dA

Summer Training Project

On

Titled

“Development of retail industry in india with special reference to city mall kota”

Training Undertaken At

Pandya Group (City Mall)

Submitted in partial fulfillment for theAward of degree of

Master of Business Administration

Submitted By: - Submitted To:-

PankajTrivedi ShwetaSolanki Ma’am

MBA IIIsem Project Guide

Year 2013– 2014

Modi Institute of Management & Technology, kota

1

PREFACE

Changing lifestyles are prompting changes in the retail environment. Paucity of time

and an increase in disposable incomes have created a need for new types of retail

formats. This means that retailers will have to become better at knowing their

customers and predicting their needs and wants. As the socio-economic structure in

India changed so did the field of retailing. A once unorganized sector became

transformed into an organized sector in the last decade of the 20 th century as

companies, both old and new, entered the arena.

High volume malls. Shopping outlets, supermarkets and hypermarkets

mushroomed, requiring the application of modern management techniques to run

them efficiently and effectively. Retail success in today’s competitive environment is

all about getting the right product to the right place at the right time, at the lowest

cost possible. This requires retail managers to be adept at planning, merchandising,

pricing and promotion. A retail manager needs to know,Which not only does justice

to the stipulated curriculum at the entry level but also fulfills the need of Retail

Management.

In the course of making this report I have received much encouragement from

my guide and seniors. I gratefully acknowledge the significant contribution to

ShwetaSolanki Ma’am for editing majority of this report.

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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Ms.ShwetaSolanki Ma’am,

Designation Project Guide, Deptt.Management., for guiding me right form the

inception till the successful completion of the project. I sincerely acknowledge

him/her/them for extending their valuable guidance, support for literature, critical

reviews of project and the report and above all the moral support he/she/they had

provided to me with all stages of this project.

I would also like to thank the supporting staffmanagement Department, for their help

and cooperation throughout our project.

(Signature of Student)

Name of the Students

PankajTrivedi

3

Executive Summary

The Indian retail industry is now beginning to evolve in the line with the

transformation that has swept other large economies. It witnesses tremendous

growth with the changing demographics and an improvement in the quality of life of

urban people. The growing affluence of India’s consuming class, the emergence of

the new breed of entrepreneurs and a flood of imported products in the food and

grocery space, has driven the current retail boom in the domestic market.

4

CONTENTS

INTRODUCTION TO THE INDUSTRY

INTRODUCTION TO COMPANY

VISION AND MISSION

PROJECT PROFILE

Title of the Study

Duration of the Project

Objective of Study

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“RETAIL MARKETING”

INTRODUCTION

The word Retail is derived from the French Work. Retail meaning “to Cut a piece

off” or “to break bulk” A retailer is a person, agent, agency, company, or an

organization which is instrumental in reaching the goods, merchandise, or services

to the ultimate consumer. Retailers perform specific activities such as anticipating

customer’s wants, developing assortments of products, acquiring market information,

and financing. A common assumption is that retailing involves only the sale of

products in stores. However, it also includes the sale of services like those offered at

a restaurant, parlor, or by car rental agencies.

Retailing includes all the activities involved in selling goods or services directly

to the final consumer for personal or non-business use.

In other words, retailing is the sale of goods and services to the ultimate

consumer for personal, family or household use. Thus, retailing involves more than

selling tangible products. It includes every sale of goods and services to the final

consumer.

Retailing involves:

Identifying target markets (customers)

Interpreting needs of the targeted customers

Developing good assortments of merchandise

Presenting them in an effective manner so that consumers find it easy

and attractive to buy.

Retailing differs from marketing in the sense that it refers to only those activities,

which are related to marketing goods and/or services to final consumers for

personal, family or household use. Whereas marketing, according to American

Marketing Associations, refers to “the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods and services to create

exchanges that satisfy individual and organizational objectives.”

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Thus, any organization selling a product or service to final consumers whether a

manufacturer, wholesaler or a retailer, is doing retailing. It does not matter how the

goods or services are sold, i.e., by person, mail, telephone, vending machine, TV, or

internet. Also, it does not matter where the goods and services are sold, i.e., in a

store, on the street, or in the consumer’s home, or in the virtual world (internet).

Retailing is one of the most important industries in any country employing major

share of workforce. Selling whether in a store or at the doorstep requires many

people. In other words, retailing is labor intensive. Probably many more people are

needed to sell most products than to manufacture them. While automation has been

widely adopted in manufacturing, retailing has yet to see its presence on a large

scale. Some retailers have introduced self-service. Some other have stepped into

mail order. But in India, these methods are not commonplace. Only a few retailers

have brought such changes. Most other stick to counter sales or personal attention.

PLACE OF RETAILING IN A DISTRUBITION CHANNEL

When we buy a product, we rarely buy it directly from the manufacturer. Most

producers of goods and services do not sell their product directly to end or final

users. Between customers and the manufacturers are number of intermediaries.

CHARACTERISTICS OF RETAILING

7

Manufactur

WholesalerWholesaler

Natl. Stockiest Natl. Stockiest Natl. Stockiest

Local StockiestLocal StockiestLocal Stockiest Local Stockiest

RetailersRetailersRetailersRetailersRetailers

Customers Customers Customers Customers Customers Customers Customers Customers Customers

Retailing can be distinguished in various ways from other businesses such as

manufacturing. Retailing differs from manufacturing in the following ways:

There is direct end-user interaction in retailing.

In is the only point in the value chain to provide a platform for promotions.

Sales at the retail level are generally in smaller unit sizes.

Location is a critical factor in retail business.

In most retail businesses services are as important as core products.

There are a larger number of retail units compared to other members of the

value chain. This occurs primarily to meet the requirements of

geographical coverage and population density.

IMPORTANCE OF RETAILING IN THE ECONOMY

The retail sector is particularly important because retailing is the final link in the chain

of production which begins at the extractive stages, moves through the

manufacturing processes and ends by the distribution of goods and services to the

final consumer.

Retailing accounts for about 15-20% of the organized workforce in any

developed economy. It is the second largest employer in the India after agriculture.

There are about 6 million retail establishment in India. Of which, 4.1 million (70%)

sell food products, and related items. An interesting research in this areas has

shown that grocery stores (56% of all retail outlets) and general stores (13%)

dominate rural India. There are 1.8 million retail outlets in urban India. Of which more

than 50% earn between Rs. 7,500.00 to Rs. 25,000.00 daily. Approximately 6.6% of

urban adults in India are shop owners. There are about 21% outlets in urban area

engaged in service retailing. Though no official data is available, the given above

figure indicate that this sector may be employing about 15-20% of the organized

work force, which is in line with global averages. Retailing accounts for an

impressive part of Gross Domestic Product (GDP). The year 1997-1999 has been a

slow down in economic growth in the GDP growth rate pegged at 4 to 5 %. Total

retail sales in India reached Rs. 5793 billion in 1996 representing around 53% of

GDP and 69% of consumers expenditure. Retail sales per capita was Rs. 6297 in

1996.

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In US the sales of retail sector is about US$2 trillion. In India, if private final

expenditure is taken as an indicator, the total retail trade in India could be about Rs.

7,00,000-Rs. 8,00,000-crores or US$ 160-180 billion (excluding fuels).Retailing is

also important, as it is an important tax collection point for the government.

FUNCTIONS OF RETAILERS

Retailers have multiple functions. At one end they create market for consumption of

the goods and services and on the other hand generate employment for millions of

people. Broadly speaking retailers perform following functions:

Understanding customer needs and wants

Providing an assortment of product or services to consumers

Breaking bulk

Providing services to consumers

Holding inventory, and

Providing information to suppliers.

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Functions of Retailers

UNDERSTANDING CUSTOMER’S NEEDS AND WANTS

10

FUNCTIONS OF

RETAILERS

Understanding customer needs

and wants

Providing services to consumers

Providing information to

suppliers

Breaking bulk

The first and foremost function of a retailer is to understand its customers; their

needs and wants. It is only then other functions of retailer can be performed in a

manner satisfactory to the customer such as providing an assortment of products,

providing services etc, once the retailer understand what products and services are

desired by customers, other things follow.

BREAKING BULK

Manufacturers normally send their products in bulk to retailers to minimize

transportation cost. The retailers offer the product in smaller quantities to suit

individual consumer’s requirements. Breaking large shipments into smaller quantities

is called breaking bulk. Now the trend towards organized retailing is developing as a

result retail chains are established in an identified geographical location. These chain

stores purchase and distribute their products in such a manner that there is a

minimum loss of time and money in transportation of products to various stores.

They in turn provide the profits to the customers in a way by lowered minimum retail

price.

PROVIDING SERVICES

Retailers offer number of services to the consumers. Retail outlets may provide

some or all of these services to consumers. These services could be:

Providing credit and hire-purchase facilities (Example:- Many automobile and

consumer durable retail outlets provide this facility)

Providing facilities like home delivery. (Example:- Many super markets provide

this facility)

Providing product guarantees, after-sales service and dealing with customer

complaints (Example:- Automobile dealers)

Providing information and answering customers queries. (Example:- Sales

people of retail outlet)

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HOLDING INVENTORY

A major function of retailers is to keep inventory, so that customers can buy the

products when they want. So as customers, we do not have to keep a large

inventory at home, knowing fully well that the product will be available at a relatively

stable price from retailers when we want them. Thus the customers money is not

blocked up in a large inventory and can be put to some other use or in bank earning

interest.

