Index: A Study On More (Retail)

A study on more (retail)
INDEX
S L no. Topic Page no.
1. Executive Summary 2
2. Objectives Of The Study 3
3. Scope Of The Study 3
4. Methodology Practiced 3
5. Learning And Outcomes 4
6. Industry Back Ground 5
7. Company ‘S Overview 10
8. Retail Mix 12
9. Retail Location Merchandise Assortment 15
10. Pricing Strategies 17
11. Retail Communication Mix 22
12 Store Layout 29
13. MORE – Dharwad(Saptapur) 31
14. Human Resource Management In Retailing 32
15. Types Of Customer Service 34
16. Challenges Faced In Retail Industry 38
17. References 39
Retail Management Page 1

EXECUTIVE SUMMARY
Indian Retail is one of the fastest growing sectors contributing approximately 40% to the Gross
Domestic product and annual turnover of 18, 00,000 Rs. Retailing is present in India from so
many years but in the unorganized form. The emergence of organized retail has given a new
dimension to the economy and to the customers. Because of the dynamics in the retail
environment the sector has become more active and attractive.
The conventional (unorganized) retailers secured the interest and loyalty of the
customers by offering the products at convenient places, better services than competitors and
also on credit basis. But the scenario is completely changed and the organized retail sector is
growing at a faster rate because of their superior information systems, logistical system, buying
power and better customer relationship managements systems.
Because of the above factors the giant retailers are providing more value propositions to
customers and succeeded in having a edge over the traditional retailers.

Objectives of the Study
1. To make a comparative study of the different players in the Indian retail.
2. To understand the consumer buying behavior for organized retailing
3. To know the various types of visual merchandises and how it influences the buyer
4. To evaluate the factors that influence for the selection of location of a retail outlet.
5. To understand the role of training and HRM for the sales force.
Scope of the study
The study will help us in understanding the various concepts of the retail marketing. The
project will also give an opportunity to understand the concepts related to sales management
and customer relationship management.
Methodology
Methodology adopted for the study is by visiting various retail outlets across Hubli-
Dharwad region and meeting the various sales persons of the retail outlets. The study is also
carried out by the observation method (observing customers while buying) and also through
other secondary sources.
Time period of the study – 2 months

Learnings and outcomes

 If the number of footfalls has to be more the location of the store plays very important
role.
 Retail store at saptapur is well situated.
 Proper merchandising helps in up selling and cross selling.
 Store layout also contributes to increase in footfalls and hence revenues.
 Advertisement and communication is limited only to saptapur but it has to be re looked
 30% of the total customers are issued with club more card a loyalty program.

ABOUT THE INDUSTRY
The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the industry is
getting more popular these days and getting organized as well. With growing market demand, the
industry is expected to grow at a pace of 45% annually. The India retail industry is expected to
grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010
The retail industry is an ever growing and changing sector that cater to the dynamic needs
to the consumers by providing merchandise at outlets from where they can be purchased by the
latter. The retail industry is focused on the sale of goods or merchandise from a specific location
for direct consumption by the purchaser. North America is the home of most of the world’s
largest retailers, since the U.S. dominates the global retailing industry. Not only is the retail
industry responsible for two-thirds of the U.S.’s GDP, U.S. retail companies have also
established a presence on every continent. The largest retail giants globally are Wal-Mart (USA),
Metro AG (Germany), Carrefour (France) and Tesco (UK). The industry employs a staggering
number of people, and given its rapid proliferation, this number is always on the rise. The
backbone of the sector are the operations and supply chain management jobs but there are
various other options as well, from sales executives and store managers to merchandise planners
and buyers.
In today’s dynamic and shaky business world, the retail industry is constantly upgrading
itself. With an endless array of customer choices, fierce competitors, pervasive use of the
internet, and a complex global economy, retailers need to focus on finding ways to sustain and
grow their businesses. Traditional growth models that focused on rolling out more stores and
adding more product lines, no longer enjoy the return on investment they once did. Successful
retailers are those who are able to adapt and change to the environment and develop new ways of
serving The retail industry in India is hailed as a sunrise sector, and is estimated to double in

value from US$ 354 billion in 2010 to $640 billion by 2015. In fact, India has topped AT
Kearney's annual Global Retail Development Index (GRDI) for the third year in a row as the
most attractive market for retail investment. customers, respecting the dynamics of current trends
and adapting accordingly. The key growth areas include the urban, luxury segment on one end
of the spectrum and serving the rural sector on the other. In addition, government policy
encouraging FDI in the segment has resulted in a plethora of international retailers keen on
entering the market; American retail giant Wal-Mart has tied-up with Bharti Enterprises and
global coffee giant Starbucks' has tied up with PVR Limited.
GROWTH OF INDIAN RETAIL SECTOR
According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,
India retail industry is the most promising emerging market for investment. In 2007, the retail
trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In
2009, it rose to 12%. It is also expected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is expected to

grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total
market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of
the total retail market.

