vishal kushwaha project mba 2012

7/28/2019 Vishal Kushwaha Project Mba 2012

1/100

A

ONA STUDY ON MERCHANDISE PLANNING IN A RETAIL STORE

BYVISHAL KUSHWAHA

REG NO: 511128724

Submitted in fulfillment of requirement for the degree of the

Master of Business Administration in marketingOf Sikkim Manipal University, India

(Session:2010-2012)

Under the guidance of submitted by

Mr. Manav Sharma vishal kushwahaDirector & center head MBA semester IV

Submitted at

NORHEN COMPUTERS


2/100

NORTHERN COMPUTERS

16/79-G, CIVIL LINE BEHIND RBI

NEAR CENRA BANK,KANPUR-208001

CENTER CODE-0940

ONA STUDY ON MERCHANDISE PLANNING IN A

RETAIL STOREBY

VISHAL KUSHWAHAREG NO: 511128724

Submitted in fulfillment of requirement for the degree of theMaster of Business Administration in marketing

Of Sikkim Manipal University, India

Sikkim Manipal University of Health,Medical & Technological Science,

Distance Education Wing,Syndicate House, Manipal-576104


3/100

A study on merchandise planning ina retail store

Submitted in fulfillment of requirement for the degree of theMaster of Business Administration in marketing

Of Sikkim Manipal University, India

By

Vishal kushwaha

Sikkim Manipal University of Health,Medical & Technological Science,

Distance Education Wing,Syndicate House, Manipal-576104

EXAMINER S CERTIFICATION


4/100

The project report of Vishal kushwaha A study on merchandise

planning in retail store is approved and is acceptable in quality and

form.

Internal Examiner External Examiner

(manav sharma)

Centre Head

UNIVERSITY STUDY CENTRE CERTIFICATE


5/100

This is to certify that the project report entitled A study on

merchandise planning in retail store submitted in partial

fulfillment of the requirement for the degree of master of Business

Administration in marketing of Sikkim Manipal University of

Health, Medical and Technological Sciences.

Vishal kushwaha has worked under my supervision and guidance and

that no part of this report has been submitted for the award of any

other Degree, Diploma, Fellowship or other similar title or prizes

and that the work has not been published in any journal or

magazines.

VISHAL KUSHWAHA Certified

Regn. No. 511128724 ( Manav sharma)(director & Centre Head)

DECLARATION


6/100

I hereby declare that the project report entitled A study on merchandise

planning in retail store. Submitted in partial fulfillment of the

requirements for the degree Of Master of Business Administration in

marketing to Sikkim Manipal University, India, is my original work and

not submitted for the award of any other degree, diploma, fellowship or any

other similar title or prizes.

PLACE: ( Vishal Kushwaha)

DATE: Reg. NO. 511128724

ACKNOWLEDGEMENT


7/100

I feel it a duty on my part to acknowledge the contribution of the persons.

Who has been Enormously helpful in preparation of this project. No research

endeavor is also exercise. Various Individual, in their own capacities at some

Point or the other contributes in bringing to function the research endeavor.

By acknowledging the guidance, support and assistance I humbly thank

them.

First of all, I express my gratitude for honorable Mr. Manav sharma for his

able guidance at every step of my project work.

I am also thankful to Miss Sarika Upadhyay and other faculty member of

my Institute, who helped me in developing knowledge, which helped me in

completing this project. Last but no least I thankful to my senior and friends

for their help and Co-operation.

PREFACE


8/100

In spite of the theoretical knowledge gained through classroom study, as

person is uncompleted of not subject to practical exposure of real corporate

world and may have to face hurdles, which will be difficult to overcome

without any first hand experience of business.

In this context Research program has been design to make the person aware

of happening of the real business world. The report, entitled A STUDY ON

MERCHANDISE PLANNING IN RETAIL STORE. Has been done by

me at BIG BAZZARoutlets, in Kanpur

This report focus on the Retail Market activities and enlightening the

Problem of Unorganized trading, opportunities in the Retail Market, trends

adopted by the retail market, trend adopted by the retail market, new era of

technologies in Retail Industry operation etc. It is specially design on the

basis Of secondary design on the basis of secondary data as well as Primary

data collected through Questionnaire, Books, Internet, business Magazine

etc. I hope my Research report will be prove fruitful for readers and readers

will find this report useful to boost


9/100

INTRODUCTION TO INDUSTRY

SIZE OF INDIAN RETAIL INDUSTRY

RETAIL HISTORY

RETAIL TNDUSTRY IN INDIA

RETAIL SECTOR GROWTH IN INDIA

CONTRIBUTION OF RETAIL IN INIDIA

CONCLUSION ON RETAIL INDUSTRY

INTRODUCTION TO COMPANY

BIG BAZAAR

MILESTONES

SWOT ANALYSIS

PROJECT OVERVIEW

INTRODUCTION

OBEJECTIVES

MERCHANDISE MANAGEMENT

PROCESESS MERCHANDISE

MERCHANDISING PLANNING IN A RETAIL STORE

STRATEGIC DECISION SUPPORT SYSTEM

METHODOLOGY

PRIMERY DATA

SECONDARY DATA

MERCHANDISE ANALYSIS


10/100

FINDING

CONCLUSION

BIBLOGRAPHY


11/100

Size of Indian retail industry

The size of retail industry in an economy depends on many factors and the

level of consumer spending is the most important among these factors. The

retail sector in India has grown by leaps and bounds in the last five years.

The reason behind this growth has been the synergy of many propellants.

However the growth is not always genuine as there are exaggerations as

well. But these exaggerations also have benefits since they given a feel of

growing competition all around. Secondly the present situation is just a

depiction of nascent stage. The future of the trajectory may not be as steep as

it is now or may be even slope downward. 'What will be the future size of

the retail industry' is the mind boggling question. Another moot point that

will gain importance in due time concerns the future of the unorganized

retail market which constitute a significant proportion of the whole industry.

The retail stores have proved to be a vantage point for the customers. This

implies that the small farmers who used to sell their product in the sabji-

mandis and on roadsides are going to lose a significant market share as they

can't employ the two profit maximizes-economies of scale and economies of

scope.

Retailing in India is one of the pillars of its economy and accounts for 14 to

15 percent of its GDP. The Indian retail market is estimated to be US$ 450

billion and one of the top five retail markets in the world by economic value.India is one of the fastest growing retail market in the world, with 1.2 billion

people.
http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/1000000000_(number)


12/100

India's retailing industry is essentially owner manned small shops. In 2010,

larger format convenience stores and supermarkets accounted for about 4

percent of the industry, and these were present only in large urban centers.

India's retail and logistics industry employs about 40 million Indians (3.3%

of Indian population).

Until 2011, Indian central government denied foreign direct investment

(FDI) in multi-brand retail, forbidding foreign groups from any ownership in

supermarkets, convenience stores or any retail outlets. Even single-brand

retail was limited to 51% ownership and a bureaucratic process.

