Executive Summary

Without practical training, management education is meaningless so long with the

theory, practical training is provided to the management students to expose them to

the actual working environment of any organization. Such training provides a

framework of knowledge relating to the concepts and practices of the assigned

topics in the organization. The summer training is an integral part of the course

curriculum of BBA-MBA (Integrated). In this the student is in a position to

analyze the integral working of an organization with mature eyes and understand

the dynamics in a much better manner. Demographics continue to show a positive

report to spur retailing growth. Consumers aged 20-45 years is emerging as the

fastest growing consumer group and the mean age of Indians is now pegged at 27,

a mean age that reinforces spending across all the retailing channels of grocery,

non-grocery and non-store. The government stance of protecting local retailers and

prohibiting 100% foreign direct investment in retailing continued in 2005,

restraining international retailers' entry. However, there was gradual economic

reform, giving way to easier and faster franchising agreements as well as the

loosening of zonalregulations on retail expansion, thus stimulating retailing.

Non-store retailing is expected to continue its fast-paced growth from a miniscule

base.Across allchannels, growth in retailing is expected to be boosted heightened

competition during the forecast period due to the growing. Retailing is emerging as

a sunrise industry in India and is presently the largest employer after agriculture. In

the year 2010, the size of Indian organized retail industry was Rs 28,000 Crores,

which was only 3% of the total retailing market. The sunrise of the organised

retailers in India creates a major turn in the retail industry. Top major organised

retail players are increasing their market share day by day. Their main focus is

based on FMCG and consumer durables. With modernization, Indian culture is

aping the western dressing sense and lifestyle and these techniques is promoting by

the Retailers and by this they are generating a remarkable revenue from the Indian

consumers. My training was at Hypercity, Amritsar. Hypercity is the product of

Raheja`s group. It is one of the biggest retail store in Punjab.I had learned a lot

about the operational activities occurring in the retail stores to manage their retail

store. Some of my learnings are as follows:

How the various operational activities helps to provide best service to the

customers.

How to manage the inventories and operational activities like-

o Whole supply chain(buying and receiving),

o Managing cost(carrying cost and holding cost),

o Daily checking price updates or change in price,

o Cleanliness and hygiene of store,

o PICS (Perpetual Inventory Count Sheet),

o Intactics which refer to RIGHT THINGS or goods at the RIGHT PLACE

o OOS (Out of Stock)

o Blue dot,

o Code management,

o Visual merchandising

INTRODUCTION RETAIL

India’s retail market which is seen as THE GOLDMINE by global players has

grabbed attention of the most developed nations. This is no wonder to the one who

knows that the total Indian retail market is US $350bn. (16, 00,000 crore INR

approx.) of which organized retailing is only around 3 percent i.e. US $8bn (36,000

crore INR approx).“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.” Retail is India's largest industry, accounting for over 10 per cent of the

country's GDP and around eight per cent of the employment. Retail industry in

India is at the crossroads. It has emerged as one of the most dynamic and fast

paced industries with several players entering the market. The presence of

15million kirana stores brings into light the very fact that the Indian retail industry

is highly fragmented/ unorganized. Retailing in India is gradually inching its way

toward becoming the next boom industry, organized retailing in particular. The

whole concept of shopping has altered in terms of format and consumer buying

behavior, ushering in a revolutio in shopping in India. Modern retail has entered

India as seen in sprawling shopping centers, multi-storeyed malls and huge

complexes offer shopping, entertainment and food all under one roof. The future of

Indian retailing may even witness the concept of 24 hour retailing. Even though

this concept has been in existence in few retail segments like pharmaceuticals and

fuel, it still remains to be a challenge for other segments like food and groceries,

apparel etc to adopt this trend. Although the organized retailing in India is coming

up in a big way, it cannot simply ignore the competition from the conventional

stores because of various factors like reach, extending credit facility and other

intangible factors like the human touch which are provided only by the

conventional stores. The urban retail market has been embracing various new

formats and the malls turned out to be the trend setters by promising the concept of

shoppertainment. The trends in the rural market also have been changing from the

old Haats and Melas to the rural malls like ‘Chaupal Sagar’ launched by ITC,

DCM Shriram Groups one-stop shopping destination called ‘Hariyali Bazaar’,

Godrej groups agri store ‘Adhar’ etc.

What is Retail ?

The word 'retail' is derived from the French word 'retaillier' meaning 'to cut a piece

off' or 'to break bulk'. In simple terms it involves activities whereby product or

services are sold to final consumers in small quantities. Although retailing in its

various formats has been around our country for many decades, it has been

confined for along time to family owned corner shops. Englishmen are great soccer

enthusiasts, and they strongly think that one should never give Indians a corner. It

stems from the belief that, if you give an Indian a corner he would end up setting a

shop. That is how great Indians retail management skill is considered.

The Facts

Retailing in more developed countries is big business and better organized that

what it is in India. Report published by McKinsey & Co. in partnership with

Confederation of Indian Industry (CII) states that the global retail business is worth

a staggering US $ 7 trillion. The ratio of organized retailing to unorganized in US

is around 80 to 20, in Europe it is 70 to 30, while in Asia it comes to around 20 to

80. In India the scenario is quiet unique, organized retailing accounts for a mere

5% of the total retail sector. Although there are around 5 million retail stores in

India, 90% of these have a floor space area of 500 sq.ft. or less. The emergence of

organised retailing in India is a recent phenomenon and is concentrated in the top

20 urban towns and cities.

The Reason

This emergence of organized retailing has been due to the demographic and

psychographic changes taking place in the life of urban consumers. Growing

number of nuclear families, working women, greater work pressure, changing

values and Lifestyles, increased commuting time, influence of western way of life

etc. have meant that the needs and wants of consumers have shifted from just being

Cost and Relationship drive to Brand and Experience driven, while the Value

element still dominating the buying decisions.

Global Scenario

Retail stores constitute 20% of US GDP & are the 3rd 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 105 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) grew 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.

THE INDIAN RETAIL SCENARIO

India is the country having the most unorganized retail market. Traditionally it is a

family`s livelihood, with their shop in the front and house at the back, while they

run the retail business. More than 99% retailers function in less than 500 square

feet of shopping space. The Indian retail sector is estimated at around Rs 900,000

crore, of which the organized sector accounts for a mere 2 per cent indicating a

huge potential market opportunity that is lying in the waiting for the consumer-

savvy organized retailer. Purchasing power of Indian urban consumer is growing

and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches,

Beverages, Food and even Jewellery, are slowly becoming lifestyle products that

are widely accepted by the urban Indian consumer. Indian retailers need to

advantage of this growth and aiming to grow, diversify and introduce new formats

have to pay more attention to the brand building process. The emphasis here is on

retail as a brand rather than retailers selling brands. The focus should be on

branding the retail business itself. In their preparation to face fierce competitive

pressure, Indian retailers must come to recognize the value of building their own

stores as brands to reinforce their marketing positioning, to communicate quality as

well as value for money. Sustainable competitive advantage will be dependent on

translating core values combining products, image and reputation into a coherent

retail brand strategy.

