retail buying & merchandising

8/7/2019 Retail Buying & Merchandising

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Experience with the BEST

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SUBMITTED TO: SUBMITTED BY:-

MR. PUSHPIENDER SINGH NARESH KUMAR

LECT MGT474 REG NO.10805681

LPU JALANDHAR MBA 4RD

SEMESTER


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With the dream of turnover 500 cores for the next five year, consumer electronics chain

BEST Retail India plans to open 1500 new outlets by 2015, including exclusive stores. "The

aim is to have 15, 00 BEST outlets by 2015, covering 200 cities across India and for products

such as computers, gaming consoles, mobile phones and others.

BEST retail is a one the store for all technology solutions in the field of consumer electronics,

home appliances, information technology and telecommunications. The store covers an area

of more than 42,000 sq. ft thus being the largest consumer durable store in India and will

offer over 5,000 products spread across more than 150 brands along with countless solution

bundles recommended to meet the diverse customer needs.

Mission: - To provide variety of electronics in all over in India in fewer prices with high quality.

Vision: - To become global consumer electronics brand by 2015.

A. LEGALASPECT IN RETAILWe are all aware of the fact that a host of legislations govern the retail industry. Let us briefly

understand the provisions of each and the way they impact the retail business.

Currently the nascent stage of retailing sector is governed by the following acts / licenserequirements about which you should be aware of:

1) The Shopsand EstablishmentAct

This act is in essence a state legislation seeking to regulate working conditions of workers in

the largely unorganized sector.

This includes all type of shops and establishments which do not fall under the purview of theFactories Act Regulations.

It deals with rules and regulations regarding working hours, recess, overtime, holidays,termination of services, working environments of shops, other rights and obligations of the

employer and employees so on.Further it provides for provisions wherein compulsory registration of the shop/ establishment

within 34 days of operational commencement and intimation of closure within 15 days ofclosure is mandatory.

Thus the objective of this act we infer is to provide statutory obligation and rights to

employees and employers primarily in the unorganized sector.


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2) Sales TaxAct

This acts states that a dealer who is engaged in activity of manufacturing, importing, buying

and selling of goods needs to register under the Bombay Sales Tax Act, 1959.

The following are the requirements for registration:

Showing the books of account and statement of sales/purchases. Proof of partnership deed/memo of articles of association. Rent receipts of place of business and residence. Proof of identity (ration card/driving license etc.) Photos duly attested, certificate/license under the Municipal Act, Factories Act, shops

and establishments Act etc. as applicable.

Copy of the assessment order under income tax if any. Court fee stamp on CST registration application and any other details to prove the

genuineness of the applicant.

3) The Consumer ProtectionAct,1986

This act was legislated to provide protection to consumer interests through consumer councilsfor settlement of disputes and other relevant issues.

It bestows the following rights on the consumer as per ConsumerProtection Act:

The right to be protected against marketing of goods and services, hazardous to lifeand property.

Right of information on quality, quantity, potency, price to protect the consumeragainst unfair trade practices.

The right to have access to variety of goods and services at competitive prices. The right to be heard and seek redressed for his grievances at appropriate forums

against exploitation by manufacturers or retailers.


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4) The SaleofGoodsAct,1930

This act governs the contracts relating to sale of goods. It is subject to the general principles

of the law relating to contracts.

A contract of sale of goods is a contract whereby seller transfers or agrees to transfer the

property in goods to buyer for a determined price.Thus a "sale" must be distinguished from an "agreement to sell" since the legal implications

of the two terms are vastly different.

5) FactoryAct1948

By keeping the consideration of Factory Act 1948 we will follow the guide lines which are

mandatory made government of India for a retail store. Although our store is also consumer

electronics store so it is our duty to follow the guide lines. For this we will take the

followings steps:-

Keep the environment clean and neat. We will do the proper disposal of wastage. Proper ventilations in the Store. Make the environment free from dust. Arrangement of proper lighting in the Store. Keep the space for emergency exit in case of fire and other happening. Working hours for the staff should not exceed 10.30 hours. We will take proper care

of health of BEST Electronics staffs. We will provide them separate rest room and

eating rooms for the staff.

