INTRODUCTION

In today’s world of the concept of retail and retail marketing has been redefined. Earlier retailing
is considered as selling of products in store but with new concept of marketing retailing is not
restricted to selling of products and services in store, it encompasses selling through tele-
marketing (example telebrands), online order like home shop18, door-to-door / home service like
Amway etc. Over the last decade there have been sweeping changes in the retailing business. For
instance, earlier the market was strict to made-to-order market for clothing but now the concept
of ready-to-wear market picking the right colors, size and type of clothing a person wanted to
buy or purchase. Almost all retail businesses have undergone a similar change over the year.
Various international retailers like barista, Mc-Donald’s, sub-way, red-tape etc which brought
the new concept of retailing to reach the customer at their door steps and providing new
shopping culture by beautiful interior and exterior with self-service. Due to which domestic
retailer changed their marketing strategies like Mani ram was the first departmental store in
Ludhiana to start the concept of self-service. There are various retail stores. These are
departmental store retailing, specialty store retailing, chain store retailing, discount store
retailing, off-price retailing, super market retailing, commerce store retailing, contractual
retailing, convenience store retailing, franchise store retailing etc.

Chain stores are retail outlets that share a brand and central management, and usually have
standardized business methods and practices. These characteristics also apply to chain
restaurants and some service-oriented chain businesses.

A department store is a retail establishment which specializes in satisfying a wide range of the
consumer’s personal and residential durable goods product needs; and at the same time offering
the consumer a choice 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, jewelry, toys and sporting goods. Certain
department stores are further classified as discount department stores. Discount departmental
stores commonly have central customer checkout areas, generally in the front area of the store.
Department stores are usually part of a retail chain of many stores situated around a country or
several countries.

A convenience store is a small store or shop that sells items such as candy, ice-cream, soft
drinks, lottery tickets, newspapers and magazines, along with a selection of processed food and
perhaps some groceries. Stores that are part of gas stations may also sell motor oil, windshield
washer fluid, radiator fluid, and maps. Often toiletries and other hygiene products are stocked
and some of these stores also offer money orders and wire transfer services or liquor products.
They are often located alongside busy roads, in densely- populated urban neighborhoods, at
gas/petrol stations or near railway stations or other transportation hubs. In some countries most
convenience stores have longer shopping hours, some being open 24 hours. Various types exist,

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for example: liquor stores (off-licenses-offices), mini-markets (mini-marts) or party stores.
Typically junk food (candy, ice-cream, and soft drinks), lottery tickets, newspapers and
magazines are sold. Unless the outlet is a liquor store, the range of alcohol beverages is likely to
be limited (i.e. beer and wine) or non- existent. Most stores carry cigarettes and other tobacco
products.

Source:- Sales and Retail Management – C N Sotakki, Pg. 489,488

A franchise business contract in which an independent business (the franchisee) sells or markets
the products and/or services of a larger firm (the franchisor). The franchisee receives training
and marketing support from the franchisor and pays a fee for ongoing support.

The term “franchise” is used to describe systems which may or may not fall into the legal
definition provided above. For example, a vending machine operator may receive a franchise for
a particular kind of vending machine, including a trademark and a royalty, but no method of
doing business. This is called “product franchising” or trade name franchising”.

A super market store is generally used to describe a self service, departmentalized food store.
In super market store all the goods sell less than one roof and have a common check point.

As the student of marketing it is important to understand the concept of retailing. This project
helps in indentifying and study of the different retailers and understanding their marketing
mix/blend.

Objectives of the project :-

1. To select and study six different type of retail outlet located in Ludhiana.

2. To understand the concept of retail marketing mix and analyze the merchandising mix (right
product, right price, right place and right appeal) of the selected retail outlets.

Source :- Retailing Management’ Fifth Edition, Michael levy, Ph.D. (Babson College), Barton Weitz, Ph.
D. (University Of Florida) pg. no. 45, 46, 49

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 RESEARCH METHODOLOGY
This main aim of this project is to study and analysis of the merchandising mix of six retail
outlets. The project is conducted in phases which are as given below.

