Chapter-I: Retail Management System at

Retail Management System at
CHAPTER-I
INTRODUCTION
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Loyola Business School, Bangalore

1INTRODUCTION
Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, 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 are at 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.
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.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.
In contrast, players in the organized sector have big expenses to meet, and yet
have to keep prices low enough to be able to compete with the traditional sector.
High costs for the organized sector arises from: higher labor costs, social security
to employees, high quality real estate, much bigger premises, comfort facilities
such as air-conditioning, back-up power supply, taxes etc. Organized retailing also
has to cope with the middle class psychology that the bigger and brighter sales
outlet is, the more expensive it will be.
The above should not be seen as a gloomy foreboding from global retail
operators. International retail majors such as Benetton, Dairy Farm and Levis
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have already entered the market. Lifestyles in India are changing and the concept
of "value for money" is picking up.
India's first true shopping mall complete with food courts, recreation facilities
and large car parking space was inaugurated as lately as in 1999 in Mumbai.
(This mall is called "Crossroads").
Local companies and local-foreign joint ventures are expected to more

advantageously position than the purely foreign ones in the fledgling organized
India's retailing industry.
These drawbacks present opportunity to international and/or professionally

managed Indian corporations to pioneer a modern retailing industry in India and
benefit from it.
The prospects are very encouraging. The first steps towards sophisticated retailing
are being taken, and "Crossroads" is the best example of this awakening. More
such malls have been planned in the other big cities of India.
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STATEMENT OF THE PROBLEM:

From the days of industrial revolution when goods & services were produced to the
present day, the emphasis has shifted from the producers to the consumer and his needs, and with
the consumer becoming more involved, in the marketing process there is greater need for
information regarding the consumer needs. Preferences and making them satisfied of the products
& services, has led to a constant but increasing need to conduct marketing research.
This research is an insight into the mind of the consumer, with the help of which the
organizations will become aware of their pitfalls and in turn can also make improvements in the
product regarding the level of satisfaction of the consumers towards their offerings in the market
place.
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RESEARCH OBJECTIVES
To study the Retail Marketing Strategies amongst the users of

Heritage products.
To study the satisfaction levels of Heritage retail customers

&Heritage Agro and Dairy customers.
To make suggestions for improvement of their products & their services

from the customers point of view based on this research to fulfill
customers needs.
To ascertain the role of media i1towards the diversified portfolio of

Heritage retail products.
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SCOPE OF THE STUDY
The scope of project work is to get the opinions from respondents on the issues
mentioned earlier.
It is limited to the twin cities of Hyderabad and is confined to the urban areas as the
respondents are the subscribers of Heritage services is one form or the other.
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RESEARCH METHODOLOGY
Research in common pursuance refers to a search for knowledge in a scientific and
systematic way for pursuant information on a specified topic.
Once the objective is identified that next step is to collect the data which is relevance to
the problem identified and analyze the collected data in order to find out the hidden reasons for
the problem. There are two types of data namely.
Primary Data
Secondary Data
1. PRIMARY DATA
Primary data is to be collected by the concerned project researcher with relevance to his
problem. So the primary data is original in nature and is collected first hand.
Collection of primary data
There are several methods of collecting primary data particularly in surveys and
descriptive researches. Important ones are as follows:
Observation Method
Interview Method
Questionnaire
Schedules and
Other methods which include
Warranty needs
Distributor audits
Pantry audits
Consumer panels
Using mechanical devices
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1)
Through projective techniques
In depth interviews and
OBSERVATION METHOD:
It is the most commonly used methods especially in studies relating to behavioral
sciences. This method implies the collection of information by way of investigators own
observation, without interviewing the respondents. The information obtained relates to what is
currently happening and is not complicated by either the past behavior or future intentions or
attitudes of respondents.
2)
INTERVIEW METHOD
The interview method of collecting data involves presentation of oral, verbal stimuli and
reply in terms of oral-verbal responses. This method can be used through personal interview and,
if possible, through telephone interview.
Personal Interview
The method of collecting information through personal interview is usually carried out in
a structured way. As such we call this interview as structured interviews. Such interviews involve
the use of a set of predetermined questions and of highly standardized techniques of recording.
Thus, the interviewer in a structured interview follows a rigid procedure laid down, asking
questions in a given format and the order prescribed. As against it, the unstructured interviews are
characterized by flexibility of approach to questioning. Unstructured interviews do not follow a
system of pre-determined questions and standardized techniques of recording information.
3)
QUESTIONNAIRE
The researcher and the respondents do come in contact with each other if this method of
survey is adopted. Questionnaires are mailed to the respondents with a request to return after
completing the same. It is the most extensively used method in various economic and business
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surveys & research. Questionnaire to be used must be prepared very carefully so that it may prove
to be effective in collecting the relevant information.
Structured questionnaire
Using structured questionnaire method, which contains close-ended questions, collected
the primary data with respect the problem chosen. The questions have some options, from which
the respondents have to choose a choice. As the answers lie within a specified range they are
called close-ended questions.
Open-ended questions are those questions where no choices are given to respondents and
respondents are free to express their choice or answer.
The following sampling method was used.
Sampling:
A non-probability conclusive sampling method was used in the study for data collection.
Sample size:
The sample was taken from the universe on random sampling basis in Hyderabad. The
sample size designed for this project is 100 keeping in mind the paucity of time and also the
customer base of the organization in the research area.
Research Methodology
A structured questionnaire was prepared and presented to the respondents and related
questions were asked. Questionnaires mainly contained close-ended questions and a few open
ended questions, to identify the reasons for Retail management & their dissatisfaction.
Secondary data
It is the data already existing, which has gone through some standard analysis. Under the
secondary data, the companys annual reports, broachers, pamphlets, newspapers, journals and
internet were taken into consideration.
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LIMITATION OF THE PROJECT STUDY
The present research is restricted to the twin cities of Hyderabad city only.
The sample size taken is only 100 and as such is very small as compared to
the universe, this is due to the constraints of time and effort, and as such may
not be enough to generalize to the entire population, however it is presumed
that the sample represents the universe.
Respondents might have responded with the actual feelings of facts while
giving responses to the questionnaire.
Time being a limiting factor was not sufficient to gather opinions from
majority of the respondents, who form part of the universal sample.
While every care as been taken to eliminate perceptual bias from the side of
the researcher and the respondents however certain element of bias might
have set in to the research inadverantly.
Since this study concentrated on Heritage no attempt was made to study

other activities of the organization. Such as finance, human resource
management etc.,
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CHAPTER-II
REVIEW LITERATURE
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REVIEW LITERATURE:
Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, 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 are at 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.
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.
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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.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.
Etymology
Retail comes from the French word retailer, which refers to "cutting off my hands, clip
and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning
of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut
off, shred, off my toes paring". Like the French, the word retail in both Dutch and
German (detail Handel and Einzelhandel respectively), also refers to the sale of small
quantities of items.
Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a
markup amount (or percentage) to the retailer's cost. Another common technique is
suggested retail pricing. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer.
In Western countries, retail prices are often called psychological prices or odd prices.
Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not
clearly displayed, there can be price discrimination, where the sale price is dependent
upon which the customer is. For example, a customer may have to pay more if the seller
determines that he or she is willing and/or able to. Another example would be the practice
of discounting for youths, students, or senior citizens.
Transfer mechanism
There are several ways in which consumers can receive goods from a retailer:
Counter service, where goods are out of reach of buyers and must be obtained
from the seller. This type of retail is common for small expensive items (e.g.
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jewelry) and controlled items like medicine and liquor. It was common before the
1900s in the United States and is more common in certain countries.
Delivery, where goods are shipped directly to consumer's homes or workplaces.

