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SUMMER TRAINING REPORT ON
IMPACT OF PROMOTIONAL EVENTS & ACTIVITIES ON SALES & FOOTFALLS
FOR
GURGAON CENTRAL
BY
VIBHA SHARMA
118
In Partial Fulfillment for the award of the degree
Post Graduate Diploma In Management
2010-12
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: [email protected] Website: www.ndimdelhi.org
1
SUMMER TRAINING REPORT ON
IMPACT OF PROMOTIONAL EVENTS & ACTIVITIES ON SALES & FOOTFALLS
For
Gurgaon Central
Under the supervision
Of
Mr. Biswajeet Das
Submitted By-
Vibha Sharma
Roll No. 118
2
Submitted to-
Ms. Anita Saxena
Asst. Professor
ACKNOWLEDGEMENT
Success is an endeavor, calls for the cooperation and guidance from the faculty,
seniors and colleagues. I hereby acknowledge that I have completed the
Summer Internship Project from Gurgaon Central mall on ‘Impact of
promotional events and activities on sales and footfalls’ under the guidance
of Prof. Anita Saxena.
I extend my gratitude towards her for continuously giving full co-operation and
suggestion for the betterment of the project as well as helping me to solve the
difficulties I had during the course of internship.
I would like to thank Mr C.V Rao, Mall Manager, Gurgaon Central. I feel
obliged since he gave me the opportunity to peep into the Retail Industry and
develop a good learning. I would also like to express my deepest gratitude to
my Industry Mentor Mr. Biswajeet Das, Marketing Manager, Gurgaon Central,
for providing me with the information and co-operation to carry out the project.
I would further like to extend my sincere thanks to Mr. Pankaj Chandan, HR
Manager, Gurgaon Central, for his encouragement and moral support. I would
also like to thank the employees of Central Mall and to all my friends for their
support and helping hands.
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DECLARATION
I Vibha Sharma student of New Delhi Institute of Management, New Delhi, of
batch 2010-12 declare that every part of the Project Report ‘Impact of
promotional events and activities on sales and footfall’ that I have submitted is
original.
I was in regular contact with the nominated guide and contacted several times
for discussing the project.
Date of project submission:_________________
(Vibha Sharma)
Faculty’s Comments:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Ms. Anita Saxena
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TABLE OF CONTENTS
1. Executive Summary-----------------------------------------------------------------062. Company Background--------------------------------------------------------------07
2.1.Future group---------------------------------------------------------------------072.2.Board of Directors--------------------------------------------------------------082.3.Corporate Statements-----------------------------------------------------------102.4.Future Group Timelines--------------------------------------------------------122.5.Joint Venture Partnership-----------------------------------------------------142.6.Pantaloon Retail (India) Limited---------------------------------------------162.7.Central- Seamless Mall---------------------------------------------------------18
2.7.1.1. Marketing Mix----------------------------------------------------192.7.1.2. The Central Services---------------------------------------------23
3. Overview of Industry----------------------------------------------------------------243.1.Retailing--------------------------------------------------------------------------243.2.Indian Retail Industry----------------------------------------------------------253.3.Top Retail Companies in India----------------------------------------------313.4.Conclusion on Retail Industry in India------------------------------------34
4. The Project---------------------------------------------------------------------------384.1.Great India Shopping Festival-----------------------------------------------384.2.Shop More Get More-----------------------------------------------------------414.3.Do Denim Promotion-----------------------------------------------------------434.4.Research on Consumer Behavior--------------------------------------------474.5.Do Denim Survey Analysis---------------------------------------------------48
5. Major Learning----------------------------------------------------------------------546. Constrain Faced----------------------------------------------------------------------567. Recommendation--------------------------------------------------------------------578. Conclusion---------------------------------------------------------------------------599. Annexure-----------------------------------------------------------------------------60
9.1.Research Quesionnaire-1------------------------------------------------------609.2.Research Quesionnaire-2------------------------------------------------------62
10. References -----------------------------------------------------------------------63
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EXECUTIVE SUMMARY
Retail industry is a growing sector in the Indian Economy. This truth has very wisely been implemented by the Indian Retailers. Future Group is one of the major players in this retail sector. Therefore, to identify the people requirement at the right time, at the right place is one of the competitive advantages for a retail industry.
This project is on ‘Impact of promotional events and activities on sales and footfalls’. The study was done on a Future Group mall, Gurgaon Central, which is a subdivision of Pantaloon Retail India Ltd.
Every weekend some new activities and events takes place in the mall in order to attract the customer and to increase the sales and thereby the footfalls. These events, promotional offers make this mall different from other malls surrounding that area. It also provide the customer a true experience of shop, eat and celebrate along with some value added touch points like Flower central, Radio Central, DJ Central, Beauty Central, Wi-Fi Central and Gift Central. Customers really get the newest experience once they get into the mall.
The project deals with the marketing activities and promotional offers during that period which include “The Great Indian Shopping Festival”, “Shop More Get More”, which intended to increase the sale and the footfall. It also includes the analysis of the above mentioned offers and the other events like “Do Denim” etc. on the overall sales.
The data for studying the Consumer Behavior in relation to the malls was collected through the Questionnaire filled by people visiting malls and vice versa. This helped me to identify the viable areas of improvement within the mall than its competitors are, be it any other mall like Shoppers Stop or Lifestyle, any Supermarket or any place to stroll.
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COMPANY BACKGROUND
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 company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.
The group’s specialty retail formats include supermarket chain - Food Bazaar, sportswear retailer - Planet Sports, electronics retailer - eZone, home improvement chain -Home Town and rural retail chain - Aadhaar, among others. It also operates popular shopping portal - www.futurebazaar.com.
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.’
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Board Of Directors
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. To know more,
Mr. Gopikishan Biyani, Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the textile business.
Mr. Rakesh Biyani, Whole time Director
Rakesh Biyani, is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats.
Mr. Vijay Biyani, Whole time Director
Vijay Biyani has more than twenty years of experience in manufacturing, textiles and retail industry and has been actively involved in the financial, audit and corporate governance related issues within the company.
Mr. Kailash Bhatia, Whole time Director
He has over 28 years of valuable experience in the fashion business and has worked with some of the well known companies like Arvind Mills and Weekender.
Mr. Vijay Kumar Chopra, Independent Director
V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI.
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Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others.
Dr. D O Koshy, Independent Director
Dr. Darlie Koshy, a PhD from IIT Delhi and rank holder in MBA headed NID (Ministry of Commerce, GOI) as Director for 2 terms of office prior to which he was the founding Chairperson of Fashion Management at the National Institute of Fashion Technology (Ministry of Textiles, GOI). He is currently the Director General & CEO of ATDC Network of 58 Institutes / Centres and two premier campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by Ministry of Textiles, GOI). Dr. Koshy received the Delhi IIT Alumni Award for contribution of National Development in 2008. Dr. Darlie Koshy was also conferred with the “Star of Italian Solidarity” one of the highest civilian awards of the Government of Italy. Dr. Koshy is the author of three pioneering books including the much acclaimed “Indian Design Edge”.
Ms. Bala Deshpande, Independent Director
Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others.
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Mr. Anil Harish, Independent Director
Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.
Corporate Statements
Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when they need.
We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.
It is this understanding that has helped to succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. “Rewrite Rules. Retain Values”.
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GROUP VISION
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
GROUP MISSION
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
CORE VALUES
Indianness: confidence in ourselves.