There is no doubt that the Indian retail scene is booming. A number of large

corporate houses like Tata, Raheja, Piramal, Goenka, have already made their

foray into this arena, with beauty and health stores, supermarkets, self-service

music stores, newage book stores, every-day- low-price stores, computers and

peripherals stores, office equipment stores and home/building construction stores.

Today the organized players have attacked every retail category. The Indian retail

scene has witnessed too many players in too short a time, crowding several

categories without looking at their core competencies, or having a well thought out

branding strategy.

GROWTH TRENDS OF INDIAN ORGANIZED RETAIL SECTOR

Retailing in India is gradually inching its way toward becoming the next boom

industry. The whole concept of shopping has altered in terms of format and

consumer buying behavior, ushering in a revolution in shopping in India. Modern

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

and huge complexes offer shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of organized

retailing and growth in the consumption by the Indian population is going to take a

higher growth trajectory. The Indian population is witnessing a significant change

in its demographics. A large young working population with median age of 24

years, nuclear families in urban areas, along with increasing workingwomen

population and emerging opportunities in the services sector are going to be the

key growth drivers of the organized retail sector in India. Retailing is the most

active and attractive sector of last decade. While the retailing industry itself has

been present since ages in our country, it is only the recent past that it has

witnessed so much dynamism. The emergence of retailing in India has more to do

with the increased purchasing power of buyers, especially post-liberalization,

increase in product variety, and increase in economies of scale, with the aid of

modern supply and distributions solution. Indian retailing today is at an interesting

crossroads. The retail sales are at the highest point in history and new technologies

are improving retail productivity. though there are many

opportunities to start a new retail business, retailers are facing numerous

challenges.

KEY CHALLENGES:

1) LOCATION:

"Right Place, Right choice"

Location is the most important ingredient for any business that relies on customers,

and is typically the prime consideration in a customer’s store choice. Locations

decisions are harder to change because retailers have to either make sustainable

investments to buy and develop real estate or commit to long term lease with

developers. When formulating decision about where to locate, the retailer must

refer to the strategic plan:

* Investigate alternative trading areas.

* Determine the type of desirable store location

* Evaluate alternative specific store sites

2) MERCHANDISE:

The primary goal of the most retailers is to sell the right kind of merchandise and

nothing is more central to the strategic thrust of the retailing firm. Merchandising

consists of activities involved in acquiring particular goods and services and

making them available at a place, time and quantity that enable the retailer to reach

its goals. Merchandising is perhaps, the most important function for any retail

organization, as it decides what finally goes on shelf of the store.

3) PRICING:

Pricing is a crucial strategic variable due to its direct relationship with a firm's goal

and its interaction with other retailing elements. The importance of pricing

decisions is growing because today's customers are looking for good value when

they buy merchandise and services. Price is the easiest and quickest variable to

change.

4) TARGET AUDIENCE:

"Consumer the prime mover" "Consumer Pull", however, seems to be the most

important driving factor behind thesustenance of the industry. The purchasing

power of the customers has increased to a great extent, with the influencing the

retail industry to a great extent, a variety of other factors also seem to fuel the

retailing boom.

5) SCALE OF OPERATIONS:

Scale of operations includes all the supply chain activities, which are carried out in

the business. It is one of the challenges that the Indian retailers are facing. The cost

of business operations is very high in India.

PRESENT INDIAN SCENARIO

Unorganized market: Rs. 583,000 crores

Organized market: Rs.45, 000 crores

5X growth in organized retailing between 2000-2005

Over 4,000 new modern Outlets in the last 3 years

Over 5,000,000 sq. ft. of mall space under development

The top 3 modern retailers control over 750,000 sq. ft. of retail space

Over 400,000 shoppers walk through their doors every week

Growth in organized retailing on par with expectations and projections

of the last 5 Years: on course to touch Rs. 75,000 crores or more by 2012-13

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; its revenue increased to 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.

3. Apna Bazaar: It is a Rs 140-crore consumer co-operative society with a

customer base ofover 12 lakh, plans to cater to an upwardly mobile urban

population.

4. 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 MetroAG 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.

RETAIL FORMATS:

Hypermarket: It is the largest format in Indian retail so far is a one stop

shop for the modern Indian shopper. ∑ Merchandise: food grocery to

clothing to spots goods to books to stationery. ∑ Space occupied: 50000

Sq .ft. and above. ∑ SKUs: 20000-30000. ∑ Example: Pantaloon retail’s Big

Bazaar, RPG’s Spencers (Giant).

Supermarket: A subdued version of a hypermarket.

Merchandise: Almost similar to that of a hypermarket but in relatively

smaller

Proposition.

Space occupied: 5000 Sq. ft. or more.

SKUs: Around 10000.

Example: Nilgiris, Apna Bazaar, Trinethra.

Convenience store: A subdued version of a supermarket.

o Merchandise: Groceries are predominantly sold.

o Space occupied: Around 500 Sq. ft. to 3000 Sq. ft.

o Example: stores located at the corners of the streets, Reliance Retail’s

Fresh and Select.

Department store: A retail establishment which specializes in selling a

wide range of products without a single prominent merchandise line and is

usually a part of a retail chain.

o Merchandise: Apparel, household accessories, cosmetics, gifts etc.

o Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft.

o Example: Landmark Group’s LifeStyle, Trent India Ltd.’s Westside.

Discount store:

Standard merchandise sold at lower prices with lower margins and higher

volumes.

Merchandise: A variety of perishable/ non perishable goods.

Example: Viswapriya Group’s Subiksha, Piramal’s TruMart.

Specialty store: It consists of a narrow product line with deep assortment.

Merchandise: Depends on the stores

Example: Bata store deals only with footwear, RPG’s Music World,

Crossword.

MBO’s: Multi Brand outlets, also known as Category Killers. These usually

do well in busy market places and Metros.

Merchandise: Offers several brads across a single product category.

Kirana stores: The smallest retail formats which are the highest in number

(15 million approx.) in India.

Merchandise: Mostly food and groceries.

Space occupied: 50 sq ft and even smaller ones exist.