Legalcompliancesinretail

1) The first thing is to enter into an Agreement for taking place for opening of store. The

nature of Agreement depends on case to case like Lease Agreement, Leave & License

Agreement etc.

2) After that take Trade License from the respective state.

3) Take Music License if you want to play music in the store. Music License is taken from

IPRS and PPL (from both the agencies)

4) Register the store under Shops and Establishment Act of the respective state. (For the time

the registration in Delhi has been kept in abeyance by the State Government)


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Typesofretailformat

BEST retail will sells ACs, TVs, home theatre systems, washing machines, refrigerators,

microwaves from Electrolux, HCL, Hyundai, Kelvinator, Kenstar, LG, Nokia, Onida, Philips,Sahara, Samsung, Sansui, Toshiba, Videocon . With an eye on the lifestyle category, the

company has plans to open 1500 consumers electronics store of the mobile era and computer

age.

Technology simplifies life. At BEST, we simplify technology. We offer our shoppers one of

widest ranges of products and brands in consumer electronics and durables and a shopping

experience that's truly world-class. You can choose from over 5000 products across eight

categories. Our trained and knowledgeable advisors will help you arrive at an informed

decision with their personalised advice.

Whether you want to increase your productivity with the latest notebook, tune into your

favourite music on the go, keep your cool in steamy weather with an AC, talk nineteen to the

dozen on your mobile phone or do your laundry in a jiffy with a fully-automatic washing

machine, Croma can help you make the right choice.

TargetArea

Jalandhar Model Town we target only model town because it one of the best area of the

Jalandhar and there are other showrooms , malls are available so mostly high class and

middle class people visit there because electronics products are mostly expensive products so

there is more chances of the success of the store .

And there is no multiple or big electronic store in this area. So we target the ModelTown.


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Human Resource

Work in a retail store done by a large number of people, each of whom has a specific task.

All the people concerned share the total quantum, of work, all working to a common

objectives or goal.

OrganisationofBEST Electronics

General Manger

Chief store controller

_________________________________________

Store Manger Store Manager Store Manger

Receipt material planning MIS Report

Inspection material consumption control stocking and Audit

Transport inventory control stock accounting

Despatch material handling computer

This is the proper human resource plan of the BEST Electronics. Total number of the lower or top

level employee is 50.


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Supplychain

Retail sector is one of the emerging sectors of Indian market. Among the fast-paced

industries, retail accounts for over 10% of Indias GDP and 8% of total employment. It isexpected to grow by 9.5% annually. But have you ever wondered which the backbone of this

retail sector is? What keeps this sector organized by sending the products to the place where

it is required or other activities involved in it? It is the supply sector. Supply chain is the most

vital organ of the retail management system. The social changes that have been brought about

by economic growth cry for more and better goods in terms of global standards at reasonable

prices on scheduled time with no break in availability.

The state of retail in India is highly fragmented with over 12 million unorganized retailers

across the country which leaves much of opportunity in the supply sector. With the entry of

large modem retailers over the last few years, the share of the organized market has been

growing rapidly to reach 5% of the total market.

The state of retail in India is highly fragmented with over 12 million unorganized retailers

across the country which leaves much of opportunity in the supply sector. With the entry of

large modem retailers over the last few years, the share of the organized market has been

growing rapidly to reach 5% of the total market.

Supply Chainfor BEST Electronics Retail

Globalization has resulted in production that relies on international supply chains stretching

around the globe. Multinational corporations produce products in low-wage countries,particularly apparel, electronics, footwear and toys. Service networks are similarly

globalized.

Unfortunately many local supply chains have poor labour and environmental standards.

Workers are paid poorly and often work in unsafe conditions. To change this, we call on

corporations to improve working conditions in supplier factories.

The Oblates are in dialog with companies from a wide range of sectors from electronics

(General Electric Company) to retail (Wal-Mart). We work with fellow ICCR members to

press for implementation of policies to insure better working conditions and wages for

workers as well as improved environmental conditions. Companies respond out of concern

for their reputation and Brand.


