A Research Project Report On

A STUDY OF NATURE,INCIDENCE & IMPACT OF DOMESTIC VIOLENCE AGAINST WOMEN IN URBAN AND RURAL DISTRICT OF U.P

G.L.A.INSTITUTE OF TECHNOLOGY & MANAGEMENT MATHURA SUBMITTED IN THE PARTIAL FULFILLMENT TOWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT 2009-2011

Under The Supervision Of: Ms.Sucheta Agarwal Mam

Submitted By: Himanshu Gupta Roll No: 22

PREFACE

I as a part of curriculum of PGDM i.e. POST GRADUATE DIPLOPMA IN MANAGEMENT at G.L.A.I.T.M., Mathura submit my research report. I did my research work on the subject A STUDY OF NATURE,INCIDENCE & IMPACT OF DOMESTIC VIOLENCE AGAINST WOMEN IN URBAN AND RURAL DISTRICT OF U.P Such projects are expected to improve my efficiency over a period of time in future.

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Acknowledgement
I express my sincere thanks to my project guide ,Ms.Sucheta Agarwal who has been provided us with guidance, inspiration, perspective and stimulating discussion, throughout the writing of this report for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he

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had provided to me with all stages of this project. With this project, we hope to develop a futuristic view of industrys progress.

A study like this can not be completed without help from other persons and therefore we would like to express our gratitude to all persons having contributed to completition of this project. Additionally I would like to express our gratitude to Mrs. Rekha Singhal. Thank you for allocating this project. This study would not have been possible conduct without your help. Finally, we would like to thank our friends and family member for giving us constant support and encouragement.

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DECLARATION

I, Himanshu Gupta, student of P.G.D.M. VIth Trimester of GLA INSTITUTE OF TECHNOLOGY & MANAGEMENT, Batch 2009-2011, Roll No. 22, hereby declare that the Research Report Project titled as A STUDY OF NATURE,INCIDENCE & IMPACT OF DOMESTIC VIOLENCE AGAINST WOMEN IN URBAN AND RURAL DISTRICT OF U.P is my original report and the same has not been submitted to any university/Institution for the award of any degree.

Date: Place

(Himanshu Gupta) Signature Of Student

Executive Summary

Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer segment in USA. Organized retailing in India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade. The projection for the current year ie 2005 is Rs 35,000 Crores. In India, it has been found out that the top 6 cities scontribute for 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towards the tier-II cities**. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. In the year 2004, Rs 28,000 Crores organized retail industry had Clothing, Textiles & fashion accessories as the highest contributor (39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Retail had a contribution of 2%. Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats, the company operates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000people.

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TABLE OF CONTENTS Introduction Need and Relevance of Study Scope of Study Objectives Related Concept Classification of Indian Retail Sector Research Methodology Data Analysis Findings Limitations Conclusion Bibliography Questionnaire 9 12 13 13 14 41 50 57 74 75 76 78 80

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LIST OF FIGURES
Fig.1.1 Fig.1.2 Fig.1.3 Fig.1.4 Fig.1.5 Fig.1.6 Fig.1.7 Fig.1.8 Fig.2.1 Fig.4.1 Fig.4.2 Fig.4.3 Fig.4.4 Fig.4.5 Fig.4.6 Fig.4.7 Fig.4.8 Fig.4.9 Fig.4.10 19 23 23 25 29 30 32 33 45 58 59 60 60 61 62 63 63 64 64

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INTRODUCTION TO THE TOPIC

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INTRODUCTION
Customer One who regularly or repeatedly makes purchases of a trader; a purchaser; a buyer. In general terms, a customer is a person or organization that a marketer believes will benefit from the goods and services offered by the marketers organization. As this definition suggests, a customer is not necessarily someone who is currently purchasing from the marketer. In fact, customers may fall into one of three customer groups: Existing Customers Consists of customers who have purchased or otherwise used an organizations goods or services, typically within a designated period of time. Former Customers This group consists of those who have formerly had relations with the marketing organization typically through a previous purchase. Potential Customers The third category of customers includes those who have yet to purchase but possess what the marketer believes are the requirements to eventually become Existing Customers. Perception The act of perceiving; cognizance by the senses or intellect; apperhension by the bodily organs, or by the mind, of what is presented to them; discernment; apperhension; cognition. Customer perception In todays globalising economy competition is getting more and more fierce. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. Not only is the number of competitive offerings rising due to globalisation of production, sourcing, logistics and access to information. Many products and services face new competition from substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities.

On the other hand, customer behaviour becomes more hybrid. On one hand, customers are increasingly price sensitive searching for bargains at marketplaces like ebay or buying their groceries at discount markets. On the other hand they enjoy branded and luxury goods. One and the same person may plan a weekend trip with a no-frills airline and a stay at a five-star-hotel. In the result, customers have a wider choice of often less distinguishable products and they are much better informed. For many offerings the balance of power shifts towards the customer. Customers are widely aware of their greater power, which raises their expectations on how companies should care for them. Bringing it all together, it becomes ever more difficult to differentiate a product or service by traditional categories like price, quality, functionality etc. In this situation the development of a strong relationship between customers and a company could likely prove to be a significant opportunity for competitive advantage. This relationship is not longer based on features like price and quality alone. Today it is more the perceived experience a customer makes in his various interactions with a company (e.g. how fast, easy, efficient and reliable the process is) that can make or break the relationship. Problems during a single transaction can damage a so far favourable customer attitude. The consequence for companies is that they have to adapt their ways of competing for customers. Traditionally, companies have focused their efforts of customer relationship management on issues like customer satisfaction and targeted marketing activities like event marketing, direct marketing or advertising. Although doubtless necessary and beneficial, these activities are not longer enough. They narrow the relationship between company and customer down to a particular set of contacts in which the company invests its efforts. Most likely this will produce not more than a satisfied customer who is well aware of the companies offerings and has a positive attitude towards them. However, a satisfied customer is not necessarily a loyal one.

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NEED AND RELEVANCE OF STUDY 1. This study will help to know the consumers taste and preferences about retail sector. 2. Another important fact of these kind of research is that It help to the organization keep in touch to market changes, we can update our self as per the competitors moves. 3. During the project we meet to different people and then analyze the customer response and preferences for retail industry. 4. It will also help the organization to find out its weak points in comparison to other competitors.

5. Another important fact of these kind of research is that It help to the organizations keep in touch to market changes, we can update our self as per the consumers changes. 6. It also helpful in future for those students who will choose retail as their specialization.

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Scope of Study

1. Theoretical Knowledge when back up by practical experience strengthen the base of the knowledge. 2. The project gave me the opportunity to have the real taste of retail industry, thus bridge the gap between the Classroom study and real life situations. 3. This study helps in gaining the knowledge of organized and unorganized sector of retail. 4. It will be helpful to know the connection between demographic factors of consumer like age, income, education and choice of people for different types of product.

Objectives of study: To identify various factors that affect the choice of format viz organised and unorganized sector. To study the perception and attitude of customers towards both the sectors and which types of goods customer prefer to purchase from each format.

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RELATED CONCEPTS Retailing is a trading activity directly related to the scale of goods or services to the ultimate consumer for personnel, non-business use. Firstly A retailer is the last middleman in the machinery of distribution and he is responsible to satisfy recurrent wants of consumers. There are three distinguished features of a retail trade. The retailer deals in small quantities and his business is usually local in character. Secondly, the retail trade always shows tendency towards varieties as it has to satisfy innumerable wants of consumers. A specialised retail shop is for approaching specific target market. Thirdly, a retailer, by operating near about the residential areas of consumer, sells his wares directly to consumers. Manufacture goods and worthless until they pass Acid Test of retail distribution. The retailer alone can offer safe and reliable goods to consumer. RETAILERS :Philip Kotler, in his book on Marketing Management, defines Retailing as all the activities involved in selling goods or services directly to final consumers for personal, non-business use. The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer. The concept retail, which includes the shopkeeper to customer interaction, has taken many forms and dimensions, from the traditional retail outlet and street local market shops to upscale multi brand outlets, especially stores or departmental stores.
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Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Nonstore Retailing. Store Retailing as the departmental store, which is a store or multi brand outlet, offering an array of products in various categories under one roof, trying to cater to not one or two but many segments of the society and Nonstore Retailing as the direct selling, direct marketing, automatic vending. The retail industry is divided into organised and unorganised sectors: Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana stores.