Malls: The largest form of organized retailing today. Located mainly in

metro cities, in proximity to urban outskirts.

o Merchandise: They lend an ideal shopping experience with an

amalgamation of product, service and entertainment, all under a common

roof.

o Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft.

o Example: Pantaloon Retail’s Central, Mumbai’s I orbit

The percentage of organized retail per sector wise is very miniscule and this

does not mean that there is stagnation of growth because if we look at the

following table we can clearly observe the burgeoning pace of growth

happening in all the sectors of Indian entailing. The organized retail industry

is growing at 25- 30 percentage and is expected to reach the mark of 1,

00,000 crore INR by 2010 from the present figure of 35,000 crore INR

approx. With such a mouth watering figures the organized retailing has been

attracting many players and even persuading the existing retailers to expand

and experiment with newer formats. This can also be substantiated by

looking the estimation of the organized retail space to be around 72 million

sq ft. by the end of 2007.

TRENDS IN PRESENT RETAIL MARKET

New Product Categories:

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.

The traditional food and grocery segment has seen the emergence of

supermarkets/grocery chains (Food World, Nilgiris, Apna Bazaar),

convenience stores (ConveniO, HP Speedmart) and fast-food chains

(McDonalds, Dominos). It is the non-food segment, however that foray has

been made into a variety of new sectors. These include lifestyle/fashion

segments (Shoppers' Stop, Globus, LifeStyle, Westside), apparel/accessories

(Pantaloon, Levis, Reebok), books/music/gifts (Archies, MusicWorld,

Crosswords, Landmark), appliances and consumer durables (Viveks,

Jainsons, Vasant & Co.), drugs and pharmacy (Health and Glow, Apollo).

Increasing competition in the retail market:

New entrants such as Reliance, Bharti Enterprises and the AV Birla group

will compete against well-established retailers, such as Pantaloon Retail,

Shoppers’ stop, Trent, Spencer’s and Lifestyle stores. Foreign retailers are

keenly evaluating the Indian market and identifying partners to forge an

alliance with in areas currently permitted by regulations. With an estimated

initial investment of USD 750 million, Reliance is planning to launch a

nationwide chain of hyper marts, supermarkets, discount stores, department

stores, convenience stores and specialty stores. These 5,500 stores will be

located in 800 cities and towns in India.

Increase in Private Labels:

With the emergence of organized retail and modern retail formats, private

labels have been gaining significance. They enhance the profitability levels

of product categories, increase entailers’ negotiation powers and create

consumer loyalty. More retailers are introducing their own brands in all

categories including Food & Groceries, apparel, accessories, footwear.

These own brands also do not have to manage intermediaries since retailers

maintain oversight of the supply chain. The label penetration is in a huge

rise. Private Label penetration has been on a rise. It is mainly growing

among FMCG products in most supermarkets with groceries accounting for

45.9%

Expanding to Tier II and III cities:

Indian retailers are planning to extend operations into Tier II and Tier III

cities as heightened IT off shoring activity in these locations have increased

consumers’ disposable income. The population in these cities is typically

well educated and willing to purchase goods and services. Some major

retailers, like Globus, Reliance Retail and Pantaloon, have already begun

building a retail presence in Tier III cities before many retailers have

finalized their Tier II retail operations.

Foray into Retail Agri-Business:

India’s most prestigious business houses and global retailers are planning to

enter retail agri- business. Market entrants plan to invest in the entire value

chain, moving goods “from the farm to the fridge at home.” Viewed as

India’s next “Sunrise Sector,” retailers are employing contract farming as a

means of boosting their ventures. Contract farming enables farmers to access

land, manpower and farming skill without having to purchase land. Of the

total Cultivable land of 400 million acres in India, contract farming

represents 7 million acres thus indicating a tremendous opportunity. For

pure corporate contracts between farmers and

companies, only 2,00,000 acres are used.

Experimenting with formats:

Selecting the right retail format is essential in modern retailing. The

difference between urban and rural customers is one of the reasons why

multiple formats are required in India. Local conditions and insights into

buying-behaviour shape the format choice. No single format will be suitable

for an all India strategy and selecting the relevant format is the key success

factor.

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 hundred stocked with

an average unorganized retailer. This will provide variety in products

(required breadth & depth for consumers) 3. As a consequence of high

volumes, procurement will be direct from the Manufacturer. Hence,

merchandise can be offered at lower costs.

2. Weakness:

1. Less Conversion level: Despite high footfalls, the conversion ratio has

been very low inthe 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%

3. 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.

Threats:

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.

3. Cultural Variation leads to variation in merchandise in India at different

geographical locations.

Introduction to Operation Management

Operations management is an area of business that is concerned with the

production of good quality goods and services, and involves the

responsibility of ensuring that business operations are efficient and effective.

It is the management of resources, the distribution of goods and services to

customers. APICS The Association for Operations Management also defines

operations management as "the field of study that focuses on the effectively

planning, scheduling, use, and control of a manufacturing or service

organization through the study of concepts from design

1. engineering, industrial

2. engineering, management

3. information

4. systems, quality

management, production management, inventory management, accounting, and

other functions as they affect the organization". Additionally, The Operations

Management Body of Knowledge (OMBOK) Framework defines the scope of

operations management and the activities and techniques that are a part

of the operations management profession. Operations also refer to the

production of goods and services, the set of value-added activities that

transform inputs into many outputs. Fundamentally, these value-adding creative

activities should be aligned with market opportunity for optimal enterprise

performance.

Operations as a Transformation Process

Inputs - Transformation

Output

Operations management is about the way organizations produce goods and

services. Everything you wear, eat, sit on, use, read or knock about on the sports

field comes to you courtesy of the operations managers who organized its

production. Every book you borrow from the library, every treatment you

receive at the hospital, every service you expect in the shops and every lecture

you attend at university all have been produced. This definition reflects the

essential nature of Operations Management; it is a central activity

in organizing things. Another way of looking at an operation is to consider it as

a transformation process. Operations are a transformation process; they convert

a set of resources (INPUTS) into services and goods (OUTPUTS). These

resources may be raw materials, information, or the

customer itself. These resources are transformed into the final goods or services

by way of other 'transforming' resources - the facilities and staff of the

operation.

Raw Materials

An obvious example is a cabinet maker, who takes some wood, cuts and

planes it, and then polishes it until a piece of furniture is produced.

Information

A tourist office gathers and provides information to holiday makers, and

assists in advising on places to stay or visit.

Customers

At an airport, you are one of the many resources being processed. The

operation you are involved in is about processing your ticket and baggage,

moving from ticket desk through the customs and duty-free areas, to deliver

you to the awaiting plane.

Extending the process...

If we add a few more parts to the transformation process, we can see the key

elements that operations managers need to consider. Operations is about

designing services, products and delivery systems;

1. Managing and controlling the operations system.

2. Finding ways to improve operations.

Operations Management is all about providing customers with products and

services.

You survive by giving customers with what they want

Every Product or Service is really a bundle of different attributes.

Product, place, price, performance, quality, timing, service, etc.

