October 25, 2017 | Author: Er Bikramjit Singh | Category: Retail, Supermarket, Convenience Store, Grocery Store, Shopping Mall
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Project Report on Summer Training On To Study The Working Procedure & Marketing Strategies of Aadhar Retail Ltd

Submitted to Punjab Technical University In the partial fulfillment of the requirements for the award of Degree of Masters of Business Administration(MBA)


Submitted by: Gagandeep Singh University Registration No.95182239101




I GAGAN DEEP SINGH declare that the project report entitled “STANDARD OPERATIONAL PROCEDURE AND ITS ADHERENCE RELATED TO AADHAAR RETAIL MARKETING”, is the produce of my sincere effort. This Summer Internship Project Report is being submitted by me alone, at SHREE ATAM VALLABH JAIN COLLEGE, for the partial fulfillment of the course MBA, and the report has not been submitted to any other educational institutions for any other purpose.



PREFACE As a part of MBA degree, it is required for every student to undergo summer training in an industrial or commercial organisation to get a practical exposure of actual situation existing in the industry. I have undertaken my training in AADHAAR RETAILING LTD, LUDHIANA. The duration of my training was eight weeks. When I joined AADHAAR RETAIL LTD. , I believed that ‘’RETAIL IS IN EVERY BIT OF YOUR LIFE” I believe that now I will answer my entire enigma and asked for queries .During this humble month old stay in the organization , I have made a very modest attempt in understanding and presenting my ideas as well as enriching experience through this report .


ACKNOWLEDGEMENT No endeavour can be successful without the active cooperation of the people concerned with it, which was fourth coming in full during this study. It is extremely difficult to find words which can do justice to this sort of cooperation; I got in the planning & execution of this study. I am deeply indebted to Mr. Anchal Bindal(Sr. Manager HRA) who allowed me to take training in this esteemed branch of Aadhaar Retailing ltd. and without whose cooperation my training would not been possible. I feel lucky to complete my project under the able and competent guidance of Mr. Ajay Dwivedi. (State Head Punjab) and Mr. Muneesh Kaushal (Asstt. Marketing Manager) and take the opportunity to express my sincere thanks to Mr Sumant (Sr.Operation Manager) and Mr. Naresh Dutt(Sr. Distribution Manager) and Mr.V.K. Pandey (Store Manager) for valuable guidance in planning & execution of this study. I am extremely grateful to Mr.Ashok Biyani(DIRECTOR) and my research guide Mr. RAJNISH JAIN (FACULTY OF MBA) and other faculty members for their whole hearted co-operation. I extend my deepest gratitude to all those persons who supported me all through my project. My interaction with all these people has left a long lasting impression in my mind that will influence my project and my behaviour for all times to come . Once again I extend my whole hearted thanks to all the supporters and advisors for their help.


Gagandeep Singh



Sr. No 1 2 3



Page No. 6 7-23 24-35


























EXECUTIVE SUMMARY In today economy, one needs money to make money. Marketing is the life blood of business and there must be continuous flow of funds in and out of business enterprise. Money makes the wheel of business run smoothly. Sound plan and efficient production system and excellent marketing network are all hampered in the absence of adequate funds. In modern economy, the rate of finance has increased due to large scale industrial production. It has resulted in increasing the demand of funds in an organization. Retail Marketing is a growing sector in all around the world.Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non business use. Basically retail marketing is globalize in urban areas but now company’s are also interested in rural areas and moving towards it . Retailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Crore, which was only 3% of the total retailing market. Retailing in its present form started in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largest employer segment in USA. Organized retailing in India is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crore by 2010. In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towards the tier-II cities**. The 'retail boom', 85% of which has so far been concentrated


in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%.

Introduction to Retail Marketing Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 16 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-section of Indian consumers. Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most popular retail chains like Pantaloons - a chain of fashion destinations, Big Bazaar - a uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central - a chain of seamless destination malls. Some of its other formats include Ethnicity - India's first concept store, which recreates the experience of a traditional ethnic market in a modern retail format, Brand Factory, Planet Sports, aLL, Top 10 and Star and Sitara. The group also operates India’s most popular online shopping portal

Retailing of products and services related to home building and home improvement is led through the group’s formats, Home Town, a large-format home solutions store, along with specialized formats for home furniture and home furnishing through, Collection i and Furniture Bazaar and consumer electronics through eZone and Electronics Bazaar. The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65 locations in retail showroom in India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the consumer.


RETAIL MARKETING The term marketing refers to an art of selling product by satisfying consumer needs. Marketing deals with identifying and meeting human and social needs. Retail marketing takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties. Retail marketing is also related to getting, keeping, and growing customers through creating, delivering,and communicating superior customer value. The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objective Elements of the marketing mix are often referred to as 'the


1-PRODUCT A product is a bundle of benefits which are being offered to consumer. Thus a good product makes its marketing by itself because it gives benefits to the customer.

2-PRICE Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product.


3-PLACE-DISTRIBUTION The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. In fact, instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix!

4-PROMOTION Promotional strategies include all means through which a company communicates the benefits and values of its products and persuades targeted customers to buy them Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale.

Significance of Retail Markets The retail markets are estimated to be growing fastly in the middle class area. The potentiality of rural markets is said to be like a 'woken up sleeping giant'. These facts are substantiated in a study of market growth conducted by various researches. In recent years, rural markets have acquired significance in countries like China and India, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. On account of the green revolution in India, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has taken shape. Sometimes, rural marketing is confused with agricultural marketing – the later denotes


marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers. A number of factors have been recognized as responsible for the rural market boom to come into existence: 1. Increase in population and hence increase in demand. 2. A marked increase in the rural income due to agrarian prosperity. 3. Standard of living is also increasing in rural areas. 4. Large inflow of investment for rural development programmes from government and other sources. 5. Increased contact of rural people with their urban counterparts due to development of transport and wide communication network. 6. Increase in literacy and educational level and resultant inclination to sophisticated lives by the rural folks. 7. Inflow of foreign remittances and foreign made goods into rural areas. 8. Change in the land tenure systems causing a structural change in the ownership patterns and consequent changes in the buying behaviour. 9. Rural markets are laggards in picking up new products. This will help the companies to phase their marketing efforts. This will also help to sell inventories of products out dated in urban markets. Rural market has following arrived and the following facts substantiate this. What makes Rural Markets Attractive? * 742 million people * Estimated annual size of the rural market - FMCG Rs. 65,000 Crores - Durables Rs. 5,000 Crores - Agri-inputs (incl. tractors) Rs. 45,000 Crores - 2 / 4 wheelers Rs. 8,000 Crores * In 2001-02, LIC sold 55 % of its policies in rural India. * Of two million BSNL mobile connections, 50% in small towns/villages.


* Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT) * 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity. * Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from these towns on Rediff online shopping site * 42 million rural HHs availing banking services in comparison to 27 million urban HHs. * Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in urban

Opportunities: In Retail Marketing Infrastructure is improving rapidly. - In 50 years only 40% villages connected by road, in next 10 years another 30%. - More than 90 % villages electrified, though only 44% rural homes have electric connections.


- Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD. * Social Indicators have improved a lot between 1981 and 2001 - Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%) - Percentage of BPL families declined from 46% to 27% - Rural Literacy level improved from 36% to 59% * Low penetration rates in rural so there are many marketing opportunities. Durables Urban Rural Total (% of rural HH) CTV 30.4 4.8 12.1 Refrigerator 33.5 3.5 12.0 FMCGs Urban Rural Total (% of rural HH) Shampoo 66.3 35.2 44.2 Toothpaste 82.2 44.9 55.6 * Marketers can make effective use of the large available infrastructure - Post offices - 1, 38,000 - Haats (periodic markets) - 42,000 - Melas (exhibitions) - 25,000 - Mandis (agri markets) - 7,000 - Public distribution shops - 3, 80,000 - Bank branches - 32,000 * Proliferation of large format rural retail stores which have been successful also. - DSCL Haryali stores - M & M Shubh Labh stores - TATA/Rallis Kisan Kendras - Escorts rural stores - Warnabazaar, Maharashtra (annual sale Rs. 40 crores)








Rural people can use the two-way communication through on – line service for crop information, purchases of Agri-inputs, consumer durable and sale of rural produce online at reasonable price. Farm information online marketing easily accessible in rural areas because of spread of telecommunication facilities all over India. INFORMATION THROUGH LOCAL AGRICULTURE INPUT DEALERS Most of the dealers have direct touch with the local farmers; these farmers need awareness about pests, decease, fertilizers, seeds, technology and recent developments. For this information, farmers mostly depend on local dealers. For development of rural farmers the government may consider effective channel and keep information at dealers, for farmer education hang notice board and also train the dealer recent changes and developments in agriculture. National Chain Stores: large number of stores set up in different rural areas throughout the country by the same organization for marketing its products. Thus national chain stores can serve large number of customers in rural area.

COST BENEFIT ANALYSIS Cost benefit can be achieved through development of information technology at the doorsteps of villagers; most of the rural farmers need price information of agriproduce and inputs. If the information is available farmers can take quick decision where to sell their produce, if the price matches with local market farmer no need to


go near by the city and waste of money & time it means farmers can enrich their financial strength. NEED BASED PRODUCTION Supply plays major role in price of the rural produce, most of the farmers grow crops in particular seasons not through out the year, it causes oversupply in the market and drastic price cut in the agricultural produce. Now the information technology has been improving if the rural people enable to access the rural communication, farmers awareness can be created about crops and forecasting of future demand, market taste. Farmers can equates their produce to demand and supply, they can create farmers driven market rather than supply driven market. If the need based production system developed not only prices but also storage cost can be saved. It is possible now a days the concept of global village. MARKET DRIVEN EXTENSION Agricultural extension is continuously going through renewal process where the focus includes a whole range of dimensions varying from institutional arrangements, privatization, decentralization, partnership, efficiency and participation. The most important change that influences the extension system is market forces. There is a need for the present extension system to think of the market driven approach, which would cater the demands of farmers.



India is the second largest producer of fruits and vegetables in the world with an annual production of more than 110 million tones of fruit and vegetable only 1.3 percent of the output is processed by the organized sector commercially, the reason higher consumption in fresh form. However, as the packaging, transportation and processing capacities increase, the market for processed fruits and vegetables is projected to grow at the rate of about 20 % per annum. 100 % export oriented units (EOU) and Joint venture units required improving the processing industry. APANAMANDI / KISAN MANDI / RYTHUBAZAAR There is a need to promote direct agricultural marketing model through retail outlets of farmer's co-operatives in urban areas. The direct link between producers and consumers would work in two ways: one, by enabling farmers to take advantage of the high price and secondly, by putting downward pressure on the retail prices.

RURAL AGRI- EXPORT Rural produce, raw fruits and vegetable, processing goods, have the potential market in Asian, Europe and western countries. Particularly soudhy countries have commendable potential for Indian rural produce.


Classification of Customers India 1

India 2

India 3

Consuming Class

Serving Class

Struggling class


Constitutes only 14 % of

the country’s population



disposable income and as









These people make life easier




more for


consuming class or India

middle and the lower middle class

like •



hand-to-mouth so


good living. •



segment will continue to be on the peripheries of the consumption cycle in India, in years to come.