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This chart s how the supply chain of retailer to final consumer. The process start with

made by a manufacture of goods or items then it go to distributer; then it go supplier ;

supplier supply it by use logistic then it go to retailer; retailer sell the goods to its final

customer.

Informationsystem

In the modern completive world, a good retail store need a flexible information system and

communication systems that are totally implemented to a specific situations. In case of

consumer electronics store there is very tough competition in India Tata Croma; RelianceDigital etc are key player in this segment. So we are using a flexible information system for

BEST Electronics with keeping in mind concentration tendencies, globalisation, increasing

cost pressure and well-informed customers. The "right" products, a successful market image,

a strong positioning between suppliers and customers, efficient logistics and optimum

organization structures contribute to a company's survival. Achieving this goal requires

flexible information and communication systems that are fully adaptable to the specific

situation. Key decision regarding information system:-

Use of computer for the receipt section. One line information regarding the Best Electronics Retail Store Information regarding all the products, special offers. Online shopping like software, antivirus, mobile recharges etc you can buy these buy

paying through debit cards.

Debit cards and credit cards will be accepted in the store also. Separate website for feed back or your experience in visiting in BEST.


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MerchandisingAssortment

A system for ordering items comprising: a server for controlling data communication with a

plurality of terminals via a network, a database accessible by the server comprising

A merchandise master who stores information on all items offered from a plurality of dealersto a plurality of customers.

According to item numbers unique to each item, and a merchandise assortment related

master which stores a list of traded items and the item numbers among the items stored in the

merchandise master agreed upon between the customer and the dealer as merchandise.

Assortment related information according to each purchasing unit of the customer and each

dealer who offers the item to the customer; and a terminal for submitting to the server an

ordering request for ordering at least one item from a user who belongs to a purchasing unit.

Information groups for each of the dealers in a state in which item numbers of itemspurchased by the customer are not duplicated by a plurality of dealers, wherein the item

specific order controller comprises: a function for determining a purchasing unit of a user

who accessed from the terminal and specifying the merchandise assortment related

information group for the purchasing unit, based on the determined purchasing unit.

I. MerchandisingHandlingMaterial handling constitutes one of the main activities in the store. Handling method and

handling equipment contribute to efficiency and economy, which as will be appreciatedare the two major factors in good management. While choosing the MH equipment a

number of things must be taken into account first nature of the business, size of the store

is it small or big.

Other factors involved in material handling are:-

1packaging

2. Layout

3. Movement: - it has three distinct actions

a) Lifting the goods

b) Transporting them, and

c) Placing them down


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Typesofmaterial handling Equipmentthatareusedin Best

Electronics Store

1. Static equipment.

2 .Manual mobile equipment equipments to hold lift or carry.

3. Power equipments to hold, lift or transport.

Imagesofmaterial handlingequipmentthatareusedin BEST

Electronics.


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Buying Decision

In today's competitive retail environment a retailer cannot afford to consider merchandising

as a 'frill'. Everyone is competing for the customers' dollar. There are more choices out therefor consumers than ever before.

Merchandising is more than simply the arrangement of products on the shelf. It is an integral

component of the business image. It should be considered when you design your logo,

business cards, brochures, letterhead, packaging, and product mix.

When you examine your merchandising, you examine what the customers' experience, from

their first sight of your store front, until they leave store - hopefully with a purchase in hand.

Merchandising is also about understanding the way customers shop. By using this

knowledge, you can position your merchandise to increase sales.

We will try to create an environment in BEST Electronics that attracts the customer, is

comfortable to shop, and encourages the customer to return.

Are the store front and windows attractive & inviting?

Is all signage clear, professional and legible?

Is the store interior welcoming and comfortable?Is merchandise presentation appealing?

Are seasonal and high-margin merchandise placed in high profile locations?

Overall, is the store appearance professional

Layoutforthe Store

PlanningtheLayout

For opening the consumer electronics store for the effective and efficient layout must be based on the

following consideration:-


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1) Similarity:-Similarity refers to items of a similar nature. For example in our BEST Electronic

store we will store different types of items in different places like TV, LCD; Refrigerators, washing

machine, mobile phones etc we will locate them in separate areas.

