private labelled products at more outlet

8/8/2019 private labelled products at more outlet

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A management research

project onA comparative study between products

manufactured by Aditya Birla group and

other brands at MORE retail outlets.

FINAL EVALUATION REPORT

Presented by

BRIJESH JAI KRISHNA

(6NI14080)

IMBA

SEM-IX

ICFAI NATIONAL COLLEGE

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ABSTRACT

The main purpose of the research project was to study the consumer behavior of

customers of Aditya Birlas MORE retail store regarding the products of mores

own labeled brands of products and their comparison with that of competitor

product in quality, quantity, price, and discount aspects. A more retail store at

Mallikarjun nagar, present in Bheeramguda area was selected as the matter of

feasibility. Four different product categories were selected in both own label and

other brand label present at the more retail store. A direct interview has to beconducted with the employees of the store and with their customers. The

employees especially the stores manager will be questioned regarding the

performance of the own labeled product when compared to the other product. This

could be identified by getting the data regarding total sales per month. Also the

customers will be provided a short questionnaire in order to take their feed back

regarding the products.

Another purpose of the research was to study the retail market in brief since the

retail business is in boom and a highly marketing oriented business. So this would

enable to apply the marketing theoretical concepts in practical environment.

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1.INTRODUCTION

Retailing consists of the sale of goods or merchandise from a fixed location, such

as a department store, boutique or kiosk, or by post, in small or individual lots for

direct consumption by the purchaser. Retailing may include subordinated services,

such as delivery. Purchasers may be individuals or businesses. In commerce, a

"retailer" buys goods or products in large quantities from manufacturers or

importers, either directly or through a wholesaler, and then sells smaller quantities

to the end-user. Retail establishments are often called shops or stores. Retailers areat the end of the supply chain. Manufacturing marketers see the process of retailing

as a necessary part of their overall distribution strategy. The term "retailer" is also

applied where a service provider services the needs of a large number of

individuals, such as a public utility, like electric power.

QuickTime and a decompressor are needed to see this picture.

Shops may be on residential streets, shopping streets with few or no houses or in a

shopping mall. Shopping streets may be for pedestrians only. Sometimes a

shopping street has a partial or full roof to protect customers from precipitation.

Online retailing, a type of electronic commerce used for business-to-consumer

(B2C) transactions and mail order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to

obtain necessities such as food and clothing; sometimes it is done as a recreational

activity.

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DOES CONSUMPTION DRIVE RETAIL?? OR, DOES RETAIL FORCE

CONSUMPTION??

The latter has perfect logic. The problem isnt enough disposable income in this

country. There are innumerable statistics to prove that there is. The problem really

is that the disposable income isnt being driven into modern retail as much as it

should.

Why is that?

Perhaps we are not giving them compelling reasons to shop with. Perhaps our

product innovation, or our retail experience, just lacks that extra something.

Perhaps they dont generate the mysterious WOW! emotion that all successful

global retailers constantly aim at.

As we enter 2009, retailers across the country speak about the vision of change for

the year ahead. It is evident that customer retention is top of mind for every

retailer, regardless of format or size. It is clear that only by innovating on practices

and services offers will retailers in India be able to not just retain customers, but

also expand the consumer base.

Naturally, consumption needs to be pushed also for propelling manufacturing and

overall economic prosperity of the country. Which in a macro environment, would

result in higher disposable incomes and therefore, expenditures.

Bear in mind, however that growth in disposable incomes may not transfer

proportionately to domestic retailers. If our retailers from the smallest to the largest

do not offer experiences and services that match consumer expectations, the

disposable income will be spent elsewhere. As more an more Indians travel

overseas, more and more outflows of foreign exchange can be expected. That is,

unless we offer these consumers compelling reasons to walk into our stores.

The trick is in continuous innovation. Innovation in product, in operations, in

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retail environment, in services, in everything.

2.INDUSTRY PROFILE

Retail is not only an important aspect of the economic structure but very much apart of our lives . Although trading of goods have been in existence since the olden

days .It is only in the recent past that the buying and selling of goods have become

more of format and a brand dominated activity .The traditional form of

independently owned businesses co-exist along with the organized retail.

QuickTime and a decompressor are needed to see this picture. Organized retail has

emerged in a big way since 2000 onward and with that we are witnessing the

emergence of new forms of retailing.

The Indian retail industry is the fifth largest in the world. Comprising of organized

and unorganized sectors, India retail industry is one of the fastest growing

industries in India, especially over the last few years. Though initially, the retail

industry in India was mostly unorganized, however with the change of tastes and

preferences of the consumers, the industry is getting more popular these days and

getting organized as well. With growing market demand, the industry is expected

to grow at a pace of 25-30% annually. The India retail industry is expected to grow

from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.

According to the 8th Annual Global Retail Development Index (GRDI) of AT

Kearney, India retail industry is the most promising emerging market for

investment. In 2007, the retail trade in India had a share of 8-10% in the GDP

(Gross Domestic Product) of the country. In 2009, it rose to 12%. It is alsoexpected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to

grow to US$ 700 billion by 2010. By the same time, the organized sector will be

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20% of the total market share. It can be mentioned here that, the share of organized

sector in 2007 was 7.5% of the total retail market.

2.1TYPES OF RETAIL FORMAT:

Convenience store

Chain of stores

Franchise

Specialty store

Departmental store

Supermarket

Hypermarket

Shopping mall

Shopping plaza

Factory outlet

CONVENIENCE STORE

Ideally located close to residential areas to enable target customers have easy

accessibility and select convenient merchandise such as beverages, ready to eat

snacks, grocery etc.

EX;- Friendly neighbor hood grocery stores

CHAIN OF STORES

A single retailer establishes a chain of stores with its exclusive store design,

synergistic merchandising plan, promotion and service strategy and so on.

EX;- Raymond chain

FRANCHISE

Retail stores owned and operated by individual on behalf of and licensed by a big

supporting organization.

EX; - Pizza hut, NIIT, Mc Donald s

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SPECIALITY STORE

Retail shops displaying merchandise which have narrow product lines specializing

in a particular type of merchandise and offering specialized services to customers.

EX;-Park Avenue (By Raymond, it is a men specialty store)

DEPARTMENTAL STORE

A store having several departments such as clothing, personal care & cosmetics,

books and stationeries, house ware goods, electronics etc .All under a single roof,

although individually functioning as a strategic business unit (SBU).

EX;-Life style, Pantaloon

SUPERMARKET

A store which is departmentalized, with self service offering groceries, limited

non-food items such as health & beauty related items & general merchandise.

EX; - Food world outlets, Nilgiris

HYPERMARKET

Hypermarkets are very large in size, carry grocery, hardware, and appliances and

other general merchandise , with self service facilities usually located in warehouse

type structure with large parking facilities.

EX; - Big bazaar (Pantaloon Retail India)

SHOPPING MALL

A shopping mall is an arrangement of retail stores and providing the right mix of

Shopping, food courts and entertainment and parking facilities.

EX;-In Bangalore, the Forum, Central, Sigma mall

SHOPPING PLAZA

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The shopping plaza will be a configuration of many tenants using space of 1000 sq.

ft as so far putting up stores within a single building.

