A PROJECT REPORT ON

Promotional Activity On Retail Sector

In the Partial Fulfillment For the Degree of MBA:-2010-2012

Submitted to :Mahamaya Technical University, Noida

Under the Supervision of
Mr. Shashank Chaudhary (Faculty of MBA)

Submitted By :Ajeet Tiwari

MBA 4th Semester Roll No. 1011470004

A-13/1, South Side, G.T. Road, NH-24, Ghaziabad 201010

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PREFACE

Theoretical studies provide general information about the managerial aspects, but practical observations provide information about the activities taking place in an organization. Practical and direct observation is a dynamic approach in learning the functions of an organization, which provides first-hand information through various means such as discussions with mangers, executives, workmen, etc. Apart from such discussions, I gathered information through journals, magazines, handbook, website, etc. Practical observation is an important part of Personnel Development.

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ACKNOWLEDGEMENT

A work is never a work of an individual. I owe a sense of gratitude to the intelligence and co-operation of those people who had been so easy to let me understand what I needed from time to time for completion of this exclusive project. I am greatly indebted to my faculty & internal guide Mr. Shashank Chaudhary who always endured me and stood by me and without whom I could not have completed the project.

Ajeet Tiwari

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DECLARATION

I, the undersigned, hereby declare that this project report submitted by me under the guidance of Mr. Shashank Chaudhary (faculty of MBA) for the partial fulfillment of Master degree in Business Administration from Institute of Professional Excellence And Management, Mahamaya Technical University Noida is exclusively prepared and conceptualized by me and the empirical findings in this project report are based in the data collected by me, and I have not copied from any research report or project report submitted by anyone, anywhere earlier.

Date : Place :

Signature of student ( Ajeet Tiwari )

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TABLE OF CONTENT

Page No.

Title PageI Preface ..... Acknowledgement.. . Declaration... Introduction . Objectives of study. Scope of the study. Research Methodology.. Data Analysis .. Findings.. Suggestions Limitations. Conclusion Bibliography.. Questionnaire

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INTRODUCTION

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Introduction
Retail comes from the Old French word tailor (compare modern French retailer), which means "to cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring").[2] Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel, respectively) also refers to the sale of small quantities of items Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964. In India, clothing retail accounts for 36% of organized retail business. It is the largest sector. Ready-made apparel accounted for an estimated 20% of domestic clothing sales in 20051. With growing working women wearing western wear to work, and pressed for time, market for good readymade clothes is likely to grow. India is a film-crazy nation, and the largest producer of films, with more than 1,000 every year. They provide entertainment and an escape from reality for Indias masses, and set the popular fashion trend. Bollywood fashions have become pan Indian. They affect various sectors of the market including clothing, footwear, weddings and fashion accessories. With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before. They spend mornings browsing in stores looking for deals or latest styles. Upper income urban women are adopting ethnic chic. These are designer clothes that incorporate Indian motifs, ethnic fabrics and are a fusion of western and Indian styles. In the large urban centers, apparel retailers, like Shoppers Stop, Westside and Pantaloons have popularized their private labels, which have attracted urban shoppers. Westside carries only its own private labels, while for the other stores,
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20-30% of their apparel turnover is from private labels. Customers have loyalty to a store rather than any particular garment brand. This has led to a thriving unbranded or local brand market for ready-to-wear clothes leading to severe competition. Hence organized retailers like Lifestyle, for instance, has a loyalty programme called `The Inner Circle', while Pantaloons offers a `Green Card' Rewards programmes, Westside has `Club West' to woo the customers. Customers look to design and fit of the clothes, and use the shops name as a quality standard.

According to a report by Datamonitor (2006)2, global apparel, accessories & luxuries market is likely to grow by 4.5% annually and Asia Pacific region is anticipated to acquire leadership position by 2011. Apparel sector in India poses a lot of challenges to a marketer. So far Indias share in world apparel trade has been insignificant(less than 3%). World garment trade is estimated at around 195 Billion US$ annually. The Biggest manufacturer & supplier is China producing over 50 billion $, followed by Mexico which produces over 8 billion and followed by many countries like India, Sri Lanka and Bangladesh, being the third place countries making and exporting garments worth 5 - 6 billion $ annually.

Characteristics of Apparel retail sector

As apparel retail is led by fashion, a player needs to keep a close watch on fashion amongst teenagers as they are the trend setters. Role of Bollywood in spreading fashion needs to be understood. Seasonal variations on stocking pattern and need to clear inventory at the end of season should be understood by apparel retailer. Typically once an item is sold from the outlet, retailer ensures that there is no repetition of same. It gets replaced by different design, style, colour. Importance of store layout, dcor is very critical. A browser visiting the store frequently likes to see changes in the layout otherwise he may carry the impression that stocks are not moving out of the store. Category management becomes very crucial function as transformation of design into production and delivery has to be completed before fashion or fad changes in the market.

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This highlights the importance of sales promotions- short term activities which induces trade or consumer to buy now rather than in future as the value of apparel after the season, goes down substantially and inventory carrying burden turns out to be very high. Apparel retailer needs to understand critical role of sales promotions. Attractive promotions induces purchase acceleration, stock piling and brand switching on the part of a consumer which substantially reduces retailers financial and inventory risk and consumers financial risk and psychological risk. This paper compares various sales promotion activities followed by apparel retail stores in organized sector. Both exclusive and multibrand retailers in apparel retail sector are studied. On the basis of practices, it poses few challenges which managers in the sector encounters

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Literature review:
Several studies on apparel retail sector and usage of promotions are reported in the context of developed markets. A brief overview is presented below: Deeter-Schmelz, Dawn R.; Moore, Jesse N.; Goebel, Daniel J, (2000) examined Prestige clothing shopping by consumers by a confirmatory assessment and refinement of the PRECONscale. Aspects studied include background on the symbolic aspects of consumption; prestige shopping behavior; reassessment and refinement of the PRECON scale and impact of income and age on prestige shopping. The paper concludes with managerial implications for the United States apparel retailers dealing in prestige clothing. Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied Buyerseller relationships for promotional support in the apparel sector which is critical for success. The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers, to identify the retailer's perceptions of the offering frequency and importance of the promotional support, and to investigate the relationship between offering frequency and perceptions of importance. Results indicated that monetary support was regarded as the most important promotional support.. A positive and significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Using longitudinal data from a convenience store franchise, the study found out that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior. In contrast, consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm. For light buyers, the loyalty program broadened their relationship with the firm into other business areas. Thus there is a need to consider patronage to decide rewards for loyalty programmes.

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In the context of French market, Meyer-Waarden, Lars; Benavent, Christophe. (2006) studied the Impact of Loyalty Programmes on Repeat Purchase Behaviour based on the Behavior Scan single-source panel which has been compared with the store data base . The double jeopardy phenomenon was present and loyalty programmes did not substantially change market structures. When all companies had loyalty programs, the market was characterized by an absence of change of the competitive situation. Hyllegard, Karen; Eckman, Molly; Descals, Alejandro Molla; Borja, Miguel Angel Gomez (2005), studied Spanish consumers' perceptions of US apparel speciality retailers' products and services. The study emphasized that speciality retailers' success in international markets is contingent upon their knowledge of culturallydefined values, norms and behaviour that influence consumer decision making and impact acceptance of products and services. The study examined consumers' store patronage and apparel purchase behaviour, acceptance of US apparel brands, perceptions of retailers' products and services, and perceptions of the impact of foreign retailers on local communities. It found out that the perceptions differed regarding quality, fashionability, product assortment, extent and quality of customer service, convenience of location, payment options, national brands and store layout. Consumers' acceptance of US apparel brands was a function of age, household income, apparel product country of manufacture and price.

Rationale for sales promotion activities

Usage of sales promotion activities has a direct impact on behaviour as it motivates a consumer to buy now rather than in future, enhances value of an offer temporarily till the promotion period, encourages switching, reinforce or reward loyalty etc. Broadly, objectives set for these activities are; i)to generate store traffic, ii) to move excess inventory, iii)to enhance store image and iv)to create a price image( high or low). Traffic building is achieved by special event promotions like Diwali, Rakshabandhan promotions; inventory reduction
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through end of season sale; creation and building store image through feature advertising and displays and joint promotions and price image by highlighting the discounts. It helps consumer reduce not only financial risk but also psychological and social risk by making consumer confident of his/her purchase, conformation to group norms by shopping at famous stores/brands and possibility of acquiring well known branded apparel during promotions. Promotions may induce non buyers to walk in to the store and loyalty programmes may encourage to buy more, more often or upgrade to better quality. Exciting promotions also have tendency to generate positive word of mouth and help consumer feel a smart shopper. Thus not only utilitarian benefits like, saving of money, time or quality upgradation but hedonic benefits like feeling confident, feeling of excitement and entertainment etc.