Customers are looking for a bundle of characteristics

Total bundle provides the level of value customers deem appropriate

Buying products with the attributes they want at the lowest price possible

o Attributes

o Price

o Quality

o Image

o Performance

o Safety

o Place – distribution

o Time – delivery, availability

How do you decide which product to produce?

How do you find out what attributes your product should have?

How do you get those attributes into your product?

What process?

What resources do you need?

Where do you get those resources?

Examples of Operations Decisions

Operations managers must make decisions on three levels

Strategic

Tactical

Operating

STRATEGIC DECISIONS:

∑ Longer term decisions

∑ Usually made at the senior management level

∑ Product and service strategy

∑ Competitive priorities

∑ Positioning strategy

∑ Location, capacity

∑ Long term partnerships

∑ Quality system and overall approach to quality

TACTICAL DECISIONS

∑ Medium term decisions

∑ Tactical in nature

∑ Made by middle and senior managers

∑ Process design

∑ Technology management

∑ Job design and workforce management

∑ Capacity management

∑ Facility location

∑ Facility layout

OPERATING DECISIONS

∑ Shorter term decisions

∑ Made at middle and lower management levels

∑ Forecasting

∑ Materials management

∑ Inventory management

∑ Aggregate planning

∑ Master production scheduling

∑ Production control

∑Scheduling

REVIEW OF LITERATURE

The changing face of retail sector

Consumers of today are more inclined towards specialized formats of retail

outlets like hypermarkets, super bazaars, shopping malls etc. where they get

different variety of products under one roof rather than typical Kirana stores.

It is quite imperative that in such a fast paced shift, more and more

companies are coming up with different formats of their retail outlets,

specially discount stores, department stores, hypermarkets etc. either

individually or in collaboration with foreign partners. A recent research

conducted by Sandhir Sharma and Gautam Bansal of the Punjab College of

Technical Education (PCTE) here reveals that Indian companies had already

started taking initiative in this line. Reliance is planning to go for expansion

in the retail sector in the coming years, Vishal mega Mart retail chain is

planning to set up 80 more stores at an investment of Rs 480 crore in the

next financial year. On the same lines, Birlas have decided to roll out its

retail business with in the next seven to eight months and is likely to develop

the business of its own rather than in collaboration with any foreign partners.

The researchers said in spite of the fact that the government was still not

clear regarding the decision of allowing foreign players in huge and potential

Indian markets, the sector was buzzing with both domestic and foreign

players who were trying to make their presence felt. Players like Wal-Mart

had already tied up with the Bharti group to enter into retail markets, though

they were not coming at the front end operations but definitely it would help

Bharti in gaining the logistical, storage efficiencies, which were important

functional areas of retail operations for gaining competitive advantage.

Sharma and Bansal said the majority of retailers still felt that kirana and

small stores would not be suppressed at any cost as India had a huge market

with people from different segments, class, income groups of society so the

need and importance for these traditional stores would remain there.

According to statistics available, 70 per cent of the Indian consumers was

from middle and lower income groups and they preferred to shop from

kirana

stores rather than going into big shopping malls. It was only the upper strata

(20-25 per cent) of society which would be attracted towards these big

formats of retailing. The experts in the field say that if the foreign players

wanted to tap a major chunk of the Indian consumer they had to come to the

level of kirana stores as had been done by various domestic players. But one

thing was sure that what ever happens it would change the shopping styles

of Indian consumers. Indian consumer was definitely going to respond well

to these changes. Biggest challenge the retailers would face would be the

availability of space for opening their outlets.

However, 98 per cent of the retail is in the unorganized sector. But in recent

years, RPG, Pantaloon, ITC and Ebony have entered the retail sector in a big

way. Wal-Mart, world’s largest retailing company, has also shown keen

interest to invest in this sector, but the government has only allowed it to set

up its subsidiary for sourcing material for other countries.

Dr Arpita Mukherjee, co-author of the report “Foreign Direct Investment in

Retail Sector: India” claimed that even though FDI was not allowed in

retailing, foreign players had entered the Indian market through various

loopholes in the regulations. She said the government should open the retail

sector in a phased manner over three to five years. “It should also ensure that

existing franchisees are not affected and foreign companies do not indulge in

predatory pricing,” she said. The report has recommended that any opening

up of the FDI regime should be gradual to

give the domestic industry enough time to adjust to the changes. “The FDI

should first be allowed in relatively less sensitive sectors such as garments,

lifestyle products, consumer durable, houseware and entertainment (books

and music). Once the market starts adjusting then it could be allowed in

certain sensitive sectors like food and grocery,” she said.

RETAIL MODERNIZATION:

Retail modernization in developing countries and its effect on the broader

food system has been a major focus of research since the early 2000s. The

most visible banner for this work has been the “supermarket revolution”.

Supermarkets

existed in Latin America from at least the 1960s But began to grow

much more rapidly in that region during the economic boom and opening to

Foreign Direct Investment (FDI) of the 1990s. Growth began later in

East/Southeast Asia and Central Europe, followed by selected countries of

Africa (Reardonet al, 2004). This growth, together with new procurement

practices that the firms work to

apply, has lead to a rash of studies attempting to document and anticipate the

impacts of these firms on existing actors in the food system, and to draw

policy implications for governments and donors.

DOMESTIC AND REGIONAL MARKETS AS A FOCUS OF GROWTH:

Nontraditional agricultural exports have received large amounts of

analytical attention over the past decades. Donor support to market oriented

agriculture for smallholder farmers has also focused heavily on export

markets, while “domestic food markets remain undercapitalized, risky,

rudimentary, and relatively thin” (World Bank, 2007). Both traditional and

non-traditional exports have and will continue to be important sources of

growth for some farmers in some countries. Kenya’s exports of fresh and

prepackaged vegetables and fresh flowers to Europe may be the continent’s

best example of success in a non-traditional sector, but other countries are

achieving some success along a similar path. Yet even in Kenya, the

domestic horticultural system is four- to five times larger by value than

exports (Tschirley et al 2004a), and involves many times more smallholder

farmers and traders; in Zambia, the domestic fresh produce system is 10-20

times larger than exports. In China in the early 2000s, the domestic

horticultural market was 40-50 times larger than exports. Expected income

growth in many countries of east

Asia, in India, and in Kenya and some other countries of Africa, combined

with the large size of the domestic and regional markets, means that the

domestic system will be the main contributor to growth in products such as

horticulture and livestock, which have high income elasticities of demand.