PROVIDING INFORMATION TO SUPPLIERS

As the retailer who is the final interface to consumer, it has the benefit of direct

consumer’s reaction. So many manufactures collect customer’s response to their

products and services from retailers.

PROVIDING AN ASSORTMENT OF PRODUCTOR SERVICES TO CONSUMERS

Retail outlets keep large variety of products and services. Around 15000 different

items produced by different companies in a typical super market. Even a small kirana

store has number of brands of soaps, toothpastes and other goods. Provision of

such large number of assortment enables consumers to choose a product based on

his/her requirements. In other words, providing assortment of products or services

provides choice to consumers. While manufacturers specialize in producing special

types of products, retailers provide assortment of products from different

manufactures.

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INTRODUCTION TO COMPANY

Pandya group the proficient pioneers of the grand Kota City Mall project have

diversified business establishments dealing with Petrol pumps, Vehicle finance,

Hostels and Real Estate. The group has its roots dating back to 1860 and has since

then achieved numerous milestones. The ventures undertaken by the group have

success stories which are a reflection of its farsightedness, profound business

acumen and commitment.

Today the group is growing from strength to strength under the dynamic leadership

of father son duo, Mr. Devendra Kumar Pandya and Mr. VirendraPandya. Being a

trendsetter, the Pandya Group is once again all set to create a landmark for the Kota

City with their latest venture KOTA CITY MALL.

PandyaGroup, stands for quality construction and honoring commitments to the

highest of ethics and standards. We envision satisfaction beyond comparison to our

customers and in building relations.

The innovative approach of the Group has given new dimensions to the real estate

market of Rajasthan. It has brought to the customer quality and comfort at affordable

prices.

A trusted name in the business of constructions and developing the nation through

its world class structures. The Pandya Group has a unique business model with

earnings arising from development and rentals. Its exposure across businesses,

segments and geographies, mitigates any down-cycles in the market. Pandya Group

has also forayed into infrastructure, SEZ and hostel businesses.

Pandya Group is now geared up to bring a paradigm shift in lifestyles of the

Rajasthanies through their world class structures.

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VISION AND MISSION

OUR VISION

We follow a tradition of personal and professional integrity to provide people with the

best of facilities, luxurious amenities and salubrious environments. Flawless

designing, quality construction and superior specifications are the major thrusts for

this real estate investment company.

Our vision is to gain the loyalty of our customers by delivering more cost effective

projects. Our vision is to gain complete customer satisfaction. We followed this

thumb rule from the beginning and for this reason, our virtues have traveled through

generations and we have established a gigantic corporate image.

OUR GOAL

At Pandya Group, we follow a tradition of personal and professional integrity. We

have set high standards for ourselves and are determined to reach our goals without

compromising our values and beliefs.

The main objective of Pandya Group is to provide more and more innovative as well

as eye-catching projects with magnificent and modern lifestyle amenities.

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Chapter 1: RETAILING – THE SUNRISE INDUSTRY

15

1. Introduction to the Project Report

1.1 Title of the Study

“Development of retail industry in India with special reference to city mall Kota”

Retail is India’s largest industry and arguably the one with the most impact on the

population. It is the country’s largest source of employment after agriculture, has the

deepest penetration to rural India, and generates more than 10% of India’s GDP.

However, retailing in India has so far, been mostly in the hand of small disorganized

entrepreneurs. It is also India’s least evolved industries. In fact, it is not even

considered a real industry. The industry suffers from lack of management talent,

poor access to capital, unfavorable regulation and denial of access to best practices.

The Indian retail industry is only now beginning to evolve in line with the

transformation that has swept other large economies. Fifty years of restricting the

consumer goods industry, a national mindset which favored denial over indulgence,

and a fractured supply chain for agricultural products have all contributed to prevent

the development of modem tenants based on scale advancements and consumer

preferences.India has some 12 million retail outlets, but many of these act merely as

subsistence providers for their owners and survive on a cost structure where labor

and land is assumed to be free and taxes nill. Compare this with the global retail

industry, which is one of the world’s largest organized employers, is as the cutting

edge of technology, and which leverages scale and scope to offer value – added

services to its customer.

However, only recently has there been an awakening in this sector, with more

organized retailers starting to make an impact. The liberalization of the consumer

goods industry, initiated in the mid-80s and accelerated through the 90s has begun

to impact the structure and conduct of the retail industry. Backed by changing

consumer trends and metrics, liberalization in mindsets driven by media, new

opportunity and increasing wealth, retailing in India, presents a vast opportunity for a

variety of business, real estate, store design and operations, visual merchandising

logistics and communications, B2C service providers, and FMCG companies who

can add to their offers by partnering this revolution.

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The Indian Retailing industry stands poised to take off into the 21stcentury, it is one of

the fastest growing sectors in the nation that caters to the world’s second largest

consumer market. Retail boom is unbolting. India have five million retailers with a

business volume of $ 180 million growing at 5 to 7 percent a year. The middle class

drives retailing anywhere in the world and this segment should have reasonable

income. The next driver is availability of variety of goods, products and brands. The

third one is “sense of awareness”.

In other developing economies, this transformation has already begun. In many of

these countries, organized retail already has a 40 percent share of the market,

compared to India’s current levels of 2 percent. As India goes through this

transformation, new businesses with sales of 1 billion – 2billion US $ will be created

in grocery and of 250 million – 500 million US $ in apparel. Smaller but still

interesting opportunities will be created in other sectors like books, electronics and

music. This transformation will also impact the supply chain in agriculture, the tax

collections from trade and the way people shop.

1.2 DURATION OF THE PROJECT

The project have been taken

Objective of the study

The overall objective of retail marketing is creating and developing services and products that meet the specific needs of customers and offering these products at competitive, reasonable prices that will still yield profits. Businesses must realize that, in retail, the customer lies at the center of any organization's

marketing efforts, determining the overall success of the product or service. Make the Product KnownIncrease Customer LoyaltyImprove Direct Marketing

Scope of retail marketing

The scope of the Indian retail market is immense for this sector is poised for the highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005. 

The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market.  

The growth of scope in the Indian retail market is mainly due to the change in the consumers behavior. For

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the new generation have preference towards luxury commodities which have been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable. 

The scope of the Indian retail market have been seen by many retail giants and thats the reason that many new players are entering the India retail industry. The major Indian retailers are:

Pantaloons Retail India Ltd Shoppers Stop Bata India Ltd Music World Entertainment Ltd

Judging the scope for growth in the India retail industry many global retail giants are also entering the Indian retail market. They are :

Tesco Metro AG Wal- Mart

The scope for growth in the Indian retail market is seen mainly in the following cities:

Mumbai Delhi Pune Ahmedabad Bangalore Hyderabad Kolkata Chennai

The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort.

1.1 Overview of the Global Retail Industry

Retail: World largest Industry

Retail, with total sales of $ 6.6 trillion, is the world’s largest private industry ahead of

financial industries $ 5.1 trillion. It is also home to a number of the world’s largest

enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top

500 companies are retailers. The industry accounts for over 8 percent of the GDP in

Western Economies.

Retail: Largest private industry in the world economy

A study by Mc Kinsey states that organized retail accounts for just around 2 percent

(out of which modern retail formats accounts for 7 percent of trade) presently is set

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to grow at exponential exceeding 35 percent. Fitch estimates the current share of

organized retail to grow from 2 percent presently to around 15 to 20 percent by 2010.

Table 1:

Retail Consumption

areas

US $ billion Existing Companies in the organized sector

Food Retailing 130 Food Bazaar (Pantaloon) Food World

Subhishka.

Clothing & Apparel 12 Pantaloon Westside, Shoppers Stop

Jewelry, Watches 7 Tanishk, Titan, Gold Bazaar (Pantaloon)

Home Furnishing 5 Home Store, Arcus (Pantaloon)

Foot wear 1.7 Bata, Woodland

Beauty Care 3.6 VLCC, Health & Glow

Source: Economic time’s industry report

Traditionally most retailers have had very localized operations. This localized nature

of the industry is changing as retailers face low rates of growth and threatened

profitability at home. New geographies will help them sustain top-line growth as well

as permit global sourcing. Profits in retail have steadily been rising and have

generated 18 percent shareholder returns between 1994 and 1999. Significantly,

retail is also one of the world’s largest employers, accounting for instance 16 percent

of the US workforce, Poland 12 percent, China 8 percent, India 10 percent and

Brazil 6 percent. Factors such as scale in sourcing, merchandising, operational

effectiveness and ambience have driven the spread of organized retail. Grocrey,

electronic are examples of categories that compete on the strength of better pricing,

which in turn is driven by superior sourcing and merchandising and cost-efficient

19

operations. Wal-Mart, Home Depot and Kingfisher are benchmark retailers in these

fields.

Over the last few decades, retail formats have changed radically. The basic

department stores and co-operatives of the early 20th century have given way to

mass merchandisers, hypermarkets, warehouse clubs, category killers, discounters

and convenience stores. Each of these formats has been driven by marketer’s need

to offer relevant, distinctive and economic propositions to an evolving consumer

base.

Global retailers have also reached a position of strength that enables their brand to

be leveraged across a wide range of services. Many of them have expanded their

offering, over the years to include fuel retail, car retail, convenience services and

personal financial services. This has put them in a position where they are not only

beginning to capture growth from geographical expansion, but are also entering

large new areas of business.

