dA

Summer Training Project

On
Titled
Development of retail industry in india with special reference to city mall kota
Training Undertaken At
Pandya Group (City Mall)
Submitted in partial fulfillment for theAward of degree of
Master of Business Administration

Submitted By: -

Submitted To:-

PankajTrivedi

ShwetaSolanki Maam

MBA IIIsem

Project Guide

Year 2013 2014

Modi Institute of Management & Technology, kota

PREFACE
Changing lifestyles are prompting changes in the retail environment. Paucity of time
and an increase in disposable incomes have created a need for new types of retail
formats. This means that retailers will have to become better at knowing their
customers and predicting their needs and wants. As the socio-economic structure in
India changed so did the field of retailing. A once unorganized sector became
transformed into an organized sector in the last decade of the 20 th century as
companies, both old and new, entered the arena.

High volume malls. Shopping outlets, supermarkets and hypermarkets

mushroomed, requiring the application of modern management techniques to run
them efficiently and effectively. Retail success in todays competitive environment is
all about getting the right product to the right place at the right time, at the lowest
cost possible. This requires retail managers to be adept at planning, merchandising,
pricing and promotion. A retail manager needs to know,Which not only does justice to
the stipulated curriculum at the entry level but also fulfills the need of Retail
Management.

In the course of making this report I have received much encouragement from
my guide and seniors. I gratefully acknowledge the significant contribution to
ShwetaSolanki Maam for editing majority of this report.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide Ms.ShwetaSolanki Maam,
Designation Project Guide, Deptt.Management., for guiding me right form the
inception till the successful completion of the project. I sincerely acknowledge
him/her/them for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support he/she/they had
provided to me with all stages of this project.
I would also like to thank the supporting staffmanagement Department, for their help
and cooperation throughout our project.

(Signature of Student)

Name of the Students

PankajTrivedi

Executive Summary
The Indian retail industry is now beginning to evolve in the line with the
transformation that has swept other large economies. It witnesses tremendous
growth with the changing demographics and an improvement in the quality of life of
urban people. The growing affluence of Indias consuming class, the emergence of
the new breed of entrepreneurs and a flood of imported products in the food and
grocery space, has driven the current retail boom in the domestic market.

CONTENTS

INTRODUCTION TO THE INDUSTRY

INTRODUCTION TO COMPANY
VISION AND MISSION

PROJECT PROFILE

Title of the Study

Duration of the Project
Objective of Study

RETAIL MARKETING
INTRODUCTION
The word Retail is derived from the French Work. Retail meaning to Cut a piece
off or to break bulk A retailer is a person, agent, agency, company, or an
organization which is instrumental in reaching the goods, merchandise, or services
to the ultimate consumer. Retailers perform specific activities such as anticipating
customers wants, developing assortments of products, acquiring market information,
and financing. A common assumption is that retailing involves only the sale of
products in stores. However, it also includes the sale of services like those offered at
a restaurant, parlor, or by car rental agencies.
Retailing includes all the activities involved in selling goods or services directly
to the final consumer for personal or non-business use.
In other words, retailing is the sale of goods and services to the ultimate
consumer for personal, family or household use. Thus, retailing involves more than
selling tangible products. It includes every sale of goods and services to the final
consumer.
Retailing involves:

Identifying target markets (customers)

Interpreting needs of the targeted customers
Developing good assortments of merchandise
Presenting them in an effective manner so that consumers find it easy
and attractive to buy.

Retailing differs from marketing in the sense that it refers to only those activities,
which are related to marketing goods and/or services to final consumers for
personal, family or household use. Whereas marketing, according to American
Marketing Associations, refers to the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.

Thus, any organization selling a product or service to final consumers whether a

manufacturer, wholesaler or a retailer, is doing retailing. It does not matter how the
goods or services are sold, i.e., by person, mail, telephone, vending machine, TV, or
internet. Also, it does not matter where the goods and services are sold, i.e., in a
store, on the street, or in the consumers home, or in the virtual world (internet).
Retailing is one of the most important industries in any country employing major
share of workforce. Selling whether in a store or at the doorstep requires many
people. In other words, retailing is labor intensive. Probably many more people are
needed to sell most products than to manufacture them. While automation has been
widely adopted in manufacturing, retailing has yet to see its presence on a large
scale. Some retailers have introduced self-service. Some other have stepped into
mail order. But in India, these methods are not commonplace. Only a few retailers
have brought such changes. Most other stick to counter sales or personal attention.

PLACE OF RETAILING IN A DISTRUBITION CHANNEL

When we buy a product, we rarely buy it directly from the manufacturer. Most
producers of goods and services do not sell their product directly to end or final
users. Between customers and the manufacturers are number of intermediaries.
Manufact

Wholesal
Natl.
Local

Natl.
Local

Retailer

Custom
ers

Wholesa

Custom
ers

Local

Local

Retailer

Retailer

Custom
ers

Natl.

Custom
ers

Custom
ers

CHARACTERISTICS OF RETAILING

Retailer

Custom
ers

Custom
ers

Retailer

Custom
ers

Custom
ers

Retailing can be distinguished in various ways from other businesses such as

manufacturing. Retailing differs from manufacturing in the following ways:

There is direct end-user interaction in retailing.

In is the only point in the value chain to provide a platform for promotions.
Sales at the retail level are generally in smaller unit sizes.
Location is a critical factor in retail business.
In most retail businesses services are as important as core products.
There are a larger number of retail units compared to other members of the
value chain. This occurs primarily to meet the requirements of
geographical coverage and population density.

IMPORTANCE OF RETAILING IN THE ECONOMY

The retail sector is particularly important because retailing is the final link in the chain
of production which begins at the extractive stages, moves through the
manufacturing processes and ends by the distribution of goods and services to the
final consumer.
Retailing accounts for about 15-20% of the organized workforce in any
developed economy. It is the second largest employer in the India after agriculture.
There are about 6 million retail establishment in India. Of which, 4.1 million (70%)
sell food products, and related items. An interesting research in this areas has shown
that grocery stores (56% of all retail outlets) and general stores (13%) dominate rural
India. There are 1.8 million retail outlets in urban India. Of which more than 50%
earn between Rs. 7,500.00 to Rs. 25,000.00 daily. Approximately 6.6% of urban
adults in India are shop owners. There are about 21% outlets in urban area engaged
in service retailing. Though no official data is available, the given above figure
indicate that this sector may be employing about 15-20% of the organized work
force, which is in line with global averages. Retailing accounts for an impressive part
of Gross Domestic Product (GDP). The year 1997-1999 has been a slow down in
economic growth in the GDP growth rate pegged at 4 to 5 %. Total retail sales in
India reached Rs. 5793 billion in 1996 representing around 53% of GDP and 69% of
consumers expenditure. Retail sales per capita was Rs. 6297 in 1996.
In US the sales of retail sector is about US$2 trillion. In India, if private final
expenditure is taken as an indicator, the total retail trade in India could be about Rs.
8

7,00,000-Rs. 8,00,000-crores or US$ 160-180 billion (excluding fuels).Retailing is

also important, as it is an important tax collection point for the government.

FUNCTIONS OF RETAILERS
Retailers have multiple functions. At one end they create market for consumption of
the goods and services and on the other hand generate employment for millions of
people. Broadly speaking retailers perform following functions:

Understanding customer needs and wants

Providing an assortment of product or services to consumers
Breaking bulk
Providing services to consumers
Holding inventory, and
Providing information to suppliers.

Understandin
g customer
needs and
wants

Breaking bulk

FUNCTIO
NS OF
RETAILER
S

Providing
services to
consumers

Providing
information to
suppliers

Functions of Retailers

UNDERSTANDING CUSTOMERS NEEDS AND WANTS

10

The first and foremost function of a retailer is to understand its customers; their
needs and wants. It is only then other functions of retailer can be performed in a
manner satisfactory to the customer such as providing an assortment of products,
providing services etc, once the retailer understand what products and services are
desired by customers, other things follow.

BREAKING BULK
Manufacturers normally send their products in bulk to retailers to minimize
transportation cost. The retailers offer the product in smaller quantities to suit
individual consumers requirements. Breaking large shipments into smaller quantities
is called breaking bulk. Now the trend towards organized retailing is developing as a
result retail chains are established in an identified geographical location. These chain
stores purchase and distribute their products in such a manner that there is a
minimum loss of time and money in transportation of products to various stores.
They in turn provide the profits to the customers in a way by lowered minimum retail
price.
PROVIDING SERVICES
Retailers offer number of services to the consumers. Retail outlets may provide
some or all of these services to consumers. These services could be:

Providing credit and hire-purchase facilities (Example:- Many automobile and

consumer durable retail outlets provide this facility)

Providing facilities like home delivery. (Example:- Many super markets provide

this facility)
Providing product guarantees, after-sales service and dealing with customer

complaints (Example:- Automobile dealers)

Providing information and answering customers queries. (Example:- Sales
people of retail outlet)

HOLDING INVENTORY

11

A major function of retailers is to keep inventory, so that customers can buy the
products when they want. So as customers, we do not have to keep a large
inventory at home, knowing fully well that the product will be available at a relatively
stable price from retailers when we want them. Thus the customers money is not
blocked up in a large inventory and can be put to some other use or in bank earning
interest.

PROVIDING INFORMATION TO SUPPLIERS

As the retailer who is the final interface to consumer, it has the benefit of direct
consumers reaction. So many manufactures collect customers response to their
products and services from retailers.