Sales Promotion at different Level and different programme

One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don't know which half." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 3050% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found. How do companies decide on their promotion budget? There are mainly four methods of this : Affordable Method : Many companies set the promotion budget at what they think the company can afford. One executive explained this method as follows : "Why, its simple. First I go upstairs to the controller and how much they can afford to give us this year. He says a million and half. Later, the boss comes to me and asks how much we should spend and I say Oh about a million and half."
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It is a method which is uncertain one and makes long term planning difficult. Percentage of Sales Method : Many companies set their promotion expenditures at a specified percentage of sales. Accordingly the sales is set on the basis of sales. In this a specified sales percentage is decided for the promotional budget Advantages of this method : First, its use means that promotional budget vary with what a company can afford. Second, it encourages the management to think in terms of the relationship among promotion costs, selling price, and profit per unit, Third, it encourages the competitive stability to the extent that competing firms spend approximately the same % of their sales on promotion. Inspite of the advantages, the % sales method has little to justify it. Its reasoning is circular : It views sales as the determiner of the promotion rather than as a result. It leads to budget setting by availability of funds rather than by marketing opportunities. Competitive Parity Method : Some companies set their promotional budget to achieve share-of-voice parity with other competitors. Two arguments are made in support of competitive parity method. One is that the competitors expenditure represents the collective wisdom of the industry. The other is that maintaining a competitive parity helps prevent promotional wars. Neither argument is valid. There are no grounds for believing that competition knows better what should be spent on promotion. Objective and Task Method : The objective & task method calls upon marketers to develop their promotion budgets by defining their specific objectives, determining the task that must be
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performed to achieve these objectives, and estimating the cost of performing these tasks. Deciding on the promotion mix : Companies face the task of distributing the total promotion budget over the five promotional tools : Advertising Sales Promotion Public Relations and Publicity Sales Force Direct Marketing. Whatever method a company adopts for promoting its product it must be from above mentioned method.

Sales Promotion

Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available.

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Meaning of Promotion
The term promotion is the term and includes mainly three type of sales activity: 1. Mass impersonal selling methods (Advertising). 2. Face to face personal selling (Salesman ship). 3. Activities other than personal selling and advertising such as point of purchase display (P.O.P.) show and exhibitions, demonstrations and other non-securing selling efforts. This form of activity is called Sales Promotion.

Promotion and Sales Promotion

Similarly the terms sales promotion cannot be taken to mean what is commonly does. Sales promotion, is only a part of the promotion. Basically promotion is an "exercise" in information persecution and influence. Promotion has come to mean the overall co-ordination of advertising selling, publicity and public relations. Promotion is a helping function designed to make all other marketing activities more effective and efficient. But sales promotion as such helps only the selling activity still, there exit same difference of opinion on the real connection of the term sales promotion.

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Acc. to A.H.R. Delons :"Sales promotion means any step that are taken for the purpose of obtaining or increasing sales".

Acc. to W.Q. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. to him the field of sales promotion as a marketing activity is still vaguely defined and organized.

Sales Promotion and Advertising

There is no universally accepted distribution between these two terms. To same advertising includes all forms of mass media communication directed towards influencing the end consumer. Sales promotion on the other hand, includes the form of mass communication directed towards information and influencing the channel of distribution (e.g. distributors, retailers etc.). Hence a price of product literature distributed by retailers in sales promotion. These sales promotion merges on one side in to advertising and on the other in to personal salesman ship. It is concerned with the dissemination of information to whole sellers, retailers, customers (both actual and potential, and to the salesman).

Sales promotion is concerned with the creation. Application and dissemination of material and techniques that supplement advertising and personal selling. Sales promotion makes use of direct mail, catalogues, trade shows, sales contests, premiums, samples, windows displays and other aids. Its purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand to make consumers more eager to buy that brand. Personal selling and advertising do include prospects to make these decisions. Sale promotion provides an extra stimulus.

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Objective of Sales Promotion 1. To increase sales directly by publicity through media which are complementary to press and poster advertising. 2. To disseminate information through sales man dealers etc. So as to insure the product getting in to satisfactory use by the ultimate consumer. 3. To attract new consumer. 4. To face the competition effectively. 5. To help salesman in selling more to the retailers and consumers. 6. To check seasonal decline in sales. Generally speaking sales promotion involves rendering the following services:(a) Services to dealers. (b) Services to own salesman. (c) Special publicity.

Sales Promotional at different levels

1. Sales promotion at Dealers Level:It may include various schemes some of which are discussed here. (i) Advertising Materials:17 | P a g e

The advertising material prepared by the company such as store signs, banners, shelf signs, board etc. are distributed to sub dealer for display purposes this is in fact a method of advertising. (ii) Store Demonstration:In the promises of the whole seller or the retailer the products sales personnel will conduct special demonstration for the companies product. A personal demonstration is good to introduce a new product at its peculiar advantage can be high lightened and the consumers doubt clear. It can be used to restimulate an old product. A good demonstration with a great dealer of action will draw heavy crowds in to the store and will attract attention to the product. (iii) Special Display and Shows :These are in seasonal in character but could be arranged in an elaborate manner and for all the products of an company. Usually these are arranged along with trade fair and exhibition. Besides effecting sales these shows impress the companys name generally on the public. Sales promotion at consumers level The various schemes of sale promotion at Consumers Level may include. 1. Coupons (A Chit of Stated Value):These are given directly to the consumer these coupons are in most cases kept inside the package. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. The retailer receives reimbursement for the value of the coupon form the manufacturer. Coupons act as a short run stimulus to the sale of the product, since they are directly tied with the purchase of the item. They encourage the retailer to stock the product. What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. But it is not easy to measure the effectiveness of a coupon offer. One over knows how many customer would have bought the product without the incentive. It is also difficult to find out how many customers were held after the coupon offer expired.

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2. Price-off-offer (Also known as bargain offer price packs):This offer is intended to stimulate the sales during a slump season. In this method the customer is offered a reduction from the printed price list. It is also used when a substitute for competing product enters the market. Many experts on sales promotion fed that Off Schemes are among the weaker and less desirable methods of promotion. These can be trade resentment particularly when the retailer raises the price to retain his margin. Secondly that is not conductive to building up brand loyalty. Consumers may simply shift to the products that offer this scheme. 3. Samples:In the hope of converting a prospect into a customer a sample (Some quantity of the product) may be given. This helps the consumer to verify the real quality of the product. Various pair manufacturing companies offer this method. For developing brand loyalty this method is quite useful. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand. Disadvantage of Sampler:Offering sample in quit expensive. There is the cost of producing samples. The distribution costs are also high. Sample has to be mailed to potential customers or to be distributed through retail shops. There are also problems when the real product does not resemble the sample supplied.

4. Money Refund Offer:An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchasers money if he is not completely satisfied with the product.

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5. Trading Stamps:A premium in the form of stamps is given by the sellers to consumers while selling goods. The number and value of stamp that the buyer receives depends on the values of the purchase. These stamps are redeemable through premium catalogues at the stamp redemption centers. 6. Buy-Back Allowance: This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. It extends the life of a trade deal and helps to prevent part deal sales decline. It greatly strengthens the buyers motivation to co-operate on the first deal.

7. Premium :There are various forms of premiums provided by the manufacturer as sales promotional devices:(a) Coupons are supplied for effecting price reductions. (b) Factory in pack premium these are popular in the case of Body food and Tin food items, Spoons, Cups, Measuring, Glass etc. and such other items are packed with the product in the box itself. Factory in pack premium are particularly goods for product meant for children. The Binaca Toothpaste packs contain animal shape toys. These are very attractive and qutie popular among the children. (c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the buyers pays for it he has to pay only a considerably low price for the premium. This is possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low.

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Other Steps by Manufacturer for Promoting Sales

Dealers can be helps in different ways :1. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to his production and prices while the dealer may familiarize him in return with the information bearing on charges in the consumer's demand, their like and dislike complaints and criticism, substitutes etc. 2. Inviting to Sales Conference and Convention :The gestures of regard and respect pave the way for better relation and cooperation. 3. Offering Reasonable Terms of Sale :Of all the forms of encouragement, the monetary incentive evokes immediate response. Hence every producer must offer the most responsible terms of sale such as longer periods of credit and higher rates of descants. 4. Supplying suitable packages and useful things. 5. By taking the return back. 6. By furnishing them with sales literature and display materials.

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Types of promotional activity regarding the product

a)

Product Advertising:

The main purpose of such advertising is to inform and stimulate the market about the advertisers products of services and to sell these. Thus type of advertising usually promotes specific, trended products in such a manner as to make the brands seam more desirable. It is used by business government organization and private non-business organizations to promote the uses features, images and benefits of their services and products. Product advertising is subdivided into direct action and indirect action advertising, Direct action product advertising wages the buyer to take action at once, ice he seeks a quick response to the advertisement which may be to order the product by mail, or mailing a coupon, or he may promptly purchase in a retail store in response to prince reduction during clearance sale. Product advertising is sub-divided into direct & indirect action advertising & product advertising aims at informing persons about what a products is what it does, how it is used and where it can be purchased. On the other hand selective advertising is made to meet the selective demand for a particular brand or type is product. b) Institutional Advertising:

It is designed to create a proper attitude towards the sellers to build company image or goodwill rather than to sell specific product or service. Its purpose is to create a frame of mind and to implant feeling favorable to the advertisers company. Its assignment is to make friends for the institution or organization. It is sub-divided into three categories: patronage, public, relations and public service institutional advertising. i) In patronage institutional advertising the manufacturer tells his prospects and customer about himself his policies and lives personnel. The appeals to the patronage motivation of buyers. If successful, he convince buyers that his operation entitles him to the money spent by them.

