CHAPTER � 2

LITERATURE REVIEW, RESEARCH DESIGN AND METHODOLOGY

LITERATURE REVIEW
Retail supply chain is a contemporary and evolving field which is a culmination of
two different areas of management, namely, supply chain management and retailing.
Even though there are many refereed papers in the area of supply chain management
and retailing, there are not many research papers/articles in the area of retail
supply chain, especially food retail. Moreover, most often the research papers
cover a specific topic such as the relevance of Radio Frequency Identification
(RFID) systems in food supply chain, customer behaviour in a food and grocery etc.
In India, supply chain management with respect to organised retail is gaining
importance of late only. And scouring for research papers in the area of food
retail supply chain with reference to Indian context is a herculean task. In spite
of the paucity of literature in the specific field, a humble attempt is made to
unearth the research papers/articles relevant to the research study.

Retail Supply Chain

The study by Bourlakis, Michael and Bourlakis, Constantine (2006)32 focussed on the
integration process of retailer�s information technology strategy with logistics
strategy and to find out those aspects of the retailer�s distribution and
operational performance that are mostly influenced via that integration.
The findings show that logistics and information technology strategies are
developed and implemented in a parallel way by both local and multinational food
retailers. A financial ratio analysis carried out for these firms suggests that
multinational firms possess greater operational efficiency at both secondary and
in�
32 Bourlakis, Michael and Bourlakis, Constantine (2006), �Integrating logistics and
information technology strategies for sustainable competitive advantage�, Journal
of Enterprise Information Management, Vol. 19 No. 4, pp. 389-402.
store distribution operations compared to domestic firms. This is largely
attributed to the integration of logistics and information technology operations.
Multinational firms superior operational efficiency also contributes for a higher
profitability performance.
Leigh Sparks (2006)33 gave a detailed account of the evolution of retail supply
chain management in his paper. He discussed a number of changes that are taking
place in modern retail supply chain in direct response to the changing demands of
consumers. He also explained how these changes prompt a number of implications for
the management of the retail supply chains.
That logistics is an important component of modern supply chain management needs no
emphasis. Logistics may be external or internal to the retail outlets. Kotzab
(2005)34 shows the importance of logistics in (instore) an outlet.
Through his empirical study, Kotzab proves the importance of instore logistics as a
key determinant on the success of retail business. In the model, he has included
the logistics processes that are carried out within a retail outlet ranging from
incoming dock to the checkout as the in-store logistics.
As part of the study, Kotzab interviewed 202 store managers from three different
kinds of stores namely supermarkets, small hypermarkets and large hypermarkets.
Seyed-Mahmoud Aghazadeh (2004),35 in his paper explores ways of improving logistics
and distribution supply chains of the food retail industry. The paper explains the
concepts of logistics and supply chain as well as the new
33 Leigh Sparks, �Changing Scenario � In tune with consumer demands, retail
logistics and supply chains are undergoing major changes�, Retail Biz, June 2006,
pp 21-23.
34 Herbert Kotzab, Frederiksberg and Christopher Teller (2005), �Development and
Empirical Test of a grocery retail instore logistics model, British Food Journal,
Vol. 107 No. 8, pp. 594-605.
35 Seyed-Mahmoud Aghazadeh (2004), �Improving logistics operations across the food
industry supply chain�, International Journal of Contemporary Hospitality
Management. Volume 16 No. 4, pp 263-268.
challenges in the food industry. The paper also discusses the successes and
failures of the industry. The results reveal slow progress in accomplishing the
goals of leaner supply chains and easier distribution. The study discusses how
consumer driven, time-phased planning provides solutions to these challenges such
as including the consumer in the supply chain planning process, managing product
life cycles, promotional planning, planning for seasonal products, integrating with
category management, determining cost-effective supply channels and planning
capacities at the store level.36

Shopping behaviour
Shopping behaviour is an important phenomenon. The next two papers discuss the
shopping behaviour of the consumers.
Customers usually buy their requirements once a month (regular purchase) and also
when they exhaust requirements (emergency purchases). In his research paper,
Nordfalt, Jens (2009)37 views shopping trip as either a (more or less) contingency-
dependent construction or as the execution of a well-defined behaviour and proves
that larger (major) trips are more well defined, whereas smaller (fill-in) trips
are found to be largely contingency dependent constructions.
Bawa Kapil and Ghosh Avijit (1999)38 present a model of shopping behaviour based on
the assumption that households seek to minimize the travel cost associated with
shopping and the cost of holding goods in inventory. They prove a point that the
relationship between household characteristics and shopping behaviour can be fairly
complex � for some households shopping may have a recreational aspect while for
others it may compete directly with wage-earning activity.
36 �Improve Profits, Competitiveness & Satisfaction with a 'High Performance'
Retail Supply Chain�, Nuthink, Inc. 2001.
37 Jens Nordfalt, �Unplanned grocery purchases: the influence of the shopping-trip
type revisited�, Journal of Consumer Behaviour, Volume 8, 2009, pp 1-13.
38 Bawa Kapil and Ghosh Avijit (1999), �A Model of Household Grocery Shopping
Behaviour�, Marketing Letters, Volume 10 No. 2, pp 149-160.