RETAIL FORMATS IN INDIA
Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of

categories.
 Mom-and-pop stores: they are family owned business catering to small sections; they
are individually handled retail outlets and have a personal touch.
 Departmental stores: are general retail merchandisers offering quality products and
services.
 Convenience stores: are located in residential areas with slightly higher prices goods
due to the convenience offered.
 Shopping malls: the biggest form of retail in India, malls offers customers a mix of
all types of products and services including entertainment and food under a single roof.
 E-trailers: are retailers providing online buying and selling of products and services.
 Discount stores: these are factory outlets that give discount on the MRP.
 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and
other small items can be bought via vending machine.
 Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and
sporting goods. This is also known as Multi Brand Outlets or MBO's.
 Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of
examples.

Major Retailers in India

Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the country.
Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the
country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year
2010. In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It has the following
retail segments:
 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar, Collection-i
 Consumer Electronics: e-zone
 Shoes: Shoe Factory
 Books, Music & Gifts: Depot
 Health & Beauty Care: Star, Sitara
 E-tailing: Futurebazaar.com
 Entertainment: Bowling Co.
TataGroup
Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book
and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across
the country.
RPGGroup
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food &
grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and
Beauty care outlets “Health and Glow”

Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh
stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to
reach Rs. 90,000 crores by 2010.
AVBirlaGroup
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe,
Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments
of retail. It will invest Rs. 8000-9000 crores by 2010.

Company Background.
The Group’s foray into the retail sector began in December 2006 when it acquired Trinethra, the
chain of stores based in south India. May 2007 saw Aditya Birla Retail Limited (ABRL) launch
their own brand of stores called 'More.'
ABRL’s vision is “to consistently provide the Indian consumer complete and differentiated
shopping experiences and be amongst India’s top retailers while delivering superior returns to
all stakeholders”.
With a vision is to be among the leading retail players in India, Aditya Birla Retail
launched its first supermarket, more. for you in May, 2007. Since its launch, the more. for you
has an aggressive roll out, reaching a total count of over 640 stores across India today
more. for you is your neighborhood supermarket which takes care of your everyday household
needs and more. Spread across a wide range of products of food and non food items, ranging
from basic necessities such as, fruits and vegetables, staples, personal care, home care, household
care products, general merchandise, and dairy products, more. for you provide a one stop
solution for your grocery shopping needs. Also in store are essentials such as, innerwear, kids
essentials, and a pharmacy, bakery and a mobile store. With a range of over 4,000 products, we
are able to fulfill your daily shopping needs all under one roof, at a convenient location close to
you.
The more. for you promises a world class shopping experience, with a modern store
layout, easy to shop with friendly staff at hand to provide assistance, electronic billing facilities
and a colorful ambience. At more. for you we offer branded food and grocery products sourced
from the leading brands from all over India, along with private label brands from our own
portfolio - available in a broad selection for you, always giving you the best possible value for
your money.Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28
billion Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd.
expanded its presence across the country under the brand "more." with 2 formats Supermarket

and Hypermarket. Supermarket more. for you - Conveniently located in neighborhoods, more.
supermarkets cater to the daily, weekly and monthly shopping needs of consumers. The product
offerings include a wide range of fresh fruits & vegetables, groceries, personal care, home care,
general merchandise & a basic range of apparels. Currently, there are over 600 more.
Supermarkets across the country. Hypermarket more. MEGASTORE - is a one-stop shopping
destination for the entire family. Besides a large range of products across fruits & vegetables,
groceries, FMCG products, more. MEGASTORE also has a strong emphasis on general
merchandise,apparels.
Till end-September 2009, the company had set up 640 supermarkets and five hypermarkets. All
the supermarkets are branded More. and the hypermarkets are branded More Megastore. The
company has around 11,000 employees and has a pan-India presence. More. supermarkets are
neighbourhood stores with the core proposition of offering value, convenience and trust to the
customers and averaging 2,500 sq ft area. The hypermarkets are self-service superstores offering
value and range in food and non-food products and services at a single location. Hypermarkets
are located in large catchment areas and encourage mass consumption with discount prices and
substantial depth of assortment with an average store size of 55,000 sq ft shopping area.
In May 2009 Aditya Birla Retail introduced a value proposition for its supermarkets and
encapsulated it into a promise of giving its customers “Hamesha Extra” which has resonated with
the consumer. “Hamesha Extra” is the core essence of More. It means customers will always feel
that they have got something extra while shopping at More.
Within a short span of less than three years, More. has more than 1.6 million members as part of
its loyalty programme. More. has also launched a huge range of private labels in food and
grocery, staples and apparel which have already obtained a significant share of category as well
as salience with the consumer.
Aditya Birla Retail was presented the ‘Retail Best Employer of the Year’ award at the Reid and
Taylor Awards for Retail Excellence, by the global jury of the Asia Retail Congress 2009.
Aditya Birla Retail was also recognised for impactful retail and visual merchandising at the same
forum. The company bagged the ‘Most Admired Retailer of the Year Award’ in the Smart

