A PROJECT REPORT

ON

“RETAIL STORE OPERATIONS IN BRAND FACTORY PUNE”

FOR

BRAND FACTORY

CAMP, PUNE

(VENTURE OF PANTALOONS RETAIL INDIA LTD)

BY

KHANDADE SANJAY

UNDER THE GUIDANCE OF

DR. JYOTI MISRHA

SUBMITTED TO

UNIVERSITY OF PUNE

IN PARTIAL FULLFILMENT OF THE DEGREE OF

MASTERS OF MARKETING MANAGEMENT

( MMM )

THROUGH

VISHWAKARMA INSTITUTE OF MANAGEMENT

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KONDHAWA BUDRUK, PUNE-411048.ACKNOWLEDGEMENT

With great pleasure I express my gratitude to the management of BRANDFACTORY CAMP, PUNE (VENTURE OF PANTALOONS RETAIL INDIA LTD) forgiving me this golden opportunity to work as a trainee in their company.

The guidance and support provided by the company have really made the traininga learning experience for me. This short period was full of rich experience, which willdefinitely help me in my future career.

First of all, I would like thanking Mr. Dhairyashil Pradhan (Store Manager), Mr.Manoj singh (Operation Manager), Mr. Sanjay Hunje, Ms. Drhiti (H.R.) and other staffmembers for their valuable guidance and encouragement.

I would also like to thank for our honorable Director and college, project guidefor the motivation and guidance give to me.

Last but not least, I am grateful to Mr.Rajesh P. and all my friends for their helpand encouragement.

Pune khandade sanjay

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COMPANY’SNAME, ADRESS,PH.NO.,FAX NO,LOGO.

Ref. no. date-

TO WHOM OVER IT MAY CONCERN

This is certified that Mr.Khandade Sanjay an MMM student of Vishwkarma Institute ofManagemnet have undergone and completed a project on “RETAIL STOREOPERATIONS CARRIED OUT IN RETAIL STORES” in pune.

He has carried out this project for BRAND FACTORY (Venture of Pantloons RetailIndia Limited) from 01/06/07 to 31/07/07.

In this span of project duration his candidature was found to be verysincere&hardworking.

We wish him a bright future.

SIGN.MANAGER SEAL

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TITLE INDEX-

SR.NO TOPIC Page no

1 EXECUTIVE SUMMARY 5

2 COMPANY PROFILE 6 – 37

3 OBJECTIVE & SCOPE OF PROJECT 38 – 39

4 RESEARCH METHODOLGY 40 – 41

5 DATA ANALYSIS 42 – 56

6 LIMITATIONS 57 – 58

7 FINDINGS 59 – 60

8 CONCLUSIONS 61 – 63

9 RECOMMENDATIONS 64 – 65

9 BIBLIGROPHY 66 – 67

10 ANNEXURE 68 – 70

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EXECUTIVE SUMMARY

The objective behind making this project is to know how the Retail Store

operations are carried out in the retail industry.

It takes care of daily store operations like Visual Merchandising, Display

(Manuqueen,Dumy,etc.) Colour blocking, Stacking, Signages, Shelf talker, Grooming of

sales person, Brand name and advertisement, Cleaning, Price and Security Tag, Racking

capacity, Brand feedback, Requirments, Replenishment, Option plan(weekly bases),

which are done to allure the customers to come to the store and increase the bill size of

the organization. There are various strategies, discount offers and other activities, which

are used as a part of the store operations aspect of retail.

During my internship I was assigned on:

“Retail Store Operation carried out in Brand Factory.”

Title:

“RETAIL STORE OPERATIONS CARRIED OUT IN BRAND FACTORY (VENTURE

OF PANTALOONS RETAIL INDIA LTD)TYPES OF RETAIL STORES

COMPANY PROFILE

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COMPANY PROFILE

Pantaloon Retail India Ltd.Brand Factory

Pantaloon Retail (India)Limited, is India's leadingretail company with presenceacross multiple lines ofbusinesses. The companyowns and manages multiple

retail formats that cater to a wide cross-section of the Indian society and is able tocapture almost the entire consumption basket of the Indian consumer. Headquarteredin Mumbai ( Bombay), the company operates through 4 million square feet of retailspace, has over 140 stores across 32 cities in India and employs over 14,000 people.The company registered a turnover of Rs 2019 crore for FY 2005-06.

Pantaloon Retail forayed into modern retail in 1997 with the launching of fashionretail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarketchain that combines the look and feel of Indian bazaars, with aspects of modern retail,like choice, convenience and hygiene. This was followed by Food Bazaar, food andgrocery chain and launch Central, a first of its kind seamless mall located in the heartof major Indian cities. Some of it's other formats include, Collection i (homeimprovement products), E-Zone (consumer electronics), Depot (books, music, giftsand stationary), aLL (fashion apparel for plus-size individuals), Shoe Factory(footwear) and Blue Sky (fashion accessories). It has recently launched its etailingventure, futurebazaar.com.

The group's subsidiary companies include, Home Solutions Retail India Ltd,Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing. Thegroup also has joint venture companies with a number of partners including Frenchretailer Etam group, Lee Cooper, Manipal Healthcare, Talwalkar's, Gini & Jony andLiberty Shoes. Planet Retail, a group company owns the franchisee of internationalbrands like Marks & Spencer, Debenhams, Next and Guess in India.

FUTURE GROUP

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned tocater to the entire Indian consumption space. The Future Group operates through sixverticals: Future Retail (encompassing all retail businesses), Future Capital (financialproducts and services), Future Brands (management of all brands owned or managed bygroup companies), Future Space (management of retail real estate), Future Logistics(management of supply chain and distribution) and Future Media (development andmanagement of retail media).

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Future Capital Holdings, the group's financial arm, focuses on asset management andconsumer finance. It manages two real estate investment funds (Horizon and Kshitij)and consumer-related private equity fund, Indivision. It also plans to get intoinsurance, consumer credit and other consumer-related financial products and servicesin the near future.

Future Group's vision is to, "Deliver Everything, Everywhere, Everytime to EveryIndian Consumer in the most profitable manner." One of the core values at FutureGroup is, 'Indianess' and its corporate credo is – Rewrite rules, Retain values.

GROUP WEBSITES:

Futurebazaar.com

Futuregroup.in

Kshitijfund.com

FUTURE GROUP MANIFESTO

“Future”—the word which signifies optimism, growth, achievement, strength, beauty,rewards and perfection. Future encourages us to explore areas yet unexplored, writerules yet unwritten; create new opportunities and new successes. To strive for aglorious future brings to us our strength, our ability to learn, unlearn and re-learn, ourability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create futurescenarios in the consumer space and facilitate consumption becauseconsumption is development. Thereby, we will effect socio-economicdevelopment for our customers, employees, shareholders, associates and partners.Our customers will not just get what they need, but also get them where, howand when they need.

We will not just post satisfactory results, we will write success stories.

We will not just operate efficiently in the Indian economy, we will evolve it. Wewill not just spot trends, we will set trends by marrying our understanding of theIndian consumer to their needs of tomorrow. It is this understanding that hashelped us succeed. And it is this that will help us succeed in the Future. We shallkeep relearning. And in this process, do just one thing.

Group VisionFuture Group shall deliver Everything, Everywhere, Everytime for Every IndianConsumer in the most profitable manner.

Group Mission

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We share the vision and belief that our customers and stakeholders shall be servedonly by creating and executing future scenarios in the consumption space leading toeconomic development.

We will be the trendsetters in evolving delivery formats, creating retail realty, makingconsumption affordable for all customer segments – for classes and for masses.

We shall infuse Indian brands with confidence and renewed ambition. We shall beefficient, cost- conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united determinationshall be the driving force to make us successful.

CORE VALUES

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in our conduct.Introspection: leading to purposeful thinking.Openness: to be open and receptive to new ideas, knowledge and information.Valuing and Nurturing Relationships: to build long term relationships.Simplicity & Positivity: Simplicity and positivity in our thought, business andaction.Adaptability: to be flexible and adaptable, to meet challenges.

Flow: to respect and understand the universal laws of nature.

PARTNER COMPANIES

Pantaloon Industries Ltd.

Pantaloon Industries Limited was incorporated in 1987 and its shares are listed on the Bombay Stock Exchange. The main activities of PIL are to set up textile units and manufacturing and marketing of fabrics and readymade garments.

Home Solutions Retail (India) Ltd.

Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electronics and home services. It operates retail formats like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got It.

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Future Capital Holdings

Future Capital is the financial arm of the group and is involved in asset management (both private equity and real estate funds) with plans to get into other financial services including insurance, credit and other consumer related financial services. It’s associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit Investment Advisory Co. Ltd.