PROVIDING AN ASSORTMENT OF PRODUCTOR SERVICES TO CONSUMERS

Retail outlets keep large variety of products and services. Around 15000 different
items produced by different companies in a typical super market. Even a small kirana
store has number of brands of soaps, toothpastes and other goods. Provision of
such large number of assortment enables consumers to choose a product based on
his/her requirements. In other words, providing assortment of products or services
provides choice to consumers. While manufacturers specialize in producing special
types of products, retailers provide assortment of products from different
manufactures.

INTRODUCTION TO COMPANY
12

Pandya group the proficient pioneers of the grand Kota City Mall project have
diversified business establishments dealing with Petrol pumps, Vehicle finance,
Hostels and Real Estate. The group has its roots dating back to 1860 and has since
then achieved numerous milestones. The ventures undertaken by the group have
success stories which are a reflection of its farsightedness, profound business
acumen and commitment.
Today the group is growing from strength to strength under the dynamic leadership
of father son duo, Mr. Devendra Kumar Pandya and Mr. VirendraPandya. Being a
trendsetter, the Pandya Group is once again all set to create a landmark for the Kota
City with their latest venture KOTA CITY MALL.
PandyaGroup, stands for quality construction and honoring commitments to the
highest of ethics and standards. We envision satisfaction beyond comparison to our
customers and in building relations.
The innovative approach of the Group has given new dimensions to the real estate
market of Rajasthan. It has brought to the customer quality and comfort at affordable
prices.
A trusted name in the business of constructions and developing the nation through
its world class structures. The Pandya Group has a unique business model with
earnings arising from development and rentals. Its exposure across businesses,
segments and geographies, mitigates any down-cycles in the market. Pandya Group
has also forayed into infrastructure, SEZ and hostel businesses.
Pandya Group is now geared up to bring a paradigm shift in lifestyles of the
Rajasthanies through their world class structures.

VISION AND MISSION

13

OUR VISION
We follow a tradition of personal and professional integrity to provide people with the
best of facilities, luxurious amenities and salubrious environments. Flawless
designing, quality construction and superior specifications are the major thrusts for
this real estate investment company.
Our vision is to gain the loyalty of our customers by delivering more cost effective
projects. Our vision is to gain complete customer satisfaction. We followed this
thumb rule from the beginning and for this reason, our virtues have traveled through
generations and we have established a gigantic corporate image.
OUR GOAL
At Pandya Group, we follow a tradition of personal and professional integrity. We
have set high standards for ourselves and are determined to reach our goals without
compromising our values and beliefs.
The main objective of Pandya Group is to provide more and more innovative as well
as eye-catching projects with magnificent and modern lifestyle amenities.

14

Chapter 1: RETAILING THE SUNRISE INDUSTRY

15

1. Introduction to the Project Report

1.1 Title of the Study
Development of retail industry in India with special reference to city mall
Kota
Retail is Indias largest industry and arguably the one with the most impact on the
population. It is the countrys largest source of employment after agriculture, has the
deepest penetration to rural India, and generates more than 10% of Indias GDP.
However, retailing in India has so far, been mostly in the hand of small disorganized
entrepreneurs. It is also Indias least evolved industries. In fact, it is not even
considered a real industry. The industry suffers from lack of management talent, poor
access to capital, unfavorable regulation and denial of access to best practices. The
Indian retail industry is only now beginning to evolve in line with the transformation
that has swept other large economies. Fifty years of restricting the consumer goods
industry, a national mindset which favored denial over indulgence, and a fractured
supply chain for agricultural products have all contributed to prevent the
development of modem tenants based on scale advancements and consumer
preferences.India has some 12 million retail outlets, but many of these act merely as
subsistence providers for their owners and survive on a cost structure where labor
and land is assumed to be free and taxes nill. Compare this with the global retail
industry, which is one of the worlds largest organized employers, is as the cutting
edge of technology, and which leverages scale and scope to offer value added
services to its customer.
However, only recently has there been an awakening in this sector, with more
organized retailers starting to make an impact. The liberalization of the consumer
goods industry, initiated in the mid-80s and accelerated through the 90s has begun
to impact the structure and conduct of the retail industry. Backed by changing
consumer trends and metrics, liberalization in mindsets driven by media, new
opportunity and increasing wealth, retailing in India, presents a vast opportunity for a
variety of business, real estate, store design and operations, visual merchandising
logistics and communications, B2C service providers, and FMCG companies who
can add to their offers by partnering this revolution.

16

The Indian Retailing industry stands poised to take off into the 21 stcentury, it is one of
the fastest growing sectors in the nation that caters to the worlds second largest
consumer market. Retail boom is unbolting. India have five million retailers with a
business volume of $ 180 million growing at 5 to 7 percent a year. The middle class
drives retailing anywhere in the world and this segment should have reasonable
income. The next driver is availability of variety of goods, products and brands. The
third one is sense of awareness.
In other developing economies, this transformation has already begun. In many of
these countries, organized retail already has a 40 percent share of the market,
compared to Indias current levels of 2 percent. As India goes through this
transformation, new businesses with sales of 1 billion 2billion US $ will be created
in grocery and of 250 million 500 million US $ in apparel. Smaller but still
interesting opportunities will be created in other sectors like books, electronics and
music. This transformation will also impact the supply chain in agriculture, the tax
collections from trade and the way people shop.
1.2 DURATION OF THE PROJECT
The project have been taken
Objective of the study
The overall objective of retail marketing is creating and developing services and products that meet
the specific needs of customers and offering these products at competitive, reasonable prices that
will still yield profits. Businesses must realize that, in retail, the customer lies at the center of any
organization's marketing efforts, determining the overall success of the product or service.

Make

the Product Known

Increase Customer Loyalty
Improve Direct Marketing
Scope of retail marketing
The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next
5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is
8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to
US$ 608.9 billion in 2009 from US$ 394 billion in 2005.
The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010.
There are under construction at present around 325 departmental stores, 300 new malls, and 1500
supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market.

17

The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For
the new generation have preference towards luxury commodities which have been due to the strong
increase in income, changing lifestyle, and demographic patterns which are favorable.
The scope of the Indian retail market have been seen by many retail giants and thats the reason that many
new players are entering the India retail industry. The major Indian retailers are:

Pantaloons Retail India Ltd

Shoppers Stop

Bata India Ltd

Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail giants are also entering the
Indian retail market. They are :

Tesco

Metro AG

Wal- Mart
The scope for growth in the Indian retail market is seen mainly in the following cities:

Mumbai

Delhi

Pune

Ahmedabad

Bangalore

Hyderabad

Kolkata

Chennai
The scope of the Indian retail market is very vast. And for it to reach its full potential the government and
the Indian retailers will have to make a determined effort.

1.1

Overview of the Global Retail Industry

Retail: World largest Industry

Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of
financial industries $ 5.1 trillion. It is also home to a number of the worlds largest
enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top
18

500 companies are retailers. The industry accounts for over 8 percent of the GDP in
Western Economies.

Retail: Largest private industry in the world economy

A study by Mc Kinsey states that organized retail accounts for just around 2 percent
(out of which modern retail formats accounts for 7 percent of trade) presently is set
to grow at exponential exceeding 35 percent. Fitch estimates the current share of
organized retail to grow from 2 percent presently to around 15 to 20 percent by 2010.

Table 1:
Retail

Consumption US $ billion

Existing Companies in the organized sector

areas
Food Retailing

130

Food Bazaar (Pantaloon) Food World

Clothing & Apparel

12

Subhishka.
Pantaloon Westside, Shoppers Stop

Jewelry, Watches

Tanishk, Titan, Gold Bazaar (Pantaloon)

Home Furnishing

Home Store, Arcus (Pantaloon)

Foot wear

1.7

Bata, Woodland

Beauty Care

3.6

VLCC, Health & Glow

Source: Economic times industry report

Traditionally most retailers have had very localized operations. This localized nature
of the industry is changing as retailers face low rates of growth and threatened
profitability at home. New geographies will help them sustain top-line growth as well
as permit global sourcing. Profits in retail have steadily been rising and have
generated 18 percent shareholder returns between 1994 and 1999. Significantly,
19

retail is also one of the worlds largest employers, accounting for instance 16 percent
of the US workforce, Poland 12 percent, China 8 percent, India 10 percent and
Brazil 6 percent. Factors such as scale in sourcing, merchandising, operational
effectiveness and ambience have driven the spread of organized retail. Grocrey,
electronic are examples of categories that compete on the strength of better pricing,
which in turn is driven by superior sourcing and merchandising and cost-efficient
operations. Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these
fields.
Over the last few decades, retail formats have changed radically. The basic
department stores and co-operatives of the early 20 th century have given way to
mass merchandisers, hypermarkets, warehouse clubs, category killers, discounters
and convenience stores. Each of these formats has been driven by marketers need
to offer relevant, distinctive and economic propositions to an evolving consumer
base.
Global retailers have also reached a position of strength that enables their brand to
be leveraged across a wide range of services. Many of them have expanded their
offering, over the years to include fuel retail, car retail, convenience services and
personal financial services. This has put them in a position where they are not only
beginning to capture growth from geographical expansion, but are also entering
large new areas of business.
The recent evolution of the internet has helped further broaden the scope of
operations of large retailers. Further, a large number of retailers are pursuing
innovative

aggregation

and

supply

chain-streamlining

initiative

using

B2B

technology.

