Retail Projrct Des

8/9/2019 Retail Projrct Des

1/46

ABSTRACT

This study is intended to help HomeStop to decide upon the steps to be taken

for identifying target customer & therefore creating awareness programs for

attracting customer to store so that the growth of the Store keeps on

improving.

This study is an attempt to Understand the Perception about The Branded

Home Dcor & Furniture & On The Basis Of Perceptual Mapping

Targeting the Market segment for attracting customer to HomeStop, Vashi

The area where research is conducted is Vashi,

Juinagar,Nerul,Seawood,Kharghar

Primary data have been used for analysis. However, secondary source have

yielded preliminary information. Research conducted was descriptive in

nature. Descriptive research helped me to develop the concept to clearly

establish priorities, to divulge adequate information which helps me in

decision making and thus essential for making the study a success.

A structured questionnaire was used to obtain required information and to

understand the Perception about The Branded Home Dcor & Furniture and

to find the ways through which the company can come up to the expectation

of customer so that more number of customers are attracted towards store.

I have used selected sampling for my survey. Care was taken that the

respondents were from middle & upper middle class.

A sample size of 200 respondents was taken from various parts of Navi

Mumbai. I collected data and analyzed them. I have critically analyzed each

and every question in the questionnaire and then given the managerial

implication. This analyzed data was later converted into bar diagrams for


2/46

2

convenience. This also made it easy to draw a conclusion based research and

provide a presentable format for the report. Later on the information were

compiled to form a presentable report.

A better strategy to satisfy customer is only the way to gain customer

attention and to penetrate more in own catchment area. Strategy must be in

all area like Promotional offer/Scheme, Product Pricing, Employee behavior,

Billing Process, Product Assortment, Product quality in terms of RATER.

It is found in the research that customers gives priorities to factor like

proximity, variety, price for Home Dcor & Furniture product hence

HomeStop should come up with various Price & Product Strategies to attract

new & hold existing customers.

Last but not least Navi Mumbai is rapidly developing city from

infrastructure, economic, social & industrial point of view. Lots of real

estate projects are on the finishing path. So, demand for branded Home &

office Furniture is expected to increase at much faster pace. Also thinking

and attitude of customers is changing towards branded Home Dcor &

Furniture product. So the concept of retail that is Touch and Feel the

product is properly applied it would ultimately benefit HomeStop.


3/46

3

INTRODUCTION

When man started to cultivate and harvest the land, he would occasionally

find himself with a surplus of goods. Once the needs of his family and local

community were met, he would attempt to trade his goods for different

goods produced elsewhere. Thus markets were formed. These early efforts

to swap goods developed into more formal gatherings. When a producer

who had a surplus could not find another producer with suitable products to

swap, he may have allowed others to owe him goods. Thus early credit terms

would have been developed. This would have led to symbolic

representations of such debts in the form of valuable items (such as

gemstones or beads), and eventually money.

HOW RETAIL DEVELOPED

PEDDLERS AND PRODUCERS:

The Retail Trade is rooted in two groups, the peddlers and producers.

Peddlers tended to be opportunistic in their choice of stock and customer.They would purchase any goods that they thought they could sell for a

profit. Producers were interested in selling goods that they had produced.

EARLY MARKETS:

Over time, producers would have seen value in deliberately over-producing

in order to profit from selling these goods. Merchants would also have begun

to appear. They would travel from village to village, purchasing these goods

and selling them for a profit. Over time, both producers and merchants,

would regularly take their goods to one selling place in the centre of the

community. Thus, regular markets appeared.The First Shop : Eventually,

markets would become permanent fixtures i.e. shops. These shops along


4/46

4

with the logistics required to get the goods to them were, the start of the

Retail Trade.

THE BIRTH OF DISTANCE RETAILING:

Defined as sales of goods between two distant parties where the deliverer

has no direct interest in the transaction, the earliest instances of distance

retailing probably coincided with the first regular delivery or postal services.

Such services would have started in earnest once man had learned how to

ride a camel, horse etc.

When individuals or groups left their community and settled elsewhere,some missed foodstuffs and other goods that were only available in their

birthplace. They arranged for some of these goods to be sent to them. Others

in their newly adopted community enjoyed these goods and demand grew.

Similarly, new settlers discovered goods in their new surroundings that they

dispatched back to their birthplace, and once again, demand grew. This soon

turned into a regular trade. Although such trading routes expanded mainly

through the growth of traveling salesmen and then wholesalers, there were

still instances where individuals purchased goods at long distance for their

own use. A second reason that distance selling increased was through war.

As armies marched through territories, they laid down communication lines

stretching from their home base to the front. As well as garnering goods

from whichever locality they found themselves in, they would have also

taken advantage of the lines of communication to order goods from home.

