PROJECTREPORT

PEARLACADEMYOFFASHION LEVEL1 SUBMITEDBY:

DISHAJAIN PRACHIRATHI MEDHAVINIRAI

CONTENTS
S.NO. TOPIC PAGE NO. 531

1.

Retailoperations
Conveniencestore Departmentstore Discountstore Specialitystore

2.

Retailenvironment
PartA Easyday Foodretailers PartB Internationalretailers

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3335 3653 5477

3. 4.

Homepage References

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ACKNOWLEDGEMENT

Thisreporthasbeengreatlyenhancedbymanycontributionsandsuggestionsof ourfacultywhichincludesMrs.BhavnaChadda,Mr.Sahu,Mrs.DilpreetKaur,and Mr.Malik. Theencouragementandsupportoffamilyandfriendswasalsoinstrumentalin completingthisreport.Especiallywewouldliketoappreciateeachotherswork andsupport.

RETAILOPERATIONS
(MR.GPSAHU)
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CONVEINENCESTORE
Aconveniencestoreisasmallstoreorshopthatmaysellitemssuchassweets, icecream, soft drinks, lottery tickets, cigarettes and other tobacco products, newspapers and magazines, along with a selection of processed food and perhapssomegroceries.Storesthatarepartofgasstationsmayalsosellmotor oil,windshieldwasherfluid,radiatorfluid,andmaps.Oftentoiletriesandother hygieneproductsarestocked,andsomeofthesestoresalsooffermoneyorders and wire transfer services or liquor products. They are often located alongside busyroads,indenselypopulatedurbanneighborhoods,atgas/petrolstationsor near railway stations or other transportation hubs. In some countries most conveniencestoreshavelongershoppinghours,somebeingopen24hours. Differencesfromsupermarkets Althoughlarger,newerconveniencestoreshavequiteabroadrangeofitems,the selectionisstilllimitedcomparedtosupermarkets,andinmanystoresonly1or 2choicesareavailable.Pricesinaconveniencestorearetypicallyhigherthanat asupermarket,massmerchandisestore,orautosupplystore(withtheexception ofthegoodssuchasmilkandfuelinwhichconveniencestorestraditionallydo highvolumeandsometimesuseaslossleaders[citationneeded]). The average U.S. convenience store has a sales area of 2,768 square feet. New storesaverageabout2,800squarefeetofsalesareaandabout1,900squarefeet of nonsales area a nod to retailers recognizing the importance of creating destinations within the store that require additional space whether coffee islands,foodserviceareaswithseatingorfinancialserviceskiosks.Convenience stores also have expanded their offerings over the last few years, with stores become part supermarket, restaurant, andgas station and evenabankor drug store. Internationalsize30008000sqft.whereasIndianstandardacc.5001000sqft. 5

Inandout
"In&Out Convenience Store" is a unique concept where a number of typical household errands are aggregated under one roof for the benefit of the customers. Strategic alliances have been formed with major brand owners and retailers in the country The Indian Petroleum retailing industry is today poised to make giant to provide a wide range of products and services.

strides both in terms of new forecourt retailing opportunities and superior customer offerings at the retail outlet. With the onset of the post APM deregulated scenario, the spirit of competitiveness amongst the petroleum companies augurs well for the consumer with each of the companies adopting innovativewaystocapturealargerpartoftheconsumersmindshare.Withthe emergence of organised retailing in the country and a growing demand from consumers for a superior shopping experience, Convenience Retailing has emergedasakeybusinessareaforpetroleumcompaniesgiventheirwideretail presence, existing customer base and strategically located sites. Convenience needgapshavebeenfeltinvariousfieldsandresearchhasshownthattheurban consumertodayseeksconvenienceinshoppingfortheirbasicrequirementsso that their precious time is reserved for more fruitful pursuits. Petrol retail outlets provide the right framework for setting up convenience retail chains where the consumer has the opportunity of combining shopping with the fuellingoccasion.Petrolstationsarewidelyrecognisedtobeoneofthehighest trafficaggregatorsandretailmajorslikehypermarketssuchasSainsbury,Tesco and Carrefour have added motor fuels in their basket of services for the convenience of their customers. Hence alongwith strategic locations, the availability of footfall in the petrol retail outlets gives petroleum retail companies the competitive advantage. Worldwide, petrol station convenience storeshavedevelopedintoaseriousbusinessinitselfwithcompanieslikeShell, 6

Caltex, BP running their convenience store chains very profitably. All of them have deployed best retail practices in their stores and offer a wide range of servicesincludinglaundry,postalservices,courierservices,fastfoodetc. Realising the importance of a greater understanding of consumers needs and consistentwithitscoreobjectiveofcontinuouslyaddingvaluetoitscustomers through innovative means, Bharat Petroleum has launched its convenience retailing initiative under the In&Out brand. Bharat Petroleum is the 2nd largest oil marketing company in the country with over 6000 retail outlets spread across the length and breadth of the country. The In&Out chain of conveniencestoresisbeingsetupintheurbanmarketsatstrategicallylocated retailoutletsiteswithhighcustomerfootfalls. THE In&Out

NETWORK The In & Out store at Bharat Petroleum petrol pumps, which launched convenience proposition where a number of typical household errands are aggregated under one roof for the benefit of the customers. Today there are more than 240 In&Out stores across India, which bring in unmatched convenience at the petrol station. Strategic allianceshavebeenformedwithmajorbrandownersandretailersinthecountry tofurtherstrengthentheconvenienceproposition. was in

2001, offers a

DIDYOUKNOW? In&Outstoreshaveawiderangeofservicesviz.,ATMsofleadingBanks, Music stores from Planet M and Music World, Beverages from Pepsi, Coffee and snacks from Cafe Coffee Day and Coffee Day Xpress and a variety of impulse buys including confectionery, snacks, convenience foods, toiletries and select range of branded groceries and other FMCG products through exclusive tieups with such FMCG majors like ITC, CadburyandFritoLay. In&Outstoresarethefirsttoopenandlasttoshutintheneighborhood. Customers can use their PetroCard for In&Out shopping and earn valuablePetromiles. In&Outstoresarethelargestorganizedconveniencestoreretailingchain inthecountrywithastandardisedlayoutacrossthecountry,withahigh levelofaestheticsandanambienceaimedatderivingmaximumvaluefor ouralliancepartnersandofferingconsumersarevolutionarysolutionfor attendingtotheirdailychores. The In&Out stores offer Western Union Money Transfer facilities in Mumbai Money available all the time from your near and dear ones abroadatourstore In&Out stores offer all cellphone recharge cards, and today with the launch of echarge we are the first in the country to offer electronic chargingofecardsnowyoucanneverloseyourprepaidcardrecharge voucher HavePepsiatIn&Outanytime;ifyouwantsomethingmoreindulgein Coffee&SnacksfromCAFECOFFEEDAYatselectIn&Outstores. IfyouwantthelatestmusiccometotheSatellitesfromPlanetMand toUnpluggedfromMusicWorld,nexttoyourhomeandgettopquality musiccassettesandCDs. Pick the latest issue of India Today, Outlook and any other magazine at thestoretoday.

GENERATINGEXCITEMENT If you have come to our store in the last few weeks, you would have noticed somepioneeringinitiativestoattractfuelcustomersandnonfuelcustomersat ourstore. BPCListhefirsttopioneertheconceptofHoodtalkersinIndiaina few select stores in Hyderabad, Mumbai, Delhi, Jaipur, Kolkata, Bhubaneswar, Chennai, Bangalore, Coimbatore, Ernakulam and Barodaaconceptwidelyimplementedbyglobaloilmajors. For the convenience of our fueling customers who have very little time, we have mobile trolleys at the fuel outlet which will bring conveniencetoyourcar We have implemented Instore branding across large part of our networktohelpyoulocatewhatyouwanteasily AllpurchasesarethroughcomputerizedbillingthroughIndiaslargest retailinformationnetworktohelpusgettheproductsyouwant Watchoutforregularpromotionsthataregoingtoberunacrossyour citynetworkinthenexttwoweeks!Theoffersarealwaysastealand ouralliancepartnerstooregularlychipinwithexclusivepromotions tomaketheshoppingexperiencetrulyconvenientandexciting!

 OUR NEW ALLIANCES :ECHARGEOver the past two years, one of the key learnings has been the high level of customer acceptance of the cellphone offeringinourIn&Outstores.Consistentcustomerfeedbackhasindicatedthe high level of convenience perception in having made cellphone recharge cards available at the In & Out stores. With the cellular market showing manifold growth, cellphones have become a way of life and our endeavour has been to make recharge cards easily available for our customers. With our stores operating 7 days a week through extended working hours, we believe that we wouldbeinapositiontomaximizeconvenienceinthiscategory.EChargeisa complete system and service provider offering electronic delivery system for the prepaid product industry through electronic terminals. This innovative system vertically integrates the distribution value chain by linking mobile operatorswiththeretailchannel.ThisserviceissynergisticwithBPCLsoverall strategic objective of leveraging technology for optimizing customer offerings and by introducing the ECharge service through the In & Out stores, the customer would have the convenience of purchasing recharge cards of the cellular company and denomination of his choice at any point of time. The service optimizes customer convenience, ensures complete security of the prepaid PINs and is highly scalable. The technology can also be leveraged to introduceotherproductslikemovietickets,sportingticketsetcandserviceslike BillPaymentsetc.WewouldalsobeworkingcloselywithEChargeandwiththe mobile operators to come out with innovative consumer offers and marketing activities to create maximum value for our customers. We are happy to launch thisservicethroughourstoresinMumbai,DelhiandHyderabad. Tradeareaanalysisandmarketareaanalysisofconvenientstore.(inand outG.k.part1) Thetypeoftradeareainconvenientstoreisprimarytradearea. 1) Demographic

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a) Gendermaleandfemale b) Age2135yrs. c) Maritalsingle d) DensityAverageareaandaveragepopulation 2) Sociographic a) Typesoffamilynuclear b) Familysize13 c) Religion/SocialclassUppermiddleclass 3) Econography a) Incomehigherincomegroup b) OccupationworkingclassmainlyBPOs. c) EducationEducatedProfessionals 4) Psychography a) AttitudeBrandconscious b) BeliefGoodquality

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DEPARTMENTSTORE
Adepartmentstoreisaretailestablishmentwhichsatisfiesawiderangeofthe consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, home appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys, and sporting goods. Department stores are usually part of a retail chain of many stores situated around a country or several countries. Very large stores offering a huge assortmentof"soft"and"hardgoods;oftenbeararesemblancetoacollectionof specialty stores. A retailer of such store carries variety of categories and has broad assortment at average price. They offer considerable customer service. Departmentstoresaregeneralmerchandisers.Theyoffertothecustomersmid to highquality products. Though they sell general goods, some department storessellonlyaselectlineofproducts.ExamplesinIndiawouldincludestores like"Westside"and"Lifestyle"populardepartmentstores. LIFESTYLE STORE LifestyleenteredinIndiain1999 and in a little over a decade has come to be recognized amongst leading retail companies in the country. Positioned as a trendy, young,colorfulandvibrantstore, Lifestyle offers consumers not justtheeaseofshoppingbutalsoprovidesforanenjoyableshoppingexperience. Each Lifestyle store from Lifestyle International (P) Ltd. brings together five conceptsunderoneroofApparel,Footwear,ChildrenWear&Toys,Household & Furniture and Health & Beauty; offering a convenient onestop shop and a 12 DEPARTMENT

choice of over 250 national & international brands. The Group has also introduced Home Centre, a one stop destination for affordable furniture, home dcorandsoftfurnishingthattrulyrepresentsstyle,comfortandindividuality. InkeepingwiththeGroup'straditionofmakingeveryshoppingexperienceeven more rewarding and memorable, The Inner Circle Landmark Group's Loyalty program allows members to enjoy exclusive benefits and privileges such as rewardpointsandexcitingoffers. Lifestyleisthedepartmentstorethatispopularamongyoungercustomers(18 25years). LIFESTYLEDEPARTMENTALSTORENEIGHBORHOODBUSINESSES Ram Ratna Group : Exporters Dyes, Dyestuffs & Intermediates, Worli Rajkamal Machine Corpration : Machinery & Parts Manufactures Printing,Worli Rajkamal Hse Of Tailaring Material : Thread Manufacturers & Suppliers,LowerParel LIFESTYLEMEN 1) FORMALS WILLS, PHILIPPE, HEUSEN, CODE, AVENUE, BLACKBERRY, GIOVANNI, THEME, LPYOUNG,TURTLE. LOUIS VAN ARROW, PARK RajeshSteelCentre:SteelProducts,LowerParel

