Ms Project Retail Operations

8/11/2019 Ms Project Retail Operations

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1. INTRODUCTION

Retailing in India is receiving global recognition and attention and this

emerging market is witnessing a significant change in its growth and

investment pattern. It is not just the global players like Wal-Mart, Tesco and

Metro group are eying to capture a pie of this market but also the domestic

corporate behemoths like Reliance, KK Modi , Aditya Birla group, and

Bharti group too are at some stage of retail development. Reliance,

announced that it will invest $3.4 billion to become the country's largest

modern retailer by establishing a chain of 1,575 stores by March 2007. The

last couple of years have been rosy for real estate developers and the

retailers are finding suitable retail space in prominent locations.

The industry is buoyant about growth and the early starters are in

expansion mood. There is increased sophistication in the shopping pattern of

consumers, which has resulted in big retail chains coming up in most metros;

mini metros and towns being the next target. Consumer taste and preferences

are changing leading to radical alteration in lifestyles and spending patterns

which in turn is giving rise to new business opportunities. Companies need

to be dynamic and proactive while responding to the ever-changing trends in

consumer lifestyle and behavior.

Retailing in India is currently estimated to be a USD 200 billion

industry, of which organized retailing makes up 3 percent or USD 6.4

billion. By 2010, organized retail is projected to reach USD 23 billion and in

terms of market share it is expected to rise by 20 to 25 per cent. The report

also predicts a stronger retailer growth than that of GDP in the coming five

years.



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The generic growth is likely to be driven by changing lifestyles and by

strong surge in income, which in turn will be supported by favorable

demographic patterns. Rapid growth in international quality retail space

brings joy to shoppers and shopping malls are becoming increasingly

common in large cities, and announced development plans project at least

150 new shopping malls by 2008. The number of department stores is

growing at a much faster pace than overall retail, at 24 per cent annually.

Supermarkets have been taking an increasing share of general food and

grocery trade over the last two decades.

Overview

The attitudinal shift of the Indian consumer in terms of "Choice

Preference", "Value for Money" and the emergence of organised retail

formats have transformed the face of Retailing in India. With a growth over

20 percent per annum over the last 5 years, organised retailing is projected to

reach US$ 23 Billion by 2010.

The Indian retail industry though predominantly fragmented through

the owner -run " Mom and Pop outlets" has been witnessing the emergence

of a few medium sized Indian Retail chains, namely Pantaloon Retail, RPG

Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International.

Given the attractiveness of the Indian retail sector, foreign retailers

like Wal-Mart, Carrefour SA, Europe's largest retailer and Tesco Plc, the

UK's largest retailer, were keen to enter this growing market, despite the

Indian retail sector being closed to foreign direct investment (FDI).

In the last few years, Indians have gone through a dramatic transformation in

lifestyle by moving from traditional spending on food, groceries and



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clothing to lifestyle categories that deliver better quality and taste. Modern

retailing satisfies rising demand for such goods and services with many

players entering the bandwagon in an attempt to tap greater opportunities.

Traditionally retailing in India can be traced to

The emergence of the neighborhood „Kirana‟ stores catering to the

convenience of the consumers

Era of government support for rural retail: Indigenous franchise

model of store chains run by Khadi & Village Industries

Commission

Textiles sector with companies like Bombay Dyeing, Raymond's,

S Kumar's and

Grasim first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and

established a series of showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a

shift from Manufactures to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet

M and Music World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers, mainly in

urban areas, with facilities like car parking targeted to provide a

complete destination experience for all segments of society.



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SCENARIO OF RETAILING IN INDIA

➢ Retailing is the most active and attractive sector of last decade while the

retailing industry itself has been present since ages in our country it is onlythe recent past that it has witnessed so much dynamism.

➢ The emergence of retailing in India has more to do with the increased

purchasing power of buyers, especially post liberalization, increase in

product variety and increase in economies of scale.

➢ The retails sales are at the highest point in history and new technologies

are improving retail productivity.

IMPORTANTANCE OF RETAILING

➢ Retailing has a tremendous impact on the economy. It involves

high annual sales and Employment.

➢ Retailers participate in the sorting process by collecting and

assortment of goods and services from a wide variety of suppliers and

offering them for sale.

➢ They provide information to consumers through advertising,

display and signs and sales personnel.

➢ Retailing in a way is the final stage in marketing channels for

consumer products.

Retailers provide the vital link between the producers and ultimate

consumers.



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2. GROWTH OF RETAILING IN INDIA

BY 2010 Rs. 14,00,000 cr GROWTH RATE IS 8%.