2) Popularity:-Items which move very fast may be said to be Popular. We will place them items

in such a way in the store they are easily accessible and where the least amount of the materialhanding is involved.

Forexample:-In the festive season there is great demand of TV, LCD, AC and other accessories so

we will place the in the front.

3) Size:-The third factor is the physical size of the each material store. This is important and would

also mean besides the unit size of the total quantities stored at one point of time.

4) Characteristics: - Materials stores will vary in characteristics. For example small electronics

like mobile phones, laptops etc.

5) Security:-This is another important matter which has to be taken into account while designing a

Store.

Layout Design

There are two methods normally adopted for designing the layout of a Store:-

i. Judgement methodii. Scientific method

We will use scientific method while design BEST Electronics the design of the layout is

totally based on a detailed scientific study of the exact requirements based on Work Study

Techniques. This is done by experts. We will determine first the exact amount of space in

terms of area and volume that would be required to store the material likely to be stocked.

The proper method of storage of the materials, especially on the floor, will be determined on

the basis of evaluation of various alternatives.

We made stores planning worksheet is made out showing the exact layout, and illustrating

the type of storage equipment envisaged.

Our main object is to maintain a Work-Flow through the store so that it can operate

continuously without hindrance caused by blocked gangways or inaccessibility of the

electronics.

We keep the four main criteria while using the scientific method of layout design:-

1) Receipt and inspection of materials from supplier and their storage.


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2) Picking of materials, their issue and dispatch.3) Stock taking.4) Stock maintenance, stock turnover, periodic inspection, maintenance and re-binning.

By keeping the above factors in view we will use this type of layout for our Store.

Visual Merchandising

Visual merchandising is the activity of promoting the sale of goods, especially by their

presentation in retail outlets. This includes combining product, environment, and space into a

stimulating and engaging display to encourage the sale of a product or service. It has an

important element in retailing that it involves a team effort involving senior management,architects, merchandising managers, buyers, the visual merchandising director, designers, and

staff. Visual merchandising starts with the store building itself. The management decides on

the store design to reflect the products the store is going to sell and how to create a warm,

friendly, and approachable atmosphere for its potential customers.

Many elements can be take into consideration by visual merchandisers in creating lighting,

space displays, including colour, , space, product information, sensory inputs such as touch,

smell, touch and sound as well as technologies such as digital displays and interactive

installations.

We plans in BEST Electronics Retail Store to display merchandising to make theshopping experience more comfortable, convenient and customer friendly by:

Making it easier for the shopper to locate the desired category and merchandise.

Making it easier for the shopper to self-select.

Making it possible for the shopper to co-ordinate & accessorize.

Providing information on sizes, colours & prices.

Informing about the latest fashion trends by highlighting them at strategic locations.


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Mainor FutureobjectivesofBest Retail Electronicsare to:-

Educating the customers about the product/service in an effective and creative way. Establishing a creative medium to present merchandise in 3D environment, thereby

enabling long lasting impact and recall value.

Setting the company apart in an exclusive position. Establishing linkage between fashions, product design and marketing by keeping the

product in prime focus.

Combining the creative, technical and operational aspects of a product and thebusiness.

Drawing the attention of the customer to enable him to take purchase decision withinshortest possible time, and thus augmenting the selling process.

ImagesofVisual Merchandisingin BEST

Electronics

Image1.

Image2.


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Stock Verification Methods

Stock verification refers to the process of physically checking the quantities of different items

of material available in stock in a store or warehouse and tallying these physically available

quantities with the quantities shown in stores stock records.

Stock verification is done not only for spare parts, but for all types of material that may be

stocked.

Depending on timing of physical check of the quantity in stock, different types of stock

verification can be designed. The most common types of stock verification systems that we

used in BEST Retail Electronics are described below.

(a) Periodicstockverification: -In these systems the verification is done at fixed

periodical intervals. For example many companies do their stock verification just before the

yearend so that the annual accounts of the company will reflect the correct stocks. There is a

variation of periodic stock verification in which all items in the stock is divided in 12 groups,

and a specific month is fixed for stock verification of the items in the group. Thus every item

in store gets verified once a year, in different month. This system allows the workload of

stock verification to be divided evenly throughout the year. In this system, instead in of

month wise grouping, some other per ion such as week or quarter may also be used.