Mail order from a printed catalog was invented in 1744 and was common in the
late 19th and early 20th centuries. Ordering by telephone is now common, either
from a catalog, newspaper, television advertisement or a local restaurant menu,
for immediate service (especially for pizza delivery). Direct marketing, including
telemarketing and television shopping channels, are also used to generate
telephone orders. Online shopping started gaining significant market share in
developed countries in the 2000s.
Door-to-door sales, where the salesperson sometimes travels with the goods for
sale.
Self-service, where goods may be handled and examined prior to purchase
Second hand retail

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates
goods to the shop to be sold. In give-away shops goods can be taken for free.
Another form is the pawnshop, in which goods are sold that were used as collateral for
loans. There are also "consignment" shops, which are where a person can place an item in
a store and if it sells, the person gives the shop owner a percentage of the sale price. The
advantage of selling an item this way is that the established shop gives the item exposure
to more potential buyers.
Sales techniques
Behind the scenes at retail, there is another factor at work. Corporations and independent
store owners alike are always trying to get the edge on their competitors. One way to do
this is to hire a merchandising solutions company to design custom store displays that
will attract more customers in a certain demographic. The nation's largest retailers spend
millions every year on in-store marketing programs that correspond to seasonal and
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promotional changes. As products change, so will a retail landscape. Retailers can also
use facing techniques to create the look of a perfectly stocked store, even when it is not.
A destination store is one that customers will initiate a trip specifically to visit,
sometimes over a large area. These stores are often used to "anchor" a shopping mall or
plaza, generating foot traffic, which is capitalized upon by smaller retailers.
Customer service
According to the book Discovery, customer service is the "sum of acts and elements that
allow consumers to receive what they need or desire from your retail establishment." It is
important for a sales associate to greet the customer and make himself available to help
the customer find whatever he needs. When a customer enters the store, it is important
that the sales associate does everything in his power to make the customer feel
welcomed, important, and make sure he leave the store satisfied. Giving the customer
full, undivided attention and helping him find what he is looking for will contribute to the
customer's satisfaction.
Retail Sales
The Retail Sales report is published every month. It is a measure of consumer spending,
an important indicator of the US GDP. Retail firms provide data on the dollar value of
their retail sales and inventories. A sample of 12,000 firms is included in the final survey
and 5,000 in the advanced one. The advanced estimated data is based on a sub sample
from the US CB complete retail & food services sample.
Retailing is one of the pillars of the economy in India and accounts for 13% of GDP.
The retail industry is divided into organized and unorganized sectors. Over 12 million
outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in
size. Organized retailing refers to trading activities undertaken by licensed retailers, that
is, those who are registered for sales tax, income tax, etc. These include the corporatebacked hypermarkets and retail chains, and also the privately owned large retail
businesses. Unorganized retailing, on the other hand, refers to the traditional formats of
low-cost retailing, for example, the local kirana shops, owner manned general stores,
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paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. In India, a
shopkeeper of such kind of shops is usually known as a dukandar.
Most Indian shopping takes place in open markets and millions of independent grocery
shops called kirana. Organized retail such supermarkets accounts for just 4% of the
market as of 2008. Regulations prevent most foreign investment in retailing. Moreover,
over thirty regulations such as "signboard licenses" and "anti-hoarding measures" may
have to be complied before a store can open doors. There are taxes for moving goods to
states, from states, and even within states.
Growth
An increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture
and manufacturing sectors. The organized retail market is growing at 35 percent annually
while growth of unorganized retail sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection. Rapid change with
investments to the tune of US $ 25 billion is being planned by several Indian and
multinational companies in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at
about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the
total retail market (US $ 65-75 billion) in the next 5 years.
India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for
the third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The predictions
for 2008 are 7.9%.The enormous growth of the retail industry has created a huge demand
for real estate. Property developers are creating retail real estate at an aggressive pace and
by 2010, 300 malls are estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011,
India will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared
to today. Current projections on construction point to a supply of just 200,000,000 sq ft
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(19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be
filled, at a cost of US$1518 billion.
According to the Icrier report, the retail business in India is estimated to grow at 13%
from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is
expected to grow at about 10% per annum with sales expected to rise from $ 309 billion
in 2006-07 to $ 496 billion in 2011-12.
The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and distinct
consumer preferences varying by each region necessitating a need for localization even
within the geographic zones. India has highest number of outlets per person (7 per
thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world
Indian retail density of 6 percent is highest in the world. 1.8 million Households in India
have an annual income of over 45 lakh (US$97,650).
Delving further into consumer buying habits, purchase decisions can be separated into
two categories: status-oriented and indulgence-oriented. CTVs/LCDs, refrigerators,
washing machines, dishwashers, microwave ovens and DVD players fall in the status
category. Indulgence-oriented products include plasma TVs, state-of-the-art home theatre
systems, iPods, high-end digital cameras, camcorders, and gaming consoles. Consumers
in the status category buy because they need to maintain a position in their social group.
Indulgence-oriented buying happens with those who want to enjoy life better with
products that meet their requirements. When it comes to the festival shopping season, it is
primarily the status-oriented segment that contributes largely to the retailers cash
register.
While India presents a large market opportunity given the number and increasing
purchasing power of consumers, there are significant challenges as well given that over
90% of trade is conducted through independent local stores. Challenges include:
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Geographically dispersed population, small ticket sizes, complex distribution network,
and little use of IT systems, limitations of mass media and existence of counterfeit goods.
Major Indian Retailers

Indian apparel retailers are increasing their brand presence overseas, particularly in
developed markets. While most have identified a gap in countries in West Asia and
Africa, some majors are also looking at the US and Europe. Arvind Brands, Madura
Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign
expansion plans through the distribution route and standalone stores as well. Another
denim wear brand, Spykar, which is now moving towards becoming a casualwear
lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores
in London by 2008-end.
The low-intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. The Mahindra Group is the fourth largest Indian
business group to enter the business of retail after Reliance Industries Ltd, the Aditya
Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on
perishables and groceries, or a range of products, or both.
Next retail India Ltd (Consumer Electronics)(www.next.co.in)

Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks
Safe Deposit Lockers
PGC Retail -T-Mart India, Switcher , Respect India , Grand India Bazaar ,etc.,
REI AGRO LTD Retail-Formats:6TEN Hyper & 6TEN Super
RPG Retail-Formats: Music World, Books & Beyond, Spencers Hyper, Spencers
Super, Daily & Fresh
Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion

Station, Brand Factory, Depot, aLL, E-Zone etc.
The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark,
Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma.
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K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

Mall
Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International

Franchise brand stores.
Pyramid Retail-Formats: Pyramid Megastore, TruMart

Nilgiris-Formats: Nilgiris supermarket chain
Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom discount
chain.
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

Vishal Retail Group-Formats: Vishal Mega Mart
BPCL-Formats: In & Out
Reliance Retail-Formats: Reliance Fresh
Reliance ADAG Retail-Format: Reliance World
German Metro Cash & Carry
Shoprite Holdings-Formats: Shoprite Hyper
Paritala stores bazar: honey shine stores
Aditya Birla Group - more Outlets
Kapas- Cotton garment outlets
Entry of MNCs
The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's Bharti
Enterprises have entered into a joint venture agreement and they are planning to open 10
to 15 cash-and-carry facilities over seven years. The first of the stores, which will sell
groceries, consumer appliances and fruits and vegetables to retailers and small
businesses, is slated to open in north India by the end of 2008.
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Carrefour, the worlds second largest retailer by sales, is planning to setup two business
entities in the country one for its cash-and-carry business and the other a master
franchisee which will lend its banner, technical services and know how to an Indian
company for direct-to-consumer retail.
The worlds fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its
warehouse club model is also interested in coming to India and waiting for the right
opportunity.
Opposition to the retailers' plans have argued that livelihoods of small scale and rural
vendors would be threatened. However, studies have found that only a limited number of
small vendors will be affected and that the benefits of market expansion far outweigh the
impact of the new stores.
Tesco Plc. plans to set up shop in India with a wholesale cash-and-carry business and will
help Indian conglomerate Tata group to grow its hypermarket business. (19)
Challenges
To become a truly flourishing industry, retailing needs to cross the following hurdles:
Automatic approval is not allowed for foreign investment in retail.

Regulations restricting real estate purchases, and cumbersome local laws.
Taxation, which favors small retail businesses.
Absence of developed supply chain and integrated IT management.
Lack of trained work force.
Low skill level for retailing management.
Lack of Retailing Courses and study options
Intrinsic complexity of retailing rapid price changes, constant threat of product
obsolescence and low margins.
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To overcome some of the challenges faced by modern retail, the country is developing a
support infrastructure in form of specialized retail schools. One such skill development
initiative has been taken by TKWs Group. Its TKWs Retail School has already training
over a thousand students and retail professionals for different retail skills. TKWs Retail
School is also associated with government projects like enhancing retail experience of
foreign tourists, improving retail of handicraft and local produce, skill development of
village youth.
A supermarket, a form of grocery store, is a self-service store offering a wide variety of
food and household merchandise, organized into departments. It is larger in size and has a
wider selection than a traditional grocery store, also selling items typically found in a
convenience store, but is smaller and more limited in the range of merchandise than a
hypermarket or big-box store.
The supermarket typically comprises meat, fresh produce, dairy, and baked goods
departments, along with shelf space reserved for canned and packaged goods as well as
for various non-food items such as household cleaners, pharmacy products and pet
supplies. Most supermarkets also sell a variety of other household products that are
consumed regularly, such as alcohol (where permitted), medicine, and clothes, and some
stores sell a much wider range of non-food products.
The traditional suburban supermarket occupies a large amount of floor space, usually on
a single level. It is usually situated near a residential area in order to be convenient to
consumers. Its basic appeal is the availability of a broad selection of goods under a single
roof, at relatively low prices. Other advantages include ease of parking and frequently the
convenience of shopping hours that extend far into the evening or even 24 hours a day.
Supermarkets usually allocate large budgets to advertising, typically through newspapers.
They also present elaborate in-store displays of products. The stores are usually part of
corporate chains that own or control (sometimes by franchise) other supermarkets located
nearbyeven transnationalthus increasing opportunities for economies of scale.
Supermarkets typically are supplied by the distribution centers of their parent companies,
such as Loblaw Companies in Canada, which operates thousands of supermarkets across
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the nation. Loblaw operates a distribution centre in every provinceusually in the largest
city in the province.
Supermarkets usually offer products at low prices by reducing their economic margins.
Certain products (typically staple foods such as bread, milk and sugar) are occasionally
sold as loss leaders, that is, with negative profit margins. To maintain a profit,
supermarkets attempt to make up for the lower margins by a higher overall volume of
sales, and with the sale of higher-margin items. Customers usually shop by placing their
selected merchandise into shopping carts (trolleys) or baskets (self-service) and pay for
the merchandise at the check-out. At present, many supermarket chains are attempting to
further reduce labor costs by shifting to self-service check-out machines, where a single
employee can oversee a group of four or five machines at once, assisting multiple
customers at a time.
A larger full-service supermarket combined with a department store is sometimes known
as a hypermarket. Other services offered at some supermarkets may include those of
banks, cafs, childcare centres/creches, photo processing, video rentals, pharmacies
and/or petrol stations.
Growth in developing countries

