1
“Comparative Study on Profitability Drivers of Indian Retail Industry and their     formats” and “challenges to unorganize...
PHASE-IScope of the Study                   14Research Methodology                 15 - 16Limitations of the Study        ...
ACKNOWLEDGEMENTFirst of all we would like to thank Mrs. Ambika Rathi (FacultyMember) for giving us the opportunity to do t...
formats” and “threats to unorganized retails in the current scenario inIndia.” Her extended views on the Indian Retail Ind...
Industry and their formats” and “challenges to unorganized retails inthe current scenario”. For this study we visited the ...
Retailing is emerging as a sunrise industry in India and its presentlythe largest employer after agriculture. In the year ...
Today’s Retail in IndiaComprised of organized and traditional retail formats, Indian Retailmarket is estimated to be worth...
to them.Some of the key areas in which retail boom will prevail in townsbeyond metros and even large cities will include f...
Key Points of Indian Organised Retail                             Industry1. Potential to be the third largest economy in ...
17. Having almost 1,20,000 shops, across the length and breadth of the   country.Formats in Indian Organized RetailSector1...
5. Specialty Chains: A Specialty Chains is numbers stores which are    specialized in a specific range of merchandise and ...
Hypermarkets        Star India Bazaar       1           N/ATrent India    Ltd          Books & Music                      ...
PHASE-IIIAnalyze the threats and challenges to unorganized retailers in thecurrent scenario of competitive market.Objectiv...
SCOPE OF THE STUDY The scope of my study restricts itself to analyze the organisedretailer’s profitability drivers on the ...
RESEARCH METHODOLOGYThis chapter describes the methodology of the study. This project isbased on information collected fro...
relationship exists between variables. For the purpose of presentstudy a related sample of stores were selected on the bas...
 Secondary Source: The secondary data was collected from      internet and references from Library and various journals o...
 The chance of biased response can’t be eliminated though all      necessary steps were taken to avoid the same.       RE...
Understand the value of Indian organised retail Industry on the basisof how customer flow generates the revenue related to...
(iii)   Lifestyle International, Noida.(iv)    Various unorganized retailers in Delhi.(v)     The Great India Place, Noida...
VISHAL MEGA MARTWhat started as a humble one store enterprise in 1986 in Kolkata istoday a conglomerate encompassing 183 s...
catered to under one roof. It is covering about 29, 90, 146 sq. ft. in24 states across India. Each store gives you interna...
PERCENTAGE OF TYPES OF CUSTOMER DEPARTMENT WISE                              GARMENT       GIFTS     MUSIC         CARDS T...
MUSIC DEPARTMENT                                                             300                              Inter-depart...
CARDS DEPARTMENT                                             75000                            MUSIC DEPARTMENT            ...
The value of the stock of the others departments are relatively lowerthan garments departments.The stock maintained in the...
GIFTS DEPARTMENT                                   5000                         10000CARDS DEPARTMENT                     ...
FACTS AND FINDINGS                     29
From the above analysis its found that the average customers in theall departments are the Middle Grade income level custo...
Product lines and the quality of the products in the Gifts Section arebasically for the high and medium grade income level...
range should be such as the customer feel free to buy original cd’s.Another point is that there should be a balance betwee...
BIG BAZAAR             33
Pantaloon Retail (India) Limited, is India’s leading retailer thatoperates multiple retail formats in both the value and l...
ANALYSIS OF THE STUDY      Types of Customer:      In the Indian Retail Scenario Big Bazaar has a great success to create ...
the major brands in garments industry. Flow of high level of      customers in music section is better than the others dep...
From the above figures its executed that flow of customer in garmentdepartments is relatively higher than the others depar...
The garment section is divided into Men, women and kids section.They have also a discount section only for the garments. I...
Revenue generated by the different departments:To find out the profitability drivers we have compared the revenuegenerated...
From the above study its revealed that at the time of inception of theorganised retail in India in the year of 2004-05, on...
fact is that if you buy 2 products will get 1 free as total you will get 3.It’s a very strategic and attractive offer spec...
Music DepartmentOverview:Music section consist of Music CD’s, Game CD & DVD’s and also MovieDVD’s.Findings:Big Bazaar has ...
Suggestions:Though the demand of cards decreasing day by day but there are alsosome others events rather than the 25th & a...
LIFESTYLELifestyle International (P) Ltd is part of the Landmark Group, aDubai – based retail chain. With over 30 years’ e...
Business World – IMRB Most Respected Company Awards survey ratedLifestyle as the ‘Most Respected Company in the Retail Sec...
From the above analysis its revealed that though a very few numbers   of low grade income level customers are visiting the...
In lifestyle we have found that the average customer flow liesbetween 1200 to 1500 on an average high customer flow day.Th...
The garment section is divided into Men, women and kids section aswell as lifestyle accessories and shoe wears. They have ...
Revenue in 2008-09 Department  5000000  4000000  3000000  2000000  1000000          0                 GARMENTS            ...
Suggestions:They are focusing a very few Indian customers and the most of theIndian consumers can’t afford this price rang...
COMPARITIVE ANALYSIS OF THE               STORESOn the basis of customer flows:We have considered the average of the high ...
Vishal Mega Mart: From the study its revealed that the average   customer flow is medium grade income level customers and ...
Vishal Mega Mart: The product in the garment section isn’t exclusiveand meant for the medium to average grade income level...
Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow and revenue from this section is v...
Vishal Mega Mart: Stock in this department is taken care asrelatively low and it’s considered as a seasonal business.Big B...
income groups though they are focusing on this income group onlyand a result they failed to satisfy their customer needs.B...
IN 2004-05: At the time of sunrise of organised retail industry in India, the scenario was not been like present days. At ...
Vishal Mega Mart: Though the revenue per customer of the Vishalmega Mart increased from 2004-05 to 2008-09 but the revenue...
ASIA PACIFIC INSTITUTE OF MANAGEMENT STUDIES    (This research is done only for the education purpose. There is no financi...
D. Flow of customer per day in your store:        (i) Below 500                      (ii) 500 to 1000               (iii) ...
ERP             Online Adv                 SAP/Tally                   Information SecurityI. Does the good atmosphere in ...
Revenue in 2008-09       (ii) Medium grade income level:               Revenue in 2004-05                                 ...
Revenue in 2008-09       (ii) Medium grade income level:               Revenue in 2004-05                                 ...
(i) High grade income level:                  Revenue in 2004-05                                                     Reven...
(i) High grade income level:             Revenue in 2004-05                                                Revenue in 2008...
Thanking for your valuable time and support.                                               66
PHASE-II           67
THE GREAT INDIA PLACEFormats of the stores in the Great India Place:  SRL           NAME OF THE STORE            TYPE OF T...
7   BOMBEY SELECTION       SHOP 8   M & B FOOTWARE         SPECIALITY CHAIN 9   NAKSHATRA              SPECIALITY CHAIN10 ...
47   GLOBUS                    SHOP48   PUMA                      SPECIALITY   CHAIN49   MOUSTACHE                 SPECIAL...
86   MASAKALI              SHOP87   MY DOLLER STORE       SPECIALITY CHAIN88   JUMBO ELEVTRONIC      SHOP89   STAPLES     ...
AVISHEK SAHU-H-03                 DEBOJIT ROY H-66                KRISHNAKANT PANDEY H-25BISWAJIT GHOSH H-12             S...