Perpetual stock Verification: In this system the stock of every item is verified every time

there is an issue or receipt transaction for the item. This means a much stricter control over

physical stock. But this also involves more work. In one variation of this system the stocks

are verified only before new receipt in stocks. This reduces the frequency of verification.


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(b)Dailystockchecking:-We will use another method of stock verification in BEST

Electronic Retail Store. In this method the Stores personnel are required to check 10 to 15

items daily at random. This helps to locate discrepancies as the Stores personnel are

conversant with possible areas/items where such discrepancies are most likely to have

occurred. This will also eliminate any tendency on the part of the Stores personnel to indulge

in malpractice.

(c)Checkingby Store in charge:-We assign store- in- charge for checking theStore. The discrepancies are immediately scrutinised and necessary corrective action is taken.

(d)Periodicchecking:-We will use another method for stock verification this is halfwaybetween annual checking. This checking is done by Accounts and the Stores personnel at regular

interval e.g. once every two months.

Inventory Control Techniques

Inventory control is a set of policies and procedures by which an organization determination what

material it should hold in stock and the quantities of each that it should carry.

MainobjectivesofBEST Electronicsinventorycontrol

Carryingcost:- Inventory carrying costs are today as high as 30percent, i.e., if a companyhas Rs 1 crore worth of stock it spends Rs. 30 lakhs to carry it in store .The main objectives of

BEST Electronics is to minimise its inventory carrying cost by using such type of inventory

control techniques that they can able to minimise its inventory carrying cost.

Variety: - Our mission is to provide the variety of the consumer electronics products accordingto the modern complexity needs and taste of the customers. The larger the range of inventory, the

greater the number of problems in inventory, investment, procurement, handling, accounting,

shortage and stock-outs, deterioration and obsolescence. We will provide the large variety to our

customers and minimise the above problems which are commonly happen in big Stores. s

Techniques used in BEST Electronic

1. EOQ:-it is the quantity for which an order is placed when stock reach- reorders level.

2ABC analysis: - Second techniques that are used in BEST Electronics store that is ABC analysis.

3. VED: - Means vital essential desirable this technique is also used by BEST Electronics.

These are the major techniques that are mostly used in BEST Electronics store for inventory control.


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Inspectionprocedurein BEST Electronics

The function of inspection is to determine the acceptability of a manufactured article. Inspection

involves comparing a product with an accepted specification or other recognised standards.

Inspection methods

1.AQL

An important part of the inspection planning is that the BEST Electronics has been installed that is

AQL (Acceptable Quality Level) for acceptance sampling of each class of items at every inspection

station. We use two primary considerations for AQL values in the BEST Electronics.

1. Sampling inspection will permit the passage of a small percentage of defected material if the

process itself causes this damage.

2. In case of defected part is detected as a result of final inspection and test on completed item, the

problem becomes one of simple economics, ice comparing the cost of failing to find a defect.

Unit cost of detailed inspection

P = ____________________________

Unit cost of failure to find defect

Where P = fraction defective at break even point.

2. StatisticalQuality Control:-

This is a method that is used by BEST Electronics. Because this method is resulted from the

gradual realization of the in adequacy on the one hand of such rule- of thumb methods as

inspecting ten pieces per shipment, or inspecting a flat 5 or 10 percent of receipts and the

impossibly on the other hand, because of time and expense, of complete inspection of all

incoming shipments.

3. SequentialsamplingAnother procedure for acceptance inspection that is uses by BEST Electronics is the

sequential method. Here the decision to accept, reject or continue inspection is made as the

test or observing of each piece.


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Storage System

The term Storage refers to the physical act of storing the materials in a Store, on pallets, shelves,

racks, boxes, admirals etc. With the objective of retrieving them later for issue of despatch to the user

or customer.

The main objectives of BEST Electronics Store.

y The right materials;y In the right quantity;y In the right time; andy At the lowest possible cost.

