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A management research
project onA comparative study between products
manufactured by Aditya Birla group and
other brands at MORE retail outlets.
FINAL EVALUATION REPORT
Presented by
BRIJESH JAI KRISHNA
(6NI14080)
IMBA
SEM-IX
ICFAI NATIONAL COLLEGE
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ABSTRACT
The main purpose of the research project was to study the consumer behavior of
customers of Aditya Birlas MORE retail store regarding the products of mores
own labeled brands of products and their comparison with that of competitor
product in quality, quantity, price, and discount aspects. A more retail store at
Mallikarjun nagar, present in Bheeramguda area was selected as the matter of
feasibility. Four different product categories were selected in both own label and
other brand label present at the more retail store. A direct interview has to beconducted with the employees of the store and with their customers. The
employees especially the stores manager will be questioned regarding the
performance of the own labeled product when compared to the other product. This
could be identified by getting the data regarding total sales per month. Also the
customers will be provided a short questionnaire in order to take their feed back
regarding the products.
Another purpose of the research was to study the retail market in brief since the
retail business is in boom and a highly marketing oriented business. So this would
enable to apply the marketing theoretical concepts in practical environment.
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1.INTRODUCTION
Retailing consists of the sale of goods or merchandise from a fixed location, such
as a department store, boutique or kiosk, or by post, in small or individual lots for
direct consumption by the purchaser. Retailing may include subordinated services,
such as delivery. Purchasers may be individuals or businesses. In commerce, a
"retailer" buys goods or products in large quantities from manufacturers or
importers, either directly or through a wholesaler, and then sells smaller quantities
to the end-user. Retail establishments are often called shops or stores. Retailers areat the end of the supply chain. Manufacturing marketers see the process of retailing
as a necessary part of their overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a large number of
individuals, such as a public utility, like electric power.
QuickTime and a decompressor are needed to see this picture.
Shops may be on residential streets, shopping streets with few or no houses or in a
shopping mall. Shopping streets may be for pedestrians only. Sometimes a
shopping street has a partial or full roof to protect customers from precipitation.
Online retailing, a type of electronic commerce used for business-to-consumer
(B2C) transactions and mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to
obtain necessities such as food and clothing; sometimes it is done as a recreational
activity.
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DOES CONSUMPTION DRIVE RETAIL?? OR, DOES RETAIL FORCE
CONSUMPTION??
The latter has perfect logic. The problem isnt enough disposable income in this
country. There are innumerable statistics to prove that there is. The problem really
is that the disposable income isnt being driven into modern retail as much as it
should.
Why is that?
Perhaps we are not giving them compelling reasons to shop with. Perhaps our
product innovation, or our retail experience, just lacks that extra something.
Perhaps they dont generate the mysterious WOW! emotion that all successful
global retailers constantly aim at.
As we enter 2009, retailers across the country speak about the vision of change for
the year ahead. It is evident that customer retention is top of mind for every
retailer, regardless of format or size. It is clear that only by innovating on practices
and services offers will retailers in India be able to not just retain customers, but
also expand the consumer base.
Naturally, consumption needs to be pushed also for propelling manufacturing and
overall economic prosperity of the country. Which in a macro environment, would
result in higher disposable incomes and therefore, expenditures.
Bear in mind, however that growth in disposable incomes may not transfer
proportionately to domestic retailers. If our retailers from the smallest to the largest
do not offer experiences and services that match consumer expectations, the
disposable income will be spent elsewhere. As more an more Indians travel
overseas, more and more outflows of foreign exchange can be expected. That is,
unless we offer these consumers compelling reasons to walk into our stores.
The trick is in continuous innovation. Innovation in product, in operations, in
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retail environment, in services, in everything.
2.INDUSTRY PROFILE
Retail is not only an important aspect of the economic structure but very much apart of our lives . Although trading of goods have been in existence since the olden
days .It is only in the recent past that the buying and selling of goods have become
more of format and a brand dominated activity .The traditional form of
independently owned businesses co-exist along with the organized retail.
QuickTime and a decompressor are needed to see this picture. Organized retail has
emerged in a big way since 2000 onward and with that we are witnessing the
emergence of new forms of retailing.
The Indian retail industry is the fifth largest in the world. Comprising of organized
and unorganized sectors, India retail industry is one of the fastest growing
industries in India, especially over the last few years. Though initially, the retail
industry in India was mostly unorganized, however with the change of tastes and
preferences of the consumers, the industry is getting more popular these days and
getting organized as well. With growing market demand, the industry is expected
to grow at a pace of 25-30% annually. The India retail industry is expected to grow
from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010.
According to the 8th Annual Global Retail Development Index (GRDI) of AT
Kearney, India retail industry is the most promising emerging market for
investment. In 2007, the retail trade in India had a share of 8-10% in the GDP
(Gross Domestic Product) of the country. In 2009, it rose to 12%. It is alsoexpected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is expected to
grow to US$ 700 billion by 2010. By the same time, the organized sector will be
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20% of the total market share. It can be mentioned here that, the share of organized
sector in 2007 was 7.5% of the total retail market.
2.1TYPES OF RETAIL FORMAT:
Convenience store
Chain of stores
Franchise
Specialty store
Departmental store
Supermarket
Hypermarket
Shopping mall
Shopping plaza
Factory outlet
CONVENIENCE STORE
Ideally located close to residential areas to enable target customers have easy
accessibility and select convenient merchandise such as beverages, ready to eat
snacks, grocery etc.
EX;- Friendly neighbor hood grocery stores
CHAIN OF STORES
A single retailer establishes a chain of stores with its exclusive store design,
synergistic merchandising plan, promotion and service strategy and so on.
EX;- Raymond chain
FRANCHISE
Retail stores owned and operated by individual on behalf of and licensed by a big
supporting organization.
EX; - Pizza hut, NIIT, Mc Donald s
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SPECIALITY STORE
Retail shops displaying merchandise which have narrow product lines specializing
in a particular type of merchandise and offering specialized services to customers.
EX;-Park Avenue (By Raymond, it is a men specialty store)
DEPARTMENTAL STORE
A store having several departments such as clothing, personal care & cosmetics,
books and stationeries, house ware goods, electronics etc .All under a single roof,
although individually functioning as a strategic business unit (SBU).
EX;-Life style, Pantaloon
SUPERMARKET
A store which is departmentalized, with self service offering groceries, limited
non-food items such as health & beauty related items & general merchandise.
EX; - Food world outlets, Nilgiris
HYPERMARKET
Hypermarkets are very large in size, carry grocery, hardware, and appliances and
other general merchandise , with self service facilities usually located in warehouse
type structure with large parking facilities.
EX; - Big bazaar (Pantaloon Retail India)
SHOPPING MALL
A shopping mall is an arrangement of retail stores and providing the right mix of
Shopping, food courts and entertainment and parking facilities.
EX;-In Bangalore, the Forum, Central, Sigma mall
SHOPPING PLAZA
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The shopping plaza will be a configuration of many tenants using space of 1000 sq.
ft as so far putting up stores within a single building.
EX;-Fountain Plaza
FACTORY OUTLETS
Factory outlets or stores are owned and operated by the manufacturers who sell
discounted merchandise or factory seconds or cancelled orders to consumer at low
price.