Leadership: to be a leader, both in thought and business.
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Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.
Openness: to be open and receptive to new ideas, knowledge and information.
Valuing and Nurturing Relationships: to build long term relationships.
Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
FUTURE GROUP TIMELINES (Major Milestones)
1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons trouser, India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.
1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.
1995 John Miller – Formal shirt brand launched.
1997 Company enters modern retail with the launch of the first 8000 square feet store, Pantaloons in Kolkata.
2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and Hyderabad.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central - India’s first seamless mall is launched in Bangalore.
2005 Future Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League Clothing and Planet Retail.Sets up India’s first real estate investment fund Kshitij to build a
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chain of shopping malls.
2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products.
Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone.
Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali.
Forms joint ventures with US office stationery retailer, Staples.
2007 Future Group crosses $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress (Barcelona).Futurebazaar.com becomes India’s most popular shopping portal.
2008 Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark.
2009
27 March 2009: Global French menswear brand ‘CELIO’ launches outlet in Mumbai.
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29 may 2009: Indore central a seamless Mall now opens in the heart of Indore city.
13 Nov 2009: ‘Ahmedabad Central’-the seamless Mall in Ahmedabad .
2010
12 Feb 2010: Tata Teleservices in strategic Partnership with Future Group.
23 March 2010: Future Group ropes in Sachin Tendulkar to co-create Sach Toothpaste.
16 April 2010: Future group launches ‘The Great Indian Shopping Festival 2010.
15 Dec 2010: Future group introduces First ‘Family Center’ in AP.
2011
14 March 2010: Future Group and GLPC kicks off “Manglam yatra” –a 4 day women entrepreneur mela at Big Bazaar.
14 April 2011: Big Bazaar makes its foray in Patna .
15 April 2011: Future group launches Great India Shopping festival 2011.
JOINT VENTURE PARTNERSHIP
Generali Group
The third largest insurance company in Europe, Generali was founded in 1831 and has dominant presence in Europe, South-east Asia and China. The joint venture companies are present in life and general insurance space in India.
Staples Inc
US-based, Staples Inc is the world’s largest office stationery retailer. The joint-venture company currently operates stores in Mumbai, Bangalore, Delhi and other Indian cities.
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]Celio
French fashion wear maker
Clark
C&J Clark International Ltd. is a UK-based footwear and accessories retailer. The Future Group has entered into a 50:50 joint-venture (JV) to form 'Clarks Future Footwear Ltd.'. The JV launched its first (1,600 sq.ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011. The brand seeks to gain a share of the premium segment in this category.
Franchisee & Licensee Relationships
Converse, Speedo, Lee Cooper, Wilson, Prince, Callaway, Spalding, Airwal
AWARDS & RECOGNITION FOR FUTURE GROUP (2009)
CNBC Awaaz Consumer Awards 2009
Most Preferred Multi Product Chain - Big Bazaar
Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar
Images Fashion Forum 2009
Most Admired Fashion Group Of The Year - Future Group
Most Admired Private Label - Pantaloons, the lifestyle format
Critic’s Choice For Pioneering Effort In Retail Concept Creation –
Central
Coca-Cola Golden Spoon Awards 2009
Most Admired Food & Grocery Retailer Of The Year
Most Admired Food Court
Most Admired Food Professional
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Pantaloon Retail (INDIA) LIMITED
Pantaloon Retail (India) Limited, is India’s leading retail company with
presence across multiple lines of businesses. The company owns and manages
multiple retail formats that cater to a wide cross-section of the Indian society
and is able to capture almost the entire consumption basket of the Indian
consumer. Headquartered in Mumbai, the company operates through 4 million
square feet of retail space, has over 140 stores across 32 cities in India and
employees over 20000 people.
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Pantaloon Retail forayed into modern retail in 1997 with the launching of
fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Bid Bazaar, a
hypermarket chain that combines the look and feel of Indian bazaars, with
aspects of modern retail, like choice, convenience and hygiene. Food Bazaar, a
food and grocery chain followed this.
In 2004, Central-‘Shop, Eat, Celebrate’- India’s first seamless mall, a
subdivision of Pantaloon Retail, was launched in Bangalore. ‘Seamless because
one sees separate showrooms of many brands llike Tommy Hilfiger, United
Colors Of Benetton even Shoppers Stop in a mall, but in Central Mall one can
see huge ranges of brands, items, styles, sizes under single roof. Central is now
a well established chain of malls in South India. Launching the 1st mall of its
kinds in Bangalore, now Central is operational in five more cities as well, in
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Hyderabad city as Hyderabad Central, Vadodara as Vadodara Central, two in
Mumbai as Mumbai Central Vashi and Gurgaon, two in Pune as Pune Central 1
& 2 and in Gurgaon as Gurgaon Central.
Ina short span of its existence Central has revolutionized and redefined the
shopping experience in India. Central want to establish itself as the Fashion
Mall on India by offering most fashionable and trendy apparels and non apparel
items. At Central, customer no longer only shop, they get SHOP-ATAINED.
CENTRAL SEAMLESS MALL:-SHOP, EAT, &
CELEBRATE
Gurgaon Central was establishing in April ’08. Central is a showcase, seamless
mall and the first of its kind in India. The thought behind this pioneering
concept was to give customers an unobstructed and a pure shopping experience
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and to ensure the best brands in the India market are made available to the
discerning Indian customer.
Central offers everything for the urban aspiration shopper to Shop, Eat and
Celebrate. Located in the heart of the city, Central believes its customers should
not have to travel long distances to reach us; instead we must be present where
customers frequently visit.
Central houses over 500 brands across categories, such as apparel, footwear and
accessories for men. Women, children and infants, apart from a whole range of
Music, Books, Coffee Shops, Food courts, Super Markets (Food Bazaar), Fine
Dining Restaurants, Pubs and Discotheques. The mall also has a separate
section for services such as Travel, Finance, Investment, Insurance,
Concert/Cinema Ticket Booking, Bill Payments and miscellaneous services. In
addition, Central houses Central Square, a dedicated space for product launches,
impromptu events, daring displays, exciting shows, and art exhibition. Central is
an integral part of the city and in the long run a City should become part of
CENTRAL.
Marketing Mix
Placing
Located in the heart of the city,Central believes its customers should not travel
long distances to reach them, instead they must be present where customers
frequently visit. Quoting an evidence for the above statement, Gurgaon central
is located on M.G Road that connects Delhi with Gurgaon. There are various
other malls also located on the same road and thus attracts huge crowd during
the day time and specially a sight to see during the evening time. And not to
forget the New Metro coming up right in front of the mall will give it even more
connectivity with a distant traveler.
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Products
Central houses over 500 brands across categories, such as apparels and non
apparels. Gurgaon Central is a four story mall. Starting from its ground floor it
has a wide range of international brands of apparels like Esprite, French
Connection, FCUK, Calvin Klein, Tommy Hilfiger, Dior and Celio. Same goes
with the non apparels like sunglasses, baggage, female hand bags and jewellery.
In cosmetics, brands as L’Oreal, Revlon, Chambor, Elizabeth Arden and Sally
Hansen are present, Indian brands like Lakme and Ponds with low range
wellness products of Blossom Kochhar and Shehnaz Hussain can also be seen.
