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Introduction
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
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The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size.
They offer everything under one roof. The merchandise ranges from fruits &
vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen
foods, garments and fashion accessories, consumer electronics & electrical products,
home decor and needs, office stationeries, soft toys. On an average, a Spencer's hyper
stocks 70,000 SKUs across 35,000 items.
The Spencer's stores are neighborhood stores ranging from 1500 less than 15000 sq.
ft. These stores stock the necessary range and assortment in fruit and vegetables,
FMCG food and non-food, staples and frozen foods and cater to the daily and weekly
top-up shopping needs of the consumer.
[1]
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Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10, Fashion Station,
Big Bazaar, Lee Cooper (JV)
Stock Information
Company Timeline
1992 Initial public offer (IPO) was made in the month of May.
2001 Big Bazaar, Is se sasta aur accha kahi nahin - Indias first hypermarket chain
launched.
Political
Even though the government is yet to give the sector an Industry status and we see aggressive
political protests, some aspects of the Governments policy have been favourable on other
fronts. For example- lets take Delhi, NCR and Mumbai. In Mumbai, the Government is
releasing unused textile mill land for retail development. In Delhi & NCR, the Government
has released large tracts of land for retail development. Overall in politics, those in opposition
will always oppose..so is there any point in talking about this?
Anyway main points to look out for are :
1. Decision on FDI
2. Governments stand for foreign players
Economical
Although the organized retail sector constitutes only 4-5% of the USD 350 billion Indian
retail market, it is expected to grow 400%- from USD 12-15 billion currently, to over USD
30.0 billion by 2010. There is hectic activity in the sector in terms of expansion, entry of
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in
our
economy.
purchase
these
items.
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Food products
Hard goods ("hard line retailers") - appliances, electronics, furniture, sporting goods,
etc.
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;
Warehouse stores - warehouses that offer low-cost, often high-quantity goods piled on
pallets or steel shelves; warehouse clubs charge a membership fee;
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Variety stores or "dollar stores" - these offer extremely low-cost goods, with limited
selection
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 citizen
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. 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.
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, has
become more common since the 1920s.
Customer service
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.
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Retail
scene in India
With organized retail in India pegged at Rs 25,000 crore (Rs 250 billion) -- out of a total of
Rs 800,000 crore (Rs 8,000 billion -- and a double digit growth rate, marketing companies are
setting up shops to provide differentiated services to clients. Till now sales people were the
link between the retailer and the producer. But sales personnel are busy selling a product and
do not have a fair idea of what retailing is about. The focus is to priorities retail. That is, not
only to sell a product to a consumer but to get the consumer to interact with the product.
Gone are the days when retailing meant mere availability of a product. With competition
becoming stiffer companies are looking at 'experiential' marketing. Also the lack of proper
metrics to measure marketing spends is a serious issue.
In today's swiftly changing business environment, there is no option but to be in the know - to
be constantly on the move, keeping tabs on the shifting trends in the market place and
maneuvering your strategy to stay on top. The retail arena today is very different - the
opportunities are incredible but exploiting them is extremely tough.
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Sen-2000: Store Image and Consumer Shopping Habits: Indian Context: In India, some
empirical studies provide important information about consumer behavior and its responses
to the development of organized retail. Economical and social changes are major contributors
for a growing fragmentation of consumers into multiple segments with different values and
buying priorities. Consumers have become more pragmatic, educated and demanding,
learning how to manage money and time more efficiently. The focus on low prices was
gradually replaced by a value for money perspective. The study developed by ETIG
(Economic Times Intelligence Group, 2002) confirms these tendencies. Concerning food, the
most important attribute mentioned was quality, followed by price. Indian consumer has
different reasons for preferring different store formats, either modern or traditional; Sen
(2000) confirms this in the study undertaken in Indian context. He confirms that in the case of
hypermarkets, the main motives for preferences, in decreasing order are low prices, the
possibility of buying everything in the same place and the general appearance of the store.
Several investigations emphasize the possible coexistence of different store formats
(Chandrasekhar, 2001) and others point out the relationship between the type of store and the
type of products. These studies show that, while specialized and traditional stores are
preferred for fresh products, hypermarkets are preferred for shopping in general, and also for
frozen food, groceries and beverages. The purchase of perishables in hypermarkets is
reduced.
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Data Analysis
Q1) Are you aware about the organized Retail Outlets in Ulhasnagar?
Yes
No
Retail Outlets
40%
Yes
60%
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No
Q2) Which organized FMCG Retail outlets are you aware about ?
