A PROJECT REPORT ON

A CUSTOMER PERCEPTION ANALYSIS OF IN-HOUSE BRAND IN GARMENT CATEGORY AT SHOPPERS STOP

Submitted for partial fulfillment of the requirements for the degree of POST GRADUATION DIPLOMA IN MANAGEMENT (MARKETING) BY NEHA SINGH SIKARWAR

Roll No. 0089

Under the guidance of Mr Sunil Verma A Study conducted for SHOPPERS STOP, PUNE

INDIRA INSTITUTE OF MANAGEMENT TATHAWADE, PUNE 41103

ACKNOWLEDEGEMENT
With great zeal, I present my individual summer training Report in PGDM (SEMESTER III) on SHOPPERS STOP (PUNE) INORBIT MALL. I convey my deepest gratitude to Mr. NITIN ALMEDA (UNIT HEAD), Mr. HEMANT DANGE (OPERATION HEAD), and Mr. GANESH SONARE (DEPARTMENT HEAD WOMENS SECTION) and MS. NEHA KUKKAL (HUMAN RESOURCE) , and all other staff members of SHOPPERS STOP who have been very co-operative and helpful in providing vital information for my project.

This Summer Training has imparted me a professional exposure to the real corporate world and its general management orientation. By working at SHOPPERS STOP, studying different BRANDS of SHOPPERS STOP, knowing the criteria of making LOYAL CUSTOMERS, interacting with professional departmental heads and by preparing this report, it has added a practical touch to my theoretical knowledge.

I avail this opportunity to convey my sincere thanks to DR PANDIT MALI, the director of INDIRA INSTITUTE OF MANAGEMENT PUNE. I am thankful to PROF. SUNIL VERMA, my project guide for recommending me the necessary information for the report. Her instilling support and enthusiasm, expert guidance and insight have lent my project a unique touch. I forward my gratitude for the compulsion of this most wonderful aspect of our PGDM curriculum without which knowledge of management is incomplete and futile.

At last I am also thankful to my family member and friends who had given me their constructive advice, educative suggestions, encouragement and co-operation to prepare this report. PLACE: PUNE DATE: MISS NEHA SINGH SIKARWAR

EXECUTIVE SUMMARY
At shoppers stop lots of rich customers walk in towards the garments sections the branded garments are higher in price; it was found that all customers do not want high priced garments. So local or in-house brand of garments was placed in shop to increase the revenue from garment category. As a researcher we designed a customer questionnaire and tried to understand the customer acceptance at shopper stop towards in-house or local brand of shoppers stop.

PROJECT TITTLE: A customer perception analysis of in-house brand in garment category at shoppers stop in pune. COMPANY: SHOPPERS STOP OBJECTIVE: PRIMARY OBJECTIVE
1) A CUSTOMER PERCEPTION ANALYSIS OF LIFE AN IN-HOUSE BRAND IN GARMENT CATEGORY AT SHOPPERS STOPS AT PUNE.

2) TO, UNDERSTAND VARIANCE IN TASTE AND PREFERENCES OF

CUSTOMERS AND ITS IMPACT ON OFF TAKE OF LOCAL BRAND AT SHOPPERS STOP

SECONDARY OBJECTIVE
1) TO FIND OUT THE VARIANCE SUGGESTED TO STORE FOR WIDTH & DEPTH OF GARMENT [PRODUCT MIX] IN CONTEXT OF COLOUR, TEXTURE, FABRIC, DESIGN & SIZE. 2) TO FIND OUT ABOUT THE ACCEPTANCE LEVEL OF IN-HOUSE BRAND TO OTHER BRANDED APPARELS

3) TO, ANALYZE THE GROWTH TREND & PROSPECT OF IN HOUSE BRAND OF APPARELS.

RESEARCH METHODOLOGY:
As a researcher at shoppers stop in-orbit mall it was found that the customer needs some simple garments as product mix which enables the customer to choose between high priced branded garments v/s low priced in-house brands life. Life is shoppers stop in-house brand this brand is available at shoppers stop only, as a researcher we analyzed the customer acceptance for life in-house brand in garments. We prepared a customer questionnaire and analyzed the customer expectation from shoppers stop apparel section.

SAMPLING TECHNIQUES: NON PROBABILTY CONVINENCE SAMPLING. SAMPLING METHOD: CONVINENCE SAMPLING, IN GARMENT SECTION SAMPLE UNIVERSE: RESIDENTS OF PUNE CITY. SAMPLE FRAME: SHOPPERS STOP CUSTOMERS. SAMPLE UNIT: INDIVIDUALS (HOUSEHOLDS, BUSINESSMAN, COLLEGE
STUDENT, WORKING, ETC).

SAMPLE SIZE: 150 COSTOMERS DATA COLLECTION METHOD: PRIMARY AND SECONDARY DATA. PRIMARY DATA: CUSTOMERS QUESTIONNAIRE. SECONDARY DATA: INTERVIEWS, MAGAZINE, BOOKS, ARTICLE. RESEARCH TOOL: QUESTIONNAIRE. RESEARCH ANALYSIS: PIE CHART, TABLE AND INTERPRETATION.
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FINDINGS:
1. The spending habits of kalyaninagar Pune residents are high due to high earnings and spare liquidity 2. The customer preferences in context to the payment option in large format store such as cash options are available with plastic money options and in order to provide convenience in spending by the customers to increase ticket size. 3. The customers are very prone to change their purchase destiny and the reasons for drifting away of customers is either for change or better product mix options available. 4. The customers are niche customers and are choosy and quality conscious, proper visual merchandizing with clarity in message and discounts enables the intelligent creamy class to become the frequent customers. 5. The professional approach of salesperson which educates the customers about the product and stress the customers to take its own reasons to purchase product is logically accepted by most of the customers as it quenches their intelligence 6. 7. Better parking facility increases the customers foot fall into a large format stores Commercial vicinity of the organized retail format also increases the customers inflow into the retail outlet. 8. 9. 10. The sizes available in life section are running short Life was applauded by many customers in kids wear at shoppers stop. Promotion was not effective since gifts promised were not there, no discounts on weekends

CONCLUSION:
Since shoppers stop in orbit mall (pune) is a new store in order to increase its profit and sales, it must try to focus on its in-house brands life because it has highest loyal customers for this brand and since this is an in-house brand which will increase the profit margin also. So, shoppers stop must increase promotion of life ,take frequent suggestion from c.c.as (CUSTOMER CARE ASSOCIATE)and f.as (FASHION ASSISTANT),must have exclusive trendy designs because it is positions as an youths brand.
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SUGGESTION:
The study has provided with the useful data from the respondents. There has a lot to be recommended. Following are the recommendations: In organized retail the sales person at store should be well versed with all professional approach which is needed by the educated niche class of customers in which the basic information of the entire product should be thoroughly understood by the customers The product feature explanation by professional sales person imparts proper and adequate knowledge about the product by the sales person educates the consumers thoroughly and later on this increases the trust of customers on the retailer Proper product merchandize mix and adequate discounts offered by the retailer increases the creditworthiness of the retailers and this compels him to close sales in the store itself Visual merchandize also plays a vital role in retail operations; the message which is transmitted by visual displays should be clear, contemporary and as per the seasonality The frontal display should match with latest fashion and trends going on and all frontal accessories should change frequently in order to create variety to young and niche customers, this class looks for freshness and change frequently. Better variety of products displayed in width increases cross selling of products which in turn increases footfalls to the stores. The changing tastes and preference also increases the customers value for the stores. The customer enquiry is designed to be efficiently converted into prospective customers with efficient customers mood swing monitoring. The critical factors responsible for sales enhancement were also taken into account for market research project. A brief and critical analysis was taken into account and corrective suggestions and recommendations were given with a brief conclusion with corrective measures was submitted.

SCOPE:
1) The Indian organized retail sector is on the threshold of growth boom, i.e. 35 to 40 % CAGR (compound annual growth rate) is the anticipated growth rate expected till 2016. As per AC Nelson Report. 2) The shortcoming of European retail growth boom had been eliminated and a fast and continuous retail growth strategy had been designed so that a faster growth rate in India. 3) Management is like a coin having two sides; one is the theoretical part and second is the practical part. In the theoretical part of management we learn in our classroom from the lectures, seminars, group discussions that are arranged from time to time. 4) To know the practical aspect of management a practical training is provided to the students. The main idea behind practical training is to bring the management students face to face with the actual environment of practical management so that he/ she will be able to apply theory to practical situation before finally moving into the professional world to show the efficiency and capability. 5) The project study focused on Shopper stop as a product and the subject is to understand the perception analysis of customer to find out about the image of shoppers stop. 6) In this study efforts have been made to prepare the report as realistic as possible.