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  1. 1. 1
  2. 2. “Comparative Study on Profitability Drivers of Indian Retail Industry and their formats” and “challenges to unorganized retails in the current scenario”. Submitted to: Mrs. Ambika Rathi INDEXCONTENTS PAGE NOAcknowledgement 4Preface 5Executive Summary 6Today’s Retail in India 7-8Key Points of Indian Organised Retail Industry 9Formats in Indian Organized Retail Sector 10Top Major Retail Players in India 11Objectives of the Study 12 2
  3. 3. PHASE-IScope of the Study 14Research Methodology 15 - 16Limitations of the Study 17Research problem and its relevance 18Name of the Stores 19Vishal Mega Mart 20 - 30Big Bazaar 31 - 40Lifestyle 41 - 48Comparative analysis of the Stores 49 - 56PHASE-IIGreat India Place 58 - 61 3
  4. 4. ACKNOWLEDGEMENTFirst of all we would like to thank Mrs. Ambika Rathi (FacultyMember) for giving us the opportunity to do the project oncomparative study on “Indian organised Retail Industry and their 4
  5. 5. formats” and “threats to unorganized retails in the current scenario inIndia.” Her extended views on the Indian Retail Industry help us withassistance, support and council without, which this project would nothave been materialized.We would also like to express our special thanks to all the Staffs of theVishal Mega Mart, Big Bazaar, Life Style and Pantaloon Retails andalso the various owners of Kirana Stores for their excellent supportand co-ordination without which this study could not be fulfilled.ThanksGROUP-8H-SECTION.Asia Pacific Institute of Management Studies. PREFACEWe are lucky that, we got the opportunity for making the projectreport on “Comparative Study on Profitability Drivers of Indian Retail 5
  6. 6. Industry and their formats” and “challenges to unorganized retails inthe current scenario”. For this study we visited the Malls, HyperMarkets and Departmental Stores and in New Delhi and Noida and talkto various unorganized retailers (Kirana stores) to study the problemsdefined. This report is written account of what we learnt andexperienced during the survey. We wish, those going through it willnot only find it readable but also get as useful Information. The mainlimitation of our experience was that as the above said organisedretails industry is reserved with corporate formalities, we had faced alittle bit difficulties to fill the questionnaire completely. Executive Summary 6
  7. 7. Retailing is emerging as a sunrise industry in India and its presentlythe largest employer after agriculture. In the year 2004, the size ofIndian organized retail industry was Rs 28,000 Crores, which was only3% of the total retailing market.The sunrise of the organised retailers in India creates a major turn inthe retail industry. Top major organised retail players are increasingtheir market share day by day. Their main focus is based on FMCGand consumer durables. With modernization, Indian culture is apingthe western dressing sense and lifestyle and these techniques ispromoting by the Retailers and by this they are generating aremarkable revenue from the Indian consumers. 7
  8. 8. Today’s Retail in IndiaComprised of organized and traditional retail formats, Indian Retailmarket is estimated to be worth US$ 511 billion, and is poised to growto US$ 833 billion by 2013. The organised retail that currentlyaccounts for less than 5 per cent of the total retail market is expectedto register a compound annual growth rate (CAGR) of 40 per cent andswell to US$ 107 billion by 2013.A report by global consultancy firm, AT Kearney said "The consumerspending in India has increased by an impressive 75 per cent in thelast four years and will quadruple in the next 20 years." Moreover,India recently topped the Nielsen Global Consumer Confidence study,conducted by Nielsen, a market research company. The biannualreport revealed that Indians are "the most optimistic lot globally whothink that their country will be out of the economic recession in thenext twelve months."However the size of Organised Retail in India will exceed US$22bnmark from current level of about US$4bn with its space requirementtouching over 220mn sq. ft., by 2010, according to The AssociatedChambers of Commerce and Industry of India (ASSOCHAM). In aPaper brought out by ASSOCHAM on `Retail Scenario in India and ItsRelated Issues’, it has been stated that approx. 40mn sq. ft. iscurrently generating a business of about US$4bn in organized retail.India’s vast middle-class and its almost untapped retail industry arekey attractions for global retail giants wanting to enter newer marketsand India provides for the ideal locations. Since, Delhi and its suburbshave so far seen the growth of 100 bigger and smaller malls, roughly600 new malls are coming up in other metropolis and large townshipsin which less than 35% of retail business is going to be transacted.It is seen that over 1000 malls are in the pipelines for smallertownships in which the retail sector is projected to grow at over 60%because of ample availability of land and increased purchasing powerof the folks living in those areas because of increased economicactivities. Naturally, the large players will prefer to go there and putup their shops by sourcing their supplies from the places convenient 8
  9. 9. to them.Some of the key areas in which retail boom will prevail in townsbeyond metros and even large cities will include food items, FMCGproducts, grocery, sportswear, outerwear, tailored clothing, eyewear,watches, footwear and accessories and the like. The retail businessthat will pre-dominantly stay with malls put up in metros and largecities will include apparel, pharmaceuticals, luxury goods andconsumer durables.Changes should be brought about in Agricultural Produce MarketingCommittee (APMC) Act (a key contributor to the large number ofintermediaries) such as the introduction of contract farming andallowing direct procurement from farmers by retail owners so that adirect chain is established between the user and farmers for theirequal benefits. It also highlights, pointing out that even in the case ofnon-agricultural products such as apparel, FMCG and generalmerchandise, the situation is far from ideal.The key cause for inefficiency is the poor integration between theretailer and supplier. None of the retailers, in view of ASSOCHAM hasso far an automated system for information exchange with theirsuppliers. In developed countries, retailers practice VendorManagement Inventory (VMI) systems, where the supplier has accessto the point of sales data of the retailer and plans automaticreplenishments responding to the stocks available at the retailer. 9
  10. 10. Key Points of Indian Organised Retail Industry1. Potential to be the third largest economy in terms of GDP in next few years .2. It ranks high amongst the top 10 FDI destinations of the world .3. Fastest growing tourist market in Asia.4. World bank states, India to be worlds second largest economy after China by the year 2050.5. Stable and investor friendly Central Government at the helm of affairs.6. Introduction of Value Added Tax or VAT and tax reforms.7. High degree of professionalism and corporate ethics.8. Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and high returns on investments.9. To invest US $130 billion for the development of infrastructure, by year 2010.10. Bullish stock markets.11. Hordes of foreign investors are thronging in to invest in Indian retailmarkets.12. Highly educated English speaking young workforce.13. Vibrant and multi cultured cities.14. Huge opportunity exists, especially in semi-rural and rural areas.15. Till date the second largest employer after agriculture sector, for thehuge semi-skilled Indian population.16. Offers highest shop density in the whole world. 10