Key Points of Indian Organized Retail Industry

Potential to be the third largest economy in terms of GDP in next few years.
It ranks high amongst the top 10 FDI destinations of the world.
Fastest growing tourist market in Asia.
World bank states, India to be worlds second largest economy after China by
the year 2050.
Stable and investor friendly Central Government at the helm of affairs.
Introduction of Value Added Tax or VAT and tax reforms.
High degree of professionalism and corporate ethics.
20

Excellent Investment opportunities in Indian retail sector and in allied sectors;

sure and high returns on investments.
To invest US $130 billion for the development of infrastructure, by year 2010.
Bullish stock markets.
Hordes of foreign investors are thronging in to invest in Indian retail markets.
Highly educated English speaking young workforce.
Vibrant and multi cultured cities.
Huge opportunity exists, especially in semi-rural and rural areas.
till date the second largest employer after agriculture sector, for the huge
semi-skilled Indian population.
Offers highest shop density in the whole world.
Having almost 1, 20,000 shops, across the length and breadth of the country

21

Chapter 2: RETAILERS AND RETAIL FORMATS

22

23

Departmental stores may be a comparatively recent phenomenon in India, with a

specially created ambience making shopping an experimental affair. Indeed, we are
even beginning to demand places where we can avail the luxuries of spending the
whole day in one place, taking advantage of a bouquet of services in which shopping
is only a part. Therefore, you can browse window shop, make purchases, break off
for a meal, take in some entertainment, and listen to music.
Retailers in India like abroad in diverse form such as street vendors to Large groups
like ABRL, Bharti, Trent, Reliance retail, Shoppers, Lifestyle, Future group, RPG to
Multiplex chains etc. are few names in long list and different formats. Each type of
retailer survives and makes profit by satisfying their target group of customers in
most convenient and efficient manner.

2.1 CLASSIFICATION OF RETAILERS

Because there are so many different kinds of retail firms, classifying them all into one
neat system becomes difficult. We can use different bases for classifying retail firms.
Different types of classifications are explained here.

2.1.1 LEGAL FORM

The three basic legal forms of ownership are sole proprietorship, partnership and
limited liability company (private or public).

Classification of Retailers Based on Legal Form

Proprietorship

Proprietorship

2.1.2 ORGANIZATIONAL STRUCTURE

24

Limited
Company
(Private or

These are three operational structures: the independent trader (usually operating
only one retail outlet, the multiple or chain store and the co-operatives.
Classification of Retailers Based on Operational Structure

Independent
Traders

Chain Stores
(Multiples)

Co-operatives

2.1.3 RANGE OF MERCHANDISE

Some retail businesses offer a wide range of goods. Examples of these include
variety stores like Marks & Spencer or department stores like Harrods.

Classification of Retailers Based on Range of Merchandise

Variety Stores (Departmental

Stores)

Specialty Stores (Niche

Retailers)

2.1.4 DEGREE OF SERVICE

Although many retail outlets have been converted or built to self-service of selfselection standards, there are other which offer their consumers services such as
delivery, credit, gift wrapping, repairs, etc. It is interesting to note that many former
25

self-service retailers are now looking at ways of gaining competitive advantage by

adding new customer services.
Classification of Retailers Based on Degree of Services

(LOW)

(HIGH)

Self Service & Self

Selection

Large Number of Consumer

Services such as high credit,
home delivery etc.

2.1.5 PRICING POLICY

Some retailers choose to emphasize low price rather than the service element of
their retailing mix. Aldi, the German food retailer, expanded very rapidly in the late
1980s by pricing below the competition. Others choose to price above the
competition knowing that they will generate business on the basis of some other
attribute such as convenient location or exclusive image.
Classification of Retailers Based on Pricing Policy

Lower Price (Discount

Stores)

High Price (Convenience

Stores)

2.2 TYPES OF RETAILERS BASED ON MERCHANDISE AND

PRICING
In Indian context, these classifications may be new or developing in the form and
hence we cannot distinctly identify a store by these typical classifications. These are
departmental stores, speciality and discount stores.
26

2.2.1 DEPARTMENT STORES

A department store is defined as a large store selling

A broad variety and deep assortment (to understand breadth and depth of

assortment)
Offer considerable customer services and physically separate departments.

A departmental store is organized into departments selling clothing and accessories,

home furnishings and furniture, toys and games, consumer durables, and
kitchenware.
With the success of the hypermarket in Hyderabad, RPG is looking at establishing a
wholesalers chain throughout the country. In the next five years, RPG retail is
planning to set up 12 to 15 hypermarkets in India. After all Gaint has been attracting
retailers who prefer quality and good profit margins. According to Mohammed Afzal,
a retail shopkeeper from Musheerabad area, the store offers single, multiple and
annual rebate on the goods bought, which is the core attraction for us, Adds another
retailer, Mr. Raythaya, from Mehdi: The priced of the product solely depends upon
the quantity we buy. If we buy large quantity, the price is very attractive.
Some of characteristics of Department Store are:

Located in central market area or a major shopping centre, locations

supported by potentially large catchments.

Availability of parking space.
Freedom for the customer to move around the store and view.
Relatively high prices with margins large enough to cover heavy staffing, the

range of services offered and high accommodation costs.

Provision of a large number of specialized goods in one location, which allows

some associated sales.

Availability of personal assistance in shopping, added customer services and

amenities.
Special staff expertise in particular products demonstration.

2.2.2 SPECIALTY STORES

27

A specialty store has a narrow product line with deep assortment (i.e., has more
depth in the same product category) and provides a high degree of customer
services.
A retail store selling a great variety of a particular characteristic group of
merchandise is known as an Emporium (Saree emporium, art emporium, etc.)

2.2.3 DISCOUNT STORES

A discount store is a general merchandise retailer that offers broad variety of
merchandise, shallow assortment, limited service and low price. Discount stores
offer lower prices due to limited service and low cost locations. Discount stores tend
to have characteristics such as

Very low prices (value for money)

Low gross margins
High degree of self-service (no frills attached)
Low-cost fittings.
No free services, such as delivery
Reliance on heavy advertising in nearby large population centers
Relative isolation of locations from conventional shopping areas with
consequently low rents predominantly in edge-of-town sites.

The examples of discount store chains are Wal-mart and K-mart. In India, so far
discount stores have not appeared on retail scene in a big way. The reasons are
three fold. Unlike most western countries, Indian manufacturers have much higher
bargaining power with their retailers. As there are very large number of small
retailers and no retail association with the influences negotiate with the
manufacturers. The other reason is that retailers themselves do not have economic
of scale to offer discounts on their own. In general, merchandise retailing, factors like
MRP prescribed pricing and single countrywide pricing policies adopted by most
organized vendors deter the growth of discount stores in the country.
Modern retail formats will have 10-15 per cent of total market in the next ten
years and while all formats will co-exist, large discount stores could be front runners
in this evolution. Says Raghu Pillai President and CEO, RPG Enterprises. The Rs.
6,000-crore, RPG group of Food world, Health and Glow and Music World fame,
opened its first discount store by the name of Giant early this year. The response
28

has been fantastic and we are growing month on month. If you look at the list of
top retailers in the world quite a few would be discounters.around 60 percent of the
business abroad comes from this format. Internationally, the largest retailer in the
world Wal-Mart is a discounter, says Kishore Biyani, MD Big Bazaar.

2.2.4 SUPER MARKETS, SUPERSTORES AND HYPERMARKETS

A super market is a self-service food store offering groceries along with other
merchandise for household maintenance and laundry, etc. and size of under 25,000
square feet. They are relatively large, low-cost, low-margin, high volume, self service
store. Number of supermarkets has come up in most cities in last few years. A typical
Indian super market is about 3000 sq. ft.
A shopping mall is an arrangement of retail stores and other places for leisure
time activities such as dining, entertainment, etc., selected on their contribution to an
overall merchandising plan. A mall is spread over a large area of more than 2,00,000
sq. ft. and runs as an integrated business by an individual or an organization, to
which independent retailers pay for opportunities to participate.
A shopping centre or a plaza is a configuration of five or more tenant spaces of
approximately, 1,000 sq. ft. each used for retailing developed under one building
plan in such a way to have a unified character. (Kannaiya shopping center in Linking
Road, Mumbai, Fountain Plaza Egmore, Chennai, BasantLok in VasantVihar, New
Delhi.)

2.3 TYPES OF RETAILERS BASED ON OPERATIONAL

STRUCTURE
These are types of retailers which include independent traders, multiple chain stores,
cooperative societies, concessionaires, and franchising. They are different from the
merchandise-based stores because they have independent supply merchanisms and
hence price variations are high.

2.3.1 INDEPENDENT TRADERS

29

A single individual or sole trader owns the majority of shops in India. Even in US
more than 90 % of retailers own and operate single stores. Independents are defined
as retail organizations (other than co-operative societies) with less than ten branches
or no branches. The usual number of branches controlled by the sole trader is one or
at the most two. A family mostly owns this type of retail format with high dependence
on the owner. Kirana shops, drug store, STD/PCO outlets etc. are very good
examples of such retailers.
Advantages of the Independent Traders:
The main advantages of Independent traders are:

As the owner (management) has direct contact with the customers and

therefore can quickly respond to their needs.