Overview of sector Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. There is a change a foot in Indian retail too, the liberalization of the consumer goods industry initiated in the mid-80s and accelerated through the 90s has begun to impact the structure and conduct of the retail industry. Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges. Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in
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metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. Rated the fifth most attractive emerging retail market, India is being seen as a potential goldmine. It has been ranked 2nd in a Global Retail Development Index of 30 developing countries drawn up by A T Kearney. The list was developed as a response to requests from retail chains facing saturated demand in most western markets. The size of the retailing industry in India is estimated to be in the order of Rs. 7200 to 8100 billion (US $ 160-180 billion), with organized retailing estimated to be approximately 2 % (Rs 160-180 billion) of the total retailing industry in the country. Food and grocery retailing is estimated to contribute to around 50% (Rs. 35004000 billion) of the total sales from retailing. The boom in the sector started after the liberalization measures were initiated in 1991 in the country. Several large chains have entered the bandwagon and have achieved fair to significant success. Indian retailing has evolved over the past decade, from largely an informal and disorganized marketplace to an increasingly corporative industry, at least in the urban India. With the increased popularity of food retailing in an organized way, this sector has thrown up a wide range of opportunities for Indian agribusiness MAJOR PLAYERS IN RETAILING Future group-Big bazaar, food bazaar, pantaloons, brand factory, e zone, central mall, furniture bazaar,etc. Reliance industry ltd.-reliance fresh, reliance trend, reliance footprint, reliance mart, reliance jewels etc. Tata group- croma, Westside, tanishq stores, titan stores, star India bazaar, landmark. Aditya Birla group-peter England people stores, more, Videocon group-Next, Bolld, planet M, Raymond stores

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SWOT ANALYSIS STRENGTH Demographic favor Rising disposable income Urbanization Changing consumer habits and lifestyles. Greater availability of quality retail space. Increase in number of people. Shopping convenience. Low labor cost of skilled ones.

WEAKNESS Policy related issues - lack of industry status for retail. - numerous licence, permits and registration requirement. -farmer and retailer unfriendly APMC act. Limited consumer insight -lack of detailed region specific customer data. -less data on spending pattern. Inadequate human resources -lack of trained personnel at all level. -stringent employment and industry laws. -fragment approach to human resources.

Taxation hurdle -inconsistent octori and entry tax structure. -vat and multiple taxation issues. -large grey market presence.

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OPPORTUNITIES Potential for investment. Location advantage. Sectors with high potential growth. Fastest growing formats. Rural retail. Wholesale trading. Falling real estate cost E-retailing. Retail franchising.

THREATS Political issues. Social issues. Inflation. Nostalgia Lack of differentiation among the malls. Poor inventory turns and stock availability measures.

Retailing Customer is King A Customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outside of our business. He is a part of it and we are not doing him a favor by servicing him. He is doing us a favor by giving us an opportunity to do so. Mahatma Gandhi

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Retailing

Fig.1.1 Drawing of a self-service store. TYPE OF STORE 1. Department stores 2. Super market/convenience stores 3. Hypermarket/Discount stores 4. Specialty store/category killers 5. Seemless stores

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Department stores These large stores retail primarily non-food items such as apparel, footwear, accessories, cosmetics and household products. They stock multiple brands across product categories, though some of them focus on their own store label (on the lines of Marks & Spencers and St. Michael). These stores are found on high streets and as Anchors Tenants of shopping malls. Several local department store chains have opened shop in India in the past five years. We believe the convenience factor coupled with the aspirational perception of shopping in a department store has contributed to their growth. The larger chains of department stores (Namely Pantaloons, Shoppers Stop, Westside, and Lifestyle) have presence in the metros and mini metros. Supermarkets A supermarket is a store which is more of a large self-service grocery store selling groceries and dairy products and household goods that are consumed regularly. These are neighbourhood stores offering home and personal care products and food products that a typical household consumes on a day to day basis. These stores are often part of a chain that owns or controls (sometimes by franchise) other supermarkets located in the same or other towns; increasing the opportunities for economies of scale. These stores offer convenience of shopping by making available a large variety of products at one place. Some of the well known supermarket chain includes Food Bazaar, Nilgiris, Food World, Apna Bazaar, Trinethra etc. Hypermarkets/Discount stores A hypermarket is a store which combines a supermarket and a department store. The result is a retail facility which carries an enormous range of products under one roof, including full lines of fresh groceries and apparel. It is a large format store that aims at retail consolidation by being a single point contact between the brand owners and customers. They are planned, constructed, and executed in a manner that a consumer can ideally satisfy all of their routine weekly shopping needs in one trip to the hypermarket. Large variety of products are available at reasonable prices with discounts built in for volume purchased. This is possible because of economies of large scale operations. Big Bazaar, Spencers, Star India Bazaar are examples of hypermarket formats.

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Seamless Mall Seamless mall is a format which is relatively new in India. In this format, various brands operate their retail areas without any wall between them, providing a seamless shopping experience. This makes it possible for shoppers to compare brands with ease while they shop. We believe this also means that the store can reallocate space more easily based on merchandise/brand performance and customer feedback. Besides offering apparels, accessories and lifestyle products these malls are also equipped with entertainment and leisure facilities. Central is an example of a seamless mall. Speciality stores Speciality stores as the name suggests are stores that specialises in a particular offering. A specialty store carries a deep assortment within a narrow line of goods. Furniture stores, florists, sporting-goods stores, and bookstores are all specialty stores. Examples of speciality stores in India would include Planet Sports, aLL,Vijay Sales, Planet M, Musicworld, Crossword etc.

An analysis of the Indian Retail sector

1. An Overview of the Retail sector: The Indian retail sector is highly fragmented with 97% of its business being run by the unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage though attempts are being made to increase its proportion to 9-10% by the year 2010 bringing in a huge opportunity for prospective new players 1. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10% of India's GDP 2.

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Fig. 1.2 Source: Ernst &Young, The Great Indian Retail Story, 2006. A look at the statistics shows that the retail sector in India is worth USD 394 billion and is growing at the rate of 30% annually. An ICRIER study has found that retailing ($180 billion) contributes to 10 per cent of GDP and employs 7 per cent (21 million) of the workforce 3. According to AT Kearney, India is given the top ranking as the next foreign investment destination, as markets like China become increasingly saturated 4. India is the 4th largest economy as regards GDP (in PPP terms) and is expected to rank 3rd by 2010 just behind US and China1. Over the past few years, the retail sales in India are hovering around 33-35% of GDP as compared to around 20% in the US. The table gives the picture of India's retail trade as compared to the US and China.

Fig. 1.3 Source: Economist, Let gradualism guide FDI in retail, 2006.

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The last few years witnessed immense growth by this sector, the key drivers being changing consumer profile and demographics, increase in the number of international brands available in the Indian market, economic implications of the government increasing urbanization, credit availability, improvement in the infrastructure, increasing investments in technology and real estate building a world class shopping environment for the consumers 4. In order to keep pace with the increasing demand, there has been a hectic activity in terms of entry of international labels, expansion plans, and focus on technology, operations and processes. This has lead to more complex relationships involving suppliers, third party distributors and retailers, which can be dealt with the help of an efficient supply chain. A proper supply chain will help meet the competition head-on, manage stock availability; supplier relations, new value-added services, cost cutting and most importantly reduce the wastage levels in fresh produce 5. Large Indian players like Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC and many others are making significant investments in this sector leading to emergence of big retailers who can bargain with suppliers to reap economies of scale. Hence, discounting is becoming an accepted practice. Proper infrastructure is a pre-requisite in retailing, which would help to modernize India and facilitate rapid economic growth. This would help in efficient delivery of goods and value-added services to the consumer making a higher contribution to the GDP. International retailers see India as the last retailing frontier left as the China's retail sector is becoming saturated. However, the Indian Government restrictions on the FDI are creating ripples among the international players like Walmart, Tesco and many other retail giants struggling to enter Indian markets. As of now the government has allowed only 51% FDI in the sector to `one-brand' shops like Nike, Reebok etc. However, other international players are taking alternative routes to enter the Indian retail market indirectly via strategic licensing agreement, franchisee agreement and cash and carry wholesale trading (since 100% FDI is allowed in wholesale trading). 2. How has the Indian consumer changed over the years? In the past few years the whole concept of shopping has been altered in terms of format and consumer buying behavior. With the increasing urbanization, the Indian consumer is emerging as more trend-conscious.

