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Retail Management Project
Retail Management Project
Retail Management Project
PROJECT
ON
FAST MOVING CONSUMER GOODS SECTOR
Table of Contents
5. Conclusion 22
6. Acknowledgement 23
7. Bibliography 24
INTRODUCTION OF THE PROJECT
We have to first choose a retail category and shall have to research about at least ‘Ten Different Retail Stores’
related to the chosen category. The researched stores should be a mix of Modern Trade and General Trade.
Then we will need to research about ‘at least one outlet from outside the category’ and compare their
observations with chosen category outlets. We have to gather the following information:
INTRODUCTION
Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household and personal care
accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have
been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is
the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few
years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and
rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.
Market Size
The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with
modern trade expected to grow at 20 25% per annum, which is likely to boost revenue of FMCG companies.
Revenue of FMCG sector reached Rs. 3.4 lakh crore (US$ 52.75 billion) in FY18 and is estimated to reach US$
103.7 billion in 2020. FMCG market is expected to grow at 9-10% in 2020.
Rise in rural consumption will drive the FMCG market. It contributes around 36% to the overall FMCG
spending. In the third quarter of FY20 in rural India, FMCG witnessed a double-digit growth recovery of 10.6%
due to various government initiatives (such as packaged staples and hygiene categories); high agricultural
produce, reverse migration and a lower unemployment rate.
Investments/ Developments
The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail
and 51% in multi-brand retail. This would bolster employment, supply chain and high visibility for FMCG
brands across organized retail markets thereby bolstering consumer spending and encouraging more product
launches. The sector witnessed healthy FDI inflows of US$ 17.8 billion from April 2000 to September 2020.
COMPARATIVE ANALYSIS
FIRST SHOP
SECOND SHOP
THIRD SHOP
FOURTH SHOP
Sales :-
Weekly Sale = 250000 approx.
Monthly Sale = 1100000 -120000 approx.
Profit :-
Monthly 70% of 400000 = 400000*70/100 =280000 monthly income
Per week income = 280000/4= 70000
Per day sale = 280000/30 = 9333.33/10000 approx.
Efficiency :-
Average Transaction Value : Rs 60-Rs 110
Product returns : 5% of Sales
Inventory turns : 55% of demand
Employee Productivity :-
Sales per employee :- Rs 1800 – Rs 2400 per day.
FIFTH SHOP
Aram Bagh Food Mart
Retailing Process :- They may be producer and sometimes they also buy from wholesaler and sell it to
customer.
Ownership :-
Size: - 850 sq. ft. approx. , Name:- Aram Bagh’s Food Mart
It offers broad range of products like grocery, toiletry, confectionery, frozen veg and non-veg, stationery, ready-
to-eat snacks.
Various marketing communications used inside the store:- Promotional Sales, Personal Selling
Visual Communication:- Glass doors are there, and various groceries are displayed on the shelves one above
another. These groceries are easily visible from outside the shop.
Store Planning :- New products and discounting products are kept at the front side of the shop, so that they are
easily visible to the customers.
Merchandising :- Free assured gifts on every bill over Rs 1200, various festive offers, free home delivery on
orders above Rs 3000.
Store Design :- Well decorated walls with various products, LED Lights, ACs etc., Bulk stacking of varieties of
products.
Sales :-
Sales Growth :- - 2 %
Profit :-
Effeciency :-
Employee Productivity :-
SIXTH SHOP
1)Type of Retail Store :-
It offers broad assortments of products like grocery and staples, personal health care, household utilities, kitchen
utensils, toilet utilities, Covid-19 Utilities, Bakery and Confectionaries, Drinks, Fast Foods.
6) Various marketing communications used inside the store :- Poster, Leaflet, Flex Poster
7) Visual Communication :- The items inside the store are easily visible from outside the store the door is
always open.
8) Store Planning :- New arrivals are kept near the cash receipt area.
10) Store Design :- False Ceiling with black mirror finish , Elegant wooden furniture combined with black
glass.