In November 2011, India's central government announced retail reforms for

both multi-brand stores and single-brand stores. These market reforms paved

the way for retail innovation and competition with multi-brand retailers such

as Walmart, Carrefourand Tesco, as well single brand majors such as IKEA,

Nike, and Apple. The announcement sparked intense activism, both in

opposition and in support of the reforms. In December 2011, under pressure

from the opposition, Indian government placed the retail reforms on hold till

it reaches a consensus.

In January 2012, India approved reforms for single-brand stores welcoming

anyone in the world to innovate in Indian retail market with 100%

ownership, but imposed the requirement that the single brand retailer source

30 percent of its goods from India. Indian government continues the hold onretail reforms for multi-brand stores.

In June 2012, IKEA announced it has applied for permission to invest $1.9

billion in India and set up 25 retail stores. Fitch believes that the 30 percent
http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Apple_Inc.


13/100

requirement is likely to significantly delay if not prevent most single brand

majors from Europe, USA and Japan from opening stores and creating

associated jobs in India.

On 14 September 2012, the government of India announced the opening of

FDI in multi-brand retail, subject to approvals by individual states. This

decision has been welcomed by economists and the markets, however has

caused protests and an upheaval in India's central government's political

coalition structure. On 20 September 2012, the Government of India

formally notified the FDI reforms for single and multi brand retail, thereby

making it effective under Indian law.

Country Retail Sector's share in GDP (in %)

India 10

USA 10

China 8

Brazil 6

Retail history


14/100

India has number of departmental stores. Being the seventh largest country

in the world there are lot of companies like Big Bazaar, Shopper's Stop,

Pantaloon, Ezone, Reliance Fresh and Dmart entering into retail.

Small time department stores - or convenience stores as they are better

known in most western countries - are also upcoming. Although these stores

are much bigger in size than a usual-size convenience store in, lets say the

US, they are much smaller than a regular-sized department store. Examples

include Sabka Bazaar, Big Apple, Marks, Spencers and Dailymart

Ramanujam Sridhar

There is untapped, and bigger, potential beyond the new middle-class in this

country. Big Bazaar has recognized this.

Retail history: Big Bazaar made Rs 125 crore in total in a three-day sale

across its outlets. (Above) A file picture of police trying to control the

crowds at a Big Bazaar sale in Hyderabad last year.

In the Sixties, an extremely humorous Tamil film titled Kathalikka

Neramillai rocked Madras. The film, made by a famous director with the

admirable name of Sridhar, had an interesting dialogue which went

something like this: Nagesh in the movie is a guy who is mad about making

films. His two sisters come for a break and he asks them what Tamil film

they had seen recently. "We don't see Tamil pictures, we see only English

pictures," they chorus proudly. To which Nagesh with his usual aplomb

says, "Let my picture come, then all Englishmen will say that we don't see
http://en.wikipedia.org/wiki/Big_Bazaarhttp://en.wikipedia.org/wiki/Shopper's_Stophttp://en.wikipedia.org/wiki/Reliance_Freshhttp://en.wikipedia.org/wiki/Big_Bazaarhttp://en.wikipedia.org/wiki/Shopper's_Stophttp://en.wikipedia.org/wiki/Reliance_Fresh


15/100

English pictures, we see only Tamil pictures." To which his sisters say,

"Then we will stop seeing films."

More than the humour in the dialogue or the situation, to me it represents a

state of mind that was certainly present then and is perhaps present even

today. And that is a preference for things that are not made within the shores

of this country - be it the language, the food, the clothes and manner of

dressing, the brands and at times the strategy used to sell these brands as

well. Then things changed. India opened up its economy to the rest of the

world and a host of international brands came into the country.

More bit the dust than hit the rooftops - our obsession with `value for money'

and the right price-value equation was the key to success. People wanted

brands but would not pay an arm and a leg to buy them. They would wait for

the annual sale. Brands like Vivek's made the New Year Sales events

customers wait for. Even traditionally dull months like Aadi in Tamil Nadu

were turned into opportunities to sell. Of course, countries such as Malaysia,

Singapore and Dubai had their own version of sales.

Yes, sales are here to stay it seems and brands will continue to milk them

even as they try to ensure that there is no dilution in the brand's value. But

one brand has taken this entire creation of an annual event and in making a

property of it, to the next level. And that is Big Bazaar.

Sabse sasta


16/100

Last year, on January 26, I was in Delhi. And as I went for my early morning

walk braving the cold, I saw something that one does not see often in a

shopping centre. There was a long, winding queue of customers waiting for

Big Bazaar to open. It reminded me of Traumata! The crowds were

unprecedented and at times unmanageable. This year Big Bazaar had

organized it much better. It had a sale for three days. And created retail

history.

Here are a few quick numbers. No less than 60 lakh visitors came to the Big

Bazaars across the length and breadth of this country. The turnover? A

whopping Rs 125 crore. Over one lakh bed sheets were sold. Not to forget

30,000 mobile phones. What staggering numbers!

And yet, it must also be mentioned that every other retail format - Lifestyle,

Globus, Westside - was offering 50 per cent discounts at the same time. It

seems to have had a limited impact on Big Bazaar. Yet, I think it is

worthwhile to go beyond the numbers and look at something equally more

significant.

Sabse achcha

What does the future hold and what must marketers do? At the risk of

repeating myself, I must say that we must move out of our own zones of

comfort. We must continually monitor the consumer and not merely believe

what we want to believe. The media is at best a poor indicator of the changes

that are sweeping the country. We need to get a closer feel for the Indian

consumer.


17/100

Biyani seems to have a great understanding of this emerging superpower.

Take an objective look at costs and ruthlessly shave unwanted cost elements.

Air Deccan's free seating ensures a much quicker turnaround of aircraft. See

if you can create an event that is easily recognizable as yours. An event that

becomes a part of your brand and furthers its success. Yes, India is rising in

expectation and affluence. The uncomfortable question is: "Do we know this

India?"


18/100

Retail industry in india

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 ` 35,000 crore in 2004-05 to `

109,000 crore by the year 2010.

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.

Growth of Indian Retail

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


19/100

retailing industry in India will amount to US$ 21.5 billion by 2010 from the

current size of US$ 7.5 billion.

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

also expected 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, theorganized sector will be 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.

Major Retailers in India

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores

across the country. Headquartered in Mumbai, it has more than 5 million sq.

ft retail space located across the country. It's growing at an enviable pace

and is expected to reach 30 million sq. ft by the year 2010. In 2001,

Pantaloon launched country's first hypermarket Big Bazaar. It has the

following retail segments:

Food & Grocery: Big Bazaar, Food Bazaar


20/100

Home Solutions: Hometown, Furniture Bazaar, Collection-i

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com

Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with its

subsidiary Trent, which operates Westside and Star India Bazaar.

Established in 1998, it also acquired the largest book and music retailer in

India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across

the country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it

came into food & grocery retailing in 1996 with its retail Foodworld stores.

Later it also opened the pharmacy and beauty care outlets Health & Glow.

Reliance


21/100

Reliance is one of the biggest players in Indian retail industry. More than

300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian

retail market. It's expecting its sales to reach ` 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands

like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite

popular. It's also investing in other segments of retail. It will invest ` 8000-

9000 crores by 2010.

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from

a variety of categories.