3. RETAILING FORMATS IN INDIA

1. Malls: The largest form of organized retailing today. Located mainly

in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq

ft to 7,00,000 sq ft and above. They lend an ideal shopping experience

with an amalgamation of product, service and entertainment, all under

a common roof. Examples include Shoppers Stop, Pantaloon.

2. Specialty Stores: Chains such as the Bangalore based Kids Kemp, the

Mumbai books retailer Crossword, RPG's Music World and the Times



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Group's music chain Planet M, are focusing on specific market

segments and have established themselves strongly in their sectors.

3.

Discount Stores: As the name suggests, discount stores or factoryoutlets, offer discounts on the MRP through selling in bulk reaching

economies of scale or excess stock left over at the season. The product

category can range from a variety of perishable/ nonperishable goods

4. Department Stores: Large stores ranging from 20000-50000 sq. ft,

catering to a variety of consumer needs. Further classified into

localized departments such as clothing, toys, home, groceries, etc.

5. Department Stores: Departmental Stores are expected to take over

the apparel business from exclusive brand showrooms. Among these,

the biggest success is K Raheja's Shoppers Stop, which started in

Mumbai and now has more than seven large stores (over 30,000 sq. ft)

across India and even has its own in store brand for clothes called

Stop!.

6. Hypermarts/Supermarkets: Large self service outlets, catering to

varied shopper needs are termed as Supermarkets. These are located

in or near residential high streets. These stores today contribute to

30% of all food & grocery organized retail sales. Super

Markets can further be classified in to mini supermarkets typically 1,000 sq

ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000

sq ft. having a strong focus on food & grocery and personal sales.



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7. Convenience Stores: These are relatively small stores 400-2,000 sq.

feet located near residential areas. They stock a limited range of high-

turnover convenience products and are usually open for extended

periods during the day, seven days a week. Prices are slightly higher

due to the convenience premium.

8. MBO’s: Multi Brand outlets, also known as Category Killers, offer

several brands across a single product category. These usually do well

in busy market places and Metros.

4. TOP RETAILERS OF INDIA

Sr NAME COMPANY SALE(Cr)

1 BIG BAZAAR PANTALOON 650

2 FOOD WORLD RPG 545

3 SHOPPER STOP K.RAHEJA 404

4 NILGIRIS NILGIRIS 250

5 LIFE STYLE LAND MARK 230

6 SUBIKSHA VISHWAPRIYAGROUP 200

7 WEST SIDE TATA(TRENT) 130

8 ADANI ADANI 100

9 PIRAMYD PIRAMALS 79

10 D‟MART AVENUE SUPER 78

Real estate is key for a retail business during its investment phase. Drop in interest rates have made property buying and leasing viable.

100% FDI in Construction & Real Estate now permitted.

Over 600 malls as on 2012.

Total investments of USD 5 bn as on 2011.



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Real Estate development in India – poised for Dramatic growth.

Key Factors Driving Retail Growth and Demand:

Rapid urbanization: This implies availability of a larger number of

products to bigger towns & cities.

Increased Spending Power: Number of households above INR

90,000 ($2,000) per annum projected to grow to 48% of total by 2010

from 31% in 2002. (Consumer Spend CAGR of 11.5% over the last

decade.)

Larger Working Population: Working population (between 15-65

years) would continue to rise and reach a peak in 2020

Entry of New formats: Easing of real-estate laws, encouraging large-

scale building of malls and complexes and urban planning reform -

has led to a more progressive attitude towards commercial activity and

investment in developing malls more focused on organized retailing.

In the near term different shopping formats would emerge such as:

1. Shopping Malls- These are becoming increasingly common in large cities

and development plans. It is projected that at least 150 new shopping malls

by 2009.



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2. Department store- This segment is growing much faster than overall

retail, the number of stores has been growing by an annual 24% and sales

have grown at around 34% during 1999-2002

3. Hypermarkets- This segment been taking an increasing share of general

food & grocery trade, as well as hard goods.

5. CHALLENGES FOR THE RETAILER

Regulatory Pressures:

1. FDI Policy

51% FDI allowed in single-brand retailing in

2006 Strong opposition by left wing communist

leaders against entry of international big-box

retailers in India

2. Local Opposition

Growing opposition against local large scale

retailers e.g. Reliance Opposition to big-box

retailing in some states like

3. Shops & Commercial Changes from state to state. Prescribes working

conditions, opening and closing hours, holidays,

shift times for employees etc.

4.

Contract labor

registration Act

Changes from state to state. Prescribes minimum

wages (Minimum Wages Act 1948), working

conditions, employee bonus and PF contributions

for labor etc.