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ii) iii) c)

Public relations institutional advertising is used to create a favourable image of the firm among employees, stock-holders or the general public. Public service institutional advertising wages public support. Other Types: The other types are as follows: i) ii) iii) Consumer advertising Comparative advertising Reminder advertising

WHY & WHEN WE DO PROMOTION

Advertising as a tool to marketing not only reaches those who buy , but also those whose opinions or authority is counted for example a manufacturer of marble tiles and building boards advertises not only to people who intend to build houses but also to architect and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as well as to the general public. At time it is necessary for a manufacturer or a concern to advertise things which it does not sell but which when sold stimulates the sales of its own product. There are concerns like electric heaters, iron etc. because the use of these increases the demand for their products. Advertising should be used only when it promises to bring good result more economically and efficiently as compared to other means of selling. There are goods for which much time and efforts are required in creating a demand by sending salesman to prospective buyers than by simply advertising them. In the early days of the cash register in America it was sold by specially trained salesman who called on the prospective users and had the difficult task of convincing them that they could no longer carry on with the old methods, and that they urgently needed a cash register. In our country certain publishers have found it less costly to
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sell their books by sending salesman from house to house among prospective buyers than to advertise them. In these two examples the cost of creating demand would be too high if attempted by advertising alone under such circumstances advertising is used to make the salesman acceptable to the people they call upon to increase the confidence of the public in the house. Naturals when there are good profits competitors will be attracted and they should be kicked out as and when sufficient capital is available by advertising on a large scale. Immediate result may not justify the increased expenditure but it will no doubt secure future sales.

DESIGNING PROMOTIONAL CAMPAIGN

Advertising is an organized series of advertising messages. It has been defined as "a planned, co-ordinate series of promotional efforts built around a central theme and designed to reach specified goals." In other words, it is an orderly planned effort consisting of related but self contained and independent advertisements. The campaign may appear in one more media. it has single theme or keynote idea and a single objective or goal. Thus, "a unified theme of content provides psychological continuity throughout the campaign while visual and oral similarity provide physical continuity. In short run, all campaign want pre-determined psychological reaction in the long run, practically all campaigns have sales goal.

The series of advertisements used in the campaign must be integrated with the sales promotional efforts and with the activities of the sales force.

Campaign varies in length some may run only for a few days, other for weeks, yet other for a season or the entire year. Usually a range of 3 to 6 months includes many campaigns. Many factors influences campaign length such as competitors advertising media, policies, seasonal falls curves of the product involved, the size
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of the advertising funds, campaign objectives and the nature of the advertisers marketing program.

OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at achieving these objectives : i) ii) iii) iv) v) vi) vii) To announce a new product or improve product. To hold consumers patronage against intensified campaign use. To inform consumers about a new product use. To teach consumers how to use product. To promote a contest or a premium offer. To establish a new trade regional, and To help solve a coca regional problem.

The institutional advertising campaign on the other hand, have these objectives. i) ii) iii) iv) To create a corporate personality or image. To build a company prestige. To keep the company name before the public. To emphasize company services and facilities.

STAGE IN ADVERTISING CAMPAIGN

Several steps are required to developed an advertising campaign the number of stages and exact order in which they are carried out may vary according to an organisations resources, the nature of its product and the types of audiences to be reached. The major stages/step are :
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1. 2. 3. 4. 5. 6. 7. 8.

Identifying and analyzing the advertising. Defining advertising objects. Creating the advertising platform. Determining the advertising appropriation. Selection media plan. Creating the advertising message. Evaluating the effectiveness of advertising. Organizing of advertising campaign.

1.

Identifying & Analyzing the Advertising target :

Under this step it is to decided as to whom is the firm trying to reach with the message. The advertising target is the group of people towards which advertisements are aimed at four this purpose complete information about the market target i.e. the location and geographical location of the people, the distribution of age, income, sex, educational level, and consumers attitudes regarding purchase and use both of the advertising product and competing products is needed with better knowledge of market target, effective advertising campaign can be developed on the other hand, if the advertising target is not properly identified and analyzed the campaign is does likely to be effective.

2.

Determining the advertising objectives :

The objectives of advertisement must be specifically and clearly defined in measurable terms such as "to communicate specific qualities about a particulars product to gain a certain degree of penetration in a definite audience of a given size
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during a given period of time", increase sales by a certain percentage or increase the firms market shares." The goals of advertising may be to : i) ii) Create a favourable company image by acquainting the public with the services offered available to the employees and its achievements. Create consumers or distributor awareness by encouraging requests providing information about the types of products sold; providing information about the benefits to be gained from use of the company's products or services; and indicating how product (or services) can be used; Encourage immediate sales by encouraging potential purchasers through special sales contests, getting recommendation of professional people about company's products etc. It secures action by the reader through associating ideas, repetition of the same name in different contexts, immediate action appeal.

iii)

iv)

3.

Creating the Advertising platform :

An advertising platform consists of the basic issues or selling points that an advertiser wishes to include in the advertising campaign. A single advertisement in an advertising campaign may contain one or more issues in the platform. A motorcycle producers advertising platform should contain issues which are of importance to consumers filling and such issues also be those which the competitive product do not posses.

4.

Determining the Advertising Appropriation:

The advertising appropriation is the total amount of money which marketer allocates. For advertising for a specific time period. Determining the campaign budget involves estimating now much it will cost to achieve the campaigns objectives. If the campaign objectives are profit relating and stated quantitatively, then the amount of the campaign budget is determined by estimating the proposed
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campaigns effectiveness in attaining them. If campaigns object is to build a particular type of company image, then there is little basis for predicting either the campaigns effectiveness or determining the budget required.

5.

Selecting the Media :

Media selection is an important since it costs time space and money various factors influence this selection, the most fundamental being the nature of the target market segment, the type of the product and the cost involved. The distinctive characteristics of various media are also important. Therefore management should focus its attention on media compatibility with advertising objectives. 1. i) Media Press Advertising or Print Newspapers Form

City, Small town, Sundays, Daily, weekly, Fortnightly, quarterlies, financial and annuals, English, vernacular or regional languages. ii) Magazines General or special, illustrated or otherwise, English, Hindi, Regional language. iii) Trade & Technical Journals, IndustrialCirculated all over the country year books, commercial, directories,and among the industrialist and telephone, Directories, referencesbusiness magnates. books & annuals. 2. Direct Mail Circulars, catalogues, leaflets, brochures, booklets, folders, colanders, blotters, diaries & other printed material. 3. Outdoor or Traffic Poster and bills on walls, railways stations platforms outside public buildings trains, buses.
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4. 5.

Broadcast or radio and T.V. Publicity

6. 7. 8.

House to house Dealer aids Internet

Spot, Sectional or national trade cost Movie Slides and films non theatrical and documentary films metal plates and signs attaches to trees. Sampling , couponing, free gifts, novelties, demonstrations. Counter and widows display demonstration given by retailer or the advertises goods. Today, Internet is a big spot for advertising.

So these are the media of the advertising campaign of the selecting of the media.

6.Creating the Advertising Messages : This is an important stage of advertising campaign. The contents of the message has to be very carefully drafted in the advertisement. Characteristics of person in the advertising target influence the message content and form. An advertisers must use words, symbols and illustration that are meaningful, familiar and attractive to those persons. The type of media also influence the content and form of the message. 7. Evaluating the Effectiveness of Advertising : The effectiveness of advertising is measured for a variety of reasons :

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a) b) c)

To determine whether a campaign accomplished its advertising objects. To evaluate the relative effectiveness of several advertisements to ascertain which copy, illustrations or layout is best. To determine the strengths and weaknesses of various media and media plans.

In other words, measuring advertising effectiveness is needed to determine whether proposed advertisement should be used and if they will be now they might be improved; and whether going campaign should be stopped, continued or changed. In accomplishing these purposes, pretests and post test are conducted. The former tests before exposing target consumers to advertisements and the letter after consumers have been exposed to advertisements and the letter after consumers have been exposed to advertisements.

Executive Summary
The Indian retail industry is now beginning to evolve in the line with the transformation that has swept other large economies. It witnesses tremendous growth with the changing demographics and an improvement in the quality of life of urban people. The growing affluence of Indias consuming class, the emergence of the new breed of entrepreneurs and a flood of imported products in the food and grocery space, has driven the current retail boom in the domestic market.