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2) CASUALS BENETTON, PUMA, JUST NATURAL, FAHREINHEIT, ADIDAS, NIKE, TBASE, NEVA, US POLO, TANTRA, PROLINE, DELURGE, BERGE, KAPPA, KARMA. 3) DENIMS LEVIS, SPYKAR, FORCA, PEPE JEANS, LEE, WRANGLER, FLYING MACHINE,KILLER,LEECOOPER 4) FORMALETHNIC MANYAVAR,MELANGE 5)ACCESORRIES TIESZODIAC/VANHEUSEN/SATYAPAUL BELTSLEBUCK/EATHERPLUS/BULCHEE HANDKERCHIVESVANHEUSEN/ZODIAC FORCAINNERWEAR. WOMEN 1)FORMALS: ALLENSOLLY,CODE,VANHEUSEN. 2)DENIMS LEVIS,PEPJEANS,LEE,KRAUS,SIGNATURE,XPOSE 3)ETHNIC BIBA, NEERUS, LEFFET, MELANGE, W, MAAHI, HARRA, ASVARAH, PRAFFUL, SPAN. 4)LINGRIE TRIUMPH, ENAMOR, AMANTE, JOCKEY, BWITCH, SWEET

DREAMS9NIGHTWARE),LOVABLE,JUS,ADIRA 14

5)CASUAL FOREVER NEW, BOSSINI, 109F, GINGER, REMANIKA, BENETTON, FAME FOREVERAND. 6)PREMIUMINTENATIONAL TOMMY HILFIGER, ESPRIT, CALVIN KLEIN JEANS, FRENCH CONNECTION, GIORDANO LIFESTYLEPERSONALGROOMING 1) Watches GShock,Tissot,Tanishq,Titan,fastrack,DKNY,Diesel.Esprit. 2) Pens Sheaffer,TommyHilfiger,Cross 3) Sunglasses Fastrack, Fossil, RayBan, Calvin Klein, Polarois, Police, Tommy Hilfiger, Ferari,Guess,Idee. 4) Jewellery Asmi,Ddamas,Cygnus,Diti,Aspen,Estelle,Nakshatra,Gili,Nirvana,Real effect,Viola. 5) FashionAccessories Sarahsaccessories,Tribalzone,Ginger,ToniQaccessories. 6) Fragrances Hugoboss,Lacoste,Ca

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LifestyleDepartmentstoreinnoida(GreatIndiaPlace)Tradeareaanalysis andmarketareaanalysis: 1) DEMOGRAPHIC a) GenderFemale&Male b) Age1845yrs. c) MaritalStudents,married,single. d) DensityLessAreaandmorepopulation 2) SOCIOGRAPHIC a) TypesoffamilyJointandnuclearboth. b) Familysize26 c) Religion/socialclassuppermiddleclass. 3) ECONOGRAPHY a) IncomeHighincomegroup b) OccupationProfessionalandmixedi.e.businessandserviceclass c) EducationEducatedprofessionals 4) Psychography a) AttitudeBrandconscious b) Beliefgoodqualityandtrendy. http://www.lifestylestores.com/index.html

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DISCOUNTSTORE
A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department storesofferawideassortmentofgoods;othersspecializeinsuchmerchandiseas jewelry, electronic equipment, or electrical appliances. Discount stores are not varietystores,whichsellgoodsatasinglepricepointormultiplesthereof(1, $2,etc.).Discountstoresdifferfromvarietystoresinthattheysellmanyname brand products, and because of the wide price range of the items offered. Discount stores are more popular in the United States than other countries. Following World War II, a number of retail establishments in the U.S. began to pursue a highvolume, lowprofitmargin strategy designed to attract price consciousconsumers. According to India Retail Report prepared by Images, discount stores are expected to grow 3040 per cent every year. Of the total organized apparel, footwear and accessory retail market of Rs 26,400 crore (Rs 264 billion), discountretailingalreadyaccountsforRs11,880crore(Rs118.80billion),or45 percent.AnalystssaidthissegmentwouldeasilybecomeaRs26,000crore(Rs 260billion)marketinthenextthreeyears. Highervolumescompensateforthelowermargins.NaimishDave,director,OC& CStrategyConsultants,said,"ifyousell100shirtsadayatnormalstoresandsell 200 shirts even with a 50 per cent discount, the volumes take care of lower margins. MEGAMART Megamartcurrentlyhasa150,000sqftofretailspace,whichwouldbescaledup to 550,000 sq ft in five years, Suresh added. We have been growing at a compounded annual growth rate of 57% in the last four years," Suresh said addingthecompanyiskeentoleverageArvind'sstrengthintheapparelspace. The company aims to increase its Megamart store network to 400 from the present175byFinancialYear(FY)13andgrowBigMegamartchaintoabout15 17

inthenexttwoyears.Atpresent,ithasfiveBigMegamartoutletsinBangalore, Mumbai, Pune and Chennai. While Megamart is a smallformat (3,000 sq ft) men's apparel store, Big Megamart is a largevalue retail outlet spread across 20,00040,000sqft.TheCentreopenedatValasaravakkaminthecity,designed by worldrenowned design consultancy firm JHP from London, would offer an entirearrayoflifestyleitemsfrom130brandsrangingfrommen's,women'sand kidswear,accessories,luggage,footwearandkitchenwares.

''The main aim is to provide a true international shopping experience for the discerningpeopleofChennaiatprices30to40percentlowerthantheexisting players like Lifestyle and Shopper's Stop,'' Lalbhai said. The Outlet Centre concept operates with the objective of grouping of a large number of brand outlet stores at the same location. An Outlet store, offers their merchandise to consumers at reduced prices. The model offers a wide range of highquality brandnamegoodsinaconcentratedspaceatvalueprices. The discounts continue because the products are marketing seconds. In other words, they are not fresh from the factory, but have remained on other store shelvesforalittletoolong.Megamart,ofwhichthereare20acrossthecountry andaccountsforabout15percentofArvindBrands'sales,willalsocreateand

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stockbrandsofitsown. This includes a gamut of international & domestic brands Arrow, Excalibur, Lee, Wrangler, Flying Machine, Newport etc. Megamart is the retail wing of Arvind Brands that offers all these brands and successful Pvt Brands at unbelievablevalueprices.CoreproductofferingBrandedapparel,accessories, footwear n home enhancers Fashion quotient Formal n Casual wardrobe solution for Men, Women n Kids Megamarts 122 Small Format, 3.50 L sqft, Company owned stores across 45 cities 4 Large Format, 1.30 L sqft, Company owned store in Chennai, Pune, Blore n Faridabad. Price positioning Value retailing.

Singleunit:2000000130,00,000. Requiredcapitalinvestment:3035lacks Requiredfloorarea:15oosq,ft Category:Retailfranchisee 19

TextileandbrandedapparelmakerArvindsvalueretailformatchainMegamart isexpectedtocontribute3035percenttothecompanysrevenueand2025per cent to the net profit by 201112 (AprMar), J. Suresh, chief executive officer (brandsandretail)ofArvindBrands,saidtoday. Thecompanycurrentlyhas100Megamartstoresspanning3,000sqft,andtwo Megamart Outlet Centres, which are large format stores spread over 40,000 60,000sqft. 5mythsaboutdiscountstore: 1) UpscaleAmericansavoiddiscountstores. 2) Thediscountshopperisolder. 3) Consumers are highly critical of the shopping environment in discount stores. 4) D.S have been unable to convey an image of offering a good selection of qualityapproval. 5) Discount stores customers lack confidence in their ability to judge clothingbythequalityoffabric,workmanship,andstyling. Discountershavesucceededin: 1) Establishingthemselvesastheprice/volumeretailoutlet,particularly amonglowerandmiddleclassAmericans. 2) Capturingthelionsshareoftraffic. 3) Overcomingimagenegativessuchasselection,quality,andservice. 4) Developingayoungfranchise. 5) Gainingmarketshareinchildrenswearduringababyboomlet. Challengesfacingdiscounters 1) Convertingshareoftrafficintoshareofdollars.

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2) Recapturingtheirshareofwomensandmensapparel. 3) Keepingyoungconsumersastheyageandhavemoneytospend. 4) Findingtheirnicheinthecompetitivearenaoflargercities. 5) Capturingafairshareofthegrowingseniormarket. Megarmartwomenswear a) Ethnicwear Karigari,W,Nayans,Sushilas,Aurelia,Huur,Neerus,Zariwala,Estyle, CharmsbyPrafful,Leisha. b) Westernwears Cherokee, Allen Solly, Scullers, Auburn Hill, Expozay, Tantra, Miss Players,GlobalTrendz c) Lingrie Amante,Lovable,CityGirl,Juliet Megamartmenswear 1) Formals Louis Philippe, Ruggers, Van Heusen, Peter England, Excalibur Elitus, AuburnHill,PanAmerica,ParkAvenue,Celebrity,Options,WillsLifestyle 2) Casuals Cherokee, US Polo, Scullers, Farenheit, Indigo Nation, Allen Solly, Parx, Enryca, V., Color Plus, Classic Polo, Lerros, Giordano, Dockers, Kmark, Tantra,Prostyle,AllenSollyYouth, 3) Ethnicwear Manu,Karigari,Yash 21

4) suitsandblazers Parx,AuburnHill,Excalibur,Elitus,Belmonte,Shapes,ThomasScott,Wills Lifestyle,JohnPlayers,NottingHill 5) innerwear VIP,Hanes,Skinn,Euro Megamart discount store in Mahipalpur trade area analysis and market areaanalysis: 1) Demographic a) GenderFemaleandmale b) Age1830yrs. c) Maritalmarried d) Densitylessareaand 2) Sociographic a) Typesoffamilynuclear b) Familysize24 c) Religion/socialclasslowerandmiddleclass. 3) Econography a) incomelowerincomegroup b) occupationserviceclass c) educationgraduatesandprofessionals. 4) Psychography a) AttitudePriceconscious b) Belieflowerpricesandoptimumutilization.

