Study to Analyze the Target Audience and the Competitive Advantages of the Retail Format for Consumer Durable and Footwear Sector in GIP Mall

A

Training Report

On

“Study to analyze the target audience and the competitive advantages of the retail format for

consumer durable and footwear sector in GIP Mall.”

SUBMITTED TO :- SUBMITTED BY :- DR. DHARMENDRA NIDHI SINGH PGDM DEPTT. ROLL NO.-PGDO8039 PGDM VI TRIMESTER

Preface

This project report deals with the “Study to analyze the target audience and the competitive advantages of the retail format

for consumer durable and footwear sector in GIP Mall.”

This report is a humble presentation of the information gathered and

experience gained during the Research period.

In this report , where I have tried to combine all the aspects to analyze the

target audience & competitive advantages of the retail format.

2

ACKNOWLEDGEMENT

This project would have been difficult to complete, but for the invaluable

contributions from some important people. Let me take this opportunity to thank them.

But firstly, I thank my HOD Dr.Dolly Phillip for giving me such a challenging

project to work upon. I hope this challenge has brought the best out of me.

I am also thankful to Dr. Dharmendra, my faculty guide for constantly

supporting and guiding me in achieving the objectives of my project. I am indebted to my

faculty guide for the direction and purpose he gave to this project through his invaluable

insights, which constantly inspired me to think beyond the obvious. His encouragement

and patience helped me instill a great degree of self-confidence to deliver a good research

work. I feel indebted to my parents and friends who have provided help directly or

indirectly in successful completion of this project

Finally, I express gratefulness to the local ‘janata’ for all their co-operation in

making this research possible.

The satisfaction, which accompanies the successful completion of any task is

incomplete without the mention of the names of those people who made it possible

because although success may be the epitome of one’s hard work and determination, but

it can’t be achieved without someone’s encouraging guidance, advice, coordination and

encouragement.

NIDHI SINGH

ROLL NO.: PGDO8039

3

DECLARATION

I, student of PGDM from Institute Of Professional Excellence & Management

Uttar Pradesh hereby declare that I have completed Live Project Report on “A Study to

analyze the target audience and the competitive advantages of the retail format for

Consumer Durable and Footwear Sector In GIP MALL” as a part of the course

requirement.

I further declare that the information presented in this project is true and original

to the best of my knowledge.

DATE: NIDHI SINGH

PLACE:

4

CONTENTS

Preface

Acknowledgement

Declaration

1 Introduction

2 Problem Statement

3 Research Methodology

4 Results & Data Analysis

5 Suggestions & Conclusion

References

Annexure

5

INTRODUCTION

THE GLOBAL RETAIL INDUSTRY : : AN OVERVIEW

Retail has played a major role world over in increasing productivity across a wide

range of consumer goods and services .The impact can be best seen in countries like

U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like

Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the

retail sector.

Retail is the second-largest industry in the United States both in number of

establishments and number of employees. It is also one of the largest world wide. The

retail industry employs more than 22 million Americans and generates more than $3

trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the

world’s largest retailer. Already the world’s largest employer with over 1million

associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s largest company

when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most

successful retail brand in the world due its ability to leverage size, market clout, and

efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500

companies in the world. Forbes Annual List of Billionaires has the largest number

(45/497) from the retail business.

Top Ten Indian Retailer

105Trinetra

112Globus

119Ebony retail

125Vishal Mega Mart

144Subhiksha

149Pyramid retail

153Trent

180Landmark (Lifestyle)

233Shoppers Stop

444Future Group (Pantaloon)

US $ Million Name

RETAIL FORMATS

6

VS

7

DIFFERENT FORMS OF RETAILING: EMERGENCE OF NEW

FORMATS OF RETAILING IN INDIA

The Indian retail sector can be broadly classified into:

a) FOOD RETAILERS: There are large number and variety of retailers in the food-

retailing sector. Traditional types of retailers, who operate small single-outlet businesses

mainly using family labour, dominate this sector .In comparison, super markets account

for a small proportion of food sales in India. However the growth rate of super market

sales has being significant in recent years because greater numbers of higherincome

Indians prefer to shop at super markets due to higher standards of hygiene and attractive

ambience.

b) HEALTH & BEAUTY PRODUCTS: With growth in income levels, Indians have

started spending more on health and beauty products .Here also small, single-outlet

retailers dominate the market .However in recent years, a few retail chains specializing in

these products have come into the market. Although these retail chains account for only a

small share of the total market , their business is expected to grow significantly in the

future due to the growing quality consciousness of buyers for these products .

8

c) CLOTHING & FOOTWEAR: Numerous clothing and footwear shops in shopping

centers and markets operate all over India. Traditional outlets stock a limited range of

cheap and popular items; in contrast, modern clothing and footwear stores have modern

products and attractive displays to lure customers. However, with rapid urbanization, and

changing patterns of consumer tastes and preferences, it is unlikely that the traditional

outlets will survive the test of time.

d) HOME FURNITURE & HOUSEHOLD GOODS: Small retailers again dominate

this sector. Despite the large size of this market, very few large and modern retailers have

established specialized stores for these products. However there is considerable potential

for the entry or expansion of specialized retail chains in the country.

e) DURABLE GOODS: The Indian durable goods sector has seen the entry of a large

number of foreign companies during the post liberalization period. A greater variety of

consumer electronic items and household appliances became available to the Indian

customer. Intense competition among companies to sell their brands provided a strong

impetus to the growth for retailers doing business in this sector.

f) LEISURE & PERSONAL GOODS: Increasing household incomes due to better

economic opportunities have encouraged consumer expenditure on leisure and personal

goods in the country. There are specialized retailers for each category of products (books,

music products, etc.) in this sector. Another prominent feature of this sector is popularity

of franchising agreements between established manufacturers and retailers.

