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SUMMER TRAINING PROJECT REPORT Reliance Retail Limited
A PROJECT REPORT ON “ACHIEVING OPERATIONAL EXCELLENCE” TRAINING SUPERVISOR: - SUBMITTED BY:- Sanjay chattarjee Sandeep Kumar Sharma General Manager- Operation Enrolment no: - 200915
SESSION: 2009-2011 PGDM- FT + MBA
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AMCAP SCHOOL OF MANAGEMENT
PREFACE As a part of course curriculum of Masters of business administration we were asked to undergo 45 days summer training in any organization so as to give us exposure to practical management to get us familiar with various activities taking place in the organization. I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite all limitations, obstructs, hurdles and hindrances, I have toiled and worked to my optimum potential to achieve desired goals. Being neophytes in the highly competitive world of business. I came across some difficulties to make my objective a reality. Anyhow with the kind of help and genuine interest and the guidance of my supervisor. I am presenting this hand carved effort. I tried my level best to conduct a research to gain a thorough knowledge about the project on topic, “Study of marketing strategies of Toyota”. I put the best of my efforts and have also tried to be justice with available. If anywhere something is found unacceptable or unnecessary to the theme. you are welcomed with your valuable suggestions. Thanks and regards, Yours sincerely, Sanded Kumar sharma
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ACKNOWLEDGEMENT I would like to thank Reliance Retail Limited, for constant guidance to conduct the present arduous project and untiring cooperation which they extended to me throughout the duration of my summer training. Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to MR. SANJAY CHATTARJEE and MS. ROOPALI KASLIWAL for his helpfulhand in the completion of my project. I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all ofthem for their time, energy and wisdom. (SANDEEP KUMAR SHARMA)
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RETAIL SECTOR
The Indian retail market, which is the fifth largest retail destination globally, has been ranked the
second most attractive emerging market for investment after Vietnam in the retail sector by AT
Kearney's seventh annual Global Retail Development Index (GRDI), in 2008. The share of retail
trade in the country's gross domestic product (GDP) was between 8–10 per cent in 2007. It is
currently around 12 per cent, and is likely to reach 22 per cent by 2010.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. It has further been predicted that the retailing
industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5
billion.
Shopping in India have witnessed a revolution with the change in the consumer buying behavior
and the whole format of shopping also altering. Industry of retail in India which have become
modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and
sprawling complexes which offer food, shopping, and entertainment all under the same roof.
India retail industry is expanding itself most aggressively, as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers.
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In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9%
annually. The branded food industry is trying to enter the India retail industry and convert Indian
consumers to branded food. Since at present 60% of the Indian grocery basket consists of non-
branded items.
India retail industry is progressing well and for this to continue retailers as well as the Indian
government will have to make a combined effort.
A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer
market is likely to grow four times by 2025. Commercial real estate services company, CB
Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion.
Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil
marketing, power, two-wheelers and telecom companies are leading the sales and profit growth
of India Inc in the fourth quarter of 2008-09. India continues to be among the most attractive
countries for global retailers. At US$ 511 billion in 2008, its retail market is larger than ever and
drawing both global and local retailers. Foreign direct investment (FDI) inflows as on January
2009, in single-brand retail trading, stood at approx. US$ 25.18 million, according to the
Department of Industrial Policy and Promotion (DIPP).
India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion
by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country
with high growth rates, consumer spending has risen sharply as the youth population (more than
33 percent of the country is below the age of 15) has seen a significant increase in its disposable
income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also,
organized retail, which accounts for almost 5 per cent of the market, is expected to grow at a
CAGR of 40 per cent from US$ 20 billion in 2007 to US$ 107 billion by 2013.
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India has emerged the third most attractive market destination for apparel retailers, according to
a new study by global management consulting firm AT Kearney. It further says that in India,
apparel is the second largest retail category, representing 10 per cent of the US$ 37 billion retail
market. It is expected to grow 12-15 per cent per year. Apparel, along with food and grocery,
will lead the organized retailing in India. India has one of the largest numbers of retail outlets in
the world. A report by Images Retail estimates the number of operational malls to grow more
than two-fold, to cross 412, with 205 million square feet by 2010, and a further 715 malls to be
added by 2015, with major retail developments even in tier-II and tier-III cities in India.
Marks & Spencer Reliance India is planning to open 35 more stores over the next five
years, according to Mark Ashman, CEO of the company. The 51:49 joint venture
between UK’s Marks and Spencer and Reliance Retail Ltd already has 15 stores in India.
Future Group has been restructured to test the new rules on FDI under Press Notes 2, 3
and 4 issued in February 2009. The company plans to bring in up to US$ 148.7 million in
foreign investment. Although FDI is permitted only in single-brand retail and not
permitted in multi-brand retail businesses like Future Group's, the conglomerate has
created two layers of operations to take advantage of the three Press Notes that allow FDI
up to 49 per cent in operating-cum-investment companies as long as they are owned and
controlled by Indians.