Mom-and-pop stores: they are family owned business catering to small

sections; they are individually handled retail outlets and have a personal

touch.

Departmental stores: are general retail merchandisers offering quality

products and services.

Convenience stores: are located in residential areas with slightly higher

prices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers

a mix of all types of products and services including entertainment and food

under a single roof.


22/100

E-trailers: are retailers providing online buying and selling of products

and services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages,

snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories.

They are known as category killers as they focus on specific categories, such

as electronics and sporting goods. This is also known as Multi Brand Outlets

or MBO's.

Specialty stores: are retail chains dealing in specific categories and

provide deep assortment. Mumbai's Crossword Book Store and RPG's Music

World are a couple of examples.

Challenges facing Indian retail industry

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options


23/100

Shortage of trained manpower

Low retail management skill

The Future

The retail industry in India is currently growing at a great pace and is

expected to go up to US$ 833 billion by the year 2013. It is further expected

to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the

country has got a high growth rates, the consumer spending has also gone up

and is also expected to go up further in the future. In the last four year, theconsumer spending in India climbed up to 75%. As a result, the India retail

industry is expected to grow further in the future days. By the year 2013, the

organized sector is also expected to grow at a CAGR of 40%.

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.


24/100


25/100

In 2011, food accounted for 70% of Indian retail, but was under-represented

by organized retail. A.T. Kearney estimates India's organized retail had a

31% share in clothing and apparel, while the home supplies retail was

growing between 20% to 30% per year. ]These data correspond to retail

prospects prior to November announcement of the retail reform. The Indian

market offers endless possibilities for investors.]

It might be true that India has the largest number of shops per inhabitant.

However we (locatus) have detailed figures for Belgium, the Netherlands

and Luxemburg. In Belgium, the number of outlets is approximately 8 per

1,000 and in the Netherlands it is 6. So the Indian number must be far

higher.

Retail industry can be classified into two broad categories organized retail

and unorganized retail.

1. Organised retail - Those traders/retailers who are licensed for trading

activities and registered to pay taxes to the government.

2. Unorganised retail It consists of unauthorized small shops -

conventional Kirana shops, general stores, corner shops among

various other small retail outlets - but remain to be the radiating force

of Indian retail industry.
http://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Retailing_in_India#cite_note-29http://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Retailing_in_India#cite_note-29


26/100

Overview

Retail industry, being the fifth largest in the world, is one of the sunrise

sectors with huge growth potential and accounts for 14-15% of the countrys

GDP. Comprising of organized and unorganized sectors, Indian retail

industry is one of the fastest growing industries in India, especially over the

last few years.

According to the Global Retail Development Index 2012, India ranks fifth

among the top 30 emerging markets for retail. The recent announcement by

the Indian government with Foreign Direct Investment (FDI) in retail,especially allowing 100% FDI in single brands and multi-brand FDI has

created positive sentiments in the retail sector.

Emerging Areas

Some sectors that occupy a prominent position with the retail industry are:

Apparel Retail: Everybody understands the impact of fashion and textiles

on the environment. Almost $19.5 billion were spent on online apparel

shopping in the year 2009 and increasing since then.

Fashion & Lifestyle Retail: In India the vast middle class and its almost

untapped retail industry are the key attractive forces for global retail giants

wanting to enter into newer markets, which in turn will help the retail to

grow faster.

Food & Beverage Retail: Backed by huge potential and changing lifestyles,

the food and beverage retail market is growing at a robust 30-35 per cent per

year.


27/100

Pharmaceutical Retail: Driven by therapies like anti-diabetic, vitamin,

anti-infectives and dermatology, it accounted for a robust 15% growth in

2011.

E-commerce or E-tailing the next big revolution: With the advent of e-

commerce in the retail industry, retail stores are facing stiff competition

from e-stores. The rising demand for e-shopping has lead to a new debate

cropping up in the world.

Factors driving growth are:

Emergence of nuclear families

Falling real estate prices

Growing trend of double-income households

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items

Large working population

Low share of organized retailing

Growing liberalization of the FDI policy in the past decade

Skill sets required are:

The industry employs a staggering number of people, and given its rapid

proliferation, this number is always on the rise. The backbone of the sector

are the operations and supply chain management jobs but there are various

other options as well, from sales executives and store managers to

merchandise planners and buyers.

Conceptual understanding


28/100

Analytical skills

Detail-orientation

Fair understanding of customers psychology

Observations skills

Project Management

Operational Skills

In-depth product knowledge

Bottlenecks

A long way to meet international standards Lack of efficient supply-chain management

Lack of required retail space

No fixed consumption pattern

Shortage of trained manpower

Lack of proper infrastructure and distribution channels

Ratings agency Fitch has assigned a stable outlook to the retail sector for

2012 as factors like expected sales, growth-driven expansion and efficient

working capital management are likely to benefit retail companies.


29/100

Indian retail sector to double in 5 years

Yet due to a growth in the retail market,

neighbourhood kirana to remain unimpacted.

Retailers focus more on opening stores rather and

ignore sourcing and supply chain and the

aspirations of each consumer segment.

Due to the rapid growth of the retail sector in India since the 1990s, the

future of the $372 billion retail industry is set to double in just five years

according to management consultancy Technopak.

And yet, Purnendu Kumar of Technopak says, that with retail market

growing at a fast pace, modern retail alone wont be able to cater to the

growing needs of the consumer. Currently, India has more than 12 million

kiranas growing at 5-6% annually. Thus according to the study

Neighbourhood kiranas are not likely to be impacted by the rise of the

modern retail.


30/100

As incomes increase, Indians are likely to spend more. The expenditure on

food and groceries has declined consistently from 40% in 2003 to 36% in

2008. In 2013 this could further decrease to 32%. The expenditure on eating

out, entertainment, and tourism is on the rise, Purnendu Kumar of

Technopak said.

In India modern retail, still considered in its nascent stages, has had

difficulty in working out a format for the consumer. Retailers focused more

on opening stores rather and ignored sourcing and supply chain and the

aspirations of each consumer segment, Kumar added.

Those who focused on the front-end were in trouble as they werent driven

by profitability but by the number of stores they could open.

Many retailers expanded rapidly without the right amount of capital in place.

It takes 2-3 years for one store to break even and 6-7 years for the business

to break even, says Kumar.


31/100

Contribution of Indian Retail Industry

Contribution of Retail:

Contribution of Retail:

What, How and In this report we have analyzed in detail the retail industry

in India. We had initially started with the evolution of the retail sector in

India, then moved onto its size, distribution and the growth of the retail

sector. We have also covered issues like the Foreign Direct Investment in the

retail sector, the untapped opportunities that exist in the retail industry in

India. We have also discussed about the bottlenecks that the retail industry is

facing in India, online retailing in India and the role of Information

Technology in the retail sector in India.

Major Findings

1. The Retail Sector in India can be split up into two, the organised and theunorganized. The organized sector whose size is expected to triple by 2010

can be further split up into departmental stores, supermarkets, shopping

malls etc.

2. In terms of value the size of the retail sector in India is $300 billion. The

organised sector contributes about 4.6% to the total trade.

