INTRODUCTION Retailing industry occupies a prominent segment in any economy both in terms of GDP contribution and share in total

employment. It is contribute 10% of total In dian GDP. Indian retail sector is divided into two sector organized and unorgani zed. Organized retailers are the licensed retailers who pay sales tax, income ta x but in India only 2% are organized retailer and 98% is unorganized. Retail has been acknowledged as one of the major employment sources all over India and the number of potential opportunities in the sector is on the rise. Many changes ha ve been occurred in the field of retailing and hence marketing functions too hav e been experiencing dramatic changes across the world by virtue of the unrelenti ng wave of globalization sweeping across the world. The project explain the curr ent retail scenario of India and growth of different retail sector and about the major retail players of India. The project will Also describe the opportunities and challenges of Indian retail sector. 1

 A.OBJECTIVE OF THE STUDY o To know the past and current scenario of organized retail sector in India. o T o know strengths, weakness, opportunities and, threats to retail sector in India . o To know about the major retail players and their future. o To understand the future growth of retail sector and their contribution in the country . o Scope of investment in retail market. 2

 B. RETAILING Retailing is the interface between the producer and the individual consumer buyi ng for personal consumption. This excludes direct interface between the manufact urer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producers goods and is involved in the act of sel ling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. The retail industry in India is of late often being hailed a s one of the sunrise sectors in the economy. AT Kearney, the well-known internat ional management consultancy, recently identified India as the second most attrac tive retail destination globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of many foreign ey es. With a contribution of 14% to the national GDP and employing 7% of the total workforce (only agriculture employs more) in the country, the retail industry i s definitely one of the pillars of the Indian economy The retail scenario is one of the fastest growing industries in India over the last couple of years. India retail sector comprises of organized retail and unorganized retail sector. Trad itionally the retail market in India was largely unorganized; however with chang ing consumer preferences, organized retail is gradually becoming popular. Unorga nized retailing consists of small and medium grocery store, medicine stores, sub zi mandi, 3

 kirana stores, paan shops etc. More than 90% of retailing in India fall into the unorganized sector, the organized sector is largely concentrated in big cities. Organized retail in India is expected to grow 25-30 per cent yearly and is expe cted to increase from Rs35, 000 cr. in 2004-05 to Rs109, 000 cr. ($24 billion) b y 2010. Manufacturer Retailers Customers Distributors/Wholesalers

Retailing involves selling or family use. Department e Wal-Mart and K-Mart, and s R Us, are all examples otels and hair salons, and

products and services to consumers for their personal stores, like Burdines and Macy s, discount stores lik specialty stores like The Gap, Zales Jewelers and Toy of retail stores. Service providers, like dentists, h on-line stores, like Amazon.com, are also retailers.

 B.1 Importance of Retailing As the final link between consumers and manufacturers, retailers are a vital par t of the business world. It would be very costly and time consuming for you to l ocate, contact and make a purchase from the manufacturer. Similarly, it would be very costly for the manufactures of these products to locate and distribute the m to consumers individually. By bringing multitudes of manufacturers and consume rs together at a single point, retailers make it possible for products to be sol d, and, consequently, business to be done. Retailers also provide services that make it less risky and more fun to buy prod ucts. They have salespeople on hand who can answer questions, may offer credit, and display products so that consumers know what is available and can see it bef ore buying. In addition, retailers may provide many extra services, from persona l shopping to gift wrapping to delivery, that increase the value of products and services to consumers. According to the National retail federation, 1 in 5 American workers are employe d in the retail industry. The Department of Labor estimates that since 1990, 700 ,000 new jobs have been created in the retail sector. That s 13% of all new jobs in the United States. 5

 B.2 Traditional Retailing of India India is the country having the most unorganized retail market. Traditionally th e retail business is run by Mom & Pop having Shop in the front & house at the ba ck. More than 99% retailers function in less than 500Sq.Ft of area. All the merc handise was purchased as per the test & vim and fancies of the proprietor also t he pricing was done on ad hock basis or by seeing at the face of customer. Gener ally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or consumed in-house. Thus profits were vanished without their knowledge. The Manu factures were to distribute goods through C & F agents to Distributors & Wholesa lers. Retailers happen to source the merchandise from Wholesalers & reach to end -users. The merchandise price used to get inflated to a great extent till it rea ches from Manufacturer to End-user. Selling prices were largely not controlled b y Manufacturers. Branding was not an issue for majority of customers. More than 99% customers are price sensitive & not quality or Brand Sensitive at the same t ime they are Brand conscious also. Weekly Bazaar in many small tows was held & a lmost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Whol esalers. Virtually there was only one format of retailing & that was mass retail . Retailer to consumer ratio was very low, for all the categories without except ion. Varity in terms of quality, Styles were on regional basis, community based & truly very low 6

 range was available at any given single place. Almost all the purchases / (buyin g) by mass population was need oriented & next turn may be on festivals, Marriag es, Birthdays & some specific occasions . Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports we ar & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels , Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home applian ces do hold appropriate image into the minds of consumers. Brand name does matte r in these white goods categories. In the coming times also majority of organize d retailers will find it difficult to keep balance with rest of the unbranded re tail market which is very huge. 7

 B.3Quick facts of Indian Retail Indian Retail sector is the fifth largest global retail destination. India retai l market is dominated by the unorganized sector. The top five companies in retai l hold a combined market share of less than 2%. The Indian retail market has bee n ranked by AT Kearney s eighth annual Global Retail Development Index (GRDI), i n 2009 as the most attractive emerging market for investment in the retail secto r. Currently the share of retail trade in India s GDP is around 12 per cent, and is estimated to reach 22 per cent by 2010. According to Government of India est imate the retail sector is likely to grow to a value of Rs. 2,00,000 cr. (US$45 billion) and could yield 10 to 15 million retail jobs in the coming five years; currently this industry employs 8% of the working population. India continues to be among the most attractive countries for global retailers. According to the D epartment of Industrial Policy and Promotion, approximately US$ 47.43 million wa s the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand retail trading. More than 80% of the retail sector in the country i s concentrated in the large cities. A study reveals that among the more than 20 locations, for organized retail in India, Mumbai was found to be the most prefer red location followed closely by Bengaluru in the second position. 8

 B.4 Industry analysis of Indian Retail sector Modern retailing has entered India in form of malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment wit h a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats m ostly due to the convenience factor i.e. near to their house. This organized seg ment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It s no longer abou t just stocking and selling but about efficient supply chain management, develop ing vendor relationship quality customer service, efficient merchandising and ev en the labour class is also in the working process timely promotional campaigns. The modern retail formats are encouraging development of well-established and e fficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient colle ction of tax revenues. Network marketing has been growing quite fast and has a f ew large players today. Gas stations are seeing action in the form of convenienc e stores, ATMs, food courts and pharmacies appearing in many outlets. In the com ing years it can be said that the hypermarket route will emerge as the most pref erred format for international retailers stepping into the country. Estimates in dicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years. 9

 Traditionally, the kirana retailing has been one of the easiest ways to generate self-employment, as it required minimum investment in terms of land, labour and capital. These store are not affected by the modern format of retailing. In ord er to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh pro duce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory pr oducts and convenience and health foods, which are generally not found in the lo cal kirana stores. Looking at the vast opportunity in this sector, big players l ike Reliance has announced its plans to become the country s largest modern reta iners by establishing a chain of stores across all major cities. However, retail ers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India . 10

 B.5 Present Indian Retail scenario Unorganized market: Rs. 583,000 cores. Organized market: Rs.5, 000 cores 5X grow th in organized retailing between 2000-2005 Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 m odern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppe rs walk through their doors every week Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 India has highest number of outlets p er 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 t he world 1.8 million households in India have an annual income of over 45 lakes (US$97,650) 11

 A. UNORGANISED RETAIL IN INDIA Retail in India is essentially unorganized. 98% of the retail industry is made up of counter-stores, streetmarkes, hole-in-the-wall shops and roadside peddlers. T he term unorganized retail is better understood when comparing this form of retail to the organized retail that one is familiar with in developed countries. Unorg anized retail is characterized by: 1) Family-run stores 2) Lack of best practice s when it comes to inventory control and supplychain management 3) Lack of stand ardization 4) Essentially a sector populated by anyone who has something to sell Unorganized Retail is essentially the next-step above agriculture for those see king to climb the ladder of affluence in search of a higher income. Combine this with very few barriers to entry in the retail sector andone gets an industry ru n by people commonly referred to as Baniyas(See exhibit), with a lack of education , experience and exposure. This is the major factor responsible for the manner i n which the retail industry functions. It is no surprise then that the productiv ity of this sector is approximately 4% that of the U.S. retail industry. 12