LIMITATION OF THE STUDY:

1) It is very difficult to measure perception by means of mathematical tool. 2) This research was done in pune in orbit mall hence these are only valid for pune in orbit mall.

3) It is assumed that respondents have full knowledge of shoppers stop but if he doesnt have proper knowledge then result may came wrong. 4) The respondents might have provided with the wrong information.

TABLE OF CONTENTS
S.NO PARTICULAR Executive summary PAGE NO. 4-8

Chapter 1 Chapter 2

1.1Introduction 2.1Size of the Industry 2.2Growth trends 2.3Government policies 2.4Major players 3.1Company and product profile 4.1Literature review 5.1Objective and scope of study

9-11 12-17

Chapter 3 Chapter 4 Chapter 5

18-21 22-40 41-42

Chapter 6

Chapter 7

Research methodology 6.1Research design 6.2Sampling design 6.3Data collection 6.4Limitation 7.1Data analysis and Interpretation

43-47

48-61

Chapter 8

8.1 Findings and suggestion

62-64

Chapter 9

9.1 Conclusion

65-66

Chapter 10 ANNEXURE

10.1 Bibliography QUESTIONNAR

67 68-70

CHAPTER - 1 INTRODUCTION
The purpose of study under this project is to determine the impact of perception analysis of customers in house brand in garment category in increasing shoppers stop sales in Pune city which is situated at in orbit mall. Perception analysis is comprehensive term, it is a most wide concept among marketing, it includes customer satisfaction, customer response, . Shoppers stop perform promotional activities like exchange offer on salwar ,kameez, buy one get one free on shirts , Rs 1000 gift vouchers , fortune wheel offer , perfume on purchase of Rs 9500 and first citizen membership card. In today s competitive scenario market research is an sufficient tool , to have watch on opportunities and changes in competitive environment so as to have competitive advantage that cannot be matched by others. In todays world of intense competition and rapid dynamism, all the companies worldwide are tuning their focuses on the customer. Suddenly, the customer had succeeded in capturing all the attention of the companies towards him, so much so, that the once famous maxim, customer is the god has become so true and relevant today. There has been a paradigm shift in the thinking of these companies and none other then the customer has brought this a Earlier there was a sellers market, since goods and services were in short supply and the sellers use to call the shots. But, ever since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Today, marketers are directing their efforts in retaining the customers and customers base. Their focus has shifted towards integrating the three elements people, service and marketing. The customers importance has assumed imponderable proportions in todays world, because of the inherent value that the customers command. A customers can make or break a company. It is the responsibility of every company to see that all its customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction
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and will spark off a chain reaction and spell doom for that company. In such scenario, retention of the existing customers assumes diabolical proportion. Research has thrown light on some important aspects of customers retention it has been proved empirically that acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers. The purpose of study under the project is to determine the customers perception and reason why in-house brands are dominated and are not preferred as compare to other brands. In house brands are those brands which are manufacture and sold or licensed by a store. These are self owned brand of an departmental store. Shoppers stop in-house brand are:1) Life 2) Stop 3) Haute curry 4) Mustang 5) Austin reed ,etc

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CHAPTER- 2 SIZE OFINDIAN RETAIL INDUSTRY

The present value of Indian retail market is estimated to be 1, 20,0000cr (1270billion) and annual growth rate is 11.2% retail market; and organized retail growth rate is 35-40% CAGR. In food and grocery is of RS 7, 43,900cr is the largest of the different types of retail industries present in India. Furthermore around 13 million retail outlets help India win crown of having highest retail outlet density in the world. But the retail turnover per square feet is lowest globally. This implies that profitability of Indian retail sector is very less in global context. Our study is intended to analyze the different aspects of garment retail industry with respect to Shoppers Stop. Some fact related to our study is as;Contribution to GDP: India-11% Share of organized Retail is 6 % USA-10% Share of organized Retail is 55% China-8% Share of organized Retail is 24% Brasil-6% Share of organized Retail is 45% (Source:-CII-AT KEARNEY RETAIL STUDY 2009). 1.1 GROWTH TRENDS: Factors which increase the retail industry in India. 1. Rise in the purchasing power of Indians: The rise in the per capita income in the last few years has been significant, which is post 1991 liberalization of Indian trade. 2. Use of credit: a typical Indian is most conversant with using credit card than carrying money. This has led to shift of the consumer base towards supermarket and make the payment in the form of credit.

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3. Ambient atmosphere: a visit to a retail store appears to be more soothing for generation Y. people and kid prefer to shop in an air conditioned. 4. Food and apparel retailing key drivers of growth in organized retail sector. 5. Organized retailing in India has been largely an urban phenomenon. 6. Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption. 7. ITC is experimenting expansion in rural retail with its e-Choupal and Choupal Sagar rural hypermarkets; the success of rural organized retail will help organized retail reach its development destiny in shorter period of time.

1.2 MAJOR PLAYERS: Top company of India India topped the AT KEARNEYS global retail development index for two consecutive years and this has infatuated Indian as well as foreign retail player to invest. 1)BIG BAZAR: big bazaar is a chain of department stores owned by the pantaloons group (future group) and headed by Kishore Biyani and head quarters at Mumbai. It offers all types of household items such as home furnishing, utensils, fashion product etc. 2) K RAHEJA: they forayed into retail with shopper stop; Indias first department store in 2001 .it is the only retailer from India to become a member of prestigious intercontinental group of department store. They signed 50:50 joint venture nuance group for air port . 3) TATA GROUP: established in 1998 trend .one of the subsidiary of Tata group operates westside,a lifestyle retail chain and star India bazaar a hypermarket with a large assortment of

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product at the lowest price .Tata has also formed a subsidiary named infinity retail hitch consist of Croma ,a consumer electronic chain.

4)RPG GROUP: one the first entrant into the organized food and grocery retail with food world stores in 1996 and then formed an alliance with dairy farm international and launched health and glow outlets. RPG has 8 lakh sq feet of retail space with turnover of 6.5 billion in 2010

5) LAND MARK: was launched in 1998 in India .lifestyle is spread across 10 cities covering 5.8 lakh sq feet .they plan to invest Rs 300 cr in the next two year to expand on maximum chain.

6). PIRAMAL GROUP:IN September 1998 ,PIRAMAL enterprise announced their arrival into retail with launch of three retail outlet .Indias first true shopping mall of international standard road, a lifestyle department store named primal and family entertainment centre known jamming. as

7). BHARTI WALMART: THEIR PLAN INCLUDE US $ 7 billion investment in creating retail network in the country include 100 hyper markets. They signed 50:50 joint venture .WalMart will do cash and carry and bharti will do the format end. 8). RELIANCE: Indians most ambitious retail plan are by Reliance. There are already more than 300 reliance fresh stores and first reliance mart ha opened in Ahemdabad.

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Predictable mall distribution space in India:

percentage

26%

30%

Delhi Mumbai Hydrabad

5% 5%

7%

pune 27% Bangalore Tier two cities

1.3 GOVERNMENT SUPPORT AND POLICIES:

India's government seems to be on a gradual but definite path toward allowing foreign retailers into the country.... suggests the A.T. Kearney's Retail Development Index 2010. It is a common knowledge that the Union government has to face a number of hurdles both from it's opponents as well as it's allies before it could announce the final verdict. There have been demands from all corners regarding framing of rules to safeguard interests of the so-called small traders. Simultaneously economists have the consensus that industrialization is imperative for the growth of the economy and foreign investment has to play an inevitable role in it. Entry of large players: stiff opposition from Left Parties The recent outburst of fury among the Kerala's LDF (Left Democratic Front) Government has been noticeable. They have exacted for a three-pronged approach to prevent the retail giants from serving the Keralians. At the first stage, not only MNCs but also the local retail giants like Reliance will be shown the red signal. In fact a magnified CPI protest has compelled a Reliance Fresh outlet in Kochi to take police protection. The draft of a bill has been finalized to amend the
15