There has been a rapid transformation of the food retail sector in developing countries,
beginning in the 1990s. This applies particularly to Latin America, South-East Asia,
China and South Africa. However, growth is being witnessed in nearly all countries. With
growth, has come considerable competition and some amount of consolidation. The
growth has been driven by increasing affluence and the rise of a middle class; the entry of
women into the workforce; with a consequent incentive to seek out easy-to-prepare
foods; the growth in the use of refrigerators, making it possible to shop weekly instead of
daily; and the growth in car ownership, facilitating journeys to distant stores and
purchases of large quantities of goods. The opportunities presented by this potential have
encouraged several European companies to invest in these markets (mainly in Asia) and
American companies to invest in Latin America and China. Local companies also entered
the market. Initial development of supermarkets has now been followed by hypermarket
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growth. In addition there were investments by companies such as Makro and Metro in
large-scale Cash-and-Carry operations.
While the growth in sales of processed foods in these countries has been much more
rapid than the growth in fresh food sales, the imperative nature of supermarkets to
achieve economies of scale in purchasing means that the expansion of supermarkets in
these countries has important repercussions for small farmers, particularly those growing
perishable crops. New supply chains have developed involving cluster formation;
development of specialized wholesalers; leading farmers organizing supply; and farmer
associations or cooperatives. In some cases supermarkets have organized their own
procurement from small farmers; in others wholesale markets have adapted to meet
supermarket needs.
Typical supermarket merchandise

Larger supermarkets in North America and in Europe typically sell a great number of
items among many brands, sizes and varieties, including:
Alcoholic beverages (as state/provincial and/or local laws allow)

Baby foods and baby-care products such as disposable diapers
Breads and bakery products (many stores may have a bakery on site that offers
specialty and dessert items)
Books, newspapers, and magazines, including supermarket tabloids

Bulk dried foods such as legumes, flour, rice, etc. (typically available for selfservice)
Canned goods and dried cereals

CDs, Audio cassettes, DVDs, and videos (including video rentals)
Cigarettes and other tobacco products
Confections and candies
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Cosmetics
Dairy products and eggs
Delicatessen foods (ready-to-eat)
Diet foods
Electrical products such as light bulbs, extension cords, etc.
Feminine hygiene products
Financial services and products such as mortgages, credit cards, savings accounts,
wire transfers, etc. (typically offered in-store by a partnering bank or other
financial institution)
Flowers
Frozen foods and crushed ice
Fresh produce, fruits and vegetables
Greeting cards
House-cleaning products
Housewares, Dishware and cooking utensils, etc. (typically limited)
Laundry products such as detergents, fabric softeners, etc.
Lottery tickets (where operational and legal)
Luggage items (typically limited)
Meats, fish and seafoods (some stores may offer live fish and seafood items from
aquarium tanks)
Medicines and first aid items (primarily over-the-counter drugs, although many
supermarkets also have an on-site pharmacy)
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Nonalcoholic beverages such as soft drinks, juices, bottled water, etc. (some
stores may have a juice bar that prepares ready-to-drink freshly squeezed juices,
smoothies, etc.)
Personal hygiene and grooming products

Pet foods and products
Seasonal items and decorations
Snack foods
Tea and Coffee (some stores may have a commercial-style grinder, typically
available for self-service, and/or a staffed coffee bar that prepares ready-to-drink
coffee and tea beverages)
Toys and novelties

In some countries, the range of supermarket merchandise is more strictly focused on food
products, although the range of goods for sale is expanding in many locations as typical
store sizes continue to increase globally.
Typical store architecture

Most supermarkets are similar in design and layout due to trends in marketing. Fresh
produce tends to be located near the entrance of the store. Perishable staple items such as
meat and dairy products are usually situated toward the rear of the store, adjacent to the
loading docks, in refrigerated cases that can be stocked from the back without
interrupting customers' shopping.
The front of the store, or "front end'" is the area where point of sale machines or cash
registers are usually located. Many retailers also have implemented self-checkout devices
in an attempt to reduce labor costs.
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Criticisms
Supermarket, in general, tend to narrow the choices of fruits and vegetables by
stocking only varieties with long storage lives.
In the United States, major-brand supermarkets often demand slotting fees from
suppliers in exchange for premium shelf space and/or better positioning (such as
at eye-level, on the checkout aisle or at a shelf's "end cap"). This extra supplier
cost (up to $30,000 per brand for a chain for each individual SKU) may be
reflected in the cost of the products offered. Some critics have questioned the
ethical and legal propriety of slotting fee payments and their effect on smaller
suppliers.
In Britain supermarkets have been accused of squeezing prices to farmers, forcing

