PRO1ECT REPORT

OF
ORGANIZATIONAL STRUCTURE, DESIGN AND HR
PLANNING



Submitted To: - Submitted By:-
Miss. Parul Yadav Shubha Sengar
Akshat Chaturvedi
Abhishek Khobragade
Sonam Shrivastava
Abhishek Yadav
Nikita Gupta
AMITY UNIVERSITY
UTTAR PRADESH
2011

CONTENTS

S.No. Topic
1. About Industry
1. Key Players
2. Entry of MNC`s
3. The fall of Subhiksha and Vishal
4.
Everyday
5. Vision & Values
6. Organization Structure
7. Supermarket
8. Hypermarket
9. External Analysis
10. Internal Analysis
11.












INDIAN RETAIL INDUSTRY
Indian Retail Scenario
The retail scenario is one oI the Iastest growing industries in India over the last couple oI years.
India retail sector comprises oI organized retail and unorganized retail sector. Traditionally the
retail market in India was largely unorganized; however with changing consumer preIerences,
organized retail is gradually becoming popular.
Unorganized retailing consists oI small and medium grocery store, medicine stores, sabzi
mandi, kirana stores, paan shops etc. More than 90 oI retailing in India Iall 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 expected to increase Irom ` 35, 000 crore
in 2004-05 to ` 109, 000 crore ($24 billion) by 2010.

QUICK FACT ON INDIAN RETAIL SECTOR
O Indian Retail sector is the IiIth largest global retail destination.
O India retail market is dominated by the unorganized sector.
O The top Iive companies in retail hold a combined market share oI less than 2.
O The Indian retail market has been ranked by AT Kearney's eighth annual Global Retail
Development Index (GRDI), in 2009 as the most attractive emerging market Ior
investment in the retail sector.
O Currently the share oI retail trade in India's GDP is around 12 per cent, and is estimated to
reach 22 per cent by 2010.
O According to Government oI India estimate the retail sector is likely to grow to a value
oI ` 2,00,000 crore (US$45 billion) and could yield 10 to 15 million retail jobs in the
coming Iive years; currently this industry employs 8 oI the working population.
O India continues to be among the most attractive countries Ior global retailers. According to
the Department oI Industrial Policy and Promotion, approximately US$ 47.43 million was
the amount oI Foreign Direct Investment (FDI) inIlow as on September 2009, in single-
brand retail trading.
More than 80 oI the retail sector in the country is concentrated in the large
cities. A study reveals that among the more than 20 locations, Ior organized retail in India,
Mumbai was Iound to be the most preIerred location Iollowed closely by Bengaluru in the
second position.

Key Players in Indian Retail Sector

O AV Birla Group has a strong presence in apparel retail and owns renowned brands like
Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company
has investment plans to the tune oI ` 8000 9000 crores till 2010.
O Trent is a subsidiary oI the Tata group; it operates liIestyle retail chain, book and music
retail chain, consumer electronic chain etc. Westside, the liIestyle retail chain registered a
turnover oI ` 3.58 mn in 2006.
O Landmark Group invested ` 300 crores to expand Max chain, and ` 100 crores on
Citymax 3 star hotel chain. LiIestyle International is their international brand business.
O K Raheja Corp Group has a turnover oI ` 6.75 billion which is expected to cross US$100
million mark by 2010. Segments include books, music and giIts, apparel, entertainment
etc.
O Reliance has more than 300 Reliance Fresh stores; they have multiple Iormats and their
sale is expected to be ` 90,000 crores ($20 billion) by 2009-10.
O Pantaloon Retail has 450 stores across the country and revenue oI over ` 20 billion and is
expected to touch 30 million by 2010. Segments include Food & grocery, e-tailing, home
solutions, consumer electronics, entertainment, shoes, books, music & giIts, health &
beauty care services.
Retail and recession
The global economic slump has had its impact on the India retail sector. One oI the earliest
players in the Indian retail scenario Subhiksha's operations came to a near standstill and required
liquidity injection. Vishal Retail secured corporate debt restructuring (CDR) plan Irom its
lenders while other players like the Reliance Retail run by Mukesh Ambani and Pantaloons led
Kishore Biyani by went slow on expansion plans and even scaled down operations. However,
during the last quarter a bit oI conIidence was restored as the economy showed signs oI growth.