  11. 11. 17. Having almost 1,20,000 shops, across the length and breadth of the country.Formats in Indian Organized RetailSector1. Supermarkets: A supermarket, also called a grocery store is aself-service store offering a wide variety of food and householdmerchandise, organized into departments. It is larger in size and hasa wider selection than a traditional grocery store and it is smaller thana hypermarket or superstore.2. Hypermarkets: A hypermarket is a superstore which combines asupermarket and a department store. The result is a very large retailfacility which carries an enormous range of products under one roof,including full lines of groceries and general merchandise. In theory,hypermarkets allow customers to satisfy all their routine weeklyshopping needs in one trip.3. Department Stores: A department store is a retail establishmentwhich specializes in satisfying a wide range of the consumers personaland residential durable goods product needs; and at the same timeoffering the consumer a choice multiple merchandise lines, at variableprice points, in all product categories. Department stores usually sellproducts including apparel, furniture, appliances, electronics, andadditionally select other lines of products such as paint, hardware,toiletries, cosmetics, photographic equipment, jewelery, toys, andsporting goods. Certain department stores are further classified asdiscount department stores. Discount department stores commonlyhave central customer checkout areas, generally in the front area ofthe store. Department stores are usually part of a retail chain of manystores situated around a country or several countries.4. Shopping malls: A shopping mall or shopping centre is a buildingor set of buildings which contain retail units, with interconnectingwalkways enabling visitors to easily walk from unit to unit. 11
  12. 12. 5. Specialty Chains: A Specialty Chains is numbers stores which are specialized in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. They differ from department stores and supermarkets which carry a wide range of merchandise. TOP MAJOR RETAIL PLAYERS Total Retail No.of Retailer Existing formats Brand Names Space Stores (‘000 sq ft) Department store Pantaloon 13 1,948 PantaloonRetail Indian Hypermarket Big Bazaar 450 5000 Ltd Seamless Malls Central 12 1200 Hyper markets Spencer’s 400 6000 RPG Retail Music Stores Music world 225 230 books Stores Books and Beyonds Department stores Shopper’s Stop 20 1000 Shopper’s Books & Music Crosswords 33 N/A Stop Ltd. Stores Home furnishing Home Stop N/A N/A LandmarkGroup (Based Department Stores Lifestyle 8 370 in Dubai) Department Stores West side 19 350 12
  13. 13. Hypermarkets Star India Bazaar 1 N/ATrent India Ltd Books & Music Land Mark 4 N/A StoresVishal Group Hyper markets Vishal Mega Mart 183 13,45 OBJECTIVES OF THE STUDY Phase-I This project is based on the comparative study of Indian Retail Industry on the basis of three parameters: (a) Customer Flows. (b)Revenue per Customer. (c) Stock of the Store. Objective: Know the customer flow and revenue generated by the stock from the each department in the organised retail sector within a closer view. PHASE-II Determine various shops and classify them into the Retail formats. Objective: Know the retail formats and what are the difference between those categories. 13
  14. 14. PHASE-IIIAnalyze the threats and challenges to unorganized retailers in thecurrent scenario of competitive market.Objective:Understand the sector of unorganized retails, find out the challengesfaced by them and determine what are the measures taken by theseretailers to survive in this current scenario. PHASE-I 14
  15. 15. SCOPE OF THE STUDY The scope of my study restricts itself to analyze the organisedretailer’s profitability drivers on the basis of Garments, Gifts, Cardsand Music Department where as in the recent trend its seen that thekey players in this Industry are more emphasizing on the Garments,Personal Grooming, Home furnishings, Life style and FootwearDepartments in their Stores. 15
  16. 16. RESEARCH METHODOLOGYThis chapter describes the methodology of the study. This project isbased on information collected from primary sources. After thedetailed study, an attempt has been made to present comprehensiveanalysis of four major organised retailers. The data had been used tocover various aspects like inter-departmental customer flows, revenueper customer and value of the stock in the various departments. Incollecting requisite data and information regarding the topic selected,we went to the Vishal Mega Mart, Life Style, and Big Bazaar of NewDelhi and Noida and collected the data.Research design:The study is based on descriptive research design because the datawere collected to reveal accurate descriptions of variables related tothe decisions being faced, without demonstrating that some 16
  17. 17. relationship exists between variables. For the purpose of presentstudy a related sample of stores were selected on the basis ofconvenience.Sample Size and Design:A sample of 4 stores was taken on the basis of convenience.Research Period:Research work is only carried for 1 week.Research Instrument:This work is carried out through self-administered questionnaires. Thequestions included were close ended with Ordinal-polytomousresponse scale.Data Collection:The data, which is collected for the purpose of study, is divided into 2bases:  Primary Source: The primary data comprises information survey of “Comparative Study on Profitability Drivers of India’s Retail Industry”. The data has been collected directly from respondent with the help of structured questionnaires. 17
  18. 18.  Secondary Source: The secondary data was collected from internet and references from Library and various journals on retail industry.Data Analysis:The data is analyzed on the basis of suitable tables by usingmathematical techniques. The technique that we have used is bargraphs, pie charts, with MS-EXCEL and SPSS. LIMITATIONS OF THE STUDYIn attempt to make this project authentic and reliable, every possibleaspect of the topic was kept in mind. Nevertheless, despite of factconstraints were at play during the formulation of this project. Themain limitations are as follows:  Due to limitation of time only few retail stores are taken into consideration of this study. So the sample of retailers was not enough to generalize the findings of the study.  The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less.  Concern person from the organised retail stores were hesitant to disclose the true facts as the data related to strategic secrets. 18
  19. 19.  The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same. RESEARCH PROBLEM AND ITS RELEVANCERESEARCH PROBLEM:Determine the profitability drivers on the basis of: (a) Customer flows. (b) Revenue per Customer. (c) Stocks value of the store.RELEVANCE OF THE RESEARCH: 19
  20. 20. Understand the value of Indian organised retail Industry on the basisof how customer flow generates the revenue related to its value ofstock and analyze the ways to improve each of three dimensions. Name of the StoresThe study is being conducted on: (i) Vishal Mega Mart, Sarita Vihar. (ii) Big Bazaar, Noida. 20
  21. 21. (iii) Lifestyle International, Noida.(iv) Various unorganized retailers in Delhi.(v) The Great India Place, Noida. 21
  22. 22. VISHAL MEGA MARTWhat started as a humble one store enterprise in 1986 in Kolkata istoday a conglomerate encompassing 183 showrooms in 110 cities / 24states. India’s first hyper-market has also been opened for the Indianconsumer by Vishal. Situated in the national capital Delhi this storeboasts of the singe largest collection of goods and commodities soldunder one roof in India.The group’s philosophy is integration and towards this end hasinitiated backward integration in the field of high fashion by setting upa state of the art manufacturing facility to support its retail endeavors.Vishal is one of fastest growing retailing groups in India. Its outletscater to almost all price ranges. The showrooms have over 70,000products range which fulfills all your household needs, and can be 22
  23. 23. catered to under one roof. It is covering about 29, 90, 146 sq. ft. in24 states across India. Each store gives you international qualitygoods and prices hard to match. The cost benefits that is derived fromthe large central purchase of goods and services is passed on to theconsumer.There are three classes of consumers the lower class is restricted onlyto unorganized retail, upper class consumers are limited andscattered. According to the Vishal Retailing Strategy, they aretargeting middle class as it is the largest consumer base in India andcan be sold off then in large volumes because with the increasingpurchasing power the middle class is shifting towards organized retail.The group had a turnover of Rs. 1463.12 million for fiscal 2005, underthe dynamic leadership of Mr.Ram Chandra Agarwal . The group had aturnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 millionfor fiscal 2007. ANALYSIS OF THE STUDYTypes of Customer:There are three types of consumer in the Indian retail market. Vishalmega mart is a firm believer of that the Middle class and upper middleclass are the potential customer in their product categories.Here we are analyzing which income level of customers are generallytend to purchase the products department wise: 23