The concept retail which includes the shopkeeper to customer interaction has taken many forms and dimensions, from the treditional retail outlet and local market shops to upscale multi brand outlet s, espically stores of departmental stores. Though at this moment, it is still premature to say that the Indian retail market will replicate the success story of name s such as Wal- Mart stores. Hecce, focusing on two aspects of retail marketing i.e. Store retailingand non store retailing ,store retailng as the departmental store, which is a store or multi brand outlet,offering an array of products in various categories under one roof, trying to
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cater to not one or two but many segments of society and non store retailing as direct selling, direct marketing, automatic vending Therefore the concept of retail marketing through departmental stores, which is coming up in a big way in india as decided to be studied in detail, through an exploratory and conclusive research . The objective being to assess the various parameters that influences a buyer to visit or shop at departmental stores there by contributing to its turnover (in terms of sales and profits)hence leading to its overall success. The extensive research brought me to conclude that departmental stores are soon emerging on the top priority lists, amongst the shoping spree in Delhi as they seem to drive immence pleasure of convenience and exposure to variety under one roof in their extremely busy lives, when they dont have time for things. Through some of the customers perceive departmental stores to be expensive and only high income category cup of tea, the stores make constant effortto include them to at least visit the store at once during the sales period on discount offer. Most of these stores believe in creating not just a marketing activity with its customers,but rather favor relationship building with him so as to convert first time customers into client. Hence this document entails me though these aspects in great detail helping me to understand the concept of retail marketing through departmental stores

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RETAILING- THE SUNRISE INDUSTRY

The word retail means to sell or be sold directly to individuals. Retail in Indias largest industry, and arguably the one with most impact on the population .It is the countrys largest source of employment after agriculture has the deepest penetration of rural India , and generates more than 10% of Indias GDP . However retailing in India has so far , been mostly in the hand of small disorganized entrepreneur . It is also Indias least involved industries . In fact , it is not even considered a real industry. The industry suffers from lack of management talent , poor assess to capital, unfavorable regulation and Daniel of access to best practices . The Indian retail industry is only now beginning to envolve in line with the transformation that has swept other large economies .Fifty years of restricting the customer goods industry a national midset which favored denial over indulgence and a fractured supply chain for agricultural product have all contributed to prevent the development of modern tenants based on scale advancements and customer preferences. India has some 12 million retail outlets but many of these act merely as subsistence providers for their owners and survive on a cost structure where labour and land is assumed to be free and tax nil . Compare this with the global retail industry , which one of the worlds largest organized employers, is at the cutting edge of technology and which leverages and scope to offer value-added services to its customers. However, only recently has there been an awaking in this sector , with more organized retailers starting to make an impact.The liberalization of the customer goods industry, initiated in the mid 80s and accelerated through the 90s has begun to impact the structure and the conduct of the retail industry . Backed by changing consumer trends and metrics, liberalization in mindsets driven by media, new opportunities and increasing wealth, retailing in India, present vast opportunities for a variety of a business- real estate store design and operations, visual merchandising logistics and communications B2C service providers and FMCG companies who can add to their offer by partnering this revolution.
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The Indian retailing industry stands poised to take off into the 21st century . it is one of the fastest growing sectors in the nation that catters to the worlds second largest consumers market retail boom is unabating . India has five million retailers with a business volume of $180 million growing at 5 to 7 % a year. The middle class drives retailing anywhere in the world and this segment should have reasonable income. The next driver is availability of variety of goods, products and brands. The third one is sense of awereness. In other developing economies, the transformation has already begun . in many of these countries, organized retail already has 40% share of the market compared to the Indias current level of 2% . As India goes through this transformation, new business with sales of 1 billion -2billion US$ in apparel. Smaller but still interesting opportunities will be created in other sectors like books, electronics and music. This transformation will also impact the supply chain in agriculture, the tax collections from trade and the way people shop. In the last 10 years, the Southeast Asian countries like Indonesia, Malaysia, Taiwan and Korea have gone through similar phases . China with a per capita income of $650-700per annum, is going through the same phases what India is also facing now. Europe went through this phase of retail revolution about 40-50 years ago. It is believed that when a countrys per capita income reaches the level of $1,200per annum organized retailing begins to takeover . Through India has a per capital income of $400, on the basis of purchasing power parity it has already hit the $1200 level . This does strengthen the belief that probably, the right for organized retailing to click in India has come. This project aims at providing an insight in to the emerging trends in the industry and the barriers to change and a perspective on what this industry could become using the global industry as the backdrop.

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Overview of the global retail industry

Retail, with total sales of $6.6trillion, is the worlds largest private industry ahead of financial industry $5.1trillion . It is also home to a number of the worlds largest enterprises. Over 50 of the fortune 500 companies and around 25 of the Asian top 500 companies are retailers. The industry accounts for over 8% of the GDP in western economies. A study by Mc Kinsey states that organized retail accounts for just around 2% (out os which modern retail formats account for 7% trade) presently is set to grow at exponential exceeding 35% . Fitch estimates the current share of organized retail to grow from 2% presently to around 15 to20 % .

Retail Consumption areas Food Retailing Clothing & Apparel Jewelry, Watches Home Furnishing Foot wear Beauty Care

US $ billion Existing Companies in the organized sector 130 Food Bazaar (Pantaloon) Food World Subhishka. 12 Pantaloon Westside, Shoppers Stop 7 Tanishq, Titan, Gold Bazaar (Pantaloon) 5 Home Store, Arcus (Pantaloon) 1.7 Bata, Woodland 3.6 VLCC, Health & Glow

THE RETAIL MARKETING REVOLUTION

By 2012 the list of Indias top 10 retailers will have at least 5 Indian corporate. Retail marketing will go through a tremendous change in India has millennium. It will change India cities its people and its households . the Indian consumer is reportedly the largest spender in Singapore and London. It is therefore strange that there have so far been few efforts to present the product in the right kind of environment in India. Indeed the right shopping experience does the induce the
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Indian consumers to spend more .This is evident from the experiences of retailoutlet like Shoppers Stop , music World , Food World. The Home store Ebony, Bigios Saboos standard Vijay store and janaki das & sons Westside etc. However the development of organized retail is dependent on the efforts of several agencies and institutions . The first among these is the government . In a country as big as India and with as many states as ours , it is imperative that the cental government and all state governments bring in value added texation or a unified taxation system to ensure that the tax regimes are the same across the country The laws governing retail real estate should also be looked into , so that it is possible to develop real-estate beyond the city limits.
Apart from providing entertainment and retail opportunities, this will also decongest the city center and facilitate the development of suburbs. The relevant rules should also be amended to allow retail-stores to operate 7 days a week, 12 hours a day. Given the hours most urban consumers keep at work, and keeping in mind the increase in the number of nuclear families, this may, indeed, make sense. This will also help people enjoy their evenings, out at malls. The second group, whose participation is essential in making retail a boom-sector in this millennium, comprises developers. Most properties are developed without considering the end user; thus, we sometimes find high-ceilinged offices and lowceilinged retail stores. Often, the shopper's convenience is not taken into consideration while the property is constructed. Another area of concern is the way in which developers sell their space. The only consideration is the price, not the usage pattern or the nature of the product that is to be sold. In contrast, internationally, mall-management is treated as a specialized discipline of retail management. This is what we have to focus on in this millennium. The third constituency that has a role to play in the fortunes of organized retail this century is the education-sector. Retail is a people-intensive business, and there is a huge opportunity for retail institutes in India. For manufacturers, retailing will present an attractive opportunity. Organized retail allows them to expose their products to a large volume of customers in an environment conducive to buying. Already, several transnational retail giants have established their presence in India; others, notably Chinese retailers, have visited India

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and studied the Indian market. There's a lot at stake here: even so early in the 21st Century, India is too large a market to be ignored by transnational retail giants. From the manufacturing company's perspective, the focus should be on producing good products, and forging relationships with organized retail. Manufacturers need to draw a plan of producing quality products and tie in with retailers. Indeed, the birth of organized retail will also engender the creation of private labels and store-brands. Thus, if a manufacturing company lacks the resources to build a brand, it can supply to a retail-chain that has the resources to create a brand of its own. A glimpse of the last 2 decades of the previous century proves illuminating. Largeformat retailing started with outlets like Vivek's and Nalli's in Chennai and Kidskemp in Bangalore, and, at another level, with manufacturer-retail brands like Bata, Bombay Dyeing, and Titan. The last decade of the millennium witnessed the emergence of lifestyle brands and the plastic culture. Liberalization and increasing awareness of the world around us created the Indian yuppie, who aspired to own everything we saw on TV, or in shops during jaunts abroad. New lifestyle brands offered traditional retail-outlets an opportunity to convert themselves into exclusive stores, franchised or otherwise. And even as these developments were taking place, the Indian consumer became more mature. Customer-expectations zoomed Thus, at the beginning of the New Millennium, retailers have to deal with a customer who is extremely demanding. Not just in terms of the product-quality, but also in terms of service, and the entire shopping experience. Today, the typical customer who shops in a retail outlet compares the time spent at the check-out counter with that at an efficient petrol station, and the smile of the counter-person to that decorating the face of a Jet Airways' crew member. To cope with the new customer, manufacturers have to focus on product quality and brand building. And retailers, in turn, have to focus on the quality of the shopping experience. Internationally, retailing is a large business; you find at least one retailer amongst the top 10 companies in every country. In the US, it is Wal-Mart with a turnover in excess of $ 120 billion. In the UK, it is Marks and Spencer's with close to 10 billion; and, in Germany, it is Karstadt with a turnover in excess of dm 10 billion.