EX;-Fountain Plaza

FACTORY OUTLETS

Factory outlets or stores are owned and operated by the manufacturers who sell

discounted merchandise or factory seconds or cancelled orders to consumer at low

price.

EX;- Bata factory outlet

2.2Origin and development of the industry

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP

and around eight per cent of the employment. Retail sector is one of India's fastest

growing sectors with a 5 per cent compounded annual growth rate. India's huge

middle class base and its untapped retail industry are key attractions for global

retail giants planning to enter newer markets. Driven by changing lifestyles, strong

income growth and favorable demographic patterns, Indian retail is expected to

grow 25 per cent annually.

It is expected that retail in India could be worth US$ 175-200 billion by 2016.

The organized retail industry in India had not evolved till the early 1990s. Until

then, the industry was dominated by the un-organized sector. It was a sellers

market, with a limited number of brands, and little choice available to customers.

Lack of trained manpower, tax laws and government regulations all discouragedthe growth of organized retailing in India during that period. Lack of consumer

awareness and restrictions over entry of foreign players into the sector also

contributed to the delay in the growth of organized retailing. Foundation for

organized retail in India was laid by Kishore Biyani of Pantaloon Retails India

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Limited (PRIL). Following Pantaloon's successful venture a host of Indian

business giants such as Reliance, Bharti, Birla and others are now entering into

retail sector.

Retailing is the most active and attractive sector of last decade. While the retailing

industry itself has been present since ages in our country, it is only the recent past

that it has witnessed so much dynamism. The emergence of retailing in India has

more to do with the increased purchasing power of buyers, especially post-

liberalization, increase in product variety, and increase in economies of scale, with

the aid of modern supply and distributions solution.Indian retailing today is at an

interesting crossroads The retail sales are at the highest point in history and new

technologies are improving retail productivity. though there are many opportunities

to start a new retail business, retailers are facing numerous challenges.

A number of factors are driving India's retail market. These include: increase in the

young working population, hefty pay-packets, nuclear families in urban areas,

increasing working-women population, increase in disposable income and

customer aspiration, increase in expenditure for luxury items, and low share of

organized retailing. India's retail boom is manifested in sprawling shopping

centers, multiplexmalls and huge complexes that offer shopping, entertainment and

food all under one roof.

But there is a flip side to the boom in the retail sector. It is feared that the entry of

global business giants into organized retail would make redundant the

neighbourhood kiryana stores resulting in dislocation in traditional economic

structure. Also, the growth path for organized retail in India is not hurdle free. The

taxation system still favours small retail business. With the intrinsic complexities

of retailing such as rapid price changes, constant threat of product obsolescence

and low margins there is always a threat that the venture may turn out to be a loss

making one.

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2.3 Growth & Present status of the industry .

Retailing is emerging as a sunrise industry in India and is presently the largest

employer after agriculture. In the year 2004, the size of Indian organized retail

industry was Rs 28,000 Crore, which was only 3% of the total retailing market.

Retailing in its present form started in the latter half of 20th Century in USA and

Europe and today constitutes 20% of US GDP. It is the 3rd largest employer

segment in USA. Organized retailing in India is projected to grow at the rate of

25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crore by 2010.

The contribution of organized retail is expected to rise from 3% to 9% by the end

of the decade. The projection for the current year ie 2005 is Rs 35,000 Crore.

In India it has been found out that the top 6 cities contribute for 66% of total

organized retailing. With the metros already been exploited, the focus has now

been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far

been concentrated in the metros is beginning to percolate down to these smaller

cities and towns. The contribution of these tier-II cities to total organized retailing

sales is expected to grow to 20-25%. In the year 2004, Rs 28,000 Crore organized

retail industry had Clothing, Textiles & fashion accessories as the highest

contributor (39%), where as health & beauty had a contribution of 2%. Food &

Grocery contributed to 18% whereas Pharma had a contribution of 2%.

Globally, the retail industry has grown at a brisk pace with a Compounded Annual

Growth Rate (CAGR) of 7.77% during the period 2001-2006. The growing

expanse of the top global retailers has ensured globalization of the industry;

however the opportunity for growth of organized retail is immense in countries

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such as India, S. Korea, and Vietnam etc. where organized retailing is still at an

ascent stage.

The Indian retail industry has witnessed a massive transition during the last

few decades. The Indian retail has grown at a CAGR of 11.2% during the period

FY04-FY07, with food and grocery accounting for the major share. Despite the

industry being dominated by the unorganized retailers, the organised retailing

revenues have soared at a CAGR of 19.5% during the period FY04-FY07. The

apparel & footwear segment occupies the major share in the organised retail pie.

The Indian retail industry has strong linkages with the economic growth and

Development of the economy. It is primarily characterized by its hierarchical

growth structure, high working capital requirements etc. The factors such as

rising urbanization, growing consumer class, growing per capita expenditure,

greater interest evinced by the Venture capitalists / Private equity firms in

the industry etc. have been driving the growth of organised retail.

The growth of modern retailing has led to the emergence of varied formats such

as Departmental stores, Supermarkets etc. In addition, few other formats such as

rural retailing, E-retailing, luxury retailing etc. too have found favours with

the Indian retailers. Each format being distinct from the other, the viability

of their operations depends upon various factors such as average footfalls,

sales per sq.ft etc. However the numerous licensing requirements as compared to

other countries have proved to be a bottleneck in the growth of Indian

retailing. We have identified further requirements, advantages and disadvantages

associated with the organised as well as unorganised retailing in India. On the basis

of a detailed analysis incorporating the experience of other retailing locations

across the globe, We feel that the co-existence of the organised and unorganized

retailing in the Indian context cannot be denied.

To estimate the size of the Indian retail industry and the penetration levels of

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organized retail in the urban and rural Indian markets for the period FY08-FY11,

we have evolved an industry model incorporating three different scenarios i.e.

Optimistic , Most Likely & Pessimistic. We expect that with the growing reach of

modern retailers in the rural and urban areas, the penetration level of organized

retailing would continue to grow, thereby resulting in the organized retail growth,

surpassing the growth of total Indian retail during the period FY08-FY11.

Companies Mentioned:

* Pantaloon Retail India Ltd. (PRIL)

* Shoppers Stop Ltd.

* Vishal Retail Ltd (VRL)

* Koutons Retail India Ltd.

* Trent Ltd.

The Indian retail though largely dominated by the unorganized retailers has

witnessed a massive transition in the last decade. Of the total retail sales, the food

& grocery segment constitutes the major chunk. However in case of organised

retail, the apparel & footwear segment stands as the major contributor. With varied

segments of retailing i.e. Food & Grocery, Clothing & Footwear, Furniture &

Furnishing, Jewellery, Beverages .

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2.4Future Of The Industry

India retail industry is the largest industry in India, with an employment of around

8% and contributing to over 10% of the country's GDP. Retail industry in India is

expected to rise 25% yearly being driven by strong income growth, changing

lifestyles, and favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175-

200 billion. India retail industry is one of the fastest growing industries with

revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of

5% yearly. A further increase of 7-8% is expected in the industry of retail in India

by growth in consumerism in urban areas, rising incomes, and a steep rise in rural

consumption. It has further been predicted that the retailing industry in India will

amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer

buying behavior and the whole format of shopping also altering. Industry of retail

in India which has become modern can be seen from the fact that there are multi-stored malls, huge shopping centers, and sprawling complexes which offer food,

shopping, and entertainment all under the same roof.