CovergeM Retail (India) Ltd.

ConvergeM Retail (India) Ltd., leads the group’s foray into the communication and IT products segment. It operates formats like M-Port, MBazaar and Gen M.

Indus League Clothing Ltd.

Pantaloon Industries Ltd.

Pantaloon Industries Limited was incorporated in 1987 and its shares are listed on the Bombay Stock Exchange. The main activities of PIL are to set up textile units and manufacturing and marketing of fabrics and readymade garments.

Home Solutions Retail (India) Ltd.

Home Solutions Retail (India) Ltd. (HSRIL) leads the groups foray in the home improvement and consumer electronics retailing segment. It caters to home management requirements and products, including furnishings and textiles, furniture, consumer electronics, home electronics and home services. It operates retail formats like Home Town, Furniture Bazaar, Collection I, E-Zone, Electronics Bazaar and Got It.

Future Capital Holdings

Future Capital is the financial arm of the group and is involved in asset management (both private equity and real estate funds) with plans to get into other financial services including insurance, credit and other consumer related financial services. It’s associate companies are Kshitij Investment Advisory Co. Ltd., Indivision Investment Advisers Ltd., and Ambit Investment Advisory Co. Ltd.

CovergeM Retail (India) Ltd.

ConvergeM Retail (India) Ltd., leads the group’s foray into the communication and IT products segment. It operates formats like M-Port, MBazaar and Gen M.

Indus League Clothing Ltd.

The group owns a majority stake in Indus League Clothing Ltd., one of the leading

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apparel manufacturers and marketers in India. Some of its leading brands include Indigo Nation, Scullers, Urbana, Urban Yoga and Jealous.

Galaxy Entertainment Corporate Ltd.

The group owns a stake in Galaxy Entertainment Corporate Ltd., that operates chains like Bowling Company, Sports Bar and Brew Bar.

JOINT VENTURES COMPANIES

Planet Retail Holdings Ltd.

The group is a joint venture partner in Planet Retail Holdings Ltd., which operates sports, lifestyle and leisure retail chain. It also owns the franchisee and distribution rights of brands like Marks & Spencer, Guess, Debenhams and Puma in India.

Footmart Retail

Footmart Retail is a joint venture with Liberty Shoes and is engaged in the retailing of footwear products in India.

GJ Future Fashions

GJ Future Fashions is a joint venture with kids apparel manufacturer - Gini & Jony.

CapitaLand Retail India

The group is a joint venture partner in CapitaLand Retail India, along with Singapore-based CapitaLand Limited. The company provides retail management services to retailproperties owned or managed by various group companies and investment funds.

ETAM Future Fashions India Pvt. Ltd.

ETAM Future Fashions India Pvt. Ltd., is a joint venture with French-retailer, ETAM and the group. The company is involved in manufacturing and distribution of women’sfashion and lingerie products.

Pantaloon is not just an organisation—it is an institution, a centre of learning &development. We believe that knowledge is the only weapon at our disposal and ourquest for it is focused, systematic and unwavering.

At Pantaloon, we take pride in challenging conventions and thinking out of the box, intravelling on the road less traveled. Our corporate doctrine ‘Rewrite Rules, RetainValues’ is derived from this spirit.

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Over the years, the company has accelerated growth through its ability to lead change.A number of its pioneering concepts have now emerged as industry standards. Forinstance, the company integrated backwards into garment manufacturing even as itexpanded its retail presence at the front end, well before any other Indian retailcompany attempted this. It was the first to introduce the concept of the retaildepartmental store for the entire family through Pantaloons in 1997. The company wasthe first to launch a hypermarket in India with Big Bazaar, a large discount store that itcommissioned in Kolkata in October 2001. And the company introduced the countryto the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched inJuly 2002 in Mumbai. Embracing our leadership value, the company launched aLL inJuly 2005 in Mumbai, making us the first retailer in India to open a fashion store forplus size men and women.

Today we are the fastest growing retail company in India. The number of stores aregoing to increase many folds year on year along with the new formats coming up.

The way we work is distinctly "Pantaloon". Our courage to dream and to turn ourdreams into reality that change people’s lives, is our biggest advantage. Pantaloon isan invitation to join a place where there are no boundaries to what you can achieve. Itmeans never having to stop asking questions; it means never having to stop raising thebar. It is an opportunity to take risks, and it is this passion that makes our dreams areality.

Come enter a world where we promise you good days and bad days, but never a dullmoment!

RETAIL MANAGEMENT COURSE

India is one of the youngest nations in the world with more than half the nation’spopulation below the age of 25 years! High aspiration levels and optimism of thisyoung India has been a key driver for consumption in India today. At Pantaloon, webelieve that the next phase of economic development in India will be consumption led.With the sustained and strong rates of economic growth, retail sales is expected tocross USD 400 billion by 2010, turning India into the biggest retail market in theworld!

Today, Pantaloon is one of the leading multi format retailer in India with presence infood, fashion, home solutions and consumer electronics, books and music, health,wellness and beauty, general merchandise, communication products, E-tailing andleisure and entertainment. As per our projections, our businesses would growmanifolds in the next few years, both in terms of new formats as well as the newlocations that we are planning to venture into. Hence, we are looking for bright, youngpeople like you to partner us in our growth journey.

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The two-year full time Post Graduate Retail Management program has been designedwith the intention of inspiring and preparing young graduates to be leaders in the fieldof modern retail. This course will combine the best of academic excellence and thenecessary practical training and corporate exposure that Pantaloon will provide. Weare proud to be associated with this venture and wish the program all the success.

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BRAND FACTORY

The area alotted to floors is as follows:Basement –5916Ground Floor—7273First Floor—4948Second Floor—5232Total—23369

CategoriesBasement—Jewellery, Watches, Eye ware, Kids, Infant Accessories, Ladies Ethnic, Toys,Ladies Westerns, Cosmetics, Perfums, Adipa.

Ground Floor—Footware, Mobiles, Planet Sport, Knits, Denims.

1st Floor—Mens Semi formals, Mens Semi Casuals,

2nd Floor—Mens Formals, Ethnics, Accessories.

Vendors and their Brands

Pantloons:John Miller, Lombard, Akkriti, Rig, All, Bare Leisure, Basics, JM Sports, T-2000, FFactor, Knighthood, Bare Denim, UMM, Chalk, Bare Kids, All Ladies, Honey, Ajile,Ladies Etnic.

Indus League:Indigo Nation, Scullers, Scullers for Her, Urbana, Urbana Yoga.

Madura Garments:Allen Solley, Louis Phillipe, Van Huesen, SF, Peter England, VDot.

Raymonds:Color Plus, Parx, Park Avenue, Zapp.

Primus:Levis, MTv, Dockers.

Arvind Mills:Excalibur, Flying Machine.

Brand Factory at Pune was started on 1st April, 2007 at Camp.

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Its main motto is to give discount through out the year (365 days) from 20 to 50%discounts. Its punch line is “Best Brands Smart Prices”. Its CEO is Mr. Vishnu Prasad(Brand Factory, Central). Brand Factory is the value added concept which helps toprovide garments even to the middle class people by offering them huge discounts. Mostof the Brand Factory outlets are situated 40 to 50 Kms away form the city except Pune. Ithas 4 outlets at Banglore, and one each at Hyedrabad, Ahmedabad and Pune. They arealso planning to open two more in Pune. Its targeted sales turnover is about 40 – 45crores of rupees upto March 2008. As it is a value added concept they concentrate moreon basic services and stock and staff.

It is divided into four categories—1st—Ladies and kids, 2nd—Ladies and gents casuals,3rd—Mens semi formals and casuals, 4th—Mens Formals.

Addresses of Brand Factory

AhmedabadAddress : 10 Acre Mall, Raipur - Kankaria Road, Ahmedabad - 380 022, Gujarat

Phone : 079 - 3028 2838

BangaloreAddress : 228,229, 231 & 232, Marathanalli Mali Rd, Bangalore - 560 037, Karnataka

Phone : 080 - 4013 9200

HyderabadAddress : 4-1-1001, Atria Mall, Abids, Hyderabad - 500 001, Andhra Pradesh

Phone : 040 - 4431 0000

PuneAddress : 1978 Convent Street, Opp. St Anne's School, Nxt to Shivaji Market Camp,Pune - 411 001, Maharashtra

Phone : 020 - 6628 3800

BrandFactory Brand Factory brings to the Indian consumers the promise of revolutionizing valueshopping by offering the best Indian and International brands at Smart PricesBrand Factory promises its customers that value shopping is not about seconds’experience, it’s not about a garage sale environment and it’s not about buying cheap.Instead, it’s all about an amazing experience of ‘Buying Smart’.The thought behind Brand Factory is to raise the bar of expectation and experiencewhen it comes to ‘Brand + Bargain Shopping’. Over the years Factory Outlets havebecome distinct shopping destinations with distinct audiences. With fashion cycles

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reducing, larger quantities of stocks are reaching factory outlets. But then what getscompromised in the process is the brand and its image.

