hypercity retail india ltd
DESCRIPTION
Basically it's a Management Training Project which I experienced in 2 months during my M.B.A. This document contains the information about HyperCITY Retail Store which is located in Malad, Mumbai (M.H). This document also focuses on the effectiveness of promotional strategies of a retail organization and current Retail scenario of India. I suggest you to take this project as a study material only.TRANSCRIPT
A
PROJECT REPORT
ON
THE VARIOUS PROMOTIONAL STRATEGIES OF HYPERCITY
(A study done at Mumbai branch)
BY
SANJAY SAHA (B-102)
UNDER THE GUIDANCE OF
DR. THIRUMAGAL PILLAI
INDIRA INSTITUTE OF MANAGEMENT
PGDM 2010-12
i
“THE VARIOUS PROMOTIONAL
STRATEGIES OF HyperCITY”
(A study done at Mumbai branch)
ii
ACKNOWLEDGEMENT
We take the opportunity to express our gratitude to all of them who in some or
the other way help us to accomplish this project. The research study cannot be
completed without your guidance, assistance, inspiration, and co-operation. We
particularly owe our gratitude to Dr Thirumagal Pillai madam to give a such a
opportunity. And lastly to all the people who cooperate and encourage us, with
their valuable time.
A very special thanks to HyperCITY Retail LTD. Malad, Mumbai and all the
members who given me the opportunity and supported me to learn in their
organization and I’m very thankful to Mr. ABHIJEET GAWDE the marketing
officer of HyperCITY who helped me a lot to pursue my summer internship
under him.
SANJAY SAHA
iii
iv
EXECUTIVE SUMMARY
v
TITLE
“THE EFFECTIVENESS OF PROMOTIONAL ACTIVITIES OF HYPERCITY”
RETAIL INDUSTRY
Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services .The impact can be best seen in countries like U.S.A., U.K.,
Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia,
Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.
HyperCITY RETAIL INDIA LTD .
HyperCITY is the part of K Raheja corp. group and was incepted in 2005. It provides a truly
international shopping experience where customer can shop in comfort in a large, modern and
exiting environment. It offers a wide and contemporary range of innovative products, sourced
from both local and international markets.
OBJECTIVES
PRIMARY OBJECTIVE:
To study the effectiveness of promotional activities which influences a customer to
purchase from HyperCITY?
SECONDARY OBJECTIVES:
To find out the satisfaction level of Hypercity membership Discovery Club Card?
To know the promotional activity awareness among the customers
To know the various mediums of promotional activities of HyperCITY
To understand the ambience effects on the customers.
To know the frequency of visiting the customers at HyperCITY.
To know which category of product selling more.
vi
SAMPLE SIZE
300 (Three hundred)
METHODOLOGY:
The basic methodology that we followed was the questionnaire method.
Research objectives were clearly stated before designing the questionnaire
Information was collected form a sample size of 300 respondents, which included both
males and females.
Information obtained from the respondents was analyzed and interpreted.
Findings revealed by the tabulations were listed in a summarized form as
Recommended Actions
The sampling method used was Non-probability random sampling.
Sample population Resident of Mumbai
Sample frame Customers of HyperCITY
Data collected Non probability convenience sampling
method
.
SOURCES OF COLLECTION OF DATA:
All the useful data which were require for this research has been collected through Primary
and secondary data
Primary data collected through Questionnaire
Secondary data collected through Internet, Magazines and newspapers.
vii
FINDINGS
The promotional activities did have the influence on customers.
People are aware of promotional activities done by HyperCITY.
Among various means of doing promotions like newspapers, leaflets and catalogues
are the better means which attracted customers.
Customers always visited HyperCITY because of better ambience and quality
products.
Among many products offered, maximum sales happens is for the groceries section at
HyperCITY. This is because quality products are offered.
Weekly offers are not given importance by the customers.
Many of the customers are not aware of offers given such as hyper Wednesday, Friday
blockbuster etc.
Discovery club card (membership card) is satisfactory among the customers
Many customers did purchases, but did not avail the benefit of membership (DCC)
card.
Ambience and comfortable atmosphere rather proved to be gaining momentum for
HyperCITY.
ASSUMPTIONS:
It is assumed that chosen sample is a representation of the entire population
It is assumed that the information provided by the samples is accurate and best of their
knowledge.
viii
CONCLUSION
The target segment of HyperCITY is niche class people mainly and they don’t come for any
offers so HyperCITY doesn’t need to do the advertisement very frequently. The customers
come for shopping because of the standard of the store, the quality of the products, hygiene
and the world class ambience which gives them a very comfortable atmosphere
RECOMMENDATIONS
Many of the customers are not aware of the Hyper weekly offers so try them to make
them aware
Many of the customers said that the customer associate doesn’t respond very well so
train them thus they can help the customers.
Follow up of the HAM section is not very good. So try to give better after sales service
thus customer can come back again and again.
Many of the members of DCC are not getting the emails and sms from HyperCITY so
update the customer information while enrolling the customers
ix
CONTENTS
Chap No. Title Page No.
1 Introduction 2
2. Industry Profile
Size of the Industry
Growth trends
Government policies
Major players
6
3. Company and Product Profile 21
4. Literature Review 43
5. Objective and Scope of Study 48
6. Research Methodology
Research design
Sampling design
Data collection
Limitation & Assumptions
50
7. Data Analysis and Interpretation 76
8. Observation and Findings 99
9. Conclusions 101
10. Recommendations 103
References 105
Questionnaire 107
LIST OF TABLESx
Table No. Title Page no.
1. World’s Top Ten Retailers by Revenue 6
2. Retail Formats 8
3. Retail formats in India 11
4. Entry options for foreign players 17
5. Sample size 53
6. Sources of advertisement 78
7. Frequency of shopping 80
8. Products usually purchased by customer 82
9. Products usually purchased by customer 84
10. Awareness about Hyper weekly offers 88
11. Offers preferred by customers 94
12. Ratings 96
xi
LIST OF GRAPHS AND CHARTS
Chart No. Chart Title Page No.
1. Promotional activity seen by the customers 76
2. Sources of promotion 78
3. Frequency of shopping 80
4. Products usually purchased by customer 82
5. Products usually purchased by customer 84
6. Visual merchandising 86
7. Awareness about Hyper weekly offers 88
8. Discovery club card 90
9. Satisfaction level for discovery club card 92
10. Offers preferred by customers 94
11. Ratings 96
xii
INTRODUCTION
RETAILING :AN INTRODUCTION
75
The distribution of consumer products begins with the producer and ends at the ultimate
consumer. Between the producer and the consumer there is a middleman---the retailer,
who links the producers and the ultimate consumers.