ORIGINS OF RETAIL

It is likely that, as markets became more permanent fixtures they evolved

into shops. Although advantageous in many respects, this removed the


5/46

5

mobility that a peddler or traveling merchant may still have enjoyed. For

some shopkeepers, it made sense to obtain extra stock and open up another

shop, most probably operated by another family member. This would

recover business from peddlers and create new business and the greater

volume would allow the shopkeeper to strike a better deal with suppliers.

Thus the retail chain would have started. Its thought that this process would

have started in china over 2200 years ago with a chain of shops owned by a

trader called Lo Kass.

THE FIRST SELF-SERVICE STORE:

This all changed in 1915 when Albert Gerrard opened the Groceteria in Los

Angeles, the first documented self-service store. This was soon followed a

year later by the Piggly Wiggly self-service store, founded by Clarence

Saunders in Tennessee in the U.S.

GROWTH:

This new type of shopping was more efficient and many customers preferred

it. Although personal service stores remain to this day, this new concept

started a rapid growth of self-service stores in the United States. Other

countries were slow to take up the idea, but there has been a steady rise in

the global amount of self-service stores ever since.

EFFICIENCY

These entrepreneurs noticed that their staff had to spend a great deal of time

taking grocery orders from customers. The groceries were stacked on

shelves allowing customers to walk around and browse, collecting their

shopping in a basket that was supplied. The shopkeeper would only need to


6/46

6

tot up the final bill at the end of the process and transfer the goods from the

basket to the customer and receive payment.

FROM FAMILY BUSINESS TO FORMAL STRUCTURE:

Although retail chains would have been mostly run by families, as some

chains grew, they would have needed to employ people from outside of their

family. This was a limiting factor as there would have been a limit to the

amount of trusted non family members available to help run the chain.

Another, even more definite limiting factor was the distance the furthest

shop would have been from the original shop. The greater the distance, the

more time and effort would have been needed to effectively manage outpost

shops and to service them with goods. There was, therefore, a natural barrier

to expansion. That was the case until transport and communications became

faster and more reliable. When this happened towards the end of the 19th

century, chains became much bigger and more widespread. Many of these

businesses became more structured and formalized, leading to the retail

chain that we see today.


7/46

7

2. 1 PRESENT STATE OF INDIAN RETAIL SECTOR

The Indian retail industry today is the 5th largest retail destination and the

second most attractive market for investment in the globe.India is one of

the largest and highly fragmented Retail markets globally with the highest

retail outlets in the world crossing over 12 million with unorganized players

accounting for around 5% of market share. India has been rated as the most

attractive destination globally by a survey of global retailers carried out by

AT Kearney. The retail industry was pegged at USD 226bn in 2005. Of this

organized retail accounted for just 3.4% of the overall retail pie. This is

estimated to reach 10-12% by 2010.

The Indian retail industry has a size of$300 billion and its contribution to

the Indian economy has been enormous. As a result of improvement in

income dynamics, favourable demographics and spending patterns India has

witnessed an unprecedented consumption boom. The attitudinal shift of the

Indian consumer in terms of "Choice Preference", "Value for Money" and

the emergence of organized retail formats have transformed the face of

Retailing in India. It has helped improve the standard of living of most

Indians and will continue to do so in the future. Policy makers are optimistic

about the growth prospects of the retail industry and its followed impact on

the Indian economy as a whole.


8/46

8

India represents the most compelling international investment opportunity

for mass merchant and food retailers looking to expand overseas, according

to management consulting firm AT Kearney's 2005 Global Retail

Development Index (GRDI), an annual study of retail investment

attractiveness among 30 emerging markets. India is rated as the fifth largest

emerging retail market and is seen as a potential goldmine. Driving global

brands into India is the greatly improved investment climate due to the

recent relaxation of direct ownership restrictions on foreign retailers. The

country's retail market totals $330 billion, is vastly underserved and has

grown by 10 per cent on an average over the past five years. The message

for retailers on India is clear move now or forego prime locations and

market positions that will soon become saturated. Global retailers that

missed opportunities to capture first-mover advantage in China will make up

for it in India.

KEY DRIVERS OF GROWTH ININDIAN RETAIL

At present Retail industry in India is at a blossoming stage but its growth is

at a scorching pace. The key drivers that will sustain this growth can be

categorized as,

Consumer or Demand-side drivers

Retailer or Supply-side drivers

CONSUMER OR DEMAND-SIDE DRIVERS

a) Increasing Disposable Income ofIndian Middle class

The Indian Middle class comprising Seekers and Strivers is the consuming

class and prime target segment for Retailers in India. These two categories


9/46

9

together constituted around 6.4% of Total Households in India in 2009 but

accounted for 20% of the disposable income.