3. The retail sector in India contributes 10% to the Gross Domestic Product

and 8% to the employment of the country.
http://www.economywatch.com/business-and-economy/conclusion.htmlhttp://www.economywatch.com/business-and-economy/conclusion.html


32/100

4. In terms of growth the FMCG retail sector is the fastest growing unit and

the retail relating to household care, confectionery etc, have lagged behind .

5. The foreign retail giants were initially restricted from making investments

in India. But now FDI of 51% is permitted in India only through single

branded retail outlets. Multi brand outlets are still beyond their reach. Again

they can only enter the market through franchisees,. This was how Wal-Mart

had entered joining hands with Bharati Enterprises.

6. On line retailing is still to leave a mark on the customers due to lacunae

that we have already mentioned.

In this section we have coined down the major findings of our research.

Major Findings

1. The Retail Sector in India can be split up into two, the organised and the

unorganized. The organized sector whose size is expected to triple by 2010


malls etc.

2. In terms of value the size of the retail sector in India is $300 billion. The


3. The retail sector in India contributes 10% to the Gross Domestic Product


4. In terms of growth the FMCG retail sector is the fastest growing unit and

the retail relating to household care, confectionery etc, have lagged behind .

5. The foreign retail giants were initially restricted from making investments

in India. But now FDI of 51% is permitted in India only through single
http://www.economywatch.com/business-and-economy/conclusion.htmlhttp://www.economywatch.com/business-and-economy/conclusion.html


33/100

branded retail outlets. Multi brand outlets are still beyond their reach. Again

they can only enter the market through franchisees,. This was how Wal-Mart

had entered joining hands with Bharati Enterprises.

6. On line retailing is still to leave a mark on the customers due to lacunae


Indian Retail: Past Vs Present

It is widely accepted that the retail industry has undergone a drastic change

in last five years and there is yet more to come. Let us compare the image of

Indian retailing in 2004-05 to that of its status in 2007-08 in the followingtable:

Magnification of the Indian Retail Industry Yardstick Situation in 04-

05 Situation 07-08

Value of retail sales

Rs. 10,20,000 crore

Rs 12,00,000 crore

Annual growth rate

5%

5.7%

Value of organized market


34/100

Rs 35,000 crore

Rs 55,000 crore

Share of organized market in the sector

3.4%

4.6%

Forecasts (after 5 years) about size of organized retail market

Over Rs. 1,00,000 crore

Rs. 2,00,000 crore

Forecasts about growth rate of organized retail market

Around 30%

Around 40%

The above table clearly shows that the retail market as well as the mindset

required for it has experienced a thorough revisal in the last three years. This

is just the beginning and Indians are sanguine that the sector will see rosy

days in the future. This confidence has helped India acquire the No.1

position among 30 most attractive retailing destinations in the world

according to the Global Retail Development Index of 2005 (by AT Kearney,

India). Among emerging markets, India holds the second position after

China in the list of most favored retail destinations.


35/100

The retail industry employs a huge share of the total workforce in India. It is

the second largest employer after India. Presently 7 percent of the total labor

force is employed in the retail sector. According to available data it is also

the largest employer in the services sector and maximum growth in the non-

agricultural sector has been witnessed by retail trade. According to market

analysts 300 new malls, 1,500 supermarkets and 325 departmental stores are

going to come up in India in the next few days. The shopping revolution that

has led to this retail boom is going to continue and this is a good news for

the government as well as those who wish to work in the organized sector.

Contribution of FDI in Retailing

Permitting Foreign Direct Investment in the retailing sector can have

immense benefits. It can generate huge employment for the semi-skilled as

well as illiterate population which otherwise can't be employed in the

already confined rural and organized sector. The retail sector is highly

dependent on the rural sector. Thus it can facilitate the improvement of the

standard of living of farmers by purchasing commodities at a reasonable

cost. It also stems out an indirect employment generation channel by training

and employing people in the transportation and distribution sectors such as

drivers, mechanics etc. It is also evident that real estate is a genuine

challenge for organized retailing. Traditional retailers can use this situation

in their favor by taking franchisees of the mega players of this industry. On

the other hand, the consumer gains from the wide variety of choices and a

more diversified basket of prices available under one roof. Secondly the

indirect benefits like better roads, online marketing, expansion of telecom

sector etc. will give a 'big push' to other sectors including the rural one itself.

Last but not the least the huge tax revenue generated from these retail


36/100

biggies and collected in government coffers will gradually wipe out the ugly

looking fiscal and revenue deficits. Besides the transaction in foreign

currencies by these MNCs will create a balance in exchange rate and will

bring in stable funds in the economy as opposed to FII's hot money. This

will in turn act as a boost to the developing (or 'transforming', as suggested

by the USAID) economy of India.

The phobias relating to FDI in the retail sector are unfounded as neither the

retailing sector in India is an infant industry, nor it can outweigh the

paramount local tastes and preferences.

Let's pray that the retail sector like the IT and manufacturing sector brings

happiness in the eyes of the people and help remove the regional and class-

based disparities.


37/100

Conclusion on retail industry in India

What, how and In this report we have analyzed in detail the retail industry in

India. We had initially started with the evolution of the retail sector in India,

then moved onto its size, distribution and the growth of the retail sector. We

have also covered issues like the Foreign Direct Investment in the retail

sector, the untapped opportunities that exist in the retail industry in India.

We have also discussed about the bottlenecks that the retail industry is

facing in India, online retailing in India and the role of Information

Technology in the retail sector in India.

In this section we have coined down the major findings of our research.

Major Findings

(1). The Retail Sector in India can be split up into two, the organised and the

unorganized. The organized sector whose size is expected to triple by 2010


malls etc.

(2). In terms of value the size of the retail sector in India is $300 billion. The


(3). The retail sector in India contributes 10% to the Gross Domestic Product


(4). In terms of growth the FMCG retail sector is the fastest growing unit

and the retail relating to household care, confectionery etc, have lagged

behind .


38/100

(5). The foreign retail giants were initially restricted from making

investments in India. But now FDI of 51% is permitted in India only through

single branded retail outlets. Multi brand outlets are still beyond their reach.

Again they can only enter the market through franchisees,. This was how

Wal-Mart had entered joining hands with Bharati Enterprises.

(6). On line retailing is still to leave a mark on the customers due to lacunae


In a nutshell we may conclude that the retail industry in India has a very

bright future prospect. It is expected to enrich the Indian Economy in terms

of income and employment generation.


39/100

Type Public

Industry Retailing

Founded 2001

Headquarters Mumbai, Maharashtra, India

Products Department store

Revenue

Rs 6000 crores (in 2011) (Big

Bazaar and Food Bazaar

combined)

Employees ~ 36000 people [1]

Parent Future Group

Divisions ~ 214

Website [http://www.bigbazaar.com

Big Bazaar is a chain ofhypermarket in India. As of June 2, 2012 there are

214 stores across 90 cities and towns in India covering around 16 million

sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars

or Indian markets with clusters offering a wide range of merchandise
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Division_(business)http://www.bigbazaar.com/http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Division_(business)http://www.bigbazaar.com/http://en.wikipedia.org/wiki/Hypermarket


40/100

including fashion and apparels, food products, general merchandise,

furniture, electronics, books, fast food and leisure and entertainment

sections.