Research indicates that for every India one at least three India Twos are there, making up approx. 55 % of the population but due to low income they have a very little disposable spend

income on



buying goods


afford to even aspire for

liftmen, washer man etc.

they form part of usually called



Most of these customers have



services .

Source: Future Group Research, Published in the Book “It Happened in India” by Kishore Biyani, 2007 issue. Emerging Trends in Modern Retail Formats:


It is difficult to fit a successful international format directly and expect a similar performance in India. The lessons from multinationals expanding to new geographies also point to this. For example, Wal-Mart is highly successful in USA but the story is different in Asian countries like China. Therefore, it is important for a retailer to look at local conditions and insights into the local buying behavior before shaping the format choice. Considering the diversity in terms of taste and preferences prevailing in India, the retailers may go for experimentation to identify the winning format suited to different geographies and segments. For example, the taste in south is different from that in north and this brings challenges to the retailers. Therefore, most of grocery retailers are region centric at this point in time. The available research findings on retail indicate the following trends in Modern Retail formats:


Trial & Error:

Now a number of retailers are in a mode of

experimentation and trying several formats which are essentially the representation of retailing concepts to fit into the consumer mind space. Apart from geography even rural and urban divide poses different kind of challenge to the retailer. Pantaloon Retail India is experimenting with several retail formats to cater to a wide segment of consumers in the market. Some of the new formats are Fashion Station (popular fashion), Blue Sky (fashion accessories), aLL (fashion apparel for plus-size individuals), Collection i (home furnishings), Depot (books & music) and E-Zone (Consumer electronics).


Emergence of Wholesale Clubs: Since retailers are trying to segment the

market with the help of formats, they developed another new format in the form of Wholesale Club to sell a segment of consumers, who purchase on bulk and look out for substantial discounts and offers. The new format is going to be a kind of wholesale club which is likely to be located close to Food Bazaar. Consumers who are interested to purchase on bulk can take benefit from this format. Similarly the Land mark group also operates multiple formats such as hypermarket (Max), departmental store (Lifestyle), Shoe mart and Funcity8 etc. Such experimentation and identification of an appropriate format for the local conditions would separate winners from losers in India, possibly implying


multiple formats could be the reality in the long run. Pantaloon Retail India Ltd is a live example of that in Indian scenario.


Increasing Acceptance of Rural Markets: Mall-mania is phenomenal in

India and is spreading fast and entering even the second tier cities in India. Real estate developers are jumping very fast to take this further from Metro cities to smaller cities and corporate houses like ITC and Sriram group are making steady progress to make this phenomena feasible in rural markets as well. There is no denying that the top notch cities like Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Pune are leading the way but the second tier cities like Ludhiana, Chandigarh, Nagpur and Surat are also catching the eye of all retailers. Retail developers are in such a mood that they may over ride the requirement in a specific city.


Govt. is also promoting the Development of Modern Retail Formats:

Large format malls are increasingly getting prominence with adequate retail space allocated to leisure and entertainment. Some states like Punjab have lifted entertainment tax on multiplexes till 2009. This boosted the confidence of the mall developers to accommodate entertainment players like PVR, Waves, Adlab and Fun Republic in large malls.


Efficient Buying: Increasing Importance of Supermarkets & Discount

Stores: Such a format provides the greatest selection of any general merchandize and very often serves as the anchor store in shopping mall or shopping centre. In India, the number of department stores is less as compared to other retail formats such as supermarkets and discount stores. Shoppers' Stop is the first one to open a department store in the early 1990s and currently operates 19 stores in 10 different cities in India .The store strongly focuses on lifestyle retailing and mainly divides into five departments such as apparel, accessories, home décor, gift ideas and other services. Shopper’s Stop is getting stronger and stronger year


after year. It attracts more than 12 million shoppers every year with a conversion rate of 38 per cent. In the end of FY2000 this retailer had 5 stores and is in the process of reaching 39 stores with retail space of 2,502,747 sq ft by FY08. Another operator Lifestyle India began operations in 1998 with its first store in Chennai in 1999 and in March 2006 it opened one of the largest department stores in the same city. The store spreads over 75,000 sq. ft and store provides customers a great shopping experience with three floors of apparel, footwear, products for children, household furniture and decor, health and beauty products.


Hypermarkets: The Biggest Crowd Puller: Hypermarkets have emerged

as the biggest crowd pullers due to the fact that regular repeat purchases are a norm at such outlets. Hypermarkets not only offer consumers the most extensive merchandise mix, product and brand choices under one roof, but also create superior value for money advantages of hypermarket shopping. With product categories on offer ranging from fresh produce and FMCG products to electronics, value apparels, house ware, do it yourself (DIY) and outdoor products, the hypermarkets are emerging as one of the popular formats in India.. Number of players operating hypermarket format are increasing day by day. One of the leading players in this format is Pantaloon Retail India Limited which operates 32 Big Bazaars in twenty cities. In early 2006, the K. Raheja Corp (C.L. Raheja Group) has introduced its value retail concept hyper city which is the country’s largest hypermarket at 118000 sq ft. hyper city Retail plans to open 55 hypermarkets by 2015. As the market is expanding and consumers are in a mood to accept changes, hypermarkets are getting overwhelming response from consumer. Currently there are about 40 odd hypermarkets in India but this format holds a great potential for growth.


Customers still rely on traditional concepts: A super market normally

sells grocery, fresh, cut vegetables, fruits, frozen foods, toiletries, cosmetics, small utensils, cutlery, stationery and Gift items. In India Food World, Food Bazaar, Nilgiri (30 plus stores), and Adani are the leading super market operators .One of the biggest super market operators in the western India is Adani


Retail Limited which operates Adani super market plans to continue its journey to reach total 19 cities with the store strength of 60 plus in the state of Gujarat. ARL also plans to expand its operation in the neighboring states of Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh. Subhiksha is one of the leading super market operators, who largely operates in the southern part of India is expanding to western India. One more retailer Reliance Retail is on the move and this retailer opened its Reliance Fresh-a super market chain with 11 stores in Hyderabad in November 2006 and is planning to enter 70 more cities within 2 years.


Emergence of Private-Label Brands: The private labels are offering

flexibility to both the retailer and the consumer on price front. The objective of the store is to offer variety at affordable price in each category. Food Bazaar have made the transition from just a grocery retailer to developing emotional bonding with shoppers by providing some value added services to the shoppers. Some of these initiatives include : ( Jo Dikhta Hai wo hi Bikta Hai ) Live chakki: which allows customers to buy fresh wheat and have it grinded there at the store Fresh Juice counter: This provides customer to have fresh juices. Live dairy: This provides customers with fresh milk and milk products. Live kitchen: Customers have the option of buying vegetables, getting them chopped, cooked fully or partly. Soups, salads and sandwiches are also available at live kitchen.


Ease of Shopping & Customized Services: Order of the Day: To

activate it a new format has emerged in the name of Convenience Store. A Convenience store offers locational advantage to the shoppers and provides ease of shopping and customized service to the shoppers. It charges average to above average prices, depending on the product category and carries a moderate number of stock keeping units (SKUs). Normally it remains open for long hours and shoppers use it for buying fill-in merchandize and emergency purchases. In India,


Convenience stores occupied 23 thousand sq. meter of retail space with sales of about Rs 1347 million in 2005 and are expected occupy 85 thousand square meter of selling space by 2010 .


Magnetic Effect: Discounters not Shopkeepers: Wal-Mart, the largest

retailer in the world is a discounter. Practically the discounters offer several advantages such as lower price, wider assortment and quality assurance. The discounters like Wal-Mart and Aldi were able to quickly build scale and pass on the benefits to the consumer. However, in the long run success depends on the operational efficiency and consistent value delivery to the consumer. The same retailer Wal-Mart struggles in Asian countries like China but extremely successful in USA. It is believed that the average Indian consumer is highly price-sensitive and looks for savings in term of money in their grocery purchase. So price-value equation is a critical component in most of the grocery purchases.


Category Killer: A New Concept imported from U.S.: The category

killer concept originated in the U.S. due to abundance of cheap land and the dominant car culture. Category Killer is a kind of discount specialty store that offers less variety but deep assortment of merchandise. By offering a deep assortment in a category at comparative low prices, category specialist can be able to “kill’ that specific category of merchandize for other retailers. Generally such kind of retailers uses a self service approach. They use their buying power to negotiate low prices, excellent terms and assured supply when items are scarce. In India this kind of retail stores are not prevalent at this point of time. But there is scope for such kind of format. In India, Mega-Mart is one sort of category killer which sells apparel products.


Dollar Stores: Dollar stores have their roots in America's homey five-

and- dimes, the general stores that offered a range of products at low prices. But modern dollar-store retailers are having more sophisticated operations; leveraging their growing buying power to strike special deals with vendors and continuously striving for unique advantage of both convenience and price. Some chains sell all


their goods at $1 or less. Others offer selected items at higher prices. Most sell a combination of paper products, health and beauty supplies, cleaning products, paper and stationery, household goods, toys, food and sometimes clothing. Both private-label and brand-name goods fill the shelves. They are looking for employing technology to manage large distribution networks. Store 99 is the example of it in Indian Scenario.


Retail Development in Rural India: A Market with Silver lining:

Chennai based market research firm Francis Kanoi estimated the size of the rural market to be INR 1, 08,000 crore annually. During the survey in 2002 the firm took into account four categories - FMCG, durables, agri-inputs, and two- and four-wheelers for their estimation. Rural incomes are growing steadily as well. NCAER data shows while the number of middle-class households (with annual income between Rs 45,000 and Rs 2.15 lakh) is at 16.4 million in urban India, the figure stands at 15.6 million18 in the rural areas, data from. Largely this rural market is untapped and there is huge opportunity for retailers. ecent Developments in Rural Retailing: Therefore, in recent times rural retailing is witnessing explorations by both corporate houses and entrepreneurs – ITC's Choupal Sagar, HLL's project Shakthi and Mahamaza are some of the models being tried out. At this juncture there is no conclusive evidence of winning rural retail formats available. However, corporate forays into rural retail are expected to bring more experimentation and innovation in term of retail format. The Godrej Adhaar, the rural retail initiative of Godrej Agrovet Ltd operates a chain of 18 stores providing a host of services to farmers and their families and is planning to set up at least 1,000 stores19 across rural India in the next five years. Apart from Godrej Adhar and Choupal Sagar other formats operating successfully in the rural area are, M & M Shubh Labh stores, Escorts rural stores, Tata Kisan Sansar, and Warnabazaar, Maharashtra (annual sale Rs 40 crore). DSCL Haryali Kisan Bazaar Hariyali stores keep wide range of product assortments such as fertilizers, pesticides, farm implements, seeds, animal feed and irrigation equipment among other agriculture related products. They also have officers who offer free advices to farmers regarding best


agriculture practices. Offering insurance and financial services to farmers is part of the business. So far, 22 "Hariyali" Stores have been operational in different states across North India. Farmer response has been extremely encouraging. A centre is attracting 150 - 200 farmers a day. Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national footprint covering all the major agricultural markets of the country. Mahindra & Mahindra Shubh Labh This is the rural initiative taken by Mahindra & Mahindra group to provide complete package of products and services related to firm productivity. One of the basic objectives is to establish market linkage and optimize farm produce supply chain. There are about franchised Shub Labh store established in ten states in India. 14: e-Retailing: The importance of internet retailing is growing all over the world. Some internet retailers such as e Bay and are providing a platform to vendors to sell their products online and they do not take the responsibility of delivering the product to buyer. They provide virtual shopping space to the vendors. On the other hand online retailers like and have to maintain their warehouse to stock products and take the responsibility of delivering products to the buyer. So, most of the brick and mortar stores are entering into online retailing as they have physical infrastructure and they can use that to capture additional consumer wallet. All the big retailers like Target, Sears and Kmart are operating online shop and some manufactures also operate online. For example Apple Inc. operates through and Dell Inc. sells its products online Through In India internet retailing is growing by 29% CAGR and Euro-monitor report estimates that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2010 from INR 4 billion in 2005. The report also predicts that the contribution of internet retailing to non-store retailing to is likely to be 46 per cent by 2010.