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There has also been a shift from price considerations to designs and quality as there is a greater focus on looking and feeling good (apparel as well as fitness). At the same time, the Indian consumer is not beguiled by retail products which are high on price but commensurately low on value or functionality. However, it can be said that the Indian consumer is a paradox, where the discount shopper loyalty takes a backseat over price discounts 6. Indians have grown richer and thus spending more on vehicles, phones and eating out in restaurants. The spending is focused more outside the homes, unlike in other Asian countries where consumers have tended to spend more on personal items as they grow richer7. Spending on luxury goods have increased twice as fast with 2/3 of India's population is under 35, consumer demand is clearly growing. The mall mania has bought in a whole new breed of modern retail formats across the country catering to every need of the value-seeking Indian consumer. An average Indian would see a mall as a perfect weekend getaway with family offering them entertainment, leisure, food, shopping all under one roof.

Fig. 1.4 Source: Ernst & Young, The Great Indian Retail Story, 2006.

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Indian consumer is also witnessing some changes in its demographics with a large working population being under the age group of 24-35, there has been an increasing number of nuclear families, increase in working women population and emerging opportunities in the service sector during the past few years which has been the key growth driver of the organized retail sector in India. The emergence of a larger middle and upper middle classes and the substantial increase in their disposable income has changed the nature of shopping in India from need based to lifestyle dictated. The self-employed segment has replaced the employed salaried segment as the mainstream market, thus resulting in an increasing consumption of productivity goods, especially mobile phones and 2 - 4 wheeler vehicles. There is also an easier acceptance of luxury and an increased willingness to experiment with the mainstream fashion, reuslting in an increased willingness towards disposability and casting out from apparels to cars to mobile phones to consumer durables. Indians spend over USD 30,000 a year (in PPP terms) on conspicuous consumption that represents 2.8% of the entire population (which is approx 30 million people) making it the 4th largest economy in PPP terms next only to USA, Japan and China 1. With reference to the map of India's income class, it can be noticed that the real driver of the Indian retail sector is the bottom 80% of the first layer and the upper half of the second layer of the income map. This segment of about 40 million households earns USD 4,000-10,000 per household and comprises salaried employees and self-employed professionals and is expected to grow to 65 million households by 2010 1. In addition to this, facilities like credit friendliness, availability of cheap finance and a drop in interest rates have changed consumer markets. Capital expenditure (jewelry, homes, and cars) has shifted to becoming redefined as consumer revenue expenditure, in addition to consumer durables and loan credit purchases. 3. FDI in retail: Global retailers have already been sourcing from India; the opening up of the retail sector to the FDI has been fraught with political challenges. With politicians arguing that the global retailers will put thousands of small local players and fledging domestic chains out of business. The only opening in the retail sector so far has been to allow 51% foreign stakes in single brand consumer stores, private labels, high tech items/ items requiring specialized after sales service, medical and diagnostic items and

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items sourced from Indian small sector (manufactured with technology provided by the foreign collaborations). Parties supporting the FDI suggest that the FDI in retail should be opened in a gradual/ phased manner, such that it can promote competition and contribute to the growth of the Indian economy. The impact of the FDI would benefit the end user of the consumer to a great extent and will help to generate a decent amount of employment as more and more entrepreneurs would be coming forward to invest and taste the new generation in retail marketing. The opening of FDI should be designed in such a way that many sectors - including agriculture, food processing, manufacturing, packaging and logistics would reap benefits. Thus it can be said that this investment boom could change the face of Indian retail by offering quality goods at lower prices to the consumers. In addition to this, the presence of global retailers will further enhance exports from India as they would also source Indian goods for their international outlets in a big way leading to a remarkable increase in Indian exports. 4. Segment analysis: The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing. Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying. 4.1 Food and grocery retail: The food business in India is largely unorganized adding up to barely Rs. 40,000 crore, with other large players adding another 50% to that. The All India food consumption is close to Rs. 900,000 crore, with the total urban consumption

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being around Rs.330,000 crore. This means that aggregate revenues of large food players is currently only 5% of the total Indian market, and around 15-20% of total urban food consumption. Most food is sold in the local `wet' market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48% of income being spent on food and beverages. 4.2 Apparel retail: The ready-mades and western outfits are growing at 40-45% annually, as the market teems up with international brands and new entrants entering this segment creating an Rs.500 crore market for the premium grooming segment. The past few years has seen the sector aligning itself with global trends with retailing companies like Shoppers' stop and Crossroads entering the fray to entice the middle class. However, it is estimated that this segment would grow to Rs. 300 crore in the next three years. 4.3 Gems and Jewellery retail: The gems and jewellery market is the key emerging area, accounting for a high proportion of retail spends. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes, considering actual imports and recycled gold. The market for jewellery is estimated as upwards of Rs. 65,000 crores 9. 4.4 Pharma retail: The pharma retailing is estimated at about Rs. 30,000 crore, with 15% of the 51 lakh retail stores in India being chemists. According to Vikas Bali, Principal, A.T. Kearney (India) Ltd, "Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc)". A few corporates who have already forayed into this segment include Dr Morepen (with Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group's Health & Glow is already in this category, though it is not a pure play pharma retailer but more in the health and beauty care business 10.

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4.5 Music Retail: The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.1100 crore of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent, equivalent to Rs.150 crore 11. 4.6 Book retail: The book industry is estimated at over Rs. 3,000 crore out of which organized retail accounts for only 7% (at Rs.210 crore). This segment is seen to be emerging with text and curriculum books accounting to about 50% of the total sales. The gifting habit in India is catching on fast with books enjoying a significant share, thus expecting this sector to grow by 15% annually 11. 4.7 Consumer durables retail: The consumer durables market can be stratified into consumer electronics comprising of TV sets, audio systems, VCD players and others; and appliances like washing machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated USD 4.5 Billion with organized retailing being at 5% 12.

Fig. 1.5Source: E&Y, The Great Indian Retail Story, 2006.

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As noticed in the figure above, the organized retail penetration (ORP) is the highest in footwear with 22% followed by clothing. Though food and grocery account for largest share of retail spend by the consumer at about 76%, only 1% of this market is in the organized sector. However, it has been estimated that this segment would multiply five times taking the share of the organized market to 30 percent in the coming years 1. 5. Industry analysis of the Indian retail sector: Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still continue to score over modern formats primarily due to the convenience factor.

Fig. 1.6 Source: IT Retailing: Are You In The Loop?, July 16, 2006. The organized segment typically comprises of a large number of retailers, greater enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service,
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efficient merchandising and timely promotional campaigns. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years 1. Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities.