India retail industry is expanding itself most aggressively; as a result a great

demand for real estate is being created. Indian retailers preferred means of

expansion is to expand to other regions and to increase the number of their outlets

in a city. It is expected that by 2010, India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing

at a rate of 9% annually. The branded food industry is trying to enter the India

retail industry and convert Indian consumers to branded food. Since at present 60%

of the Indian grocery basket consists of non- branded items.

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India retail industry is progressing well and for this to continue retailers as well as

the Indian government will have to make a combined effort.The slowdown in

consumer spending cut many retail stocks in half in 2008, but retailers have seen a

surprising rally recently. Many of the worst-performing stocks of 2008 apparel

chains, department stores and Internet retail firms have done best in the last

several weeks. For stock pickers , retail poses a dilemma: Based on recent data,

theres no simple way to tell where consumer spending is headed. So, with the

current outlook so uncertain, one possible strategy for retail investors is to begin

thinking very long term. Major changes that could hit the retail industry between

now and 2015.The aging of the Baby Boom generation and coming of age of

Generation Y will cause a change in consumer demand and spending habits, the

report says. Retail stores that are able to adapt to the new consumer demographics

will thrive while those unable to adjust will fail.

To survive in the next decade, retailers must adapt to a number of changing factors:

1. The new generation of consumers contains a more tech-savvy and more diverse

group that holds different values than its parents.

2. The one-size-fits-all approach of the mass chain store format will not be viable.

Stores able to respond to individual tastes will become dominant.

3. The belief that bigger is better will break downaggregation of small will be

the new big, says the report. The new consumer will be more intent on quality

than quantity. Mass production models will not succeed.

4. Ability to keep close contact with customers through mobile devices will be

important to maintain quality of service and product as well as receive customer

feedback.

5. The still large group of Baby Boomers will remain active in the economy.

However, their demands will shift from goods to service and healthcare.

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6. Retailers may also expand in developing economies such as India and China.

These growing markets have much more room to expand along traditional modes

than developed nations. However, American companies will be late to the game,

says the report, and will need to compete with both European and local retailers.

India retail industry is progressing well and for this to continue retailers as well as

the Indian government will have to make a combined effort.The slowdown in

consumer spending cut many retail stocks in half in 2008, but retailers have seen a

surprising rally recently. Many of the worst-performing stocks of 2008 apparel

chains, department stores and Internet retail firms have done best in the last

several weeks. For stock pickers , retail poses a dilemma: Based on recent data,

theres no simple way to tell where consumer spending is headed. So, with the

current outlook so uncertain, one possible strategy for retail investors is to begin

thinking very long term. Major changes that could hit the retail industry between

now and 2015.The aging of the Baby Boom generation and coming of age of

Generation Y will cause a change in consumer demand and spending habits, the

report says. Retail stores that are able to adapt to the new consumer demographics

will thrive while those unable to adjust will fail.

To survive in the next decade, retailers must adapt to a number of changing factors:

1. The new generation of consumers contains a more tech-savvy and more

diverse group that holds different values than its parents.

2. The one-size-fits-all approach of the mass chain store format will not be

viable. Stores able to respond to individual tastes will become dominant.

3. The belief that bigger is better will break downaggregation of small will

be the new big, says the report. The new consumer will be more intent on

quality than quantity. Mass production models will not succeed.

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4. Ability to keep close contact with customers through mobile devices will be

important to maintain quality of service and product as well as receive

customer feedback.

5. The still large group of Baby Boomers will remain active in the economy.

However, their demands will shift from goods to service and healthcare.

6. Retailers may also expand in developing economies such as India and China.

These growing markets have much more room to expand along traditional

modes than developed nations. However, American companies will be late

to the game, says the report, and will need to compete with both European

and local retailers.

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3.COMPANY PROFILE

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune

500. It is anchored by an extraordinary force of 130,000 employees, belonging to

30 different nationalities. In the year 2009, the Group was ranked among the top

six great places for leaders in the Asia-Pacific region, in a study conducted by

Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has

been adjudged the best employer in India and among the top 20 in Asia by the

Hewitt-Economic Times and Wall Street Journal Study 2007.

Over 60 per cent of the Group's revenues flow from its overseas operations. The

Group operates in 25 countries India, UK, Germany, Hungary, Brazil, Italy,

France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,

Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh,

Vietnam, Malaysia and Korea.

Globally, the Aditya Birla Group is:

:: A metals powerhouse, among the world's most cost-efficient aluminium and

copper producers. Hindalco-Novelis is the largest aluminium rolling company.

It is one of the three biggest producers of primary aluminium in Asia, with the

largest single location copper smelter

:: No.1 in viscose staple fibre

:: The fourth-largest producer ofinsulators

:: The fourth-largest producer ofcarbon black

:: The tenth-largest cement producer

:: Among the best energy-efficient fertiliserplants

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http://www.hindalco.com/http://www.novelis.com/http://www.grasim.com/http://www.adityabirlainsulators.com/http://www.birlacarbon.com/http://www.grasim.com/http://www.adityabirlanuvo.com/indogulf/index.aspxhttp://www.novelis.com/http://www.grasim.com/http://www.adityabirlainsulators.com/http://www.birlacarbon.com/http://www.grasim.com/http://www.adityabirlanuvo.com/indogulf/index.aspxhttp://www.hindalco.com/


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In India:

:: Largest cement producer

:: Largest premium,branded apparel company:: The second-largest producer ofviscose filament yarn

:: The second-largest in the chlor-alkali sector

:: Among the top five cellular operators

:: Among top 10 Indian BPO companies by revenue size

:: Among the top five asset management and private sector life insurance

companies

:: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where

success does not come in the way of the need to keep learning afresh, to keep

experimenting.

Beyond business

Transcending business for over 50 years now, the Group has been and continues to

be involved in meaningful welfare-driven initiatives that distinctly impact the

quality of life of the weaker sections of society in India, South-East Asia and

Egypt.

In India, the Group's social projects span 2,500 villages. It reaches out to six

million people annually through the Aditya Birla Centre for Community Initiatives

and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is

healthcare, education, sustainable livelihood, infrastructure and espousing social

causes.

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The Group runs 42 schools, which provide quality education to over 45,000

children in India's interiors. Of these, 18,000 children receive free education. An

additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in

India, more than 500,000 patients are given extremely subsidised medical care.

The Group transcends the conventional barriers of business and reaches out to the

marginalised because of its conviction of bringing in a more equitable society.

3.1Vision

To be a premium global conglomerate

with a clear focus on each business.

3.2 Mission

To deliver superior value to our customers,

shareholders, employees and

society at large.

3.3 Values

IntegrityCommitmentPassion

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SeamlessnessSpeed

3.4 ABOUT LOGO

The name Aditya Birla evokes all that is positive in business and in life. It

exemplifies integrity, quality, performance, perfection and above all character.