b) Personal Consumption as a percentage ofGDP

Personal consumption as a percentage of GDP India is second only to

Vietnam in Asia and a close fourth globally. Robust growth of Indian

economy will result in increase in personal consumption as a percentage of

GDP. According to IMA, Asia, India had one of the highest personal

consumption as a percentage of GDP in Asia at around 55% in 2009. This

portends well for Indian Retail as with per capita income growing, this

personal consumption would translate into higher Retail Sales. Hence, India

with one of the highest personal consumption as a percentage of GDP in

Asia.

c) Population As a Growth Driver

The urban population was estimated to be 281 million (27.7 percent of the

total population). This trend is likely to continue and urbanization is

expected to grow at 2.4.

d) Plastic Money becoming a greater Pie of credit

According to Euro monitor, India is the second fastest growing Financial

Cards market in the Asia - Pacific region. India's Credit Card base is

estimated to grow at an annual rate of 30-35% from 27mn cards in 2009. It

is expected that Credit Card growth would remain on high growth trajectory

and fuel growth in Modern Retail on Credit. The Indian Retail Market is

estimated to be US $511bn at the end of CY2008 out of which Credit Cards

Sales are expected to contribute around 1.2%, which is expected to be


10/46

10

around 1.4% of the total Retail Sales in India at the end of CY2010. Indian

consumers are increasingly using Credit Cards for purchasing and shopping,

dining, jewellery and durable goods due to attractive and consumer friendly

schemes by various banks. A natural progression for Retailers like Pantaloon

and Shoppers' Stop has been the Loyalty cards that and either standalone or

in collaboration with banks and offer discounts and free purchases to the

cardholders. Also it is believed that these Loyalty cards hold the key to

future growth of Modern Retail in India.

e) Internet Driving Awareness and Online Purchases

There has been a substantial increase in the number of Indians using the

Internet. Indians have started using the Internet not only for increasing

awareness but also to shop online. This, along with the increase in Credit

Cards and options like cash-on-delivery have opened new avenues for Indian

RETAILER OR SUPPLY-SIDE DRIVERS

a) Increased Investments in Retail

According to the E&Y estimates investments in Organised Retail will

possibly touch US $25bn in 2010, up from US $3bn in 2006. Funds would

essentially flow into the sector through Private Equity, IPO route and

infusion of funds through warrants.

b) Tier- II & III cities to fuel future growth of Modern Retail

The initial Retail revolution in India began in the big Tier-I cities. However,

now the Retail hubs in India are now finding their way to the smaller Tier-II

and III cities as well, which have hitherto been left out of it. The changing

landscape of Indian Retail and increasing competition has also forced

Retailers to tap growth opportunity in Tier-II and III cities in India. The


11/46

11

Top-784 cities in India constitute about 26% of population and contribute

35% to Total Retail Sales. Tier-II and III cities account for 18% of the

overall population and contribute 22% to the Total Retail sales. Thus, there

are substantial opportunities to be tapped in Tier-II and III cities of India for

expansion of the Retail footprint

c) Shortened Supply Chain benefits consumers

A Traditional supply chain in India comprises 5-6 levels from Wholesaler to

Sub-Wholesaler to the Distributor to the Local Mom and Pop stores to the

Consumers. Two major disadvantages of this Supply Chain are as follows:

a) Cost of the product increases at every stage of the Supply Chain resulting

in increase in the price of the products due to cascading effect, and

b) Increase in shrinkage at every stage of the Supply Chain results in loss of

goods for consumption.


12/46

12

2.2 STRUCTURE OF INDIAN RETAIL SECTOR

The Indian retail industry can therefore be broadly divided into organized

and unorganized retailing. Unorganized sector constitutes of the local

kiranas, hand cart, the vendors on the pavement etc. Unorganized retailing is

still the backbone of the Indian retail industry contributing to over 95 per

cent of total retail revenues.

The organized sector on the other is hand trading undertaken by the licensed

retailers who have registered themselves to sales as well as income tax. They

constitute of corporate backed hypermarkets and retail chains. This modern

retail has entered India as seen in sprawling shopping centres, multi-storeyed

malls and huge complexes offer shopping, entertainment and food all under

one roof


13/46

13

UNORGANISED RETAIL SECTOR:

The unorganized retail sector includes the big, average and modest grocery

stores and the chemist shops. Among this unorganized player more than 80

percent of these run as small family businesses in small towns and cities inthe form of kirana stores, push cart vendors, melas and mandis. In

terms of employment the retail outlet in the unorganized sector feeds a

household of six to seven members. The rural market is spread over 627,000

villages, even though its centre of attention is focused around a core group

of 100,000 villages that makes up 50 per cent of the rural population The big

retail players are beginning to realize the significance of this untapped

market by entering these markets and are being accepted by these rural

consumers. The rural retail revenues are estimated to increase by 60 per cent

by 2012, with larger share of increase in demand for consumer and

household products.