Godrej Aadhar Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in various industries that include appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, food-processing, security, materials handling and industrial storage solutions, construction and information technology. Its products include security Systems and Safes, Typewriters and Word processors, Rocket Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-products, Material Handling Equipments Like FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc. The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej. Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the group have moved significant production facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS marg. That makes the Godrej group the biggest private land owner in Mumbai by far [citation needed]

. Such vast land can, in theory, be used to create at least 1500 acres of residential

floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion .


Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian conglomerates.

Aadhar Retailing Agri-services to direct sourcing from farmers, Aadhar Retailing is now getting into the business of output management with farmers across the country. With the Future Group owing a 70 per cent stake in Godrej Aadhar, the newly formed company, Aadhar, would now serve as a procurement hub for the Future Group’s retail formats such as Food Bazaar and KB’s Fair Price and even become supplier to other retailers across the country. Mr Arvind Chaudhary, Chief Executive Officer, Aadhar Retailing, told Business Line, “We have now started buying the farmers’ produce and getting into the business of output management. With the intention of selling the farmers’ produce to other retailers, we would be adding one crop after another and help them in managing their produce,” stated Mr Chaudhary. Reaching out to 50,000 farmers every month, the company has already employed 300 people to directly access the produce of farmers across 2,000-odd villages in the country. The States where farmers are being approached include Punjab, Haryana, Maharashtra and Gujarat. With the Future Group’s cash-and-carry format on the backburner, sourcing from farmers and helping them sell their produce to other retailers is being seen as an extension of the same format by analysts. Not wanting to be compared with ITC’s e-Choupal, Aadhar Retailing believes it would operate in the business of providing solutions for farmers. “We would operate on a different model from e-Choupal as we would be advising farmers on what to produce and giving services such as soil testing and weather prediction facilities. The purpose is to become a one-stop-shop in the rural areas,” says Mr Chaudhary.


Fresh inputs Meanwhile, the existing 66 Godrej Aadhar outlets would also be stocking the Future Group’s private labels and financial products to extend its current portfolio. New brands such as Koryo (for consumer durables) and food brands such as Tasty Treat and Fresh ’N Pure would be making an appearance at the Aadhar outlets. Besides, with the Future Group having forged strategic alliances with players such as GlaxoSmithKline to develop the Gopika brand of ghee, its outlets would also see the brand making an appearance at Aadhar outlets. Financial products, such as insurancebased products of Future Generalli, would also get sold at the outlets. Besides, there is also a possibility of the Future Card (the Future Group’s loyalty cum credit card) being introduced.

Corporate details Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd. is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion in financial year 06/07. Godrej Interio is the flagship company of the group.

Services 

Godrej HiCare (Pest Management Services)

Godrej Global Solutions (ITES)

Godrej Properties

Achievement 

In 1897, Godrej Introduced the first lock with lever technology in India.


In 1902, Godrej made the first Indian safe.

In 1920, Godrej made soap using vegetable oil, which was a huge hit with the vegetarian community in India

In 1955, Godrej produced India's first indigenous typewriter

In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam)

Introduced India's first and only 100% CFC, HCFC, HFC free refrigerators

Godrej Agrovet


Godrej Agrovet (GAVL) is a diversified agribusiness company with interests in animal feed, oil palm plantations, agrochemicals and poultry.It is headquartered at Vikhroli, Mumbai India. The business was set up in 1971. GAVL today has 45 manufacturing facilities across India, a network of over 10,000 rural distributors, dealers & agents and over 1900 employees committed to improving the lives of Indian farmers. The company has a presence in 21 states.Under the guidance of Chairman, noted industrialist Nadir Godrej and its Cheif Executive Officer Balram Singh Yadav , GAVL today occupies the position of India's largest animal feed company, producing over 750,000 tons of nutritionally balanced feed for diary cattle, poultry & aquaculture every year. Its oil palm plantation business is the market leader in India, with over 35,000 hectares of smallholder cultivation across Andhra Pradesh, Karnataka, TamilNadu, Orissa, Goa,




With the intend of radically improving farmer economics, the agrochemicals business focuses on innovative and environmentally sensitive products.It has dominant market share in plant growth promoters & soil conditioners. GAVL has introduced fresh, chilled chicken to Indian consumer over the past decade, and now has a 20% market share in processed poultry. Its Real good chicken brand is the best known fresh poultry product in India, with a consumer loyalty about 80%.  The Rs 900 crore Godrej Agrovet Ltd, a unit of the $1 billion Godrej Industries Ltd, will open 1,000 'hub-and- spoke' centres in rural and semi-urban areas across the country in the next five years.  These centres will also provide technical services like farm management, soil micro-nutrient analyses to farmers. The hub would cover about 10,000 sq ft and spoke 3,000 sq ft, each costing about Rs 75 lakh and Rs 30 lakh respectively.  These outlets will sell agro-products like seeds, pesticides, fertilisers and grocery, apparel, footwear, home appliances, furniture and kitchen appliances. It will also house banks, insurance offices, pharmacies, post offices and petrol pumps.


 R S Vijan, executive vice-president, Godrej Agrovet, said: "We have decided to expand in rural and semi-urban markets. We will open 100-120 stores in the country in this financial year and these centres would be funded and managed by the company itself."  Godrej Agrovet posted a turnover of Rs 900 crore in 2005-06 and is expecting revenues of Rs 3,500-4,000 crore from these stores in the next five years.  At present, it has 24 Aadhaar centres in Maharashtra, Punjab, West Bengal, Orissa and Tamil Nadu. It has earmarked Rs 750 crore to train technical and marketing staff.  Godrej Agrovet is a key player in the farm segment with a large presence in cattle and poultry feed. It covers the whole spectrum of poultry business -- from breeding and hatching broilers to the marketing of its branded chicken. The company also has foothold in animal feeds, agricultural inputs and palm oil, and retail presence in urban areas through Nature's Basket. The animal feed segment constitutes about 75% of the company's revenues; almost 10% comes from poultry and the remaining from the rest of the businesses.  Recently, the firm signed a deal with Apollo Pharmacy, part of the Apollo Hospitals group and the country's largest retail pharmacy chain, to give medical support to the farming community.Earlier in January, in a bid to strengthen its hold on the farmer, Godrej Aadhaar had launched two new formats. The large  format stores have been opened at Mancher and Alephata on the Pune-Nashik highway in Maharashtra, taking the Aadhaar tally to 18 nationally.  To increase its rural reach, Godrej Agrovet, which set up Aadhaar a year ago, is now moving away from being a standalone outlet to hub and spoke model.

Company history 

PROPOSAL – Educational Courses at AADHAAR


About GAVL: Godrej Agrovet Ltd (GAVL) is part of the Godrej

Group of Companies, which is a household brand in India with diversified business interests.

GAVL is Rs. 1000 Cr company closely

associated to rural India through various aspects of Agri Business like Animal Feeds, Agri Products, Integrated Poultry Business, Oil Palm Plantation and Plant Biotechnology.

Godrej Aadhaar - Introduction: A couple of years back Godrej

Agrovet ventured into services cum rural/semi-urban retailing with its 'Godrej Aadhaar' chain of outlets. The initiative was driven by the single-minded objective of improving the life and livelihood of Indian rural community. Currently there are 45 Godrej Aadhaar Centers operational across the country in the states of Maharashtra (11), Gujarat (6), Punjab (16), Haryana (6), Andhra Pradesh (1), Orissa (1), West Bengal (2) and Tamil Nadu (2).

Godrej Aadhaar - the evolution: Godrej Aadhaar started off

as an initiative to provide Indian farming community with quality agriinputs and reliable agri-advisory services at the last mile, thus improving the productivity and income levels. Now it has taken up a more holistic objective of providing all the solutions to rural/ semiurban









guidance/agri advisory, consumer products and services with focus to facilitate financial, healthcare, education and entertainment services etc.  While agri-inputs and agri services still remain the core of Godrej Aadhaar, availability of other consumer products and aggregation of various utility services in an enhanced retail experience for the rural population would make them the “transactional hubs” of rural/ semiurban India.






plan: With a first hand

experience of the rural consumer, the Aadhaar centers have now evolved into a complete retail model. It has aggressive plans of becoming one of the largest agri-services cum retail chain of the country with 50 Aadhaars by March 2007 and 1000 Aadhaars within next five to seven years.

Scope for Partnering: We believe that strategic partnership is

the key mechanism that would enable us to work towards a viable business in the long term. Partnerships increase the level of sustainability because they provide diversity in offering, expertise in respective business domains and involve more stakeholders in working towards success of a deserving cause. We already have alliance partners like Apollo Pharmacy, Bajaj Allianz Insurance, ICICI Pru Life Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA Time Industries), Zenith. And we look forward to promote a sprit of co-operation, collaboration, network, and partnering among other like-minded associations. Welcome to the Aadhaar movement!  Our Proposal for Promoting Education & Vocational Courses from MEHTAB COMPUTERS Institute 

Variable period pilot with dedicated space in Barnala Aadhaar

location with good visibility and basic infrastructure.   Terms & Conditions  - Space and basic infra provided by us  - Equipment/computers etc provided by the partner  - Publicity done by Aadhaar  - Teachers/training materials provided by partner  - Revenue sharing basis - 65 (Institute): 35 (AADHAAR


Aadhaar’s Structure (Agri. section)

Store In-Charge (S I) ↓ Technical Service Incharge (T S I) ↓ Field Service Assistance (F S A) ↓ Farmer (Target Customer)


Aadhar Retailing Limited operates as a rural retail chain selling farm outputs like wheat and paddy. The company also provides farmers with solutions to problems regarding their agricultural output, which includes what kind of crop can they plant and when, along with techno-commercial suggestions to help them give a better output. It also offers insurance products to cover their risk and supermarkets for their daily needs. The company is based in India. Aadhar Retailing Limited formerly operated as a subsidiary of Godrej Industries Ltd. As of March 31, 2008, Aadhar Retailing Limited operates as a subsidiary of Pantaloon Retail (India) Ltd., Godrej And Future To Divest Stake In Aadhar Retailing To PE Players Godrej Industries Limited may hold slightly less than 30% direct stake in the wholesale venture of Future Group likely to be rolled out shortly. Godrej already has a 36% stake in Aadhar Retailing Limited. Aadhar Retailing is the front-end entity for Future Group's rural retail venture. Future Group’s CEO Kishore Biyani said Future Ventures India Ltd will have 50% stake in Aadhar Retailing and the remaining stake will be held by Godrej and private equity players. He said: "The initial plan was that Future Ventures will have 70% and Godrej 30%. But now, both Future Ventures and Godrej would offload part of their stakes to PE players." Rabo Fund Eyeing Future’s Cash & Carry Arm Rabo Equity Advisors is reportedly going to sign a deal next week to acquire about 20% stake in Rural Fairprice Wholesale, Future Group's cash-and-carry entity for rural retailing and sourcing business, a person close to the deal said. Rabo Equity is acquiring the stake held by Aadhar Retailing Limited. Rajesh Srivastava, CMD of Rabo Equity Advisors, said: "We will announce our plans at the appropriate time." Future Group CEO Kishore Biyani and A Mahendran, FMCG director of Godrej Group, who holds a 4% stake in Aadhaar Retail, declined to comment on the deal.