Our logo is the symbolic reflection of these traits. It is the cornerstone of our

corporate identity. It helps us leverage the unique Aditya Birla brand and

endows us with a distinctive visual image.

Depicted in vibrant, earthy colours, it is very arresting and shows the sun rising

over two circles. An inner circle symbolising the internal universe of the Aditya

Birla Group, an outer circle symbolising the external universe, and a dynamic

meeting of rays converging and diverging between the

two.

Through its wide usage, we create a consistent, impact-

oriented Group image. This undoubtedly enhances our profile among our

internal and external stakeholders.

Our corporate logo thus serves as an umbrella for our Group. It signals the

common values and beliefs that guide our behaviour in all our entrepreneurial

activities. It embeds a sense of pride, unity and belonging in all of our 130,000

colleagues spanning 25 countries and 30 nationalities across the globe. Our logo

is our best calling card that opens the gateway to the world.

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3.5. Kumar Mangalam Birla

Chairman, The Aditya Birla Group

Mr. Kumar Mangalam Birla is Chairman of the US$ 29 billion Aditya Birla

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Group and Indias first truly multinational corporation. An iconic figure, Mr.

Birla holds several key positions on various regulatory and professional boards.

He is a director of the Central Board of Directors of the Reserve Bank of India

and chairman of the Staff Sub-Committee of the Central Board of the Reserve

Bank of India. He serves on the Prime Minister of Indias Advisory Council on

Trade and Industry. He is the chairman of the Board of Trade constituted by the

Union Minister of Commerce & Industry, also chairman of the Ministry of

Company Affairs Advisory Committee.

Additionally, he is on the National Council of the Confederation of IndianIndustry (CII); the Apex Advisory Council of the Associated Chambers of

Commerce and Industry of India, New Delhi and the Advisory Council for the

Centre for Corporate Governance.

He served as the chairman of Securities and Exchange Board of Indias

Committee on Corporate Governance, and as chairman of SEBIs committee on

insider trading. He authored the nations first report on corporate governance.

On the academic front, Mr. Birla is the Chancellor of the Birla Institute of

Technology & Science (BITS), Pilani. He is also a director on the G.D. Birla

Medical Research & Education Foundation. Additionally, he is on the Asian

Regional Advisory Board of the London Business School which provides

counsel on the schools strategy and curriculum. He is also Honorary Fellow ofthe London Business School (LBS), a title conferred upon him by the governing

board of the LBS.

Several accolades have been showered on Mr. Birla such as the Asia Pacific

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Global HR Excellence Exemplary Leader Award and NDTVs Global Indian

Leader of the year, and Most Socially Responsible Leader by Outlook

Business Magazine all in 2007. Earlier, the Lakshmipat Singhania IIM,

Lucknow National Leadership Award 2006, Business Leader, was conferred

on Mr. Birla by the Prime Minister. Mr. Birla also has been named the World

Economic Forums Young Global Leader, Ernst & Young Entrepreneur of

the year", the Economic Times Business Leader of the year, Business

Indias "Business Man of the year,Business Todays Young Super Performer

in the CEO Category, NITIEs Business Visionary, and the Bombay

Management Associations Management Man of the year.

In recognition of his exemplary contribution to Indian business, the Banaras

Hindu University awarded the D.Litt (Honoris Causa) Degree to him. The

Honorary Degree of Doctor of Science (Honoris causa) was bestowed on Mr.

Birla in recognition of his invaluable contribution in the field of business

administration by the G.D. Pant University of Agriculture & Technology,

Pantnagar. For the development of technology and for his involvement in

bringing the country at par with other countries in the field of industries, the

SRM University in Tamil Nadu conferred the Degree of Doctor of Literature.

To salute his entrepreneurial excellence and exemplary contribution to Indian

business, the All India Management Association conferred its Honorary

Fellowship on him. Likewise, the National HRD Network named him

Outstanding Business Man of the year.

A chartered accountant, Mr. Birla earned an MBA from the London Business

School, where he is also an Honorary Fellow. Mr. Kumar Mangalam Birla and

his wife, Mrs. Neerja Birla, have three children, Ananyashree, Aryaman Vikram

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and Advaitesha.

3.6

Sectors Company Units in India and overseas

Non-ferrous metals Hindalco Industries Ltd. Aluminium

Renukoot alumina, primary metal and

fabricated products, power generation

Renusagar power generation

Samri, Lohardaga, Durgmanwadi,

Chandgad, Maliparbat bauxite mines

Muri, Belgaum alumina refining

Hirakud smelting, power generationTalabira coal mines

Silvassa, Kalwa, Kollur foil

Belur, Taloja sheet rolling

Mouda sheet rolling, concast

Alupuram extrusions, smelter

Copper

Dahej copper cathodes, continuous cast

copper rods, sulphuric acid, DAP and

complexes, precious metals, power

Novelis Inc.* North America (United States and Canada)

11 rolled products facilities

Europe (France, Germany, Italy,

Luxembourg, Switzerland and the United

Kingdom) 13 rolled products facilities

Asia (Malaysia and South Korea) 3 rolled

products facilities

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South America (Brazil) 2 aluminium

smelters and 2 rolled products facilities

Aditya Birla Minerals Limited* Australia Nifty Copper Mines

Australia Mt. Gordon Copper Mines

Hindalco-Almex Aerospace

Limited** Aurangabad aerospace alloys

Utkal Alumina International

Limited*

Baphlimali, Rayagada, Odisha bauxite

mines

Doragurha, Rayagada, Odisha alumina

plant

Cement grey and

white

Grasim Jawad, Rawan, Shambhupura, Malkhed,

Reddipalayam, Kotputli composite plants

Hotgi, Bhatinda, Panipat, Aligarh, Dadri

grinding units

Kharia Khangar white cement plants

Thirty-five ready-mix concrete plants

UltraTech Cement Limited* Awarpur, Hirmi, Jafrabad, Kovaya,

Tadipatri composite plants

Arakkonam, Durgapur, Ginigera,

Jharsuguda, Magdala

Ratnagiri grinding units

Thirty-four ready-mix concrete plants

Textiles (pulp, fibre,

yarn, fabric, apparel)

Grasim Nagda viscose staple fibre (VSF)

Harihar VSF, rayon grade pulp (RGP)

Kharach VSF

Malanpur yarns

Grasim Bhiwani Textiles

Limited*

Bhiwani fabrics, yarns

Thai Rayon Thailand VSF

PT Indo Bharat Rayon Indonesia VSF

Birla Jingwei China VSF

AV Cell** Canada RGP

AV Nackawic** Canada paper grade pulp

Birla Lao Pulp and Plantations Laos eucalyptus plantations and DGP

Thai Acrylic Fibre Thailand acrylic fibre

Alexandria Fiber Egypt acrylic fibre

Aditya Birla Nuvo

Unit Indian Rayon

Veraval (Gujarat) viscose filament yarn

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Unit Jaya Shree Textiles Rishra (West Bengal) linen fabrics, flax

yarns, worsted yarns, wool tops

Unit Madura Garments Bengaluru branded apparel retail

Indo Thai Synthetics Thailand yarns

PT Elegant

Indonesia yarnsPT Indo Liberty Indonesia yarns

PT Sunrise Bumi Indonesia yarns

Indo Phil Textiles Philippines yarns

Chemicals Grasim Nagda caustic soda

Aditya Birla Nuvo

Unit Indian Rayon Veraval (Gujarat) caustic soda

Aditya Birla Chemicals (India)