Retailing is defined as a conclusive set of activities or steps used to sell a product or a service
to consumers for their personal or family use. It is responsible for matching individual
demands of the consumer with supplies of all the manufacturers. The word ‘retail’ is derived
from the French work
retailier, meaning ‘to cut a piece off’ or ‘to break bulk’. In simple terms, it implies a first-hand
transaction with the customer. A retailer is a person, agent, agency, company, or organization
which isinstrumental in reaching the goods, merchandise, or services to the ultimate consumer.
The selling need not necessarily take place through a store. Retailing encompasses selling
through the mail, the Internet, door-to-door visits---any channel that could be used to approach
the consumer. When manufacturers like Dell computers sell directly to the consumer, they
also perform the retailing function. Retailing has become such an intrinsic part of our
everyday lives that it is often taken for granted. The nations that have enjoyed the greatest
economic and social progress have been those with a strong retail sector. Why has retailing
become such a popular method of conducting business? The answer lies in the benefits a
vibrant retailing sector has to offer—an easier access to a variety of products, freedom of
choice and higher levels of customer service. As we all know, the ease of entry into retail
business results in fierce competition and better value for customer.
To enter retailing is easy and to fail is even easier. Therefore, in order to survive in retailing, a
firm must do a satisfactory job in its primary
DEFINITION :
2
Historically retailing has been viewed as the ale of the goods to the consumer through retail
shops. However, retailing today should be viewed as being rather broader.
Retailing is the sale of the goods and services to the ultimate consumer for personal, family or
household use. Thus retailing involves more than selling tangible products. The purchase of a
service such as a haircut or dry cleaning is also a retail transaction. Purchases for a business or
industrial use are not retail transactions.
FUNCTIONS OF RETAILING:
The retail outlet may provide some or all of the following services to its customers:
Convenient location.
An assortment of merchandise appropriate to the particular market (i.e allows choice)
Breaking of bulk so that small quantities can be sold.
Processing of merchandise to more acceptable forms.
Holding of stock for instant availability at relatively stable prices.
Helping to effect change in ownership of goods.
Causing goods to move through the distribution system e.g from manufacturer to
wholesaler to retailer to consumer.
Information not only to the consumer but also to suppliers.
Product guarantees, after-sales service and dealing with customer complaints.
Credit and hire- purchase facilities.
Some facility for social intercourse.
IMPORTANT FEATURES OF RETAILING:
3
There is direct end-user interaction in retailing.
In is the only point in the value chain to provide a platform for promotions.
Sales at the retail level are generally in smaller unit sizes.
Location is a critical factor in retail business.
In most retail businesses services are as important as core products.
There are a larger number of retail units compared to other members of the value chain. This
occurs primarily to meet the requirements of geographical coverage and population density
RATIONALE OF STUDY:
In today’s economy and competitive business world retaining the customer base is critical to
the company’s success. Customer retention and satisfaction drives profits. It’s far less
expensive to cultivate the company’s existing customer base and sell more service to them
than to seek new single transaction customer. Keeping one existing customer is five to seven
times more profitable than attaching new one. Good customer retention is vital to any
organization because a slight reduction in the customer defection rate has a disproportionally
positive effect on profitability. 5% increase in customer retention can result in profit increase
of at least 20% for more business company wants to retain the customers so that they become
loyal advocates for the company’s brand.
The study makes an effort to ascertain the effectiveness of the promotional activities. It helps
to know that how does a customer influence by the promotional activities. The study helps to
understand why customers shop at a particular store. The retail store can rise up to the
expectations of the customers only by how do you make him feel difference than others.
Promotional activities makes a loyal relationship between the customers and the retail
organization. The subject has been taken for the research as it plays key role in the success of
retail store. As long as the store is able to being in touch with its customer, customers will
remain in the bracket of loyal customers. This study helps to understand the factors which
pulls customers to retail store.
4
SECTOR PROFILE
THE GLOBAL RETAIL INDUSTRY: AN OVERVIEW
5
Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services .The impact can be best seen in countries like U.S.A., U.K.
Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia,
Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.
Retail is the second-largest industry in the United States both in number of establishments and
number of employees. It is also one of the largest worldwide. The retail industry employs
more than 22 million Americans and generates more than $3trillion in retail sale annually.
Retailing is a U.S. $7 trillion sector. Wal-Mart is the world’s largest retailer. Already the
world’s largest employer with over1million associates, Wal-Mart displaced oil giant Exxon
Mobil as the world’s largest company when it posted $219 billion in sales for fiscal 2001.
Wal-Mart has become the most successful retail brand in the world due its ability to leverage
size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune
magazine list of top 500companies in the world. Forbes Annual List of Billionaires has the
largest number (45/497) from the retail business.
WORLD’S TOP TEN RETAILERS BY REVENUE
No
.
Name Headquarters Revenues
($billions)
No. of outlets No. of countries
Operating in
1. Wal-Mart US 408.21 8900 15
2. Carrefour France 126.5 15500 34
3. Tesco UK 99.7 502 15
4. Metro Germany 92.02 2100 33
5. Lidl Germany 82.08 7200 20
6. Kroger US 76.7 3264 1
7. Home Depot US 71.5 2242 4
8. Costco US 71.4 573 8
9. Target US 65.357 1743 2
10. Aldi Germany 58 8210 18
OVERVIEW OF RETAIL SECTOR IN INDIA
6
Retailing is one of the pillars of the economy in India and accounts for 13% of GDP.
The retail industry is divided into organized and unorganized sectors. Over 12 million outlets
operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-
backed hypermarkets and retail chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing,
for example, the local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Most Indian shopping takes place in open markets and millions of independent grocery shops
called kirana. Organized retail such supermarkets accounts for just 4% of the market as of
2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty
regulations such as "signboard licenses" and "anti-hoarding measures" may have to be
complied before a store can open doors. There are taxes for moving goods to states, from
states, and even within states.
India‘s retail market, valued at US$ 353 billion in 2010, is projected to grow at a rate of 12 per
cent per annum. India has one of the largest number of retail outlets in the world. The sector is
witnessing exponential growth, with retail development taking place not only in major cities
and metros, but also in Tier-II and Tier-III cities.
INDIAN RETAIL INDUSTRY : SUMMARY
Accounts for 13% of GDP and 8% of total employment
Over 90% is unorganized.
Valued at US$ 400 billion (2011)
Projected to grow at a rate of 12 % per annum to US$ 785.12 billion by 2015.
India currently allows 51 per cent FDI in single-brand retail and 100 per cent in
wholesale cash-and-carry operations.
India will announce new rules for foreign investment in retail by April 2012.
RETAIL FORMATS:
7
Media
Activity
Elements
In store Catalogue Cable TV WWW Telephone
Means of
Mediation
Humans in
Brick and
Mortar
Environment
Paper
&Telephonic
Broadcast
&Telephonic
Computer
&Voice over
Internet
Protocol
Telephonic
Customer Face to Face Remote, Remote, Remote, Remote,
Interface Sales
Service
Print,
Response
Voice only
Voice only,
Recreate
Social Aspect
voice often
electronic
Voice Only
Product
presentation
3-
Dimensional
Displays
Photograph &
Text
Television
image &
demonstration
Computer
image,
Photograph
Text
Telephonic
product &
service
description
RETAILING FORMAT IN INDIA:
Mom-and-Pop stores:
Mom-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.