Rabobank’s PE Fund Reportedly Eyes Stake In Aadhar


The offshore private equity (PE) fund of Coöperatieve Centrale RaiffeisenBoerenleenbank B. (Rabobank) is in discussions to acquire a stake in Aadhar Retailing Limited. According to people close the situation, India Agri Business Fund may acquire about 25% stake in Aadhar. Future Group is known to be in contact with a number of private equity (PE) funds to raise money for expanding its businesses. It has been reported that talks are being carried out by Rabo Equity Advisors. Rajesh Srivastava, CMD of Rabo Equity Advisors said: "We are interested in several businesses the group is in. However, that we are in discussion does not mean there is a deal on the table." About GAVL: Godrej Agrovet Ltd (GAVL) is part of the Godrej Group of Companies, which is a household brand in India with diversified business interests.

GAVL is Rs. 1000 Cr company closely associated to rural India

through various aspects of Agri Business like Animal Feeds, Agri Products, Integrated Poultry Business, Oil Palm Plantation and Plant Biotechnology. Godrej Aadhaar - A couple of years back Godrej Agrovet ventured into services cum rural/semi-urban retailing with its 'Godrej Aadhaar' chain of outlets. The initiative was driven by the single-minded objective of improving the life and livelihood of Indian rural community. Currently there are 45 Godrej Aadhaar Centers operational across the country in the states of Maharashtra (11), Gujarat (6), Punjab (18), Haryana (6), Andhra Pradesh (1), Orissa (1), West Bengal (2) and Tamil Nadu (2). Godrej Aadhaar - the Evolution: Godrej Aadhaar started off as an initiative to provide Indian farming community with quality agri-inputs and reliable










productivity and income levels. Now it has taken up a more holistic objective of providing all the solutions to rural/ semi-urban India under one roof, viz. agri-inputs, free technical guidance/agri advisory, consumer products and services with focus to facilitate financial,




entertainment services etc. While agri-inputs and agri services still remain the core of Godrej Aadhaar, availability of other consumer products and aggregation of various utility


services in an enhanced retail experience for the rural population would make them the “transactional hubs” of rural/ semi-urban India. Godrej Aadhaar - Expansion plan: With a first hand experience of the rural consumer, the Aadhaar centers have now evolved into a complete retail model. It has aggressive plans of becoming one of the largest agri-services cum retail chain of the country with 50 Aadhaars by March 2007 and 1000 Aadhaars within next five to seven years. Scope for Partnering: We believe that strategic partnership is the key mechanism that would enable us to work towards a viable business in the long term. Partnerships increase the level of sustainability because they provide diversity in offering, expertise in respective business domains and involve more stakeholders in working towards success of a deserving cause. We already have alliance partners like Apollo Pharmacy, Bajaj Allianz Insurance, ICICI Pru Life Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA Time Industries), Zenith. And we look forward to promote a sprit of cooperation, collaboration, network, and partnering among other like-minded associations. Welcome to the Aadhaar movement! Our Proposal for Promoting Education & Vocational Courses from MEHTAB COMPUTERS Institute Variable period pilot with dedicated space in Barnala Aadhaar location with good visibility and basic infrastructure. Terms & Conditions - Space and basic infra provided by us - Equipment/computers etc provided by the partner - Publicity done by Aadhaar - Teachers/training materials provided by partner - Revenue sharing basis - 65 (Institute): 35 (AADHAAR)


Aadhaar 1. 2. 3. 4. 5. 6. 1. 7. 2. 8. 3. 9. 4.

Batala Ajnala Mehtachowk Tarantaran Aadhaar H Goindwal Kapurthala Sirsa Malsian Karnal Dharamkot Jundla Sultanpur Lodhi 38 Hansi







S. N O A 1 .






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CHECK ALL PREVIOUS DAYS RECEIPTS & DOCUMENTATION COMPLETE RECEIVING PROCEDURE IS ADHERED TO FILING OF ALL DOCUMENTS ( STN / CHALLANS / INVOICES ) STAFF ATTENDANCE TIME (Attendance Register signed by all employees regularly) (Check on employees on rolls are physically present or not in the store)



6. 7. 8. 9. C 1. 2. 3. 4. 5.


A Standing Operating Procedure: A set of instructions covering those features of operations which lend themselves to a definite or standardized procedure without loss of effectiveness. Also called SOP. See FM 6-0 or FM [1] [edit] Major Stages in the Preparation of an SOP Manual The preparation of an SOP manual is an involved task and usually involves three major stages: 1. Business systems and process study by intensive interaction with process owners, managers, operatives, etc. to understand in detail the tasks that are performed. 2. Preparation of the draft manual


3. Finalisation of the draft manual after discussion with users where any errors are corrected and process improvement recommendations are discussed and accepted or rejected. [edit] Contents of a Standard Operating Procedure (SOP) Manual This section describes the possible contents of an SOP manual for an organization. Almost any type of organization – whether profit-making or otherwise - could use this template since the manual is concerned with business processes and operations. 1. Objectives of the SOP Manual An SOP manual typically describes the standard operating procedures (SOPs) followed for various business processes within an organization Its main objectives are: a. To systematically record all current business policies, processes and procedures currently followed b. To clearly indicate the flow of actions performed from beginning to end of the process chain c. To inculcate a culture of “CONTROL CONSCIOUSNESS” among process owners and operatives d. To observe shortcomings in these policies, processes and procedures and make suitable recommendations for improvements in the policies, process effectiveness, process efficiency, internal controls and compliance, as applicable, and e. To serve as a basis for disseminating knowledge on the above among employees dealing with the relevant business functions, to enable adequate training to be imparted to concerned personnel with a view to making the business operations person-independent. f. To act as a reference guide for Internal Audit, which assesses the extent to which the SOP is complied with. 2. Organization Structure This is a macro organization chart showing the hierarchical or reporting relationships in the organization or business unit for which the manual is prepared. 3. Summaries of Business Processes Each business process (such as procurement, sales and marketing, planning, quality assurance, production, maintenance, etc.) is summarized, and each summary could contain the following information: a. Objectives of the business process b. Micro organization (functional) structure chart


c. Duties and responsibilities of each designated person involved in the process d. List of tasks performed e. Summary of Recommendations The summary of recommended policies and procedures (e. above) lists, for each business process, the (“As-is”) practice, its risks/shortcomings, and the recommended (“To-Be”) practice, with its expected benefits. Indicate along with each recommended practice the area of improvement envisaged (Efficiency / Effectiveness / Control / Compliance). 4. Detailed Chapters for Each Business Process Each business process has a chapter containing the following sections: a. Objectives of the business process b. Summarized Block Diagram of process flow c. Detailed Process Flowchart d. Outputs and inputs of each step in the process to clearly bring out the inter-dependencies between various functional units in the organization and between the organization and its internal and external stakeholders (customers. suppliers, etc.) e. Detailed textual description of process steps in strict logical sequence. The steps would include both computer-based and manual procedures and are to be described precisely and in the correct sequence. The text and the detailed process flowcharts should match. f. The description in e. above should include descriptions of procedures to handle exceptions, i.e., exceptional but anticipated events. g. Internal controls employed in the procedures to ensure that they are correctly and completely executed. Internal controls may be built into computerized business application systems such as ERP systems (like data entry, document preparation or report generation) or may be administrative controls exercised in the non-computer procedures of a business process. h. Recommendations to improve the effectiveness, efficiency, control or statutory compliance of policies, processes and procedures which would replace the current policies, processes and procedures if accepted by users (if thought essential, desirable or practical, as applicable) after intensive discussions. i. Exhibits of documents, reports, computer data entry screens, manual registers, etc. that are referred to as inputs to and outputs from specific procedures j. Accounting flow clearly showing which financial accounting general ledger accounts are operated wherever specific business transactions need to be recorded in the books of account.


5. Appendices One or more appendixes may be added at the end of the manual, but at least the following are recommended: a. List of inputs b. List of outputs c. Alphabetical glossary of terms [edit] Military use In military terminology SOPs describe a procedure or set of procedures to perform a given operation or evolution or in reaction to a given event. There is a popular misconception that SOPs are standardized. However, the very nature of an SOP is that it is not standardized across a large military element (such as a corps or division) but rather describes the unique operating procedure of a smaller unit (such as a battalion or company) within that larger element. "Standing" operating procedures take effect until further notice, at which time the issuing authority amend or dissolve them. Therefore, the military more correctly uses the term "standing operating procedure" in lieu of "standard operating procedure." Unit members typically promulgate SOPs, based on unit experience and local conditions. They are normally approved by the unit's Officer Commanding or Commanding Officer. SOPs often offer guidance where official doctrine does not cover a situation, or treats a situation only in extremely broad terms. SOPs are often used to provide practical detail to the some times high level guidance of official doctrine. Where official doctrine exists, SOPs will usually, at least in general terms, adhere to the official doctrine. However SOPs may on occasion ignore official doctrine, especially when a service/corps generally regards official doctrine as out-of-date, inadequate or incorrect. SOPs also differ from standing orders in that personnel may legally disregard or interpret them, as required by the situation; however, acting contrary to a posted command-signed SOP is generally considered the same as violating a published order and punished accordingly. [edit] Clinical Research In clinical research, the International Conference on Harmonisation (ICH) defines SOPs as "detailed, written instructions to achieve uniformity of the performance of a specific function". Organizations involved in clinical research—whether pharmaceutical companies, sponsors, contract research organizations, investigator sites, ethics committees or any other parties—require SOPs to achieve maximum safety and efficiency of the performed clinical research operations. All people and sites involved in clinical studies (both at the sponsor and at