The recent evolution of the internet has helped further broaden the scope of

operations of large retailers. Further, a large number of retailers are pursuing

innovative aggregation and supply chain-streamlining initiative using B2B

technology.

Key Points of Indian Organized Retail Industry

Potential to be the third largest economy in terms of GDP in next few years.

It ranks high amongst the top 10 FDI destinations of the world.

Fastest growing tourist market in Asia.

World bank states, India to be world’s second largest economy after China by

the year 2050.

Stable and investor friendly Central Government at the helm of affairs.

Introduction of Value Added Tax or VAT and tax reforms.

High degree of professionalism and corporate ethics.

Excellent Investment opportunities in Indian retail sector and in allied sectors;

sure and high returns on investments.

To invest US $130 billion for the development of infrastructure, by year 2010.

Bullish stock markets.

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Hordes of foreign investors are thronging in to invest in Indian retail markets.

Highly educated English speaking young workforce.

Vibrant and multi cultured cities.

Huge opportunity exists, especially in semi-rural and rural areas.

till date the second largest employer after agriculture sector, for the huge

semi-skilled Indian population.

Offers highest shop density in the whole world.

Having almost 1, 20,000 shops, across the length and breadth of the country

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Chapter 2: RETAILERS AND RETAIL FORMATS

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Departmental stores may be a comparatively recent phenomenon in India, with a

specially created ambience making shopping an experimental affair. Indeed, we are

even beginning to demand places where we can avail the luxuries of spending the

whole day in one place, taking advantage of a bouquet of services in which shopping

is only a part. Therefore, you can browse window shop, make purchases, break off

for a meal, take in some entertainment, and listen to music.

Retailers in India like abroad in diverse form such as street vendors to Large groups

like ABRL, Bharti, Trent, Reliance retail, Shoppers, Lifestyle, Future group, RPG to

Multiplex chains etc. are few names in long list and different formats. Each type of

retailer survives and makes profit by satisfying their target group of customers in

most convenient and efficient manner.

2.1 CLASSIFICATION OF RETAILERS

Because there are so many different kinds of retail firms, classifying them all into one

neat system becomes difficult. We can use different bases for classifying retail firms.

Different types of classifications are explained here.

2.1.1 LEGAL FORM

The three basic legal forms of ownership are sole proprietorship, partnership and

limited liability company (private or public).

2.1.2 ORGANIZATIONAL STRUCTURE

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Classification of Retailers Based on Legal Form

Proprietorship Limited Company (Private or Public)

Proprietorship

These are three operational structures: the independent trader (usually operating

only one retail outlet, the multiple or chain store and the co-operatives.

2.1.3 RANGE OF MERCHANDISE

Some retail businesses offer a wide range of goods. Examples of these include

variety stores like Marks & Spencer or department stores like Harrods.

2.1.4 DEGREE OF SERVICE

Although many retail outlets have been converted or built to self-service of self-

selection standards, there are other which offer their consumers services such as

delivery, credit, gift wrapping, repairs, etc. It is interesting to note that many former

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Co-operativesChain Stores (Multiples)

Classification of Retailers Based on Range of Merchandise

Specialty Stores (Niche Retailers)Variety Stores (Departmental Stores)

Classification of Retailers Based on Operational Structure

Independent Traders

self-service retailers are now looking at ways of gaining competitive advantage by

adding new customer services.

2.1.5 PRICING POLICY

Some retailers choose to emphasize low price rather than the service element of

their retailing mix. Aldi, the German food retailer, expanded very rapidly in the late

1980s by pricing below the competition. Others choose to price above the

competition knowing that they will generate business on the basis of some other

attribute such as convenient location or exclusive image.

2.2 TYPES OF RETAILERS BASED ON MERCHANDISE

AND PRICING

In Indian context, these classifications may be new or developing in the form and

hence we cannot distinctly identify a store by these typical classifications. These are

departmental stores, speciality and discount stores.

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Classification of Retailers Based on Degree of Services

(LOW)

Self Service & Self Selection

(HIGH)

Large Number of Consumer Services such as high credit, home delivery

etc.

Classification of Retailers Based on Pricing Policy

Lower Price (Discount Stores) High Price (Convenience Stores)

2.2.1 DEPARTMENT STORES

A department store is defined as a large store selling

A broad variety and deep assortment (to understand breadth and depth of

assortment)

Offer considerable customer services and physically separate departments.

A departmental store is organized into departments selling clothing and accessories,

home furnishings and furniture, toys and games, consumer durables, and

kitchenware.

With the success of the hypermarket in Hyderabad, RPG is looking at establishing a

wholesaler’s chain throughout the country. “In the next five years, RPG retail is

planning to set up 12 to 15 hypermarkets in India. After all Gaint has been attracting

retailers who prefer quality and good profit margins. According to Mohammed Afzal,

a retail shopkeeper from Musheerabad area, “the store offers single, multiple and

annual rebate on the goods bought, which is the core attraction for us, “Adds another

retailer, Mr. Raythaya, from Mehdi: “The priced of the product solely depends upon

the quantity we buy. If we buy large quantity, the price is very attractive.”

Some of characteristics of Department Store are:

Located in central market area or a major shopping centre, locations

supported by potentially large catchments.

Availability of parking space.

Freedom for the customer to move around the store and view.

Relatively high prices with margins large enough to cover heavy staffing, the

range of services offered and high accommodation costs.

Provision of a large number of specialized goods in one location, which allows

some associated sales.

Availability of personal assistance in shopping, added customer services and

amenities.

Special staff expertise in particular products demonstration.

2.2.2 SPECIALTY STORES

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A specialty store has a narrow product line with deep assortment (i.e., has more

depth in the same product category) and provides a high degree of customer

services.

A retail store selling a great variety of a particular characteristic group of

merchandise is known as an Emporium (Saree emporium, art emporium, etc.)

2.2.3 DISCOUNT STORES

A discount store is a general merchandise retailer that offers broad variety of

merchandise, shallow assortment, limited service and low price. Discount stores

offer lower prices due to limited service and low cost locations. Discount stores tend

to have characteristics such as

Very low prices (value for money)

Low gross margins

High degree of self-service (no frills attached)

Low-cost fittings.

No free services, such as delivery

Reliance on heavy advertising in nearby large population centers

Relative isolation of locations from conventional shopping areas with

consequently low rents predominantly in ‘edge-of-town’ sites.

The examples of discount store chains are Wal-mart and K-mart. In India, so far

discount stores have not appeared on retail scene in a big way. The reasons are

three fold. Unlike most western countries, Indian manufacturers have much higher

bargaining power with their retailers. As there are very large number of small

retailers and no retail association with the influences negotiate with the

manufacturers. The other reason is that retailers themselves do not have economic

of scale to offer discounts on their own. In general, merchandise retailing, factors like

MRP prescribed pricing and single countrywide pricing policies adopted by most

organized vendors deter the growth of discount stores in the country.

“Modern retail formats will have 10-15 per cent of total market in the next ten

years and while all formats will co-exist, large discount stores could be front runners

in this evolution.” Says Raghu Pillai President and CEO, RPG Enterprises. The Rs.

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6,000-crore, RPG group of Food world, Health and Glow and Music World fame,

opened its first discount store by the name of Giant early this year. “The response

has been fantastic and we are growing month on month.” “If you look at the list of

top retailers in the world quite a few would be discounters.around 60 percent of the

business abroad comes from this format. Internationally, the largest retailer in the

world Wal-Mart is a discounter,” says Kishore Biyani, MD Big Bazaar.

2.2.4 SUPER MARKETS, SUPERSTORES AND HYPERMARKETS

A super market is a self-service food store offering groceries along with other

merchandise for household maintenance and laundry, etc. and size of under 25,000

square feet. They are relatively large, low-cost, low-margin, high volume, self service

store. Number of supermarkets has come up in most cities in last few years. A

typical Indian super market is about 3000 sq. ft.

A shopping mall is an arrangement of retail stores and other places for leisure

time activities such as dining, entertainment, etc., selected on their contribution to an

overall merchandising plan. A mall is spread over a large area of more than 2,00,000

sq. ft. and runs as an integrated business by an individual or an organization, to

which independent retailers pay for opportunities to participate.

A shopping centre or a plaza is a configuration of five or more tenant spaces of

approximately, 1,000 sq. ft. each used for retailing developed under one building

plan in such a way to have a unified character. (Kannaiya shopping center in Linking

Road, Mumbai, Fountain Plaza Egmore, Chennai, BasantLok in VasantVihar, New

Delhi.)

2.3 TYPES OF RETAILERS BASED ON OPERATIONAL

STRUCTURE

These are types of retailers which include independent traders, multiple chain stores,

cooperative societies, concessionaires, and franchising. They are different from the

merchandise-based stores because they have independent supply merchanisms and

hence price variations are high.

28

2.3.1 INDEPENDENT TRADERS

A single individual or sole trader owns the majority of shops in India. Even in US

more than 90 % of retailers own and operate single stores. Independents are defined

as retail organizations (other than co-operative societies) with less than ten branches

or no branches. The usual number of branches controlled by the sole trader is one or

at the most two. A family mostly owns this type of retail format with high dependence

on the owner. Kirana shops, drug store, STD/PCO outlets etc. are very good

examples of such retailers.

