Professional Documents
Culture Documents
Bathinda, Punjab
Project Report
Submitted By
Ms. Kamlesh Kumari Jayas
Reg. No. 1502011759
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BONAFIDE CERTIFICATE
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DECLARATION BY THE STUDENT
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ACKNOWLEDGEMENT
First and foremost, I would like to thank almighty God for his never-
ending grace and mercifulness thorough out my life.
At the onset, I would like to express my heartiest thanks to Mr. PAWAN
PURI (Owner of Pammi’s National Bakers) who helped me in understanding
such a beautiful business which is fuelled by so much affection and passion.
I am extremely thankful to my project guide, Mr. PUNEET BANSAL
for his everlasting support, much needed constructive criticism and valuable
guidance. His positive attitude and belief in my abilities guided me in achieving
this challenging, enjoyable, rewarding and stimulating experience.
I express my sincere regard to Mr. DEEPAK KUMAR (Store
Supervisor) for his generous and kind efforts. His command over the Store
Operations is excellent. The information shared by him with me regarding
National Bakers was the key component in completing this project. Moreover, I
am also thankful to all other employees of the National Bakers who have been
very supportive throughout the project period.
I am thankful to Sikkim Manipal University who gave me an opportunity
to undertake a project at NATIONAL BAKERS.
Lastly I want to pay my heartiest thanks to my friends and people who
gave to me their valuable suggestion and guidance in completing my project.
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EXECUTIVE SUMMARY
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Design. As my project primarily emphasizes on the Store Operations of
National Bakers Store, Bathinda so I took help of Descriptive Research Studies.
Descriptive Research involves the description of the characteristics of the
variable, description of the extent of association between variables and it allows
the researcher to infer about the variables. Like in this case, the variables were
analyzing Store Operations, Products being offered, Footfall, Catchment Area
and the overall experience of the customers. Another reason was that I worked
on the data provided by the store i.e. it was secondary data (total footfall, total
sales, total no. of customers etc.) for a month and I knew which parameters to
work upon. Also I interviewed the customers and observed their behaviour
towards Store.
The project’s data collection was through Primary and Secondary
sources. Primary data was the one where I interviewed and observed the
customers and gave them questionnaires to fill for the purpose of Catchment
Area. Secondary data included the analysis part through the data given by the
Store. I gathered data of one month from the National Bakers Store i.e. from 1st
of December 2017 to 21st of January 2018 as the Sample Size. It included
Product Range, Total Footfall, Total Customers, Total Sales, Average Sales per
Customers and No. of Items Sold. For the questionnaire filling I took a sample
of 100 people from the nearby locations (Model Town Area, Phase-I, Phase-ll,
Jujhar Singh Nagar etc.). I also interviewed those who visited the store
regarding the Store Ambiance, Assortments of products and services provided.
Since sampling units were accessible, convenient, easy to measure, co-
operative and articulate, I chose Simple Random Sampling.
Simple Random Sampling is the basic sampling technique where we
select a group of subjects (a sample) for study from a larger group (a
population). Each individual is chosen entirely by chance and each member of
the population has an equal chance of being included in the sample. I
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interviewed the customers and analyzed the given data through my own
convenience and expertise.
Findings
These 6 weeks of my study was a good learning experience for me. I was
exposed to the practical aspects of Business Planning, Production, Marketing
and Retailing. The major findings are:
1. Product range should be reviewed time to time and to be increased.
2. There is an imminent need to communicate with Customers about specific
product choices apart from regular products of the Store.
3. Innovativeness is the key to success. Brainstorming sessions must be
conducted for new generation of new innovative ideas.
Conclusion
Finally analyzing all the factors responsible for increasing sales and the
no. of customers in National Bakers Store, Bathinda, I came to the conclusion
that the National Bakers Retail Group has a major focus on achieving customer
needs and their satisfaction level and not to those who made it possible i.e. the
Sales Force. There are multitudinous programs and events taking place to attract
a large amount of crowd from the respective locations. But the industry should
also keep in mind the integrated efforts made by the team i.e. the CSA’s, Store
Supervisors, Store Manager and the people involved in store activities for the
enhancement customers attraction by the store and finally maximization of
revenue.
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Table of Contents
4. Review of Literature
5. Research Methodology
a. Research Hypothesis
b. Research Model
c. Research Plan
d. Sampling Plan
e. Research Procedure
8. Suggestions/Recommendations
10. Conclusion
Bibliography
Annexure
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CHAPTER 1
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TITLE OF THE PROJECT
This project entitled “A STUDY OF RETAIL STORE OPERATIONS
OF NATIONAL BAKERS IN BATHINDA, PUNJAB” is meant to study the
retail store operations of NATIONAL BAKERS situated in Bathinda, Punjab.
My study involved analyzing the Basic Store Operations, Products, Catchment
Area, Footfall and Customer’s experience of the store.
● BASIC STORE OPERATIONS
These are key operations which are performed in the Store by the
Management, Production, Sales and Support team.
● PRODUCTS
The products refer to the range of products and services being offered to
customers by National Bakers.