The emphasis at Brand Factory is to offer the customer the widest range of brands andcategories possible at absolutely great prices, in an ambience that befits the brand. BrandFactory presents the brands in a fully air-conditioned, slick environment varyingbetween 70,000 to 1,50,00 square feet.

The stores offers a wide range of products including apparels for men and women; infantwear; accessories; cosmetics; footwear; sportswear, luggage; home linen and much more.

Brand Factory hosts several Indian and International fashion brands including Levis,Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip,Allen Solly, Reid and Taylor, Gini and Jony amongst others.

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INDIA RETAIL SCENARIO

Retailing in India is the largest employer after agriculture. It employs almost 7% of the totalwork force in India and has a contribution of 14% to the national GDP. In the year 2004 , thesize of Indian organized retail industry was Rs 28000 Crore, which was only 3% of the totalretailing market. Organized retailing is projected to grow at the rate of 25%-30% p.a. and isestimated to reach an astounding Rs 1,00,000 Crore by 2010. The contribution of organizedretail is expected to rise from 3% to 9% by the end of the decade. The projection for the year2005 is Rs 35000 Crore.

Though with a population of a billion and a middle class of 300 million (upper middle class=40, Middle class =150 & lower middle class = 110), organized retailing is still at its infancy inIndia. The great Indian middle class is estimated to grow to over 60 Crore by 2010 makingIndia one of the largest consumer markets of the world. It is projected that by the year 2010,65% of the Indian population will be in the age group of 10-49 years, which makes thescenario even more attractive. India has the largest retail network with 1.2 Crore outlets butonly 4% of them are larger than 500 sq. feet in size. USA on the other hand has 9 Lakh outletscatering to more than 13 times the total retail market size of India. Thus India has the highestnumber of outlets per capita in the world with a widely spread retail network but with thelowest per capita retail space (@ 2 sq.ft. per person). AT Kearney has ranked India as the 2ndmost attractive retail market after Russia, in its Global Retail Development Index 2004 report.

Retailing, one of the largest sectors in the global economy, is going through a transition phasein India. For a long time, the corner grocery store was the only choice available to theconsumer, especially in the urban areas. This is slowly giving way to international formats ofretailing.

Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-KSAreport says that the last few years have seen rapid transformation in many areas and the settingof scalable and profitable retail models across categories. Indian consumers are rapidlyevolving and accepting modern formats overwhelmingly. Retail Space is no more a constraintfor growth. India is on the radar of Global Retailers and suppliers / brands worldwide arewilling to partner with retailers here. Further, large Indian corporate groups like Tata, Reliance,Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc and also foreign investorsand private equity players are firming up plans to identify investment opportunities in theIndian retail sector. The quantum of investments is likely to skyrocket as the inherentattractiveness of the segment lures more and more investors to earn large profits. Investmentsinto the sector are estimated at INR 2000 - 2500 Crore in the next 2-3 years, and over INR20,000 Crore by end of 2010.

Few of India's top retailers are:

1. Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is alreadyIndia's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31 crores & by 2010; it is

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targeting revenue of Rs 8,800 Crore.

2. Food World : Food World in India is an alliance between the RPG group in India with DairyFarm International of the Jardine Matheson Group.

3. Trinethra : It is a supermarket chain that has predominant presence in the southern state ofAndhra Pradesh. Their turnover was Rs 78.8 Crore for the year 2002-03.

4. Apna Bazaar : It is a Rs 140-crore consumer co-operative society with a customer base ofover 12 lakh, plans to cater to an upwardly mobile urban population.

5. Margin Free : It is a Kerala based discount store, which is uniformly spread across 240Margin Free franchisees in Kerala, Tamil Nadu and Karnataka.

Wholesale trading is another area, which has potential for rapid growth. German giant MetroAG and South African Shoprite Holdings have already made headway in this segment bysetting up stores selling merchandise on a wholesale basis in Bangalore and Mumbairespectively. These new-format cash-and-carry stores attract large volumes from a sizeablenumber of retailers who do not have to maintain relationships with multiple suppliers for alltheir needs.

OPENING RETAIL TRADE FOR FDI IN INDIA

Retail sector has undergone significant changes and is fast emerging. Inviting forigninvestments to enter into retail trade in India is a progressive measure. India is currentlythe ninth largest retail market in the world. This sector witnessed transformation ofunorganized family owned retail formats to organized retailing. The retail revolution willrestructure the Indian economy and would be benificial to the consumers, small andmedium scale business and farmers. The emergence of organized retailing will helpaccelerate productivity growth, improve competitveness, provide better job opportunites,offer more product variety and develop the agriculture and processed food industries.

The retail industryis ready to grow as foreign investors show much intrest in theemerging Indian market. The growth of FDI in the retail sector will be benificial to theIndian economy in the long run. Retail sector liberalization leads to easier availability ofquality products in the country. The entry of foreign investment in retail sector indicatesthat the economic reforms are on the right path and like china, we can see a number offoreign retail giants in India. In India the total size of the retail market is Rs. 5,88,000cr,out of which Rs. 5,83,000 constitute the unorganized market and Rs. 5,000 cr constitutethe organized market. After agricultural sector, retail sector is the largest employer inIndia. India’s vast middle class and untapped retail industry are the most importantfactors which attract Foreign Direct Investment (FDI). Opening up of the retail sector toFDI will lead new economic benefits and will create more employment opportunites.

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Modern retail will be a win- win strategy for the consumer, the domestic trader and themultinational giants.

Retail industry is the world’s largest private industry with sales over $6 tn. Indiaemerged as the world’s second largest market after China and its growth is expected togrow from $394 bn to $608 bn by 2009. in India, nearly96% of the retail shops occupyfloor space of less than 500 sq ft. Modern retailing helps to integrate shopping centersmulti- storied malls and huge complexes offering shopping, entertainment and foodunder one roof. The retail sector in India is at a critical point where the growth oforganized retailing, growth of organized retailing, growth in the consumption andpurchasing power parity by the Indian population are going to reach new hieghts.

Till January 2006, the retailers entered the market through the franchising is a form oflicensing. Under franchising, an independent organization called the franchiser. Thefranchiser pays fee to the franchiser. In January 2006, the Indian Government decided toallow single- brand retailers to have up to a 51% stake in a local subsidiary. At present,multiple brands are not allowed to put in FDI, but these rules are expected to be relaxedwithin a few years. Sony and Nokia are some of the examples of single brand retailers.

Haryana – based company, Moja Shoes Private ltd. Had frist propsed to set up singlebrand retail store with FDI in the year 1995. This proposals approved by the FinanceMinister, involving FDI worth Rs. 371.84 cr in various sectors. The Moja-Tano jointventure would be setting up an exclusive retail outlet for Nike products which includefoot – wear, sportwear, boots, slippers, sandals, athletic shoes etc.

Organized retail sector play a significant role in the growth of the retail sector in India.More than 10% of the Gross Domestic Product(GDP) is generated by the Indian retailindustry which is considered as the largest source of employment. FDI in retailing helpsthe growth of the Fast Moving Consumer Goods sector(FMCG), HLL and Dabur toname a few.

The retail sector, on account of its seperated structure, faces the problems of limitedavailabilty of capital, manpower and suitable real estate options. India has around 70million small stores and a few major shopping malls are becoming common.Departmental stores are growing at the rate of 24%; 150 new shopping malls areexpected to be opened by 2008, as projected by the development plans. Ninety sevenpercent of the nation’s business is owned by many family- run, street corner stores. Theretail sector in India has been prospering and numerous local and multinationalcompanies have entered the organized segment ( modern retail ). The increase of doubleincome families in cities and metros has resulted in a substantial increase in the level ofdisposable incomes; this has created the need for the adoption of most efficient and costeffective logestic operations. Third party logestics (3PL) service providers play a vitalrole in such a situation and are expected to receive a huge reputation from the retailsector. Salary hike also helps to increase the spending power of the consumers.

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CHINA AND FDI

In 1992, China allowed FDI and now China’s retail industry is worth $580 mn and has14 global mega retailers.

Restristions involved are :

China allowed FDI in six major cities namely Beijing, Shanghi, Guangzhou,Tianjin, Dalian, Qungdao and Special Economic Zones (SEZs).

Initialy foreign ownership was restricted to 49% of joint ventures. Foreign retailer that operate large retail shops will have a limit of 50 units.