Talking about premium brands, then one can see brands like Shesheido, Yves
Saint Laurent and Clarins. Sweet smell of perfumes can also be felt at this same
corner with fragrances from all over the world and brands from Azaro and Nina
Ricci for especially men to Nina Ricci, Burberry and Hugo Boss for all. We also
see a wide variety of ethnic wear for women, brands like Kurta Company, Biba,
W, Trisha, Akkriti are there. Moving towards the girl section, one can see
massive collection of casuals and formals both and designer trendy apparels by
Remanika, Miss Players, Color Plus, 109*F, Scullers, Ms. Allen Solly, Van
Heusen etc.
Moving to the 1st floor by elevators or escalators we see a wide variety of kids
wear, brands like Weekender, Gini & Johny, United Colours of Beneton,
Reebok, Adidas and Liliput are offering great variety of apparels for kids. The
floor also comprises of toys, games books and apparels for them. Ladies and
kids footwear are also present on the same floor. Apart from all these, the floor
has another division of Pantaloons- E-Zone containing the electronic items like
mobile, laptops, LCDs, washing machines, refrigerators etc.
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2nd Floor is supposed to be the men’s section with the formal suits and shirts
offered by brands like Arrow, Reid & Tailor, Louis Phillips, Blackberry,
Belmonte and Van Heusen, semi formals by Lombard , John Miller, Scullers,
Turtles and Success. Some of these are the shared brands too by Pantaloons.
Ethnic men’s wear is also visible by Akkriti which have low ranges as
compared to high priced brand Manyavar.
3rd Floor has all the casuals, be it male or female, sports wear of all kinds are
available. Reebok, Wrangler, Lee, Levi’s, Red Tape, Flying Machine, Spyker,
Numero Uno, Crocodile, Pepe Jeans London are few of the many brands one
can find here.
The 4th Floor has the Food Bazaar, another Future Group division. It’s a kind of
supermarket having daily use household grocery items and food items too. Then
there is a food court, where one can sit and taste different delicacies at times
when one gets tired shopping. There is a Sports Bar too wherein people come to
relax and have some drinks. That’s why the tag line says, “Shop, Eat and
Celebrate”.
Gurgaon Central provides its customer every such facility, product offering that
will help them to shop at ease and at their convenience, so that they have an
enjoyable shopping experience.
It also provides some value added services like:-
Beauty Central D J Central
Gift Central Radio Central
Flower Central Wi-Fi Central
Pricing
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Central caters to basically the upper middle class and the elite class of the
society, thus providing nominal pricing of the products it offers.
It has prices that favors almost all the ranges of products and people as well.
Apart from the usual prices, Central usually come up with the “Happiness sale”
almost during all festive seasons attracting good footfalls and thereby
converting them by indulging them into impulsive buying activities as they get
attracted by huge discounts offered on all the brands present in Central, thus
proving a point that shopping in mall is for everybody and not only the elite.
Promotion
The promotions done by Gurgaon central are commendable if talked about the
in-store promotions. One can see hoarding. The promotion activities are done
by the visual merchandising, VM department. Special care is taken into
consideration when it comes to shelf placing. Various brands are given such
places where they would be most visible to the buyer.
The mall name Central is a well set up in Southern India; although ‘Gurgaon
Central’ is a very new name in the Northern hemisphere of India that’s why
Central people do not leave any stone unturned. All the new offers are
advertised by various mediums of promotions such as print media, radio, T.V
etc. Big hoardings are placed outside the mall to educate the people moving out
on the road on various offers. And yes of course the “BRANDS INSIDE” which
tells you about the brands that are offered to the customer inside always attracts
the customer. Then the various activities that keep happening inside and outside
the mall for instance it had a renowned auto modifier DC display its latest car
modification outside the mall few days back that caught the customers’
attention.
Gurgaon Central somehow does not spend much on the outdoor promotions as
compared to the budget that they spent on the indoor promotions of some
22
activities or sales seasons. The VM Department has lot to do in regard to the
indoor promotion of the mall. Some of the common methods of promoting the
weekly activities or any sale season are by putting hoardings on Free of Cost
Sites, using Mobile Vans for displaying the advertisements, sending SMS and
calling the regular customers whose details are fed in the database maintained
by the customer service department. These customers are also given special
offers in the mall on showing the SMS while doing their purchases.
THE CENTRAL SERVICES
Central aims at providing an enchanting shopping experience for its
customers. The “Central Services” is only platter on which Central
differentiates itself from its competitors Lifestyle and Shoppers stop.
Talking about the Gurgaon Central in particular, ther are six of these
services. These services are made available to the customers so that
they can avail then at their convenience.
Gift Central
Customers enjoy the facility of free gift wrapping at gift central.
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Flower Central
At flower central customers can get the fresh and artificial flowers at reasonable
prices.
Beauty Central
Here ladies can avail the facility of free makeover organized by different
brands.
Radio Central
Customers enjoy the musical ambience in the mall while shopping at the radio
Central.
Wi-Fi Central
Customer can enjoy the facility of free net access at WIFI central.
DJ Central
Customer can give the request of their favorite song at the DJ Central.
OVERVIEW OF INDUSTRY
RETAILING
Retailing consists of the sale of goods or merchandise from a very fixed
location, such as a department store, boutique or kiosk, or by mail, in
small or individual lots for direct consumption by the purchaser.
Retailing may include subordinated services, such as delivery.
Purchasers may be individuals or businesses. In commerce, a "retailer"
buys goods or products in large quantities from manufacturers
or importers, either directly or through a wholesaler, and then sells
smaller quantities to the end-user. Retail establishments are often called
24
shops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part
of their overall distribution strategy. The term "retailer" is also applied
where a service provider services the needs of a large number of
individuals, such as a public utility, like electric power.
The emergence of organized retailing has been due to the demographic
and psychographic changes taking place in the life of urban consumers.
Growing number of nuclear families, working women, greater work
pressure, changing values and Lifestyles, increased commuting time,
influence of western way of life etc. have meant that the needs and
wants of consumers have shifted from just being Cost and Relationship
drive to Brand and Experience driven, while the Value element still
dominating the buying decisions.
INDIAN RETAIL INDUSTRY
Evolution of Indian retail Industry
Indian Retail Industry is standing at its point of inflexion, waiting for the boom
to take place. The inception of the retail industry dates back to times where
retail stores were found in the village fairs, Melas or in the weekly markets.
These stores were highly unorganized. The maturity of the retail sector took
place with the establishment of retail stores in the locality for convenience.
With the government intervention the retail industry in India took a new shape.
Outlets for Public Distribution System, Cooperative stores and Khadi stores
25
were set up. These retail Stores demanded low investments for its
establishment.
The retail industry in India gathered a new dimension with the setting up of the
different International Brand Outlets, Hyper or Super markets, shopping malls
and departmental stores.
Growth of the Retail Sector In India
In this section we may deal with the growth of the organized as well as the
unorganized retail sector of India.
Due to the untapped potential that exists in the Indian retailing market, it is a
very fast growing sector. One reason that can be attributed to this rapid entry of
the foreign retail giants is that the Western Countries have reached a point of
saturation in their retail sector. Another reason as already mentioned earlier is
the change in the tastes and preferences or the psychographic of the consumers
that is bent in their favor.
Although the retail sector in India contributes to about 10% in the GDP, it is the
most underdeveloped sector in terms of investments that are made in this sector.