Kerala Essential Commodities Act so that the state government can intervene in the retail market. As a second step, local councils (70% of which is controlled by the Left) will deny licenses, that are mandatory to start a retail chain in the state. Kochi and Tiruvananthapuram corporations will be in fact commanded to reconsider the licenses of outlets that are already operating in the regions. This strategy grants more power to the state. However a ban on shopping in these outlets is still not clear. The third and the most revolutionary judgment is actually an outcome of the whole game. Government-controlled supermarkets and hypermarkets will be established in some of the key cities in the state. This rigid legal wall not only in Kerala but across the country has been born out of a traditional mindset. Kerala claims to have a literacy rate of 90.92% and a sex ratio of 1058 females per 1000 males. The data speaks for the government's prudent commitment in the case of Kerala. So it is high time that the government opens up avenues for its people to let them grow and become self dependent. But the government is still holding good, the conventional 'infant industry' outlook. The main worry is the negative impact on the already gloomy condition of employment. Let's make an attempt to understand the vicious circle of unorganized retailing and present employment scenario. Unorganized retailing has a share of about 96% in the Indian retail sector. But why should people work in such miserable situations if the manufacturing and services sector are booming is the overwhelming question. There has been a trend to migrate to cities in search of alluring bright city lights. But the consequences has been been even worse- earning lower than expected wages (Harris Todaro model of migration). The illiterate and unskilled people ultimately set up a grocery shop to earn a living. This gives birth to another unorganized retail shop in India and thus enlarges its share. So the unorganized retail market in India has born out of fate rather than selection. The Actual Scene Those opposing the expansion of organized retail in India must understand that the share of primary sector shrinks and that of the secondary and then the tertiary sector expands as an
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economy grows. This is the basic structural adjustment in case of any transforming economy. India is at a take off stage. Retardation in the agricultural sector is not permissible but inhibiting the growth of services on grounds of protection to agriculture is more irrational. A proof of this has been seen in a small town of North Bengal. The opening of a Big Bazaar (brand name for stores under Pantaloon) departmental store has seen a human deluge of about 7,000 people in the 35,000 sqft shopping mall by 3pm. This clearly indicates that people (even in remote places) have become fed up of monotonous marketing practices and demand nowadays is purely governed by choice. The Ruling UPA government's outlook The UPA government is rather clear in its aim of taking India to new highs. The commerce minister has repeatedly asserted that FDI will kill two birds with the same stone. It will generate substantial direct as well as indirect employment and at the same time will not tamper with the present scope of the unorganized retail market. The indirect employment includes jobs in transport, packaging and other logistic services. It will enhance competition in the country thus giving a virtual chance to face global challenges while operating at home. Mr. Nath is clearly focused on the utilization of FDI in acquiring benefits. It is true that such investments will bring in huge imports but this may also help in the Indian products reaching the foreign consumers. Foreign majors such as Wal-Mart, Tesco and Carrefour are ready to enter India. The UPA government has already permitted 51 percent FDI in Single-brand products without consulting its allies and it is expected that slowly but steadily the government will achieve its goal.

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CHAPTER NO.3 COMPANY AND PRODUCT PROFILE:

Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. With the launch of the Navi Mumbai departmental store. As a part of its new philosophy of providing the customers with a new shopping experience, Shoppers Stop came up with several initiatives - it planned to increase per store area from around 40,000-45,000sq. Feet to 75,000-85,000 sq. feet. It also started a new concept in the retail industry by setting up trial rooms with day and night lighting options so that consumers could check how garments would look during the day and in the night. The other initiatives included a new dress code in black and white for the employees and training sessions for the employees to help them tackle demanding customers with varied tastes. Shoppers Stop also introduced a company anthem for the staffers penned by renowned lyricist Gulzar and sung by popular Indian playback singer Sonu Nigam. It was played every morning across all outlets in the country as a song of celebration. Shoppers Stop brought out collectible shopping bags with the different &attractive themes like fashion for the ages. To make shopping an enjoyable experience for its customers, it launched an in-store radio in association with Blue Frog Media Pvt. Ltd which aired music across all its stores in India while radio jockeys offered tips on fashion and wellness. It also planned to start its online portal by the end of 2008 to enable customers to shop online. In addition to these initiatives, Shoppers Stop also started an environmental awareness campaign called Think Green. As part of this initiative, it planted more than 500 trees and distributed 1,500,000 seed sachets among its customers. Besides, a series of print and television commercials in black and white with an environmental message conveying Shoppers Stops repositioning strategy were launched effectively by the company. Shoppers Stop planned to invest around Rs 15 billion to increase the number of outlets to 48 by 2011. It had earmarked Rs.200 million for the rebranding and repositioning exercise. But customers said that from their point of view, there was no major change in terms of price or special offers. Some
18

analysts were of the view that the new logo had nothing unique to offer except for a change in shape. Some even wondered why the retailer had decided to rebrand itself considering that it was doing reasonably well and had just completed a successful year. Turn over of shopper stop till June is $ 43.92 bn.

Store Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name Shoppers Stop in India. Shoppers Stop has 43 stores across the country and three stores under the name Home Stop. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Shoppers Stop opened stores in Amritsar, Bhopal, Indore, pune and Aurangabad. Product Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Ginny & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers Stop retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, whos men's and women's outerwear are retailed in India exclusively through the chain. In October 2009, Shoppers Stop has bought the license for merchandising Zoo zoo the brand mascot for Vodafone India

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Marketing In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New mantra .And introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, Dior across the stores. The focus of the reposition was on the service, ambience up gradation and customer connect. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth, up the fashion quotient through merchandising, and create ambience that connects with the mindset. The brand campaign addresses environmentrelated issues in a youthful, tongue-in-cheek manner. Shoppers Stop as a brand active on social media marketing platforms with Facebook and Twitter to connect with this audience. Shopper stop sister store Crossword Bookstores Crossword Books is the largest chain of bookstores in India with 52 branches. Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword Crossword is positioned as a lifestyle bookstore with their spacious, well laid out stores which encourages customers ease in browsing through the merchandise of books, music, stationary and toys. Home Stop Home Stop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets, modular kitchens and health equipment. Desi Cafe Cafe and their operations have been taken over by CAF COFEE DAY(CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its Desi Caf outlets.

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Hyper City: Hyper City provides customers a wide variety of range of products for shopping in a large and modern retail environment. It offers a contemporary range of products, sourced from both local and international markets. .

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CHAPTER NO.4 LITERATURE REVIEWED:

4.1 Private labels are slowly gaining prominence at big retail stores. DARE gives you an insight into how they work They have almost all the elements of a big labela brand name and exclusivity. Maybe they lack a few things, like a big advertising budget and a sporty price tag. But still, they are big and are here to stay. In fact, chances are that they comprise nearly 40% of your shopping bags while you shop at retail outlets like Westside, Shoppers Stop, Reliance Fresh, Big Bazaar and so on. Clueless about what we are talking? Welcome to the world of private label brands.

Be it Tatas Westside, Kishore Biyanis Big Bazaar or RPG Groups Spencers, everyone is betting big on private labels for they are fast becoming one of their major revenue spinners. So what makes you buy them, knowingly or unknowingly? What makes the retailers go all the way to launch and maintain these brands? What makes these brands successful despite no advertising? In this story, DARE attempts to answer some of these questions.

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4.1.1

How

big

are

the

private

labels?

Private labels, often referred to as in-house brands or store brands, are those that are owned by the retailers themselves. For example, Shoppers Stop has several in-house brands such as STOP, Kashish, LIFE, Vettorio Fratini, Elliza Donatein and Acropolis. Reliance Fresh sells grocery such as pulses, rice, tea, noodles under the Reliance Food brand and the dairy products such as its curd is sold under the Dairy Life brand.