Advantages of the Independent Traders:

The main advantages of Independent traders are:

As the owner (management) has direct contact with the customers and

therefore can quickly respond to their needs.

Independent traders can be very flexible owing to their small size.

They are not bound by any bureaucratic rules that may restrict retail chains or

cooperative society managed stores. So, they can free to locate their store

wherever they want and the type of merchandise they sell.

Disadvantages of the sole trader

These may summarized as follows:

Price competition from retail multiples who can reduce their costs through bulk

buying and other economies of scale.

Lack of specialist expertise in retail functions, e.g. buying, in store

merchandising, accounting, or possibly lack of time to carry them out

adequately. Single store retailers have to rely on owner-managers’

capabilities to make broad range of retail decisions.

The cost of advertisement and promotions is very high for a single store.

Lake of capital expand and improve the business. Especially in case of

networking and use of IT for development of business, the expenditures are

too high for a single store.

Inertia – the small trader may not wish to expand because of the extra

problems expansion brings.

29

Due to high accommodation costs the independent often lacks the advantage

of being in a large shopping centre with heavy pedestrian traffic generation.

Changing shopping habits brought about by increased car usage has

concentrated purchases in large well-located ‘one-stop’ stores in cities.

2.3.2 MULTIPLE OR RETAIL CHAIN STORES

The large multiple retail organization is invariably of the joint-stock company

type (either private or public) and therefore in common ownership with a

degree of centralized control. A large multiple is defined as an organization

with ten or more branches. This form is strongest in department stores,

speciality stores, variety stores, food stores, drug stores etc. their size allows

them to buy in large quantities at lower prices, and they can afford to hire

specialist to deal with pricing, promotion, merchandising, inventory control etc.

2.3.3 CO-OPERATIVE SOCIETIES

The co-operative movement began in Rochdale in 1844. A co-operative

society is defined as a co-operative retailing organization trading on co-operative

principles, affiliated to the National Co-operative Movement (through the Cooperative

Union) and registered under the Cooperative Societies Acts. Because many retail

cooperative societies operate branches they are in this respect similar to multiple

chains, but in the form of organization and control they are in many ways quite

different. The principles of the Movement applicable to retailing are:

Voluntary and open membership

Democratic control; one member, one vote

Payment of limited interest on capital

In India cooperatives aggregate at least Rs. 400 Crores annually.

SahkariBhandar and Apna Bazaar are two leading Mumbai based cooperative

chains. Delhi has couple of large cooperatives. Mother D’airy of Delhi even

distributes fresh vegetables from its milk distribution centres. Milk cooperatives

are believed to have a substantial 10 percentage share of the all India market,

which is about Rs. 60,000-70,000-crores.

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2.3.4 CONCESSIONAIRE

The stopover store format is one that rides piggyback on another retail outlet,

say a petrol pump. This stopover format is a concession that offers instant use or

ready to eat categories of merchandise.

A Kiosk is one such concessionaire format placed in a mall or shopping centre or

a bus station, airport, etc. A kiosk is a small freestanding open pavilion ofter open on

one or more sides used for information, sales and promotion.

Partnerships and alliances for concessions offer a great deal of opportunity for

increasing customer contact, share of mind and share of heart especially in large

formats such as department stores, malls and hypermarkets. By striking trust, or with

complementary marketers who are concessionaires, a retailer can add value and

convenience, and broaden his relationship with customers.

“The concessionaire concept is very common in Asia. Initially, the

decision to lease out departments was largely a matter of augmenting the

retailer’s own mix of goods and services, particularly in areas where he/she

lacked expertise or technical capabilities. With the ones of Asian currency

crisis, concessionaire agreements became the most viable option for Asian

retailers to stay afloat.”

2.4. FRANCHISING

Franchising is the granting of sole selling rights within a given geographical area.

The franchising company (the franchiser) supplies equipment and/or raw materials

for a licensee who either pays a franchise fee or a percentage of turnover, or

contracts to buy supplies from the franchiser (or a mixture of these methods of

payment). The licensee is also helped in finding a location and is trained in all

aspects of the business. Generally, franchises are distinguished by three

characteristics:

The Franchiser owns a trade or service and licenses it to franchisees in return

for royalty payments.

31

The franchisee pays for part of the system. This is normally in two parts, one

as initial fee, which is only a small part of the total amount. Second, service

fee on turnover on monthly or quarterly basis.

The franchiser provides its franchisee with marketing and operations system

for doing business.

Franchising is beneficial to both franchiser and franchisee. Benefits to franchiser

are:

Covering new territory,

Hard work of persons who are entrepreneurs rather than employees, and

The franchisees’ familiarity with local community and conditions.

2.5 NON-STORE RETAILING

2.5.1 MAIL ORDER

Mail order retailing – using the mail to get orders and/or facilitate delivery – takes

several forms as follows:

Mail Order Catalogues

These are mainly of two types – the general merchandise catalogue, and the

specialist catalogue. Much of the selling is done through a network of part-time

agents who are paid a commission on the things they sell.

The advantages of the general merchandise mail order catalogue to the

customer are:

‘Free’ credit

Price stability over the lifetime of the catalogue

Savings in transport fares and petrol

Wide selection of merchandise

Wide selection of merchandise

Direct Response Advertising

32

This is the use of advertising in newspapers or magazines to describe a product and

stimulate the customer to write or telephone for it. Most national newspaper have a

Saturday bargain squares section advertising all manner of postal bargains.

Direct Mall

This is the use of advertising literature sent directly to the potential customer for the

purpose of selling goods or services. The Reader’s Digest have been particularly

successful in selling books in this manner and records, tapes and collectors pieces

are also sold via direct mall.

2.5.2 DIRECT SELLING

Direct selling that direct selling of the product by salesman to you takes several

forms as follows:

Door-to-door Trading

Selling by salespersons is being done to launch new products. A variety of foodstuffs

are also regularly delivered to the doorstep, e.g. milk, bread, eggs, vegetables. Avon

cosmetics are sold in this manner.

Mobile shops

These are travelling shops and are distinct from vehicles from which milk, bread,

newspapers etc. are delivered. Vegetables, plastic toys and other small goods of

house hold use are sold by hand driven carts.

Markets (Haats)

Haats or rural markets remain the traditional way of retailing in rural and semi-urban

India. In these markets, sellers bring their merchandise on one particular day (s) to

particular place. Vegetables, groceries and household items are sold in this type of

markets. Names of many localities were derived because on particular day a Haat

would be organized there. For example; Itwara, Budhwara, Mangalwara, etc.

33

2.5.3 AUTOMATIC VENDING

Selling out of machines has been part of the retail scene for many years (particularly

for making a local telephone call) and there has been something of a recent boom in

auto-vending, notably in closed, relatively vandal-proof areas such as sports center

and airports. This possible limitation reduces the main advantage of the machine in

that they can be in operation for twenty-four hours a day, seven days a wee. Banks

are providing this type of service through ATMs.

34

CHAPTER 3: RETAILING CONCEPTS

35

The overall purpose of the retailing is to provide goods and services wanted by

customers and to do so profitably so that business can be sustained. This means if a

retailer is to be successful and customer satisfied the retailer must understand the

three core factors of retailing, namely, customers, their needs, wants and buying

behavior, competition, their strategies.

Factors influencing Retailing Business

36

Competitors and their strategies

Organization/Firm

Target Market

Pressure Groups & Govt. Policies

3.1.1 CUSTOMERS

Customers are the most important element for the retailers. To be successful retailer

must know its customers. Why customers shop, how they select a shop and how

they select among that stores merchandise. These can be:

Convenience- of hours, of location, of shopping ease

Assortment of merchandise- whether a wide variety or limited

Quality and fashion level of goods

Price – generally important at the lower end

Service- such as credit, delivery, courteous sales staff, assistance in

selection, after sales services, return-goods privileges.

Excitement- such as promotional efforts

3.1.2 COMPETITION

A retailers competition does not only come from those competitors who are

using the same retail format but also from new competitors who are coming up from

new formats.

The competition between retailers using the same type of retail format is

known as intra-type competition. Examples of this type of competition are: a

department store competing with other department stores; a discount store

competing with other discount stores; a supermarket competing with other

supermarkets etc.

The competition to the retailers may come from same retailer located within

the vicinity of the target market or a similar kind of business in that locality. For

example, a retailer located in a suburb selling video and music cassettes would have

competition with the cable TV and the movie theatre located in that suburban area.

The retailer may also face tough competition for the scrambled stores, which in

addition to their merchandising products also provide videocassettes on rent.

Therefore the retailer has to identify, assess the strengths and weaknesses of

his/her competitor while designing the strategy for marketing its products.

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3.1.3 ENVIRONMENTAL TRENDS

This is the third core element of retailing. The environmental factors surrounding the

customers and the competition is a major factor confronting retailers. These

environmental factors are: changing customers needs, changes in demographic

composition of customers, changes in technology, changes in business environment,

legal framework.

Economic Factor

The rate of growth in India has gradually picked up in last two decades. In the

eighties it breached the so called ‘Hindu rate of growth’ and reached 5% levels.

Throughout the nineties the growth has remained above this level even crossing 7%

levels. This has resulted in increased buying power and disposable income in the

hands of Indian consumers. A part from growth, India’s large middle class has led to

introduction of organized retail formats.