Limited

Garhwa Road, Palamu caustic soda

Tanfac** Cuddalore fluorine chemicals

Aditya Birla Chemicals

(Thailand) Limited

Thailand

chlor-alkali products, epichlorohydrin

epoxy resins

sodium phosphates, speciality

phosphates

sodium sulphite, sodium metabisulphite

Thai Peroxide** Thailand hydrogen peroxide

Aditya Birla Grasun** China food grade phosphoric acid

PT Indo Raya Kimia Indonesia carbon disulphide

Pan Century Surfactants Philippines

fatty alcohols

fatty acids

glycerine

Agribusiness Aditya Birla Nuvo

Unit Indo Gulf

Jagdishpur (Uttar Pradesh) fertilisers,

seeds, agrochemicals

Carbon black Aditya Birla Nuvo

Unit Hi-Tech Carbon

Renukoot (Uttar Pradesh) and

Gummidipoondi (Tamil Nadu) carbon

black

Alexandria Carbon Black Egypt carbon black

Thai Carbon Black Thailand carbon black

Liaoning Birla Carbon China carbon black

Mining Essel Mining & Industries Barbil, Odisha iron ore mining

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Ferro chem Essel Mining & Industries

Limited

Vapi noble ferro alloys

Wind power Essel Mining Dhule wind power generation

Insulators Aditya Birla Nuvo

Unit Aditya Birla Insulators

Halol (Gujarat) and Rishra (West Bengal)

insulatorsTelecommunications Idea Cellular Limited Mumbai (corporate office) cellular

services

Financial services Birla Sun Life Insurance

Company Ltd.**

Mumbai (head office)

Birla Sun Life Asset

Management Company Ltd.**


Aditya Birla Finance Ltd.*

(erstwhile Birla Global Finance

Company Ltd.)


Aditya Birla Money Mart Ltd.*

(erstwhile Birla Sun

Life Distribution Company Ltd.)


Birla Insurance Advisory &

Broking Services Ltd.*


Aditya Birla Money Ltd.*

(erstwhile Apollo Sindhoori

Capital Investments Ltd.)

Chennai (head office)

Aditya Birla Capital Advisors

Pvt. Ltd.* (Private Equity)


IT-ITeS Aditya Birla Minacs Worldwide

Ltd*

Bengaluru, Mumbai, Baroda, Aurangabad,

Kolkata, Chennai India

Manila Philippines

Russelsheim Germany

Peterlee, Canary Wharf United Kingdom

Budapest Hungary

Halifax, Port Hawkesbury, Moncton,

Niagara Falls, Oshawa, Peterborough,

Toronto, Hamilton and Mississauga

Canada

Austin, Farmington Hills, Flint, Indianapolis,

Milwaukee, Costa Mesa, Pleasanton USA

Novelis (India) Infotech Limited India

Retail Aditya Birla Retail Limited 640 supermarkets

Trading solutions Swiss Singapore OverseasSingapore, UAE, China, Indonesia,

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Enterprises Pte Limited

Vietnam, Bangladesh, Sri Lanka, Ivory

Coast, Tanzania, Myanmar, Canada,

Russia, Benin

* subsidiaries

** joint ventures

3.7 ORIGIN OF THE ORGANISATION.

The year 2007, for organised retail has begun with a bang. Birlas, who weremulling over their entry in multi format multi brand retail for quite some time,

have finally arrived. The Rs. 40,000 crore, Aditya Birla group, through unlisted

Aditya Birla Retail, in a single stroke, has acquired a bouquet of over 172 retail

stores, operating in southern India, with predominant presence in Andhra Pradesh,

under popular brand names of Trinethra and Fabmall. While most of the group

stores operate under Trinethra brand, stores located in Karnataka and Kerala

operate under Fabmall brand, although, 50,000 sq. ft. big hypermarket in Mysore is

known as Fabcity.

Trinethra, prior to this acquisition, was aggressively pursuing its plan to set up new

stores in tier II cities such as Mysore, Coimbatore and Tirupur in southern region

of the country. Trinethra, which has adopted convenience and supermarket

formats, is focused on selling food and groceries in residential areas, although

some of the stores also offer pharmaceutical products. Trinethra also offers value-

added services like forex remittances and bill payments. A typical Trinethra store

ad measures around 2,500 sq.ft. in retail space. The chain of stores are serviced by

an infrastructure of central warehouses in Andhra, Karnataka, Tamilnadu and

Kerala, with a space of about 50,000 sq ft each

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Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more., a

name reflective of its commitment to offering consumers a more fulfilling retail

experience. The re-branding follows the acquisition of the Trinethra Super Retail

that includes the retail brands Fabmall, Trinethra and FabCity by Aditya Birla

Retail in January 2007.

The two decades old, Rs. 250 crore, 2,500 employees strong, Hyderabad based,

Trinethra group, originally was founded by Mr Anjaneyulu Kakkera.

Aditya Birla Retail Limited is the retail arm ofAditya Birla Group, a USD 28

billion Corporation. The Company ventured into food and grocery retail sector in

2007 with the acquisition of a south based supermarket chain. Subsequently

Aditya Birla Retail Ltd. expanded its presence across the country under the brand

"more." with 2 formats

3.8 Supermarket & Hypermarket.

Supermarket

more. for you - Conveniently located in neighbourhoods, more. supermarkets

cater to the daily, weekly and monthly shopping needs of consumers. The product

offerings include a wide range of fresh fruits & vegetables, groceries, personal

care, home care, general merchandise & a basic range of apparels. Currently, there

are over 600 more. supermarkets across the country.

Hypermarket

More .MEGASTORE - is a one-stop shopping destination for the entire family.

Besides a large range of products across fruits & vegetables, groceries, FMCG

products, more.MEGASTORE also has a strong emphasis on general

merchandise, apparels & CDIT.

Currently, two hypermarkets operate under the brand more.MEGASTORE in

Mysore and Vadodara.

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Own label Food Brands

more., Feasters, Kitchen's Promise, and Best of India

Home & Personal care brands

more., Enriche, 110%, Pestex, Paradise, and Germex

With a vision is to be among the leading retail players in India, Aditya Birla

Retail launched its first supermarket, more. for you in May, 2007. Since its

launch, the more. for you has an aggressive roll out, reaching a total count of over

600 stores across India today.

more. for you is your neighborhood supermarket which takes care of your

everyday household needs and more. Spread across a wide range of products of

food and non food items, ranging from basic necessities such as, fruits and

vegetables, staples, personal care, home care, household care products, general

merchandise, and dairy products, more. for you provide a one stop solution for

your grocery shopping needs. Also in store are essentials such as, innerwear, kids

essentials, and a pharmacy, bakery and a mobile store. With a range of over 4,000

products, we are able to fulfill your daily shopping needs all under one roof, at a

convenient location close to you. The more. for you promises a world class

shopping experience, with a modern store layout, easy to shop with friendly staff at

hand to provide assistance, electronic billing facilities and a colorful ambience. At

more. for you we offer branded food and grocery products sourced from the

leading brands from all over India, along with private label brands from our own

portfolio - available in a broad selection for you, always giving you the best

possible value for your money.