MethodofStorage

The method of storage is literally limitless and takes many forms depending on the available

space and storage facilities and of course the nature of the products. Following methods are

used by BEST Electronics Store:-

Binnedstorage:-

A bin is a receptacle in which material are kept. In the BEST Electronics Store bins are used

for the small electronics goods.

Shelving:-

Material is stored on shelves. In the BEST Electronics we use shelving for electronics goods

maxi, irons etc.

Racking:-

This is often used to store palletised goods. Like DVD players, music systems etc.


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Storage Equipmentusedin BEST Electronics.

1 woodenshelves:-These can be built to varying in sizes. They are normally cheap and light in weight.

ImageofWoodenshelvesusedin BEST Electronics Store

Image1

Image2.


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Otherimages

Scrapanddisposalofmaterial

This term applies to unusable material whose value is only in terms of its material whose value is only

in terms of its material content, be it metal, paper or cloth.

The scrap is mainly three types:-

a) Ferrousscrap: - This is suitable for re-smelting to produce iron, steel or its alloys.

b) Metalscrap: - Copper, brass, tin, lead, zinc, aluminium and nickel fall into this category.

c) Waste: - All non- metallic scrap is called waste: paper corrugated oils, bags, plastics, rubber

wood, etc.


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Scrap Managementin BEST Electronics.

Three of the most important matter in scrap management is:-

a) It was assumed once that scrap is inevitable in a manufacturing environment.b)

Collect, sort and prepare the scrap metal and waste. Mentioned earlier were thevarious grades of ferrous scrap.

c) The scrap must be disposed of as possible, preferably as it arise.Disposal

There should be a proper procedure laid down for all disposals and accountability should be fixed.

BEST Electronics has followed four methods of disposal:-

Re-use within ones own company. Return to supplier. Sale to another company which will use it as a raw material. Sale to a dealer or a broker.

Storesaccounting

Stores accounting has two aspects, the value of the material stored and the physical quantity of the

material stored. In regard to the first, stores s accounting is necessary for a large number of reasons, of

which the following three are important that the BEST Electronics are following.

1) The stocks represent assets of the company and as such it is necessary to include their value inthe accounts of the company.

2) It provides a means of costing a manufacturing item.3) It provides a basis for inventory control by value.

Stock records are necessary for the following purpose in BEST Electronics.

1) They indicate the amount of any material in stock at any time. Without it being necessary forthe item to be counted physically.

2) They enable the physical stock and the stock as indicated by Stores accounts to be tallied.3) They provide a means of determining how much should be ordered to maintain stocks at the

required level.

Purposeofstoreaccountinginthe BEST Electronics.1. To prepare the accurate cost accounts;2. Evaluation of purchase performance;3. An indication of quantity and value of stores without doing physical stocktaking.4. Working out important management ratios like sales to inventory, consumption to inventory,

purchase to inventory turnover etc.

5. The preparation of material budget.


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AccountingofStoresinvolves:-

1. Collecting information through stores transaction documents;2. Preparing summaries according to class/ category of items;3. Reporting data in monetary terms. This may refer to what happened as also to future buying

storing etc.

Methodofstockvaluationusedin BEST Electronics

1) FIFO( First- in- out)2) LIFO (Last-in-First-out)3) HIFO (highest-in-first out)4) NIFO(Next-in first-out)5) Base stock6) Simple average7) Weighted average8) Periodic simple average/ weighted average9) Standard price10)Replacement price

MIS in BEST Electronics

BEST Electronics information systems support distributed stores by linking them. By allowing the

instant exchange of information, store managers can stay in contact to more effectively, control profits

for the whole company. The system should support product management. It should also enable

detailed analysis of customer data. A flexible system allows managers to set prices for variable time

periods based on the store location. To meet the needs of sales and inventory managers, retail

management information systems include a mobile user interface.

Function

Supporting the basic functions of procurement, storage and delivery, BEST Electronics information

system allows a manager to manage customers, inventory, suppliers and product sales. The system

allows you to track purchase orders and update inventory records dynamically. You can analyze cash,

check and credit card transactions to reconcile information. Improve efficiency by examining overage

and shortages to reveal trends that can be rectified.