Carrefour SA, Europe’s largest retailer, may start wholesale operations in India by 2010
and plans to set up its first cash-and-carry outlet in the National Capital Region.
Currently, Carrefour exports goods worth US$ 170 million from India to Europe, UAE,
Indonesia, Europe, Thailand, Singapore and Malaysia.
Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a
chain of exclusive retail outlets called Shuddi–Sampurna Vishwas. The joint venture,
which plans to open around 60 stores across India by end of this year, will retail
hallmarked gold and diamond jewellery.
Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8
million by 2010 to step up its specialty retail concept 'Mom and Me'.
Policy Initiatives
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100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee arrangements are
also permitted in retail trade.
51 per cent FDI is allowed in single-brand retailing.
Road Ahead
According to industry experts, the next phase of growth is expected to come from rural markets,
with rural India accounting for almost half of the domestic retail market, valued over US$ 300
billion. Rural India is set to witness an economic boom, with per capita income having grown by
50 per cent over the last 10 years, mainly on account of rising commodity prices and improved
productivity.
According to retail and consumer products division, E&Y India, basic infrastructure, generation
of employment guarantee schemes, better information services and access to funding are also
bringing prosperity to rural households. The rural market, product design will need to go beyond
ideas like smaller sizes (such as single use sachets) to create genuinely new products, according
to Ramesh Srinivas, national industry director (consumer markets), KPMG India.
According to the Investment commission of India, the overall retail market is expected to grow
from US$ 262 billion to about US$ 1065 billion by 2016, with organised retail at US$ 165
billion (approximately 15.5 per cent of total retail sales). India is expected to be among the top 5
retail markets in the world in 10 years.
According to new market research report by RNCOS titled, "Booming Retail Sector in India",
organised retail market in India is expected to reach US$ 50 billion by 2011.
Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent
from 2007 to 2015.
Rural market is projected to dominate the retail industry landscape in India by 2012 with
total market share of above 50 per cent.
Organised retailing of mobile handset and accessories is expected to reach close to US$
990 million by 2010.
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Driven by the expanding retail market, third party logistic market is forecasted to reach
US$ 20 billion by 2011.
RETAIL SECTOR IN INDIA
Retail and real estate are the two booming sectors of India in the present times. And if industry
experts are to be believed, the prospects of both the sectors are mutually dependent on each
other. Retail, one of India’s largest industries, has presently emerged as one of the most dynamic
and fast paced industries of our times with several players entering the market. Accounting for
over 10 per cent of the country’s GDP and around eight per cent of the employment retailing in
India is gradually inching its way toward becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex-
malls and huge complexes offer shopping, entertainment and food all under one roof, the concept
of shopping has altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. This has also contributed to large scale investments in the real
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estate sector with major national and global players investing in developing the infrastructure
and construction of the retailing business. The trends that are driving the growth of the retail
sector in India are
Low share of organized retailing
Falling real estate prices
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items
Another credible factor in the prospects
of the retail sector in India is the
increase in the young working
population. In India, hefty pay-packets,
nuclear families in urban areas, along
with increasing working-women
population and emerging opportunities
in the services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel
and Leisure and many more. With this the retail sector in India is witnessing a rejuvenation as
traditional markets make way for new formats such as departmental stores, hypermarkets,
supermarkets and specialty stores.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is studied
it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in
the Tier II cities. The government of states like Delhi and National Capital Region (NCR) are
very upbeat about permitting the use of land for commercial development thus increasing the
availability of land for retail space; thus making NCR render to 50% of the malls in India.
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India is being seen as a potential
goldmine for retail investors from over
the world and latest research has rated
India as the top destination for retailers
for an attractive emerging retail market.
India’s vast middle class and its almost
untapped retail industry are key
attractions for global retail giants wanting to enter newer markets. Even though India has well
over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing
industry in the modern sense of the term. This presents international retailing specialists with a
great opportunity. The organized retail sector is expected to grow stronger than GDP growth in
the next five years driven by changing lifestyles, burgeoning income and favorable demographic
outline.
Another cap to the retailing industry in India is allowing 51% FDI in single brand outlet. The
government is now set to initiate a second wave of reforms in the segment by liberalizing
investment norms further. This will not only favor the retail sector develop in terms of design
concept, construction quality and providing modern amenities but will also help in creating a
consumer-friendly environment. Retail industry in India is at the crossroads but the future of the
consumer markets is promising as the market is growing, government policies are becoming
more favorable and emerging technologies are facilitating operations in India. And this upsurge
in the retail industry has made India a promising destination for retail investors and at the same
time has impelled investments in the real estate sector. As foreign investors cautiously test the
Indian Markets for investments in the retail sector, local companies and joint ventures are
expected to be more advantageously positioned than the purely foreign ones in the evolving
India's organized retailing industry.
Major Players in Retail Industry
India is now emerging as a hot spot for global retail chains. India, which held top spot on Global
Retail Development Index (GRDI), an annual study of retail investment attractiveness among 30
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emerging markets conducted by management consulting firm A.T. Kearney, has yielded its
numero uno position in 2008 to Vietnam– among the fastest growing economies in the South
East Asia. In 2007, Vietnam was ranked fourth on the index. World’s largest retail chain wal-
mart is all set to launch.