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According to a FICCI-Ernst & Young 2007 report, as quoted in The Marketing Whitebook 200910, the retail sector in India was worth $280 billion, of which organized retail comprised 5% at $14 billion. In an ASSOCHAM-KPMG joint study, the size of the retail industry was pegged at $353 billion in 2008. It was estimated to grow to $410 billion by 2010, of which organized retail would value approximately $51 billion. According to Images Retail Report 2009, as quoted in "Indian Retail: Time to Change Lanes" by KPMG; private label brands constitute 10-12% of organized retail in India. Of this, the highest penetration of private label brands is by Trent at 90%, followed by Reliance at 80% and Pantaloons at 75%. Big retailers such as Shoppers Stop and Spencers have a penetration of 20% and 10% respectively. Globally, store brands constitute nearly 17% of retail sales. In fact, international retailers such as Wal-Mart and Tesco have 40% and 50% of in-house brands in their stores. 4.1.2 What is a private label

A private label brand, often referred to as an in-house brand or store brand, is that which is owned by the retailers themselves. Examples Shopper Stope : STOP, Kashish, LIFE, Vettorio Fratini, Elliza Donatein, and Acropolis Webside : Gie, 2F4U 4.1.3 Store brands: An overview

In India, the growth of private labels has been phenomenal and is slowly gaining more store space. Aditya Birla Retail, which operates the More for You food and grocery chain, is reportedly pursuing strategies to increase its private label sales from the current 3% to 10-15% of total sales in the next two to three years. During the course of this story, DARE visited several such retail outlets. Here is a pen picture of what we found: Store space: Nearly 40-50% of the store space was dedicated to store brands. These products shared the shelf space with other branded products. For example, in the Reliance store that we visited, its curd brand Dairy Life was placed next to the other brands, such as Amul.

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A number of store brands: This is especially true for apparel. Shoppers Stop has several in-house brands. For example, in the womens wear category itself it has STOP, Kashish, Remika etc. Similarly, in the mens wear category, it has STOP, Life, Vettorio Fratini, and so on. These products are not differentiated from the other brands in terms of store space. It is imperative for

Price tag: These products were priced substantially lower than the modern retail to develop other brands. For example, Reliances tea brand sported a price tag of retail equity than brands. Rs 118 for 500 gms, whereas Brooke Bond, which was placed just If we have strong private brands in our store, that next to it, was available for Rs 132 for 490 gms. itself becomes a strong Catered to a number of categories: In these stores, the store brands were not limited to a particular category. For example in Shoppers Stop, it extended from apparel for men, women and children to crockery, kitchenware, and even furnishings. Similarly, in a Reliance store, it extended from pulses to spices, noodles and even diary products. 4.1.4 How do in-house brands work? differentiator. Atulit Saxena

COO, Future Brands

For a retailer, there are several advantages of introducing in-house brands in their portfolio. Atulit Saxena, COO of Future Brands, explains, Traditionally, private brands worldwide were always conceived to take on category leaders. If we are talking about soaps for instance, you might have 15-20 soaps, but as a large organized modern retail player, you might want to create your own trademark in your store, which is of the same quality, but at a price that is substantially lower. This also becomes the differentiating factor for a retailer, as these brands are exclusively available at that retail outlet only. So a customer, for example, may want to revisit the store if they find the quality comparable to others at a more affordable price point. As these brands create an identity for the retailer, there is a lot of work that goes into the prelaunch phase. Salil Nair, customer care associate and chief operating officer, Shoppers Stop, explains, We have a very large base of loyal members, called First Citizens. Before we launch, we give a preview to First Citizens. We collect their feedback, so that we can study their likes, their sensitivity to price, their sensitivity to colors, silhouettes etc. We even put it for re-sampling
25

if required, and then we launch it. These brands are then re-invented every year through consumer and competitor surveys.

The quality of the products is also of big concern due to obvious reasons. However, these products have not been able to shrug off the tag of inferior brands. Atulit says, Traditionally, they have been considered as cheaper alternatives to conventional brands. But over a period of time, these private labels are becoming more innovative, are adding more value to the consumers and are able to offer innovation that is similar to an established brand. From a customers point of view, he is getting a similar quality at a much lower price. This is especially true in the apparel space because there it is not just the price advantage that works, but also the design sensibility. The designs are both done in-house and are outsourced as well. For example, while Shoppers Stop frequently ties up with young designers, Pantaloons believes in having its own inhouse designers.

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According to Salil, Private labels are highly profitable. The profits earned from them are almost double than those from the third party brands.

This brings us to the pointthe core strength of the retailers is retailing and not designing and manufacturing products. Salil confirms, We want to remain as core retailers. Therefore, 100% of our manufacturing is outsourced. There are fairly well-established manufacturers who work with us. We have been working with them for the past seven to ten years. So is there any opportunity for entrepreneurs in tying up with these players for manufacturing these products? He says, We are open to that. The selection of a manufacturer is a stringent process. We have a huge terms and conditions list that all our vendors have to agree to and employ. For example, we are against child labor. We have a quality assurance team to evaluate them, the environment in which they work, their financial capability, their commitment, their ability, and their interest level; there is a huge list. Salil Nair says, Five years back, our private label brands were around 17.5% in terms of sales and today they are almost 22.5%a 5% increase. So now we have started dedicating a bigger space for this. All our brands have good representation in our stores so that they have a visual impact. The treatment that our in-house brands get is equal to what other brands would get at Shoppers Stop. 4.1.4 The road ahead Private labels are highly profitable. The profits earned from them double from brands. Salil Customer Associate & Nair Care COO, are than almost those

third-party

Shoppers Stop Ltd.

Private labels are slowly becoming the protagonist in the big Indian retail growth story. Taking cue from the West, Indian retailers are also churning out newer ways to increase their profit marginsone such initiative is the introduction of in-house brands. With Indian customers increasingly accepting these private label brands, they would soon be major contributors to the profits of Indian retailers.

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Stores look in-house for growth

4.2 NEERA BHARDWAJ, TNN JAN 28, 2002 New Delhi: ebony, the departmental store chain, had launched its in-house apparel range ebony etc about 18 months back. in march, it will extend the label to household and personal products. Shoppers stop had launched stop, its in-house apparel brand almost eight years back. In the last 18 months, the chain has added two more private labels in apparel, expanded stop to include household and personal accessories and launched Veda, an in-house jewellery brand. The sabka bazaar outlets of the home stores (this) India have been selling their entire grocery range under its private label. now, when the group is readying to launch hyper markets, it is talking to a variety of suppliers including consumer goods and household appliance makers to sell their products under its private label. Obviously, as departmental store chains come of age, they are taking pains to nurture private labels. not without reason. The current contribution of the private label to ebony's turnover is a hefty 21 per cent. The store is betting on them to take the figure to 35 per cent. And all this sans advertising and promotion. Similarly, for shopper's stop, the contribution of private labels to turnover has grown to 20 per cent from about 4 per cent five years back. of course Indian organized retailers will take a long time to catch up with the likes of Tesco and Sainsbury in the uk, which reportedly garner as much as 40-60 per cent of their turnover from private labels. The Indian retailers, however, have very good reasons to try and emulate the examples. Arvind Kumar, consultant with ksa-technopak, explains the need for private labeling: "the in-house brands are a tool for one retailer to differentiate itself from the other. Plus, they ensure lucrative margins to the stores." in India, where supply-chain inefficiencies abound and manufacturers do not part with margins, the latter can be a compelling reason. There are other reasons too. bs narula of ebony says while ebony etc has started to fill gaps (men's shirts in Rs 400-600 range and evening wear for women) left by branded apparel, it is used proactively to fulfill customer expectations. In fact, narula says that some well-known brands have been rationalized over time to make space for the in-house label. Ajay kelkar, senior marketing manager at shopper's stop, points out that private labels work well with customer loyalty programmers. For one, private label products can be tailor-made to suit the needs of loyal customers and then promoted. Two, they hardly need ad spend. Not surprisingly, the margins in
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private labels are higher too. Narula says they can range anywhere between 20-25 per cent, which are then passed on to the customer, keeping the value-for-money image of these brands intact.

4.3 More Choices in Store: India's Retailers Are Stocking Up on Private Label Brands Published: December 03, 2009 in India Knowledge Wharton If you are in Chennai and in the mood for some

authentic kasundi with your fish, you may be out of luck. The pungent mustard paste is part of the culinary tradition of West Bengal and is not commonly available outside the state. None of the big, pan-India food companies sells it. Supermarket chain Food Bazaar, which is part of India's largest listed retailer, Pantaloon Retail, introduced Tasty Treat kasundi some years ago as a private label -- or store brand -- offering. But you won't find it on shelves across all 119 Food Bazaar stores, only in markets with significant Bengali populations. Similarly, you are not likely to come across Tasty Treat khakra and thepla, traditional savory snacks from the western state of Gujarat, in Food Bazaar outlets in north India. "The product mix varies significantly depending on local tastes and preferences," says Santosh Desai, CEO of Future Brands, which is responsible for private label development for the Future Group, including its flagship Pantaloon Retail. "Unlike national brands where such differences are muted, with private labels, customizing your offering is critical." Private labels weren't always taken so seriously; in the past, they were considered cheap, noname substitutes for "real" brands -- cheap in terms of price as well as quality. They were found mainly in generic products such as detergent and toilet paper, and staples such as rice and sugar. While many consumers bought stores' own brands, which usually sold at a substantial discount to national brands, they didn't often acknowledge it. For the retailer, the private label was one more way to earn a little extra. As quality improved, though, customers became more accepting, and retailers began to change their attitudes.