● CATCHMENT AREA
It is defined as the area from where the customers are mostly attracted to the
store. In my project, the catchment area included Dhobi Bazar, 100 FT Road
and Model Town Phase-I.
● FOOTFALL
Footfall can be described as the no. of people who visit the stores. These
may not necessarily be the buyers. Window shoppers are also included in
this. The footfall in National Bakers Stores in Bathinda ranges from 300 to
1000 visitors per day depending upon the store location.
● CUSTOMER EXPERIENCE
It refers to the overall experience of the customers ranging from how they
feel about the products, ambience and customer service.
INTRODUCTION TO RETAIL
Inception of Retail Business:
Retailing is derived from the French word “retaillier” which means “To
cut off a piece or to break bulk”.
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Retail management is a relatively new field of study in India. It involves
effective planning, organising and implementing various activities and actions
related to the retail process.
The word ‘retail’ refers to:
The business of buying products from manufactures and wholesalers and
then selling those products to customers for a profit
Therefore, a ‘retailer’ refers to:
The merchant who purchases products from manufactures and
wholesalers and then sells those products to customers
As such, ‘retailing’ refers to:
The process of buying and selling of products by retailers Retail
management deals with all the activities undertaken by a retailer.
Retailing consists of the sale of goods or merchandise from a fixed
location, such as a department store, boutique or kiosk, or by post, 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. 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-users / consumers. Retail establishments are
often called 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.
Retail scenario in India
The Indian retail industry has emerged as one of the most dynamic and
fast-paced industries due to the entry of several new players. It accounts for
over 10% of the country’s Gross Domestic Product (GDP) and around 8% of
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the employment. India is the world’s 5th largest global destination in the retail
space.
Indian Retail Industry has immense potential as India has the second
largest population with affluent middle class, rapid urbanisation and solid
growth of internet.
Market Size: India’s retail market is expected to grow at a Compound
Annual Growth Rate (CAGR) of 10% to US$ 1.6 trillion by 2026 from US$ 641
billion in 2016. While the overall retail market is expected to grow at 12 per
cent per annum, modern trade would expand twice as fast at 20 per cent per
annum and traditional trade at 10%. Indian retail market is divided into
“Organised Retail Market” which is valued at $60 billion which is only 9% of
the total sector and “Unorganised Retail Market constitutes the rest 91% of the
sector.
Some Important Findings:
India’s Business to Business (B2B) e-commerce market is expected to
reach US$ 700 billion by 2020 Online retail is expected to be at par with
the physical stores in the next five years.
India has replaced China as the most promising markets for retail
expansion, supported by expanding economy, coupled with booming
consumption rates, urbanizing population and growing middle class.
India is expected to become the world’s fastest growing e-commerce
market, driven by robust investment in the sector and rapid increase in the
number of internet users.
The Indian retail trading has received Foreign Direct Investment (FDI)
equity inflows totalling US$1.04 billion during April 2000–June 2017,
according to the Department of Industrial Policies and Promotion (DIPP).
Walmart, global retail giant, plans to open 50 new cash-and-carry stores
in India over the next three to four years and locate half of the stores in
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Uttar Pradesh and Uttarakhand while creating over 40,000 jobs in the two
states.
Global e-commerce giant, Amazon is planning to enter the Indian food
retailing sector by investing US$ 515 million in the next five years, as per
Mr Harsimrat Kaur Badal, Minister of Food Processing Industries,
Government of India.
Future Consumer Ltd has formed a joint venture (JV) with UK’s largest
wholesaler, Booker Group, with an investment of Rs 50 crore (US$ 7.5
million), to set up 60-70 cash-and-carry stores in India in the next 3-4
years.
Mad Over Donuts (MoD), outlined plans of expanding its operations in
India by opening nine new MOD stores in Hyderabad and Chennai by
March 2017.
Government Initiatives: The Government of India may change the
Foreign Direct Investment (FDI) rules in food processing, in a bid to permit e-
commerce companies and foreign retailers to sell Made in India consumer
products.
Government of India has allowed 100% Foreign Direct Investment (FDI)
in online retail of goods and services through the automatic route, thereby
providing clarity on the existing businesses of e-commerce companies operating
in India.
Road Ahead: Retailers should leverage the digital retail channels (e-
commerce), which would enable them to spend less money on real estate while
reaching out to more customers in tier-2 and tier-3 cities. Both organised and
unorganised retail companies have to work together to ensure better prospects
for the overall retail industry, while generating new benefits for their customers.
In the Indian retailing industry, food and food products is the most
dominating sector and is growing at a rate of 9% annually. The branded food
industry is trying to enter the India retail industry and convert Indian consumers
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to branded food. Since at present 60% of the Indian grocery basket consists of
non- branded items. Indian retail industry is progressing well and for this to
continue retailers as well as the Indian government will have to make a
combined effort.
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Recently, there has been a steady inflow of MNC’s and other organized
players in this sector, leading to increased competition. It is necessary to study
the existing marketing strategies of successful bakery retailers and identify the
success factors for future growth. The scope of the present study is to explore
the above with respect to ‘National Bakers’ in the city of Bathinda.