Private Labels
When customers buy their requirements they buy both branded as well as private
labels. The first paper presents the growth of private labels in different
countries and the factors influencing the growth of private labels. The second
paper tries to distinguish international, national or regional private brands. The
paper gives an account of the national brands and the private labels. The third
paper gives a new dimension to the customer�s buying behaviour of private labels.
The growth of private labels is enormous over the past few years in many countries
and in particular, countries such as Germany, Belgium, the UK, Austria and Spain.
The private labels amount to nearly 40% in these countries. Retailers resort to
produce their own private labels because of high margins, to outsmart the national
brands, to gain control over shelf space, to introduce lower prices to consumers by
controlling the costs and to gain bargaining power with manufacturers etc.
(Altintas et al, 2010).39
Walsh, Gianfranco and Mitchell, Vincent-Wayne (2010)40 observed that private label
brands enjoy growing popularity and are increasing in both their quantity and
quality, they continue to attract the attention of scholars and practitioners. One
major shortcoming of previous research is that it focuses on price as the dominant
driver of buying intentions. The findings of the study reveal that brand
consciousness and attitude instead play a role on the intention to buy private
label brands.
Cheng et al (2007)41 research study concentrates on the question how do customers
perceive the differences between national brands, international private labels and
local private labels? The study finds that national brands lead private
39 Murat Hakan Altintas, Serkan Kilic and Gokhan Senol (2010), �Strategic
objectives and competitive advantages of private label products -Manufacturers�
perspective�, International Journal of Retail & Distribution Management Vol. 38 No.
10, pp. 773-788.
40 Walsh, Gianfranco and Mitchell, Vincent-Wayne (2010), �Consumers� intention to
buy private label brands revisited�, The Braybrooke Press Ltd. Journal of General
Management, Volume 35, Issue 3.
41 Cheng J M, Chen L S, Lin J Y and Wang E S (2007), �Do consumers perceive
differences among national brands, international private labels and local private
labels? The case of Taiwan�, Journal of Product & Brand Management Vol. 16 No. 6,
pp. 368�376
labels on most dimensions of customer perceptions and the study finds very little
difference in consumers� price perceptions between national brands and
international private labels. However, in the case of convenience goods,
international private labels are found superior in quality compared to local
private labels and consumers are willing to pay more for the former. At the same
time, with respect to shopping goods even though they find the international
private labels are superior in quality than the local private labels, they are not
willing to pay more for the same.
Miranda M J et al (2006)42 in his research paper brings forth the effect of stock-
out on the behaviour of the customers in buying. He studied the effect of stock-out
on buying behaviour of the customers, and found that the age, family size and the
kind of customers determine whether the customer goes for variant of the same brand
or prefers a different brand or obsessive enough to go for the same brand in
another outlet. Also, the paper suggests the strategies for the retailers to be
followed to overcome the situation such variances in customer preferences.
Customers habits are changing. While the customers by and large make purchases by
visiting the retail chain, some also buy online. The following paper lists the
parameters that influence online customers.
Online grocery shopping by consumers was studied by Morganosky M.A. (2000).43 The
study found that the online users are of age less than 55 years. Convenience and
time saving are the most important factors influencing them to go for online
purchase. Some attributed the physical inability or physical constraints as the
reasons to go for shopping online.

Supply Chain Efficiency

Supply chain management holds the key for success in modern retailing. As such, it
is appropriate to know how the supply chain affects the retailers. The
42 Miranda M J, Kandiah J (2006), �Family Size Underpins Grocery Shoppers�
Behavioural Response to Stock-outs�, Journal of Marketing Channels, Vol. 14(1/2),
pp. 97-115.
43 Morganosky, M. A. and Cude B. J. (2000), �Consumer response to online grocery
shopping�, International Journal of Retail & Distribution Management, Vol. 28 No.
1, pp. 17-26.
following two papers bring forth the efficiency of supply chain in enhancing the

store image.
Avirat Sonpal (2006)44 states that retail supply chain efficiency is all about
learning what the customer needs and then actively working to fulfil those needs
through sourcing, merchandising and product development mechanisms. The author
enumerates the benefits of effective supply chain management in retailing.
Steckel (2004)45 using simulation models shows how the changes in the order and
delivery cycles, availability of shared Point-of-sale (PoS) information and the
pattern of customer demand affect the supply chain efficiency. The paper is based
on �beer game� simulation. He proves that speeding up of the cycle time is always
beneficial. But at the same time, the benefits of sharing of PoS information depend
on the nature of demand pattern.
Gibson, Brain et al (2009)46 observe that the retailers are more reliant than ever
on supply chain management for organizational success. The focus of SCM is to cut
down inventory levels while maintaining high in-stock availability, reducing
transportation expenses in the context of fuel price volatility. Efforts are well
under way to link SC strategies to organizational plans. The best performing
retailers have developed a culture in which the majority of employees share a core
belief in the mission of the organization, and are committed to helping the
organization achieve that mission. These retailers have developed formal training
programs to suit the needs of rank and file employees, along with the managers.
The importance of supply chain inventory management technique Vendor Management
Inventory (VMI) is reinforced by Waller M (2001). According to him,
44 Avirat Sonpal (2006), �A Valuable System � Different aspects of managing the
supply chain in retail�, Retail Biz, December, pp. 37-38.
45 Joel H. Steckel, Sunil Gupta and Anirvan Banerji (2004), �Supply Chain Decision
Making: Will Shorter Cycle Times and Shared Point-of-Sale Information Necessary
Help?�, Management Science, Vol.50, No.4, pp. 458-464.
46 Brian J. Gibson, C. Clifford Defee, Wesley S. Randall (2009), �The State of the
Retail Supply Chain: Results and Findings�, Retail Industry Leaders Association
(RILA).
VMI is one of the most widely discussed partnering initiatives for improving multi-
firm supply chain efficiency. The research article showcases the effect of VMI on
improved service and reduced cost in an organisation.47
Using New Jersey as a case study, this paper investigates the challenges faced by
food retail stores. Policy recommendations proposed by industry representatives for
improving the business climate are also presented. Although the case is New Jersey
specific, many of the issues discussed in the paper may be relevant elsewhere. The
findings can be helpful in identifying broad categories of factors affecting the
vitality of the industry and in designing investigative research into problems
facing the food retail industry (Adelaja, A.O, 1999). 48

Store Attributes
Reutterer, Thomas and Teller, Christopher (2009)49 paper identifies store format
attributes that impact the store format choice when consumers conduct fill-in or
major trips to buy groceries. By doing so, the authors take into consideration that
consumers patronise multiple (store based) formats depending on the shopping
situation operationalised by the type of shopping trip. The results reveal a
considerable moderating effect of the shopping situation on the relationship
between perceived store format attributes and store format choice. Consumers�
preference is significantly higher for discount stores and hypermarkets when
conducting major trips. In contrast, supermarkets are preferred for fill-in trips
in the focussed retail market. Merchandise-related attributes of store formats have
a higher impact on the utility formation regarding major-trips, whereas service-and
convenience-related attributes do so with regard to fill-in trips.
47 Walter M et al (2001), �Vendor Managed Inventory in the Retail Supply Chain�,
Journal of Business Logistics.
48 Adelaja, A O. et al (1999), �A note on challenges facing food retail stores: The
case of New Jersey�, International Journal of Retail & Distribution Management,
Volume 27. No.
8. pp. 302-310.
49 Reutterer, Thomas and Teller, Christopher (2009), �Store format choice and
shopping trip types�, International Journal of Retail & Distribution Management,
Vol. 37 No. 8, 2009, pp. 695-710.