Independent traders can be very flexible owing to their small size.
They are not bound by any bureaucratic rules that may restrict retail chains or
cooperative society managed stores. So, they can free to locate their store
wherever they want and the type of merchandise they sell.

Disadvantages of the sole trader

These may summarized as follows:

Price competition from retail multiples who can reduce their costs through bulk

buying and other economies of scale.

Lack of specialist expertise in retail functions, e.g. buying, in store
merchandising, accounting, or possibly lack of time to carry them out
adequately. Single store retailers have to rely on owner-managers capabilities

to make broad range of retail decisions.

The cost of advertisement and promotions is very high for a single store.
Lake of capital expand and improve the business. Especially in case of
networking and use of IT for development of business, the expenditures are

too high for a single store.

Inertia the small trader may not wish to expand because of the extra

problems expansion brings.

Due to high accommodation costs the independent often lacks the advantage
of being in a large shopping centre with heavy pedestrian traffic generation.

30

Changing shopping habits brought about by increased car usage has

concentrated purchases in large well-located one-stop stores in cities.

2.3.2 MULTIPLE OR RETAIL CHAIN STORES

The large multiple retail organization is invariably of the joint-stock company
type (either private or public) and therefore in common ownership with a
degree of centralized control. A large multiple is defined as an organization
with ten or more branches. This form is strongest in department stores,
speciality stores, variety stores, food stores, drug stores etc. their size allows
them to buy in large quantities at lower prices, and they can afford to hire
specialist to deal with pricing, promotion, merchandising, inventory control etc.

2.3.3 CO-OPERATIVE SOCIETIES

The co-operative movement began in Rochdale in 1844. A co-operative
society is defined as a co-operative retailing organization trading on co-operative
principles, affiliated to the National Co-operative Movement (through the Cooperative
Union) and registered under the Cooperative Societies Acts. Because many retail
cooperative societies operate branches they are in this respect similar to multiple
chains, but in the form of organization and control they are in many ways quite
different.

In

The principles of the Movement applicable to retailing are:

Voluntary and open membership

Democratic control; one member, one vote
Payment of limited interest on capital
India

cooperatives

aggregate

at

least

Rs.

400

Crores

annually.

SahkariBhandar and Apna Bazaar are two leading Mumbai based cooperative
chains. Delhi has couple of large cooperatives. Mother Dairy of Delhi even
distributes fresh vegetables from its milk distribution centres. Milk cooperatives
are believed to have a substantial 10 percentage share of the all India market,
which is about Rs. 60,000-70,000-crores.

2.3.4 CONCESSIONAIRE
31

The stopover store format is one that rides piggyback on another retail outlet,
say a petrol pump. This stopover format is a concession that offers instant use or
ready to eat categories of merchandise.
A Kiosk is one such concessionaire format placed in a mall or shopping centre or
a bus station, airport, etc. A kiosk is a small freestanding open pavilion ofter open on
one or more sides used for information, sales and promotion.
Partnerships and alliances for concessions offer a great deal of opportunity for
increasing customer contact, share of mind and share of heart especially in large
formats such as department stores, malls and hypermarkets. By striking trust, or with
complementary marketers who are concessionaires, a retailer can add value and
convenience, and broaden his relationship with customers.
The concessionaire concept is very common in Asia. Initially, the
decision to lease out departments was largely a matter of augmenting the
retailers own mix of goods and services, particularly in areas where he/she
lacked expertise or technical capabilities. With the ones of Asian currency
crisis, concessionaire agreements became the most viable option for Asian
retailers to stay afloat.

2.4. FRANCHISING
Franchising is the granting of sole selling rights within a given geographical area.
The franchising company (the franchiser) supplies equipment and/or raw materials
for a licensee who either pays a franchise fee or a percentage of turnover, or
contracts to buy supplies from the franchiser (or a mixture of these methods of
payment). The licensee is also helped in finding a location and is trained in all
aspects of the business. Generally, franchises are distinguished by three
characteristics:

The Franchiser owns a trade or service and licenses it to franchisees in return

for royalty payments.

The franchisee pays for part of the system. This is normally in two parts, one
as initial fee, which is only a small part of the total amount. Second, service
fee on turnover on monthly or quarterly basis.

32

The franchiser provides its franchisee with marketing and operations system
for doing business.

Franchising is beneficial to both franchiser and franchisee. Benefits to franchiser

are:

Covering new territory,

Hard work of persons who are entrepreneurs rather than employees, and
The franchisees familiarity with local community and conditions.

2.5 NON-STORE RETAILING

2.5.1 MAIL ORDER
Mail order retailing using the mail to get orders and/or facilitate delivery takes
several forms as follows:
Mail Order Catalogues
These are mainly of two types the general merchandise catalogue, and the
specialist catalogue. Much of the selling is done through a network of part-time
agents who are paid a commission on the things they sell.
The advantages of the general merchandise mail order catalogue to the
customer are:

Free credit
Price stability over the lifetime of the catalogue
Savings in transport fares and petrol
Wide selection of merchandise
Wide selection of merchandise

Direct Response Advertising

This is the use of advertising in newspapers or magazines to describe a product and
stimulate the customer to write or telephone for it. Most national newspaper have a
Saturday bargain squares section advertising all manner of postal bargains.
Direct Mall
33

This is the use of advertising literature sent directly to the potential customer for the
purpose of selling goods or services. The Readers Digest have been particularly
successful in selling books in this manner and records, tapes and collectors pieces
are also sold via direct mall.

2.5.2 DIRECT SELLING

Direct selling that direct selling of the product by salesman to you takes several
forms as follows:
Door-to-door Trading
Selling by salespersons is being done to launch new products. A variety of foodstuffs
are also regularly delivered to the doorstep, e.g. milk, bread, eggs, vegetables. Avon
cosmetics are sold in this manner.
Mobile shops
These are travelling shops and are distinct from vehicles from which milk, bread,
newspapers etc. are delivered. Vegetables, plastic toys and other small goods of
house hold use are sold by hand driven carts.

Markets (Haats)
Haats or rural markets remain the traditional way of retailing in rural and semi-urban
India. In these markets, sellers bring their merchandise on one particular day (s) to
particular place. Vegetables, groceries and household items are sold in this type of
markets. Names of many localities were derived because on particular day a Haat
would be organized there. For example; Itwara, Budhwara, Mangalwara, etc.

2.5.3 AUTOMATIC VENDING

Selling out of machines has been part of the retail scene for many years (particularly
for making a local telephone call) and there has been something of a recent boom in
auto-vending, notably in closed, relatively vandal-proof areas such as sports center
34

and airports. This possible limitation reduces the main advantage of the machine in
that they can be in operation for twenty-four hours a day, seven days a wee. Banks
are providing this type of service through ATMs.

35

CHAPTER 3: RETAILING CONCEPTS

36

The overall purpose of the retailing is to provide goods and services wanted by
customers and to do so profitably so that business can be sustained. This means if a
retailer is to be successful and customer satisfied the retailer must understand the
three core factors of retailing, namely, customers, their needs, wants and buying
behavior, competition, their strategies.

Target Market
Pressure Groups & Govt. Policies

Organization/Firm

Competitors and their strategies

Factors influencing Retailing Business

37

3.1.1 CUSTOMERS
Customers are the most important element for the retailers. To be successful retailer
must know its customers. Why customers shop, how they select a shop and how
they select among that stores merchandise. These can be:
Convenience- of hours, of location, of shopping ease

Assortment of merchandise- whether a wide variety or limited

Quality and fashion level of goods
Price generally important at the lower end
Service- such as credit, delivery, courteous sales staff, assistance in selection,

after sales services, return-goods privileges.

Excitement- such as promotional efforts

3.1.2 COMPETITION
A retailers competition does not only come from those competitors who are
using the same retail format but also from new competitors who are coming up from
new formats.
The competition between retailers using the same type of retail format is
known as intra-type competition. Examples of this type of competition are: a
department store competing with other department stores; a discount store
competing with other discount stores; a supermarket competing with other
supermarkets etc.
The competition to the retailers may come from same retailer located within
the vicinity of the target market or a similar kind of business in that locality. For
example, a retailer located in a suburb selling video and music cassettes would have
competition with the cable TV and the movie theatre located in that suburban area.
The retailer may also face tough competition for the scrambled stores, which in
addition to their merchandising products also provide videocassettes on rent.
Therefore the retailer has to identify, assess the strengths and weaknesses of his/her
competitor while designing the strategy for marketing its products.

38

3.1.3 ENVIRONMENTAL TRENDS

This is the third core element of retailing. The environmental factors surrounding the
customers and the competition is a major factor confronting retailers. These
environmental factors are: changing customers needs, changes in demographic
composition of customers, changes in technology, changes in business environment,
legal framework.
Economic Factor
The rate of growth in India has gradually picked up in last two decades. In the
eighties it breached the so called Hindu rate of growth and reached 5% levels.
Throughout the nineties the growth has remained above this level even crossing 7%
levels. This has resulted in increased buying power and disposable income in the
hands of Indian consumers. A part from growth, Indias large middle class has led to
introduction of organized retail formats.
Demographic Factors
There has been significant growth in number of towns and significant increase
in population of urban India due to migration from rural areas. Rising prosperity and
population has driven the population of many cities over 10 lakhs. This has created
interest in large retailers. Many retailers have opened their store in number of cities
now. Prominent among them are Shoppers Stop, Food World, Westside, Ebony
Piramyd, Pantaloon, Lifestyle, Globus etc.