Big Bazaar is part of Future Group, which also owns the Central

Hypermarket, Brand Factory, Pantaloons, eZONE, HomeTown,

futurebazaar.com, KB's Fair Price to name a few and is owned through a

wholly owned subsidiary of Pantaloon Retail India Limited (BSE: 523574

523574), that is listed on Indian stock exchanges.

History

Big Bazaar was launched in September, 2001 with the opening of its first

four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within

a span of ten years, there are now 161 Big Bazaar stores in 90 cities and

towns across India. By September 2012 BIG BAZAAR will have two more

stores in North east namely SILCHAR and JORHAT in Assam.

Big Bazaar was started by Kishore Biyani, the Group CEO and Managing

Director ofPantaloon Retail India. Though Big Bazaar was launched purely

as a fashion format including apparel, cosmetics, accessory and general

merchandise, over the years Big Bazaar has included a wide range of

products and service offerings under their retail chain. The current formats

includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.

The inspiration behind this entire retail format was from Saravana Stores, a

local store in T. Nagar, Chennai

The stores are customized to provide the feel of mandis and melas. [ while

offering the modern retail features like Quality, Choice and Convenience. As
http://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/scripsearch/scrips.aspx?myScrip=http://www.bseindia.com/scripsearch/scrips.aspx?myScrip=http://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Saravana_Storeshttp://en.wikipedia.org/wiki/T._Nagarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/scripsearch/scrips.aspx?myScrip=http://www.bseindia.com/scripsearch/scrips.aspx?myScrip=http://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Saravana_Storeshttp://en.wikipedia.org/wiki/T._Nagarhttp://en.wikipedia.org/wiki/Chennai


41/100

the modern Indian family's favorite retail store, Big Bazaar is popularly

known as the "Indian Walmart".

On successful completion of ten years in Indian retail industry, in 2011, Big

Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar,

replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.

Operations

The Big Bazaar Store in Nagpur.

Most Big Bazaar stores are multi-level and are located in stand-alone

buildings in city centers as well as within shopping malls. These stores offer

over 200,000 SKUs in a wide range of categories led primarily by fashion

and food products.

Food Bazaar, a supermarket format was incorporated within Big Bazaar in

2002 and is now present within every Big Bazaar as well as in independent

locations. A typical Big Bazaar is spread across around 50,000 square feet

(4,600 m2) of retail space. While the larger metropolises have Big Bazaar

Family centres measuring between 75,000 square feet (7,000 m2) and

160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns

measure around 30,000 square feet (2,800 m2).
http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/File:Nagpurmallapnabazaar.jpghttp://en.wikipedia.org/wiki/File:Nagpurmallapnabazaar.jpghttp://en.wikipedia.org/wiki/Walmart


42/100

Big Bazaar has the facility to purchase products online through its official

web page, and offers free shipping on some of their products

MILESTONES

It has been a remarkable journey for Future Group as its evolved ram a

manufacturing to


43/100

a completely integrates player controlling the entire value chain.

During its evolution the company achieved various milestone and

demonstrated

Innovativeness and leadership by pioneering concept that has now become

industry

Standards. Some of the major milestone achieved by the company in its life

span of

14 year is enumerated below.

1987: Company incorporates as Manz Wear Private Limited. Launch of

Pantaloon

Trouser,

Indias first formal trouser brand.

1991: Launch of BARE, the Indian jeans brand.

1992: Initial public offer (IPO) was made in the month of May.

1994: The PANTALOON SHOPPE- Exclusive menswear store in franchisee

format

Launcher.

Across the nation. The company starts the distribution of branded garments

through multi-Brand

Retail outlets across the nation.

1995: John Miller Formal shirt brand launched.

1997: Pantaloons Indias family store launched in Kolkata.

2001: Big Bazaar Is se sasta aur accha kahi nahin-Indias first

hypermarket chain

launched.


44/100

Three Big Bazaar stores launched within a span of 22 days in Kolkata,

Bangalore and Hyderabad

2002: Food Bazaar Wholesale prices the supermarket chain is launched.

Big Bazaar - ICICI Bank Card is launched.

Food Bazaar becomes part of Big Bazaar with the launch of the first

store in Mumbai at High Street Phoe

2003

Big Bazaar enters Tier II cities with the launch of the store in Nagpur

Big Bazaar welcomes its 10 million-th customer at its new store in

Gurgaon

2004: Central Shop Eat Celebrate in the heart of our city-Indias first

seamless mall is

launched in Bangalore.

Big Bazaar wins its first award and national recognition. Big Bazaar

and Food Bazaar awarded the countrys most admired retailer award

in value retailing and food retailing segment at the India Retail Forum

A day before Diwali, the store at Lower Parel becomes the first to

touch Rs 10 million turnover on a single day

2005: Fashion Station Fashion Ka Big Bazaar-the popular fashion chain

is launched.

Initiates the implementation of SAP and pilots a RFID project at its

central warehouse in Tarapur

Launches a unique shopping program: the Big Bazaar Exchange

Offer, inviting customers to exchange household junk at Big Bazaar

Electronic Bazaar and Furniture Bazaar are launched


45/100

Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold

credit card program to reward its loyal customers.

2006 Future Capital Holding, the companys financial arm launched real

estate fund

Kshitij and Horizon and private equity fund Indivision.

Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs

1,37,367 shopping bill. The Sangli farmer becomes Big Bazaars

largest ever customer.

Big Bazaar launches Shakti, Indias first credit card program tailored

for housewives

Navaras the jewellery store launched within Big Bazaar stores

2007

The 50th Big Bazaar store is launched in Kanpur

Big Bazaar partners with Futurebazaar.com to launch India's most

popular shopping portal

Big Bazaar initiates the "Power of One" campaign to help raise funds

for the Save The Children India Fund

Pantaloon Retail wins the International Retailer of the Year at US-

based National Retail Federation convention in New York and

Emerging Retailer of the Year award at the World Retail Congress

held in Barcelona.

2008

Big Bazaar becomes the fastest growing hypermarket format in the

world with the launch of its 101st store within 7 years of launch
http://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bank


46/100

Big Bazaar dons a new look with a fresh new section, Fashion@Big

Bazaar

Big Bazaar joins the league of Indias Business Super brands. It is

voted among the top ten service brands in the country in the latest

Pitch-IMRB international survey

Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar"

campaign, to provide exceptional deals on groceries and food items

during the first week of every month.

2009

Big Bazaar opens its second store in Assam at Tinsukia

Big Bazaar initiates Maha Annasantarpane program at its stores in

South India a unique initiative to offer meals to visitors and support

local social organizations

Big Bazaar captures almost one-third share in food and grocery

products sold through modern retail in India

Mahendra Singh Dhoni and Asin, youth icons of India, were chosen

as the brand ambassadors of Big Bazaar

Big Bazaar announced the launch of 'The Great Exchange Offer'

Formed a joint venture with Hidesign to launch Holii, a new brand of

handbags, laptop bags and other accessories.