Future Trends
O LiIestyle International, a division oI Landmark Group, plans to have more than 50 stores
across India by 201213.
O Shoppers Stop has plans to invest ` 250 crore to open 15 new supermarkets in the coming
three years.
O Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this Iiscal to add up to
existing 2.4 million sq It retail space. PRIL intends to set up 155 Big Bazaar stores by
2014, raising its total network to 275 stores.
O Timex India will open another 52 stores by March 2011 at an investment oI US$ 1.3
million taking its total store count to 120. In the Iirst six months oI the current Iiscal
ending September 30, 2009, the company has recorded a net proIit oI US$ 1.2 million.
O Australia's Retail Food Group is planning to enter the Indian market in 2010. It has plans
to clock US$ 87 million revenue in Iive years. In 20 years they expect the India operations
to be larger than the Australia operations.




The Road Ahead
Industry experts predict that the next phase oI growth in the retail sector will emerge Irom the
rural markets. By 2012 the rural retail market is projected to have a total oI more than 50 per cent
market share. The total number oI shopping malls is expected to expand at a compound annual
growth rate oI over 18.9 per cent by 2015. According to market research report by RNCOS the
Indian organized retail market is estimated to reach US$ 50 billion by 2011.

Entry of MNCs
The world's largest retailer by sales, Wal-Mart stores Inc. and Sunil Mittal's Bharti Enterprises
have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-
carry Iacilities over seven years. The Iirst oI the stores, which will sell groceries, consumer
appliances and Iruits and vegetables to retailers and small businesses, is slated to open in north
India by the end oI 2008.
Carrefour, the world`s second largest retailer by sales, is planning to setup two business entities
in the country one Ior its cash-and-carry business and the other a master Iranchisee which will
lend its banner, technical services and know how to an Indian company Ior direct-to-consumer
retail.
The world`s IiIth largest retailer by sales, Costco Wholesale Corp (Costco) known Ior its
warehouse club model is also interested in coming to India and waiting Ior the right opportunity.
Opposition to the retailers' plans has argued that livelihoods oI small scale and rural vendors
would be threatened. However, studies have Iound that only a limited number oI small vendors
will be aIIected and that the beneIits oI market expansion Iar outweigh the impact oI the new
stores.
Tesco Plc plans to set up shop in India with a wholesale cash-and-carry business and will help
Indian conglomerate Tata group to grow its hypermarket business.
Challenges
To become a truly Ilourishing industry, retailing needs to cross the Iollowing hurdles:-
Automatic approval is not allowed Ior Ioreign investment in retail.
Regulations restricting real estate purchases, and cumbersome local laws.
Taxation, which Iavours small retail businesses.
Absence oI developed supply chain and integrated IT management.
Lack oI trained work Iorce.
Low skill level Ior retailing management.
Lack oI Retailing Courses and study options
Intrinsic complexity oI retailing rapid price changes, constant threat oI product
obsolescence and low margins.
One very important measure to overcome some oI the challenges Iaced by retail, is Ior
companies to invest heavily in training and recruitment, using up to date cost eIIicient services.
One oI the leading retail training companies in India is Metamorph Learning Pvt. Ltd, a
Bangalore-headquartered, pan-India company which specializes in e-learning, content
development as well as blended training (classroom virtual training) to cater to retail and other
companies across India.
Also, the country is developing a support inIrastructure in Iorm oI specialized retail
schools. One such skill development initiative has been taken by TKWs Group. Its TKWs Retail
School has already training over a thousand students and retail proIessionals Ior diIIerent retail
skills. TKWs Retail School is also associated with government projects like enhancing retail
experience oI Ioreign tourists, improving retail oI handicraIt and local produce, skill
development oI village youth.