Social Factors
Nuclear small family is becoming a norm in India with increasing number of
women working outside the four walls of home. Thus, there is increase in disposable
income of families, however there is paucity of time as in many families both
(husband and wife) work.
Brand Profusion

39

Compared to early eighties, India has seen brand explosion in almost all
goods. Earlier there was only one brand of salt, namely Tata Salt, now there are a
number of brands available. Many goods were sold in loose earlier, now there exists
number

of established

brands, Numerous brands

in

consumer durables,

automobiles, household items, garments et, have appeared in the Indian retail
horizon.
Psychographic change
There has been a perceptible change in the mental attitude of the people at
large. People specially in cities have become health conscious. Hygiene is a
prerequisite for any investment related to consumption and food items. Due to
change in earning, the concept of marketing has also changed.
Demographic Change
The people at large live in big apartments and isolated suburban areas. There
is a growth of clusters of population in identified geographical locations. A particular
geographic location is populated by people with distinct characteristics of demand
and consumption. This indicate that the requirement of different clusters may be
different depending upon the type of families living together.
Political Change
Since last two decades, India is facing severe political instability. This is
causing frequent policy changes and creation of pressure groups.
Technological Changes
Last decade saw tremendous change in technology specially information
technology. Information Technology has provided ways to network and increase
market share with profitability. There is a possibility of mutual growth and business
with collaborations.

40

3.2RETAIL MIX
The various components of the retailing mix as subcategories of the four Ps, which
is a very common terminology, adopted in marketing courses. These four Ps are:

PRICE

PRODUCT

RETAIL MIX

PLACE

PROMOTION

3.2.1 PLACE
The categories from the point of view of retailing Place are:

Convenience of shopping
Stores decor and interiors
Store location

The convenience of shopping provides convenience of time, convenience of

location, convenience of availability of other facility centers and convenience of
41

shopping at one place to the customers. Convenience of shopping from a

consumers point of view involves time, place, effort and other facilities. A store
which is open from 7.00 AM to 11.00 PM is more convenient than a store that is
open from 10 to 5. Many banks open evening branches to provide Convenience
of time to office goers. ATMs provide the same Convenience of time. A store that
is close to consumers offers convenience of place.

Timings

How

Location
long

Is

Effort
it

Facilities
Does it offer What facilities

store

conveniently

assistance

remains

located

in selection

open?
Does

the customer

for

it

Does it offer, such as:

Car

space
ATMs
Credit

acceptance
Free
home

delivery
Ordering

by

phone
Availability

of

and
shopping to

remain

the

open

customers

Sundays
and
holidays?

all

parking

card

products

under one roof

etc.

CONVENIENCE OF SHOPPING
Stores interior and dcor also form part of retail mix. A retail store can have
expensive fittings etc. (normally used for trendy products such as Titan Showrooms)
or can have inexpensive interior or dcor (normally used by discount stores). The
two important criteria for stores interior and dcor are:

It should be compatible with the products, for instance, for home furnishings
and decorative items would require an attractive and elegant interior and
dcor, whereas a store selling items would require visibility and hygiene rather
an elegant dcor.
42

It should be compatible with the target customers and retailers image, for
example, target customers of a five star hotel would like to have a good
interior and dcor, whereas a small restaurant may not much attention to its
interior and decor.

3.2.2 PRODUCT
Following factors of Product are useful for retail mix.

Breadth of merchandise
Depth of merchandise
Quality and fashion have of goods

Product Merchandise Assortment: Breadth

Breadth or variety of merchandise refers to number of different merchandise
categories a retailer offers. A store with many lines and departments of merchandise
has breadth of assortment; a narrow line store is a specialty store. Many stores that
carried limited lines, such as groceries or drugs, are expanding their lines through
scrambled merchandising and are thereby offering a broader assortment. On the
other hand, specialty stores and boutique are prospering through offering such
limited assortments as wigs, pets, lamps and shades, and jeans.
Product Merchandise Assortment: Depth
Depth of assortment refers to number of different items in a merchandise category.
So depth of assortment refers to the variety of colors, styles, sizes, and prices that a
retailers offers in a given lime. Each different item of merchandise is called an SKU
(Stock Keeping Unit). An example of SKU is Girls levy jeans size 5 stone washed,
straight leg. Specialty stores offer greater depth of merchandise and this explains
the popularity of specialty stores.
DISCOUNT STORE (Wide and Shallow)
BREADTH

D
e
p
t
h

P1

P2

P3

P4

P5

11

11

11

11

11

43

LEGEND

12

12

12

12

13

12

P product

13

13

item or stock keeping

I
14

U unit
Assortment in a discount store

DEPARTMENT STORE (Wide and Deep)

BREADTH

D
e
p
t
h

P1

P2

P3

P4

P5

P6

P7

11

11

11

11

11

11

11

12

12

12

12

12

12

12

13

13

13

13

13

13

14

14

14

14

15

15

16
Assortment in a Departmental Store
Product Quality And Fashion Level Of Goods
Quality and fashion are important attractions at the high end. High quality,
newest fashions and exclusivity are major consideration for high income, fashion
conscious customers. Exactly opposite is true for low end. Low price and value for
money are major considerations for relatively lo income customers. Indian
consumers are famous for their attitude towards value for money and low price.

3.2.3 PRICE
In the past, price was considered a direct indicator of quality. However, this
trend is changing now, as many good quality products are being priced low. Price

44

has become a tool in the marketers armor to increase market share without
compromising quality.
Today, price is considered an indirect indicator of quality and fashion level of
goods. And to an extent it is. Higher quality goods and newest fashions usually
command higher prices. However, good quality may be available without the highest
prices. Private brands, which are retailers own brands usually, are priced lower than
nationally advertised brands. Often the difference in price between highest and
lowest price items doe4s not accurately reflect the difference in quality. Some
retailers, for example The Home Store have even introduced their own brands in
groceries at lower prices than national brands without compromising on quality.
Consumers often make judgment on products or indeed on the store as a
result of his or her response to the prices of merchandise. Thus for example a
retailer could adopt a strategy of offering goods at relatively high prices in order to be
consistent with a general strategy of appealing to consumers who want exclusivity.
The major appeal of discount stores I their low prices. Many other stores
direct the bulk of their promotional efforts, especially their newspaper advertising, to
sale and particular goods offered at special low prices. Most supermarket advertising
promotes low price special or leaders, designed to attract customers to the store so
that they may then buy other regular price items. Leaders are items sold at a below
average mark up sometimes even hear cost in order to attract customers to the
stores.

3.2.4 PROMOTION
The retailer has to communicate with customers, initially to make them aware
of his or her offerings and then to stimulate interest and desire. This is based on the
AIDA theory of promotion.

Awareness
Interest
Desire
Action

45

Awareness: The retailers first task is to make the customer aware of his
offerings.

It

should

communicate

property

to

its

customers

through

advertisements, window merchandising, product display etc.

Interest: Next state of promotions is interest, if customer shows some interest in
the product retailers sales persons can help in knowing the product better.
Desire: The third stage is desire, it is in this stage the retailer can convert desire
of the customer into next stage that is action or purchase.
Action: In this stage, customer makes purchase.

46

Chapter 4: THE RETAIL MARKETING

REVOLUTION

By 2010, the list of Indias top 10 retailers will have at least 5 Indian corporate. Retail
marketing will go through a tremendous change in India this millennium. It will
change Indias cities, its people, and its households. The Indian consumer is
reportedly the largest spender in Singapore and London. It is, therefore, strange that
there have, so far, been few efforts to present the product in the right kind of
47

environment in India. Indeed, the right shopping experience does induce Indian
consumers to spend more. This is evident from the experiences of retail-outlets like
Shoppers Stop, Music World, Food World, Crosswords etc.
However, the development of organized retail is dependent on the efforts of several
agencies and institutions. The first among these is the government. In a country as
big as India and with as many states as ours, it is imperative that the Central
government and all state governments bring in Value Added Taxation or a unified
taxation system to ensure that the tax-regimes are the same across the country.
The laws governing retail real estate should also be looked into, so that it is possible
to develop retail-estate beyond the city-limits.
Apart from providing entertainment and retail opportunities, this will also decongest
the city center and facilitate the development of suburbs. The relevant rules should
also be amended to allow retail-stores to operate 7 days a week, 12 hours a day.
Given the hours most urban consumers keep at work and keeping in mind the
increase in the number of nuclear families, this may indeed make sense. This will
also help people enjoy their evenings, out at malls.
The second group, whose participation is essential in making retail a boom-sector in
this millennium, comprises developers. Most properties are developed without
considering the end user, thus we sometimes find high-ceilinged offices and lowceilinged retail stores. Often, the shoppers convenience is not taken into
consideration while the property is constructed.
The third constituency that has a role to play in the fortunes of organized retail this
century is the education-sector. Retail is a people-intensive business and there is a
huge opportunity for retail institutes in India.
For manufacturers, retailing will present an attractive opportunity. Organized retail
allows them to expose their products to a large volume of customers in an
environment conducive to buying. Already, several transnational retail giants have
established their presence in India. Others, notably Chinese retailers, have visited
India and studied the Indian market. Theres a lot at stake here; even so early in the
21st Century. India is too large a market to be ignored by transnational retail giants.