2010

Future Value Retail Limited is formed as a specialized subsidiary to

spearhead the groups value retail business through Big Bazaar, Food

Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the third

consecutive year. Adjudged the Most Preferred Multi Brand Food &
http://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Tinsukiahttp://en.wikipedia.org/wiki/Mahendra_Singh_Dhonihttp://en.wikipedia.org/wiki/Asinhttp://en.wikipedia.org/wiki/Hidesignhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Tinsukiahttp://en.wikipedia.org/wiki/Mahendra_Singh_Dhonihttp://en.wikipedia.org/wiki/Asinhttp://en.wikipedia.org/wiki/Hidesign


47/100

Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most

Preferred Multi Brand One Stop Shop

Big Bazaar connects over 30,000 small and medium Indian

manufacturers and entrepreneurs with around 200 million customers

visiting its stores

Big Bazaar opens its third store in Kanpurat Z Square Mall

Big Bazaar opens its fourth store in Kanpur at Jajmau which is the

largest leather tannery garrison of Asia

Vidya Balan was chosen as the brand ambassador of Big Bazaar's

Price Challenge exercise

Ranked 6 among the Top 50 Service Brands in India.[10]

2011

Big Bazaar forays into the rural wholesale and distribution business

through Aadhaar Wholesale store at Kalol, Gujarat.

Big Bazaar has come up a new logo with a new tag line: Naye India

Ka Bazaar.[11]

200th store opened in India [12]

Future Group has launched its latest venture, Foodhall a premium

food destination across 10 metros in India [13]

For the convenience of the online customers, Big Bazaar has started

free shipping on all orders above Rs. 1000 [14]

Entered into an agreement with Hindustan Unileverto co-develop and

co-brand bakery products, which would be sold exclusively at Big

Bazaar stores.[15]

2012
http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/w/index.php?title=Z_Square_Mall&action=edit&redlink=1http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Vidya_Balanhttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-10http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-11http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-12http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-13http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-14http://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-15http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/w/index.php?title=Z_Square_Mall&action=edit&redlink=1http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Vidya_Balanhttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-10http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-11http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-12http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-13http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-14http://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-15


48/100

Big Bazaar entered into a five year multi-million dollar deal with

Cognizant Technology Solutions for IT infrastructure services that

support Future Group's network of stores, warehouses, offices, and

data centers.[16]

Partnered with Disney to launch "Kidz Cookies", exclusively for kids

across India.[17]

Big Bazaar is planning to add further value to its retail services by

offering Value added services like grinding, de-seeding, vegetables

cutting at free of cost

Big Bazaar

Parent Company Future Group

Category Retail

Sector Lifestyle and retail

Tagline/ Slogan Is se sasta aur accha kahi nahi!
http://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-16http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-17http://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-16http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-17


49/100

USP Affordable lifestyle

STP

Segment Price sensitive group

Target Group Upper middle class and lower middle class

Positioning Family favourite retail store

SWOT Analysis

Strength

1. Affordability for middle class2. Quality,choice and convenience3. Wide range of products and service offerings4. Strong presence in local market

5. Attractive promotional offers

6. Large no. SKU provided to consumer

7. Good branding and advertising by also roping in celebrity brand

ambassadors

Weakness

1. Not known globally and restricted to the Indian market only2.No different game plan according to divergent people, theirlifestyles, their tastes and budgets in India

Opportunity

1. To expand globally by tie-ups2. Entering into high premium segment3.Opportunity to expand into financial services catering to hugesegment

4. Increased rural penetration

Threats

1.Competitors global presence2. Future bazaar under debt can cause financial problems3.Low priced brand perceived to be of low quality in Indianconsumer minds


50/100

Competition

Competitors

1. Reliance retail2. Lifestyle Retail

3.Aditya Birla More

4. Shoppers stops

Foreign investment will play a bigger role in retailing

The opening of the retail sector to foreign direct investment (FDI) a policy change that

would alter radically the face of the Indian economy - is happening slowly. Since

February 2005 the government has taken several liberalizing step, but it continues to

disallow FDI by retailers of multiple brand, keeping out the big hypermarket groups and

discounters .this is a carefully crafted decision designed to cause minimum political

damage domestically, while showing foreign investors that liberalization remains on

track. Foreign firms will continue to lobby for liberalization and have cited the restriction

on FDI as a factor limiting future growth .Their options should multiply as food imports

are liberalized and import duties come down. The government will also need to reform

real-estate laws are restructure tax regimes further if it is to attract international retailers.


51/100

Developing and implementing a merchandise plan is a key in a retail

strategy. to succeed, a firm must have the proper assortment of good and

services when they are in demand and sell them in a manner consistent with

its overall strategy . Merchandising consists of the activates involved inacquiring particular good and/ or services and making them available at

place, time, and prices and in the quantity that enable a retailer to reach its

goals.

For virtually, merchandising decision dramatically affect performance: why

Do investment in merchandise skills and talent often produce better returns

then investment in technology or other skill specialties? In retailing

organization, merchandisers in a critical role because they are responsible

for bringing to market the products that will excite and please target

consumers. Rarely is there a situation, as with retail merchandising, where

so few individuals drive so many decisions and outcomes. A small fraction

of the employ population control as much as 70 to 80% of a firms density.

Retailed may be called on to place multi million$ bet at time, even 100

million or billion$ wagers


52/100

The merchandise philosophy is a reflection of the retailers target market,

which is nothing but the customer segment that he wishes to cater to.

Keeping this target market in mind, the retailer has to evolve a strategy for

store location, pricing and the product assortment that he is going to offer to

the customer.

The field of merchandising has evolved over the years, in lines with the

changes occurring in retail. The enlightened and knowledgeable consumer

seeks product that suit his requirements, and is most often, willing to pay the

required price. Products have also evolved to suit the lifestyles of the

customer.

The success of any retail operation in largely based on the retailers ability to

provide the right goods to the consumer at the right place and at the right

time. It is for this reason that the function of merchandising plays a key role

in retail management.

When you study merchandising in the technical or overall context of retail

management, you learn about assortment planning and many other aspects ofmerchandising activity that go into planning and implementing merchandise-

based decisions.


53/100

. Recognize the key differences between merchandise as products, and

merchandise as a visual appeal aspect of retail execution.

. Describe merchandise as an activity.

. Explain visual appeal and packaging concepts.

. Explain what market presence means.

. Elaborate on the key aspects of market presence in modern retail.

. Explain the six features of in-store merchandising.

. Bring out the importance of store atmospherics.

. Mention the components of store exterior atmospherics.

. Describe store interior atmospherics and its components.

. List out the various elements of in-store mood builders.

. Describe merchandise planning elements.

. Explain how merchandise strategy is development.

. Explain the concept of category Management.

. Describe the overall approach to merchandise planning in retail.

. Explain the merchandise planning execution process.

. Describe the role of merchandise and buyer.

. Explain how merchandise performance is measured.


54/100

A situation where the flow of data between activities is

not accompanied by the flow of control. A Connector

drawn with a dotted line with a Phi between activities

represents Data Flow Only. A Phi is required for Data

FloProcess: Merchandise management

Flow.