 A.1 Causes of Low Productivity in Unorganized Retail 1) Labor intensity: Counter-stores in India have a very low output to labor cons umption ratio. Low labor costs, failure to employ part-time labor and the absenc e of multitasking are the mainly responsible for the unusually high consumption of labor. This has driven down the productivity in the sector. 2) Inventory and Supply Chain Management: Unorganized retailers in India rarely track consumer be havior and sales data to improve their inventory management practices. Even amon g the handful of retailers that employ experience-based improvements in their bu siness, their efforts are largely met with no support from their suppliers. Coun ter stores and street vendors do not have the infrastructure, exposure or credib ility to form lasting relationships with suppliers. As a result retailers usuall y use different suppliers every time they purchase inventory. This leaves them l argely incapable of strategically managing their business. 3) With 700 million a gricultural labor18 looking to move into retail, low barriers to entry and the a bsence of regulation in this sector have made it a largely over-supplied sector. The excess supply of counter-stores and street vendors represents a tremendous decrease in the productivity of this sector. 13

 4) The absence of any real competition-almost all retailers find a way to make e nds meet or change their merchandise till they make ends meet-is also responsibl e for a form of status quo in the sector where little to no improvements in effi ciency, management and by extension productivity are seen. In fact, this sector is so stagnant with respect to operational changes that no improvement in produc tivity is expected in the near future. A.2 Low Productivity, but Still Successful: However, low productivity is only an indication of underutilization and/or over allocation of resources. It does not reflect the market share or potential of the unorganized retail sector when it comes to catering to the Indian consumer. The unorganized retail sector competes on the basis of a number of factors that give it a leg up on organized retail. Much of the reason why unorganized retail has dominated the retail market is the unique ways in which it operates when it comes to serving the consumer. Cornerstores have catered to the traditional Indian consumer psyche and are partially responsible for shaping it. For unorganized retail in India the market mantra is convenience: 1) Home-Delivery: Corner-stores and street vendors do their best to cater to the local population in the area in which they operate. As a result mos t 14

 of them provide home-delivery services, for any and all order sizes, at no extra charge. Shopping is as simple as making a phone call and narrating the shopping list to the store owner. Within minutes, the entire list of groceries with an i temized, hand-written bill reaches your doorstep. The absence of product variety , brand diversity, marketing and exposure had made shopping in stores almost unn ecessary for the Indian consumer. Retailers unconstrained by labor costs had no problem in understanding this dynamic and adapting to the needs of the Indian co nsumer. 2) Credit: Unorganized retailers enjoy a loyal and limited clientele. The person al nature of transactions coupled with small transaction sizes allows unorganize d retailers to sell goods on credit often settling bills with clients at the end of the month. 3) Proximity: Unorganized retailers like corner stores are almost always located at a few minutes walking distance from their clients. Street ven dors will go door-to-door selling their goods. This has provided a number of adv antages to the Indian consumer. He receives his purchase almost immediately than ks to the home-delivery of goods, he never has to move more than half a mile fro m his house to purchase food, clothing and other goods. Finally, the proximity o f unorganized retailers caters to the just-in-time mentality of Indian consumers who prefer to buy goods when needed for immediate use rather than making bulk p urchases in advance. 15

 Unorganisedre etail:sec ctorwise ebreaku up 23% 2% % 3% % food& &groceries beaut tycare cloth&textile consu umerdurables jewellery&watches s edcor&furnising other rs 60% 4% 4 4% 4% Fig.1 F Shows unor S rganized re etail sector wise brea up. r ak 16

 Growth of unorganiz retail sector in I G zed India 2010 Go owthin2010 30% 14% 3% 10% food&groceri f ies Beautycare 20% Cloth&Textile C e Consumerdurable C 40% % Jewellery J Homedcor Fig.2 F Shows the growth of unorganiz retail s S f zed sector 2010 0. 17

 B. ORGANISED RETAILING IN INDIA In late 1990 s the retail sector has witnessed a level of transformation. Retail ing is being perceived as a beginner and as an attractive commercial business fo r organized business i.e. the pure retailer is starting to emerge now. Organized retail business in India is very small but has tremendous scope. The total in 2 005 stood at $225 billion, accounting for about 11% of GDP. In this total market , the organized retail accounts for only $8 billion of total revenue. According to A T Kearney, the organized retailing is expected to be more than $23 billion revenue by 2010. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is ex pected to be $ 17 billion 2010-11. Retailing will show good prospects in cities like Mumbai, Delhi, Chennai, kolkata, Banglore and Kanpur. After Dubai, Singapor e and Hong Kong, In India Delhi will be the next big retail destination, Accordi ng to Confederation of Indian Industries whose findings have shown that Delhi ha s the good resources and good conditions for the retail sector. Out of the total earnings of the Government of Delhi Rs 11,000 crore, Rs 6,500 crore is achieved from the retail sector. . 18

 Organise O edretailing:sect torwiseberaku up 2% 5% 8% 3% 1% 22% Footwear22% Clothing12 2% Book&ma agazines9% Jewellery& &assessory8% % Durable5% 9% 12 2% Homefurn nishing3% Medicalse ervices2% Food&gro ocery1% Health&b beauty1% Fig.3 F Shows orga S anized retail sector w break u wise up. 19

 Sect torwiseCAGRg growth:o organised e retailing 80.00% 8 70.00% 7 60.00% 6 50.00% 5 40.00% 4 30.00% 3 20.00% 2 10.00% 1 0.00% Se ctorwiseCAGRgrowth: etailing organisedre Fig.4 F Shows secto wise CA S or AGR grow wth. 20

 Growth of Organize retail in India 2010 G ed n Growthin2010 6.40% 9.90% 2.90% 3% 11.50% Foo otwear Clot thing Boo ok&Magazine e 38.10% Jew wellary&assessary Dur rabl e Hom meFurnishing Fig.5 F Shows the growth of organized retail sect 2010 S g d tor . 21

 C.AUTHORISED VS UNAUTHORISED RETAILING Many consumers are confused about the terms "authorized" and "unauthorized" reta ilers. Partly due to the efforts of manufacturers, who discourage unauthorized r etailers, consumers may be reluctant to purchase legitimate products from an una uthorized retailer who is offering a genuine product. What is an "authorized" re tailer? An authorized retailer has a contractual relationship with a big manufac turer. This benefits both the retailer and the manufacturer. Big corporations li ke to have as much oversight over their marketing as possible, because more cont rol means bigger profits. They like to operate vertically-that is, with direct c ontrol over everything from research to manufacturing to retail sales. This make s it easier to keep retail prices high and generate bigger profits. Big companie s want customers to buy from their authorized dealers because they make a bigger profit. However, many retailers operate outside the corporate system. Why? To o ffer lower prices. The unauthorized retailer can often purchase and then re-sell products at a lower price than the authorized retailer. Generally, the unauthor ized retailer can do this by obtaining genuine products overseas and bringing th em back to the U.S. for sale. 22

 Who does this? Surprisingly, not just Internet or regional operations; even some big-box names like Costco, Amazon, and Target have engaged in unauthorized reta iling. Is this legal? Yes! In the case of Quality King Distributors v. L Anza Re search International, No. 96-1470, the Supreme Court held unanimously that an Am erican company cannot block the domestic sale of genuine products that the compa ny had originally sold overseas. The Court ruled that once a product had been di stributed in an authorized manner (the "first sale," according to Federal copyri ght law), the copyright owner had no further control over the product s fate. Th e Supreme Court s decision overturned a lower court case establishing copyright law as a defense against unauthorized retailers. In 1996 the United States Court of Appeals for the Ninth Circuit, in San Francisco, had ruled that a distributo r of genuine beauty products had infringed the copyright on a brand of hair prod ucts manufactured in the United States for sale at a discount overseas. In the U .S. market, the products were intended for exclusive sale in salons. The Supreme Court ruling supports free trade that benefits American consumers. The products in question are authentic American-made goods, not counterfeit or pirated. Trad emark law was not at issue in this case because the challenged products were leg itimate products authorized by 23

 the manufacturer for sale. So big corporations sought to use copyright law as a source of protection. How does the consumer benefit? Simple-lower prices! Becaus e unauthorized retailers are free to purchase genuine products from a variety of sources-not just from the manufacturers-they can offer lower prices than other stores. So if you know you are buying a genuine product, you may be able to get a great deal from an unauthorized retailer. 24