48

From the manufacturing companys perspective, the focus should be on producing

good products, and forging relationships with organized retail. Manufacturers need to
draw a plan of producing quality products and tie in with retailers. Indeed, the birth of
organized retail will also engender the creation of private labels and store-brands.
Thus, if a manufacturing company lacks the resources to build a brand, it can supply
to retail-chain that has the resources to create a brand of its own.
Internationally, retailing is a large business; we find at least one retailer amongst the
top 10 companies in every country. In the US, it is wal-Mart with a turnover in excess
of $ 120 billion, in the UK, it is Marks and Spencers with close to $ 10 billion and in
Germany, it is Karstadt with a turnover in excess of dm 19 billion.

Table 1:
Top 10 Retailers in World Wide

49

Rank

Retailer

No.

of

Store Sales in US $

owned

Million

Wall-Mart Stores Inc. (USA)

4178

$180,787

Carrefour Group (France)

8130

$61,047

The Kroger Co. (USA)

3445

$49,000

The Home Depot, Inc. (USA)

1134

$45,738

Royal hold (Netherlands)

7150

$45,729

Metro AG (Germany)

2169

$44,189

Kmart Corporation (USA)

2105

$37,028

Sears, Roebuck and Co. (USA)

2231

$36,823

Albertson's, Inc. (USA)

2512

$36,726

10

Target Corporation (USA)

1307

$36,362

Source: Economic Times Industry Report

Studies by consulting firms like A.T. Kearney, KSA Technopak, and MCkinsey and
Co. in India have indicated a huge potential for retailing in the country. Drawn by the
magic number of Rs. 1.6 crorethast is expected to be the size of the retail industry by

50

the end of the first decade of this millennium, several companies from the organized
sector have also jumped into the fray.
In this millennium, like in the last, customers will want to spend time with their family
and friends. They may like to visit malls on weekends where everything will be
available under one roof, India will benefit from these development because of
increased consumption through retailing and the corresponding increase in
employment created by retailing.

4.1 Retail Marketing

Retail Marketing includes all the activities involved in selling goods for services
directly to final consumes for personal, non-business use. Any organization selling to
final consumers whether a manufacturer, wholesaler, or retailer is doing retailing.
It does not matter how the goods or services are sold (by person, mail, telephone,
vending machine, or internet) or where they are sold (in a store, on the street, or in
the consumers home).
Any business that directs its marketing efforts towards satisfying the final consumer
based upon the organization of selling goods and services as a means of
distribution.
The concept assumed within this definition is quite important. The final consumer
within the distribution chain is a key concept here as retailers are at the end of the
chain and are involved in a direct interface with the consumer.
A retailer or retail store is any business enterprise, whose ssales volume comes
primarily from retailing. Retail organizations exhibit great variety and news forms
keep emerging. There

are

store

retailers, non-store

retailers, and retail

organizations. Consumers today can shop for goods and services in a wide variety of
stores. The best-known type of retailer is the department store. Japanese
department stores such as Takashimaya and Mitsukoshi attract millions of shoppers
each year. These stores feature art galleries, cooking classes, and childrens
playgrounds.
A retailer is at the end of the distributive channel. He provides goods and services to
the ultimate consumers. This he does through his small organization, with the help of
51

a few personnel. In an individual retail store there is not much scope for organization
except in the sense that the shopkeeper has to organize and apportion his time and
resources. The need for organization becomes essential as soon as he hires people
and enters into partnership or takes the help of members of his family in running his
store. A retailer deals in an assortment of goods to cater to the needs of consumers.
His objective is to make maximum profit out of his enterprise. With that end in view
he has to pursue a policy to achieve his objective. This policy is called retailing mix.
A retailing mix is the package of goods and services that store offers to the
customers for sale. It is the combination of all efforts planned by the retailer and
embodies the adjustment of the retail store to the market environment. Retailing mix
a communication mix and a distribution mix. The maximum satisfaction to the
customers is achieved by a proper blend of all three.
The success of the retail stores, therefore, depends on customers reaction to the
retailing mix which influences the profits of the store, its volume of turnover, its share
of the market, its image and status and finally its survival.
There are three main phases in the life of a retailing institution. These are:A. Innovation (Entry)
B. Trading up
C. Vulnerability

A. Innovation (Entry)
In the entry stage, a new retailer enters with new price appeal, limiting product
offering, Sparton Stores & Limited services. Its monopoly power over the others
is its price advantage, which means that it offers products at low prices so as to
get a competitive edge over its competitors.

B. Trading up

52

In the trading up stage, the retailer starts expanding. It expands in terms of

product offering, better services and improved interiors. With all these, it starts
charging a bit higher prices.
C. Vulnerability
In the vulnerability stage, there is a gap in the market leaving some space for the
new players to come in. this is due to increase in the prices by the retailers.
Normally these stages are there in the life of a retail institution. But all these may not
be necessarily there in every retail institution. For instance, any retail institution
targeting the upper class may start itself with a large variety & high price.
This brings to broadly identify and categorize the types of retail marketing, which are
defined as follows:
1. Store Retailing
2. Non Store Retailing

4.2

Types of Retail Marketing

4.2.1 Store Retailing

Store retailing provides consumers to shop for goods and services in a wide
variety of stores and it also help the Consumers to get all the needed goods
and services from one shop only. The different types of store retailing are
given below:

4.2.1.1 Departmental Store

These stores are usually built in large area and keep variety of goods under one
shed. It is usually divided into different sections like clothing, kids section, home
furnishings, electronics appliances and other household goods. In a departmental
store a consumer can buy variety of goods under one shed.

4.2.1.2 Supermarket
These stores are relatively large, low cost, low margin, high volume, self service
operations designed to serve total needs for food, laundry and household

53

maintenance products. Supermarkets earn an operating profit of only 1 percent

on sales and 10 percent on net worth.

4.2.1.3 Convenience Stores

These are relatively small stores located near residential area, open for long
hours seven days a week, and carrying a limited line of high turnover
convenience products at slightly higher prices than departmental stores. Many
such stores also have added takeout sandwiches, coffee and pastries.

4.2.1.4 Off Price Retailer

These stores sell goods at low price with lower margins and higher volumes.
These stores sell goods with deteriorated quality. The defects are normally minor.
This target at the persons belonging to the lower income group, though some
have a collection of imported goods aimed to target the younger generation. The
company owned showroom selling the seconds products is a typical example of
off price retailer.

4.2.1.5 Catalog Showroom

Catalog showrooms generally sell a broad selection of high-markup, fast-moving,
brand-name goods at discount prices. These include jewelry, power tools,
cameras, luggage small appliances, toys, and sporting goods. Catalog
showrooms make their money by cutting costs and margins to provide low prices
that will attract a higher volume of sales. Catalog showrooms have been
struggling in recent years to hold their shore of the retail market.

4.3Organized Retail Formats in India

54

Each of the retail stars has identified and settled into a feasible and sustainable
business model of its own.
Shoppers Stop Department store format
Westside- Emulated the Marks & Spencer model of 100 per cent private

label, very good value for money merchandise for the entire family.
Giant and Big Bazaar Hypermarket/cash & carry store
Food world and Neelgiris Supermarket format
Pantaloons and The Home Store Specialty retailing
Tanishq has very successfully pioneered a very high quality organized

retail business in fine jewelers.

Structure of the retailing industry according to ownership patterns:
An unaffiliated or independent retailer.
A chain retailer or corporate retail chain
Consumer Co-operatives

A new entrant in the retail environment is the discounter format. It is also is

known as cash and-carry or hypermarket. These formats usually work on bulk
buying and bulk selling. Shopping experience in terms of ambience or the service
is not the mainstay here, RPG group has set up the first discounter in
Hyderabad called the Giant. Now Pantaloon is following suit.Two categories of
customers visit these retail outlets.
a) The small retailer. For example, a customer of Giant could be a
Dhabawala who needs to buy edible oil in bulk.
b) The regular consumer who spends on big volumes (large pack sizes)
because of a price advantage per unit.
Retailing in India is still evolving and the sector is witnessing a series of
experiments across the country with new formats being tested out, the old
ones tweaked around or just discarded. Some of these are listed in table
below:
Table 4:
Retailer
Shoppers' Stop
Ebony
Crossword
Pyramid

Current Format
Department Store
Department Store
Large bookstore
Department Store

New Formats
Quasi-mall
Quasi-mall, smaller outlets, adding food retail
Corner shops
Quasi-mall, food retail
55

Pantaloon
Subhishka
Vitan
Foodworld
Glob us
Bombay Bazaar
Efoodmart
Metro
S Kumar's

Own brand store

Supermarket
Supermarket
Food supermarket
Department Store
Super market
Food super market
Departmental store
Departmental store

Hypermarket
Considering moving to self service
Suburban discount store
Hypermarket, Foodworld express
Small fashion stores
Aggregation of Kiranas
Aggregation of Kiranas
Cash and carry
Discount store

4.4Trends in Retail Marketing

In India the trends are mainly in three sectors, these sectors are:
1. New retail forms and combinations continually emerge. Bank branches and
ATM counters have opened in supermarkets. Gas stations include food store
that make more profit than the gas operation. Bookstores feature coffee
shops.
Even old retail forms and reappearing: In 1992 Shawna and Randy Heniger
introduced peddlers carts in the Mall of America. Today three-fourths of the
nations major malls have carts selling everything form casual wear to
condoms. Successful carts average $ 30.000 to 40.000 a month in sales and
can easily top $ 70.000 in December. With an average start-up cost of only $
3.000, push carts help budding entrepreneurs test their retailing dreams
without a major cash investment. They provide a way for malls to bring in
more mom-and-pop retailers, showcase seasonal merchandise, and prospect
for permanent tenants.
2. New retail forms are facing a shorter life span. They are rapidly coped and
quickly lose their novelty.
3. The electronic age has significantly increased the growth of non store
retailing, consumers receive sales offers in the mail and over television,
computers, and telephones, to which they can immediately respond by calling
a toll-free number or via computer.