Though India has more than five million retail outlets, they are greatly

unorganized. The Big Bazaars and Spencers, the huge unorganized retailsector is finally beginning to see the merit of logging on, even if at a model

scale. Taxation policies also push you to automate and the push is even

harder for those looking to expand beyond their single store existence. There

is no supply chain management perspective. In fact, out of the entire retail

sector in India, the organized sector is only 25 per cent and the rest is

unorganized. 96 per cent of the retail outlets are smaller in area than the

standard norms. The efficiency of organized sector in retailing is manifested

in some of the newer supermarkets in urban/metropolitan India .A

changeover is taking place from the conventional retail sector to organized

retailing. But the unorganized segment still dominates and leads the

industry.


14/46

14

4.1 OVERVIEW OF ORGANIZED RETAIL SECTOR

The organized retail business in India is very small. This is despite the fact

that India is one of the biggest markets. Retail business contributes around

10-11 per cent of GDP. India also has the largest number of retailers, about12 million, though they are mostly small. Most of the organized retailing in

the country has just started recently, and has been concentrated mainly in the

metro cities. Organized retailing in India has a huge scope because of the

vast market and the growing consciousness of the consumer about product

quality and services.

Highlights of the Indian retail sector over 2001, 2005 and the projections for

the next five years show an immense potential for this sector. The share of

the organized retail market is expected to rise to a whopping 10% of the

entire retail sales amounting to Rs.31Bn by 2010.


15/46

15

50 million sq ft of quality space under development 7 major cities to

account for 41 million sq ft development 300 malls, shopping centre and

multiplexes under construction To- open 35 hypermarkets, 325 large

department stores, 1500 supermarkets and over 10,000 new outlets To add

US $ 10 billion of business to organized retail.

The 4 major organized retail sectors are Food & Grocery, Clothing,

Consumer Durables and Books & Music. In 2003-04, private consumption

expenditure in India amounted to Rs 1,690,000 crores (USD 375 billion) of

which, retail sales constitute about 61% (USD 230 billion).

Clothing andTextile36%

Footwear13%Watch &

Jewellery17%

Books, Music &Gifts3%

Health & Beauty1%

Food & Grocery14%

Home3%

Entertainment1%

Durable10%

Pharma2%


16/46

16

In terms of penetration by the organized retail sector, footwear is the highest

category, followed by consumer durables &clothing.


17/46

17

4.2LEVELS OF ORGANIZED RETAIL

While organized retail is possible in many categories, extent of its growth

varies according to category. Organized retailers can operate as specialized

chains catering to a particular category of retail or can be present in more

than one retail category through a department store, hypermarket, etc.

LEVEL 1

Specialty Stores:

These stores focuses on specific market segments and have established

themselves strongly in their sectors e.g Chains such as the Bangalore based

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

the Times Group's music chain Planet M etc.


18/46

18

Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on

the MRP through selling in bulk reaching economies of scale or excess stock

left over at the season. The product category can range from a variety of

perishable/ non perishable goods e.g Subhiksha, The Loot

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential

areas. They stock a limited range of high-turnover convenience products and

are usually open for extended periods during the day, seven days a week.

Prices are slightly higher due to the convenience premium.

MBOs :

Multi Brand outlets, also known as Category Killers, offer several brands

across a single product category. These usually do well in busy market

places and Metros.

LEVEL2

Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as

Supermarkets. These are located in or near residential high streets. These

stores today contribute to 30% of all food & grocery organized retail sales.

Super Markets can further be classified in to mini supermarkets typically

1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft

to 5,000 sq ft. having a strong focus on food & grocery and personal sales.


19/46

19

Supermarkets are relatively new entrants in the market. They are so called

pioneers in organized food retailing and go by the western model in look and

feel and format. This is what everybody means when they say organized

food retailing.

Hypermarket:

A very large commercial establishment that is a combination of

departmental store and a supermarket. The specific features of a

hypermarket are the wide range of goods offered, quality service, quality

display of goods on the shelves and complex systems providing for

customers loyalty.

Hypermarket is known for a wide range of goods offered. It consists of

dozens of thousands of items, while similar goods can be offered in several

forms. In order to work with such an assortment it is necessary to group it

into categories and sub categories that would unite goods according to this

or that criteria.

Departmental Stores

Large stores ranging from 20000-50000 sq. ft, catering to a

variety of consumer needs. Further classified into localized departments

such as clothing, toys, home, groceries, etc

Level 3

Shopping Malls:

The new shopping malls that have been expanding their footprint across

Indian cities are well designed, built on international formats of retailing and


20/46

20

integrated with entertainment and restaurants to provide a complete family

experience. Over 300 malls are expected to be built over the next two years

and most Indian cities with over a million populations will be exposed to this

modern method of retailing.