Objective


55/100

Create, load, and manage the set of products for businesses to operate

online stores.

Description

Businesses need to manage a catalog over its life cycle and consider

the following elements:

Catalog design

Design the catalog structure or taxonomy for which to describe

and enter products in the catalog.

Catalog load

Load the product information, either manually or using

automation, into the catalog based on the defined taxonomy.

Merchandising

Add merchandising constructs such as associations, kits, guided

sales techniques, and sales catalogs, to promote the sale of

products to the customer.

Catalog maintenance

Product management will continue to evolve the catalog. New

products are introduced, old, obsolete products are discontinued,

product information is often revised, and prices from suppliers

may change frequently. Catalog maintenance may involve the

first three steps as product additions and deletions may cause

the catalog to be redesigned and loaded again.

Catalog syndication

Businesses may publish the catalog or a subset of the catalog

externally to third parties or onto other media.

Online sales catalog


56/100

The catalog containing product content and business logic to

display products and categories to customers. This includes

associating display pages and assigning prices to the products.


57/100


58/100


59/100

Replacement: A relationship between a products meant to

replace an existing product. A new product will replace one

that is being discontinued.

Shopping metaphors to provide assistance to customers

in selecting their products from the catalog. Web Sphere

Commerce supports three different paradigms

Product Exploration: A parametric search within a category

where possible ranges of values for attributes of SKUs are

selected by the customer in order to reduce the list of

products to display.

Product Comparison: A view of multiple selected SKUs in a

form such that the values of each attribute are displayed for

comparison.

Sales Assistant: A guided sell approach in which a list of SKUs

are returned based on the customers answers to a set of

presented questions.

Features

Nested shopping metaphors in which a Sales Assistant or Product

Exploration can be displayed with the Product Comparison

metaphor.

Sequencing merchandising associations between source andtarget products or categories.

Specify associations with quantities of the target.

Customization


60/100

Extendible merchandising associations for other type of

associations, such as Down-sell, Alternative, Substitute. A new

type can be introduced to the database and data beans.


61/100

Accepted order list

A list of orders that have been submitted and have payment

information created. They may or may not have a payment

authorization at this point.

Active auto bid

The auto bid (automatic bid) is active and will create bid for an

Open Cry auction on behalf of customer.

Active bid

The bid is active.

Active contract

An active contract is one that was deployed successfully and

purchases can be made against the contract. If the expiry date

for a contract has passed, the contract still remains in the active

state until it is canceled. Contracts enable a customer

organization to purchase products from a store or a group of

stores at a specified price for a specified period of time under

specific conditions. Web Sphere Commerce provides the ability

to record and deploy contracts that have been negotiated.

A contract consists of the following elements:

Profile

The contract profile contains the identifying information for the


62/100

contract. This information includes a unique name for the

contract, a short description, and a time period during which the

contract is valid.

Participants

Contract participants are the organizations or member groups

that are entitled to the contract. There is a Buyer participant, a

Seller participant and

contacts for each participant organization.

Terms and conditions

Contract terms and conditions are the rules that cover the actual

implementation of the contract. Contract terms and conditions

cover such information as product pricing, returns and refunds,

payment, shipping, and order approval.

Attachments

Contract attachments cover any information not covered by the

previous elements such as file attachments that provide

additional information about the contract and any general

remarks about the contract. Web Sphere Commerce stores

Universal Resource Identifiers (Uris) for contract attachments,

not the actual attachments.

All contracts are associated with business accounts.

Active RFQ request

The RFQ request has been submitted and the seller can respond

to it.

Active RFQ response


63/100

The RFQ response has been submitted, approved if appropriate,

and is available for evaluation by the buyer. If approvals have

been enabled, the response goes to the approver rather than

directly to the buyer. If the approver approves the response, it is

submitted to the buying organization.

Ad copy

An ad copy represents a set of marketing data to be shown to

customers in an e-mail or in the Web site through an activity.

The data may include the following: image, flash, URL link (click

action), and marketing text (may include HTML tags).

Address book

An address book is a set of addresses of the customer. The

addresses can be used for billing and shipping.

Adjustment code

The adjustment code to be recorded as the reason for the

inventory adjustment. Note: This is not used or required.

Allocated line item(s)

Order line items that have been allocated from existing (in-

stock) inventory.

Allocated order

An order with all its order line items allocated from existing (in-

stock) inventory.


64/100

Answer

Solution to customer's request in plain text format.

Approval pending RFQ response

Approvals have been enabled and an approver is reviewing the

RFQ response.

Approval required notification

A notification by e-mail or some other means to a Sales Manager

that a contract has been submitted for approval and needs to bereviewed.

Approved Buyer

An approved merchant can logon and access the store. See

'Users' and 'User Registration Approvals' in the online help for

more details.

Approved buyer admin

An approved seller can logon and use the supplier store. See


more details.

Approved Buyer Administrator


65/100



more details.

Approved contract

If the designated approvers for the contract decides a contract is

complete and acceptable, they can move the contract into the

approved state. Web Sphere Commerce will automatically

attempt to deploy an approved contract.

Approved Customer

An approved user can logon and shop at the store. See 'Users'

and 'User Registration Approvals' in the online help for more

details.

Approved merchant



more details.

Approved order

An order that has been approved by the Buyer Approver.

Approved organization



more details.


66/100

Approved payment

A payment that has been approved, which can also be called

"authorized."

Approved registration notification

A notification is sent to the customer when their notification has

been approved. See 'User Registration Approvals' in the online

help for more details.

Approved reseller



more details.

Approved Seller

An approved seller can logon and use the supplier store. See


more details.

Approved supplier

An approved supplier can logon and access the supplier hub. See


more details.

Approved user

A user who has been approved to use the store.

Approved User Registration Notification


67/100

An email received by a user indicating that they have been

approved to use the store.

Auction discussion message

Discussion message about the auction. Discussion messages are

posted to a discussion forum. The forum enables auction

administrators to view and respond to messages from

customers. Auction discussion messages can

provide information such as the following: product details,

auction rule details, announcements of future auctions.

Auction started notification

Informs customers who have included this auction in their

gallery that the auction has started.

Auction style template

Auction styles are templates that automatically complete fields

for you. For example, perhaps you schedule Open Cry auctions

and always use non-discriminative pricing. An auction style can

complete the appropriate fields for the auction type and pricing

mechanism, saving you the trouble of selecting these fields for

each auction.

Authorization

A single payment authorization.


68/100

Authorization amount

An amount of a payment authorization.

Backordered order

An order that has at least one order line that is backordered.

Backordered order list

A list orders that are backordered.

Batch

A payment batch is a grouping of captured payments and issued

credits that will be treates as an entity and settled via a back-

end system or payment processor.