  24. 24. PERCENTAGE OF TYPES OF CUSTOMER DEPARTMENT WISE GARMENT GIFTS MUSIC CARDS TYPES OF CUSTOMER SECTION SECTION SECTION SECTIONHIGH GRADE INCOME LEVEL 10 40 60 0 MEDIUM GRADE INCOME LEVEL 60 50 30 50AVERAGE GDARE INCOME LEVEL 30 10 10 50 TYPES OF CUSTOMER 100% 80% 60% AVERAGE GDARE INCOME LEVEL MEDIUM GRADE INCOME LEVEL 40% HIGH GRADE INCOME LEVEL 20% 0% GARMENT GIFTS MUSIC CARDS SECTION SECTION SECTION SECTION From the above details its found that the customer flows in the garment section is relatively high rather than the other sections. The focus customer group is basically medium level income group of customers. Flow of customers in different departments: Here we have analyzed the flow of customers per day basis. For this reason we have studied customer flows on an average of high customer flow days. Inter-Department Customer Flow DEPARTMENT Number of Customer GARMENTS DEPARTMENT 900 GIFTS DEPARTMENT 250 CARDS DEPARTMENT 100 24
  25. 25. MUSIC DEPARTMENT 300 Inter-department Customer Flow 300MUSIC DEPARTMENT 100CARDS DEPARTMENT 250GIFTS DEPARTMENT GARMENTS 900 DEPARTMENT 0 100 200 300 400 500 600 700 800 900 1000 Number of CustomerFrom the above figures its executed that flow of customer in garmentdepartments is relatively higher than the others departments. Todetermine the above study we have considered the customers whoare spending their money on purchase of products of the above saiddepartments. Its revealed at the time of study that they have 10 cashcounters and they are making bills of more than 280 bills per day percounter on the above said days.Value of Stock in the different departments:We have chosen 4 departments from Vishal Mega Mart and estimatedthe valuation of average stock with the assumption details provided bythe branch operation stuffs. VALUE OF THE STOCK DEPARTMENT (Rs) GARMENTS DEPARTMENT 10340000 GIFTS DEPARTMENT 250000 25
  26. 26. CARDS DEPARTMENT 75000 MUSIC DEPARTMENT 200000 Value of the stock in the Garments Departments: Value of Stock 525000 Garment Deapartment others department 10340000 The garment section is divided into Men, women and kids section. The value of the stock in the garments department is relatively much higher than the others departments. The value of stock in winter season jumps to 18 to 20 crore and its 3times higher than others season as normally they are maintaining a stock of 6 crore in the others time. Value of the stock of the others departments: Value of t he St ock in Ot her s Depar t m ent30000025000020000015000010000050000 0 GIFTS DEPARTMENT CARDS DEPARTMENT MUSIC DEPARTMENT 26
  27. 27. The value of the stock of the others departments are relatively lowerthan garments departments.The stock maintained in the gifts section, basically maintained for thehigh and medium level income customers.In the cards department the stock increases at the time of Christmasan New year eve as it’s a seasonal business according to the VishalMega Mart.Music department is consisting of Music, movie and game cd & dvd’s.Its found that the stock of game cd & dvd’s is higher than the others.Revenue generated by the different departments:To find out the profitability drivers we have compared the revenuegenerated by different departments on the basis of 2004-05 to 2008-09. For this study we have considered average revenue of a highcustomer flow day by the all income level customers. DEPARTMENT 2004-05 2008-09GARMENTS DEPARTMENT 50000 180000 27
  28. 28. GIFTS DEPARTMENT 5000 10000CARDS DEPARTMENT 2000 1800MUSIC DEPARTMENT 1800 5000 TOTAL 58800 196800 REVENUE PER DEPARTMENT 196800 200000 180000 150000 100000 2004-05 58800 2008-09 50000 50000 500010000 2000 1800 1800 5000 0 GARMENTS GIFTS CARDS MUSIC TOTAL DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENTFrom the above study its revealed that at the time of inception of theorganised retail in India in the year of 2004-05, only the high gradeand upper medium grade income level customers were tends to go tothe retails. So the maximum portion of revenues generated fromthese two groups only.In the case of garments, gifts and music departments as the stock isincreased, the revenue is also increased with the market demandstudy of the year of 2004-05 to2008-09. and also its seen that the product category in the gifts andmusic department is relatively changing with the increasing demand ofnew innovated products.A measurable changes found in the cards department is that therevenues as well as the stock is decreasing day by day because ofchanging customer preferences towards information technologyenabled services like SMS, MMS & E-mails. 28
  29. 29. FACTS AND FINDINGS 29
  30. 30. From the above analysis its found that the average customers in theall departments are the Middle Grade income level customers asVishal is mainly focusing in this segment of customers.Garment DepartmentOverview:Product lines and the quality of the products in the Garment Sectionare basically for the medium and average grade income level peopleand price range in this section is averagely lies between Rs.250 to600.Findings:In the garment section we have found that products categories arenot focusing the high grade income level customers as the brandconsciousness not presents in the floors. The high grade income levelpeople are very conscious about the brand that they are using.Basically they are very conscious about the brand rather than thequality which isn’t present in this department.Suggestions:Vishal is strategically targeting the middle class customer but there isalso a rash of high grade income level customers in their stores. Theyshould focus on this aspect that they can turn this mob into potentialcustomer by introducing a various range of high class products in thegarment department.Gifts DepartmentOverview: 30
  31. 31. Product lines and the quality of the products in the Gifts Section arebasically for the high and medium grade income level people and pricerange in this section is averagely lies between Rs.500 to 800.Findings:In the gifts section we have found that stock of gift items is very lowand also products categories are not focusing to low grade incomelevel customers and the gifts department is referred to high classproducts.Suggestions:They should focus on this aspect by introducing more stocks and alsoa lower price range products in the gifts section so that they can alsogenerate revenue from lower grade income level customers.Music DepartmentOverview:Music section consist of Music CD’s, Game CD & DVD’s and also MovieDVD’s. Product lines and the quality of the products in the MusicSection are basically for the high and medium grade income levelpeople and price range in this section is averagely lies between Rs.150to 500.Findings:In the Music section we have found that they are mainly focusing onthe Game CD’s and DVD’s and also the price range is also high. Againthe collection of game cd and dvd’s is considerable but in the case ofIndian Music CD’s the stock level is not also upto the customer’ssatisfactory level.Suggestions:Vishal should concentrate on that the music industry is passingthrough a high competitive market with piracy world so the price 31
  32. 32. range should be such as the customer feel free to buy original cd’s.Another point is that there should be a balance between the stock oftheir product lines in the music department.Cards DepartmentOverview:In the Indian scenario cards are not very popular and a seasonalbusiness according to the floor managers and management of thestore. Also the demand is decreasing day by day with the increase ofITES.Findings:In Vishal’s prospect we have found that it’s a seasonal business andthey only give an emphasized focus at the time of Christmas Day andNew Year. Also the high grade income level people tends to gospecialized cards stores so only a few numbers of middle and averageincome level customers who come to others departments sometimesseek for the cards.Suggestions:Though the demand of cards decreasing day by day but there are alsosome others events rather than the 25th & and 31st eve. So a step canbe taken by introducing low range of cards attached with the giftssection to greet the wishes all the time. 32