Demographic Factors

There has been significant growth in number of towns and significant increase

in population of urban India due to migration from rural areas. Rising prosperity and

population has driven the population of many cities over 10 lakhs. This has created

interest in large retailers. Many retailers have opened their store in number of cities

now. Prominent among them are Shoppers Stop, Food World, Westside, Ebony

Piramyd, Pantaloon, Lifestyle, Globus etc.

Social Factors

Nuclear small family is becoming a norm in India with increasing number of

women working outside the four walls of home. Thus, there is increase in disposable

income of families, however there is paucity of time as in many families both

(husband and wife) work.

Brand Profusion

38

Compared to early eighties, India has seen brand explosion in almost all

goods. Earlier there was only one brand of salt, namely Tata Salt, now there are a

number of brands available. Many goods were sold in loose earlier, now there exists

number of established brands, Numerous brands in consumer durables,

automobiles, household items, garments et, have appeared in the Indian retail

horizon.

Psychographic change

There has been a perceptible change in the mental attitude of the people at

large. People specially in cities have become health conscious. Hygiene is a

prerequisite for any investment related to consumption and food items. Due to

change in earning, the concept of marketing has also changed.

Demographic Change

The people at large live in big apartments and isolated suburban areas. There

is a growth of clusters of population in identified geographical locations. A particular

geographic location is populated by people with distinct characteristics of demand

and consumption. This indicate that the requirement of different clusters may be

different depending upon the type of families living together.

Political Change

Since last two decades, India is facing severe political instability. This is

causing frequent policy changes and creation of pressure groups.

Technological Changes

Last decade saw tremendous change in technology specially information

technology. Information Technology has provided ways to network and increase

market share with profitability. There is a possibility of mutual growth and business

with collaborations.

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3.2RETAIL MIX

The various components of the retailing mix as subcategories of the four P’s, which

is a very common terminology, adopted in marketing courses. These four P’s are:

3.2.1 PLACE

The categories from the point of view of retailing ‘Place’ are:

Convenience of shopping

Stores decor and interiors

Store location

The convenience of shopping provides convenience of time, convenience of

location, convenience of availability of other facility centers and convenience of

40

RETAIL MIX

PRICE

PLACE

PRODUCT

PROMOTION

shopping at one place to the customers. Convenience of shopping from a

consumer’s point of view involves time, place, effort and other facilities. A store

which is open from 7.00 AM to 11.00 PM is more convenient than a store that is

open from 10 to 5. Many banks open evening branches to provide Convenience

of time to office goers. ATMs provide the same Convenience of time. A store that

is close to consumers offers convenience of place.

Timings

How long

store

remains

open?

Does it

remain

open

Sundays

and

holidays?

Location

Is it

convenientl

y located

for the

customer

Effort

Does it

offer

assistance

in

selection

and

shopping

to the

customers

Facilities

What facilities

Does it offer, such

as:

Car parking

space

ATMs

Credit card

acceptance

Free home

delivery

Ordering by

phone

Availability of

all products

under one

roof etc.

Stores interior and décor also form part of retail mix. A retail store can have

expensive fittings etc. (normally used for trendy products such as Titan Showrooms)

or can have inexpensive interior or décor (normally used by discount stores). The

two important criteria for store’s interior and décor are:

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CONVENIENCE OF SHOPPING

It should be compatible with the products, for instance, for home furnishings

and decorative items would require an attractive and elegant interior and

décor, whereas a store selling items would require visibility and hygiene rather

an elegant décor.

It should be compatible with the target customers and retailers image, for

example, target customers of a five star hotel would like to have a good

interior and décor, whereas a small restaurant may not much attention to its

interior and decor.

3.2.2 PRODUCT

Following factors of ‘Product’ are useful for retail mix.

Breadth of merchandise

Depth of merchandise

Quality and fashion have of goods

Product Merchandise Assortment: Breadth

Breadth or variety of merchandise refers to number of different merchandise

categories a retailer offers. A store with many lines and departments of merchandise

has breadth of assortment; a narrow line store is a specialty store. Many stores that

carried limited lines, such as groceries or drugs, are expanding their lines through

scrambled merchandising and are thereby offering a broader assortment. On the

other hand, specialty stores and boutique are prospering through offering such

limited assortments as wigs, pets, lamps and shades, and jeans.

Product Merchandise Assortment: Depth

Depth of assortment refers to number of different items in a merchandise category.

So depth of assortment refers to the variety of colors, styles, sizes, and prices that a

retailers offers in a given lime. Each different item of merchandise is called an SKU

(Stock Keeping Unit). An example of SKU is ‘Girls’ levy jeans size 5 stone washed,

straight leg’. Specialty stores offer greater depth of merchandise and this explains

the popularity of specialty stores.

DISCOUNT STORE (Wide and Shallow)

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BREADTH

P1 P2 P3 P4 P5

11 11 11 11 11 LEGEND

12 12 12 12 12 P product

13 13 13 I

item or stock keeping 14

U unit

Assortment in a discount store

DEPARTMENT STORE (Wide and Deep)

BREADTH

P1 P2 P3 P4 P5 P6 P7

11 11 11 11 11 11 11

12 12 12 12 12 12 12

13 13 13 13 13 13

14 14 14 14

15 15

16

Assortment in a Departmental Store

Product Quality And Fashion Level Of Goods

Quality and fashion are important attractions at the high end. High quality,

newest fashions and exclusivity are major consideration for high income, fashion

conscious customers. Exactly opposite is true for low end. Low price and value for

money are major considerations for relatively lo income customers. Indian

consumers are famous for their attitude towards value for money and low price.

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D e p t h

D e p t h

3.2.3 PRICE

In the past, price was considered a direct indicator of quality. However, this

trend is changing now, as many good quality products are being priced low. Price

has become a tool in the marketer’s armor to increase market share without

compromising quality.

Today, price is considered an indirect indicator of quality and fashion level of

goods. And to an extent it is. Higher quality goods and newest fashions usually

command higher prices. However, good quality may be available without the highest

prices. Private brands, which are retailer’s own brands usually, are priced lower than

nationally advertised brands. Often the difference in price between highest and

lowest price items doe4s not accurately reflect the difference in quality. Some

retailers, for example The Home Store have even introduced their own brands in

groceries at lower prices than national brands without compromising on quality.

Consumers often make judgment on products or indeed on the store as a

result of his or her response to the prices of merchandise. Thus for example a

retailer could adopt a strategy of offering goods at relatively high prices in order to be

consistent with a general strategy of appealing to consumers who want exclusivity.

The major appeal of discount stores I their low prices. Many other stores

direct the bulk of their promotional efforts, especially their newspaper advertising, to

sale and particular goods offered at special low prices. Most supermarket advertising

promotes low price special or leaders, designed to attract customers to the store so

that they may then buy other regular price items. Leaders are items sold at a below

average mark up sometimes even hear cost in order to attract customers to the

stores.

3.2.4 PROMOTION

The retailer has to communicate with customers, initially to make them aware

of his or her offerings and then to stimulate interest and desire. This is based on the

AIDA theory of promotion.

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Awareness

Interest

Desire

Action

Awareness: The retailers first task is to make the customer aware of his

offerings. It should communicate property to its customers through

advertisements, window merchandising, product display etc.

Interest: Next state of promotions is ‘interest’, if customer shows some interest in

the product retailers sales persons can help in knowing the product better.

Desire: The third stage is ‘desire’, it is in this stage the retailer can convert desire

of the customer into next stage that is action or purchase.

Action: In this stage, customer makes purchase.

45

Chapter 4: THE RETAIL MARKETING

REVOLUTION

46

By 2010, the list of India’s top 10 retailers will have at least 5 Indian corporate. Retail

marketing will go through a tremendous change in India this millennium. It will

change India’s cities, its people, and its households. The Indian consumer is

reportedly the largest spender in Singapore and London. It is, therefore, strange that

there have, so far, been few efforts to present the product in the right kind of

environment in India. Indeed, the right shopping experience does induce Indian

consumers to spend more. This is evident from the experiences of retail-outlets like

Shopper’s Stop, Music World, Food World, Crosswords etc.

However, the development of organized retail is dependent on the efforts of several

agencies and institutions. The first among these is the government. In a country as

big as India and with as many states as ours, it is imperative that the Central

government and all state governments bring in Value Added Taxation or a unified

taxation system to ensure that the tax-regimes are the same across the country.

The laws governing retail real estate should also be looked into, so that it is possible

to develop retail-estate beyond the city-limits.

Apart from providing entertainment and retail opportunities, this will also decongest

the city center and facilitate the development of suburbs. The relevant rules should

also be amended to allow retail-stores to operate 7 days a week, 12 hours a day.

Given the hours most urban consumers keep at work and keeping in mind the

increase in the number of nuclear families, this may indeed make sense. This will

also help people enjoy their evenings, out at malls.

The second group, whose participation is essential in making retail a boom-sector in

this millennium, comprises developers. Most properties are developed without

considering the end user, thus we sometimes find high-ceilinged offices and low-

ceilinged retail stores. Often, the shopper’s convenience is not taken into

consideration while the property is constructed.

The third constituency that has a role to play in the fortunes of organized retail this

century is the education-sector. Retail is a people-intensive business and there is a

huge opportunity for retail institutes in India.