Retailing in India

The following three papers give an account of linkages between economic growth and
consumer spending pattern, the retail distribution network and the changing Indian
retail sector.
Srivastava (2009),50 in his research brings forth the retail scene in India. He has
extensively used the reports of Mckinsey, HSBC, Technopak, CII and others to
capture the growth of organised retail and shopping malls in India. Also, he gives
an account of the different organised formats promoted by the Indian business
houses. He finds that the malls are more developed in Northern and Eastern part of
India. Malls are becoming centre for outings for the families and they spend about
1-3 hours in malls. Food, groceries and apparel purchases by customers contributed
to 52 per cent of these organised retail formats in 2006. Srivastava further
elaborated on the time spent by the customers in the malls and how the food courts,
play places, etc in the malls are becoming the attractions for family outings.
According to him, the small retailers in order to compete and to retain their
customers offer better service by means of credit and home services.
Sengupta A, (2008)51 discusses the birth of the first supermarket, Nilgiri�s
established in Bangalore in 1971. The emergence of modern retail business in India
has a history spanning over 30 years. The paper is on food and grocery retail,
biggest in India and the author tries to detail the drivers of revolution and
growth focusing on the role of manufacturers, retailers and consumers.
Chetan Ahya (2006)52 argues that the rising scale of organized retail distribution
network and increasing competition will force players to focus on restructuring the
whole supply chain to improve productivity and to provide a better deal to the
customers.
50 Srivastava, R.K. (2009), �Changing retail scene in India�, International Journal
of Retail & Distribution Management, Vol. 36 No. 9, pp. 714-721.
51 Sengupta A (2008), �Emergence of modern Indian retail: an historical
perspective�, International Journal of Retail & Distribution Management, Vol. 36
No. 9, pp. 689-700.
52 Chetan Ahya, �The Retail Supply Chain Revolution�, Economic Times, 7th December
2006.
He is critical of the organized retail chains ability to offer customers the right

price for staple vegetables during the crisis situation because of disorganized
supply chain. He concludes that unavailability of cheap funds for investment in the
back-end infrastructure for aggregating the fresh produce, grading, packaging and
storing in cold storage are the primary reasons. Similarly, FICCI is also of the
opinion that the long chain of intermediaries and insufficient price-discovery
mechanisms were the reasons for high price mark-ups between farmers and consumers.
FICCI suggest farmers need to be encouraged to form farmer cooperatives and
aggregate the produce, which could be directly sold on electronic spot exchanges or
to retailers.53
Modern retail has a huge potential to not only benefit from India�s increasing
consumption demand but also create demand for value added products. Structured
employment and better life for people are the two major benefits that modern retail
is looked upon. Speeding up the modernization process is extremely vital as the
retail sector has the ability to create about 10 million additional jobs in the
next five years (2010-15). Over one million sq. feet of quality retail and
entertainment space with annual revenue of Rs. 12,00,000 crore, a whopping Rs
1,30,000 crore in annual Value Added Tax (VAT) collection and over Rs 12,000 crore
in additional income tax revenues to the exchequer are expected to accrue in the
next five years according to Mr Amitabh Taneja, Chief Convenor, India Retail Forum
2010.54
According to Arvind Singhal, Chairman, Technopak, modern retail and food services
in India are at a very early stage of evolution. They have to keep pace with the
changes in demography and consumption patterns. Changes in the format size,
categories, merchandise mix or brand positioning are the need of the hour.
Accordingly, some of the established chains like The Future Group, Spencer�s Retail
etc, are in the revamp mode. They are rebranding their stores, restructuring
categories and formats to catch up with the changing landscape of modern retailing
and to cater to the emerging niches.55
53 Vishal Krishna, �Retail -Disorganised Supply Chain�, Businessworld, 31st January
2011.
54 �Expanding Business Opportunities�, The Economic Times, 14th September 2010.
55 Writankar Mukherjee and Sreeradha D. Basu, �Retailers revamp for more business�,
The Economic Times, 15th September 2010.
Driven by the growth of organized retail coupled with changing consumer
habits, food retail market size in India is set to double to $150 billion (around
Rs
6.7 lakh crore) by 2025. Therefore, Indian food retail sector, which is currently
estimated at $70 billion (around Rs 3.13 lakh crore) has a long way to go in the
years to come. Evolution of innovative food processing capacity, emergence of
organized retail and change in consumption patterns along with fast changing
demographics and habits are expected to fuel the next growth trajectory for the
food industry in India, according to KPMG. Though the expectations are high about
the growth prospects of the sector, it is a paradox that the growth in real terms
is crippled by the sub-optimal supply chain management largely caused by low
investments in the sector.56
In the days to come, almost all sales will be captured through Personal Digital
Assistant (PDA) or computers at the retail outlet and transmitted to the suppliers
as being done by leading companies such as Dell and Wal-Mart. This will definitely
bring down the wastages in supply chain. The logistics cost which is currently at
12 per cent of GDP could go down by about 1 per cent as a result of application of
IT.
The cycle time of supply chain operations from manufacturing to retailers in terms
of information flow which used to be about 30 to 35 days in the early 1990s has
been brought down to almost one or two days in the 2010s. This was made possible by
using various hardware and software technologies and communication links at various
levels such as the mobile network, satellite communications, personal digital
assistants, automated tracking devices, vehicle tracking systems and so on.57
56 Press Trust of India, �Food Retail Sector to double to $150 billion by 2025:
KPMG�, Business Line, 8th December 2010.
57 Murali D, �Logging into improved Logistics�, In conversations with Mr. V.
Sanjeevi, MD, eLogistics P Ltd., Business Line, 14th February 2011.

Shopping behaviour

A recent research study reveals some important insight about an Indian shopper.58
The customer: 1. keeps a brand in mind but buys the brand that gives him value 2.
is more decisive than the Chinese about the brands they want to buy
3. confidence on the shopkeeper is high 4. takes time to read the information and
to make sure that he gets what he wants. Also compares products before deciding
5. usually takes whatever the storekeeper suggests if preferred brands are not
available 6. does not look for promotions because most of the shopping is routine
7. enjoys shopping 8. likes reading the ingredients and product benefits before
buying 9. will buy a slightly pricey brand if it can give him an experience/
feeling like no other.
Goswami Paromita (2009),59 seeks to understand whether Indian consumers are likely
to move from traditional kirana stores to large organized retailers while shopping
for groceries. Major findings show that customer patronage to grocery stores is
found to be positively related to location, helpful and trustworthy salespeople,
home shopping, cleanliness, promotional offers, quality and negatively related to
travel convenience. kiranas do well on location but poorly on cleanliness, offers,
quality, and helpful trustworthy salespeople. The converse is true for organized
retailers.