List of current retail player’s in the market is quite long but following retail chains can be
considered to dominate a large portion of Indian organized retail sector.
Big Bazaar, Pantaloons, Shopper's Stop, Spencer’s, reliance, Central, Fabmall, Akbarally's
,Family Mart, Food world, Home Stop, Hyper Mart, Lifestyle International, Marks &
Spencer, Spinach, Subhiksha,Vishal Mega Mart, Westside, Big Apple, Sahara unique(shop
for Trend) and 6 ten retail store .
COMPANIES IN INDIAN RETAIL SECTOR
S.
NO.
Companies
1. Reliance Retail
2. Aditya Birla Group
3. Future Group’s
4. Pantaloons Retail India Ltd.
5. Bata India Ltd.
6. Shoppers Stop
7. Music World Entertainment Ltd.
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FDI in Retail Sector
Retailing is the largest private sector industry in the world economy with the global industry size
exceeding $6.6 trillion and a latest survey has projected India as the top destination for retail
investors. And the further upsurge is anticipated in the retail sector as the Government of opened
up 51% FDI in single brand retail outlets. And as the government is in a process to initiate a
second phase of reforms, it is cautiously exploring the avenues for multi-brand segment. The
Government is seeking for these options keeping in view the existing social framework of India
and the will ensure that the entry of global retail giants do not displace the existing employment
in the retail business.
Industry experts are sensitive to the point that local markets have an edge over the retail investors
in India as they have unique advantages such as an understanding of local needs and extended
service like home delivery. As the FDI influence on the Indian retail sector sets in, the total size
of the retail trade is expected to grow extensively in the coming years and the consumer
segments patronizing the big malls will create frenzy for organized retailing predicting a growth
of 25-30 per cent per annum over the next decade. Moreover, Indian retail chains would get
integrated with global supply chains since FDI will bring in technology, quality standards and
marketing thereby, leading to new economic opportunities and creating more employment
generation.
Industry trends for retail sector indicate that organized retailing has major impact in controlling
inflation because large organized retailers are able to buy directly from producers at most
competitive prices. World Bank attributes the opening of the retail sector to FDI to be beneficial
for India in terms of price and availability of products as it would give a boost to food products,
textiles and garments, leather products, etc., to benefit from large-scale procurement by
international chains; in turn, creating jobs opportunities at various levels.
As foreign investors exploring their potentials in the retail sector, are keen on developing malls
in India, the size of organized retailing is expected to touch $30 billion by 2010 or approximately
10 per cent of the total. This has initiated market-entry announcement from some retailers and
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has signaled to international retailers about India’s seriousness in promoting the sector. While
there are reports of international retailers like Wal-Mart analyzing business opportunities in
India; Reliance, the largest Indian conglomerate is investing $3.4 billion to become India’s
largest contemporary retailer. There are also reports of investments for ‘Hypercity Retail’ by
K.Raheja Group to establish 55 hypermarkets by 2015. All these factors will contribute in taking
Indian retail business to unexpected growth based on the consumer preference for shopping in
congenial environs and also availability of quality real estate.
GROWTH OF RETAIL COMPANIES IN INDIA
Growth of Retail Companies in India exhibits the boom in the retail industry in India over
the years. The increase in the purchasing power of the Indian middle classes and the influx
of the foreign investments have been encouraging in the Growth of Retail Companies in India.
Growth of Retail Companies in India
Growth of Retail Companies in India is still not yet in a matured stage with great potentials
within this sector still to be explored. Apart from the retail company like Nilgiri's of
Bangalore, most of the retail companies are sections of other industries that have stepped in
the retail sector for a better business. The Growth of Retail Companies in India is most
pronounced in the metro cities of India, however the smaller towns are also not lagging
behind in this. The retail companies are not only targeting the four metros in India but also is
considering the second graded upcoming cities like Ahmedabad, Baroda, Chandigarh,
Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South
Indian zone have adopted the process of shopping in the supermarkets for their daily
requirements and this has also been influencing other cities as well where many hypermarkets
are coming up day to day.
Reasons for the fast Growth of Retail Companies in India
The retail companies are found to be rising in India at a remarkable speed with the years and
this have brought a revolutionary change in the shopping attitude of the Indian customers. The
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Growth of Retail Companies in India is facilitated by certain factors like -
· existing Indian middle classes with an increased purchasing power
· rise of upcoming business sectors like the IT and engineering firms
· change in the taste and attitude of the Indians
· effect of globalization
· heavy influx of FDI in the retail sectors in India
EMERGINE TRENDS IN INDIAN ORGANIZED RETAIL SECTOR
The emerging trends in the Indian organized retail sector would help the economic growth
in India.
There is a fantastic rise in the Indian organized retail sector in a very short period of time
between 2001 and 2006. Eventually, out of the shadows of the unorganized retail sector,
India has a chance of tremendous economic growth, both in India and abroad.