  33. 33. BIG BAZAAR 33
  34. 34. Pantaloon Retail (India) Limited, is India’s leading retailer thatoperates multiple retail formats in both the value and lifestylesegment of the Indian consumer marker. Headquartered in Mumbai(Bombay), the company operates over 8 million square feet of retailspace, has over 475 stores across 40 cities in India and employs over18,000 people.The company’s leading formats include Pantaloons, a chain of fashionoutlets, Big Bazaar, a uniquely Indian hypermarket chain, FoodBazaar, a supermarket chain, blends the look, touch and feel of Indianbazaars with aspects of modern retail like choice, convenience andquality and Central, a chain of seamless destination malls. Some of itsother formats include, Depot, Shoe Factory, Brand Factory, Blue Sky,Fashion Station, aLL, Top 10, mBazaar and Star and Sitara. Thecompany also operates an online portal, futurebazaar.com.A subsidiary company, Home Solutions Retail (India) Limited,operates Home Town, a large-format home solutions store, sellinghome furniture products and E-Zone focused on catering to theconsumer electronics segment.Pantaloon Retail was recently awarded the International Retailer of theYear 2007 by the US-based National Retail Federation (NRF) and theEmerging Market Retailer of the Year 2007 at the World RetailCongress held in Barcelona.Pantaloon Retail is the flagship company of Future Group, a businessgroup catering to the entire Indian consumption space. 34
  35. 35. ANALYSIS OF THE STUDY Types of Customer: In the Indian Retail Scenario Big Bazaar has a great success to create a revaluation. Basically they have differentiated their customers on the basis of needs of customers rather than their income level. Later on we will analyze these aspects. Here we are analyzing which income level of customers are generally tend to purchase the products in Big Bazaar department wise: PERCENTAGE OF CUSTOMER FLOWS DEPARTMENT WISE GARMENT GIFTS MUSIC CARDS TYPES OF CUSTOMER SECTION SECTION SECTION SECTIONHIGH GRADE INCOME LEVEL 10% 15% 50% 7% MEDIUM GRADE INCOME LEVEL 50% 55% 40% 53%AVERAGE GDARE INCOME LEVEL 40% 30% 10% 40% TYPES OF CUSTOMER DEPARTMENT WISE 100% 80% 60% AVERAGE GDARE INCOME LEVEL MEDIUM GRADE INCOME LEVEL 40% HIGH GRADE INCOME LEVEL 20% 0% GARMENT GIFTS MUSIC CARDS SECTION SECTION SECTION SECTION From the above details its found that the in the Garment section they are targeting the middle and average level of customers. They are not promoting any major brands and they have their own brand towards 35
  36. 36. the major brands in garments industry. Flow of high level of customers in music section is better than the others departments. Generally upper medium and medium class and also a good percentage of average income level customer visits their all departments. Flow of customers in different departments: Here we have analyzed the flow of customers per day basis. For this reason we have studied customer flows on an average of high customer flow days. Inter-Department Customer Flow DEPARTMENT Number of Customer GARMENTS DEPARTMENT 1600 GIFTS DEPARTMENT 600 CARDS DEPARTMENT 250 MUSIC DEPARTMENT 800 INTER-DEPARTMENT CUSTOMER FLOW MUSIC DEPARTMENT CARDS DEPARTMENT GIFTS DEPARTMENTGARMENTS DEPARTMENT 0 200 400 600 800 1000 1200 1400 1600 With the study of customer flow in Big Bazaar on an average of high customer flow day we came to know that it’s basically lies between 2000-2500 customers per day. Here we are taking the customers who are generating revenues for these departments. 36
  37. 37. From the above figures its executed that flow of customer in garmentdepartments is relatively higher than the others departments. Onesignificant difference is noted from the others retail is that they haveplaced their music department at the front of cash counters andintroduced low range of music cds’ and game dvd’s for the all categorycustomers which increased customer the flow in the musicdepartment.Value of Stock in the different departments:We have chosen 4 departments from Vishal Mega Mart and estimatedthe valuation of average stock with the assumption details provided bythe branch operation stuffs. VALUE OF THE STOCK DEPARTMENT (Rs) GARMENTS DEPARTMENT 163000000 GIFTS DEPARTMENT 7500000 CARDS DEPARTMENT 150000 MUSIC DEPARTMENT 580000Value of the stock in the Garments Department: 8230000 163000000 Garment Deapartment others department 37
  38. 38. The garment section is divided into Men, women and kids section.They have also a discount section only for the garments. In thissection they are selling the old or rejected stocks of major brands at a40-50 percent discount rate. The value of stock in garment is beingoverflowed at the time of winter season. Winter garments are costlierthan the others seasons and tends to double the value of stock.Normally they are maintain a stock value of 16.3 to 17 crore value ofstock bus it increase at the time winter to more than 40 crore.Value of the stock of the others departments: VALUE OF STOCK IN THE OTHERS DEPARTMENTS 7500000 8000000 6000000 4000000 580000 150000 2000000 0 1 GIFT S DEPART MENT CARDS DEPARTMENT MUSIC DEPARTMENTIn some big retails its seen that they are including some cookery,home furnishings and life style products in their gifts section. Bigbazaar is maintaining a low stock but more product categories in theirgifts section and generating a remarkable revenue from this.Stock of music department is overflowed with low price products.Their stock have a potential to earn revenue from all categories asprices of products in this department lies between Rs. 30 to Rs.400approximately. 38
  39. 39. Revenue generated by the different departments:To find out the profitability drivers we have compared the revenuegenerated by different departments on the basis of 2004-05 to 2008-09. For this study we have considered average revenue of a highcustomer flow day by the all income level customers. REVENUE PER DEPARTMENT 2004-05 2008-09 GARMENTS DEPARTMENT 90000 300000 GIFTS DEPARTMENT 42000 180000 CARDS DEPARTMENT 2000 1800 MUSIC DEPARTMENT 19000 40000 TOTAL 153000 521800 COMPARI SON OF REVENUE PER DEPARTMENT600000500000400000300000 2004-05200000 2008-09100000 0 GARMENTS GIFTS CARDS MUSIC TOTAL DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT 39
  40. 40. From the above study its revealed that at the time of inception of theorganised retail in India in the year of 2004-05, only the high grade andupper medium grade income level customers were tends to go to the retails.So the maximum portion of revenues generated from these two groups onlyin the year of 2004-05.The change in revenue of garment department and in gifts department fromthe year 2004-05 to 2008-09 is significant because Big Bazaar is shiftedproducts towards the own manufactured brands and they became successfulto establish their own brands in the garment retail industry.A measurable changes found in the cards department is that the revenues aswell as the stock is decreasing day by day because of changing customerpreferences towards information technology enabled services like SMS, MMS& E-mails. FACTS AND FINDINGSFrom the above analysis its found that the average customers in theall departments are the all income level people in Big Bazaar.Meanwhile their main customer base is upper middle, middle andaverage level income level customers.Garment DepartmentOverview:In Garment department the products are mainly their own brands anprice ranges lies between Rs.99 to Rs.800 averagely which is veryreasonable for the middle class,average and also low level income group peoples. The stock in thissection is fair to satisfy its customer needs and attracts windowshoppers to become a potential customer.Findings:The main facts that we have found in the garment section is that BigBazaar mainly focusing on the low range of products with their ownbrands. All the times they are giving special discounts on all thegarments products. They have adopted tricks like “Buy 2 get 3”, Buy3 get 5” which looks like as if you buy 2 will get more 3 but the actual 40