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Poor Infrastructure Conditions:

Inadequate infrastructure of logistics network and roads, ports and freight

etc. creates significant supply chain issues resulting in out of stocks and

inadequate fill ratios. Also an issue with consumer access to the stores.

Growth and Expansion Challenges:

Scramble to lock in quality real estate by retailers led by aggressive growth

plans and rising real estate costs.

Stamp duty charges on transfer of property varies from state to state

Conversion of agricultural land acquired into commercial land is a long

drawn process Unavailability of good prime locations for retailers in metros

and other cities due to fragmented land holdings.

Business Partners Collaboration Challenges:

Higher levels of interdependence and collaboration are required to supportgrowth. Deeper integration between partners and adoption of standards and

enabling technologies in order to share data and work toward common goals

are needed.

6. RETAIL OPERATION

DEFINITION OF RETAIL OPERATION

➢ Retail operation involves managing the day to day function of retail

establishments like department stores, grocery stores and specialty shop.



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➢Retail operations professionals manage retail establishments on a daily

basis and are responsible for maximizing store profits.

WHY RETAIL OPERATION IS SO IMPORTANT

Retail operation is important because through retail operation we can

understand the functions of various departments and also helps to know how

the stock will go to the floor and how to put the stock order to the vendor.

Retail operation depends largely on two dimension, margin and turnover.

OBJECTIVE OF THE STUDY

➢ To identify the performance of retail operation of big bazaar

➢ To understand the quality of services maintained in the store

➢ To determine the performance of sales person in the store

➢ To understand the availability of products in the store

➢ To understand the working of various departments

➢ To identify the effectiveness of atmosphere in the store

➢ the study is aimed at understanding how an organization practically

works in the real situation.

WHY RETAIL OPERATION IS SO IMPORTANT

Retail operation is important because through retail operation we can

understand the functions of various departments and also helps to know how

the stock will go to the floor and how to put the stock order to the vendor.

Retail operation depends largely on two dimension, margin and turnover.



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Margin and turnover depends essentially on the type of business and the

style and scale of the operation.

OBJECTIVE OF THE STUDY

➢ To identify the performance of retail operation of big bazaar

➢ To understand the quality of services maintained in the store

➢ To determine the performance of sales person in the store

➢ To understand the availability of products in the store

➢ To understand the working of various departments

➢ To identify the effectiveness of atmosphere in the store

➢ The study is aimed at understanding how an organization practically

works in the real situation.



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7. INTRODUCTION ABOUT BIG BAZAAR

Big Bazaar is Indian personification of retail. It‟s like an Indian bazaar

or mandi or mela, the environment created by traders to give shoppers a

sense of moment. Its personality is of being an entity away from fancy or

pretty and being authentically "no-frills". Kishore Biyani never hired any

foreign consultant for Big Bazaar which is evident from Indian-specific

personality of the brand. The brand‟s personality is self -explanatory by its

tag-line only. This statement places Big Bazaar at the top of customer‟s

mind. It reflects that entrepreneurship and simplicity are the essence of

character of Big Bazaar. To use predatory pricing is not in the

personality of Big Bazaar, they never sell goods below the price they have

purchased it. Big Bazaar, the "Indian Wal-Mart", is the modern Indian

family's favorite store. Big Bazaar symbolizes modern retail, the business

which isn‟t looked up to in our country, is now in the eyes of many multi -

national biggies. Big Bazaar has shown a robust growth in recent years. Big

Bazaar, is the chain of retail stores of the big banner Pantaloon Retail (India)Ltd., which in turn is a segment of the Kishore Biyani, regulated Future

Group of Companies. Moreover the customer friendly ambiance and the

organized retailing of products also make Big Bazaar one of the successful

retail companies in India.

Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a

huge array of goods of good quality for all at affordable prices. Big Bazaar

with over 80 outlets in different parts of India is present in both the metro

cities as well as in the small towns. This large format store comprise of

almost everything required by people from different income groups. It varies

from clothing and accessories for all genders like men, women and



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children, playthings, stationary and toys, footwear, plastics, home utility

products, cosmetics, crockery, home textiles, luggage gift items, other

novelties, and also food products and grocery. The added advantage for the

customers shopping in Big Bazaar is that there are all time discounts and

promotional offers going on in the Big Bazaar on its salable products.