 D. DEVELOPMENT OF RETAIL Peddlers and Producers The Retail Trade is rooted in two groups, the peddlers an d producers. Peddlers tended to be opportunistic in their choice of stock and cu stomer. They would purchase any goods that they thought they could sell for a pr ofit. Producers were interested in selling goods that they had produced. General Store: This division continues to this day with some shops specializing in spec ific areas, reflecting their origins as outlets for producers (such as Pacific C oncord of Hong Kong), and others providing a broad mix, known as General Store ( such as Casey s in the Midwest of the U.S.A.).Although specialist shops are stil l with us, over time, the general store has increasingly taken on specialist pro ducts. Customers have found this to be more convenient than having to visit many shops - thus the term "Convenience Store" has also been applied to these shops. As the popularity of general stores has grown, so has their size. This combined with the advent of Self-Service has lead to the Supermarket, or Superstore. Ear ly Markets: Over time, producers would have seen value in deliberately overprodu cing in order to profit from selling these goods. Merchants would also have begu n to appear. They would travel from village to village, 25

 purchasing these goods and selling them for a profit. Over time, both producers and merchants, would regularly take their goods to one selling place in the cent re of the community. Thus, regular markets appeared. The First Shop : Eventually , markets would become permanent fixtures i.e. shops. These shops along with the logistics required to get the goods to them were, the start of the Retail Trade . The Birth of Distance Retailing: Defined as sales of goods between two distant parties where the deliverer has no direct interest in the transaction, the earl iest instances of distance retailing probably coincided with the first regular d elivery or postal services. Such services would have started in earnest once man had learned how to ride a camel, horse etc. When individuals or groups left the ir community and settled elsewhere, some missed foodstuffs and other goods that were only available in their birthplace. They arranged for some of these goods t o be sent to them. Others in their newly adopted community enjoyed these goods a nd demand grew. Similarly, new settlers discovered goods in their new surroundin gs that they dispatched back to their birthplace, and once again, demand grew. T his soon turned into a regular trade. Although such trading routes expanded main ly through the growth of traveling salesmen and then wholesalers, there were sti ll instances where individuals purchased goods at long distance for their own us e. A second reason that distance selling increased was through war. As armies ma rched through territories, they laid down communication lines stretching from th eir home base to the front. As well as garnering 26

 goods from whichever locality they found themselves in, they would have also tak en advantage of the lines of communication to order goods from home. It is likel y that, as markets became more permanent fixtures they evolved into shops. Altho ugh advantageous in many respects, this removed the mobility that a peddler or t raveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers and create new business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail chain would have started. Its thought that this proce ss would have started in china over 2200 years ago with a chain of shops owned b y a trader called Lo Kass. The First Self-Service Store: This all changed in 191 5 when Albert Gerrard opened the Groceteria in Los Angeles, the first documented self-service store. This was soon followed a year later by the Piggly Wiggly sel f-service store, founded by Clarence Saunders in Tennessee in the U.S. Growth: T his new type of shopping was more efficient and many customers preferred it. Alt hough personal service stores remain to this day, this new concept started a rap id growth of self-service stores in the United States. 27

 Other countries were slow to take up the idea, but there has been a steady rise in the global amount of self-service stores ever since .Efficiency These entrepr eneurs noticed that their staff had to spend a great deal of time taking grocery orders from customers. The groceries were stacked on shelves allowing customers to walk around and browse, collecting their shopping in a basket that was suppl ied. The shopkeeper would only need to tot up the final bill at the end of the p rocess and transfer the goods from the basket to the customer and receive paymen t. From Family Business to Formal Structure: Although retail chains would have b een mostly run by families, as some chains grew, they would have needed to emplo y people from outside of their family. This was a limiting factor as there would have been a limit to the amount of trusted non family members available to help run the chain. Another, even more definite limiting factor was the distance the furthest shop would have been from the original shop. The greater the distance, the more time and effort would have been needed to effectively manage outpost s hops and to service them with goods. There was, therefore, a natural barrier to expansion. That was the case until transport and communications became faster an d more reliable. When this happened towards the end of the 19th century, chains became much bigger and more widespread. Many of these businesses became more str uctured and formalized, leading to the retail chain that we see today. 28

 It is likely that, as markets became more permanent fixtures they evolved into s hops. Although advantageous in many respects, this removed the mobility that a p eddler or traveling merchant may still have enjoyed. For some shopkeepers, it ma de sense to obtain extra stock and open up another shop, most probably operated by another family member. This would recover business from peddlers and create n ew business and the greater volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail chain would have started. Its thought that this process would have started in china over 2200 years ago with a chain of sh ops owned by a trader called Lo Kass. 29

 E. CLASSIFICATION OF INDIAN RETAIL SECTOR a) FOOD RETAILERS There are large number and variety of retailers in the food-re tailing sector. Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector .In comparison, supe r markets account for a small proportion of food sales in India. However the gro wth rate of super market sales has being significant in recent years because gre ater numbers of higher income Indians prefer to shop at super markets due to hig her standards of hygiene and attractive ambience. b) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started s pending more on health and beauty products .Here also small, single-outlet retai lers dominate the market. However in recent years, a few retail chains specializ ing in these products have come into the market. Although these retail chains ac count 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 bu yers for these products . c) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlet s stock a limited range of cheap 30

 and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid urbaniza tion, and changing patterns time. d) HOME FURNITURE & HOUSEHOLD GOODS Small reta ilers again dominate this sector. Despite the large size of this market, very fe w large and modern retailers have established specialized stores for these produ cts. However there is considerable potential for the entry or expansion of speci alized retail chains in the country. e) DURABLE GOODS The Indian durable goods s ector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and househ old appliances became available to the Indian customer. Intense competition amon g companies to sell their brands provided a strong impetus to the growth for ret ailers doing business in this sector. f) LEISURE & PERSONAL GOODS Increasing hou sehold incomes due to better economic opportunities have encouraged consumer exp enditure on leisure and personal goods in the country. of consumer tastes and pr eferences, it is unlikely that the traditional outlets will survive the test of 31

 F. INVESTMENT POLICY AND INITIATIVES F.1.FDI Policy in the Retail Sector India has kept the retail sector largely closed to outsiders to safeguard the li velihood of nearly 15 million small storeowners and only allows 51 per cent fore ign investment in single brand retail with prior Government permission. FDI is a lso allowed in the wholesale business. Single-brand retailers such as Louis Vuit ton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is alrea dy operating through the cashand-carry wholesale mode. The policy makers continu e to explore areas where FDI can be invited without hurting the interest of loca l retail community. Government is considering opening up of the retail trading f or select sectors such as electronic goods, stationery, sports goods, and buildi ng equipment. Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contempla ted. The Government has to walk a tightrope to ensure a level playing field fo r everyone. The policy of permitting 51 per cent FDI in single-brand product ret ailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel ,accessories, watches, ties, textiles ready-to wea r), Lladro (porcelain goods), Fendi (luxury products), Damro (knockdown furnitur e), Argenterie Greggio (silverware, cutlery, traditional 32

 home accessories and gift items) and Toyota (retail trading of cars), into retai l trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly. F.2 Business model s for entry in Indian markets Due to the FDI restrictions the international play ers are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players fro m setting up shops in India. In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in Indias retail space, with Indias Tata g roup. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infus ion of Rs 4 billion. This Tata retail venture joined hands with Australian retai l giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 di fferent formats. While Infiniti will own and run retail operations in India, Woo lworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support a nd strategic sourcing facilities from its global network. 33

 G. MAJOR TYPES OF RETAIL STORES It is in retailing that very drastic changes have occurred during the last two d ecades. Some institutions have disappeared whereas newer ones have been added. T his process of deletion / addition still continues in newer forms. There are lar ge scale retailing shops together with very small units, both working simultaneo usly. They have from hawkers and peddlers, who have no permanent place, to well organized, settled retail shops like chain stores, departmental stores, etc. The institutions carrying on the retail business can be classified as under Major T ypes of Retail Stores A) Instore-Retaling 1. Department Stores 2. Grocery Stores 3. Speciality Stores 4. Box stores 5.Hyper Market 6.Super Market 7.Shopping Mall C) Franchising B) Non-Store Retailing 1. Direct Selling 2. Telemarketing 3. Online Retailing 4. Automatic vendirs 5. Direct Marketing. 34

 G.1 A. Instore retailing Department Stores Department stores consist of separate sections, known as departments, such as clothing, sporting goods, automotive su pplies, health and beauty products and electronics equipment. Some department st ores may also sell food products. Some department stores feature discounted merc handise, while others sell more expensive items geared toward the upscale shoppe r. 35

 Grocery Stores Grocery stores sell prepackaged dry food products as well as perishable items li ke produce, dairy and meat products. Grocery stores also typically sell non-food items such as stationery supplies, cookware, health and beauty products and gre eting cards. Larger grocery stores may include features like fast-food restauran ts and flower shops, as well as modern conveniences like Internet cafes. 36

 Specialty Stores Specialty stores sell specific types of merchandise, such as jewelry, electronic s equipment or toys. The specialty store may be further divided into different c ategories within the specialty. For example, toy stores may have separate depart ments for board games, video games, dolls and model cars. Specialty stores may b e small, independently-owned operations or larger stores that are part of a reta il chain. 37

 Box Stores Box stores, also known as warehouse stores, sell merchandise packaged in larger quantities that feature lower unit costs to the consumer. They appeal to shopper s who wish to buy frequently-used items in bulk to save money. Because they offe r larger package sizes, box stores are usually very large and sparsely decorated , giving the look and feel of a warehouse. 38

 Hypermarket In commerce, a hypermarket (from the French hypermarch) is a store which combines a supermarket and a department store. The result is a gigantic retail facility which carries an enormous range of products under one roof, including full lines of fresh groceries and apparel. When they are planned, constructed, and execute d correctly, a consumer can ideally satisfy all of their routine weekly shopping needs in one trip to the hypermarket. 39