  41. 41. fact is that if you buy 2 products will get 1 free as total you will get 3.It’s a very strategic and attractive offer specially adopted by BigBazaar. They have also a section named ‘LOOT MART’ in the garmentsdepartment. In this section they are selling the branded high-classgarments at a high discount rate of 50 to 60 percent.Suggestions:After discussing all the profit factors it can be suggest that as theyhave a good high income level customer flow in the othersdepartments like in the furniture and grocery department they canintroduce a wider range of branded products in the garment section asthis income is conscious about the brand that they are using.Gifts DepartmentOverview:Gifts department is consisting of various product categories fromhome furnishing products to personal using products. According to BigBazaar now a days no one can define which section should be referredas a gifts section. Customer preference is changing day by day withthe increased product categories.Findings:In Big Bazaar we have found that they are also referring homefurnishing products, personal care and low range electronic productsas gift products and basically it depends on the customers need andchoice. The whole gift section is able to satisfy the all level of incomegroups as they have a large collection of product categories but with alimited stock of same products. A noted strategy is taken in the giftsdepartment is that they are selling a large varieties of products with alimited stock which helps them to implement a good stock turn overratio and generating good revenue from this department.Suggestions:Big Bazaar can focus on the stocks of the gifts though the stock ofvarieties is remarkable but within the same category the stock is notappreciatable. 41
  42. 42. Music DepartmentOverview:Music section consist of Music CD’s, Game CD & DVD’s and also MovieDVD’s.Findings:Big Bazaar has introduced very low range cd & dvd’s like ‘Moserbaer’music and movie cd-dvd’s and price range lies in between Rs.30 to100. Basically they are gaining a competitive business at the age ofpiracy products in this industry. Also they have a very good collectionin games cd-dvd category at a low price range of Rs.100 to 200whereas if anyone go to the open market the average price range isRs.300 to 400 for the copyright product.Suggestions:In the music its found that the collection of movie cd’s and educationalcd’s is low than the music and games cds. They are emphasizing onthe low price mp3 and game cds where as there is also a demand foreducational and movies cd-dvd’s.Cards DepartmentOverview:In the Indian scenario cards are not very popular and a seasonalbusiness according to the floor managers and management of thestore. Also the demand is decreasing day by day with the increase ofinformation technology enable services.Findings:We have found that it’s a seasonal business and they only give focusat the time of Christmas Day and New Year. Also the high gradeincome level people tends to go specialized cards stores so only a fewnumbers of middle and average income level customers who come toothers departments sometimes seek for the cards. 42
  43. 43. Suggestions:Though the demand of cards decreasing day by day but there are alsosome others events rather than the 25th & and 31st eve. So a step canbe taken by introducing low range of cards attached with the giftssection to greet the wishes all the time. 43
  44. 44. LIFESTYLELifestyle International (P) Ltd is part of the Landmark Group, aDubai – based retail chain. With over 30 years’ experience in retailing,the Group has become one of the foremost retailers in the Gulf.Positioned as a trendy, youthful and vibrant brand that offerscustomers a wide variety of merchandise at an exceptional value formoney, Lifestyle India began operations in 1999 with its first store inChennai.Currently there are 14 Lifestyle stores, 7 Home Centre stores and 1Baby Shop store across Ahmedabad, Bangalore, Chennai, Hyderabad,Jaipur, Mumbai, Pune, New Delhi, Noida and Gurgaon.Today Lifestyle offers a truly international shopping experience, a factborne by numerous accolades. 44
  45. 45. Business World – IMRB Most Respected Company Awards survey ratedLifestyle as the ‘Most Respected Company in the Retail Sector’ in 2003and 2004 • ‘ICICI – KSA Technopak Award for Retail Excellence’ in 2005 • Reid & Taylor ‘Retailer of the Year’ award in 2006 • Lycra Images Fashion Award for the ‘Most Admired Large Format Retailer of the Year’ in 2006Images Retail ‘Most Admired Retailer of the Year – Department Store’in 2008. ANALYSIS OF THE STUDYTypes of Customer:Lifestyle International is a major player in the Indian organised retailindustry. The have a good customer base in the high class levelincome group. Mainly they focusing on the Men-Women-Kids Apparel,gifts and also in the home furnishing products. They don’t have anymusic, cards or cookery departments. TYPES OF TARGET CUSTOMERHIGH GRADE INCOME LEVEL 75%MEDIUM GRADE INCOME LEVEL 20% CUSTOMER FLOWS DEPARTMENT WI SEAVERAGE GDARE INCOME LEVEL 5%100% 80% AVERAGE GDARE INCOME LEVEL 60% MEDIUM GRADE INCOME LEVEL 40% HIGH GRADE INCOME LEVEL 20% 45 0% GARMENT SECTION GIFTS SECTION
  46. 46. From the above analysis its revealed that though a very few numbers of low grade income level customers are visiting the garment section but in the gifts section we have found that the products are unreachable for the average level income groups. Flow of customers in different departments: Here we have analyzed the flow of customers per day basis. For this reason we have studied customer flows on an average of high customer flow days. Inter-Department Customer Flow DEPARTMENT Number of Customer GARMENTS DEPARTMENT 1100 GIFTS DEPARTMENT 600 Inter-department Customer Flow 600GIFTS DEPARTMENT GARMENTS 1100 DEPARTMENT 0 200 400 600 800 1000 1200 Number of Customer 46
  47. 47. In lifestyle we have found that the average customer flow liesbetween 1200 to 1500 on an average high customer flow day.The main products categories in Lifestyle basically the garments andhome furnishing products related to gifts items. We have found thatin the case of garments department customer flow is 1100 per daybasis and in the case of gifts departments its 500 to 600 per daybasis. Its noted that the gifts department consists of exclusiveproducts.Value of Stock in the different departments: VALUE OF THE STOCK DEPARTMENT (Rs) GARMENTS DEPARTMENT 760000000 GIFTS DEPARTMENT 50500000 VALUE OF STOCK 50500000 760000000 GARMENTS DEPARTMENT GIFTS DEPARTMENT 47
  48. 48. The garment section is divided into Men, women and kids section aswell as lifestyle accessories and shoe wears. They have all the majorbrands like Blackberry, Louis Phillips, Lee Coopers, Van Hausen, Parx,Lee for in the men catagory, Melanga, Code, Ginger in the womencategory and for the kids section they have brands like Bossini,Benetton, Orchestra, Juniors, Teeny Tiny, Artex etc.The garments section includes: 1. Watch section for the brands like Fast track, Zodiac, Hugo-boss, Nautica, Marie Claire, Casio, Guess, GC, Kenneth Cole, Aspen, Skagen, Levi’s, Adidas etc. 2. Sunglass section for the brands like Ferrari, Mojo, Mont blanc, Scott,, Guess etc. 3. Fashion accessories for the brands like Tribal Zone, Sarah, Fire Fly, Adrika, Earrings, Necklace, Bracelet, Anklet, Bangles, Hair Clips, Bra Straps, Scrunges, Men’s Jewelry, Kids’ Fashion.All these product ranges are exclusively for the High grade incomelevel customers.The gifts section is consisting of high class home furnishings andpersonal grooming products. They are introducing it by the name of“Home Centre”. It’s a one-stop destination for furniture, home wareand home furnishings that enterprises elegance, luxury andindividuality. Home Centre houses a wide range of contemporary andclassic furniture, linen as well as other home accessories, thusproviding customers a high range products.Revenue generated by the different departments: REVENUE PER DEPARTMENT In 2008-09(Rs.) GARMENTS DEPARTMENT 4000000 GIFTS DEPARTMENT 1000000 TOTAL 5000000 48