small shops out of business, and often favoring imports over British produce.
Supermarkets can generally retail at lower prices than traditional corner shops and
markets due to higher volume throughput. This has led to small businesses losing
customers and closing in many areas, which can be seen as an adverse effect on
the local infrastructure. (Others view supermarkets as having better economies of
scale.) In 2000, the Finnish government drafted the new shopping hours law in
such a way, that shops with a sub-supermarket floor area (<400m 2) have yeararound Sunday opening rights, while supermarkets are permitted to stay open on
Sundays only during the summer and mid-winter months.
In New Zealand, supermarkets have been accused of buying fresh produce from
growers at low prices and selling with ridiculously high mark-ups, sometimes as
high as 500%
Retail concentration refers to the market-share generally belonging to the top 4 or 5
mass distribution firms present in a regional market, as a percentage on the total.
Retail concentration is not simply a concentration ratio as is emerging in the food sector.
This is due to two factors: the particular relevance retail is gaining on a global scale, and
the particular shape of the food chain.
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In recent years, Retail Concentration moved ahead with fusions and acquisitions along
the entire food chain. We can assume with Grievink (2003) that in a few years there will
be only 5 dominant actors in the globalize food chain. The same researcher states that in
the 90's the top-5 food manufacturers could count on twice the cash flow of the top-5
retailers. Nowadays the relation is inverted: the top 5 retailers can count on twice that of
the top-5 manufacturers. Thus, the food chain has become increasingly vertically
integrated, with global corporations able to coordinate inputs from the seed to the field,
from the stable to the table. Retail concentration by one hand is the answer that retail is
giving to compete with the giants of agro food industry. By the other hand, is the agro
food industry in itself searching to arrive directly to the consumers, through a refined
relations system. In this process, private labels are increasingly attracting consumers, and
are expected to grow more and more on their fidelisation strategy, beating on quality,
safety and also ethical values .
Recently the European Commission proposed solutions to face with overall price increase
about foodstuff. Among the measures proposed, several relate to the retail power recently
acquired.
In particular, the payments delay to the producers; the additional fees asked to the
producers to place on the shelves branded products; price transparency; better regulation
on promotional activities and openings/closing time are all issues on the agenda.
For supporters, retail concentration means more chances for consumers, lower prices, and
better quality. For opponents, by the contrary, the disappearing of traditional shops, of
food culture, of neighborhood life in general. Furthermore, too much concentration
means squeezing the price of industry and of agriculture, which can lead to outsourcing
food from anywhere it can cost less, without a truly long term impact assessment.
Retail design is a creative and commercial discipline that combines several different
areas of expertise together in the design and construction of retail space. Retail design is
primarily a specialized practice of architecture and interior design, however it also
incorporates elements of interior decoration, industrial design, graphic design,
ergonomics, and advertising.
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Retail design is a very specialized discipline due to the heavy demands placed on retail
space. Because the primary purpose of retail space is to stock and sell product to
consumers, the spaces must be designed in a way that promotes an enjoyable and hasslefree shopping experience for the consumer. The space must be specially-tailored to the
kind of product being sold in that space; for example, a bookstore requires many large
shelving units to accommodate small products that can be arranged categorically while a
clothing store requires more open space to fully display product.
Retail spaces, especially when they form part of a retail chain, must also be designed to
draw people into the space to shop. The storefront must act as a billboard for the store,
often employing large display windows that allow shoppers to see into the space and the
product inside. In the case of a retail chain, the individual spaces must be unified in their
design.
Regional differences
In most of the world the term shopping centre is used, especially in Europe, Australasia
and South America; however shopping mall is also used, predominantly in North
America[2] and the Philippines. Outside of North America, shopping precinct and
shopping arcade are also used. In North America, the term shopping mall is usually
applied to enclosed retail structures (and is generally abbreviated to simply mall), while
shopping center usually refers to open-air retail complexes; both types of facilities
usually have large parking lots, face major traffic arterials and have few pedestrian
connections to surrounding neighborhoods.
Shopping centers in the United Kingdom can be referred to as "shopping centers",
"shopping precincts", or "town centers". The standard British pronunciation of the word
"mall" is as in "The Mall, London" the tree-lined avenue leading to Buckingham Palace,
London and also like "pal" (friend). Mall can refer to either a shopping mall a place
where a collection of shops all adjoin a pedestrian area or an exclusively pedestrianised
street that allows shoppers to walk without interference from vehicle traffic. Mall is
generally used in North America to refer to a large shopping area usually composed of a
single building which contains multiple shops, usually "anchored" by one or more
department stores surrounded by a parking lot, while the term arcade is more often used,
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especially in Britain, to refer to a narrow pedestrian-only street, often covered or between
closely spaced buildings (see town centre). A larger, often partly covered and exclusively
pedestrian shopping area is in Britain also termed a shopping centre, shopping precinct,
or pedestrian precinct.
The majority of British shopping centers are in town centers, usually inserted into old
shopping districts and surrounded by subsidiary open air shopping streets. A number of
large out-of-town "regional malls" such as Meadowhall, Sheffield and the Trafford
Centre, Manchester were built in the 1980s and 1990s, but planning regulations prohibit
the construction of any more. Out-of-town shopping developments in the UK are now
focused on retail parks, which consist of groups of warehouse style shops with individual
entrances from outdoors. Planning policy prioritizes the development of existing town
centres, although with patchy success. The MetroCentre, in Gateshead (near Newcastle
upon Tyne), is the largest shopping centre in Europe with over 330 shops, 50 restaurants
and an 11 screen cinema and Westfield London is the largest inner-city shopping centre in
Europe. Bullring, Birmingham is the busiest shopping centre in the UK welcoming over
36.5 million shoppers in its opening year.
The first structure resembling what is considered to be a "shopping mall" in the presentday is located in The City of Damascus, the capital city of Syria. It is called AlHamidiyah Souq in old Damascus and dates back to the seventh century. Isfahan's Grand
Bazaar, which is largely covered, dates from the 10th century. The 10 kilometer long
covered Tehran's Grand Bazaar also has a long history. The Grand Bazaar of Istanbul was
built in the 15th century and is still one of the largest covered markets in the world, with
more than 58 streets and 4,000 shops.
Gostiny Dvor in St. Petersburg, which opened in 1785, may be regarded as one of the
first purposely-built mall-type shopping complexes, as it consisted of more than 100
shops covering an area of over 53,000 m2 (570,000 sq ft).
The Oxford Covered Market in Oxford, England opened in 1774 and still runs today.
The Burlington Arcade in London was opened in 1819. The Arcade in Providence, Rhode
Island introduced the retail arcade concept to the United States in 1828. This was a
forerunner of today's shopping mall The Galleria Vittorio Emanuele II in Milan, Italy
34

followed in the 1870s and is closer to large modern malls in spaciousness. Other large
cities created arcades and shopping centres in the late 19th century and early 20th
century, including the Cleveland Arcade, Dayton (Ohio) Arcade and Moscow's GUM,
which opened in 1890. Early shopping centers designed for the automobile include
Market Square, Lake Forest, Illinois (1916) and Country Club Plaza, Kansas City,
Missouri (1924).
An early indoor mall prototype in the United States was the Lake View Store at Morgan
Park, Duluth, Minnesota, which was built in 1915 and held its grand opening on July 20,
1916. The architect was Dean and Dean from Chicago and the building contractor was
George H. Lounsberry from Duluth. The building is two stories with a full basement, and
shops were originally located on all three levels. All of the stores were located within the
interior of the mall; some shops were accessible from inside and out.
In the mid-20th century, with the rise of the suburb and automobile culture in the United
States, a new style of shopping centre was created away from downtown.
Components
Food court
A common feature of shopping malls is a food court: this typically consists of a number
of fast food vendors of various types, surrounding a shared seating area.
Department stores
When the shopping mall format was developed by Victor Gruen in the mid-1950s,
signing larger department stores was necessary for the financial stability of the projects,
and to draw retail traffic that would result in visits to the smaller stores in the mall as
well. These larger stores are termed anchor store or draw tenant. Anchors generally have
their rents heavily discounted, and may even receive cash inducements from the mall to
remain open. In physical configuration, anchor stores are normally located as far from
each other as possible to maximize the amount of traffic from one anchor to another.
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Stand-alone stores
Frequently, a shopping mall or shopping center will have satellite buildings located either
on the same tract of land or on one abutting it, on which will be located stand-alone
stores, which may or may not be legally connected to the central facility through contract
or ownership. These stores may have their own parking lots, or their lots may
interconnect with those of the mall or center. The existence of the stand-alone store may
have been planned by the mall's developer, or may have come about through
opportunistic actions by others, but visually the central facility the mall or shopping
center and the satellite buildings will often be perceived as being a single "unit", even
in circumstances where the outlying buildings are not officially or legally connected to
the mall in any way.
Dead malls
In the U.S, as more modern facilities are built, many early malls have become abandoned,
due to decreased traffic and tenancy. These "dead malls" have failed to attract new
business and often sit unused for many years until restored or demolished. Interesting
examples of architecture and urban design, these structures often attract people who
explore and photograph them. This phenomenon of dead and dying malls is examined in
detail by the website Deadmalls.com, which hosts many such photographs, as well as
historical accounts. Until the mid-1990s, the trend was to build enclosed malls and to
renovate older outdoor malls into enclosed ones. Such malls had advantages such as
temperature control. Since then, the trend has turned and it is once again fashionable to
build open-air malls. According to the International Council of Shopping Centers, only
one new enclosed mall has been built in the United States since 2006.
Some enclosed malls have been opened up, such as the Sherman Oaks Galleria. In
addition, some malls, when replacing an empty anchor location, have replaced the former
anchor store building with the more modern outdoor design, leaving the remainder of the
indoor mall intact, such as the Del Amo Fashion Center in Torrance, California.
36
New trends
In parts of Canada, it is now rare for new shopping malls to be built. The Vaughan Mills
Shopping Centre, opened in 2004, and Crossiron Mills, opened in 2009, are the only
malls built in Canada since 1992. Outdoor outlet malls or big box shopping areas known
as power centres are now favored, although the traditional enclosed shopping mall is still
in demand by those seeking weather-protected, all-under-one-roof shopping. In addition
the enclosed interconnections between downtown multi story shopping malls continue to
grow in the Underground city of Montreal (32 kilometers of passageway), the PATH
system of Toronto (27 km (17 mi) of passageway) and the Plus15 system of Calgary
(16 km (9.9 mi) of overhead passageway).
Vertical malls
High land prices in populous cities have led to the concept of the "vertical mall," in which
space allocated to retail is configured over a number of stories accessible by elevators
and/or escalators linking the different levels of the mall. The challenge of this type of
mall is to overcome the natural tendency of shoppers to move horizontally and encourage
shoppers to move upwards and downwards. The concept of a vertical mall was originally
conceived in the late 1960s by the Mafco Company, former shopping center development
division of Marshall Field & Co. The Water Tower Place skyscraper, Chicago, Illinois,
was built in 1975 by Urban Retail Properties. It contains a hotel, luxury condominiums,
and office space and sits atop a block-long base containing an eight-level atrium-style
retail mall that fronts on the Magnificent Mile.
Vertical malls are common in densely populated conurbations such as Hong Kong and
Bangkok. Times Square in Hong Kong is a principal example.
A vertical mall may also be built where the geography prevents building outward or there
are other restrictions on construction, such as historical buildings or significant
archeology. The Darwin Shopping Centre and associated malls in Shrewsbury, UK, are
built on the side of a steep hill, around the former outer walls of the nearby medieval
castle; consequently the shopping centre is split over seven floors vertically two
locations horizontally connected by elevators, escalators and bridge walkways. Some
establishments incorporate such design into their layout, such as Shrewsbury's
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McDonalds restaurant, split into four stories with multiple mezzanines which feature
medieval castle vaults complete with arrowslits in the basement dining rooms.
38
CHAPTER-III
COMPANY & INDUSTRY
PROFILE
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.Growth of Indian RetailAccording 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 also
expected to reach 22% by 2010.According to a report by Northbride Capita, the India
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retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the
organized sector will be 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.Major Retailers in
India Pantaloon:Pantaloon is one of the biggest retailers in India with more than 450
stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft
retail space located across the country. It's growing at an enviable pace and is expected to
reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first
hypermarket Big Bazaar. It has the following retail segments:
Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar, Collection Consumer Electronics: e-zone
Shoes: Shoe Factory
Books, Music & Gifts: Depot
Health & Beauty Care: Star, Sitara
E-tailing: Futurebazaar.com
Entertainment: Bowling Co.
Tata GroupTata group is another major player in Indian retail industry with its subsidiary
Trent, which operates Westside and Star India Bazaar. Established in 1998, it also
acquired the largest book and music retailer in India Landmark in 2005. Trent owns
over
lakh
sq.
ft
retail
space
across
the
country.RPG
Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into
food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the
pharmacy and beauty care outlets Health & Glow. Reliance is one of the biggest players
in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite
popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by
2010.
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AV Birla GroupAV Birla Group has a strong presence in Indian apparel retailing. The
brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's
also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.
Retail formats in IndiaHypermarts/supermarkets: large self-servicing outlets offering