My Training Place in Bhopal

Introduction to Hyper CITY

HyperCITY Retail (India) Ltd. is part of the K. Raheja Corp. Group, a leader in the

Indian retail sector. K Raheja Corp helped create retail boom in India with

Shoppers Stop, In Orbit Mall and Crossword apart from their successes in realty

and hospitality. HyperCITY offers its customers a dominating assortment of

quality products at great value in a large, modern and exciting format. It also offers

other value added services like consumer finance, ATM facility, telecom services,

pharmacy, Bakery and Restaurants etc under one roof. HyperCITY launched its

first store in Malad, Mumbai, which is spread over 1,20,000 sq ft. Today,

HyperCITY has accomplished a total of 10 stores since inception and have marked

its presence in cities like Mumbai, Hyderabad, Bengaluru, Bhopal, Ludhiana,

Amritsar and Jaipur. It offers over 44,000 products sourced from both local &

global markets to choose from & boasts of quality, distinctive, dominant

assortment at great value. HyperCITY promises convenience of everything under

one roof & International shopping ambience that rivals the best in the world.

There's more to discover

HyperCITY provides a truly international shopping experience, where customers

can shop in comfort in a large, modern, & exciting environment. It offers a wide

and contemporary range of innovative products, sourced from both local and

international markets.

The product range covers:

Foods, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture,

Sports, Toys & Fashion.

VISION

HyperCITY Team

Mr. Mark Ashman - Chief Executive Officer

Mark Ashman joins HyperCITY Retail (India) Ltd., a leading hypermarket

company of India as the Chief Executive Officer. Most recently he was the CEO of

Marks and Spencer Reliance India Pvt Ltd, where he was instrumental in the roll

out of Marks & Spencer’s retail strategy in India and establishing the JV between

Marks & Spencer PLC and Reliance Retail. Educated in the UK, Mark has a vast

retail experience ranging from retail operations, sales & marketing, merchandising

and corporate communications. He has held senior retail leadership roles in the UK

and Internationally Mark is an intuitive retailer with his pulse on changing

consumer needs. As a leader his strengths lies in his ability to build a highly

motivated team.

Ashutosh Chakradeo, Head - Buying & Merchandising

Ashutosh Chakradeo holds a Masters degree in International trade. He has worked

with The Bombay Store as a part of their B & M team, for a period of 7 years. He

has also worked for Arcus from 2002 - 2004 as Category Manager, for their Home

Improvement Division. Ashutosh joined Hypercity in 2004 and is currently the

business Head - Food and Grocery. He has acquired knowledge and expertise in

sourcing of products across Food & Non-Food categories over the last 14 years of

working in the retail industry. He has traveled widely through Asia & Europe, in

his sourcing management role.

Dharmendar Jain, Vice - President, Head - Finance & Business Development

Dharmendar is a qualified professional and holds various degrees - M. Com,

FICWAI, MFM, DBF, and CMA (AUS). He has over 18 years of experience in

various areas of finance, logistics, project management across various viz.

engineering, plastics, media & entertainment - and retail. Dharmendar is

associated with the groups since last 9 years and leads strategic and business

planning, corporate finance & business development function and

is member of Core Executive Committee.

Rajiv Nair, Business Head - General Merchandise & Apparel

Rajiv has over 16 years of retail experience had has joined Hypercity to develop

and grow the non-food business. He has over 10 years of buying & merchandising

experience followed by an operations stint in the Shoppers Stop departmental

stores. He has worked across the apparel buying and merchandising segments of

men's wear, women's wear & kids' wear for Shoppers Stop; working with key

brands & developing in-house exclusive brands. Prior to this assignment, he was

the business head for Mothercare in India. He was instrumental in setting 17

outlets in India clocking Rs.45 crores in the second year of operations. Rajiv is a

Commerce graduate & has a Master's degree in Marketing from the University of

Mumbai - Narsee Monjee Institute of Management Studies.

Siddarthan M, Business Head-HR & Admin

An MBA from the Institute for Technology and Management in Human Resources,

Siddharthan has worked with Shoppers Stop for more than 5 years in Corporate

Human Resources and later with HyperCITY as head of Human Resource and

Admin. Siddharthan has had diverse experience across various industries, such as

manufacturing, service and hospitality.

Veneeth Purushotaman, Business Head – Technology

Veneeth has over 14 years of experience in technology. He joined HyperCITY as

Head, Technology in May 2006. Prior to that he was at Shoppers Stop and was

responsible for the Loyalty, Point of Sale systems and the data warehouse systems.

After his graduation in Computer Science from Bangalore University and a

certificate course from NIIT, he joined NIIT as a Technical Lead. He worked at

NIIT for 3 years after which he had a 1 year stint in the Indian Railways. He came

to Mumbai to do a certification on Mid-range servers from IBM after which he

joined Rhone-Poulenc (India) Ltd in 1998. At Rhone-Poulenc he was responsible

for streamlining the ERP and for their Y2K rollout. He was recently honored by

the CIO Magazine as one of the Top 20 CIO in their CIO Ones-to-Watch category

for the year 2008. He subsequently also won the CIO Bold 100 awards in 2008

from the CIO Magazine. Hypercity was recently awarded for the use of technology

in the Emerging Retail by JDA for their use of Replenishment tools and Space

Planning tools.

AWARDS & RECOGNITIONS

International Awards

Hyper CITY, Mumbai won The Award of Merit for Large Format Specialty Store

at the United States International Design Awards in New York on 15th January,

2007. This is the first time that an Indian Company has received an award like this.

This was the 36th awards function for the Institute of Store Planners/VM+SD

International Store Design, New York. HyperCITY was voted as India's top retail

store by ‘Retail Week’, a leading U.K. magazine revered by retailers world wide. It

was voted as the ‘100 Shops You Must Visit’, across the world and was featured

amongst internationally renowned stores such as Bloomingdales New York,

Selfridges U.K, Louis Vuitton Paris and Carrefour Shanghai. The special report

carried weightage for innovation and creativity in retail, as well as recognizing

retail excellence. The report was based on a survey carried out by ‘Retail Week’

amongst key players in the retail industry consisting of businessmen, analysts,

retail consultants, editors and top shoppers around the globe.

Domestic Awards

Coca Cola Golden Spoon Awards 2009 - Images award for excellence in food

retailing awarded Gourmet city as "Most Admired Food Retailer of the Year" &

"Innovative Retail Concept". Star Retailer Awards awarded Gourmet city

"Debutant Retailer of the Year 2008". The Bold 100 - IDG India CIO magazine

has recognized Shoppers Stop and HyperCITY as a recipient of 2008 CIO 100

Award. The annual award program recognizes those executives and organizations

those are playing not just to survive, but to win and embrace great risk for the sake

of great reward. Most Admired Retailer of the Year for Retail Design & Visual

Merchandising -

Images India Retail Forum, 2007.

Star Retailer - Value Retailer of the Year 2007.

Asia Retail Congress - Reid & Taylor Retailer of The Year (Hypermarket).

My Learning and Experience at Hyper CITY

Objectives of the project

o The Role of operational department in the growth of Hypercity.

o The various operational processes used to manage the retail store.

o How these processes put impact on sales.

o The supply chain of retail store.