Indian Retail in for a heady mix
Indian retail market is estimated to be at approx. $350 billion and organized retail accounts Ior
6 oI the total market. With such a huge opportunity why would anybody not enter the retail
market? Both domestic and Ioreign retail players are interested in investing in Indian retail story.
The results have been mixed so Iar but there are trends iI looked more closely.
Foreign Direct Investment is permitted only in cash-and-carry business oI the retail
space. No Ioreign investment is allowed in multi-brand retail stores. 51 investment is allowed
in single brand retail stores. International Multi-brand retailers are allowed but only via the
Iranchise route where the Iace should be oI an Indian business house. We are getting mixed
signals Irom Indian organized retail probably indicates the mood oI the Indian consumer. No one
knows what`s in store Ior the Iuture so let us hold up is one side. The other side is people still
got to drink, eat and bath. That conIusion is prevalent among the major retail houses.


Rural and small towns, the next big opportunity for Indian retail?
India`s over 600,000 villages and a rural population oI over 700 million present a very unique
and challenge opportunity Ior various organizations. The Iact that this population has completely
diIIerent needs, wants and desires compared to the urban populace makes the situation even
tougher to play in.
India`s rural sector has always been an enigma Ior organizations across the board. They have
tried various ways and means oI reaching the rural population. Some have been successIul while
others haven`t.

India`s retail sector has Ior quite a Iew years been one oI the sunshine sectors oI our industry.
Future Group, Reliance, Aditya Birla Group, Goenka, a number oI big players have established
themselves in this Iield in Iormats as varied as supermarkets and cash and carry stores. But
problems ranging Irom poor supply chain, high inIrastructure costs, lack oI positioning and
loyalty have proved as obstacles in their growth path.
Now, many oI them are turning their glances to the rural areas Ior expansions.
Shoppers Stop is planning to open over 12 stores in smaller cities by the year end at an
investment oI about 120 crore
Future Group is planning to enter 10 12 towns every year
Metro Cash and Carry and Easy Day are looking to expand their cash and curry business Iirst
to smaller towns
Wills LiIestyle and Spice Hotspot are targeting these smaller cities and towns as a very
important part oI their strategy

Wondering how come this change?
One oI the most important Iactors is the changing demographic dividend - Increasing disposable
incomes, better standards oI living and reduction oI gender and race divides is proving to be
increasingly beneIicial.
With increasing inIlux oI TV, new technologies, media and Internet, the rural
population is getting all kinds oI inIormation in the nick oI time. This has been instrumental in
helping them open their eyes to the outside world and in knowing what`s good and what`s bad.
This has also helped the rural populace to better realize their agricultural produce and get the
right price Ior it. Eg: Reliance Fresh is sourcing the vegetables directly Irom the Iarmers Ior its
stores thereby removing the need oI middlemen. Low land availability and rising prices has also
made many retailers look to smaller towns Ior their operations.
Increasing customization and decreasing the stock oI luxury products is the strategy which
retailers are using Ior rural areas.

Indian Retail - The fall of Subhiksha and Vishal !
The Indian retail industry has been riding a wave Ior the last couple oI years. According to a
latest report, retail sales are expected to rise Irom US$ 343 billion currently to US$ 543 billion.
Reliance Fresh, Subhiksha, Vishal Retail, Spencer`s, More, Big Bazaar and many
more have entered India since the modern Iormat retail concept began. The expanding middle
and upper classes has played a big role in the expansion oI existing modern Iormat stores and
entry oI new ones.
The biggest question is 'Have all of these stores been successful?
The answer is a big NO. We shall discuss about two oI the biggest Iailures in the history oI
Indian retail Subhiksha and Vishal Retail.