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SPECIALITYSTORES
Specialtystores(British:Specialityshops)aresmallstores,whichspecialize,in aspecificrangeofmerchandiseandrelateditems.Moststoreshaveanextensive depth of stock in the item that they specialize in and provide high levels of service and expertise. The pricing policy is generally in the medium to high range, depending on factors like the type and exclusivity of merchandise and ownership,thatis,whethertheyareowneroperatedorachainoperationwhich hastheadvantageofbulkpurchasingandcentralizedwarehousingsystem.They differ from department stores and supermarkets, which carry a wide range of merchandise. Haldiram Bhujiawala is a Rs.500crore ($100 million) entity with two large shops in Kolkata's key districts and its coowner, now convicted for murder,wantedtosetupmultistoriedfoodmallsnearthetwooutlets. Specialty Stores of India and its subsequent successful operation is credited to IndiaEconomicSystemreformearnestinJuly1991.SpecialtyStoresofIndiaisat its nascent stage and heading for a stupendous growth in the near future. The Central Government has ultimately realized the need to remove the insulation outoftheIndianretailsector.SkepticsopinethatopeningupoftheIndianretail industrywouldjeopardizethewayofincomeforthepoorsmallretailers.Infact, theactualstoryisquitehearteningforthesmalltimeretaileranditsvendors. Both,IndianandinternationalmarketleadersarepouringintotheIndianmarket to encash on the specialty stores retail boom. In fact, some industry leaders operatinginothersectorsarealsodiversifyingintospecialtystoressector. SpecialtyStoresofIndiathekeyadvantagesare: Ranks5thonglobalretaildevelopmentindex It is the second fastest growing economy of the world to be the third largesteconomyintermsofGDPinnextfewyears. Itrankshighamongstthetop10FDIdestinationsoftheworld FastestgrowingtouristmarketinAsia Worldbankstates,Indiatobeworld'ssecondlargesteconomyafterChina bytheyear2050

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StableandinvestorfriendlyCentralGovernmentatthehelmofaffairs IntroductionofValueAddedTaxorVATandtaxreforms Highdegreeofprofessionalismandcorporateethics Excellent Investment opportunities in Indian retail sector and in allied sectors;sureandhighreturnsoninvestments To invest US $130 billion for the development of infrastructure, by year 2010 To attract US $ 10 billion FDI for infrastructure development by the endofyear2008 Bullishstockmarkets Hordes of foreign investors are thronging in to invest in Indian retail markets HighlyeducatedEnglishspeakingyoungworkforce Vibrantandmulticulturedcities Hugeopportunityexists,especiallyinsemiruralandruralareas Tilldatethesecondlargestemployerafteragriculturesector,forthehuge semiskilledsegmentoftheIndianpopulation Offershighestshopdensityinthewholeworld Having almost 1,20,000 shops across the length and breadth of the country Inanascentstageofdevelopmentasanorganizedindustry

HALDIRAMSBHUJIAWALA Inthemid1990s,Haldiramsaddedbakeryitems,dairy products,sharbatsandicecreamstoitsportfolio.Atthe beginning of the 21st century, Haldirams products reachedmillionsofconsumersnotonlyinIndia,butalso in several other countries, including the US, Canada, UK, UAE, Australia, New Zealand,SriLanka,Nepal,JapanandThailand. Analysts felt that the growing popularity of Haldirams products could be attributed to its constant focus on all the elements of the marketing mix. An

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article posted on the website apeda.com[1] quoted some of the companys strengths, To sustain in the competitive market, Haldirams has endeavored stress on its product quality, packaging, shelf life, competitive price with a specialemphasisonconsumerssatisfactionanditslingeringtasteisamongstthe bestavailableintheworld. Haldiramsofferedawiderangeofproductstoitscustomers.Theproductrange includednamkeens,sweets,sharbats[1],bakeryitems,dairyproducts,papad[2] andicecreams.However,namkeensremainedthemainfocusareaforthegroup contributingcloseto60%ofitstotalrevenues. Byspecializinginthemanufacturingofnamkeens,thecompanyseemedtohave created a niche market. While the Nagpur unit manufactured 51 different varietiesofnamkeens,theKolkataunitmanufactured37andtheDelhiunit25. The raw materials used to prepare namkeens were of best quality and were sourcedfromalloverIndia. Haldiramssoughttocustomizeitsproductstosuitthetastesandpreferencesof customers from different parts of India. It launched products, which catered to the tastes of people belonging to specific regions. For example, it launched Murukkus, a South Indian snack, and Chennai Mixture for south Indian customers. Similarly,HaldiramslaunchedBhelpuri,keepinginmindcustomersresidingin western India. The company offered certain products such as Nazarana, Panchratan,andPremiumonlyduringthefestivalseasoningiftpacks.These measures helped Haldirams compete effectively in a market that was flooded withavarietyofsnackitemsindifferentshapes,sizesandflavors. Marketingmix PLACE Haldirams developed a strong distribution network to ensure the widest possible reach for its products in India as well as overseas. From the manufacturing unit, the companys finished goods were passed on to carrying

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andforwarding(C&F)agents.C&Fagentspassedontheproductstodistributors, who shipped them to retail outlets. While the Delhi unit of Haldirams had 25 C&Fagentsand700distributorsinIndia,theNagpurunithad25C&Fagentsand 375distributors. Haldirams also had 35 sole distributors in the international market. The Delhi and Nagpur units together catered to 0.6 million retail outlets in India. C&F agentsreceivedacommissionofaround5%,whiledistributorsearnedmargins rangingfrom8%to10%.Theretailoutletsearnedmarginsrangingfrom14%to 30%. Atthe retail outlet level, marginsvaried according to theweight ofpacks sold. Retailers earned more margins ranging from 25% to 30% by selling 30 gms pouches(pricedatRs.5)comparedtothepacksofhigherweights.Apartfromthe exclusive showrooms owned by Haldirams, the company offered its products through retail outlets such as supermarkets, sweet shops, provision stores, bakeriesandicecreamparlors.Theproductswerealsoavailableinpublicplaces suchasrailwaystationsandbusstationsthataccountedforasizeableamountof itssales. Haldiramsproductsenjoyedphenomenalgoodwillandstockistscompetedwith each other to stock its products. Moreover, sweet shops and bakeries stocked Haldirams products despite the fact that the companys products were competingwiththeirownproducts. HaldiramsalsooffereditsproductsthroughtheInternet.Thecompanytiedup withindiatimes.com,awebsiteownedbytheTimesofIndiagroup[1]tosellits productsovertheInternet.Haldiramsproductscouldbeorderedthroughahost of other websites in India and abroad. Giftstoindia.com, giftssmashhits.com, tohfatoindia.comandchannelindia.comenabledpeopleresidingabroadtosend HaldiramsgiftpackstospecifiedlocationsinIndia. Regionspecificwebsitesenabledpeopletosendgiftstospecifiedregions.These include indiamart.com (Delhi and surrounding areas), mumbaiflowersgifts.com (Mumbai),andchennaiflowersgifts.com(ChennaiandotherpartsofTamilnadu). Thesewebsitescompetedonissuessuchasdeliverytime,whichvariedbetween 48 hrs to one week, delivery charges (some websites offered free delivery of

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products)andvalueaddedservices(likesendingpersonalmessagesalongwith thegiftpacks). PRODUCTS Haldiramsofferedawiderangeofproductstoitscustomers.Theproductrange includednamkeens,sweets,sharbats[1],bakeryitems,dairyproducts,papad[2] andicecreams.However,namkeensremainedthemainfocusareaforthegroup contributingcloseto60%ofitstotalrevenues. Byspecializinginthemanufacturingofnamkeens,thecompanyseemedtohave created a niche market. While the Nagpur unit manufactured 51 different varietiesofnamkeens,theKolkataunitmanufactured37andtheDelhiunit25. The raw materials used to prepare namkeens were of best quality and were sourcedfromalloverIndia. Haldiramssoughttocustomizeitsproductstosuitthetastesandpreferencesof customers from different parts of India. It launched products, which catered to the tastes of people belonging to specific regions. For example, it launched Murukkus, a South Indian snack, and Chennai Mixture for south Indian customers. Similarly,HaldiramslaunchedBhelpuri,keepinginmindcustomersresidingin western India. The company offered certain products such as Nazarana, Panchratan,andPremiumonlyduringthefestivalseasoningiftpacks.These measures helped Haldirams compete effectively in a market that was flooded withavarietyofsnackitemsindifferentshapes,sizesandflavors. SUPPLYCHAINOFHALDIRAMS: SUPPLY CHAIN OF HALDIRAMS Manufacturing unit C&F Agents Distributors RetailersConsumers.50C&Fagentsand1035distributorsinIndiaRetailoutlets such as supermarkets, sweet shops, provision stores (Goodwill : Pull strategy : Stockists Compete to hold the brand) Tie up with www.indiatimes.com with delivery time of 48 hours to one week and value added services (personal messages

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 PRICING Haldirams offered its products at competitive prices in order to penetrate the huge unorganized market of namkeens and sweets. The companys pricing strategy took into consideration the price conscious nature of consumers in India.Haldiramslaunchednamkeensinsmallpacketsof30grams,pricedaslow asRs.5.Thecompanyalsolaunchednamkeensinfivedifferentpackswithprices varyingaccordingtotheirweights(ReferTableI). TABLEIPRICERANGEOFNAMKEENSOFFEREDBYHALDIRAMS PACKWEIGHT PRICE(inRs) Source:ICMR The prices also varied on the basis of the type of namkeens and the raw materialsusedtomanufactureit.Thecostofmetallizedpacking[3]alsohadan impactontheprice,especiallyinthecaseofsnackfoods.Thecompanyrevised thepricesofitsproductsupwardsonlywhentherewasasteepincreaseinthe rawmaterialcostsoradditionaltaxeswereimposed. PROMOTION Haldiramsproductpromotionhadbeenlowkeyuntilcompetitionintensifiedin the snack foods market. The company tied with Profile Advertising for promotingitsproducts.Consequently,attractiveposters,brochuresandmailers were designed to enhance the visibility of the Haldirams brand. Different varietiesofpostersweredesignedtoappealtothemasses. The punch line for Haldirams products was, Always in good taste. Advertisements depicting the entire range of Haldirams sweets and namkeens were published in the print media (magazines and newspapers). These advertisementshadcaptionssuchasmillionsoftonguescantgowrong,What areyouwaitingfor,Diwali?andKeepingyourtastebudsontheirtoes. To increase the visibility of the Haldirams brand, the company placed its hoardings in high traffic areas such as train stations and bus stations. Posters

28

were designed for display on public transport vehicles such as buses, and hoardings, focused on individual products were developed. Captions such as yeh corn hain (this is corn), chota samosa big mazaa (small samosabigentertainment),yeh Kashmiri mix khoob jamega (this namkeen item will gel well) and oozingwithtaste(forRasgoolas) promotedindividualproducts.For those customers who wanted to know more about Haldirams products, special brochures were designed which described the products and gave information about the ingredients used to make it. Mailers were also sent to loyal customers and importantcorporateclientsasatokenofappreciationfortheirpatronage. Packaging was an important aspect of Haldirams product promotion. Since namkeenswereimpulsepurchaseitems,attractivepackagingindifferentcolors influenced purchases. Haldirams used the latest technology (food items were packedinnitrogenfilledpouches)toincreasetheshelflifeofitsproducts.While the normal shelf life of similar products was under a week, the shelf life of Haldiramsproductswasaboutsixmonths.Thecompanyprojectedtheshelflife ofitsproductsasitsuniquesellingproposition.Postershighlightingtheshelflife of its products carried the caption six months on the shelf and six seconds in yourmouth.Duringfestivalseason,Haldiramsproductsweresoldinattractive lookingspecialgiftpacks. The showrooms and retail outlets of Haldirams gave importance to point of purchase (POP) displays. Haldirams snacks were displayed on special racks, usuallyoutsideretailoutlets.Theshowroomshadsignboardsdisplayingmouth watering delicacies with captions such as Chinese Delight, Simply South, The King of all Chats[3]. Posters containing a brief account of the history of