Top 10 Retailers Worldwide

Rank
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Retailer

No of stores

Sales in US$

1 2 3 4 5 6 7 8 9 10

Wall-Mart Stores Inc. (USA) Carrefour Group (France) The Kroger Co. (USA) The Home Depot, Inc. (USA) Royal Ahold (Netherlands) Metro AG (Germany) Kmart Corporation (USA) Sears, Roebuck and Co. (USA) Albertson's, Inc. (USA) Target Corporation (USA)

owned 4178 8130 3445 1134 7150 2169 2105 2231 2512 1307

Millions $180,787 $61,047 $49,000 $45,738 $45,729 $44,189 $37,028 $36,823 $36,726 $36,362

Studies by consulting firms like A.T. Kearney, KSA Technopak, and McKinsey & Co. in India have indicated a huge potential for retailing in the country. Drawn by the magic number of Rs 1, 60, 000 crore that is expected to be the size of the retail industry by the end of the first decade of this millennium, several companies from the organized sector have also jumped into the fray. In this millennium, like in the last, customers will want to spend time with their family and friends. They may like to visit malls on weekends where everything will be available under one roof. India will benefit from these developments because of increased consumption through retailing and the corresponding increase in employment created by retailing.

Retail Marketing
Retail Marketing includes all the activities involved in selling goods or services directly to final consumes for personal, non-business use. Any organization selling to final consumers -- whether a manufacturer, wholesaler, or retailer is doing retailing. It does not matter how the goods or services are sold (by Person, Mail, Telephone, Vending Machine, or Internet) or where they are sold (in a store, on the street, or in the consumers home).

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There are many approaches to understanding and defining retail marketing; most emphasize retail marketing as the business activity of selling goods or services to the final consumer, but what we emphasized upon is defined as follows: Any business that directs its marketing efforts towards satisfying the final consumer based upon the organization of selling goods and services as a means of distribution The concept assumed within this definition is quite important. The final consumer within the distribution chain is a key concept here as retailers are at the end of the chain and are involved in a direct interface with the consumer. A retailer or retail store is any business enterprise, whose sales volume comes primarily from retailing. Retail organizations exhibit great variety and new forms keep emerging. There are store retailers, non-store retailers, and retail organizations. Consumers today can shop for goods and services in a wide variety of stores. The best-known type of retailer is the department store. Japanese department stores such as Takashimaya and Mitsukoshi attract millions of shoppers each year. These stores feature art galleries, cooking classes, and childrens playgrounds. A retailer is at the end of the distributive channel. He provides goods and service to the ultimate consumers. This he does through his small organization, with the help of a few personnel. In an individual retail store there is not much scope for organization except in the sense that the shopkeeper has to organize and apportion his time and resources. The need for organization becomes essential as soon as he hires people and enters into partnership or takes the help of members of his family in running his store. A retailer deals in an assortment of goods to cater to the needs of consumers. His objective is to make maximum profit out of his enterprise. With that end in view he has to pursue a policy to achieve his objective. This policy is called retailing mix. A retailing mix is the package of goods and services that store offers to the customers for sale. It is the combination of all efforts planned by the retailer and embodies the adjustment of the retail store to the market environment. Retailing mix, a communication mix and a distribution mix. The maximum satisfaction to the customers is achieved by a proper blend of all three. The success of the retail stores, therefore, depends on customers reaction to the retailing mix which influences the profits of the store, its volume of turnover, its share of the market, its image and status and finally its survival. There are three main phases in the life of a retailing institution. These are:

Innovation (Entry)

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Trading Up Vulnerability.

In the entry stage, a new retailer enters with new price appeal, limiting product offerings, Sparton Stores & Limited services. Its monopoly power over the others is its price advantage, which means that it offers products at low prices so as to get a competitive edge over its competitors. In the trading up stage, the retailer starts expanding. It expands in terms of product offering, better services, and improved interiors. With all these, it starts charging a bit higher prices. In the vulnerability stage, there is a gap in the market leaving some space for the new players to come in. this is due to increase in the prices by the retailer. I have already explained the three stages in life of a retail institution. Normally these stages are there in the life of a retail institution. But all these may not be necessarily there in every retail institution. For instance, any retail institution targeting the upper class may start itself with a large variety & high price. This brings to broadly identify and categorize the types of retail marketing, which are defined as follows: 1. 2. Store Retailing Non store Retailing

Types OF Retail Marketing

Store Retailing

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Store retailing provides consumers to shop for goods and services in a wide variety of stores and it also help the Consumers to get all the needed goods and services from one shop only. The different types of store retailing are given below:

Specialty Stores These stores focus on leisure tastes of different individuals. They have a narrow product line with deep assortment such as apparel stores, sporting goods stores, furniture stores, florists and bookstores. These stores are usually expensive and satisfy the needs of selected consumers who have liking or preference for exclusive things.

Departmental Store These stores are usually built in large area and keep variety of goods under one shed. It is usually divided into different sections like clothing, kids section, home furnishings, electronic appliances and other household goods. In a departmental store a consumer can buy variety of goods under one shed. Supermarket These stores are relatively large, low cost, low margin, high volume, self service operations designed to serve total needs for food, laundry and household maintenance products. Supermarkets earn an operating profit of only 1 percent on sales and 10percent on net worth.

Convenience Stores These are relatively small stores located near residential area, open for long hours seven days a week, and carrying a limited line of high turnover convenience products at slightly higher prices than departmental stores. Many such stores also have added takeout sandwiches, coffee and pastries.

Off - Price Retailer

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These stores sell goods at low price with lower margins & higher volumes. These stores sell goods with deteriorated quality. The defects are normally minor. This target at the persons belonging to the lower income group, though some have a collection of imported goods aimed to target the younger generation. The company owned showroom selling the seconds products is a typical example of off - price retailer.

Discount Store These stores sell standard merchandise at lower prices by accepting lower margins and selling higher volumes. The use of occasional discounts or specials does not make a discount store. A true discount store regularly sells its merchandise at lower prices, offering mostly national brands, not inferior goods. In recent years, many discount retailers have traded up. They have improved decor, added new lines and services, and opened suburban branchesall of which has led to higher costs and prices and as some department stores have cut their prices to compete with discounters. Not only that, discount stores have moved beyond general merchandise into specialty merchandise stores, such as discount sporting goods stores, electronics stores, and bookstores. Catalog Showroom Catalog showrooms generally sell a broad selection of high-markup, fast-moving, brand-name goods at discount prices. These include jewelry, power tools, cameras, luggage small appliances, toys, and sporting goods. Catalog showrooms make their money by cutting costs and margins to provide low prices that will attract a higher volume of sales. Catalog showrooms have been struggling in recent years to hold their share of the retail market.

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RETAIL SCENE IN INDIA

India has some sometimes been called a nation of shopkeepers. This epithet has its roots in the huge number of retail enterprises in the country totaling 12 million, about 78 percent of these are small family owned businesses utilizing only household labour. even among retail enterprises that hire workers the bulk of them hire less than 3 workers .Indias retail sector appears backwards not only by standards of industrialized countries but also in comparison to several other emerging markets in Asia and elsewhere. There are only 14 companies that run departmental stores and mere two with hypermarket operations. While the number of businesses operating supermarkets is higher ( 425 in 2004 ) most of these had only 1 outlet, the number of companies with supermarket chains was less than 10.

Major Formats of Retailing

Major formats of In-Store Retailing have been listed in Table given below: Format Branded Stores The Value Proposition Complete range available for a given brand, Certified product quality. Specialty Stores Focus on a specific consumer Greater choice to the
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Description Exclusive showrooms either owned or franchised out by a manufacturer.

Department Stores

Supermarkets Discount Stores

need; carry most of the brands available. Large stores having a wide variety of products, organized into different departments, such as clothing, house wares, furniture, appliances, toys, etc. Extremely large self-services retail outlets.

consumer, comparison between brands possible One stop shop catering to varied consumer needs.

Hyper-mart

Convenience Stores Shopping Malls

One stop shop catering to varied consumer needs. Stores offering discounts on Low prices. the retail price through selling high volumes and reaping the economies of scale. Larger than a Supermarket, Low prices, vast choice sometimes with a warehouse available including appearance, generally located services as cafeterias. in quieter parts of the city Small self-service formats Convenient location and located in crowded urban extended operating areas. hours. An enclosure having different Variety of shops formats of in-store retailers, available close to each all under one roof. other.

Non-store Retailing It is another type of retail marketing. Different types of non-store retailing are given below: Direct Selling Direct selling which started centuries ago with itinerant peddlers has burgeoned into a $9 billion industry, with over 600 companies selling door to door, office to office, or at home sales parties. A variant of direct selling is called multilevel marketing,
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whereby companies such as Amway recruit independent businesspeople who act as distributors for their products, who in turn recruit and sell to sub distributors, who eventually recruit others to sell their products, usually in customer homes. Direct Marketing Direct marketing has its roots in mail-order marketing but today includes reaching people in other ways than visiting their homes or offices, including telemarketing, television direct response marketing, and electronic shopping. Automatic Vending Automatic vending has been applied to a considerable variety of merchandise, including impulse goods with high convenience value (cigarettes, soft drinks, candy, newspaper, hot beverages) and other products (hosiery, cosmetics, food snacks, hot soups and food, paperbacks, record albums, film, T-shirts, insurance policies, and even fishing worms). Organized Retail Formats in India Each of the retail stars has identified and settled into a feasible and sustainable business model of its own.

