Overview Of Retail Sector

The retail sector has been at the helm of Indias growth story. The sector has evolved dramatically from traditional village fairs, street hawkers to resplendent malls and plush outlets, growing from strength to strength. According to the Indian Council for Research on International Economic Relations (ICRIER), India is the seventh-largest retail market in the world, and is expected to grow at a CAGR of over 13% till FY12. In FY07 retail sales reached Rs 13,300 bn and amounting to around 33% of Indias GDP at current market prices1. According to the Central Statistical Organization (CSO) estimates, the total domestic trade (both retail and wholesale) constituted 13.0% of countrys GDP in 1999-2000, which has gone up to 15.1% in FY07.

Rising disposable income of Indian middle-class

The Indian middle-class can be categorized into seekers and strivers, which is the consuming class and the prime target segment for retailers in India. In 2005, these two categories together constituted around 6.4% of total households in India but accounted for 20% of the disposable income.

By 2015, the middle class is expected to constitute around 25% of total households and account for 44% of the total disposable income, and by 2025, the respective figures are likely to go up to 46% and 58%.
The Indian middle-class population and their growing disposable income levels will drive the future growth of organized retail in India6.

Easy credit availability, boon for organized retail

The higher penetration of credit cards in India has also boosted the growth of the organized retail sector; in fact, the young populations increasing fancy for plastic money has further fuelled their purchasing power. Even though the organized retail sector is at a nascent stage (constituted 5.9% of the total retail industry in 2007), it is growing at a rapid pace. Moreover, the spurt in issuance of credit cards and loans by both Indian as well as foreign banks has further boosted the segments growth. According to the RBI, as on FY09, the total number of outstanding credit and debit cards in India was 24.7 million and 137.4 million respectively.

FDI scenario in India

In 1991, the Indian government introduced the economic policy to attract foreign investments and since then, it has amended the policy from time to time in various sectors to allow higher levels of foreign participation. The government policy in retail sector allows 100% foreign investment in wholesale cash-andcarry and single-brand retailing but prohibits investments in retail trading. In 1997, the government imposed restrictions on FDI in retail sector but in 2006, these were lifted and opened in single-brand retailing and in cash-and-carry formats. The cash-and-carry business is the easiest mode of entry for foreign retailers into India. Many global players like Metro and Shoprite have already entered the market. Wal-mart has forged an alliance with Bharti for a cash-and-carry business, and Bharti is concentrating on front-end retail. Similarly, Tesco has entered India through an alliance with Trent (Tata Group). Apart from investing in the cash-and-carry business, Trent will also support the back-end activities of Trent Ltd.

FDI scenario in India (Cont.)

Many foreign brands have also entered India either through JVs with leading Indian retailers or through exclusive franchisees to set up shop in India. Louis Vuitton, Marks & Spencer Plc, GAS, Armani are some such operators who have entered India through JVs. McDonalds, KFC, Dominos are the retailers who have taken the franchise route. Slowly the government is opening up to the idea of permitting FDI in the Indian retail sector; consequently there is greater momentum in the sector. Last year, owing to the global meltdown, investments dropped in all sectors. The government has therefore changed the guidelines for foreign investments to boost investments in the current year. This move is certainly likely to improve the investment climate in the Indian retail space.

Our Company Summary

Name: Type : Foundation : Easy Shopping Hyper Market 2011

Headquarters:
Industry :

Ghaziabad
Retail

Products and Services: Everything Promoter : Punch Line: No. of Stores: Group 3 Kahi Bhi - Kabhi Bhi Starting will be done with 1 store

Our Company Summary(cont.)

One stop shopping at discounted price
Provided best Products at best Prices. Targets price and time conscious majority segment of the customers. Classless Destination Estimating attraction of few thousand customers per day Customers will get everything " Kahi Bhi - Kabhi Bhi". First place in India, where customer can visit the store or they can order online for free home delivery.

Board Of Directors
Anushikha Paul: Pankaj Gupta : Pulkit Arora : Meenakshi Gupta : Farhan Ahmed : Mahesh Jain : HR Head Marketing Head Sales head Finance Head IT Head Customer Service Head

Group Vision

We will deliver Everything, Everywhere, Every time, In Every way for Every Indian Consumer in the most profitable and comfortable manner.

Group Mission
We share the vision and belief that our consumers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all consumer segments, for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.