29

Haldirams, along with pictures of its products, were also on display at these showrooms. Haldirams also diversified into the restaurant business to cash in on its brand image.ThecompanyestablishedrestaurantsinNagpurandDelhi.Therestaurant at Nagpur devised an innovative strategy to increase its business: It facilitated people who were traveling by train through Nagpur station to order food from places where stockists of Haldirams Nagpur unit were located. The customers couldorderforlunch/dinnerbysendingademanddraft(DD)orchequetothe Nagpur unit or giving the same to specified local distributors belonging to the Nagpur unit. Along with the DD/cheque, customers had to provide information suchasthenameofthetrain,itslikelytimeofarrivalatNagpur,theirnamesand coachandseatnumbers. HaldiramsrestaurantsinDelhialsousedinnovativewaystoattractcustomers. The restaurant located at Mathura road had special play area for children. To catertoNRIsandforeigntourists,whohesitatedtoconsumesnackfoodssoldby the roadside vendors since it was not prepared in a hygienic manner, the Haldirams restaurant located in South Delhi used specially purified water to make snack foods including pani puri and chat papri[4] . These promotional strategieshelpedHaldiramstocompeteeffectivelywithlocalrestaurantchains such as Nathus, Bikanerwala and Agarwals and with western fast food chains suchasMcDonaldsandPizzaHut. Specialty trade area analysis and market area analysis Haldirams bhujiawala(southexpart1) Thetypeoftradearea,ofaspecialtystoreiscalledsecondarytradearea. 5) Demographic e) GenderFemaleandmale f) Age2140yrs g) MaritalMarried,single h) Density

30

6) Sociographic d) Typesoffamilyjointfamily e) Familysize46 f) Religion/Socialclassuppermiddleclass 7) Econography d) IncomeHighincomegroup e) OccupationBusinessclass/Professionals f) EducationEducatedProfessionals 8) Psychography c) AttitudeBrandconscious d) BeliefVerygoodquality

31

RETAILENVIRONMENT
(Mrs.DilpreetKaur)
32

(PARTA)
EASYDAY
In its first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab,Haryana,Rajasthan,UttarPradeshandNewDelhi.Inaddition,italsohas launched three compact hyper stores called Easy Day Market in Punjab. The companyhasdeliberatelyfocusedonnorthIndiainitsfirstphaseofoperations inanefforttoconsolidatepresenceinonemarket,beforeexpandingtoanother region.Eachstoreisabout2,500to4,500squarefeetinsizeandisprojectedas one stop shop for daytoday family requirements such as groceries, personal careandhouseholdproducts. ProductRangeinEasyDaystores: Bakeryproducts FoodandBeverages Home DairyProducts Frozen Vegetarian, NonVegetarian [Meat] Chilled Vegetarian Grains&Pulses MeatandPoultryItems Allthethreestoresaresinglefloorstoreswithcashcounterandbakerysection at the entrance. Each category of the product was marked separately. Products were effectively displayed with price tags. In Easy Day stores we found that and Non & PersonalCare

33

Home&PersonalCare[Toothpaste,Soap,etc]andFood&Beverages[Pepsi, FruitJuice,Cereals]aresoldatadiscountbetween1%to5%only. GreatValuePrivateLabelBrand: ThecompanyhasintroduceditsownprivatelabelunderthebrandnameGreat Value. Most items are in the grains and pulses categories. With increasing number of retailers, discount is what most consumers look for.

Eachstorehas1215employeesincludingastoremanagerwithoutanygender of age bias. The company has also established "Bharti Academy of Retail" in associationwithGlobalRetailSchoolofChandigarhforimpartingtrainingforthe retailbusiness. Easy Day, the hypermarket chain by Bharti Retail has opened its first king size super specialty hypermarket over an area of 50,000 square feet, one of the largestinnorthIndiathatwillprovideanexclusive&costcompetitiveproduct mix with the largest choice of brands under various categories, leaving its customers with umpteen options to choose from along with distinct signatures for convenient shopping. The Hypermarket is well equipped with the latest technology, it is equipped with the Bar Code Systems & machines at various placesinthemarketthathelpcustomerscheckbarcodesthemselves.

34

ButaspertheIndiancontexteasydaywillfallinthecategoryofaSupermarket. STORELOCATIONS Easydayismostlylocatedinmainmarketsofrespectiveareas.Forexample

Easy Day Location Easy Day Location - B 3/178, GRD FLR, Opp Cafe Coffee Day, Janak Puri, Delhi 110058 - L 29, Ramesh NGR, Kirti Nagar, Delhi 110015

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 MAJORINDIANFOODRETAILERS
S.NO. FOOD RETAILER Reliancefresh PARENTCOMPANY FORMAT

1.

RelainceIndustriesLtd.

Convenientstore format Supermarket

2.

Foodbazaar

PantaloonsRetail(India) Ltd. RPG

3.

Spencers

Hyperstores Destinationstores Supermarket

4.

Foodworld

Foodworldfrom1999

5.

Bigapple

ExpressRetailSerivcesPvt. Ltd. DCMShriramConsolidated Ltd.(DSCL) TATA

Supermarket

6.

Hariyalikisan bazaar Kisansansars

Ruralagricultural supermarket Ruralretailchain

7.

8.

Chaupalsagar

ITC

Ruralretailchain

9.

Khushali bazaar Shakti

TriveniEngineers& IndustriesLtd. HUL

Superstore

10.

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1.RELIANCEFRESH
RelianceFreshis the convenience store of the format, retail of which forms part business

RelianceIndustriesofIndia,whichisheadedbyMukeshAmbani.Reliance plans to invest in excess of Rs25000 crores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples,groceries,freshjuicebarsanddairyproducts. AtypicalRelianceFreshstoreisapproximately30004000squarefeetand caterstoacatchmentareaof23km.

2.FOODBAZAAR
FoodBazaarasupermarketchainthatblendsthelook,touchandfeelofIndian bazaarswithaspectsofmodernretaillikechoice,convenienceandquality. FoodBazaarinvitesyouforashoppingexperience,uniquebyitsambience. At Food Bazaar you will find a hitherto unseen blend of a typical Indian Bazaar and International supermarket atmosphere.

37

 FlaggedoffinApril02,FoodBazaarisachainoflargesupermarketswitha difference, where the best of Western and Indian values have been put togethertoensureyoursatisfactionandcomfortwhileshopping. The western values of convenience, cleanliness and hygiene are offered throughprepackedcommoditiesandtheIndianvaluesof"SeeTouchFeel" are offered through the bazaarlike atmosphere created by displaying staplesoutintheopen,allatveryeconomicalandaffordablepriceswithout anycompromiseonquality. Thebestofeverythingofferedwithasealoffreshnessandpuritywilldefinitely make your final buying decisionaloteasier.

3.SPENCERS
Spencer'sfocusesonverticals likefreshfruitandvegetables, food and grocery, personal care, garments and fashion accessories, home and office

38

essentials,electricalandelectronics.Establishedin1996,Spencer'shasbecome a popular destination for shoppers in India with hypermarkets and convenient storescateringtovariousshoppingneedsofitslargeconsumerbase.

Operations

Spencer'shasretailfootageofapproximately1millionsquarefeetandover220 Spencer's stores in 35 cities. The company operates through the following formats: TheSpencer'shyperstoresaredestinationstores,ofmorethan15,000sq. ftinsize.Theyoffereverythingunderoneroof.Themerchandiseranges from fruits & vegetables, processed foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion accessories, consumerelectronics&electricalproducts,homedecorandneeds,office stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUsacross35,000items. The Spencer's stores are neighborhood stores ranging from 1500 less than15000sq.ft.Thesestoresstockthenecessaryrangeandassortment infruitandvegetables,FMCGfoodandnonfood,staplesandfrozenfoods and cater to the daily and weekly topup shopping needs of the consumer.

AuBonPain

SpencersRetail,hastiedupwithAuBonPain,theBostonbasedfastcasual dining and bakery caf chain with more than 200 outlets in the USA, South Korea, Taiwan and Thailand. A joint venture has been formed between SpencersRetailandVarinNarulawhichwouldbetheMasterFranchiseeof Au Bon Pain in India. Varin is the Director & Promoter of Au Bon Pain, Thailand. The outlets will offer the choicest of healthy and nutritious food, bakeryproductsandbeveragesinarelaxedandcasualenvironment.

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BeverlyHillsPoloClub
Spencers Retail, has signed an exclusive tieup with the renowned apparel brand Beverly Hills Polo Club. Beverly Hills Polo Club evokes casual, relaxed yet affluent and elegant Southern Californian lifestyle. It presents product categories intune with its image viz TShirts, polos, sweat shirt & sweat pants, casual shirt & trousers, denims, winter wear, eyewear and watchesformenandwomen.Formalshirts&trousersareanaddedcategory in the menswear segment. Spencers strategically develops it for the Indian marketwithfineproductattributesthatmakesfashion,affordable.

4.FOODWORLD

Foodworld, previously known as Spencer's Daily, is a chain of supermarket stores.ItwasstartedinMay1996asadivisionofSpencer&Co,apartoftheRPG Group. In August 1999 it became a separate company. Currently it operates 67 storesinBangalore,Hyderabad&Chennai. TheFoodWorldbrandcurrentlyoperatesinfourstoreformats. FoodworldSupermaketstore FoodworldGourmetstore FoodworldSuperstore FoodworldExpressstore FoodworldSupermaketstore FoodWorldSupermaketstoreistheMainformatstorewith30005000sqftsize.

40

ItOperatesasaregularsupermarket. FoodworldGourmetstore FoodworldGourmetstoreisanewconceptstorewith2,800sqft(260m2)size inBangalore,India.TheStorecaterstocustomersseekingaselectionofGourmet products.Availableinstoreareproduceandaselectionofinternationalfoodand beverageitemssourcedbothfromdomesticandinternationalsuppliers. FoodworldSuperstore Foodworld Superstore is the company's Large store format. Spanning over 15,000sqft(1,400m2),currentlyonlyonestoreexistsinthecityofHyderabad. Alongwiththeextensivegroceryrangeandbakeryproducts,thestorealsooffers for sale common household goods and baby products (including toys and clothes). FoodworldExpressstore Foodworld Express is a

convenience store and mini marts with 10001500 sq. ft. It carries basic Fresh range offers, wider ranges in drinks, snacks, bakery, confectionary and impulseproducts. TheCompanyhasapresenceinthefollowingcities:

City Bangalo re Hydera bad

Supermarket/Express 39 20

Gourmet Store 1 0

Superstore 0 1

Total 40 21

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Chenna i Total

6 65

0 1

0 1

6 67

Foodworld now operates over 67 supermarkets stores across bangalore ,Chennai and hyderabad,and plans to expand its footprint upto about 200 Foodworld stores in the country in different formats such as hypermarkets ,supermarkets,expressstoresandconceptstoresby2009.

