Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PROJECT
ON
EXPANSION STARTEGY OF RAHULRAJ MALL
At
RAHULRAJ MALL,SURAT
PREPARED BY:
ARIHANT BOTHRA
(GB-059)
(MARKETING)
SUBMITTED TO:
METAS OF SEVENTHDAY ADVENTIST COLLEGE
ATHWALINES, SURAT.
2015-2016
PREFACE
PREFACE
The Masters of Business Administration Course covers theoretical as well as practical aspect
of business practices. So for the partial fulfillment of this course, the student is supposed to
undergo training at any commercial / industry undertaking for at least 6 weeks on a given
topic.
Business Activities are becoming more and more complex, due to which various problems
have been faced in carrying out day to day activities and to become well verse with those
threats and opportunities, I have been given a topic to study and to acquire knowledge about
it.
ACKNOWLEDGEMENT
It is rightly said that Success of one is not the reward of a single-hand but of everyone
I would like to heartily thank my college, METAS ADVENTIST COLLEGE for designing
MASTERS OF BUSINESS ADMINISTRATION program in a way in which I am supposed to take
practical knowledge of the subject along with theoretical aspects.
I would like to show my gratitude to M.S. JERMIAH, President of my college, who has given
me the opportunity to do such training. Its because of him, I am now proficient enough to compete
with the outside Business environment.
I would also like to thank my respectable guides, Mr.MOHAN RAO and MS.RANJITA , who
have cooperated and availed me in my training and have spent their invaluable time for me .
My training would not have been possible without the authorities of my company,
RAHULRAJ MALL accepting me as a trainee in their firm. So, In regard to this training program, I
would like to acknowledge my gratitude to Mr.ABHIJIT DAVE, the general manager of the
company for giving me the opportunity to take training in his well established company. I present
my thanks to all the interviewers who have given me their cooperation in conducting survey.
THANKING YOU
ARIHANT BOTHRA
(MBA :MARKETING)
CONTENTS
PAGE NO.
TITLE PAGE
PREFACE
ACKNOWLEDGEMENT
INDUSTRY PROFILE
5
7
SR. NO.
1.
2.
Retail is the process of selling consumer goods and/or services to customers through multiple
channels of distribution to earn a profit. Demand is created through diverse target markets
and promotional tactics, satisfying consumers' wants and needs through a lean supply chain.
In the 2000s, an increasing amount of retailing is done online using electronic payment and
delivery via a courieror postal mail. Retailing includes subordinated services, such as
delivery. The term "retailer" is also applied where a service provider services the needs of a
large number of individuals, such as for the public. Shops may be on residential streets,
streets with few or no houses, or in a shopping mall. Shopping streets may be for pedestrians
only. Sometimes a shopping street has a partial or fullroof to protect customers
from precipitation. Online retailing, a type of electronic commerce used for business-toconsumer (B2C) transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.
Hard
goods
or
durable
goods
("hardline
retailers")
[2]
automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and
parts for them. Goods that do not quickly wear out and provide utility over time.
Soft
goods
or
consumables[3][4] clothing,
other fabrics, footwear, cosmetics, medicines and stationery. Goods that are consumed
after one use or have a limited period (typically under three years) in which you may use
them.
Arts Contemporary
art
galleries, Bookstores, Handicrafts, Musical
instruments, Gift shops, and supplies for them.
Department store
Department stores are very large stores offering a huge assortment of "soft" and "hard" goods
which often bear a resemblance to a collection of specialty stores. A retailer of such store
carries a variety of categories and has a broad assortment of goods at average price. They
offer considerable customer service.
Discount store
Discount stores tend to offer a wide array of products and services, but they compete mainly
on price. They offer extensive assortments of merchandise at affordable and cut-rate prices.
Normally, retailers sell less fashion-oriented brands.
Warehouse store
Warehouses that offer low-cost, often high-quantity goods piled on pallets or steel
shelves; warehouse clubs charge a membership fee.
Variety store
Variety stores offer extremely low-cost goods, with limited selection.
Demographic
Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy
individuals).
Mom-And-Pop
A small retail outlet owned and operated by an individual or family. Focuses on a relatively
limited and selective set of products.