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Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. 6. Business analysis of the Indian retail sector: The size of modern retail is about US$ 8 Billion and has grown by 35% CAGR in last five years. 14 (KSA Technopak, June 2006). In modern retailing, a key strategic choice is the format; retailers are coming up with various innovative formats to provide an edge to retailers. Most attractive developing markets for retail by region according to AT Kearney Study: Percentage of markets that are `on the radar' and `to consider':

Fig. 1.7 Source: AT Kearney, GRDI 2006. A look at the graph above shows that the Asian markets are considered attractive for retail as per the AT Kearney's report; India is being placed on the
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radar by the USA and UK. Global giants like Tesco and Walmart are experimenting with various options to enter India. One possibility for Walmart would be to open Sam's club wholesale business through a joint venture and sell strictly to other retailers. This strategy skirts the issue of not being able to sell directly to customers and establish a strong presence in the local market. On the other hand, Tesco is planning to get into a partnership with Home Care Retail Mart Pvt. Ltd expecting to open 50 stores by 2010 4. The government is taking gradual steps in allowing the FDI into Indian retail, when it takes the final steps the peak time will quickly pass giving the existing players a distinct edge. 6.1 Merger and acquisition activity: India witnessed a record number of M&A deals in the first half of 2006, which were collectively worth USD 25.6 billion. A significant number of deals have being carried out in the Indian retail sector in the past few months in order to acquire a larger share in the growing domestic market and to compete against the prospective global and domestic players. 6.2 Business models for entry in Indian markets: Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. The chart below shows the current formats permitted by the Government of India for the international players.

Fig. 1.8 Source: Ernst & Young, The great Indian Retail Story, 2006.

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7. Employment opportunities in this sector: The Indian retail sector offers an economic opportunity on a massive scale both as a global base and a domestic market. This sector yields many positive results like generating more jobs and bringing numerous goods to the consumers at reasonable prices. According to Ernst &Young's report `The Great Indian Retail Story' this sector is expected to create 2 million jobs by 2010. About 4 crore people are employed in retail trade, assuming each person supports a family of 5, this, implies that about 20 crore people are dependent on this sector. For a vast majority of the households, retailing is a euphemism for a marginal existence. Modern retail formats have generated huge employment for the young and even senior citizens and women wanting to work part-time (even in small towns). People have greater exposure to the technical aspects, training and also earn higher salaries along with bonuses and incentives. With foreign companies opening expanding in India, employees are being re-trained according to international standards and practices that are being bought in. There is also an increase in the number of retail management programmes and institutes. This will bridge the gap in availability of talented professionals at the middle and lower levels. Successful Indian retailers are creating a robust second and third level of management by hiring aggressively for these key roles. Talented professionals will put increased pressure on wage costs. Therefore operating margins, especially for mid-sized retailers, are becoming a poaching ground for international retailers once they enter India. With private companies getting into retail, there are people employed from diverse cultures (no room for reservations unlike government owned stores) where there is a sense of unity in diversity. The companies are also employing people who are physically handicapped. The next few years are expected will see the sector offering new jobs to 50,000 young graduates and diploma holders. 8. What makes foreign firms come to India? A host of traditional `brick and mortar' companies such a Tatas have entered the retail business. With demographic changes like rising disposable incomes and rapidly expanding middle class, the Indian retail sector is at an inflexion point where the growth in consumption and growth of organized retailing are taking it towards higher growth. Market liberalization and an increasingly assertive consumer population have attracted bigger Indian and multinational operations to make investments, but are yet to achieve success or reach break even.

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The Indian consumption pattern and preference have undergone vast changes over the years allowing the foreign retailers to play with the psyche of the brand conscious modern Indian, who has no qualms spending a fortune on overhauling his wardrobe. This led to the entry of up-market brands like Nautica and New Balance into the country to cash in on this opportunity. India has the youngest population in the world, with large population between 20-34 age groups in the urban regions boosting the demand. All these factors have tempted the foreign firms such as Walmart, Tesco and Carrefour to enter India. India is now firmly placed on the US and UK radars as US retailers are gradually realizing the potential of the retail and consumer goods sector. The timing is the most important source of competitive advantage for global and regional retailers in the globalization race. Knowing when to enter emerging retail markets is the key to success. AT Kearney's study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base here, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour, Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure. However, in order to achieve breakthrough growth the global retailers might have to face some glitches in India. High taxes, poor infrastructure, bureaucratic hurdles and high cost of real estate are some of the challenges that overseas retailers may have to tackle in the country. 9. IT and latest development: Technology has played a key role in retailers' efforts to compete in this volatile market. With e-tailing channels making its presence felt in India companies are using either their own web portal or are tying up with horizontal players like Rediff.com and Indiatimes.com to offer their products on the web 15 (www.alexa.com). IT has been used by retailers ranging from Amazon.com to eBay, in order to radically change the buying behavior across the globe 16. Retailers worldwide are looking forward to increase their IT spending by almost 15% in 2006, allocating almost half of this increase to application software with a
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particular focus on tools that facilitate multi-channel customer relationships, point of sale systems, strategic merchandising and supply chain management 17. The last 2-3 years have seen several retailers ranging from F&B operations to discount clothing implementing supply chain management (SCM) solutions to improve core business processes such as global sourcing, distribution, logistics, innovations, transparency and visibility in financials and inventory, compliance and management of point of sale (POS) data. However, organized retailers have not taken well to the concept of 3PL (third party logistics) due to their apprehensions of losing control over the supply chain. Currently, the transportation is carried out partly by organized service providers and partly by truckers and local transporters. In conclusion, it can be said that in order to deliver the levels of quality and service that consumers are demanding; the organized retailers are in a pressing need for a single enterprise wide IT platform to manage operations, which will become increasingly complex once the market expands. 10. A look at the rural retailing: More than half of retail market in India is in the rural areas (55%); although share of urban market is increasing by almost 5% every 8-10 years 14. Accommodating almost two-third of the country's consumers and generating almost half of the national income, the rural India offers tremendous opportunities for organized retailers which many companies have failed to access. According to the study conducted by NCEAR, the number of `lower middle income' group in rural areas is almost double as compared to the urban areas, having a large consuming class with 41% of the Indian middle class and 58% of the total disposable income.

Source: Census; National Council of Applied Economic Research (NCAER).

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A look at the demographics reveals that the highest income levels households in the rural areas are 1.6 million as compared to 2.3 million in urban areas. It has also been forecasted that the middle and the higher income households are expected to grow to 111 million by 2007 from the current levels of 80 million. Thus, it can be said that with 128 million households, the rural population is nearly three times the urban. This vast demand base and size offers a huge opportunity that MNCs cannot afford to ignore.

In order to meet with this rapid growth in demand the government has shown its concern by providing an induction of Rs.140 billion and Rs. 300 billion in the rural sector through its development schemes in the Seventh and the Eight plan respectively. The large players like ITC, HLL, BPCL are realizing the potential of this sector and are seen experimenting with new ways to tap this segment. ITC spent 3 years and Rs. 80 crore on r&d to come up with the concept of Echoupal and Choupal Sagar-rural hypermarkets 18. Through this, the farmers can access latest local and global information on weather and market prices, scientific farming techniques at the village itself through a web-portal - all in Hindi. E-Choupal also facilitates supply of high quality inputs as well as purchase of commodities at their doorstep. The hypermarket (Choupal Sagar) provides them with another platform to sell their produce and purchase necessary farm and household goods under one roof. Next in line, HLL came up with Project Shakti in late 2000 to sell its products through women self-help groups who operate like a direct-to-home team of sales women in inaccessible areas where HLL's conventional sales system does not reach. Another step to tap the rural market was `Operation Bharat' wherein low-

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priced sample packets of toothpastes, fairness creams, Clinic Plus shampoos and Ponds face creams to 20mn households. As a part of their rural strategy, BPCL introduced Rural Marketing Vehicles (RMVs) that move from village and village and filling cylinders on the spot for rural consumers keeping in mind the low-income of the rural population. The Company also introduced a smaller size cylinder to reduce both the initial deposit cost as well as the recurring refill cost. Future outlook: Investments in the range of US$ 20+ Billion are expected in the next 5 years in Retail & its Supply Chain alone. Size of modern retail likely to touch US$ 60+ Billion by 2011: At least 2.5 Million additional direct jobs likely to be created in the next 5 years. Hyper-competition is expected to set in by 2008-9 as the footprint of the top-5 players starts significant overlapping in top 20 - 30 towns. Significant impact on other retailers and branded good players - creating new opportunities and threats: According to Assocham, the overall retail market would grow by 36 per cent with the organised sector expected to register three-fold growth to Rs 15,000 crore by 2008. The total size of the market is also expected to increase to Rs 14,79,000 crore from the current level of Rs 5,88,000 crore. Challenges faced by this sector: The industry is facing a severe shortage of talented professionals, especially at the middle-management level. Most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of quality and service that consumers are demanding. Long intermediation chains would increase the costs by 15%. Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports has further led to the impediment of a pan-India network of suppliers. Due to