Strategy category at the prestigious Images Retail Awards 2009, during the India Retail Forum at
Mumbai.
RETAIL MIX
Retail marketing mix is the term used to describe the various elements and methods
required to formulate and execute retail marketing strategy. Retail managers must determine the
optimum mix of retailing activities and co-ordinate the elements of the mix. The aim of such
coordination is for each store to have a distinct retail image in consumers’ mind. The mix may
vary greatly according to the type of market the retailer is in, and the type of product/services.
Many elements may make up a firm’s retail marketing mix, the essential elements may
include Store location, merchandise assortments, Store ambience, customer service, price,
Communication with customers, Personal selling, Store image, Store design, Sales incentives,
People, Process, Physical evidence, etc
 Store Location
MORE located in neighborhoods with an attractive and consistent range of
products. Supermarkets cater to the daily, weekly and monthly shopping needs of
consumers. The product offerings include a wide range of fresh fruits & vegetables,
groceries, personal care, home care, general merchandise & a basic range of apparels.
Currently, there are over 600 more. Supermarkets across the country.
 Merchandise Assortments
MORE also has a range of products from its own stable available across value,
premium and select ranges. The products have been quality-checked and are available in
attractive packaging at competitive prices. To avail additional benefits, at no extra
charge, customers can also enroll for the membership program Clubmore. It offers a wide
range of product categories including fruits and vegetables, staples, personal care, home
care, household general merchandise, poultry, dairy products, a pharmacy and a well-
stocked bakery
 Pricing

The pricing technique used by most retailers is cost-plus pricing. This involves

adding a markup amount (or percentage) to the retailer's cost. Another common technique
is suggested retail pricing. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer. Prices are fixed and
displayed on signs or labels. Alternatively, when prices are not clearly displayed, there
can be price discrimination, where the sale price is dependent upon which the customer
is.
 Store Design & Display
MORE for you promises a world class shopping experience, with a modern store
layout, easy to shop with friendly staff at hand to provide assistance, electronic billing
facilities and a colorful ambience. At MORE. for you we offer branded food and grocery
products sourced from the leading brands from all over India, along with private label
brands from our own portfolio - available in a broad selection for you, always giving you
the best possible value for your money. One way to do is to hire a merchandising
solutions company to design custom store displays that will attract more customers in a
certain demographic.
 Store Image
MORE promises a world-class pleasurable shopping experience to Indian

consumers in their very own neighborhood. more. quality, more. Variety more.
Convenience and more.Value are the four delivery cornerstones of the more. Chain of
supermarket stores.
more.quality
Every product at more.goes through a thorough quality check process ensuring
100 percent more satisfaction.
more.variety
Apart from a large range of national brands, shoppers will also find a section
called the Best of India, which is an assortment of unique products sourced from across
India. The wide range of fresh fruits and vegetables along with private label offerings

under brand names Value, Select and Premium ensure that more. Variety is a promise
delivered across the store.
more.convenience
Convenient locations within easy reach of consumers and a neat, cheerful and
friendly layout, enough isle space, signage that speaks the consumer's language aiding in
identifying what she has come to shop for easily, all go a long way in ensuring more.
Convenience.
more.value
more. Promises best in market pricing. Linking up directly with farmers to source
fresh fruits, vegetables and staples ensure great quality as well as great price. Add to this,
the membership program Clubmore, which provides convenience, customized shopping
solutions and savings, and the more. value promise becomes all the more evident.
 Customer service
Customer service is the "sum of acts and elements that allow consumers to receive
what they need or desire from your retail establishment." It is important for a sales
associate to greet the customer and make himself available to help the customer find
whatever he needs. When a customer enters the store, it is important that the sales
associate does everything in his power to make the customer feel welcomed, important,
and make sure he leave the store satisfied. Giving the customer full, undivided attention
and helping him find what he is looking for will contribute to the customer's satisfaction.

RETAIL LOCATION MERCHANDISE ASSORTMENT

Choosing a product for your retail store to sell may very well be the most difficult
decision you will need to make when starting a retail business. The choices are limitless and the
task may be overwhelming at first. Not only should there be a demand for your products, but it
must be profitable and something you enjoy selling. Before you commit to a product or product
line, consider the following factors while deciding what products to sell.
Marketability
Let's face it, it won't matter what products you sell if your customers aren't buying.
Before considering what product to sell, determine what market you want to sell to. Once you
know what kind of customer you want, then you'll be able to determine their needs. If your
products only appeal greatly to some people, it may not be enough to sustain a business. Your
product selection doesn't have to appeal to all of the population but it should be something you
can convince a large percentage of shoppers they need.
Profit Margin
Selling big ticket items is generally more profitable, but can require more credibility to
sell. When you look at the price of the product, don't forget to calculate direct and indirect costs
(like overhead) of selling your goods. If you think you can sell 50 widgets a day for $1.00 each
and the widget cost you $.50 each, it may look like you have a profit of $25 per day. But when
you learn your overhead expenses average $20 per day, you may find your profit isn't sufficient
even though sales are good. The best selling products won't ever earn any real money if
your margin is too small.
Consumable

Choose a product with recurring sales value. A consumable item that needs to be
replaced on a regular basis is one way a retailer can establish long term sales. By establishing a
customer base with recurring products, customers will continue to come back to you to buy more
as they use up the products. Additionally, satisfied customers are more open to recommendations
for related products.
What's Popular?
When it comes to selecting products to sell based on what's popular, timing is

extremely important. New trends and products can be a great boost to your business but you'll
need to be at the beginning of the product life cycle in order to be successful. Learning to pick a
hot product before it becomes hot is a valuable skill that comes from knowing your market.
Competition
Competition is healthy and there are ways other than volume and price a smaller
store can compete with larger retailers. On the other hand, the more unique the product, the less
chance of competition.
Private Label
One way to guarantee having a truly unique product line is to make the item yourself.
Another way is to partner with a small business that makes a product you would enjoy selling.
Also consider private label products which will allow you to brand an item made by another
person.
Quality
When deciding which products to sell in your store, ask yourself the following
question. Is this product something I would give my dearest friend? If not, you may want to keep
looking. Product quality is extremely important when your reputation is on the line.