The unorganized retail sector has recorded a growth of 5% per annum while the
organized sector is growing at 25-30 % per annum. One should not be
impressed by the figures of the organized retail markets since developed market
in US, Taiwan; Malaysia is still a dream to the Indian retail market. They have
registered a growth of 50% per annum.
The retail stores have mushroomed in the Tier II and Tier III cities. The
participants in the retail market hold the presence of market in the cities as a
signal to their growth.
It has been seen that the retail companies have invested in the IT sector for their
growth and development. The IT sector has contributed greatly to the growth of
26
the retail sector in India. The retail firms have made lumpy investments in
Enterprise Resource Planning System as a strategy for their growth and
development. SAP has also assumed a significant role in the growth and
development of the organised retail industry.
The sudden growth of the organised retail sector can be attributed to the
ushering of the domestic retail giants like Reliance, Pantaloons, ITC, RPG,
Rahejas and the Bharti Group. The foreign companies continue to wait in the
sidelines. These prominent retail chains have adversely affected the farmers in
some states. Another viewpoint is that the farmers have rather benefited since
they were eager on the market intervention of the buig retailers for the purpose
of marketing and processing of their output. Since the big retailers reap the
benefits of buying directly from the farmers, the consumers can purchase the
products at minimal price rates. In places like Uttarakhand, the big retail chains
are welcomed for the same purpose by the farmers. They have helped in putting
finances in the right channels of processing and packaging.
Growth of the Retail Outlets In India:
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1996 1997 1998 1999 2000 20010
2000
4000
6000
8000
10000
12000
8542.68983.6
9455.69966.5
10534.411165
Food Retailers
Non-Food Retailers
Exponential (Non-Food Re-tailers)
Total Retailers
Linear (Total Retailers)
Exponential (Total Retailers)
Linear (Total Retailers)
Source: P.G.Chengappa, Lalith Achoth, Arpita Mukherjee, B.M.Ramachandra Reddy andP.C.Ravi, Evolution of Food Retail Chains: The Indian Context, 5-6th Nov. 2003, www.ficci.com
From the above table it is quite evident that there is a rising trend in the total
retail outlets in India. The non-food retail outlets contribute more to this rise.
The trend in the retail sector as compared to other sectors may be represented in
the following graph. We can see that as compared to the clothing and the food
and beverages industry the retailk industry has witnessed a sharp rise especially
from 2002. before that it was following a slow and steady pace.
The growth of the different retail sectors can be discussed as under.
Growth of FMCG
The report produced by HSBC shows that the FMCG retail sector is expected to
grow by 60 % by 2010. leaving aside the packaging sectors, the other sectors
that have registered rapid growth are hair care, household care, confectionery,
chocolates etc.
28
Growth of Consumer Durables
The consumer growth industry is estimated to grow by 40% in the coming
season. The television, refrigerator and washing machines sector has also
witnessed a rapid growth. The market for Indian colour television is expected to
reach the value of 10.5 million units by the next fiscal year. The refrigerator
market is estimated to reach 4.5 million. Hence in a nut shell the retail industry
in India has witnessed unprecedented growth in the past years. The organised
sector is expected to make Quantum jumps in the coming years in terms of its
contribution to GDP.
Contribution of Indian Retail Industry to Indian Economy
Contribution of Retail:
What, How and For WhomThe presence of retail sector in India has been in
limelight for the last few years. Its significance has been undoubted.
Policymakers are quite optimistic that the evolution and steady maturation of
organized retailing will take the economy to new highs. Besides, it will also
help strengthen the linkages between the different sectors so as to break the
vicious circle of poverty and ensure a bright future for the next generation. The
benefit of retailing to general public includes growing awareness and brand
consciousness.
The table below clearly shows that the retail market as well as the mindset required for it has experienced a thorough revisal in the last three years. This is just the beginning and Indians are sanguine that the sector will see rosy days in the future. This confidence has helped India acquire the No.1 position among 30 most attractive retailing destinations in the world according to the Global Retail Development Index of 2005 (by AT Kearney, India). Among emerging markets, India holds the second position after China in the list of most favored retail destinations.
29
Situation in 04-05
Situation in 07-08
0
0.01
0.02
0.03
0.04
0.05
0.06
Value of retail sales
Annual growth rate
Share of organized market in the sector
Forecasts(after 5 yrs) about size of organized retail market
Forecasts about growth rate of organized retail market
Column1
The retail industry employs a huge share of the total workforce in India. It is the
second largest employer after India. Presently 7 percent of the total labor force
is employed in the retail sector. According to available data it is also the largest
employer in the services sector and maximum growth in the non-agricultural
sector has been witnessed by retail trade. According to market analysts 300 new
malls, 1,500 supermarkets and 325 departmental stores are going to come up in
India in the next few days. The shopping revolution that has led to this retail
boom is going to continue and this is good news for the government as well as
those who wish to work in the organized sector.
Contribution of FDI in Retailing
Permitting Foreign Direct Investment in the retailing sector can have immense
benefits. It can generate huge employment for the semi-skilled as well as
illiterate population which otherwise can't be employed in the already confined
rural and organized sector. The retail sector is highly dependent on the rural
sector. Thus it can facilitate the improvement of the standard of living of
farmers by purchasing commodities at a reasonable cost. It also stems out an
30
indirect employment generation channel by training and employing people in
the transportation and distribution sectors such as drivers, mechanics etc. It is
also evident that real estate is a genuine challenge for organized retailing.
Traditional retailers can use this situation in their favor by taking franchisees of
the mega players of this industry. On the other hand, the consumer gains from
the wide variety of choices and a more diversified basket of prices available
under one roof. Secondly the indirect benefits like better roads, online
marketing, expansion of telecom sector etc. will give a 'big push' to other
sectors including the rural one itself. Last but not the least the huge tax revenue
generated from these retail biggies and collected in government coffers will
gradually wipe out the ugly looking fiscal and revenue deficits. Besides the
transaction in foreign currencies by these MNCs will create a balance in
exchange rate and will bring in stable funds in the economy as opposed to FII's
hot money. This will in turn act as a boost to the developing (or 'transforming',
as suggested by the USAID) economy of India.
The phobias relating to FDI in the retail sector are unfounded as neither the
retailing sector in India is an infant industry, nor it can outweigh the paramount
local tastes and preferences.
Let's pray that the retail sector like the IT and manufacturing sector brings
happiness in the eyes of the people and help remove the regional and class-
based disparities.
31
Top Companies in the Indian Retail Industry
The India retail industry: who's who
The Indian retail sector has been euphoria over the last five years. India topped
the A.T. Kearney's Global Retail Development Index for two consecutive years
and this has infatuated Indian as well as foreign retail players to go gaga on the
merchandising track. According to geographical expansion, Delhi/NCR and
Mumbai are the felicitated regions as the top companies have rated the spending
potential of consumers in the vicinity of the national capital and the financial
capital as excellent. Other metros such as Kolkata, Chennai, Hyderabad and
Bangalore have caught the sight of investors but their fortunes are yet to be
illuminated. Companies like The Future Group, Reliance, Bharti-Walmart, DLF
etc. have shown the way for other to enter. The country is expecting a surge in
the growth sprint and let’s hopes for the best.
