India Retail Industry

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 Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India
retail industry is the most promising emerging market for investment. In 2007, the retail trade in
India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose
to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$
700 billion by 2010. By the same time, the organized sector will be 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-i

• Consumer Electronics: e-zone

• Shoes: Shoe Factory

• Books, Music & Gifts: Depot

• Health & Beauty Care: Star, Sitara

• E-tailing: Futurebazaar.com

• Entertainment: Bowling Co.

Tata Group

Tata 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 4 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

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.

AV Birla Group

AV 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 India

Hypermarts/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.

• 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%.
ELECTRICAL APPLIANCES GOOD RETAIL

“LIVE LIFE”

My term paper is to open up the retail store of the electrical appliances. The name of my store is

“LIVE WELL”. This store to be contain the number of variety and assortment of the electrical

goods. My retail store “LIVE WELL” to be contain the CFL tubes , usha fans , bajaj fans ,

philips tubes , sylvania tubes , all types of circuits , crompton fans nd white tubes etc .

Business Mission

“LIVE WELL” mission statement is to focus on bringing high quality electrical goods and

services to the market at the lowest possible prices every day. The mission statement is well understood

throughout the organization. LIVE WELL offers their customers with low prices on selected private and a

limited selection of nationally branded products in a wide range of merchandise categories. Rapid

inventory turnover, high sales volume per warehouse, leveraging an efficient operating structure, reduced

handling of merchandise, and making themselves the low cost operator in retail are all key elements that

make the retail store so successful. LIVE WELL defines its business in terms of benefiting their

customers. In addition to offering low prices on top-quality goods and a variety of convenient services.

(a) Type of retail format and ownership (Variety and assortment decisions regarding products or services
to be offered);

I am opening these electrical goods retail on my own in Kanpur city, Uttar Pradesh.

Electrical Goods Store Menu

TUBES
 Basically the best quality tubes are philips , crompton , surya . All these different brands
are kept in my store . Basically 40 walt tubes are demanded by the customers nd very less
quantity of 20 walt tubes are demanded by the customers . So these particular brands are kept in
my store .

FANS
Fans are required in the summer season . There are different brands of fans . But
most popular brands are khaitan , bajaj , usha etc . The quality of these brands is very good .
There is hardly any complaint ragarding these brands .

BULBS
Today people don’t like yellow light bulbs . At present people like white light bulbs . The
best quality brand for white light bulbs is crompton . crompton provides 2 year gauranty . The
light of crompton bulbs is very goods . At night people like colored zero walt bulbs .
.
SWITCHES
The best quality in switches are anchor nd havell . There are various varieties in
switches . Like two pin plugs , three pin plugs , bed switches , multi-plugs , extension etc .

FANCY LIGHTS
Today people like to have fancy lights in there houses . They use different fancy lights for
decorating their houses . Different types of lighting stands are there .

WIRES
WIRES OF HAWELL BRAND ARE KEPT IN THE STORE .

HEATERS

Heaters are required in the winter season . Usha nd apsara are two major brands .
MULTI CHANNEL DECISIONS
LIVE WELL retail ELECTRICAL retail to use the multi channel , These channel were used for selling
the electrical good . By using a combination of channels to be provided unique benefits to my electrical
retail store by attract and satisfy more customers. My electrical retail use all three channels to interact
with its customers. These are following

1. STORE CHANNEL
It is provide the browsing to the customers before purchasing of products It is also provided touching and
feeling products opportunity to the customer

Store channel to given advantage for the customer to get the product immediately after they buy it.

2. CATALOG

Our electrical retail is also provided the Catalog channel; offer the convenience of looking at product and
placing an order on any day at any time from almost anywhere

We are also provided the photographs of electrical goods in catalogs, while not as useful as in store
presentations, are superior to the visual information that can be displayed on a CRT screen.

3. INTERNET CHANNEL

Our electrical retail provides the information to customer about which the electrical good are available in
our retail store. These Internet channels also contain the all information about electrical good price. The
benefit of Internet channel as compared with the other two channels is the vast number of consumers to
purchase the product easily.
Retail market strategy to be followed and preparation of Strategic
Retail planning;

Retail market strategy is a statement identifying (1) the retailer’s target market (2) the format the retailer
plans to use to satisfy the target market’s need and (3) the vases upon which the retailer plans to build a
sustainable competitive advantage.

Our electrical retail will be containing the strong brand electrical product for the customers. It will be
developing clear and price positioning strategies and creating an emotional attachment with customers
through loyalty programs.

We also will be using the retail mix to create an image of the retailer in the customer’s mind relative to its
competitors. Stores will be offering fine quality electrical goods at competitive prices

CUSTOMER BUYING BEHAVIOR

Consumer behavior is the study of how consumer makes make decision to use their respective resources
such As timed ‘money and effort for buying, using and disposing goods and services. The behavior of
humans as consumer is complex buying behavior will help them. to serve their customers effectively and

efficiently and attract new customer’s .

The most challenging concept in marketing deals with understanding why buyers do what they do (or
don’t do). But such knowledge is critical for marketers since having a strong understanding of buyer
behaviours will help shed light on what is important to the customer and also suggest the important
influences on customer decision-making. Using this information, marketers can create marketing
programs that they believe will be of interest to customers.