Diversity
Keep your product offering simple in the beginning. If your product line is narrow
and focused, then your marketing efforts can be just as tightly focused, which will bring you the
best results for your marketing dollars. As your business grows, so can your product line as long
as you keep new products compatible with the type of business, your location and your market.
PRICING STRATAGIES
Retail Pricing Strategies
There are many outside influences that affect profitability and a retailer's bottom line. Setting the
right price is a crucial step toward achieving that profit. Retailers are in business to make a
profit, but figuring out what and how to price products may not come easily.
Before we can determine which retail pricing strategy to use in setting the right price, we must
know the costs associated with the products. Two key elements in factoring product cost is the
cost of goods and the amount of operating expense.
The cost of goods includes the amount paid for the product, plus any shipping or handling
expenses. The cost of operating the business, or operating expense, includes overhead, payroll,
marketing and office supplies.
Regardless of the pricing strategy used, the retail price of the products should more than cover
the cost of obtaining the goods plus the expenses related to operating the business. A retailer
simply cannot succeed in business if they continue to sell their products below cost.
Retail Pricing Strategies
Now that we understand what our products actually cost, we should look at how our competition
is pricing their products. Retailers will also need to examine their channels of distribution and
research what the market is willing to pay.

Many pricing strategies exist and each is used based on particular a set of circumstances. Here
are a few of the more popular pricing strategies to consider:
Mark-up Pricing
Markup on cost can be calculated by adding a pre-set (often industry standard) profit margin, or
percentage, to the cost of the merchandise.
Markup on retail is determined by dividing the dollar markup by retail.
Be sure to keep the initial mark-up high enough to cover price reductions, discounts, shrinkage
and other anticipated expenses, and still achieve a satisfactory profit. Retailers with a varied
product selection can use different mark-ups on each product line.
Vendor Pricing
Manufacturer suggested retail price (MSRP) is a common strategy used by the smaller retail
shops to avoid price wars and still maintain a decent profit. Some suppliers have minimum
advertised prices but also suggest the retail pricing. By pricing products with the suggested retail
prices supplied by the vendor, the retailer is out of the decision-making process. Another issue
with using pre-set prices is that it doesn't allow a retailer to have an advantage over the
competition.
Competitive Pricing
Consumers have many choices and are generally willing to shop around to receive the best price.
Retailers considering a competitive pricing strategy will need to provide outstanding customer
service to stand above the competition.
Pricing below competition simply means pricing products lower than the competitor's price.
This strategy works well if the retailer negotiates the best prices, reduces costs and develops a
marketing strategy to focus on price specials.

Prestige pricing, or pricing above competition, may be considered when location, exclusivity
or unique customer service can justify higher prices. Retailers that stock high-quality
merchandise that isn't available at any other location may be quite successful in pricing their
products above competitors.
Psychological Pricing
Psychological pricing is used when prices are set to a certain level where the consumer
perceives the price to be fair. The most common method is odd-pricing using figures that end in
5, 7 or 9. It is believed that consumers tend to round down a price of $9.95 to $9, rather than $10.
Other Pricing Strategies
Keystone pricing is not used as often as it once was. Doubling the cost paid for merchandise
was once the rule of pricing products, but very few products these days allow a retailer to
keystone the product price.
Multiple pricing is a method which involves selling more than one product for one price, such
as three items for $1.00. Not only is this strategy great for markdowns or sales events, but
retailers have noticed consumers tend to purchase in larger amounts where the multiple pricing
strategy is used.
Discount pricing and price reductions are a natural part of retailing. Discounting can include
coupons, rebates, seasonal prices and other promotional markdowns.
Merchandise priced below cost is referred to as loss leaders. Although retailers make no profit on
these discounted items, the hope is consumers will purchase other products at higher margins
during their visit to the store.
As you develop the best pricing model for your retail business, understand the ideal pricing
strategy will depend on more than costs. It also depends on good pricing practices.

It is difficult to say which component of pricing is more important than another. Just keep in
mind, the right product price is the price the consumer is willing to pay, while providing a profit
to the retailer.
Independent retail business owners often worry when a large chain store comes to town. The
threat of having to compete with large retailers keeps many would-be entrepreneurs from even
opening a shop. Unfortunately, those fears are well-founded. Studies show people purchase a
higher percentage of their merchandise from the mass merchandisers and consequently a lower
percentage from local merchants.
It may be daunting but despite the emergence of these multi-million dollar businesses, many
small retailers continue to thrive (and profit) in a highly competitive marketplace. The key to
survival is to offer the products and services that your competition does not. Strategies must be
implemented to overcome the lower prices and wider selection that large retailers provide. Here
are some tips to better position your retail business for competing with the big box stores.
Don't Panic
Occasionally, we can be our own worst enemy. Talk of a big competitor coming to your
community is not a reason to immediately consider relocating or closing your business. First,
recognize that you may need to make a positive change in the way you do business. Then, assess
whether or not you have the desire to make those changes.
Do the Research
Seek advice from your trade association or consider hiring an industry consultant to conduct a
formal study of what customers value most and what they value least about your business.
Understand your store's competitive edge. Don't be afraid to shop your competition. One way to