EX;- Bata factory outlet
2.2Origin and development of the industry
Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP
and around eight per cent of the employment. Retail sector is one of India's fastest
growing sectors with a 5 per cent compounded annual growth rate. India's huge
middle class base and its untapped retail industry are key attractions for global
retail giants planning to enter newer markets. Driven by changing lifestyles, strong
income growth and favorable demographic patterns, Indian retail is expected to
grow 25 per cent annually.
It is expected that retail in India could be worth US$ 175-200 billion by 2016.
The organized retail industry in India had not evolved till the early 1990s. Until
then, the industry was dominated by the un-organized sector. It was a sellers
market, with a limited number of brands, and little choice available to customers.
Lack of trained manpower, tax laws and government regulations all discouragedthe growth of organized retailing in India during that period. Lack of consumer
awareness and restrictions over entry of foreign players into the sector also
contributed to the delay in the growth of organized retailing. Foundation for
organized retail in India was laid by Kishore Biyani of Pantaloon Retails India
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Limited (PRIL). Following Pantaloon's successful venture a host of Indian
business giants such as Reliance, Bharti, Birla and others are now entering into
retail sector.
Retailing is the most active and attractive sector of last decade. While the retailing
industry itself has been present since ages in our country, it is only the recent past
that it has witnessed so much dynamism. The emergence of retailing in India has
more to do with the increased purchasing power of buyers, especially post-
liberalization, increase in product variety, and increase in economies of scale, with
the aid of modern supply and distributions solution.Indian retailing today is at an
interesting crossroads The retail sales are at the highest point in history and new
technologies are improving retail productivity. though there are many opportunities
to start a new retail business, retailers are facing numerous challenges.
A number of factors are driving India's retail market. These include: increase in the
young working population, hefty pay-packets, nuclear families in urban areas,
increasing working-women population, increase in disposable income and
customer aspiration, increase in expenditure for luxury items, and low share of
organized retailing. India's retail boom is manifested in sprawling shopping
centers, multiplexmalls and huge complexes that offer shopping, entertainment and
food all under one roof.
But there is a flip side to the boom in the retail sector. It is feared that the entry of
global business giants into organized retail would make redundant the
neighbourhood kiryana stores resulting in dislocation in traditional economic
structure. Also, the growth path for organized retail in India is not hurdle free. The
taxation system still favours small retail business. With the intrinsic complexities
of retailing such as rapid price changes, constant threat of product obsolescence
and low margins there is always a threat that the venture may turn out to be a loss
making one.
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2.3 Growth & Present status of the industry .
Retailing is emerging as a sunrise industry in India and is presently the largest
employer after agriculture. In the year 2004, the size of Indian organized retail
industry was Rs 28,000 Crore, which was only 3% of the total retailing market.
Retailing in its present form started in the latter half of 20th Century in USA and
Europe and today constitutes 20% of US GDP. It is the 3rd largest employer
segment in USA. Organized retailing in India is projected to grow at the rate of
25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crore by 2010.
The contribution of organized retail is expected to rise from 3% to 9% by the end
of the decade. The projection for the current year ie 2005 is Rs 35,000 Crore.
In India it has been found out that the top 6 cities contribute for 66% of total
organized retailing. With the metros already been exploited, the focus has now
been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far
been concentrated in the metros is beginning to percolate down to these smaller
cities and towns. The contribution of these tier-II cities to total organized retailing
sales is expected to grow to 20-25%. In the year 2004, Rs 28,000 Crore organized
retail industry had Clothing, Textiles & fashion accessories as the highest
contributor (39%), where as health & beauty had a contribution of 2%. Food &
Grocery contributed to 18% whereas Pharma had a contribution of 2%.
Globally, the retail industry has grown at a brisk pace with a Compounded Annual
Growth Rate (CAGR) of 7.77% during the period 2001-2006. The growing
expanse of the top global retailers has ensured globalization of the industry;
however the opportunity for growth of organized retail is immense in countries
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such as India, S. Korea, and Vietnam etc. where organized retailing is still at an
ascent stage.
The Indian retail industry has witnessed a massive transition during the last
few decades. The Indian retail has grown at a CAGR of 11.2% during the period
FY04-FY07, with food and grocery accounting for the major share. Despite the
industry being dominated by the unorganized retailers, the organised retailing
revenues have soared at a CAGR of 19.5% during the period FY04-FY07. The
apparel & footwear segment occupies the major share in the organised retail pie.
The Indian retail industry has strong linkages with the economic growth and
Development of the economy. It is primarily characterized by its hierarchical
growth structure, high working capital requirements etc. The factors such as
rising urbanization, growing consumer class, growing per capita expenditure,
greater interest evinced by the Venture capitalists / Private equity firms in
the industry etc. have been driving the growth of organised retail.
The growth of modern retailing has led to the emergence of varied formats such
as Departmental stores, Supermarkets etc. In addition, few other formats such as
rural retailing, E-retailing, luxury retailing etc. too have found favours with
the Indian retailers. Each format being distinct from the other, the viability
of their operations depends upon various factors such as average footfalls,
sales per sq.ft etc. However the numerous licensing requirements as compared to
other countries have proved to be a bottleneck in the growth of Indian
retailing. We have identified further requirements, advantages and disadvantages
associated with the organised as well as unorganised retailing in India. On the basis
of a detailed analysis incorporating the experience of other retailing locations
across the globe, We feel that the co-existence of the organised and unorganized
retailing in the Indian context cannot be denied.
To estimate the size of the Indian retail industry and the penetration levels of
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organized retail in the urban and rural Indian markets for the period FY08-FY11,
we have evolved an industry model incorporating three different scenarios i.e.
Optimistic , Most Likely & Pessimistic. We expect that with the growing reach of
modern retailers in the rural and urban areas, the penetration level of organized
retailing would continue to grow, thereby resulting in the organized retail growth,
surpassing the growth of total Indian retail during the period FY08-FY11.
Companies Mentioned:
* Pantaloon Retail India Ltd. (PRIL)
* Shoppers Stop Ltd.
* Vishal Retail Ltd (VRL)
* Koutons Retail India Ltd.
* Trent Ltd.
The Indian retail though largely dominated by the unorganized retailers has
witnessed a massive transition in the last decade. Of the total retail sales, the food
& grocery segment constitutes the major chunk. However in case of organised
retail, the apparel & footwear segment stands as the major contributor. With varied
segments of retailing i.e. Food & Grocery, Clothing & Footwear, Furniture &
Furnishing, Jewellery, Beverages .
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2.4Future Of The Industry
India retail industry is the largest industry in India, with an employment of around
8% and contributing to over 10% of the country's GDP. Retail industry in India is
expected to rise 25% yearly being driven by strong income growth, changing
lifestyles, and favorable demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175-
200 billion. India retail industry is one of the fastest growing industries with
revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of
5% yearly. A further increase of 7-8% is expected in the industry of retail in India
by growth in consumerism in urban areas, rising incomes, and a steep rise in rural
consumption. It has further been predicted that the retailing industry in India will
amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.