Malls:
The largest form of organized retailing today. Located mainly in metro cities, in proximity to
8
urban outskirts. Ranges from 60,000 sqft to 7,00,000sqft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.
Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through
selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable/ non-perishable goods.
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further
classified into localized departments such as clothing, toys, home, groceries, etc.
Departmental Stores are expected to take over the apparel business from exclusive
brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which
started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India
and even has its own in store brand for clothes called Stop.
Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food
& grocery organized retail sales. Super Markets can further be classified in to mini
supermarkets typically 1,000 sqft to 2,000 sqft and large supermarkets ranging from of 3,500
sqft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.9
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a
limited range of high-turnover convenience products and are usually open for extended
periods during the day, seven days a week. Prices are slightly higher due to the convenience
premium
Category Killer:
small specialty stores that offer a variety of categories. They are known as category killers as
they focus on specific categories, such as electronics and sporting goods. This is also known
as Multi Brand Outlets or MBO's.
RETAIL FORMATS IN INDIA:
10
Format Description Example
Hypermarkets Avg. Size 50000-100000 sq. ft.
Offers a large basket of products ranging
from grocery, fresh and processed food,
beauty and household products, clothing
and appliances.
HyperCITY
STAR
BAZAAR
Department
stores
Avg. size-10000 to 60000 sq. ft
Offers a large layout with a wide
merchandise mix, usually in cohesive
categories including fashion
SHOPPER’S
STOP
LIFESYLE
Shopping
malls
Avg size 60,000 sqft to 7,00,000 sq. ft
and above
The largest form of organized retailing
today
INORBIT
MALL
INFINITY
PHOENIX
Supermarket Avg. size-10000 to 60000 sq. ft
Having a strong focus on food & grocery
and personal sales
BIG BAZAAR
D MART
Mom & Pop
shops
They are family owned business catering
to small sections
They are individually handled retail
outlets and have a personal touch.
KIRANA
SHOPS
LALA SHOPS
BARRIERS IN THE INDIAN RETAIL SECTOR
To become a truly flourishing industry, retailing needs to cross the following hurdles:
11
Automatic approval is not allowed for foreign investment in retail.
Regulations restricting real estate purchases, and cumbersome local laws.
Taxation, which favours small retail businesses.
Absence of developed supply chain and integrated IT management.
Lack of trained work force.
Low skill level for retailing management.
Lack of Retailing Courses and study options
Intrinsic complexity of retailing – rapid price changes, constant threat of product
obsolescence and low margins.
MAJOR PLAYER IN RETAIL
Future Group:
12
Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group,
and operates multiple retail formats in both the value and lifestyle segment of the Indian
consumer market. Headquartered in Mumbai, the company has over 1,000 stores across 71
cities in India and employs over 30,000 people and as of 2010, it was the country's largest
listed retailer by market capitalization and revenue.
With effect from 1 January 2010 the company separated its discount store business, which
includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, into Future
Value Retail Ltd., its wholly owned subsidiary, so that the company may be listed
independently.
Retail Outlets:
Fashion-Big Bazaar, Pantaloons, Central, ALL, Brand Factory, Blue Sky, Top 10, Fashion
Station- Big Bazaar, Lee Cooper (JV), Ethnicity
Mall - Central
Food - Food Bazaar
Electronics - eZone, Electronic Bazaar, STAPLES (JV)
E-tailing - www.futurebazaar.com
Home Improvement - Home Town
K Raheja Group :
Established in 1956, over the decades, K. Raheja Corp has undergone a major transition from
a real estate developer to a well diversified corporate. Under the leadership of Mr. C L Raheja,
we have progressed rapidly and today, K. Raheja Corp. has grown into a multi-dimensional
organization in the fields of Real Estate, Retailing and Hospitality. The group has the
following formats in retail.
Mall - Inorbit
Book store - Crossword
13
Fashion - Shopper’s Stop
Hypermarket - HyperCITY.
Tata Group :
Established in 1998 trend .one of the subsidiary of Tata group –operates Westside,a lifestyle
retail chain and star India bazaar –a hypermarket with a large assortment of product at the
lowest price .Tata has also formed a subsidiary named infinity retail hitch consist of Croma ,a
consumer electronics chain.
RPG group
:
The RPG Group one of India's largest industrial conglomerate headquartered in Mumbai,
India. It was founded by RP Goenka in 1979. Today the RPG Group is involved in diverse
sectors of business, including power generation, power transmission, information technology,
retail, and entertainment. It owns the following retail outlets:
Spencer's Retail
Food World
Music World
Books and Beyond
Reliance retail
Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance
Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance
Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance I Store, Reliance Home
Kitchens, and Reliance Jewel come under the Reliance Retail brand.
LandMark:
14
The Landmark Group provides a value-driven product range for the entire family through a
diverse portfolio of core retail brands. This includes a host of home grown brands in addition
to international franchise offering. Their brands include:
Home Centre Baby Shop Shoe Mart Splash Max Lifestyle Home Décor
GOVERNMENT POLICIES IN RETAIL
15
The Indian government is likely to announce policy changes allowing foreign direct
investment (FDI) in the multi-brand retail segment. It is currently reviewing a draft report on
FDI in multi-brand retail, according to media reports.
The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce
and Industry is currently fine tuning a draft report submitted by an inter-ministerial committee.
The report is said to have been prepared after taking the consent and viewpoints of all
stakeholders into consideration.
The current regulations on retail allow 100 per cent FDI in wholesale cash-and-carry trading.
In single-brand retailing, 51 per cent FDI is allowed while no FDI is allowed in multi-brand
retailing. After DIPP's review, the report will be sent to the Cabinet Committee on Economic
Affairs for it to be converted into policy, say senior government officials.
The government is seeking an opportune time to reveal the changes so that it may not cause
any upheaval or resistance by the public, as it could potentially affect the livelihood and
employment of millions, the officials added. It is likely that the government of India may relax
the FDI norms in multi-brand retail during the announcement of the annual Budget for 2011-
2012.
Commerce and Industry Minister Anand Sharma has said that a broad-based consensus in
policy formulation for further development of the sector was needed and that the ministry
itself wanted a 51 per cent FDI cap for the sector as was allowed in single-brand retail.
The Ministry of Consumer Affairs and Public Distribution has recommended a 49 per cent
FDI cap in multi-brand retail and the ministry of micro, small and medium enterprises 18 per
cent. The Ministry of Communications and IT , however, feels that liberalisation of FDI norms
will hit electronics manufacturers hard.