Key To Success
WINNING ATTITUDE: Attitude Produces Success! PLANNING: Your Roadmap To Success: If you dont have a dream, how can you ever have a dream come true. KNOWLEDGE: The Key That Unlocks The Door: Knowledge is power, and is available to everyone. THE ASSOCIATION FACTOR: Building Effective Relationships Is Critical To Business Success! IMPROVING YOUR SERVE: Achieve your goals by helping others achieve their goals.

Competitive Analysis
1)K Raheja Group
Shoppers Stop Home Shop Mother care Hyper City Cross Word Planet M

2) RPG Group
Spencers Supermarket Spencers daily Spencers hyper market Music World

3) Reliance Group
Subhiksha Reliance Fresh Reliance Trendz Reliance Digital

4) Tata Trent
West Side Star India bazaar Land Mark

5) Pantaloon Retail
Pantaloon Big Bazaar Food bazaar Future Bazaar

6) Aditya Birla Group

7) Bharti Group 8) Godrej Group

Place

Process

Price

7 Ps Of Easy Shopping
People Product

Promotion

Physical Evidence

Product Mix
1) Fashion
Formal Wear Casual Wear Night Wear Sarees Suits Ethnics Party Wears

2) Food
Ready to Eat Ready to Cook Spices Staples International Food Tea & Coffee

3) Chill Station
Soft Drink Packed Juice Milk Items Frozen Food Ice cream

4) Fashion & Jewellery

Foot Wear Beauty care Nakshatra

5) Home & Personal care

Shampoos Detergents & soaps Liquid Wash Creams & Deodorants' Home Cleaners Utensils Crockery's

6) Electronic bazaar
TV & LCD Washing machine Refrigerator Personal care Microwave Small Appliances Laptops & Computers All Computer Accessories Kitchen Appliances

7) Furniture Bazaar
Living Room Furniture Bed Room Furniture Kitchen Furniture Bean Bags paintings Decorative Items

8) Service Section
All Types Of Insurances Policies Investment Schemes

Pricing
We will work on the model of economies of scale. Our Pricing objective will be to gain maximum market share. Techniques Used are: 1) Value Pricing: We will offer our customers the lowest available price, without coupon clipping or waiting for discount promotions. 2) Promotional Pricing: We will offer financing at lower interest rates. The concept of cycological discount ( Rs99, Rs499) will be used as promotional tool. We will also cater on special event pricing, close to Diwali and other festivals. 3) Differential Pricing : Time pricing method will be implemented i.e. difference in rates based on peak and non peak hours. 4) Bundling: Selling Combo packs and offer discounts to the customers. Combo packs will add value to the customers purchase.

Place
We are going to start it with a single store that too in Ghaziabad. Store will be opened at the most common place in Ghaziabad i.e. Ghanta Ghar. We can easily expect thousands of customers per day.

Promotion
We will start many new and innovative cross sell and up sell marketing strategies in the Indian retail market. The various promotion techniques we will use includes: Every alternate Week Sabse Sasta. Free Home Delivery

Free Membership
Junk Sweep Offer ( Exchange). Cash back on credit card purchases. Road side boards Adds in print media.

Below the Line promotion Coupon discounts Free Gifts with every purchase Competitions & Prizes Money back offers Exchange offers

Above the Line promotion Advertisement in TV & Newspaper Company Website on Internet Online Shopping Services Advertisement on Radio FM Brand Endorsement

People
They are one of the key assets of any organization. The salient features of people at Easy Shopping are: Well trained staff, staff employed by us will be well suited for modern retail. Well dressed staff will improve the overall appearance of the store.

Employees will be motivated to think out of the box. Retail sector is in growth stage, hence staff will be empowered to take innovative steps.
At least 50 employees will there at the outlet.

Multiple counters for payment, Security guards at every gate will create a customer friendly environment.

Process
The goods dispatched and the purchasing area will have certain salient features which includes:

Multiple counters with trolleys to carry the items.

Proper display/posters for every section. Home delivery section will be at separate level. Delivery will be done within TAT.

Physical Evidence
It will deal with the final deliverable or the display of written facts. This will include the current system and the available facilities.

Positioning Of Easy Shopping

High Services

Easy Shopping
Low Price High Price

Low Services

Financial Analysis
& Break Even Point

Thank You