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CHAPTER 2
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RESEARCH OBJECTIVES
Research is one of the most vital parts of the survey and is related to
collection of information and knowledge. Marketing Research is defined as the
systematic design, collection, analysis, and reporting of data and findings
relevant to a specific marketing situation facing the company.
My objective behind this study as a whole was to understand the exact
modus operandi of operations of the National Bakers Store, Bathinda. My
main research objectives were as follows:
1. To study retail operations & growth of National Bakers in Bathinda.
2. To study retail strategy of National Bakers in comparison with other Bakers.
3. To understand the consumer response and their preferences.
4. To anticipate changes required in bringing more customers to the store.
My objective was to study the current and emerging trends of the Store. I
also sought to gain a fair idea about Indenting, Checking of Delivery in
Distribution Channel, Receiving Goods in Store, Markdown etc.
These activities are done to ensure adequate raw material supply and to
prevent pilferage or any stock out situation of raw material like flour, sugar etc.
As this store is mainly known for its freshness and so there are customers who
are mostly attracted towards the Cakes and other baked items like Bread.
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CHAPTER 3
INTRODUCTION TO COMPANY
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INTRODUCTION TO COMPANY
Founder’s Message
There are some lines written along with a photograph of the founder of
National Bakers Late Mr. Sohan Lal Puri in one of their key Stores at 100 Feat
Road, Bathinda. It says:
There are two ways to live your life.
One is as though nothing is a miracle.
The Other is as though everything is a miracle.
Pammi's National Bakers Factory was established in 1940 in Firozpur
(Punjab) by Late Mr. Sohan Lal Puri. After family setting Mr. Sohan Lal Puri
shifted Bathinda in 1954. His business continued its ancestral profession by
setting a small production unit in Bathinda (Punjab). Slowly and gradually it
gained acceptability and popularity. Pammi's National Bakers is now being
recognized as leading manufacturing of Biscuits. It has strived to set new
standards of quality in all of its operations. The tag line of Pammi’s National
Baker is “We Bake Moments...” which itself says a lot about the deep rooted
beliefs of their Business.
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Ambience and Services at Pammi’s National Bakers:
A self-service outlet, Pammi’s National Bakers welcomes customers
between the hours of operation from 08:30 AM to 10:15 PM on all days of the
week. Upon entering this eatery, be greeted by the warm and polite staff
manning the counters, eager to serve you. From basic and simple cakes, this
bakery also showcases its expertise in the skilful art of designing artisanal and
bespoke cakes. Easily pay for your purchase using Cash, Debit or Credit Cards.
Frequently Ordered Items
Patrons of Pammi’s National Bakers & Florist in Bhatinda City are fond
of the Blueberry Cheese Cakes, Choco Doughnut, Melting Chocolate, Choco
Hazelnut, Chocolate Truffle Mousse and Fresh Fruit Muffin served here.
The National Bakers Stores in Bathinda are situated in places where there
are more of colonies. Major population residing there is of Service class i.e.
employees of Guru Nanak Dev Thermal Plant (GNDTP), National Fertilizers
Ltd., Talwandi Sabo Power Limited (TSPL), Guru Gobind Singh Refinery
(GGSR) and other educational Institutions.
This store has positioned itself as a convenience store located in middle
class neighbourhoods. To provide high quality Bakery products at competitive
prices, National Bakers concentrate on its procurement and logistics operations
on very high priority.
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Fig. 2 National Baker Store
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Pammi's National Bakers website www.pammisnationalbakers.com is
available to facilitate customer to order delicious cakes online. You just have to
do is pick up your phones and give them a call for home delivery. Order your
Favourite cakes, pastries. Now in Addition to the bakery, Pammi Bakers has
dine-in option as well which is totally vegetarian food inspired. You can enjoy
all their Products with your family, friends by sitting there. They offer some
yummy Snacks like Gol Gappe, Chaat as well which can make your day “wow”.
You can contact National Bakers on the following numbers: +(91)-164-
2239606, 2000000.
Some feedbacks about National Bakers:
“Treating the sweet-toothed citizens to an amazing variety of baked
goodies is Pammi’s National Bakers in Bhatinda city. This bakery cum
patisserie set shop in the year 1940, and soon enough it came to be known for
mouth-watering delicious baked treats. This bakery serves an assortment pure-
vegetarian treats such as cakes, pastries, cookies, snacks, puddings, mousse,
cheesecakes and muffins. You can also place an order for a sinfully indulgent
and decadent designer cake to suit the occasion. Having served a plethora of
customers since its inception, it has secured a staggering patronage from the
local residents living in and around Bhatinda.”
“I have been a regular customer of many Bakeries of Bathinda and
observing them closely for the last few years. I asked the customers which is the
best bakery in Bathinda and we got to hear that 90 times out of 100 that it’s
Pammi’s National Bakers which was more than sufficient to separate Pammi’s
National Bakers from others.”