9

DEVELOPMENT OF RETAIL FORMATS

Classifying Indian retail

An enclosure having different formats of in-store retailers, all under one roof.

Shopping Malls

Small self-service formats located in crowded urban areas.Convenience Stores

Larger than a Supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city

Hyper-mart

Stores offering discounts on the retail price through selling high volumes and reaping the economies of scale.

Discount Stores

Extremely large self-services retail outlets.Supermarkets

Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, furniture, appliances, toys, etc.

Department Stores

Focus on a specific consumer need, carry most of the brands available.

Specialty Stores

Exclusive showrooms either owned or franchised out by a manufacturer.

Branded Stores

DescriptionFormat

10

11

MALLS

Mall development is phenomenal in India. The mall mania is spreading fast and

entering even the second tier cities in India. Real estate developers are jumping very fast

to take this further from Metro cities to smaller cities and corporate houses like ITC and

Sriram group are making steady progress to make this phenomena feasible in rural

market also. There is no denying that the top notch cities like Mumbai, Delhi, Bangalore,

Hyderabad, Kolkata, Chennai and Pune are leading the way but the second tier cities like

Ludhiana, Chandigarh, Nagapur and Surat are catching the eye of all retailers. Retail

developers are in such a mood that they may over ride the requirement in a specific city.

Large format malls are increasingly getting prominent with adequate retail space

allocated to leisure and entertainment. Some states like Punjab have lifted entertainment

tax on multiplexes till 2009. This boosted the confidence of the mall developers to

accommodate entertainment players like PVR, Waves, Adlab and Fun Republic in large

malls.

12

DEPARTMENT STORE

A department store offers an extensive assortment (width and depth) of goods and

services that are organized into separate departments for the purpose of efficient buying,

assortment, promotion and above all ease of shopping for the consumer. Such a format

provides the greatest selection of any general merchandize and very often serves as the

anchor store in shopping mall or shopping centre. In India, the number of department

stores is less compared to other retail formats such as supermarkets and discount stores.

HYPERMARKET

13

Hypermarkets have emerged as the biggest crowd pullers due to the fact that

regular repeat purchases are a norm at such outlets. Hypermarkets not only offer

consumers the most extensive merchandise mix, product and brand choices under one

roof, but also create superior value for money advantages of hypermarket shopping. With

product categories on offer ranging from fresh produce and FMCG products to

electronics, value apparels, house ware, do it yourself (DIY) and outdoor products, the

hypermarkets are becoming popular formats in India..

SUPERMARKET

Unlike western countries where supermarkets are prominently visible, in our

country this is lacking. The supermarkets largely concentrate on selling food related

14

products and are considerably smaller in size compared to hypermarkets. Their value

proposition is also different from the hypermarkets. The supermarkets offer relatively less

assortments but focus on specific product categories. They do not play the game on price

rather use convenience and affordability as their salient features. In India this role is

played by the provision stores and sweet shops. Interestingly the fresh vegetables and

fruits are sold on the foot path and in open markets. Traditionally consumers feel

conservative to buy fruits and vegetables from air conditioned supermarkets. They prefer

to buy either from the local mobile vegetable sellers or from the nearest sabji market.

Probably that works as deterrent factor for the growth of supermarkets in India. But the

situation is changing and slowly supermarket operators are coming to their own.

CATEGORY KILLER

The category killer concept originated in the U.S. due to abundance of cheap land

and the dominant car culture. Category Killer is a kind of discount specialty store that

offers less variety but deep assortment of merchandise. By offering a deep assortment in

a category at comparative low prices, category specialist can be able to “kill’ that specific

category of merchandize for other retailers. Generally such kind of retailers uses a self

service approach. They use their buying power to negotiate low prices, excellent terms

and assured supply when items are scarce. In India this kind of retail stores are not

prevalent at this point of time. But there is scope for such kind of format. In India, Mega-

Mart is one sort of category killer which sells apparel products.

CHALLENGES OF RETAILING IN INDIA

15

LITERATURE REVIEW

16

Emerging Trends in Modern Retail Formats & Customer Shopping Behavior in Indian Scenario: A Meta Analysis & Review

To analyze the emerging trends in shoppers’ behavior 30 shop keepers from 6 Malls

operating in Delhi & NCR were interviewed during November 2007-Jan 2008.Since the

study is focused on country analysis, hence, for the rest part of the country secondary

data published by different research institutions like TSMG, CSSO, Future Group,

NCAER etc have been considered to draw the key inferences.

Key Observations: The primary data collected from the respondents, led to the

following key observations about customers’ shopping behaviour in Indian scenario

among the modern retail formats:

1. Master and serving class employee, never shop at the same store, though lower

middle class visits hyper markets and discount stores, the upper middle class

frequents department stores, specialty chains and super market.

