SHORT TERM PROJECT REPORT

RAYMOND

SUBMITTED TO: SUBMITTED BY:

Prof. A.V Shukla Shivam Nagpal
Professor (Marketing) 19DM198
BIMTECH PGDM
INDUSTRY MENTOR:
Arvind Kharwal, Store Manager, Raymond
 A Project Report on
Raymond- “The Complete
Man”
Topic: Reasons behind Non-conversions
 CERTIFICATE

This is to certify that Mr. Shivam Nagpal of BIRLA INSTITUTE MANAGEMENT TECHNOLOGY, roll
no. 19DM198, a student of PGDM has worked on a short-term project titled “Study and
Analysis of non-conversions” under my guidance during Trimester-II in partial fulfilment for
the purpose of Post Graduate Diploma in Management program.

This is his original work to the best of my knowledge.

Date: 5th Nov 2019

(Prof. A.V Shukla)
 EXECUTIVE SUMMARY
Nowadays, retail sector is very booming industry. It has lot of opportunities to grow. Selling of

consumers services and goods to make a profit is known as Retail. There are various types of

retail outlets:

 Departmental Stores

 Discount Stores

 Supermarkets

 Warehouses

 Mom & Pop (Kirana)

 Speciality

 Malls

 E-tailers

 Dollar Stores

Retailer Consumer

Retailing

Indian Retail Sector is contributing nearly 12% to Indian GDP. Indian retail sector is divided into
organised and unorganised sector. Retail sector is third largest attractive sector among the
emerging sectors in world. New growth of technology and internet has provided equal amount
of challenges and advantages to the retail sector. According to the new rule published by
Government of India in February 2019 that those e-commerce companies which have foreign
investment are not able to sell the products by influencing the prices so that the small retailers
should not be affected.
 Table of Contents

Topic Page No.

About Raymond 6

Raymond Network in India 7

Organisational Structure of Raymond Group 8

Swot analysis 9

Problem statement 10

Findings 11

Selling techniques, Types of customers in a retail

12
store

Purpose of study 14

Competitor Analysis 15

Conclusions 16

Appendices 17
 About Raymond

The Raymond Group has started its business in 1925 and since then it has keep growing its

brand name known for its fabric and fashion. Raymond has started to grow exponentially since

the starting. Raymond is known for its excellent, trust and quality. Raymond’s business is mainly

into textiles along with prophylactics, engineering and FMCG. The current CEO of the company

is Sanjay Behl. Currently, Farhan Akhtar is the face of the brand. Raymond Group has founded

in 1925 at Thane, Mumbai, Maharashtra, India. The Chairman and Managing Director is Gautam

Singhania and revenue of the company is $800 million. It has almost 60% market share in India.

Raymond has exported products over 55 different countries. The main countries which include

Canada, Japan, Europe, US and Middle East.

Raymond is mainly known for its fabrics for suiting. Over 4000 distributors are spread in the

textile division and it has around 637 company owned stores and near about 30000 franchises

are there all over the country. It has numerous number designs and colours of fabrics. In 2015

by “The Brand Trust Report” Raymond was listed as one of the most trusted brands of India.
Raymond Network in India
Organisational Structure of Raymond Group
 Swot Analysis of Raymond

 Brand value
 Global presence
 Experienced & efficient salesforce
 omnipresent
 Problem Statement

Dealing with the problem of non-conversions

In order to identify the potential reasons behind non conversions, data was collected from the
sales panel and the customers were broadly classified under 3 major categories
1) Conversions- customers which the sales panel is able to convert into sales
2) Non-conversions- which are genuine customers, but cannot be converted
3) Window shoppers- these are not genuine customers, they evaluate the merchandise and
collect the information regarding the product, but do not actually wish to make a purchase

 Summation of average number of customers attend by the entire sales panel in a day was
found out to be 50
 The sales panel was further asked to divide the customers they attended in a day into 3
categories

S.no Average no of No of Non- Window

Customers attended conversions conversions shoppers
per day

1 6 4 1 1

2 4 2 1 1

3 7 5 0.7 1.3

4 10 6 2 2

5 5 4 0.8 0.2

6 4 3 1 0

7 10 4 2 4

8 4 2 0.5 1.5

Total 50 30 9 11
 Findings

It was found out that out of every 50 customers on an average 30 got converted, and 9
despites of being genuine were lost to the competitors and remaining 11 were window
shoppers.

classification of buyers

18%
22%

window shoppers
conversions
non-conversions

60%
 Observation of Different Sales Techniques used by Different
Sales Panel

s.no Name Selling technique used

1 Shanti Cross selling
2 Jugal Relationship selling
3 Rehana Add on selling
4 Pradeep Suggestive selling
5 Advesh Prescription selling
6 Manish Add-on & suggestion selling
7 Rajiv upselling
8 Pankaj Solution selling

Types of Customers in a Retail Store

Customers in a retail store can broadly be put under 5 categories. different style of selling is
suitable for different categories:

1) Well informed
They are properly aware about various options available, conduct a proper research and
screen the market properly before making a purchase decision.