56

4. Competition today is increasingly intertype, or between different types of store

outlets. Discount stores, catalog showrooms, and department stores all
compete for the same consumers. The competition between chain
superstores and smaller independently owned stores has become particularly
heated. Because of their bulk buying power, chain get more favorable terms
than independents, and the chains large square footage allows them to put in
cafes and bathrooms. In many locations, the arrival of a superstore has forced
nearby independents, out of business. In the book selling business, the arrival
of a Barnes and Noble superstore or Borders Books and Music usually puts
smaller bookstores out of business. Yet the news is not all bad for smaller
companies. Many small independent retailers thrive by knowing their
customers better and providing them with more personal services.
5. Channels are increasingly becoming professionally managed

and

programmed retail organization are increasingly designing and launching new

store formats targeted to different lifestyle groups. They are not sticking to one
format, such as department stores, but are moving into a mix of retail formats.
6. Technology is becoming critical as a competitive tool. Retailers are using
computers to produce better forecasts, control inventory costs, order
electronically from suppliers, send e-mail between stores and even sell to
customers within stores. They are adopting checkout scanning systems,
electronic funds transfer and improved merchandise-handling systems.
7. Retailers with unique formats and strong brand positioning are increasingly
moving into other countries. McDonalds. the Limited, Gap, and Toys R Us
have become globally prominent as a result of their great marketing prowess.
Many more Indian retailers are actively pursuing overseas markets to boost
profits.

57

58

CHAPTER 5: RETAIL MARKETING IN INDIA

Retail marketing is the most important part of the entire logistics chain in a business
especially in consumer related products. Without proper retailing the companies
cant do their business. Retailing is the process of selling goods in small quantities to
the public and is not meant for resale. There are various ways of making goods
available to consumers like:
Company to salesperson to consumer.
Company to consumers (online/phone/catalog ordering).
Company to distributor to wholesaler to retailer to consumer.
These three are among the most common ways of making the goods available to
consumers. But in India the three layered system of distributor, wholesaler and
retailer forms the backbone of the front-end logistics of most of the consumer-good
companies.

59

In this system the company operating on all India basis appoints hundreds of
distributors across the country that supplies to various retailers and wholesalers.
Wholesalers in turn can either directly sell in the market or can supply to retailers.
The current retailing system prevalent across the country is highly fragmented and
unorganized. Anyone with some money and some real estate can open a small shop
and become a retailer catering to the locality in which he opens the shops.
There are a number of reasons behind this fragmented retail market. Some of
the major reasons being:

Poverty and lower literacy levels.

Low per capita income.
Saving focused and less indulgence mindset.
Poor infrastructure facilities like roads etc.
Restrictions on intra-state good movement.
High taxes.
No exposure to media.
High import duties on imported goods.
FDI in retailing is not allowed.
Retailing is not considered as a business or industry by the government.

Besides this there is other reasons too which led to stifling of growth of organized
segment of retailing sector and which instead led to highly fragmented market.
Today in India we have more than 13 million retail outlets and most of them
are family run and locally owned. There are very few nationally present retail stores.
In India the process of buying and selling at these unorganized retail outlets is highly
characterized by bargaining and negotiations. But slowly with increasing influence of
media and urbanization the market is shifting towards organized segment. Seeing
the huge market size of retail business in the country and the current level of
organized segment many players have jumped into the fray and many are waiting for
the right opportunity to enter it.

5.1 RETAILING IN 1990S

On account of the liberalization drive in the 1990s, several structural and
demographic changes that are taking place are helping the industry to grow. The
GDP has grown by 6% in the last decade resulting in increased income levels and
higher purchasing power for the population. Increasing literacy levels, increasing
60

number of working women, increasing urbanization, higher international travel by

Indian population and increasing media penetration has raised aspiration levels of
the population, resulting in demand for better shopping experiences and larger
variety of goods. India has close to 54%of population below the age of 25, which
translates into higher prospects for increased consumption levels in the future.
Finally, interest rates have also declined in the past few years further propelling the
consumption demand.
These factors were the key drivers for the retail wave in the country. Notable among
the early entrants were players like Shoppers Stop, Panataloon, Ebony, Food world,
Subhiksha etc. initially, the growth in organized retail was very slow and
concentrated mainly in metros with south India holding its ground as the pioneer in
organized retail growth on account of the low cost of real estate. Due to the high
investments required in the early stages and the fact that real estate was the key
deciding factor for success of stores, real estate developers have been the major
players in the industry.
Table 4:
Sponsors
RajanRaheja

Groups
Real Estate Developer

Retail Business
Globus

Chain

K, Raheja

Real Estate Developer

departmental stores
Shoppers Stop - Chain

Hiranandani

Real Estate Developer

departmental stores
Haiko supermarket, Loft sho

Tata

Diversified Business House

stores and Hakone mall.

Westside chain of departme

DS Group

Real Estate Developer

stores
Ebony - chain of departme

Diversified Business House

stores
Foodworld supermarkets, Gia

RPG

hypermarkets, Health & Glo

DLF
ITC

Real Estate Developer

Diversified Business House

beauty and health stores.

DLF malls
Wills Sport Chain of appar
stored.

61

5.2 PRESENT RETAIL SCENARIO IN INDIA

Retail experts find Indian industry promising

Retail sales to touch Rs. 30,000-crore by 2005
Mall Mania: The developing mall culture in India
Emergence of region-specific formats
Entry of international players

The retail movement in India has acquired the critical mass that is required for rapid
acceleration in terms of industry growth as well as geographical spread. The Indian
industry can no longer be called nascent.
The spread of super stores to the Northern cities such as Delhi, Chandigarh, Jaipur
and Kolkata is evidence of the fact that organized retailing in India has emerged from
its southern bastion.
The retailing boom is being driven by increased expectations as well as changing
shopping behavior of the urban Indian consumer. With the increasing number of
nuclear families, working women, greater work pressure and increased commuting
time, consumers are looking for convenience. And, convenience is defined as having
everything under on roof, longer hours and multiplicity of choice.
On the supply side, the current inefficient supply chain in India, particularly for food
items has led a few players to consolidate their operations to take advantage of
economies of scale and match consumer expectations in terms of delivery as well as
space. So, we have a situation where both demand and supply side dynamics are
fuelling the growth of organized retailing in India, although improvements in the
supply chain are yet to fully match with consumer expectations.
The future growth need not necessarily come only from the big metros, where there
already exists a good retail network. The fact that big Indian retail chains are moving
into places like Indore or Chandigarh is an important indicator of future growth. For
the Rs. 5000-crore organized retail industry it is, perhaps, time to tap the relatively
smaller cities. The share of organized sector in total retail sales will grow from one
per cent now to six percent by 2005. While projections can be slippery, hard facts
point to exciting growth ahead for this sector.

Mall Mania: The Developing Mall Culture in India

62

Modern malls made their entry in to India in the late 1990s. with the establishment of
Crossroads in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall
projects were announced. According to market estimates, close to 12 million sq. ft. of
mall space is being developed across several cities in the country of which 10 million
sq. ft. is expected to be operational by end of 2003. With this, rentals for retail
properties have shown a marked decline, which has brought down the bread-even
level of the retail projects. Moreover, retailers would now have access to retailspecific properties, which will increase their efficiencies.

Table 5:
Crossroads
Ansals
Nirmal Lifestyle
Runweals Mall
Karnavat Mall
Raheja Mind space
Jogs Mall
Cable Corporation
Ansals
Sahara
MGF Malls Metroplitian& Plaza
DLF
Shipra
Forum
City Center
Rave 3
Inox
Forum
Spencers Plaza Phase III
Indore, Nasik and Jaipur Malls

Tardeo, Mumbai
South Ex, Delhi
Mulund, Mumbai
Mulund, Mumbai
Thane, Mumbai
Malad, Mumbai
Andheri, Mumbai
Borevali, Mumbai
East Delhi
Gurgaon
Gurgaon
Gurgaon
Noida
KolKotta
KolKotta
Kanpur
Baroda
Bangalore
Chennai
Indore

225-250
175-200
75-90
75-90
65-85
60-80
55-75
55-75
75
50-70
65-85*
65-85
80-180
100
55
45-55
75
70-90
70
45-55

Source: ChestertenMeghraj Industry Report

Till some time back, there were only few international style shopping malls in India
Spencer in Chennai, Crossroads in Mumbai, Ansals Plaza in New Delhi and Sri
Rams Arcade in Kolkata. By the end of 2004, that number jumped to many.