Shopping in India has witnessed a revolution with the change in the consumer
buying behavior and the whole format of shopping also altering. Industry of retail
in India which has become modern can be seen from the fact that there are multi-stored malls, huge shopping centers, and sprawling complexes which offer food,
shopping, and entertainment all under the same roof.
India retail industry is expanding itself most aggressively; as a result a great
demand for real estate is being created. Indian retailers preferred means of
expansion is to expand to other regions and to increase the number of their outlets
in a city. It is expected that by 2010, India may have 600 new shopping centers.
In the Indian retailing industry, food is the most dominating sector and is growing
at a rate of 9% annually. The branded food industry is trying to enter the India
retail industry and convert Indian consumers to branded food. Since at present 60%
of the Indian grocery basket consists of non- branded items.
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India retail industry is progressing well and for this to continue retailers as well as
the Indian government will have to make a combined effort.The slowdown in
consumer spending cut many retail stocks in half in 2008, but retailers have seen a
surprising rally recently. Many of the worst-performing stocks of 2008 apparel
chains, department stores and Internet retail firms have done best in the last
several weeks. For stock pickers , retail poses a dilemma: Based on recent data,
theres no simple way to tell where consumer spending is headed. So, with the
current outlook so uncertain, one possible strategy for retail investors is to begin
thinking very long term. Major changes that could hit the retail industry between
now and 2015.The aging of the Baby Boom generation and coming of age of
Generation Y will cause a change in consumer demand and spending habits, the
report says. Retail stores that are able to adapt to the new consumer demographics
will thrive while those unable to adjust will fail.
To survive in the next decade, retailers must adapt to a number of changing factors:
1. The new generation of consumers contains a more tech-savvy and more diverse
group that holds different values than its parents.
2. The one-size-fits-all approach of the mass chain store format will not be viable.
Stores able to respond to individual tastes will become dominant.
3. The belief that bigger is better will break downaggregation of small will be
the new big, says the report. The new consumer will be more intent on quality
than quantity. Mass production models will not succeed.
4. Ability to keep close contact with customers through mobile devices will be
important to maintain quality of service and product as well as receive customer
feedback.
5. The still large group of Baby Boomers will remain active in the economy.
However, their demands will shift from goods to service and healthcare.
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6. Retailers may also expand in developing economies such as India and China.
These growing markets have much more room to expand along traditional modes
than developed nations. However, American companies will be late to the game,
says the report, and will need to compete with both European and local retailers.
India retail industry is progressing well and for this to continue retailers as well as
the Indian government will have to make a combined effort.The slowdown in
consumer spending cut many retail stocks in half in 2008, but retailers have seen a
surprising rally recently. Many of the worst-performing stocks of 2008 apparel
chains, department stores and Internet retail firms have done best in the last
several weeks. For stock pickers , retail poses a dilemma: Based on recent data,
theres no simple way to tell where consumer spending is headed. So, with the
current outlook so uncertain, one possible strategy for retail investors is to begin
thinking very long term. Major changes that could hit the retail industry between
now and 2015.The aging of the Baby Boom generation and coming of age of
Generation Y will cause a change in consumer demand and spending habits, the
report says. Retail stores that are able to adapt to the new consumer demographics
will thrive while those unable to adjust will fail.
To survive in the next decade, retailers must adapt to a number of changing factors:
1. The new generation of consumers contains a more tech-savvy and more
diverse group that holds different values than its parents.
2. The one-size-fits-all approach of the mass chain store format will not be
viable. Stores able to respond to individual tastes will become dominant.
3. The belief that bigger is better will break downaggregation of small will
be the new big, says the report. The new consumer will be more intent on
quality than quantity. Mass production models will not succeed.
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4. Ability to keep close contact with customers through mobile devices will be
important to maintain quality of service and product as well as receive
customer feedback.
5. The still large group of Baby Boomers will remain active in the economy.
However, their demands will shift from goods to service and healthcare.
6. Retailers may also expand in developing economies such as India and China.
These growing markets have much more room to expand along traditional
modes than developed nations. However, American companies will be late
to the game, says the report, and will need to compete with both European
and local retailers.
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3.COMPANY PROFILE
A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune
500. It is anchored by an extraordinary force of 130,000 employees, belonging to
30 different nationalities. In the year 2009, the Group was ranked among the top
six great places for leaders in the Asia-Pacific region, in a study conducted by
Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has
been adjudged the best employer in India and among the top 20 in Asia by the
Hewitt-Economic Times and Wall Street Journal Study 2007.
Over 60 per cent of the Group's revenues flow from its overseas operations. The
Group operates in 25 countries India, UK, Germany, Hungary, Brazil, Italy,
France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China,
Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh,
Vietnam, Malaysia and Korea.
Globally, the Aditya Birla Group is:
:: A metals powerhouse, among the world's most cost-efficient aluminium and
copper producers. Hindalco-Novelis is the largest aluminium rolling company.
It is one of the three biggest producers of primary aluminium in Asia, with the
largest single location copper smelter
:: No.1 in viscose staple fibre
:: The fourth-largest producer ofinsulators
:: The fourth-largest producer ofcarbon black
:: The tenth-largest cement producer
:: Among the best energy-efficient fertiliserplants
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In India:
:: Largest cement producer
:: Largest premium,branded apparel company:: The second-largest producer ofviscose filament yarn
:: The second-largest in the chlor-alkali sector
:: Among the top five cellular operators
:: Among top 10 Indian BPO companies by revenue size
:: Among the top five asset management and private sector life insurance
companies
:: Among the top three supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to keep
experimenting.
Beyond business
Transcending business for over 50 years now, the Group has been and continues to
be involved in meaningful welfare-driven initiatives that distinctly impact the
quality of life of the weaker sections of society in India, South-East Asia and
Egypt.
In India, the Group's social projects span 2,500 villages. It reaches out to six
million people annually through the Aditya Birla Centre for Community Initiatives
and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is
healthcare, education, sustainable livelihood, infrastructure and espousing social
causes.
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The Group runs 42 schools, which provide quality education to over 45,000
children in India's interiors. Of these, 18,000 children receive free education. An
additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in
India, more than 500,000 patients are given extremely subsidised medical care.
The Group transcends the conventional barriers of business and reaches out to the
marginalised because of its conviction of bringing in a more equitable society.
3.1Vision
To be a premium global conglomerate
with a clear focus on each business.
3.2 Mission
To deliver superior value to our customers,
shareholders, employees and
society at large.
3.3 Values
IntegrityCommitmentPassion
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SeamlessnessSpeed
3.4 ABOUT LOGO
The name Aditya Birla evokes all that is positive in business and in life. It
exemplifies integrity, quality, performance, perfection and above all character.
Our logo is the symbolic reflection of these traits. It is the cornerstone of our
corporate identity. It helps us leverage the unique Aditya Birla brand and
endows us with a distinctive visual image.
Depicted in vibrant, earthy colours, it is very arresting and shows the sun rising
over two circles. An inner circle symbolising the internal universe of the Aditya
Birla Group, an outer circle symbolising the external universe, and a dynamic
meeting of rays converging and diverging between the
two.