Buyer behaviour is deeply rooted in psychology with dashes of sociology thrown in just to make
things more interesting. Since every person in the world is different, it is impossible to have simple
rules that explain how buying decisions are made. But those who have spent many years analyzing
customer activity have presented us with useful “guidelines” in how someone decides whether or not
to make a purchase.

The perspective we take is to touch on just the basic concepts that appear to be commonly accepted
as influencing customer behaviour. We will devote two sections of the Principles of Marketing
Tutorials to customer behaviour. In this section we will examine the buying behaviour of consumers
(i.e., when people buy for personal reasons) while in the Business Buying Behaviour tutorial we will
examine factors that influence buyer’s decisions in the business market.

RETAIL FORMAT
In which I have included the different strategies which lead our business and
used different competitive promotional planned which make our retail store attractive and
effective. And these should be done according to these points;

 Nature of merchandise and services offered

 Pricing policy
  Advertising and promotion programs
 Store design and visual merchandising
 Customer services

LOCATION

Location of retail store is important aspect as customer point of view because location
is the critical factor in consumer selection of store and whenever we opened a retail store than we have
assumed the different factor which showed our retail store features like as:

 Demographic features(to know about the potential customer in that area, metropolitan statistical
area)
 Competition(to know about the competitors and how they far from my retail store)
 Strategic fit(to must know about the life style of potential customer)
 Operating cost(different area have different cost)
 No. of small shops in that area
 Economy of scale

We are choosing a city or state to locate our retail store, research the area thoroughly before making
a final decision. Read local papers and speak to other small businesses in the area. Obtain location
demographics from the local library, chamber of commerce or the Census Bureau. Any of these
sources should have information on the area' population, income and age. And make sure we find a
location where our customers live, work and shop.

 Accessibility, Visibility and Traffic

Don't confuse a lot of traffic for a lot of customers. Retailers want to be located where there are many
shoppers but only if that shopper meets the definition of their target market. Small retail stores may
benefit from the traffic of nearby larger stores.
 • How many people walk or drive past the location.
• Is the area served by public transportation?
• Can customers and delivery trucks easily get in and out of the parking lot?
• Is there adequate parking?

Depending on the type of business, it would be wise to have somewhere between 5 to 8 parking
spaces per 1,000 square feet of retail space. When we considering visibility, look at the location from
the customer's view point. Can the store be seen from the main flow of traffic? Will your sign be
easily seen? In many cases, the better visibility your retail store has, the less advertising needed.
According to the survey A specialty retail store located six miles out of town in a free standing
building will need more marketing than a shopping store located in a mall.

HUMAN RESOURCE MANAGEMENT

Retailing is a labor-intensive business and Knowledgeable and skilled employees committed to the
retailer's objectives are critical assets that support the success of the business. And it should be done by
following steps:

 Retail market & financial

 Retail site location
 Customer relationship management (CRM)
 Information & Distribution system

SUPPLY CHAIN MANAGEMENT

In which I have included the pattern of flow of my product, services and information through
supplier to customer.

 Supplier
 Factory
 Warehouse
 Retailer
 Customer

INFORMATION SYSTEM:-
 Information system is the important factor in current scenario in retail store because it just gave the
information about the product which you sold in your retail store. The system builds efficiencies into
ordering, distribution and merchandising processes and is designed to provide timely, accurate sales
information on an item-by-item basis. And retail information system includes;

 Touch-screen point-of-sale (POS) cash registers with scanners,

 The integration of credit-card authorization
 Item-level information to assist in making product-ordering decisions,
 Hand-held Mobile Ordering Terminals to facilitate ordering,

Store personnel determine appropriate product assortment and slow-moving items

Merchandise Management System:

The order received from a vendor are kept in container and the inventory is raised whereas sale of each
SKU to customer decreases the level of inventory. Therefore there is need to keep a record of total orders
received and sale of SKU. There is a need to manage the merchandise so as to keep minimum level of
stock which should be there all the time in store, Inventory for Re-order and the time to which an order
with vendor is to be placed so as to run business efficiently.

Inventory management report:

There is need to maintain this report so as to know the Level of Sales to do the forecast of sales for the
next year, Amount of inventory available so as to know quantity of re-order, product which are available
in the store. This report is prepared to have a record for current year and recognize the deviations from the
set standards and to make forecast for future years. This report will have information about the SKU
which have been most sold during that period according to month, season.

Buying Merchandise:

The store will have a mix of Private and National-label brand so as to give both the quality and
compatibility to customers. National brands are kept in stores so as to create an image in the mind of
customers about quality that has been offered in stores where as private brands are kept because the target
group of customers are people who are very price conscious and can compromise quality for cost
moreover Private-label Brands have strong margins for retailer.

Planning the retail communication program

The objective for communication program is to provide direction to people implementing the program
about the long term objective and what effect will it have in creating brand image and other is to provide
basis for evaluating its effectiveness. The objective for planning retail communication mix for the store is
to create a store image among consumers such that whenever they have need for and home ware
appliances the top-of-their-mind is our store and the amount of assortment which are being offered to
customers here and they have favorable attitude coming into store.