63

It looks like a virtual stampede, major players with a cumulative investment of Rs.
375-crore are set to change cityscapes across India. In 40 lakh sq. ft. of retail space
will be developed. In three years, this will rise to 70-lakh sq. ft.
As the retail industry evolves, consumers want more variety before making their
purchase decision. A study on consumer outlook suggests that over 80 percent of
consumers want a wide range of products at hand while shopping. This signifies that
people are finally ready for multioption complexes.
Many old-time corporate are seriously considering using their idle assets. It makes
sense for landowners to develop it and keep the returns rather than sell it outright or
even lease it, especially when there is opportunity here. It is perhaps the best way to
use an idle real estate asset.
The limited kitty of brands have yet another significant knock on effort on the typical
size of Indian malls. In the US and South-East Asia, malls are as large as 50-lakh sq.
ft. Spencer is by far the largest mall in India. It occupies 7 lakh sq. ft. and even that is
dwarfed by Asias largest mall, the 4-million sq. ft. mega mall in Malaysia. Even the
26 malls that are being planned are likely to measure between 50,000 sq. ft. and 2lakh sq. ft. The Indian mall cannot offer too many choices in terms of brands. So,
developing a very large mall can never be sustainable.
Emergence of Region-Specific Formats
For the first time in 10 years, the industry is witnessing the development of regionspecific formats. With organized retail penetrating into B class towns, retailers have
started differentiating in the sizes and formats of stores. For example, in
departmental store format, while most A class cities and metros have larger stores of
50,000 plus sq. ft. sizes, stores in B class towns have stabilized in the 25,000-35,000
sq. ft. range. Most players have started operating these two formats across various
cities, which has helped them to standardize the merchandise offering across the
chain.
Emergence of Discount Formats
Larger discount formats, popularly known as hypermarkets, are now emerging as
major competitors to both unorganized and organized retailers. Penetration of
64

organized retail into the lower strata of income groups and consumer demand for
increased value-for-money has improved the prospects of these formats. These
formats span across the entire range of merchandise categories. Big Bazaar
promoted by Pantaloon and Giant promoted by the RPG Group, are examples of this
format.
Entry of International Players
A large number of international retailers have evinced interest in India, despite the
absence of favorable government policy for foreign players. A number of the major
brands have entered the country through licensing agreements with Indian players to
capitalize on the opportunities available in the sector.
Table6:
International Players
Landmark Group, Dubai
Metro, Germany
Shoprite, South Africa
Nanz, Germany
Marks & Spencer, UK
Mango, Spain
McDonalds, USA
Dominos USA
Tricon Restaurant, USA

Retail Ventures in India

Lifestyle Chain of Departmental Stores
Hypermarket
Supermarket, Hypermarket
Supermarket
Apparel Retailer
Apparel Retailer
Food Retailer
Food Retailer
Food Retailer

65

CHAPTER 6:
INFORMATION TECHNOLOGY IN RETAIL

Over the years as the consumer demand increased and the retailers geared up to
meet this increase, technology evolved rapidly to support this growth. The hardware
and software tools that have now become almost essential for retailing can be
divided into 3 broad categories:
66

 Customer Interfacing Systems

Bar coding and scanners
Point of sale systems use scanners and bar coding to identify an item, use
pre-stored data to calculate the cost and generate the total bill for a client.
Tunnel Scanning is a new concept where the consumer pushes the full
shopping cart through an electronic gate to the point of sale, in a matter of
seconds the items in the cart are hit with laser beams and scanned. All that
the consumer has to do is to pay for the goods.
Payment
Payment through credit cards has become quite widespread and this enables
a fast and easy payment process. Electronic cheque conversion, a recent
development in this area processes a cheque electronically by transmitting
transaction information to the retailer and consumers bank. Rather than
manually process a cheque the retailer voids it and hands it back to the
consumer along with a receipt having digitally captured and stored and image
of the cheque which makes the process very fast.
Internet
Internet is also rapidly evolving as a customer interface removing the need of
a consumer physically visiting the store.
Operation support system
ERP System
Various ERP vendors have developed retail-specific systems which help in
integrating all the functions from warehousing to distribution front and back
office store systems and merchandising. An integrated supply chain helps the
retailer in maintaining his tocks getting his supplies on time preventing stockout and thus reducing his costs, while servicing the customer better.
CRM Systems
The rise of loyalty programs, mail order and the internet has provided retailers
with real access to make sense of their consumer data and apply it to
business. This, along with the various available CRM (Customer Relationship
Management)System allows the retailers to study the purchase behavior of
consumers in detail and grow the value of individual consumers to their
businesses.
Advanced Planning and Scheduling Systems
APS systems can provide improved control across the supply chain all the
way from raw material suppliers right through to the retail shelf. These APS
packages complement existing (but often limited) ERP packages. They enable
67

consolidation of activities such as long term budgeting, monthly forecasting,

weekly factory scheduling and daily distribution scheduling into one overall
planning process using a single set of data. Leading manufactures,
distributors and retailers and considering APS packages such as those from
12, Manugistics, Bann, Mercialincs and Sterling-Douglas.

Strategic Decision Support Systems

Store Site Location
Demographics and buying patterns or residents of an area can be used to
compare various possible sites for opening new stores. Today, software
packages are helping retailers not only in their location decisions but in
decisions regarding store sizing and floor spaces as well.
Demographics and buying patterns of residents of an area can be used to compare
various possible sites for opening new stores. Today, software packages are helping
retailers not only in their location decisions but in decisions regarding store sizing
and floor-spaces as well.

VISUAL MERCHANDISING
The decision on how to place & stack items in a store is no more taken on the gut
feel of the store manager. A larger number of visual merchandising tools are
available to him to evaluate the impact of his stacking options. The SPACEMAN
store Suit from AC Nielsen and Modcad are example of products helping in modeling
a retail store design.

68

CHAPTER 7:
FOREIGN TOUCH IN INDIAN RETAIL

69

The chief of Marks & Spencer has been making trips to India over the past year.
Global investment bank Warburg Pincus is awaiting the Indian governments
clearance to pick up a 25.1 per cent stake, worth $13 million, in Shoppers Stop.
Dairy Farm international and Jardine Matheson are present here, through tie-ups
with the RPG Group. Fast food major McDonalds have already made a dent in the
marketplace and Indian palates.
The Dubai-based Landmark group is making its presence felt in Chennai through its
lifestyle mega store of over 30,000 sq. ft. landmark is owned by MukeshJagtiani, a
non-resident Indian. Lifestyle International Pvt. Ltd., formed in India recently, is a
wholly-owned subsidiary of the Mauritius-based lifestyle international which, in turn,
is wholly-owned landmark group. In India, according to lifestyle internationals
marketing manager, Roshan Mathew, the target is to have 12 to 16 stores by 2005.
These stores will sell all lifestyle products, barring furniture, under one roof.

70

71

QUESTIONNAIRE
1. How frequently you visit city mall Kota?
a) Once in a week
b) Twice in a week
c) Monthly
d) Quarterly
2. What is the main attraction of City Mall?
a) McDonald
b) Dominos
c) Fun Cinema
d) Big-Bazar
3. What is the main purpose of your visit to City Mall?
a) Complete shopping under single roof
b) Freak out
c) Window shopping
d) For events
4. What is your average spending on single visit to City Mal?
a) Less than 500
b) 500-1000
c) More than 1000
d) Not specific
5. How many Malls in Kota City?
a) 1
b) 2
c) 3
d) 4
6. What is your more loyal to?
a) City Mall
b) Stand alone counters
c) Central city market
d) None
7. What is the daily footfall in City Mall?
a) Less than 200
b) 300-500
c) 500-700
d) More than 700
8. What is the strength of staff?
a) Approx 500
b) 500-1000
c) 1000-2000
d) 2000-3000
9. How many outlets in there?
a) D
b) D
c) D
d) D
72

10. What products are most sold in City Mall?

a) Pizza
b) Clothes
c) G
d) g
11. What systems did you useto track and support your progress?
a)

12. How do you monitorand respond to changing market conditions?

1. How frequently you visit city mall Kota?

e)
f)
g)
h)

Once in a week
Twice in a week
Monthly
Quarterly

73

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

74

2. What is the main attraction of City Mall?

e) McDonald
f) Dominos
g) Fun Cinema
h) Big-Bazar

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

75

3. What is your average spending on single visit to City Mal?

e) Less the\an 500
f) 500-1000
g) More than 1000
h) Not specific

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

4. How many Malls in Kota City?

e) 1
f) 2
g) 3
h) 4

76

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

5. What is your more loyal to?

e) City Mall
f) Stand alone counters
g) Central city market
h) None

77

Sales

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

6. What is the daily footfall in City Mall?

e) Less than 200
f) 300-500
g) 500-700
h) More than 700

78

Sales

8%

24%

1st Qtr
2nd Qtr
8%

3rd Qtr
4th Qtr

60%

79

7. What is the strength of staff?

e) Approx 500
f) 500-1000
g) 1000-2000
h) 2000-3000

Sales

26%

29%

1st Qtr
2nd Qtr
3rd Qtr

15%

29%

8. How many outlets in there?

e) Less than 5
f) 5-10
g) 10-20
h) More than 20

80

4th Qtr

Sales

13%
11%
1%

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

75%

81

9. What products are most sold in City Mall?

e) Pizza
f) Clothes
g) Child Items
h) Beverages

Sales

20%

30%

1st Qtr
2nd Qtr

10%

3rd Qtr
4th Qtr
40%

82

10. What is the main purpose of your visit to City Mall?

e) Complete shopping under single roof
f) Freak out
g) Window shopping
h) For events

Sales
1%3%
1st Qtr
38%
58%

2nd Qtr
3rd Qtr
4th Qtr

83