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Not only are private brands now found across a spectrum of products -- from groceries and staples to apparel, consumer electronics and mobile handsets -- they are considered brands in their own right. The fundamental reason for the success of private labels is their price advantage, made possible by their nonexistent or very limited spending on product development and brand promotion. The bulk of the products are reverse-engineered copies of category leaders and they are promoted within the store, not advertised outside. Their value still resonates with customers, but it is no longer the only reason private labels are finding their way into more homes. In India, the growth of store brands is a function of increasing retail sophistication. Large-format, modern retail stores (known as the "organized" retail sector) -- as opposed to smaller, traditional "mom and pop" stand-alone stores -- are presently only a small portion of total retail in the country. A report by investment bank Northbridge Capital, titled "Indian Retail Research 2009," estimates the total Indian retail market at US$450 billion, growing more than 30% a year and expected to cross US$720 billion in 2011. Of this, organized retail accounts for just 14%, or US$63 billion -- although this sector is expected to grow 40% faster than the overall market to reach US$90 billion in 2010. Harish Bijoor, CEO of Harish Bijoor Consults and a visiting faculty member at the Indian School of Business, Hyderabad, wonders whether the definition of "private label" should include singlestore labels as well. "If it does, then private label's share [of the retail market] becomes quite large. Many small businesses in the unorganized sector do stick their stores' name on the products they sell." 4.3.1Why Private Labels Matter Private labels matter for several reasons, the most important of which is their higher margins. For retailers, gross margins on private labels are, on average, 25% to 30% higher than on those of manufacturer brands. In consumer products especially, retailers' margins on national brands are in the 12% to 17% range, which is not enough to offset the cost of modern trade overhead. With a house brand, the margin can be upward of 40%, points out Pankaj Gupta, head of the consumer and retail practice at management consultancy Tata Strategic Management Group. "From the retailers' point of view, the urgency is obviously because of margin play."

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The introduction of a store label also gives the retailer greater leverage with manufacturer margins and an increased ability to ride out business cycles, because the retailer has more leeway in pricing, marketing strategies and long-term planning. Retailers view manufacturer brands as little more than commodities that can be easily procured from any outlet. Store brands, then, help retailers differentiate themselves. "As these products are unique to our stores, we benefit [from] the increase in [consumer visits] and overall sales," says Gunender Kapur, president and chief executive of Reliance Retail. If a store brand becomes popular enough to become a destination brand, it has implications for customer loyalty and profitability. "If a customer remains loyal to the store but switches brands that work for the retailer" says Avinash Mulky, professor of marketing at the Indian Institute of Management, Bangalore. To some extent, the market for private labels will grow on its own. "The more consolidation there is in retail trade, the greater the growth of private labels," notes Nirmalya Kumar, director of the Center for Marketing and co-director of the Aditya Birla India Center at the London Business School. According to a September 2009 report by PricewaterhouseCoopers on the outlook for the retail and consumer products sector, retailers across Asia -- and particularly in India -- report a strong increase in the sale of private label goods. "India may be Asia's most receptive market for private label goods. Today, private labels account for 10% to 12% of the retail market there, and leading brands are far less dominant than in other countries." Even the economic downturn has not damped that enthusiasm. In fact, private label sales typically increase during a recession as cost-conscious consumers trade down from branded products. While brands tend to return to favor when the economy recovers, the correction isn't to the same degree, Kumar says. "There is a permanent positive effect." Others echo that thought. "As consumers learn about the improved quality of private labels in recessions, a significant proportion of them are likely to remain loyal to private labels, even after the necessity to economize on purchases is no longer required," says a March 2009 KPMG report titled, "Indian Retail: Time to Change Lanes."

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4.3.2 Adding Value Retailers in India are spurring consumers' decision-making by expanding the scope of private labels. In the book Private Label Strategy: How to Meet the Store Brand Challenge, which he co-authored with Jan-Benedict E.M. Steenkamp, Kumar writes: "To be successful with private labels, retailers must remember when private labels add value. They should 'fill a void in the category' either in price or in value." That happens in three cases, according to Kumar and Steenkamp: where a copycat product offers consumers a choice even if prices are similar; where the market can be expanded by offering similar-quality products at significantly lower costs; and where innovative products that are not available through national brands are launched. All three scenarios have been part of the Indian experience. For instance, most store brands in mass categories such as processed foods, personal care and home care are "me-too" products. (Interestingly, brands in grocery items are a more recent phenomenon for both retailers and national manufacturers: Traditionally, staples in India are purchased either in bulk from a wholesaler or loose from the neighborhood store.) The Tasty Treat label took off after a disagreement over margins a year ago between the Future Group and Frito-Lay. The snack company temporarily broke ties with the retailer, and Food Bazaar promptly stocked its shelves with Tasty Treat potato chips and a rival brand, ITC's Bingo. The result: The homegrown chip brand raced ahead. "The Tasty Treat brand outsells better-known brands in many products, and we don't advertise," says Future Brands' Desai. Kapur of Reliance Retail notes that his company's multiple-format stores stock private labels in categories including processed foods, staples, personal and home care, and even dairy and beverages. "The prices are 10% to 40% lower vis--vis similar branded products, while the quality is consistently very good. The share of private labels continues to grow as more and more customers are discovering the value and great quality." The introduction of own-label mobile handsets by telecom retailers such as The Mobile Store, Hot Spot and Universal similarly falls in the second category of value creation by private labels. "There may be customers down the value chain who currently buy traded-in phones who would be happy to upgrade to a new, branded, reasonably priced instrument that is feature-rich and comes with a warranty for after-sales service," says TSMG's Gupta.
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The third category -- offering a product not available from name brands -- is perhaps the most sophisticated way private labels can create value. This was probably the first step taken by organized retailers seeking to launch private labels in India. Store brands in apparel were introduced along with the first Western-style department stores and hypermarkets. When Shoppers Stop launched the STOP brand of Indian wear in the early 1990s, it was the first branded ethnic women's wear range. "Branded merchandise was not available, so retailers had to start their own labels," Kumar notes. Similarly, consumer electronics products have been available for some years through most retailers as big international brands or smaller national/regional brands. But Ajit Joshi, CEO and managing director at Infiniti Retail, the Tata group company that runs the Croma chain of electronics stores, says that "innovative products encourage early trials and are therefore interesting for private labels to explore and be present in." More than the usual laptops and toasters, the "Handpicked by Croma" brand is drawing attention because of its introduction of products including wine coolers, jewelry cleaners and binoculars. Store brands in high-involvement categories such as consumer electronics seem contrary to conventional wisdom. "Indian consumers can be aggressively brand-conscious, especially when it comes to durables," Bijoor says. "The brand is seen as a guarantee of quality and also has flaunt appeal." Joshi notes that in electronics, private labels have "higher acceptance in products and categories that have low brand preference and high functional appeal. In categories that are predominantly driven by leading brands, it is a challenge to get visibility and conversions. Penetration in brand-neutral categories like peripherals and accessories is easier. We have a fair presence in the small appliance and IT category, both of which allow us the flexibility to offer technologically superior products at high perceived value." 4.3.4 'Just another Brand' By that logic, do private brands lend themselves to any particular category of product? "For most consumers, a private label is just another brand. Hence, the categories where consumers have less loyalty to better-known or promoted brands are the categories where retailers should try to push private labels," says Harminder Sahni, managing director of retail consultancy Wazir. Commoditized items with low levels of product innovation and emotional involvement from the
33