Retail Supply Chain in India

According to Rajesh Sinha,60 Chief Operating Officer (COO), Godrej Consumer
Products, focus on supply chain improvement based on a replenishment-based model
rather than a forecast-based mode enables companies to increase sales by 20 to 30
per cent in three to six months. In two years, a company can register a 5 per cent
increase in gross margin. The
58 Economic Times (ET) Brand Equity, �What Lies Beneath?�, The Economic Times,
August 08, 2010.
59 Goswami, Paromita and Mishra S. Mridula (2009), �Would Indian consumers move
from kirana stores to organized retailers when shopping for groceries?�, Asia
Pacific Journal of Marketing and Logistics, Vol. 21, No. 1, pp. 127-143.
60 Business Line Bureau, �Supply Chain must �get� as much �focus� as marketing�,
Business Line, April 22, 2011.
effectiveness of advertising or promotions increases with increase in supply chain
efficiency. Strategic sourcing can reduce expenses by 10 to 30 per cent.
Collaborative models with multiple suppliers are the order of the day.
Vishwanadham N (2010)61 analyses the deficiencies in the Indian supply chain in the
food retail. The most important problem associated with the Indian food industry is
the inefficient supply chain as a result of which about 20 per cent of the food
produce worth Rs. 10,000 crore is wasted. Only through developing an efficient
supply chain can India�s population have access to affordable superior-quality food
produce while ensuring remunerative prices to the farmers.
The food supply chain is complex, with perishable goods and numerous small
stakeholders. In India, the infrastructure facilities connecting these components
are very weak. Each stakeholder � farmers, wholesalers, food manufacturers and
retailers work in silos. Demand forecasting, data integration, financial flow
management, supply-demand matching, collaborative forecasting, information sharing
and synchronisation of the movement of goods through efficient transport scheduling
have to find their way into the food supply chain.
Manufacturers, wholesalers, distributors and retailers can achieve tangible
benefits through innovative network and inventory optimisation. The benefits may
include enhanced demand intelligence, improved sales and services, optimised
inventory levels, increasing profitability and margins and enhanced trading partner
collaboration. Inventory management helps reduce purchasing and inventory costs;
connect inventory control, purchasing and sales order processing with demand
planning; reduce costs, improve cash flow and ensure that the right stock is
available whenever needed.62
Cut-throat competition in India�s organised retail industry has given way to
harmony. The retailers have formed a rainbow coalition that will align their source
operations and share private labels, logistics, warehouses and hiring details on a
61 Vishwanadham N (2010), �From farm to fork�, Retail Biz, July 2010.
62 Debjani Baidyaray, �Selling it right � Effective supply chain management hold
the key to successful operations for retailers�, Retail Biz, October 2010.
transactional payment basis. The retailers may fight on the front-end but
collaborate on the back-end � an approach that would help retailers focus their
resources on the front-end to meet the customer expectations. The move essentially
focuses on how to cut costs in supply chain and third party manufacturing. Right
now, the supply chain cost is about 12-50% across product categories.63
India is the world�s second largest producer of fruits and vegetables. But it loses
between 30% and 40% of its fresh produce annually due to wastage along the supply
chain. India wastes more fruits and vegetables than it consumes. Gaps such as poor
infrastructure, insufficient cold-storage capacity, unavailability of cold-storage
in close proximity to farms and poor transportation infrastructure are the
contributing factors. To overcome the debilitating impact of wastage, it is crucial
that three supply chain issues are addressed. They are reduction of food miles,
development of truly world-class supplier and fixing the infrastructure.64
Sahay B.S. (2006)65 studied the current state of supply chain management practices
followed by Indian organisations in an attempt to identify the important areas that
need to be addressed in order to gain competitive advantage. The findings reveal
that most of the Indian organisations have aligned their supply chain objectives
with their business objectives. They are now on aligning their processes and
management focus. The author concludes that the enhanced level of competitiveness
would require Indian organisations to manage the three-dimensional (supply chain
objectives, supply chain processes and management focus on supply chain activities)
alignment.
For organised retail, while the last decade has been one of experimentation, the
coming decade would be that of consolidation. The retailers have been
63 Kala Vijaraghavan & MV Ramsurya, �Retail Cos cuts costs by uniting back-end
work�, The Economic Times, 10th August 2009.
64 Raj Jain, �A wake-up call to maximise supply chain efficiencies�, The Economic
Times, 12th
October 2009.
65 Sahay, B.S. Gupta, Jatinder N.D. and Ramneesh Mohan (2006), �Managing supply
chains for competitiveness: the Indian scenario�, Supply Chain Management: An
International Journal, Vol. 11, No. 11, pp. 15�24.
dabbling with a variety of formats, supply chain configurations, product portfolio,
project financing, manpower planning and so on. Towards the end of the decade,
confidence level amongst the organised retailers on how to really tap the Indian
opportunity has increased. However, the key issues to be addressed remain are
battle hardened retailers, growing dominance of private labels, supply chain
innovations, enabling infrastructure and policy liberalisation.66
Increasing uncertainty of supply networks, globalization of businesses,
proliferation of product variety and shortening of product life cycles have forced
Indian organizations to look beyond the four walls for collaboration with supply
chain partners. Considering this scenario, a research study was conducted by Sahay
B.S. (2003)67 to study the supply chain practices followed by the Indian industry.
Sahay focused on the four major supply chain dimensions namely supply chain
strategy, supply chain integration, inventory management and IT. The paper
recommends that Indian industry need to align supply chain strategy with business
strategy, streamline processes for supply chain integration, form partnerships for
minimizing inventory and focus on infrastructure and technology deployment to build
an India-specific supply chain.
The following tables present in brief the studies conducted by different agencies,
consulting firms, institutions and centres of excellence on Indian retailing and
retail supply chain.
A C Nielsen on Retail and Retail Supply Chain
Title Issue Focus Area/Key Result
Global Online Consumer Confidence, Concerns and Spending Intentions A Nielsen
Report, July 2011 The report is based on the survey conducted between May 20 and
June 7, 2011 covering more than 31,000 consumers in 56 countries throughout Asia
Pacific, Europe, Latin America, the Middle East, Africa and North America. The
report shows that the Indian consumers (with an index of 126) remained most
positive and have consistently reported the highest consumer confidence scores
since Nielsen consumer confidence tracking began in 2005.

66 Karthik Ramamurthy and Pratik Puprediwar, �The New Level�, the strategist,
Business Standard, 14th February 2011.
67 Sahay B.S. and Ramneesh Mohan (2003), �Supply chain management practices in
Indian industry�, Distribution & Logistics Management, Vol. 33 No. 7, pp. 582-606
Title Issue Focus Area/Key Result
However, the few unpleasant factors associated with higher prices spurred by
inflation, and general economic volatility across the globe in terms of
recessionary trends are dampening the Indian consumers spirit as well with respect
to spending and could be gauged by the slight dip in the purchases of some of the
consumer goods.