products from a variety of categories.
Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.
Departmental stores: are general retail merchandisers offering quality products

and services.
Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.
Shopping malls: the biggest form of retail in India, malls offers customers a mix
of all types of products and services including entertainment and food under a
single roof.
E-trailers: are retailers providing online buying and selling of products and
services.
Discount stores: these are factory outlets that give discount on the MRP.
Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks
and other small items can be bought via vending machine.
Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics
and sporting goods. This is also known as Multi Brand Outlets or MBO's.
41
Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a
couple of examples.
Challenges facing Indian retail industry
The tax structure in India favors small retail business

Lack of adequate infrastructure facilities
High cost of real estate
Dissimilarity in consumer groups
Restrictions in Foreign Direct Investment
Shortage of retail study options
Shortage of trained manpower
Low retail management skill
The Future The retail industry in India is currently growing at a great pace and is
expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$
1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth
rates, the consumer spending has also gone up and is also expected to go up further in the
future. In the last four year, the consumer spending in India climbed up to 75%. As a
result, the India retail industry is expected to grow further in the future days. By the year
2013, the organized sector is also expected to grow at a CAGR of 40%.
Etymology
Retail comes from the French word retailer, which refers to "cutting off my hands, clip
and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning
of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut
off, shred, off my toes paring". Like the French, the word retail in both Dutch and
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German (detail Handel and Einzelhandel respectively), also refers to the sale of small
quantities of items.
Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional
market square is a city square where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless such markets are still in
operation around the whole world.
In some parts of the world, the retail business is still dominated by small family-run
stores, but this market is increasingly being taken over by large retail chains.
Retail is usually classified by type of products as follows:
Food products
Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting
goods, etc.
Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:
Department stores - very large stores offering a huge assortment of "soft" and
"hard goods; often bear a resemblance to a collection of specialty stores. A retailer
of such store carries variety of categories and has broad assortment at average
price. They offer considerable customer service.
Discount stores - tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable
and cut-rate prices. Normally retailers sell less fashion-oriented brands. However
the service is inadequate.;
General merchandise store - a hybrid between a department store and discount

store;
43
Supermarkets - sell mostly food products;

Warehouse stores - warehouses that offer low-cost, often high-quantity goods
piled on pallets or steel shelves; warehouse clubs charge a membership fee;
Variety stores or "dollar stores" - these offer extremely low-cost goods, with
limited selection;
Demographic - retailers that aim at one particular segment (e.g., high-end retailers
focusing on wealthy individuals).
Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by

individuals. The range of products are very selective and few in numbers. These
stores are seen in local community often are family-run businesses. The square
feet area of the store depends on the store holder.
Specialty Stores: A typical specialty store gives attention to a particular category

and provides high level of service to the customers. A pet store that specializes in
selling dog food would be regarded as a specialty store. However, branded stores
also come under this format. For example if a customer visits a Reebok or Gap
store then they find just Reebok and Gap products in the respective stores.
Convenience Stores: is essentially found in residential areas. They provide limited

amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases.
Hypermarkets: provides variety and huge volumes of exclusive merchandise at

low margins. The operating cost is comparatively less than other retail formats. A
classic example is the Metro in Bangalore.
Supermarkets: is a self service store consisting mainly of grocery and limited

products on non food items. They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarkets can be anywhere between 20,000-40,000 square feet.
Example: SPAR supermarket.
44
Malls: has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof. Example: Sigma mall and Garuda mall in
Bangalore, Express Avenue in Chennai.
Category Killers or Category Specialist: By supplying wide assortment in a single

category for lower prices a retailer can "kill" that category for other retailers. For
few categories, such as electronics, the products are displayed at the centre of the
store and sales person will be available to address customer queries and give
suggestions when required. Other retail format stores are forced to reduce the
prices if a category specialist retail store is present in the vicinity. For example:
Pai Electronics store in Bangalore, Tata Croma.
E-tailers: The customer can shop and order through internet and the merchandise
are dropped at the customer's doorstep. Here the retailers use drop shipping
technique. They accept the payment for the product but the customer receives the
product directly from the manufacturer or a wholesaler. This format is ideal for
customers who do not want to travel to retail stores and are interested in home
shopping. However it is important for the customer to be wary about defective
products and non secure credit card transaction. Example: Amazon and Ebay.
Vending Machines: This is an automated piece of equipment wherein customers

can drop in the money in machine and acquire the products. For example: Soft
drinks vending at Bangalore Airport.
Some stores take a no frills approach, while others are "mid-range" or "high end",
depending on what income level they target.
Other types of retail store include:
Automated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores. The stores accept credit cards and are usually open 24/7.
Examples include ZoomShops and Red box.
45
Big-box stores encompass larger department, discount, general merchandise, and

warehouse stores.
Convenience store - a small store often with extended hours, stocking everyday or
roadside items;
General store - a store which sells most goods needed, typically in a rural area;
Retailers can opt for a format as each provides different retail mix to its customers based
on their customer demographics, lifestyle and purchase behavior. A good format will lend
a hand to display products well and entice the target customers to spawn sales.
COMPANY PROFILE
Heritage at a Glance:
The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the
fastest growing Private Sector Enterprises in India, with four-business divisions viz.,
Dairy, Retail, Agri, and Bakery under its flagship Company Heritage Foods (India)
Limited (HFIL). The annual turnover of Heritage Foods crossed Rs.1096 crores in 201011.
Presently Heritages milk products have market presence in Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu and Maharashtra and its retail stores across Bangalore, Chennai and
Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are
backbone to retail operations.
In the year 1994, HFIL went to Public Issue to raise resources, which was
oversubscribed 54 times and its shares are listed under B1 Category on BSE (Stock Code:
519552) and NSE (Stock Code: HERITGFOOD)
About the founder:
Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,
Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his relatives,
friends and associates promoted Heritage Foods in the year 1992 taking opportunity from
46

the Industrial Policy, 1991 of the Government of India and he has been successful in his
Endeavour.
At present, Heritage has market presence in all the states of South India.
More than three thousand villages and five lakh farmers are being benefited in these
states. On the other side, Heritage is serving more than 6 lakh customers needs,
employing more than 700 employees and generating indirectly employment opportunity
to more than 5000 people. Beginning with a humble annual turnover of just Rs.4.38
crores in 1993-94, the sales turnover has reached close to Rs.300 crores during the
financial year 2005-2006.
Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small
Industries Development Corporation, and Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time
Asia ), " Business Person of the Year " (Economic Times), and " IT Indian of the
Millennium " ( India Today).
Sri Naidu was chosen as one of 50 leaders at the forefront of change in the
year 2000 by the Business Week magazine for being an unflinching proponent of
technology and for his drive to transform the State of Andhra Pradesh .
Forward looking statements:
We have grown, and intended to grow, focusing on harnessing our
willingness to experiment and innovate our ability to transform our drive towards
excellence in quality, our people first attitude and our strategic direction.
Mission
Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food
products.
47
Vision
To be a progressive billion dollar organization with a pan India foot print by 2015.
To achieve this by delighting customers with "Fresh and Healthy" food products, those
are a benchmark for quality in the industry. We are committed to enhanced prosperity and
the empowerment of the farming community through our unique "Relationship Farming"
Model. To be a preferred employer by nurturing entrepreneurship, managing career
aspirations and providing innovative avenues for enhanced employee prosperity.
Heritage Slogan:
When you are healthy, we are healthy
When you are happy, we are happy
We live for your "HEALTH & HAPPINESS"
Quality policy of HFIL:
We are committed to achieve customer satisfaction through hygienically
processed and packed Milk and Milk Products. We strive to continually improve the
quality of our products and services through up gradation of technologies and systems.
Heritage's soul has always been imbibed with an unwritten perpetual commitment
to itself, to always produce and provide quality products with continuous efforts to
improve the process and environment.
Adhering to its moral commitment and its continuous drive to achieve
excellence in quality of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in
implementing them successfully. All activities of Processing, Quality control, Purchase,
Stores, Marketing and Training have been documented with detailed quality plans in each
of the departments.
Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
48

continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.
Commitments:
Milk Producers:
Change in life styles of rural families in terms of:
Regular high income through co-operative efforts.