Shopping malls have existed in India since several decades but were

designed and built to house several shops in a single facility. These malls

also known as Shopping Arcades offered only rows of shops, most of which

were small stores that promised bargains for their various wares. These

Shopping Arcades tried to maximize on their store space and did not offer

any areas for recreation and entertainment.The present day malls are a creation of the past few years post 2000. They

are designed professionally using a lot of international experience and

combine shopping with a lot of brand building, recreation, food and

entertainment. Malls also have a large format store that serves as their

anchor for shopping and a prominent restaurant that anchors the food needs

of visitors. Most malls also feature a multiplex cinema that offers

entertainment to the visitors of the mall. Finally the mall has large atria and

open spaces to allow visitors and families to hang-out.


21/46

21

4.3 MAJORINDUSTRY PLAYERS

The Future Group

Shoppers Stop

Trent Westside

Pyramid

Subhiksha

Rpg Spencer

Reliance Retail

Bharti Wal-Mart

Aditya Birla More

Vishal Retail

Metro Cash & Carry India

Viveks - The Unlimited Shop


22/46

22

SHOPPERS STOP

Shoppers Stop, promoted by the real estate group K Raheja, was one of the

first movers to have set up a large retail outlet in New Delhi with

international ambience. Shoppers Stop Ltd now has a considerable

presence all over the country with over 7 lakh square feet of retail space and

stocks over 200 brands of garments and accessories. The stores are spread all

over India with presence in Mumbai, Delhi, Bangalore, Hyderabad, Jaipur,

Pune, Kolkata, Gurgaon, Chennai & Ghaziabad.

Shopperstop Operates Under the Departmental Store Format, And Was One

Of The Pioneers Of The Large Format Stores In India. It has progressed

from being a Single Brand Shop to a Family Orientated Fashion and

Lifestyle Store.

Shoppers Stop is also very well known for having pioneered several quality

retailing concepts in India like Crossword, Mother care, Home Stop, F&B

Business and MAC.

They are the only retailer from India to become a member of the prestigious

Intercontinental Group of Departmental Stores (IGDS).


23/46

23

Shoppers Stop is positioned as a family store delivering a complete

shopping experience. With its wide range of merchandise, exclusive shop-in-

shop counters of international brands and world-class customer service,

Shoppers Stop brought international standards of shopping to the Indian

consumer providing them with a world class shopping experience. Shoppers

Stops core customers represent a strong SEC A skew. They fall between the

age group of 16 years to 35 years, the majority of them being families and

young couples with a monthly household income above Rs. 20,000/- and an

annual spend of Rs.1,50,000/-. A large number of Non - Resident Indians

visit the shop for ethnic clothes in the international environment they are

accustomed to.

The stores offer a complete range of apparel and lifestyle accessories for the

entire family. From apparel brands like Provogue, Color Plus, Arrow,

Levis, Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint

Ricci etc., Shoppers Stop caters to almost every lifestyle need.

Shoppers' Stop also retails its own line of clothing namely Stop, Life ,

Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers Stop is


24/46

24

sold at a quality and price assurance backed by its guarantee stamp on every

bill.

Shoppers Stops customer loyalty program is called The First Citizen.

The program offers its members an opportunity to collect points and avail of

innumerable special benefits. Currently, Shoppers Stop has a database of

over 2.5 lakh members who contribute to nearly 50% of the total sales of

Shoppers Stop.

The Organization, in 2000, along with ICICI ventures also acquired the

reputed bookstore, Crossword, which offers the widest range of books

along with CD-ROM, music, stationery and toys. Services like Dial-a-book,

Fax-a-book and Email-a-book enable customers to shop from their homes.

Crossword currently has 18 Stores.

Realizing the role of IT way back in 1991, Shoppers Stop was among the

first few retailers to use scanners and barcodes and completely computerise

its operations. Today it is one of the few stores in India to have retail ERP in

place, which is now being integrated with Oracle Financials and the Arthur

Planning System, the best retail planning system in the world. With the help

of the ERP, they are able to replicate stores, open new stores faster and get

information about merchandise and customers online, which reduces the

turnaround time in taking quick decision.

Shoppers Stop has been very keen to understand the importance of

distribution and logistics in ensuring that merchandise is available on the

shop floors. This has led the retail chain o streamline its supply chain. The


25/46

25

company has developed process manuals for each part of the logistics chain.

These modules include vendor management, purchase order management,

stock receiving systems, purchase verification and inventory build up,

generation and fixing of price and store tags, dispatch of stocks to the retail

floor and forwarding of bills for payment.

Shoppers Stop has a grand ambition to position itself as a global retailer.

The company intends to bring the worlds best retail technology, retail

practices and sales to India. Currently, they are adding 4 to 5 new stores

every year.


26/46

26

HOMESTOP

HomeStop, the premium home concept store from Shoppers Stop started 2

years back. It is present in Bangalore, Mumbai and Delhi & Navi Mumbai.

HomeStop has a stupendous variety of categories in the home segmentincluding furnishing, furniture and recliners, bath accessories, bed and

bedding, kitchen accessories and appliances, modular kitchen, gadgets,

home adornments, amongst others.