be educated about the way your competition does business is by experiencing their customer
service first hand. If possible, talk to their customers. Find out what their shoppers like or dislike
about the chain store.
Dare to Be Different
Mass merchandisers generally have a little of everything, whereas smaller specialty stores can
focus on a narrow but lucrative niche. This can establish your store as the place to go when
buying these items. If your market niche is very small, consider keeping a few products and
services that appeal to a wider range of customers, but have exceptional product depth.
Focus on what makes your business unique. Emphasize the originality of your inventory as
compared to the items offered by the chain store. Customers are intrigued by the unusual and are
often attracted to the idea of getting something special from an independently owned business.
Smaller retail businesses also have the luxury of creating a comfortable, cozy atmosphere within
their store. This gives your store a personality which is often lacking at the big stores.
The Power of Pricing
Be open to a little haggling where price is concerned. More price negotiating goes on in your
"Mom and Pop" stores than in the big box stores. Bargain shoppers know the independent
retailer has the power to negotiate a sale and these customers are more inclined to shop where
they feel they set their own prices. Remember, it is all about the customer's perception.
Using loss leaders as a marketing tool can also help gain new customers and increase return
visits. Implemented correctly, loss leaders have been proven to be a profitable pricing strategy.
Personal Attention
Treat each customer as your best customer. As a small store owner, you can concentrate on small
details. Superb customer service is the biggest intangible asset to the independent business.
People like to shop where they feel comfortable and where they feel the owner truly cares about
their wants and needs. It is the least expensive change to make in order to take on the larger
chain stores.

Staffing Your Store- In order to keep your employees from defecting to the competition, you
should treat them fairly. Motivate your staff and pay attention to their needs. Help your staff
become proficient in their respective departments and make sure they are readily available to
meet your customers' needs. If your employees can provide this, your customers will have an
extra incentive to continue doing business with you.
These tips for competing with big box stores can help level the playing field. However, don't be
misled into thinking exceptional customer service or unique products will win out over lower
prices every time. As our customers' shopping choices change, so should our thinking. To
succeed, we must lead or keep pace with the change. With or without new retail competition, this
kind of planning is something small retailers should be doing anyway.
THE RETAIL COMMUNICATION MIX
Communication Mix is the range of approaches and expressions of a marketing idea developed
with the hope that it be effective in conveying the ideas to the diverse population of people who
receive it.
It is designed to achieve a variety of objectives for the retailer, such as building a brand image of
the retailer in the customer's mind, increasing sales and store traffic, providing information about
the retailer’s location and offering, and announcing special activities.
Retailers communicate with customers through various means. These elements in the
communication mix must be coordinated so customers have a clear, distinct image of the retailer
and not to be confused by conflicting information.
Many retailers use rules of thumb to determine the size of the promotion budget. Marginal
analysis, the most appropriate method for determining how much must be spent to accomplish
the retailer's objectives, should be used to determine whether the level of spending maximizes he
profits that could be generated by the communication mix.

The main elements that make up the promotions/communications mix are:

 PAID IMPERSONAL COMMUNICATION
Advertising
It is an Effective medium for creating awareness and interest. Low control over response.
Television
Cinema
Radio
Directories
Packaging
Hoardings/Posters
Magazines
Catalogues
Brochures
Internet
Sales Promotion
Effective medium for creating awareness, interest and credibility.

Little control.
Publicity can be highly credible if it is well thought - out and it is extremely cheap. A feature in a
paper, magazine sometimes seem more credible to readers than ads BUT it is restricted by
editorial decisions by the media source used
Money-off coupons
Free gift Samples
Store Atmosphere
The combination of the store’s physical characteristics (architecture, layout, signs and displays,
colors, lighting, temperature, sounds, smells) together create an image in the customers’ mind.
Retailers’ Community Building Websites
It offer opportunities for customers with similar interests to learn about products and services
that support their hobbies and share information with others
 PAID PERSONAL COMMUNICATION
Personal selling
In this salespeople satisfy needs through face to face exchange of information. Effective
medium for influencing all stages of the decision making process, especially the decision to buy.
High level of control.
Good for small businesses with local markets complex products and services.
Direct Mail

Mailshots
E-mail
CD-ROMS
Email
Retailers inform customers of new merchandise, receipt of order or when order has been shipped
M-Commerce (mobile commerce)
 UNPAID IMPERSONAL COMMUNICATION
Publicity
It is communication through significant unpaid presentations about the retailer, usually a news
story, in impersonal media.
Effective medium for creating awareness, interest and credibility.Little control.