How to deal with them

Suggestive and solution selling are ideal to deal with such shoppers. That is providing them
with desired knowledge about the product in a manner that makes them feel as if the
product is providing them exactly what they need.

2) Showroomers
they check out the various options of products available on stores to find the suitable ones,
and then look for the same products available at cheaper prices online.

How to deal with them

Relationship selling is a suitable technique to deal with such buyers, we can convert them by
comforting and assuring them that they are making a profitable deal on various grounds.
3) Assured customers-
These buyers are sure about what they want, and they look for only those particular products
that they wish to purchase. They want to get the desired products as soon as possible

How to deal with them

Prescription selling is a suitable technique for them. Show them exactly for what they are
asking, as they don’t have much time available.

4) Confused buyers
These buyers are not sure about what they want to purchase. They generally have to less or a
lot of information that creates confusion in their minds regarding what to purchase

How to deal with them

Cross selling and upselling can be techniques that can be used to deal with such buyers. Since
these buyers are not sure about what they need to purchase, more expensive and higher
volume of products can be sold to them.

5) Regular customers
These are the buyers who make repeated purchases from the store. These are an asset and
have a significant contribution to the store’s revenue.

How to deal with them

Relationship selling is the suggested technique. We need to make them feel valued and have
to develop a sense of belongingness amongst them so that we do not loose them to our
competitors.
 Purpose of the Study

 To identify the reasons behind non conversions

 How to address the issues that led to non-conversions
 How to reduce the percentage of non-conversions

In order to identify the potential reasons behind non-further information was

collected from –

a) Sales panel

The sales panel was asked that what could be the potential reasons behind non
conversions. The major reasons from the perspective of sales personnel were

 Replenishment of stock not done on time

 Could not find the right size in ready made
 Price becomes an issue
 Other reasons

Findings
Timely replenishment of stock was a problem identified by a majority of sales persons. This
problem depicted a communication gap between the sales panel and the management
team. Hence there exists a need to create a more organized and efficient communication
channel.

b) Non-conversions

Buying process of approximately 50 buyers was observed and were questioned regarding
the reason behind not making a purchase. major reasons behind not making a purchase on
the basis of observation and feedback received from buyers were

 48+ sizes not available in readymade

 Less variety of shoes and other accessories
 Not much option available when it comes to budget products
 Long waiting period in made to measure and custom tailoring
 Other reasons

Findings
Non availability of much options when it comes to budget products and time constraints were
pain points of a large number of customers which needs to be addressed.
Competitor Analysis
CP E11

Catchment Analysis
 Conclusion

So, we can conclude that the footfall conversion is over 60% for the store but a minimum of

70% conversion rate should be maintained for better profitability. For that I suggested some of

the following things that they can consider for increasing the conversion:

 Need more varieties in Readymade Garments preferably in shirts.

 Feedback should be on TAB or display at store’s counter so that we can easily solve the

query on the spot, because sometimes customer give wrong feedback by mistake. (Eg:

Van Heusen, Pantaloons, Louie Phillip)

 There should be a guard at the gate for easy convenience.

 Stock auto-refilling of items should be there for both RMG & Fabric products.

 Social Proof – Just like ecommerce site uses customer feedback to gain the customer’s

confidence.

 Customer Engagement – By providing a small play area to the children accompanied

with their parents.

 Pitch woman to increase the customer segment by adding women apparels.

 Appendices

1. https://en.wikipedia.org/wiki/Raymond_Group

2. http://www.financialexpress.com/news/raymond-board-approves-foray-into-real-estate-

sector/518380/0

3. ^ ET Bureau, "India Inc seeks conducive tax environment, bold reforms", The Economic

Times, 7 June 2014

4. ^ "Park Avenue Woman's Online Catalog". Archived from the original on 20 September

2012. Retrieved 4 November 2012.

5. ^ "ColorPlusOnline.com – Online Shopping and Retail Store". Archived from the

original on 2 October 2013. Retrieved 8 September 2013.

6. ^ Patwa, Bidya Sapam,Prasannata (3 April 2019). "Raymond starts real estate business

with Thane residential project". Mint. Retrieved 4 April 2019.

7. ^ "India's Most Trusted Brands 2014". Trust Research Advisory. Archived from the

original on 2 May 2015.

8. http://www.raymond.in/

9. Raymond’s software ‘Shoper9’ and ‘Litmus’.