HomeStop offers the crteme de La creme brands across every category to

ensure that each customer's living space is luxurious, elegant and a reflection

of their style statement. HomeStop houses some of the most reputed national

and international brands under one roof like

Categories Brands

High End Crockery Corelle

Premium Steel Utensils Magpie And Artinox

Feather Pillows And Fine Bedding Paradies, Germany

Bed Linen And FurnishingIvy, Fern, Portico, Maspar, Bombay

Dyeing

Home Appliances Phillips And Morphy Richards

Bathroom Linen Welspun

As HomeStop is relatively lesser known than its sibling, Shoppers Stop, but

has just rolled out a campaign to attract more footfalls

After the recent revamp of Shoppers Stop (one of Contract Advertisings

first accounts the agency had worked on its repositioning), the focus is


27/46

27

now on the two year old HomeStop. This is a relatively smaller venture,

stretching to only three cities. Its punch line thus far has been, For Your

Kind of Home.

COMPETITORS OF HOMESTOP:

As penetration of organized Home Dcor & furniture sector is very less

compared to unorganized sector. As far as major retail player is concerned,

this sector is still unexposed to competition .HomeStop is facing the

competition mainly from local well furnish stores, but many major player in

retail have started showing their interest in the sector.

Home Stops competitors are:

Home Bazaar

Well Home

Durian

Spaces

Moms sleek

Sleek Pyramid Kitchen

Godrej Interio & Furnishing


28/46

28

OBJECTIVE

1. To perform a Catchment Analysis for identifying customers

perception about the Branded Home Dcor & Furniture sector.

2. Understand The Target Market On The Basis Of Catchment AnalysisFor HomeStop

3. To understand customers views regarding HomeStop.

CATCHMENT ANALYSIS

Definition:

Catchment analysis is basically a tool for area mapping of that local market

to finds the locations of the competitors, customers and traffic between

them, in order to quantify the sizes and potentials of that local catchment

areas and market of that area as whole.

With the help of catchment analysis, company knows the best location for

business, target and potential customers. This technique is used

If a company doesnt know who its shoppers are, how can company

give them what they want? If company doesnt know where they

come from, how can company communicate with them? Finding

answers to these questions is vital but catchment analysis is very

helpful in that.

A company or retail store will be able to optimize its activities if andonly if company knows its market in depth. Its market penetration, its

success and its potential depend on geographical factors, hard to

grasp, hard to fully understand, but catchment analysis is very helpful.


29/46

29

TYPE OF CATCHMENT AREA

There are four type of catchment that is following

Unitary Catchment

It is hub of the catchment area around the outlet, from where

maximum number of people comes to the retail stores for shopping.

Secondary Catchment

This area is called secondary catchment area which is around 2 km far

away retail stores from where some people come to the shop for

shopping.

Tertiary Catchment

The area from where only some selected or loyal customers come to

the retail stores that is more than 2 km far from outlet.

Outer Catchment

Outer catchment area is totally outer area from where only less no. of

person sometimes comes to the outlet.


30/46

30

RESEARCH METHODOLOGY

It is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it

we study the various steps that are generally adopted by researchers, in

studying our research problem along with the logic behind it. It is essential

for the researchers to know not only the research method technique but also

the methodology.

RESEARCH PROCESS

It consists of a series of action necessary to effectively carry out research

and the desired sequence of these steps.

y Defining the problem and research objectives

y Develop the research plan

y Collect the information

y Analyze the information

y Present the findings

y Make the decision

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedure. Descriptive research is used in the

preparation of the project.

There is some point and facts which were not found earlier hence

exploratory research is used.


31/46

31

A descriptive research technique is also used as I again worked upon those

facts which were earlier found by some other.

RESEARCH INSTRUMENT

A standard questionnaire was prepared for the collection of data from the

various respondents. The questionnaire was designed to keep objectives of

the study with the aim of collecting important information for the study. The

questionnaire contained both; close-ended and open-ended questions.

Special care was taken to ensure that questions were simple & sequential.

Each questionnaire was consisting of 25 questions & their sub question.

SAMPLE UNIVERSE

The catchment area for conducting the survey was near to store:

Vashi

Juinagar

Nerul

Seawood

Kharghar

SAMPLE SIZE

Data was collected from 200 respondents.

PARAMETERS FOR CHOOSING THE SAMPLE

The respondents chosen were from middle class & upper middle class based

on their locality.


32/46

32

DATA COLLECTION METHOD

PRIMARY DATA

Primary data generally means those raw data or data structures that are

collected first- hand and have not had any previous meaningful

interpretation. For my Summer Internship Project Report, I have collected

such primary data through face to face interview & personal Contact method

with the help of questionnaire.

Area No. of respondent

Vashi 80

Juinagar 15

Nerul 50

Seawood 25

Kharghar 25

Others 5

SECONDARY DATA

The secondary data was collected from catalogues, magazines,records and, websites, related to retail Industry.