the investigative sites) must have appropriate SOPs in place in order to conduct clinical research in compliance with current regulations. In the United States of America, the ICH GCP (good clinical practice) Step 5 Guideline (Section 3.2.2) also suggests that an Institutional Review Board (IRB) have its own SOPs or written standard procedures. [citation needed] This itself proves[citation needed] that the presence of SOPs form an integral part of clinical trials at all levels. Inspections target these quality documents since the most frequent reported deficiencies during inspections are the lack of written SOPs and/or the failure to adhere to them. The risk of GCP non-compliance is high at organizations with a poor availability of clinical-researchspecific SOPs. The risk of GCP non-compliance is also high where SOPs exist but the staff or the people for whom they were written lack awareness of them or of the need for them. The training of staff using SOPs therefore becomes very important, so that staff actually become aware of why and how SOPs can play an important role in fulfilling the ICH and other regulatory requirements. [edit] Good business and manufacturing practice An SOP is a written document or instruction detailing all steps and activities of a process or procedure. These should be carried out[by whom?] without any deviation or modification to guarantee the expected outcome. Any modification or deviation from a given SOP should be thoroughly investigated[by whom?] and outcomes of the investigation documented[by whom?] according to the internal deviation procedure. All quality impacting processes and procedures should be laid out[by whom?] in Standard Operating Procedures (SOPs). These SOPs should form the basis for the routine training program of each employee. SOPs should be regularly updated to assure compliance to the regulatory requirements and the working practice. A minimum review schedule of 3 years is recommended[by whom?]. Changes of SOPs are in general triggered by process or procedural changes / adjustments. The internal site change-control procedure should manage these changes. Part of the activity list of such changes should be to update the related SOP. SOPs should be in place for all quality systems plus the specific operational activities on site. The structure of an SOP System and the total amount of individual SOPs should be carefully taken into consideration[by whom?]. Too many SOPs could lead to a collapse of the SOP System. System SOPs should not be mixed up to keep systems and interaction between quality systems easy.[2]ISO 22000 essentially requires the documention of all procedures used in any manufacturing process that could affect the quality of the product.[3][edit] Information-technology industry useThe information technology industry uses the terms "Standard Operating Procedure" and "SOP" interchangeably to describe a best-practice approach to executing


tasks related to the production and maintenance of hardware and software, as well as to incident and change management. A number of packages may aid in the automation of the execution of informationtechnology SOPs for large enterprises, note for example Creekpath, iConclude and Stratavia's Data Palette.

Competitors of aadhar retail ltd Big retail charms small towns, inflation no problem Posted by Barun Roy on August 27, 2008

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About IndiaRetailBiz, an aggregator blog, attempts to aggregate the best of news, views, research, trends, and every thing else that is relevant to India’s booming retail business.India’s organised retail business, despite policy impediments and opposition from political activists and traditional retailers, is growing by leaps and bounds, thanks among others to favourable demographics, rising disposable incomes, growing economy, and rapid urbanisation.We at IndiaRetaiBiz are working towards capturing every aspect of the excitement associated with the evolving sector.We will always strive to provide timely, interesting, useful, authentic, relevant and consistent information on Indian retail sector. As India, being a part of the globe, can not operate in isolation, we will also attempt to cover international news, views, and developments that in our opinion, in the near or long term, may have bearing on India’s retail sector.IndiaRetailBiz is owned by Delta Systems (P) Ltd- an Ahmedabad based management consultancy, which offers professional consultancy services in the area of strategic enterprise management with emphasis on strategic marketing and retail management.IndiaRetailBiz welcomes reader comments, suggestions and contributions, which may kindly be communicated via ‘comment box’ provided below.We reserve the right to edit the contents of comments before their publication. All information and views expressed in comments section are that of its writer and IndiaRetailBiz neither subscibes nor is responsible for correctness or otherwise of their content. As a matter of policy, we do not encourage comments that seek to promote private business or advance personal career. In most situations, we will also be not be able to provide additional information on a news item unless it is available in public domain. For any such information, readers are requested to get in touch with concerned entity directly either through its web site or through e-mail.



Shopping in a supermarket is no longer just for well-heeled metro citizens. About a year after organised retailers hit the dusty trail to smaller towns, they are finding a broad market base as value-for-money shopping meets youth power courting a new symbol of enhanced lifestyle. Even big villages may be ready for an expansion paralleling Wal-Mart’s US success, and farmers are among a new tribe of smart shoppers, say industry insiders. The Future Group’s value store Big Bazaar has been wooing customers in towns such as Sangli and Alwar, and now covers 56 towns and cities across country. These include places like Siliguri, Darjeeling, Meerut, Ambala, Ahmednagar, Bharuch, Anand, Hubli, Udupi and Palakkad – hardly the kind of places you would associate with self-service or credit card shopping. “Smaller towns and cities in tier II and III category shows tremendous growth prospect for the organised retail industry. These are the towns where aspirations of the youth are high,” said Rajan Malhotra, Big Bazaar’s chief executive officer. “The competition will get hotter in the smaller towns and cities in about five years,” he said. As much as 70 per cent of Big Bazaar stores are in the so-called Tier II and III cities. The retailer plans to add 45 to 60 stores in the current July-June financial year, most of them in specks on the map. Delhi-headquartered Vishal Retail who already has a presence in 80 cities plans to raise this count to 120 cities by the end of this financial year.


“We are possibly the only retailer who has such a large footprint across the country. In fact it’s not just Tier II cities, but we have a presence in Tier III and Tier IV cities as well,” Manmohan Aggarwal, CEO, Corporate Affairs, Vishal Retail, told Hindustan Times. Inflation has not affected sales either. “Inflation does have a marginal impact but as value retailers, it is at these times that we can get the customer to come to our stores in droves because of the offers we give them,” reasoned Aggarwal. Vishal Retail plans to invest Rs 300 crore this year towards its expansion plans. Aadhar Retailing Ltd, a small joint venture between the Future Group and Godrej, where the former holds 70 per cent stake, has even courted villages – and shoppers include farmers, a class rarely associated with supermarket shopping. “Aadhar provides farmers with solutions to problems regarding their agricultural output, which includes what kind of crop can they plant and when, along with technocommercial suggestions to help them give a better output. We also provide them with insurance products to cover their risk and supermarkets for their daily needs,” said Arvind Choudhury, CEO, Aadhar Retail. But he adds that both the merchandise and price points are different in rural areas. Vishal Retail’s Aggarwal said customer tastes at their stores in cities such as Udhampur, Bhagwada and Badola were not very different from those in bigger cities such as Mumbai where the retailer has set up stores in suburbs such as Dahisar and Mulund. “Not only did we become the preferred destination for shopping for value seeking customers but were also able to attract new customers through Food Bazaar’s Monthly Bachat Bazaar (savings plan). We also took a conscious decision to not increase the cost of our private label brands for the next six months,” Malhotra said.


Easy Day,

Bharti Retail Ltd, a subsidiary of Bharti Enterprises, launched Easy Day, the company's first food and grocery store, at Ludhiana in western Punjab. The stores cover an approximate area of 2,500 to 4,500 square feet.

Retailers are on a constant lookout for newer and better ways to attract potential customers, to increase their existing footfalls and to convert visitors into customers. But, do retailers realise what encompasses the customer’s shopping expectations? What motivates them to prefer one store over another? And what influences their decision at the time of purchase? Is it value for money or in-store experience? Retailers, in a bid to drive in more footfalls and ensure consumer loyalty, generally focus on in-store experience, especially if the target customer belongs to A or A+ category in terms of socio-economic classification (SEC). No doubt, in-store experience plays an important role in satisfying the discerning


shopper, but value for money cannot be ignored. In a poll question, “Is the consumer more receptive to value-for-money deals than in-store experience”, asked by IndiaRetailing, 78.95 per cent of the respondents supported value for money, while just 7.37 per cent vouched for instore experience; the remaining 13.68 per cent preferred to stay neutral. BVK Raju, director, Q-mart Retail Ltd, firmly believes it's in-store experience that plays a more significant role than value-for-money deals. “Price proposition plays a role to some extent, but in totality it is the experience that drives the customer. Customer aspirations evolve continuously and so do their expectations. Once the focus is only on value, retaining customer loyalty becomes a big challenge. Retailers must, therefore, focus more on retail experience, rather than on price, to competitively differentiate themselves.” Raju further emphasises, “If the shopping experience is pleasant and enjoyable, the customer will come back, irrespective of any deals... the total shopping experience is what will drive the business in the long run.” Siddharthan Sundaram, director, retailer services, The Nielsen Company, however, does not agree with Raju. “During the economic slowdown in 2008-09, consumers were looking for offers and promotions and the expectation continues even today. As a result, retailers have been announcing new promos/schemes regularly to attract more footfalls and have started focusing on introducing store brands at a lower price (than the established brands). The in-store experience may play a role if the store is new and big, but that is not consistent,” he reasons. Commenting on the poll question, Esha Anand, head – marketing and visual merchandising, Hypercity Retail (India) Pvt Ltd, says, “It depends on the customer segment you are targeting. SEC A, B customers are more experimentative, cosmopolitan and progressive. They have aspirations for a better lifestyle. Increasing exposure to international trends and lifestyle, coupled with rising levels of affluence, has fuelled the desire to move up the social ladder." Vishnu Vardhan, head operations, Ruci & Idoni, agrees. “It depends on who we are targeting – customers belonging to A and A+ categories don’t just shop, they want to enjoy shopping; when they go to the market, they look for a comfortable, hassle-free place to enjoy shopping.” Stressing that there are many customers who put value first and are limited by the extent to which they can spend, Dev Amritesh, senior vice-president, marketing, Domino’s Pizza India, says, “We must recognise that in some occasions, categories and in certain mood states, customers attach a lot of premium to experience. The trick is to know what these occasions, categories and mood states are, in order to exploit them.” So, clearly, as experts point out, one doesn't take precedence over the other. Not


all customers are value conscious; some of them are willing to spend more in order to get hygiene, good customer service, or simply a favourable in-store experience. Both, therefore, have their roles to play, and which one to focus on depends solely on the targeted customer segment.

Modern Food Retail: A tough balancing act

Diwakar Kumar 20 Jul 2009

The story has been read 1381 times. The primary challenge in food retail, no doubt, is its supply chain, which is making things difficult for retailers and food processors to procure quality produce at competitive costs directly from farmers in India. Last year at the India Retail Forum held in Mumbai, this prime challenge was centrestage for retailers to sidestep efficiency bottlenecks of the modern marketplace. The Indian supply chain for fresh and processed food is extremely poor and characterised by panoptic wastage and poor handling. A food retailer’s supply chain must be short and tightened by professionally-drawn efficient practices to avoid long chain of


products from farm to fork, failure of which costs a retailer not just efficiency and just-in-time inventory control, but also results in a higher cost-of-operations burden. Last week, we posted an open question for our audience to poll on, on our sister website -- Food retailers should adopt the following strategy to stay out of financial trouble in a slump: 1. Cut costs, 2. Increase revenue, 3. Combination of the two. Over 19.05% of the respondents supported cost cutting, 33.33% were in favour of increasing revenues and 47.62% polled for a combination of the two strategies. Food safety and security are essential concerns for grocery retailers of all sizes. But the main challenge lies in boosting revenue, even as the cost of operations rise and sales appear to be slowing. A good retailer respects the value of always being in-stock, which in turn depends on highly efficient supply chain, inventory management and demand forecasting. In many cases, maximising square foot returns can entail additional spends – on upgraded cold chain systems, technology-enabled SCM, shopper data mining or hosting promotional events in alliance with suppliers, among on others. Sunil Sanklecha, managing partner of the Chennai-based supermarket chain Nuts ‘n’ Spices, points out that every penny a retailer spends is out of profits, but every penny of the revenue is not profit. Cutting cost while simultaneously increasing the revenue is the mantra of any business model. “To increase the revenue is every businessman’s challenge; retailers must rework their strategies very frequently as today’s strategy may not work after one year. One has to constantly work on strategising the business model in alignment with market shifts,” he suggests. “Rather than trying to fit the world to our business model, we need to fit the business model to the real world that exists." --Devangshu Dutta, chief executive, Third Eyesight.