Women participation in income generation .
Saved from price exploitation by un-organized sector .
Remunerative prices for milk .
Increase of milk productivity through input and extension activities
Shift from risky agriculture to dairy farming
Heritage
Financial support for purchase of cattle; insuring cattle
Establishment of Cattle Health Care Centers
Supplying high quality Cattle feed
Organizing "Rythu Sadasu" and Video programmes for educating the farmers in
dairy farming
Customers:
Timely Supply of Quality & Healthy Products

Supply high quality milk and milk products at affordable prices
Focused on Nutritional Foods
More than 4 lakh happy customers
High customer satisfaction
49
24 hours help lines ( <10 complaints a day)

Employees:
Enhancing the Technical and Managerial skills of Employees through continuous

training and development
Best appraisal systems to motivate employees

Incentive, bonus and reward systems to encourage employees
Heritage forges ahead with a motto "add value to everything you do"
Returns:
Consistent Dividend Payment since Public Issue (January 1995)
Service:
Highest impotence to investor service; no notice from any regulatory authority

since 2001 in respect of investor service
Very transparent disclosures

Suppliers:
Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit
flavoured drinks Alfa-Laval: supplier of high-end machinery and technical support
Focusing on Tetra pack association for products package.
Society:
Potential Employment Generation

More than 3500 employees are working with heritage
More than 9500 procurement agents got self employment in rural areas
More than 5000 sales agents associated with the company
Employment for the youth by providing financial and animal husbandry support
for establishing MINI DAIRIES
50
Producing highly health conscious products for the society
Qualities of management principles:
Customer focus to understand and meet the changing needs and expectations of
customers.
People involvement to promote team work and tap the potential of people.
Leadership to set constancy of purpose and promote quality culture trough out the
organization.
Process approach to assess the efficiency and effectiveness of each process.

Systems approach to understand the sequence and interaction of process.
Factual approach to decision making to ensure its accuracy.
Continual improvement processes for improved business results.
Development of suppliers to get right product and services in right time at right
place.
Product/Market wise performance:
The total turnover is Rs 341 Crores during the financial year 2006-07
against the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk
& milk products in the states of A.P, Karnataka, Kerala & Tamil nadu.
During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against
Rs.24525.23 lakhs in the previous year. The sales of milk products including bulk sales of
cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.
Milk sales:
23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07
against 1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in
2006-07 against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD
51

in 2006-07 against 5.16 LLPD. Flavoured milk sales recorded a growth rate of 77% over
2005-06. Butter milk sales have gone up by 45% over 2005-06.
Outlook:
Considering the growth potential in the liquid milk market, the company
has drawn plans to increase its market share in the existing markets and to enter into new
markets there by doubling revenues in dairy business in the next 3 years. To achieve this
object, company is undertaking major expansion in dairy business by inverting over Rs20
crores during 2006-07 and over Rs10 crores during the current year to strengthen the milk
procurement.
CODE OF CONDUCT AND ETHICS FOR DIRECTORS
& SENIOR MANAGEMENT
PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has
been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after
referred to as "the Company") , to be applicable to all Directors and all members of senior
management i.e., personnel who are a part of the core management team and including all
functional heads of the company (herein after referred to as the 'Members') with effect
from December 23, 2005 .This Code helps the Members maintain good standards of
business conduct, foster ethical and moral conduct and promote a culture of honesty and
accountability,
so
as
to
set
an
example
to
others
in
the
company.
The Code is not an all-inclusive comprehensive policy and cannot anticipate every
situation that may arise in the course of the company's business. The Members are
expected to bear in mind the essence and substance of the Code in all their dealings /
transactions with the Company.
STRICT COMPLIANCE All Members shall act within the bounds of the authority
conferred upon them and undertake the duty to make and enact informed, judicious and
52

harmonious decisions and policies in the best interests of the Company and its
shareholders / stakeholders. With a view to maintain the high standards the Company
requires, the following rules/ code of conduct to be observed in all activities. For the
purpose of the code, the Company appoints the Company Secretary as compliance
officer, who will be available to Members to answer questions and help them in
complying with the code. CONFLICT OF INTEREST The term "Conflict of interest"
pertains to situations in which financial or personal considerations may compromise, or
have the appearance of compromising judgment of professional activities. A conflict of
interests exists where the interests or benefits of one person or entity conflicts with the
interests or benefits of the other person/entity/company.All Members should not engage
in any business, relationship or activity, which may be in conflict with the interest of the
Company. Conflict may arise in many situations. It is not possible to cover every possible
conflict situation and at times, it will not be easy to distinguish between the proper and
improper activities. Set forth below, are some of the common circumstances that may
lead to conflict of interest, actual or potential.
i.
Members should not engage in any activity / employment that interfere with your performance
or responsibility to the Company or otherwise in conflict with or prejudicial to the interests of
the Company.
ii. As a general policy, Members should avoid conducting business with a relative or with a
firm / Company in which a relative / related party is associated in a significant role / position.
iii. Whenever/ wherever the related party transaction is unavoidable Members will fully disclose
their interest in the transaction to the Board or to the CEO of the Company and due records for
such transactions will be maintained as per the statutory requirements.
HONESTY AND INTEGRITY All Members shall conduct their activities, on behalf of
the Company and on their personal behalf, with honesty, integrity and fairness. They will
act in good faith, with responsibility, due care, competence and diligence, allowing
independent judgment to their subordinates. Members shall act in the best interests of the
Company
and
fulfill
their
fiduciary
obligations.
POLICY OF BUSINESS
RELATIONSHIP
The Company will conduct business legally and ethically. The quality of company's
products and the efficiency of its services at the most competitive price is the greatest tool
53

in conducting the business of the company. Profits do not justify unfair/ unethical
practices. All Members should uphold the highest standards of integrity in all the business
relationships.
INTELLECTUAL PROPERTY POLICY

All Members have utmost obligation to identify and protect the intellectual properties,
trade secrets and confidential information owned by the Company and its clients or
associates as it is critical to the success of the company. "Intellectual Property Rights"
(IPR) means generally patented or potentially patentable inventions, trademarks,
copyrightable subject matters and trade secrets.
CORPORTE OPPORTUNITIES Members owe a duty to the Company to advance its
legitimate interests when the opportunity to do so arises and are expressly prohibited
from improper use of information / property or taking improper advantage of their
position. PREVENTION OF INSIDER TRADING Insider trading is prohibited both
by the Law as well as by the company policy . Insider trading generally involves the act
of subscribing to or buying or selling of the Company's securities, when in possession of
any Unpublished Price Sensitive Information about the company. "Price sensitive
information " is such information, which relates directly or indirectly to the company and
which if published is likely to materially affect the price of securities of the Company. It
is important to note that both positive and negative information could be price sensitive.
Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the Company, which is not in public domain and thus
constituting insider information. Members shall comply with the prevention of insider
trading guidelines as issued by Securities Exchange Board of India (SEBI).
SECURITIES MARKET POLICY
54

The Company is committed to comply with securities laws in all the markets in which the
Company's securities are listed. The company prohibits fraudulent and unfair trade
practices with regard to the securities of the Company by all Members.
CONFIDENTIALITY OF INFORMATION POLICY The Company's confidential
information is a valuable asset. Members shall understand that protection of all
confidential information is essential. Members should undertake and be committed to
protecting business and personal information of confidential nature obtained from clients,
associates and employees. Any information concerning the Company's business, its
customers, suppliers etc which is not in the public domain and to which the Members
have access or possesses such information, shall be considered confidential and held in
confidence, unless authorized to disclose or such disclosure is required as a matter of law.
Members shall not provide any information either formally or informally, to the press or
any other publicity media, unless specially authorized to do so.
COMPLIANCE WITH LAWS, RULES AND REGULATIONS
Members should comply with all applicable laws, rules, and regulations, both in letter
and sprit. In order to assist the Company in promoting the lawful and ethical behavior,
Members have to report any possible violation of law, rules, regulations or the code of
conduct to the Company Secretary.
PROTECTION AND PROPER USE OF COMPANYS ASSETS
All Members have the responsibility to protect the assets of the company, ensure optimal
utilization of assets and to report and record all transactions. Members shall protect the
Company's assets from loss, damages, misuse or theft and assets may only be used for
business purposes and other purposes specifically approved by management and must
never be used for any personal or illegal purposes.
COMPETITION POLICY
The Company shall compete only in an ethical and legitimate manner. It prohibits all
actions that are anti- competitive or otherwise contrary to laws that govern competitive
practices in the market place. Members shall uphold the same.
55