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these constraints, retail chains have to resort to multiple vendors for their requirements, thereby, raising costs and prices. The available talent pool does not back retail sector as the sector has only recently emerged from its nascent phase. Further, retailing is yet to become a preferred career option for most of India's educated class that has chosen sectors like IT, BPO and financial services. Even though the government is attempting to implement a uniform value-added tax across states, the system is currently plagued with differential tax rates for various states leading to increased costs and complexities in establishing an effective distribution network. Stringent labor laws govern the number of hours worked and minimum wages to be paid leading to limited flexibility of operations and employment of part-time employees. Further, multiple clearances are required by the same company for opening new outlets adding to the costs incurred and time taken to expand presence in the country. The retail sector does not have 'industry' status yet making it difficult for retailers to raise finance from banks to fund their expansion plans. Government restrictions on the FDI are leading to an absence of foreign players resulting into limited exposure to best practices. Non- availability of government land and zonal restrictions has made it difficult to find a good real estate in terms of location and size. Also lack of clear ownership titles and high stamp duty has resulted in disorganized nature of transactions. A Comparison between Kirana and Organised Retail The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. There is a change a foot in Indian retail too, the liberalization of the consumer goods industry initiated in the mid-80s and accelerated through the 90s has begun to impact the structure and conduct of the retail industry. The concept retail, which includes the shopkeeper to customer interaction, has taken many forms and dimensions, from the traditional retail outlet and street local market shops to upscale multi brand outlets, especially stores or departmental stores.

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Hence, focusing on two aspects of retail marketing i.e. Store Retailing and Nonstore Retailing. Store Retailing as the departmental store, which is a store or multi brand outlet, offering an array of products in various categories under one roof, trying to cater to not one or two but many segments of the society and Nonstore Retailing as the direct selling, direct marketing, automatic vending. Therefore, this concept of retail marketing through organised retail stores, which is coming up in a big way in India was decided to be studied in detail. The objective being to assess the various parameters that influences a buyer to shop at organised retail food and grocery store thereby contributing to its turnover (in terms of sales and profits) hence leading to its overall success. The extensive research brought me to conclude that departmental stores are soon emerging on the top priority lists, amongst the shopping spree in Delhi, as they seem to derive immense pleasure as shopping is considered as a experience now rather than a task and exposure to variety under one roof, in their extremely busy lives, when they dont have time for things. The organised retail food and grocery stores make constant efforts to induce customers to visit the store by discount offers. Most of these stores believe in creating not just a marketing activity with its customers, but rather favour relationship building with him so as to convert first time customers into a client. They provide better parking facilities to customers and the facility to examine the product. They also offer a wide range of payment options to customers. Hence this document entails me through these aspects in great detail, helping me to understand the concept of retail marketing through departmental stores in Delhi.

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CLASSIFICATION OF INDIAN RETAIL SECTOR

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Key Players in Indian Retail Sector AV Birla Group has a strong presence in apparel retail and owns renowned brands like Allen Solly, Louis Phillipe, Trouser Town, Van Heusen and Peter England. The company has investment plans to the tune of Rs 8000 9000 crores till 2010.

Trent is a subsidiary of the Tata group; it operates lifestyle retail chain, book and music retail chain, consumer electronic chain etc. Westside, the lifestyle retail chain registered a turnover of Rs 3.58 mn in 2006

Landmark Group invested Rs. 300 crores to expand Max chain, and Rs 100 crores on Citymax 3 star hotel chain. Lifestyle International is their international brand business.

K Raheja Corp Group has a turnover of Rs 6.75 billion which is expected to cross US$100 million mark by 2010. Segments include books, music and gifts, apparel, entertainment etc.

Reliance has more than 300 Reliance Fresh stores; they have multiple formats and their sale is expected to be Rs 90,000 crores ($20 billion) by 2009-10.

Pantaloon Retail has 450 stores across the country and revenue of over Rs. 20 billion and is expected to touch 30 million by 2010. Segments include Food & grocery, e-tailing, home solutions, consumer electronics, entertainment, shoes, books, music & gifts, health & beauty care services.

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Indian Retail on the Fast-track Indias GDP growth of 9.4% for 2006-07, was the highest ever in 18 years, reflecting the booming economy of the country. Indias retail sector, in tandem with the economy, is on a high growth trajectory; expected to grow by over 27% in the next 5 -6 years. Retail contributes to 10% of Indias Gross Domestic Product and provides employment to 8% of Indias working population. Higher disposable incomes, easy availability of creditand highn exposure to media and brands has increased average propensity to consume considerably over the years.

Classification of Indian retail sector:

a) FOOD RETAILERS There are large number and variety of retailers in the food-retailing sector Traditional types of retailers, who operate small single-outlet businesses mainly using family labour, dominate this sector In comparison, super markets account for a small proportion of food sales in India, However the growth rate of super market sales has being significant in recent years because greater numbers of higher income Indians prefer to shop at super markets due to higher standards of hygiene and attractive ambience. b) HEALTH & BEAUTY PRODUCTS With growth in income levels, Indians have started spending more on health and beauty products .Here also small, single-outlet retailers dominate the market .However in recent years, a few retail chains specializing in these products have come into the market. Although these retail chains account for only a small share of the total market their business is expected to grow significantly in the future due to the growing quality consciousness of buyers for these products. C) CLOTHING & FOOTWEAR Numerous clothing and footwear shops in shopping centers and markets operate all over India. Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing and footwear stores have modern products and attractive displays to lure customers. However, with rapid
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urbanization, and changing patterns of consumer tastes and preferences, it is unlikely that the traditional outlets will survive the test of time. D) HOME FURNITURE & HOUSEHOLD GOODS Small retailers again dominate this sector. Despite the large size of this market, very few large and modern retailers have established specialized stores for these products. However there is considerable potential for the entry or expansion of specialized retail chains in the country. E) DURABLE GOODS The Indian durable goods sector has seen the entry of a large number of foreign companies during the post liberalization period. A greater variety of consumer electronic items and household appliances became available to the Indian customer. Intense competition among companies to sell their brands provided a strong impetus to the growth for retailers doing business in this sector. F) LEISURE & PERSONAL GOODS Increasing household incomes due to better economic opportunities have encouraged consumer expenditure on leisure and personal goods in the country. There are specialized retailers for each category of products (books, music products, etc.) in this sector. Another prominent feature of this sector is popularity of franchising agreements between established manufacturers and retailers. Today trend is the development of integrated retail cum Entertainment centers or shopping malls. An increasing number of retailers are focusing on malls now as opposed to stand-alone developments. While the number of shopping malls has seen a massive surge in the recent past in the metros and their suburbs, the latest trend in this sector is the increasing focus on providing leisure activities such as multiplexes, facilities for kids' entertainment, eateries etc. within the mall premises. Customer less the time consumes and more entertainment with his family in malls because they within shopping mall number of retail shop and variety of products and selected the product they want. Good environment in mall. Less crowed and selected the product they want. Good environment in mall. Less crowed and These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq ft. Critical to these malls is the concept of the anchor, the key outlet or store around which other outlets cluster.
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Indian consumption cosmos During past decades private final consumption expenditure has been the key driver economic growth in India.

fashion accessorie s 5.5% Telephon e 1.8%

consumer durable 4%

Enterainm ent 7.9%

consumption spending $350 billion

furniture 3.4%

Fashion 9.5%

Health, beauty & pharama 3.8%

Book & music 1.1

food 62%

Fig. 2.1 Organised Retail Store: The India Shopping - not only in terms of product availability, rather even providing a complete shopping experience has been the driver behind the advent of shopping malls. Strategic locations, ease of shopping, availability of all necessities under a single roof has led to the bloom of such convenience shopping malls across urban centres. For the purpose of studying the procurement and inventory practices in organised retail sector we chose the retail mall Highway Plaza, a unit of