VARIOUS LESSIONS FROM CHINA

Strong proof in favor of FDI FDI improves the entire size of the industry After allowing FDI inflow, retailing in China has grown at a compound rate of

15% per annum Helps in employment potantial Helps in the development of modern formats Local players can survive and even beat foreign competition Scale is the key to success for local retailers.

Carrefore, the largest foreign player and the fifth- largest retailer in China, hasopened its 51 mainland outlat. Wal-Mart now has over 43 stores in 19 Chinese cities.It includes thirty supermarkets, three Sam’s Clubs and two community stores, hasstarted building a second store in Beijing. In July 2004, Tesco, the largest UK –based retail chain, acquired a 50% stake in the 25- store Hymall chain from itsTaiwnese owner. In December 2004, China opened up its retail sector completely.

The success of China in retailing has come through FDI. i.e.,

In 1996, Wal-Mart entered Chinese market. It has 43 stores in 19 cities. In 2003, it had sales of US$ 704 mn. It has employed more than 20,000 people. It has paid taxes of US$111mn in total.

RETAIL INDUSTRY IN INDIA

Retail industry in India accounts for 10% of its GDP and 8% of the employment to reach$17 bn by 2010. About 300 new malls, 1,500 supermarlets and 325 departmental storesare being built in the cities and metropoli. India has undergone a shopping revolution

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and a large population between 20-34 age groups in the urban regions, was boostingdemand by 11.1% in 2004-05. This has led to larger foreign retail investment and a moreliberal policy in foreign direct investment.

Retail sector is the fastest growing sector in the Indian economy. Traditional markets aremaking way for new formats such as departmental stores, hypermarkets, books,supermarkets and specialty stores. Modern style malls have begun apearing in metrosand would take care of the supply chain, logestics and other back end operations.International players like Tesco and Carrefore are expected to enter India vary soon.

MUMBAI’S HYPER CITY :

It is spread over 1,00,000 sq.ft. In spite of being surrounded by three popular shoppingmalls, it saw 12,500 daily footfalls by its second week against expectations of 3,500footfalls a day. The K Raheja group, originally a construction company, operates HyperCity and the Shopper’s Stop chain, and plans to open 55 hypermarkets by 2015.

PANTALOON RETAIL

Pantaloon retail, now part of the Future Group, is the biggest mover in the sector. Startedas an apparel chain, it has quickly expanded into lifestyle shopping malls, food malls,retail estates, general merchandise and the like. In the year 2005, it had a turnover ofUS$ 245 mn, and unaudited results for nine months up to march 2006 saw turnoverincrese even further to US$ 292 mn. It has aggressive growth plans in the retail sectorand plans to reach a monthly run rate of Rs. 2500 cr by june 2010. it is expected to open100 stores by December, 2007.

RELIANCE INDUSTRIES

Reliance Industries, with the initial investment of US$750 mn, is planning to luanch anationwide chain of hypermarkets, supermarkets, discount stores, departmental stores,convenience stores and specialty stores. Indias biggest industrial conglomerate also plansto invest US$5,6 bn in its subsidary, Reliance Retail. With an equity capital of US$2.24bn, it plans to set up a mixture of convenience stores and supermarkets around thecountry.

BHARTI GROUP

Bharti Group ( one of the largest private telcom service providers in India ) is alsoplanning to enter the retail business. Global luxuary brands have also begun investing inthe Indian retail market. It is joint venture with global major Wal- Mart and the group isexpected to have an estimated 6 million surface by 2008.

GLOBUS

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Globus has 28 stores. Will add 6 Westside stores, 5 landmark book stores and onehypermarket. Income from operations in 2006 was Rs. 2500 cr and growth rate was40%.

TRENT

Trent has 100 numbers of stores. It has aggressive growth plans in the retail sector, plansto reach a monthly run rate of Rs. 2500 cr by June 2010.

It is expected that by 2015, India’s retail sector could be grow to $600 bn. According toConfederation of indian Industry ( CII ) the Indian retail industry has the potential togrow from $300 bn to $600 bn by 2015. According to Maureen Johnson of Global MediaGroup, “Organized retailing in India can be achieved if greater emphasis is laid oncustomer relationship management. With skilled workforce and systematic approach,India will transform the traditional marketing landscape seamlessly”. The organizedretail sector is expected to grow at 6% by 2010 and touch a retail business of $17 bn asagainst the current growth of $6 bn.

Mumbai, Delhi, Chennai, kolkata, Banglore and Kanpur are the main cities andmetropoli which show prospects in retail business. International franchising in retailingwill emerge as a popular mode of retailing as there will be growing availabilityof brandsof both foreign and domestic companies acquiring strong brand equity for their productsin near future. The retail boom in India is likely to have an important effect on thecommercial real estate sector because the large metropoli and cities will have sizableretail construction projects underway. Rent Contral Act, Urban Land Ceiling Act andLand Acquistion Act untill amended, will continue to pull property markets, whichwould ultimately lead to high property pricec.

FOOD RETAIL

In India, food retail is the main player in the shopping scenario. Indian food industryforms 44% of the entire FMCG sales, is growing at 9% and has set the growth agendafor modern trade formats. The branded food industry is converting indian consumers tobranded food and 60% of the average Indian grocery basket comprises non- brandeditems. Hence, food retail also plays a vital role in the development of the Indianeconomy.

The various arguments gives in support for FDI in retail are

FDI helps to improve competition in the retail sector Offers quality products at reasonable prices Develop the market potantial Increase market share

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Greater exports as the global players will start sourcing products from Indiancompanies

Employment opportunites, with possibly higher wages Lower prices for consumers, multiple choices and higher spending by

consumers Development of Tourism Helps and development of agriculture and processed foo sector in India Helps to increase tax collection Provides global market for Indian producers Cold storage chains solve the perennial problem of wastage Greater investment in the food processing sector technology Better operation in production cycle and distribution channels

FUTURE PROSPECTS IN RETAIL BUSINESS

FDI helps to knit the global economies, societies and domestic players to aclosely integrative traditional village i.e., one is for all and all for one.

By the end of 2007, 68 million sq ft of mall space is expected to be available,which might lead to over – capacity of malls

Divson of labor, specialization, enhancement of productivity, developments,competition, challenges and innovations lead to the overall economic growth ofthe nations.

Deregulation of various ndustries, liberalization of trade, joint ventures andcross-border mergers and acquisitions have become a driving force for increasedFDI.

Technology, management expertise, market intelligence and productdevelopments are some of the opportunities and challenges to domestic business.

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RETAIL STORE OPERATIONS

The retail store is the place where customers take a decision on the purchase of theproducts offered by the retailer. The store is also influences the perceptions thatcustomers form in their minds about the store, the products, services and staff. From themanagement's point of view, operations of the store are a major element of the cost. As aconsequence, the store itself becomes a critical asset of the retail business and it isimperative that the operations are managed well to achieve and sustain customersatisfaction and be cost effective.

Managing store operations for a retail business of any size or complexity, from theneighborhood grocer to the national retail chain, is a challenging task. It requiresintegration among various functions within the store. When all functions are performed inan integrated manner, the store operations run smooth y.

KEY ROLES IN A STORE ENVIRONMENT

The retail store is of prime importance to the retail organization, for two reasons. The firstreason is that the retail store is the primary source of revenue for the retailer and thesecond reason is that it is the point where the customer actually interacts with the retailstore lies with the Store Manager.

The Store Manager has to play a dual role in a retail environment. On the one hand, he isresponsible for the various members of the staff and team who report to him and enablethe smooth functioning of the day-to-day operations of the store. On the other hand, healso has to ensure that the policies and the guidelines as laid down by the managementare adhered to by the store and all the employees within the store. The people-intensiveand customer interactive nature of their work means that store manager play a critical rolein ensuring that the store supports the overall mission of the company. Typically, the storemanager is responsible for all the activities that are conducted within the environs of thestore and would include the opening of the store on time, scheduling of staff, cleanlinessgrievances and complaints.

While a store manager may not personally perform all these functions, he would beresponsible for the tasks being performed. Thus, there may be other individuals whohandle these tasks, but the overall responsibility of ensuring that they are performed asper the guidelines laid down by the company, rests with the store manager. Thus, if onewere to enlist the responsibility of a store manager, they would include:

CUSTOMER SERVICE

Install in the employee, the meaning and importance of customer service asoutlined retail philosophy.

Promote and monitor the quality of service among the staff through trainingand by acting as a positive role model.

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Be personally available to all customers to communicate and identify theirneeds and to address their questions or concerns.

BUDGETING AND PLANNING

Ensure that goals will be met through appropriate planning and organizationof staff, inventory and expenses, for short and long term success.