Publicity can be highly credible if it is well thought - out and it is extremely cheap. A feature in a
paper, magazine sometimes seem more credible to readers than ads BUT it is restricted by
editorial decisions by the media source used
UNPAID PERSONAL COMMUNICATION
Word of Mouth
Effective medium for creating interest and desire for your product or service and it is extremely
cheap. Give excellent service and produce good quality pay attention to packaging give
customers something to pass onto friends such as business cards give customers incentive to
bring new customers e.g. special discounts become part of local community activities team up

with other local businesses and pass customers between you to get people to tell others about
you, you must:
PersonalSelling
Presentations
Meetings
Telemarketing
Trade fairs
Communication is an integral part of the retailer’s marketing strategy. Primarily,

communication is used to inform the customers about the retailer, the merchandise and the
services. It also serves as a tool for building the store image. Retail communication has moved
on from the time when the retailer alone communicated with the consumers. Today, consumers
can communicate or reach the organizations. Examples of this include toll free numbers, which
retailers provide for customer complaints and queries. Another example is the section called
Contact Us on the websites of many companies.
It is believed that every brand contact delivers an impression that can strengthen or
weaken the customer view of the company. The retailer can use various platforms / channels for
communication. The most common tools are:
1) Advertising
2) Sales Promotion
3) Public Relations
4) Personal Selling
5) Direct Marketing
The tools are illustrated in Figure below
Retail Communication Mix >> Sales promotion>> Advertising >> Direct marketing>> Personal
Selling >> Public Relations

Let us now examine each of these tools in detail:
Advertising – It can be defined as any paid form of non-personal presentation and

communication through mass media. It is popularly believed that one of the main aims of
advertising is to sell to a wide mix of consumers and also to induce repeat purchases. However, a
retailer may use advertising to achieve any of the following objectives:
1) Creating awareness about a product or store

2) Communicate information in order to create a specific image in the customer’s mind in terms
of the store merchandise price quality benefits etc.
3) Create a desire to want a product.
4) To communicate the store’s policy on various issues.
5) Help to identify the store with nationally advertised brands.
6) Help in repositioning the store in the mind of the consumer.
7) To increase sales of specific categories or to generate short term cash flow – by way of a sale,
bargain days, midnight madness etc.
8) Help reinforce the retailer’s corporate identity.
The retailers for advertising may use any one or a combination of the following mediums:
1)Press advertisements
2) Posters and leaflets, brochures booklets
3) Point of purchase displays
4) Advertising can also be done through mediums like radio, television, outdoor hoardings and
the internet.
Determining the Advertising / Promotional budget
While there is no definite formula for determining the advertising or the overall promotion
budget the following are the main methods that may be employed to determine the advertising
budget. ‘
The percentage of Sales method:

This is perhaps the most commonly used method for determining the budget. Here, the
budget is a fixed percentage of sales. The biggest advantage of this method is that it is simple to
apply and it allows he retailer to set an affordable limit on promotional activity. This method
however, takes little consideration of the market conditions of any special advertising needs.
The Competitive Parity Method
Here the budget is based on the estimated amount spent by the competition. There is risk
that it could be based on wrong information and again there is little consideration for market
conditions or growth opportunities.
The research approach or the Task and objective Method
The budget is determines on the basis of a study of the best forms of advertising media
and the costs of each. The retailer formulates advertising goals and then defines the tasks
necessary to accomplish these goals. Next, the management determines the cost for each task and
adds up the total to arrive at the required budget. Here, he advertising expenses are linked to the
retailer’s objectives and the effectiveness of some forms of advertising can be measured and
compared to costs.
The incremental Method
The budget is simply based on the previous expenditure. What can be afforded? The
budget allocated for advertising or for promotion is based on the basis of the money that can be
allocated by the retailer for this purpose. While determining which method s to be adopted, a
retailer needs to take into consideration the market that the firm is operating in , its current
market position and how important advertising is in that market.
STORE LAYOUT
STRAIGHT FLOOR PLAN DIAGONAL STORE DESIGN

The straight floor plan is an excellent store The diagonal floor plan is a good store
layout for most any type of retail store. It layout for self-service types of retail
makes use of the walls and fixtures to create stores. It offers excellent visibility for
small spaces within the retail store. The cashiers and customers. The diagonal
straight floor plan is one of the most floor plan invites movement and traffic
economical store designs flow to the retail store.
.
ANGULAR FLOOR PLAN MIXED FLOOR PLAN
The angular floor plan is best used for high- The mixed floor plan incorporates the
end specialty stores. The curves and angles straight, diagonal and angular floor
of fixtures and walls makes for a more plans to create the most functional
expensive store design. However, the soft store design. The layout moves traffic
angles create better traffic flow throughout towards the walls and back of the
the retail store. store.
retail store.

FOLLOWING IS THE schematic representation of the retail outlet which is opposite to bus
stand Saptapur, Dharwad
BILLING COUNTER STORE ROOM
PERISHABE GOODS MEDICINES
OTHER GROCERY ITEMS
STORE MANAGERS ROOM ENTRANCE

AND EXIT
About the outlet visited
 Visited – Dharwad (Saptapur)

 Started a branch in 2007 in Dharwad
 Number of employees – 13
 Area of floor ( in meters) – 20 x 40
 Single floor system- (section specification)
 Working hours – 9am to 10 pm
 Total number of outlets in Dharwad city – 2
 ( Saptapur and vidyagiri)
 Average footfall per day – 150 to 200
 Footfalls -Monthly( increases during Saturdays and Sundays ,beginning of month)

Yearly(festivals)
 Area of retail outlet-varies with demography of place(proximity of customers, distance

from residential area)
There are total seven sections
1. Personal care Oral care , Baby care
2. Health care-Hair care, Sanitary needs
3. Processed food- Biscuits, Noodles, Ready food items, Jams
4. Grocery Wheat, Rice, cereals
5. Home appliances-Puja needs, Utensils
6. Beverages & Ice creams