47

For manufacturers, retailing will present an attractive opportunity. Organized retail

allows them to expose their products to a large volume of customers in an

environment conducive to buying. Already, several transnational retail giants have

established their presence in India. Others, notably Chinese retailers, have visited

India and studied the Indian market. There’s a lot at stake here; even so early in the

21st Century. India is too large a market to be ignored by transnational retail giants.

From the manufacturing company’s perspective, the focus should be on producing

good products, and forging relationships with organized retail. Manufacturers need to

draw a plan of producing quality products and tie in with retailers. Indeed, the birth of

organized retail will also engender the creation of private labels and store-brands.

Thus, if a manufacturing company lacks the resources to build a brand, it can supply

to retail-chain that has the resources to create a brand of its own.

Internationally, retailing is a large business; we find at least one retailer amongst the

top 10 companies in every country. In the US, it is wal-Mart with a turnover in excess

of $ 120 billion, in the UK, it is Marks and Spencer’s with close to $ 10 billion and in

Germany, it is Karstadt with a turnover in excess of dm 19 billion.

48

Table 1:

Top 10 Retailers in World Wide

Rank Retailer No. of Store

owned

Sales in US $

Million

1 Wall-Mart Stores Inc. (USA) 4178 $180,787

2 Carrefour Group (France) 8130 $61,047

3 The Kroger Co. (USA) 3445 $49,000

4 The Home Depot, Inc. (USA) 1134 $45,738

5 Royal hold (Netherlands) 7150 $45,729

6 Metro AG (Germany) 2169 $44,189

7 Kmart Corporation (USA) 2105 $37,028

8 Sears, Roebuck and Co. (USA) 2231 $36,823

9 Albertson's, Inc. (USA) 2512 $36,726

10 Target Corporation (USA) 1307 $36,362

Source: Economic Times Industry Report

49

Studies by consulting firms like A.T. Kearney, KSA Technopak, and MCkinsey and

Co. in India have indicated a huge potential for retailing in the country. Drawn by the

magic number of Rs. 1.6 crorethast is expected to be the size of the retail industry by

the end of the first decade of this millennium, several companies from the organized

sector have also jumped into the fray.

In this millennium, like in the last, customers will want to spend time with their family

and friends. They may like to visit malls on weekends where everything will be

available under one roof, India will benefit from these development because of

increased consumption through retailing and the corresponding increase in

employment created by retailing.

4.1 Retail Marketing

Retail Marketing includes all the activities involved in selling goods for services

directly to final consumes for personal, non-business use. Any organization selling to

final consumers – whether a manufacturer, wholesaler, or retailer – is doing retailing.

It does not matter how the goods or services are sold (by person, mail, telephone,

vending machine, or internet) or where they are sold (in a store, on the street, or in

the consumer’s home).

“Any business that directs its marketing efforts towards satisfying the final consumer

based upon the organization of selling goods and services as a means of

distribution.”

The concept assumed within this definition is quite important. The final consumer

within the distribution chain is a key concept here as retailers are at the end of the

chain and are involved in a direct interface with the consumer.

A retailer or retail store is any business enterprise, whose ssales volume comes

primarily from retailing. Retail organizations exhibit great variety and news forms

keep emerging. There are store retailers, non-store retailers, and retail

organizations. Consumers today can shop for goods and services in a wide variety of

stores. The best-known type of retailer is the department store. Japanese

department stores such as Takashimaya and Mitsukoshi attract millions of shoppers

50

each year. These stores feature art galleries, cooking classes, and children’s

playgrounds.

A retailer is at the end of the distributive channel. He provides goods and services to

the ultimate consumers. This he does through his small organization, with the help of

a few personnel. In an individual retail store there is not much scope for organization

except in the sense that the shopkeeper has to organize and apportion his time and

resources. The need for organization becomes essential as soon as he hires people

and enters into partnership or takes the help of members of his family in running his

store. A retailer deals in an assortment of goods to cater to the needs of consumers.

His objective is to make maximum profit out of his enterprise. With that end in view

he has to pursue a policy to achieve his objective. This policy is called retailing mix.

A retailing mix is the package of goods and services that store offers to the

customers for sale. It is the combination of all efforts planned by the retailer and

embodies the adjustment of the retail store to the market environment. Retailing mix

a communication mix and a distribution mix. The maximum satisfaction to the

customers is achieved by a proper blend of all three.

The success of the retail stores, therefore, depends on customer’s reaction to the

retailing mix which influences the profits of the store, its volume of turnover, its share

of the market, its image and status and finally its survival.

There are three main phases in the life of a retailing institution. These are:-

A. Innovation (Entry)

B. Trading up

C. Vulnerability

A. Innovation (Entry)

In the entry stage, a new retailer enters with new price appeal, limiting product

offering, Sparton Stores & Limited services. Its monopoly power over the others

is its price advantage, which means that it offers products at low prices so as to

get a competitive edge over its competitors.

51

B. Trading up

In the trading up stage, the retailer starts expanding. It expands in terms of

product offering, better services and improved interiors. With all these, it starts

charging a bit higher prices.

C. Vulnerability

In the vulnerability stage, there is a gap in the market leaving some space for the

new players to come in. this is due to increase in the prices by the retailers.

Normally these stages are there in the life of a retail institution. But all these may not

be necessarily there in every retail institution. For instance, any retail institution

targeting the upper class may start itself with a large variety & high price.

This brings to broadly identify and categorize the types of retail marketing, which are

defined as follows:

1. Store Retailing

2. Non Store Retailing

4.2 Types of Retail Marketing

4.2.1 Store Retailing

Store retailing provides consumers to shop for goods and services in a wide

variety of stores and it also help the Consumers to get all the needed goods

and services from one shop only. The different types of store retailing are

given below:

4.2.1.1 Departmental Store

These stores are usually built in large area and keep variety of goods under one

shed. It is usually divided into different sections like clothing, kids section, home

52

furnishings, electronics appliances and other household goods. In a departmental

store a consumer can buy variety of goods under one shed.

4.2.1.2 Supermarket

These stores are relatively large, low cost, low margin, high volume, self service

operations designed to serve total needs for food, laundry and household

maintenance products. Supermarkets earn an operating profit of only 1 percent

on sales and 10 percent on net worth.

4.2.1.3 Convenience Stores

These are relatively small stores located near residential area, open for long

hours seven days a week, and carrying a limited line of high turnover

convenience products at slightly higher prices than departmental stores. Many

such stores also have added takeout sandwiches, coffee and pastries.

4.2.1.4 Off – Price Retailer

These stores sell goods at low price with lower margins and higher volumes.

These stores sell goods with deteriorated quality. The defects are normally minor.

This target at the persons belonging to the lower income group, though some

have a collection of imported goods aimed to target the younger generation. The

company owned showroom selling the seconds products is a typical example of

off – price retailer.

4.2.1.5 Catalog Showroom

Catalog showrooms generally sell a broad selection of high-markup, fast-moving,

brand-name goods at discount prices. These include jewelry, power tools,

cameras, luggage small appliances, toys, and sporting goods. Catalog

showrooms make their money by cutting costs and margins to provide low prices

that will attract a higher volume of sales. Catalog showrooms have been

struggling in recent years to hold their shore of the retail market.

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4.3Organized Retail Formats in India

Each of the retail stars has identified and settled into a feasible and sustainable

business model of its own.

Shopper’s Stop – Department store format

Westside- Emulated the Marks & Spencer model of 100 per cent private

label, very good value for money merchandise for the entire family.

Giant and Big Bazaar – Hypermarket/cash & carry store

Food world and Neelgiris – Supermarket format

Pantaloons and The Home Store – Specialty retailing

Tanishq has very successfully pioneered a very high quality organized

retail business in fine jewelers.

Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer.

A chain retailer or corporate retail chain

Consumer Co-operatives

A new entrant in the retail environment is the ‘discounter’ format. It is also is

known as cash and-carry or hypermarket. These formats usually work on bulk

buying and bulk selling. Shopping experience in terms of ambience or the service

is not the mainstay here, RPG group has set up the first ‘discounter’ in

Hyderabad called the Giant. Now Pantaloon is following suit.Two categories of

customers visit these retail outlets.

a) The small retailer. For example, a customer of Giant could be a

Dhabawala who needs to buy edible oil in bulk.

b) The regular consumer who spends on big volumes (large pack sizes)

because of a price advantage per unit.

Retailing in India is still evolving and the sector is witnessing a series of

experiments across the country with new formats being tested out, the old

54

ones tweaked around or just discarded. Some of these are listed in table

below:

Table 4:

Retailer Current Format New Formats

Shoppers' Stop Department Store Quasi-mall

Ebony Department Store Quasi-mall, smaller outlets, adding food retail

Crossword Large bookstore Corner shops

Pyramid Department Store Quasi-mall, food retail

Pantaloon Own brand store Hypermarket

Subhishka Supermarket Considering moving to self service

Vitan Supermarket Suburban discount store

Foodworld Food supermarket Hypermarket, Foodworld express

Glob us Department Store Small fashion stores

Bombay Bazaar Super market Aggregation of Kiranas

Efoodmart Food super market Aggregation of Kiranas

Metro Departmental store Cash and carry

S Kumar's Departmental store Discount store

4.4Trends in Retail Marketing

In India the trends are mainly in three sectors, these sectors are:

1. New retail forms and combinations continually emerge. Bank branches and

ATM counters have opened in supermarkets. Gas stations include food store

that make more profit than the gas operation. Bookstores feature coffee

shops.