 Supermarket: Supermarkets usually offer products at low prices by reducing margins. To mainta in a profit, supermarkets attempt to make up for the low margins with a high vol ume of sales. Customers usually shop by putting their products into trolleys (sh opping carts) or baskets (self-service) and pay for the products at the check-ou t. At present, many supermarket chains are trying to reduce labour costs (and th us margins) further by shifting to self-service check-out machines, where a grou p of four or five machines is supervised by a single assistant. 40

 Shopping mall: Collection of independent retail stores, services, and parking areas constructed and maintained by a management firm as a unit. It is a 20thcentury adaptation o f the historical marketplace. A shopping mall, shopping centre, shopping precinc t or simply mall is one or more buildings forming a complex of shops representin g merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area a modern, indoor version of the tra ditional marketplace. 41

 G.2 B.Non-Store Retailing A large majority - about - 80% - of retail transaction s are made in stores. However, a growing volume of sales is taking place away fr om stores. Retailing activities resulting in transactions that occur away from a physical store are called non-store retailing. It is estimated that non-store s ales account for almost 20% of total retail trade. Following are the five types of non store retailing: direct selling, telemarketing, online retailing, automat ic vending and direct marketing. Each type may be used not just by retailers but by other types of organisations as well. Direct Selling In the context of retailing, direct selling is defined as persona l contact between a sales person and a consumer away from a retail store. This t ype of retailing has also been called in home selling. Annual volume of direct s elling in India is growing fast from the beginning of the 21st century. The two kinds of direct selling are door to door and party plan. There are many well kno wn direct-selling companies including Amway, Creative memories and Excel communi cations. Diverse products are marketed through direct selling. This channel is p articularly well suited for products that require extensive demonstration. 42

 Telemarketing Sometimes called telephone selling, telemarketing refers to a sale s person initiating contact with a shopper and closing a sale over the telephone . Telemarketing many entail cold canvassing from the phone directory. Many produ cts that can be bought without being seen are sold over the telephone. Examples are pest control devices, magazine subscriptions, credit cards and cub membershi ps. Telemarketing is not problem free. Often encountering hostile people on the other end of the line and experiencing many more rejections than closed sales, f ew telephone sales representatives last very long in the job. Further some telem arketers rely on questionable or unethical practices. For instance firms may pla ce calls at almost any hour of the day or night. This tactic is criticized as vi olating consumers right to privacy. To prevent this, some states have enacted r ules to constrain telemarketers activities. Despite these problems, telemarketi ng sales have increased in recent years. Fundamentally, some people appreciate t he convenience of making a purchase by phone. Costs have been reduced by compute rs that automatically dial telephone number, even deliver a taped message and re cord information the buyer gives to complete the sale. The future of telemarketi ng is sure to be affected by the degree to which the problems above can be addre ssed and by the surge of online retailing. 43

 Online Retailing: When a firm uses its website to offer products for sale and th en individuals or organizations use their computers to make purchases from this company, the parties have engaged in electronic transactions (also called on lin e selling or internet marketing). Many electronic transactions involve two busin esses which focuses on sales by firms to ultimate consumers. Thus online retaili ng is one which consists of electronic transactions in which the purchaser is an ultimate consumer. Online retailing is being carried out only by a rapidly incr easing number of new firms, such as Busy.com, Pets Mart and CD Now.com. Some web sites feature broad assortments, especially those launched by general merchandis e retailers such as Way-mart and Target. Some Internet only firms, notably Amazo n.com are using various methods to broaden their offerings. Automatic vending The sale of products through a machine with no personal contac t between buyer and seller is called automatic vending. The appeal of automatic vending is convenient purchase. Products sold by automatic vending are usually w ell-known presold brands with a high rate of turnover. The large majority of aut omatic vending sales comes from the "4 c s" : cold drinks, coffee, candy and cig arettes. Vending machines can expand a firm s market by reaching customers where and when they cannot come to a store. Thus vending equipment is 44

 found almost everywhere, particularly in schools, work places and public facilit ies. Automatic vending has high operating costs because of the need to replenish inventories frequently. The machines also require maintenance and repairs. The outlook for automatic vending is uncertain. The difficulties mentioned above may hinder future growth. Further, occasional vendingrelated scams may scare some e ntrepreneurs away from this business. Direct Marketing There is no consumers on the exact nature of direct marketing. In effect, it comprises all types of non-s tore retailing other than direct selling, telemarketing, automatic vending and o nline retailing. In the context of retailing, it has been defined as direct mark eting as using print or broadcast advertising to contact consumers who in turn, buy products without visiting a retail store. Direct marketers contact consumers through one or more of the following media: radio, TV, newspapers, magazines, c atalogs and mailing (direct mail). Consumer order by telephone or mail. Direct m arketers can be classified as either general - merchandise firms, which offer a variety of product lines, or specialty firms which carry - only one or two lines such as books or fresh fruit. 45

 Direct marketing has drawbacks. Consumers must place orders without seeing or to uching the actual merchandise. To off-set this, direct marketers must offer libe ral return policies. Furthermore, catalogs and to some extent, direct mail piece s are costly and must be prepared long before they are issued. Price changes and new products can be announced only through supplementary catalogs or brochures. Direct marketing s future is difficult to forecast, given the rise of the Inter net. The issue is whether or not firms relying on direct marketing can achieve a nd sustain a differential advantage in a growing competition with online enterpr ises. 46

 G.3 C.Franchising A franchising operation is legal contractual relationship betw een a franchiser (the company offering the franchise) and the franchisee (the in dividual who will own the business). The terms and conditions of the contract va ry widely but usually the franchiser offers to maintain a continuing interest in the business of the franchisee in such areas as the site selection, location, m anagement, training, financing, marketing, record-keeping and promotion. He also offers the use of a trade name, store motif standardized operating procedure an d a prescribed territory. In return the franchisee agrees to operate under condi tions set forth by the franchiser. For the manufacturers, the franchising is ben eficial in these directions: i. it allows them to conserve capital. ii. the dist ribution system is established in the shortest possible time, iii. Marketing cos ts are lowest and iv. Expenses of fixed overhead such as administrative expenses of the personnel of the company owned units are cut down substantially. 47

 H.COMPETITIVE ADVANTAGE WITH SPECIAL REFERENCE TO PHYSICAL FACILITIES Another competitive advantage of retailers will be how they create physical faci lities which represent the distribution element of a retailer s marketing mix. S ome firms engage in non-store retailing by selling on hire or through catalogs o r door to door, for example-but many more firms rely on retail stores. Firms tha t operate retail stores must consider four aspects of physical facilities. LOCATION It is frequently stated that there are three keys to success in retaili ng: Location! Although overstated, this axiom does suggest the importance that r etailers attach to location. Thus a stores site should be the first decision mad e about facilities. Considerations such as surrounding population, traffic and c ost determine where a store should be located. SIZE This factor means the total square footage of the physical store, not the magnitude of the firm operating th e store. These are much different factors. A firm may be quite large with respec t to total sales, but each of its outlets may be only several thousand square fe et in size. 48

 DESIGN This factor refers to a stores appearance, both interior and exterior ove r its competitor. LAYOUT The amount of space allocated to various product lines, specific location s of products and a floor plan of display tables and racks comprise the store s layout. As would be expected, the location, size, design and layout of retail st ores are based on where consumers live and how they like to go about their shopp ing. Consequently, the bulk of retail sales occur in urban, rather than rural, a reas. And suburban shopping areas have become more and more popular, where as ma ny down town areas have declined. 49

 I. KEY PLAYERS IN INDIAN RETAIL SECTOR 1.AV Birla Group has a strong presence in apparel retail and owns renowned brand s like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of Rs 8000 9000 cr. till 2010 Different business areas of AV group cement The Group s cement business was earl ier under both Grasim Industries and UltraTech Cement. The two entities are now merged into Ultra Tech cement to form India s largest cement company. UltraTech cement was originally the cement business of L&T which was acquired by Aditya Bi rla Group in 2004. 50

 Carbon black The Group is the fourth largest manufacturer of Carbon Black worldw ide. It operates out of facilities in Egypt, Thailand, India and China. Textile business The Aditya Birla Group is the world s largest player in the Viscose Sta ple Fiber industry. It operates out of India, Laos, Thailand, Malaysia and China . It owns the Birla Cellulose brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament yarn businesses and spinning mills at several locations all over India and South East Asia. The group has pulp and plantation interests in Canada and has recently in vested in plantations in Laos. The Aditya Birla group is also a major player in the branded garments market in India. Telecom Services Idea Cellular is now owne d by Aditya Birla Group.Idea Cellular started off as a joint venture with the gr oup, AT&T and the Tata Group. However the stakes of the remaining partners was e ventually acquired by the group. After an Initial Public Offering on the Indian Stock Markets, Idea Cellular now accounts for a third of the group s market capi talization. The company is headquartered in Mumbai and has operations in all the 22 telecom circles in India and is the 3rd largest GSM player in the country. 51