Subhiksha was started by R. Subramaniam, an IIM A and IIT Chennai alumnus with its Iirst
store at Chennai. Ram Chandra Aggarwal set up his Vishal Garments Store in 1994 three years
beIore Biyani`s Pantaloon and seven years beIore setting up Vishal Retail. Both oI them are
discount stores at prices which are much lower than other retail outlets.
Though, Subhiksha has closed down and Vishal is still in the market, there are some points oI
similarity in their Iall Irom glory which I would like to mention here

Un-mindful expansion spree across different parts of the country
Subhiksha didn`t realize that with this only a Iew stores would be proIitable and generate
positive cash Ilows. It moved across diIIerent sectors such as medicine, grocery, IT, mobile etc
very Iast.
Vishal expanded without having the proper capital. They got the orders Irom the suppliers but
when the stores didn`t work out, the entire supply chain got choked.
IPO problem
Subhiksha was thinking oI going Ior an IPO in 2007 but shelved it in view oI 'uncertain market
conditions. But I believe that they got greedy as they expected a market correction.
Vishal on the other hand raised Rs 110 crore Irom an IPO in June 2007 which wasn`t enough to
meet it scorching growth pattern. It had 50 stores by then and was looking to expand to 130
stores in a year. But it went Ior short term debt which resulted in a big blow to their entire supply
chain when the stores didn`t happen as intended.
Both of them didn`t consolidate
Subhiksha and Vishal instead oI stabilizing and consolidating themselves Iirst in diIIerent places
and then moving to newer locations, tried to be the Iirst in every town.
Poor inventory management
Subhiksha had a bad history oI credit deIaults and this led to supply breakages. This led to
situations where sometimes the store had very high inventory and at others, the stocks were out.
This led to great dissatisIaction.
Vishal`s distribution center led model Iailed as it couldn`t build an IT network. Buying at
warehouses was mostly not aligned to what the customers needed and resulted in dead inventory.
Private Labels
Vishal tried to develop private labels in almost every category but had limited scale to support
them.
Subhiksha closed down in 2009 amid allegations oI deIaults, non wages payments and
bankruptcy. The people behind it are still struggling to come up with valid explanations.
Vishal has brought down the rentals oI the properties, decreased its expenses and closed down
two dozen stores and warehouses and plans to close more. They still need an inIusion oI about
Rs 50 crore. Would the lenders give them.
EVERYDAY
Hamesha Savings Hamesha Extra
NAASA Retail is the retail arm oI NAASA group, a USD 2.8 billion Corporation.
The Company ventured into Iood and grocery retail sector in 2007 with the acquisition oI
SUBHIKSHA supermarket chain. Subsequently NAASA group expanded its presence across the
country under the brand "Everyday" with 2 Iormats; Supermarket & Hypermarket.
Supermarket
Conveniently located in neighborhoods, Everyday Supermarkets cater to the daily,
weekly and monthly shopping needs oI consumers. The product oIIerings include a wide range
oI Iresh Iruits & vegetables, groceries, personal care, home care, general merchandise & a basic
range oI apparels. Currently, there are over 575 Everyday supermarkets across the country.
Hypermarket
Everyday MEGASTORE - is a one-stop shopping destination Ior the entire Iamily.
Besides a large range oI products across Iruits & vegetables, groceries, FMCG products,
Everyday MEGASTORE also has a strong emphasis on general merchandise, apparels & CDIT.
Currently, eleven hypermarkets operate under the brand Everyday MEGASTORE in
Mysore, Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, Hyderabad, Vashi, Rohini & Kirti
Nagar in New Delhi & Nashik.
Club Everyday - our loyalty program, currently has a strong membership base oI over 1 million
members. Currently has employee strength oI over 11,000. Key Iunctions are headed by
proIessionals with vast retail experience in India & globally.




Quality & Value through own labels:
NAASA Retail provides customers a wide choice oI products under its own labels. The
objective is to provide quality products at attractive price points to customers. Since quality oI
the products is oI prime importance, stringent quality norms have been set and are Iollowed. All
manuIacturing partners are the best in their class.
Own label Food Brands Everyday.,
Feasters, Kitchen's Promise, and Best oI India
Home & Personal care brands: Everyday., Enriche, 110, Pestex, Paradise, and Germex

Our Vision & Values

Vision: "To consistently provide the Indian consumer complete and diIIerentiated shopping
experiences and be amongst India's Top retailers, while delivering superior returns to all
stakeholders".

