This report gives an idea on starting a retail business in India. Particularly a Headphone specific outlet.

1. i
SERVICE MARKETING PROJECT
RETAIL SECTOR
WAVELENGTH STORES
DONE BY GROUP 7:
ADARSH NJ – 19DM015
ALTAMASH HASAN – 19DM027
ARCHIKA SINGH – 19DM047
GURPREET SINGH SETHI – 19DM075
MANIKANDAN BALAJI – 19DM101
NIDHI AGARWAL – 19DM123

2. ii
TABLE OF CONTENTS
S.NO TITLE PAGE NO
1 INTRODUCTION 1
2 MARKET SIZE 1
3 INVESTMENT SCENARIO 1
4 GOVERNMENT INITIATIVES 2
5 ROAD AHEAD 2
6 DATA COLLECTED FROM – INDIABRAND EQUITY FOUNDATION 3
7 COMPANY DESCRIPTION 3
8 MARKETING STRATEGY 4
9 7 Ps OF SERVICE MARKETING 6
10 SERVICE STRATEGY 7
11 SERVICE DESIGN/BLUEPRINTING 8
12 FINANCIAL ANALYSIS 10
13 OUR VISIT TO RETAIL OUTLETS 11
14 CUSTOMER SURVEY QUESTIONNAIRE 12

3. 1
INTRODUCTION
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. Total consumption expenditure is expected to reach
nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per cent
of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India
is the world’s fifth-largest global destination in the retail space.
India is the world’s fifth largest global destination in the retail space. In FDI Confidence Index,
India ranks 16th (after U.S., Canada, Germany, United Kingdom, China, Japan, France, Australia,
Switzerland and Italy).
MARKET SIZE
Retail industry reached to US$ 950 billion in 2018 at CAGR of 13 per cent and expected to reach
US$ 1.1 trillion by 2020. Online retail sales are forecasted to grow at the rate of 31 per cent
year-on-year to reach US$ 32.70 billion in 2018. Revenue generated from online retail is
projected to grow to US$ 60 billion by 2020.
Revenue of India’s offline retailers, also known as brick and mortar (B&M) retailers, is expected
to increase by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.
India is expected to become the world’s fastest growing e-commerce market, driven by robust
investment in the sector and rapid increase in the number of internet users. Various agencies
have high expectations about growth of Indian e-commerce markets.
Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8
billion 2017 supported by growing exposure of international brands amongst Indian youth and
higher purchasing power of the upper class in tier 2 and 3 cities, according to Assocham.
INVESTMENT SCENARIO
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totalling
US$ 1.85 billion during April 2000–June 2019, according to the Department for Promotion of
Industry and Internal Trade (DPIIT).

4. 2
With the rising need for consumer goods in different sectors including consumer electronics
and home appliances, many companies have invested in the Indian retail space in the past few
months.
India’s retail sector investments doubled to reach Rs 1,300 crore (US$ 180.18 million) in 2018.
Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in Wal-
Mart India Pvt Ltd.
GOVERNMENT INITIATIVES
The Government of India has taken various initiatives to improve the retail industry in India.
Some of them are listed below:
 The Government of India may change the Foreign Direct Investment (FDI) rules in food
processing, in a bid to permit e-commerce companies and foreign retailers to sell Made
in India consumer products.
 Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online
retail of goods and services through the automatic route, thereby providing clarity on
the existing businesses of e-commerce companies operating in India.
ROAD AHEAD
E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of
products at the lowest rates. E-commerce is probably creating the biggest revolution in the
retail industry, and this trend would continue in the years to come. India's e-commerce industry
is forecasted to reach US$ 53 billion by 2018. Retailers should leverage the digital retail
channels (e-commerce), which would enable them to spend less money on real estate while
reaching out to more customers in tier-2 and tier-3 cities. The Union Budget 2019-20 is
expected to give boost to the rural consumption in India.

5. 3
It is projected that by 2021 traditional retail will hold a major share of 75 per cent, organised
retail share will reach 18 per cent and e-commerce retail share will reach 7 per cent of the total
retail market.
Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes,
favourable demographics, entry of foreign players, and increasing urbanisation.
DATA COLLECTED FROM- INDIA BRAND EQUITY FOUNDATION
COMPANY DESCRIPTION
Music preference is something that varies from person to person. Everyone wants
something that is unique to their ears and the retail chains of today fail to provide
customers with this service where they can truly arrive at their perfect choice of
headphones.
So, with this focus in mind, we have decided to start our own Headphone exclusive outlet
“Wavelength”. The aim of this retail outlet is to provide a service that major outlets fail to
provide which is arriving at the perfect headphones for a person after intensive testing.