Even old retail forms and reappearing: In 1992 Shawna and Randy Heniger

introduced peddler’s carts in the Mall of America. Today three-fourths of the

nation’s major malls have carts selling everything form casual wear to

condoms. Successful carts average $ 30.000 to 40.000 a month in sales and

can easily top $ 70.000 in December. With an average start-up cost of only $

55

3.000, push carts help budding entrepreneurs test their retailing dreams

without a major cash investment. They provide a way for malls to bring in

more mom-and-pop retailers, showcase seasonal merchandise, and prospect

for permanent tenants.

2. New retail forms are facing a shorter life span. They are rapidly coped and

quickly lose their novelty.

3. The electronic age has significantly increased the growth of non store

retailing, consumers receive sales offers in the mail and over television,

computers, and telephones, to which they can immediately respond by calling

a toll-free number or via computer.

4. Competition today is increasingly intertype, or between different types of store

outlets. Discount stores, catalog showrooms, and department stores all

compete for the same consumers. The competition between chain

superstores and smaller independently owned stores has become particularly

heated. Because of their bulk buying power, chain get more favorable terms

than independents, and the chain’s large square footage allows them to put in

cafes and bathrooms. In many locations, the arrival of a superstore has forced

nearby independents, out of business. In the book selling business, the arrival

of a Barnes and Noble superstore or Borders Books and Music usually puts

smaller bookstores out of business. Yet the news is not all bad for smaller

companies. Many small independent retailers thrive by knowing their

customers better and providing them with more personal services.

5. Channels are increasingly becoming professionally managed and

programmed retail organization are increasingly designing and launching new

store formats targeted to different lifestyle groups. They are not sticking to one

format, such as department stores, but are moving into a mix of retail formats.

6. Technology is becoming critical as a competitive tool. Retailers are using

computers to produce better forecasts, control inventory costs, order

electronically from suppliers, send e-mail between stores and even sell to

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customers within stores. They are adopting checkout scanning systems,

electronic funds transfer and improved merchandise-handling systems.

7. Retailers with unique formats and strong brand positioning are increasingly

moving into other countries. McDonald’s. the Limited, Gap, and Toys “R” Us

have become globally prominent as a result of their great marketing prowess.

Many more Indian retailers are actively pursuing overseas markets to boost

profits. 

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CHAPTER 5: RETAIL MARKETING IN INDIA

58

Retail marketing is the most important part of the entire logistics chain in a business

especially in consumer related products. Without proper retailing the companies

can’t do their business. Retailing is the process of selling goods in small quantities to

the public and is not meant for resale. There are various ways of making goods

available to consumers like:

Company to salesperson to consumer.

Company to consumers (online/phone/catalog ordering).

Company to distributor to wholesaler to retailer to consumer.

These three are among the most common ways of making the goods available to

consumers. But in India the three layered system of distributor, wholesaler and

retailer forms the backbone of the front-end logistics of most of the consumer-good

companies.

In this system the company operating on all India basis appoints hundreds of

distributors across the country that supplies to various retailers and wholesalers.

Wholesalers in turn can either directly sell in the market or can supply to retailers.

The current retailing system prevalent across the country is highly fragmented and

unorganized. Anyone with some money and some real estate can open a small shop

and become a retailer catering to the locality in which he opens the shops.

There are a number of reasons behind this fragmented retail market. Some of

the major reasons being:

Poverty and lower literacy levels.

Low per capita income.

Saving focused and less indulgence mindset.

Poor infrastructure facilities like roads etc.

Restrictions on intra-state good movement.

High taxes.

No exposure to media.

High import duties on imported goods.

FDI in retailing is not allowed.

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Retailing is not considered as a business or industry by the government.

Besides this there is other reasons too which led to stifling of growth of organized

segment of retailing sector and which instead led to highly fragmented market.

Today in India we have more than 13 million retail outlets and most of them

are family run and locally owned. There are very few nationally present retail stores.

In India the process of buying and selling at these unorganized retail outlets is highly

characterized by bargaining and negotiations. But slowly with increasing influence of

media and urbanization the market is shifting towards organized segment. Seeing

the huge market size of retail business in the country and the current level of

organized segment many players have jumped into the fray and many are waiting for

the right opportunity to enter it.

5.1 RETAILING IN 1990S

On account of the liberalization drive in the 1990s, several structural and

demographic changes that are taking place are helping the industry to grow. The

GDP has grown by 6% in the last decade resulting in increased income levels and

higher purchasing power for the population. Increasing literacy levels, increasing

number of working women, increasing urbanization, higher international travel by

Indian population and increasing media penetration has raised aspiration levels of

the population, resulting in demand for better shopping experiences and larger

variety of goods. India has close to 54%of population below the age of 25, which

translates into higher prospects for increased consumption levels in the future.

Finally, interest rates have also declined in the past few years further propelling the

consumption demand.

These factors were the key drivers for the retail wave in the country. Notable among

the early entrants were players like Shoppers Stop, Panataloon, Ebony, Food world,

Subhiksha etc. initially, the growth in organized retail was very slow and

concentrated mainly in metros with south India holding its ground as the pioneer in

organized retail growth on account of the low cost of real estate. Due to the high

investments required in the early stages and the fact that real estate was the key

deciding factor for success of stores, real estate developers have been the major

players in the industry.

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Table 4:

Sponsors Groups Retail Business

RajanRaheja Real Estate Developer Globus – Chain of

departmental stores

K, Raheja Real Estate Developer Shopper’s  Stop - Chain of

departmental stores

Hiranandani Real Estate Developer Haiko supermarket, Loft

shoe stores and Hakone 

mall.

Tata Diversified Business

House

Westside – chain of

department stores

DS Group Real Estate Developer Ebony - chain of

department stores

RPG Diversified Business

House

Foodworld supermarkets,

Giant hypermarkets, Health

& Glow beauty and health

stores.

DLF Real Estate Developer DLF malls

ITC Diversified Business

House

Wills Sport – Chain of

apparel stored.

5.2 PRESENT RETAIL SCENARIO IN INDIA

Retail experts find Indian industry promising

Retail sales to touch Rs. 30,000-crore by 2005

Mall Mania: The developing mall culture in India

Emergence of region-specific formats

Entry of international players

The retail movement in India has acquired the critical mass that is required for rapid

acceleration in terms of industry growth as well as geographical spread. The Indian

industry can no longer be called nascent.

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The spread of super stores to the Northern cities such as Delhi, Chandigarh, Jaipur

and Kolkata is evidence of the fact that organized retailing in India has emerged from

its southern bastion.

The retailing boom is being driven by increased expectations as well as changing

shopping behavior of the urban Indian consumer. With the increasing number of

nuclear families, working women, greater work pressure and increased commuting

time, consumers are looking for convenience. And, convenience is defined as having

everything under on roof, longer hours and multiplicity of choice.

On the supply side, the current inefficient supply chain in India, particularly for food

items has led a few players to consolidate their operations to take advantage of

economies of scale and match consumer expectations in terms of delivery as well as

space. So, we have a situation where both demand and supply side dynamics are

fuelling the growth of organized retailing in India, although improvements in the

supply chain are yet to fully match with consumer expectations.

The future growth need not necessarily come only from the big metros, where there

already exists a good retail network. The fact that big Indian retail chains are moving

into places like Indore or Chandigarh is an important indicator of future growth. For

the Rs. 5000-crore organized retail industry it is, perhaps, time to tap the relatively

smaller cities. The share of organized sector in total retail sales will grow from one

per cent now to six percent by 2005. While projections can be slippery, hard facts

point to exciting growth ahead for this sector.

Mall Mania: The Developing Mall Culture in India

Modern malls made their entry in to India in the late 1990s. with the establishment of

Crossroads in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall

projects were announced. According to market estimates, close to 12 million sq. ft. of

mall space is being developed across several cities in the country of which 10 million

sq. ft. is expected to be operational by end of 2003. With this, rentals for retail

properties have shown a marked decline, which has brought down the bread-even

level of the retail projects. Moreover, retailers would now have access to retail-

specific properties, which will increase their efficiencies.

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Table 5:

Crossroads Tardeo, Mumbai 225-250

Ansals South Ex, Delhi 175-200

Nirmal Lifestyle Mulund, Mumbai 75-90

Runweals Mall Mulund, Mumbai 75-90

Karnavat Mall Thane, Mumbai 65-85

Raheja Mind space Malad, Mumbai 60-80

Jog’s Mall Andheri, Mumbai 55-75

Cable Corporation Borevali, Mumbai 55-75

Ansals East Delhi 75

Sahara Gurgaon 50-70

MGF Malls – Metroplitian& Plaza Gurgaon 65-85*

DLF Gurgaon 65-85

Shipra Noida 80-180

Forum KolKotta 100

City Center KolKotta 55

Rave 3 Kanpur 45-55

Inox Baroda 75

Forum Bangalore 70-90

Spencers Plaza Phase III Chennai 70

Indore, Nasik and Jaipur Malls  Indore 45-55

Source: ChestertenMeghraj Industry Report

Till some time back, there were only few international style shopping malls in India –

Spencer in Chennai, Crossroads in Mumbai, Ansals Plaza in New Delhi and Sri

Ram’s Arcade in Kolkata. By the end of 2004, that number jumped to many.

It looks like a virtual stampede, major players with a cumulative investment of Rs.