7. Green vegetables & Fruits
HUMAN RESOURCE MANAGEMENT IN RETAILING
The four main activities of the process of Human Resource Management are Planning,
Recruitment and Selection, Training and Performance. When retailers are applying the Human
Resource Management process, the labor laws, diversity and employee privacy has to be
considered.
Planning
By analyzing the current workforce will allow the company to evaluate the department
performance and helps to realize what kind of staff are required in order to form the skills
which they needed. Retailers need to employ the right number of staff in order to make the
workforce more efficiency. Too many employees will increase costs, and too few will not able
to carry out of its work. Therefore, retailers have to analyze both current human resources
within the retailing organizations, and future plans or strategies of the organization and the
effect on human resource. Meanwhile, because of the special human resource environment in
the retail industry, the effects of the labor market factors have to be considered for their human
resources planning. Due to the development of Information Technology, companies may not be
able to find the employees who have the skills they required. In addition, internal staffing
factors such as labor turnover, sickness or accident rates also have to be considered. However,
planning has to be thought out carefully, and updated when other factors have changed. Take
boots as an example, they evaluate the local market trend and qualification of local population,
etc and seek to the staff that need to form the skills they lack. This process takes time to
operate. However, it is less expensive than the recruitment and selection process. Meanwhile, it
will be helpful to find the employees who already have the skills that the retailers require.

Recruitment & Selection
Recruitment is the process of identifying the need for a new employee, defining the job and the
appropriate person for it, attracting a number of suitable candidates, then selecting the one best
suited to the job. When a company is looking for new employees, they tend to use different
channels in order to find the most suitable personnel. The channels could be educational
institution, TV/magazine advertising, agency or any other channels which is the best way to
find the right personnel. For example, in a retail company, when they are looking for an entry
level sales personnel, they tend to reply on educational institutions, advertisements and
employee recommendations. Moreover, when a retail company is looking for middle-
management positions, they are likely to use employment agencies, competitors,
advertisements and current employees. The recruitment process can be very costly. It takes a
great deal of time to set up an effective recruitment process. Therefore, the company has to
carry this job out in a systematic way.
The next job is to select new employees from among those the company has recruited. The
main objective in the selection process is to match the character of potential employees with the
requirements of the jobs to be filled. The process of selection includes job analysis and
description, the application blank, interviewing, testing, references and a physical examination.
These processes should be followed in an integrated manner. However, the selection process
can be very costly because the company has to pay for the postage of sending out application
forms to candidates and they may also have to pay for the travel expenses for candidates'
journey to interview.
TYPE OF CUSTOMER SERVICE
In the retail industry, it seems as though we are constantly faced with the issue of
trying to find new customers. Most of us are obsessed with making sure our advertising,
displays, and pricing all “scream out” to attract new customers. This focus on pursuing new
customers is certainly prudent and necessary, but, at the same time, it can wind up hurting us.

Therefore, our focus really should be on the 20 percent of our clients who currently are our best
customers.
In retail, this idea of focusing on the best current customers should be seen as an on-
going opportunity. To better understand the rationale behind this theory and to face the challenge
of building customer loyalty, we need to break down shoppers into five main types:
Loyal Customers
Naturally, we need to be communicating with these customers on a regular basis by

telephone, mail, email, etc. These people are the ones who can and should influence our buying
and merchandising decisions. Nothing will make a Loyal Customer feel better than soliciting
their input and showing them how much you value it. In my mind, you can never do enough for
them. Many times, the more you do for them, the more they will recommend you to others.
Discount Customers
This category helps ensure your inventory is turning over and, as a result, it is a key
contributor to cash flow. This same group, however, can often wind up costing you money
because they are more inclined to return product.
Impulse Customers
Clearly, this is the segment of our clientele that we all like to serve. There is nothing
more exciting than assisting an Impulse shopper and having them respond favorably to our
recommendations. We want to target our displays towards this group because they will provide
us with a significant amount of customer insight and knowledge.
Need-Based Customers
It is important to remember that Need-Based Customers can easily be lost to Internet

sales or a different retailer. To overcome this threat, positive personal interaction is required,

usually from one of your top salespeople. If they are treated to a level of service not available
from the Web or another retail location, there is a very strong chance of making them Loyal
Customers. For this reason, Need-Based Customers offer the greatest long-term potential,
surpassing even the Impulse segment.
Wandering Customers
For many stores, this is the largest segment in terms of traffic, while, at the same
time, they make up the smallest percentage of sales. There is not a whole lot you can do about
this group because the number of Wanderers you have is driven more by your store location than
anything else.
Keeping in mind, however, that although they may not represent a large percentage
of your immediate sales, they are a real voice for you in the community. Many Wanderers shop
merely for the interaction and experience it provides them. Shopping is no different to them than
it is for another person to go to the gym on a regular basis. Since they are merely looking for
interaction, they are also very likely to communicate to others the experience they had in the
store. Therefore, although Wandering Customers cannot be ignored, the time spent with them
needs to be minimized.
Becoming a Clubmore. member is easy
To join the Clubmore. program, just walk into any of our stores, and register with us by filling
out a simple enrollment form.You will be provided with a temporary card, with which you can
start earning points from Day 1 of shopping! On achieving certain targeted spends, you will be
eligible to redeem your collective points.