Values:
O Integrity
O Commitment
O Passion
O Seamlessness
O Speed





Organization Structure

Management team:
Shubha Sengar CEO NAASA RETAIL
Abhishek Khobragade CEO Hypermarket
Abhishek Yadav

CEO - Supermarket
Akshat chaturvedi Head Finance
Nikita Gupta CMO
Sonam Srivastava Head Legal

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Supermarket
With a vision is to be among the leading retail players in India, NAASA Retail launched its Iirst
supermarket, Everyday in May, 2007. Since its launch, the Everyday has an aggressive roll out,
reaching a total count oI over 575 stores across India today.
Everyday is your neighborhood supermarket which takes care oI your Everyday household
needs. Everyday Spread across a wide range oI products oI Iood and non Iood items, ranging
Irom basic necessities such as, Iruits and vegetables, staples, personal care, home care, household
care products, general merchandise, and dairy products, Everyday provide a one stop solution Ior
your grocery shopping needs. Also in store are essentials such as, innerwear, kids essentials, and
a pharmacy, bakery and a mobile store. With a range oI over 4,000 products, we are able to
IulIill daily shopping needs all under one rooI, at a convenient location nearby.

Everyday promises a world class shopping experience, with a modern store layout, easy to shop
with Iriendly staII at hand to provide assistance, electronic billing Iacilities and a colorIul
ambience. At Everyday we oIIer branded Iood and grocery products sourced Irom the leading
brands Irom all over India, along with private label brands Irom our own portIolio - available in a
broad selection , always giving you the best possible value Ior money.

Products and services
At Everyday we are committed to deliver quality & value to our customers and have a range oI
private label brands as well as commercially branded products, oIIering - 100 satisIaction on
the quality oI the products & services oIIered.
Everyday hosts a range oI private label brands across various categories that Iollow
stringent quality norms, and are available in attractive prices and packaging. Our premium
products give you the opportunity to enjoy the diIIerence and quality that is equal to or better
than the market's leading brands, but at competitive prices.
We oIIer a wide range oI assortment oI over 4000 products, ranging Irom Iresh Iood to
beverages, grocery to household care products. Our range covers everything, Irom day-to-day
essentials to traditional Iavorites, Irom delicious treats, to healthy alternatives
To ensure the Ireshest supply oI Iruits and vegetables Ior you, we have built direct
linkages with the Iarmers Ior daily supplies oI Iarm Iresh produce.
Our stores are built with a modern and comIortable ambience, air conditioned and with
speedy automated cashiering to help you shop better. We also have Iriendly in-store policies on
exchange and returns that help you shop with ease and comIort.
Further Everyday, to make your shopping experience Everyday rewarding with us, we
at Everyday oIIer a membership program Club Everyday which reinIorces our commitment to
consistently add value to your shopping experience, and also to thank you Ior choosing to be a
part oI Everyday. As a Club Everyday member, you are entitled to special beneIits, besides the
regular oIIers and promotions at Everyday. Club Everyday members will also have the beneIit oI
receiving exclusive SMS alerts Ior special oIIers on our products and services. Currently Club
Everyday has over 1 million members enrolled Ior its loyalty program.