Managerial Perspective
National Bakers run by owner Mr. Pawan Puri has shown a phenomenal
presence in the Malwa region of Punjab with almost all major cities of Punjab
coming under its purview. National Bakers had entered into this segment by
opening new retail stores in almost all major cities of Punjab. National Bakers
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plans to invest aggressively in the next 5 years in their retail division and plans
to begin retail stores in all major cities across the State eventually have a larger
footprint by year 2020. In addition to this, National Bakers is also poised to
mark its presence in sub urban and rural Punjab.
The National Bakers Stores will sell not only Cakes, Pastries, Puffs but
other packed products like large variety of Biscuits and Salted Snacks,
Namkeen etc. Besides, the stores would provide direct employment to over 250
young Indians and indirect job opportunities to over a 1000 people, according to
the company sources. The company also has plans to train students and
housewives in customer care and quality services for part-time jobs.
National Bakers had primarily targeted the middle and upper middle class
of Bathinda. It offered freshness, ambience and quality products at affordable
prices. The market gaps that existed at that point in the market were filled by its
offerings.
When all other bakers in Bathinda were concentrating more on the sweet
variety of bakery products, National Bakers offered a range of salty snacks
which immediate caught the fancy of the new generation of Bathinda. National
Bakers products were of good quality and at an affordable price. Also, the
ambience at the National Bakers outlets played a key role with an air
conditioned environment and re-heating arrangements using microwave ovens.
New product introductions have played a crucial role in the growth of the
brand. Its ‘Spicy Aloo Patty” were adapted to the local taste and preferences. It
also introduced products like ‘Mushroom Patty’ and ‘Mix Vegetable Patties’
which were a big hit in every house function in Bathinda. Meeting the customer
expectations over such a long period of time has developed a brand name for
National Bakers.
Business Strategies:
The company also capitalizes on the all traditional festive occasions from
Lohri, Diwali and New Year. Every festival, the company comes up with
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variety of traditional sweets and other dishes for dine-in and Gift packages.
National Bakers sold more than 55000 packets of Gazak, Rewaris and other
traditional dishes consumed on Lohri. This was achieved by arranging for
special gift boxes for such occasions and was advertised through banners,
posters, leaflets etc.
National Bakers used to sell packed biscuits and cake from its franchised
shops from the very beginning which gradually gained good acceptability. Also
National Bakers made excellent use of occasions to produce large quantities of
fruit cakes, plum cakes, etc. during Christmas and New Year which were
packed attractively and distributed through independent retailers apart from
their franchised shops. The success of National Bakers with its range of craft
bakery products and also the rising demand for packed cakes sold through
independent retailers prompted it to set up a large and modern Industrial Bakery
Unit in Bathinda Industrial Area on Mansa Road.
The packed cake market may be divided into two categories: Single cake
and Bar cake. The single cake market in Bathinda was largely unorganized and
consisting of smaller players primarily bread manufacturers. These producers
utilized the heat in the oven after the completion of bread production as baking
of cakes require lower temperature as compared to breads. As this involved no
additional fuel cost, these producers could price their cakes much lower.
However, the bar cake market was dominated by Britannia (a large scale
organized player) and Bonn (Comparatively smaller but organized player) and
the rest of the market consisted of unorganized manufacturers.
In the absence of organized players, there was very little standardization,
especially in case of single cakes. Also there was no established brand in this
segment of the market. National Bakers took advantage of this, and provided
standardized and quality products at an affordable price of ₹ 5.00 onwards. Its
automated production unit capable to supporting volume production enabled it
to achieve economies of scale. National Bakers single cakes were an instant hit.
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The initial strategy of National Bakers to focus more on single cakes
instead of bar cakes was a well thought out strategy. There was no branded
player in single cake segment, whereas it would have to face Britannia (who is
very popular), in case they would have focused more on bar cake.
Market & Competition:
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retail points. As such, the key challenge is to supply the shops fresh products on
a timely basis, which requires a structured and efficient distribution system. The
system needs to be reliable and responsive to the needs of the franchisees.
The production department at National Bakers produce based on the
projected sales as forecasted. This helps in attaining lower level of return from
the outlets. The production department works in three shifts a day i.e. general
shift, afternoon shift and night shift. Night shift bridges the demand supply gap
in the orders received from the outlets.
Return Management:
Packed cakes have a shelf life ranging from 15 days to 30 days. Beyond
which the product becomes stale. The perish ability factor calls for strict return
management standards. National Bakers takes several measures to ensure
freshness of stocks and lower level of returns. It discourages overstocking by
both distributors and retailers, who are often dumped with stocks. This implies
that the distributor and the retailer keep such amount of stock, which may be
sold during the course of the shelf life of the product. This reduces the risk of
return considerably as the quantity of the unsold stock becomes low. The
company replenishes stock at frequent intervals to keep the stock available at all
times at the retail points.
National Bakers’ policy of frequent replenishment has resulted in faster
stock rotation for the retailers and the distributors, which also means improved
profitability for the channel members. National Bakers ensures regular supplies
to the distributors, who in turn service the retailers through the linesmen. These
linesmen are required to make at least three visits to a shop in a week’s time.