Specialty store
A specialty (BE: speciality) store has a narrow marketing focus either specializing on
specific merchandise, such as toys, shoes, or clothing, or on a target audience, such as
children, tourists, or oversize women. [5] Size of store varies some specialty stores might be
retail giants such as Toys "R" Us, Foot Locker, and The Body Shop, while others might be
small, individual shops such as Nutters of Savile Row.[5] Such stores, regardless of size, tend
to have a greater depth of the specialist stock than general stores, and generally offer
specialist product knowledge valued by the consumer. Pricing is usually not the priority when
consumers are deciding upon a specialty store; factors such as branding image, selection
choice, and purchasing assistance are seen as important. [5] They differ from department
stores and supermarkets which carry a wide range of merchandise.[6]
Boutique
Boutique or concept stores are similar to specialty stores. Concept stores are very small in
size, and only ever stock one brand. They are run by the brand that controls them. An
example of brand that distributes largely through their own widely distributed concept stores
is L'OCCITANE en Provence. The limited size and offering of L'OCCITANE's stores are too
small to be considered a specialty store proper.
General store
A general store is a rural store that supplies the main needs for the local community;
Convenience store
A convenience store provides limited amount of merchandise at more than average prices
with a speedy checkout. This store is ideal for emergency and immediate purchases as it often
works with extended hours, stocking everyday;
Hypermarkets
Provides variety and huge volumes of exclusive merchandise at low margins. The operating
cost is comparatively less than other retail formats.
Supermarket
A supermarket is a self-service store consisting mainly of grocery and limited products on
non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets
can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR
supermarket.
Mall
A shopping mall has a range of retail shops at a single outlet. They can include products, food
and entertainment under one roof. Malls provide 7% of retail revenue in India, 10% in
Vietnam, 25% in China, 28% in Indonesia, 39% in the Philippines, and 45% in Thailand.[7]
"Category killer" or specialist
By supplying wide assortment in a single category for lower prices a category killer retailer
can "kill" that category for other retailers. For few categories, such as electronics, the
products are displayed at the centre of the store and sales person will be available to address
customer queries and give suggestions when required. Other retail format stores are forced to
reduce the prices if a category specialist retail store is present in the vicinity.
E-tailer
The customer can shop and order through the internet and the merchandise is dropped at the
customer's doorstep or an e-tailer. Here the retailers use drop shipping technique. They accept
the payment for the product but the customer receives the product directly from the
manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to
retail stores and are interested in home shopping.
Vending machine
A vending machine is an automated piece of equipment wherein customers can drop the
money in the machine and acquire the products. Some stores take a no frills approach, while
others are "mid-range" or "high end", depending on what income level they target.
Other types[edit]
Other types of retail store include:
Automated Retail stores self-service, robotic kiosks located in airports, malls and
grocery stores. The stores accept credit cards and are usually open 24/7. Examples
include ZoomShops and Redbox.
Retailers can opt for a format as each provides different retail mix to its customers based on
their customer demographics, lifestyle and purchase behaviour. A good format will lend a
hand to display products well and entice the target customers to spawn sales.
Rank
Company
Country of Origin
Walmart
United States
$464,162
Tesco
United Kingdom
$120,052
Costco
United States
$105,156
Carrefour
France
$103,555
Kroger
United States
$96,751
Lidl
Germany
$87,236
Metro AG
Germany
$85,832
United States
$74,754
Aldi
Germany
$73,035
10
Target Corporation
United States
$71,960
Introduction
The Indian retail industry has presently emerged as one of the most dynamic and fast paced
industries as several players have started to enter the market. It accounts for over 10 per cent
of the countrys gross domestic product (GDP) and around eight per cent of the employment
in India. The country is today the fifth largest global destination in the world for retail.
Several corporates have planned to exploit the opportunities in the Indian retail space, such as
Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs 1.8 trillion (US$
28.94 billion) for the next three years for its petrochemicals, telecom and retail ventures.
With the growth in the retail industry, the corresponding demand for real estate is also being
created. Further, with the online medium of retail gaining more and more acceptance, there is
a tremendous growth opportunity for retail companies, both domestic and international.
Market Size
Indias retail market is expected to double to US$ 1 trillion by 2020 from US$ 600 billion in
2015 driven by income growth, urbanisation and attitudinal shifts, highlighted the Boston
Consulting Group and Retailers Association of Indias report titled, Retail 2020: Retrospect,
Reinvent, Rewrite.