Time and again, international multi-brand retailer like Wal-Mart, Carrefour and Metro have
lobbied to open up India's retail sector for foreign direct investment with an eye on the
16
country's vast consumer market. Some of them have opened cash-and-carry stores across the
country
Franchise agreements • Most widely used entry route by
multinational retailers
• Fast food retailer Domino’s entered India
through master franchise
root while Pizza Hut entered through regional
franchisee
Cash and Carry whole sale treading 100% FDI is allowed in wholesale trading
which involves buildingbuilding
of a large distribution infrastructure to assist
local manufacturers
• The wholesaler deals only with smaller
retailers and not consumers
• Metro AG of Germany was the first
significant global player to
enter India through this route
Strategic licensing agreements Foreign company enters into a licensing
agreement with a domesticretailer
• Mango, the Spanisn apparel brand has
entered India through this
route with an agreement with Piramyd,
Mumbai
• SPAR entered into a similar agreement with
Radhakrishna
Foodlands Pvt. Ltd
17
CHALLENGES & OPPORTUNITIES
Retailing has seen such a transformation over the past decade that its very definition has
undergone a sea change. No longer can a manufacturer rely on sales to take place by ensuring
mere availability of his product. Today, retailing is about so much more than mere
merchandising. It�s about casting customers in a story, reflecting their desires and
aspirations, and forging long-lasting relationships. As the Indian consumer evolves they
expects more and more at each and every time when they steps into a store. Retail today has
changed from selling a product or a service to selling a hope, an aspiration and above all an
experience that a consumer would like to repeat.
For manufacturers and service providers the emerging opportunities in urban markets seem to
lie in capturing and delivering better value to the customers through retail. For instance, in
Chennai CavinKare�s LimeLite, Marico�s Kaya Skin Clinic and Apollo Hospital�s
Apollo Pharmacies are examples, to name a few, where manufacturers/service providers
combine their own manufactured products and services with those of others to generate value
hitherto unknown. The last mile connect seems to be increasingly lively and experiential.
Also, manufacturers and service providers face an exploding rural market yet only marginally
tapped due to difficulties in rural retailing. Only innovative concepts and models may survive
the test of time and investments. However, manufacturers and service providers will also
increasingly face a host of specialist retailers, who are characterized by use of modern
management techniques, backed with seemingly unlimited financial resources. Organized
retail appears inevitable
There is no denying the fact that most of the developed economies are very much relying on
their retail sector as a locomotive of growth.. The Retail Industry in India has come forth as
one of the most dynamic and fast paced industries with several players entering the market.
But all of them have not yet tasted success because of the heavy initial investments that are
required to break even with other companies and compete with them. The India Retail
Industry is gradually inching its way towards becoming the next boom indust
18
19
COMPANY
AND
PRODUCT PROFILE
COMPANY ORIENTATION
20
HyperCITY is the part of K Raheja corp group and was incepted in 2005. It provides a truly
international shopping experience where customer can shop in comfort in a large, modern and
exiting environment. It offers a wide and contemporary range of innovative products, sourced
from both local and international markets.
OUR VISION
To be an integral part of customer live, by offering them a high quality shopping experience
through great products at ever better prices.
WHAT WE ARE
Hypermarket model – 1, 20,000 Sq. Ft. and above.
Best priced, full supermarket within.
Widget general merchandise range
Dominant assortment in chosen categories
International shopping experience
Lisuretainment
21
HyperCITY
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 Shopper's
Stop, Inorbit Mall and Crossword apart from their successes in realty and hospitality
HyperCITY has 10 stores, covering approx 8 lac sq. ft, operational across 7 cities
viz. Mumbai (Malad, Thane & Vashi), Amritsar, Jaipur, Bengaluru, Bhopal, Ludhiana
&Hyderabad. It offers a wide range of product in categories like Fresh produce, Foods and
Grocery, Home, Bakery, electronics, Furniture, Sports, Toys & Apparel. it now is gearing up
to commission three more stores at Ahmedabad, Pune and Mumbai by December
HyperCITY 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. It offers over 44,000
products sourced from both local & global markets.
HyperCITY, the hypermarket offer from Shoppers Stop has a chain of 10 stores (covering
approx. 8 lac sq ft) with the addition of a store in Bangalore recently, and. The company
closed year 2010-11 with a growth of about 80 % clocking sales of Rs 600 crore and expect to
take this up to Rs 900 crore in 2011-12. Food business contributes about 58 % revenue. The
company hopes to achieve an operational break even this year. Contribution from private label
is expected to be increased to 23 % this year and 25 % next year.
22
K. RAHEJA GROUP
COVERAGE
23
HyperCITY – Malad
Next to Inorbit Mall
Malad Link Road
Malad (West)
Mumbai 400 064
Ph: +91 - 22 - 40078418/ 19/ 20
HyperCITY - Vashi
GR Floor, Inorbit Mall
Plot No. 39/1, Sector - 30/A
Vashi
Navi Mumbai 400 703
Ph: +91 - 22 – 40501300
24
HyperCITY – Thane
Ground Floor, Big Thane Shopping Centre
Ghodbunder Road,
Behind Kasarvadawali Police Station,
Thane
Ph: +91 - 22 – 25987777
HyperCITY – Hyderabad
Inorbit Mall, Lower Ground Floor,
Opp. I-Labs, Hi-tech City,
Madhapur, Hyderabad
Andhra Pradesh
Ph: +91 - 040 – 44882031
25
HyperCITY - Amritsar
Alpha One Mall, Upper basement,
MBM Farms,
Sultan Wind Suburban,
Main G. T. Road, Amritsar - 143 001
Ph: +0183 - 661 5555
HyperCITY – Jaipur
Triton – The Mega Mall, Lower Ground Floor,
Nr. Jhotwara Pulia & Sikar Road Circle,
Jhotwara Road, Jaipur - 302 012
Rajasthan
Ph: +91 - 141 - 4094660/
26
HyperCITY – Bhopal
DB CITY
Arera Hills
Bhopal 462011
Ph: 1800-209-7172
HyperCITY – Ludhiana
Lower basement, MBD neopolis mall
Ferozpur road, adjacent to Rajguru nagar,
Ludiana - 141001
27
HyperCITY – Bangalore 1
Embassy Paragon, Ground Floor,
Nr. Kundalahalli Gate,
ITPL Road, Near Brooke Field,
Bangalore - 560 037
Ph: +91 - 080 - 4364 3333
HyperCITY – Bangalore 2
Lower ground floor
Royal meenakshi mall
Bannergatta road,
bengaluru
28
HyperCITY – Pune
Ground floor
Kumar pacific mall,
Shankarsheth road,
Swargate,
pune
29
HyperCITY, MALAD
HyperCITY, Malad is a flagship store in Mumbai which has niche segment target people.
