PROJECT REPORT ON
MY DREAM RETAIL COMPANY
Sheer driving pleasure
SUBMITTED TO: SUBMITTED BY:
Prof. A.N. Bhattacharya Satyam Barkataky
IILM GSM PGDRM 09-11
Apart from our efforts, the success of any project report depends largely
on the encouragement and guidelines of the concerned faculty, fellow
students and many others. We take this opportunity to express our
gratitude to the people who have been instrumental in the successful
completion of this project report.
We would like to show our greatest appreciation to Prof. A.N.
Bhattacharya. We express our gratitude for his tremendous support and
guidance. We feel motivated and encouraged to take further such work
in the near future with his help. We also thank our classmates who have
also encouraged and guided us regarding this report. This project would
not have materialized without the combined efforts of the all of
mentioned people above.
TABLE OF CONTENTS
• Company profile
• Products and services rendered by BMW Studio
• Store Layout
• Retail strategies of BMW Studio
• Main Competitors of BMW Studio
• Competitors Analysis
• Merchandise Policy
INTRODUCTION TO BMW STUDIO
BMW Studio is a unique multi functional space concept that delivers a
comprehensive BMW experience unlike any other, in India or around
the globe. Conveniently located in central Delhi, the BMW Studio offers
comprehensive information on BMW products and services, an
exclusive BMW lounge and bar, fine dining by Olive Beach Bistro,
exhilarating test drives and unparalleled customer service along with
BMW business centre for BMW owners. The BMW Studio will also
showcase a wide range of BMW lifestyle products. The products extend
from classic BMW lifestyle products such as BMW shirts and jackets,
sports products in golfing, kids’ mobility equipment, car miniatures,
Original Accessories, Baggage and luggage.
PRODUCTS AND SERVICES RENDERED BY
• BMW Lounge and Dining
Sit back, relax and sip your daily cup of coffee. Unwind after work with a selection
of refreshments. Savour culinary delicacies from Olive Beach Bistro for lunch,
dinner and in between.
The BMW Studio is selectively available as an event venue for private bookings
throughout the year. It provides the perfect ambience and world-class dining
experience by Olive Beach Bistro for comfortably up to 50 guests.
• BMW Showcase
Enrich yourself with comprehensive information on BMW products and services
and stop by today to view our newest car on display.
Discover the BMW Lifestyle collection and stimulate your senses with a variety of
books, music and films in the comfort of BMW luxury.
• BMW Business Centre
Exclusively for BMW owners. BMW Studio’s Wi-Fi enabled business centre
provides you access to a private space fully equipped with your communication
requirements. BMW owners can pre-book the BMW Studio for business or
personal meetings and events. A library of BMW Books, BMW Music and BMW
Films will also enhance the brand appeal of the BMW Studio.
The 1600 sq feet BMW Studio, located in the heart of New Delhi at Janpath, can
accommodate 25-30 guests, and will be open from Monday-Saturday from 10:00
a.m. to 8:00 p.m. The studio will have one car displayed inside and one test car
standing outside. The BMW Studio will be managed by a BMW Studio Manager
who will be supported by well trained staff from the hospitality industry. There are
different departments and sections for different purpose. Like,
• BMW Lounge and Bar
• BMW Showcase
• BMW Business Centre
• BMW accessories section for BMW shirts and jackets, sports products in
golfing, kids’ mobility equipment, car miniatures, Original Accessories,
Baggage and luggage.
RETAIL STRATEGY OF BMW STUDIO
• Target Market:
Youngsters and adults who belong to higher class income group and
corporate as well as the owner of a BMW.
• Retail Format:
Company’s owned Retail Outlet only in Jan path, Central Delhi. Retail
format size is 1600 sq. feet.
• Bases for Competitive Advantages:
To get a thrilling experience of the BMW world by offering the services like
Lounge and dining
Driving Instruction tutorials etc.
Facility to customize your BMW with added features.