Top Companies: An analysis
Big Bazaar- Big Bazaar is a chain of department stores owned by the
Pantaloon Group (Future Group) and headed by Kishore Biyani and
headquartered at Mumbai. It offers all types of household items such as home
furnishing, utensils, fashion products etc. It has a grocery department and
vegetable section known as the Food Bazaar and its online shopping site is
known as FutureBazaar.com. The real estate fund management company
promoted by the Future Group expects to develop more than 50 projects across
India covering a combined area of more than 16 million sq. ft. On April 1 2007,
Big Bazaar had to shut its outlets in Mumbai as the 120 retrenched employees
called a strike with the support of Bhartiya Kamgar Sena (the trade Union wing
of Shiv Sena). Later the management agreed to reinstate the sacked workers.
32
Bharti Retail-, a wholly owned subsidiary of Bharti Enterprises. has announced
two joint ventures (JV)with the international retailing behemoth, Wal-Mart. The
first JV ensures cash and carry business, in which 100 percent FDI is permitted
and it can sell only to retailers and distributors. The second JV concerns the
franchise arrangement. Sunil Mittal, Chairman of the Bharti Group assured that
the ventures will use “low prices every day” and “best practices for the
satisfaction of the customer”. Processed foods and vegetables will be delivered
by Bharti Field Fresh, Bharti's JV with Rothschild. Bharti Retail aims to foray
every city with a population exceeding 1 million. It has plans to come up with
an investment of more than $2 billion in convenience stores, supermarkets and
hypermarkets spread over an aggregate 10 million sq. ft. The expansion drive
looks ambitious but analysts are worried that Bharti may face stiff competition
from Pantaloon and Reliance as they too have sanguine plans to flood the
markets with thousands of retail outlets in the coming five years. Bharti
Telecom also has plans to offer all its fixed and mobile telecom products and
services from a single window to the SMB (Small and Medium Business)
enterprises under the Bharti Infotel division..
Reliance Retail- Reliance claimed last year to start a retail chain that will be
unique in size and spread, will lead to the welfare of one and all ranging from
Indian farmers, manufacturers and ultimately consumers. It is known as
Reliance Retail Ltd.(RRL) and is a 100 percent subsidiary of Reliance industries
Ltd.(RIL). Soon after the Bharti-Wal Mart tie up, there was the news that RIL
(Reliance Industries Ltd.) Chairman Mukesh Ambani met Commerce Minister
Kamal Nath to discuss the apprehension of cheap imports from China. Reliance
Retail has plans to open 4,000 outlets across 1,500 towns for an investment of
$5.6 billion. Reliance is not away from agro-business. According to Buddhadeb
Bhattacharjee, Chief Minister of West Bengal, “Reliance will hold
demonstration farming, produce good quality seeds and give inputs to farmers”.
33
Its most significant participation has been in the food procurement business in
Madhya Pradesh and Punjab. This has in fact compelled the government to
import wheat this year. Reliance Retail has also been reported to have entered
into an agreement with footwear manufacturer Bata India Ltd. so that they will
involve in selling each other's products.
DLF Shopping Malls- DLF Retail Developers Ltd. is one of the troikas of the
DLF Group. Besides being India's largest real estate developer, DLF is also of
the leaders in innovating shopping malls in India. It caught public eye when it
launched the 2,50,000 sq ft. shopping mall in Gurgaon. It has brought a
dramatic change in the lifestyles and entertainment with its City Centres and DT
Cinemas. DLF has plans to invest Rs. 2000-3000 crore in all the emerging areas
from metros to A class cities in the next two years. Till last year the company
was involved in building 18 malls out of which 10 were in the NCR region.
Future plans of DLF involve opening up of 100 malls (speciality malls, big box
retailing and integrated malls) across 60 cities in next 8-10 years. They are
slowly transforming into 'lease' and 'revenue share' models.
Local players like ITC, the A.V. Birla Group and Tatas have given the hints to
enter organised retail. France’s Carrefour SA and Britain’s Tesco too were
recently in news for their future plans to explore the Indian retail market.
34
Conclusion on retail industry in India
Contribution of Retail
What, How and In this report we have analyzed in detail the retail industry in
India. We had initially started with the evolution of the retail sector in India,
then moved onto its size, distribution and the growth of the retail sector. We
have also covered issues like the Foreign Direct Investment in the retail sector,
the untapped opportunities that exist in the retail industry in India. We have also
discussed about the bottlenecks that the retail industry is facing in India, online
retailing in India and the role of Information Technology in the retail sector in
India.
In this section we have coined down the major findings of our research.
Major Findings:
1. The Retail Sector in India can be split up into two, the organised and the
unorganized. The organized sector whose size is expected to triple by 2010 can
be further split up into departmental stores, supermarkets, shopping malls etc.
2. In terms of value the size of the retail sector in India is $300 billion. The
organised sector contributes about 4.6% to the total trade.
3. The retail sector in India contributes 10% to the Gross Domestic Product and
8% to the employment of the country.
4. In terms of growth the FMCG retail sector is the fastest growing unit and the
retail relating to household care, confectionery etc, have lagged behind .
5. The foreign retail giants were initially restricted from making investments in
India. But now FDI of 51% is permitted in India only through single branded
retail outlets. Multi brand outlets are still beyond their reach. Again they can
35
only enter the market through franchisees,. This was how Wal-Mart had entered
joining hands with Bharati Enterprises.
6. On line retailing is still to leave a mark on the customers due to lacunae that
we have already mentioned.
In a nutshell we may conclude that the retail industry in India has a very bright
future prospect. It is expected to enrich the Indian Economy in terms of income
and employment generation.
Government policy and regulation to the retail industry in
India.
“India's government seems to be on a gradual but definite path toward allowing
foreign retailers into the country....” suggests the A.T. Kearney's Retail
Development Index 2006. It is a common knowledge that the Union
government has to face a number of hurdles both from it's opponents as well as
it's allies before it could announce the final verdict. There have been demands
from all corners regarding framing of rules to safeguard interests of the so-
called small traders. Simultaneously economists have the consensus that
industrialization is imperative for the growth of the economy and foreign
investment has to play an inevitable role in it. So in this study let us compare
the views for and against liberalization as is held by Indian Bureaucrats.
Entry of large players: stiff opposition from Left Parties
At the first stage, not only MNCs but also the local retail giants like Reliance
will be shown the red signal. In fact a magnified CPI protest has compelled a
Reliance Fresh outlet in Kochi to take police protection. The draft of a bill has
been finalized to amend the Kerala Essential Commodities Act so that the state
government can intervene in the retail market.
36
As a second step, local councils (70% of which is controlled by the Left) will
deny licenses, that are mandatory to start a retail chain in the state. Kochi and
Tiruvananthapuram corporations will be in fact commanded to reconsider the
licenses of outlets that are already operating in the regions. This strategy grants
more power to the state. However a ban on shopping in these outlets is still not
clear. The third and the most revolutionary judgment is actually an outcome of
the whole game. Government-controlled supermarkets and hypermarkets will be
established in some of the key cities in the state.
This rigid legal wall not only in Kerala but across the country has been born out
of a traditional mindset. Kerala claims to have a literacy rate of 90.92% and a
sex ratio of 1058 females per 1000 males. The data speaks for the government's
prudent commitment in the case of Kerala. So it is high time that the
government opens up avenues for its people to let them grow and become self
dependent.