Retail store is divided into three Departments-

o General Merchandise

o Food

o Fashion

1) General Merchandise- This department is subdivided into various parts are:-

HAM- Hi-tech Appliances Multimedia.

o Sports

o Toys

o Stationeries

o Furniture

o Lenia- Bedding, Luggage

2) Food- This department is Subdivided into various parts:-

o Ready food

o Instant food

o Beverages

o Staples

o Homecare

o Personal Care

3) Fashion- This department is subdivided in various parts that are:-

o Cloths (div. into kids, men women)

o Shoes

o Accessories

Retail store Manager`s daily operations

1) SAV- Stock Adjustment Voucher-It is basically used when Product gets

defective due to any reasons (expiry, broken , leakage etc.) and it has no

usage value then voucher is filled to adjust that stock which is removed from

the inventory that is known as Stock Adjustment Voucher.

2) Negative Inventory- When inventory or stock is shown negative in the

system that inventory is known as negative inventory. To check negative

inventory, if there are two product having different SKU numbers and

different bar codes one product is sold on the other barcode. For example: If

‘A’ product get finished and ‘B’ has the inventory of two units. Product ‘A’

is of Rs 100 and Product ‘B’ is of Rs 200 somebody by mistake Product ‘B’

is kept on ‘A’ SKU by which pricing mistake would be there and due and

due to which product ‘B’ would be billed at price ‘A’ by which earlier

system shows the inventory of ‘A’ was zero but now after billed inventory of

product ‘A’ gets negative this is known as negative

inventory. A special procedure is followed to adjust negative inventory.

3) PICS-Perpectual or Physical inventory Count Sheet- PICS is a process of

calculating variance of the products and preparing a sheet of physically

counted inventory that sheet is known as PICS.

4) Team Briefing-It is a daily routine activity to discuss about the targets of

the store, what the team had achieved yesterday and what they will achieve

today this process is known as team briefing.

5) Man Power Scheduling- It is a process of scheduling man-power in their

particular department according to the need and according to the situation.

Like 30%- day time, 10%- afternoon, 60%- evening or night.

6)Floor Walk- It is a process of checking the Hygiene, ticketing,

merchandising etc that whether the products are placed correctly or not, this

process of checking out positive and negative points by taking a walk on the

floor is known as floor walk.

7) Trade Report- It is the process of reporting to the buyers or to the seniors

if employees are facing any problem or want to give any suggestion. It is a

communication from the employee side to the seniors this process is known

as trade report.

8) Price checking-It is a daily activity of checking the prices of the products

whether the prices of the SEL (Shelf Edge Label) prices are matching with

the system or not. If the prices are not matching then SHL is changed with

new prices, this process is known as price checking.

9) FMR check- Floor Movement Register- It is the register always placed

on the floor to check out the employees scheduling. This floor register is

placed for the purpose, if any employee have to go from floor he/she have to

register themselves on floor register. By this anybody would come to know

that which employee is missing from his/her place. Noticed where they had

gone and at what time, this process is known as FMR check.

10) OOS- Out Of Stock- When system show that this product have zero

inventory then we can say that product is out of stock this is known as Out

Of Stock and then purchase order list is prepared and send to the Buyer.

11) Visual Merchandise-It is a process of managing the store

merchandising on unrelated Product to attach customers by keeping flowers

on cooler this process is known as visual merchandising so that visually it

looks good. There is a general tendency of the buyers that they get attracted

to those things which are good looking in their outward appearance just like

a passerby gets more attracted towards a beautiful girl than an ugly looking

girl. So, it is very important for any retail store to create pleasant visual

merchandise which shall catch the eye of the customer and they should get

tempted to enquire about it.

12) Home delivery issues- The issues related to the Home delivery

regarding safety regards of heavy equipments that issues are known as Home

delivery issues.

SUPPLY CHAIN MANAGEMENT

1. Buyers – Buyers are the one who buys products or material for the

company or store. Buyers use to purchase centralize or decentralize (local

vendors). Buyers use to contact with different vendors so that maximum

bargaining would be done by which Economic order quantity would be

achieved by purchasing at less price and it would be benefitted to the

organization with better price, better quality and

delivery in time. Buyers make a list in which current price is written of the

particular product ordered and what quality should be received and this list

is posted to the receiving department .

2. Receiving Department- The department which perform the function of

Receiving of the product from different vendors as quality prescribed by the

Buyers is known as receiving department.

Process of receiving department-

1) Firstly quality of the product is checked.

2) Secondly they measure weight or quantity to receive.

3) Then rates or prices are verified and send the list to the internal receiving

department where prices are verified.

4) If products get selected then that products are entered to the inventory

department after uploading on the server or mms system that this much

inventory received and on that prices are also uploaded.

5) Then the ordered received send to the inventory department.

3. Inventory Management- During the receiving of the inventory if the

products are DSD(Direct Store Delivery) then products(perishable goods

like vegetables, fruits milk etc) can’t be stored in inventory these products

directly send to floor. The products which are not perishable send to the

inventory room and there stock is settled down.

INVENTORY MANAGEMNT AT HYPERCITY

There are various processes of managing inventory between warehouse

and shop floor:

i. PRICE CHECKING

ii. POST

iii. PICS

iv. INTACTICS

v. CODE MANAGEMENT

vi. RECEIVING DEPARTMENT

vii. BUYERS

viii. PLANNOGRAM

ix. I WILL BE BACK

x. BLUE DOT

xi. REFILLING

1) Price Checking- It is a process of checking the prices of the products

whether the prices of the SEL(Shelf Edge Label) prices are matching with

the system or not. If the prices are not matching then SHL is changed with

new prices, this process is known as price checking. By this process

inventory is properly managed, so this process helps in managing the

inventory.

2) Post- It’s a type of communication from vendors and buyers side by which

variousmessages are conveyed to all the departments that communication is

known as post.

3) PICS- Perpetual or Physical Inventory Count Sheet- PICS is a process of

calculating variance of the products and preparing a sheet of physically counted

inventory that sheet is known as PICS. The sheet which is prepared matched

with the system the difference is calculated is known as variance. This is a

process of managing inventory by physically counting products of each and

every SKU and then matched with the system showing inventory of each SKU.

4) In tactics- It is a process of keeping or placing the products at their places

only according to the plannogram and placed in a sequence of FIFO(First In

First Out). By this way inventory at floor is properly managed.

5) Code Management- It is basically to check the expiry date of the products.

In this process, it is calculated for next three months and the product which

have nearest expiry date kept in front and rest sequinsly back to that product.

The products which get expired taken to the back store and change their bar

codes with new expiry dates if that products are of hyperCITY brand. Code

management team fill a form and make a full report that how much products get

expired and given to the receiving department. By this way expired inventory is

removed out from the floor.