Through its wide usage, we create a consistent, impact-
oriented Group image. This undoubtedly enhances our profile among our
internal and external stakeholders.
Our corporate logo thus serves as an umbrella for our Group. It signals the
common values and beliefs that guide our behaviour in all our entrepreneurial
activities. It embeds a sense of pride, unity and belonging in all of our 130,000
colleagues spanning 25 countries and 30 nationalities across the globe. Our logo
is our best calling card that opens the gateway to the world.
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3.5. Kumar Mangalam Birla
Chairman, The Aditya Birla Group
Mr. Kumar Mangalam Birla is Chairman of the US$ 29 billion Aditya Birla
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Group and Indias first truly multinational corporation. An iconic figure, Mr.
Birla holds several key positions on various regulatory and professional boards.
He is a director of the Central Board of Directors of the Reserve Bank of India
and chairman of the Staff Sub-Committee of the Central Board of the Reserve
Bank of India. He serves on the Prime Minister of Indias Advisory Council on
Trade and Industry. He is the chairman of the Board of Trade constituted by the
Union Minister of Commerce & Industry, also chairman of the Ministry of
Company Affairs Advisory Committee.
Additionally, he is on the National Council of the Confederation of IndianIndustry (CII); the Apex Advisory Council of the Associated Chambers of
Commerce and Industry of India, New Delhi and the Advisory Council for the
Centre for Corporate Governance.
He served as the chairman of Securities and Exchange Board of Indias
Committee on Corporate Governance, and as chairman of SEBIs committee on
insider trading. He authored the nations first report on corporate governance.
On the academic front, Mr. Birla is the Chancellor of the Birla Institute of
Technology & Science (BITS), Pilani. He is also a director on the G.D. Birla
Medical Research & Education Foundation. Additionally, he is on the Asian
Regional Advisory Board of the London Business School which provides
counsel on the schools strategy and curriculum. He is also Honorary Fellow ofthe London Business School (LBS), a title conferred upon him by the governing
board of the LBS.
Several accolades have been showered on Mr. Birla such as the Asia Pacific
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Global HR Excellence Exemplary Leader Award and NDTVs Global Indian
Leader of the year, and Most Socially Responsible Leader by Outlook
Business Magazine all in 2007. Earlier, the Lakshmipat Singhania IIM,
Lucknow National Leadership Award 2006, Business Leader, was conferred
on Mr. Birla by the Prime Minister. Mr. Birla also has been named the World
Economic Forums Young Global Leader, Ernst & Young Entrepreneur of
the year", the Economic Times Business Leader of the year, Business
Indias "Business Man of the year,Business Todays Young Super Performer
in the CEO Category, NITIEs Business Visionary, and the Bombay
Management Associations Management Man of the year.
In recognition of his exemplary contribution to Indian business, the Banaras
Hindu University awarded the D.Litt (Honoris Causa) Degree to him. The
Honorary Degree of Doctor of Science (Honoris causa) was bestowed on Mr.
Birla in recognition of his invaluable contribution in the field of business
administration by the G.D. Pant University of Agriculture & Technology,
Pantnagar. For the development of technology and for his involvement in
bringing the country at par with other countries in the field of industries, the
SRM University in Tamil Nadu conferred the Degree of Doctor of Literature.
To salute his entrepreneurial excellence and exemplary contribution to Indian
business, the All India Management Association conferred its Honorary
Fellowship on him. Likewise, the National HRD Network named him
Outstanding Business Man of the year.
A chartered accountant, Mr. Birla earned an MBA from the London Business
School, where he is also an Honorary Fellow. Mr. Kumar Mangalam Birla and
his wife, Mrs. Neerja Birla, have three children, Ananyashree, Aryaman Vikram
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and Advaitesha.
3.6
Sectors Company Units in India and overseas
Non-ferrous metals Hindalco Industries Ltd. Aluminium
Renukoot alumina, primary metal and
fabricated products, power generation
Renusagar power generation
Samri, Lohardaga, Durgmanwadi,
Chandgad, Maliparbat bauxite mines
Muri, Belgaum alumina refining
Hirakud smelting, power generationTalabira coal mines
Silvassa, Kalwa, Kollur foil
Belur, Taloja sheet rolling
Mouda sheet rolling, concast
Alupuram extrusions, smelter
Copper
Dahej copper cathodes, continuous cast
copper rods, sulphuric acid, DAP and
complexes, precious metals, power
Novelis Inc.* North America (United States and Canada)
11 rolled products facilities
Europe (France, Germany, Italy,
Luxembourg, Switzerland and the United
Kingdom) 13 rolled products facilities
Asia (Malaysia and South Korea) 3 rolled
products facilities
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South America (Brazil) 2 aluminium
smelters and 2 rolled products facilities
Aditya Birla Minerals Limited* Australia Nifty Copper Mines
Australia Mt. Gordon Copper Mines
Hindalco-Almex Aerospace
Limited** Aurangabad aerospace alloys
Utkal Alumina International
Limited*
Baphlimali, Rayagada, Odisha bauxite
mines
Doragurha, Rayagada, Odisha alumina
plant
Cement grey and
white
Grasim Jawad, Rawan, Shambhupura, Malkhed,
Reddipalayam, Kotputli composite plants
Hotgi, Bhatinda, Panipat, Aligarh, Dadri
grinding units
Kharia Khangar white cement plants
Thirty-five ready-mix concrete plants
UltraTech Cement Limited* Awarpur, Hirmi, Jafrabad, Kovaya,
Tadipatri composite plants
Arakkonam, Durgapur, Ginigera,
Jharsuguda, Magdala
Ratnagiri grinding units
Thirty-four ready-mix concrete plants
Textiles (pulp, fibre,
yarn, fabric, apparel)
Grasim Nagda viscose staple fibre (VSF)
Harihar VSF, rayon grade pulp (RGP)
Kharach VSF
Malanpur yarns
Grasim Bhiwani Textiles
Limited*
Bhiwani fabrics, yarns
Thai Rayon Thailand VSF
PT Indo Bharat Rayon Indonesia VSF
Birla Jingwei China VSF
AV Cell** Canada RGP
AV Nackawic** Canada paper grade pulp
Birla Lao Pulp and Plantations Laos eucalyptus plantations and DGP
Thai Acrylic Fibre Thailand acrylic fibre
Alexandria Fiber Egypt acrylic fibre
Aditya Birla Nuvo
Unit Indian Rayon
Veraval (Gujarat) viscose filament yarn
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Unit Jaya Shree Textiles Rishra (West Bengal) linen fabrics, flax
yarns, worsted yarns, wool tops
Unit Madura Garments Bengaluru branded apparel retail
Indo Thai Synthetics Thailand yarns
PT Elegant
Indonesia yarnsPT Indo Liberty Indonesia yarns
PT Sunrise Bumi Indonesia yarns
Indo Phil Textiles Philippines yarns
Chemicals Grasim Nagda caustic soda
Aditya Birla Nuvo
Unit Indian Rayon Veraval (Gujarat) caustic soda
Aditya Birla Chemicals (India)
Limited
Garhwa Road, Palamu caustic soda
Tanfac** Cuddalore fluorine chemicals
Aditya Birla Chemicals
(Thailand) Limited
Thailand
chlor-alkali products, epichlorohydrin
epoxy resins
sodium phosphates, speciality
phosphates
sodium sulphite, sodium metabisulphite
Thai Peroxide** Thailand hydrogen peroxide
Aditya Birla Grasun** China food grade phosphoric acid
PT Indo Raya Kimia Indonesia carbon disulphide
Pan Century Surfactants Philippines
fatty alcohols
fatty acids
glycerine
Agribusiness Aditya Birla Nuvo
Unit Indo Gulf
Jagdishpur (Uttar Pradesh) fertilisers,
seeds, agrochemicals
Carbon black Aditya Birla Nuvo
Unit Hi-Tech Carbon
Renukoot (Uttar Pradesh) and
Gummidipoondi (Tamil Nadu) carbon
black
Alexandria Carbon Black Egypt carbon black
Thai Carbon Black Thailand carbon black
Liaoning Birla Carbon China carbon black
Mining Essel Mining & Industries Barbil, Odisha iron ore mining
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Ferro chem Essel Mining & Industries
Limited
Vapi noble ferro alloys
Wind power Essel Mining Dhule wind power generation
Insulators Aditya Birla Nuvo
Unit Aditya Birla Insulators
Halol (Gujarat) and Rishra (West Bengal)
insulatorsTelecommunications Idea Cellular Limited Mumbai (corporate office) cellular
services
Financial services Birla Sun Life Insurance
Company Ltd.**
Mumbai (head office)
Birla Sun Life Asset
Management Company Ltd.**
Mumbai (head office)
Aditya Birla Finance Ltd.*
(erstwhile Birla Global Finance
Company Ltd.)