  49. 49. Revenue in 2008-09 Department 5000000 4000000 3000000 2000000 1000000 0 GARMENTS GIFTS TOTAL DEPARTMENT DEPARTMENTThe average revenue earned per customer basis is more Rs.6000. Comparison of revenuegenerated by the each departments is taken into consideration on an average of highcustomer flow days. FACTS AND FINDINGSFrom the above analysis its found that the average customers in theall departments are basically high grade income level customers. Allthe products ranges in the both departments significantly refers topremium customers.Garment DepartmentOverview:In Garment department the products are mainly the majorinternational readymade brands and price ranges lies between Rs.800to Rs.2000 averagely which is meant for a few Indians customers.Findings:The products exclusively for a certain income level customers.Maximum products are unreachable for the medium and averageincome level peoples. Whatever the stock is quite efficient to satisfytheir potential customers. 49
  50. 50. Suggestions:They are focusing a very few Indian customers and the most of theIndian consumers can’t afford this price ranges. So if they want toincrease their market share in the Indian retail Industry they shouldintroduce such product ranges also which can be affordable for themedium level income groups and the main customer in the retailindustry lies within it.Gifts DepartmentOverview:Gifts department is consisting of various product categories fromhome furnishing products to personal grooming products.Findings:In the Lifestyle we have found a wider range of glass made and metalproducts which are exclusive and also the quality isn’t upto the pricelevels. Whatever, the stock is sufficient to satisfy its customers butthe price range is found very high as a gift product in this department.Suggestions:Again the Indian retail industry is targeting the medium level incomegroup people as its increasing day by day but the products in theLifestyle store is meant only for the high class consumers which isvery low in population in India. Also an important point is noted thatthough the volume is sufficient but the varieties in product categoriesas a gift isn’t sufficient. 50
  51. 51. COMPARITIVE ANALYSIS OF THE STORESOn the basis of customer flows:We have considered the average of the high customer flow days. Flow of Customer per Day Store Name No. of Customer Vishal Mega Mart 1600 Cust om er Flow per Day Life Style 1200 2500 Big Bazaar 2300 2000 Number of 1500 Customer 1000 500 0 Vishal Mega Mart Life Style Big Bazaar No. of Customer 51 Name of the Store
  52. 52. Vishal Mega Mart: From the study its revealed that the average customer flow is medium grade income level customers and average grade income level customers. Life Style: The customer flows in this store is basically refers to the high and upper medium income level customers. Big Bazaar: They are focusing on the all income level customers but it depends on the departments wise also. On the basis of stock value: Comparison of stock value Store Name Garments Dept Gifts Dept Cards Dept Music DeptVishal Mega Mart 65000000 250000 77500 175000 Life Style 735000000 55000000 Big Bazaar 163000000 7500000 150000 575000 Garments Department: The value of stock depends on the season. At the time of winter season it increases upto 2 to Garments than the other seasons as the 3times Dept price of winter garments is relatively higher than springs-summer collection.800000000700000000600000000500000000400000000 Garments Dept300000000200000000100000000 52 0 Vishal Mega Mart Life Style Big Bazaar
  53. 53. Vishal Mega Mart: The product in the garment section isn’t exclusiveand meant for the medium to average grade income level customers.Also they aren’t focusing on major brands in the garment industry. Allthe products are unbranded and semi branded and don’t attracts thehigh grade level income groups. However brand consciousness notpresent but the stock volume is able to met customer satisfaction.Life Style: All the major brand players are maintaining their stocks ingarments section as their main focus is on the Apparel products.Product ranges is very high and meant for the high class consumers.A high brand consciousness helping them to generate a remarkablerevenue with a high stock turn over ratio and smiling face ofcustomers.Big Bazaar: They have their own brands in the garments departmentwith a reasonable price for the upper medium, medium and averageclass income groups. Though brand conscious people will think at thetime purchasing but customer are satisfied with the stock and as wellas quality related to price.Gifts Department: Gifts Dept60000000500000004000000030000000 Gifts Dept2000000010000000 53 0 Vishal Mega Mart Life Style Big Bazaar
  54. 54. Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow and revenue from this section is very low and no point is gaining for the customer satisfactory level. Life Style: A very large investment in the gifts section is found at the time of study. They are basically emphasizing on introduction of personal grooming products and home furnishing products in the gifts section. This department is solely for the upper class consumers and customer satisfactory level is remarkable. Big Bazaar: A wider range of products is found in gifts section for the all income level people. Though the variety in the product categories is high but the volume of stock in the same product is low. How ever customers are happy with the large number of collection of gifts items. Cards Department: Cards Dept160000140000120000100000 80000 Cards Dept 60000 40000 20000 0 Vishal Mega Mart Life Style Big Bazaar 54
  55. 55. Vishal Mega Mart: Stock in this department is taken care asrelatively low and it’s considered as a seasonal business.Big Bazaar: Stock in this department is taken care as relatively lowand it’s considered as a seasonal business.Music Department: Music Dept600000500000400000300000 Music Dept200000100000 0 Vishal Mega Mart Life Style Big BazaarVishal Mega Mart: Music department is consisting of music, moviesand games cd-dvd’s. The stock of game cd-dvd’s is higher than theothers and price range is relatively not for the medium and average 55
  56. 56. income groups though they are focusing on this income group onlyand a result they failed to satisfy their customer needs.Big Bazaar: Their music department is also consisting of music,movies and games cd-dvd’s and they have maintained a good balancebetween the stock level in all the categories. And also a remarkablechange is noted that they selling very low range products within thiscopyright product categories. They customer satisfaction level is highwith the fulfillment of their needs.On the basis of revenue: Comparison of Revenues Store Name 2004-05(Rs.) 2008-09(Rs.) Vishal Mega Mart 58500 196800 Life Style ----------- 5000000 Big Bazaar 160500 481500 Comparison of Revenues500000040000003000000 2004-05(Rs.)2000000 2008-09(Rs.)1000000 0 56 Vishal Mega Mart Life Style Big Bazaar
  57. 57. IN 2004-05: At the time of sunrise of organised retail industry in India, the scenario was not been like present days. At that time it was a very new concept of marketing for the Indian consumers. Only the high class level and a few upper medium class income group customers were visiting to those retail markets. The perception of middle and lower class peoples was that these stores had over-valued their products and to some extent it was right also. IN 2008-09: Now a days shopping in the retail stores is a very common things. Peoples are habituated to go into the retails in the weekends. Day by day the organised retailers are becoming stronger to attract customers. Hyper- markets like Vishal mega mart, Big Bazaar, Home town have the stock to fulfill all the needs of customers from alpine to elephant. On the basis of Revenue per customer: For the study of revenue per customer, we have taken the contribution of total customer flow on the total revenue of the stores on an average of high customer flow days. Revenue per customer basis Store Name 2004-05(Rs) 2008-09(Rs) Vishal Mega Mart 450 1350 Life Style 6000 Big Bazaar Comparison of Revenue per customer 2100 650600050004000 2004-053000 2008-0920001000 57 0 Vishal Mega Mart Life Style Big Bazaar