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various retail outlet at Highway. The shopping mall is part of a chain of malls (started since 2007) spread across the state. Currently other The World stores are located in 4 different towns of Orissa. The mall with its tagline A Family Shopping Mall deals with wide array of product categories: Ground Floor FMCG Staples, Non-food, Food, Drinks and Beverages, Plastics, Greeting Cards, Stationeries; First Floor (Ladies Section) Jeans, Tops, Salwars, Sarees, Ladies Shoes and Bags, Jewellery, Cosmetics, Lingerie; Second Floor (Mens Section) Jeans, Trousers, Formal Shirts, Casual Shirts, T-shirts, Accessories and Under Garments, Luggage, Shoes; Third Floor (Kids and Home Appliances) Kids Boys, Kids Girls, Infants, Home Furnishing, Crockery, Home Dcor, Shoes. With a total floor area of 25000 sq ft and spread over 4 floors, The World employs 32 floor staff (including a supervisor for each floor). The basement of the mall is used for the purpose of stocking of FMCG goods as well as housing the purchase office of the mall. For stocking of non-FMCG (primarily garments, shoes and home furnishings), the mall has a separate warehouse at Mancheswar, Bhubaneswar. 6 persons (excluding the mall Purchase Manager) are employed in the basement for stock receipt, stacking, categorising, barcoding and carrying goods to shelves. The warehouse (at Mancheswar) employs 16 personnel - 10 of whom are dedicated for barcoding, stacking, logistics and transportation of non-FMCG goods (rest people handle relationships, accounts, management and co-ordination responsibilities). The warehouse serves the inventory needs of mall at Berhampur. Regarding procurement and inventory practices for the mall, the products have been divided into two broad categories (on the basis of marked difference in procurement, sourcing and storing practices) FMCG and non- FMCG items. FMCG procurement and inventory practice Fixed Time Period Model weekly replenishment of stock along with periodic review- daily and fixed order quantity practice is being used primarily as part of its inventory policy. Each manufacturing unit had its own (or contracted) carrying and forwarding agent to deal with states distributor. Sales representatives of these distributors used to pay weekly visits (not necessarily on same day for all distributors). Say, HULs sales representative visits on Tuesdays, then P&Gs visits malls purchase department on weekly basis on Wednesdays. Each floor has a floor level meeting each morning to discuss customer issues and past days updates. Each morning the category wise indent figures are sent to purchase department (although weekly replenishment policy is followed, still daily review of indent figures is done to identify whether any
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category/brand/SKU specific purchase order is to be issued). Stocks are replenished with a days lead time. Sales for certain products are done by manufacturers own staff/ sales force, while greater margins or offers are sought on display or promotional hoardings. Minimum Base Quantity method of identifying the re-order point is practised. The MBQ model adopted was category specific. For eg. for certain categories the MBQ level was decided based on shelf-space and for some it was a proportion of number of SKUs on shelf. Complan for instance had MBQ level of 2/3rd of shelfspace (=18 X500 gm tins) Scanning of daily indents identified MBQ levels if any, indicative of any sales trends, category/SKU specific preferences and accordingly stocking up inventory to avoid any loss of customer. Sales of products/brand enjoying promotional offers are normally comparatively higher than non-promotional products/ categories. Normally FIFO method is followed while maintaining inventory, however in case of any failures to clear out old stock is replaced with distributor, if identified within stipulated time. For certain items with less demand, and unwillingness of being replaced by distributor stock of such goods is normally cleared out with promotional offers, with minimal margins on such sales. Items are stacked on the basement after shelving SKUs (category/shelf size specific quantities).Random sampling to check for any defective pieces in the lot or verification of expiry date is done while receiving the stock from the distributor. Occasionally these items stacked in the basement run the risk of pilferage or damage due to rodents or weather or human negligence. Payment for the purchase orders made may vary from 7 days to a months credit depending on relationship with distributor and latters policy. Order quantities are normally fixed exceptions being observed. Inventory stocks are inflated during peak demand seasons like marriages or festivals depending on customers preferences for particular product categories during the season. Non- FMCG procurement and inventory practice The warehouse at Mancheswar stocks up garments, shoes and home furnishings. Staff [6 out of 16] (apart from administrative ones) at warehouse is responsible for receipt, barcoding, sorting (SKU-wise), stacking, transportation [since non-FMCG stock needs of Berhampur counterpart of this mall is also catered by this warehouse] and logistics operations. Replenishment of the stock is done on a quarterly basis. Unorganized Retail Kirana Store : Panda Variety Store To study unorganized retail, we visited a kirana shop at Mathura. Panda Variety Store, located Holy Gate presented a picture that was a stark contrast to what
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we had seen at The World though quite a few parallels could still be drawn with respect to the products sold, their procurement process, storage and sales. The shop with an area of 25 X 12 sq. feet is co-owned by two brothers who take turns to take care of the shop. They have hired no other employee and take care of the business all by themselves. When we visited the shop, younger of the two, Mr. Prashant Kumar Panda was at the store and helped us understand his operational strategy stressing on the procurement process and the inventory management method used. The shop had the following items: Food and beverage: rice, pulses, flour, oil, salt, spices, biscuits, chocolates, soft drinks, fruit juices, ketchups, noodles and other ready-to-cook-ready-to-eat food products, milk, bread, cakes and other dairy and bakery products. Toiletries: Soaps, detergents, liquid soaps Personal Products: Cosmetics, Shampoos Others : Home appliances and decorative items, SIM cards of various cellular operators. They bought all these varieties of items from multiple distributors. The procurement of the items was done using the fixed period model. All the distributors send their sales representative once a week to the store. For example, the representative from Proctar & Gamble visits the store every Thursday. Other distributors send their representatives on other days of the week. The store-owner, if he feels the need of replenishment, places an order to the distributor. The order quantity is based on his estimation and hence may not guarantee a correct order quantity all the time. The lead time for the orders to be delivered is generally within two days. While some distributors supply the orders the very same day in the evening after getting the order in the morning, others like HUL take two days while P & G products reach the shop the next day of placing the orders. The payment of the orders is mostly done after seven days of delivery of the order, in case of HUL the payment is done after 15 days. The bakery and dairy products are, on the other hand, procured and sold on a daily basis. The shop owner estimated the fill rate to be that of one week. Though hardly any major inspection is done during delivery of the orders, thanks to the trust on the distributors, the damaged items, if found then, are immediately replaced or are simply returned back to the distributor. The procured items are stored inside the store. There is no separate arrangement for storing the inventory. The shelf space is filled up by most of the products while others find some place for them on the floor. Some of the cosmetics and other products are provided attractive self-spaces which they get when the company pays the shop-owner extra charges for the special display of their products. The cartons of inventory are kept inside the same shop in such a
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manner that they dont block the customers view of the shelves. Some of the cartons are also placed outside the store only to be brought in during the closing of the shop. Normally, the stocks of the goods ordered lasts a period of one week. During this period there are possibility of damage of products by the pests and rats. In this case, the products are either replaced by the distributor or the shop owner tries to sell any such damaged products with a discount offer on its sales, or simply consider it as a loss. If the product however, crosses its expiry date it is duly replaced by another one by the distributor. In case of dairy and bakery products, if they remain unsold for a couple of days, they are also returned to the distributor. Thus, the shop owner hardly loses any money on inventory not being sold off. Similarly, if an item runs out of stock and the customer asks for it, the shop owner admitted to convince him to buy a similar item rather than waiting for the particular item to arrive. For example, if a customer asks for Maggi and the seller doesnt have any packet of Maggi left, he would rather suggest the customer to try another noodle rather than going to other shops for the desired product. Thus, the shop owner claimed that it is the shop owner and the customers relation with the shop owner that is a more influencing factor than the product or the brand. It is this trust that even prompts to sell the product on credit to the customers. Generally, the demand for the product is high during the first week of the month. Also, these days, with the government and public sector employees getting their salary in the last week of the month itself, the demand again increases during this period. Hence, Mr. Panda said that he orders a higher amount of the items during these two weeks while the order quantity and the demand drops in the middle weeks of a month. Again during special poojas and other festive occasions the sales increase and he ensures prevention of stock outs by ordering more in these occasions.Thus this is how the procurement process and inventory management operates in a kirana shop as observed by the group.