BIGAPPLE
Big Apple, the Indian version of the popular US retail chain 7Eleven, plans to open 100 convenience stores in the national capital and surrounding areas by Augusttocatertotheurbanconsumers. Withshoppingbecominganothercasualtyoflongworkinghours,ExpressRetail Services Pvt Ltd is rapidly expanding its Big Apple chain of convenience stores with 25 stores already merchandising 2,500 products including FMCG, grocery, fruitsandvegetables,companymanagingdirectorMunishHemrajanisaidsaid. "I have a kitty of Rs 100 crore which I have to exhaust by March 31, 2008," he said. "We just opened our 25th store in Delhi and by August we will be 100 stores." Thestoreswillremainopenfrom7:amto11:pm. After August, Big Apple will expand into cities adjoining the national capital to doublethenumberofstoresto200. Inthesecondphase,expansionisplannedinKarnatakaandGujarat,hesaid. Thecompany'sstoresaredoinganaveragesalesofRs16lakhperdayanditis justsixmonthawayfrombreakeven. "Wearejusttwopercentawayfrombreakeven." AtypicalBigApplestoreis1,500to1,800sqfeetandstoresover2,500product merchandise,hesaidandclaimeditwaswayaheadofcompetitionfromReliance 42

Retail'sneighbourhoodstoresandSubhiksha."Wechangeproductlineevery90 daysbasedoncustomeracceptanceanddemand." TheRs40crorecompanyhasadirecttieupwithfarmersinHaryana,Rajasthan, HimachalPradeshandUttarPradesh

KISANSANSAR
ThejourneyofTataKisanSansarcanwellbedescribedinthreephases: Phase1:TataKisanKendraasaretailerofAgriinputs Phase 2: Repositioning of Tata Kisan Kendra to Tata Kisan Sansar thereby consideringTKSasaseedtoproducebusiness. Phase3:TKSasasolutionsproviderthathelpsfarmerenhancehisproductivity andanagentthatchangesthefaceofIndianfarming. Presently, there are 32 hubs, which cater to 681 Tata Kisan Sansars, covering around 22,000 villages reaching out to approx. 2.7 million farmers. The Tata KisanSansarsarespreadacross68districtsintheNorthZoneand20districtsin theEastZonespanning4and3statesrespectively. AGRIINPUTS: Fertilizer Specialty Fertilizers Seeds Pesticides CattleFeed FarmTools :Urea,DAP,MOP,NPKetc : Zinc Sulphate, Micro Nutrients, Calcium Nitrate, Organics, Water Soluble Fertilizers :FieldCrops,VegetableCrops :Entirerange :TwoGrades :ManualImplements,Sprayers,RoofingSheets,Solarenergydevices

43

AGRISERVICES: SoilTesting AdvisoryServices ContractFarming OwnSeedProduction ApplicationServices FarmerEngagementPrograms

STOREBRANDS:
To augment the value of the offering to the farmers, certain key agri inputs across various categories are being supplied under the TKS storebrand. The initiativewaslaunchedin2006andhasseenatremendousresponsebothfrom thefarmersaswellasthefranchisees,owingtotheirsuperiorqualityandhigher profitability.Thestorebrandsalescontributedaround60%oftotalsalesinthe categoryofValueAddedOfferingsin200910. FARMERSTRAINING: With a strong focus on the training and development of farmers, the TKS has already introduced various training programs. A quarterly magazine with relevant information is circulated to the member farmers. Training is also provided by the agronomistsfield experts provided at the Tata Krishi Vikas Kendrasthroughfarmermeetingsandcropseminarscovering CustomizedTraining IntegratedNutrientManagement IntegratedPestManagement

RELATIONSHIPMANAGEMENTTATAKISANPARIVAR ThefarmerrelationshipinitiativeisbeingledthroughTataKisanSansarParivar membership,apaidvalueaddedservice,whereinkeyfarmers/opinionleaders are enrolled for the membership through invitation. Tata Kisan Sansar Parivar 44

members are provided customized training and accidental insurance for the member and his family. The Tata Kisan Sansar Parivar membership stands at around30,000plusasonMar10.

CHAUPALSAGAR
ITC has continued to build new infrastructure by supplementing the farmgate presenceofeChoupalwithnewphysicalinfrastructureruralmarketinghubs called Choupal Saagars, positioned within tractorable distance of 30 eChoupal centresandtheirusercommunities. HubandspokemodelinvolvingengagementwithfarmersinruralIndia.Arural shopping mall where farmers can sell their commodities and can buy almost everything including cosmetics, garments, electronics, appliances and even tractors.Itservesasanagrisourcingcenters,shoppingcenters,andfacilitation centers. The eChoupal Choupal Saagar hub and spoke combination is unprecedented grassroots click and mortar infrastructure transporting rural local economies to a new level of productivity and consumption.

45

Choupal Saagars offer a combination of services to rural India. Madetodesign agribusinesshubs,theyfunctionas: ITCagrisourcingcentresprovidingfarmersatransparentbestpricesales window, shoppingcentresbringingarangeofproductscomparabletourbanlevels ofchoice,and facilitation centres delivering a host of farmrelated services training, soil testing, product quality certification, medical and clinical services, cafeteria and fuel station. 24 Choupal Saagar hubs are already in operationin3states,togrowto100by2010. Chaupal Sagar stores have become meeting point for farmers commerce useful to and transact exchange ITC

information.

awarded Innovation for India Award 2006 for e Choupal in the Social for Innovations category

business organizations. e Choupalspeciallycitedinthe Government for its of India's Economic Survey of 200607 transformational impactonrurallives.eChoupalisoneofthetopfivealternativechannelsforLIC Policy sales, and accounts for 10percent of the national weather insurance market. Springboardforcompetitivefarming Thedigitalandphysicalinfrastructurehasathirddimension.ItgalvanisesITCs

46

constant agency for propagating adoption of best practices in farming and soil andwatermanagement. In200607,ITCsuniquepaidChoupalKhetPradarshanfarmextensionservice conducted over 15,000 Field demonstrations in 9 states. This continuous interaction sustains the rising tide of productivity channeled by the click and mortarinfrastructure. The 1 million tons of wheat sourced by ITC over eChoupal strategically supporting its packaged foods business makes eChoupal robust and open, a successfulapplicationofbusinesslogictoservealargercause. eChoupal is transforming the traditional, low value agricultural marketplace into an open arena enabling more people to participate and succeed in the ruraleconomy. Overall,thereisahugemarketwhichiswaitingtobeserved,readytosplurge, willingtoexplorenewproductsandservices.Retailerscantapontheirwallets giventheydotheirhomeworkwell. AccordingtoIndiaRetailReport2009byImages,India'sruralmarketsoffera sea of opportunity for the retail sector. The urbanretail split in consumer spending stands at 9:11, with rural India accounting for 55 percent of private retailconsumption.

47

HARIYALIKISAN

Hariyali Kisaan Bazaar" a rural business centre, is a pioneering micro level effort, which is creating a farreaching positive impact in bringing a qualitative change and revolutionizing the farming sector in India. It is also an example of how well meaning corporates can contribute to development of agriculture by buildingsustainablebusinessmodels. DCM Shriram Consolidated Ltd. (DSCL), capitalising its over 35 years of experienceintheagriinputmarkets&firsthandknowledgeofIndianfarmers,is settingupachainofcentresaimedatprovidingendtoendgroundlevelsupport totheIndianfarmer&therebyimprovinghis"profitability"&"productivity". ThekeyconstraintsoftheIndianfarmingsector,beingaddressedby"Hariyali" are: Lack of last mile delivery mechanism of modern agriculture knowhow & practices. Lackofavailabilityofcriticalgoodqualityagriinputs. "Middlemen"drivenfarmerinterface. Highcostcredit. Lackofdirectaccesstobuyersofvaried&highvaluecrops. HariyaliKisaanBazaar The"HariyaliKisaanBazaar"chain,seekstoempowerthefarmerbysettingup centres,whichprovideallencompassingsolutionstothefarmersunderoneroof. Each"HariyaliKisaanBazaar"centreoperatesinacatchmentofabout20kms.A typical centre caters to agricultural land of about 5000070000 acres and impactsthelifeofapprox.15000farmers.

48

Eachcentreisengagedin: Bridging the last mile: Provides handholding to improve the quality of agricultureinthearea.Provides24X7supportthroughateamofqualified agronomistsbasedatthecentre. Quality AgriInputs: Provides a complete range of good quality, multi brand agri inputs like fertilizers, seeds, pesticides, farm implements & tools, veterinary products, animal feed, irrigation items and other key inputslikediesel,petrolatfairprices. Financial Services: Provides access to modern retail banking & farm credit through simplified and transparent processes as also other financialserviceslikeinsuranceetc. Farm Output Services: Farm produce buyback opportunities, access to newmarkets&outputrelatedservices. Other Products and Services:Fuels, FMCG, Consumer Goods and Durables,Apparelsetc. These centers provide the much needed respect/dignity and freedom to the Indianfarmer.Inthenearfuture,HariyaliKisaanBazaarsplantomovebeyond agritomeettheotherneedsoffarmersascustomers.

Technologyasanimportantenabler IThasbeenacriticalbackbonetothechainofcentres.Itisbeingusedtoprovide online support on latest technical advancements, weather forecasts, mandi (market) prices, fair & transparent billing to farmers as well as in maintaining 49

extensive farmer databases with micro information about the farmers' field to providecustomizedservicetothefarmers. FarmerResponse So far over 302 Hariyali outlets hav been set up across eight states Haryana, Punjab,UttarPradesh,Rajasthan,Chattisgarh,MadhyaPradesh,Maharashtraand AndhraPradesh The groundlevel agrisupport is already yielding results in the farmer's fields. Whether it is adoption rate of high yielding seeds, right doses of fertilization, productivity of cattlefeed, moisture conservation measures, adoption of new crops/allied occupations or adoption of new technologies like zero tillage, the farmers in catchment of Hariyali centres are already way ahead of the national averages. FuturePlans Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national footprint covering all the major agricultural markets of the country.Thiswouldmeancateringtocultivablelandofover30millionacresand touchingthelivesofover10millionfarmers.

KHUSHALIBAZAAR
HarJebKhush While the purchasing power in Rural and SemiUrban India is high there is a significant gap in terms of availability of the right product and Services at the rightindividualstorushtobigcitiesinordertomeettheirdailyneeds.Tofill thisgap,amodernstorewasconceivedthatwouldprovideallgoods&services underoneroofatparwiththecities.Thuswiththevisionof "Empoweringrural&semiurbanIndiawithawiderchoice","TriveniKhushali Bazaar"(TKB),theretailbrandofTriveniRetailVenturesLtd. 50

OurAgriRangeCovers: Fertilizers Building (Cement) Plant Protection Chemicals TKB has entered into strategicallianceswith many companies of repute. we offering the best possible services toourcustomers. SomeofourAgriChannelPartnersare: 1. PPl 2. Bayer 3. Apollotyres 4. RallisIndiaLTD 5. FMCIndiaPVTLTD 6. ExcelCropcareLTD 7. ChambalFertilizers TriveniKhushaliBazaar(TKB),aruralsuperstorechainofTriveniEngineers and Industries Ltd, plans to nearly double the number of its outlets by March 2008to80,asorganizedretailtakesoffinthecountrysruralpockets. By2009,itplanstohaveatotalof200stores.Thechaincurrentlyhas45outlets that sell agricultural implements, diesel, fertilizers, and consumer goods to the farmingandruralcommunity. TKBhasthemajorityofit'sstoresaround35oftheninUttarPradesh.Duringthe visittooneoftheiroutletsinHathras,westernUPaflavouroftheirmodelwas KanoriaIndustries GlaxoIndiaLTD IndianPotashLTD JubilantOrganosys KribhcoShyamFertilizers PesticideIndustriesLTD NagarjunaAgrichemicalsLTD Materials

51

obtained. The store is present just on the outskirts of the town of Hathras and the main visiblecategoryisGrocery.TheyalsosellAgriinputs,cycles,tyresetc.

TheCustomers Thisconceptshouldhavebeenverysuccessful,sincethetown(rural)customers donothavetoomuchvarietyand options in the local market. A survey on the income group showed a good portion of local businessman and government employees with household incomesintherangeof10kto30kpermonth. But still the store has not done well and the daily average sales is only in the angesof15,000,whichisverydismalincomparisonwithlocaltownretailers. Communications The main reason for this could be the very poor Marketing Communication practices followed by TKB. An example of an inefficient visual merhandising is 52

shownhere.Thesearehowthepromotionaloffersdisplayedinstore.Thestore alsohasverypoorvisibilitywithinthelocaltown.Anewestablishmentshould advertiseaggressivelyinordertopullnewcustomerstovisititsstore.