33/46

33

LITERATURE REVIEW

The liberalization of the consumer goods industry initiated in the mid-80s

and accelerated through the 90s has begun to impact the structure and

conduct of the retail industry.

The Indian Home Dcor & Furniture retail industry is now beginning to

evolve in the line with the transformation that has swept other large

economies.The interiors industry is currently riding on the boom of the real

estate industry which is the second largest employer in India after

agriculture. The retailing space in this sector has historically been dominated

by the unorganised sector largely by small-sized shops clustered together in

a market. Even the consumers have been historically dependent upon

traditional shops for all their home decor/furniture needs. The most

important change in the retailing pattern that led to the boom in consumer

spending has been the rise of organised retailing.

Many of the world's leading home fashion brands are available in India

through domestic retail outlets. The market for home decor, including

Accessories, hardware, furniture and furnishings is estimated at USD 14.4

billion. Indian consumers are dispersed. Generally, Indian manufacturers use

a three-tier selling and Distribution structure, namely, distributor, wholesaler

and retailer. The gross percentage margin for a retailer is 10 to 15 per cent,

followed by distributor (4 to 5 per cent) and wholesaler (3-4 per cent).

Indian companies sell furniture through distributors as well as sell directly to

the consumers. The larger companies have their own commercial offices and

showrooms in all the large cities in India. Logistics play an important role in


34/46

34

distributing products to all corners of the country. Due to its vast territory

challenges in implementing a smooth supply chain model is really

challenging and hence outsourcing to third parties is very common and an

useful and effective strategy to reach market place just in time, which is the

practice followed by many retailers.

S t y l e S p a R e t a i l o f I n d i a

The objective being to assess the various parameters that influences a buyer

to visit or shop at departmental store thereby contributing to its turnover (in

terms of sales and profits) hence leading to its overall success.

The extensive research is to conclude that whether departmental stores for

Home Dcor & Furniture are soon emerging on the top priority lists,

amongst the shopping spree in Metros, as they seem to derive immense

pleasure of convenience and exposure to variety under one roof, in their

extremely busy lives, when they dont have time for things.

Hence this document entails me through these aspects in great detail, helping

me to understand the concept catchment analysis of retail industry


35/46

35

SURVEY ANALYSIS

Occupation

In the occupation wise distribution it is found that maximum respondents

are from Service sector 38% followed by housewives 24%, 15% are self

employed, 10% belong to business background,10% are student,3% are

other backgrounds.

Monthly Household Income

This question was asked to the respondents to find their income distribution,

so that we will able to target middle & upper middle class customers. 76%

respondents were from selected range i.e. 40,000 & above

30

49

75

20 20

60

10

20

30

40

50

60

70

80

Self

Employ

ed

15%

House

wife

24%Service

38%

Busines

sman

10%

Student10%

Others

3%

11 16 2134

52

66

0

20

40

60

80

Rs. 10000 -

Rs. 20000

Rs. 20000 -

Rs. 30000

Rs. 30000 -

Rs. 40000

Rs. 40000 -

Rs. 50000

Rs. 50000 -

Rs. 60000

Rs. 60000 &

Above


36/46

36

.

Significance of this question was to find how many people have their own

houses. Generally those people who live on rental basis or on company

house dont spend money on buying Home Decor & Furniture Product.

So, 65% respondent lives in their own house.

Q Do you use Internet?

This question was asked to find out that how many people are familiar with

use of internet, so that company can decide its various promotion plan using

internet as a medium of communication so as to reach to the people. Out of

200 respondents 136 do i.e. 68% use internet on regular basis.

Own House65%

CompanyHouse17%

Rental Basis18%

Yes68%

No32%


37/46

37

Q Where do you like to shop from?

This question was asked to study past purchase behavior of the respondents.

In this they were asked that from where were they purchased product like

High end crockery, Premium utensils, Bed linen, Bathroom linen, Home

Decor , Kitchen Appliances from following options Local store,

Departmental stores, Shopping malls, Designer store.

48% respondents told that they purchased High end Crockery & Premium

utensils from shopping malls followed by 35% from departmental stores &

only 12% like to purchase it from Local shop.

49% respondents told that they would like to purchased Bed & bathroom

linen from Departmental store followed by 43% from shopping malls & only

6% like to purchase it from Local shop.83% respondents would like to buy Home decor product from shopping mall

& departmental store followed by 16% from local store.

0

20

40

60

80

100

120

High End

Crockery

Premium

Utinsels

Bed Linen Bathroom

Linen

HomeDcor Kitchen

Appliances

Unbranded Shop Departmental stores Shopping Malls Designer Shop


38/46

38

45% respondents told that they would prefer to buy kitchen appliances from

departmental store followed by 35% & 19% from shopping mall & local

store respectively.

Q Which departmental store do you frequent for the following?