 Other Businesses Apart from the above businesses, the Group is a major player in industry sectors like Insulators, Fertilizers, BPO (Aditya Birla Minacs), Insur ance (Birla Sun Life Insurance), IT, Chemicals, Mining, Sponge Iron, Financial S ervices (jointly with Sunlife and more recently, Retail. Aditya Birla acquired B usiness Processing Outsource Minacs in 2007. 52

 2.Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, b ook and music retail chain, consumer electronic chain etc. Westside, the lifesty le retail chain registered a turnover of Rs 3.58 mn in 2006 areas of business. Trent is a retail operations company that owns and manages a number of retail ch ains in India. Established in 1998, Trent runs lifestyle chain Westside, one of Indias largest and fastest growing chain of lifestyle retail stores, Star Bazaar, a hypermarket chain, Landmark, a books and music chain, and Fashion Yatra, a co mplete family fashion store. 53

 Areas of business Westside: With a number of stores across India, this chain offers clothes, footw ear and accessories for men, women and children, along with furnishings, artifac ts and a range of home accessories. Star Bazaar: This hypermarket chain offers a wide choice of products, including staple foods, beverages, health and beauty p roducts, vegetables, fruits, dairy and non-vegetarian products. Landmark: A lead er in the books and music category, this chain has a range of over 100,000 title s in books and music, and also stocks movies, toys, gift items and stationery. F ashion Yatra: The stores bring quality fashion at low prices to value conscious customers in towns across India. 54

 3.Landmark Group invested Rs. 300 cores to expand Max chain, and Rs 100 cores on Citymax 3 star hotel chain. Lifestyle International is their international bran d business. The Landmark Group provides value-driven product range for the entire family thr ough a diverse portfolio of core retail brands: Landmark Brands 55

 56

 1. K Raheja Corp Group has a turnover of Rs 6.75 billion which is expected to cr oss US$100 million mark by 2010. Segments include books, music and gifts, appare l, entertainment etc. K Raheja Corp are the pioneers in organized retail by taki ng a first giant step to successfully establish a retail store know as "Shopper s Stop" The group is expanding its retail chains across the country on the back of the vast experience it gathered from feedbacks and keen observance of people s taste keeping in tune with its culture, customs, traditions and income. . Cros sword, Inorbit Mall & Hyper City have set new bench marks on the basis of inform ation and adaptation of worldwide changes, innovations and new techniques in ret ailing practices. 57

 2.Reliance has more than 300 Reliance Fresh stores; they have multiple formats a nd their sale is expected to be Rs 90,000 crores ($20 billion) by 2009-10. Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an org anisation that caters to millions of customers, thousands of farmers and vendors . Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned investment of Rs 30,000 crore over the next five years that s the retail vision of Mukesh Ambani and his RIL retail team. RIL s retail vent ure seems all set to achieve the status of being the flag-bearer of India Retail Inc, and that too in record time! 58

 Subsidiaries of Reliance Retail Limited Reliance Fresh Limited Retail Concepts & Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dai ry Foods Limited RESQ Limited Reliance digital Retail Limited Reliance Financial Distribution and Advisory Services Limited Reliance Hypermart Limited Reliance Retail Finance Limited Reliance Retail Travel & Forex Services Limited Reliance Trends Limited Reliance Wellness Limited Reliance Brands Limited Reliance Footpr int Limited Reliance F&B Services Limited Strategic Manpower Solutions Limited R eliance Gems and Jewels Limited 59

 Reliance Integrated Agri Solutions Limited Reliance Universal Ventures Limited R eliance Lifestyle Holdings Limited Reliance Autozone Limite Delight Proteins Lim ited Reliance Supply Chain Solutions Limited Reliance Leisures Limited Reliance Home Store Limited Reliance Agri Products Distribution Limited Reliance Food Pro cessing Solutions Limited Reliance Trade Services Centre Limited Reliance Digita l Media Limited Reliance Personal Electronics Limited Daiwik Trading Private Lim ited Reliance Home Products Limite Reliance Style Fashion India Private Limited 60

 5.Future group Retail forms the core business activity at Future Group and most of its business es in the consumption space are built around retail. Future Groups retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural lo cations across the country. The group currently operates around 1,000 stores spr ead over 16 million square feet of retail space. Present in the value and lifest yle segments, the groups retail formats cater to almost the entire consumption ex penditure of a wide cross-section of Indian consumers. 61

 Indias largest retailer, Pantaloon Retail India Ltd, is gearing up to more than d ouble the number of its Food Bazaar and Big Bazaar stores, the expansion contras ting with its simplification drive. Three years ago, the Future group, the paren t company, set out on a journey to redefine itself. That coincided with the econ omic slowdown, which allowed the group to look inward and simplify the complexit ies of running a high-growth retail business. The process began with the groups f ashion and apparel concept Pantaloonsa Rs1,000 crore business. It cut its product ion offerings and assortments by 60-70% and consolidated its supply chain from 1 8 delivery centers to four for its fashion business. Big Bazaar is a chain of hy permarket in India, which caters to every familys needs and requirements. This re tail store is a subsidiary of Future group, Pantaloons Retail India Ltd. At Big Bazaar, you will definitely get the best products at the best prices thats what w e guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishi ngs, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete your shopping experience. 62

 5.RPG spencer:Its largest chain of Spencers offers a complete array of products and durables. It is operating through 80 stores spread in 20 cities, and is still growing rapidly. Every month nearly 2.6 million people walk in its stores. The stores are located in Bangalore, Mumbai, Delhi, Chennai, Trivandrum , Hyderabad, Faridabad, Vizag, Aurangabad, Pune, Ghaziabad, Cochin, and many mor e. Spencer s has retail footage of approximately 1 million square feet and over 220 Spencer s stores in 35 cities. The company operates through the following forma ts: The Spencer s Hyper stores are destination stores, of more than 15,000 sq. f t in size. They offer everything under one roof. The merchandise ranges from fru its & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chill ed and frozen foods, garments and fashion accessories, consumer electronics & el ectrical products, home decor and needs, office stationeries, soft toys. On an a verage, a Spencer s hyper stocks 70,000 SKUs across 35,000 items. 63

 2. Vishal Retail Group: The jewel in Vishal Groups crown is its flagship company Vishal Retail Ltd. a com pany engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of 172 fully integrated stores in spread over t he area of more than 24,00,000 sq. ft. in around 110 cities across India in 24 s tates. The turnover of the company for 09-10 was 1105 Cr . Maintaining the highe st standards in quality and design, these stores have come to offer the finest f ashion garments at down-to-earth price structure. A fact that is better visible in the constant flow of shoppers all through the year. Under the title of Vishal Mega Mart these stores have emerged as the regular haunts for the bargain-hunte rs and fashion enthusiasts alike. 64

 7.Other retailers: Next retail India Ltd (Consumer Electronics) Vivek Limited Retail Formats: Vivek s, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers PGC Retail -T-Ma rt India, Switcher , Respect India , Grand India Bazaar ,etc., REI AGRO LTD Reta il-Formats:6TEN Hyper & 6TEN Super RPG Retail-Formats: Music World, Books & Beyo nd, Spencers Hyper, Spencers Super, Daily & Fresh The Tata Group-Formats: Westside , Star India Bazaar, Steeljunction, Landmark, Titan Industries with World of Titans showrooms, Tanish q outlets, Chroma. Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgi ris-Formats: Nilgiris supermarket chain Subhiksha-Formats: Subhiksha supermarket p harmacy and telecom discount chain. Trinethra- Formats: Fabmall supermarket chai n and Fabcity hypermarket chain BPCL-Formats: In & Out German Metro Cash & Carry Shoprite Holdings-Formats: Shoprite Hyper Paritala stores bazar: honey shine st ores Kapas- Cotton garment outlets 65

 J. FUTURE TRENDS Lifestyle International, a division of Landmark Group, plans to have more than 5 0 stores across India by 201213. Shoppers Stop has plans to invest Rs250 crore to open 15 new supermarkets in the coming three years. Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to a dd up to existing 2.4 million sq ft retail space. PRIL intends to set up 155 Big Bazaar stores by 2014, raising its total network to 275 stores. Timex India will open another 52 stores by March 2011 at an investment of US$ 1. 3 million taking its total store count to 120. In the first six months of the cu rrent fiscal ending September 30, 2009, the company has recorded a net profit of US$ 1.2 million. Australia s Retail Food Group is planning to enter the Indian market in 2010. It has plans to clock US$ 87 million revenue in five years. 66

 In 20 years they expect the India operations to be larger than the Australia ope rations. Carrefour, the worlds second-largest retailer, has opened its first cash-and-carr y store in India in New Delhi. Germany-based wholesale company Metro Cash & Carr y (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking to its number to six in the country. Electronic retail chain major, Next Retail India, plans to open 400 showrooms ac ross the country during January-March 2011 increasing the total number of retail stores to 1,000 by the end of the fiscal year 2010-11. Jewellery retail store chain Tanishq plans to open 15 new retail stores in vario us parts of the country in the 2011-12 fiscal. V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to ope n 40 outlets over the next three years, starting with 13 stores in 2011, in Tier -II and Tier-III cities. 67