SHAKTI
In2001,thecompanyembarkedonaprogrammecalledShakti,throughwhichit creates microenterprises for rural women. Shakti also includes health and hygiene education through the Shakti Vani Programme, which now covers 15 states in India with over 45,000 women entrepreneurs in 135,000 villages. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000villages,touchingthelivesofover600millionpeople.

53

(PARTB)
3INTERNATIONALRETAILERS

1)ANGLIAREGIONALCOOPERATIVESOCIETY(ARCS)UK
Synopsis Althoughtheirgroceryandconveniencestores,departmentchainandfurniture outletswereallpartofthesamegroup,theywereoperatingastradingsilosand not making the most of the opportunities that a wider group offered. Having decided to change this, Anglia Regional Cooperative Society then looked to MATRA to deliver them a single, consistent POS infrastructure that would supportalloftheirstores,offercrosstradingcapability,reusetheiroldtills,and helpthempressaheadwiththeirambitiousmultichannelstrategy. Client Started almost 130 years ago, the Anglia Regional Cooperative Society (ARCS) has grown to become the sixth largest in the country. Its diverse portfolio of storesnowsellover300mofgoodsinayearandprovideemploymentforover 3,700employees.Itsfoodstoresservethecommunitythroughacombinationof Local convenience, Rainbow Supermarkets and petrol filling stations. In all cases, they deliver quality products at exceptional value. The Westgate departmentstoresareconvenientlylocatedintownandprovideawiderangeof productswithastrongemphasisonservice.Thefurnitureandelectricalstores providespecialistrangesandservicesfortheirrespectivemarkets.

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Brief Although each chain within the ARCS group was successful in its own right, it was clear that significant advancement could be made by utilising the multi formatstrengthofthegroup.Withtherightlevelsofintegration,ARCSwouldbe able to deliver greater capability than their larger rivals in each sector could provide. A cornerstone in their strategy was to have a consistent approach to sellingthatwouldallowthemtorungroupwideschemesandinitiatives.There weresomesignificantchallengestobefacedthoughasforyearseachchainhad operateditsownPOSsolutionandprocesses.Tomakethingsmorecomplex,the WestgatechainwasrunningIBM4690hardwarewhich,althoughveryold,was stillworkingperfectly.Awholesalereplacementcouldntbejustified.Thismeant thatthechosensystemhadtobeabletomakeuseoftheoldIBMtillswhilststill deliveringallofthemodernfunctionalrequirements. MATRAs FREEDOM solution was the obvious answer, offering proven multi format, multichannel capability and a unique ability to integrate with old systemssuchastheIBM4690. The capability that FREEDOM has brought to the business has really openedoureyesintermsofwhatispossible.Wevebeenabletodeploythe system with minimal impact and are already experimenting with initiativesthatwouldhavebeenimpossibleafewyearsago. MrLanceWoollardITExecutiveAngliaRegionalCooperativeSociety Solution ThefirstinstallationsofFREEDOMwereintheLocalconveniencestores.During thisproject,theMATRAandARCSprojectteamsworkedtogethertoensurethat the live system would cause only positive disruption. This meant that central AS400 environment had to be seamlessly integrated with the new Microsoft based FREEDOM software and that all additional AS400 applications had to be available in the store on the new platform. With the convenience stores successfullyrollingout,attentionturnedtothelargerRainbowstoresandonce 55

againtheteamsworkedtogethertorefinetheinstoreprocessesandthecentral integration. Once again, rollout was very successful, with great feedback from instore staff and the operational people in the food group. Finally, attention turnedtotheWestgatechainandtheoldIBMtills.ThekeytothesewasMATRAs uniqueabilitytodrive4690tillsasthinclientsacrosstheoldIBMnetwork. Westgate adopted a policy of replacing a few old tills in each store to provide resilienceincaseofnetworkfailure,buttherestwereleftuntouched.FREEDOM thusprovidesallfunctionalityacrossallofthetills.Ifatilldies,thenitissimply swapped for a modern one leading to a gradual till replacement programme that spreads the cost over many years and maximises the return on the ageing technology. The entire ARCS estate is now fully rolled out and they are busy trialingnewinitiativessuchasselfcheckout,loyaltyandgroupwidepromotions. Outcomes TheFREEDOMsolutionhashadadramaticeffectonthewaythatARCSoperates. The enthusiasm for the possibilities that started in the IT department has becomeinfectiousandpeoplefromeveryareaofthegrouphavebecomecaught up.Fromafewyearsago,whereeachchainoperatedinrelativeisolation,they are now actively seeking ways to utilise the new infrastructure and have seen howeasyitistobringnewideasandthirdpartysolutionsintothemix.Thisof course is having a very positive effect on the business. There have been more tangiblebenefitstoo.Trainingtimeshavebeenslashedtoafractionofprevious systems.Withonlyonesolutiontosupport,theITdepartmentcandevotemore timetogrowingthebusinessbysupportingnewinitiativesandmakingfurther improvementstostreamlineprocessesandlowercosts.Thecustomerofferhas alsoimproved,withfastertransactionthroughput,fewermistakesatthetilland a growing range of promotions that is set to expand still further this year with the introduction of MATRAs FREEDOM Shopper component. Simon Towner, Operations Director at MATRA stated, We have watched ARCS change from a businessthatquietlygotonwithretailing,toonethatnowfeelsithassomething

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to shout about. The new found confidence and clear ambition to grow and succeedisfantastictoseeandwefeelhonouredtohaveplayedasmallpartinit.

2)SPAR
History By the early 1930's there was evidence that multiple chains were expanding in Europe. As a response, SPAR was launched in 1932 as DESPAR, an acronym of a slogan: "Door Eendrachtig Samenwerken Profiteren Allen Regelmatig". This translates in English as: "All benefitfromJointCooperation". SPARinDutchmeansfirtreeandfromthestartthefirtreesymbolwasusedto identifytheorganisation. TheinternationalizationofSPAR SPARcontinuedtodevelopintheNetherlandsduringthe1930sandwent internationalin1947whenSPARwasintroducedintoBelgium.Inthelate1940s thenamewasabbreviatedfromDESPARtoSPAR. SPAR International was established in 1953 to support and develop the SPAR concept internationally. SPAR then expanded rapidly in Europe during the 1950s. By 1959 the SPAR Family had extended to include wholesalers and retailersin9countries. The first SPAR International Congress in the Netherlands in 1955 was particularly significant. It signalled the ambition of SPAR to move beyond its Europeanoriginsandbecomeaworldwideorganisation. SPARExpandsworldwide Overthenext20years,SPARcontinuedtoincreaseitspresenceinEuropeand enteredAfricaandAsia,wheretheSPARconceptofpartnershipbetween

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wholesalersandretailerswasagainrecognised.DuringthisperiodtheSPAR familyexpandedto14countriesonthreecontinents. A significant development in the sophistication of the SPAR marketing proposition took place at this time. SPAR International introduced the current SPARLogoin1968. The period 19801999 saw SPAR continue to grow in its existing markets and also expand its presence to an additional 7 countries. By 1999, SPAR was establishedin21countries. SPAR Modernising food retailing in developing countries

Since 2000, SPAR has entered the major developing countries of Russia, China andIndia.SPARhasalsocontinuedtoexpandinCentralandEasternEuropeand alsoinAfrica. The continued success of SPAR in existing countries and the level of interest expressedbynewcountries,provestherelevanceoftheSPARPartnershipmodel inmodernfoodretailing.

Winningconcept SPAR is a unique voluntary chain in which wholesalers and retailers work together inover 33 countriesunderone name. This means that nearly12,680 storesundertheSPARbrandareservingamillioncustomersadayworldwide! Eachcountryoperatesasanindependent business within the SPAR voluntary chain system. This winning concept is strengthened by the knowledge sharing between the SPAR countries, co ordinatedbySPARInternational. Testimonytothissuccessfulconceptare the manyawards and accoladesall the different SPAR countries have won. There continues to be development ofnew business, thus ensuring that SPAR isthe world's largest retail foodstore chainprovingthatSPARremainsaWinningConcept.

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Strategy a)Deliveringvalue Thekeyretailstrategyistohaveastronglyfocusedpriceaggressivepolicybased roundapowerfulpromotionalprogrammeandanextensiveprivatelabelrange. Our SPAR private label ranges now commonly have a number of subranges including, discount, store brand (standard SPAR brand), premium, and organic andfairtradeproducts. Intherecessionthedevelopmentofapriceaggressivediscountrangehasbeen an essential component in delivering value to the customer. This has been actively developed by a number of SPAR countries but especially by SPAR AustriawiththeSbudgetrange.

SBudgetintroducedbySPARAustria SPARAustriahasacomprehensiveprivatelabelprogramme,whichextendsfrom SPARforeverydaygroceries,throughtoNatur*Purfororganic;Vitalforhealthy lifestyles and the newly launched 'SPAR free from' range of lactose and gluten freeproducts. SPAR Austria recognised that in the new competitive environment it was also necessarytoofferarangewiththe'lowestpriceonshelf'.The'SBudget'range hadexpandedto130productsbythetimeofitsfirstanniversaryinMay2009. Such has been the success of the range that it has also been rolled out in Italy, Hungary,Slovenia,CzechRepublicandCroatia.

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 b)Expansionandgrowth Expansionisanotherkeyelementofawinningstrategic. Itisvitalthatwecontinuetoinvestintheredevelopmentandexpansionofour storeportfolio.Manyopportunitiesforexpansionwillariseduringtherecession and it important that we take hold of opportunities to expand the SPAR store network. InrecentyearsSPARAustriahasacquiredchainsinHungaryandNorthernItaly, SPAR Denmark have acquired and integrated a 100 store chain and SPAR NetherlandsmergedwithAttnet. SPARInternationalentered11newcountriesinthelastdecadeandparticularly targeted the developing markets. We will consolidate this development during thenewdecadeandwillalsofocusonopeningSPARinlargeemergingmarkets inAsia,AfricaandtheMiddleEast. c)Retailformats The four formats of SPAR are each designed to meet different consumer expectations. The formats have become highly flexible, meeting the requirementsofboththeconsumersandtheretailerineachstorelocation. TheabilityofSPARtodevelopstoresbestsuitedtolocalculturesandindividual locations is a major competitive strength. SPAR continues to modernise and successfully develop leading edge concepts ranging in size from large hypermarkets to convenience stores. The challenge for the future is to ensure thatSPARretailersdevelopnewstoresandredevelopexistingonestomeetthe changing needs of consumers. TheSPAR Flagship Store programmeis an importanttoolinmeetingthischallenge.