He further adds, “We must also understand that cost cutting does not work everywhere; cutting down on the basic infrastructure and basic customer services is a no-no. We need to cut costs only in the areas where the input is not


productive.” In many cases, business projections are also unrealistically high; there are locations where the expected change-over from the kirana to modern retail has been over-estimated, and the business has been modelled with costs that are in line with the over-expectation of revenue.

In his Union Budget presentation earlier this month, India’s Union Finance Minister (FM) Pranab Mukherjee underscored the urgency of reviving growth, by identifying that the country’s immediate economic challenge is to return to nine per cent GDP growth, failure of which will cause considerable loss of revenue for the government and will affect the pace of job creation in certain sectors of the economy and the investment sentiments, all features of the domestic economy in the last two quarters of year 2008-09. In an attempt to ensure balanced and equitable development, Mukherjee has widely increased the allocations to social development schemes, which would play a vital role in boosting rural development and demand. In the context of the nation's food security, the declining response of agricultural productivity to increased fertiliser usage in the country is a matter of concern. And the decision to move from a product-based fertiliser subsidy mechanism to a nutrient-based one and the move towards a market pricing regime for petroleum


products should increase India’s economic efficiency. "To ensure balanced application of fertilisers, the Government intends to move towards a nutrient based subsidy regime instead of the current product pricing regime. It will lead to availability of innovative fertiliser products in the market at reasonable prices. This unshackling of the fertiliser manufacturing sector is expected to attract fresh investments in this sector. In due course it is also intended to move to a system of direct transfer of subsidy to the farmers," he announced. Assuming that the FM’s rural wishlist finds realisation, will his announcements succeed in spurring demand from India’s non-urban markets? If yes, how long will it be before measurable gains start to kick in? Responding to our weekly opinion poll question, Union Budget 2009-10 will boost rural consumption in -- a) Short term, b) Medium term c) Long term on the website, 53.57% of the respondents opted for short term, 35.71% for medium term, and 10.72% polled for long term. Clearly, the majority of visitors to our site expect the FM’s announcements to result in rural prosperity fairly rapidly. The government has given more emphasis on domestic consumption so that rural Indians may one day be turned into valuable consumers. "With more money in the hands of rural Indians, the opportunity for rural retail is brighter than ever. All such products and services that improve productivity and/ or enhance rural incomes will sell well. These could be agri inputs, lighting solutions, education products, mobile phones, transportation, health services etc. With increased incomes, products that improve quality of life – branded FMCG and household appliances – also sell well," noted S Sivakumar, Chief Executive of Agri Businesses, ITC Ltd. FM remained stuck to the UPA government's ‘Inclusive Growth’ theme by continuing its focus on the Aam Aadmi, but has done little to cheer Corporate India and FMCG industry in particular. While on the one hand the government has left untouched key matters like corporate tax, it has, on the other hand, hiked Minimum Alternate Tax (MAT) which would lead to higher tax outgo and erode the benefits accrued from the removal of Fringe Benefit Tax (FBT). "The


government's move to reinforce its intent on introducing national-level Goods and Services Tax (GST) by April 1, 2010 is a welcome step, but there's still no clarity on the road forward. While Mukherjee has said that consensus is emerging among the various stakeholders, what's missing is clarity on how various duties would be merged with GST, and a clear schedule of dates for its smooth implementation," said Amit Burman, Vice Chairman, Dabur India Ltd. Commenting on the same Viney Singh, managing director of Max Hypermarkets India Pvt. Limited says, "The FM’s announcement towards inclusive development -- PMAGY, NREGA, SGSY-- in the 2009-10 budget should definitely boost rural consumption." "The extent of the boost will largely be a function of the efficiency and timeliness with which these schemes are implemented. The past record on these counts has been quite dismal," he further adds. "The success of the monsoons will be another important influencer of rural consumption. The progress of the monsoons has so far been poor, but there is still some time wherein a recovery is possible." The Government has announced a series of measures -- interest subvention on farm loans, increase in allocation for NREGS by 144%, increase in target for agricultural flow, Rs 20 billion earmarked for rural housing scheme in NHS, allocation under the Indira Awas Yojana increased by 63% and under the RGGVY increased by 27% -- to increase rural income. Referring to these announcements, Thomas Varghese, CEO, Aditya Birla Retail says, "These measures will result in increased money supply in rural areas as well as sectoral growth and hence boost rural consumption in the short to medium term. Increased credit flow is also likely to lead to stabilisation of rural demand, which will also result in more stable consumption patterns." "The government has ensured more liquid cash and rural India is one of the particular areas where I would prefer to tack my business in coming days. So, I believe that the current budget will boost the rural sector which will bring


remarkable change in the long term," concludes Ambeek Khemka, Group President, Vishal Retail.

Overview "Hariyali Kisaan Bazaar" - a rural business centre, is a pioneering micro level effort, which is creating a far-reaching positive impact in bringing a qualitative change and revolutionizing the farming sector in India. It is also an example of how well meaning corporates can contribute to development of agriculture by building sustainable business models. DCM Shriram Consolidated Ltd. (DSCL), capitalising its over 35 years of experience in the agri-input markets & first hand knowledge of Indian farmers, is setting up a chain of centres aimed at providing end-to-end ground level support to the Indian farmer & thereby improving his "profitability" & "productivity".

The key constraints of the Indian farming sector, being addressed by "Hariyali" are: • • • • •

Lack of last mile delivery mechanism of modern agriculture know-how & practices. Lack of availability of critical good quality agri-inputs. "Middlemen" driven farmer interface. High cost credit. Lack of direct access to buyers of varied & high value crops.

Hariyali Kisaan Bazaar The "Hariyali Kisaan Bazaar" chain, seeks to empower the farmer by setting up centres, which provide all encompassing solutions to the farmers under one roof. Each "Hariyali Kisaan Bazaar" centre operates in a catchment of about 20 kms. A typical centre caters to agricultural land of about 50000-70000 acres and impacts the life of approx. 15000 farmers.


Each centre is engaged in: •

• •

Bridging the last mile: Provides handholding to improve the quality of agriculture in the area. Provides 24X7 support through a team of qualified agronomists based at the centre. Quality Agri-Inputs: Provides a complete range of good quality, multi-brand agri inputs like fertilizers, seeds, pesticides, farm implements & tools, veterinary products, animal feed, irrigation items and other key inputs like diesel, petrol at fair prices. Financial Services: Provides access to modern retail banking & farm credit through simplified and transparent processes as also other financial services like insurance etc. Farm Output Services: Farm produce buyback opportunities, access to new markets & output related services. Other Products and Services:Fuels, FMCG, Consumer Goods and Durables,Apparels etc.

These centers provide the much needed respect/dignity and freedom to the Indian farmer. In the near future, Hariyali Kisaan Bazaars plan to move beyond agri to meet the other needs of farmers as customers. Top

Technology as an important enabler IT has been a critical backbone to the chain of centres. It is being used to provide online support on latest technical advancements, weather forecasts, mandi (market) prices, fair & transparent billing to farmers as well as in maintaining extensive farmer databases with micro information about the farmers' field to provide customized service to the farmers.

Farmer Response So far over 302 Hariyali outlets hav been set up across eight states- Haryana, Punjab, Uttar Pradesh, Rajasthan, Chattisgarh, Madhya Pradesh,Maharashtra and Andhra Pradesh The ground-level agri-support is already yielding results in the farmer's fields. Whether it is adoption rate of high yielding seeds, right doses of fertilization, productivity of cattle-


feed, moisture conservation measures, adoption of new crops/allied occupations or adoption of new technologies like zero tillage, the farmers in catchment of Hariyali centres are already way ahead of the national averages. Future Plans Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national footprint covering all the major agricultural markets of the country. This would mean catering to cultivable land of over 30 million acres and touching the lives of over 10 million farmers

. We regard our agri business as a key growth driver for us. We believe that the agricultural sector is a high potential area where we, with our expertise and strengths accumulated over decades of presence in this sector, can add considerable value and capitalise on emerging opportunities. Over the years through our various agri-businesses we have developed extensive working relationship and knowledge about the farmers. Our agri business offerings comprise agricultural inputs, both manufactured and merchandised, outputs, distribution and services. Our agri-inputs include Urea, Seeds and Pesticides manufactured by us. Additionally, we are also engaged in the marketing of a range of other agri inputs SSP, and other nutrients such as Zinc Sulphate, soluble fertilisers etc. In terms of agri outputs, we manufacture and market sugar and its by-products – Molasses and Bagasse. With the objective to move towards providing total “ Solutions” to the farmers, we have initiated a “ Rural Retailing” initiative recently which we believe holds immense promise in terms of untapped opportunities, scalability and growth potential. Being implemented under our “Hariyali Kisaan Bazar” initiative, we offer multiple products and services to the rural and farming community, including agri inputs, diesel and petrol ( under alliance with BPCL) ,consumer goods, durables, apparels, insurance, agronomy advisory, credit, and contract farming as a part of this initiative. It is proposed to extend the offerings to other products and services over a period. All of our agri business activities are supported by a strong “Shriram” brand equity that our products enjoy in the marketplace. All our agri business units are supported by a robust and extensive distribution and retail network. From about 3,000 retail outlets five years ago, we now have more than 6,000 retailers where all our manufactured and merchandised products are available to the


country's farming community. We also have around 900 wholesalers to distribute our agri products, a large number of these have been with us for 3-4 decades. We offer online agronomy services to farmers through 100 centres – Shriram Krishi Vikas Kendras – established by us across the country that operate with the objective to increase farmer profitability by providing them effective agronomy services. We have a team of 102 agricultural graduates, recruited from local institutions and universities, and 15 development officers who work along with farmers to assist them in their endeavours. To ensure that our agronomists provide knowledgeable and unconditional advice, we have not assigned any sales responsibilities to our agronomists. The Shriram Krishi Vikas Kendras help upgrade farming methods and also provide assistance to the farming and rural community in the educational, hygiene and sanitation needs of the community as well as health care support for animal husbandry. Such initiatives have made us one of the most reliable and trusted partners of the Indian agri community.