National Bakers takes full care of the products so that the bacteria count is very
low during the course of its entire shelf life. However, if the product becomes
stale it is taken back from the retailers and destroyed. This ensures retailers are
not inclined to sell products which are outdated. These steps have resulted in
building confidence both with the customers as well as the channel members.
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Management Speaks:
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CHAPTER 4
REVIEW OF LITERATURE
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Attributes affecting consumer evaluation of retail store formats has been a
subject of wide research and has been studied from various perspectives. Some
of the related studies are:
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Ghosh, Tripathi and Kumar (2010) in their study conducted in Indian context,
attempted to address issues related to store attributes and their relevance in the
store format selection. Eleven variables (store attributes) had been identified
based on theory and judgment. Factor analysis had yielded three factors:
Convenience and Merchandise Mix, Store Atmospherics, and Services. The
factors identified and recommendations made would be of use to retailers in
designing their outlets with store attributes that would meet the expectations of
shoppers and thus motivate them towards store patronage decisions.
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empirically test the service quality dimensions. The study also carried out the
gap analysis and identified the areas for improvements in retail service quality.
Chakraborty (2010) in a study conducted in Hyderabad, India identified the
driving shopping motives of Indian consumer for Discount store formats. Factor
analysis extracted three shopping motives, two of which related to hedonic
shopping motive and one to utilitarian. The factors were named as diversion,
socialization and utilitarian. Other three dimensions of the study were store
attributes, shopping outcomes, and shopping perceived cost. Under each
dimension, factors related to Discount store were identified. The identified
factors could be the key for discount stores for understanding their shoppers.
Seock and Lin (2010) examined the cultural influences on young consumers’
loyalty tendency and evaluations of the relative importance of apparel retail
store attributes in Taiwan and the USA. A structured questionnaire was
developed to collect the data. Factor analysis was employed to identify
dimensions of apparel retail store image attributes. Multivariate analysis of
variance and hierarchical multiple regression analysis were used to examine the
hypotheses. Results of the study showed that American consumers have
significantly greater collectivistic characteristics than Taiwanese. The study also
found that country of residence is a significant and stronger indicator in
predicting loyalty tendency than individualism and collectivism dimensions.
The results of the study showed that evaluation of the relative importance of
retail store attributes is influenced by culture. Among the five apparel retail
store attribute dimensions identified in the study, Taiwanese and US
respondents’ evaluation of the importance of “convenience”, “product” and
“information communication” factors of retail store image attributes differed
significantly.
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Paswan, Pineda and Ramirez (2010) in a study conducted in Mexico
investigated whether influx of large stores is inevitable, by focusing on
consumers' motivation for selecting a retail store, and the association between
these motivation dimensions and the shopping patronage. The results indicated
that consumer's preference for small stores is positively motivated by functional
benefits and familiarity with small stores; and negatively associated with the
functional benefits offered by large stores. These motivational dimensions were
also found to be positively associated with the share of wallet spent at small
stores. It was found that gender exhibited mixed effect on preference for small
stores and the share of wallet. The study revealed that women feel that large
stores provide better functional benefits and support for the local economy.
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CHAPTER 5
RESEARCH METHODOLOGY
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Research Methodology
Research Methodology is the master plan for conducting the research
study. It should be noted that a Research Methodology is unique to a Research
Design. As the project undertaken by me primarily emphasizes on the Store
Operations of National Bakers Store, Bathinda so I took help of Descriptive
Research Studies.
Descriptive Research involves the description of the characteristics of the
variable, description of the extent of association between variables and it allows
the researcher to infer about the variables. Like in this case, the variables were
analyzing Store Operations, Products being offered, Foot-fall, Catchment Area
and the overall experience of the customers. Another reason was that I worked
on the data provided by the store i.e. it was secondary data (total footfall, total
sales, total no. of customers etc.) for a month and I knew which parameters to
work upon. Also I interviewed the customers and observed their behaviour
towards Store.
The project’s data collection was through Primary and Secondary
sources. Primary data was the one where I interviewed and observed the
customers and gave them questionnaires to fill for the purpose of Catchment
Area. Secondary data included the analysis part through the data given by the
Store. I gathered data of one month from the National Bakers Store i.e. from 1 st
of December 2017 to 21st of January 2018 as the Sample Size. It included
Product Range, Total Footfall, Total Customers, Total Sales, Average Sales per
Customers and No. of Items Sold.
For the questionnaire filling I took a sample of 100 people from the
nearby locations (Model Town Area, Phase-I, Phase-ll, Jujhar Singh Nagar
etc.). I also interviewed those who visited the store regarding the Store
Ambiance, Assortments of products and services provided.
The type of Sampling Procedure which I have chosen is Simple random
sampling which is the basic sampling technique where we select a group of
34
subjects (a sample) for study from a larger group (a population). Each
individual is chosen entirely by chance and each member of the population has
an equal chance of being included in the sample.