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GlobalRetailAward SPARwontheGlobalConvenienceFormatoftheyearawardfortheinternational SPARFlagshipstoreinBarrowStreetinDublin,Irelandin2007. Drawing on this experience SPAR International worked together with SPAR ChinatodevelopahighlymodernConvenientSPARSupermarketformatinChina whichbrokeexistingmarketconventions. The initial store launched in Dongguan, Guangdong province included the categoryinnovationsofTreehouseJuiceandSmoothieBar,KitsuNoodles,a SPAR Caf coffee combined with a specially locally formulated offer including live fish, market style fresh in combination with extensive Chinese dim sum specialitiesinthe'FoodtoGo'section.

d)Developingcorevalues ThecorevaluesofSPARremainasvalidandrelevanttodayastheyweresome8 decades ago. The SPAR concept was established on the basis that working in partnershipwastothebenefitofcustomers,retailers,wholesalersandthefood

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industry.Attheheartofthispartnershipisacommitmenttotheopenexchange of knowledge and information, which continues to be a hallmark of SPAR. The commitment to sharing information and experience is intimately connected to thesenseofSPARasafamily. In our stores, SPAR worldwide is committed to excellence in fresh, an unrelenting passion for quality and outstanding customer service. We support the implementation of these values through a comprehensive programme of people development supported by the necessary infrastructure, standards and procedures. Overtheyearsthevalueshavebeenrefinedanddevelopedtoensurethatthey continue to guide how SPAR meets the daytoday shopping needs of our customers. The success and continued growth of SPAR will be determined by how we continue to ensure that our values are aligned with the values of our customers. Thefocusonfreshness,qualityandcustomerserviceisthepointofdifferenceof SPARfromotherretailers.Thisdifferenceisrootedinouroriginsasindependent localretailersservingthelocalcommunity. Thus SPAR retains its unique strength of being focused on meeting local needs withacommitmenttoexcellenceinfresh,apassionforqualityandbestinclass customerservice. Price and value is always high on the agenda of our customers and is always a fundamental part of our retail offer. SPAR will always ensure that exceptional value is delivered to our customers but we also understand that freshness, quality and outstanding customer service are critical and this is our point of differencewhichisembeddedinourvalues. e)Operationalefficiency The economic crisis has placed an increasing importance on the work of SPAR Internationalinidentifyingandsharinginternationalbestpractice.Throughthe earlyadoptionofbestpracticeandbenefitingfromtheknowledgeandknowhow 62

ofSPARpartners,itispossibletorolloutnewprojectsmorequicklyandavoid someofthecostsassociatedwithpoorlyexecutedprojects. Themajorforumthroughwhichknowledgeandexperienceisexchangedwithin SPAR is through the annual LOGIT Conference, through the Action Groups and alsothecirculationofreportsandnewsletters.TheSPARConnectintranetsiteis playing an increasingly important role as a library and reference point for information. SPAR Guangdong's new Distribution Centre.

SPAR Guangdong's new distribution centre is an excellent example of SPAR workingtogetherintheimplementationofbestpractice.SPARInternationaland the Warehouse Action Group have worked closely with senior management of SPARGuangdongintheplanninganddesignofthisrecentlyopenedDC. f)Sustainabilityandcorporatesocialresponsibility In the SPAR Worldwide organisation thereisacommitmenttoresponsibleretailing.TheSPARstoreistheheartofthe local community: it serves the needs of local customers, provides employment for local people and provides a market for local suppliers. It is from this local involvement that SPAR so often fulfils its corporate social responsibility by supportingcharities,communitiesandsportsorganisations. SPARcountryorganisationsareengagedinCSRactivitiesatnationallevel.SPAR countrieshavealreadyforsometimesoughttoreduceenergyusage,toeliminate wasteandtominimiseourcarbonfootprint.Initiativesincludethedevelopment of ecofriendly retail stores and distribution centres. Transportation initiatives have been implemented not only to reduce dependence on carbon based fuels butalsotooptimiseroutingsandloadinglevels. Strategy2Sustain TodemonstrateSPAR'scommitmenttoCorporateSocialResponsibilitythereisa specialwebsitewithcasestudiesandexplainationsoftheeffortsthataretaking placeintheSPARglobalcommunity. 63

3)TESCO

Sincethemid90s,wehavebeeninvestinginnewmarketsoverseas,seekingout new opportunities for growth and ways of generating long term returns for shareholders.TodaytheGroupoperatesin13marketsoutsidetheUK,inEurope, Asia and North America. We also announced our entry into the Indian market last year, where we are establishing a cash & carry business. Over 180,000 employees work in our international businesses, serving in 2,026 stores and generating 17.9 billion sales and over 700 million profit. Over half of our sellingspaceisnowoutsidetheUK. OurInternationalStrategy The full emergence of international retailing is not something that will happen overnightitrequiresalongtermapproach. Withmorethantenyearsofexperienceoverseas,Tescohasevolvedastrategy basedonsixelements: 1. Beflexible each market is unique and requires a different approach. In Japan, customers like to shop for small amounts of extremely fresh food, every day. Existing hypermarket formats don't meet the needs of local customers, so Tesco's entry into the Japanese market was through the acquisitionofadiscountsupermarketoperator. 2. Actlocal local customers, local cultures, local supply chains and local regulations require a tailored offer delivered by local staff. In Thailand, customers are used to shopping at traditional wet markets, interactingwithvendorsandrummagingthroughpilesofproducetochoose

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what they want. Rather than adopting the Western approach of neatly packaged, convenient portions, our Rama IV store in Bangkok tries to meet localcustomers'expectations. 3. Maintainfocus we understand that customers want great service, great choiceandgreatvalue.Tobecomeestablishedastheleadinglocalbrandisa longtermeffortandisnotaboutplantingflagsinmap. 4. Usemultiformats no single format can reach the whole of the market. A wholespectrumfromconveniencetohypermarketsisessentialandyouneed to take a discounter approach throughout. Ourexperienceoftradingamixofstoresmeanswecannowmovetomulti formatquickerandwehaverecentlyopenedExpressstoresinHungaryand the Republic. 5. Developcapability it's not about scale, it's about skillsowemake sure we have capabilitythrough people, processes and systems. We believe that investing in our peopleistherightwaytoliveourvaluesandbringssoundbusinessbenefits, too. Developing individuals at every level means that we have homegrown managers who understand our culture and can effectively develop our business. 6. Buildbrands brands enable the building of important lasting relationships with customers. In China, our first Tesco branded store called Tesco Legou opened in February2007andwehavenowcompletedrebrandingofallstores. Czech

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Retailing From small beginnings, we have become Britains most popular retailer by recognisingandrespondingtosocialchange.Thisabilitytounderstandchange, and rise to its challenges, is more important for Tesco today than ever before. Thebattletowincustomersinthe21stcenturywillincreasinglybefoughtnot justonvalue,choiceandconveniencebutonbeinggoodneighbours,beingactive incommunities,seizingtheenvironmentalchallenges,andbehavingresponsibly, fairlyandhonestlyinallouractions.Customersmaycareaboutprice,butwhen theyshopwithustheydonotleavetheirsocialvaluesatthedoor. TheCommunityPlanandourSteeringWheel Tomeetthischallenge,wehaveputcommunityattheheartofhowwerunour business. AtTescoweusea 'balanced scorecard'* approach that we call the Steering Wheel. focuses This our management tool business on the delivery of our corepurpose.Itis theframeworkforallactivitylinkingtoplinestrategytopersonalobjectivesand itensuresthatwebalanceourprioritieseffectively. Communityhasnowbeenintroducedintothatframework,sittingalongsidethe four other segments of the Steering Wheel; Customer, People, Finance and Operations. That is a significant step in putting both responsibility to the communities in which we operate and a commitment to environmental 66

sustainability at the centre of our business plan. It will guarantee that the consideration of our impact on communities and on the environment becomes anintegralpartofourdecisionmakingprocess. Our key objectives: to be a good neighbour and to look after the environment The Community Plan is a continuous process that will drive change across the business in the years to come. Building upon our current corporate responsibility activities, it will provide a platform for constant innovation to delivertwobroadobjectives:

Beagoodneighbor Customerswantustorespectthelocalcommunitiesinwhichweoperateand make a positive contribution to them as a good corporate citizen and a friendlyneighbour.Wecandothatbysupportinglocalsportsteamsaswellas by providing more jobs. Projects for 2006 include stocking more local produce and making sure that our busy local Tesco Express stores do not disturbtheirneighbours.

Beenvironmentallyresponsible Eachofushasadutytotakecareoftheenvironmentandweunderstandthat Tesco is well placed to make a significant difference. By examining our processesandreviewingourenergyconsumption,wehopetotakealeadin promoting environmentally responsible practices. Projects for 2006 include reducing carrier bag usage, energy saving and improvements to recycling facilitiesforcustomers.

Ourtenstepactionplan Everything we do at Tesco is judged as far as possible against measurable objectives.Ourconcernforthecommunityisnodifferent.Whenwelaunchedthe communityplanweannouncedatenstepactionplantoimproveourimpacton

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the environment and support the local communities that our stores serve. We are: 1. Cuttingenergyuseinourbuildingssothatby2010wewillbeusinghalf asmuchenergypersquarefootthanwewerein2000. 2. Improvingourrecyclingfacilitiestohelpcustomersdoubletheamountof recyclingbroughttoourstores. 3. EncouragingcustomerstoreusecarrierbagsbygivingClubcardPointsto customers who bring their own.

4. Makinghealthyeatingeasierbyputtingnutritionallabelsonallourown brandproductsbyJanuary2007. 5. Working with the PreSchool Learning Alliance to help parents and childreninsomeoftheUKsmostdeprivedareasmakehealthierchoices. 6. Gettingtwomillionpeopleactiveineventswewillorganiseorsponsorin therunuptothe2012Olympics. 7. Ensuring our Express stores are a good neighbour by reviewing noise levels,deliveryschedulesandshopfrontdesign. 8. Engaging with the community to better understand local issues and concerns. 9. Encouragingmoresmallsuppliersbydevelopingournetworkofregional officesandmakingiteasierforthemtoaccessourdistributionnetwork.

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10. Celebratingregionalfood.For example,byworking with Britishfarmers to extend growing seasons so that we sell more British produce and importless. Lowprices Between2000and2006Tescopricesfellby17% Customersdeservethebestvalueformoney.Thatiswhyweworkhardtofind ways of keeping our prices down. This has helped us cut our prices by 17% between 2000 and 2006, in real terms, and in our aim to be the best value retailer. This price deflation comes at a time when many other aspects of consumers livesgasandelectricitybills,motoringetc.havebecomemoreexpensive.We, likeothers,currentlyfaceatoughchallengeduetorisingenergyprices,butlast yearwestillmanagedtoreduceourpricesby1.8percent.Westriveconstantly toimproveefficiency,andworkwithoursupplybasetoachievethebestprices. Innovations such as our reusable plastic trays, which we use in our fresh food areashavehelpedustomakesavingsthesesavingswepassontocustomers. We also regularly check our competitors prices across a basket of 23,000 grocery and nonfood products. Everyone can see the grocery prices for matchingitemsonourpricecheckwebsite.Thatishowwecontinue,yearinyear out,todeliverlowpriceseverywhere. Our17%fallinpriceshasgonealongwaytocontributetowardsanoverallfall in food prices. According to the OFT these fell in real terms by 7.3% between January 2000 and December 2005. Consumers have benefited from this strong downwardtrendinrealfoodpricesandintensecompetitiverivalryamongfood retailershasplayedasignificantpartinthis. Trendinrealfoodpricessince2000

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Whilst lower prices benefit all consumers they are especially important to familiesonabudgetandhavemadeasignificantcontributiontomakinghealthy food accessible to all. We do more by running promotions on fresh fruit and vegetables.Wenowsell95freshfruitandvegetableValuelinesandwearealso working with the PreSchool Learning Alliance to help parents and children in someoftheUKsmostdeprivedareasmakehealthierchoices. Fairprices We understand that customers want low prices, but they also want fair prices. That is why we charge the same prices up and down the country. We sell our products on the basis of a national price list available for all to see on our website. Even in the few locations that are unable to support more than one supermarket, where we are the only supermarket in a town, we continue to operateonthebasisofournationalpricelist. Pricesinsmallerstores Our prices are a little higher in some of our town centre and neighbourhood stores because costs are higher there. Stores in town centres are typically smallerandhavehigheroverheadcosts(mainlyrentsandrates)persquarefoot ofsellingspacethanthoseoutsidethecentre.Higheroverheadcostsarespread

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overasmallervolumeofsales,andcanonlyberecoupedbychargingpricesthat are,onaverage,higher(pricesareonaverage23%higherinourExpressstores andinafewofourMetrostoresthaninourlargerstoresontheedgeoroutside town centres). We believe it would be unfair to use our big stores to subsidise thepricesinoursmallerstores,sowedontdoit.Thiswayeveryonegetsafair deal. Whatourcustomersthink*

"I'mawarethatTescooftencomparespricesofcompetitorssothisgivesme confidencetobuy"Eastleigh "I get value for money at Tesco which is more important than cheap" PortobelloMetro "The store feels a bit more upmarket somehow [following the Refresh] there'sagoodbalanceofproductsandpricestosuiteveryone."Guildford "I am very pleased with Tesco. It sells high quality food at good prices." Carmarthen "IthinkTescohavemovedmoreupmarket,buttheystillgivegoodvaluefor money"EastbourneMetro.