The product categories available in stores :

Bakery
Beauty Concepts
Beverages
Basic Apparels
Cutlery & Cookware
Fruits & Vegetables
Frozen & Dairy Products
FMCG Products
Grocery
General Merchandise
Home Care Products
Home Needs & Home Upkeep
Home Decor Products
Mobile Store
Personal Care & Cosmetics
Processed Food
Pharmacy
Ready to Cook/Prepared Food
Small White Appliances
Staples
Stationery
Women's Accessories


Offers and promotions
At Everyday, we have adopted a competitive pricing policy ensuring that you receive the best
possible value. We retail a wide range oI products below MRP. We also have a wide selection oI
products on attractive oIIers and promotions that help you get Everyday Irom your shopping.
You can expect to be pleasantly surprised at every visit to our store with attractive promotions
such as 'Buy and Get Free ", discounts and special oIIers.
From time to time, we also run Iestival promotions that help you shop Ior special and Iestive
occasions. We also promote traditional Iavorites and local specialties during Iestivals to make
your shopping experience convenient.
At any given point in time, you will Iind a wide range oI products on promotion which we oIIer
to enable you to make the most oI your shopping, help you try new products and get you better
deals.
We also run celebratory promotions that give you an opportunity to win attractive prizes such as
cars, two wheelers, holiday packages, giIt hampers and much Everyday.

HYPERMARKET
With the launch oI Everyday MEGASTORE - a hypermarket, in March 2008, NAASA Retail
expanded its Iootprint in large Iormat retailing, which Ieatures both Iood and non-Iood products.
Hypermarkets are what can be described as a complete destination shopping area, where
one can enjoy a day out with the entire Iamily because oI a simple Iact that hypermarket consists
oI variety oI options under just one rooI. The result is a very large retail Iacility which carries an
enormous range oI products like grocery, Iruits & vegetables, general merchandise, electronics,
computers, mobile phones, apparel, Iootwear sports and FMCG products, with national,
international and house brands all under a single rooI.
Currently, eleven hypermarkets operate under the brand Everyday MEGASTORE in Mysore,
Vadodara, Aurangabad, Indore, Bengaluru, Mumbai, Hyderabad, Vashi, Rohini & Kirti Nagar in
New Delhi & Nashik.
Products and services
Shopping was never Everyday interesting and easy!! Now no Everyday shop hopping Irom one
shop to another, just to get your weekly shopping done, shopping Ior your various requirements
are easily available at just one stop at Everyday MEGASTORE

Products
Covering large and spacious area, Everyday MEGASTORE oIIers you a wide range oI products
spanning across grocery, Iruits & vegetables, general merchandise, electronic products,
computers & accessories, mobile phones & accessories, apparels, Iootwear, sports and FMCG
products and Everyday at amazing prices and oIIers.

The product categories available in stores:
Apparels - Men/ Women
Audio & Video (A & V)
Bakery
Beverages
Books and Audio & Video Products
Computer & Accessories
Do it yourselI & Auto Accessories
Electronics
FMCG Products
Footwear
Frozen & Dairy Products
Fruits & Vegetables
Furniture
General Merchandise
Home Care Products
Home Decor Products
Home Needs & Home Upkeep
InIant & Children's Apparels
InIormation Technology Products
Large White Appliances
Luggage
Mobile Phone & Accessories
Personal Care & Cosmetics
Processed Food
Ready to Cook/Prepared Food
Small White Appliances
Sporting Goods
Staples
Stationery
Sun Glasses & Fine Jewellery
Two Wheelers
Toys


Services
For your additional beneIit, Consumer Finance on electronics products such as: Audio & Video
and Large White Appliance are available at Everyday MEGASTORE

Friendly Return & Exchange Policy
O Hassle Iree Return & Exchange policy at Everyday MEGASTORE
O In case you change your mind, we at Everyday MEGASTORE would be pleased to exchange the
same Ior you - no questions asked, as long as it is in its original packaging and accompanied by
its invoice.
O In case, an exchange is not required, you will be issued a giIt card equal to the billed value,
which can be utilized within the store as per your convenience.
Diversity
Acknowledging, understanding, accepting, valuing & celebrating diIIerences among people with
respect to age, class, ethnicity, gender, physical and mental ability, race and sexual orientation
are the diverse Iactors which are valued and respected at Everyday. Our values being the
bedrock and diversity being the primary driver; NAASA Retail`s vision to be a premium global
conglomerate with a clear Iocus on each business is a REALITY..
It is also vital that leaders to recognize their own cultural biases and prejudices. Diversity
is not about diIIerences among groups, but rather about diIIerences among individuals. Each
individual is unique and does not represent or speak Ior a particular group, hence the Diversity
Committee at NAASA Retail was Iormed to achieve these prominent goals.