Batch availability request

XML document that contains a request for inventory availability

updates. The request consists of list of line items defined as

follows:

private String currency = null;

-- line number

-- global product identifier

-- distributor product identifier;

-- unit of measure

The request also contains:

-- message identifier

-- additional information allowed indicator

-- user credentials

-- quotation store identifier


69/100

-- quotation contract identifier

-- quotation type

-- display sequence

Batch availability response

The inventory availability response contains the following data:

-- fulfillment center identifier (fulfillment location)

-- A list of specified items. For each specified item find out the

following:

--- The member identifier and part number of the specified item

--- The external Outmode for quantity (optional)

--- Quantity available

--- Restock date (optional)

Batch expected availability request

The inventory availability response contains the following data:

-- fulfillment center identifier (fulfillment location)

-- A list of specified items. For each specified item find out the

following:

--- The member identifier and part number of the specified item

--- The external Outmode for quantity (optional)

--- Quantity available

--- Restock date (optional)

Bid control rule


70/100

Bid rules determine how bidding is allowed to proceed for Open

Cry and Sealed Bid auctions. Bid rules describe the minimum bid

price, quantity, and bid increment.

Bid override notification

Informs a customer that a higher bid has been placed.

Bidding closed auction

The auction is closed and no more bids are accepted.

Business account

Business accounts represent the relationship between a store

and the store's customer organizations and are the starting point

for managing business relationships. Using business accounts,

you can track contracts and orders for customer organizations

and configure how Buyers from customer organizations shop in a

store. A business account contains the following information

about a customer organization:

-- The name of the customer organization and a contact person

within that organization.

-- The department and name of the Account Representative from

the store

assigned to the customer organization.

-- Information about purchase orders a customer organization

has with a store.

-- Information on how invoices are delivered to the customer

organization.


71/100

-- Whether or not the customer organization has a credit line.

-- Any display customization information for the business

customer. Store pages can be customized for a business account

by specifying a piece of HTML code that can be used by a store's

JSP files.

-- Any general remarks about the business account.

Also, business accounts control customer entitlement by

controlling the ability of Buyers from customer organizations to

access a store's master catalog and see standard pricing for

products contained in the master catalog. If a customer

organization is not entitled to purchase products in the store's

master catalog at standard prices, they are limited to products

and prices covered by contracts the customer organization has

with a store.

Business account analysis data

A report containing information about a business account

including number of orders, products purchased, and so on.

Buyer organization

Buyer Organization. See 'Buyer' and 'Organization' in the online

help for more details.

Buyer purchase orders

Web Sphere Commerce provides the ability for you to track and

authorize customer purchase order numbers. If a business

account includes any purchase order terms and conditions and a

contract specifies the use of that account, all purchases under

the contract must specify a purchase order number defined with


72/100

the account. A single purchase order number can then be used

for payment authorization. Purchase order numbers are specified

when the customer places an order. Purchase order numbers can

be specified for three different types of purchase orders:

-- Blanket purchase orders

Used for an unlimited number of orders. Blanket purchase order

numbers that will be accepted when placing an order must be

specified in the business account before Buyers attempt to

specify a blanket purchase order number.

-- Limited purchase orders

Used for orders where the total amount of all orders made

specifying the limited purchase order number does not exceed a

spending limit. The spending limit for a limited purchase order is

recorded and used to validate orders that specify a limited

purchase order number to ensure the spending limit is not

exceeded. Limited purchase order numbers that will be accepted

when placing an order must be specified in the business account

before Buyers attempt to specify a limited purchase order

number.

-- Individual purchase orders

Used for one order and acceptable purchase order numbers are

not predefined. You can specify that customer under an account

must use a unique purchase order number for each order placed

on behalf of a business account. If you do not require a unique

purchase order number for each order for the account, then

those customers may reuse purchase order numbers.


73/100

Blanket and limited purchase orders are also known as

predefined purchase orders because purchase order numbers for

these types of purchase order must be defined in the business

account before Buyers can use the purchase order numbers

when making a purchase. Purchase order numbers can be

tracked and authorized for any payment method supported by

Web Sphere Commerce, including credit line.

Canceled contract

A contract which is no longer required is moved into canceled

state. A contract may be canceled because it has been rejected

and it has been decided not to continue working on that

contract. A canceled contract is a contract that is no longer in

use, but is left in the database for reference.

Canceled order

An order that was canceled as a result of being rejected by the

Buyer Approver.

Canceled payment

A payment that has been canceled. This is a terminal state.

Cancelled RFQ response

The seller has decided not to send this RFQ response to the

buyer.

Cancelled scheduled order


74/100

An order that was previously scheduled, but that has now been

cancelled.

Catalog

The sales catalog allows the customers to browse for products.

Formerly known as a navigational catalog, it is a hierarchical

map of categories with products, SKUs and kits. A store may

have multiple sales catalogs and each is organized for display to

the customers, usually for merchandising purposes. The sales

catalog may have products assigned to multiple categories and a

category may have more than one parent to form a map rather

than a tree.

Catalog in XML

A Master Catalog or Sales Catalog, in whole or in part, defined in

an XML format specified by the Product Manager or

merchandising manager.

Catalog Item

An item that is in the catalog. In the context of returns, it is an

ad-hoc item, i.e. one that is returned without reference to a

previously placed order.

Classification

The Product Manager or Category Manager must understand the

products they will be selling and plan how they will be organized.

Their decision on the classification used to organize products


75/100

within a hierarchical tree of categories is usually based on one or

a combination of the following:

-- Product classification (industry standard or custom

classification): products are strictly organized based on what

they are and by the attributes they possess.

-- Supplier provided classification: as some businesses may have

a limited number of suppliers, managing products based on the

categorization provided by their supplier can be more efficient

than mapping the categorization to another classification

scheme.

-- Business policy classification: some businesses may manage

their catalog based on their own business policies (such as brand

names, manufacturers, or business rules) and will organize their

catalog to reflect their business policies.

Cleansed product data

Product information that has undergone cleansing, normalization

and rationalization such that products are described consistently.

Clickstream analysis reports

A set of business intelligence reports focusing on clickstream

analysis from Tivoli Web Site Analyzer data.

Closed batch

A payment batch that has been settled.

Closed contract


76/100

When a revised version of a contract is deployed, then the

current active version of the contract is moved into closed state.

The contract remains in the

system for reporting and to fulfill orders in progress. An active,

suspended, or approved contract goes to the closed state

automatically when a new version of the contract has been

approved. Creating a new version of a contract creates a copy of

the contract and places the copy of the contract in the draft

state.

Closed return request

A return request that has been closed.

Closed RFQ request

The RFQ is closed and no more responses are being accepted by

the RFQ owner.

Closed store

A closed store is one that is unavailable to customers to enter,

browse the catalog, and purchase products. The store owner can

update the store data using the Web Sphere Commerce

Accelerator, and may enter the store to test the modifications.When the modifications are complete, the store owner can open

the store to make the store available to customers.

Closed stores report


77/100

A report about stores that have been in the closed state for a

certain period of time.

Completed order

An order that has its payment captured. The order has now been

fulfilled and the money captured. The financial transfer at the

financial institution may not yet have happened. .

Order pick history

A history of items that have been picked.

Order releases

Releases associated with an order; a release is defined as a

group of one or more items that will ship together

Order requiring approval

An order that requires approval from the Buyer Approver.

Order ship history

A history of items that have been released to fulfillment.

Order status

The parameters l

vishal kushwaha project mba 2012

Documents