Benefits

Integration between payments, inventory and transactions, improves operations and reduces costs by

preventing duplicate entries. By tracking inventory, effectively you can more quickly respond to

customer requests. By being able to respond expediently you can also improve service, expand your

customer base and increase profits. Accessing data easily allows you to identify opportunities to

improve waste reduction, recycling materials and choosing environmentally friendly packaging.

These strategies enable a profitable business. System safeguards ensure adherence to legal restrictions

on pricing, promotion and other policies.


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Marketing PlanMarketgrowth size,demandGrowth potential

andopportunityinconsumerelectronicsin India

The Indian consumer electronics industry has been growing at double-digit rate on the back

of economic growth, increasing affluent population, changing lifestyle, and low level

penetration of consumer electronic goods. The industry will continue its growth march in

future but the future growth will come from newer technology products that offer improved

performance at affordable prices, as per our report, Booming Consumer Electronics

Marketin India.

The study reveals that the growing middle class population is largely emphasizing on

consumer electronic products that are more convenient to use and more efficient. Indianwashing machine market clearly substantiates this fact. Currently, accounting for around 63%

of volume sales, semi-automatic twin-tub category dominates the washing machine market.But in terms of growth, the fully-automatic category is performing extremely well in the

Indian market. The volume sales of fully-automatic washing machines are expected tosurpass that of semi-automatic washing machine in coming few years.

A similar trend will also be seen in the refrigerator market, which is broadly classified as

Conventional or Direct Cool Refrigerator, and Frost Free Refrigerator. Traditionally, directcool refrigerators continue to dominate the Indian refrigerator market, occupying more than

60% of the total volume sales, but growth has been very impressive in frost free refrigerator

market. The same trend is expected to continue in near future as well, where frost free

refrigerators will account for nearly 45% of the total volume sales in the market.

Booming Consumer Electronics Marketin Indiais an exhaustive and rational analysis

on the thriving consumer electronics industry in India. It provides prudent research andanalysis on various consumer electronics segments, such as home appliances: Washing

Machines, Television, Set Top Box, Refrigerator, ACs, Microwave Oven; Audio/VideoAppliances: MP3 Players, DVD players, Digital Camera and camcorder; Mobile handsets and

PC Market.

This report highlights the present and future trends in the industry, discussing industry

roadblocks while evaluating future growth areas. It describes the industry landscape and

gives comprehensive information on market size, consumption trends and overview on key

players.


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Supporting marketing programs

1) Integrated market communication tools used in Best Electronics

a)Product

It provides prudent research and analysis on various consumer electronics segments, such as

home appliances: Washing Machines, Television, Set Top Box, Refrigerator, ACs,Microwave Oven; Audio/Video Appliances: MP3 Players, DVD players, Digital Camera and

camcorder; Mobile handsets and PC Market.

b) PricingBest Electronics prices will be determined as compared to its competitors

Like LG Sony, Croma consumer electronic store of Tata Group.

c) PLACEMENT

Regional sales office every region of India

State sales office every state in India.

Central zone office

d)PROMOTION

Promotion activities include persons in retail stores telling the benefits to potential customers

about the quality Best Electronics in standard packed for. Awareness plays the mostimportant role.TV commercials and Bill Boards should be planned to advertise properly.

Determiningthe Promotional Methods

There are various promotional methods like Sales presentations Sales support programs Cross selling personal selling, advertising, sales

d.)BROADCAST MEDIA:-Television

RADIOMagazines & Newspapers

BELOW THE LINE

Below the line includes following mediums of advertisement. Direct mail

Outdoor


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e.)OUTDOOR

Best Electronics has a big share of their advertisement budget on the outdoor advertisement,

which includes

P

ainted Billboards MMT

Vinyl Sheets Rotary Plan

f.)TRANSIT ADVERTISING

Transit advertising is a category of out of home media that includes bus andTaxicab advertising as well as posters on transit shelters, terminals, and airports.

Types of transit advertising

o Inside cardso Outside posterso Terminal posterso Taxi / bus exteriors

g.)Personalsellingtools:-

Emotions- sales force will exploit the emotions of people and persuade them to select health

conscious drink.

h.)Direct marketingtools:-

It is strongly recommended Best Electronics must an effective web presence in this

interactive world .To promote the entire site, an online marketing program must be launched.