consumer, then, are ideal candidates to become store brands. But given the regional variations in India, there is tremendous scope for customization even here. Kasundi and thepla are cases in point, but Desai also cites a to-be-launched staples brand that is a "highly localized effort," with even the variety of wheat differing from region to region. How do private labels get potential customers' attention? For starters, they advertise -- but not for all brands, not at the same scale as national brands, and, often, not in the same media. Unlike national brands, which may opt for 360-degree campaigns using television, radio, print and online media, retailer brands typically rely on local advertising avenues such as radio, leaflets and newspaper inserts. The bulk of the communication, though, happens at the store level. That's because most retailers accept that 80% of purchase decisions are made at the store shelf, and the store is where they have maximum control. Thus, most retailers work on creating multiple touch points within the store, through extensive in-store advertising and placement strategy. "Private labels benefit most by comparisons, so retailers will try to drive sales, for instance, by strategic positioning of the product next to the most expensive competitor," says Bijoor. In-store interactions also have an important role. The traditional Indian shopper prefers to touch and smell food grains before buying. Working on that insight, Food Bazaar outlets display open containers of rice, wheat and lentils to encourage customers to run their hands through the grains and check the quality. Similarly, grinding mills installed inside many outlets reassure customers that the flour they are buying is fresh -- and fresher than the national brands. Retail stores' sales personnel also play a role, especially when communicating the store brand's advantages. The price angle is rarely the focus of the sales pitch. Instead, the emphasis is on how the house brand is superior or similar in quality to the leading brand. Most retailers in India source their private label products from "contract" manufacturers. The KPMG report points out that "[in] India, very few players are into manufacturing of private labels and are very dependent on third parties. For example, Vishal Retail is increasingly shifting from manufacturing to thirdparty sourcing primarily because of increase in categories for private labeling and volumes." Importantly, big brands often source from similar third-party suppliers, a move that has

34

implications for the retailer. Not only do margins increase, the quality of the private label product is likely to be closely matched with the national brand. For consumers who are sitting on the fence, that argument is often the clincher, retailers say. 4.3.5 Who Loses Market Share Despite the activity surrounding private brands, Indian retailers recognize that it is highly unlikely that a private label will unseat the number-one player in any category. In fact, the conventional wisdom is that when a private label enters a category, it is more likely to take away market share from the brands in second and third place. "Private label products typically offer a wider choice to the consumer and should not replace leading category brands that help set consumer expectations," Joshi says. Most retailers are aiming for about 50% revenue from their own labels, though there are exceptions. Pantaloon, the Future Group's apparel store, has an own-brand ratio of more than 80%, while the ratio is even higher for Trent's Westside stores. Consultants advise against tilting too much in favor of private brands. If manufacturer brands decide to walk out and the in-store variety is compromised as a result, customers may follow. Manufacturer brands react to the influx of private labels with understandable wariness, especially during the launch phase of a store brand, when its nuisance value is still to be evaluated. If the retail label looks to be successful, the retailer's bargaining power increases. An addition to the product portfolio means greater competition for the retailer's limited shelf space. The result? Better margins for the retailer and more promotional offers for the customer. At the extreme, if too many players occupy a category, the retailer may opt for brand rationalization and do away with the nonperformers. Retailers aren't tough only with manufacturer brands. They are equally uncompromising when it comes to evaluating the performance of their own brands. Barely a month after launch, Mela -- a home furnishings brand -- was overhauled after Future Group chief Kishore Biyani decided it wasn't working in the existing format. Another in-house brand, Fashion Station, has been phased out on similar grounds. "If you are in the business of retail, your religion is making money for

35

every square foot," Desai notes. "Building brands comes only after store-level efficiencies are achieved."

4.3.6 BRAND LOYALTY Brand loyalty, in marketing consists of consumers commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or otherwise .continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy. Brand loyalty is more than simple repurchasing, however customers may repurchase a brand due to situational constraints (such as vendor, lock-in), a lack of viable alternatives, or out of convenience. Such loyalty is referred to as spurious loyalty. True brand loyalty exists when customers have a high relative attitude towards the brand which is then exhibited through repurchase behavior .this type of loyalty can be great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. Brand loyalty of a current client is a critical asset that must be managed carefully .this loyalty is a major barriers to competition. neglected existing customers. Strengths of preference for one brand compared to other similar available options. This is often measured in terms of repeat purchase behaviour,or in terms of price sensitivity. Philip kotler again defines four patterns of behavior: 1) Hard core loyal- who buy the brand all the time. 2) Soft-core loyal-loyal to 2-3 brands. 3) Shifting loyalty-moving from one brand to another. 4) switchers-with no loyalty Countless new business has succeeded bcoz companies

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4.3.7 PERCEPTION: If every one perceived every thing the same way, things would be a lot simpler BY- MOORHEAD & GRIFFIN.

4.3.8 MEANING OF PERCEPTION: In philosophy, psychology, and cognitive science, perception is the process of attaining awareness or understanding of sensory information. The word perception comes from the Latin words perceptio, percipio, and means receiving, collecting, actions of taking possession, apprehension with the mind or senses. Perception is one of the oldest fields of psychology. The oldest quantitative law in psychology is the weber-fechner law, which quantifies the relationship between the intensity of physical stimuli and their perceptual effects .the study of perception gave rise to the gestalt school of psychology, with its emphasis on holistic approach . What one perceives is the result of interplays between post experience, including ones culture and the interpretation of the perceived .

Perception: definition In simple terms perception is used as the act of seeing what is there to be seen. but what is seen is influenced by the individual , the object, and the situation. Any definition of perception should contain these three elements. Let us consider some popular definition The study of perception is concerned with identifying the process through which we interpret and organize sensory information to produce our conscious experience of objects and object relationship.

37

Perception is the process of receiving information about and making sense of the world around us .it involves deciding which information to notice ,how to categorize the information , and how to interpret it within the framework of our existing knowledge .

Perception includes all those process by which an individual receives the information about the enviourment-seeing, hearing, feeling, tasting and smelling. The study of these perceptual process shows that their functioning is affected by three classes of variable: the objects or events being perceived, the environment in which perception occurs, and the individual doing the perceiving.

38

4.4 FACTORS INFLUENCING PERCEPTION :

SITUATIONAL FACTORS PHYSICAL SETTING SOCIAL SETTING ORGANISATIONAL SETTING

PERCIVERS CHARACTERISTICS NEEDS EXPERIENCE VALUES ATTITUDES PERSONALITY

CHARACTERISTICS OF THE PERCIEVED NATIVE SIZE APPEARANCE LOCATION ETC

INDIVIDUALS PERCEPTION

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4.5 PROCESS OF PERCEPTION:

SENSORY INPUT

SELECTIVE ATTENTION

PECEPTUAL ORGANISATION

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CHAPTER -5 OBJECTIVE AND SCOPE OF STUDY 5.1 OBJECTIVES: 5.1.1 Primary objectives:
1. A customer perception analysis of in house brand in garments category at shoppers stop at pune. 2. To, understand variance in tastes and preference and its impact on local brand at shoppers stop

5.1.2 Secondary objectives:

1) To find out with & depth of product mix in context of colour, texture, fabric, design, trend. 2) To find out about the acceptance level of in-house brand to other branded apparels 3) To, analyze the growth trend & prospect of in house brand of apparels.

5.2 Scope of study:

1. The Indian organized retail sector is on the threshold of growth boom, i.e. 35 to 40 % CAGR compound annual growth rate is the anticipated growth rate expected till 2016. As per AC Nelson Report. 2. The growth boom of organized retail in European countries had been meticulously studied by the Indian retail strategist, and apparels are important for organized retail to grow. 3. The shortcoming of European retail growth boom had been eliminated and a fast and continuous retail growth strategy had been designed so that a faster growth rate in India. 4. Management is like a coin having two sides; one is the theoretical part and second is the practical part. In the theoretical part of management we learn in our classroom from the lectures, seminars, group discussions that are arranged from time to time.

41

5. To know the practical aspect of management a practical training is provided to the students. The main idea behind practical training is to bring the management students face to face with the actual environment of practical management so that he/ she will be able to apply theory to practical situation before finally moving into the professional world to show the efficiency and capability. 6. The project study focused on Shopper stop as a product and the subject is to understand the promotional strategy opted by shopper stop so that it create good image and

awareness in the mind of customer about the product. 7. In this study efforts have been made to prepare the report as realistic as possible. 8. Indian mentality for garment category of product had been analyzed and a prompt and speedy way for prosperity of shoppers stop had planned. 9. Organized retail provides ample opportunity for customers consumerism rate to grow to optimal level.

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CHAPTER NO. 6

RESEARCH METHODOLOGY:
As a researcher at shoppers stop in-orbit mall it was found that the customer needs some simple garments as product mix which enables the customer to choose between high priced branded garments v/s low priced in-house brands life. Life is shoppers stop in-house brand this brand is available at shoppers stop only, as a researcher we analyzed the customer acceptance for life in-house brand in garments. We prepared a customer questionnaire and analyzed the customer expectation from shoppers stop apparel section.