While the overall retail market will grow at 12 per cent per annum, modern trade will grow
twice as fast at 20 per cent per annum, and traditional trade at 10 per cent, according to a
report titled Retail 2020: Retrospect, Reinvent, Rewrite by Boston Consulting Group and
Retailers Association of India.
The retail spending in the top seven Indian cities of India currently amounts to Rs 3.58
trillion (US$ 57.56 billion), with organised retail penetration at 19 per cent in 2014. It is
expected that the online retail will be at par with the physical stores in five years
India is expected to become the worlds fastest growing e-commerce market on the back of
robust investment activity in the sector and the rapid increase in internet users. It is expected
that Indias e-commerce market will grow from US$ 2.9 billion in 2013 to over US$ 100
billion by 2020.
E-tailers are betting on more Indians switching to shopping online, with a projection of 200
million new consumers by 2017, according to a report released last year by Accel India,
Investments
The Indian retail industry in the single brand segment has received foreign direct investment
(FDI) equity inflows to the tune of US$ 275.38 million in the period April 2000January
2015, according to the Department of Industrial Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including consumer electronics
and home appliances, many companies have invested in the Indian retail space in the past few
months. Some of them are:
Paytm plans to set up 30,000 to 50,000 retail outlets where its customers can load
cash on their digital wallets. The company is also looking to enrol retailers - mostly
kirana stores - as merchants for accepting digital payments.
Mobile wallet company MobiKwik has partnered with Jabong.com to provide mobile
payment services to Jabong's customers.
DataWind has partnered with HomeShop18 to expand its retail footprint in the
country. Under the partnership, HomeShop18 and DataWind will jointly launch
special sales programs across broadcast, mobile and internet media to create greater
access of the latter's tablet range.
Amazon Inc and Flipkart India will invest nearly Rs 2,300 crore (US$ 369.87 million)
in the near term as they plans to acquire more customers in the country's fast-growing
online retail market.
FashionAndYou has opened three distribution hubs in Surat, Mumbai and Bengaluru
to hasten deliveries.
Abu Dhabi-based Lulu Group plans to invest Rs 2,500 crore (US$ 401.98 million) in
a fruit and vegetable processing unit, an integrated meat processing unit and a modern
shopping mall in Hyderabad, Telangana.
Government Initiatives
Ms Nirmala Sitharaman, Union Minister of Commerce and Industry, Government of India
has stressed on India building a culture of branding and marketing its products to the rest of
the world. The ministry is also willing to take steps to start a Free Trade Agreement (FTA)
with the European Union (EU).
The Government of India has taken various initiatives to improve the retail industry in India.
Some of these initiatives are:
The Foreign Investment Promotion Board (FIPB) has cleared five retail proposals
worth around Rs 420 crore (US$ 67.53 million) from companies such as Bestseller,
Puma SA and Flemingo. Additionally, the board cleared three 100 per cent singlebrand retail proposals worth Rs 222.5 crore (US$ 35.77 million), suggesting renewed
interest in Indias growing retail market.
IKEA has entered into a memorandum of understanding (MoU) with the Government
of Telangana to set up its first store in India at Hyderabad. IKEA retail outlets have a
standard design and each location entails an investment of around Rs 500-600 crore
(US$ 80.38-96.46 million).
The Government of India is also in the final phase of talks with the states for the
Goods and Services Tax Bill to be implemented. This Bill is seen as a key to
facilitating industrial growth and improving the business climate in the country.
Road Ahead
The share of e-Commerce is growing steadily. Customers have an ever increasing choice of
products at the lowest rates. E-Commerce is probably creating the biggest disruption in the
retail industry and this trend will continue in the year to come. Almost everything is sold on
the internet now and this means that pretty much all of the retail industry faces the challenge
of either being a part of e-commerce or taking it head on.
For better prospects of this industry, as a whole, both organized and unorganized retail
companies should work together to improve the overall retail industry, while generating new
benefits for their own customers.
Also, the retailers should take advantage of digital retail channels (e-commerce), which
would enable them to spend less money on real estate while reaching more customers in tier2 and tier-3 cities. Nevertheless, the long term outlook for the industry remains to be positive
on the back of rising incomes, favourable demographics, entry of foreign players and
increasing urbanization.
Exchange Rate Used: INR 1 = US$ 0.016 as on March 24, 2015
Analyst
Insight
As we mentioned earlier, the store type and the strategy that retailers use plays a big role in
how well the company performs. The first thing to take a look at is what segment of the retail
industry the company is situated in. Is the company a discounter? Department store?