6. 4
 Vision – “Become a market leader in headphone exclusive stores”
 Mission – “Have every individual carry a headphone in his pocket that he can truly call
his own”
 Motto- Our motto is to be the pioneer for headphone and speakers exclusive outlets.
MARKETING STRATEGY
SEGMENTATION: Market segmentation is a marketing term that refers to aggregating
prospective buyers into groups or segments with common needs and who responds
similarly to a marketing action. Market segmentation enables companies to target different
categories of consumers who perceive the full value of certain products and services
differently from one another.
We are segmenting the customers according to:
Demographic: Based on age profile
 Teenagers
 College Students
 Young professionals
 Old and Retired Individuals
Geographic: Based on Geographical location
 Urban
 Semi urban
Psychographic: Based on Lifestyle
 Explorer
 Fun loving

7. 5
Behavioral: Based on User status
 Potential User
 First time buyer
 Regular Customer
TARGETING: Targeting in marketing is a strategy that breaks a large market into smaller
segments to concentrate on a specific group of customers within that audience. It defines
a segment of customers based on their unique characteristics and focuses solely on
serving them.
We are targeting our customers according to:
Age group- The age group that we are targeting is 16- 40 years including teenagers, college
students and young professionals.
Explorers: People who are ready to try new products in the market and like to try new
technology as soon as it launches.
People residing in urban areas will be our target customers. Tier 1 and Tier 2 cities.
POSITIONING:
We want to position our brand as “the one stop solution for the audiophile in you”.
We want to be the best retailers for the speakers and headphones for our target customers.

8. 6
7 Ps OF SERVICE MARKETING:
1. Product: The product is an integral part of the service mix. We will follow a multi-
product strategy, i.e., offering many varieties of headphones by maintaining the best
quality.
2. Price: The pricing of the goods is such that it would be at par with the competitors but
also some discounts would be offered to the customers to attract them. Vouchers would
be given to referrals and this would help in customer retention too.
3. Place: The modes of distribution will be through direct sales from stores and online
ordering through store’s official website.
4. Promotion: Various mediums to be targeted for promotions will be paid advertisements,
TV ads, Word of the mouth, Social media promotions, sales promotions, events and
experiences.
5. People: Having skilled, knowledgeable and well-groomed employees would help in
maintaining customer relations effectively and efficiently. The employees would be
having a wide understanding of all the different headphones in store and can
differentiate between one another with their feel while using rather than just the
specifications. A specific code of conduct and standards will be followed for good and
consistent hospitality which involves a friendly environment.
6. Process: The process of the store is to be keep it simple and easy. There will be
dedicated channels to contact the customer support where the customers will be
assisted. There will be a defined process for returning products and for managing store.
7. Physical evidence: The physical evidence is the presence of the store. The store would
be organized with adequate labels, direction boards, pricing labels, and display areas.
The customer can have a look around and see the service offered by the store. A
pleasing and well-designed environment will be maintained to create a sense of
ambience. Also, the most unique physical aspect of our stores is that customers can
touch, feel and use any kind of headphones they wish before deciding to purchase.

9. 7
SERVICE STRATEGY
The sole aim of a service strategy is to provide the best customer satisfaction there is.
And in order to provide the best customer satisfaction for the retail sector, the
employees of the outlets, who are the main point of contact for the customers should
be trained effectively.
Based on our research on the topic it was found that, there exists a positive relationship
between internal marketing and job satisfaction/motivation for the employees. Hence,
for our new business, i.e. Wavelength, a retail outlet exclusively for mid-level to
premium headsets and speakers, we have decided to focus mostly on the improvement
of employee satisfaction and motivation to begin with, which will ultimately pave way to
provide the best customer satisfaction.
Other than that, some other service strategies that Wavelength will be following are:
 Attract customers with in-store experience
 Enhancing the assortment planning using AI
 Specially trained employees coach the customers through their decision journey
 Give the customers a greater connection to the products
 Simplify shopping experience at every stage

10. 8
SERVICE DESIGN/BLUEPRINTING

11. 9

12. 10
FINANCIAL ANALYSIS
Profit & Loss report for the
coming 3 years
2020 2021 2022
12 months 12 months 12 months
(In Lakhs) (In Lakhs) (In Lakhs)
I NCOME
Revenue from Operations
[Gross]
30 45 55
Revenue from Operations
[Net]
30 45 55
Other I ncome 0 2 2.5
Total Revenue 30 47 57.5
EXPENSES
Operating and Direct
Expenses
10 14 20
Employee Benefit Expenses 8 10 13
Finance Costs 12 6 5
Depreciation and Amortization
Expenses
1 1 1.5
M iscellaneous Expenses
Written Off
5 6 3.5
Other Expenses 6 6
Total Expenses 36 43 49
Profit/ Loss Before
Exceptional, Extra Ordinary
I tems and Tax
-6 4 8.5

