Research Project Report

On The Topic Of
Growth of Retail
Marketing in India
Submitted in partial fulfillment of the requirements of
Master of Business Administration (MBA)
Kurukshetra University, Kurukshetra

GUIDED BY: SUBMITTED BY:

SARIKA MAM VIPIN AGGARWAL
MBA09/11

Department of Management Studies

NC College of Engineering Israna, Panipat
SESSION 2009 – 2011
Introduction

With organized retail in India pegged at Rs 25,000 crore (Rs 250 billion) -- out
of a total of Rs 800,000 crore and marketing companies are setting up shops
to provide differentiated services to clients. Till now sales people were the link
between the retailer and the producer. But sales personnel are busy selling a
product and do not have a fair idea of what retailing is about. The focus is to
prioritize retail. That is, not only to sell a product to a consumer but to get the
consumer to interact with the product. Gone are the days when retailing
meant mere availability of a product. With competition becoming stiffer
companies are looking at 'experiential' marketing. Also the lack of proper
metrics to measure marketing spends is a serious issue.

In today's swiftly changing business environment, there is no option but to be

in the know - to be constantly on the move, keeping tabs on the shifting trends
in the market place and maneuvering your strategy to stay on top. The retail
arena today is very different - the opportunities are incredible but exploiting
them is extremely tough.

Super smart shoppers know all the rules of the game. They can instantly
sense a good buy and lap it up or sniff out a bad product and dismiss it. Their
expectations are tough to meet but for retailers aiming to make a big sale,
there is not much of a choice but to find ways to win customers over and keep
them permanently happy.

In an environment, which is still restrictive in many ways and lacks adequate

infrastructure, this becomes a formidable task. So how are Indian retailers
coping up and how long will it be before organized retail becomes the primary
way of selling.

This report also surveys the property market and reiterates the significance of
IT in organized retail before presenting a payback analysis to reveal the
financial aspects involved.
India's attempt to go the international way in retailing has met with some
success though not quite as expected. At about 2 per cent of the total retail
market, we are still only scraping the surface. Easy to see why. Only a few
large industry houses have invested in this sector and even fewer have put in
any significant sums of money in a business, which is capital intensive in
nature. The fragmented make-up of the consuming market, complex
geographical and cultural structure made more difficult by poor infrastructural
linkages do not allow economies of scale immediately.

But a tremendous opportunity exists in the Indian market and organized retail
will prevail as in other parts of the world. It is only a matter of time before that
happens and it is probably closer than we imagine. This is the right time to
invest and continue investing in the business. Profits may come in only after
five or even seven years, but that's the way this industry operates and unlike
some of the other sectors, this is not a business where revenues are
imaginary and profits illusory. The market exists, the consumer is out there
spending that money somewhere - you just have to get him into your store.

In this review the state of business and potential and more importantly, study
the best practices being followed by various retailers in India. I also present
in-depth analysis of practices in the food and apparel sectors supported by
case studies and insights into the financial side of the business.

The size of the industry is estimated at Rs 16,000 crore and is growing at

the rate of about 18-20 per cent per annum. The two areas that have
seen action in organized retail are apparel and food retailing with sales
of Rs 5,000 crore and Rs 1,800 crore, respectively. Segments like
consumer durables retailing and books and music have grown but not
as anticipated.

The change in the social formats has led to the development of modern retail
outlets, mainly in the southern parts of the country. Chennai, Bangalore and
Hyderabad are developing as the hub of organised retail in India. The culture
is spreading to the otherparts of the country too, with the western and
northern parts of the country too providing good opportunities currently.
Different players are trying out different formats. A successful fully Indian or
‘swadeshi’ model in Indian retailing is yet to be developed. The models, which
are highly successful in certain areas of the country, are able to achieve only
moderate success in certain other areas.

Retail Realities:
 Unorganized market: Rs. 583,000 crores
 Organized market: Rs.5,000 crores
 5X growth in organised retailing between 2000-2005
 Over 4,000 new modern retail outlets in the last 3 years
Over 5,000,000 sq. ft. of mall space under development
Review of literature
 Suja R.Nair”1I have taken the information regarding the factors influencing
reatail sector, Decision making, Concept of consumer behavior” is studied to
know about the various factors those effects the consumer behavior these can
be external as well as internal”
 “Leon G. Schiff man and Lesli Lazar kanauk”2I have taken the information
regarding study of the retail sector is the study of how individuals make
decisions to spend their available resources (Time, Money and Efforts) on
consumption related items. It includes the study what they buy, when they buy
it, when they buy it, where they buy it, how often they buy it and how often
they use it
 “Marketing research”3I have taken the information regarding sample design
from this book. I have taken the information regarding the type of sampling
from this book
 “Kothari, C.R”4 have taken the information regarding methods of data
collection, collection of data through Questionnaire, collection of secondary
data” are referred before the data collection from this book” Decisions
regarding what, where, when, how much, by what means concerning an
enquiry or a research study constitute a research design
Significances

• Retail sector is fastest growing sectors plays an vital role in Indian

economy.
• Retail sector have a special impact on the daily life of the modern day
man, which requires fast mobility with reliability.
• Retail sector plays an vital role in employment generation.
OBJECTIVE :-

In India the scope of retail sector is very bright and there is wide improvement in
India in this sector The objectives are set up in the start of the study, because on
the basis of these objectives we have to do the research work .these objectives are
summarized as under

1. To study the which brand is on the too in retail sector

2. To find the extent of brand loyalty of consumers via retail sector

3. To find out what is the prime reason for so much growth in India in this sector
4. To find out the reason why govt don’t encourage the retail sector in backward
states.
RESEARCH METHODOLOGY
The research carried out is Exploratory in nature and sampling methods used are
Convenience and Judgment sampling.

INFORMATION SOURCES:

PRIMARY SOURCE
• Consumers

SECONDARY SOURCE
• www.hindubusinessline.com
• www.shoppersstop.com
• www.ksa.com
• www.thomasnet.com

DATA COLLECTION TOOLS:

• Questionnaires
• Personal Interviews
• Magazines
• Internet

SAMPLE SIZE: 30-35

LOCATION : SONIPAT/Delhi/NCR
BIBLIOGRAPHY:

www.google.com

http://www.fibre2fashion.com/industry-article/free-retail-
industry-article/indian-retail-industry-its-growth-challenges-
and-opportunities/indian-retail-industry-its-growth-
challenges-and-opportunities1.asp

http://www.india-reports.com/summary/Retail-Scene.aspx

Kotler, P., ‘Marketing Management