Mumbai (head office)
Aditya Birla Money Mart Ltd.*
(erstwhile Birla Sun
Life Distribution Company Ltd.)
Mumbai (head office)
Birla Insurance Advisory &
Broking Services Ltd.*
Mumbai (head office)
Aditya Birla Money Ltd.*
(erstwhile Apollo Sindhoori
Capital Investments Ltd.)
Chennai (head office)
Aditya Birla Capital Advisors
Pvt. Ltd.* (Private Equity)
Mumbai (head office)
IT-ITeS Aditya Birla Minacs Worldwide
Ltd*
Bengaluru, Mumbai, Baroda, Aurangabad,
Kolkata, Chennai India
Manila Philippines
Russelsheim Germany
Peterlee, Canary Wharf United Kingdom
Budapest Hungary
Halifax, Port Hawkesbury, Moncton,
Niagara Falls, Oshawa, Peterborough,
Toronto, Hamilton and Mississauga
Canada
Austin, Farmington Hills, Flint, Indianapolis,
Milwaukee, Costa Mesa, Pleasanton USA
Novelis (India) Infotech Limited India
Retail Aditya Birla Retail Limited 640 supermarkets
Trading solutions Swiss Singapore OverseasSingapore, UAE, China, Indonesia,
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Enterprises Pte Limited
Vietnam, Bangladesh, Sri Lanka, Ivory
Coast, Tanzania, Myanmar, Canada,
Russia, Benin
* subsidiaries
** joint ventures
3.7 ORIGIN OF THE ORGANISATION.
The year 2007, for organised retail has begun with a bang. Birlas, who weremulling over their entry in multi format multi brand retail for quite some time,
have finally arrived. The Rs. 40,000 crore, Aditya Birla group, through unlisted
Aditya Birla Retail, in a single stroke, has acquired a bouquet of over 172 retail
stores, operating in southern India, with predominant presence in Andhra Pradesh,
under popular brand names of Trinethra and Fabmall. While most of the group
stores operate under Trinethra brand, stores located in Karnataka and Kerala
operate under Fabmall brand, although, 50,000 sq. ft. big hypermarket in Mysore is
known as Fabcity.
Trinethra, prior to this acquisition, was aggressively pursuing its plan to set up new
stores in tier II cities such as Mysore, Coimbatore and Tirupur in southern region
of the country. Trinethra, which has adopted convenience and supermarket
formats, is focused on selling food and groceries in residential areas, although
some of the stores also offer pharmaceutical products. Trinethra also offers value-
added services like forex remittances and bill payments. A typical Trinethra store
ad measures around 2,500 sq.ft. in retail space. The chain of stores are serviced by
an infrastructure of central warehouses in Andhra, Karnataka, Tamilnadu and
Kerala, with a space of about 50,000 sq ft each
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Aditya Birla Retail Limited re-brands its Fabmall grocery supermarkets to more., a
name reflective of its commitment to offering consumers a more fulfilling retail
experience. The re-branding follows the acquisition of the Trinethra Super Retail
that includes the retail brands Fabmall, Trinethra and FabCity by Aditya Birla
Retail in January 2007.
The two decades old, Rs. 250 crore, 2,500 employees strong, Hyderabad based,
Trinethra group, originally was founded by Mr Anjaneyulu Kakkera.
Aditya Birla Retail Limited is the retail arm ofAditya Birla Group, a USD 28
billion Corporation. The Company ventured into food and grocery retail sector in
2007 with the acquisition of a south based supermarket chain. Subsequently
Aditya Birla Retail Ltd. expanded its presence across the country under the brand
"more." with 2 formats
3.8 Supermarket & Hypermarket.
Supermarket
more. for you - Conveniently located in neighbourhoods, more. supermarkets
cater to the daily, weekly and monthly shopping needs of consumers. The product
offerings include a wide range of fresh fruits & vegetables, groceries, personal
care, home care, general merchandise & a basic range of apparels. Currently, there
are over 600 more. supermarkets across the country.
Hypermarket
More .MEGASTORE - is a one-stop shopping destination for the entire family.
Besides a large range of products across fruits & vegetables, groceries, FMCG
products, more.MEGASTORE also has a strong emphasis on general
merchandise, apparels & CDIT.
Currently, two hypermarkets operate under the brand more.MEGASTORE in
Mysore and Vadodara.
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Own label Food Brands
more., Feasters, Kitchen's Promise, and Best of India
Home & Personal care brands
more., Enriche, 110%, Pestex, Paradise, and Germex
With a vision is to be among the leading retail players in India, Aditya Birla
Retail launched its first supermarket, more. for you in May, 2007. Since its
launch, the more. for you has an aggressive roll out, reaching a total count of over
600 stores across India today.
more. for you is your neighborhood supermarket which takes care of your
everyday household needs and more. Spread across a wide range of products of
food and non food items, ranging from basic necessities such as, fruits and
vegetables, staples, personal care, home care, household care products, general
merchandise, and dairy products, more. for you provide a one stop solution for
your grocery shopping needs. Also in store are essentials such as, innerwear, kids
essentials, and a pharmacy, bakery and a mobile store. With a range of over 4,000
products, we are able to fulfill your daily shopping needs all under one roof, at a
convenient location close to you. The more. for you promises a world class
shopping experience, with a modern store layout, easy to shop with friendly staff at
hand to provide assistance, electronic billing facilities and a colorful ambience. At
more. for you we offer branded food and grocery products sourced from the
leading brands from all over India, along with private label brands from our own
portfolio - available in a broad selection for you, always giving you the best
possible value for your money.