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The emerging trends in the Indian organized retail sector are also adding up to the
development of the Indian organized retail sector. The relaxation by the government on
regulatory controls on foreign direct investments has added to the process of the growth of
the Indian organized retail sector.
The infrastructure of the retail sector will evolve radically in the recent future. The
emergence of shopping malls are increasing at a steady pace in the metros and there are
further plans of expansion which would lead to 150 new ones coming up in India by 2008.
As the count of super markets is going up much faster than rate of growth in retail sector, it
is taking the lions share in food trade.
The growth of the Indian organized retail sector is anticipated to be heavier than the
growth of the gross domestic product. Alterations in people's lifestyle, growth in income
levels, and encouraging conventions of demography are proving favorable for the new
emerging trends in the Indian organized retail sector.
The success of this retail sector would also lie in the degree of penetration into the lower
income strata to tap the possible customers in the lowest levels of society. The demands of
the buyers would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector will
undergo a transformation. At present the Foreign Direct Investments(FDI) is not
encouraged in the Indian organized retail sector but once the TNC'S get in they
inevitably try to oust their Indian counterparts. This would be challenging to the retail
sector in India.
The trends to follow in the future:
The Indian Organized retail sector will grow up to 10% of total retailing by 2010.
No one single format can be assumed as there is a huge difference in cultures
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regionally.
The most encouraging format now would be the hypermarts.
The hypermart format would be further encouraged with the entry of the TNCs.
SCOPE OF THE INDIAN RETAIL MARKET
The scope of the Indian retail market is immense for this sector is poised for the highest
growth in the next 5 years. The India retail industry contributes 10% of the country’s GDP
and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be
seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394
billion in 2005.
The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the
year 2010. There are under construction at present around 325 departmental stores, 300
new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth
in the Indian retail market. SS
The growth of scope in the Indian retail market is mainly due to the change in the
consumers behavior. For the new generation have preference towards luxury commodities
which have been due to the strong increase in income, changing lifestyle, and demographic
patterns which are favorable.
The scope of the Indian retail market have been seen by many retail giants and thats the
reason that many new players are entering the India retail industry. The major Indian
retailers are:
Pantaloons Retail India Ltd
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Shoppers Stop
Bata India Ltd
Music World Entertainment Ltd
Judging the scope for growth in the India retail industry many global retail giants are also
entering the Indian retail market. They are :
Tesco
Metro AG
Wal- Mart
The scope for growth in the Indian retail market is seen mainly in the following cities:
Mumbai
Delhi
Pune
Ahmedabad
Bangalore
Hyderabad
Kolkata
Chennai
The scope of the Indian retail market is very vast. And for it to reach its full potential the
government and the Indian retailers will have to make a determined effort.
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CHALLENGS FACING THE INDIAN ORGANIZED
RETAIL SECTOR
The challenges facing the Indian organized retail sector are various and these are stopping the
Indian retail industry from reaching its full potential. The behavior pattern of the Indian
consumer have undergone a major change. This have happened for the Indian consumer is
earning more now, western influences, women working force is increasing, desire for luxury
items and better quality. He now wants to eat, shop, and get entertained under the same roof.
All these have lead the Indian organized retail sector to give more in order to satisfy the
Indian customer.
The biggest challenge facing the Indian organized retail sector is the lack of retail space. With
real estate prices escalating due to increase in demand from the Indian organized retail sector,
it is posing a challenge to its growth. With Indian retailers having to shell out more for retail
space it is effecting their overall profitability in retail.
Trained manpower shortage is a challenge facing the organized retail sector in India. The
Indian retailers have difficulty in finding trained person and also have to pay more in order to
retain them. This again brings down the Indian retailers profit levels.
The Indian government have allowed 51% foreign direct investment (FDI) in the India retail
sector to one brand shops only. This have made the entry of global retail giants to organized
retail sector in India difficult. This is a challenge being faced by the Indian organized retail
sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the
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organized retail sector in India indirectly through franchisee agreement and cash and carry
wholesale trading. Many Indian companies are also entering the Indian organized retail
sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing
stiff competition from these global retail giants. As a result discounting is becoming an
accepted practice. This too bring down the profit of the Indian retailers. All these are posing
as challenges facing the Indian organized retail sector.
The Hidden Challenges
Modern retailing is all about directly having "first hand experience" with customers, giving
them such a satiable experience that they would like to enjoy again and again. Providing great
experience to customers can easily be said than done. Thus, challenges like retail
differentiation, merchandising mix, supply chain management and competition from supplier's
brands are the talk of the day. In India, as we are moving to the next phase of retail
development, each endeavor to offer experiential shopping. One of the key observations by
customers is that it is very difficult to find the uniqueness of retail stores. The problem: retail
differentiation.
The next problem in setting up organized retail operations is that of supply chain logistics.