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METHODOLOGY

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RESEARCH METHODOLOGY
Methodology may refer to nothing more than a simple set of methods or procedures and the philosophical assumptions that underlie a particular study relative to the scientific method. For example, scholarly literature often includes a section on the methodology of the researchers. This research involved a study, which was Qualitative in nature. This study mainly focuses upon to know what is the attitude of customers about organized and unorganized sector. Problem Recognition & Definition All research begins with a question. Intellectual curiosity is often the foundation for scholarly inquiry. Some questions are not testable. The classic philosophical example is to ask, "How many angels can dance on the head of a pin?" The modern scientific method precludes asking questions that cannot be empirically tested. If the angels cannot be observed or detected, the question is considered inappropriate for scholarly research. Defining the goals and objectives of a research project is one of the most important steps in the research process. Clearly stated goals keep a research project focused. The process of goal definition usually begins by writing down the broad and general goals of the study. The research question itself can be stated as a hypothesis. A hypothesis is simply the investigator's belief about a problem. Typically, a researcher formulates an opinion during the literature review process. The hypothesis is converted into a null hypothesis in order to make it testable. "The only way to test a hypothesis is to eliminate alternatives of the hypothesis. Creating the Research Design Defining a research problem provides a format for further investigation. A welldefined problem points to a method of investigation. Many authors have categorized research design as either descriptive or causal. Descriptive studies are meant to answer the questions of who, what, where, when and how. Causal studies are undertaken to determine how one variable affects another.
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Sampling It is incumbent on the researcher to clearly define the target population. There are no strict rules to follow, and the researcher must rely on logic and judgment.The population is defined in keeping with the objectives of the study. Sampling methods are classified as either probability or nonprobability. In probability samples, each member of the population has a known probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. In nonprobability sampling, members are selected from the population in some nonrandom manner. Random sampling is the purest form of probability sampling. Each member of the population has an equal chance of being selected. When there are very large populations, it is often difficult or impossible to identify every member of the population, so the pool of available subjects becomes biased. Random sampling is frequently used to select a specified number of records from a computer file. Systematic sampling is often used instead of random sampling. It is also called an Nth name selection technique. After the required sample size has been calculated, every Nth record is selected from a list of population members. Stratified sampling is commonly used probability method that is superior to random sampling because it reduces sampling error. A stratum is a subset of the population that share at least one common characteristic. The researcher first identifies the relevant stratums and their actual representation in the population. Random sampling is then used to select subjects for each stratum until the number of subjects in that stratum is proportional to its frequency in the population. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This nonprobability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

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Judgment sampling is a common nonprobability method. The researcher selects the sample based on judgment. This is usually and extension of convenience sampling. Quota sampling is the nonprobability equivalent of stratified sampling. Like stratified sampling, the researcher first identifies the stratums and their proportions as they are represented in the population. Then convenience or judgment sampling is used to select the required number of subjects from each stratum. Snowball sampling is a special nonprobability method used when the desired sample characteristic is rare. It may be extremely difficult or cost prohibitive to locate respondents in these situations. Snowball sampling relies on referrals from initial subjects to generate additional subjects. Data Collection There are very few hard and fast rules to define the task of data collection. Each research project uses a data collection technique appropriate to the particular research methodology. The two primary goals for both quantitative and qualitative studies are to maximize response and maximize accuracy. Data editing and cleaning involves the process of checking for inadvertent errors in the data. This usually entails using a computer to check for out-ofbounds data. Quantitative studies employ deductive logic, where the researcher starts with a hypothesis, and then collects data to confirm or refute the hypothesis. Qualitative studies use inductive logic, where the researcher first designs a study and then develops a hypothesis or theory to explain the results of the analysis. Quantitative analysis is generally fast and inexpensive. Data analysis Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making.

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Data mining is a particular data analysis technique that focuses on modeling and knowledge discovery for predictive rather than purely descriptive purposes. Business intelligence covers data analysis that relies heavily on aggregation, focusing on business information. In statistical applications, some people divide data analysis into descriptive statistics, exploratory data analysis, and confirmatory data analysisPredictive analytics focuses on application of statistical or structural models for predictive forecasting or classification, while text analytics applies statistical, linguistic, and structural techniques to extract and classify information from textual sources, a species of unstructured data. All are varieties of data analysis. Modern computer software has made the analysis of quantitative data a very easy task. It is no longer incumbent on the researcher to know the formulas needed to calculate the desired statistics. . Considering the ease in which computers can calculate complex statistical problems, the danger is that the researcher might be unaware of the assumptions and limitations in the use and interpretation of a statistic. Research Methodology Research Type Qualitative Industry Retail Data Type Primary data Secondary Data Population Mathuras retail customers Sampling Technique Judgmental Sampling Sample Size 100 Samples Survey Tool Questionnaire Questions Type Close ended Questionnaire Type Structured Reporting the Results The most important consideration in preparing any research report is the nature of the audience. The purpose is to communicate information, and therefore, the report should be prepared specifically for the readers of the report. At a minimum, the report should contain an abstract, problem statement, methods section, results section, discussion of the results, and a list of references.

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Validity and Reliability Validity refers to the accuracy or truthfulness of a measurement. Are we measuring what we think we are? "Validity itself is a simple concept, but the determination of the validity of a measure is elusive". Face validity is based solely on the judgment of the researcher. Each question is scrutinized and modified until the researcher is satisfied that it is an accurate measure of the desired construct. The determination of face validity is based on the subjective opinion of the researcher. Content validity is similar to face validity in that it relies on the judgment of the researcher. However, where face validity only evaluates the individual items on an instrument, content validity goes further in that it attempts to determine if an instrument provides adequate coverage of a topic. Expert opinions, literature searches, and pretest open-ended questions help to establish content validity. Criterion-related validity can be either predictive or concurrent. When a dependent/independent relationship has been established between two or more variables, criterion-related validity can be assessed. A mathematical model is developed to be able to predict the dependent variable from the independent variable(s). Predictive validity refers to the ability of an independent variable (or group of variables) to predict a future value of the dependent variable. Concurrent validity is concerned with the relationship between two or more variables at the same point in time. Construct validity refers to the theoretical foundations underlying a particular scale or measurement. It looks at the underlying theories or constructs that explain a phenomena. This is also quite subjective and depends heavily on the understanding, opinions, and biases of the researcher. Reliability is synonymous with repeatability. A measurement that yields consistent results over time is said to be reliable. When a measurement is prone to random error, it lacks reliability. The reliability of an instrument places an upper limit on its validity (Spector, 1981). A measurement that lacks reliability will necessarily be invalid. There are three basic methods to test reliability : test-retest, equivalent form, and internal consistency.

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A test-retest measure of reliability can be obtained by administering the same instrument to the same group of people at two different points in time. The degree to which both administrations are in agreement is a measure of the reliability of the instrument. This technique for assessing reliability suffers two possible drawbacks. First, a person may have changed between the first and second measurement. Second, the initial administration of an instrument might in itself induce a person to answer differently on the second administration. The second method of determining reliability is called the equivalent-form technique. The researcher creates two different instruments designed to measure identical constructs. The degree of correlation between the instruments is a measure of equivalent-form reliability. The difficulty in using this method is that it may be very difficult to create a totally equivalent instrument. The most popular methods of estimating reliability use measures of internal consistency. When an instrument includes a series of questions designed to examine the same construct, the questions can be arbitrarily split into two groups. The correlation between the two subsets of questions is called the splithalf reliability. The problem is that this measure of reliability changes depending on how the questions are split. A better statistic, known as Chronbach's alpha (1951), is based on the mean (absolute value) interitem correlation for all possible variable pairs. It provides a conservative estimate of reliability, and generally represents "the lower bound to the reliability of an unweighted scale of items" (Carmines and Zeller, p. 45). For dichotomous nominal data, the KR20 (Kuder-Richardson, 1937) is used instead of Chronbach's alpha (McDaniel and Gates, 1991). Variability and Error Most research is an attempt to understand and explain variability. When a measurement lacks variability, no statistical tests can be (or need be) performed. Variability refers to the dispersion of scores.