A comprehensive, highly targeted group of destination web sites must be chosen for the

program. The web site should be registered with yahoo search portal. And a number of

tactical elements will help drive online awareness and inquiries into the program including:

o Online webinarso Online newsletterso Search engine registrationo Web site linkso Content marketing and licensingo Opt-in emailo Specialized promotions and partnerships

I.)Public Relationstools:-


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A public relations campaign must be undertaken. This robust program includes:

Media tours

Monthly press releases

Media briefs

By-lined articles and supplements

Speaker placements

.

2.)Marketing Research:-

By taking customer personal interview.

By the questionnaire.

ProductpositioningWe are positioning our Best Electronics as good quality, verity of all kind of electronics for

all class customers at low price

Challengesfacing Indianconsumerelectronics

industry

y The tax structure in India favours small retail businessy Lack of adequate infrastructure facilitiesy High cost of real estatey Dissimilarity in consumer groupsy Restrictions in Foreign Direct Investmenty Shortage of retail study optionsy Shortage of trained manpowery Low retail management skill


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4. Finance

Balancesheet Best Electronics

(Billion KRW) 2007

4Q 3Q 2Q 1Q

Asset 61,892 59,250 56,495

Cash & Cash Eq.* 4,605 3,348 1,948

Marketable securities 867 761 962

A/R (Traded) 2,315 2,022 2,243

Inventory 3,377 3,174 3,212

Liabilities 12,573 12,437 12,061

Debt 87 87 88

Shareholders' equity 49,320 46,813 44,433

(Billion KRW) 2006

4Q 3Q 2Q 1Q

Asset 57,809 54,487 51,282 51,358

Cash & Cash Eq.* 4,313 3,762 3,041 4,330

Marketable securities 2,059 1,420 1,444 2,082

A/R (Traded) 1,842 2,126 1,810 1,466

Inventory 3,219 3,068 3,040 3,041

Liabilities 12,549 11,700 10,634 10,574

Debt 87 89 90 95

Shareholders' equity 45,261 42,786 40,648 40,784

Required FinanceTo open a new store it assumed that 2 to 5 core capital required. Because it is a big

store and it has high price merchandise like TV, computers, refrigerator, washing

machine etc.

ITEMS Cost(crore)

Building or real state, advertising,infrastructure etc.

2.5

Merchandise or accessories

Salary of the employeesTotal capital

6.5

.510


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SourceofFinanceA company might raise new funds from the following sources:

The capital markets:

I) new share issues, for example, by companies acquiring a stock market listing for

the first time

ii) Rights issues

Loan stock

Retained earnings

Bank borrowing

Government sources

Business expansion scheme funds

Venture capital

Franchising.

To open the Best Electronics in Punjab we will take loan from the financial

institutions.

Break EvenAnalysis:-

We are starting a new business to open a retail chain of consumer electronics. Break even

analysis is that where there is no profit or loss. So it is difficult to find out break even

analysis of Best Electronics.

Conclusion

In conclusion we can say that this store is opening by taking care the needs of Jalandhar

people. It is completely modern store including with modern technology, modern equipments

utilisation totally computerised system is used in the store. This store covered 42000 square

feet area with the 5000 different products including 100 different brands.

RecommendationsIt a new store so all the employee should take care of the new customer.

Attract more and more customer by providing 100 % customer satisfaction for each

and every customer in each time.

Keeping update with new technology.

Provide good quality products.


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References

Www. Croma. Com

http://www.eicepower.com/autopower/oct04auto/014g_inventory_control_tec.html

http://www.naukrihub.com/india/retail/overview/retail-formats/

http://www.citehr.com/10133-sales-incentive-plan-retail-store-employees.html

www.circuitcity.com/

www.circuitcity.com/

http://www.fao.org/docrep/w4343e/w4343e08.htm

www.moneycontrol.com

www.economywatch.com Investment

www.corporateinformation.com/Company-Snapshot.aspx?.

retail buying & merchandising

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