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6.1 RESEARCH DESIGN

Research design is a mapping strategy ,regarding what ,where ,when, how much by what means concerning an enquiry or research .it includes objectives, sampling, research strategy, tools and techniques for collecting the evidences , analyzing the data and reporting the findings. Definition The research design is the structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data

6.1.1 NEEDS AND BENEFITS OF RESEARCH DESIGN

Smooth sailing of the various research operation Advance planning of methods Organizes ideas to look for flaws and in adequacy Anticipates the clients requirement in terms of results and help in proper data analysis

6.1.2 TYPES OF RESEARCH DESIGN

There are several research design approaches, which can be classified as: Pure research Applied research Exploratory research Descriptive & diagnostic research Experiment research

DESCRIPITIVE RESEARCH
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Descriptive study is a fact-finding investigation with adequate interpretation. It has focus on particular aspects or dimension of the problem studied .data are collected by using one or more appropriate methods: observation, interviewing and mailed questionnaire

CRITERIA: This method is applicable to problems, with satisfy certain criteria. 1) The problem must be describable and not arguable. 2) The data should be amendable to an accurate, objective, and if possible, quantitative assemblage for reliability and significance. 3) It should be possible to develop valid standards of comparison. 4) It should land itself to verifiable procedure for collection and analysis of data.

6.2 SAMPLING DESIGN

The chief aim of sampling is to make an inference about an unknown parameter from a measurable sample statistics. A sample is drawn and the data collected from the sample informants are analyzed and on the basis of the result the hypothesis may be accepted or rejected. Population: People of pune city.

Sample frame: Customers of shopper stop.

Sample size: 150

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6.3 TECHNIQUES OF SAMPLING

6.3.1 CONVINENCE SAMPLING:

This is a non probability sampling. it means selecting sample units in a just hit &miss fashion .sample means selecting whatever sampling units are conveniently available.

6.3.2 ADVANTAGES
cheapest and simplest does not require list of population does not require any statistical expertise

6.3.3 DATA COLLECTION:

1) PRIMARY DATA 2) SECONDARY DATA

1) PRIMARY DATA Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. The important methods are: A) Observation method B) Questionnaire method C) Interview method, etc

2) SECONDARY DATA These are sources containing data which have been collected and compiled for another purpose

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The secondary sources consist of readily available compendia and already compiled statistical statements and reports. Secondary data consist of not only published records and reports, but also unpublished records. 6.4 Limitations of study: Due to the following unavoidable and uncontrollable factors the factors, the result might not be accurate. Some of the problems faced while conducting the survey are as follows:-

1. The study is limited to the Pune city only.

2. The study period was short i.e. Only for two months so an thorough study in this short period old retail growth was not possible.

3. The customers questionnaire samples size of One hundred fifty only has been use due to time limitations.
4. Only perception of customers on promotional schemes was studied in apparel section due to time constraints. 5. The customers reluctance and inaccurate information was also a constraint due to which as a retail researcher we could not obtain precise information.

A majority of respondents show lack of cooperation.

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CHAPTER NO.7 DATA ANALYSIS AND DATA INTERPRETATION

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Q1) HOW DO YOU COME TO KNOW ABOUT LIFE BRAND OF GARMENTS AT SHOPPERS STOP? FRIENDS PROMOTION INTERNET 70% 20% 10%

NO OF CUSTOMERS
10% 20% FRIENDS 70% PROMOTION INTERNET

Inference:

1) Shoppers stop must understand about the most effective source of advertisement 2) Shoppers stop promotional schemes are not catchy enough to attract the customers. 3) The virtual site of Shoppers stop is not that effective , customers expects more with shoppers stop web sites

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Q2) HOW DO YOU LIKE THE MERCHANDISE MIX OF APPARELS AT SHOPPERS STOP?
GOOD AVERAGE POOR 85% 13% 2%

NO OF CUSTOMERS
2% 13%

GOOD AVERAGE 85% POOR

Inference: 1) In apparel segment fashion is integral factor which attract customer & sale. 2) Most of the customer prefers variety/choice of product is good leads to faster sales closure. 3) A better blend of in-house brands and out house brands renders a better sales closure of customer choice.

Q3) DO YOU LIKE COLOURS AND STOCK IN APPARELS OF SHOPPERS STOP?

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YES NO

40% 60%

NO OF CUSTOMERS

40% 60% YES NO

Inference: 1) The customer perception regarding the choice of color and stocks are not understood by the retail merchandisers. 2) The changing taste and preference as per the style of customer have to be understood to increase sales. 3) Shoppers stop must take advice from fashion assistants.

Q4) DO YOU LIKE THE PROMOTION OF LIFE?

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YES NO

90% 10%

NO OF CUSTOMERS
10%

YES NO 90%

Inference: 1) The promotional schemes at shoppers stop is not enough to allure customers for sales 2) Other organized Retail are offering better schemes and discounts to the customers 3) Out dated schemes depicts the inflexible attitude of the decision makers, so people from sale vouching for turnover targets must get vital decesion making positions at Shoppers stop.

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Q5) DO YOU THINK ALL THE SIZE VARIENT ARE ENOUGH & AMPLE AVAILABLE AND FIT IS GOOD?
YES NO 76% 24%

NO OF CUSTOMERS

24%

YES 76% NO

Inference:
1) Shoppers stop has to update its stock and sizes frequently to allure its customer. 2) It is alarming for shoppers stop and opportunity for other competitors 3) Shoppers stop has to make some innovation in stitching to make it eye catchy and comfortable for customer.

Q6) HOW DO YOU RATE THE SERVICES TO CUSTOMERS PROVIDED BY THE SHOPPERS STOP EMPLOYEES?
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GOOD AVERAGE POOR

46% 40% 14%

NO OF CUSTOMERS
46% 40%

50% 40% 30% 20% 10% 0%

14%

NO OF CUSTOMERS

GOOD AVERAGE POOR

NO OF CUSTOMERS

Inference: 1) CRM benefits are better in Shoppers stop in comparisons to other organized retail stores around. 2) The local in house brands adds value & variety to customers purchase for garments in the stores 3) Few branded garments range will make garments category one of the most values adding category of the stores. Q7) DO YOU THINK LIFE BRAND IS UPTO THE MARK WITH OTHER BRANDS AS (REMANIKA, WILLS LIFESTYLE, AND, ALLENSOLLY AT SHOPPERS STOP?

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YES NO

78% 22%

NO OF CUSTOMERS

22%

YES NO 78%

Inference: 1) Shoppers at shoppers stop come specially to buy merchandise from life brand. 2) Life is having a very good reputation amongst the consumer. 3) Life is a good brand at competitive price whereas wills etc are for niche customers.

Q8) DO YOU LIKE THE ARRANGEMENT OF APPAREL SECTION?

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YES NO

98% 3%

NO OF CUSTOMETRS
3%

YES NO 98%

Inference: 1) Shoppers stop has been successful in providing the ambiguous atmosphere to the customer for shopping. 2) LIFE brand is a bridge which leads shoppers stop planning for luxury store. 3) Arrangement of section and visual merchandising attracts the customer.

Q9) DO YOU THINK LIFE IS AN UPCOMING BRAND?

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YES NO

90% 10%

NO OF CUSTOMERS

10%

YES NO 90%

Inference: 1) Shoppers stop has created its own brand LIFE which is liked by customer. 2) Shoppers stop has created life as a brand which is up to the mark or superior when comparable to other existing brands. 3) Shoppers stop has created a image of life brand which is one of the popular brand in shoppers stop.

Q10) DO YOU LIKE THE PROMOTIONAL OFFER OF LIFE?

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YES

88% 12%

ONCE IN A WEEK

92%
NO

NO OF CUSTOMERS

12%

YES NO 88%

Inference: 1) The promotional schemes at shoppers stop is not enough to allure customers for sales 2) Other organized Retail are offering better schemes and discounts to the customers 3) Out dated schemes depicts the inflexible attitude of the decision makers, so people from sales vouching for turnover targets must get vital decesion making positions at Shoppers stop. 4) Sometimes the physical presence of free gifts is not present where in promotion are going on.

