discount stores, catalog showrooms, and department stores all compete for the same consumers.
The competition between chain superstores and smaller independently owned stores has become particularly heated. Because of their bulk buying power, chains get more favorable terms than In many locations, the arrival of a superstore has forced nearby independents out of business. Yet the news is not all bad for smaller companies. Many small independent retailers thrive by knowing their customers better and providing them with more personal service.
Superpower retailers are emerging. Through their superior information systems and buying power, these giant retailers are able to offer strong price savings. These retailers are using sophisticated marketing information and logistical systems to deliver good service and immense volumes of product at appealing prices to masses of consumers. In the process, they are crowding out smaller manufacturers, who become dependent on one large retailer and are therefore extremely vulnerable, and smaller retailers, who simply do not have the budget of the buying power to compete.
Many retailers are even telling the most powerful manufacturers what to make; how to price and promote; when and how to ship; and even how to reorganize and improve production and management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the market if they refuse. Marketing channels are increasingly becoming professionally managed and programmed.
They are not sticking to one format, such as department stores, but are moving into a mix of retail formats. Technology is becoming critical as a competitive tool. Retailers are using computers to produce better forecasts, control inventory costs, order electronically from suppliers, send e-mail between stores, and even sell to customers within stores. They are adopting checkout scanning systems, electronic funds transfer, and improved merchandise-handling systems. Retailers with unique formats and strong brand positioning are increasingly moving into other countries.
Many more Indian retailers are actively pursuing overseas markets to boost profits. There has been a marked rise in establishments that provide a place for people to congregate, such as coffeehouses, tea shops, juice bars, bookshops, and brew pubs. There are also the now-ubiquitous coffeehouses and espresso bars, such as Starbucks, whose numbers have grown from 2, in to a forecasted 13, by Without proper retailing the companies can't do their business.
Retailing is the process of selling goods in small quantities to the public and is not meant for resale. Retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. But in India the three layered system of distributor, wholesaler and retailer, forms the backbone of the front-end logistics of most of the consumer-good companies. In this system the company operating on all India basis appoints hundreds of distributors across the country that supplies to various retailers and wholesalers.
Wholesalers in turn can either directly sell in the market or can supply to retailers. The current retailing system prevalent across the country is highly fragmented and unorganized.
Anyone with some money and some real estate can open a small shop and become a retailer catering to the locality in which he opens the shop.
There are a number of reasons behind this fragmented retail market. Some of the major reasons being: Poverty and lower literacy levels. Low per capita income. Savings focused and less indulgence mindset. Poor infrastructure facilities like roads etc. Restrictions on intra-state good movement. High taxes. No exposure to media. High import duties on imported goods.
FDI in retailing is not allowed. Retailing is not considered as a business or industry by the government. Hitherto none of the business schools in India were offering specialized courses on retailing. Expensive supply chain. Besides this there is other reasons too, which led to stifling of growth of organized segment of retailing sector and which instead led to highly fragmented market.
Today in India we have more than 12 million retail outlets and most of then are family run and There are very few nationally present retail stores. In India the process of buying and selling at these unorganized retail outlets, is highly characterized by bargaining and negotiations. But slowly with increasing influence of media and urbanization the market is shifting towards organized segment.
Seeing the huge market size of retail business in the country and the current level of organized segment, many players have jumped into the fray and many are waiting for the right opportunity to enter it. The GDP has grown by 6.
Increasing literacy levels, increasing number of working women, increasing urbanization, higher international travel by Indian population and increasing media penetration has raised aspiration levels of the population, resulting in demand for better shopping experience and larger variety of goods. India has close to 54percent of population below the age of 25, which translates into higher prospects for increased consumption levels in the future. Finally, interest rates have also declined in the past few years further propelling the consumption demand.
These factors were the key drivers for the retail wave in the country. Initially, the growth in organized retail was very slow and concentrated mainly in metros, with south India holding its ground as the pioneer in organized retail growth, on account of the low cost of real estate. Due to the high investments required in the early stages and the fact that real estate was the key deciding factor for success of stores, real estate developers have been the major players in the industry see Table.
Source: Fitch In the early s, as the players were lower down on the learning curve many faltered in their models, and growth of the industry remained slow. The second half of s saw several players making losses and exiting from the business. The worst years for the industry were and , as the stock market downturn, which reduced customer confidence and spending, had a direct impact on the performance of the industry.
The industry recovered starting The Indian retail industry can no longer be called nascent. The spread of super stores to the northern cities such as Delhi, Chandigarh, Jaipur and Kolkata is evidence of the fact that organized retailing in India has emerged from its southern bastion. The retailing boom is being driven by increased expectations as well as changing shopping behavior of the urban Indian consumer.
With the increasing number of nuclear families, working women, greater work pressure and increased commuting time, consumers are looking for convenience. And, convenience is defined as having everything under one roof, longer hours and multiplicity of choice.
On the supply side, the current inefficient supply chain in India, particularly for food items has led a few players to consolidate their operations to take advantage of economies of scale and match consumer expectations in terms of delivery as well as space. So, we have a situation where both demand and supply side dynamics are fuelling the growth of organized retailing in India, although improvements in the supply chain are yet to fully match with consumer expectations. The future growth need not necessarily come only from the big metros, where there already exists a good retail network.
The fact that big Indian retail chains are moving into places like Indore or Chandigarh is an important indicator of future growth. For the Rs.