Phase 1.:- Selection and approval of retail outlets

The six different types of retail outlets which are located in Ludhiana were selected. Then the
approval of the selected retail outlets was taken from the module tutor. 6 retail stores are:

Name of retail outlets and their type and location

1 Convenience store - Bhatia Kariyana in Model Town
.
2 Owned goods services - Aanchal Exclusive in Model Town
.
3 Rental retail outlet - Lakshmi Store in Rani Jhansi Road
.
4 Departmental store - Mani ram in civil lines
.
5 Combined service - Barista in Model Town
.
6 Specialty store - Walia Studios in Model Town
.

Phase 2. :- Visit to the outlets

After selection and approval, first visit to each outlet was made and basic information about the
outlet was collected.

Phase 3.:- Interview Schedule making and approval

An interview schedule was made and approval from the module tutor. After approval the
interview schedule was filled by visiting the outlets.

Phase 4. :- Collection and compilation of data

The collected data was complied form in which retail merchandising mix of each outlet is give
and comparison is done.

Phase 5. :- Analysis and Interpretations

Interpretation was made from the complied data and findings were written.

Phase 6.:- Final conclusion to the report

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After the analysis and interpretation, findings and suggestions were recommended and final
conclusion was made.

RETAIL OUTLETS
The six retail outlets which have been studied for the project are different

1. Bhatia Store :- Convenience retail shop

The store was started in 1980 by Sh. Davinder Singh

(owner). The store is located in main market of model
town, near residential area. The store is surrounded by
C.S International School at one side, Kalsa College for
women at the other side. The product range is limited to
karyana goods, daily using products, and dairy
products. Earlier they were also selling artificial
jewellery and confectionary products but there was very
low response for those products so they start doing the Picture no.1:- Bhatia Store
mobile recharge (Airtel, Aircel, Tata, BSNL, Vodafone) Source :- Self clicked
coupons. Today, they are dealing with karyana goods and mobile recharge.

2. Walia Studio :- Specialty store

The studio was started in 1988 by Sh. Balwinder Singh Walia. The retail outlet is opened in
model town market, opposite Punjab National Bank, Ludhiana. The product range includes one
minute photo, studio portraits, video recording, black and white to color photo, video cassette to
CD & DVD, still photography on marriage and other occasions and passport size photography.
There is no other photographer near Walia Studios.

3. Mani Ram Balwant Rai :- Departmental store

Mani Ram Balwant Rai started business in 1948. It was started

by Late Sh. Mani Ram Batra by opening a Retail Karyana Store
at B-I-1191, Opposite Old Session Courts, civil Lines,
Ludhiana. In 1970, Mr.Balwant Rai son of Mr. Mani Ram
Batra joined same business. In 1972, he registered the Firm
Mani Ram Balwant Rai in Sales Tax Department. In 1994,
MRBR make a new concept for Punjab, a Self Service
Departmental Store at wholesale price for retail customers.
Customers come from Ludhiana even from all over Punjab and Chandigarh. On 18th July, 2006

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a new achievement by opening a different concept for Ludhiana-A Wholesale price retailing of
Artificial Jewellery, major branded cosmetics and undergarments etc. They have started online
site names as www.mrbr.co.in

4. Aanchal Exclusive :- Owned good service

Aanchal Exclusive stared in 2009 by Mrs. Renu in model town near Guru Nanak International
School, Ludhiana. The boutique is dealing in designer ladies suits, indo-western dresses,
wedding dresses.

5. Barista Coffee Shop :- Combined service

Barista Coffee Company Ltd third coffee shop started on 2009 in model town, Ludhiana. They
have diverse range of exotic coffees and variety of eating options like Beverages, food, health
drinks, merchandise products like sippers, insulated sleek sippers, magic mug, cup coffee maker,
business card holder, key chains, premium plunger.

6. Lakshmi Store :-

Lakshmi store was started by Mr. Rahul Kumar in 27th march, 2004 in Rani Jhansi Road, near
Fountain chowk, Ludhiana. The first outlet is located in Chora Bazaar (Ludhiana) due to huge
customer response another shop was opened in Fountain Chowk. They deal in full range of
bridal jewellery, branded purses, fancy bangles, branded cosmetics. The Lakshmi Store is ISO
certified. They are also having retail store in U.K, USA and CANADA. They are going to open
showroom in Chandigarh, Delhi. With the help of software they hold the retail stores. They are
also having on-line ordering facility from which the customer can easily buy the product they
required. Their main motive is customer satisfaction and more development. They will soon
open their franchise store. This retail outlet is located in an approachable place, parking space is
also their and it is located in the centre point. The price range is very high price starting from Rs.
800 up to 20000. There are 6 salesmen, 4 helpers and 1 accountant in the store.