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3.9 GROWTH AND DEVELOPMENT OF ORGANISATION

.With the opening of first store in Pune and announcing its retail plans, the Aditya

Birla Group has finally joined the crowded retail space. And from the voices in the

media, its not far when the group has a pan-India retail presence.

Organised retailing is just 3% of total retail market but still a debatable point

whether the Birlas are an early or a late entrant. Since Pantaloons, Spencers,

Subhiksha and Reliance have already set up a good base, More stores may find

hard to invade the territory which these stores have already captured in their

respective locations.

But even then, key factors which may influence the buying pattern of consumers

hinge on convenience in terms of distance from home, pricing and giving the right

productmix catering to different social and economic class. Since, organised retail

has thin margins and high costs of around 15% to the revenues (as compared to 5-

6% of local grocery stores), retail companies should promote more their in-house

brands which have a higher mark up.Aditya Birla More strategy to offer budget and high value private labels under

More for you and Select seems to be like successful UKs Tesco model of

having separate labels with separate quality and prices for the same product

category. Till Bharti- Walmart enters the market, the key competitor for More

shall be Reliance Retail as they have similar store formats and product offerings.

But the real tough part will be when these two companies launch their

hypermarkets, in which Pantaloons Big Bazaar still rules the space in terms of

nationwide presence , and then differentiation would play a key role.

But like telecom, when the markets get mature, there are not many differentiating

factors in terms of pricing and service quality, similarly once few big players get

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established in retail market, each one would carve a separate niche of their own

with their own sets of customers and markets.

3.10 PRESENT STATUS OF THE ORGANISATION

ADITYA BIRLA RETAIL LTD is having 650 MORE store all over INDIA . Pune

was the first place where first store was opened.350 stores are in SOUTH and 300

are in REST OF INDIA. Karnataka is having 104 stores in which BANGALORE

is having 64 stores. .more. for you is committed to deliver quality & value to our

customers and have a range of private label brands as well as commercially

branded products, offering - 100% satisfaction on the quality of the products &

services offered. more. for you hosts a range of private label brands across various

categories that follow stringent quality norms, and are available in attractive prices

and packaging. Our premium products give you the opportunity to enjoy the

difference and quality that is equal to or better than the market's leading brands, but

at competitive prices.

Recently our private label brands received the coveted "The Most Admired

Private Label" Golden Spoon award at the Food Forum India.

more. for you offer a wide range of assortment of over 4000 products, ranging

from fresh food to beverages, grocery to household care products. There range

covers everything, from day-to-day essentials to traditional favorites, from

delicious treats, to healthy alternatives.

To ensure the freshest supply of fruits and vegetables for you, they have built

direct linkages with the farmers for daily supplies of farm fresh produce.

Our stores are built with a modern and comfortable ambience, air conditioned and

with speedy automated cashiering to help you shop better. They also have friendly

in-store policies on exchange and returns that help you shop with ease and comfort.

Furthermore, to make shopping experience more rewarding with them, at more.

For you they offer a membership program Clubmore. which reinforces our

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commitment to consistently add value to your shopping experience, and also to

thank you for choosing to be a part of more. for you. As a Clubmore. member,

you are entitled to special benefits, besides the regular offers and promotions at

more. for you. Clubmore. members will also have the benefit of receiving

exclusive SMS alerts for special offers on our products and services.

Currently Clubmore. has over 1 million members enrolled for its loyalty program.

3.11 FUTURE PLANS OF THE ORGANISATION

After acquiring south based Trinethra and plans to buy Pyramid Retail, the Aditya

Birla group doesnt want itself to be left behind in the race for getting their pie in

the organised retail market. Instead of tying with Tesco, Carrefour, Woolworth,

they have decided to go all alone.

They plan to open 172 hypermarkets and supermarkets starting from Pune. While

Subhiksha is mainly into neighbourhood stores, Future Group has a strategy of

having single brand outlets to multi-brand seamless malls, similarly Reliance

Retail has started with Fresh stores and Reliance Digital to be followed by opening

up of hypermarkets and specialised stores.

Birlas business style is perceived to be a little conservative, and they are investing

Rs. 9,000 crores in this venture which will enable it to establish a pan-India

footprint. The retail venture would be aided by the groups companies like Madura

Garments (a key component of retail sales), IDEA cellular (for technical and

communication requirements of stores), financial services (for providing consumer

loans on its goods). Organised retail sectors growth is expected to be rapid, thus

making it a valid and natural choice for AVB group to diversify in this sector. But,

competition and late entry may somewhat derail the companys retail growth rate

to the overall industry rate. The sector may also face hurdles as owing to non-

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clarity of FDI in retail, foreign chains have postponed their plans of entry into

India.

"Our Mission is to Change the Way People Shop. We Will Give Them More."

3.12 FUNCTIONAL DEPARTMENT OF THE ORGANISATION

o HR AND TRAINING

o PROJECT AND BUSINESS DEVELOPMENT

o COMMERCIAL AND ACCOUNTS

o ADMINISTRATION

o IT

o LEGAL

o LOSS PREVENTION AND RISK MANAGEMENT

o MARKETING

o SUPPLY CHAIN

3.13 ORGANIZATIONAL STRUCTURE :-

CHAIRMAN

CEO

SUPERMARKET

HYPERMARKET

4 REGIONAL HEADS

2 ZONAL HEADS

2 TERRITORY MANAGERS

10 CLUSTOR MANAGERS

STORE MANAGERS

SUPERVISOR

ASSISTANT SUPERVISOR

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C S A

R

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ORGANIZATIONAL CHART

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SUPERMARKET

Bakery *

Beauty Concepts *

Beverages

Basic Apparels

Cutlery & Cookware

Fruits & Vegetables

Frozen & Dairy Products

FMCG Products

Grocery

General Merchandise

Home Care Products

Home Needs & Home UpkeepHome Decor Products

Mobile Store *

Personal Care & Cosmetics

Processed Food

Pharmacy *

Ready to Cook/Prepared Food

Small White Appliances *

Staples

Stationery

Women's Accessories

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HYPERMARKET

Apparels - Men/ Women

Audio & Video (A & V)

Bakery

Beverages

Books and Audio & Video

Computer & Accessories

Do it yourself

Auto Accessories

Electronics

FMCG Products

Footwear

Frozen & Dairy ProductsFruits & Vegetables

Furniture

General Merchandise

Home Care Products

Home Decor Products

Home Needs & Home Upkeep

Infant & Children's Apparels

Information Technology Products

Large White Appliances

Luggage

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Mobile Phone & Accessories

Personal Care & Cosmetics

Processed Food

Ready to Cook/Prepared Food

Small White Appliances

Sporting Goods

Staples

Stationery

Sun Glasses & Fine Jewellery

Two Wheelers

Toys

Services

For your additional benefit, Consumer Finance on electronics products such as:

Audio & Video and Large White Appliance are available at more.MEGASTORE

3.15 Friendly Return & Exchange Policy.

Hassle free Return & Exchange policy at more MEGASTORE.