Diversity committee
The Diversity Committee is comprised oI members oI senior management who will initiate,
implement & review all workplace diversity initiatives.



Key purpose of the diversity committee
To institutionalize a "culture oI inclusion" where embracing varied perspectives is an integral
part oI our business tactics, Irom daily decision making to strategic planning & career
development.

The aims of the diversity strategy are to:
O Respect and value diIIerences with respect to gender, race, age, nationality, religion, sexual
orientation & ability
O Ensure dignity at work Ior all our employees
O Make Iull use oI the talents oI all the workIorce
O Prevent acts oI discrimination, segregation, unIair treatment, and other negative or demeaning
behaviors.
O Be open and positive in our communications

Going a step ahead, we believe that in addition to hiring the best talent, the diversity
oI perspectives, ideas and cultures lead to the creation oI a better work place, and ultimately
achieve success. Employees' strength Irom diIIerent cultural, linguistic and national backgrounds
provides valuable knowledge Ior understanding complex international markets.

At NAASA Retail., we have embraced 'diversity' in all that we do and deIine it as "Thinking &
Working together beyond Iunctional silos, hierarchies, businesses & geographies. Celebrating
diIIerences to garner synergy beneIits, whilst encouraging a "WE" Ieeling". By giving all our
employees as well as potential employees a culture oI diversity & inclusion, we intend to have an
unparalleled Employee Value Proposition that would be diIIicult to beat. Diversity enriches our
perIormance, the communities in which we live and work, and the lives oI our employees

The Positioning:

Everyday made an extensive research on customer behavior and Iound that oIIering the
branded goods at a lower price than their competitors could make them stand in the
competitive retail industry.

O Low Prices : Everyday Positioned itselI as Value Retail Chain /Discount Retail Chain
with theme as 'why pay more when you can get Ior less
O Trust: Everyday`s name inspires trust and its consumers rely on it through all times to
deliver larger savings as compared to any other retail chain or stand-alone mom and
pop stores.
O Savings: Iocuses on the concept oI constantly sustainable low pricing so that regular
customers see the same low prices month aIter month (below MRP) and are able to buy
with the assurance that they stand to save on any given basket oI household goods on any
day.

The Retail Strategy:
Everyday Iocuses on two Iactors Ior its model. These are called the two C's:

1. Criticality of Cost.
2. Convenience of Buying

The Iollowing points will make it much clearer as to how Everyday is integrating all
that it has to achieve the above 2 C`s:
O Opening a chain oI noIrills storesno airconditioning, no Iancy lighting, and no
touch andIeel experience (customers have to ask Ior products at Everyday
stores)was a deliberate strategy.
O Their approach combines the local lowoverhead Irontend oI Indian kirana
shops with the eIIicient supply chain oI a large retailer.
O Their USP is a Walmartstyle everydaylowprice (510 less than MRP and/or
their nearest competitor), enabled by combining centralized buying and an
eIIicient supply chain, with their simple (and inexpensive) store Iormat.
O Everyday Iollow an Every Day Low Price Scheme (ELDP) where they oIIer the
lowest prices every single day oI the year on almost everything that is sold Irom
the stores.
O Shops are located not on the main road, but just oII it, to take advantage oI
vastly lower rentals.
O The catchment area oI customers is rarely beyond a twokm radius, since its
customers usually come on twowheelers or on Ioot.