2. For India two, the clean and shiny environment of modern retail stores creates the

perception that such stores are too expensive and exclusive, so they are not meant

for them. India two tends to feel alienated in environment, frequent by India one.

3. India two moves and finds lot of comfort in crowds, so they normally hesitate in

visiting the stores having broader area coverage.

In the preparation to face fierce competitive pressure, Indian retailers must come to

recognize the value of building their own stores as brands to reinforce their marketing

Positioning, to communicate quality as well as value for money. Sustainable competitive

advantage will be dependent on translating core values combining products, image and

reputation into a coherent retail brand strategy. With the generous use of Global and

Local Experiences, Indian retailers are going to improve their bottom lines with efficient

management of Supply Chain and Logistics. At the same time, Indian Retailers like

Future Group with retail stores like Big Bazaar, Pantaloons and Reliance Retail are also

going to show the world as to how it can be managed in a more innovative and efficient

manner. The retail sector in India is witnessing a huge revamping exercise as traditional

17

markets make a way for new formats such as departmental stores, hypermarkets,

supermarkets and specialty stores. Western style malls have begun appearing in metros

and second-rung cities which introduced the Indian consumer to a shopping experience

like never before.

THE GREAT INDIA PLACE

The Great India Place is a shopping mall located in Noida, India. It comprises

an area of 1,500,000-square-foot (139,400 m2), making it one of the largest operational

mall in India. A world-class integrated destination with multiple theme park, cinemas,

shops and restaurants! The Great India Place is a retail and entertainment complex as part

of Entertainment City, an international standard amusement park.

FEATURES

The Great India Place was developed by the Unitech Group and is located in

Sector 18-A of Noida. The mall is part of the larger Entertainment City amusement park.

The mall houses big retail outlets like Shopper's Stop, Globus, Pantaloons, Big Bazaar,

Home Town, Lifestyle and Lifestyle Home, along with international brands like Adidas,

Nike, Guess, Marks & Spencer. The mall follows a zoned concept with home and grocery

on the basement level, women's apparel on one side, men's on the other and a 180,000

sq.ft. Food and Entertainment zone on the top floor, with a 6-screen Adlabs multiplex,

18

http://en.wikipedia.org/wiki/Adlabs

http://en.wikipedia.org/wiki/Marks_%26_Spencer

http://en.wikipedia.org/wiki/Guess_(clothing)

http://en.wikipedia.org/wiki/Nike,_Inc.

http://en.wikipedia.org/wiki/Adidas

http://en.wikipedia.org/wiki/Big_Bazaar

http://en.wikipedia.org/wiki/Pantaloon_Group

http://en.wikipedia.org/wiki/Shopper's_Stop

http://en.wikipedia.org/wiki/Noida

http://en.wikipedia.org/w/index.php?title=Unitech_Group&action=edit&redlink=1

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Noida

http://en.wikipedia.org/wiki/Shopping_mall

with a total seating capacity of 1220 seats. There is also a 80,000 sq.ft. zone dedicated for

the Wedding Bazaar, and a Home saaz section for home improvement. The maximum

area of the mall is covered by Future Group ventures named as Home Town, Big Bazaar

and Pantaloon. Designed by Callison Inc. the interior theme is "shoppertainment", which

integrates shopping and entertainment in the same premises. • Shops of all possible

product and service categories.

6-screen multiplex cinema

Multiple theme park

Indoor entertainment area

PROBLEM STATEMENT

“A study to analyze the competitive advantages of the retail formats operating in

GIP Mall.”

Key objective

To analyze the target audience and the strategic competitive advantages of the

multibranded and exclusive retail outlet for Consumer Durables sector and Footwear

sector in the GIP Mall.

Sub Objectives:

To analyze the socio-economic profile of the target customers visiting the retail

stores in GIP Mall.

To analyze the sales promotion strategies in shopping malls

To analyze the performance difference of retail firms in GIP pursuing different

strategies and the competitive advantage they hold to grow in business.

To analyze the retail success in GIP, where it is operating, its position in the area

and its attractiveness.

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RESEARCH METHODOLOGY

The American Marketing Association defines marketing research as-‘Marketing

Research is the systematic and objective identification, collection, analysis, dissemination,

and use of information for the purpose of improving decision making related to the

identification and solution of problems and opportunities in marketing.’

Effective marketing research involves the following steps:

1. PROBLEM DEFINITION:

The problem can be briefly defined as: “To develop a deeper understanding of the

strategic target audience and the strategic competitive advantages of the various retail

formats present in GIP for the different product category.”

2. RESEARCH DESIGN FORMULATION:

A Research Design is a framework or blueprint for conducting the Marketing

Research project. It specifies the details of the procedures necessary for obtaining the

information needed to structure and/ or solve marketing research problem.

The Research Design employed to reach the objective in the project is both

Exploratory and Descriptive Research Design.

3. DATA COLLECTION METHODS:

Data Collection involves the collection of both the secondary as well as the primary data.

Primary data: The primary data was collected by the survey method for the consumers

making use of the questionnaire method and the interview method for the retailers to

collect the responses of the individuals.

Secondary Data: The secondary data was collected through various books, magazines,

websites, journals.