SELECTING SUPPLIERS
The Company's suppliers make significant contribution to its success. The Company's
policy is to purchase / avail supplies based on need, quality, service, price and other
commercial terms and conditions. Suppliers should be selected based on merit, price,
quality and performances. The Company's policy is to select significant suppliers through
a competitive bid process wherever possible. Under no circumstance should the Company
or its employee, agent or contractor attempt to coerce suppliers in any way.
ENVIRONMENT, HEALTH AND SAFETY POLICY
Members shall take environmental consciousness a step further as a company and
contribute to preserving nature as well as safety measures in own respective work areas.
All Members are responsible for conducting safe and environmentally sound operations;
this is in the interest of our own well-being and the quality of life of others. Members
shall abide by this policy.
ELIMINATION OF CHILD LABOUR
It is the Company's policy not to support child labor. The Company is committed to
implement the provisions of the Child Labor (Prohibition and Regulation) Act, 1986. To,
promote this the Company encourages its suppliers also to work towards a no child labor
policy in their industries. Members shall strictly observe that no child labor is employed
in the company.
ABOLITION OF FORCED LABOUR
The Company strictly prohibits forced or compulsory labor. The Company is committed
to ensuring that employees enter into employment and stay on in the Company of their
own free will. Members shall uphold this policy.
GIFTS & DONATIONS
No Member shall receive or offer, directly or indirectly, any gifts, donations,
remuneration, hospitality, illegal payments and comparable benefits which are intended
or perceived to be intended to obtain business (or uncompetitive) favors or decision for
the conduct of the business. Normal gifts of commemorative nature for special events
may be accepted and reported to the Board.
56

OTHER DIRECTORSHIPS
The Company feels that serving on the Board of directors of other companies may raise
substantial concerns about potential conflict of interest. Therefore all Directors shall
report / disclose such relationships to the Board on an annual basis. It is felt that service
on the Board of a direct competitor is not in the interest of the Company. Hence all the
Directors are barred in accepting such position without the concurrence of the Board.
ACCOUNTABILITY
The Board of Directors (BOD) shall oversee the Company's adherence to ethical and
legal standards. All employees and members of the BOD shall undertake to stop or
prevent actions that could harm customers or reputation of the Company and to report
such actions as soon as they occur to take corrective steps and see that such actions are
not repeated.
COMPLIANCE WITH CODE OF CONDUCT
Each Director and senior management personnel shall adhere to this code of conduct and
affirm compliance with the code on an annual basis as per the Annexure to the Code.
Violation of this Code will lead to appropriate disciplinary action.
WAIVER OF THE CODE
Any waiver of the applicability of the Code or waiver of application of any provision of
the Code to any Member shall be approved by the Board of Directors and disclosed as
required by Law or SEBI / Stock Exchange regulations.
BRANCHES OF HFIL:
HFIL has 3 wings. They are
Dairy
Retail
Agribusiness
1. Dairy:
It is the major wing among all. The dairy products manufactured by HFIL are
57

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.
2. Retail:
In the retail sector HFIL has outlets namely Fresh@. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.
In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4
respectively are there. Totally there are 26 retail shops are there.
Fresh@ is a unique chain of retail stores, designed to meet the needs of the
modern Indian consumer. The store rediscovers the taste of nature every day making
grocery shopping a never before experience.
The unique& distinctive feature of Fresh@ is that it offers the widest
range of fresh fruits and vegetables which are directly hand picked from the farms.
Freshness lies in their merchandise and the customers are always welcomed with fresh
fruits and vegetables no matter what time they walk in.
3. Agri Business:
In this business HFIL employees will go to farmers and have a deal with
them. Those farmers will sell their goods like vegetables, pulses to HFIL only. And HFIL
will transport the goods to retail outlets.
The agricultural professors will examine which area is suitable to import
vegetables from and also examine the vegetables, pulses and fruits in the lab. And finally
they report to the Head-Agribusiness. Representatives as per the instructions given by the
agri professors will approach the farmers directly and make a deal with them. It is the
process of registering the farmers.
Heritage Finlease Heritage Finlease Limited was incorporated under the companies Act
1956 on 23rd of February 1996 and commenced business from 2nd day of April 1996.
58

The Registered office is located at 6-3-541/c Punjagutta, Hyderabad-500082.
The following are the directors of the company: Sri D.SeetharamaiahSmt. N.

Bhuvaneswari Sri M. Sivarama Varaprasad Sri R.S.Bakkannavar The Company was
registered as Non Banking Financial Institution on 5th Day of December 1998 by
Reserve Bank of India as a Deposit Taking Company under the category Hire Purchase
Company.
At Present the company is allowing Dairy Loans to Small Farmers under Tie up
arrangement with Heritage Foods (India) Limited. The Company has been earning profits
from inception and functioning in conformity with the rules and directions of Reserve
Bank of India.
59
CHAPTER-IV
DATA ANALYSIS
&
60
INTERPRETATION
AGE GROUP OF THE RESPONDENTS:

The below table shows the age group of the respondents surveyed:
AGE
No Of Respondents
18-28
54
28-38
28
38-48
10
Above 48
Total
100
61
INFERENCE: From the above table, 54% of the respondents belong to the age group of
18-28 years, 28% of the respondents belong to the age group of 28-38 years, 10% of the
respondents belong to the age group of 38-48 years, 8% of the respondents belong to the
age group of above 48 years.
OCCUPATION OF THE RESPONDENTS:

The below table shows the type of respondents of the respondents surveyed.
Occupation
No Of Respondents
Student
36
Business
18
Private Employee
28
Govt Employee
18
Total
100
62
INFERENCE: From the above table 36% of the respondents are students, 18% of the
respondents are businessmen, 28% of the respondents are private employee, 18% of the
respondents are Govt employee.
HAVING KNOWLEDGE OR NOT:

The below table shows that whether the respondents is having a two wheeler or not
Having Knowledge or not
No of respondents
Yes
80
No
20
Total
100
63
INFERENCE:
From the above table 80%of people having Knowledge Retail products and 20% are not
having Knowledge Retail products.
TYPE OF FOOD PRODUCTS THAT THE RESPONDENT IS KNOWN:

The below table shows the type of food products that the respondent know.
Type of food products
No of respondents
% of respondents
HERITAGE
42
42
SHOPPERS STOP
14
14
MORE
26
26
BIG BAZAAR
15
15
64

LIFE STYLE
03
TOTAL
100
100
INFERENCE:
From the above table 42%of the respondents are having HERITAGE food products.
14%of the respondents are having SHOPPERS STOP. 26%of the respondents are having
MORE food productss.15% of the respondents are having BIG BAZAAR food
productss.3% of the respondents are having LIFE STYLE food products.
SOURCES OF INFORMATION
The below table shows, from where did the respondent get the information about the
Food products.
Sources of information
No of respondents
Offers
15
Advertisements
27
Referred from friends & relatives
33
Technology
10
Finance Schemes
15
65

Total
100
INFERENCE:
From the above table 15%of people known from offers, 27% of people known from
advertisements, and 33% of people known from their friends and relatives, 10% of people
known from technology, 15% of people known from finance schemes.
SATISFACTION WITH HERITAGE:

Service
HERITAGE Style
Performance
Features
Price
Quality
Reliability
providing
NeatnessBrand Image
Excellent
11
15
Very good 0
15
10
11
10
11
13
12
11
15
Good
Average
Poor
66

SHOPPERS
STOP
Service
Style
Performance Features Price Quality Reliability
providing
Neatness Brand Imag
Excellent
Very good
Good
Average
Poor
SATISFACTION WITH SHOPPERS STOP:
67
9
0

SATISFACTION WITH LIFE STYLE:
Brand
LIFE STYLE Style
Performance Features Price
Quality Reliability Service providing
Neatness Image
Excellent
Very good
Good
Average
Poor
SATISFACTION WITH MORE:

Service
MORE
Style
Performance Features
Price
Quality
Reliability providing
68
Neatness
Brand
Image