Since sampling units were accessible, convenient, easy to measure, co-
operative and articulate, I used Simple random sampling. I interviewed the
customers and analyzed the given data through my own convenience and
expertise.
Research Hypothesis
Null Hypothesis Ho: “Service Quality of Retail Units has impact on
Customer Satisfaction.”
Null Hypothesis Ho: “Service Quality of Retail Units has positive impact
on Customer Satisfaction.”
Research Model
Typical marketing mix of the firm was studied through case study
method. The case study was developed based on business reports and direct
informal interviews with top level managers/owners of the firms. The
interviews were primarily aimed to understand the key decision maker’s
perception of the market, which is their understanding of the target segment and
the marketing mix to cater to their target audience.
Also, the interviews attempted to understand the background and the
future challenges for the firms. Also, the existing market offerings of the firms
were studied by way of shop visits, collection of product catalogues, price lists
and promotional materials like advertisements etc. Interviews were conducted
for the vertical slice of the organization starting with the owner/manager and
moving down to the shops. The units were visited and interviews of the owner
and key executives involved in the management of the firm were conducted.
Interviews were also conducted for those responsible for managing the day to
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day operations. The shop sales personnel were also interviewed for the purpose.
The interviews were unstructured and lasted from one to three hours. Typical
questions were asked which include the following broad topics.
1. Target customer group.
2. Marketing mix
3. Understanding of the present competitive scenario and future challenges.
The responses were later augmented with data from several other sources.
Meetings involving key marketing people, shops sales force were also observed.
Insights gleaned from these observations often stimulated new lines of inquiry
for future interviews. While developing the case study insight was generated
regarding how the firm actually developed its marketing mix. This was
facilitated by interviewing a variety of stake holders and by spending time with
them on the job. At the conclusion of most of the interviews and shop visits, the
preliminary findings were shared. This added to the understanding of the
marketing mix of these firms and further refinement of the findings.
The first draft of this case study was also discussed with the key people of
the firm like the owner / managers. Throughout the research the practitioners
gave deep insight in to the way the marketing mix was developed and the
reasons for the same. The table below shows the number of people interviewed.
Table 1. Distribution of People Interviewed
Name Firm Personnel Franchisees/Shop Personnel
National Bakers 07 03
Research Plan
As my project focused majorly on the Store Operations of National
Bakers so I took help of DESCRIPTIVE RESEARCH STUDIES. Descriptive
Research involves the description of the characteristics of the variable,
description of the extent of association between variables and it allows the
36
researcher to infer about the variables. Like in this case, the variables were
analyzing Operations, Footfall, Catchment Area and Customer Feedback.
A descriptive study provides a sound basis for the solution of the
problem; even though they do not explain the relationship among the variables.
I took the base of DESCRIPTIVE RESEARCH because I worked on the
data provided by the store i.e. it was secondary data (Total Footfall, Total Sales,
Total No. of Customers etc.) for a month and I knew which parameters to work
upon. Also I interviewed the customers and observed their buying behaviour
towards Store. As Descriptive research design are used when the researcher has
a substantial data about the problem and of the variables that are to be
measured. In this case I knew which all areas need to be covered up and
analyzed thoroughly.
Sampling Plan
I took one month data from the National Bakers Store i.e. from 1st of
December 2017 to 21st of January 2018. It included Total Footfall, Total
Customers, Total Sales, Average Sales per Customers, No. of items sold and
Conversion Ratio. For the questionnaire filling I took a sample of 100 people
from the nearby locations (Model Town Area, Phase-I & Phase-ll etc.). I also
interviewed those who visited the store regarding the Store Ambiance,
Assortments of products and the Services provided.
Research Procedure
For the purpose of determining population characteristics instead of
enumerating entire population, the individual in the sample are only observed.
Then the sample characteristics are utilized to approximately to determine the
population.
Since sampling units were accessible, convenient, easy to measure, co-
operative and articulate, I chose Simple Random Sampling. Simple Random
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Sampling is the basic sampling technique where we select a group of subjects (a
sample) for study from a larger group (a population). Each individual is chosen
entirely by chance and each member of the population has an equal chance of
being included in the sample. I interviewed the customers and analyzed the
given data through my own convenience and expertise.
Time of Collection
Time of collection of my research study was 6 weeks of analysis of the
National Bakers Operations, Catchment area, Footfall and average Ticket Size
of the Customers. In one month time, I was able to understand the trend of the
Store and also how various store related activities like dumping, indenting,
markdown, assortments of the products were done.
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Database:
This database of National Bakers Store, Bathinda provides 31 days data
of the following:
Total Footfall
Total Customers
Various Age Groups of Footfall
Total Sales
No. of Items Sold
Footfall to Customer Ratio
Avg. Ticket Size of the Sale
Item Sold per Customer
According to these data I was able to analyse that what type of trend does
this retail store follows. Through the Footfall and the No. of Customers,
Conversion ratio was calculated.
In my project, I have undertaken Descriptive Analysis and for the
analysis of catchment area I took the help of Questionnaire and customer
database from the Store.