First step to collect or to make the monthly SKU list from 1 st to 30th in which

coding have to do.

o A file is made in which it is calculated for the next three months and

according to that sheet is prepared . The main focus of the code management

team is on the latest months expiry.

o Last two months expiry list put on the mms so that expiry would be

updated and every one would get aware. But for this month expiry a

special list is prepared and that list is send to the buyers so to take further

decisions.

o If the product would not RTV then it cost to the company due to which

BOGOF (BUY One Get One Free) offer is created due to which some

price would be received by the company rather to get Zero amount.

6) Receiving department- The department which perform the function of

Receiving of the product from different vendors as quality prescribed by the

Buyers is known as receiving department. Receiving department plays the

major roll in managing inventory. During receiving from the back gate the

employees manage inventory and place the inventory in the proper way at

their places. SAV,RTV, FREE GIFTS are also managed by the inventory

management team.

7) Buyers- Buyers are the one who buys products or material for the

company or store. Buyers use to purchase centralize or decentralize (local

vendors). Buyers use to contact with different vendors so that maximum

bargaining would be done by which Economic order quantity would be

achieved by purchasing at less price and it would be benefitted to the

organization with better price, better quality and delivery in time. Function

of buyer is also to manage inventory by ordering according to the need.

Dealing better with the vendors so that company should get the product of

much longer expiry date and dealing of RTV if get expired. If the products

are on the expiry date then code management team and receiving department

use to see the buyers response that whether the product which would get

expire date is can be RTV or it would create zero value, If that product

would create zero value then BOGOF is created if then also it can’t be sold

and after expiry of that product then that product will have zero value and

that products would be removed from the inventory. But if the product can

be RTV then that product are returned to the vendors. So this process

helps in managing the inventory.

8) Plannogram- It is plan made by the experts of the company where the

products must be placed at the floor, which product would be placed at

which place, at which shelf by this inventory would be kept safe and

transparency would be maintained.

9) I Will Be Back- I will be is a tag or a slip pasted on that SKU number is

finished or product of that variety is finished on the counter and slip is

pasted ` I will be back`.

Process of ‘I Will Be Back ‘ also help in managing floor are:-

o First of all they will see the products which are not available. Scan there Bar

Codes and Place ‘I Will Be Back’ on it, so that employee should come to

know that this product must be placed soon.

o Secondly an employee come and scan all the bar codes where ‘ I Will Be

Back ‘ is placed

o Thirdly list is made of the product excel which have to place before making

list on excel. They identify that this product of this sku number are present

upto which Quantity. Count on Hand and What software shows

o Then make a list of the product of ‘II Will Be Back’. In this we will remove

product which our software shows not available (N/A) inventory. We will

just make a list of positive inventory.

o Find the Products whether they are placed on other counters or that product

must be bring from inventory room. After finding place it over there places

and remove I will be back places.

Challenges faced during ‘I Will Be Back’

o Some times two slips are written or pasted on two counters of same SKU

number of that product. In which on one SKU number products are available

of that SKU number. So at that time we will remove ‘I Will Be Back’ SKU

number written on that counter. There must be only one SKU number on one

counter not on different-different counters.

o Some of the products were difficult to find from the inventory and that

products keep on coming in the list of ‘I Will Be Back’ again and again.

o It is difficult to find out all inventories due to poor inventory management

system. Employees don’t know that this product is at this place.

10) Blue Dot- Blue Dots products are those products which are contributing

60%of there sales in their departments that are known as Blue Dot products.

These Blue Dot products tells that these products are important to be checked

and always get first preference in the inventory.

11) Refilling- It is a daily activity process of filling the good in there shelves so

that product should be placed on bulk quantity that is known as refilling.

12) Offers- There are offers or schemes given to the customers for getting more

turnover of any particular good. Some offers are given by companies of the

particular good but some offers are given by the retail store for promoting them.

These offers are basically given on slow moving products to make them fast

moving. These offers also plays the great role in managing the inventory and

makes the turnover of the inventory fast.

Role of operational processes to increase sales

Intactics- By this process customer gets the maximum service and he would

able to view the products easily by which sales get effected.

Buyers- Buyers have the targets to see out the slow moving goods and make

that slow moving goods in the category of fast moving due to which buyer use

to put offers on that goods due to which sales of the goods increases. Buyers

also look after the discounts which the companies are giving for placing the

particular product at particular place by that also sales get affected in a positive

way because of the discount which the company is giving to the retail store and

our store is providing to the customers.

Refilling- It is a daily activity process of filling the good in their shelves so that

product should be placed on bulk quantity that is known as refilling. This

refilling

process also affect the sales of the store. If refilling of the product does not

completed then sales get affected so that’s why refilling is the important process

and it is basically done in non-trading time period.

I Will be Back- This process also plays important role in sales. If the product is

not available on shelf then `I will be back` slip is placed then the employees get

to know that this product is not available on shelf and they complete this

process by refilling it and removes a tag of `I Will be Back` by this sales get

affected in a positive way if all the tags or slips are removed from the shelves

by placing the product on that place.

Price checking- It is a daily activity of checking the prices of the products

whether

the prices of the SEL (Shelf Edge Label) prices are matching with the system or

not. If the prices are not matching then SHL is changed with new prices, this

process is known as price checking. By this prices gets updated which effect in

a positively regarding the sales.

13) Offers- There are offers or schemes given to the customers for getting more

turnover of any particular good. Some offers are given by companies of the

particular good but some offers are given by the retail store for promoting them.

These offers are basically given on slow moving products to make them fast

moving. These offers also plays the great role in managing the inventory and

makes the turnover of the inventory fast by which sales gets affected in a

positive way.

CHALLENGES FACED IN THE OPERATIONS OF THE RETAIL STORE

Shrinkage- Things which theft, lost etc in the store comes in shrinkage or known

as shrinkage. It is the major challenge faced by the employees to reduce shrinkage

due to which variance increases. So it’s a great challenge for the employees to

reduce shrinkage.

Damage- Things or products which breaks down or leaked is known as damage.

It’s the major challenge of the operational manager to reduce the damage happened

in the store and to know why damage occurs generally and to know about the

reason behind that damage and to get the solution out off. Damage can be due to

many reasons like- misplacing of the product , not maintain the standards, keeping

at much height, heavy product placed at heights etc then damages can take place.

Lead time-It is the challenge for the organization to decrease the lead time and

take the maximum output from the employees

Inventory Management- It is one of the biggest challenge which HyperCITY is

facing that is to manage the inventory. There are 44000 different units are available

with different SKU number so it is difficult to manage these units in the limited

area.