Excellent 3
Very good2
Good
14
Average 2
Poor
The following table shows, the main motive, which the respondents want to be in their
brand of food products.
% of respondents
Main Motive
No of Respondents
Style
11
11
Performance
22
22
Features
69
Price
22
22
Quality
Reliability
Service providing
21
21
Neatness
17
17
Total
100
100
INFERENCE:
From the above table 11% of the respondents preferred STYLE as their main motive,
22% of the respondents preferred PRICE as their main motive, 4%of the respondents
preferred PERFORMANCE as their main motive, 22% of the respondents preferred
QUALITY as their main motive, 2% of the respondents preferred RELIABILITY as their
main motive, 1% of the respondents preferred SERVICE as their main motive, 21% of
the respondents preferred NEATNESS as their main motive, 17% of the respondents
preferred BRAND IMAGE as their main motive.
70
STYLE:
The following table shows that, some of the brands of Retail products respondents
selected STYLE as their main motive.
Brand
No of respondents
HERITAGE
24
SHOPPERS STOP
35
MORE
30
LIFE STYLE
01
BIG BAZAAR
10
Total
100
71
INFERENCE:
The above table shows that SHOPPERS STOP and MORE are the competitors
with HERITAGE.
PRICE:
selected PRICE as their main motive.
Brand
No of respondents
HERITAGE
27
SHOPPERS STOP
18
MORE
42
LIFE STYLE
BIG BAZAAR
12
Total
100
72
INFERENCE:
The above table shows that MORE is the competitor with HERITAGE.
PERFORMANCE:
selected PERFORMANCE as their main motive.
Brand
No of respondents
HERITAGE
45
SHOPPERS STOP
10
MORE
30
BIG BAZAAR
10
LIFE STYLE
Total
100
73
INFERENCE:
The above table shows that HERITAGE is the best.
QUALITY:
selected QUALITY as their main motive.
Quality
No of respondents
HERITAGE
54
SHOPPERS STOP
MORE
21
BIG BAZAAR
15
LIFE STYLE
Total
100
74
INFERENCE:
RELIABILITY:
selected RELIABILITY as their main motive.
Reliability
No of respondents
HERITAGE
40
SHOPPERS STOP
MORE
40
BIG BAZAAR
15
LIFE STYLE
Total
100
75
INFERENCE:
The above table shows that MORE is the competitor with HERITAGE.
SERVICE:
selected SERVICE as their main motive.
After Sales Service
No of respondents
HERITAGE
52
SHOPPERS STOP
MORE
27
LIFE STYLE
BIG BAZAAR
10
Total
100
76
INFERENCE:
NEATNESS:
selected NEATNESS as their main motive.
NEATNESS
No of respondents
HERITAGE
30
SHOPPERS STOP
10
MORE
25
LIFE STYLE
10
BIG BAZAAR
25
Total
100
77
INFERENCE:
BRAND IMAGE:
selected BRAND IMAGE is their main motive
Brand Image
No of respondents
HERITAGE
30
SHOPPERS STOP
10
MORE
30
LIFE STYLE
15
BIG BAZAAR
15
Total
100
78
INFERENCE:
The above table shows that HERITAGE & MORE is the best.
Respondents who want to buy the Shopping of a particular brand:
Brand
No of respondents
HERITAGE
45
SHOPPERS STOP
00
MORE
20
LIFE STYLE
10
BIG BAZAAR
25
Total
100
79
INFERENCE:
The above table shows 45% of the respondents want to buy HERITAGE.
80
CHAPTER-V
SUMMARY OF SUGGESTIONS
81
SUGGESTIONS
The food products recently introduced by HERITAGE are mostly concerned
about Stylish Goods. So, they should also consider middle-class people also
Indian market is a price sensitive markets the food products should be at

Minimum price with maximum quality.
The standard of service should be improved.
Advertisements in Televisions, offers should be increased to attract the People.

If HERITAGE can improve in STYLE and NEATNESS it will be the best in all
the
Other competition brands.
82
Chapter 6
CONCLUSIONS
FINDINGS
BIBILIOGRAPHY
83
CONCLUSIONS
40% of the respondents are HERITAGE customers and hence it is most
Preferred Retail products brand out of various brands.
HERITAGE DAIRI is the most preferred out of All others

60% of the respondents are considering HERITAGE brand before Purchasing
their retail needs.
Most of the respondents are getting information through friends Before

purchasing the retail brand products.
Most of the respondents are having good satisfaction with Service comparing
to other brands.
Most of the respondents are giving more preference to Quality.

60% of the respondents are affecting by their friends and relatives.
84
FINDINGS
40% of the HERITAGE customers are employees and 29% of the customers are
others.
Most of the respondents belong to the age group of 18-40 years.

HERITAGE DARI & RETAIL Products is the most preferred in the HERITAGE
products.
Most of the respondents getting information through the Media and friends before
purchasing the vehicle.
Most of the respondents are motivated by their friends and family members.
Most of the respondents have good satisfaction with the performance of outlets.
64% of the respondents are satisfied with the Quality of their Products.
Most of the respondents felt that the price is reasonable.
Cent percent of the respondents satisfied with the response of the sales executive
at first visit.
60% of the HERITAGE users have good satisfaction with the services given by
the company.
Most of the respondents are satisfied with the response of the company to the
complaints given by the customers.
Most of the respondents are satisfied with the fulfillment of promises by the
company.
85
BIBILIOGRAPHY
. AUTHOR NAME
PHILLIP KOTLER
REFERED BOOKS
Principles of Marketing 11th Edition
Prentice Hall India.
PHILLIP KOTLAR
Marketing Management Millennium

Edition.Prentice Hall India
V.S.RAMASWAMY &
NAMAKUMARI
RICHARD R STILL
Marketing Management -7th Edition

Millennium India Ltd.
Sales Management -5th Edition
G.C.BERI
Marketing Research -6th Edition

Tata McGraw Hill Co.Ltd.
LUCK DAVID &

ROBIN RONALD
Marketing Research -7th Edition

WEB SITES
www.heritagefoods.com
www.retailinginindia.com
wwwbirlagroup.com
86

www.SHOPPERS STOP .com
Chapter 7
Annexure
87
QUESTIONNAIRE
BUYING MOTIVES FOR RETAIL BUSINESS
Gender:
Male/
Female______
Age:
____
Highest
Educational
Qualification:_______________
Q.1)
How Often you visit Heritage store: ..
Q.2)
What is the best in Heritage store:?
Q.3)
1) Infrastructure
2) Arrangement
3) Service
4) None
Rate the Heritage service ?

a) Poor
Q.4)
Q.5)
store
b) Moderate
d) Good
e) excellent.
Type of facility:..
a)
Self serve
b)
Full serve
c)
Both
Are you satisfied by customar service provided at Heritage retail

a) YES
Q.6)
c) Satisfactory
b) NO
What is your Average bill that you make here:
88
Q.7)
In which way you preferred in buying Heritag Brand

a)Offer
Q.8)
b)advertisement c)Technology d)Finance schems
Availability of products at Heritage retail store is ?

a)excellent
Q.9)
b)very Good c)Good d)Average e)Poor
Rate the prices indexed here relating to Market price(Other stores?

a) Low
b) Moderate/Satisfactory
c) High
Q.10) WHAT IS THE MAIN MOTIVE BEHIND PURCHASING HERITAGE

PRODUCTS?
Style
Quality
Performance
Price
Reliability
Service
Q.11) Out of the following products which products are being sold at your
retail
Outlet?(Please tick at appropriate place)
Type of Product
Groceries
FMCG
NON-FMCG
89
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Retail Management System at

Retail Management System at

Retail Management System at

Local companies and local-foreign joint ventures are expected to more

These drawbacks present opportunity to international and/or professionally

Retail Management System at

STATEMENT OF THE PROBLEM:

Retail Management System at

To study the Retail Marketing Strategies amongst the users of

To study the satisfaction levels of Heritage retail customers

To make suggestions for improvement of their products & their services

To ascertain the role of media i1towards the diversified portfolio of

Retail Management System at

Retail Management System at

Using mechanical devices

Retail Management System at

Through projective techniques

In depth interviews and

Retail Management System at

Retail Management System at

LIMITATION OF THE PROJECT STUDY

Since this study concentrated on Heritage no attempt was made to study

Retail Management System at

Retail Management System at

Retail Management System at

Retail Management System at

Delivery, where goods are shipped directly to consumer's homes or workplaces.

Self-service, where goods may be handled and examined prior to purchase

Second hand retail

Retail Management System at

Retail Management System at

Retail Management System at

The Indian Retail Market

Retail Management System at

Major Indian Retailers

Next retail India Ltd (Consumer Electronics)(www.next.co.in)

Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion

Retail Management System at

K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit

Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International

Pyramid Retail-Formats: Pyramid Megastore, TruMart

Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain

Retail Management System at

Automatic approval is not allowed for foreign investment in retail.

Retail Management System at

Retail Management System at

Growth in developing countries

Retail Management System at

Typical supermarket merchandise

Alcoholic beverages (as state/provincial and/or local laws allow)

Books, newspapers, and magazines, including supermarket tabloids

Canned goods and dried cereals

Retail Management System at

Retail Management System at

Personal hygiene and grooming products

Toys and novelties

Typical store architecture

Retail Management System at

In Britain supermarkets have been accused of squeezing prices to farmers, forcing

Retail Management System at

Retail Management System at

Retail Management System at

Retail Management System at