20

4. DESIGNING THE SAMPLE: This involves determining the (a) sampling frame, (b)

sample selection process and (c) the size of the sample.

a) Sampling Frame: It is the list of the population elements from which the sample will be

drawn. For the research work, the sample selected for consumers was 100 consumers as the

sample size. This sample frame was decided based on the location of the retail formats to be

targeted. The sampling frame comprised of 50 consumers from the ground floor and 50

consumers from the fourth floor of the GIP Mall.

b) Sample Selection Process: The sampling process used involved the SIMPLE RANDOM

PROBABILITY SAMPLING.

c) Sample Size: The sample size was 100 for the consumer survey and 4 retailers for the

retail format survey. The sample size was determined on the basis of certain parameters, such

as, the importance of the decision, the nature of the research, the nature of the analysis,

sample sizes used in similar studies, etc.

5. QUESTIONNAIRE DESIGNING: A questionnaire is a structured technique for data

collection that consists of a series of questions, written or verbal, that a respondent answers.

The questionnaire consisted of both the unstructured questions (open-ended questions that

respondents answered in their own words) and structured questions (questions that specify

the set of response alternatives and the response format). The structured questions were both

multiple-choice questions as well as dichotomous questions. Before making the final

questionnaire, a pretesting was done by the Faculty Guide to determine the effectiveness of

the survey questionnaire, question format and wordings of the questionnaire.

6. ANALYSIS AND INTERPRETATION OF THE DATA: Data analysis involves

several steps-

A) Editing: Scanning the data-collection forms to be sure that they are complete and

consistent with the instructions specified.

B) Coding: Assigning numbers to the data so that they can be analysed.

21

C) Tabulation: Orderly arrangement of the data in a table or other summary format achieved

by counting the frequency of responses to each questions.

STATISTICAL TOOL USED:

a) SOFTWARE: Microsoft Excel (As per the instructions of the company).

b) Microsoft Word: Analysis and Interpretation of the findings.

c) The Graphical Representation of Analysis has been done by means of:

Pie Charts

Bar Charts

Graphs

LIMITATIONS OF THE STUDY:

Although all the efforts have been put and no stone have been left unturned, some

limitations might have inadvertently crept in:

The time period of 9 weeks was quite insufficient to learn completely about the

advertising industry and all its technicalities.

There was a time constraint in the study with a large sample.

Some more intriguing question could have been incorporated in the questionnaire

to gain further insights into the problems.

22

SECTORAL ANALYSIS OF RETAIL FORMATS IN GIP

CONSUMER DURABLE SECTOR

Consumer durables market is expected to grow at 10-15% in 2007-2008.

It is growing very fast because of rise in living standards, easy access to consumer

finance, and wide range of choice, as many foreign players are entering in the

market.

Consumer durables are the products whose life expectancy is at least 3 years. The

consumer durables sector can be segmented into consumer electronics, such as,

VCD/DVD, home theatre, music players, color televisions (CTVs), etc. and white

goods, such as, dish washers, air conditioners, water heaters, washing machines,

refrigerators, etc.

SWOT ANALYSIS:

23

STRENGTH

1. Presence of established distribution

networks in both urban and rural

areas.

2. Presence of well-known brands.

3. Increase in the market share of

organized sector vis a vis the

unorganized sector.

WEAKNESS

1. Demand is seasonal and is

high during festive season.

2. Demand is dependent on good

monsoons.

3. Poor government spending on

infrastructure.

4. Low purchasing power of

consumers.

THREATS

1. Higher import duties on raw

materials imposed in the

Budget 2007-08.

OPPORTUNITY

1. Unexploited rural market.

2. Rapid urbanization.

3. Increase in income levels, i.e.

increase in purchasing power

of consumers.

4. Easy availability of finance

STAPLES

Staples, the world’s largest office products company, is committed to making it

easy for customers to buy a wide range of office products, including supplies, technology,

furniture, and business services. With 2008 sales of $23 billion and 91,000 associates

worldwide, Staples serves businesses of all sizes and consumers in 27 countries

throughout North and South America, Europe, Asia and Australia. In July 2008, Staples

acquired Corporate Express, one of the world’s leading suppliers of office products to

businesses and institutions. Staples invented the office superstore concept in 1986 and is

headquartered outside Boston.

24

http://www.staples.com/

STUDY OF TARGET AUDIENCE

TARGET CUSTOMER

The target customers visiting the store are:

1. Corporates and students.

2. Age Group 5 yrs onwards.

3. Middle class and upper middle class to elite class.

CLASSIFICATION OF CUSTOMERS

20222FGFCBBXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXBXXXXXXXXBX

XBMNABXMNBXAMNBXANXMANNXN

1. PASSER-BY: 100%

25

BROWSER

SPENDER

BIG SPENDER

SALES

PASSER-BY

PROFITS

LOYAL SHOPPERS

IN- STORE

TICKET SIZE

CONVERSION

INCLUDEPICTURE "http://www.staples.com/sbd/img/ico/hdr_logo.png" \* MERGEFORMATINET






















2. BROWSER: 95%

3. SPENDER: 66.5% ( 70% OF BROWSER)

4. BIG SPENDER: 28.5% (30% OF BROWSER)

5. LOYAL SHOPPERS: 35%

ANALYSIS OF COMPETITIVE ADVANTAGE THROUGH RETAILING MIX

1. FORMAT: MULTIBRANDED RETAIL OUTLET.

2. POSITIONING: One stop shop for the office supplies.

3. FLOOR SIZE: 8000 sq.ft.

4. LOCATION: Fourth Floor of GIP Mall.

5. NO. OF SKUs: The products are divided into two broad categories with various sub-

categories.