A.T. Kearney on Retail and Retail Supply Chain

Title Issue Focus Area/Key Result

The Case for "Compact Hypermarkets" in India Debasish Mukherjee & Hemant Kalbag,
A.T. Kearney, 2011. The analysis suggests that organized retailers use smaller
formats called �compact hypermarkets� which can tap India's significant urban
retail opportunities. Compact hypermarkets are 4,000-to 6,000-square�foot stores;
offer the amenities of hypermarkets but are smaller and easier to navigate, and
they can compete head-to-head with the kiranas.
Indian Retailers: Improving category management Hemant Kalbag, Debasish Mukherjee
& Subhendu Roy, A.T. Kearney, 2010 The authors propose four guiding principles to
capture top and bottom line improvements while keeping the customers happy. They
are i. Take a Customer Focus ii. Define category role iii. Watch the competitors
and suppliers and iv. Strengthen operations and performance.
Measure Twice, Cut Once � Planning, attention to details, and tested programs build
excellence in retail operations A.T. Kearney, 2010 This study provides a
blueprint for achieving an operational excellence. This study gives a four stage
framework consisting of i. Driving store value through voice of the customer,
channel strategy and store business planning ii. Delivering core store value
through supply chain interfaces and store operations iii. Enhancing store value
through store life-cycle management, operating expense control and store technology
and finally iv. Using the learning store for roll out.
Unleashing Laura The article gives a detailed picture about shopper
the shopper Gurski, marketing, vision, focus, approach and philosophy. It
marketing Melanie details about the three gears namely sales-marketing
engines Schmidt et al, 2009 connectivity, insights-driven decision making, and
in-store brand activation. It aims to differentiate and activate the consumer
products in an increasingly competitive retail environment.

Title Issue Focus Area/Key Result

Retail in India: Getting organized to drive growth Confederati on of Indian
Industry (CII) � A.T. Kearney Report, November 2006 The report is divided into
three parts namely: i. Retail landscape in India, ii. Key issues in the way of
retail growth in India, iii. Key imperatives. The first part deals with the status
of organised retail in India, its growth, category wise market share in organised
retail and different retail formats. The key issues related to the growth include
underdeveloped supply chain, inadequate utilities, IT infrastructure hurdles,
inadequate real estate hurdles, inadequate human resource, taxation hurdles, supply
base hurdles, limited consumer insights, insufficient government incentives etc.
forms the second part. The third part covers the measures to be taken to overcome
the hurdles listed in the second part. The concluding part details the impact of
recommended changes on the retail sector.

Ernst & Young on Retail and Retail Supply Chain

Title Issue Focus Area/Key Result

Turn risks and opportunities into results � Exploring the top 10 risks and
opportunities for global organizations: Retail sector Olivier Macard and Daniel
Valerio, July 07, 2011 This report is based on the interviews with a panel of
retail sector professionals. The top 10 risks are Low-growth consumer markets,
Regulation and compliance, Inability to control costs/rising input prices,
Inability to benefit from e-commerce, Wrong price image, Supply chain disruptions,
Inability to penetrate emerging markets, Failure to respond to shifting consumer
behaviour, Sourcing and Volatility in commercial real estate markets. The top 10
opportunities are Rising emerging market demand and rise of global middle class,
New marketing channels and social media, Competitive differentiation via CSR and
green branding, Multichannel approach, Demographic change, Private label, Launching
new products and services, Global urbanization, Competitive differentiation via
local branding and Enhancing efficiency in the SC.
Flavours of FICCI � According to the report, the Indian food industry is
Incredible Ernst & poised to grow by a whopping 42.5% from US$ 181
India � Young billion (Rs 8,43,460 crore) in 2009 to US$ 258 billion
Opportunities Report, (Rs 12,02,280 crore) by 2015 and by 76% to US$
in the Food October 24, 318 billion ( Rs 14,81,880 crore) by 2020, throwing
Industry 2009 up huge opportunities for investment across the entire value chain.

Title Issue Focus Area/Key Result

Growth in size of the middle to very rich class is projected to increase at more
than 300% between 2005 and 2015. During the same period the proportion of young
population (age group 15-25) in India is expected to grow by 11%. This will lead to
an increasing demand for food products to meet demands of convenience, variety,
health and a changing palate.
Winning with Pinakiranjan This survey was conducted jointly by FICCI and
Intelligent Mishra, E&Y. It highlights the key drivers of retail, drivers of
Supply Chains Ernst & Young, December 17, 2007 change in supply chain, the
paradigm shift from the traditional supply chain towards adoptive and real-time
supply network with bi-directional information flow, retail supply chain challenges
and mitigation strategies.

FICCI on Retail and Retail Supply Chain

Title Issue Focus Area/Key Result

Challenges faced by Retail Industry in India Ketan Dewan, Footfalls, June � July,
2010, Volume 4, Issue 7 The article focuses on the following issues i. competition
from local kirana stores ii. knowing and understanding the target customers iii.
supply chain management (SCM) issues such as inventory level at stores and
distribution centre, demand forecasting, logistics infrastructure, cold storage
chains and quality transportation and procurement of goods, iv. lack of trained and
skilled manpower and v. shrinkage. Also, the article discusses strategies to
overcome these issues and challenges.
RFID Technology in Retail Supply Chain Ravi Mathur and Gopal Valecha, Footfalls,
February-March 2010, Volume 2, Issue 6 This article focuses on the tracking
technology RFID and its different standards. It also gives a detailed description
about benefits of RFID in achieving supply chain efficiency such as increasing
visibility, lowering operating costs, real-time information processing, reducing
stock-outs and increasing the competitiveness.
Can modern Raghav This article identifies interesting things that kiranas
retail learn Gupta, do that could be adapted by modern retail for
from the Footfalls, increased business success, namely: i. Customer
humble March � Relationship Management ii. Dynamic Merchandising
kirana? April 2009. and iii. Efficient store operations.
Organised Retail: Unfinished FICCI Retail Report , 2007. This report is based on
information collated from key industry players, trade associations, government
agencies, trade publications and various industry

Title Issue Focus Area/Key Result

Agenda and Challenges Ahead sources. It gives a detailed view of retail global
scenario vis-a-vis Indian retail market. It discusses changing real estate
scenario, requirement of finances in retail, varied unfinished agenda in retail
such as simplifying tax structure, single window clearance, FDI in retailing etc.
The report covers in detail the retail supply chain management issues in India.