375-crore are set to change cityscapes across India. In 40 lakh sq. ft. of retail space

will be developed. In three years, this will rise to 70-lakh sq. ft.

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As the retail industry evolves, consumers want more variety before making their

purchase decision. A study on consumer outlook suggests that over 80 percent of

consumers want a wide range of products at hand while shopping. This signifies that

people are finally ready for multioption complexes.

Many old-time corporate are seriously considering using their idle assets. It makes

sense for landowners to develop it and keep the returns rather than sell it outright or

even lease it, especially when there is opportunity here. It is perhaps the best way to

use an idle real estate asset.

The limited kitty of brands have yet another significant knock on effort on the typical

size of Indian malls. In the US and South-East Asia, malls are as large as 50-lakh sq.

ft. Spencer is by far the largest mall in India. It occupies 7 lakh sq. ft. and even that is

dwarfed by Asia’s largest mall, the 4-million sq. ft. mega mall in Malaysia. Even the

26 malls that are being planned are likely to measure between 50,000 sq. ft. and 2-

lakh sq. ft. The Indian mall cannot offer too many choices in terms of brands. So,

developing a very large mall can never be sustainable.

Emergence of Region-Specific Formats

For the first time in 10 years, the industry is witnessing the development of region-

specific formats. With organized retail penetrating into B class towns, retailers have

started differentiating in the sizes and formats of stores. For example, in

departmental store format, while most A class cities and metros have larger stores of

50,000 plus sq. ft. sizes, stores in B class towns have stabilized in the 25,000-35,000

sq. ft. range. Most players have started operating these two formats across various

cities, which has helped them to standardize the merchandise offering across the

chain.

Emergence of Discount Formats

Larger discount formats, popularly known as hypermarkets, are now emerging as

major competitors to both unorganized and organized retailers. Penetration of

organized retail into the lower strata of income groups and consumer demand for

increased value-for-money has improved the prospects of these formats. These

formats span across the entire range of merchandise categories. Big Bazaar

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promoted by Pantaloon and Giant promoted by the RPG Group, are examples of this

format.

Entry of International Players

A large number of international retailers have evinced interest in India, despite the

absence of favorable government policy for foreign players. A number of the major

brands have entered the country through licensing agreements with Indian players to

capitalize on the opportunities available in the sector.

Table6:

International Players Retail Ventures in India

Landmark Group, Dubai Lifestyle Chain of Departmental Stores

Metro, Germany Hypermarket

Shoprite, South Africa Supermarket, Hypermarket

Nanz, Germany Supermarket

Marks & Spencer, UK Apparel Retailer

Mango, Spain Apparel Retailer

McDonalds, USA Food Retailer

Dominos USA Food Retailer

Tricon Restaurant, USA Food Retailer

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CHAPTER 6:

INFORMATION TECHNOLOGY IN RETAIL

Over the years as the consumer demand increased and the retailers geared up to

meet this increase, technology evolved rapidly to support this growth. The hardware

and software tools that have now become almost essential for retailing can be

divided into 3 broad categories:

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Customer Interfacing Systems

Bar coding and scanners

Point of sale systems use scanners and bar coding to identify an item, use

pre-stored data to calculate the cost and generate the total bill for a client.

Tunnel Scanning is a new concept where the consumer pushes the full

shopping cart through an electronic gate to the point of sale, in a matter of

seconds the items in the cart are hit with laser beams and scanned. All that

the consumer has to do is to pay for the goods.

Payment

Payment through credit cards has become quite widespread and this enables

a fast and easy payment process. Electronic cheque conversion, a recent

development in this area processes a cheque electronically by transmitting

transaction information to the retailer and consumer’s bank. Rather than

manually process a cheque the retailer voids it and hands it back to the

consumer along with a receipt having digitally captured and stored and image

of the cheque which makes the process very fast.

Internet

Internet is also rapidly evolving as a customer interface removing the need of

a consumer physically visiting the store.

Operation support system

ERP System

Various ERP vendors have developed retail-specific systems which help in

integrating all the functions from warehousing to distribution front and back

office store systems and merchandising. An integrated supply chain helps the

retailer in maintaining his tocks getting his supplies on time preventing stock-

out and thus reducing his costs, while servicing the customer better.

CRM Systems

The rise of loyalty programs, mail order and the internet has provided retailers

with real access to make sense of their consumer data and apply it to

business. This, along with the various available CRM (Customer Relationship

Management)System allows the retailers to study the purchase behavior of

consumers in detail and grow the value of individual consumers to their

businesses.

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Advanced Planning and Scheduling Systems

APS systems can provide improved control across the supply chain all the

way from raw material supplier’s right through to the retail shelf. These APS

packages complement existing (but often limited) ERP packages. They

enable consolidation of activities such as long term budgeting, monthly

forecasting, weekly factory scheduling and daily distribution scheduling into

one overall planning process using a single set of data. Leading

manufactures, distributors and retailers and considering APS packages such

as those from 12, Manugistics, Bann, Mercialincs and Sterling-Douglas.

Strategic Decision Support Systems

Store Site Location

Demographics and buying patterns or residents of an area can be used to

compare various possible sites for opening new stores. Today, software

packages are helping retailers not only in their location decisions but in

decisions regarding store sizing and floor spaces as well.

Demographics and buying patterns of residents of an area can be used to compare

various possible sites for opening new stores. Today, software packages are helping

retailers not only in their location decisions but in decisions regarding store sizing

and floor-spaces as well.

VISUAL MERCHANDISING

The decision on how to place & stack items in a store is no more taken on the gut

feel of the store manager. A larger number of visual merchandising tools are

available to him to evaluate the impact of his stacking options. The SPACEMAN

store Suit from AC Nielsen and Modcad are example of products helping in modeling

a retail store design.

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CHAPTER 7:

FOREIGN TOUCH IN INDIAN RETAIL

69

The chief of Marks & Spencer has been making trips to India over the past year.

Global investment bank Warburg Pincus is awaiting the Indian governments

clearance to pick up a 25.1 per cent stake, worth $13 million, in Shoppers Stop.

Dairy Farm international and Jardine Matheson are present here, through tie-ups

with the RPG Group. Fast food major McDonalds have already made a dent in the

marketplace and Indian palates.

The Dubai-based Landmark group is making its presence felt in Chennai through its

lifestyle mega store of over 30,000 sq. ft. landmark is owned by MukeshJagtiani, a

non-resident Indian. Lifestyle International Pvt. Ltd., formed in India recently, is a

wholly-owned subsidiary of the Mauritius-based lifestyle international which, in turn,

is wholly-owned landmark group. In India, according to lifestyle internationals

marketing manager, Roshan Mathew, the target is to have 12 to 16 stores by 2005.

These stores will sell all lifestyle products, barring furniture, under one roof.

70

QUESTIONNAIRE

1. How frequently you visit city mall Kota?

a) Once in a week

b) Twice in a week

c) Monthly

d) Quarterly

2. What is the main attraction of City Mall?

a) McDonald

b) Dominos

c) Fun Cinema

d) Big-Bazar

3. What is the main purpose of your visit to City Mall?

a) Complete shopping under single roof

b) Freak out

c) Window shopping

d) For events

4. What is your average spending on single visit to City Mal?

a) Less than 500

b) 500-1000

c) More than 1000

d) Not specific

5. How many Mall’s in Kota City?

a) 1

b) 2

c) 3

d) 4

6. What is your more loyal to?

a) City Mall

b) Stand alone counters

c) Central city market

d) None

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7. What is the daily footfall in City Mall?

a) Less than 200

b) 300-500

c) 500-700

d) More than 700

8. What is the strength of staff?

a) Approx 500

b) 500-1000

c) 1000-2000

d) 2000-3000

9. How many outlets in there?

a) D

b) D

c) D

d) D

10.What products are most sold in City Mall?

a) Pizza

b) Clothes

c) G

d) g

11.What systems did you useto track and support your progress?

a)

12.How do you monitorand respond to changing market conditions?

72

1. How frequently you visit city mall Kota?

e) Once in a week

f) Twice in a week

g) Monthly

h) Quarterly

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

73

2. What is the main attraction of City Mall?

e) McDonald

f) Dominos

g) Fun Cinema

h) Big-Bazar

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

74

3. What is your average spending on single visit to City Mal?

e) Less the\an 500

f) 500-1000

g) More than 1000

h) Not specific

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

75

4. How many Mall’s in Kota City?

e) 1

f) 2

g) 3

h) 4

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

76

5. What is your more loyal to?

e) City Mall

f) Stand alone counters

g) Central city market

h) None

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

77

6. What is the daily footfall in City Mall?

e) Less than 200

f) 300-500

g) 500-700

h) More than 700

12%

4%

30%

4%

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

78

7. What is the strength of staff?

e) Approx 500

f) 500-1000

g) 1000-2000

h) 2000-3000

10%

20%10%

20%

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

79

8. How many outlets in there?

e) Less than 5

f) 5-10

g) 10-20

h) More than 20

20%

18%

2%

10%

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

80

9. What products are most sold in City Mall?

e) Pizza

f) Clothes

g) Child Items

h) Beverages

15%

20%

5%

10%

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

81

10.What is the main purpose of your visit to City Mall?

e) Complete shopping under single roof

f) Freak out

g) Window shopping

h) For events

12% 28%

400%

600%

Sales

1st Qtr2nd Qtr3rd Qtr4th Qtr

82