In case you change your mind, we at more. MEGASTORE would be pleased to

exchange the same for you - no questions asked, as long as it is in its original

packaging and accompanied by its invoice.

In case, an exchange is not required, you will be issued a gift card equal to the

billed value, which can be utilized within the store as per your convenience.

Pick the perfect gift with - more. MEGASTORE Gift Card smart, practical, and

truly appreciated. Our gift cards are always the perfect gift which can be used at

the more MEGASTORE by the recipient to purchase any gift of his/her choice

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any time. Our Gift Cards easily available at the Customer Support Help Desk

located at more. MEGASTORE

3.16 Market Profile of the organization.

Birla group instead of setting up its own retail outlets apart from their own

Madhura garment outlets, are trying to enter into the retail business by acquiring

already established retail chains. The company is mainly concentrating to establish

its foot in Southern India than competing with others in most affluent metro and

northern regions. To start with Birla group acquired Trinethra Super Retail chain

that mainly operated in Andhra Pradesh with some presence in Kerala and

Karnataka. Trinethra started retail business much before anyone could imagine the

growth of the sector as it is today. Trinethra started in way back 1986 in the twin

cities of Hyderabad-Secunderabad had revenues of Rs 250 crores from its 172

stores which are mostly the size of Reliance Fresh groceries stores [2,500 sft -

3,000 sft]. Apart from its grocery retail chain, Trinethra has also brought online

shopping portal Fabmall to the fold of AV Birla group. Birlas acquiring march

does not stop here. The company is planning to acquire Piramid Retail and

Niligiris. The latter will give Birla Retail, pan south-India presence. They are also

planning to open 172 hypermarkets and supermarkets starting from Pune.

Apart from operating two hypermarket stores under the umbrella brand name of

More.. for you at Mysore and Vadodara, the retail arm of the group operates

around 670 supermaket format, neighbourhood food, grocery, and general

merchandise, stores across the country. These stores include the erstwhile stores of

Trinethra retail chain, which after the acquisition were also rechristened as More

stores.

More, under the stewardship of its new CEO Thomas Varghese, an old Birla hand,

who was roped in after the Sumant Sinha, has taken several initiatives to revamp

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the operations of the loss making chain. Some of the initiatives include: Close

some of the non performing stores. Take a re-look at the design, positioning and

merchandise offered by the retail chain. Focus more on large sized stores. The

retailer will set up hypermarts of 30,000 to 40,000 sq. ft. spce each. Aggressively

expanding the retail network; add 200 Supermarket stores and 12 Hypermart stores

in 2009- 10.Renegotiation of property rentals for almost all leased properties with

their landlords. The rents in some cases have come down by 30 to 40 percent.

Introduction of private labels, mostly in fast moving consumer products category,

to increase share of private labels to 40 per cent in the next 4 to 5 years.

Look for earning rent from shop-in-shop opportunities. Recently, Dial for

Health wellness retail chain owned by Zydus group has inked an agreement to set

up such outlets in Gujarat and Maharashtra.

Look for a financial partner. We are not looking at a strategic partner. We will be

happy to have a financial partner. We have received lots of preliminary interest

from investors. We would be open to this idea, said Kumar Mangalam Birla.

Some private equity firms like Warburg Pincus are believed to have shown interest

equity stake in the company.

Aditya Birla group, incidentally, also operates 340 apparel stores across the

country of brands like Louis Phillippe, Van Heusen, Allen Solly and Esprit in the

lifestyle and value fashion segments. These stores are operated by Madura

Garments Lifestyle & Retail and Peter England Fashions & Retail, which are part

the groups flagship company Aditya Birla Nuvo. The garments business, which

clocked Q4 turnover of 273.3 crore (2008-09) and a nett loss of Rs. 82.2 crore

during the quarter, has also embarked on several measures to stem the rot,

including closure of 30 stores that will save around Rs 100 crore a year.

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4. OBJECTIVES

The use of research is reasonably widespread. The implications may be listed

as follows:

To ascertain the position of a store in the region.

To provides a birds eye-view of the retail industry as a whole.

Comparison of shrinkage reports of more stores

A statement of research objective should describe what would be achieved by

carrying out the research. These objectives should meet the business requirements

covered in the analysis stage.

It is important to distinguish between the information needed to meet the objective

and the objective itself. The objective is a statement of an intention to provide data

relevant to a marketing problem, but in itself it does not indicate what the research

must find out. The research project is constrained by time, and it is but natural that

some compromises will have to be made in the depth and breadth of the

information we propose to cover.

THE MAIN OBJECTIVES OF THE STUDY ARE:

To study the retail industry in detail.

To apply concepts of marketing in practical scenario.

To study the consumer buying behavior.

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To study the pricing strategies of the company in order to survive the

competition.

To understand the working conditions of more supermarkets.

To understand the concepts of super market, hyper market, retail outlets

adapted by various retailers.

5. RESEARCH DESIGN AND METHODOLOGY

Research And Decision Making :

Research is the process of collection, analysis and interpretation of information.Decision-making is an important aspect of retail management. While some of the

decisions have short-term consequences, others affect the long-term prospects of

the business. Whatever the nature of decisions taken, a common thread is the need

for information. In carrying out analysis, planning, implementation, and control.

STORE MANAGERS need information at almost every time. They need

information about customers, competitors, dealers, there own performance ,the

prons and cons of there stores ,the opportunities and other forces in the market

place. This is where research has a great role to play.

Research specifies the information needed to address various issues, designs the

method for collecting information, manages and implements the data-collection

process, analyzes the results, and communicates the findings and their

implications. Some common decision areas where research can help are as follows:

Description of Research Design: Fundamental to the success of any formal

marketing research project is sound research design. A good research design has

the following characteristic viz., problem definition, specific methods of data

collection and analysis of , time required for research project and the estimate of

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expenses to be incurred. A research design is purely and simply the frame work or

plan for a study that guides the collection and analysis of data. It is a blue print that

is followed in completing a study.

The study must be relevant to the problem.

The study must employ economical procedures.

Three important points about research design are:

The design of investigation should stem from the problem.

Whether the designs are productive in a given problem setting depends on how

imaginatively they are applied. An understanding of the basic design is needed so

that

they can be modified to suit specific purpose.

5.1 A RESEARCH PLAN

The another step of the marketing research process calls for determining the

information needed, and developing a plan for gathering it efficiently. The

elements of a research plan are as follows:

5.2 Analysis of the requirement for research:

Give some context - the business's involvement in the subject of the research.

Briefly describe any past events that led unto the present situation.

State what the present situation is and how this fits in with wider business

goals.

Outline business options that are available.

5.3 Stating the research objective

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A statement of research objective should describe what would be achieved by

carrying out the research. These objectives should meet the business requirements

covered in the analysis stage.

Our research objective is to study the comparison between the private labeled

products and other branded products at the more retail outlets.

5.4 Information Needed To Meet The Objective

It is important to distinguish between the information needed to meet the objective

and the objective itself. The objective is a statement of an intention to provide data

relevant to a marketing problem, but in itself it does not indicate what the research

must find out. The research project is constrained by both time and costs, and it is

but natural that some compromises will have to be made in the depth and breadth

of the information we propose to cover.