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DATA ANALYSIS

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INTERPRETATION
1) How many times do you shop in a month?

9% 23%

1 2 3 40% 4 or more

28%

Fig.4.1 INTERPRETATION: In the survey of 100 respondents it was found that 9% shop once in a month, 40% shop twice in a month, 28% thrice and 23% shop four or more times.

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2) What is your age group?

20%

23%

18-28 28-38 38-48 22% 48 and above

35%

Fig.4.2

INTERPRETATION: It was found that respondents age of 18-28 are 23%, 2838 are 35%, 38-48 are 22% and 48 or above are shop.

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3) Indicate your marital status:

7% 8% 30% single married widowed divorced

55%

Fig.4.3

INTERPRETATION: It was found that 30% are single, 55% are married, 8% are widowed and 7% are divorced who went for shopping.

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4) Which type of format would you prefer for shopping?

20%

15% 65%

organized unorganized both

Fig.4.4

INTERPRETATION: : It was found that around 65% respondents shop from both format whereas 20% and 15% shop from organized and unorganized format.

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5) Rate the factors for organized sector: i. Quality

20% 35% 10% 5% veri imp. imp. neutral not so imp. least imp. 30%

Fig.4.5 ii. Price

10% 5% 35% 10% veri imp. imp. neutral not so imp. least imp. 40%

Fig. 4.6

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iii) Variety

12% 6% veri imp. imp. 12% 53% neutral not so imp. least imp. 17%

Fig. 4.7 iii. Credit facility

10%

10%

15%

very imp. imp. neutral not so imp.

40% 25%

least imp.

Fig.4.8

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iv.

Parking facility

15%

5%

very imp. 15% 45% imp. neutral not so imp. least imp. 20%

Fig. 4.9 v. Offers

10%

very imp. 20% 50% imp. neutral not so imp. least imp. 20%

Fig. 4.10
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vi.

Discount
0% 10% very imp. imp. 30% 60% neutral not so imp. least imp.

Fig. 4.11 vii. Fast checkout

10% 20% very imp. 20% imp. neutral not so imp. 30% 20% least imp.

Fig. 4.12 INTERPRETATION: It was found that mostly customer went for shopping at organized sector due to Quality, Offers, Variety and Price of the products whereas factors like fast checkout, credit facility and parking facility does not affect their buying behavior.

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6) Which type of goods purchase from organized or unorganized? i. Formal wear

10%

organized 50% 40% unorganized both

Fig. 4.13 ii. Casual wear

20% 35% organized unorganized both

45%

Fig. 4.14
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iii.

Party wear

15%

45%

organized unorganized both

40%

Fig. 4.15 iv. Sarees

19%

39% organized unorganized both

42%

Fig. 4.16
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v.

Staples

17% 33% organized unorganized both

50%

Fig. 4.17 vi. Spices

20% 38% organized unorganized both

42%

Fig. 4.18
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vii.

Tea and coffee

18% 29% organized unorganized both

53%

Fig. 4.19 viii. Soft drinks

20% 35% organized unorganized both

45%

Fig. 4.20

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ix.

Dairy products

1%

35% organized unorganized both 64%

Fig. 4.21 x. Ice cream

15% 27%

organized unorganized both

58%

Fig. 4.22
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xi.

Fruits

18%

39% organized unorganized both

43%

Fig. 4.23 xii. Vegetables

18%

39% organized unorganized both

43%

Fig. 4.24

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INTERPRETATION: It was also found customers are like to purchase mainly from unorganized or both but they less prefer to shop from organized. People who are quality and variety conscious people shop at oorganized sector.

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CONCLUSION: FINDINGS AND LIMITATIONS

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Findings
Customers preferences for grocery shopping are gradually shifting from local kirana stores to organized convenience stores. Age is one of the most important factors responsible for the changing preference of customers. Brand Choice of customers is changing and this is also influencing shift from kirana to convenience store. . Maximum no of customers belongs to young age group. Maximum no of customers who are came for shopping are married due to family responsibility. Maximum no of customers are educated and aware about retail store. Maximum no of customers are variety and time conscious and desire for many brand under one roof. Maximum no of customers are price conscious so maximum customers belongs to middle class. Maximum no of customers did not compromise quality with discount and offers.

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LIMITATIONS OF STUDY

1. Duration of the Project is not enough to make a conclusion on such a vast subject. Time Constraint has become a big limitation 2. The Sample Size which was taken for drawing a conclusion was too small to get an accurate result. 3. The geographical scope of the study is limited to Mathura alone. 4. The sample size is confined to 100. 5. The consumers attitude may change in future due to change in their standard of living. 6. The Respondents were sometimes unable to spend much time for filling up the, questionnaire. So, the chances for bias in the respondents answer were on the higher side.

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Conclusion
The past 4-5 years have seen increasing activity in retailing. And, various business houses have already planned for few investments in the coming 2-3 years. And though the retailers will have to face increasingly demanding customers, and intensely competitive rivals, more investments will keep flow in. And the share of organized sector will grow rapidly. retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.. The country is witnessing a period of boom in retail trade, mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping center builders and managers. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in sweeping, positive changes in the quality of life in the metros and bigger towns, is also bringing in slow changes in lifestyle in the smaller towns of India. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in narrowing down the spending differences between the consumers of larger metros and those of smaller towns. Lastly I want to conclude my project in some points-

customers because the purchasing power of this class is rapidly growing as well as the class is also growing. -off conscious so retail outlets are mainly focused on them.

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because there are no bargaining system so the have a trust that there is no cheating.

offers to attract customers.

increased profits and no. of customers.

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BIBLIOGRAPHY
BOOKS: Kothari, C.R., Research Methodology, Second Revised Edition, New age International Publishers, 2004, New Delhi.

Malhotra, Naresh K., Marketing Research, Fifth Edition, Pearson Education, 2008, New Delhi

WEBSITES : www.google.com www.wikipedia.com www.ibef.org

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ANNEXURE

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ANNEXURE
QUESTIONNAIRE: I am a student of GLA INSTITUTE OF TECHNOLOGY AND MANAGEMENT and am working on a projectCOMPARATIVE STUDY OF CUSTOMER PERCEPTION ABOUT ORGANISED AND UNORGANISED RETAIL SECTOR OF MATHURA. I request you to spare a while to fill, this questionnaire, needed for the project assigned to me as a part of my curriculum. 1) How many times do you shop in a month? a. b. 1 2 c. d. 3 4 or more

2) What is your age group? a. 18-28 b. 28-38 c. 38-48 d. 48 or above

3) Indicate your marital status: a. Single b. Married c. Widowed d. Divorced

4) Which type of format would you prefer for shopping? a. Organized b. Unorganized c. Both

5) Rate the factors for organized sector: FACTOR S Quality Price

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VERY IMPORTAN NEUTRA NOT SO LEAST IMPORTAN T L IMPORTAN IMPORTAN T T T

Variety Credit facility Parking facility Offers Discount Fast checkout

6) Which type of goods you purchase from?

ITEMS APPARELS: Formal wear Casual wear Party wear Sarees FOOD AND BEVERAGES: Stapels Spices Tea and coffee Soft drinks Dairy products Ice cream FARM PRODUCTS: Fruits Vegetables

ORGANIZED

UNORGANIZED

BOTH

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