COMPANY PROFILE OF BIG BAZAAR

Pantaloon Retail (India) Limited, is India‟s leading retailer that

operates multiple retail formats in both the value and lifestyle segment of the

Indian consumer market. Headquartered in Mumbai (Bombay), the company

operates over 16 million square feet of retail space, has over 1000 stores

across 73 cities in India and employs over 30,000 people. The company‟s

leading formats include Pantaloons, a chain of fashion outlets, Big

Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket

chain, blends the look, touch and feel of Indian bazaars with aspects of

modern retail like choice, convenience and quality and Central, a chain of

seamless destination malls. Some of its other formats

include Brand Factory, Blue Sky, all, Top 10 and Star and Sitara. The

company also operates an online portal, www.futurebazaar.com

Future Value Retail Limited is a wholly owned subsidiary of

Pantaloon Retail (India) Limited. This entity has been created keeping in

mind the growth and the current size of the company‟s value retail business,

led by its format divisions, Big Bazaar and Food Bazaar. The company

operates 120 Big Bazaar stores, 170 Food Bazaar stores, among other



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formats, in over 70 cities across the country, covering an operational retail

space of over 6 million square feet. As a focussed entity driving the growth

of the group's value retail business, Future Value Retail Limited will

continue to deliver more value to its customers, supply partners,

stakeholders and communities across the country and shape the growth of

modern retail in India.

A subsidiary company, Home Solutions Retail (India) Limited,

operates Home Town, a large-format home solutions store, Collection,

selling home furniture products and eZone focused on catering to the

consumer electronics segment. Pantaloon Retail is the flagship company of

Future Group, a business group catering to the entire Indian consumption

space.

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani,

is one of India‟s leading business houses with multiple businesses spanning

across the consumption space. While retail forms the core business activity

of Future Group, group subsidiaries are present in consumer finance, capital,

insurance, leisure and entertainment, brand development, retail real estate

development, retail media and logistics.

Led by its flagship enterprise, Pantaloon Retail, the group operates over 16

million square feet of retail space in 73 cities and towns and 65 rural

locations across India. Headquartered in Mumbai (Bombay), Pantaloon

Retail employs around 30,000 people and is

listed on the Indian stock exchanges.

The group‟s specialty retail formats include supermarket chain - Food

Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home



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improvement chain - Home Town and rural retail chain - Aadhaar, among

others.

Future Group believes in developing strong insights on Indian consumers

and building businesses based on Indian ideas, as espoused in the group‟s

core value of „Indianness.‟ The group‟s corporate credo is, „Rewrite rules,

Retain values.‟

Future Group shall deliver Everything, Everywhere, Everytime for Every

Indian Consumer in the most profitable manner.



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8. BIG BAZAAR STORE STRCTURE

HUMAN RESOURCES DEPARTMENT:

Man power planning is based on the square foot area, HR department also

take care of training and development needs, employee welfare and

motivation.

Core Activities Of HR:

i. Personal file maintenance

ii. Leave cards and comp of slips

iii. Employee issue handling

iv. Conflict management (If there is any conflict between the team members

or employees, the HR department handle the situation)

v. Counseling.

Big Bazaar gives ample importance to human resources as a result they have

high degree of employee retention.



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CUSTOMER SERVICE DEPARTMENT

Customer Service department is responsible for entire customer satisfaction

and solving customer problems and customer retention and customer

engagement activities to create excitement for customer during shopping

period.

SALES DEPARTMENT:

Food Bazaar: It is divided into three types

A) . FMCG Food - Eatable Items. It is categorized into twelve types

1. Ready to eat

2. Ready to cook

3. Ready to fry

4. Noodles

5. Jams

6. Pickles7. Sauce

8. Tea

9. Coffee

10. Desert Mix

11. Detergent bar

12. Detergent powder

B). FMCG Non Food Items: It is divided into three parts

1. Spick and Spain - Detergent powder that clean all utensils products



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2. Fabric Clean - detergent powder that clean all household products

3. Head to toe - all body wash products like shampoo, soap.

C). GROSSERY: It is split into 2 types

a) GRAINS & FOODSTUFFS

1. Rice

2. Pulse

3. Sugar

4. Masala & Spices

5. Cooking Medium (oil, ghee)

6. Salt

7. Cereals

8. Flours

b) BEVERAGES:

i. Chilled station

a. Water

b. Soda

c. Concentrated powders

d. Concentrated drinks

e. Juices

f. Dairy products

g. Butter & curd



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D) CONSUMER DURABLE GOODS

1. Sight & Sound

➢ Television

➢ LCD

➢ DVD player

➢ Home theatre

➢ Music system

2. Cooling & Cleaning

➢ Refrigerator

➢ Washing Machine

➢ AC & Fan

➢ Air cooler

3. Cook & Serve

➢ Mixture machine

➢ Micro oven

➢ Juicer machine

➢ Grinder machine

➢ Food processor

➢ Electric rice cooker



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Stock in warding:

It means getting the stock from the warehouse, category will sent ware housestock list. In that we sent our stock request, the category will approve &

make a purchase order, after approving the purchase order the warehouse

people will send the stock to the store. Big Bazaar has strategically located

warehouses to replenish their stock products on time.