Shoppers' Stop - Department store format Westside - Emulated the Marks & Spencer model of 100 per cent private label, very good value for money merchandise for the entire family Giant and Big Bazaar - Hypermarket/cash & carry store Food World and Nilgiris Supermarket format Pantaloons and The Home Store - Specialty retailing Tanishq has very successfully pioneered a very high quality organized retail business in fine jewellery.

Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer A chain retailer or corporate retail chain A franchise system A Leased Department (LD) Vertical Marketing System (VMS) Consumer Co-operatives

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A new entrant in the retail environment is the 'discounter' format. It is also is known as cash and-carry or hypermarket. These formats usually work on bulk buying and bulk selling. Shopping experience in terms of ambience or the service is not the mainstay here. RPG group has set up the first 'discounter' in Hyderabad called the Giant. Now Pantaloon is following suit.

Two categories of customers visit these retail outlets. 1. The small retailer. For example, a customer of Giant could be a dhabawala who needs to buy edible oil in bulk. 2. The regular consumer who spends on big volumes (large pack sizes) because of a price advantage per unit. Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out; the old ones tweaked around or just discarded. Some of these are listed in Table below.

Retailer Shoppers' Stop Ebony Crossword Pyramid Pantaloon Subhishka Vitan Foodworld Glob us
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Current Format Department Store Department Store Large bookstore Department Store Own brand store Supermarket Supermarket Food supermarket Department Store

New Formats Quasi-mall Quasi-mall, smaller outlets, adding food retail Corner shops Quasi-mall, food retail Hypermarket Considering moving to self service Suburban discount store Hypermarket, Foodworld express Small fashion stores

Bombay Bazaar Efoodmart Metro S Kumar's

Super market Food super market Departmental store Departmental store

Aggregation of Kiranas Aggregation of Kiranas Cash and carry Discount store

Retailers are also trying out smaller versions of their stores in an attempt to reach a maximum number of consumers. Crossword bookstores are experimenting with Crossword Corner, to increase reach and business from their stores. FoodWorld is experimenting with a format of one-fourth the normal size called FoodWorld Express. Trends in Retail Marketing At this point, I can summarize the main development retailers and manufacturers need to take into account as they plan their competitive strategies. In India the trends are mainly in three sectors. These sectors are: Trends in retail marketing 1. New retail forms and combinations continually emerge. Bank branches and ATM counters have opened in supermarkets. Gas stations include food stores that make more profit than the gas operation. Bookstores feature coffee shops. Even old retail forms are reappearing: In 1992 Shawna and Randy Heniger introduced peddlers carts in the Mall of America. Today three-fourths of the nations major malls have carts selling everything from casual wear to condoms. Successful carts average $ 30,000 to $ 40,000 a month in sales and can easily top $ 70,000 in December. With an average start-up cost of only $3,000, push carts help budding entrepreneurs test their retailing dreams without a major cash investment. They provide a way for malls to bring in more mom-and-pop retailers, showcase seasonal merchandise, and prospect for permanent tenants. 2. New retail forms are facing a shorter life span. They are rapidly copied and quickly lose their novelty. 3. The electronic age has significantly increased the growth of non store retailing, consumers receive sales offers in the mail and over television, computers, and telephones, to which they can immediately respond by calling a toll-free number or via computer.
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4. Competition today is increasingly intertype, or between different types of store outlets. Discount stores, catalog showrooms, and department stores all compete for the same consumers. The competition between chain superstores and smaller independently owned stores has become particularly heated. Because of their bulk buying power, chains get more favorable terms than independents, and the chains large square footage allows them to put in cafes and bathrooms. In many locations, the arrival of a superstore has forced nearby independents out of business. In the book selling business, the arrival of a Barnes & Noble superstore or Borders Books and Music usually puts smaller bookstores out of business. Yet the news is not all bad for smaller companies. Many small independent retailers thrive by knowing their customers better and providing them with more personal service. 5. Todays retailers are moving toward one of two poles, operating either as mass merchandisers or as specialty retailers. Superpower retailers are emerging. Through their superior information systems and buying power, these giant retailers are able to offer strong price savings. These retailers are using sophisticated marketing information and logistical systems to deliver good service and immense volumes of product at appealing prices to masses of consumers. In the process, they are crowding out smaller manufacturers, who become dependent on one large retailer and are therefore extremely vulnerable, and smaller retailers, who simply do not have the budget of the buying power to compete. Many retailers are even telling the most powerful manufacturers what to make; how to price and promote; when and how to ship; and even how to reorganize and improve production and management. Manufacturers have little choice: They stand to lose 10 to 30 percent of the market if they refuse. 6. Marketing channels are increasingly becoming professionally managed and programmed. retail organizations are increasingly designing and launching new store formats targeted to different lifestyle groups. They are not sticking to one format, such as department stores, but are moving into a mix of retail formats. 7. Technology is becoming critical as a competitive tool. Retailers are using computers to produce better forecasts, control inventory costs, order electronically from suppliers, send e-mail between stores, and even sell to customers within stores. They are adopting checkout scanning systems, electronic funds transfer, and improved merchandise-handling systems. 8. Retailers with unique formats and strong brand positioning are increasingly moving into other countries. McDonalds, The Limited, Gap, and Toys R Us have become globally prominent as a result of their great marketing prowess. Many more Indian retailers are actively pursuing overseas markets to boost profits.
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9. There has been a marked rise in establishments that provide a place for people to congregate, such as coffeehouses, tea shops, juice bars, bookshops, and brew pubs. Denvers two Tattered Covered bookstores host more than 250 events annually, from folk dancing to womens meetings. Brew pubs such as New Yorks Zip City Brewing and Seattles Trolley man Pub offer tasting and a place to pass the time. The Discovery Zone, a chain of childrens play spaces, offers indoor spaces where kids can go wild without breaking anything and stressed-out parents can exchange stories. There are also the now-ubiquitous coffeehouses and espresso bars, such as Starbucks, whose numbers have grown from 2,500 in 1989 to a forecasted 13,000 by 2001. And Barnes & Noble turned a once-staid bookstore industry into a fun-filled village green.

RETAIL MARKETING IN INDIA

Retail marketing is the most important part of the entire logistics chain in a business especially in consumer related products. Without proper retailing the companies can't do their business. Retailing is the process of selling goods in small quantities to the public and is not meant for resale. Retail is derived from the French word retailer, meaning to cut a piece off or to break bulk. There are various ways of making goods available to consumers like:

Company to distributor to wholesaler to retailer to consumer Company to salesperson to consumer Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to consumers. But in India the three layered system of distributor, wholesaler and retailer, forms the backbone of the front-end logistics of most of the consumer-good companies. In this system the company operating on all India basis appoints hundreds of distributors across the country that supplies to various retailers and wholesalers. Wholesalers in turn can either directly sell in the market or can supply to retailers. The current retailing system prevalent across the country is highly fragmented and

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unorganized. Anyone with some money and some real estate can open a small shop and become a retailer catering to the locality in which he opens the shop.

There are a number of reasons behind this fragmented retail market. Some of the major reasons being:

Poverty and lower literacy levels. Low per capita income. Savings focused and less indulgence mindset. Poor infrastructure facilities like roads etc. Restrictions on intra-state good movement. High taxes. No exposure to media. High import duties on imported goods. FDI in retailing is not allowed. Retailing is not considered as a business or industry by the government. Hitherto none of the business schools in India were offering specialized courses on retailing. Expensive supply chain.

Besides this there is other reasons too, which led to stifling of growth of organized segment of retailing sector and which instead led to highly fragmented market. Today in India we have more than 12 million retail outlets and most of then are family run and locally owned. There are very few nationally present retail stores. In India the process of buying and selling at these unorganized retail outlets, is highly characterized by bargaining and negotiations. But slowly with increasing influence of media and urbanization the market is shifting towards organized segment. Seeing the huge market size of retail business in the country and the current level of organized segment, many players have jumped into the fray and many are waiting for the right opportunity to enter it.

Retailing in 1990s

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On account of the liberalization drive in the 1990s, several structural and demographic changes that are taking place are helping the industry to grow. The GDP has grown by 6.6percent in the last decade resulting in increased income levels and higher purchasing power for the population. Increasing literacy levels, increasing number of working women, increasing urbanization, higher international travel by Indian population and increasing media penetration has raised aspiration levels of the population, resulting in demand for better shopping experience and larger variety of goods. India has close to 54percent of population below the age of 25, which translates into higher prospects for increased consumption levels in the future. Finally, interest rates have also declined in the past few years further propelling the consumption demand. These factors were the key drivers for the retail wave in the country. Notable among the early entrants were players like Shoppers Stop, Pantaloon, Ebony, Foodworld, Subhiksha, etc. Initially, the growth in organized retail was very slow and concentrated mainly in metros, with south India holding its ground as the pioneer in organized retail growth, on account of the low cost of real estate. Due to the high investments required in the early stages and the fact that real estate was the key deciding factor for success of stores, real estate developers have been the major players in the industry (see Table).