This question was asked to find frequency of visit of the respondents to buy

product like High end crockery, Premium utensils, Bed linen, Bathroom

linen, Home Decor , Kitchen Appliances from following options Local

store, Departmental stores, Shopping malls, Designer store.

55% respondents told that they visit to various store between 3 to 6

months & only 60% after 6 month & more to buy High end Crockery

Respondents told 75% of them visit to various store between 3 to 6

months & 16% visit after 6 month & more to buy premium utensils

0

10

20

30

40

50

60

70

80

90

100

High End

Crockery

Premium

Utinsels

Bed Linen Bathroom

Linen

HomeDcor Kitchen

Appliances

Once in a month Once in 3 mths Once in 6 mths Once in a year Morethan a year


39/46

39

Nearly 94% respondents told that they visit to various store between 3

month to 1 year rather than once in month to buy bed & Bathroom

linen product.

Nearly 67% respondents told that they visit to various store between 6

months to 1 year rather than before 6 months to buy Home Decor

product.

Nearly 61% respondents told that they visit to various store after 1

year to buy kitchen appliances.

Why do you go to following stores?

This question was asked to respondents for finding out various reasons to

visit this store. Many of the respondents didnt respond to this question as

almost none of them were aware about these stores.

Have you heard of Home Stop?

This question was asked to the respondents to find awareness about

existence of the HomeStop store in Navi Mumbai. As its newly open store,

Yes38%

No62%


40/46

40

62% people are unknown about the existence of the store.

Q Would you like to recommend us to others?

88% respondents were ready to recommend HomeStop to others & 12%

were reluctant to recommend.

Q Would you like to Visit our Home Stop?

85% were ready to visit to the HomeStop.

Yes88%

No12%

Yes85%

No15%


41/46

41

FINDINGS

With this study it is found that the customers prefer to purchase home

dcor & furniture items from Departmental store & Shopping Malls as

compared to Local and Designer shop

During the study it was clarified that while making purchasing

decision ,customers consider the factors like Proximity, Variety, Price

considerably compared to Parking Space, after sales service

Most people prefer to go for shopping with their spouse & childrenrather than Mother , Father or relatives

Majority of the people know about Shopperstop but they dont know

about HomeStop & also they are unaware that HomeStop is sister

concern of Shopperstop.

Majority people would like to recommend HomeStop to others but

just a few of them know about HomeStop.

In this study it is found that, after knowing HomeStop is sister

concern of Shopperstop, almost all people showed their interest to

visit HomeStop.

During study it was observed that the upper middle class & upper

class customers prefer to purchase branded home dcor & furniture

product compared to lower class & Middle Class customer


42/46

42

In this study it is also found that most of the people visit the shopping

mall after 3 to 6 month for specifically buying the product like High

end crockery, premium steel utensils, feather pillows and fine bedding

bed linen and furnishing, bathroom linen.

Majority of the people would like go to shopping malls for buying the

product like High end crockery, Premium utensils rather than

departmental stores, but when its comes to buy the product like Bed

linen, Bathroom linen they would prefer departmental or shopping

mall rather than local stores.


43/46

43

RECOMMENDATION & SUGGESTION

Most of the people prefer to visit departmental store or Shopping malls

which are nearer to their areas. So based on development of area

company should open more number of stores.

During study it was observed that Majority of the people have their

own house in Navi Mumbai. So they dont mind spending their money

purchasing Home Dcor & Furniture Product.

As many of the people dont know about HomeStop, Promotional

activities like Advertising, Discounts etc. has to be done on a large

scale.

As many people dont know about HomeStop along with its

competitor, so company can have advantage to become pioneer inHome Dcor & Furniture sector.

People often repurchase Home Dcor & furniture Products after a

minimum period of 6 month, so company should expand their customer

base through various promotional activities in order to maintain &

maximize the profit for longer period of time.

Most of the people know about Shopperstop, also loyal customer base

of Shopperstop is more compared to HomeStop. If company is able to


44/46

44

pull these customers, it can become major plus point for the HomeStop.

If company can do tie ups with well establish interior Decorator, it

would lead to new area of development for HomeStop. As these peoplecan recommend HomeStop products to their clients.

People yet dont know about international or national brand available in

Home Dcor & furniture Sector, company should develop its own

brand simultaneously along with expanding the business.


45/46

45

BIBILOGRAPHY

WEBSITES:

www.imagesretailing.com

www.reportbuyer.com

www.reportbuyers.com

www.thirdeyesite.in

www.shoppersstop.com

www.indiabiznews.com

www.fashion2fibre.com

www.indiainfoline.com

www.equitymaster.com

www.economywatch.com

www.google.com

BOOKS:

Research Methodology C R Kothari

MAGAZINES

Business World

The Indian Dream

Business & Economy


46/46

Retail Projrct Des

Documents

Transcript of Retail Projrct Des