But the government is still holding well, the conventional 'infant industry'
outlook. The main worry is the negative impact on the already gloomy
condition of employment. Let's make an attempt to understand the vicious circle
of unorganized retailing and present employment scenario. Unorganized
retailing has a share of about 96% in the Indian retail sector. But why should
people work in such miserable situations if the manufacturing and services
sector are booming is the overwhelming question. There has been a trend to
migrate to cities in search of alluring bright city lights. But the consequences
have been even worse- earning lower than expected wages (Harris Todaro
model of migration). The illiterate and unskilled people ultimately set up a
grocery shop to earn a living. This gives birth to another unorganized retail shop
in India and thus enlarges its share. So the unorganized retail market in India
has born out of fate rather than selection.
37
The Actual Scene
Those opposing the expansion of organized retail in India must understand that
the share of primary sector shrinks and that of the secondary and then the
tertiary sector expands as an economy grows. This is the basic structural
adjustment in case of any transforming economy. India is at a take off stage.
Retardation in the agricultural sector is not permissible but inhibiting the growth
of services on grounds of protection to agriculture is more irrational. A proof of
this has been seen in a small town of North Bengal. The opening of a Big
Bazaar (brand name for stores under Pantaloon) departmental store has seen a
human deluge of about 7,000 people in the 35,000 sqft shopping mall by 3pm.
This clearly indicates that people (even in remote places) have become fed up of
monotonous marketing practices and demand nowadays is purely governed by
choice.
The Ruling UPA government's outlook
The UPA government is rather clear in its aim of taking India to new highs. The
commerce minister has repeatedly asserted that FDI will kill two birds with the
same stone. It will generate substantial direct as well as indirect employment
and at the same time will not tamper with the present scope of the unorganized
retail market. The indirect employment includes jobs in transport, packaging
and other logistic services. It will enhance competition in the country thus
giving a virtual chance to face global challenges while operating at home. Mr.
Nath is clearly focused on the utilization of FDI in acquiring benefits. It is true
that such investments will bring in huge imports but this may also help in the
Indian products reaching the foreign consumers. Foreign majors such as Wal-
Mart, Tesco and Carrefour are ready to enter India.
38
THE PROJECT
Objective of The Project
Our project consists of three promotional activities and events which has an impact on the overall sell and the footfall of the Central Mall.
These activities are:
1. The Great Indian Shopping Festival2. Do Denims3. Shop More Get More
The main objective of the project is to study the impact of these above promotional activities and events on the overall sells and the footfall. Also a part of the project is to study the consumer behavior of those people, who go to the mall. The project also include the activities of Gurgaon Central during the weekends and other promotional shopping festivals as well as the value added services that the Mall provides to its customers that intend to increase the footfalls.
The Great Indian Shopping Festival
Bigger, bolder and better than ever before, in its third year the festival has taken place in the top 17 cities of Mumbai, Bangalore, Delhi NCR, Kolkata, Hyderabad, Ahmedabad, Pune, Chennai, Indore, Lucknow, Vadodara, Nagpur, Bhubaneshwar, Nasik, Vizag, Surat & Jaipur.
39
Participating formats: Big Bazaar, Food Bazaar, Pantaloons, Central, T 24, EZone, Home Town, Brand Factory, Planet Sports and others.
Dates: April 16th to May 15th, 2011 (5 week-ends, 4 weeks).
The E-Passbook
There were several exciting products for customers to take home in the form of assured gifts, lucky draw prizes and great discounts on cross format vouchers. But the main attraction this time around was the E-Passbook.
This is a bar coded card which holds all the information required to make shopping experience an enriching one. It is a source to collect assured gifts, automatically calculate discounts and a device to earn and redeem Sone Ki Chidiya (SKCs).
Work Assign to Me:
My work related to this event was the customer interaction and issuing of those E-Passbooks to the customer and maintaining an online and a manual record of the same. These records had been a reference for the redemption of the gifts
40
with the Sone Ki Chidiya point, which have been accumulated while shopping during the time period of the great Indian shopping festival.
During this period a total number of 3113 E-Paasbook issued to the customer based on the bill amount of Rs. 1000 or more.
Report before the Promotional Activity
1st March to 15th AprilDays No of bills above 1000 Average45 13050 290
Days No. of bill above 2500 Average45 5336 119
Total Bills 22721Contribution 1000 57%Contribution 2500 23%
Report after the Promotional Activity
15th April to 22nd MayDays No of bills above 1000 Average37 14897 403
Days No. of bill above 2500 Average37 6745 182
Total Bills 24599Contribution 1000 61%Contribution 2500 27%
Findings:
From the above table the growth is evident. There is an increase in the number of the bill above 100 and above 2500 due to this promotional activity.
The growth in the number of the bills above 1000 is 39% whereas the growth in the bill above Rs. 2500 is 54%. Thereby we find the increment in the sales due to this event.
Conclusion:
From the above analysis we conclude that the effect of ‘The Great Indian Shopping Festival’ on the sales was positive and a success.
41
SHOP MORE GET MORE
This is another event and initiative taken by Gurgaon Central to increase the
sales growth, bills, average bill value and the customer footfall. This promotion
was target to the customer to shop more and let the b ill amount increase which
leads to win a Gift Voucher. The idea behind this was when a customer makes a
bill of Rs. 5000 or more they would be entitled for a gift voucher of Rs. 600. In
this way they can enjoy the shopping as well.
Date: 10th June-26th June
Work Assign to Me: During the above time period I was assign the job of
issuing those gift voucher to the customer and making them aware about the
promotion. This needs the more communication with the customer and also
includes the customer interaction, their view and opinion about the event and
the Central.
Report before the Promotional Event:
Date Sale Walk Inns Bills Conversion ABV21st May 1911664 2646 877 33% 218022nd May 2500092 4744 1111 23% 22523rd May 861191 1616 481 30% 179024th May 729031 1427 366 26% 199225th May 917606 2160 461 21% 199026th May 906996 1881 473 25% 191827th May 888976 1917 468 24% 190028th May 1779479 2779 835 30% 213129th May 2559075 3203 1137 35% 225130th May 912849 2062 478 23% 191031st May 800656 1357 447 33% 17911st June 948040 1584 474 30% 20002nd June 974018 1435 553 39% 17613rd June 832268 1779 454 26% 18334th June 2009160 2874 892 31% 22525th June 2590545 3271 1070 33% 2421
TOTAL 22121646 36735 10577 29% 2091
42
Report after the Promotional Event:
Date Sale Walk Inns Bills Conversion ABV11th June 1940767 2633 892 34% 217612th June 251456s4 2995 1058 35% 237713th June 941714 1684 510 30% 184614th June 865653 1437 434 30% 199515th June 1185593 1375 526 38% 225416th June 1001973 1563 568 36% 176417th June 940599 1233 456 37% 206318th June 1699430 2836 782 28% 217319th June 2398930 2937 988 34% 242820th June 760883 1368 366 27% 207921st June 736409 1525 354 23% 208022nd June 994515 1469 435 30% 228623rd June 881823 1287 434 34% 203224th June 837378 1314 419 32% 199925th June 1694894 2334 800 34% 211926th June 2778828 2984 1105 37% 2515TOTAL 22173952 30974 10127 33% 2190
Findings:
The above two tables show the total sale, footfalls, bills and the Average Bill Value. From the two tables it is evident that there is a very marginal growth of 0.24% only due to this promotional activity. If we look at the figures of the footfalls i.e. walk ins there is not any positive impact rather there is a negative growth of -15.68%.
If we look at the figure of the conversion and the average bill value there is also a very marginal increase of 33% and Rs. 98 only (4.69%).