KPMG on Retail and Retail Supply Chain

Title Issue Focus Area

Sectoral KPMG This report highlights the current and future scenario of
Snippets � Report, the retail market in India. It also presents a picture of
India Industry April Indian companies� strategic actions to cope with the
Information 2009. current economic stress. In the days to come, the Indian retail
is going to focus on value retail and food retailing, the study reports. Also,
there will be more concentration in Tier II and Tier III cities. According to the
study, the companies will invest more in supply chain efficiencies and emphasizes
the fact that there is a long term outlook for retail in India and this sector
continues to be attractive and there are huge prospects for expansion.
Indian Retail: KPMG This report brings forth the impact of slowdown in
Time to Report, different parameters of Indian retail sector. Also, it
change lanes March 2009 proposes a bouquet of strategies for the retailers to
cope up with recession. According to the report, the recession has affected the
footfalls, operating margin, put pressure on the liquidity and the rentals
increased etc. It also suggests the ways to build a competent retail supply chain
management system.
Skill gaps in KPMG This report is the outcome of the CII Logistics Summit �
the Indian Report, 2007. It details the status of the logistics sector in India,

Logistics 2007 identifies and assessed the skill gaps in this sector, a
Sector: A deeper look at the critical areas, finds the root causes
white paper of the skill gaps and recommends suitable solutions to fill up the
gaps.
Indian retail: on the fast track. Bridging the capability gaps. KPMG Report, 2006
According to the report, there are many drivers contributing to the unprecedented
consumption boom. The report enlists the fastest growing retail segments in India,
organised retail as percentage of FMCG sales by city, experimentation by ITC on
rural retailing, evolution of retail formats, growth of malls etc. It thoroughly
figures different parameters related to supply chain

Title Issue Focus Area

such as supplier integration, supplier maturity, sourcing, fragmentation of supply
chain, technology adoption and usage, private labels etc.

KSA � TECHNOPAK on Retail and Retail Supply Chain

Title Issue Focus Area

Changing India, Changing Consumption , Changing Consumers Arvind Singhal,
Perspective, Volume 3, 2010 The first part of the report lists down the factors
contributing to a dynamic economy. The study forecasts the consumption pattern for
the year 2014. The food and grocery spending continues to be a major component and
it continues to top the categories of consumption. The consumers will shift from
�low-price� platform to �price-plus� platform. There will be a strong increase in
the trend of going shopping as a �family�, the study opines.
Increasing Baqar Iftikar The economic slowdown has significantly increased
Private Label Naqvi and the pace of shift from national brands to private
Share in Madhulika labels or store brands among the organized retailers.
Indian Retail Tiwari, Perspective, Volume 3, 2010 It has increased the private
label sales. This migration is not only linked to price (5-10% less than national
brands), but also to various factors like improvement in product quality,
packaging, presentation and retail experience. The study reports that the rise of
private labels is resulting in many conflicts between retailers and brands owing to
issues like margins, display and shelf space.
India�s Food Vision: The Next Decade Sridhar V. & Nimisha Chhabra, Perspective,
Volume 4, 2010. This paper details the growth prospects of India, followed by key
factors that have enormous importance in increasing demand for food and are
expected to play a major role in the transformation of demand drivers in the growth
of food demand � rising population and incomes, increasing number of nuclear
families and working women and palate & lifestyle changes. It also gives an account
of key issues and challenges in food industry.
India�s Emerging Hot-Spots Veenu Sharma, Perspective, Volume 4, 2010. This
article throws light on the smaller cities becoming nodes of attraction for the
marketers. The infrastructure developments, the changing customers, the ripple
effect of the metros on the cities are contributing to the growth of these cities.
These hot-spots are going to bring to the forefront the next wave of new cities
that the retailers would

Title Issue Focus Area

be interested in looking at in order to gain �first mover� advantage and a foothold
in the market.
Overview Raghav The first part of the research article delves into the
of India�s Gupta, impact of slowdown on consumer confidence, private
Consumer Rohit consumption and organised retail. The later part of
and Retail Bhatiani and the article finds that the EBITDA and ROC for the
Sectors Pranay Gupta, Perspective, Volume 4, 2010. retail sector is about 10-12
per cent, while for the FMCG sector, the numbers are higher. The low level of
returns in retail is primarily due to the high level of inefficiencies at the back
end. Inventory management which is an integral part of any successful retail
operation is currently lacking. A significant amount of capital of an Indian
retailer is blocked in inventory leading to a strain on the balance sheet.
The Indian Anil Rajpal This article looks at how modern retail�s landscape is
Retail and Pragya changing and what can be expected in the near
Landscape: Singh, term. It analyses how some retailers are entering the
Now and Perspective, rebuilding phase with a focus on resizing, relocating
Beyond Volume 1, 2009. and restructuring stores. It also looks at the impact of
consumer product companies investing in traditional retail, outlines the emergence
of collaborative models in retail real estate, and defines the required focus on
retail back-end, i.e. supply chain.
Supply Chain KSA � The report presents an overview of Retail Supply
Challenges in Technopak, Chain Management (SCM) in India. It discusses the
the Indian A quarterly current market size and future estimation; the factors
Retail Sector report, January 2008. affecting organised retail SCM in India,
compares and benchmarks with international retail supply chains. The second part of
the study focuses on supply chain objectives, symptoms and pain areas, strategic
SCM areas and improvement projects for Indian retailers
Changing Retail Landscape in India: Emerging Conflicts and Implications KSA �
Technopak, 2nd November 2007 The presentation is divided into four sections namely
the i. Economic update on India ii. Impact Areas iii. Emerging Conflicts and iv.
Implications for Stakeholders. It gives an insight into the factors influencing the
growth of retail in India.

McKinsey on Retail and Retail Supply Chain

Title Issue Focus Area/Key Result

Building India � Transforming the nation�s Logistics Infrastructure A McKinsey
Report, 2007. This is a comprehensive report that covers the India�s current
logistics infrastructure. The report finds it inadequate to meet the growth
aspirations and presents a logistics infrastructure strategy. The strategy
suggested revolves around the proposal to bring out a National Integrated Logistics
Policy (NILP).
Tracking the Eric D. The study reports the linkage between India�s rapid
growth of Beinhocker, economic growth and its influence on consumers.
India�s middle Dianna The author predicts that in the next two decades,
class Farrel, and Adil S. Zainulbhai, McKinsey Quarterly No. 3, 2007 India will
become world�s fifth largest consumer economy. Consumer spending will quadruple
from about Rs 17 trillion ($372 billion) in 2005 to Rs. 70 trillion in 2025. The
country�s middle class is estimated to grow from about 5 percent of the population
to more than 40 percent, i.e. from 318 million in 2007 to 5,283 million in 2025.
India will become the world�s fifth largest consumer market by 2025 from the 12th
position now. India will witness the rapid growth of its middle class � households
with disposable income from Rs. 2,00,000 to 10,00,000 a year. Food will remain the
single largest category of expenditure and growth in consumption will accelerate
from 3 per cent annually now to 4.5 per cent.