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3.9 GROWTH AND DEVELOPMENT OF ORGANISATION
.With the opening of first store in Pune and announcing its retail plans, the Aditya
Birla Group has finally joined the crowded retail space. And from the voices in the
media, its not far when the group has a pan-India retail presence.
Organised retailing is just 3% of total retail market but still a debatable point
whether the Birlas are an early or a late entrant. Since Pantaloons, Spencers,
Subhiksha and Reliance have already set up a good base, More stores may find
hard to invade the territory which these stores have already captured in their
respective locations.
But even then, key factors which may influence the buying pattern of consumers
hinge on convenience in terms of distance from home, pricing and giving the right
productmix catering to different social and economic class. Since, organised retail
has thin margins and high costs of around 15% to the revenues (as compared to 5-
6% of local grocery stores), retail companies should promote more their in-house
brands which have a higher mark up.Aditya Birla More strategy to offer budget and high value private labels under
More for you and Select seems to be like successful UKs Tesco model of
having separate labels with separate quality and prices for the same product
category. Till Bharti- Walmart enters the market, the key competitor for More
shall be Reliance Retail as they have similar store formats and product offerings.
But the real tough part will be when these two companies launch their
hypermarkets, in which Pantaloons Big Bazaar still rules the space in terms of
nationwide presence , and then differentiation would play a key role.
But like telecom, when the markets get mature, there are not many differentiating
factors in terms of pricing and service quality, similarly once few big players get
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established in retail market, each one would carve a separate niche of their own
with their own sets of customers and markets.
3.10 PRESENT STATUS OF THE ORGANISATION
ADITYA BIRLA RETAIL LTD is having 650 MORE store all over INDIA . Pune
was the first place where first store was opened.350 stores are in SOUTH and 300
are in REST OF INDIA. Karnataka is having 104 stores in which BANGALORE
is having 64 stores. .more. for you is committed to deliver quality & value to our
customers and have a range of private label brands as well as commercially
branded products, offering - 100% satisfaction on the quality of the products &
services offered. more. for you hosts a range of private label brands across various
categories that follow stringent quality norms, and are available in attractive prices
and packaging. Our premium products give you the opportunity to enjoy the
difference and quality that is equal to or better than the market's leading brands, but
at competitive prices.
Recently our private label brands received the coveted "The Most Admired
Private Label" Golden Spoon award at the Food Forum India.
more. for you offer a wide range of assortment of over 4000 products, ranging
from fresh food to beverages, grocery to household care products. There range
covers everything, from day-to-day essentials to traditional favorites, from
delicious treats, to healthy alternatives.
To ensure the freshest supply of fruits and vegetables for you, they have built
direct linkages with the farmers for daily supplies of farm fresh produce.
Our stores are built with a modern and comfortable ambience, air conditioned and
with speedy automated cashiering to help you shop better. They also have friendly
in-store policies on exchange and returns that help you shop with ease and comfort.
Furthermore, to make shopping experience more rewarding with them, at more.
For you they offer a membership program Clubmore. which reinforces our
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commitment to consistently add value to your shopping experience, and also to
thank you for choosing to be a part of more. for you. As a Clubmore. member,
you are entitled to special benefits, besides the regular offers and promotions at
more. for you. Clubmore. members will also have the benefit of receiving
exclusive SMS alerts for special offers on our products and services.
Currently Clubmore. has over 1 million members enrolled for its loyalty program.
3.11 FUTURE PLANS OF THE ORGANISATION
After acquiring south based Trinethra and plans to buy Pyramid Retail, the Aditya
Birla group doesnt want itself to be left behind in the race for getting their pie in
the organised retail market. Instead of tying with Tesco, Carrefour, Woolworth,
they have decided to go all alone.
They plan to open 172 hypermarkets and supermarkets starting from Pune. While
Subhiksha is mainly into neighbourhood stores, Future Group has a strategy of
having single brand outlets to multi-brand seamless malls, similarly Reliance
Retail has started with Fresh stores and Reliance Digital to be followed by opening
up of hypermarkets and specialised stores.
Birlas business style is perceived to be a little conservative, and they are investing
Rs. 9,000 crores in this venture which will enable it to establish a pan-India
footprint. The retail venture would be aided by the groups companies like Madura
Garments (a key component of retail sales), IDEA cellular (for technical and
communication requirements of stores), financial services (for providing consumer
loans on its goods). Organised retail sectors growth is expected to be rapid, thus
making it a valid and natural choice for AVB group to diversify in this sector. But,
competition and late entry may somewhat derail the companys retail growth rate
to the overall industry rate. The sector may also face hurdles as owing to non-
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clarity of FDI in retail, foreign chains have postponed their plans of entry into
India.
"Our Mission is to Change the Way People Shop. We Will Give Them More."
3.12 FUNCTIONAL DEPARTMENT OF THE ORGANISATION
o HR AND TRAINING
o PROJECT AND BUSINESS DEVELOPMENT
o COMMERCIAL AND ACCOUNTS
o ADMINISTRATION
o IT
o LEGAL
o LOSS PREVENTION AND RISK MANAGEMENT
o MARKETING
o SUPPLY CHAIN
3.13 ORGANIZATIONAL STRUCTURE :-
CHAIRMAN
CEO
SUPERMARKET
HYPERMARKET
4 REGIONAL HEADS
2 ZONAL HEADS
2 TERRITORY MANAGERS
10 CLUSTOR MANAGERS
STORE MANAGERS
SUPERVISOR
ASSISTANT SUPERVISOR
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C S A
R
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ORGANIZATIONAL CHART
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SUPERMARKET
Bakery *
Beauty Concepts *
Beverages
Basic Apparels
Cutlery & Cookware
Fruits & Vegetables
Frozen & Dairy Products
FMCG Products
Grocery
General Merchandise
Home Care Products
Home Needs & Home UpkeepHome Decor Products
Mobile Store *
Personal Care & Cosmetics
Processed Food
Pharmacy *
Ready to Cook/Prepared Food
Small White Appliances *
Staples
Stationery
Women's Accessories
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HYPERMARKET
Apparels - Men/ Women
Audio & Video (A & V)
Bakery
Beverages
Books and Audio & Video
Computer & Accessories
Do it yourself
Auto Accessories
Electronics
FMCG Products
Footwear
Frozen & Dairy ProductsFruits & Vegetables
Furniture
General Merchandise
Home Care Products
Home Decor Products
Home Needs & Home Upkeep
Infant & Children's Apparels
Information Technology Products
Large White Appliances
Luggage
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Mobile Phone & Accessories
Personal Care & Cosmetics
Processed Food
Ready to Cook/Prepared Food
Small White Appliances
Sporting Goods
Staples
Stationery
Sun Glasses & Fine Jewellery
Two Wheelers
Toys
Services
For your additional benefit, Consumer Finance on electronics products such as:
Audio & Video and Large White Appliance are available at more.MEGASTORE
3.15 Friendly Return & Exchange Policy.
Hassle free Return & Exchange policy at more MEGASTORE.