Subhiksha
6Ten
Spencers
Reliance Fresh
Vishal Mega Mart
Novelty
Santosh Kriyana
FMGC Retail
12%
Subhiksha
14%
Relaiance Fresh
Novely
18%
29%
6Ten
Vishal Mega
Santosh Kriyana
9%
18%
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Subhiksha
6Ten
Spencers
Reliance Fresh
Vishal Mega Mart
Novlety
Santosh Kriyana
FMGC Retail
12%
Subhiksha
14%
Relaiance Fresh
Novely
18%
29%
6Ten
Vishal Mega
Santosh Kriyana
9%
18%
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Q4) Out of these organized FMCG Retail Outlets where do you generally purchase from ?
Subhiksha
6Ten
Spencers
Reliance Fresh
Vishal Mega Mart
Novlety
Santosh Kriyana
FMGC Retail
12%
Subhiksha
14%
Relaiance Fresh
Novely
18%
29%
6Ten
Vishal Mega
Santosh Kriyana
9%
18%
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Wholesale Mkt.
Any Other
10%
Neighborhood
15%
Wholesale Market
Convinent Store
Any Other
15%
60%
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Q6) Whats your average one time purchase at FMCG Retail Outlets in Rupees ?
Below 1000
1,000-1500
1,500-2000
2,000-2500
15%
50%
1000/1500
1500/2000
2000/2500
25%
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Better Quality
Good environment
Time Saving
Discounts and Promotional schemes
Display of products
13%
19%
Better Quality
Reasonable Price
19%
Product Range
Good Environemtn
19%
13%
19%
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Time Saving
Display of Produts
Q8) Do you think by shopping at organized FMCG Retail Outlets your monthly
expenditure:
Reduced
Remain Same
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Increased
Shopping of FMGC
Reduced
40%
45%
Remain Same
Increased
15%
Q9 ) Are you satisfied with the quality of goods offered by the organized FMCG Retail
Outlets ?
Highly Satisfied Satisfied
Neutral
Dissatisfied
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Highly Dissatisfied
15%
10%
Highly Satisfied
50%
Satisfied
Netural
Highly Disatisifed
25%
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Q10) Are you satisfied with the range offered by organized FMCG Retail Outlets from
where you purchase ?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
15%
10%
Highly Satisfied
50%
Satisfied
Netural
Highly Disatisifed
25%
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Q11) What do you think the service provided by these organized FMCG outlets in
comparison to other stores are:
Excellent
Good
Average
Poor
Very Poor
10%
15%
Excellent
40%
Good
Average
10%
Por
Very Poor
25%
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Remain same
Decrease
Definitely decrease
Unorganized
Definitely Increas
15%
Increase
30%
Remain Same
15%
Decrease
Definetaly Decrease
20%
20%
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Conclusion
The customers are attracting towards shopping malls & retail outlets.
The shopping malls & retail outlets are targeting to middle class customers because
the purchasing power of this class is rapidly growing as well as the class is also
growing.
The young generation is fashion & show-off conscious so retail outlets are mainly
focused on them.
Most of the family wants to purchase from big showrooms and malls because there
are no bargaining system so the have a trust that there is no cheating.
The main strength of most of the retail outlets are providing attractive offers to attract
customers.
Big retail stores are running customer loyalty programs which has increased profits
and no. of customers.
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Bibliography
BOOKS:Marketing Management. ----Kotler & Keller
Marketing Management in Indian Perspective
----V. S. Ramaswamy & S. Namakumari
Retail management ---Levy & Weitzs
WEBSITES:www.emraldinsight/1355-5855.htm
www.Fibre2fashion.com/industry-article
www.tataretail.com
www.retailindia.net
www.retailyatra.com
www.retailbiz.com
www.aboutus.com
www.businessworld.in
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Annexure
Q1) Are you aware about the organized Retail Outlets in Ulhasnagar?
Yes
No
Reliance Fresh
Novelty
6Ten
Santosh Kriyana
Spencers
Reliance Fresh
Vishal Mega Mart
Novlety
Santosh Kriyana
Spencers
Q4) Out of these organized FMCG Retail Outlets where do you generally purchase from ?
Subhiksha
Reliance Fresh
Novlety
6Ten
Santosh Kriyana
Spencers
Q5) Where were you shopping before buying from these organized FMCG Retail Outlets
Neighborhood Karyana Store
Wholesale Mkt.
1,000-1500
1,500-2000
2,000-2500
Q7) What are your reasons for purchasing from these organized FMCG Retail Outlets ?
(mark only 3)
Better Quality
Reasonable price
Product range
Good environment
Time Saving
Display of products
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Q8) Do you think by shopping at organized FMCG Retail Outlets your monthly
expenditure:
Reduced
Remain Same
Increased
Q9 ) Are you satisfied with the quality of goods offered by the organized FMCG Retail
Outlets ?
Highly Satisfied Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Q10) Are you satisfied with the range offered by organized FMCG Retail Outlets from
where you purchase ?
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Q11) What do you think the service provided by these organized FMCG outlets in
comparison to other stores are:
Excellent
Good
Average
Poor
Very Poor
Remain same
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Decrease
Definitely decrease