Sponsors
Group Rajan Raheja Real Estate Developer K, Raheja - Real Estate Developer Hiranandani - Real Estate Developer Tata Diversified Business House DS Group - Real Estate Developer RPG Diversified Business House DLF Real Estate Developer ITC - Diversified Business House Retail Business Globus Chain of departmental stores Shoppers Stop - Chain of departmental stores Haiko supermarket, Loft shoe stores and Hakone mall. Westside chain of department stores Ebony - chain of department stores Foodworld supermarkets, Giant hypermarkets, Health & Glow beauty and health stores. DLF malls Wills Sport Chain of apparel stored.

Source: Fitch

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In the early 1990s, as the players were lower down on the learning curve many faltered in their models, and growth of the industry remained slow. The second half of 1990s saw several players making losses and exiting from the business. The worst years for the industry were 2000 and 2001, as the stock market downturn, which reduced customer confidence and spending, had a direct impact on the performance of the industry. The industry recovered starting 2002. It now appears the efforts and learnings of the players in the last decade are beginning to pay off; the organized retail industry has established firm roots and is beginning to grow.

Present Retail Scenario In India

Retail experts find Indian industry promising Retail sales to touch Rs. 30,000 crore by 2005 Mall Mania: The developing mall culture in India Emergence of region-specific formats Emergence of discount formats Entry of international players

Retail experts find Indian industry promising The retail movement in India has acquired the critical mass that is required for rapid acceleration in terms of industry growth as well as geographical spread. The Indian retail industry can no longer be called nascent. The spread of super stores to the northern cities such as Delhi, Chandigarh, Jaipur and Kolkata is evidence of the fact that organized retailing in India has emerged from its southern bastion. The retailing boom is being driven by increased expectations as well as changing shopping behavior of the urban Indian consumer. With the increasing number of nuclear families, working women, greater work pressure and increased commuting time, consumers are looking for convenience. And, convenience is defined as having everything under one roof, longer hours and multiplicity of choice.

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On the supply side, the current inefficient supply chain in India, particularly for food items has led a few players to consolidate their operations to take advantage of economies of scale and match consumer expectations in terms of delivery as well as space. So, we have a situation where both demand and supply side dynamics are fuelling the growth of organized retailing in India, although improvements in the supply chain are yet to fully match with consumer expectations. The future growth need not necessarily come only from the big metros, where there already exists a good retail network. The fact that big Indian retail chains are moving into places like Indore or Chandigarh is an important indicator of future growth. For the Rs. 5000-crore organized retail industry it is, perhaps, time to tap the relatively smaller cities. The share of organized sector in total retail sales will grow from one per cent now to six per cent by 2005.While projections can be slippery, hard facts point to exciting growth ahead for this sector.

According to KSA, organized retailing is focusing on only SEC-A cities, Indias 23 largest cities. That is where a large portion of the country's urban population exists. Today 82 per cent of organized retailing comes from the top six cities and 12 per cent from the next four. KSA says the top 10 cities provide 94 per cent of organized retail sales in India. By 2005, KSA projects the top six cities will account for 66 per cent of total organized retailing and the next four for 20 per cent. The top 10 cities will account for 86 per cent of organized retail sales. There could be variations in growth patterns in different segments. The second half of the top 10 cities will provide large growth for food and groceries, while the top six would still be the growth centers for consumer durables, believes KSA. The spread of organized retailing is unlikely to be a national phenomenon yet. This appears to be the case so far. South India, particularly Chennai, Hyderabad and Bangalore, have seen the emergence of chain stores or large format stores. While garment stores have been around for sometime, other segments like food and groceries, consumer durables and even books and music have witnessed the emergence of organized players in large cities in South India. The lack of trained manpower or alternatively the tremendous scope the sector has to provide employment is another issue. Mall Mania: The Developing Mall Culture in India

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Modern malls made their entry into India in the late 1990s, with the establishment of Crossroads in Mumbai and Ansals Plaza in Delhi. By early 2001, several mall projects were announced. According to market estimates, close to 12 million sq. ft. of mall space is being developed across several cities in the country, of which 10 million sq. ft. is expected to be operational by end of 2003 (see Table below). With this, rentals for retail properties have shown a marked decline, which has brought down the breakeven levels of the retail projects. Moreover, retailers would now have access to retailspecific properties, which will increase their efficiencies.

Mall Development in India

Mall Crossroads Ansals Nirmal Lifestyle Runweals Mall Karnavat Mall Raheja Mind space Jogs Mall Cable Corporation Ansals Sahara MGF Malls Metroplitian & Plaza DLF Shipra Forum City Center Rave 3 Inox
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Location Tardeo, Mumbai South Ex, Delhi Mulund, Mumbai Mulund, Mumbai Thane, Mumbai Malad, Mumbai Andheri, Mumbai Borevali, Mumbai East Delhi Gurgaon Gurgaon Gurgaon Noida KolKotta KolKotta Kanpur Baroda

Rate / Sq. ft. 225-250 175-200 75-90 75-90 65-85 60-80 55-75 55-75 75 50-70 65-85* 65-85 80-180 100 55 45-55 75

Forum Spencers Plaza Phase III Indore, Nasik and Jaipur Malls Hyatt, Mumbai & Leela, Phoenix Malls

Bangalore Chennai

Lower Parel, Mumbai

70-90 70 45-55 175-300 100-125

*average for the metropolitian is Rs. 60 per sq. ft.. source: Chesterten Meghraj. Industry Reports Till some time back, there were only few international style shopping malls in India --Spencer in Chennai, Crossroads in Mumbai, Ansals Plaza in New Delhi and Srirams Arcade in Kolkata. By the end of 2004, that number jumped to many. It looks like a virtual stampede, major players with a cumulative investment of Rs 375 crore are set to change cityscapes across India. In the next one year, close to 40 lakh square feet of retail space will be developed. In three years, this will rise to 70-lakh sq ft. As the retail industry evolves, consumers want more variety before making their purchase decision. A study on consumer outlook suggests that over 80 percent of consumers want a wide range of products at hand while shopping. This signifies that people are finally ready for multi-option complexes. Many old-time corporates are seriously considering using their idle assets. It makes sense for landowners to develop it and keep the returns rather than sell it outright or even lease it, especially when there is opportunity here. It is perhaps the best way to use an idle real estate asset. The limited kitty of brands has yet another significant knock on effect on the typical size of Indian malls. In the US and South-East Asia, malls are as large as 50 lakh sq ft. Spencer is by far the largest mall in India - it occupies 7 lakh sq ft and even that is dwarfed by Asia's largest mall, the 4-million sq ft mega mall in Malaysia. Even the 26 malls that are being planned are likely to measure between 50,000 sq ft and 2 lakh sq ft. The Indian mall cannot offer too many choices in terms of brands. So, developing a very large mall can never be sustainable. There's a flip side though -malls even as small as 80,000 sq ft, like Shopper's City in Kolkata or the Esplanade Mall at Kochi, can be sustained.

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Emergence of Region-Specific Formats For the first time in 10 years, the industry is witnessing the development of regionspecific formats. With organized retail penetrating into B class towns, retailers have started differentiating in the sizes and formats of stores. For example, in departmental store format, while most A class cities and metros have larger stores of 50,000 plus sq. ft. sizes, stores in B class towns have stabilized in the 25,000-35,000 sq. ft. range. Most players have started operating these two formats across various cities, which has helped them to standardize the merchandise offering across the chain. Emergence of Discount Formats Larger discount formats, popularly known as hypermarkets, are now emerging as major competitors to both unorganized and organized retailers. Penetration of organized retail into the lower strata of income groups and consumer demand for increased value-for-money has improved the prospects of these formats. These formats span across the entire range of merchandise categories. Big Bazaar, promoted by Pantaloon and Giant, promoted by the RPG Group, are examples of this format.

Entry of International Players A large number of international retailers have evinced interest in India, despite the absence of favorable government policy for foreign players (see Table below). A number of the major brands have entered the country through licensing agreements with Indian players to capitalize on the opportunities available in the sector. Table 7: International players
International Players Landmarc Group, Dubai Metro, Germany Shoprite, South Africa Nanz, Germany Marks & Spencer, UK
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Retail Ventures In India Lifestyle Chain of Departmental Stores Hypermarket Supermarket, Hypermarket Supermarket Apparel Retailer

Mango, Spain McDonalds, USA Dominos USA Tricon Restaurant, USA

Apparel Retailer Food Retailer Food Retailer Food Retailer

INFORMATION TECHNOLOGY IN RETAIL

Over the years as the consumer demand increased and the retailers geared up to meet this increase, technology evolved rapidly to support this growth. The hardware and software tools that have now become almost essential for retailing can be divided into 3 broad categories:

Customer interfacing systems

Bar coding and scanners
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Point of sale systems use scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. In a matter of seconds, the items in the cart are hit with laser beams and scanned. All that the consumer has to do is to pay for the goods. Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. Electronic cheque conversion, a recent development in this area, processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. Rather than manually process a cheque, the retailer voids it and hands it back to the consumer along with a receipt, having digitally captured and stored and image of the cheque, which makes the process very fast.

Internet Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store.

Operation support systems ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better. CRM Systems The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers
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the tools they need to make sense of their consumer data and apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain, all the way from raw material suppliers right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. Leading manufactures, distributors and retailers and considering APS packages such as those from i2, Manugistics, Bann, Mercial incs and Sterling-Douglas. Strategic decision support systems Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. Today, software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well. Visual Merchandising The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager. A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options. The SPACEMAN Store Suit from AC Nielsen and Modacad are example of products helping in modeling a retail store design.