In case you change your mind, we at more. MEGASTORE would be pleased to
exchange the same for you - no questions asked, as long as it is in its original
packaging and accompanied by its invoice.
In case, an exchange is not required, you will be issued a gift card equal to the
billed value, which can be utilized within the store as per your convenience.
Pick the perfect gift with - more. MEGASTORE Gift Card smart, practical, and
truly appreciated. Our gift cards are always the perfect gift which can be used at
the more MEGASTORE by the recipient to purchase any gift of his/her choice
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any time. Our Gift Cards easily available at the Customer Support Help Desk
located at more. MEGASTORE
3.16 Market Profile of the organization.
Birla group instead of setting up its own retail outlets apart from their own
Madhura garment outlets, are trying to enter into the retail business by acquiring
already established retail chains. The company is mainly concentrating to establish
its foot in Southern India than competing with others in most affluent metro and
northern regions. To start with Birla group acquired Trinethra Super Retail chain
that mainly operated in Andhra Pradesh with some presence in Kerala and
Karnataka. Trinethra started retail business much before anyone could imagine the
growth of the sector as it is today. Trinethra started in way back 1986 in the twin
cities of Hyderabad-Secunderabad had revenues of Rs 250 crores from its 172
stores which are mostly the size of Reliance Fresh groceries stores [2,500 sft -
3,000 sft]. Apart from its grocery retail chain, Trinethra has also brought online
shopping portal Fabmall to the fold of AV Birla group. Birlas acquiring march
does not stop here. The company is planning to acquire Piramid Retail and
Niligiris. The latter will give Birla Retail, pan south-India presence. They are also
planning to open 172 hypermarkets and supermarkets starting from Pune.
Apart from operating two hypermarket stores under the umbrella brand name of
More.. for you at Mysore and Vadodara, the retail arm of the group operates
around 670 supermaket format, neighbourhood food, grocery, and general
merchandise, stores across the country. These stores include the erstwhile stores of
Trinethra retail chain, which after the acquisition were also rechristened as More
stores.
More, under the stewardship of its new CEO Thomas Varghese, an old Birla hand,
who was roped in after the Sumant Sinha, has taken several initiatives to revamp
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the operations of the loss making chain. Some of the initiatives include: Close
some of the non performing stores. Take a re-look at the design, positioning and
merchandise offered by the retail chain. Focus more on large sized stores. The
retailer will set up hypermarts of 30,000 to 40,000 sq. ft. spce each. Aggressively
expanding the retail network; add 200 Supermarket stores and 12 Hypermart stores
in 2009- 10.Renegotiation of property rentals for almost all leased properties with
their landlords. The rents in some cases have come down by 30 to 40 percent.
Introduction of private labels, mostly in fast moving consumer products category,
to increase share of private labels to 40 per cent in the next 4 to 5 years.
Look for earning rent from shop-in-shop opportunities. Recently, Dial for
Health wellness retail chain owned by Zydus group has inked an agreement to set
up such outlets in Gujarat and Maharashtra.
Look for a financial partner. We are not looking at a strategic partner. We will be
happy to have a financial partner. We have received lots of preliminary interest
from investors. We would be open to this idea, said Kumar Mangalam Birla.
Some private equity firms like Warburg Pincus are believed to have shown interest
equity stake in the company.
Aditya Birla group, incidentally, also operates 340 apparel stores across the
country of brands like Louis Phillippe, Van Heusen, Allen Solly and Esprit in the
lifestyle and value fashion segments. These stores are operated by Madura
Garments Lifestyle & Retail and Peter England Fashions & Retail, which are part
the groups flagship company Aditya Birla Nuvo. The garments business, which
clocked Q4 turnover of 273.3 crore (2008-09) and a nett loss of Rs. 82.2 crore
during the quarter, has also embarked on several measures to stem the rot,
including closure of 30 stores that will save around Rs 100 crore a year.
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4. OBJECTIVES
The use of research is reasonably widespread. The implications may be listed
as follows:
To ascertain the position of a store in the region.
To provides a birds eye-view of the retail industry as a whole.
Comparison of shrinkage reports of more stores
A statement of research objective should describe what would be achieved by
carrying out the research. These objectives should meet the business requirements
covered in the analysis stage.
It is important to distinguish between the information needed to meet the objective
and the objective itself. The objective is a statement of an intention to provide data
relevant to a marketing problem, but in itself it does not indicate what the research
must find out. The research project is constrained by time, and it is but natural that
some compromises will have to be made in the depth and breadth of the
information we propose to cover.
THE MAIN OBJECTIVES OF THE STUDY ARE:
To study the retail industry in detail.
To apply concepts of marketing in practical scenario.
To study the consumer buying behavior.
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To study the pricing strategies of the company in order to survive the
competition.
To understand the working conditions of more supermarkets.
To understand the concepts of super market, hyper market, retail outlets
adapted by various retailers.
5. RESEARCH DESIGN AND METHODOLOGY
Research And Decision Making :
Research is the process of collection, analysis and interpretation of information.Decision-making is an important aspect of retail management. While some of the
decisions have short-term consequences, others affect the long-term prospects of
the business. Whatever the nature of decisions taken, a common thread is the need
for information. In carrying out analysis, planning, implementation, and control.
STORE MANAGERS need information at almost every time. They need
information about customers, competitors, dealers, there own performance ,the
prons and cons of there stores ,the opportunities and other forces in the market
place. This is where research has a great role to play.
Research specifies the information needed to address various issues, designs the
method for collecting information, manages and implements the data-collection
process, analyzes the results, and communicates the findings and their
implications. Some common decision areas where research can help are as follows:
Description of Research Design: Fundamental to the success of any formal
marketing research project is sound research design. A good research design has
the following characteristic viz., problem definition, specific methods of data
collection and analysis of , time required for research project and the estimate of
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expenses to be incurred. A research design is purely and simply the frame work or
plan for a study that guides the collection and analysis of data. It is a blue print that
is followed in completing a study.
The study must be relevant to the problem.
The study must employ economical procedures.
Three important points about research design are:
The design of investigation should stem from the problem.
Whether the designs are productive in a given problem setting depends on how
imaginatively they are applied. An understanding of the basic design is needed so
that
they can be modified to suit specific purpose.
5.1 A RESEARCH PLAN
The another step of the marketing research process calls for determining the
information needed, and developing a plan for gathering it efficiently. The
elements of a research plan are as follows:
5.2 Analysis of the requirement for research:
Give some context - the business's involvement in the subject of the research.
Briefly describe any past events that led unto the present situation.
State what the present situation is and how this fits in with wider business
goals.
Outline business options that are available.
5.3 Stating the research objective
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A statement of research objective should describe what would be achieved by
carrying out the research. These objectives should meet the business requirements
covered in the analysis stage.
Our research objective is to study the comparison between the private labeled
products and other branded products at the more retail outlets.
5.4 Information Needed To Meet The Objective
It is important to distinguish between the information needed to meet the objective
and the objective itself. The objective is a statement of an intention to provide data
relevant to a marketing problem, but in itself it does not indicate what the research
must find out. The research project is constrained by both time and costs, and it is
but natural that some compromises will have to be made in the depth and breadth
of the information we propose to cover.