Home delivery process:

After the Customer selects the product the customer will get the product

delivered within one or two days. If the stock is not available in the

warehouse, minimum one weak or fifteen days to book the product. Once

the booking are over, the customer booking list will sent to category and the

category will arrange the stock from the concerned brand.

After sales in the floor:

After selling the product to the customer if there are any complaints

regarding the products, the products is rectified within 24 hours. Big Bazaar

tries its best to satisfy its customers.

4. Big Bazaar also offers a wide range of furniture like sofa sets, beds,

dining tables, chairs, center tables etc.

Big Bazaar also offers loads of other products to consumers from all

walks of life like laptops, books, games, toys, clothes both men and

women, footwear etc. under one roof.

MARKETING DEPARTMENT:



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Marketing is the process of planning and executing the conception,

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

exchange that satisfy individual and organization objectives. Marketing

department is responsible for promoting the product and the store. It looks

Big Bazaar has highly efficient marketing teams that design fruitfull

marketing strategies to support their retail operations. One of such

path breaking strategy used by Big Bazaar is the Republic Day and

Independence Day sale. These annual sales are hugely popular among

consumers as all the products are provided at throw away prices.

LOGISTICS DEPARTMENT;

➢ Logistics means sale officers will give the indent to the buyers(stock

requirements) as per the sales

➢ Buyers will raise the purchase order to the vendor. Then the vendor will

give the stock as per the purchase order through sales tax invoice (tax

invoice means 2.5% vat is raised by vendors)

➢ The invoice and purchase order will be received by security officers.

Security officer will raise the inward register number and the stock will be

received by European article number.

➢ After receiving the stock, we will made goods received note

➢ By good received notes, the stock will be updated in SAP, then the stock

will go to the floor and the customer will use the stock and at last the stock

will be invoiced by cashier.



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➢ Stock transfer category needs to raise stock transfer order. As per the

stock transfer order, store warehouse will make stock transfer note.

➢ After giving the purchase order number, automatically purchase order

will display in the system

Order creation:

➢ Vendor will get the requisition order from the concerned department

➢ Vendor will visit the section pertaining to their categories to discuss the

requirements to the food bazaar

➢ Record the expiry date (date by which items needs to be delivered)

Signing of purchase order:

➢ Final purchase order to be taken to the assistant store manager

➢ Warehouse in charge / assistant store manager to sign the purchase order

INFORMATION TECHNOLOGY (IT)

IT is an important component of Big Bazaar‟s retail operations. They

make use of IT on wide range ranging from surveillance, public

announcement system of offers for customers, billing etc.

SECURITY & MAINTAINANCE OR HOUSEKEEPING

Security at supermarket is always present and alert to avert any

untoward incidences. The housekeeping staff ensures that all the racks in the



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supermarket are packed to the full capacity with fresh stock of goods. They

also ensure that the customer gets to shop in a clean and cool ambience.



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9. CONCLUSION

Indian retail sector is witnessing one of the most hectic marketing

activities of all times. The companies are fighting to win the hearts of

customer who is god said by the business tycoon. There is always a “first

mover advantage” in an changes in the buying habits of people. It has

created formats, which provide all items less than one roof at low rates.

The consumer‟s preferences are changing & they are moving from

traditional Kirana stores to modern retails outlet. It‟s the main challenge to

the modern retail outlets to attract the customers towards them form that of

competitors. To attract more customers companies have to carry out the

promotional activates in unique way. BIG BAZZAR has maintained that

uniqueness & has succeeded to attracting customers. Our conclusion is that

consumer is the focus of retail business and the retailers should serve the

consumer better, faster and at less cost. The promotional activity of the

company, which famous as less price than others as it says “Nobody Sells

Cheaper and Better” is made its place in minds of customer. As the

competition is becoming stiff in the market the activities conducted by the

company are unique that have brought fruitful result to the company. Among

them sales promotions is one of the leading activity or unique among all

other activities & has high influence on the customer walk-in.



10. BIBLIOGRAPHY

Text Books:

Marketing Management by Philip Kotler

Retail Marketing

Websites:

www.futuregroup.com

www.retailindustryabout.com

www.pantaloon.com

Documents

Ms Project Retail Operations