Openingnewstores Servingmorecustomersandcommunities AtTescowearecommittedtoservingnewandexistingcustomers.Wearealso committed to being good neighbours in the communities that we serve. We do this by opening stores that bring fresh, affordable, quality food and greater choicetomorepeople,especiallyforfamiliesandpensionersonlowincomes. We have worked hard at developing a business model where everyone is welcome we are able to serve all types of communities with our different rangesfromValuetoFinestfoods,andwithourdifferentformatsfromlargeto small. This means that we have been able to open stores in areas where other operatorswouldnotchoosetogo.

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ThroughourTescoRegenerationPartnershipswealsoopennewstoresthathelp to revitalise communities where the lack of economic opportunity has led to a range of social problems and a lack of investment from outside. Over the last seven years our Tesco Regeneration Partnerships have created almost 4,000 jobs,including2,200amongthelongtermunemployedanddisabledaswellas affordablehousingandimprovedlocaltransportlinks. InoneofourmostrecentregenerationpartnershipsinLiverpool,weopeneda new superstore on a disused army barracks. This has provided 167 new jobs, including 85 jobs among the longterm unemployed and disabled. Projects like thisdonotonlyboostlocaleconomiesbuthelptotransformlives. Listeningandrespondingtolocalcommunities Basedonlisteningtowhatourcustomersandcommunitieshavebeentellingus, wearebetterabletoservemorecommunitiesandunderstandwhatittakesto beabetterneighbour.Asaresultofthislistening,wearerollingoutourplanto fitourlocalExpressconveniencestoreswithnewshopfrontstoblendinbetter with local neighbourhoods. To cut down local congestion and noise we are reducing the frequency of deliveries to our stores. We are also improving the way weconsult with local communitiesbefore building new stores so that we canbesurethatweunderstandfullylocalissuesandconcerns. Theplanningsystemiscomplex,butnewstoresareopening The planning system that supermarket operators have to navigate is complex and slow. It is currently under review for the Government by Kate Barker. Howeverthiscomplexityanddelayinthesystemhasnotdeterrednewentryor materiallylimitedcompetitiverivalrybetweensupermarketoperators.

Great choice 94% of the population has access to three or more supermarketfasciasover3,000sqftwithina15minutedriveoftheirhome thatsgreatchoiceforthevastmajorityofpeople. Many new openings Hundreds of new stores have been opened by many operators over recent years. We note how Aldi, Lidl and Netto for instance

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have opened 307 new stores since 2000. Indeed in 70% of the areas where Tescowassaidtohaveashareofmorethan25%in2000havehadthreeor morenewcompetitorsopensince. Our growth has been helped by the fact we have been proactive, more flexible andinnovative,andriskembracing,asdescribedbelow. Developingafuturepipelineofstores At Tesco we understand that people do not like to see commercial property sitting empty or derelict. That is why we strive to keep our empty sites to an absolute minimum. It is better for our customers, better for local communities and better for business. This is also why we are calling on the Government to reformtheplanningprocesssothatfewersitesstandempty. Toservemorecustomersandcommunitiesweneedtoacquiresitestobuildour stores.Thisistheonlyreasonwebuyland:todevelopanewstoreorimprovean existingstore. Overtheyearstheprocessofacquiringtheland,gettingplanningpermissionand buildingthestorehasbecomemuchmorecomplex,riskyandtimeconsuming. 1. To acquire a single new site, especially in brownfield or inner city regenerationareas,theprocesscanstretchtoyears.Thisisbecauseoften we have to negotiate with dozens of separate landowners in order to assembleacompletesitewherewecanbuildasinglestore. 2. Thegreater complexity in the planning regulationssince the 1990s, involving extensive discussions with the planning authorities and other local stakeholders, means that, once we have the complete site, it now takesmuchlongertogetplanningpermission. 3. Theleadtimetoprepareasiteforconstructionhasincreasedaswemove increasinglytobrownfieldandtowncentresites. The result of these changes means we need to buy more sites now than in the pastsimplytomaintainthesamerateofnewstoreopenings.

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Theprocessofopeningnewstoresinthe1990sandpresent

Productchoice ProductChoiceisincreasing Choiceisnotjustaboutdecidingwheretoshop,butalsoabouthavingachoiceof different products when you get there, and the right information to help chose

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between them. Many of our stores stock over 40,000 product lines. Even our littleneighbourhoodExpressstoresstockachoiceofwellover2,000lines. Individualcustomerstellustheyvaluebeingabletobuyfromawiderange;their favourite brands, regional produce, international cuisine, organic and healthy options to name but a few. And customers' demands are changing as lifestyles change. Innovation is therefore essential if we are to keep pace with our customers needs. We introduced around 8,000 new product lines last year to help do this. Here are just a few examples of the diversity of choice available throughTescosfoodranges:

400HealthyLivingproducts.ManycustomerslooktoTescotohelpthem live more healthily. We try to do this through dedicated ranges, through betterinformationonproducts,andadviceinstoreandonline.TheHealthy Living range originally launched in 1985 now contains over 400 products whicharelowinfatandsodium. 150FreeFromproducts.Thefeedbackfromonecustomerwhosesonhad severe food intolerances led to the development of the Free From range whichwaslaunchedin2002.Therangenowincludes150productsdesigned tomakelifeeasierforpeoplewithfoodallergiesandintolerances. 40 Special healthy Kids snacks.We have also introduced the 'Kids' range designed for 5 to 10 year olds to ensure that they enjoy healthy mealtimes. Children's diets actually need more nutrients, not just a reduced number of unhealthy ingredients, so the Kids range was developed as a good source of fibre,wholegrainandfiveadayfruitandvegetables. 1,200 Organic product lines.Customers from all walks of life told us they wanted to buy more organic food. They also told us the barriers to buying more were availability and affordability. Over the last year we have broadened and integrated our organic ranges, and are working with our supplierstoensureevenmorediverseandmoreaffordableorganicfood. WidestFairtraderangeintheUK.WestronglysupportFairtrade.Weoffer ourcustomersthewidestfairtraderangeavailableintheUKwithalmost100 productlines.Fairtradeguaranteesthatdevelopingworldfarmersarepaida fair price that covers the cost of production plus a premium to be spent on

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community projects such as better healthcare, sanitation, education or housing. Product innovation is not limited to our food ranges, but our growingnonfoodrangestoohave introduced choices of many new productlines:fromsportinggoods includingequestrianequipmentto new ranges of homeware and recently PC software. Whatever wedevelopisdoneinpartnership withsuppliersthroughlisteningto whatcustomerswant. Focusonsustainability,notjustin thecontextoftheenvironmentbut inallaspectsofourbusiness,how we meet the needs of consumers in terms of the product we offer, how we behave as a corporate citizen and how we engage with outinallaspectsofourbusiness,howwemeettheneedsofconsumersinterms of the product we offer, how we behave as a corporate citizen and how we engage with our staffped Strategy2Sustain to support our SPAR partners in formalizing their approach to sustainability and in communicating this to their customers.Strategy2Sustainhasafocusonsustainability,notjustinthecontext oftheenvironmentbutinallaspectsofourbusiness,howwemeetSustainability and Corporate Social Responsibility are firmly on the agenda of SPAR Partners worldwide. SPAR International has developed Strategy2Sustain to support our SPAR partners in formalizing their approach to sustainability and in communicating this to their customers. Strategy2Sustain has a focus on sustainability,notjustinthecontextoftheenvironmentbutinallaspectsofour business,howwemeettheneedsofconsumersintermsoftheproductweoffer, 76

how we behave as a corporate citizen and how we engage with our staff the needs of consumers in terms of the product we offer, how we behave as a corporatecitizenandhowweengagewithourstaff Strategy2Sustain "Sustainability and Corporate Social Respons Sustainability and Corporate Social Responsibility are firmly on the agenda of SPAR Partners worldwide. SPAR International has developed Strategy2Sustain to support our SPAR partnersinformalizingtheirapproachtosustainabilityandincommunicating thistotheircustomers.Strategy2Sustainhasafocusonsustainability,notjust in the context of the environment but in all aspects of our business, how we meettheneedsofconsumersintermsoftheproductweoffer,howwebehave asacorporatecitizenandhowweengagewithourstaffibilityarefirmlyonthe agenda of SPAR Partners worldwide. SPAR International has developed Strategy2SustaintosupportourSPARpartnersinformalizingtheirapproachto sustainability and in communicating this to their customers. Strategy2Sustain hasafocusonsustainability,notjustinthecontextoftheenvironmentbutin all aspects of our business, how we meet the needs of consumers in terms of theproductweoffer,howwebehaveasacorporatecitizenandhowweengage withourstaff.

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HOMEPAGE

Homepageisdesignedforthedepartmentstorelifestyle. The above homepage exhibits the brand logo, the brand info, its various departments,exclusivebrands,storelocationsandcontactinfo. Itposesgiftvouchersanditslinkwithfacebookaswell. Thepictureusedinthehomepagegivestheimpressionofthecurrentseasoni.e. springseason.

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REFERNCES
http://en.wikipedia.org/wiki/Department_store http://en.wikipedia.org/wiki/List_of_department_stores_by_country http://en.wikipedia.org/wiki/Retailing http://www.ehow.co.uk/list_6679006_typesretailformatsindia.html(good xpalantionofolstores.) http://en.wikipedia.org/wiki/Specialty_store http://business.mapsofindia.com/indiaretailindustry/formats/specialty stores.html http://retailjunction.goelji.com/companyoverview/haldirams.html

http://retailjunction.goelji.com/company ohttp://retailjunction.goelji.com/companyoverview/haldirammarketingmix part4.htmlverview/haldirammarketingmixpart1.html http://retailjunction.goelji.com/companyoverview/haldirammarketingmix part3.html http://www.authorstream.com/Presentation/harshsanghvi296945haldiram marketingpptmixfinaleducationpowerpoint/(SWOTANALYSIS) http://www.authorstream.com/Presentation/varun23oct128041haldiram presentationeducationpptpowerpoint/(SwotAnalysis) http://en.wikipedia.org/wiki/Discount_store http://www.domain b.com/companies/companies_a/Arvind_Mills/20080123_arvind_mills.html( arvindmills) http://www.franchisemart.in/MEGAMART_426.html
Newswire18, / Mumbai September 26, 2008, 0:52 IST

http://economictimes.indiatimes.com/news/newsby industry/services/retailing/arvindmaybringbusinessesundermegamart umbrella/articleshow/2576319.cms http://en.wikipedia.org/wiki/Convenience_store http://www.inandoutstore.com/default.php http://www.bharatpetroleum.com/wheels/inOutStores.asp?from=wheel http://www.lifestylestores.com/ http://megamartstores.com/html/women/women.html

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