Strengths, Weaknesses, Opportunities and Threats (SWOT). SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. .

In SWOT, strengths and weaknesses are internal factors. For example:

A strength could be: • • • • •

Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service.

A weakness could be: • • •

Lack of marketing expertise. Undifferentiated products or services (i.e. in relation to your competitors). Location of your business.


• •

Poor quality goods or services. Damaged reputation.

In SWOT, opportunities and threats are external factors. For example: An opportunity could be: • • • • •

A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor.

A threat could be: • • • • •

A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service.

SWOT Analysis of Aadhar retail Strengths • • •

Aadhar retail is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Aadhar retail has grown substantially over recent years, and aadhar has experienced good expansion. The company has a good competence involving its use of information technology to support its national logistics system. For example, it can see how individual products are performing store-by-store at a glance. IT also supports AADHAR RETAIL's efficient procurement. A focused strategy is in place for human resource management and development. People are key to AADHAR RETAIL business and it invests time and money in training people, and retaining a developing them.


Weaknesses •

AADHAR RETAIL is the smallest grocery retailer rural area and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. Since aadhar sell products across many sectors (such as clothing, food,non food or stationary etc), it may not have the flexibility of some of its more focused competitors.

Opportunities • •

To take over, merge with, or form strategic alliances with other retailers, focusing on more rural area or some middle class specific markets such as Region. The stores are currently only trade in a relatively small number of cities. Therefore there are tremendous opportunities for future business in expanding consumer markets, rural Indian area. New locations and store types offer aadhar opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites. Opportunities exist for aadhar to continue with its current strategy of small, super centres in mostly rural area

Threats • • •

Being number one means that you are the target of competition, locally and globally. Being a global retailer means that you are exposed to political problems in the countries that you operate in. The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.

Introduction Retailing includes all activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Any organization selling to final consumers – whether a manufacturer, wholesaler or retailer- is doing retailing. It does not matter how the goods or services are sold (by person, mail, telephone, vending machine or internet) or where they are sold (in store, on the street, or in consumer's home).


There are 3 types of retailers: 1. Store retailer 2. Non Store retailer 3. Retail Organization From the assortment point of view, Store retailers* are of 5 types: 1. 2. 3. 4. 5.

Specialty Store Departmental Store Super market Convenience Store Discount Store

* = Definition of the store retailer types is provided in the glossary. From customers service point of view: 1. Self-service retailing: Many customers are willing to carry out their own locatecompare-select process to save money. 2. Self-selection retailing : Customers find their own goods, although they can ask for assistance. 3. Limited service retailing: These retailers carry more shopping goods, and customers need more information and assistance. The stores also offers services such as credit & merchandise-return privileges. 4. Full service retailing: Salespeople are ready to assist in every phase of the locate-compare-select process. Although majority of goods & services is sold through stores, non-store retailing has been growing much faster than store retailing. Major non-store retailer types: 1. Direct Selling: It deals with door-to-door or at home sale parties i.e. it involves one-to-one or one-to-many selling. Example > Eureka Forbes, Amway, Mary Kay Cosmetics. 2. Automatic Vending: Example > ATM 3. Buying services: Is a store less retailer serving a specific clientele-usually employees of large organizations-who are entitled to buy from a list of retailers who have agreed to give them discounts in return for membership. Example > 4. Direct marketing: It involves direct response marketing. The different forms of direct marketing are: Direct mail, catalog marketing, telemarketing, television direct response marketing and electronic shopping. Example: Dell Computers


Retail Organization mainly falls into 4 major categories: 1. 2. 3. 4.

Corporate chains: Example > Pantaloons, Westside Retail Co-operative: Example > Amul, Samavaika, Khadi Gram Yudog Consumer Co-operative: Example > Apna Bazar Franchise Organization: Example > Monginis, Café Coffee day.

Global Scenario Retail stores constitute 20% of US GDP & is the 3 rd largest employer segment in USA. China on the other hand has attracted several global retailers in recent times. Retail sector employs 7% of the population in China. Major retailers like Wal-Mart & Carrefour have already entered the Chinese market. In the year 2003, Wal-Mart & Carrefour had sales of US $ 70.4 Crore & US $ 160 Crore respectively. The global retail industry has traveled a long way from a small beginning to an industry where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200 retailers alone accounts for 30 % of the worldwide demand. Retail turnover in the EU is approximately Euros 2,00,000 Crore and the sector average growth is showing an upward pattern. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06. On the global Retail stage, little has remained same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then & it still holds that distinction. Other than Wal-Mart's dominance, there's a little about today's environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted & retailers' operating systems today are infused with far more technology than was the case six years ago. e= estimate.

Indian Scenario Retailing in India is the largest employer after agriculture. It employs almost 7% of the total work force in India and has a contribution of 14% to the national GDP. In the year 2004 , the size of Indian organized retail industry was Rs 28000 Crore, which was only 3% of the total retailing market. Organized retailing is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1,00,000 Crore by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the end of the decade. The projection for the year 2005 is Rs 35000 Crore. Though with a population of a billion and a middle class of 300 million (upper middle class= 40, Middle class =150 & lower middle class = 110), organized retailing is still at its infancy in India. The great Indian middle class is estimated to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. It is projected that by the year 2010, 65% of the Indian population will be in the age group of 10-49 years, which makes the scenario even more attractive. India has the largest retail network with 1.2 Crore outlets but only 4% of them are larger than 500 sq. feet in size. USA on the other hand has 9 Lakh outlets catering to more than 13 times the total retail market size of India. Thus India has the highest number of outlets per capita in the world with a widely spread retail network but with the lowest


per capita retail space (@ 2 sq.ft. per person). AT Kearney has ranked India as the 2nd most attractive retail market after Russia, in its Global Retail Development Index 2004 report. Retailing, one of the largest sectors in the global economy, is going through a transition phase in India. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. Let us look at the evolution process:

Detailing reasons why Indian organized retail is at the brink of revolution, the IMAGES-KSA report says that the last few years have seen rapid transformation in many areas and the setting of scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern formats overwhelmingly. Retail Space is no more a constraint for growth. India is on the radar of Global Retailers and suppliers / brands worldwide are willing to partner with retailers here. Further, large Indian corporate groups like Tata, Reliance, Raheja, ITC, Bombay Dyeing, Murugappa & Piramal Groups etc and also foreign investors and private equity players are firming up plans to identify investment opportunities in the Indian retail sector. The quantum of investments is likely to skyrocket as the inherent attractiveness of the segment lures more and more investors to earn large profits. Investments into the sector are estimated at INR 2000 - 2500 Crore in the next 2-3 years, and over INR 20,000 Crore by end of 2010. Few of India's top retailers are: 1. Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is already India's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31 crores & by 2010; it is targeting revenue of Rs 8,800 Crore. 2. Food World : Food World in India is an alliance between the RPG group in India with Dairy Farm International of the Jardine Matheson Group. 3. Trinethra : It is a supermarket chain that has predominant presence in the


southern state of Andhra Pradesh. Their turnover was Rs 78.8 Crore for the year 2002-03. 4. Apna Bazaar : It is a Rs 140-crore consumer co-operative society with a customer base of over 12 lakh, plans to cater to an upwardly mobile urban population. 5. Margin Free : It is a Kerala based discount store, which is uniformly spread across 240 Margin Free franchisees in Kerala, Tamil Nadu and Karnataka. Wholesale trading is another area, which has potential for rapid growth. German giant Metro AG and South African Shoprite Holdings have already made headway in this segment by setting up stores selling merchandise on a wholesale basis in Bangalore and Mumbai respectively. These new-format cash-and-carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for all their needs. SWOT Analysis A SWOT analysis of the Indian organized retail industry is presented below: Strength: 1. Retailing is a " technology-intensive" industry. It is technology that will help the organized retailers to score over the unorganized retailers. Successful organized retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart pioneered the concept of building competitive advantage through distribution & information systems in the retailing industry. They introduced two innovative logistics techniques – cross-docking and EDI (electronic data interchange). 2. On an average a super market stocks up to 5000 SKU's against a few hundreds stocked with an average unorganized retailer. Weakness 1. Less Conversion level : Despite high footfalls, the conversion ratio has been very low in the retail outlets in a mall as compared to the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store of retail chain has an average conversion of about 50-60%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10%. 2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base. Opportunity 1. The Indian middle class is already 30 Crore & is projected to grow to over


60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment. 2. Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010. 3. Percolating down : In India it has been found out that the top 6 cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. 4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a one-stop destination for all their needs." Hariyali Bazar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with the required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experimenting with the farmers of Punjab for growing the right quality of tomato for its tomato purees & pastes. Threat 1. If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. 2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. Conclusion To conclude, it can be said that though the global retail industry has reached its maturity, the Indian retail industry is still at its infancy. But with the huge potentiality existing in the Indian market, it is expected to grow in leaps and bounds in the near future. Instead of comparing the total global retail industry with the Indian retail industry, lets compare Wal-Mart alone with the Indian retail industry & put forward few interesting facts: 1. Retail Sales of Wal-Mart for the year 2003 was US $ 25,632.9 Crore; higher than the size of Indian retail industry. 2. The size of any Wal-Mart store is much higher than the size of any existing shopping mall in India.


3. Wal-Mart has over 4,800 stores, which is unparallel to any of the India's large format store. 4. New stores opened annually by Wal-Mart are about 420, much higher than all organized Indian retailers put together. 5. The sales per hour of $2.2 Crore are incomparable to any retailer in the world. 6. Wal-Mart has around 30,000 suppliers throughout the world and more than 600,000 SKU's on its web site, a number that cannot be compared. 7. Daily customers are about 1.57 Crore (almost equivalent to Mumbai's entire population). 8. Time between each Barbie Sale at Wal-Mart is just two seconds (same rate at which babies are produced in India!) Overall, it can be said that " Retail Industry" in India will emerge as one of the best 5 Business sectors in this decade. Glossary Specialty Store: Narrow product line with deep assortment, viz apparel stores, book stores etc. A clothing store would be a single line store, men's clothing store would be limited line store & men's custom-shirt store would be a super specialty store. Example: The limited, The Body Shop. Departmental Store: Several product lines-typically clothing, household goods, home furnishings- with each line operated as a separate department managed by specialist buyers or merchandisers. Example: Sears, Bloomingdale's. Supermarkets: Relatively large, low-cost, low-margin, high volume, self-service operation designed to serve total needs for food, laundry & household maintenance products. Example: Kroger, Safeway. Convenience Stores: Relatively small store located near residential area, open long hours, seven days a week and carrying a limited line of high-turnover convenience products at slightly higher prices. Example: 7-Eleven, Circle K. Discount Store: Standard merchandise sold at lower prices with lower margins and higher volumes. True discount stores regularly sell merchandise at lower prices and offer mostly national brands. Example: Wal-Mart, Kmart. Off-price retailer: Merchandise bought at less than regular wholesale prices & sold at less than retail; often-leftover goods, overruns and irregulars obtained at reduced prices from manufacturers or other retailers.