5.5 Research Methods
This element of the plan describes how the work will be carried out. The sources of
research information are conveniently classified as either primary or secondary. An
understanding of what can be obtained through desk research, how to plan
fieldwork, the role of questionnaires and how to use them in interviewing is all
needed in before research methods of a plan can be written.
5.6 Face-to-face interviews
Considerable time is spent on traveling. If the respondents are scattered it may
prove too costly. If the respondents are geographically concentrated and easily
accessible, then this type of interviewing is beneficial.
In this study the interviewing was face to face at the more outlet.
5.7 Selection of Appropriate Fieldwork Method:
We now consider when and why to use one fieldwork method rather than another.
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A number of factors are relevant and in a study it may be necessary to make a
compromise to resolve conflicting requirements.
1. Information:
Nature of information to be sought is the most important factor to be considered.
Quantitative data usually requires the collection of standardized data from a
reliable and representative sample. Either face to face or telephonic interviews can
be considered. Attitude measurement using scales is a type of quantitative data,
often based on a large number of interviews.
For collecting qualitative data, in-depth interviews or group discussions are
advisable. However it is worth considering other methods of data.
Collection, especially when both qualitative and quantitative data are to be
collected from the same respondent. For qualitative data, open-ended questions are
a comfortable alternative.
2. Respondents:
The nature and location of respondents may affect selection of the fieldwork
method.
For respondent group with low level of literacy, postal surveys cannot be used.
Street interviewing is not advisable for elderly or working class people.
3. Interviewing Requirements:
Special requirements may favor or rule out a particular field work approach.
Likewise when a product has to be shown or tested, then a hall is required unless a
home placement is more appropriate.4. Resources:
This is concerned with practical constraints and they may result in compromises on
either method or fieldwork used or on sampling procedure. The ideal research
method may not be feasible owing to the affordability criterion.
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5.8 CHOOSING THE RESPONDENT
In case of business research, who should be interviewed has to be given much
thought. The respondents must be in a position to give factual data to arrive at the
prevailing market situations. The respondents must have first hand knowledge of
the sanitary ware markets and the present scenario.
5.9 QUESTIONNAIRE DESIGN
Preparing questionnaires or observational forms is one significant step in research
that may be done properly by watching for the many pitfalls and following an
orderly procedure. The neophyte in this work should be warned, though, that no
questionnaire has been perfect and that an adequate one requires painstaking effort.
5.10 Types of Questions
A. CLOSED-END QUESTIONS
Name Description
A question offering two answer choices
Multiple choice:- A question offering three or more answer choices.
B. OPEN- END QUESTIONS
Name Description
Completely Unstructured A question that a respondent can answer in an
almost unlimited number of ways.
Sentence completion Incomplete sentences are presented and the Respondents are
asked to complete it.
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5.11 GENERAL PRINCIPLES OF QUESTIONNAIRE DESIGN:
1. Keeping the objectives in mind
Every survey has a purpose, which is defined on paper, and the objectives spelt
out. The first step in questionnaire design is, therefore, to write down the
objectives of the survey and then list the key subject areas where information is
required. Then assign an order of priority to each subject.
2. Drafting the Questions
Ask the following questions
Will the question be understood in the way that I intended?
How many different ways could this question be interpreted?
Is this question likely to annoy or offend?
Is there a better way of asking the questions?
3. Pitfalls to avoid in the designing of Questionnaire
Avoid lengthy questionnaires.
Make it short and sweet. Nobody likes a time consuming endeavor and the
responses may suffer.
Avoid long or complicated questions.
Make the language simple and easy to
understand. Incorporate only one idea or instruction per questionnaire.
Avoid unreasonable questions.
The respondent should not be forced into guesswork.
Avoid 'loaded' questions.
Loaded questions are biased and may elicit inaccurate responses.
4. Fine tuning the questionnaire
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Once the draft copy is prepared, revise it for corrections keeping in mind the
features of a good questionnaire and by steering clear of the pitfalls in
questionnaire design. The order of questions is adjusted to enhance the flow and
ambiguous questions are removed. A test or dummy run of the questionnaire is
advisable and it can be timed to arrive at the average time required to finish the
questionnaire. Fine-tuning of the questionnaire will flush out the weaknesses in the
questionnaire in terms of the meaning of questions or length of questionnaire or its
flow.
5.12 DESCRIPTION OF RESEARCH DESIGN OF THIS STUDY
The research design is the major blue print according to which the result is to be
conducted. The research design specifies the methods of data collection and data
analysis. In the preliminary phase exploratory research was conducted to obtain a
proper definition of the problem at hand. It helped in formulating the hypothesis
for further research. The study also makes use of descriptive research in order to
analyze the problem and come up with solutions.
Sources of data included both internal as well as external. Primary data was
collected using questionnaires and by fixing interview schedules at the
respondent's work place. Secondary data was collected from magazines, journals,
textbooks, newspapers, Internet web sites etc.
5.13 METHODOLOGICAL ASSUMPTIONS AND LIMITATIONS
ASSUMPTIONS
Data was collected from the customers by using both the questionnaire method and
the observation method
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LIMITATIONS
Due to time and constraints the sample size is limited and probably not enough.
Due to the large market and dispersed market players, the attention devoted to each
player may not be sufficient.
The data gathered may be biased in favor of the respondents.
The data is mainly collected from dealers . dealers are dealing in some particular
brand. So their responses may be biased.
It is hoped that the sample size portrays the true picture.
Selecting a survey technique
The major factors involved in selecting a survey technique are
Cost of collecting the data
Speed of getting desired response
Accuracy of the data
5.14 ANALYSIS OF DATA
TYPES OF DATA
PRIMARY DATA :- It refer to that data which is used in its raw form.
For example in our case the COMPARATIVE reports collected from MORE store
is the primary data.
SECONDARY DATA :- It refers to the information which is collected from the
other sources.it can also be defined as the filtered primary data.
For example in our case the information obtained from the store managers of the
more store is the secondary data.
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Classification of Data
Classification is arranging the data according to points of similarities and
dissimilarities.
The common types of classification are quantitative, geographical and
chronological.
The objectives are:
1. To prepare data in to homogeneous groups.
2. To prepare data to be presented in tabular form
3. To condense the mass of data in such a way that its salient features are
highlighted.
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6. DETAILS OF THE RESEARCH CONDUCTED
COMPARATIVE ANALYSIS
The comparative analysis between the mores private labeled products and other branded
products is done based on the five home brands of more. Feasters, jon, 110%, prarthana, AU 79.
The main objective has been taken into consideration before doing this study.
6.1 BRAND COMPARISON
Home label products Other labeled products
Feasters cashew biscuits Britannia good day cashew
Feasters fruit jam Kissan fruit jam
Feasters noodles Maggie noodles
Jon tea Brooke bond red label tea
110% dish wash bar Vim dish wash bar
110% washing powder Tide washing powder
Prarthana agarbatti Cycle brand agarbatti
AU 79 shaving foam Gillette shaving foam
Enriche soaps Park avenue mens soap
AU 79 after shave lotion Old spice after shave lotion
AU 79 body spray(choco) Axe body spray(choco)
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6.2 Price