Develop and monitor the capital expense budget to ensure that the store isproperly maintained and upgraded so as to meet the high maintenancestandards that reflects the GPIW image.

Monitor a loss prevention program to protect the company's inventory andassets.

PERSONNEL

Hire the right people for the right job. Inspire employees so that each person contributes to the productivity of the

store.

Delegate the work load appropriately and effectively.

Write performance evaluations and goal assessments for the Assistant StoreManager.

With the Assistant Store Manager, evaluate all store employees; ensure thatreviews are given on schedule and documentation is received by the HumanResources Departments according to the guidelines outlined by it.

When necessary, discipline employees according to the company'sdisciplinary policies.

COMMUNICATION

Communicate with the regional office/ head office as per the requirements laidby the organization with reference to sales, targets, customer service, eventsand local issues.

Hold staff meetings to boost employee morale and drive for achieving theresults needed.

Ensure that company policy and procedures are communicated in a timelymanner and adhered to strictly.

Motivate and develop staff in order to encourage their professionaldevelopment.

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LEGAL COMPLIANCE

Ensure that the store is in compliance with all employment laws, includingthose regarding wage and hour, human rights and equal employmentopportunities.

Maintain safe working conditions for employees; resolve safety concernsquickly.

Ensure store security from internal and external theft and get to know theproper apprehension and prosecution for your State.

Depending on the size and the structure of the organization, there may be levels ofAssistant Manager, etc.

the other important position within the retail store environment is that of a Cashier. Thecashier in a retail store is a person who basically, is responsible for transacting theexchange of money or credit with customers in return for merchandise or services. Thecashier in a retail store is responsible for billing, collection of cash, credit card, foreigncurrency, travelers cheques or gift vouchers, as may be applicable. The necessary duediligence and precautions need to be taken when accepting the different forms ofpayment.

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ELEMENTS/ COMPONANTS OF RETAIL OPERATIONS

In order to ensure a smooth flow of operations at the store level, it is necessary that themanagement defines processes and has the people and the resources to important them.

The tasks to be performed and the processes are usually defined in a Store OperationsManual. This document lists the tasks which needs to be carried out at the store level; itstates the responsibility and the time period in which these tasks need to be performed. Awell-prepared operations manual or blue print is the starting point of efficient storeoperations.

Typically in a retail store, the following tasks need to be performed:

1. Store Administration and Management of the premises:2. Managing inventory and display:

3. Managing Receipts:

4. Customer service: and

5. Managing Promotions, Events, Alliances and Partnership

STORE ADMINISTRATION AND MANAGEMENT OF THEPREMISES

MANAGEMENT OF THE PREMISES

managing the operations of a retail store starts by determining how the tasks pertaining tothe premises are to be performed. Firstly, the duration of the hours for business need to bedetermined. It is also necessary to specify with whom the responsibility of opening andclosing the store lies with.

Some consideration which need to be taken into account while determining the businesshours are: the target audience for the store and the kind of products which are to beretailed. For example, a supermarket selling groceries will need to have early openinghours as compared to a lifestyle store, which may open a little late in the day and remainopen for longer hours in the evening. The second factor which affects the working hour

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of a retail store, is the store location. A free standing store can operate at hours that itchooses to, while a store which is a part of a shopping center or mall will need to followthe hours decided upon by the management of the mall.

Security of the store premises and of the merchandise in the store is equally important.the size of retail store and the level of operations determine the level of security required.A small independent retailer may not really need security for his premises, but a largedepartment store may consider it necessary. Security of the premises is necessary in orderto ensure that miscreants do not spoil the retail. Store security of merchandise is neededto ensure that pilferage of merchandise or shrinkage as it is commonly termed is minimal.Inventory shrinkage may arise due to theft to buy employees, customers or by error onthe part of store at the time of receiving merchandise.

A large numbers of retailers across the world use specially designed tags, which areattached to products. these tags are sensed by the electronic devices specially designed todetect them and are usually placed at the store entrances and exists. If an attempt is madeto take the product out of the store without removing these tags, an alarm goes off , thusalerting the store personnel. The other device used for monitoring the movement ofcustomers and staff, so that they can be checked each time they leave and enter the storepremises

STORE ADMINISTRATION

Store administration deals with various aspects like the cleanliness of the store premises,maintenance of the store facade and the display windows, etc. Administration is also beresponsible for utilizing the store personnel effectively. Time-keeping for the store staff isimportant. It is also necessary to keep track of holidays and the shifts that the staff maybe required to work for.

The premises of the store need to be maintained as per the standards decided upon by themanagement. This involves the task of cleaning the store and arranging the merchandisebefore the first customer can walk into the store.

An important task of administration involves ensuring that all the required permissionsand licenses to run a retail establishment are procured from the right authorities.

MANAGING INVENTORY AND DISPLAY

The task of allocating the merchandise to the various stores usually rests with themerchandise management team or the category manager, as the case may be. At the storethe store staff managers this inventory. To enable them to work efficiently, completeprocedure for the handling of merchandise at store level needs to be documented.

Responsibilities with respect to merchandise at the store level involve receiving and inwarding the goods. Once the merchandise is received at the store, the quantity and otherdetails like color, style and size have to be checked with the document accompanying the

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goods, to detect any discrepancies. In the case of most large retailer, using a hand heldscanner, the merchandise is scanned and the system updated for the stocks received.Merchandise may be received at the store from a Central Warehouse, a RegionalDistribution Center, from a supplier or from another store. Proper documentation alsoneeds to be done when returning goods to the various locations as and when required.The procedure to be followed for shop soiled goods and customer returns also needs to beclear.

An integral part of managing inventory at the store level is displaying it correctly. Thebest merchandise may lie unsold if it is not displayed in a manner that is appealing andconvenient for the customer. For example, in a supermarket, if 5ltr packs of vegetable oilare placed on the topmost shelf, it may be inconvenient for the customer to pick one upand carry, considering the fact that most of the customers at a supermarket would bewomen. In case the retailer is running any theme promotion or campaign, the products onoffer need to be displayed correctly, and replenished once sold.

MANAGING RECEIPTS

Managing receipts involves defining the manner in which the retailer is going to receivepayment for the sales. The most common method for receiving payments for goods soldin India, is by cash or by credit card. While most of the large retail store would accepteither of the above forms of payment, a small local retail store may accept only cashpayments. Other modes of receiving payment are by way of cheque or a debit card. Somestore also have a co-branded cards, which can be used for payments.

The use of credit cards in India is largely an urban phenomenon. Most large departmentstores have started accepting credit cards as a mode of payment. The credit card chargespaid by the retailer depend on the volume of business transacted by the retailer and therate negotiated on the basis of the future business that can be offered by the retailer. Theprocedure for accepting payment by way of credit cards and collecting payment from thebank needs to be clearly understood by the staff responsible for this function.

CUSTOMER SERVICE

The customer service policy to be adopted by the retailer is decided upon by the topmanagement. This is actually put into practice by every person working within the retailstore. Customer service does not have to begin and at the customer service counter in theretail store. Each person on the floor of the retail store can ensure that the customer whocomes in contact with him or her, is comfortable and has a pleasant shopping experience.This is something which has to be imbibed in them, and this has to be a top downapproach.

An important aspect which affects a customer's perceptions of the retail store. Is theexperience that he has while billing the purchased by him. While a customer may spendhours choosing the product that he likes, he does not like waiting for a long time at thetime of payment. Long queues may result in some disgruntled customers. Store

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operations need to be geared to handle such a situation. Many stores, infact, train eachmember of the staff to handle the cash counter. Many supermarkets and other retailerhave also introduced express checkouts for customer's who have bought a limited numberof products does not have to wait in the same queue as a person buying a large number ofitems.

Retailer in India need to be sensitive to the issue of efficiency of billing at times when thenumber of people buying from the store increases substantially. Specific days of the weekmay show a trend of increased billing. This may also happen during a discount sale,Diwali, Durga Puja, Christmas, New Year and other such occasions. Mobile cashieringand the concept of fast lanes for billing is a concept yet to be explored by most of theretailer.

MANAGING PROMOTIONS, EVENTS, ALLIANCES ANDPARTNERSHIP

Events and promotions are vary much a part of the retail marketing scene. In order toenable the success of an event or a promotion, it is necessary that the store where theaction is to take place be geared for the same. This may require hiring of additional staff,working existing staff in shifts and running a short training programme on the features ofthe promotion, the hours and the specialty of the merchandise.

Many a times, a retail store may have tie up with a local partner to promote certainproducts or services. This has to be managed at store level. Managing alliances andpartnerships with local partners is also an important part of retail store operations.Display of merchandise and point of purchase material has to be managed at the storelevel.