Format of on-line order form :-

Kindly select product from list :

Design No :

Enter product related enquiry :

Tell us how to get in touch with you :

Name :

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Address :

Country :

Phone :

Mobile :

Email :

Submit Reset

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 RETAIL MERCHANDISING MIX
Retail merchandising or retail marketing mix is speaks of retail outlet’s strengths and
weaknesses, plans and strategies which they made to face the changing environment. The right
merchandising blend/ mix is one which meets the needs of the customers. Following are the six
components which explain the merchandising mix/blend of selected retail outlets.

1. Right Product :- The product which is offered to the customers

Factors Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Type of Kariyana Photo album Designer Causal/ Bridal Beverages,
product products, making, party ladies suits, bridal jewellary. food, health
mobile pictures and indo-western lehanga, drinks,
recharge and videos making dresses, artificial merchandise
dairy , editing, mug wedding jewellary products
products printing, dresses on rent, like sippers,
marriage full range insulated
albums and of sleek
DVD imitation sippers,
jewellary, magic mug,
cosmestics, cup coffee
and maker,
karyana business
good. card holder,
key chains,
premium
plunger.
Additional On phone On phone Alternation Home Gift voucher
benefits ordering order and of defected delivery
given delivery of garment
goods at home

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2. Right Quantity: - The quantity which is according to the needs of the customers.

Factor Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Number and Single unit Single and Exclusive Medium Single and Single
Size of unit offered Combo according to to large multiple and
offered (Album with customer quantity combos
DVD) requirement up to bulk

3. Right Place :- The coverage area of retailer to reach its customers.

Factors Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Market Residential Local market Local and Combine Combine Regional
area area area Residential shopping shopping market
area area area area
Market Exclusive Exclusive Selective Every Every Every
coverage place place place

4. Right Time :- The time in which the customers are ready to buy the product.

Factors Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Calendar Daily sales July- Aug, July- Aug, Whole year July- Aug, Whole
time Oct-Feb Oct- Feb, Oct-Feb year
Seasonal Wedding Festival and Festival Wedding Holiday
time season wedding season season season
season
Busiest Morning (10- Afternoon and Evening (5- Morning(9 Evening Afternoon
Time of 11), evening evening ( 12-5) 9) -12), (8-10) (12-2),
the day (6-9) evening (5- evening(5-
10) 10)

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5. Right Price :- The price offered to the consumers.

Factors Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Price Mark-down Base price Mark-up Base price Base price Base
strategy price price depend price
upon the
design
Discounts On bulk Only in combo No discounts No discounts No No
buying products discounts discounts
Gift / - - - Offers from - Gift
offers the coupons
manufacturer and cash
coupons.

6. Right Appeal :- The mode of communication used by the retailers to communicate or

advertise their products

Factors Name of the retail outlets

Bhatia Store Walia Studio Aanchal Mani ram Lakshmi Barista
Exclusive Store Lavazza
Mode of No Hoardings Local Online site Online Online
media advertisement Newspaper and site and site and
newspaper newspaper hoardings,
newspaper
Audience - Mass Target Mass Target Mass
audience audience
Time of - Once in a At the time Weekly Festival Weekly
advertisement month of festive time
season (Oct)

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 FINDINGS AND SUGGESTIONS
After the analysis of the data following points were found out:-

1. Bhatia Store :-

a. It is a convenience store which is dealing with kariyana products like dal, chips, biscuits,
maggi and daily using products. It is located in residential area (model town) of
Ludhiana.
b. Only phone order facility is given by the store.
c. They don’t provide any home delivery facility.
d. They are not giving any type of advertisement in any media of communication.

Suggestion for Bhatia store :-

As the store is not using any type of advertisement, the sale of the product is very few as
per the variety provided by the store. They can advertise in the form pamphlets which they can
distribute in the nearby houses and colleges and paying guest homes.
As the cost of printing the pamphlet will be cheaper that will be around Rs.3 per pamphlet,
which is economical for the store.