This store is 1, 20.000 sq. ft. huge in size and
a wide parking area within. HyperCITY, Malad has 68% market share
in his catchment area
CATCHMENT AREA
Malad east & west
Goregaon east & west
Andheri east & west
Bangur nagar
HyperCITY gives a wide & huge space for shopping and provides standardized, luxurious and
international experience of shopping.
HyperCITY provides hygienic and quality products to their customers.
30
HyperCITY, MALAD
HyperCITY – MALAD
Next to Inorbit mall
Malad Link Road
Malad (West)
Mumbai 400 064
31
HyperCITY PRODUCT SECTIONS
FOOD & GROCRY ITEMS
Fruits & vegetables
Meat &Fish
Staples
Ready & Instant Food
Beverages
Home care
personal care
32
HOME SECTION
Home ware
Home needs
Home linen
33
HIGH TECH SECTION
Computing
Communication
Photography
Imaging
HOME ENTERTAINMENT SECTION
Vision
Audio
34
APPLIANCES SECTION
Large appliances
Small appliances
Personal care
35
FASHION SECTION
Men’s wear
Women’s wear
Kids wear
Foot wear
Accessories
TOYS SECTION
Infant toys
Soft toys
Electronic toys
Learning toys
Outdoor toys
36
SPORTS SECTION
Health & Fitness
Outdoor sports
Indoor sports
FURNITURE SECTION
Living Room
Bed Room
Dining Room
37
EXCLUSIVE BRANDS
HyperCITY has a wide array of exclusive brands across all categories. These brands ensure
increased value to our customers through superior product offerings, quality and uniqueness at
great prices
FOOD & GROCERY
38
TERZO:
The Power of Super clean is now in your hands. Introducing Terzo
Home cleaners with power of 3! The range comprise of power
cleaners, Everyday Cleaner, Toilet cleaner, Floor Cleaner & Utensil
Cleaner.
FRESHBASKET:
Every Fresh Basket product guarantees freshness and quality on a
daily basis, with all the goodness locked in. Fresh Basket offers the
freshest selection of meat, seafood, fresh produce, freshly baked
breads, specialty bread, etc.
HyperCITY
HyperCITY is dedicated to bring wholesome food to your family at
great prices. Our products are packed under hygienic conditions and
are priced to offer real value, every day. HyperCITY encompasses
everyday foods like cereals, spices, flour, pulses, dry fruits and other
products.
WAITROSE
Voted the top supermarket chain in UK. Exclusively available at
HyperCITY. Come and taste the best of teas, coffees, juices, jams and
more.
39
HOME
EBANO
Discover stylish essentials for your home with HyperCITY’s exclusive
brand e b a n o. e b a n o presents a selection of basic products with a
modern appeal. Bringing your home to life with contemporary designs,
vibrant colours, great value & is present across Utensils, Cutlery,
Bakeware, Crockery, Glassware, Pots'n'pans, Implements, Bed linen,
Towels, Cushions, Table linen, pillows and more.
AVORIO:
Make your home a more luxurious place with Avorio, the exclusive
brand from HyperCITY. AVORIO offers exclusive, versatile and
classic designs to enhance your lifestyle. Avorio spans Implements,
Pots'n'pans, Glassware, Cutlery, Crockery, Towels, Bed linen, Table
linen, Duvets & quilts and more.
EVERYDAY:
The range includes everything you need for your office - office
accessories, writing instruments, paper stationery, etc.
FASHION
HyperCITY offers a coordinated range at super prices; cutting across clothing, footwear,
sunglasses, watches, hair accessories, bags and jewelry.
40
JOOJOOBS
Discover Fashion for your little ones!! The Joojoobs range of
comfortable garments for infants includes designer infant wear and
infant western wear. The range combines the finest quality fabrics &
vivid colors to create a high value range of infant wear.
CITYSENSE
Comprises of a basic line of value packs at super duper prices;
covering value packs of tees, socks, briefs, vests, basic denim, etc., for
men, women & kids.
CITYLIFE
Everyday wear for men, women, kids and footwear, styled for value.
CITYSTYLE
Offers the latest trends in clothing in the market, at prices that are
affordable.
RIVERINC.
A range of quality denims for men, ladies and kids. The range
comprises of basic denims, fashion denims, tees, cargos, denim shirts
and jackets.
41
APPLIANCES
TECHNIX:
Our Technix range of appliances will be available across microwaves,
cook-tops and mixer-grinders.
RALEIGH
The Raleigh Series of bicycles are available exclusively at
HyperCITY. Raleigh is one of the world’s biggest brands in Bicycles.
Raleigh bicycles are simple, elegant, efficient and fun. They are
designed with care and fitted with latest technology. Raleigh has the
following varieties in bicycles - Mountain Sport, Platinum, Juvenile,
Toy cycles, etc.
MAXIT:
The Maxit line of sports equipment and apparels is available
exclusively at HyperCITY. Maxit stands for - Maximum Range, i.e. it
offers a superior line up of sports gear at great value. Maxit is
available across sports categories like cricket, football, basketball,
volleyball, boxing and baseball.
42
SPORTS
LITRATURE REVIEW
WHAT IS PROMOTIONAL STRATEGIES?
75
Promotion is one of the four elements of marketing mix (product, price, place and promotion).
It is the communication link between sellers and buyers for the purpose of influencing,
informing or persuading a potential buyer’s purchasing decision.
PROMOTION MIX
Promotion mix contains five elements they are -
Personal selling
Advertising
Sales promotion
Direct marketing
Publicity
OBJECTIVE OF PROMOTION
44
There are three basic objectives of promotion these are –
To present information to consumers as well as others
To increase demand.
To differentiate a product
TYPES OF PROMOTIONAL STRATEGY
Basically there are two types of promotional strategies are used they are –
Push strategy
Pull strategy
CHANNELS OF PROMOTION
45
There are the various channels of promotion are given below-
Newspapers
Magazines
Radio
Television
Direct mail
SMS
Outdoor advertising
Word of mouth
Leaflets
Catalogues
Announcement
PROMOTION TOOLS
Samples
Coupons
Cash refund offers (Rebates)
Price offs (Cent-off deals)
Premiums (gifts)
Frequency programs
Prizes (contests, sweepstakes, games)
Patronage awards
Free trials
Product warranties
Tie-in promotions
Cross promotions
Point-of –purchase (pop) displays and demonstrations
46
Price offs
Allowance
Free goods
47
OBJECTIVES
AND
SCOPE OF THE PROJECT
PRIMARY OBJECTIVE:
To study the effectiveness of promotional activities which influences a customer to
purchase from HyperCITY?
SECONDARY OBJECTIVES:48
To find out the satisfaction level of HyperCITY membership Discovery Club Card?
To know the promotional activity awareness among the customers
To know the various mediums of promotional activities of HyperCITY
To understand the ambience effects on the customers.
To know the frequency of visiting the customers at HyperCITY.