Recommendations

It is very important to improve their inventory management system so that the lead

time of the employees should be decreased and take the maximum output from

them. Acc. to the trend and for providing the service to the customers online

shopping must be started by the HyperCITY.

Quality regulation, certification & price administration bodies can be created at

district and lower levels for upgrading the technical and human interface in the

rural to urban supply chain.

Credit availability for retail traders must be encouraged with a view to enhancing

employment and higher utilization of fixed assets. This would lead to less wastage

(India has currently the highest wastage in the world) of perishables, enhance

nutritional status of producers and increase caloric availability.

RESEARCH METHOLOGY

Introduction

Research methodology is a way, to systematically solve the research problem.

Research in common place refers to a search of knowledge. Research is an original

contribution to the existing state of knowledge making for its advancements. the

role of research in several fields of applied economics whether related to business

or economy as a whole has greatly increased in modern times

Meaning

Acceding to differed woody ‘’research Comprises defining and formulating

hypothesis a Suggested solution, collecting organizing. and organization and

evocating collusion to determine whether they fit the formulation hypothesis”.

Research is an Original Contribution to the existing stock of knowledge making for

its advancement. In short research for knowledge through objective and systematic

method in finding solution to a problem in research. Data making deduction and

reaching conclusion.

Research design

A research design is purely and simply the form work or a plan for a study that

guides the collection and analysis of data.

A good research design has the characteristic. viz. problem definition, specific

method of data collection and analysis . time required for research project and

estimate of expenses to be incurred. It mainly call for decisions on research

approaches.

Research Approaches:

1. Exploratory – It is a research done primarily to develop and understand

new hypothesis to cover all possible out comes. The main emphasis is

not only to gain familiarity with the phenomena, but also the discovery

of idea and achieving new insights in to it.

2. Conclusion research Its. Is a Research which is a systematic collection of

information needed. Its analysis and finding as per Research Objective.

Data Collection :

Basically two types of design data exist.

1. Primary Data

2. Secondary Data

Primary data are first hand data. These data are generated when a

particular problem at hand is investigated by employing questionnaire.

Secondary data is Second hand information. On the other hand includes

those data , which are collected for some earlier research work and are

applicable or usable in the study.

CUSTOMER SATISFACTION

The buyer is satisfied after purchase depends on the offer’s performance in relation

to the buyer’s expectations. Satisfaction is person’s feelings of pleasures or

disappointment resulting from comparing a product perceived performances to

their expectation. The performances falls short of expectations, the customer is

satisfied If the performance exceeds expectation the customer is satisfied. The

performance exceeds expectation the customer is highly satisfied or delighted.

Customer assessment of the product performances depend on many factors,

especially the types of the loyalty relationship the customer has the brand.

Consumer often from more favorable perception of a product with a brand they

already feel positive about the customer centered firm seeks to create high

customer satisfaction that is the ultimate goal. The company might be able to

increase the profitability by other than increase satisfaction. The company might be

able to increase its profitability by means other than increased satisfaction. The

company has may be sake holders including employees, dealer, suppliers and

stockholders Spending more customer satisfaction might be deliver funds from

increasing the satisfaction of the Partner’s.

Why is Customer Satisfaction So Important?

Effective marketing focuses on two activities: retaining existing customers and

adding new customers. Customer satisfaction measures are critical to any product

or service company because customer satisfaction is a strong predictor of customer

retention, customer loyalty and product repurchase.

CUSTOMER SATISFACTION CUSTOM

COMPANY OFFERS

CUSTOMER SATISFACTION

CUSTOMER NEEDS

Conclusion

It was a great experience for me to learn about the operational processes

acting in the Hyper CITY, Bhopal ’s biggest retail store. It was wonderful

time for me at hyper CITY and with lot of cooperation by the management

of Hyper CITY. I had learned about the team work, how team are working

and achieving their targets. Being the part of the various team in 45 days

learned many things about the retail sector that how retail sector actually

operates. I have recommended certain suggestions which, I saw at Hyper

CITY. At last I would say that Hyper CITY is having one of the best visual

merchandising and layout as compared to the other stores.

Limitations of Study

The research was conducted only in BHOPAL city.

So this may not give a generalized conclusion. Customer’s expectations

change accordingly with time.

Customer’s expectations should be studied with great efforts,

so that marketers can design the product based on the need of the customers.

BIBLIOGRAPHY

http://www.hypercityindia.com/about_us.asp

http://www.creativematch.com/news/jhp-designs-new-formats-for/94476/

http://www,google.com

CERTIFICATE

This is to certify that the project report entitled “To the study of Operation and

Retail Management in Hypercity ”, Submitted by Aakanksha Rajput in partial

fulfillment for the final

project in awards of Master of Business Administration , is a bonafide research

work carried out under my supervision and guidance and no part of this project has

been submitted for any other degree / diploma.

The assistance and help received during the course of the investigation has been

fully acknowledged.

Project Guide

Rohan Phalwan

Mraketing Manager in

Hypercity Bhopal

DECLARATION

I, AKANKSHA RAJPUT , hereby declare that the project report titled “To the

study of Operation and Retail Management in Hypercity ” under the

supervision and the Trainer of Mrs. Rohan Phalwan, Marketing Manager In

Hypercity Retail in India is the result of the original work done by me and to the

best of my knowledge, a similar work has not been submitted earlier to any

University or any other Institution.

AKANKSHA RAJPUT

Place :

Date :

ACKNOWLEDGEMENT

There always remains a pleasure to acknowledge the assistance of several

individuals to the accomplishment of our goal and complication of the project:

“TO THE STUDY OF OPERATION AND RETAIL MANAGEMENT IN

HYPERCITY ”

I owe a debt of gratitude to my project guide, Mr ROHAN PHALWAN Marketing

manager In Hypercity Bhopal devotion of valuable time from his busy schedule

and coordination lead us towards the completion of this project. He was extremely

generous and I give our sincere thanks to his for the constant support and guidance.

I am thankful to the whole Hypercity faculty and staff , who directly or indirectly

helped and advised me at every step to complete this project work.

A PROJECT REPORT ON

“TO THE STUDY OF OPERATION AND RETAIL MANAGEMENT IN

HYPERCITY ”

Submitted in the partial fulfillment for the award of degree in

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Akanksha Rajput

Semester:- MBA IInd Semester

Under the guidance of

Marketing Manager-Rohan Phalwan

Master of business administrationSummer Internship

2013-2014

CONTENTS

TOPICS PAGE NO Certificate

Declaration

Acknowledgement

Executive of summery

Introduction of Retail

Key challenge

India tops retails

Customer satisfaction

Swot analysis Introduction on operation management Review of literature Introduction of hyper city

Hyper city history

Award recognitions

Retail store managers dally operation

Inventory management of Hyper city

Objective

Limitation

Bibliography

Conclusion