Other Report

Title Issue Focus Area

India in Figures � A ready reference, 2011 Report of the Ministry of Statistics
and Programme Implementat ion, Government of India The report gives authentic
information about population characteristics, economic characteristics,
infrastructure, industry, energy, agriculture, social characteristics and also that
of BRICS countries.
THE RESEARCH PROBLEM

The supply chain has a key role to play in the expansion and profitability of
retailers. Retailing and logistics are concerned with product availability.68 The
retailers must be familiar and adept with the flows of product and information both
within the business and in the wider supply chain. In order to make products
available, retailers have to manage their supply chain in terms of product movement
and demand management. They need to know what is selling in the stores, anticipate
and react quickly to changes in the demand.
The fact that logistics and supply chain management play a decisive role in modern
retailing needs no emphasis. Advanced tools and techniques in the retail supply
chain have led to the improvements in the management of inventory, distribution
networks and vehicle scheduling. Retailers need the timely delivery of merchandise
if they are to satisfy and retain the customers. To quote Newman, If it�s not in
store, you can�t show it! If you can�t show it, you can�t sell it! (Andrew J
Newman, 2007).69 The most significant challenge that impedes the development of an
efficient and modern retail sector is an underdeveloped supply chain.

NEED FOR THE STUDY

The underdeveloped, traditional, and unidirectional supply chain increases
inventory build-up coupled with operational inefficiencies for companies (Business
Line: April 24, 2008).70The spurt in the organised retail business in terms of the
number of retail chains across the country testifies the growing acceptance of the
modern retail format and the shift in the customer preferences from the traditional
kirana stores to huge retail outlets which have made shopping a pleasant
experience. The earlier reluctance to visit the small typical grocery store is
replaced by new enthusiasm and excitement on the part of the 21st century
consumers. The new realities and changing dynamics of the retail trade prompted the
researcher to
68 John Fernie & Leigh Sparks, Logistics and Retail Management, Kogan Page, London
and Sterling VA, 2004.
69 Andrew J Newman and Peter Cullen, Retailing: Environment & Operations, Thomson
Learning, 2007.
70 D. Murali and Kumar Shankar Roy, Biggest Challenge for retail is �underdeveloped
supply chain�, Business Line, April 24, 2008.
examine in detail how issues related to supply chain � the critical success factor
in

the F&G retail format � are addressed. Hence the research topic �Retail Supply
Chain Management in Food and Grocery (A case study of Bangalore City)�.

OBJECTIVES OF THE STUDY

�
To examine the management of logistics and cross-functional drivers of the Food and
Grocery (F&G) retail outlets;

�
To study the management of supply chain processes like the Customer Relationship
Management (CRM), Internal Supply Chain Management (ISCM) and Supplier Relationship
Management (SRM);

�
To assess the degree of competition among the food and grocery (F&G) retail
outlets;

�
To determine the performance of the Food and Grocery (F&G) retail outlets using
different metrics, and

�
To suggest ways and means to improve the supply chain management practices of Food
& Grocery (F&G) outlets.

TESTING OF HYPOTHESIS
H 1: The time and the amount of purchase made by different customer groups (family,
friends and individuals) are different. H 2: Mean of the percentage of sales over
different periods of a month (namely 1st -10th, 11th � 20th and 21st � 30th) are
same. H 3: The number of footfalls at an organised retail outlet is independent of
the location of the outlets H 4: The number of footfalls at an organised retail
outlet is independent of the
size of the outlets H 5: Number of customers for an outlet depends on catchment
area. H 6: Number of customers is independent of the size of the organised retail
outlets.
H 7:

Competition has affected the sales of organised retail outlets. H 8: Distribution

of the sales per square foot of organised retail outlets and the kirana stores are
different.
H 9: Distribution of monthly sales of organised retail outlets and the kirana
stores are different. H 10: Distribution of sales per employee of organised retail
outlets and the kirana stores are different.

SCOPE OF THE STUDY

Retailing in India is gaining momentum over the years. The city such as Bangalore
has great potential for organized food retail. The research study examines the
logistics and cross-functional drivers of supply chain in detail as practised by
the organised retail outlets in Bangalore. Towards that the study identifies the
areas where the outlets are doing better and also enlists the areas where they have
to improve upon. This gives the scope for the operators/owners of the outlets for
enhancing the customer service, product availability, etc.
It also helps the managements of the retail outlets devise appropriate supply chain
strategies to achieve competitive strategic objectives. For planners, the study
gives the insights which will enable them to frame policies, procedures and schemes
to create a congenial environment and impetus for further growth of food retail in
Bangalore.

LIMITATIONS OF THE STUDY

In spite of the efforts undertaken by the scholar, given the vastness and spread of
the city of Bangalore and at times coupled with the reluctance of the respondents
to divulge information wholeheartedly, the researcher has confronted with certain
limitations in the field work. Therefore, like any other project of this magnitude,
the present research study is also not free from some limitations.
�
The focal point of the study is to examine the six supply chain drivers of the food
and grocery outlets/stores in Bangalore City. Therefore, inferences drawn from the
study will have limitation of generalisation of findings.

�
The data analysis, interpretation and inferences are based on the data collected
from the managers, operators and employees of the outlets/stores. Their perceptions
may have personal bias and subjective view points.

�
Food and Grocery outlets operate in a dynamic environment. The
observations and inferences drawn out of the study pertain to the particular period
of time. This would have changed or may change over a period of time.

RESEARCH METHODOLOGY
The Food and Grocery (F&G) retail segment in India is unique. F&G can be broadly
categorised into organised and unorganised retail. The organised retail can be
further categorised into corporate retail chains and individual standalone retail
outlets. For the purpose of the study, the researcher has considered all the three
segments namely, corporate retail chains, standalone retail outlets and kirana
stores.
Also, an attempt is made to ascertain the practices adopted by unorganised sector
(kirana stores) in comparison with organised sector with respect to the adoption of
modern practices.
Table 2.1: Sources of Information
Universe Retail outlets (kirana stores, corporate retail chains and standalone
retail outlets) in Bangalore.
Sampling unit Retail outlets
Sampling Technique Judgemental Sampling
Primary Sources a) Structured Questionnaire � Different sets of questionnaires
were administered on organised outlets and unorganised kirana stores. b) Personnel
Interviews with corporate office personnel, store managers, operators, supervisors
of organised outlets and kirana store owners.
Secondary Sources Journals, Periodicals, Business Magazines, Newspapers, Corporate
Retail Chains� Websites, Retail Organisations�/Associations� Websites, pamphlets
and catalogues.