Q11) HOW OFTEN DO YOU THINK LIFE SHOULD UPDATE ITS STOCK?
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ONCE IN FIFTEEN DAYS ONCE A MONTH

8% 0%

Sales
0% 8%

ONE IN A WEEK ONCE IN FIFTEEN DAYS ONCE IN A MONTH 92%

Inference: 1) Most of the customer demands from shoppers stop garment are changed in stock every week. 2) Most of the customer demands updations every week are not good for repeated customers. 3) Up dating stock is very important as to fight competition in garment category from the close vicinity of shoppers stop.

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Q12) WOULD YOU LIKE TO HAVE LIFE BRAND IN KIDS WEAR ALSO? YES NO 58% 42%

NO OF CUSTOMERS

42% 58% YES NO

Inference: 1) There is a huge opportunity for shoppers stop to promote its local brand for kids also. 2) It also shows the acceptance and popularity of shoppers brand by the customers. 3) Life as a brand in kids section will give a competitive edge to shoppers stop over rivals and existing brands.

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Q13) WHICH PRODUCT OF LIFE STYLE GARMENTS YOU BUY THE MOST? T-SHIRT SHORTS DENIMS CAPRIS TOPS 60% 20% 2% 2% 16%

NO OF CUSTOMERS
70% 60% 60% 50% 40% 30% 20% 20% 10% 0% T-SHIRTS SHORTS DENIMS CAPRIS TOPS 2% 2% 16% NO OF CUSTOMERS

Inference: 1) Capris are the most attractive apparel in life brand segment. 2) There is substantial enquiry for denims segment in apparels brand. 3) Convenience Capris apparels sell much which is mostly from local brands of shoppers stop.

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CHAPTER-8 FINDINGS AND SUGGESTIONS

8.1 FINDINGS:
1) The spending habits of the pune residents are high due to high earnings and spare liquidity 2) The customer preferences in context to the payment option in large format store such as cash options are available with plastic money options and in order to provide convenience in spending by the customers to increase ticket size. 3) The customers are very prone to change their purchase destiny and the reasons for drifting away of customers is either for change or better product mix options available. 4) The customers are niche customers and are choosy and quality conscious, proper visual merchandizing with clarity in message and discounts enables the intelligent creamy class to become the frequent customers. 5) The professional approach of salesperson which educates the customers about the product and stress the customers to take its own reasons to purchase product is logically accepted by most of the customers as it quenches their intelligence 6) 7) Better parking facility increases the customers foot fall into a large format stores Commercial vicinity of the organized retail format also increases the customers inflow into the retail outlet. 8) 9) The sizes available in life section are running short Life was applauded by many customers in kids wear at shoppers stop.

10) Promotion was not effective since gifts promised were not there, no discounts on weekends.

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8.2 Suggestions:
1. In organized retail the sales person should be well versed with the professional approach which is needed by the educated niche class of customers in which the basic information of the entire product should be thoroughly understood by the customers

2. The product feature explanation by professional sales person imparts proper and adequate knowledge about the product by the sales person educates the consumers thoroughly and later on this increases the trust of customers on the retailer.

3. Proper product merchandize mix and adequate discounts offered by the retailer increases the creditworthiness of the retailers and this compels him to close sales in the store itself

4. Visual merchandize also plays a vital role in retail operations; the message which is transmitted by visual displays should be clear, contemporary and as per the seasonality

5. The frontal display should match with latest fashion and trends going on and all frontal accessories should change frequently in order to create variety to young and niche customers, this class looks for freshness and change frequently.

6.

Better variety of products displayed in width increases cross selling of products which in turn increases footfalls to the stores.

7. The changing tastes and preference also increases the customers value for the stores. 8. The customer enquiry is designed to be efficiently converted into prospective customers with efficient customers mood swing monitoring. 9. The critical factors responsible for sales enhancement were also taken into account for market research project.

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10. A brief and critical analysis was taken into account and corrective suggestions and recommendations were given with a brief conclusion with corrective measures was submitted. 11. More number of in house brands also increase the customers visit frequency into the stores

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CHAPTER-9 CONCLUSION
Shoppers stop has already established its brand image in market. it has second highest customer loyalty (20 lacks loyal customer) but since shoppers stop has just open up a new store at in orbit mall (pune), so in order to increase its footfall and maintain competitive advantage over rivals it must increase visibility of store ,by increasing promotion activities , like outdoor advertisement, advertisement on radio, weekends discounts or some prizes, occasion basis games etc, also it must update it stock every week in all sizes ,it must also take frequent suggestion from c.c.as and f.as because they are in contact directly with the customers ,it also must have exclusive trendy designs because it is positions as an youths brand. Shoppers stop has to maintain customer interest and awareness in front of customers to be a market leader with expansion.

In convenience stores segment shoppers stop had proved its worth in front of the customers of pune city in almost all category of consumers products at convenience store.

The quality of goods displayed and the product mix along with marketing mix is good enough to be trusted by customers in its garments category from shoppers stop.

A better inventory management of shoppers stop had increased profitability of the store, as more customers will be attended for sales, which increases customers satisfaction also from shoppers stop. The customers relationship management had increased its activity which resulted in increase at number of repeat customers in comparison to other stores in the vicinity of shoppers stop.

The operating capital ratio to net revenue inflow is also less in pune in comparisons to other similar city as BANGLORE and AHEMDABAD.

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In pune the retail saturation stage had reached and only by providing good quality products at reasonable price will attract customers more too large format stores.

The travel time of customers to reach retail is inversely related to customers foot fall in a retail format; kudos to shoppers stop which had selected its store location as per the commercial viability

In garment section schemes and discounts should be changed and freshness in approach should be felt by the apparels category of old cud customers. Customers changing choices should be frequently judged and change in apparels stocks should be planned.

The sales share of apparels segment is 11% at present which if planned better by top and middle stocks managers will enable good word of mouth being spread to customers in general to customers residing in close to shoppers stop.

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CHAPTER-10 BIBLIOGRAPHY
1) PHILIP KOTLER 2) SCRIBD.COM 3) SLIDESHARE.COM 4) SHOPPERSSTOP.COM 5) TIMES OF INDIA.COM 6) MANAGING JAWDEKAR 7) RETAIL MANAGEMENT BY SWAPNA PRADHAN. 8) HTTP://KNOWLEDGE.WHARTON.UPENN.EDU/INDIA/ARTICLE.
CFM?ARTICLEID=4432

THE

RETAIL

BY

AASHISH

9) HTTP://DARE.CO.IN/OPPORTUNITIES/RETAILFRANCHISING/THE-GROWTH-OF-PRIVATE-LABELS.HTM

10) WIKIPEDIA.COM

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ANNEXURE
Q1) HOW DO YOU COME TO KNOW ABOUT LIFE BRAND OF GARMENTS AT SHOPPERS STOP? FRIENDS PROMOTION INTERNET

Q2) HOW DO YOU LIKE THE MERCHANDISE MIX OF APPARELS AT SHOPPERS STOP?
GOOD AVERAGE POOR

Q3) DO YOU LIKE COLOURS AND STOCK IN APPARELS OF SHOPPERS STOP? YES NO

Q4) DO YOU LIKE THE PROMOTION OF LIFE?

YES NO

Q5) DO YOU THINK ALL THE SIZE VARIENT ARE ENOUGH & AMPLE AVAILABLE AND FIT IS GOOD?
YES NO
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Q6) HOW DO YOU RATE THE SERVICES TO CUSTOMERS PROVIDED BY THE SHOPPERS STOP EMPLOYEES?
GOOD AVERAGE POOR

Q7) DO YOU THINK LIFE BRAND IS UPTO THE MARK WITH OTHER BRANDS (REMANIKA, WILLS LIFESTYLE, AND, ALLENSOLLY AT SHOPPERS STOP? YES NO

Q8) DO YOU LIKE THE ARRANGEMENT OF APPAREL SECTION?

YES NO

Q9) DO YOU THINK LIFE IS AN UPCOMING BRAND?

YES NO

Q10) DO YOU LIKE THE PROMOTIONAL OFFER OF LIFE?

YES NO

Q11) HOW OFTEN DO YOU THINK LIFE SHOULD UPDATE ITS STOCK?
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ONCE IN A WEEK ONCE IN FIFTEEN DAYS ONCE A MONTH

Q12) WOULD YOU LIKE TO HAVE LIFE BRAND IN KIDS WEAR ALSO? YES NO

Q13) WHICH PRODUCT OF LIFE STYLE GARMENTS YOU BUY THE MOST? T-SHIRT SHORTS DENIMS CAPRIS TOPS

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