To know which category of product selling more.
SCOPE OF THE STUDY
This project is based on the customers of Mumbai, so this project will help to understand the
perception of the customers about the advertisements and promotional activities.
This project is based on the promotional activities of HyperCITY to know the awareness of
the of offers and discount schemes given by the HyperCITY so this project will help to take
the right decisions for the promotional activities.
This project helps to know that what are the effective ways of promotional activies which
helps to increase the footfall of HyperCITY.
49
RESEARCH
MEHODOLOGY
WHAT IS RESEARCH METHODOLOGY?
Research methodology is a way to systematically solve the research problem. It shows how
the research is done scientifically (exactly) – studying the research methods along with the
logic (sense) behind them are part of the research methodology – various steps.
50
DEFINITION
Search for Knowledge – careful investigation or inquiry to find out new facts in any branch of
knowledge – scientific and systematic investigation to acquire new knowledge.
RESEARCH DESIGN
The research will be descriptive in nature and survey is used as data
collection technique will be conducted on already existing or prospective
customers. Face to face interview with different customers from various parts
of the Mumbai was held in which Questionnaire was used as a data gathering
tool. The survey has helped us to streamline the process and serve the
effectiveness of the promotional activities of HyperCITY.
Types of research :
There are several research design given below-
pure research
applied research
exploratory research
descriptive & diagnostic research
experiment research
STAGES IN RESEARCH PROCESS
PROCESS STAGES:
1. Defining the research objectives
51
2. Planning a research design
3. Planning a sample
4. Collecting the data
5. Analyzing the data
6. Formulating the conclusions and preparing the report
SAMPLE DESIGN:
Sampling is an act, process, or technique of selecting a representative part
of a population.
52
a sample design is a definite plan for obtaining a sample from a given
population.
SAMPLING CONCEPTS:
POPULATION: Total collection of elements under investigation..SAMPLE: The subset of the element of the population chosen for study..SAMPLING UNIT: A sampling unit can be an individual element or a set of
elements based on the sampling process used.
SAMPLING FRAME: The sampling frame refers to a complete
enumeration/list of the population as specified by the research problem. It is a
list of all the sampling units.
TECHNOQUE OF SAMPLING:
The basic methodology that we followed was the questionnaire method.
Research objectives were clearly stated before designing the questionnaire
Information was collected form a sample size of 300 respondents, which included both
males and females.
Information obtained from the respondents was analyzed and interpreted.
Findings revealed by the tabulations were listed in a summarized form as
Recommended Actions
The sampling method used was Non-probability random sampling
SAMPLE SIZE:
53
Sample population Resident of Mumbai
Sample frame Customers of HyperCITY
Sample size 300
Data collected Non probability random sampling method
SOURCES OF DATA
There were two main sources of data during the project:
Primary Data: the primary data was collected through the customers coming to the
HyperCITY for shopping.
Secondary Data: The secondary data was collected through Internet, Journals
and magazines.
LIMITATIONS
The present study is confined to a minimal sample size and may not reflect the opinion
or response of the entire population in general.
The results of our study are entirely confined to the responses of the consumers of
Mumbai and might deviate in terms of actual population as a whole.
Recommendations given after the study are entirely dependent on the survey and the
secondary analysis done in the report.
There might have been tendencies among the respondents to amplify or filter their
responses under the testing.
The respondents might think that this survey is only a waste of time or it might create
some problem and hence there might have been tendencies to give fake answers and
fill the questionnaire casually.
Observation Method: While streamlining the process I came across several
54
areas where there as scope of improvement. So recommendations on various
perspectives have also been put forward.
55
TASKS UNDERTAKEN
DURING THE PROJECT
TASKS UNDERTAKEN DURING THE PROJECT
DCC Enrollment
Competition Mapping
56
Basket Comparison
Ham Comparison
Societal Tie up
Restaurant Tie up
Facebook Activity
Sampling Activity
In Store Activities
Father’s Day Celebration
Drawing Competition
Cycling Race
DCC ENROLLMENT
Dcc is the discovery club card. Which is a membership card for the hypercity customers. It is a
electronic card which a customer show during the billing to get the benefits of this card.
FEATURES OF DCC57
It is an electronic swiping card
100 points are initially given
1 point is equivalent to 1 Rs.
Whenever customer buy any products he gets certain points on certain products which
points keep on accumulating to his Dcc account.
BENEFITS OF DCC
Customer become a lifetime member of the club
Customer can redeem dcc points at the time of final billing
Customer gets keep on updating with latest offers, schemes, activities etc. via emails,
sms and direct mailing.
COMPETITION MAPPING
Competition mapping is all about to know what the competitors of HyperCITY are doing for
their store marketing.
Competition mapping is contains three tasks-
58
Basket comparison
Ham comparison
Share of voice
BASKET COMPARISON
Basket comparison is all about to know what the competitors are doing with their product
prices. In this task we went to the different retail outlets (major competitors) and spying their
product prices. And also try to know what promotional activities they are using to attract the
customers.
In this comparison we take 30 to 35 products including food, non food and perishable
products. Perishable products are taken on seasonal basis.
This activity is done on every Tuesday of the week
MAJOR COMPETITORS
Star Bazaar
Food Bazaar
D – Mart
Spencer’s
BENEFITS OF BASKET COMPARISON
Well understanding of competitor’s pricing strategy
Take an appropriate decision about our prices
Well understanding of competitor’s promotional strategies
Giving the product to the customer in nominal prices in comparison of the competitors
COMPILED BASKET REPORT
After the all taken prices we make a compiled report. In this report we compare the our
product prices to the competitor’s product prices.
59
60
BASKET COMPARISON
IMAGES
61
HAM COMPARISON
Ham is the high-tech, appliances, multimedia. Ham comparison is all about to know what the
competitors are doing with their product prices. In this task we went to the different retail
outlets (major competitors) and spying their product prices. And also try to know what
promotional activities they are using to attract the customers.
In this comparison we take only electronic items. This activity is done on every Friday of the
week.
HIGH TECH PRODUCTS
Laptops
Headphones
Game cds
Speakers
Mobile phones
Cameras
Printers
Desktops
Other accessories
APPLIANCES
Refrigerators
Air conditioners
Washing machines
Microwaves
62
MULTIMEDIA
LCD
LED
Speakers
CD
MAJOR COMPETITORS OF HyperCITY IN HAM PRODUCTS
Croma
Vijay sales
Kohinoor
E – Zone
Snehanjali
Next
63
HAM COMPARISON
IMAGES
64
SHARE OF VOICE
Share of voice is used to accumulate measured media expenditures and estimated costs for
other communications activities. Information should be gathered for all competitors on a
regular (weekly, quarterly and/or annual) basis. Each competitor's percentage of the aggregate
total is its Share-of-Voice."