The complexities of managing a retail store also depends on the type of retail store andthe products retailed. While the merchandise sold in a department store or a high fashionboutique changes from season to season, the expertise required for the operations of a asupermarket is very different. An integral part of managing a supermarket comprises ofunderstanding fresh produce, its storage needs and replacing it when needed. It alsoinvolves understanding the temperatures at which meat needs to be frozen, stored anddisplayed. Control of perishable and sanitation are two important aspects of theoperations of a supermarket.

Managing the operations of a retail store is a challenging task. Efficient operationsmanagement is necessary to archive the retailer's objectives and long term success.

The store is an important aspect of a retail business. Purchase decisions and theperception and image of the store are made here. From the management's point of view,operations of the retail business and it is imperative that the operations are managed wellto achieve and sustain customer satisfaction and be cost effective.

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Processes, people and tasks need to be defined by the management to ensure the smoothflow of operations. The Store Operations Manual is a document that lists the tasks, theresponsibilities and the time period in which these tasks need to be performed. A well-prepared operations manual or blue print is the starting point of efficient store operations.

The chief aspects of store operations include store administration and management of thepremises, managing inventory, display and receipts. Customer service and managingpromotions, events, alliances and partnership are also integral to operations.

CRM IN RETAILING-

CRM, or Customer Relationship Management, is the business strategies designed tooptimize profitability, revenue, retention and customer satisfaction. When used todescribe software, rather than business processes, CRM application are those that focuson relationship, rather than transactions.

Process/ Procedure of Relationship management

The Relationship marketing process is usually defined as series of stages, and there aremany different names given to these states, depending on the marketing perspective andthe type of business. For example, working from the relationship beginning to the end.

Interaction > Communication > Valuation > Termination

Awareness > Comparison > Transaction > Reinforcement > Advocacy

Suspect > Prospect > Customer > Partner > Advocate > Former Customer

Using relationship marketing approach, you customize programmes for individualconsumer groups and the stages of the process they are going through as opposed to someforms of database marketing where everybody would get virtually the same promotions,with perhaps a change in offer. The stage in customer ‘Life cycle’ determines themarketing approach used with customer.

The process of relationship marketing is about having an indirect conversation with thecustomer through analysis their behavior over time. The process of relationshipmarketing uses the event- driver tactics of customers retention marketing, but treatsmarketing as a process over time rather than single unconnected events.

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CASHIERING PROCESS IN RETAILING:

Individual accounting includes the concept that transaction amounts processed by eachindividual, including each check handling and depositing processes. Therefore, if thestamp that is used to restrictively endorse the back of a check is not unique to the cashier,for example, when a cashier either shares an endorsement stamp with other or uses ageneric endorsement stamp, it is preferable that the cashier initial the back of the check.Several campus units have two people who share cashiering duties and use the same cashdrawer. In this situation, individual accountability does not exit

Therefore, the unit manager needs to track the daily deposit reconciliation so if shortagesoccur frequently, additional controls are put in place. When cash, checks and othernegotiable instruments are transferred from one person to another, there should always bea document signed by both individuals that identifies each amount transferred bycategory, i.e. currency, coin check or any other negotiable instrument. The two signatureson the transfer form indicate that each person has counted and totaled the amounts andboth parties agree that the amount listed on the form is the amount actually transferred atevery step in the process.

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TYPES OF RETAIL STORES

SPECIALITY STORES: Specialty stores, as the name implies, are ones that carry anarrow product line with a deep assortment within that line. Typical examples arejewellery stores like Ranka Jewelers, P. N. Gadgil, watch stores like Titan, sporting goodsstores like Shakti Sports, Book stores like Crossword, and so on. These stores can befurther sub-classified on the basis of the degree of narrowness in their product lines.Consider the example of garments.

A Shopper’s Stop that retails readymade garments for the family is called single linestores. A Raymonds showroom that retail only men’s clothing and accessories is knownas a limited line store, and stores that retail designers clothes for men like Chirag Din,Louis Phillipe, and Van Huesen are known as Super Speciality Stores.

DEPARTMENT STORES: A department store carries several product lines, invariably allthat is required by a typical household. These lines include food, clothing, appliances andother household goods, home furnishings, and gifts and curios. In a typical departmentstore each product line is managed independently by specialist buyers or merchandisers.In India, these stores are still at the introduction phase and they are mainly located inmetros like Mumbai, Delhi, and Chennai and other cities like Bangalore and Hyderabad.

SUPERMARKET: This is a large, low cost, low margin, high volume, self serviceoperation designed to serve the customer’s needs for food, laundry, and householdmaintenance products. Once again, one doesn’t see these supermarkets in the true senseof the term in India. However, we believe that much of the future development is likely totake place in this type of retail outlet. This is largely because customers will have verylittle time to shop around. With more women being employed, shopping around or evenjust buying from corner shop is going to reduce. Another reason is that the customer ismore aroused of product quality and freshness when he or she buys his or herrequirements from a store like Food land. Moreover, the wide range of product mixcarried by these stores makes them a favorite’s retail outlet.

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CONVENIENCE STORES: These are generally food stores that are much smaller in sizethan supermarkets. They are conveniently located near residential areas and have longhours of operations, seven days a week, and carry a limited line of high turnoverconvenience products. In the Indian context, the old and faithful street corner grocerystore or cold storage or food store are the ones that can be called convenience stores.These stores serve a very useful purpose. Due to a high degree of personalized serviceand home delivery by store clerks, these store fill in a very important need of a housewife—that of not having to carry her purchases back home and also of not having to wait atthe store. Typically, she hands over her weekly or monthly requirements list to the owner,who then organizes the delivery. Since these stores are open long hours—around 10 to 12hours—everyday of the week and are used mainly for “fill in” purchases, they occupy aniche position in retail marketing. In India, convenience stores have been in existence forthe longest time.

DISCOUNT STORES: As the name implies, discount stores are the ones that sellstandard merchandise at lower prices than conventional merchants or stores by acceptinglower margins but pushing for higher sales volume. A true discount store has fourcharacteristics:

1. It regularly sells its goods at a discounted price2. It carries national or reputed brands to enhance its image

3. It keeps its operational costs to the minimum by emphasizing on self-service and“no frills” interiors

4. Its location tends to be in low rent areas, and it draws customers from even distantlocations.

Today, Big Bazaar and several other hypermarkets are delivering merchandise toconsumers at low prices. In fact, Big Bazaar’s strategy is to deliver best-value at thelowest price in the region in which its store is located.

Again, we see the growth of these stores in India because more and morecustomers are going to be price conscious and look for discount sales. As a matter of fact,these stores serve the middle class and lower middle class consumers’ need to buynational brands, but at a lower brands. Hence, the future in the Indian market belongs tothe discount stores.

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NON-STORE RETAILERS

Although more than 80 percent of retail marketing is done through retail stores, non-store retailing is also now just round the corner, and gradually gaining popularity in theIndian market. Some of these non-store retailing options are:

1. Automatic Vending Machines: These are very common in Europe and NorthAmerica for selling food products, soft drinks, newspapers, candy and cigarettes.These are coin-operated machines and are found in all those areas that have a highdensity of consumer traffic. An extension of these is automatic tellers in the bankswhich allow customers to perform any banking transaction, 24 hours a day andseven days a week. Today we see automatic vending machines selling hotbeverages, soups, soft drinks, chocolates at major airports and commercial centersin the country. Automatic tellers are being used by major foreign banks like HonkKong and Shanghai Banking Corporation and Citibank and many of the Indianbanks as well.

2. Direct Selling: Direct selling is another form which is going to re-emerge. Thepredecessors to modern direct selling are the itinerant peddlers who sold theirgoods at the customer’s doorstep. Today, direct selling is taking goods likecosmetics and personal hygiene products to homes and offices. In India, theoriginator of this concept is Eureka Forbes, who was the first to sell its vacuumcleaner on a door-to-door basis. Though this is an expensive alternative, it hasbeen preferred to store retailing primarily because the firm is able to competemore effectively in the market-place without having to give into the trade’sdemands.

3. Buying Services: A buying is a scoreless retailer serving specific client groups,usually employees of large organizations like companies, governments,universities, hospitals, etc. the organization’s members become members of thebuying service and are entitled to buy form a selective list of retailers who haveagreed to give discounts to the buying service members. Several consumerdurables companies like TVS-Whirlpool, Sony Orson, Bajaj Electricals and autodealers like Autoriders have had such arrangements with major industrial groupsand universities

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RETAIL MERCHANDISING –

Primary objective of any retail organization is to ensure sale of its merchandise.Merchandise are the different variety of goods which retailer brings for saleing the sameto the end user or ultimate customer. The success of retailing organization mainlydepends on the decisions retailer has taken about what is to be bought?, in whatquantity ?, and at what time? It is said that ‘goods well bought are half sold’. Thus,selection and presentation of merchandise is the key source of difference which allowsone retail store to differentiate itself from others. The different variety of merchandisebought by the retail organization has to reflect different market segment needs and wants.