MAIN COMPETITORS OF BMW STUDIO
BMW Studio is a customized car shop and it is not like other cars showroom or
outlets. A BMW car owner is a customer of BMW Studio. So, unlike BMW
Studio, there are not other car maker who has this kind of customized shop. So,
BMW Studio has no competitors in terms of service rendered to their customers.
But as a luxury car maker, it has its following competitors:
Mercedes-Benz is a German manufacturer of luxury automobiles, buses,
coaches, and trucks. It is currently a division of the parent company, Daimler AG
(formerly DaimlerChrysler AG), after previously being owned by Daimler-
Benz.Mercedes in India does not have their company owned outlet. But BMW
studio gets tough competition from Mercedes Franchisee Showrooms located at
Audi - the German luxury car manufacturer, represented in 110
countries worldwide and since 2004, Audi has been selling its products on the
With its franchisee showroom, it is one of the major competitors of BMW
studio as the German luxury car manufacturer. It has its showrooms in all major
cities including Delhi.
Mahindra First Choice
It is a multi brand pre owned Car Company who buys and sells cars to its
customers. They also deal with German cars including BMW.
Gaadi.com is a online portal of buying and selling of new cars as well as used
cars of different brands like BMW, Ford, Porche, Audi, Lexus etc. It has really
affected the market share of BMW.
Car maker No. of cars sold No. of cars sold in India
in India ( till ( till 2010-Jan & Feb)
23* No data Available
7# No data Available
* (only BMW)
# (Only BMW, In Delhi/NCR)
Market Share of luxury car industry in India
Car maker 2009 2008 2007
BMW 38% 46% 59%
Mercedes 42% 40% 33%
Audi 20% - -
Necessary of Store Design:
• It tells the customer what the store is all about
• It creates an image in the minds of customers
• For a customer store needs to be easy to navigate, it must appeal to his
sensory perceptions and must create a sense of belonging, sense of
• The environment created in the retail store is a combination of exterior look,
store interiors, the atmosphere in the store and the events promotions and
themes which form a part of retail store
Elements of store environment:
Product and Service Mix:
Space planning includes Floor Planning that includes,
• where merchandise and customer service departments are located,
• how customers circulate through the store,
• how much space is dedicated to each departments/sections
Basically the Space that BMW Studio had planned was 2000 sq. feet. But as it is
located in Central Delhi, they had to compromise with the space and made it
limited to 1600 sq. feet.
Procurement of the products:
• They basically do not procure any product from anywhere else initially but
on the basis of the requirement of the customers, they procure their products
from their manufacturing unit i.e. located in Chennai. For example, if
customers want to have a portable refrigerator or special sofa cum seat, they
order at BMW Studio and then the customer executive manager sends the
order to the manufacturing unit. Some of the feature and facilities are not
available in manufacturing unit, they are imported from Germany.
• They procure the BMW accessories from their respective manufacturing
units. They display the accessories for their customers and if a customer
needs something extra or new, they order it from their manufacturing unit, if
not available in BMW studio.
• They hardly take 3 days to deliver the goods to customer in terms of BMW
accessories like toys, shirts and jackets etc. and for other car accessories like
car steering, refrigerator or a music system, they take 1 week to be delivered
from their manufacturing unit.
Consideration in Setting Retail Prices:
• Customers price Sensitivity and Cost:
Generally, as the price of a product or service increases, the sales for the
same will decrease because fewer and fewer customers feel the product or
service is a good value. Same in the case of BMW studio where a fewer
BMW car owner are the customers. As BMW studio is for higher and
business class people, the prices are high. Customers are not that much price
sensitive, so the sales will not decrease significantly if the prices are
As BMW studio has no competitors in terms of customize the luxury cars in
India especially in the case of BMW. So, price elasticity is perfectly
inelastic. BMW Studio can quote price according to their needs. The chosen
pricing policy must be consistent with the retailer’s overall strategy and its
relative market position.
• Legal and Ethical pricing Issues:
As per the govt. rules and regulations, BMW Studio cannot set their price
too high or too low. Price ceiling and flooring is followed by BMW Studio.
• Retailing Management by Levy and Weitz