India lacks a strong supply chain when compared to Europe or the USA. The existing supply
chain has too many intermediaries: Typical supply chain looks like:- Manufacturer - National
distributor - Regional distributor - Local wholesaler - Retailer - Consumer. This implies that
global retail chains will have to build a supply chain network from scratch. This might run
foul with the existing supply chain operators. In addition to fragmented supply chain, the
trucking and transportation system is antiquated. The concept of container trucks, automated
warehousing is yet to take root in India. The result: significant losses/damages during
shipping.
Merchandising planning is one of the biggest challenges that any multi store retailer faces.
Getting the right mix of product, which is store specific across organization, is a combination
of
customer insight, allocation and assortment techniques.
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The private label will continue to compete with brand leaders. So supplier's brand will take
their own way because they have a established brand image from last decades and the reasons
can be attributed to better customer experience, value vs. price, aspiration, innovation,
accessibility of supplier's brand.
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FORMATS IN INDIAN ORGANIZED RETAIL SECTOR
This site provides detail information on Formats in Indian Organized Retail Sector. The site
also focuses on the current structure of Indian retail industry.
Formats in Indian Organized Retail Sector and its subsequent successful operation is credited
to India Economic System reform earnest in July 1991. Formats in Indian Organized Retail
Sector is at its nascent stage. The Central Government have ultimately realized the need to
remove the insulation out of the Indian retail sector. Skeptics opines opening up Indian retail
industry would jeopardize way of income for the poor small retailers. In fact, the actual story
is quite heartening for the small time retailer and its vendors.
It is the second fastest growing economy of the world
Potential to be the third largest economy in terms of GDP in next few years
It ranks high amongst the top 10 FDI destinations of the world
Fastest growing tourist market in Asia
World bank states, India to be world’s second largest economy after China by the year
2050
Stable and investor friendly Central Government at the helm of affairs
Introduction of Value Added Tax or VAT and tax reforms
High degree of professionalism and corporate ethics
Excellent Investment opportunities in Indian retail sector and in allied sectors; sure
and high returns on investments
To invest US $130 billion for the development of infrastructure, by year 2010
To attract US $ 10 billion FDI for infrastructure development by the end of year 2008
Bullish stock markets
Hordes of foreign investors are thronging in to invest in Indian retail markets
Highly educated English speaking young workforce
Vibrant and multi cultured cities
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Huge opportunity exists, especially in semi-rural and rural areas
Till date the second largest employer after agriculture sector, for the huge semi-skilled
Indian population
Offers highest shop density in the whole world
Having almost 1,20,000 shops, across the length and breadth of the country
In a nascent stage of development as an organized industry
Formats in Indian Organized Retail Sector -
Supermarkets
Hypermarkets
Department Stores
Modern format individual retailers
Shopping malls
Specialty Chains
INTRODUCTOIN OF RELIACE INDUSTARY :-
Reliance Industries Limited (RIL) is India’s largest private sector company on all major
financial parameters with a turnover of Rs. 2,00,400 crore (US$ 42.69 billion), cash profit of
Rs. 33,041 crore (US$ 7.04 billion), net profit (excluding exceptional income) of Rs. 16,236
crore (US$ 3.46 billion) and total assets of Rs. 245,706 crore (US$ 52.34 billion) as of March
31, 2010.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of
‘World’s Largest Corporations’ and ranks 103rd amongst the world’s Top 200 companies in
terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune. RIL features in the
Forbes Global list of the world’s 400 best big companies and in the FT Global 500 list of the
world’s largest companies. RIL ranks amongst the ‘Worlds 25 Most Innovative Companies’
as per a list compiled by the US financial publication-Business Week in collaboration with the
Operational Excellence is a philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process.
Operational Excellence stresses the need to continually improve by promoting a stronger teamwork atmosphere. Safety and quality improvements for employees and customers lead towards becoming a better enterprise.
VISUAL – MERCHANDISING
Visual merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets.(New Oxford Dictionary of English, 1999, Oxford University Press). This includes combining products, environments, and spaces into a stimulating and engaging display to encourage the sale of a product or service. It has become such an important element in retailing that a team effort involving the senior management, architects, merchandising managers, buyers, the visual merchandising director, designers, and staff is needed.
Visual merchandising starts with the store building itself. The management then decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers.
Many elements can be used by visual merchandisers in creating displays, including colour, lighting, space, product information, sensory inputs such as smell, touch, and sound as well as technologies such as digital displays and interactive installations.
Visual merchandising is not a science; there are no absolute rules. It is more like an art in the sense that there are implicit rules but that these also exist to be broken for striking effects. The main principle of visual merchandising is that it is intended to increase sales, which is not the case with a "real" art.
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Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the store’s image. Visual merchandising is the way one displays 'goods for sale' in the most
attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual
merchandising."
Especially in today’s challenging economy, people may avoid designers/ visual merchandisers
because they fear unmanageable costs. But in reality, visual merchandisers can help economise by
avoiding costly mistakes. With guidance of a professional, retailer can eliminate errors, saving time
and money. It is important to understand that the visual merchandiser is there, not to impose ideas, but
to help clients articulate their own personal style.