Each time you visit more. outlet, please remember to carry your Clubmore. card and present it
prior to billing in order to continue earning points.
Benefits
 Life time free membership

 Shop for Rs100 earn 10 points
 Points valid for 2 years
 Start earning points from day 1 of shopping
 Special offers and promotional activities only for Clubmore. members
Offers and promotions
At more. for you, we have adopted a competitive pricing policy ensuring that you receive the
best possible value. We retail a wide range of products below MRP. We also have a wide
selection of products on attractive offers and promotions that help you get more.from your
shopping.
You can expect to be pleasantly surprised at every visit to our store with attractive promotions
such as " Buy and Get Free ", discounts and special offers.
From time to time, we also run festival promotions that help you shop for special and festive

occasions. We also promote traditional favorites and local specialties during festivals to make
your shopping experience convenient.
At any given point in time, you will find a wide range of products on promotion which we offer
to enable you to make the most of your shopping, help you try new products and get you better
deals.
We also run celebratory promotions that give you an opportunity to win attractive prizes such as
cars, two wheelers, holiday packages, gift hampers and much more
Products and services

At more. for you we are committed to deliver quality & value to our customers and have a range
of private label brands as well as commercially branded products, offering - 100% satisfaction on
the quality of the products and services offered.
more. for you hosts a range of private label brands across various categories that follow stringent
quality norms, and are available in attractive prices and packaging. Our premium products give
you the opportunity to enjoy the difference and quality that is equal to or better than the market's
leading brands but at competitive prices.
Recently our private label brands received the coveted "The Most Admired Private
Label" Golden Spoon award at the Food Forum India.
We offer a wide range of assortment of over 4000 products, ranging from fresh food to
beverages, grocery to household care products. Our range covers everything, from day-to-day
essentials to traditional favorites, from delicious treats, to healthy alternatives
To ensure the freshest supply of fruits and vegetables for you, we have built direct linkages with
the farmers for daily supplies of farm fresh produce.
Our stores are built with a modern and comfortable ambience, air conditioned and with speedy
automated cashiering to help you shop better. We also have friendly in-store policies on
exchange and returns that help you shop with ease and comfort.
Challenges facing Indian retail industry
 The tax structure in India favors small retail business

 Lack of adequate infrastructure facilities
 High cost of real estate

 Dissimilarity in consumer groups

 Restrictions in Foreign Direct Investment
 Shortage of retail study options
 Shortage of trained manpower
 Low retail management skill
The Future
The retail industry in India is currently growing at a great pace and is expected to go up to US$
833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a
CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone
up and is also expected to go up further in the future. In the last four year, the consumer spending
in India climbed up to 75%. As a result, the India retail industry is expected to grow further in
the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of
40%.
References
 RETAILING MANGEMENT by Levy and Weitz. Tata McGraw-Hill, 5th Edition.
Retail Management, Barry Berman- PHI, 9/E, 2005
 Retail Marketing Management, David Gilbert- Pearson Education 1/e, 1999
RETAIL BIZ, Magazine.
 www.more.com
 www.google/moreworldindia.com


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A study on more (retail)

S L no. Topic Page no.

2. Objectives Of The Study 3

3. Scope Of The Study 3

5. Learning And Outcomes 4

6. Industry Back Ground 5

9. Retail Location Merchandise Assortment 15

10. Pricing Strategies 17

11. Retail Communication Mix 22

13. MORE – Dharwad(Saptapur) 31

14. Human Resource Management In Retailing 32

15. Types Of Customer Service 34

16. Challenges Faced In Retail Industry 38

Retail Management Page 1

Retail Management Page 2

Objectives of the Study

1. To make a comparative study of the different players in the Indian retail.

2. To understand the consumer buying behavior for organized retailing

Scope of the study

and customer relationship management.

other secondary sources.

Time period of the study – 2 months

Retail Management Page 3

Learnings and outcomes

 Retail store at saptapur is well situated.

 Proper merchandising helps in up selling and cross selling.

 Store layout also contributes to increase in footfalls and hence revenues.

 Advertisement and communication is limited only to saptapur but it has to be re looked

Retail Management Page 4

ABOUT THE INDUSTRY

Retail Management Page 5

GROWTH OF INDIAN RETAIL SECTOR

According to a report by Northbride Capita, the India retail industry is expected to

Retail Management Page 6

RETAIL FORMATS IN INDIA

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of

Retail Management Page 7

Major Retailers in India

 Food & Grocery: Big Bazaar, Food Bazaar

Retail Management Page 8

Retail Management Page 9

Retail Management Page 10

Retail Management Page 11

Retail Management Page 12

The pricing technique used by most retailers is cost-plus pricing. This involves

MORE promises a world-class pleasurable shopping experience to Indian

Retail Management Page 13

Retail Management Page 14

RETAIL LOCATION MERCHANDISE ASSORTMENT

Retail Management Page 15

When it comes to selecting products to sell based on what's popular, timing is

Retail Management Page 16

Retail Pricing Strategies

Retail Management Page 17

Markup on retail is determined by dividing the dollar markup by retail.

Retail Management Page 18

Other Pricing Strategies

Retail Management Page 19

Retail Management Page 20