CATEGORY A: STATIONERY CATEGORY B: IT PRODUCTS

1. Files: 50 1. Laptops: 50

2. Pens: 1000 2. Printers: 80-100

3. Pins: > 1000 3. IT accessories: > 1000

4. Boards: 40-50

5. Globes: 8-10

6. Wallets: 10

7. Lunch boxes & Bottles: 50

6. NO. OF SUPPLIERS: Directly from the Warehouse located at Gurgaon and

Ghaziabad through company owned luggage vehicles.

7. AVERAGE BILLING PER CUSTOMER: For stationery, the value ranges between

Rs. 100-300. For IT products, the billing varies from customer to customer.

26























8. AVERAGE FOOTFALL: 500 per day.

9. SHOP DISPLAY: Staples has a mix of various displays. It has an OPEN WINDOW

DISPLAY on the outer side so as to attract the attention of the passers-by. Inside the

store, it has COUNTER DISPLAYS with the impulse- buying merchandise at the

counters. It has also utilized the walls for the display. This type of display is known as

CASCADE/ WATERFALL DISPLAYS.

10. VISUAL MERCHANDISING: The products are divided into two categories:

STATIONERY and IT PRODUCTS. The STATIONERY are displayed on the left side

and the IT PRODUCTS are displayed on the right side of the store. Each product

category has further sub-categories.

11. EMPLOYEE TYPE AND DENSITY: There are 40 Employees with each employee

responsible for a different sub-category and a category.

12. MERCHANDISE TYPE AND DENSITY: Merchandise in the store can be

categorized as:

STAPLES Notebooks, pens, pins, laptops

CONVENIENCE GOODS Printers, Web camera, Chairs

IMPULSE BUYING GOODS Fevisticks, staplers, stationeries such as

pencil, erares, sharpener, scale.

13. FIXTURE TYPE: The fixtures complement the value of the merchandise. The

fixtures comprised of wooden shelves, iron pillars, aluminium racks and Strong plastic

shelves attached to the iron pillars.

14. SOUND TYPE: Staples store does not use any type of sound impact. They keep an

official atmosphere with no music.

27

























































15. ODOUR TYPE: The store uses the room freshner for building the odour in the

atmosphere that adds to the shopping experience in the store.

16. CRM : Personalized attention to each customer is delivered at STAPLES store. The

facility of exchanging the goods, updated information about the new collection through

the personalized SMSs and mailers to the loyal as well as one time purchasers are some

of the CRM practices.

17. LOYALTY PROGRAMS: No loyalty programs

18. PRICING: The STAPLES sell the product on the MAXIMUM RETAIL PRICE

(MRP). For large value products, it provides certain discounts.

STORE LAYOUT: THE CIRCULATION PLAN ( THE “SILENT GUIDE”)

STAPLES retail outlet in GIP Mall has a mix of GRID CIRCULATION

LAYOUT and FREE FLOW CIRCULATION LAYOUT.

28

DIFFERENTIATION FROM THE COMPETITORS: The STAPLES is a one stop shop for all the office supplies at reasonable prices, excellent ambience, good quality and better customer services.

WRITING INSTRUMENT

CHAIRS DISPLAYED STORE ROOM IT

FILING &

BINDIN

G

DESKACCESOR

NOTEBOOKS

IT PRODUCTs

CABLES

PRINTERS

PRINTERS

WRITING























JUMBO ELECTRONICS

29

ART & CRAFT

FILING &

BINDIN

G

IT

LAPTOPS

COUNTERS WITH MERCHANDISE

DISPLAYED

STORE ROOM

CLOAK ROOM

ENTRANCE

EXIT

S-1

IT

IT

IT

I-2I-2

INCLUDEPICTURE "http://www.jumbocorp.com/images/jumbo_logo.gif" \* MERGEFORMATINET

http://www.jumbocorp.com/







Global Brands: The flagship company, Jumbo Electronics Company Ltd. (LLC), is ISO

9001 certified and was founded in the United Arab Emirates in 1974. It's U.A.E. presence

encompasses the seven Emirates of Dubai, Sharjah, Abu Dhabi, Umm Al Qawwain, Ras

Al Khaimah, Fujairah and Ajman. Jumbo Electronics is one of the largest distributors of

Sony products in the world, the company has an enviable line-up of various other

international brands in its portfolio including Acer, Apple, Brother, LG, Palm, Creative,

Dell, Dyson, Epson, Fujitsu Siemens, Hewlett Packard, Hitachi, IBM, Kenwood, Lenovo,

Linksys, Motorola, I-mate, Nokia, Samsung, Sendo, Siemens, Sony Ericsson, Supra,

Toshiba, etc.

JUMBO ELECTRONICS: Jumbo Electronics is one of the biggest names in the field of

consumer electronics, information technology, telecommunications, home appliances,

office automation and entertainment in the UAE and is amongst the first transnational

corporations with a well spread out network of 31 retail stores and 9 service centres

across the emirates.