2. Walia Studios :-

a. They provide the service of photography on special occasion like wedding, birthday parties.
b. They are not providing any discount or offers to the customers.
c. They use software and advance technique for photo shooting.
d. There is no other photographer in the nearby area.

Suggestion:-

As there no other photographer in their area, they must provide good designer outer page of the
album or DVD. The packaging of Walia studios is very simple and old in the blue color. To
attract new customer they must change the packaging range which can include the printed
packages, which they can easily do as they are having printing machines which can easily print
beautiful designs. It will cost around 0.50 paisa per print.

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 CONCLUSION
From this project, we came be know that different retail outlet have their own strategies for
attracting the consumer. Big retail outlets have enough funds and resource which help them to
capture new market like Mani Ram, Lakshmi Store and Barista have future plan for opening new
retail store in various parts of Ludhiana and abroad.

Merchandising mix is one that meets requirements and aspirations of consumer. The perfect
merchandising blend has six components. These are offering right product, in the right
quantities, in the right place, at the right time, at the right price and by the right appeal.

Location of retail shop plays an important role. Retailers consider factors like potential demand,
supply of merchandise and store image related factors in locating the retail outlet. Retailer plays
a significant role between manufacturers, wholesalers, suppliers and consumer; they perform
various functions like sorting, breaking bulk, holding stock, as a channel of communication,
storage, and advertising and additional services.

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 BIBLIOGRAPHY
Referred Books :- Pg no.
1. Sales and Retail Management – C N Sotakki Pg. 489,488 1
2. Retailing Management’ Fifth Edition, Michael levy, Ph.D. (Babson College), 2
Barton Weitz, Ph. D. (University Of Florida) pg. no. 45, 46, 49

Site links :-

1. www.lakshmistore.com

2. www.mrbr.co.in

3. www.barista.com

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 Appendix

Interview Schedule Questionnaire for the retailers

Name of the retail shop : .................................

Name of the owner : ..................................

Type of retail shop : ...................................

1. What type of customers do you deal with ?

a. Youngsters b. Elders c. Older age people d. All

2. How many average customers do you cater daily?

a) 0-20

b) 20-30

c) 31-40

d) 40 and above

3. What are the products / services provided to customers ?

.........................................................................................................................................

.................................................................................................................................

4. What is the most important factor which attracts customers towards your shop/ outlet?

a. Variety of products b. Easily approachable c. Economical Prices

d. Service provided e. All

5. What services /facility provided to customer ?

a. Home delivery b. Instructions to use the product c. Warranties

d. Packaging of goods e. Credit facility

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6. What is the quantity of most selling product in your outlet ?

......................................................................................................................................

7. Do you have a warehouse for storing your goods ?

a. Yes b. No

8. Which pricing strategy you follow ?

a. MRP b. Discounts c. Reduced price on bulk purchase d. If Any other..........

9. Which is the most selling time in the day ?

a. Morning (9am- 12pm) b. Afternoon (12 pm-4 pm)

c. Evening (4 pm- 8 pm) d. Night (8 pm- 10 pm)

10. Most selling day of the week ?

a. Monday b. Tuesday c. Wednesday d. Thursday e. Friday f. Saturday g. Sunday

11. Most selling month of a year ?

...........................................................................................................................

12. Which is the most selling season of the year ?

a. Festival time b. Special occasion c. Seasonal time d. Any other..........................

13. Do you give any advertisement of your shop ?

a. Yes b. No

14. What is the mode of media used for advertisement ?

a. Newspaper b. Hoardings c. Catalogue d. Any other mode .................

15. How often you give advertisement ?

a. Once in a week b. Once in a month c. Festive time d. New offer

e. Any other time......................

16. Slogan used by your shop ?

...............................................................................................................................

17. For whom the advertisement is designed ?

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a. Mass audience (everyone) b. Target people (exclusive) c. Any other.........

18. What is the market coverage strategy followed by your retail outlet/shop?

a. Extensive (everyplace) b. Selective ( a few place) c. Exclusive ( one place)

19. How do you plan for the placement of your products in your retail shop ?

a. Most selling product in front and least at the back

b. Least selling at the front and most selling in back

c. New product in front, then most selling and least selling

d. New product in front, then least selling and most selling

e. Discounted product in front, then most selling and least selling

f. Any other .....................................................................................

20. What are the future plans to cover the market?

……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………

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