Share of voice is the task to know that what the competitors are doing for the advertisement of
their product. In share of voice marketing officer see the competitors advertisement and offers
in various sources and make a share of voice report.
SHARE OF VOICE INCLUDES –
Newspaper advertisings
Hoardings
NEWSPAPER INCLUDES
The times of India
Mumbai Mirror
Hindustan Times
65
SPACE ON HIRE
Space on hire means HyperCITY gives space to the different companies for the
advertisements of their product.
MEANS OF SPACE ON HIRE
Travelator branding
Drop downs
Danglers
Glass fasate
Tran slide boxes
Fixtures
Pillar branding
Portals
FNV pillars
Cash till poles
Pillar cladding
End capes
Discovery pillars
Plinth display
66
ENDCAP
DISCOVERY PILLARS
67
TRAVALATOR BRANDING
CASH COUNTER BRANDING
68
TROLLY BRANDING
GLASS FACATE
69
FACEBOOK ACTIVITY
Facebook is a social networking site. In facebook HyperCITY has a community. In this
community customers are connects online to the HyperCITY. We done this activity with the
collaboration of bru world café (coffee chain).in this activity we approach the customers to
like the community of hypercity on facebook . and instead of that they get a bru world
cappuccino voucher absolutely free which is worth RS. 129.
Many customers participated in this activity and liked the HyperCITY community on the
facebook. This campaign was for two weeks. And in these Two weeks we increased the No. of
likes from 13506 to 15509. That means we have enrolled 2003 customers.
70
IN STORE ACTIVITIES
In store activity includes all the promotional activities which are done inside the store. These
are the very important drives for HyperCITY which are the very helpful to increase the sales
of different departments. Some of the in store activities are-
Father’s day
Drawing competition
Cycling race
71
DRAWING COMPETITION
This in store activity is organized for the kids. In this activity Different ages of kids were
participated and draw the sketches. This activity was sponsored by Junior Horlicks. This drive
is organized to increase the sales of stationary section of HyperCITY.
72
SLOW CYCLING RACE
This in store activity is organized for the kids. In this activity Different ages of kids were
participated. This activity was sponsored by Maxit. This drive is organized to increase the
sales of sports section of HyperCITY.
73
RESIDENTIAL SOCIETY ACTIVITY
In this activity we gone to the different residential societies for the promotion of Bajaj
Microwave oven.
In this activity there was a cookery show sponsored by Bajaj electronics for the housewives of
society
This activity done for the drive the sales for Bajaj microwave oven.
74
RESTAURANT TIE UP
In this promotional activity we gone to the different restaurants in the catchment area (Malad,
Goregaon, Andheri, Bangur nagar) of HyperCITY. We pitched the restaurant owner to give
some discounts to our members of HyperCITY. Those customers who are having the
membership card of HyperCITY. We gone to 5 restaurant and approached them.
75
DATA ANALYSIS
AND
INTERPRETATION
75
Q.1 Have you ever seen any promotional activity or advertisement done
by HyperCITY, Malad?
53
47
Column1
YESNO
77
INTERPRETATION FOR QUESTION NO. 1
The analysis shows nearly half of the total samples (53 percent) surveyed have seen the
promotional activities.
Promotional activity had large impact of existing as well as potential customers.
Our analysis also proves that there are customers (47 percent) who have not seen any of the
promotional activity, but visit HyperCITY.
78
Q.2 By which source you have seen the promotional activity?
Newsp
aper
leafle
ts
in st
ore
Wor
d of m
outh
othe
rs (sm
s,em
ail)
0
10
20
30
40 36
24
14
6
20
SOURCES
SOURCES
The sources in which the customers have seen the advertisement
Sources newspapers Leaflets In store
activity
Word of
mouth
Others
(sms,
emails
Percentage 36
percent
24 percent 14 percent 6 percent 20
percent
79
INTERPRETATION FOR QUESTION NO. 2
Newspapers are the cheapest source/media where promotional activities reach every customer,
either existing or new customer.
36 percent of them were influenced through newspaper advertisements.
Leaflets and other sources via electronics (SMS, E-mail) stands next to newspapers. (24
percent customers seen ads through leaflets and 20 percent received ads either trough SMS/E-
mail.)
In store ads (14 percent) had very less influence.
80
Q.3 How often do you come for shopping at HyperCITY?
Alway
s
som
etim
es
very
often
first
time
0
10
20
30
40
50
60 53
32
13
2
FREQUENCY
FREQUENCY
Frequency of the customers to come at HyperCITY
Frequency Always Sometimes Very often First time
percentage 53% 32% 13% 2%
81
INTERPRETATION FOR QUESTION NO. 3
This analysis proves that customers do visit HyperCITY very frequently.
53 percent of the customers say they like to come only at HyperCITY. They don’t like to go
any other places for shopping
The range of products and the ambience attracts customers. This is indirectly proven from this
analysis. (53 percent of customers always visit HyperCITY).
32 percent of the customers say they come hyperCITY but they also go to the other places as
well.
13 percent of the customers say they come very often for the shopping at HyperCITY.
2 percent of the customers say this is the first time they are coming to hyperCITY for the
shopping.
82
Q.4 What kind of products do you purchase at HyperCITY?
GROCERY
FASHION
ELCTRONICS
FURNITURE
0
10
20
30
40
50
60 57
19 19
4
PRODUCTS
PRODUCTS
The products usually purchased by the customers
products Grocery Fashion Electronics Furniture
percentage 57% 19% 19% 4%
83
INTERPRETATION FOR QUESTION NO. 4
The analysis shows 57 percent of the customers come to HyperCITY for purchasing
GROCERIES.
Though HyperCITY in Malad offers wide range of products, there is less preference for
fashion and electronics products in the region.
Furniture is hardly sold in HyperCITY
Customers for furniture are almost very few (4 percent) from the samples.
84
Q.5 Have you ever purchased anything because of the promotion you seen?
GROCERY
FASHION
ELECTRONICS
FURNITURE
0
10
20
30
40
50
60
70
8067
1118
4
Series 1
Series 1
Products purchased by the customers because of the promotion.
Products Grocery Fashion Electronics Furniture
Percentage 67% 11% 18% 4%
85
INTERPRETATION FOR QUESTION NO. 5
This question was raised to see the promotional effects on the purchase.
Groceries purchase showed the highest among various products offered by HyperCITY.
It is nearly 67 percent of the total samples.
Electronic purchase is the next product which is done by customers other than groceries (18
percent are observed).
Fashion products do not have any affects of promotions done by HyperCITY FASHION and
FURNITURE products do not have any influence.
86
Q.6 Do you think the visual merchandising is helpful to attract the
customer?
91
9
VISUAL MERCHANDISING
YESNO
91% customer says the visual merchandising is helpful to attract the customers
9% customer says the visual merchandising is not helpful to attract the customers
87
INTERPRETATION FOR QUESTION NO. 6
Visual merchandising is very helpful to the customer.