Environment Analysis:
External Analysis

Political: A stable government at the Centre should Iacilitate speedy economic recovery
and create an encouraging investment climate
Economical: India is one oI the Iastest growing economies (= 66.5 GDP growth rate).Total
retail trade in India in 2004 was USD 286 billion which is expected to rise up to 300 bn by
2010.
Social: There is Increase in Nuclear Families and people are looking Ior convenient stores
rather than destination stores Ior grocery and pharmacy related products at reasonable prices.
Technological: Companies are in using tools and technologies that will help them in reducing
operational costs, better customer service, minimize shrinkages by maintaining just in time and
accurate inventories.


Porter`s Five Forces Analysis:

O Potential Entrants: A strong possibility oI potential entrants is there but
understanding oI Indian consumer is really diIIicult which restricts the
multinationals in expanding at local level and local retailers at National level.
O Bargaining Power of Suppliers: The Power oI suppliers is not very dominant in
India.
O Bargaining Power of Customers: A strong Bargaining power oI customers, unless
they are very loyal.
O Potential Substitutes: Exist but lack a strong value proposition.

Internal Analysis

1. The neighborhood store
With establishing a vast network oI relatively small stores it wants to establish itselI as a
neighborhood store where people can do shopping on a daily basis thus providing both
convenience and cost beneIit to its consumers.

2. Cost saving
The belieI oI Everyday is to set up non air conditioned small neighborhood stores measuring
around 2000 sq It. It is because oI this that Everyday is able to compete with the big retail
stores on the regular discounts and also compete with the traditional 'Iather and son or 'mom
and pop stores on the close proximity to the customers.

3. Everyday low price system (ELDP):
In Everyday the discounts are not restricted to speciIic days and speciIic items as prevalent
in other retail Iormats. Everyday Iollow an Every Day Low Price Scheme (ELDP) where
they oIIer the lowest prices every single day oI the year on almost everything that is sold
Irom the stores.

4. Lower Infrastructure cost:
Everyday has small stores which do not allow the customers to browse and shop likes the other
retailers in the market. Everyday Ieels that Ior buying grocery or cosmetics, the customers look
Ior a quick purchase rather than the shopping experience. It is a no Irill store. Everyday has
positioned itselI as a store Ior the "Value Conscious" customer. It is a Iunctional and a
transaction oriented shop.

5. Centralized Purchasing:
Cost reduction is oI Centralized purchasing Ior a large number oI stores. This gives them a
greater bargaining power and which helps them in getting greater discounts Irom the
manuIacturers and which they pass on to the consumers .

6. Supply Chain and Inventory turnover efficiency:
This was implemented in Everyday to make its model more eIIicient in inventory and
supply chain management and oIIering low prices to the consumers.

7. Marketing Communication:
Everyday Iocused on the use oI Television commercials, Press, Radio and Outdoor
activities Ior communicating the marketing message oI the company.

8. Introduction of Synergy Card:
An integral use oI IT in Everyday is the introduction oI Synergy cards Ior its consumers. These
cards are issued to customers oI Everyday who get additional discount every time they swipe
the card at Everyday aIter making a purchase.

9. Implementation of Home delivery System:
Introduction oI Synergy card has also made way Ior better services to customers in the Iorm oI
Home Delivery.

10.Establishment of an Online retail System:
Everyday had entered into the Iield oI online retailing.

11.Use of Information Technology:
Use oI Bar code system , Development oI its own intelligence system , Wireless retail solution
and Implementation oI SAP contributed towards success.

Technology:
James Thompson has characterized three types oI technology:
1) Mediating (pooled)
2) Long linked ( Sequential )
3) Intensive ( Reciprocal )

Pooled interdependence is associated with organizations employing a Mediating Technology. A
Mediating Technology provides products or services that mediate or link clients Irom the
external environment and, in doing so, allows each department to work independently
Everyday is using Mediating Technology as each department is responsible Ior its own
department and is interdependent on others with sharing oI resources.



According to Charles Perrow there are Iour types oI technology:
1) craIt
2) non routine
3) routine
4) engineering

Everyday is using Routine Technology as work process is programmed and standardized.
Also the Iormalization and centralization is high in Everyday. The production emphasis
depends on quantity and eIIiciency.