TARGET CUSTOMER: The target customers visiting the store are:

1. Middle class and upper middle class to elite class.

CLASSIFICATION OF CUSTOMERS

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XXXXXXXBXXXXXXXXBX

XBMNABXMNBXAMNBXANXMANNXN

30

BROWSER

SPENDER

BIG SPENDER

SALES

PASSER-BY

PROFITS

LOYAL SHOPPERS

IN- STORE

TICKET SIZE

CONVERSION








1. PASSER-BY: 100%

2. BROWSER: 90%

3. SPENDER: 45% ( 50% OF BROWSER)

4. BIG SPENDER: 27% (30% OF BROWSER)

5. LOYAL SHOPPERS: 30%


1. FORMAT: MULTIBRANDED CONSUMER DURABLE RETAIL OUTLET.

2. POSITIONING: .


4. LOCATION: Fourth Floor of GIP Mall.

5. NO. OF SKUs: The retail store has 12- 14 brands. Each brand has 200-250 products

displayed. The various brands displayed at the store are:

APPLE BROTHER CASIO

NOKIA SONY SONY ERICSSON

RICOH HEWLETT PACKARD ACER

DELL TOSHIBA LG

SAMSUNG MOTOROLA MICROSOFT

31








6. NO. OF SUPPLIERS: Directly from the Warehouse located at Gurgaon through

company owned luggage vehicles.

7. AVERAGE BILLING PER CUSTOMER: Rs. 1500-3000 per customer per month.

8. AVERAGE FOOTFALL: 800-1000 per week.

9. SHOP DISPLAY: JUMBO ELECTRONICS has a mix of various displays. It has an

OPEN WINDOW DISPLAY on the outer side so as to attract the attention of the passers-

by. Inside the store, it has COUNTER DISPLAYS with the impulse- buying merchandise

at the counters. It has also utilized the walls for the display. This type of display is known

as CASCADE/ WATERFALL DISPLAYS.

10. VISUAL MERCHANDISING: The products are divided into various brands. The

products are displayed according to the brand categories.


responsible for a different product in a particular brand.


categorized as:

STAPLES Domestic Appliances.

CONVENIENCE GOODS Mobiles, TV, Digital Cameras.

IMPULSE BUYING GOODS Mobiles accessories, Watches, Calculators



shelves attached to the iron pillars.

14. SOUND TYPE: JUMBO ELECTRONICS uses rock music or any other fast track

musics.

32










16. CRM : Personalized attention to each customer is delivered at the store. The facility

of exchanging the goods, updated information about the new collection through the

personalized SMSs and mailers to the loyal as well as one time purchasers are some of

the CRM practices.

Customer service is supported by the customer database programs that allow the

store to identify which customers purchased what items and when. These systems link

every SKU to the customer’s name and address. This facilitates the store in building the

communication and the upcoming promotions. CRM helps at the POS to gather all the

information about the customer and ensures that his payments are easier too.

17. LOYALTY PROGRAMS: No loyalty programs

18. PRICING: The JUMBO ELECTRONICS sell the product on the MAXIMUM

RETAIL PRICE (MRP) and PRICE BUNDLING. For large value products, it provides

certain discounts.

THE SPACE MIX IN THE RETAIL STORE

33

DIFFERENTIATION FROM THE COMPETITORS: The JUMBO ELECTRONICS is a one stop shop for all the consumer durables at reasonable prices, excellent ambience, good quality and better customer services.
















STAPLES retail outlet in GIP Mall has a mix of GRID CIRCULATION

LAYOUT and FREE FLOW CIRCULATION LAYOUT.

FOOTWEAR SECTOR

34

SPACE MIX IN JUMBO ELECTRONICS

Selling Area60%

Back Area10%

Circulation Area30%

Selling Area

Circulation Area

Back Area

BRAND 4BRAND 3

BRAND 2

BRAND 1

ACCESSORIES COUNTER

COUNTER ENTRANCE

EXIT

BRAND 6

BRAND 5

The Footwear Industry is a significant segment of the Leather Industry in India.

India ranks second among the footwear producing countries next to China. The industry

is labour intensive and is concentrated in the small and cottage industry sectors. While

leather shoes and uppers are concentrated in large scale units, the sandals and Chappals

are produced in the household and cottage sector. India produces more of gents’ footwear

while the world’s major production is in ladies footwear. In the case of Chappals and

sandals, use of non-leather material is prevalent in the domestic market.

The availability of abundant raw material base, large domestic market and the

opportunity to cater to world markets makes India an attractive destination for technology

and investments.

WALK IN M&B

Walk in M&B, the retail project of M&B Footwear (P) Ltd., is one of the

country's most aggressively expanding footwear retail chains. Located at all the premium

shopping destinations including malls and high street, Walk In M&B is a platform for

selling exclusive international and national brands to the fashion and brand conscious

urban customer. It is an effort to bring the world's most sought after footwear brands

under one roof and provide the customers a world class shopping experience. These

lifestyle showrooms are splashed with brand colours and attract the most envious

footfalls everywhere. These stores operate under the retail format of company owned

stores, stand alone franchisee stores and shop-in-shops.

Brands Available: Lee Cooper (Mens), Lee Cooper (Femmes), iD (Footwear and

Spareparts), Geox, Merrell, Provogue, Rider and Firangi

35

STORE AT GIP

BUSINESS MODEL

36


TARGET CUSTOMER: The target customers visiting the store are:

1. Male segment.

2. Fashion and brand conscious urban consumers.

3. Lower Middle class, upper middle class and elite class.


1. FORMAT: MULTIBRANDED RETAIL OUTLET.

2. POSITIONING: Creating a world class experience with one stop shop for all the

brands of the footwear.