Given the structure of the Indian retail sector (F&G) which is still in the
�growth� stage, it was felt appropriate to select the sample units from both
organised and unorganised sectors as shown in the Figure 2.1.

Figure 2.1: Selection of Samples

DETERMINATION OF SAMPLE SIZE

Kirana Stores
An appropriate sample size has been arrived at after taking into account the
confidence level of 95%, confidence interval of 7% and the population (number of
kirana stores). The sample size determined is given in table 2.2. Thus, the sample
size of kirana stores considered for the study was 200.
Table 2.2: Determination of Sample Size (kirana stores)
Confidence Level
95% Confidence Interval
7% Population (No. of stores � Estimate)
2,00,000 Sample size Required
196
Source: http://www.surveysystem.com/sscalc.htm.
Organised Retail Outlets
As the number of organised outlets was limited, a minimum of 25 per cent of the
total number of outlets of retail chains was considered for the study. The break�up
of the number of organised outlets surveyed is given in table 2.3 and it was
150.
Table 2.3: Retail Chains and Number of Outlets Surveyed

Name of the Retail Chain Total Number of outlets in Bangalore Number of outlets
surveyed Percentage of outlets surveyed
@Fresh 16 12 75
Spencer's 19 14 74
More For You 76 38 50
Nilgiris 56 14 25
Food World 48 12 25
Reliance Fresh 36 9 25
Safal Daily Fresh 32 8 25
Smart Supermarket 28 7 25
Standalone Outlets 36
Total 150

Thus, the total sample size was 350 and is shown in table 2.4. Table 2.4: Total
Sample Size Surveyed*
Type Number
kirana Stores 200
Food and grocery retail outlets 150
Total 350

*Note: Only one outlet/store from a location (E.g. Shopping Complex) is selected
for the survey.

Pilot Survey
A pilot survey was conducted at Banshankari II and III stage, Bangalore to
ascertain the validity of the questionnaire. About 15 kirana stores and 10
organised retail outlets were covered as part of the pilot survey. The objective of
the survey was to understand from the respondents the relevance, usability,
reliability etc of the instrument. Based on the insights gained in the pilot
survey, some of the questions were rephrased, some were redesigned, re-categorised
and refined.

Research Survey

The survey is exploratory in nature. As part of the survey, the researcher has
covered almost all major locations in the city of Bangalore. Though the sampling
method adopted was convenience/judgemental sampling, only one outlet from a
location is selected. This is to make sure that as many outlets as possible may be
covered from different locations and information collected is not biased or skewed.
In case of organised outlets, it was ensured that the outlet selected was in
operation for at least one year. The number of outlets of retail chains and
independent outlets where the survey was conducted are given in Table 2.5.
Table 2.5: Location of Organised Outlets
1. Adugodi 2. Frazer Town 3. Narayana Pura Main
4. Airport Road 5. Gandhi Nagar 6. Padmanabha Nagr
7. Annapoorneshwari Nagar 8. HAL I Stage 9. Pai Layout
10. Ayanagar 11. Indira Nagar 12. Prasanth Nagar
13. Banaswadi 14. J P Nagar 15. Puttenhalli
16. Bangalore 17. Jalahalli West 18. Raja Rajeshwari Nagar
19. Bannerghatta Road 20. Jayanagar 21. Rajaji Nagar
22. Bapuji Nagar 23. Kamakshi Palya 24. Rajaji Nagar 2nd Stage
25. Basavangudi 26. Kamaraj Street 27. Ramamurthy Nagar
28. Basveswara Nagar 29. Kasba Hobil 30. RPC Layout
31. Begur Hobli 32. Kasturnagar 33. RT Nagar
34. Bhanashankari 35. Kengeri 36. Rustum Garden
37. Bhanashankari 2nd stage 38. KHB Colony 39. Sahakara Nagar
40. Bhanashankari 3rd Stage 41. Kodihalli 42. Sarajapur Road
43. Brookefield 44. KonanaKuate 45. Shivaji Nagar
46. BTM Layout 47. Koramangala 48. Sultan Palya
49. C V Raman Nagar 50. Kothanur Road 51. Teacher's Colony
52. Canara Bank Layout 53. Magadi Main Rd 54. Tippasendra
55. Chamrajpet 56. Mahalakshmi Layout 57. Uttarahalli
58. Chandra Layout 59. Malleswaram 60. Vidyarayanapuram
61. Chord Road Extension 62. Martahalli 63. Vijaya Nagar
64. Doddabanaswadi 65. Nagarbhavi 66. Vijayanagar
67. Dommalur Layout 68. Nagarbhavi Main Road 69. West Of Chord Road
70. Ejipura 71. Nandini Layout 72. White Field
73. Electronic City 74. Yelahanka

Source: Field Survey.

In case of kirana stores, sample units were chosen in such a way that they
represent different location in the city of Bangalore.
The number of outlets surveyed and their year of establishment are given in the
Table 2.6 and Figure 2.2. The concept of organised retail is very new in India. In
the country, the growth of organised retail gained momentum in 2003-04. The sample
of the outlets collected also replicates the same. That is, the number of outlets
opened over the years has increased and may continue to grow further in the years
to come. The survey was conducted during the year 2009.
Table 2.6: Year of Establishment of Organised Outlets
Year No. of Outlets Percentage
2000 1 1
2001 1 1
2002 3 2
2003 4 3
2004 6 4
2005 12 8
2006 19 13
2007 46 31
2008 58 39
Total 150 100

Source: Field Survey.

Figure 2.2: Year of Establishment of Organised Retail Outlets

Reliability Analysis
Reliability of the questionnaire was tested using Chronbach�s Alpha (also referred
to as coefficient alpha) technique. The test showed a satisfactory index of
0.6 to 0.9 which is adequate for the analysis of the data.

Data Tabulation and Analysis:

1.
Microsoft Access 2007 was used for database creation and data entry purposes.

2.
Microsoft Access 2007 and Microsoft Excel 2007 were used for data filtering,
sorting and drawing charts.

3.
SPSS Ver 16.0 was used for descriptive analysis, testing of hypothesis (both
parametric and non-parametric) and multivariate analysis.
CHAPTER SCHEME
Chapter 1 Introduction
Chapter 2 Literature Review, Research Design and Methodology
Chapter 3 Data Analysis
Chapter 4 Testing of Hypothesis and Model Building
Chapter 5 Summary of Findings and Conclusion

Bibliography
Annexures

.....