13. 11
OUR VISIT TO RETAIL OUTLETS
Transcript
Altamash: Good evening Sir, we are coming from BIMTECH college, can we ask you a few
questions for our project?
Manager: Yes, sure you can ask
Gurpreet: Sir we would like to ask you about the Headphones and headphone related services
you offer
Manager: Yes, though headphones is not our primary product, we do offer a few varieties of
them. What do you want to know?
Altamash: What kind of headphones do you offer sir?
Manager: We have all kinds of products from local to branded. Prices vary from 250 to 300 for
wired and go up to 6000 for Bluetooth types.
Manikandan: Do you allow customers to test all the headphones before buying?
Manager: We allow testing for all the brands except Sony.
Manikandan: Why not Sony?
Manager: Because Sony does not allow us to break the seal before a purchase and gives us
demo units for the testing purpose.
Gurpreet: Sir do you allow the testing of Bluetooth speakers as well?
Manager: Yes, we do, once again for all brands except Sony.
Altamash: What is your strategy to turn a customer to purchase a product?
Manager: Our salesperson gives them a wide variety of options in their price range and they
can choose the one which is perfect for them.

14. 12
Gurpreet: Sir so how do you guys manage to compete with larger shops like Reliance Digital and
Chroma?
Manager: We allow testing for all headphones in our shop where these shops don’t allow that
as they don’t like to break the company seals in their products.
Altamash: What kind of after sales services do you provide sir?
Manager: We don’t do any repair work ourselves if the customer has some problem with the
product, but we replace the entire product and give them a new one. The distributer takes the
faulty product back from us.
Gurpreet: OK sir, thank you for your valuable time.
CUSTOMER SURVEY QUESTIONNAIRE RESPONSES
Questionnaire about understanding the Target Customers
Name *
Kanchan Agarwal
Age *
29
Gender *
Male
Female
Birth Place *
Dhanbad
City you are currently residing *
Gurgaon
Highest Qualification (For eg: MBA, M.Com, LLB, BBA) *
Chartered Accountant

15. 13
Profession (for eg: Manager, Executive, Doctor, Lawyer) *
Manager
Annual Income *
Below 5lacs
5-10 lacs
10-15 lacs
15-20 lacs
above 20 lacs
Do you use earphones/headphones? *
Yes
No
When was the last time you bought earphones/headphone? *
within last 30 days
1 to 3 months
3 to 5 months
more than 5 months
Channel of purchase *
Online
Offline (retail store)
Why did you choose this channel? Please elaborate *
Better discounts
Which brand did you purchase? *
JBL
What was the cost of your headphone/earphone? *
Rs 100-500
Rs 500-1000
Rs 1000-1500
Rs 1500-2000
Rs 2000-2500
Above Rs 2500
Are you planning to purchase this item again within next 2 or 3 months? *
Yes
No
Channel from which you are most likely to make this purchase? *

16. 14
Online
Offline
Can't say
Please elaborate why would you choose this channel? *
Better offers and discounts
Questionnaire about understanding the needs of Target Customers
Name *
Neha
Age *
23
Gender *
Male
Female
Profession (for eg: Manager, Executive, Doctor, Lawyer) *
Doctor
Annual Income *
Below 5lacs
5-10 lacs
10-15 lacs
15-20 lacs
above 20 lacs
Why did you visit this store? *
Better options
Would you like to visit an exclusive earphone/headphone store for making your purchase?
Yes
No
what do you look for when You buy earphones/headphones?
Quality, brand
Rate the below mentioned as per your priority

17. 15
Price
Service
Brand
Quality
Availability of products
How could retail stores improve the way headphones/earphones are presented?
Better display of product
Rate the existing stores on the following criteria:
Presentation of Earphones
Very Good
1
2
3
4
5
Very Poor
Ambiance of the store
very Good
1
2
3
4
5
Very Poor
Billing Experience
very Good
1
2
3
4
5
Very Poor
Aisle salesperson behaviour
very Good
1

18. 16
2
3
4
5
Very Poor
Availability of the brands
very Good
1
2
3
4
5
Very Poor
Pricing
very Good
1
2
3
4
5
Very Poor
Offers and discounts
very Good
1
2
3
4
5
Very Poor
Product trial
very Good
1
2
3
4
5
Very Poor

19. 17
What would have made your service experience better?
More variety