4. LOCATION: Ground Floor of GIP Mall.

5. NO. OF SKUs: The products are segregated according to the various brand types. The

total stocks displayed consist of 250 pairs of shoes.

6. NO. OF SUPPLIERS: Directly from the Warehouse located at Gurgaon and through

company owned vehicles. The Warehouse receives the merchandise from the various

brands through the brand’s supply chain.

7. AVERAGE BILLING PER CUSTOMER: In terms of value, average billing is

Rs.2500 (approx.) whereas in terms of quantity it consists of 2 pairs of shoes per

customer.

37

8. AVERAGE FOOTFALL: The average footfall is 80-100 per day. However, on

weekends, the average footfall increases to 400-500 persons

9. SHOP DISPLAY: The Retail Store has a mix of various displays. It has an OPEN

WINDOW DISPLAY on the outer side, with the MANNEQUINS displayed, so as to

attract the attention of the passers-by.

10. VISUAL MERCHANDISING: The products are segregated according to the varius

brands and the products are neatly displayed in pairs. The FOOTWEAR are neatly and

well displayed on the GONDALAS, SLATWALLS and GRID WALLS.


responsible for meeting his/ her sales targets. The employee density is 1 employee per

450 square feet.


categorized as:

STAPLES Office wear, Casual Sports Shoes

CONVENIENCE GOODS Sleepers.

IMPULSE BUYING GOODS Accessories like socks, shoelaces,

shoepolish, etc.



shelves attached to the iron pillars. The fixtures used are GONDOLAS, SLATWALLS

and GRID WALLS.

14. SOUND TYPE: M & B Footwear plays ROCK, JAZZ, ENGLISH, and other

YOUTH suiting music.



38

16. CRM : Personalized attention to each customer is delivered at M&B store. The

facility of exchanging the goods, updated information about the new collection through

the personalized SMSs and mailers to the loyal as well as one time purchasers are some

of the CRM practices.

17. LOYALTY PROGRAMS: Priviledge cards, which provide 10% discount to the

card holders on any kind of purchase they make. It is valid for 2 years.

18. PRICING: M&B sells the product on the MAXIMUM RETAIL PRICE (MRP), of

the various brands, which are fixed. However, in order to gain a competitive advantage

the store uses various PRICE OFF schemes in the form of DISCOUNTS. Ex: It provides

discount Upto 40% Off On MRP. It also offers the scheme of SALE ON FLAT

PRICES.

THE SPACE MIX IN THE RETAIL STORE

SPACE MIX IN M&B

Selling Area60%

Back Area10%

Circulation Area30%

Selling Area

Circulation Area

Back Area


39

STORE ROOM

COUNTER

POSTERS

40

COUNTER

ACCESSORIES

EXIT

ENTRY

SHOES

SHOERACKS

SHOERACK

SHOERACK

SHOE RACKS

BENCHES

BENCHES

BENCHES

Mannequin

RECOMMENDATIONS & SUGGESTIONS

1. More of the “SINGLE-PRICE DENOMINATION” retail stores such as THE

DOLLAR STORE should come up in various malls.

2. In order to increase the number of footfalls, the stores should go for JOINT

PROMOTION, tied up with malls.

3. The retail outlet should develop more innovative CRM practices.

4. The exclusive speciality stores should develop loyalty programmes to increase the

conversion ratio of prospective buyers to the loyal customers.

5. The Retail Store should come up with an innovative technology embedded supply

chain to reduce the operating costs and thereby increase the profit margins.

6. The retail store can provide the value added services such as FREE PARKING

SPACES to their buyers, thus increasing the conversion ratio from prospects into

sales.

7. CROSS SELLING: The retailers could develop the various cross-selling

strategies to gain competitive advantages. Ex: The exclusive apparel retailer can

tie up with footwear stores thereby promoting each others store and hence

increasing the footfall.

41

CONCLUSION

1) Retailers need to think about shoppers not just about a format as understanding the

shoppers’ dynamics holds the key to such a business. Retailers would have to create

new delivery formats that can cater to the huge mass of consumers.

2) Retailers must understand what value shopper is looking for and how the retailers can

deliver that desired value to the customer. However, most retailers look for what they

are offering and how shoppers can fit into retailer’s scheme of offerings.

3) In the long run such strategies may not be viable. Sam Walton and Jack Welch share

a same line of thinking that consumer is the source of competitive advantage and one

of leading UK based retailers Tesco Inc. has shown how understanding consumer can

be a source of redefining business and gaining sustainable advantage.

42

REFERENCES

PRIMARY SOURCES:

1. Mr. Puneet Tyagi, Store Manager, Jumbo Electronics.

Contact No: 0120-4221100

2. Mr. Uday Sharma, Store Manager, Staples.

Contact No.: 0120-4084800

3. Mr. Madhukar, Store Manager, Walk In M&B

Contact No: 0120-4232827

SECONDARY SOURCES:

1. http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-IRHome

2. http://www.jumbocorp.com/corporate.asp

3. http://footwearsinfolinethree.tripod.com/india_footwear.pdf

4. http://www.irs.gov/pub/irs-mssp/retail_industry__102005_final.pdf

5. http://www.investopedia.com/features/industryhandbook/retail.asp

43

http://www.investopedia.com/features/industryhandbook/retail.asp

http://www.irs.gov/pub/irs-mssp/retail_industry__102005_final.pdf

http://footwearsinfolinethree.tripod.com/india_footwear.pdf

http://www.jumbocorp.com/corporate.asp

http://investor.staples.com/phoenix.zhtml?c=96244&p=irol-IRHome

ANNEXURES

A. CONSUMER QUESTIONNAIRE:

Dear Respondent,

Good morning/afternoon.