Next part of planning retail communication mix is to develop a budget, so as to make resource allocation
decisions, allocation of merchandise to stores, staffing stores and floor and shelf space devoted to
merchandise categories and to determine all these things correctly MARGINAL ANALYSIS METHOD
is best which states that a store should increase communication expenditure as long as each additional
rupee spent should generate more than a rupee. The strategy is to increase the expenditure so as to create
brand image among customers, build brand uniqueness, and sustain that brand name of store unless it is
giving in return more than the expense incurred on communication program.

Setting the Promotion Mix

When we deciding how to properly utilize the marketing communications mix to meet our marketing
objectives, it is important to consider the relative strengths and weaknesses of each component of the
mix. Further, we must always define our total budget first (generally defined in the Marketing and/or
Business Plan) and then decide upon the best way to leverage the different elements of the mix to
maximize the return on our investment. We will balance the various parts of the mix to not only
create an integrated approach to our marketing communications but we must also devote enough
resources for each component to be successful.

Advertising

Reaches large, geographically dispersed audiences, often with high frequency; Low cost per
exposure, though overall costs are high; Consumers perceive advertised goods as more
legitimate; Dramatizes company/brand; Builds brand image; may stimulate short-term sales;
Impersonal, one-way communication; Expensive

Personal selling
Most effective tool for building buyers’ preferences, convictions, and actions; Personal
interaction allows for feedback and adjustments; Relationship-oriented; Buyers are more
attentive; Sales force represents a long-term commitment; Most expensive of the promotional
tools

Sale Promtion

May be targeted at the trade or ultimate consumer; Makes use of a variety of formats: premiums,
coupons, contests, etc.; Attracts attention, offers strong purchase incentives, dramatizes offers,
boosts sagging sales; Stimulates quick response; Short-lived; Not effective at building long-term
brand preferences

Public Relation

Highly credible; Very believable; Many forms: news stories, news features, events and
sponsorships, etc.; Reaches many prospects missed via other forms of promotion; Dramatizes
company or product; Often the most under used element in the promotional mix; Relatively
inexpensive (certainly not 'free' as many people think--there are costs involved)

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four distinctive
characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to highly-
targeted Direct Marketing

Visual merchandising

Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find
attractive and appealing and it should follow and reflect the principles that underpin the store’s image.
Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end
purpose of making a sale. "If it does not sell, it is not visual merchandising

Especially in today’s challenging economy, people may avoid designers/ visual merchandisers because
they fear unmanageable costs. But in reality, visual merchandisers can help economise by avoiding costly
mistakes. With guidance of a professional, retailer can eliminate errors, saving time and money. It is
important to understand that the visual merchandiser is there, not to impose ideas, but to help clients
articulate their own personal style
Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales
volume. VM is an art and science of displaying merchandise to enable maximum sale. VM is a tool to
achieve sales and targets, a tool to enhance merchandise on the floor, and a mechanism to communicate to
a customer and influence his decision to buy. VM uses season based displays to introduce new arrivals to
customers, and thus increase conversions through a planned and systematic approach by displaying stocks
available.

Customer Relationship Management

CRM stands for Customer Relationship Management. It is a process or methodology used to learn
more about customers' needs and behaviors in order to develop stronger relationships with them. There
are many technological components to CRM, but thinking about CRM in primarily technological terms is
a mistake. The more useful way to think about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

CRM helps businesses use technology and human resources to gain insight into the behavior of
customers and the value of those customers.

Conclusion

While companies like next and crome have been working to support socially responsible
electricals, , as a whole, must become involved if it wants to save thiselectricals industry
.America has begun to recognize that problems like short circuit, heatin of wire relate to those
working on “A recent study by the Guatemalan Commission for the Verification of Corporate
Codes of Conduct found half the workers on fences in that country earning less than $3 per day.

Live life helps clients reach a new tier of high performance through an innovative balance of
customer satisfaction, low costs and improved efficiency. Leading electricals companies display
an obsession with customer satisfaction that must be balanced against keeping costs low, while
always striving to improve efficiency. Life live has a vast amount of expertise in systems
development that allows it to integrate these obsessions and enable to deliver customer-centric
service and reach new heights of performance Our dynamic experience and research, aided by
innovative technology, ensure a track record of improved business processes and competitive
positions for our clients. Clients can expect a wealth of expertise .

References:

INTERNET
www.thecontractoroffice.com/are-you-an-electrician-an-electrical-contractor

www.crmelectrical.co

www.pastplaces.com/Next-Appliances-Cashback-Shopping-973.aspx

www.alertelectrical.com

www.hcltech.com/.../planning-merchandising-demand-intelligence

www.dimensionicad.com/india/retail-design-solutions.html

www.indianretailer.com/indianretailer0707/visualstrategy

www.flipkart.com/retail-management

BOOKS:

LEVY.M,(RETAIL MANAGEMENT)

OTHER WEB MATERIALS

GOOGLE

WIKIPEDIA

INVESTOPEDIA