Factory outlets are owned and operated by manufacturers and normally carry the manufacturer's surplus, discontinued or irregular goods. Example: Mikasa(dinnerware), Dexter (shoes) Independent off-price retailers are owned & run by entrepreneurs or by divisions of larger retail corporations. Example: T.J.Maxx, Filene's Basement. Warehouse clubs (or wholesale clubs) sell a limited selection of brand name grocery items, appliances, clothing and other goods sold at deep discounts to members who pay an annual membership fees. Warehouse clubs serve small businesses & group members from government agencies, nonprofit organizations and some large corporations. They operate in huge, low-overhead, warehouse like facilities & offer few frills.They offer rock bottom prices- typically 20% to 40% below super market and discount stores prices but make no home deliveries and accept no credit cards. Example: Sam's Clubs, Max Clubs. Superstore: Averages 35,000 square feet of selling space traditionally aimed at meeting consumers' total needs for routinely purchased food and non food items. Usually offer services such as laundry, dry cleaning, shoe repair, check cashing & bill paying. A new group called "category killers" carries a deep assortment in a particular category & a knowledgeable staff. Example: Borders books & Music, IKEA. Combination stores are a diversification of the supermarket store into the growing drug-and-prescription field. Combination food & drug stores average 55,000 square feet of selling space. Example: Jewel & Osco stores. Hypermarkets range between 80,000 and 220,000 square feet and combine supermarket, discount & warehouse retailing principles. Product assortment goes beyond routinely purchased goods & includes furniture, large & small appliances, clothing items and many other items. Bulk display & minimum handling by store personnel with discounts offered to customers who are willing to carry heavy appliances and furniture out of the store. Hypermarkets originated in France. Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain), Meijer's (Netherlands).


OBJECTIVES OF STUDY "Any task without sound objectives is like Tree without roots". Similarly in case of any research study undertaken, initially the objectives of the same are determined and accordingly the further steps are taken on. A research study may have many objectives but all these objectives revolve around one major objective which is the focus of the study. In this study, the focus is on the emergence of retail markets as the most happening market on which every marketer has an eye. And so this study will be based on studying the emergence of retail market in various contexts. The following are the objectives of this research study :-

♦ To study the present scenario of rural retail marketing in India. ♦ To study aadhar products and services ♦ To analyze the marketing strategies of aadhar and suggest new strategies

♦ To make a comparative study of aadhar in rural market


RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them. TYPES OF RESEARCH 1

Descriptive research


Analytical research


Qualitative research


Quantitative research

DESCRIPTIVE OR EX-POST FACT RESEARCH:To conduct the research work accurately, we conducted the descriptive research. It includes surveys & fact-finding inequity of different kinds. ANALYTICAL RESEARCH: _ In it we have to use the fact & information already available & analyses of these to make an evaluation of project. QUALITATIVE RESEARCH:In selecting the appropriate research design of the study & the type of data needed, the choice of data collection techniques is four grouped. It is done for:1Consumer needs


Consumer’s preferences for brand


3In depth understanding of consumers 4Availability for consumer QUANTITATIVE RESEARCH:Quantitative research is obtained to rate the different aspects on parameter i.e. image of brand, brand equity, expectation of customers, awareness among customer for scheme, switch ability of customers etc.

METHODOLOGY:The project include both primary & secondary source of data. The data collected through these sources has organized, analyzed & interpret so as to draw conclusion &to arrive at appropriate recommendations. 1. A primary source of data includes the personal interview from various accounts officers in the enterprise. 2. The secondary sources of data include annual report, website of Aadhaar Retailing Ltd. Company which contains the details which is helpful for making my project report. STEPS IN RESEARCH METHODOLOGY:-

1. Collection of data 2. Organisation of data 3. Presentation of data 4. Analysis of data 5. Interpretation of data COLLECTION OF DATA:-


Both the primary & secondary data has been collected from the market & company. The company provided the secondary data & primary data is collected through the medium of face-to-face interaction & interview from various persons in the enterprise. ORGANISATION OF DATA: Data once collected the further processing is done, the data collected by me are carefully done through in a useful & relevant manner &properly organized. PRESENTATION OF DATA:The data collection is of no use unless & until it is given in the presentable form. Thus after proper organization the data is given in presentable form with the complete details, with the help of bar diagram, pie carts etc.

ANALYSIS OF DATA:The data is carefully analyzed keeping in the consideration both the pros & cons for the purpose of arriving at concrete conclusion.

INTERPRETATION OF DATA:After carefully analyzed the data, it has been aptly interpreted in order to give concrete conclusion & proper recommendation. Research in common parlance refers to a search to a search for knowledge. One can also define

research as a scientific and system search for pertinent information on a

specific topic. In fact research is an art of scientific investigation. Research Design: - The research design makes it clear weather the study is exploratory or conclusive in nature and whether it is case statistical or experimental in design. The study is a cross sectional study because the data were collected from many source’s. For the purpose of present study a related sample of population was selected on the basis of convenience. Data collection method: - There are four basis data collection approach in research, They are :-Primary data -Secondary data


-Analysis of case studies -Observation Primary consideration in sampling is as follows:-Population -Sample frame -Sampling unit -Sampling size -Sample plan. Analysis-Data are useful only after analysis. Data analysis involves converting a series of recorded observation into descriptive statement and inferences. Nature of sampling process, the measurement instrument and the data collection method the type is analysis is to be used. Inference and Report-Once the data is analyzed statistically putting various constrain; I conclude certain facts that can be summed up as interface of the research process. Finally the whole thing becomes presentable as report.


Research is the art of scientific investigation. It is the scientific investigation in order to find out facts and solution of a particular problem. It is the search for knowledge.


Research instruction

Questionnaire, personal interview


Questionnaire form




Data Collection from Secondary and primary sources Secondary Data – Books, Magazines and Published data and information, report on the labours Primary Data –Questionnaire, Interviews Data Sources:There are two types of data were taken into consideration i.e. Secondary data and primary data. The secondary data has been used to make the analysis because we have no much sufficient time and resources to collect the primary data.

Secondary Data: Secondary data is that data which is collected for other purpose. This is indirect collection of data from sources containing past or recent past information like annual reports, balance sheet, books, newspapers and magazines etc. Collecting the Information: For this research methodology, we were collecting information with the help of annual reports, balance sheets and other company’s publications. Analyse The Information: In this research methodology the next step is to extract the pertinent finding from the collected data. We tabulated this collected data and develop the means of analyzing the data. There are so many tools for financial analysis but we mainly concentrate on the ratio Analysis and supportive information taken from the other means i.e. comparative financial statements with its major components viz. common size statement, comparative financial statement.

Problems related to rural retail marketing

Barter system.


Underdeveloped people and underdeveloped markets

Lack of proper physical communication facilities.

Many language and Dialects.

 Dispersed population and trade.  Poor road connectivity.  poor availability of dealers.  low destiny of shops per village and high variation in their concentration.  poor storage system,leading to inadequate stocking .

Inadequate Media coverage for rural communication.

Highly credit driven market and low investment capacity of retailers.

Data Analysis and Interpretation 1) Have you ever been visited Aadhar retail ltd? a) Yes Response Yes no Total

b) No Response in no. 45 15 60

Response in % 75% 25% 100%


2)Do you need discount or quality in product? a) discount


b) quality

Response in no. 45 15 60

Response in % 75% 25% 100%


3) For how long have you been dealing with the Aadhar retail ltd? a) 1 year

Response 1 year 2 years Total

b) 2 years

No. Of respondents 40 20 60

Percentage 67 33 100


4) Are you satisfied with the customer service offered? RESPONSE Good Average Need to be improved Total

NO. OF RESPONDENTS 15 30 15 60

PERCENTAGE 25 50 25 100


5) On what basis Aadhar retail ltd is better than other retail outlets? •







Criteria Price Quality Availability Service Others Total

No. of respondents 20 15 5 5 15 60

Percentage 34 25 8 8 25 100

6) Do you think Aadhar is better than haryali or choppel? • Aadhar • Haryali


Company name

No of respondent















8) Which of these products do you prefer to buy from aadhar ? Product type FMCG Grocery Items General Merchandise Agri Products Consumer Durables Total

No. of respondents 10 15 5 25 5 60

Percentage 17 25 8 42 8 100


9)How frequently do you visit Aadhar Retail outlet? •


Once in a week



Time period Daily Once in a week Fortnightly Monthly Total

No. of respondents 5 15 30 10 60

Percentage 8 25 50 17 100


10)what medium of advertisement do you respond to? medium magazine T.V(local cable channel) News paper OTHER TOTAL

respondent 10 20 25 5 60

percentage 16 34 41 9 100


11)How much rating will you give to this store? rating average very good Excellent can’t say Total

respondent 20 12 13 15 60

percentage 34 20 22 24 100


12) Any recommendations???

 CONCLUSION The concept of Retail Marketing in Indian Economy has always played an influential role in the lives of people. In India, leaving out a few metropolitan cities, all the districts and industrial townships are connected with rural markets. The rural retail market in India is not a separate entity in itself and it is highly influenced by the sociological and behavioral factors operating in the country. The rural population in India accounts for around 627 million, which is exactly 74.3 percent of the totalpopulation. The Registrars of Companies in different states chiefly manage: The rural retail market in


India brings in bigger revenues in the country, as the rural regions comprise of the maximum consumers in this country. The rural market in Indian economy generates almost more than half of the country's income. Rural marketing in Indian economy can be classified under two broad categories. These are: • •

The market for consumer goods that comprise of both durable and non-durable goods The market for agricultural inputs that include fertilizers, pesticides, seeds, and so on

RECOMMENDATIONS & SUGGESTIONS  PRICING Pricing is the major element for retail marketing so cheaper price product are affordable for middle class people they need more discount more schemes with purchase.



Technology is the major part of the retail area without nothing is possible through media and electrification we improve the lifestyle of people.

 MAINTAIN THE QUALITY STANDARD Quality standard is also very important part of market because some people are quality oriented customer.

 ESTABLISHMENT OF DISTRIBUTION CHANNELS Retail market certainly offer a big attraction to marketers, it would be naïve to think that any company can enter the market without facing any problem and walk away with sizable share .but there are large number of small marketers and shopkeepers .ke a good distribution channel.

Underdeveloped people and underdeveloped markets Lack of proper physical communication facilities so trained people. Provide more discounts and offers to people Increase publicity and add to the company Many language and Dialects Make the idol distribution channel in for particular consumption area Improve the electrification in the villages. More add to their company in news paper through media. 89

Motivate to increase investment capacity of retailers. BIBLIOGRAPHY WEBSITES    www. Aadhar retailing

  www.retail REFERENCES:  Aaker, Kumar, Day, (2005), “secondary and exploratory research” Marketing Management, John Wiley & Sons, Inc 7th ed., p 102-121  McDaniel, Gates, (2001), “creating a research design” Marketing Research Essentials, South Western Publications, 3rd ed., .  Miller, T.W, (2001), “Can We Trust Data of Online Research” Marketing Research, vol.13, Issue 2, p 26-32  Zickmund, W .G.,(2002), “Exploring Marketing Research” Thomson South- western Publications



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