Specialty retailer? The retail category to which the company belongs also helps determine the
following
details
about
the
company:
Competitors - The number and size of direct competitors is important. Ideally, you
want the company to have as little competition as possible, but this rarely happens.
Determine who the direct competitors are and how they are all positioned in the
market. A smaller regional discount store might find it tough to compete with new
Wal-mart stores opening up every month. Take a look at the big picture, find out what
differentiates the company from its competitors. Do they have better prices, service,
or offer higher quality goods than their competition? Grocery stores might find it hard
to differentiate themselves from competitors: after all, an apple is an apple. Higherend retailers, however, may have an easier time as they try to compete on service or
quality.
Size of the Market - Determining the overall size of the market gives us an indication
of the potential for the market. If you had the choice between a company with a 25%
share of a $10 million market or a 25% share of a $1 billion market, which one would
you chose?
Other Factors - Some analysts even go as far as evaluating the retail strategy that the
companies use. For example, does the company have a fresh look? Are their stores
clean, bright and fun to shop in? Swedish retailer Ikea has done an excellent job of
designing their stores for visual appeal, and quite possibly it has equated to very
strong sales.
Also, what are the store demographics? Does the retailer appeal more to younger people (who
don't have the money), or does it appeal to the parents (who do have the money).
The performance of the economy as a whole obviously has a great impact on the retailing
industry. Retailer profits have a close correlation with the overall performance of the
economy.
Looking
at
the
trends
for
growth
in gross
domestic
product (GDP), inflation, consumer confidence, personal income and interest rates are
extremely important when thinking about investing in the retail industry. You might not think
that your shopping habits are sensitive to interest rate fluctuations, but they are. While a 50basis-point drop in interest rates might not give you the sudden inkling to go drop $1,000 at
Macy's, for the economy as a whole, it has a big effect on spending patterns.
After looking at the macroeconomic factors and the industry as a whole, it is time to delve
into the financial statements. The biggest problem for analyzing these companies is the lack
of consistency between accounting procedures. It takes a careful eye when comparing
performance ratios and figures from one company to the next. For example, some companies
tend to include shipping and storage in their cost of goods sold, while others list it as a
separate expense. This is why you must read all the notes to the financial statements and gain
a better understanding of what is and isn't included in the various figures. (To learn more,
read Footnotes:
Start
Reading
The
Fine
Print.)
Aside from earnings and revenue growth, one important thing to look at is the markup
percentage for the retailer. This is also known as the gross profit margin (sales minus cost of
goods sold). Unfortunately, there is not one margin that every retailer should use: discount
stores generally have lower margins compared to other general merchandisers. When
comparing these numbers, higher margins are usually better because it means the company
has more room to work with during price wars, intensified competition or when demand
slows.
Inventory is also a key figure to pay close attention to as without it, retailers don't have
anything to sell. A company's inventory situation depends on what type of products it offers.
For example, the inventory turnover for a grocery store (with perishable goods) will be higher
than that of a department store. Compare the turnover rates of direct competitors: those with
higher rates tend to have fresh new products that sell more frequently. Keep in mind that an
increase in inventory is not always a cause for alarm. Sometimes inventory will increase as a
result of new stores opening or the expansion of existing stores. Therefore, compare the
increase in inventory to the growth of new stores to see if there is more to the story. (For
more
on
inventory
evaluation,
read Measuring
Company
Efficiency.)
As one final caveat (beware) when looking at performance data and financial statements for
retailers is to compare them against the same period for the previous year. Holiday spending
and other seasonal factors can mean wild swings in financial results from one quarter to the
next. Compare the Christmas season results for the company over the same season from
previous years. There isn't one store out there that doesn't see an increase in sales during the
month of December, so don't be fooled by comparisons to preceding months. This is why
year-over-year same store sales figures are so widely followed by investors and analysts.
When retailers release their same store sales figures on the first or second Thursday of every
month, they are usually compared to the same time period from previous years. To take this
one step further, compare sales data for more than just one month. Aggressive marketing or
discounts can skew data for one particular month; therefore, you need to look at the overall
trend
in
same
store
sales
over
several
months.
3. Power of Buyers. Individually, customers have very little bargaining power with
retail stores. It is very difficult to bargain with the clerk at Safeway for a better price
on grapes. But as a whole, if customers demand high-quality products at bargain
prices, it helps keep retailers honest.