Conclusion:
From the analysis and the findings we can conclude that the promotional sale ‘Shop More Get More’ did not succeed and it fails to attract the more customers and also did not contribute much to the sale. Thereby, Central took the major step and the event was called off before the schedule time.
43
DO DENIMS PROMOTION
Do Denims is the one of the promotional event which targeted mainly the youth. Under this promotion activity several brands of jeans in the store came up with offers and the some free services to attract more young customers as well.
Do Denim was an activity which included the some more events:
Tattoo Making Nail Art Do Your Denim makeover & Deo-Fest
Tattoo Making: In tattoo making two artists were engaged for the promotional
activity. Tattoo making was a big hit among the young girls and boys. Even
children participated with full enthusiasm.
Nail Art: This was the event which was specifically designed for the girls. Free
nail colorings and streaking was done and girls just loved it. This targeted the
ladies customer to engage in these activities to support the denim fest as well.
44
Do Your Denim Makeover: Under this promotional scheme the denim of any
brand were accessorized free of cost to add a different look. It covered
shredding, riveting, colorings and stencil printing
Deo-Fest: In the Deo - Fest, customers had a great chance of winning a deodorant by testing their smelling power.
45
In the do denim fest several denim brands came forward with the offerings to
the customer to increase their sale. In this almost all the participating brands
achieved their goal. The result is given below in the form of chart:
BOSSIN
I
FLYIN
G MACHIN
ELEE
LEVISPE
PE
STATUS Q
UO
WRANGLER
INTEGRIT
I
BARE DENIM
BLUE DIA
MOND
LEE COOPE
RUM
M
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Target
Achieved
Ach %
46
Findings: from the above graph it is clearly evident that till date the target of
the unit for the denims has not achieved. Few brands manage to achieve their
target like Status Quo, Blue Diamond. Few of them are near to the goal like
UMM, Pepe, Lee,Levis etc.
Conclusion:
From the analysis and the findings we can say that the promotional event Do
Denim is marginally successful in its target.
The table shows the increasing sales at gurgaon central, the implementation of
various events and promotional activities is found to be the main reason behind
the increased sales. The promotional campaign – Great India Shopping Festival
and Do Denim started in the month of June/July and its contribution can be
measured by the sales achieved in the respective month.
Note: The data of sales for the last week (27th June to 3rd July, 2011) is expected
sales for that period as the exact figure was not available.
47
Consumer behavior Research for Do Denim Promotion
To the effectiveness of the above promotion, we did a research. We collected
the feedback from the customers followed by the data processing and analysis.
Collecting feedback was one of the most important parts of the whole procedure
because it was the only stage where we came to know whether the campaign
had been successful or not. To check the response of the consumers, an exit
interview was conducted. The sample size was taken to be 50. The
questionnaire consisted of 14 questions and the questions were formed with a
purpose to check the popularity and the contribution of the promotional
campaign to the total sales.
Sample Size: The sample contains responses of the questionnaire from 50 people. The analysis of the entire 50 people filled questionnaire is given. I have attached the questionnaire in the Annexure.
Sample Area: The mall Gurgaon Central.
Limitations:
The time limitation was one of the hurdles, the customers generally were
not interested in filling any sort of questionnaires while shopping.
The questionnaire was constructed in such a way that it included only
those customers who had purchased any sort of merchandise related to
the do denim promotion only.
48
DO DENIMS SURVEY DATA ANALYSIS AND INTERPRETATION
1.) On being asked whether this is their first visit to central mall.
30%
70%
Respondents
yes
no
Out of 50 people, 35 said this was not the first time they had visited central mall and 15said that this was their first visit.
2.) On being asked whether they were aware of the ongoing promotion or not.
80%
20%
Respondents
yes
no
49
40 people said that they were aware of the promotion going on in Central. This indicates that the promotional activities did have an impact on customers by making them aware of it.
3.) Source of information about the promotion.
35%
38%
15%
12%
respondents
friends and relavites
store display from outside
press ads
outdoors/hoardings
This clearly suggests that though in-store promotions and display are capable of attracting customers into the store, outdoor promotions are ineffective. Efforts should be made in direction of making outdoor promotions more effective.
4.) Rating of denims on the following parameters:
a) Variety in fits
50
30%
42%
28%
average
good
excellent
Out of 50 people, majority of people thought that the variety offered in denim fits was good.
4 .b) latest in fashion
29%
48%
23%
respondents
average
good
excellent
51
5.) Did you shop at central’s Do Denims promotion?
78%
22%
respondents
yes
no
78% people did shop at the Do Denims promotion which clearly shows the effectiveness of the marketing schemes and offers during that promotion.
6.) On being asked the number of denims bought:
47%
32%
19% 3%
respondents
1
2
3
4 or more
52
7.) On being asked about the utilization of exclusive services:
52%
18%
30%
respondents
tattoo
fits specialist
denim makeovers
This clearly indicates that these marketing activities were of huge benefit to Central as they were successful in increasing the footfall.
8.) On being asked to rate those services:
38%
46%
16%
respondents
excellent
good
average
Most of the customers found the services more than satisfactory which further led to the increase in footfall of the mall.
53
9.) Age Group
36%
49%
13% 3%
respondents
15-25 yrs
26-35 yrs
36-45 yrs
46-55 yrs
Since the fest was targeted at youth, the chart shows a huge turnover of customers between 15-35yrs of age. This was due to the outstanding in-store promotional activities in Central.
54
MAJOR LEARNING
My experience with Gurgaon Central was scintillating. We all went to malls,
but to know how everything is managed and worked out was a great experience.
I learned a lot from them, especially the planning they did regarding any of the
activities and upcoming offers and then how all of it was executed.
The sales staff being very efficient, having knowledge of the items they have
been assigned to sell. Talking to them regarding the services, I got a lot of
information about the distributors of various international brands which
otherwise would have been difficult to know.
I did notice and learned the innovative strategies they come up with when it
came to marketing. The methods they used to pull more crowds every week.
In the shopping fest ‘Great Indian Shopping Festival’ I was assigned an
interesting job, it made me use my communication skill as well, to complile the
daily track of e-passbook card issued and gift for the same have been redeemed
as per the points accumulated. This was really interesting as I had to take care of
the Gift Redemption Counter and sometimes encounter queries from furious
people and make them calm and satisfied.
Getting the questionnaire filled by te people was a bit tough part because of
their reluctance, for not having enough time to fill it and various other reason
given by them. Catching hold of them while they were waiting in the queue of
cash counters for billing and parking areas, other eating joints as well and then
talking to then for a while getting the questionnaires filled was a good
experience, although tough sometimes in such heat but in the end it was all
worth it. The data and the suggestions provided by then helped to devise
recommendations for the Mall. Central too was in a need for this as they are
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planning to expand in the Northern India with more malls as well as improving
upon Gurgaon Central. I had to present then with proper figures and data to
support my views. There were some rough experiences as well. Many times the
information that I provided was not acted upon.
I was very impressed with the time flexibility with the various Departments in
the mall, especially the Marketing and the Visual Merchandising Department.
There are days before launching a particular festive season when the visuals of
the Mall have to be changed accordingly. This is done only after the Mall has
been closed for the general public. There were so many days when they had to
work all throughout the nights and the come early the next day and they all did
it with absolutely no resistance at all.