Visual merchandising is the art of implementing effective design ideas to increase store traffic and
sales volume. VM is an art and science of displaying merchandise to enable maximum sale. VM is a
tool to achieve sales and targets, a tool to enhance merchandise on the floor, and a mechanism to
communicate to a customer and influence his decision to buy. VM uses season based displays to
introduce new arrivals to customers, and thus increase conversions through a planned and systematic
approach by displaying stocks available.
Recently visual merchandising has gained in importance as a quick and cost effective way to revamp
retail stores.
PURPOSE
Retail professionals display to make the shopping experience more comfortable, convenient and customer friendly by:
Making it easier for the shopper to locate the desired category and merchandise. Making it easier for the shopper to self-select. Making it possible for the shopper to co-ordinate & accessorize. Informing about the latest fashion trends by highlighting them at strategic locations.
Merchandise presentation refers to most basic ways of presenting merchandise in an orderly, understandable, ’easy to shop’ and ‘find the product’ format. This easier format is especially implemented in fast fashion retailers.
VM helps in:
educating the customers about the product/service in an effective and creative way.
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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.
Variances
Planogram A Planogram allows planning of the arrangement of merchandise on a given fixture configuration to support sales through proper placement of merchandise by Style, Option, Size, Price points, etc. It also enables a chain of stores to have the same merchandise displayed in a coherent and similar manner across the chain.
The main purpose is to support ease of applicability to the merchandiser while also increasing selection & enhancing the merchandise display in a neat and organized manner.
Window Displays
A retailer's window is the most controllable element in relation to image and must match their merchandise's target demographic. Windows may communicate style, content, and price point. They can be seductive, exciting or based on emotional stimulus through stimulation, or evocation of all five senses. Another direction taken by retailers who rely on volume sold is price-based selling. These clearly emphasize value for money with easy and obvious ticketing.
The best store windows can generate great excitement and are a talking point. They contribute to the environment by entertaining pedestrians, while simultaneously communicating the products and services on offer.
For a retailer willing to exploit the full potential that a window gives, the image-building process can be exciting and have enormous potential. A fashion retailer, for instance, will often change a window weekly to show the latest items on offer. A glance into a shop's window by a passerby establishes the time of the year and, very likely, a timely contemporary
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event. It might combine seasonal and festive points of the year such as Back-to-school, Spring, Summer, Easter, Christmas, New Year approaching, Diwali, Valentine's Day, Mother's Day etc. At other times the propping may be based on color schemes, materials or cultural themes.
Food Merchandising
Restaurants, Grocery Stores, and C-stores are using visual merchandising as a tool to differentiate themselves in a saturated market. With Whole Foods leading the way, many are recognizing the impact that good food merchandising can have on sales. If a food merchandising strategy considers the 5 senses, it will keep customers lingering in the store, and help them with the buying decision process. Aroma, if pleasant, can be used to help sell product and visual graphics on the boxes and packaging can make them “look” as good as they taste. Texture can be utilized to entice customers to touch, and samples are the best form of food advertising. Especially for large quantity items, the ability to experience the product before committing to the purchase is critical. Food merchandising should educate customers, entice them to buy, and create loyalty to the store.
Executive – summary In this project my task was to do the audit of various reliance retail store in jaipur region based upon some retail benchmarking and to rank the store on various parameter. The parameters of ranking are
1. RED- if the store scores poor.
2. AMBER- if the store scores good and better.
3. GREEN- if the store scores excellent.
POINTS ON WHICH STORES WERE RANKED:-
1. CLEAN PARKING AREA.
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2. CLEAN FRONT FASCADE / CLADDING.
3. CLEAN ONNING.
4. CLEAN GLASS DOOR / FRONT GLAZING / NO PASTING ON FRONT GLAZING.
5. CLEAN BAGGAGE COUNTER.
6. CLEAN- FLOOR, UNDER FIXTURE / BATS, CORNER.
7. CLEAN WALLS – NO SIGNAGE / PASTING ON WALL.
8. FREE AISLE SPACE AND WALKING SPACE FOR CUSTOMER.
13. BAYS- DUST FREE MERCANDISE, TALKERS IN SLEVES AND STAPLE ONLY.
14. CLEAN AND ORGANIZED CSD DESK.
15. ZERO ARTICLES AT TILL.
16. MANAGER ROOM- CLEAN AND ORGANIZED.
17. MANAGER ROOM- ALL FILES STACKED PROPERLY.
18. OPENING TIME- 05:30
19. CLOSING TIME- 11:00
20. GRAHAK DEVO BHAVA.
21. MORNING BRIEFING.
22. EVENING BRIEFING.
23. ACTIVITY FOR THE DAY.
24. CHECK FOR COMPLETION OF ALL MORNING ACTIVITY.
25. CHECK FOR TIMELY INDEND.
26. CHECK FOR NEAR EXPIRY AND DAMAGED PRODUCT.
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27. ALL LICENCES DISPLAYED.