 Reliance Retail, the wholly owned subsidiary of Mukesh Ambani s Reliance Industr ies, is set to open 150 stores by the end of March 2011 and double the number of stores across the country in all formats within five years. Future Value Retail, a Future Group venture, will take its hypermarket chain Big Bazaar to smaller cities of Andhra Pradesh, with an investment of around US$ 1. 54 million to US$ 4.41 million depending on the size and format. RPG-owned Spencer s Retail plans to set up 15-20 new stores in the country in 20 11-12. Spar Hypermarkets, the global food retailing chain of the Dubaibased Landmark Gr oup, expects to start funding its India expansion beyond 2013 out of its local c ash flow in the country. So far, the Landmark Group has invested US$ 51.31 milli on in setting up five hypermarkets and plans to pump in another US$ 51.31 millio n into the next phase of expansion. 68

 Leading watchmaker Titan Industries Limited plans to invest about US$ 21.83 mill ion for opening 50 premium watch outlets Helios in next five years to attain a s ales target of US$ 87.31 million. British high street retailer, Marks and Spencer (M&S) plans to significantly inc rease its retail presence in India, targeting 50 stores in the next three years. Spain s Inditex, Europe s largest clothing retailer opened the first store of it s flagship Zara brand in India in June 2010. It further plans to open a total of five Zara outlets in India. Bharti Retail, owner of Easy Day storesupermarkets and hypermarketsplans to invest about US$ 2.5 billion over the next five years to add about 10 million sq ft of retail space in the country by then, according to a company spokesperson 69

 14. EXPECTED GROWTH OF RETAIL SALES The BMI India Retail Report for the first-quarter of 2011 forecasts that total r etail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2 014. Strong underlying economic growth, population expansion, the increasing wea lth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in India s tier II and II I cities. Mass grocery retail (MGR) sales in India are expected to undergo enorm ous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 145 per cent to reach US$ 21.35 billion by 2014. BMI forecasts consumer electronic sales at US$ 29.09 billion in 2011, with over-the-counter ( OTC) pharmaceutical sales at US$ 2.69 billion. The former sub-sector is expected to show growth of 55.6 per cent between 2011 and 2014, reaching US$ 45.27 billi on, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase slightly more , by 56.5 per cent throughout the forecast period, to reach US$ 4.21 billion. 70

 China and India are predicted to account for more than 91 per cent of regional r etail sales in 2011, and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2011-2014 is fo recast by BMI at 48.1 per cent, an annual average 15 per cent. According to a McKinsey & Company report titled The Great Indian Bazaar: Organi sed Retail Comes of Age in India , organised retail in India is expected to incr ease from 5 per cent of the total market in 2008 to 14 - 18 per cent of the tota l retail market and reach US$ 450 billion by 2015. Furthermore, according to a report titled India Organized Retail Market 2010 , published by Knight Frank India in May 2010 during 2010-12, around 55 million sq uare feet (sq ft) of retail space will be ready in Mumbai, national capital regi on (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organized retail real estate stock wil l grow from the existing 41 million sq ft to 95 million sq ft. 71

 Driven by the growth of organized retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025, according to a report by KPMG. India s retail market is expected to be worth about US$ 410 billion, with 5 per cent of sales through organized retail, meaning that the opportunity in India re mains immense. Retail should continue to grow rapidlyup to US$ 535 billion in 201 3, with 10 per cent coming from organized retail, reflecting a fast-growing midd le class, demanding higher quality shopping environments and stronger brands, ac cording to the report Expanding Opportunities for Global Retailers, released by A T Kearney. Foreign direct investment (FDI) inflows between April 2000 and October 2010, in single-brand retail trading, stood at US$ 197.04 million, according to the Depar tment of Industrial Policy and Promotion (DIPP). 72

 L. GROWTH OF INDIAN RETAIL 2010 The Indian retail industry is the fifth largest in the world. Comprising of orga nized and unorganized sectors, India retail industry is one of the fastest growi ng industries in India, especially over the last few years. Though initially, th e retail industry in India was mostly unorganized, however with the change of ta stes and preferences of the consumers, the industry is getting more popular thes e days and getting organized as well. With growing market demand, the industry i s expected to grow at a pace of 25-30% annually. The India retail industry is ex pected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investm ent. In 2007, the retail trade in India had a share of 810% in the GDP (Gross Do mestic 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 expecte d to grow to US$ 700 billion by 2010. By the same time, the organized sector wil l 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. 73

 M. OPPERTUNITIES AND CHALLENGES M.1. Investment Opportunities in the Retail Sector AT Kearneys study on global retailing trends found that India is the least compet itive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base in I ndia, in terms of the competitive landscape. The report further stated that glob al retailers such as Walmart, Carrefour, Tesco and Casino would take advantage o f the more favourable FDI rules that are likely in India and enter the country t hrough partnerships with local retailers. Other retailers such as Marks & Spence r and the Benetton Group, who operate through a franchisee model, would most lik ely switch to a hybrid ownership structure. A good talent pool, unlimited opport unities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world s best retail economies by 2042, a ccording to industry players. The retail industry in India, according to experts , will be a major employment generator in the future. Currently, the market shar e of organised modern retail is just over 4 per cent of the total retail industr y, thereby leaving a huge untapped opportunity. 74

 M.2. The Potential of the Indian Retail Sector A.The high growth projected in domestic retail demand will be fuelled by: The mi gration of population to higher income segments with increasing per capita incom es An increase in urbanization Changing consumer attitudes especially the increa sing use of credit cards The growth of the population in the 20 to 49 years age band B.There is retail opportunity in most product categories and for all types of formats Food and Grocery: The largest category; largely unorganised today Hom e Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 y ears C. Opportunities for investment in supply chain infrastructure: Cold chain and logistics India also has significant potential to emerge as a sourcing base for a wide variety of goods for international retail companies Many internationa l retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from I ndia 75

 The sector is expected to see an investment of over $30 billion within the next 4-5 years, catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak estimates. Of the total organized retail market of Rs 55 0 billion, the business of fashion accounts for Rs 300.80 billion, which transla tes into nearly 55 per cent of the organized retail segment in the country. Tota l fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent o f the country s retail market of Rs 12,000 billion. Commanding such a large chun k of the organized retail business in India, fashion retailing has indeed been r esponsible for single-handedly driving the business of retail in India. 76

 M.3.Challenges of Retailing in India Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing needs to cross the following hurdles: Automatic approval is not allowed for foreign investment in retail. Regulations restrictin g real estate purchases, and cumbersome local laws. Taxation, which favors small retail businesses. Absence of developed supply chain and integrated IT manageme nt. Lack of trained work force. Low skill level for retailing management. Intrin sic complexity of retailing rapid price changes, constant threat of product obso lescence and low margins. The retailers in India have to learn both the art and science of retailing by closely following how retailers in other parts of the wo rld are organizing, managing, and coping up with new challenges in an ever-chang ing marketplace. Indian retailers must use innovative retail ormats to enhance s hopping experience, and try to understand the regional variations in consumer at titudes to retailing. Retail marketing efforts have to improve in the country advertising, promotions, and campaigns to attract customers; building loyalty by identifying regular shoppers and offering benefits to them; efficiently managin g high-value customers; and monitoring customer needs constantly, are some of th e aspects which Indian retailers need to focus upon on a more pro-active basis. Despite the presence of the basic ingredients required for growth of the retail industry in India, it still faces substantial hurdles that will retard and 77

 inhibit its growth in the future. One of the key impediments is the lack of FDI status. This has largely limited capital investments in supply chain infrastruct ure, which is a key for development and growth of food retailing and has also co nstrained access to world-class retail practices. Multiplicity and complexity of taxes, lack of proper infrastructure and relatively high cost of real estate ar e the other impediments to the growth of retailing. While the industry and the g overnment are trying to remove many of these hurdles, some of the roadblocks wil l remain and will continue to affect the smooth growth of this industry. Fitch b elieves that while the market share of organized retail will grow and become sig nificant in the next decade, this growth would, however, not be at the same rapi d pace as in other emerging markets. Organized retailing in India is gaining wid er acceptance. The development of the organized retail sector, during the last d ecade, has begun to change the face of retailing, especially, in the major metro s of the country. Experiences in the developed and developing countries prove th at performance of organized retail is strongly linked to the performance of the economy as a whole. This is mainly on account of the reach and penetration of th is business and its scientific approach in dealing with customers and their need s. In spite of the positive prospects of this industry, Indian retailing faces s ome major hurdles (see Table 1), which have stymied its growth. Early signs of o rganized retail were visible even in the 1970s when Nilgiris (food), Viveks (con sumer durables) and Nallis (sarees) started their operations. However, as a resu lt of the roadblocks , the industry remained in a rudimentary stage. While these retailers gave the necessary ambience to customers, little effort was made to i ntroduce world-class 78

 customer care practices and improve operating efficiencies. Moreover, most of th ese modern developments were restricted to south India, which is still regarded as a Mecca of Indian Retail. 79