Recruitment process and training process for salesperson -> Direct interaction and personal interview
Sales :-
Profit :-
Efficiency :-
Employee Productivity :-
SEVENTH SHOP
JITENDRA KIRANA
Retailing Process :- They may be producer and sometimes they also buy from wholesaler and sell it to
customer.
Ownership :-
It offers broad range of products like grocery, toiletry, confectionery, frozen veg and non-veg, stationery, ready-
to-eat snacks.
Various marketing communications used inside the store :- Promotional Sales, Personal Selling
Visual Communication :- Glass doors are there, and various groceries are displayed on the shelves one above
another. These groceries are easily visible from outside the shop.
Store Planning :- New products and discounting products are kept at the front side of the shop, so that they are
easily visible to the customers.
Merchandising :- Free assured gifts on every bill over Rs 1600, various festive offers, free home delivery on
orders above Rs 5000.
Store Design :- Well decorated walls with various products, LED Lights, ACs etc., Bulk stacking of varieties of
products.
Sales :-
Sales Growth :- - 5%
Profit :-
Effeciency :-
Employee Productivity :-
EIGHTH SHOP
1. Format: Kirana Store
Retailing Process- Buys from the wholesaler and sells it to the final consumers.
4. Product assortment and their repetitive target segments- Offers wide range of items like Diary
products, Bakery Products, Canned products, Groceries,etc
7. Various Marketing communications used inside the store- Provide Home deliveries of products
within the range of 5kms and Various other offers are provided to the customers on purchase of rs1K or
above.
8. Visual Communication- Most of the items are visible from outside the shop from the counter itself.
9. Store Planning- Expensive products are placed at the top of the shelves and new arrivals can be seen at
the cash counter.
11. Store Design- Good use of lights and various posters were there on the wall.
Recruitment Process- PI
Sales:
Profit:
Employee Productivity:
NINTH SHOP
Format: Kirana Store
Retailing Process- Buys from the wholesaler and sells it to the final consumers.
Product assortment and their repetitive target segments- Offers wide range of items like Diary
products, Canned products, Groceries,etc
Various Marketing communications used inside the store- Special Offers are provided to the
customers on purchase of rs1K or above.
Visual Communication- They have applied the pyramid principle by using a triangular formation with
the largest item in the center surrounded by other smaller items in the shelf.
Store Planning- Fresh arrivals are placed at the entry so that customer gets a good vibe while entering
the store.
Recruitment Process- PI
Sales:
Profit:
Efficiency:
Employee Productivity:
TENTH SHOP
Format: Kirana Store
Retailing Process- Buys from the wholesaler and sells it to the final consumers.
Product assortment and their repetitive target segments- Offers wide range of items like Diary
products, Canned products, Snacks, Groceries,etc
Various Marketing communications used inside the store- Special Offers are provided to the
customers on purchase of rs1K or above.
Visual Communication- Well maintained shop with walls decorated and various hoardings were also
there.
Recruitment Process- PI
Sales:
Profit:
Gross margin- 4-4.5k per day
Efficiency:
Employee Productivity:
FIRST SHOP
GUPTA DISTRIBUTORS
In this project we have explored the inside of ‘Retail Management’ concepts to actual settings and understood
the implementation of Retail Management in real life scenarios. And also experienced the Retail Management
challenges faced by various retail stores. We have researched and collected the primary as well as secondary
data of various retail stores in the FMCG category (Main Retail Outlet) and as well as Consumer Durables
category (Other Retail Outlet). And then we have compared all the data of various retail stores which each other
and then with the other category retail outlet as well. We have researched about at least ’Ten Different Stores
Outlet’ related to our chosen category and then we researched about ‘At Least One Outlet from Outside the
Chosen Category’ and compared their observations with the chosen retail category outlet (FMCG).
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my professor Mr. Joydeep Biswas who gave me the
golden opportunity to do this wonderful project on ‘Retail Management’ and also to my team members who
helped me in doing a lot of research and I came to know about so many new things I am really thankful to all of
them. Secondly, I would also like to thank my friends who helped me a lot in finalizing this project within the
limited time frame.
BIBLIOGRAPHY
www.google.com
www.marketing91.com
www.livemint.com
www.wikipedia.com