  58. 58. Vishal Mega Mart: Though the revenue per customer of the Vishalmega Mart increased from 2004-05 to 2008-09 but the revenue percustomer is significantly low than others. As their main customer baseis medium and average income group customers and also customerflow is low so it generates significantly low revenue per customer.Life Style: The customer flows in this store is basically refers to thehigh and upper medium income level customers and though theircustomer flow is lower but their return on investment is high so ithelps to earn a high income per customer.Big Bazaar: They are focusing on the all income level customers witha high customer flows per day and have a base of brandconsciousness amongst the customer which’s helping them to increasetheir revenue per customer. Also there is a major contribution of theothers departments like grocery and vegetables department towardsthe per customer revenue. 58
  59. 59. ASIA PACIFIC INSTITUTE OF MANAGEMENT STUDIES (This research is done only for the education purpose. There is no financial/competitive motive.) Questionnaire (General)A. Store name:B. Location of the Store:(i) Mall (ii) General (iii) Densely populated areaC. Which kind of customers generally visit at your store? (i) High grade income level (ii) Medium grade income level (iii) Average grade income level 59
  60. 60. D. Flow of customer per day in your store: (i) Below 500 (ii) 500 to 1000 (iii) 1000 to 1500E. Revenue earned per customer basis: In 2004-05 Rs. In 2008-09 Rs.F. In which department stock is being taken care comparatively in a lightly way?(i) Garments (ii) Gift items (iii) Cards (iv) Music(v) None of thisIf not why you are emphasizing on every segment?______________________________________________________________________________________________________________________________________.G. Does the brand consciousness of customers divert them to the differentdepartments ? Yes NoIf yes which type of customer?Young Old child Beauty conscious peopleH. Is the Information Technology helping in ROI of the store? Yes NoIf yes then which features is/are motivating? 60
  61. 61. ERP Online Adv SAP/Tally Information SecurityI. Does the good atmosphere in the store pick the sale up? Yes then why? ________________________________________. No then why? ________________________________________. (This research is done only for the education purpose. There is no financial/competitive motive.) Questionnaire (Garment Department)A. Which kind of customers generally visit at your garment section and their flow? (i) High grade income level Flow % (ii) Medium grade income level Flow % (iii) Average grade income level Flow %B. Revenue generated by Garment section in your store (i) High grade income level: Revenue in 2004-05 61
  62. 62. Revenue in 2008-09 (ii) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (iii) Average grade income level: Revenue in 2004-05 Revenue in 2008-09C. Value of average stock maintained in Garment section: Rs.D. Is your stock efficient to revamp the Customer satisfaction in your store? (i) Yes (ii) No (This research is done only for the education purpose. There is no financial/competitive motive.) Questionnaire (Gifts Department)A. Which kind of customers generally visit at your Gift section and their flow? (i) High grade income level Flow % (ii) Medium grade income level Flow % (iii) Average grade income level Flow %B. Revenue generated by Gift section in your store (i) High grade income level: Revenue in 2004-05 62
  63. 63. Revenue in 2008-09 (ii) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (iii) Average grade income level: Revenue in 2004-05 Revenue in 2008-09C. Value of average stock maintained in Gift section: Rs.D. Is your stock efficient to revamp the Customer satisfaction in your store? (i) Yes (ii) No (This research is done only for the education purpose. There is no financial/competitive motive.) Questionnaire (Music Department)A. Which kind of customers generally visit at your Music section and their flow? (i) High grade income level Flow % (ii) Medium grade income level Flow % (iii) Average grade income level Flow %B. Revenue generated by Music section in your store 63
  64. 64. (i) High grade income level: Revenue in 2004-05 Revenue in 2008-09 (ii) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (iii) Average grade income level: Revenue in 2004-05 Revenue in 2008-09C. Value of average stock maintained in Music section: Rs.D. Is your stock efficient to revamp the Customer satisfaction in your store? (i) Yes (ii) No (This research is done only for the education purpose. There is no financial/competitive motive.) Questionnaire (Cards Department)A. Which kind of customers generally visit at your Cards section and their flow? (i) High grade income level Flow % (ii) Medium grade income level Flow % (iii) Average grade income level Flow %B. Revenue generated by Cards section in your store 64
  65. 65. (i) High grade income level: Revenue in 2004-05 Revenue in 2008-09 (ii) Medium grade income level: Revenue in 2004-05 Revenue in 2008-09 (iii) Average grade income level: Revenue in 2004-05 Revenue in 2008-09C. Value of average stock maintained in Card section: Rs.D. Is your stock efficient to revamp the Customer satisfaction in your store? (i) Yes (ii) NoQuestionnaire filled up by :Designation :Age :Working here for :Date & Time :Place :(Be sure that all the details will be kept in safe and will not be disclosed or used on anyothers purpose) 65
  66. 66. Thanking for your valuable time and support. 66
  67. 67. PHASE-II 67
  68. 68. THE GREAT INDIA PLACEFormats of the stores in the Great India Place: SRL NAME OF THE STORE TYPE OF THE STORE NO GROUND FLOOR 1 GLOBUS SPECIALITY CHAIN 2 LIFE STYLE DEPARTMENTAL STORE 3 BOSSINI SHOP 4 METRO SHOES SPECIALITY CHAIN 5 WOODLAND SPECIALITY CHAIN 6 TANABANA SHOP 68
  69. 69. 7 BOMBEY SELECTION SHOP 8 M & B FOOTWARE SPECIALITY CHAIN 9 NAKSHATRA SPECIALITY CHAIN10 MARKS & SPENCER DEPARTMENTAL STORE11 LEVIS FLAGSHOP SPECIALITY CHAIN12 GIOVANI SHOP13 SHOPPERS STOP DEPARTMENTAL STORE14 PANTALOONS DEPARTMENTAL STORE15 INDIGO NATION SPECIALITY CHAIN16 LILLIPUT SPECIALITY CHAIN17 WILLS LIFESTYLE DEPARTMENTAL STORE18 KAZO SHOP19 COSTA COFFEE SPECIALITY CHAIN20 KFC SPECIALITY CHAIN21 PIZZA HUT SPECIALITY CHAIN22 ZARDARI SHOP23 DIMENSION SHOP24 KILOL SHOP25 KALPANA SAREES SPECIALITY CHAIN26 MEENA BAJAR DEPARTMENTAL STORE27 ZODIAC SPECIALITY CHAIN28 REEBOK SPECIALITY CHAIN29 BGs SPECIALITY CHAIN30 ARCHIES SPECIALITY CHAIN31 WORLD OF TITAN SPECIALITY CHAIN32 HOME TOWN HYPER MARKET33 BIG BAZAAR HYPER MARKET FIRST FLOOR34 MONTE CARLO SPECIALITY CHAIN35 REID & TAYLOR SPECIALITY CHAIN36 PALL MALL SHOP37 CAFÉ COFFE DAY SPECIALITY CHAIN38 RAYMOND SPECIALITY CHAIN39 SAMSONITE SPECIALITY CHAIN40 SHOPPERS STOP DEPARTMENTAL STORE41 VEN HEAUSEN SPECIALITY CHAIN42 ADIDAS SPECIALITY CHAIN43 SPYKAR SPECIALITY CHAIN44 REEBOK SPECIALITY CHAIN45 LEE SPECIALITY CHAIN46 NIKE SPECIALITY CHAIN 69
  70. 70. 47 GLOBUS SHOP48 PUMA SPECIALITY CHAIN49 MOUSTACHE SPECIALITY CHAIN50 GILI WORLD SPECIALITY CHAIN51 BLACKBERRY SPECIALITY CHAIN52 RITU KUMAR SPECIALITY CHAIN53 HIMALAYA OPTICAL SPECIALITY CHAIN54 LACOSTE SPECIALITY CHAIN55 KODAK EXPRESS SPECIALITY CHAIN 2ND FLOOR56 ME n MOM SPECIALITY CHAIN57 CASIO SPECIALITY CHAIN58 CARLTON LONDON SPECIALITY CHAIN59 KITTEN SHOES SHOP60 CATMOSS SHOP61 OCTMOSS SHOP62 OCTAVE SHOP63 MAX LIFESTYLE SPECIALITY CHAIN64 GKB OPTICAL SPECIALITY CHAIN65 PEPE JEANS LONDON SPECIALITY CHAIN66 ODYSSEY SPECIALITY CHAIN67 BOSE SPECIALITY CHAIN68 STEPPING STONE SPECIALITY CHAIN69 VIVID SPECIALITY CHAIN70 ZEST SHOP71 INDIGO SPECIALITY CHAIN72 SHAW BROTHERS SHOP THIRD FLOOR73 HOOP SHOP74 BARISTA SPECIALITY CHAIN75 BOWLING CO SPECIALITY CHAIN76 YATRA SPECIALITY CHAIN77 STREET FOOD OF INDIA SPECIALITY CHAIN78 NIRULAs SHOP79 TANDOORI VILLAGE SHOP80 YO CHINA SPECIALITY CHAIN81 SAGAR RATNA SHOP82 SANRIO SHOP83 ICE CURE SHOP84 BIG CINEMAS SPECIALITY CHAIN85 MUSIC LAND SPECIALITY CHAIN 70
  71. 71. 86 MASAKALI SHOP87 MY DOLLER STORE SPECIALITY CHAIN88 JUMBO ELEVTRONIC SHOP89 STAPLES SPECIALITY CHAIN90 FIT & ACTIVE GYM SHOP Group-8Asia pacific Institute of management Studies 71
  72. 72. AVISHEK SAHU-H-03 DEBOJIT ROY H-66 KRISHNAKANT PANDEY H-25BISWAJIT GHOSH H-12 SRITANU DAS MAHAPATRA H-57 72

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