28. SUPPORT OFFICE COMMUNICATION FILE, COMMERCIAL FILE, DAD.
29. DEMARKED BRIEFING AREA.
30. BRIEFING BOARD- DUTY ROASTER, STAFF GROOMING GUIDELINE, VM DISPLAY GUIDELINE, BRIEFING SHEET, STAR OF THE MONTH, BAY WISE CSA ALLOCATION SHEET, STORE ACHIEVEMENT.
31. SEGREGETED- FRESH N DAMAGE, FRESH, CONSUMABLE.
32. 4 AGENDA ADHERENCE.
33. ALL CASH TILL IN WORKING CONDITION.
34. 40% FNV, 40% DAIRY, 20% BEV.
35. CHILLERS- CLEAN AND ORGANIZED, NO FLIES, ZERO STAGNANT WATER INSIDE.
36. VERTICAL STACKING.
37. LOOSE BINS- CLEAN / ¾ FULL WITH SEL’S.
38. STAFF IN UNIFORM AND WELL GROOMED.
39. PUNCTUALITY.
40. PROMO AWARENESS, BAY NO. ALLOCATION.
41. SECURITY GUARD HANDLING BASKET AND TROLLY.
42. LOYALITY %
43. SPEED MORE THAN 8.
44. COMPLAINT REGISTER, FOLLOW UP WITH CUSTOMER AND UPDATED.
45. NAMASTE WITH SMILE.
46. SEL’S ON ALL PRODUCT.
47. 200+ TALKERS.
48. FOLLOW DAILY CHECKLIST ON TALKERS COUNT.
49. END CAPS- ONLY 2 SKU’S/ FAMILY / THEME WITH SIGNAGE
50. PROMO ANNOUNCEMENT SCRIPTS
51. RED DOT SKU AND HHT CORRECTION.
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52. PROPER DISPLAY/ FACING/ EXCESS STOCK N TOP- TOP
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store:- vaishali nagar
manager:- MR. prashant
red 6 amber 8
green
39
Recommendation: (1) this store need to focus on clean floor,
under fixture (2) this store need to focus on promo
awareness (3) Namaste with smile need to be
followed.
red11%
amber15%
green74%
Chart Title
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store:- BSM manager:- jitender
rathore red 5 amber 1 green 47
Recommendation:- (1) This store could be considered best
among all. (2) Need to follow Namaste with
smile. (3) Need to run promo announcement
script. (4) need to focus on dust free merchandize.
red9%
amber2%
green89%
Chart Title
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store:- khatipura
manager:- yitendra singh
red 9 amber 5
green
39
Recommendation:- (1) store need to focus on dust free merchandize. (2) need to focus on vertical stacking. (3) need to follow daily checklist on talker count. (4) this store could be considered partially green.
red 17%
amber9%
green74%
Chart Title
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store:- NSR
manager:- Bhupesh khatri
red 8
amber 7
green 38
Recommendation:-
(1) store need to focus on dust free marchandize.
(2) need to focus on chiller hygiene. (3) need to follow daily checklist on talker count.
(4) this store could be considered partially green.
red15%
amber13%
green72%
Chart Title
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store:- khirni phatak
manager:- MR. jitender
red 9
amber 5
green
39
Recommendation:-
(1) Need to display all licenses. (2) Need to check daily checklist on talkers count.
(3) File need to be stacked properly. (4) need to focus on dust free merchandize.
red17%
amber9%
green74%
Chart Title
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store:- pareek college road
manager:- yogesh soni
red 4
amber 4
green
45
Recommendation
(1) this store could be considered one of the good store. (2) this store need to maintain loyalty.
(3) need to focus on talkers. (4) need to replace damage data strips.
red7%
amber8%
green85%
Chart Title
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store:- Raja park
manager:- MR. pradeep
red 8
amber 8
green 37
Recommendation:-
(1) need to focus on vertical stacking. (2) need to chech daily checklist on talkers count.
(3) promo awareness was poor among employee. (4) need to focus on dust free merchandize.
red 15%
amber 15%
green70%
Chart Title
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store:- vidhyadhar nagger
manager:- sharvan rathore
red 14
amber 8
green
31
Recommendation:-
(1) this store could be considered one of the poor store. (2) this store need to focus on VM.
(3) need to follow punctuality. (4) need to focus on dust free merchandize.
(5) need to focus on vertical stacking. (6) need to follow daily checklist on talkers count.
red26%
amber15%
green59%
Chart Title
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store-: adarsh nagger manager-kamal Sharma
red 5
amber 11
green 37
Recommendation:-
(1) store need to focus on dust free marchandize. (2) need to focus on vertical stacking.
(3) need to follow daily checklist on talker count. (4) this store could be considered partially green.
red9%
amber21%
green70%
Chart Title
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store-: barkat nagger
manager- Mr. amna
red 6
amber 9
green 40
Recommendation
(1) this store could be considered one of the good store. (2) this store need to maintain loyalty.