We are undertaking the research to gather the view of customers towards retail formats.

I would request you to answer a small questionnaire so that we can know your valuable

opinion.

A. Personal Details:1. What is your age group?a. less than 25 b. 25-35 c. 35-44 d. 45 and above

2. What is your occupation?a. Student b. Business-person c. Professionals d. Government Employee

3. What is your monthly household income in Rupees?a. less than 10000 b. 10001 to 25000 c. 25001 to 40000 d. 40001 and above

4. Gender: Male Female

B. RETAIL FORMATS:

1. Please rate the following retail formats that you consider for shopping on a scale

of 1 to 5 ( 1 being the least important and 5 being the most important).

Sr. No.

Parameter 1 2 3 4 5

1 Hypermarket (Big bazaar)

2 Speciality Stores ( Zardozi)

3 Dollar Stores ( My Dollar store)

44

4 Departmental stores ( Pantaloons, Lifestyle)

5 Emporium ( CTC Plaza)

2. Which kind of retail outlet do you prefer for the shopping?

a. Multibranded Retail Outlet b. Exclusive Retail Outlet

c. Both

3. Please rate following parameters that you consider for selecting a store for

shopping on a scale of 1 to 5 (1 being the least important and 5 being the most

important)

Sr. No.

Parameter 1 2 3 4 5

1 More variety 2 Good Quality Product 3 Value for money 4 Accessibility 5 Better Service

4. Does the window / shop display/ mannequins affect your buying behaviour?

a. Yes b. No

5. How do you find the price difference between the Multibrand retail outlet (e.g.

Max) and Exclusive retail outlet (e.g. Ws)?

a. More b. Less

6. Rate on a scale of 1-5, the factors for differentiating a retail outlet from others. (1

being the least important and 5 being the most important)

Sr. No.

Parameter 1 2 3 4 5

1 Service 2 Affordability 3 Store Circulation

plan

4 Internal ambience 5 Sales promotion plan

45

7. Does the mailers / reminder SMSs/ telemarketing, etc, affect your buying

behaviour?

a. Yes b. No

8. Does the CRM practices ( fast billing, credits given) influence your decision

regarding the selection of the shop?

a. Yes b. No

9. Rate on a scale of 1-5, the various sales promotion schemes, on the basis of their

influence on the buying behaviour. (1 being the least important and 5 being the most

important)

Sr. No.

Parameter 1 2 3 4 5

1 Price-offs 2 Free gifts 3 Discounts 4 Contests 5 Exchange offer

10. Are you a loyal customer of a particular store?

a. Yes b. No

Thank you for your support. I would be glad to share the findings of the study if you

so desire.

46

B. RETAILERS QUESTIONNAIRE

1. What is the socio-economic profile of your target customers?

a. Upper Class b. Middle Class c. Lower Class d. Mixed

e. Others specify______________________________________

2. Classify the consumers into the following :

PASSER BY 100%

BROWSER

SPENDER

BIG SPENDER

LOYAL SHOPPER

3. PARAMETERS FOR COMPETITIVE ADVANTAGES:

S.NO. PARAMETERS FOR

COMPETITIVE ADVANTAGE

MULTIBRANDED

RETAIL OUTLET

EXCLUSIVE

RETAIL

OUTLET

1. POSITIONING

2 FLOOR SIZE

3 LOCATION (WHICH FLOOR OF

GIP MALL?)

4 NO. OF SKUs

5 NO. OF SUPPLIERS

6 AV. BILLING / CUSTOMER

47

7 AVERAGE FOOTFALLS

8 TYPE OF DISPLAYS

9 EMPLOYEE NO.

10 MERCHANDISE TYPE

(STAPLES, CONVENIENCE,

IMPULSE BUYING GOODS)

11 FIXTURES

12 SOUND

13 ODOUR

14 VISUAL MERCHANDISING

15 STORE LAYOUT

16 CRM PRACTICES

17 LOYALTY PROGRAM

18 SUPPLY CHAIN PROCESS

19 PRICING

4. SALES PROMOTION AS A TOOL FOR COMPETITIVE ADVANTAGE:

S.NO. PARAMETERS FOR

COMPETITIVE ADVANTAGE

MULTIBRANDED

RETAIL OUTLET

EXCLUSIVE

RETAIL OUTLET

1 END OF SEASON

2 FESTIVE PROMOTIONS

3 LOYALTY CARD PROGRAM

4 SPECIAL PROMOTION

(EVENTS)

5 JOINT PROMOTION

6 MEDIA USED

7 PROMOTION TYPE

8 EVALUATION OF

48

PROMOTION

49

Documents

Study to Analyze the Target Audience and the Competitive Advantages of the Retail Format for Consumer Durable and Footwear Sector in GIP Mall