5.5 Research Methods

This element of the plan describes how the work will be carried out. The sources of

research information are conveniently classified as either primary or secondary. An

understanding of what can be obtained through desk research, how to plan

fieldwork, the role of questionnaires and how to use them in interviewing is all

needed in before research methods of a plan can be written.

5.6 Face-to-face interviews

Considerable time is spent on traveling. If the respondents are scattered it may

prove too costly. If the respondents are geographically concentrated and easily

accessible, then this type of interviewing is beneficial.

In this study the interviewing was face to face at the more outlet.

5.7 Selection of Appropriate Fieldwork Method:

We now consider when and why to use one fieldwork method rather than another.

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A number of factors are relevant and in a study it may be necessary to make a

compromise to resolve conflicting requirements.

1. Information:

Nature of information to be sought is the most important factor to be considered.

Quantitative data usually requires the collection of standardized data from a

reliable and representative sample. Either face to face or telephonic interviews can

be considered. Attitude measurement using scales is a type of quantitative data,

often based on a large number of interviews.

For collecting qualitative data, in-depth interviews or group discussions are

advisable. However it is worth considering other methods of data.

Collection, especially when both qualitative and quantitative data are to be

collected from the same respondent. For qualitative data, open-ended questions are

a comfortable alternative.

2. Respondents:

The nature and location of respondents may affect selection of the fieldwork

method.

For respondent group with low level of literacy, postal surveys cannot be used.

Street interviewing is not advisable for elderly or working class people.

3. Interviewing Requirements:

Special requirements may favor or rule out a particular field work approach.

Likewise when a product has to be shown or tested, then a hall is required unless a

home placement is more appropriate.4. Resources:

This is concerned with practical constraints and they may result in compromises on

either method or fieldwork used or on sampling procedure. The ideal research

method may not be feasible owing to the affordability criterion.

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5.8 CHOOSING THE RESPONDENT

In case of business research, who should be interviewed has to be given much

thought. The respondents must be in a position to give factual data to arrive at the

prevailing market situations. The respondents must have first hand knowledge of

the sanitary ware markets and the present scenario.

5.9 QUESTIONNAIRE DESIGN

Preparing questionnaires or observational forms is one significant step in research

that may be done properly by watching for the many pitfalls and following an

orderly procedure. The neophyte in this work should be warned, though, that no

questionnaire has been perfect and that an adequate one requires painstaking effort.

5.10 Types of Questions

A. CLOSED-END QUESTIONS

Name Description

A question offering two answer choices

Multiple choice:- A question offering three or more answer choices.

B. OPEN- END QUESTIONS

Name Description

Completely Unstructured A question that a respondent can answer in an

almost unlimited number of ways.

Sentence completion Incomplete sentences are presented and the Respondents are

asked to complete it.

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5.11 GENERAL PRINCIPLES OF QUESTIONNAIRE DESIGN:

1. Keeping the objectives in mind

Every survey has a purpose, which is defined on paper, and the objectives spelt

out. The first step in questionnaire design is, therefore, to write down the

objectives of the survey and then list the key subject areas where information is

required. Then assign an order of priority to each subject.

2. Drafting the Questions

Ask the following questions

Will the question be understood in the way that I intended?

How many different ways could this question be interpreted?

Is this question likely to annoy or offend?

Is there a better way of asking the questions?

3. Pitfalls to avoid in the designing of Questionnaire

Avoid lengthy questionnaires.

Make it short and sweet. Nobody likes a time consuming endeavor and the

responses may suffer.

Avoid long or complicated questions.

Make the language simple and easy to

understand. Incorporate only one idea or instruction per questionnaire.

Avoid unreasonable questions.

The respondent should not be forced into guesswork.

Avoid 'loaded' questions.

Loaded questions are biased and may elicit inaccurate responses.

4. Fine tuning the questionnaire

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Once the draft copy is prepared, revise it for corrections keeping in mind the

features of a good questionnaire and by steering clear of the pitfalls in

questionnaire design. The order of questions is adjusted to enhance the flow and

ambiguous questions are removed. A test or dummy run of the questionnaire is

advisable and it can be timed to arrive at the average time required to finish the

questionnaire. Fine-tuning of the questionnaire will flush out the weaknesses in the

questionnaire in terms of the meaning of questions or length of questionnaire or its

flow.

5.12 DESCRIPTION OF RESEARCH DESIGN OF THIS STUDY

The research design is the major blue print according to which the result is to be

conducted. The research design specifies the methods of data collection and data

analysis. In the preliminary phase exploratory research was conducted to obtain a

proper definition of the problem at hand. It helped in formulating the hypothesis

for further research. The study also makes use of descriptive research in order to

analyze the problem and come up with solutions.

Sources of data included both internal as well as external. Primary data was

collected using questionnaires and by fixing interview schedules at the

respondent's work place. Secondary data was collected from magazines, journals,

textbooks, newspapers, Internet web sites etc.

5.13 METHODOLOGICAL ASSUMPTIONS AND LIMITATIONS

ASSUMPTIONS

Data was collected from the customers by using both the questionnaire method and

the observation method

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LIMITATIONS

Due to time and constraints the sample size is limited and probably not enough.

Due to the large market and dispersed market players, the attention devoted to each

player may not be sufficient.

The data gathered may be biased in favor of the respondents.

The data is mainly collected from dealers . dealers are dealing in some particular

brand. So their responses may be biased.

It is hoped that the sample size portrays the true picture.

Selecting a survey technique

The major factors involved in selecting a survey technique are

Cost of collecting the data

Speed of getting desired response

Accuracy of the data

5.14 ANALYSIS OF DATA

TYPES OF DATA

PRIMARY DATA :- It refer to that data which is used in its raw form.

For example in our case the COMPARATIVE reports collected from MORE store

is the primary data.

SECONDARY DATA :- It refers to the information which is collected from the

other sources.it can also be defined as the filtered primary data.

For example in our case the information obtained from the store managers of the

more store is the secondary data.

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Classification of Data

Classification is arranging the data according to points of similarities and

dissimilarities.

The common types of classification are quantitative, geographical and

chronological.

The objectives are:

1. To prepare data in to homogeneous groups.

2. To prepare data to be presented in tabular form

3. To condense the mass of data in such a way that its salient features are

highlighted.

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6. DETAILS OF THE RESEARCH CONDUCTED

COMPARATIVE ANALYSIS

The comparative analysis between the mores private labeled products and other branded

products is done based on the five home brands of more. Feasters, jon, 110%, prarthana, AU 79.

The main objective has been taken into consideration before doing this study.

6.1 BRAND COMPARISON

Home label products Other labeled products

Feasters cashew biscuits Britannia good day cashew

Feasters fruit jam Kissan fruit jam

Feasters noodles Maggie noodles

Jon tea Brooke bond red label tea

110% dish wash bar Vim dish wash bar

110% washing powder Tide washing powder

Prarthana agarbatti Cycle brand agarbatti

AU 79 shaving foam Gillette shaving foam

Enriche soaps Park avenue mens soap

AU 79 after shave lotion Old spice after shave lotion

AU 79 body spray(choco) Axe body spray(choco)

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6.2 Price

private labelled products at more outlet

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