(3) need to focus on talkers. (4) need to replace damage data strips.
red
amber
green
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store-: gopalpura
manager- dishant god
red 4
amber 13
green
36
Recommendation:-
(1) Need to follow Namaste with smile
(2) Need to run promo announcement script. (3) need to focus on dust free merchandize.
red8%
amber24%
green68%
Chart Title
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store-: Haldiya plaza manager- yashasvi divedi
red 8
amber 8
green 37
Recommendation:-
(1) store need to focus on dust free marchandize.
(2) need to focus on vertical stacking.
(3) need to follow daily checklist on talker count.
(4) this store could be considered partially green.
red 15%
amber15%
green70%
Chart Title
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store-: jawahar nagar manager-: mr. dheeraj
red 9
amber 10
green
34
Recommendation:
(1) this store need to focus on clean floor, under fixture (2) this store need to focus on promo
awareness 3) Namaste with smile need to be followed.
red17%
amber19%
green64%
Chart Title
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store-: kaleen
red 8
amber 14
green
31
Recommendation:-
(1) need to focus on vertical stacking. (2) need to chech daily checklist on talkers count.
(3) promo awareness was poor among employee. (4) need to focus on dust free merchandize.
red15%
amber26%green
59%
Chart Title
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store-; kishanpol bazar manager- amar singh
red 7
amber 10
green 36
Recommendation:-
(1) this store could be considered one of the poor store. (2) this store need to focus on VM.
(3) need to follow punctuality. (4) need to focus on dust free merchandize.
(5) need to focus on vertical stacking.
red13%
amber19%
green68%
Chart Title
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store-: maharani farm manager- anurag shukla
red 5
amber 9
green 40
Recommendation:-
(1) need to chech daily checklist on talkers count. (2) file need to be stacked properly.
(3) need to focus on dust free merchandize.
red9%
amber17%
green74%
Chart Title
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store-: mahesh nagger managar- MR. jitendra
red 6
amber 12
green 35
Recommendation:-
(1) store need to focus on dust free marchandize. (2) need to focus on chiller hygiene.
(3) need to follow daily checklist on talker count. (4) this store could be considered partially green.
red11%
amber23%
green66%
Chart Title
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store-: sanganer manager- abhijeet yadav
red 6
amber 8
green
39
Recommendation:-
(1) store need to focus on dust free marchandize. (2) need to focus on chiller hygiene.
(3) need to follow daily checklist on talker count. (4) this store could be considered partially green.
red 11%
amber15%
green74%
Chart Title
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store-: shipra path
manager- abhishek saini
red 7
amber 13
green
33
Recommendation:-
(1) store need to focus on dust free marchandize. (2) need to focus on chiller hygiene.
(3) need to follow daily checklist on talker count. (4) this store could be considered partially green.
red13%
amber25%
green62%
Chart Title
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store-: subhash chowk
manager- ajay dixit
red 7
amber 15
green 31
Recommendation:
(1) this store need to focus on clean floor, under fixture (2) this store need to focus on promo awareness
(3) Namaste with smile need to be followed.
red13%
amber28%green
59%
Chart Title
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store-: vijay path
red 7
amber 11
green
35
Recommendation:-
(1) This store could be considered best among all. (2) Need to follow Namaste with smile.
(3) Need to run promo announcement script. (4) need to focus on dust free merchandize.
red13%
amber21%
green66%
Chart Title
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store-: jhotwara manager- jitendra dixit
red 5
amber 8
green
40
Recommendation:-
(1) need to display all licences. (2) need to chech daily checklist on talkers count.
(3) file need to be stacked properly. (4) need to focus on dust free merchandize.
red9% amber
15%
green76%
Chart Title
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store-: murlipura manager- vikram singh
red 5
amber 9
green 39
Recommendation
(1) This store could be considered one of the good store. (2) This store needs to maintain
loyalty. (3) Need to focus on talkers. (4) Need to replace damage data strips.
red9%
amber17%
green74%
Chart Title
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store-: shastri nagger manager- rajeev Sharma
red 5
amber 7
green
41
Recommendation:-
(1) Need to focus on vertical stacking. (2) Need to check daily checklist on talkers count.
(3) promo awareness was poor among employee (4) Need to focus on dust free merchandize.
red10% amber
13%
green77%
Chart Title
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CONCLUSION:-
STRENGTH: - 1. Man power and Resources are the biggest strength that stores are equipped with. 2. Team work is also a one of the powerful tool that stores have with them.
WEAKNESS : - 1. Customer care is one of the weak points of the store. 2. Promo announcement script and Namaste with smile. 3. Dust free merchandize.
OPPORTUNITY: - 1. Star of the month award is one of the powerful tool gives the staff an opportunity
to show their skill. 2. Marked down zone is also an opportunity to stores that they can use to lure new
customer and increase their sales.
THREAT: - 1. Expiry is one of the kinds of threat that shrink the store profit and shelf space. 2. Strong supply chain management of other retail house that helps them in
providing some goods at cheaper rate than Reliance.