FOREIGN TOUCH IN INDIAN RETAIL

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The chief of Marks & Spencer has been making trips to India over the past year. Global investment bank Warburg Pincus is awaiting the Indian government's clearance to pick up a 25.1 per cent stake, worth $13 million, in Shoppers Stop. Dairy Farm International and Jardine Matheson are present here, through tie-ups with the RPG Group. Fast food major McDonalds have already made a dent in the marketplace and in Indian palates. The Dubai-based Landmark group is making its presence felt in Chennai through its Lifestyle mega store of over 30,000 sq ft. Landmark is owned by Mukesh Jagtiani, a non-resident Indian. Lifestyle International Private Limited, formed in India recently, is a wholly-owned subsidiary of the Mauritius-based Lifestyle International which, in turn, is wholly-owned by the Landmark group. In India, according to Lifestyle International's marketing manager, Roshan Mathew, the target is to "have 12 to 16 stores by 2005." These stores will sell all lifestyle products, barring furniture, under one roof. Immediate plans include opening a 46,000 sq ft store in Hyderabad, which Mathew terms "The Millennium Store". The Hyderabad store will have additional sections for books and music, unlike the Chennai store. Besides, as soon as Lifestyle gets a keenly awaited Foreign Investment Promotion Board clearance for a Rs 100 crore investment, it will create outlets in Bangalore, Pune, Mumbai, Delhi and Ahmedabad. The Hong Kong-based Dairy Farm International, a 125 year old retail major with around 1,300 outlets across nine countries, recently converted its technical tie-up (since 1996) with the RPG group's Spencer & Company for Foodworld into a 49:51 joint venture. The new venture is called Foodworld Supermarkets Limited. DFI also has a 50:50 joint venture with the Indian group in RPG Guardian. DFI is the retail arm of Jardine Matheson. In Western markets, a familiar sight is the McDonalds golden arch. In India too McDonalds has maintained its unique selling proposition -- providing the same quality of food and the same ambience as anywhere in the world. Its raw material requirements are totally out-sourced. But what it has taken care of is world class quality in all its raw material sourcing, with specifications ensured strictly. The chain has been smart enough to tailor its products to the Indian environment, adding fare for the large number of vegetarians who love fast food, and avoiding certain beef and pork in deference to social sensitivities. In a market place where Kentucky Fried Chicken failed to make an impact, McDonalds seems to be finding its place slowly but surely.

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Organized Retail Formats in India Each of the retail stars has identified and settled into a feasible and sustainable business model of its own.

Shoppers' Stop - Department store format Westside - Emulated the Marks & Spencer model of 100 per cent private label, very good value for money merchandise for the entire family Giant and Big Bazaar - Hypermarket/cash & carry store Food World and Nilgiris Supermarket format Pantaloons and The Home Store - Specialty retailing Tanishq has very successfully pioneered a very high quality organized retail business in fine jewellery.

Structure of the retailing industry according to ownership patterns:

An unaffiliated or independent retailer A chain retailer or corporate retail chain A franchise system A Leased Department (LD) Vertical Marketing System (VMS) Consumer Co-operatives

A new entrant in the retail environment is the 'discounter' format. It is also is known as cash and-carry or hypermarket. These formats usually work on bulk buying and bulk selling. Shopping experience in terms of ambience or the service is not the mainstay here. RPG group has set up the first 'discounter' in Hyderabad called the Giant. Now Pantaloon is following suit.

OBJECTIVES OF STUDY
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Hence, the present study practices of sales promotion of apparel retail outlets:-

To compare usage across exclusive and multi brand outlets

To explore rationale behind such activities by examining consumer behavior.

To study challenges ahead regarding retail sector.

To study the retail industry in form of promotional activities.

SCOPE OF THE STUDY

It will extend to the actual field study of these outlets in India.

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 It will give information to prospective customers. Help us gain independent knowledge about the consumer perception of the outlet identified. The study can help the companies to get additional research information. It facilitates evaluation of brand name and customer satisfaction.

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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodlogy is a systematic process to gain new knowledge. It will be successful with the help of two terms (1)Research (2)Method

Research:- It is a systematic process of exploring actul persons and groups, focused primarily on their experience within their social worlds, inclusive of

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social attitudes and values, the mode of analysis of these experiences which permit stating position in the form Method:- According to this process what method we use to achieve our objective of research. We use two types of research in collection of data Primary data:- It may be described as those data that have been observed and recorded by the researchers for the first time to their knowledge Example:- Survey, Questionnaire etc Secondary data:- This type of data is collected with the help of secondary resources for its own use and leter same data is used by the another organisation. Example:- Books, journals etc.

In this research study, Descriptive research design has been used

Primary Data

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Interviewing the customers and consumers

Questionnaires, Surveys, Approaching the outlets directly.

Secondary Data

Books, Magazines, Newspapers, Blogs.

Sampling Sample Size 75 customers/consumers Sample Unit Consumers in the age group 18 to 50 years Sampling method simple random sampling method

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DATA ANALYSIS & INTERPRETATION

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FINDINGS
Four stores, both mulitbrand and exclusive use loyalty cards to reward loyal users and encourage them to visit the store often and buy more by offering wide range for men, women and children. Some store also offer home furnishings, accessories and footwear, thereby providing convenience for one stop shopping. Examining the various terms and conditions of loyalty programme revealed that some rewards were quite complex and confusing. e.g. lifestyles card- Inner circle. The conditions to be fulfilled is not very clear to a card member.For example, if any other promotions are prevalent then purchase made during those promotions would entitle for the card reward points or not was not very clear. All the stores used in store media to announce promotions. However use of mass media and electronic media varied across the sample under study. Use of only instore media would restrict the announcement to those who walk into the store. It can be assumed that only loyal/ frequent visitor would know about the offers. Whereas variety of media used would enhance footfalls to the store and trigger word of mouth. Only one store used joint sales promotion tieing up with brands like, MacDonald, Havmore, Golds (local) Gym and Kaya skin clinic. No other store has yet explored avenue of joint sales promotion. Such joint promotions have advantages in terms of sharing costs of promotions, cross selling opportunities to each others customers, higher visibility etc. In terms of type of consumer sales promotions, almost everyone used discount, coupon programmes and few used lucky draws, contests, gift, buy one get one free type of promotions. Only Pantaloon had a unique scheme of an exchange offer which is normally prevalent in durable goods industry. Relating it to a cause- donating old pairs collected in exchange scheme to charity would enhance the brand value among the consumers. Every retail outlet measures impact of sales promotion activities by looking at sales made during the promotional period. Few others also look at the footfalls, conversion from footfall to buyers, average bill size during promotions etc. Very few measure profits made during promotions by relating revenues to costs of promotions. Beyond that no evaluation is done. The problem of isolating effect of different promotions in a situation of promotion overlap is not addressed. Rich database that a retailer possesses is yet to be explored for further diagnosis and building future promotions.
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SUGGESTIONS

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SUGGESTIONS

The current ratio of the company has been continuously increasing from the year 2006-2009 and now its is showing the ratio of 0.82:1 but it is not up to the ideal ratio which means that the current liabilities are quiet high as compared to the current assets. So at present company does not need to go for debt to meet the requirements to meet the expenses.

The company quick ratio is not giving the good response in 2006-2007 the ratio was 0.23:1 but in 2007-2008 it got increased to the 0.42:1 and now in 2009 it decreased to 0.39:1. quick ratio is find out when we decrease the inventory to the current asset so in 2008 the inventory was low, in 2007 it was quiet high and now in 2009 it is quiet high. The ideal ratio is 1:1.

The company absolute liquidity ratio is also showing the bad response in 2009 it is 0.003:1 means the company is not having the enough liquidity and facing the shortage of fund.

The company average collection period is increasing from year after year .in 2009 it is 102 days means credit payment period is high and company should look up this problem cause in downturn this sale may be converted into bad debt.

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The company working capital turnover is declining and in all years it shows negative trend which needs to be considered as an issue and should try to correct it.

The company net working capital is quiet low and in 2009 it is 3.01 cr. It is good in comparison to previous years, still company can not afford to face the extended payment period.

CONCLUSION
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 Companys current position is not good . It need to be change.

Companys Working Capital position is also not good.

Company is facing shortage of fund to meet its current liabilities.

LIMITATIONS

The sample was drawn through convenient sampling technique.

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The sample size was 75 which cannot represent the taste of a large Size of population.

Time and money were the greatest limitations in carrying out the surveys. The respondents (viewers) in many cases were hesitant to give exact information. Some facts cannot be represent in statistical form which is also a backdrop. Some questions were of subjective nature and could not be included in the interpretation. Data gathered from various sources was not enough. Our scope of study was our main constraint though the subject is vast we had to confine to only our objectives in the aim.

BIBLIOGRAPHY

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Books: Weitz L., 2003, Tata McGraw Hill Edition, Retailing Management. Retail management by Sapna Pradhan

Websites:

www.google.co.in www.indiaretailing.com www.retailnewsindia.com

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