Retail Merchandise Management focuses on planning and controlling of the retailinventories. What to buy, in what quantity and at what time are three important factors,merchandise management has to take into consideration. The complex role ofmerchandise management can be defined as under:

“Planning and implementation of the acquistation, handling and monitoring ofmerchandise categories for an identified retail organization is called as merchandisemanagement”.

From the above definition, it is clear that retail merchandise management involvesfollowing activities:

(1) Planning for merchandise acquisitation, from wholesaler or manufacturer.This requires investment decisions because retailer has to invest his fundsin various merchandise. Availability of funds decides variety and quantityof material to be acquired or purchased. Marketing considerations,merchandise strategy options.

(2) Quantity of material to be purchased is decided on the basis of inventorystock level, maximum stock level, re-ordering level are the importantlevels indicating stock of material to be held. These levels are decidedafter considering factors like demand in the market, time required for thereplenish the stocks, funds to be locked up etc. Maximum care is taken toensure that the goods are always available for supply. At the same timeunwanted material is not stocked.

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(3) In total merchandise planning, planning is made for acquisition plan isbased on (A) understanding the target market group, (B) collectinginformation on competitors and any new branch plan, (C) Taking intoconsideration branding and corporate policy, (D) Budget for merchandiseacquisition, (E) Negotiations with wholesaler, material distributionplanning is based on (a) Understanding selection process of consumer, (b)deciding upon core and seasonal merchandise, (c) Considering sale tostock level and finalizing different stock level.

It is observed that merchandise management is vary complex procedure and itrequire vary systematic approach with due considerations to the concept ofmarketing. For successful merchandise management optimal levels of stocks areto be ensured to improve cash flow and profitability.

FACTORS AFFECTING STORE LAYOUT

SPACE: The layout of store should be such that it provides the optimum space forcirculation around the store. Space must be used very effectively, with territorialareas planned to break up the store into logical sales sections and functional areassuch as changing rooms, restaurants and pay-points etc.

CLEAR AND STYLISH SINGNAGE: The retail store layout should be suchthat, it can be easily comprehensible so that the potential customer quicklyunderstands and assimilates the route they can negotiate past the merchandise.This is often successful achieved by the use of different floor coverings or clearand stylish signage which acts as clues to the customers.

MUSIC: Music can be changed to suit the type of shopper in the store such asplaying younger back ground music, when the customer is of younger youthgeneration. Faster or Slower music will affect the speed at which the shoppingoccurs. Varying the tempo of the music, at different times of day or in differentareas, to influences the pace of the store traffic movement.

Fragrance and scents of perfumes, leatherwear, houseplants, and so on mayinfluence the customers to purchase.

LIGHTING: Lightning is an important mood setter and very useful in theproduction of a desired ambiance. Lightning can be soft, bright or produce colourwashes. Different types of lightning can be used in combinations to createintrusting contrasts throughout a display area. The use of sophisticated lightingsystems allows the retailer to adopt the ambience at regular intervals. This can

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alter perceptions of the size of different areas, complement the merchandise bybringing out its colours and direct the attention of the customer’s gaze.

OBJECTIVE & SCOPE OF PROJECT

OBJECTIVE & SCOPE OF PROJECT

1. To find out the details of the operations carried out in the store.

2. To know what are the strategies used by the company to make the store attractive

to the customers.

3. To know the incentive schemes given to the employees.

4. To know how the sales reports are prepared and what strategies are used to

increase it.

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5. To know how the effeciency reports are prepared.

6. To know how the targets are set.

7. To know how the weekly rankings are set.

8. To know how the MIS reports are prepared.

9. To know how the roasters are prepared.

10. To know what is the discount structure.

11. To know the inventory management of the store.

12. To know the how the displays are created to attract customer.

RESEARCH DESIGN

METHOD OF DATA COLLECTION:

PRIMARY SOURCES Observing the daily operations carried out in the store.

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Studying the store operation like inventory and display, customer service, dailysales targets achivements and managing promotions and events

SECONDARY SOURCES

Periodicals like Retailer, Business Today, Business World, Books.

Various sites on the internet that give an in-depth analysis of retail status,operations in retailing, display, etc.

SAMPLE:

The sample would consist of people accustomed to shop in mall. Ideally thepeople forming the sample would be the customers actually shopping at Brand Factory.

SAMPLE SIZE:

The sample size would be at least 100 people.

TOOL FOR DATA COLLECTION:

Observation and study: Observation of the daily store operation carried out in the BrandFactory like visual merchindising and display, distribution of daily targets achivements,requirment of the new stock to each floor, arrenging the lunch break and tea breaks of theemployee etc. Study of these daily operation which carried out in Brand Factory helps indetermining the main functions of store operations.

Questionnaire: For consumers. This questionnaire is very critical in this research as itmeasures the guest satisfaction level which is the ultimate aim of any company. Thisquestionnaire will also help in determining what the consumers are looking for when theyshop at Brand Factory.

DATA ANALYSIS

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QUESTIONNAIRE

( customers response to the store operations carried out at Brand Factory )

Q-1) Through which medium you know about Brand factory?

a) News paper b) Radio c) Hoardings d) Friends e) Any Other Source

Q-2) which thing attracts you towards Brand Factory for shopping?

a) Quantity of brands

b) Quality of brands

c) Discount offer

d) Prices of products

Q-3) Are you like the location of Brand Factory ?

a) Yes

b) No

Q-4) Which section do you like more ?

a) kids and women

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b) casual

c) semiformals

d) formal

Q-5) Are you like the interior decoration of the brand Factory?

a) Yes

b) No

Q-6) Are you satisfied with service given by :-

1) Sales persons a) Yes b) No

2) Cash counter a) Yes b) No

3) Alteration desk a) Yes b) No

4) Exchange counter a) Yes b) No

Q-7) What do you want to add in Brand Factory?

_______________________________________________

_______________________________________________

Q-8) Are you satisfied with the range of brands in Brand Factory?

a) Yes

b) No

Q-9) Any other brand do you like to add in Brand Factory?

_______________________________________________

_______________________________________________

Q-10) Any problem you have face during shopping at Brand Factory?

_______________________________________________

_______________________________________________

Q-11) Do you want to shop at Brand factory again?

a) Definitely yes

b) Probably yes

c) Definitely not

d) Probably not

Q-12) Any other suggestions:

_______________________________________________

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_______________________________________________

______________________________________________.

Personal information:

Name: __________________________________________.

Age: ________. Sex: (Male / Female)

Address: __________________________________________

_________________________________________.

Contact no. : ________________. Mobile: _____________.

“THANK YOU”

Q-1) Through which medium you know about Brand factory?

a) News paper b) Radio c) Hoardings d) Friends e) Any Other Source

a) Newspaper

b)Radio c) Hoardings

d)Friends

e) Any OtherSource

30 30 20 10 10

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Interpretation:

From the above data it is concluded that from 100 people 60% of the customers come to

the Brand Factory by the medium Redio and News paper 20% by Hordings, 10% by

Friends and 10% by other sources.

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Q-2) Which thing attracts you towards Brand Factory for shopping?

a) Quantity of brands

b) Quality of brands

c) Discount offer

d) Prices of products

a)Quantity b)Quality c) Discount d)Prices45 15 30 10

Interpretation:

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From above data it is concluded that 45% of the customer come to Brand Factory for

shopping for quantity of the brands, 30% of customer for the discount offer, 15% for the

quality and remaining 10% for the prices.

Q-3) Do you like the location of Brand Factory ?

a) Yes b) No

a) Yes b) No70 30

Interpretation:

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70% of the customers are not like the location of the Brand Factory the customer wants it

at better location

Q-4) Which section do you like more ?

a) kids and women

b) casual

c) semiformals

d) formal

a)Kids &women b)Casual c) Semiformals d)Formal

15 45 25 15

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Interpretation:

From the above the data it is concluded that 45% of the customer most like the casual

section then after semiformal section ie 25% , 15% of the customer like the kids and

women section, only 10% of the customer like the formal section in Brand Factory.

Q-5) Do you like the interior decoration of the brand Factory?

a) Yes b) No

a) Yes b) No

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55 45

Interpretation:

55% of the customer like the interior decoration of the Brand Factory while 45% of the

customer didn’t lite it the suggest some changes in it.