 A. A COM MPERAT TIVE AN NALYS OF G SIS GROWT OF TH BIG B BAZ ZAAR A AND RE ELIAN C MAR OF 2010 CE RT 1 Footwear r footwe ear 8% 8% 8 BigBazaar r RelianceM Mart Fig.6.a F In 2010 bot Big baza and Reliance mar both grow their f n th aar rt wt h footwear se egment up 8%. pto 80

 2. Clothing g clothin ng 9.90 0% Bigbazaar r 37% Reliancem mart Fig.6.b F In 2010 Big bazaar gr n g rowth their clothing u r upto 9.90% and Reli a % ance Mart upto 37% which is gre growth regarding to Big baz u w eat h g zaar . 81

 3.Book Book k 3% 4% % BigBazaar r Reliancem mart Fig.6.c F In 2010 Big bazaar se n g elling grow of book upto 3% a Reliance mart wth k and n upto 4%. u 82

 4.Jewellary 4 y jewelle ery 6% Bigbazaar r Reliancem mart 40 0% Fig.6.d F In 2010 jew n wellery growth upto 6 in Big B 6% Bazaar and 40% upto Re liance d o mart. m 83

 5. 5 Durable Durabl le 30% 40% % Bigbazaar r Reliancem mart Fig.6.e F In Durable good in 20 Big ba n 010 azaar growt upto 30% and Reliance m art th % i t upto 40%. u 84

 6.Home fur 6 rnishing Ho omefurn nising 6% % 6% 6 Bigbazzar r Reliancem mart Fig.6.f F In 2010 Home Furnish n hing upto 6 in Big Bazaar an Reliance upto 6% 6 % nd e which is eq in this year. w qual Competition between higher gro C n owth of Re eliance Mart and Big Bazaar 85

 Result of comparison Segment Footwear Clothing Book Jewellery Durable Home furnishing Big Bazaar 8% 9.9% 3% 6% 30% 6% Reliance Mart 8% 37% 4% 40% 20% 6% Growth increase 0% 27.1% 1% 34% 10% 0% Comparative growth Equal Reliance Mart Reliance Mart Reliance Mart Big Bazaar Eq ual 86

 Graphical represent G tation of gr rowth 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% % 30% 20% 8% % 8% 9.90% 3% 4% 6% 6% 6% 37.00% BigB Bazaar Relia anceMart Fig.7 , show graphical represen F ws ntation of g growth Compariso of grow increas of differ C on wth se rent sector r 40% 35% 30% 25% 20% 15% 10% 10% 5% 0% 0% 0% wear Footw Clothin ng Book Jewellery Durable Home furnishing 0% 0% 1% BigBazaar Reliancemart t 27% 34% 0% 0% 0% 0 0% Fig.8, show compari F ws ison of growth increa ase 87

 B. RESEARCH METHODOLOGY Research is a systematic and objective investigation of a subject or a problem i n order to discover relevant information or principles. Research methodology is basically the method of how to collect data. The information regarding our resea rch are as follows: 2.1 Objective of our research: We wanted to understand as we ll as compare the customer relationship management followed by the Reliance Mart a nd Big Bazaar. It is expletory study 2.2 Type of research: Our research was empi rical kind of research since we were dealing with the behavioral or qualitative aspect of customers and not the quantitative datas. Here we were not supported wi th any external data nor were adopting any secondary data to do our research. 2. 3 Data collection and analysis: collection, and analysis of the information gath ered by Interaction with employees and customers and also by observing activitie s of the employees. For better understanding of CRM in Big Bazaar and Reliance M art we also had prepared a questionnaire for both customers and managers. 2.4 Sa mpling procedure and sample size: persons selected by us were randomly selected and were from different age group, sex and educational background .this diversif ication was done to measure the 88

 different choice and preferences prevailing in customers demographically different. B.1CRM policy of Reliance Mart Meaning of Customer Relationship Management (CRM) : CRM is a comprehensive strategy & process of acquiring & retaining customers t o create superior value for the company as well as the customers. It consists of the processes a company uses to track and organize its contacts with its curren t and prospective customers. To support these processes, various CRM Software li ke SAP, ORACLE Sales force.com etc. are used. These software record and store in formation about customers, various customer interactions, their problems etc whi ch can be accessed by employees in different departments of the company. These i nformation are used by the organization to make future plans that can satisfy th e customer on a better way and retaining them for a longer period. Goal of CRM: The goal of CRM is to provide improved services to the customers, and to use cus tomer contact information for targeted marketing. CRM policy of reliance mart ca n be divided into four major parts, namely; 1) Customer loyalty 2) Customer rete ntion 89

 3) Customer communication 4) Customer gratification There exists a blanket customer relationship programmed called the reliance one membership programmed for the purpose of maintaining customer loyalty. The membe rship programmed is a very simple one where a willing customer is required to fi ll a form giving personal information and he gets a temporary card which will be made permanent after six months. On each purchase of Rs. 100 the customer gets one redeemable point on the production of card at billing counter. The collected points can be redeemed in form of discounts on future purchases on demand of th e customer. The customers also get the opportunity of availing four different ki nds of insurance on the payment of a nominal fee. For example a customer can get an accidental death insurance of Rs. six lakes on the payment of Rs. 400 only. Other forms of insurances are disability, hospitalization and home insurances. T he members of reliance one get the opportunity of taking part and winning prizes by the way of lucky draws on regular intervals. Customer retention policy imple mentation is at the zonal level. Generally each state is regarded as a zone and the offers and discounts in a zone are not available in other zones. Such policy helps reliance retail to 90

 understand and capture the local markets better. The products which show improve ment due to offers and discounts on them are repeated with these offers again so as to retain the sales of the customers who bought it the last time. Also such the days best offers are constantly announced in the store making the regular cu stomers aware about them. Maintaining a good store ambiance is also a part of cu stomer retention policy of reliance retail. Clean and hygienic environment with properly and well spaced products along with a uniform color theme attracts the existing customers to the store again and again. A fast billing system and good and easy grievance handling system which can be accessed through customer servic e desk and company website, ensures that customers feel satisfied with the store management. Less harassment to customers means better customer retention. Commu nication to existing customers takes the form of sms and e-mails, generally sent to reliance one members. They get information about ongoing offers and also inf ormation and latest news about their nearest stores and the company in general. Another source of customer database is the information collected during the orga nizing of special events in the stores. Customers participating in such events p rovide their contact information which are also used in form of database for com munication purposes. Thank you and festive cards on special occasions are an inn ovative way of communicating with the customers. 91

 Trained salespersons make customer gratification very easy. A simple thank you w ith a smile goes a long way for the store to keep the customers happy. The speci al events organized by the stores across India are also a way to gratify the cus tomers by allowing them to play and win prizes. Gift vouchers and discount coupo ns are an attraction for the customers and give them the feel that the store car es about them and their money. Local customers many a times make limited persona l contacts with the store staff just like that made at a Kirana store and help t he store to some extent to maintain a relationship with the customers. The implementation of the policies brings out certain limitations in them. Few m ajor ones are as follows: The personal contact numbers of reliance one members a re open to tele marketing calls from various marketers as they leak out of the r eliance retails database, causing unnecessary customers. The customer communicati on policy is less followed in small towns and cities and is more concentrated to wards the metro cities. harassment to 92

 There is a common CRM policy for both reliance fresh and mart. This should not b e the case as both the stores offer different kinds of merchandize and generally attract different kinds of customers. Reliance retail generally delays the proc essing of permanent membership cards to those customers who have not paid for su ch a card. Customers have been waiting for over three months for their card. Tho se who have paid the nominal fee of Rs. 50 get their permanent card within 15 da ys but the rest who have optioned not to pay the fees do not receive the card un til too late. Unmanned billing counters create long queues at the open counters. This creates impatiens in the customers as they expect faster billing at the st ores and do not want to stand with too much of goods held in their hands while b illing. 93

 B.2. CRM policy of Big Bazaar Database is formed through the issue of future card and card is of three types s ilver card, gold card and sakthi card. Sakthi card is issued to ladies and this card provides, free sugar(1 kg) per month. Customer profitability analysis (CPA) is done on the basis of transactions made through the future cards. Platinum cus tomers (most profitable). Gold customers (profitable). Iron customers (low profita bility but desirable). Lead customers (unprofitable and undesirable). Differentia te customers in terms of: (1) their needs and (2) their value to company. Intera ct with individual customers to improve the knowledge about individual needs and to build stronger relationships. There are four type of analysis done for analysis of CRM Periodic Surveys: Its don e on quarterly, its an overall survey done by the future group authorities and C RM is a part of it. Customer Loss Rate : Mystery Shoppers: They pose as normal cus tomers perform specific tasks such as purchasing a product, asking questions, re gistering 94

 complaints or behaving in a certain way and then provide detailed reports or fee dback about their experiences Monitor Competitive Performance Complain Handling Procedures Screening And Logging -- The type of product or ser vice; manufacturer/brand purchase/contract; name; model name/number; date of war ranty expiration date; salesperson; cost of product/service; date problem occurred; and a description of the problem is list ed. This allows organization to exercise control, and assure proper follow-throu gh. Investigating -- customer s explanation of a problem provides much information. Nevertheless, to assure they have all the information needed for a thorough revi ew of the facts involved, by: Researching in-house records on the customer; Reques ting receipts, or other records; Inspecting the product, or service performed; an d Following-up with the customer for any necessary additional information. 95