91 percent of them are attracted by visual merchandising.
Visuals proved to be a better form of attracting customers other than newspapers and SMS or
E mail ways of doing advertisements.
88
Q.7 Are you aware of the hyper weekly offers?
HYPER WEDNESDAY
FRIDAY B
LOCKBUSTER
BOTH NO0
20
40
60
12 9
28
51
OFFERS
OFFERS
The various weekly offers of HyperCITY
Weekly offers Hyper
Wednesday
Friday
blockbuster
Both No
Percentage 12% 9% 28% 51%
89
INTERPRETATION FOR QUESTION NO. 7
Our observations proved that nearly 51 percent of the HyperCITY customers are not aware of
Hyper weekly offers.
During weekly offers, discounts are given on many products. This helps in increasing sales.
Hyper Wednesday and Friday blockbuster are among such weekly offers by HyperCITY.
Very less percentage of the samples knew about the HyperCITY offers. (28 percent expressed
they are not aware of offers).
90
Q.8 Do you have a Discovery Club Card?
58
42
DCC
YESNO
58% customer says they are having the membership card of HyperCITY
42% customer says they are not having the membership card of HyperCITY
91
INTERPRETATION FOR QUESTION NO. 8
Discovery club is the membership card for HyperCITY customers.
58 percent of them have the membership cards through which they do purchases.
Membership card facility will be useful to redeem points followed by gift vouchers.
92
Q.9 Are you satisfied with the discovery club card?
YES NO NOT YET USED
0
10
20
30
40
50
60
70 65
19 16
SATISFACTION
SATISFACTION
65% customer says yes they are quite satisfied with the card.
19% customer says they are not satisfied with the facility of the card.
93
INTERPRETATION FOR QUESTION NO. 9
65 percent of the customers from our samples are satisfied with discovery club card.
Though cards are given for regular customers 16 percent of them have not at all used the
membership facilities.
Our analysis is also shows that 19 percent of them are not satisfied with the membership
facilities.
It appeared membership cards do not have any impact on HyperCITY customers.
16% customers having the card but they have not yet used the card or redeem the points.
94
Q.10 What kind of offers do you like?
DISCOUNT O
N MRP
FREE GIF
TS
DISCOVERY C
LUB POIN
TS0
10203040506070 66
2113
Series 1
Series 1
The offers liked by the customers
Offers Discount on MRP Free gifts Discovery club points
Percentage 66% 21% 13%
95
INTERPRETATION FOR QUESTION NO. 10
The offers given by HyperCITY and is largely on discounts on MRP.
Nearly 66 percent of customers are satisfied with discount offers.
Free gifts are given to members of the HyperCITY.
21 percent of the customers are satisfied with free gifts, which is again followed by Discovery
club points (13 percent customers).
Discounts on MRP, the strategy of HyperCITY is really a better promotional activity to boost
up the sales.
96
Q.11 How would you rate the promotional activities done by the
HyperCITY?
VISUAL M
ERCHANDISIN
G
NEWSPAPER
LEAFLETS
ACTIVIT
IES IN
THE S
TORE
WORD O
F MOUTH
012345
RATINGS
RATINGS
The ratings of promotional activities given by the customers
Activities Visual
merchandising
Newspaper Leaflets Activities in
the store
Word of
mouth
Percentage 4.5 1 2.5 3 2
97
INTERPRETATION FOR QUESTION NO. 11
The analysis was done to find out the customer’s rating on different ways of promotions of
HyperCITY.
To a larger extent visual merchandising is proved a better means of promotion.(4.5 points)
Through newspapers were the other better sources to show the promotional activity, customers
did not rate it the better.
Leaflets, word of mouth were the better source other than visual merchandising which gained
importance.
98
OBSERVATIONS
AND
FINDINGS
75
FINDINGS
The promotional activities did have the influence on customers.
People are aware of promotional activities done by HyperCITY.
Among various means of doing promotions like newspapers, leaflets and catalogues
are the better means which attracted customers.
Customers always visited HyperCITY because of better ambience and quality
products.
Among many products offered, maximum sales happens is for the groceries section at
HyperCITY. This is because quality products are offered.
Weekly offers are not given importance by the customers.
Many of the customers are not aware of offers given such as hyper Wednesday, Friday
blockbuster etc.
Discovery club card (membership card) is satisfactory among the customers
Many customers did purchases, but did not avail the benefit of membership (DCC)
card.
Ambience and comfortable atmosphere rather proved to be gaining momentum for
HyperCITY.
100
CONCLUSION
CONCLUSION101
The target segment of HyperCITY is niche class people mainly and they don’t come for any
offers so HyperCITY doesn’t need to do the advertisement very frequently. The customers
come for shopping because of the standard of the store, the quality of the products, hygiene
and the world class ambience which gives them a very comfortable atmosphere
102
RECOMMENDATIONS
RECOMMENDATIONS
Many of the customers are not aware of the Hyper weekly offers so try them to make
them aware
103
Many of the customers said that the customer associate doesn’t respond very well so
train them thus they can help the customers.
Follow up of the HAM section is not very good. So try to give better after sales service
thus customer can come back again and again.
Many of the members of DCC are not getting the emails and sms from HyperCITY so
update the customer information while enrolling the customers
104
REFERENCES
REFERENCES
www.hypercityindia.com
105
www.wikipedia.com
www.google.com
BOOKS
RESEARCH METHODOLOGY
106
ANNEXURE
Questionnaire
Name Of Customer ____________________
Area Of Residence ___________________
Q.1 Have you ever seen any promotional activity or advertisement done by
HyperCITY, Malad?
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Yes
No
Q.2 By which source you have seen the promotional activity?
Newspaper
Leaflets, catalogues
Radio
In Store
Word of Mouth
Others __________________
Q.3 How often do you come for shopping at HyperCITY?
Always
Sometimes
Very often
First time
Q.4 What kind of products do you purchase at HyperCITY?
Grocery
Fashion
Electronics
Furniture
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Q.5 Have you ever purchased anything because of the promotion or advertisement you
Seen?
Grocery
Fashion
Electronics
Furniture
Q.6 Do you think the visual merchandising is helpful to attract the customers?
Yes
No
Q.7 Are you aware of the Hyper weekly Offers?
Yes
No
Q.8 Do you have a Discovery Club Card?
Yes
No
Q.9 Are you satisfied with the Discovery Club Card?
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Yes
No
Not yet used
Q.10 What kind of offers do you like?
Discount on MRP.
Free gifts
Discovery club points
Q.11 How would you rate the promotional activities done by the HyperCITY?
Poor Average Good Very Good
Excellent
Visual merchandising
110
Newspaper Advertisements
Leaflets,catalogues
Activities in theStore
Word of Mouth(Announcement)
Q.12 Would you like to give any suggestions related to promotional activities
or advertisements?
111
112