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CHAPTER 6
40
Questions
Q1. Income level:
22
13
10
41
Q2. How often you purchase from National Bakers Store?
12
12
11
More than 8 time a month 6-8 times a month 3-5 times a month
42
Q3. What segment of product do you buy/prefer buying from National Bakers
Stores?
Baked Products 11
Fast Food Products 8
Cake & Pastries 18
Snacks & Packed Products 13
13 11
18
43
Q4. And which of those segments you think is the best in your perspective?
Baked Products 11
Fast Food Products 8
Cake & Pastries 18
Snacks & Packed Products 13
13 11
18
44
Q5. While Shopping at National Bakers how frequently do the customer service
associates interact with you?
Frequently 9
Rarely 21
Never 12
On requirement 8
8 9
Frequently
12 Rarely
Never
21 On requirement
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Q6. As compared to other stores, what do you think of the pricing of the
products of National Bakers?
Very Low 12
Low 9
Almost Same 11
High 12
Very High 7
12
Very Low
Low
Almost Same
12
High
Very High
11
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Q7. In your experience, how long is the time taken for the billing?
<2 minutes 5
2 – 5 minutes 13
6 – 10 minutes 10
>10 minutes 22
22
13 <2 minutes
2 – 5 minutes
6 – 10 minutes
>10 minutes
10
47
Q8. Which in your opinion needs improvement?
a. Availability of Products and Services (1)
b. Freshness of Products (3)
c. Environment of the Store (2)
d. Packaging of Products and services (2)
e. Range of products available (3)
f. The layout of the store. (3)
g. Quality of the products available (2)
h. Discount and Incentives on the products (4)
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Q 9. On the scale of 1-5, please indicate your satisfaction with various aspects
of National Bakers.
1. Very much Satisfied.
2. Satisfied.
3. Neither Satisfied nor Dissatisfied.
4. Dissatisfied.
5. Very much Dissatisfied.
a. Quality of Service 2
b. Attraction of Promotions 3
c. Visibility of promotions 2
d. Information regarding promotions 4
e. In-Store shopping environment 2
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Q 10. Would you recommend National Bakers Store to your near ones?
Yes 18
No 13
Not Sure 19
18
19
13
50
Q 11. What perception do you hold about National Bakers store, Bathinda?
Is the best 15
Among the good ones 19
Not up to the mark 9
Not at all good 7
7
15
19
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DESCRIPTIVE ANALYSIS
Total Customers:
Mean: In this case on an average there are 1,497 customers visiting the stores
of National Bakers in Bathinda on a daily basis.
Median: After sorting the data range, there are about 1482 no. of customers
who in a month visit very frequently.
Mode here is not applicable.
Total Sales
Mean: It signifies that on an average there is a sales of Rs. 1,81,547 per day.
Median: It means Best average of sales per day can be judged as Rs. 1,74,112.
Mode here is not applicable.
Sales per customers (Avg. Ticket Size)
Mean: Sales per customers is Rs. 122 on an average.
Median: Approx means best avg taken is Rs. 117.48 per customer.
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CHAPTER 7
53
Percentage (%) of customers: The percentage of catchment area can be seen
as following:
Table 3. Percentage of Catchment Area
Store Location Customer %
Dhobhi Bazar 24%
100 Feat Road 20%
Model Town Phase- 1 20%
Amrik Singh Road 19%
Mansa Road 17%
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CHAPTER 8
55
FINDINGS AND RECOMMENDATIONS:
These 6 weeks of my study and research was a good learning experience
for me. I was exposed to the practical aspects of Marketing and Retailing. While
carrying out this project work at Bathinda, I got the opportunity to gain a
substantial knowledge about the Retail market Scenario. After completing this
project, there were certain suggestions and recommendations in my mind which
would help in the promotion of the product in a better way and increase revenue
of the stores. They are:
In minds of consumers, “National Bakers” has two basic features:-
(i) The products are fresh.
(ii) The price is lower when compared with the local markets and other
competitors.
Company is not doing much of promotional activity. Product and brand
awareness is a bit low among the masses. The promotional advertisements
are done by banners & pamphlets only while it’s major competitor Fresh
Bake, Baker’s Street are promoting their brand using print, media and social
networking.
Advertisements should be given on the high circulation newspapers of the
region. Come with more promotional offers on weekends and holidays.
Come with more promotional offers in packed food categories like Dry Fruit
Biscuits, Milk Rusks and Cup Cakes which are one of the most selling goods
in store.
Promote the areas where National Bakers stores have an upper hand like
correct weight and measures, values packs of goods, quality service and
ambience.
A proper advertisement campaign should be run in Social Networking sites
like Facebook, Pinterest and Instagram.
56
Rightsizing is desired in certain stores. A large area is occupied by dine-in
which is used to eat Patties which have limited sales.
National Baker’s should focus on making its products more personalised.
Customers need to be engaged by getting their feedback & Suggestions.
Services of National Bakers need to be modernised. They should have Order
No. display units for the customers who wait for their orders to get ready.