 Acknowledging -- When Big Bazaar cannot resolve an issue immediately, it is impo rtant to let customer know that the matter is receiving attention. Customer is g iven information about how long it will take to complete action on the complaint . If there is further delay, its made sure to advise customer why and when Big Ba zaar expects to have an answer. Formulating A Solution -- solution is made to be consistent with established cus tomer relations policy and important criteria are taken into account: Contractual and/or warranty obligations; The customer s expectations; expectations of the cus tomer; The cost/benefit of alternative solutions; The probability and cost of cust omer seeking redress in some other way; The comprehensiveness and fairness of sol ution; ability to perform the solution; and What to do if the customer rejects sol ution. 96

 Responding -- The response is made clear and appropriate. The customer must unde rstand the response, and the response must address the issues raised in the cust omer s original complaint. An explanation of decision preserves the goodwill of customer, even if the decision itself is adverse. Following-Up Customer is contacted following response to verify whether or not t he matter has been resolved satisfactorily. If customer is unhappy with response , organization refers the matter to a third party dispute resolution mechanism f or assistance. Steps Involved in customer Satisfaction through Service: Seeing pr oblems from the customers perspective Managing customers "moments of truth" Commun icating effectively through better listening Analyzing how customer perceptions a re formed Managing anger and other service behaviors Dealing with long-term conseq uences of service breakdowns Negotiating solutions Generating an action plan for i mproved on-the-job effectiveness 97

 CUSTOMER COMMUNICATION: Future group maintains its records of customers by obser ving their purchasing habits & categories them into various groups like high rev enue, moderate revenue & low revenue customers. They communicate to the customer s through various medium like SMS, E-mail, Mobile vans, Print media etc. This is the way to built a strong presence in the existing customers & prospective cust omers. Presently they are using oracle software to maintain database. Recently t hey have tied up with California based firm GREENPLUM to provide new software fo r data warehousing. The company boasts strong share of its profits from top line customers who provide them around 70% of their revenues in total. The company c an said to be going on the famous management principle i.e. 80/20 PRINCIPLE whic h says that 20 percent of variables cause 80% effect. In big bazaar it can be re lated to the fact that 20% of its top line customers provide 80% of its revenues in a year. This is the reason why the retail giant is focusing strongly on cust omer retention in order to boasts its sales numbers substantially. 98

 CUSTOMER GRATIFICATION : It is an important element of a sales process. Every co mpany should survey their customers in order to find out the satisfaction level among the consumers. Big bazaar also conducts periodic surveys in order to ascer tain the satisfaction level in their consumers. Various activities are done in o rder to enhance the shopping experience among buyers & various offers, discount coupons; exchange offers are initiated by the firm in order to develop a good sa tisfaction level in their existing customers. Special coupons are given to custo mers who can be redeemed by the costumers in their future purchases from the sto re. 99

 B.3.Custo B omers po of vi oint iew 1)Sales Persons Assi istance: Th refers to the exten of help a individu his o nt an ual gets from the sales p g t person present in the store in choosing a parti cular e product or in case of a query. There can be two in p i any n nstances i. e inadequa e. ate help or exc h cess help. Inadequate help is a very case becaus e most of th e e he ti sales person is th to solv our quer ime p here ve ries. I n nstances of excess he can ari which m elp ise makes the customer feel that th he person is in p nterfering in his decis n sion or pushing the pr roduct to h h im. Peoples preference o sales per P of rsons assist tance 15% 35% Bigbazaar r Reliancem mart 50% Other Fig.9.a F Shows peop prefere S ple ence of sale persons assistance es 100

 2)Expectati Fulfilm 2 ion ment: every customer has certa expecta y r ain ations whe en he h visits a store. This expectati will va from pe s ion ary erson to pe erson. It ca an be b getting a particular brand of product or particular quanti ty o variant o r f r r or of th product 55% peo he t. ople felt th their ex hat xpectations are more fulfilled at s e Big B Bazaar while 45% preferre Reliance M art. Th may be because o r % ed e his e of greater prod depth at Big Baz g duct zaar than i Reliance Mart. in e Peoples ex P xpectation l level expectationfu ulfilmen nt 45% 55% % BigBazaar r RelianceM Mart Fig.9.b F Shows the fulfillment of people expectatio level S f t on 101

 3)Discounts & Offer these a announ s rs: are nced from time to t time to lu ure cu ustomers to buy mo 60% pe t ore eople pref ferred the D Discounts & Offers o of Big B Bazaar while only 40% preferred that of Relian Mart. T may b y t nce Th is be because mo people are aware of the di b ore e iscounts of ffered by B Big Bazaar due d to their huge adve r ertisements s. Disc cosunt& &offers 40% 60 0% BigBazzar r RelianceM Mart Fig.9.c F Shows peop S ples prefer rence of d discount & offers 102

 4)Product Arrangeme 4 A ent: this b basically m means the sequence or order in w hich diffe w erent varie eties, brand or segm ds ments of pro oducts are arrange d s so th custom feel at ease in se hat mers electing the product o his/her c e of choice. Peoples preference o product a P of arrangemen nt. Produ uctArran ngement t 45% 55% % BigBazzar r RelianceM Mart Fig.9.d F Shows 55% people p S % preferred th product arrangem he t ment of Re e liance Ma art while 45% preferred that of Bi Bazaar. This is be w ig ecause Big Bazaar ha g as la arge space due to wh e hich produ are m ucts more fragm mented or scattered o on th contrary Reliance Mart has smaller sp he y pace in whi pro duc are more ich cts lo ogically ar rranged. A Also it has more spa between the she s ace elves whic ch provide eas of walking to custo p se omers and they thin k less space means less k e en nergy wastage. 103

 5)Accessibi ility: it refe to the r ers reach of the store to t customers. e the Peoples pr P reference o accessib of bility. Accessibility A 11% 50% 39 9% Bigbazzar Relian nce Fig.9.e F Shows 50% people p S % preferred B & 11% % were neutra that me w al eans acces ity tter m. li ikes Big Bazaar because it is anc B n in ce Mart M is loca at a ve posh ar y rea is main city. 104 Bazaa 39% R Big ar, Reliance M Mart ssibility do oesnt mat to them Major situated in the mai city while Reli which i very far from the m ated er

 6)Preferenc it refers to the pre 6 ce: s eference of the custom regarding making f mer g a choice be etween the two stores i.e. Big B s Bazaar & R Reliance M Ma rt. Shopping preference o people. S p of . preferen nce 35% 65% 6 Bigbazaar r Reliancem mart Fig.9.f F Shows 65% people p S % prefer shopp ping at Big Bazaar an 35% pe g nd eople preferred to do shopp p o ping at Reliance Mart This may be becau of any o t. y use of th above mentioned r he m reasons. 105

 C. LIMITATIONS OF THE STUDY To carry out the research study the following limitations are faced: o Availabil ity of sufficient data from different sources may be difficult. o Wrong selectio n of sample may create of wrong conclusion. o Time, cost and factor may cause di fficulties. o Sample size may not be exact representative of the universe. Howev er sincere efforts has been put to overcome the expected limitations. 106

 D. CONCLUSION Transformation by integrating customer facing front-end with back-end systems an d partners and suppliers. This will effectively help in generating better filter ed data source from feedbacks received. Also the feedbacks will be dealt with in a much more careful and professional way. Growth of CRM facilitated by growth o f IT. In this age of Information Technology an effective IT planning on the CRM can help the organization earn a lot of repute. New database solutions. This will help to filter and clean the raw data received from feedbacks more eff iciently. Mutual benefit through CRM. The stores and their customers can mutuall y benefit through the application of CRM. So at this era of customers, the compani es should project themselves as customer oriented as possible to help them benef it in a long term survival plan. Effective segmentation of customers. With more and better quality of data, this can be done very easily. Enhancing the shopping solutions. This is the age of innovation. Especially in Indian markets, low cos t innovation is the ultimate tool to win the battle for the companies. Thus, the companies need to be innovative with their ideas and always try to deliver the customer with some added value for their purchase. 107

 A.BIBLIOGRAPHY BOOKS MarketingManagementbyPhillipKotlarandKhoshy Retail management by Michael Levy and n A Weitz Retail management by Chetan Bajaj WEB SITES www.auditbureau.org www.executiveplanet.com/businessetiquette/India.html www.cygnus india.com www.scribd.com 108