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Q-6) Are you satisfied with service given by :-

1) Sales persons a) Yes b) No

1) Sales personsa)Yes b)No

55 45

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2) Cash counter a) Yes b) No

1) Cash countera)Yes b)No

65 35

50

3) Alternation Desk a) Yes b) No

1) Alternation Deska)Yes b)No

60 40

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4) Exchange counter a) Yes b) No

1) Exchange Countera)Yes b)No

62 38

Interpretation:

From the above data it is concluded that 55% of the customer satisfied with the Sales

persons of the Brand Factory and 45% of the customer are not satisfied by the Sales

persons. 65% of the customers are stisfied with the Cash counter while 35% are not, 60%

of the customers are like the Alteration desk 40% of the customer are not like it, and 62%

of the customer who came to the Brand Factory are satisfied with the Exchange counter

and 38% are not satisfied with it.

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Q-7) Are you satisfied with the range of brands in Brand Factory?

a) Yes b) No

1) Range of Brandsa)Yes b)No

80 20

Interpretation:

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80% of the customer come to the Brand Factory are satisfied with the product range of

the Brand Factory and 20% of the customer are want to add some more brands on to the

Brand Factory.

Q-8) Do you want to shop at Brand factory again?

a) ProbablyYes

b)DefinitelyYes

c) ProbablyNot

d)DefinitelyNot

40 9 35 16

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Interpretation:

From above data it is concluded that 35% of the customer probably want to shop again in

Brand Factory while 25% wants definetly to shop and 20% each to probably and

definatly not to shop again at Brand Factory.

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Q-9) Any other brand do you like to add in Brand Factory?

1. Zodiac

2. New Port

3. Omega

4. Taig Heiur

5. Apple

Q-10) Any problem you have face during shopping at Brand Factory?

1. Location

2. Drinking Water

3. Alteration Desk

4. Less Cash Counters

5. Sales Persons less Trained

6. Lifts, air conditioners not working

7. Parking Space

8. Exchange Counter

9. No fair pricing

Q-11) Any other suggestions:

1. Add more brands

2. Drinking water

3. Air conditioners

4. Trained sales persons

5. More cash counters

6. Alternation Desks

Q-12) What do you want to add in Brand Factory?

1. Party wares

2. Shoes

3. Food Bazaar

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4. More Variety

LIMITATIONS

The research is based primarily on Brand Factory in Pune and hence is not apicture of the retail industry of India as a whole.

This research is dependent upon the responses of the people surveyed hence theauthenticity of the information is questionable.

The research was to be completed in a given time frame and hence it was difficultto cover all aspects of the topic.

The sample on basis of which the data was collected was a small part which wasassumed to designate the whole.

The research is carried out in Brand Factory which is only one store in Pune sothe it is not possible to easy to study all the aspects of the research.

Time constraints were definitely there, because of allotted time to do the project

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FINDINGS

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From the above data analysis a number of facts can be found out:

From above analysis I have find here the store operations carried out in the BrandFactory are required to carried it properly.

Most of the customer come to the Brand Factory for shopping are not stisfied withthe customer service given to the customer so there is need to improvement incustomer service.

Many problems are created in the daily store operations carried out in BrandFactory like merchanising and planning.

Store operation also include the marketing and promotional activities but there isvary less promotional activities carried in Brand Factory.

There is need of well trained employees to carried out best store operations inBrand Factory

Daily planning is necessary to operate store operation effectively.

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There is not proper motivation to the employee to operate store operationeffectvely.

CONCLUSION

From start to end store operations play a significant role in any mall. Store operation is

important for efficient and effective sales of any retail store. Store operations teach us

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how to keep merchandise (Display, color blocking, Stacking, Hanging, etc).Most of the

activities carried out on the store are very important to attract customers, make pleasant

environment, make the shopping experience satisfactory, Incease the footfall.

At Brand Factory I came to know that how much the store operations are

important in retail industry and by which way the Indian consumers have accepted the

Retail Culture. Retail store operations are vary important part of retail industry. The main

store operation which carried out in Brand Factory are merchandising and display,

regularly cleaning of the floor, adding new stock regularly to attract the more customers.

Regular inventory and display of the latest fashionable merchandise is also vary

important part store operation which are carried out in Brand Factory. Indian consumer

being price sensetive and reluctant to accept changescan be attracted towards malls only

if they are served well.Hence, managers must concentrate that when the consumers enters

the mall he should feel familier to the atmosphere.At Brand Factory they stress on this

issue and keep the environment acceptable, pleasant, and familier by using best store

operations like proper customer care by providing them various services like Alteration

fascility, Exchange Counter and suitable parking place for their veicals . They keep 120

best brands and give heavy discounts throughout the year so that customers feel eagee to

enter the mall.

In Brand Factory I could learn how to carried out various retail store operations in

the store like inventory and display, arrenging the lunch and tea breaks of the employee,

distribution of daily targets and the achivements to the sales to the sales persons to

increase the sell of the store. Store operation also includes prepration of the stock

efficiency and oter reports, how to select brands, how to select light, music, how to

manage crowd flow, importance of cleanliness, service provided by CSA. I learnt a lot

more from this actual reaserch for the product of your company.

I had carried out the reserch to know how the store operations are carried out. I could

learn all the related operations with the help of the managers and the staff of the store.The

work given to me was carried out sincerely and at the best efforts by me. I came to know

all the activities in detail as mentioned in the objectives. All over it was a great

experience.

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RECOMMENDATIONS

From the analysis of the data I collected during the study I present followingRecommendations:

At the Brand Factory there is need to use the best store operations to attract morecustomers towards Brand factory.

Customers response to the store operations like customer service is not so good soit is necessary to provide best customer service.

Motivate properly to the employee to provide good customer service to thecustomers specially sales persons.

The main problem faced by the customer at Brand Factory are parking place andgood drinking water so it is necessary to solve this problem frist.

Proper display of each and every brand in every section is vary important forcustomers attraction.

To arrange customer flow in systamatic way by which the all floors and sectionsare are covered.

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Display of the discounts offer on every brand is shown systematicaly to attractcustomer.

More cash counters and alteration desk are need to added to the Brand Factory forbetter customer service.

Motivate to the employee to restrict them from internal theft which is majorproblem in each store.

More new ideas should applied for display of the merchandise to attract thecustomer

Recruit well trained candidates as sales person for better customer service.

Keep the environment suitable to the store by good ac facilitys,light music andenough space for customer circulation in the store.

Cleanliness in the store is vary important to attract to the customers towards thestore.

BIBLIOGRAPHY

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BOOKS:

international retail marketing - margaret bruce, christoper moore,

GRATE BRISTWISTLE

RETAIL MANAGEMENT - CHETAN BAJAJ,

RAJNISH TULI,

NIDHI .V. SHRIVASTWA.

RETAIL MANGEMENT A STRATEGIC APPROACH – BERMON, EVONS

RETAIL MANEGMENT - ICFAI

JOURENALS:

RETAIL BUZZ

RETAILER

WEBSITES: www.bigbazar.com ﾧwww.pantaloonretail.com ﾧwww.futuregroup.com ﾧwww.retailindia.com ﾧ

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ANNEXURE

QUESTIONNAIRE

( customers response to the store operations carried out at Brand Factory )

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Q-1) Through which medium you know about Brand factory?

a) News paper b) Radio c) Hoardings d) Friends e) Any Other Source

Q-2) which thing attracts you towards Brand Factory for shopping?

a) Quantity of brands

b) Quality of brands

c) Discount offer

d) Prices of products

Q-3) Are you like the location of Brand Factory ?

a) Yes

b) No

Q-4) Which section do you like more ?

a) kids and women

b) casual

c) semiformals

d) formal

Q-5) Are you like the interior decoration of the brand Factory?

a) Yes

b) No

Q-6) Are you satisfied with service given by :-

1) Sales persons a) Yes b) No

2) Cash counter a) Yes b) No

3) Alteration desk a) Yes b) No

4) Exchange counter a) Yes b) No

Q-7) What do you want to add in Brand Factory?

_______________________________________________

_______________________________________________

Q-8) Are you satisfied with the range of brands in Brand Factory?

a) Yes

b) No

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Q-9) Any other brand do you like to add in Brand Factory?

_______________________________________________

_______________________________________________

Q-10) Any problem you have face during shopping at Brand Factory?

_______________________________________________

_______________________________________________

Q-11) Do you want to shop at Brand factory again?

a) Definitely yes

b) Probably yes

c) Definitely not

d) Probably not

Q-12) Any other suggestions:

_______________________________________________

_______________________________________________

______________________________________________.

Personal information:

Name: __________________________________________.

Age: ________. Sex: (Male / Female)

Address: __________________________________________

_________________________________________.

Contact no. : ________________. Mobile: _____________.

“THANK YOU”

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