The Project was a wonderful experience in the corporate world, it added a lot of
things to the knowledge but the major learning from this project was regarding
the entire operations and functioning of the mall. It included Marketing
activities, Visual merchandising and floor operations as well. The success of
events and promotion proved its importance as a tool of marketing which is
used to increase sales.
In all it was amazing to work with Gurgaon Central. The corporate as well as
sales staff was ever ready to help me out in any enquiry that I had regarding my
work, as experience which really made me learn as well as enjoy a lot for my 8
weeks there.
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CONSTRAINTS FACED
The project was a very good learning experience but on the other side it
was full of challenges and difficulties. The most difficult part of the
project was the interaction with the customers with the purpose to collect
feedback. The major constraints faced can be listed as follows-
The challenge faced initially was in understanding the corporate culture
and work atmosphere at Gurgaon central.
Collection of feedback from the customers was a major challenge, as the
information given by the consumers is not always true it could have
misled the findings of the project.
All operational activities including visual merchandising, supply chain
management and floor operations were complex and difficult to
understand.
Co-ordination of events and other promotional activities was a very
important task as any mistake could have cost firm’s reputation.
Gurgaon central had a huge infrastructure and proper management and
coordination of events at different floors was a tough task, it required
proper coordination and synchronization among the employees and
trainees.
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RECOMMENDATIONS
After being in the mall and observing every services and facility, as well as
going through the customer feedback book and studying the analysis based on
the consumer behavior, I got to know that although Gurgaon Central is one such
mall which customer looks forward to every weekend, for any promotional
offers and thus keeps the customer engaged with something or the other but still
some of the suggestions that I would like to propose forward are:
1. First of all, which many people have also noticed and suggested is that
there are no sitting arrangements on any of the floors in the mall. As the
mall is quite huge, there are 4 floors and basement, lifts and escalators too
but still there are many people coming in the mall of various age groups.
The people often get tired while roaming around, so there can be small
couches as they are present in the Wi-Fir Central be present at every
floor, at spaces.
2. Gurgaon Central has various services for people and also conducts
various activities on a regular basis for every age group especially young
children. As observed many families comes for shopping with their
young kids who often become restless while shopping and thus whole
family have to return back home shopping half of the stuff they actually
wanted to purchase. Central can thus provide a “Kids Playing Area” too
wherein there can be games, kids scooters, cars or doll houses to keep the
kids engaged while their parents are shopping. This service can be
provided at nominal hourly rates if not free of cost.
3. Gurgaon Central so far is just an apparel store. It does not have anything
else to pull the crowd. Gurgaon Central should come up with a movie hall
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and a food court so that people who go to malls not for only shopping can
also come to Central Gurgaon.
4. When we enter Gurgaon Central we straight away are confronted with
sales counters and salesmen, which is not comforting for the customers.
They are not given any free space to first get used to the ambience.
Layout of the mall can be slightly changed so that the customers can get
comforted.
5. When I asked people about various services, the response was astonishing
as they weren’t aware which of the services are paid and which aren’t. To
improve on this, the signages of these services should be improved with
clear indication about the placement of these services along with the
methods by which they can be availed instead of having just the names of
the services.
6. Youth wear, ladies wear and men’s wear are the area where maximum
purchasing is done. The sales executives attending the customers in these
areas are very few in number. Sales staff used at other countes where not
many people come like the kids wear can be shifted to attend in the busy
areas.
7. Out of the budget assigned for promotion, maximum share is assigned for
the indoor promotion rather than the outdoor promotion. Gurgaon Central
should allocate more share of the budget for its outdoor promotions, such
as putting hoardings at more prominent arears etc to pull more crowd for
its indoor activities.
8. The attending staffs should be well informed about the offers running at
the store and should be well communicated so that they can handle the
general customer inquiries and the customer needs.
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CONCLUSION
The research has shown that Gurgaon Central is doing great business. In only 2-
3 years of its coming up it has already taken over as the market leader in many
areas such as collection of brands, variety, accessories etc. The sales team has
also been found to be very effective with its conversion of sales. The activities
that take place are successful in pilling in a lot of crowd.
There were some loopholes found in there working as well such as the outdoor
promotion was not found up to the mark, the allocation of sales force was not
planned, the mall layout needs improvements etc. But all said and done it was a
very successful research work, and I hope that my recommendations are of
some use to Gurgaon Central.
In Retail sector customer plays an important role. By providing service to the
customer we can generate enough of revenue. Like in central gurgaon revenue
is not only generated from the sale of merchants but also by providing services
to the customers. Central provides service like central wifi, central beauty,
central radio, mobile charging facility, central flower, parking facility and many
more.
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ANNEXURE
1. RESEARCH QUESTIONNAIRE
(Do Denims Promotion)
Name:
Mobile No.:
Occupation:
Please specify your age group:
15-25 yrs. 26-35 yrs. 36-45 yrs. 46-55 yrs.
1. Is this your first visit to Central?
Yes No
2. Are you aware of any promotion currently running at Central?
Yes No
3. If yes, can you name the promotion?
4. How did you get to know about the Central’s Do Denims promotion?
Friends and relatives
Store display from
outside
Press ad Outdoor/hoardings SMS Others, please specify
5. Please rate the Denims available on the following parameters.
Parameters Average Good ExcellentVariety in fits
Latest in fashion
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6. Please list the top three brands that offered the best range of Denims during the promotion.
7. Did you shop at Central’s Do Denims promotion?
Yes No
8. If yes, how many Denims did you buy today?1.
2.
3.
4Or more
9. How much did you spend during this visit on Denims?
10. Did you avail the offer on the best Denim brands like Lee Cooper, Levis , Pepe, Wrangler, etc ?
Yes No
11. Did you utilize the exclusive services during the promotion?
Fits specialists Tattoo Denim make overs
12. If yes, how would you rate the above services?
Excellent Good Average Did not like
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Up to Rs.500 Rs. 501 -1000 Rs. 1001-2000 Rs. 2001- 3000
Above Rs.3000
2 .Research Questionnaires
Name:Profession:Gender: M/FPlease specify your age group:< 20 Years 20-29 Years 30-39 Years 40-49 Years > 50 Years
1. Which mall do you prefer to visit? (Please tick)Shoppers stop
Ambience Mall Gurgaon Central
MGF Metropolitan
DLF City Centre
Lifestyle
2. How frequently do you visit a mall? (Please tick)Once a week More than once a week Once a month Rarely
3. How much money do you usually spend while shopping? (Please tick)Rs. 0-500 500-1000 1000-1500 1500-2000 > 2000
4. How much time do you usually spend in a mall? (Please tick)Less than ½ hrs ½-1hrs 1-2 Hrs More than 2 hrs
5. What kind of activity do you associate with the term “Mall” ? (Please tick)Shopping centre Multiplex Theatre Hangout
placeAny other, please specify
6. How would you come to know about the Central? (Please tick)Friends & relatives Newspaper Posters &
HoardingsTV Commercials Radio
7. Please rate the Central on a scale of 1-5 point. (1=least preferred, 5=most preferred)1 2 3 4 5
8. Any suggestion would you like to give us to improve the service being provided?
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…………………………
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REFERENCES
Kotler, Keller, Koshy, Jha, 13th edition, Marketing Management
C.R Kothari, 10th edition, Research Methodology
Satish K. Batra & S.H.H Kazmi, Consumer Behavior
www.pantaloon.com
www.wikipedia.com
www.futuregroup.in
www.future-group.com
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