There is supply shortage of some Bakery Products like Paav which needed to
be addressed. As the Bathinda city has a lot more Non-Punjabis now living
in the posh areas like Model Town. They have different tastes and they like
to have taste of their local food like Paav Bhaaji, Vada Paav and Missal
Paav.
Sometimes queues discourage people to shop in National Bakers store
especially the customers who purchase smaller quantities of goods like a
packet of Bread of just Rs. 10 Bread. They should reserve at least one bill
counter for small quantity purchases in rush hours i.e. between 6PM – 8PM.
National Bakers stores should standardize appearance of all of their stores in
a common theme (i.e. Colour combination, Store Furniture etc.) to make it
more trendy. They should also keep on renovating it after certain time.
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CHAPTER 9
LIMITATIONS
58
LIMITATIONS OF THE RESEARCH
The major limitations which I faced during my project were:
● A particular store’s trend cannot be generalized over the entire stores.
● Authenticity of the response of the customer cannot be ascertained.
● Most of the consumer prefers to go for local market.
● There was limited consumer base.
● Advertising strategy is not good in Bathinda.
● People are at times hesitant to respond to surveys.
● Research based on stores in Bathinda city.
● Lack of expertise.
● Finally the time constraint.
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CHAPTER 10
CONCLUSION
60
CONCLUSION:
Finally analyzing the daily operations of National Bakers, factors
responsible for increasing sales and the no. of customers in stores through
various data analysis like correlation and regression analysis, I came to a
conclusion that National Bakers should give emphasis on the measures taken to
revamp its product catalogue to increase Footfall and eventually its revenue.
National Bakers does not provide variety (Regional Indian dishes based
on Baked Items & Cakes of Global flavours) preferred by young generation in
its products whereas its competitors does. So, the company should focus on the
tools present to analysis its customer and various other factors.
Also the National Bakers group has a major focus on achieving customer
needs and their satisfaction level and not to those who made it possible. There
are multitudinous programs and events being organised to attract a large amount
of crowd from the respective locations. But the industry should also keep in
mind the integrated efforts made by the team i.e. the CSA’s, Store Supervisors,
Store Manager and the people involved in store activities to enhance customers
attraction and finally maximization of revenue. Because, ultimately it is the
sales which drive the business and the sales personnel is someone upon whom
the future of the organization depends.
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BIBLIOGRAPHY
62
IBLIOGRAPHY
1. Gupta, S.P & Gupta, M.P, (2007), Measures of Central Tendency,
Business Statistics, 14th Edition, pp 82-99.
2. Sharma, J.K., (2008), Analysis of Variance, Business Statistics, 2nd
edition, pp 421 – 446.
3. Sharma, J.K., (2008), Correlation analysis, Business Statistics, 2nd
edition, pp 447- 480.
4. Sharma, J.K., (2008), Regression analysis, Business Statistics, 2nd
edition,pp 481- 512.
5. Sharma, J.K., (2008), Hypothesis testing, Business Statistics, 2nd edition,
pp 327-380.
6. Hawkins, Dell & Tull, Donald S, (2004), Marketing Research in Practice,
Marketing Research
7. Measurement and Method, 6th Edition, pp 1-4.
8. Company Source
www.pammisnationalbakers.com
www.wikipedia.com
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QUESTIONNAIRE:
Customer Information:
1) NAME: _______________________
2) AGE: __________
3) SEX: ____________
4) ADDRESS___________________________________________________
5) Approx. Distance from National Bakers Store: ______________________
Questions:
Q1. Income level:
a. 5,000 per month
b. 5,000 – 10,000 per month
c. 10,000-20,000 per month
d. >20,000 per month
Q3. What segment of product do you buy/prefer buying from National Bakers
Stores?
a. Baked Products ( )
b. Fast Food Products ( )
c. Cake & Pastries ( )
d. Snacks & Packed Products ( )
Q4. And which of those segments you think is the best in your perspective?
a. Baked Products ( )
b. Fast Food Products ( )
c. Cake & Pastries ( )
d. Snacks & Packed Products ( )
64
Q5. While Shopping at National Bakers how frequently do the customer service
associates interact with you?
a. Frequently.
b. Rarely.
c. Never.
d. On requirement.
Q6. As compared to other stores, what do you think of the pricing of the
products of National Bakers?
a. Very low.
b. Low
c. Almost Same.
d. High.
e. Very high.
Q7. In your experience, how long is the time taken for the billing?
a. <2 minutes
b. 2 – 5 minutes
c. 6 – 10 minutes
d. >10 minutes
Q 9. On the scale of 1-5, please indicate your satisfaction with various aspects
of National Bakers.
Very much Satisfied.
Satisfied.
Neither Satisfied nor Dissatisfied.
Dissatisfied.
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Very much Dissatisfied.
Q 10. Would you recommend National Bakers Store to your near ones?
a. Yes
b. No
c. Not sure
Q 11. What perception do you hold about National Bakers store, Bathinda?
a. Is the best.
b. Among the good ones.
c. Not up to the mark.
d. Not at all good.
66