The share of organized sector in total retail sales will grow from one per cent now to six per cent by People and kids prefer to shop in an air conditioned a tech savvy manner. The retail industry is the second largest employer in India.
It currently employs about 7 percent of the total labor force in India. Finance Minister P. However only about 4. It generates about Rs. The major and minor players desperately need to work hard in this direction so that next time the figures look more decent.
The government must also make an attempt to ameliorate the situation as political instability and infrastructure namely power and roads are the major roadblocks in the path of smooth functioning of the market. Also the fragmentation of China's retail market is so high that top retailers make up for only The registered sales of department stores grew by The Chinese retail market is expected to reach new highs as the population of strong middle class is expected to double by and mergers and acquisitions among retailers are3 going in great guns.
The WTO restrictions are also expected to have a favorable impact on its retail sector. Japan - total annual sales for the Japanese retail industry for amounted to JPY , billion. Japan had 1. Between and annual sales per store increased by 3. The growth was mainly driven by the grocery superstores but the number of superstores specializing in clothes gradually came down.
The organized retail sector in Japan couldn't perform at its full efficiency because of collapse of the 'bubble economy' in the early 90s. Retail Distribution in India The distribution sector bridges the gap between the producer and consumer and thus forms a crucial link. Distribution of retail in India has multiple dimensions. Its uniformity is difficult to decide and easy to argue.
Distribution in any sector is usually measured by the reach of its products to people. But in case of the retail sector in India it also implies the dispersion among the organized and unorganized spheres. The question of distribution hovers mainly around the intentions of private players to reach out to the less rich people.
But the point that has caught the public eye recently is the ambiguous mood of the beneficiaries and the chauvinist government that produces civil service. Propagation of the retail sector: The expansion of the retailing in India has been magnificent especially after the advent of liberalization and the abolition of licensing. A comparative study with other developed countries indicates that the retail sector has achieved a fantastic breakthrough in the Indian economy.
India topped the A. India had a GRDI score of in both and Implying market potential and attractiveness. As the graph clearly depicts, India's contenders like Russia and China are nowhere in competition. We present the results from another survey below in order to strengthen our findings. One noteworthy point here is that Japan in spite of being one of the most densely populated countries has fared poorly than India.
But this euphoria loses its charm if we compare the percentage of organized retail in the total value generated by the retailing sector. According to international standards, a retail store is nominated as organized only when it features more than 10 employees. The number of shopping malls in India has grown from 1 in to in but still more effort is needed to turn the predictions into reality.
If they remain confined to the metropolis then they will soon hit a ceiling and will be able to grow no more. But at the same time they must realize that the rustic people are sceptic about the urbane lifestyle habits. The mega retail players will have to drop their policy of full extraction of consumer surplus and will have to employ the local people to overcome the myth that entry of a branded retail will displace the millions of traders, shopkeepers and hawkers. Protests must be welcomed and meetings encouraged makinglife easier.
This has helped in setting up of cash and in creating wholesale markets. In case of multi-brand retail, FDI is completely prohibited. This is a perfect beginning but foreign investment should be gradually liberalized to modernize farming and help farmers scale up.
Moreover, restricting FDI for protecting mom-and-pop stores seems unjustifiable since Tata, Reliance and Bharti have already made a foray in the sector. However, according to the survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry FICCI , among these, the food and grocery is expected to witness the fastest growth followed by clothing as the second-fastest growing segment. Marketing Strategies Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche.
A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe.
Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component defining how the organization will successfully engage customers, prospects, and competitors in the market arena.
Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. The generic strategy framework porter comprises two alternatives each with two alternative scopes.
These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. It asks whether the company is on the cutting edge of technology and business innovation. Reliance Mart marks the achievement of another milestone in our effort to unleash a retail revolution in India. Reliance Mart will also house a health and wellness store providing pharmaceutical drugs and other wellness products.
There are many products that will be exclusively available in Reliance Mart stores only. Reliance Mart, with 61 check-out counters has for the first time in India introduced the Mobile POS system for faster check outs. This is aimed at reducing customer wait-time. Reliance Mart will remain open from a. The store has over highly skilled and trained customer sales representatives.
Reliance Retail plans to have a pan-India presence by opening over 30 Reliance Mart hypermarkets this year and over by the end of Services Offered It offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo shop, gifting services and laundry services all within the store under one roof and also it has its own bakery shop.
Reliance Mart will also provide easy and attractive finance options, including zero per cent financing for the purchases on select products. Reliance Mart will continue to offer all its customers Reliance One, a common membership and loyalty programme across all its formats, which follows the philosophy of 'Earn Anywhere, Spend Anywhere'. Future Plans The next two hypermarkets are to be opened in Jamnagar in Gujarat and in the NCR by next month with plans to open 30 such marts by the year.
Strategy The hypermarket would be selling the products on EDLP every day low price basis at prices percent lower than market prices. In order to grow faster and better in local markets with higher margins, it has focused largely on local brands instead of national brands or private labels. This is in addition to private labels that Reliance plans to display. Strengths Keeping local brands at the outlets is more profitable and also makes the supply chain more efficient.
Being a bulk purchaser, Reliance Mart can offer products at very low prices. Also taking into consideration the local brands, the products at the outlets would be easily acceptable by the customers.
And there would be comparatively less efforts needed by the marketer to explain the product to the consumers. Weaknesses In some cases, few regional brands strongly liked by the consumers offer lower margins than that offered by the national brands.
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