5. Competitive Rivalry. Retailers always face stiff competition. The slow market
growth for the retail market means that firms must fight each other for market share.
More recently, they have tried to reduce the cutthroat pricing competition by offering
frequent flier points, memberships and other special services to try and gain the
customer's loyalty.
RECENT TRENDS
Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
India is rated the fifth most attractive emerging retail market: a potential goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at 24%
More successful in cities in the south and west of India. Reasons range from
differences in consumer buying behavior to cost of real estate and taxation laws.
Rural markets emerging as a huge opportunity for retailers reflected in the share of the
rural market across most categories of consumption
o ITC is experimenting with retailing through its e-Choupal and Choupal Sagar
rural hypermarkets.
o HLL is using its Project Shakti initiative leveraging women self-help
groups to explore the rural market.
o Mahamaza is leveraging technology and network marketing concepts to act as
an aggregator and serve the rural markets.
IT is a tool that has been used by retailers ranging from Amazon.com to eBay to
radically change buying behavior across the globe.
RahulRaj Mall
RahulRaj Mall provides an excellent opportunity for the Retailers to take positions in well
developed Gaurav Path of Surat. The retail space in RahulRaj Mall will provide the business
opportunity for all Retailers owing to its strategic location in the business centre of city with
presence of premium residential areas. RahulRaj Mall provides the early mover advantage to
all the Local, National and International brands as they are yet to explore the potential of the
Business Address owing to the absence of quality organized retail spaces.
Overview
RahulRaj Mall is located on Gaurav Path surrounded with best of hotels, Premium
Residences and Business centers of Multi-national companies and is well connected
with every part of SURAT city.
RahulRaj Mall, enjoys a frontage of around 300 feet on Gaurav Path & 700 feet on
Off-Dumas Road, is rectangular in shape with regular edges.
RahulRaj Mall enjoys excellent location and good connectivity with the International
Airport (3 km), Existing Bus & Railway Stations (10km) and Dumas Beach (7 km).
Features
4 Lac sq ft of Shopping, Dining and Entertainment for Entire Family & Friends.
8 screens Multiplex for World class experience of Movies & Fast-food with PVR.
20,000+ Sq ft of Pure Veg Dining & Food court with Excellent Sit-out.
1,50,000 sq ft of parking spaces for over 700 Four Wheelers & 1000 Two Wheelers.
Specifics
The property is developed by RahulRaj Estates Pvt Ltd, headed by Mr. Raj Shah
(Director-Business Innovation), a leading real estate developer having remarkable
presence in Mumbai, Pune & South Gujarat.
The planning and construction of the building shall adhere to the National Building
Code (NBC) and all applicable state and local level byelaws/ regulations.
The Structure Designer of RahulRaj Mall is Mr. Jalilkumar Shaikh, a leading name in
Surat.
The Architect for RahulRaj Mall is 'Sanjay Joshi & Associates', well-known team in
Surat.
Site Layout
Plan RahulRaj Mall
:RahulRaj Mall
RahulRaj Mall is well located on Gaurav Path, a prosperous business & entertainment
center of the city connecting with International Airport & all major establishments
including upcoming areas of SURAT.
The entire catchments of Gaurav Path is Parle Point, Ghod-Dod Road, Citi-light
Road, Athwagate, Magadalla, Vesu, & Hazira. These area consist of premium residency
with population of Highest Income groups & Upper Middle class of income groups,
well spread in the radius of 2 to 5 kms.
The Gaurav Path is witnessing rapid transformation with diversity of culture, business
amenities and infrastructural developments, like International Airport & Flyovers
connecting with all major roads of SURAT.
The Gaurav Path is further witnessing a growth in real estate with the development of
over 5000 Premium Residences promising Ideal Living Destination for High Profile
Income groups.
The catchments' requirement is competitive formal retail environment with worldclass amenities for National & International brands to revolutionize traditional buying
behaviors.
Many Local and National retailers are securing high street positions in the immediate
catchment owing to increased aspiration levels of the population and penetration of
formal retailing in the vicinity of Gaurav Path.
The mall has a potential catchment of around 10 Lac people. The retail space of 5 Lac
will able to sustain in the defined catchment.
Thus RahulRaj Mall will be able to suffice the current retail demand of the population
and will capitalize on its Worthiness.