study the usefullness and brand awareness of it products in retail sector
DESCRIPTION
USEFULLNESS AND BRAND AWARENESS OF IT PRODUCTS IN RETAIL SECTOR“TRANSCRIPT
A PROJECT REPORT
ON
“TO STUDY THE USEFULLNESS AND BRAND AWARENESS OF IT
PRODUCTS IN RETAIL SECTOR“
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
MASTER IN MANAGEMENT STUDIES (MMS)
2011-2013
ROLL NO:- P-36
(MARKETING)
SUBMITTED TO
DR. V.N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE
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STATEMENT BY THE CANDIDATE
I wish to state that the work embodied in this Project titled “TO STUDY THE
USEFULLNESS AND BRAND AWARENESS OF IT PRODUCTS IN RETAIL SECTOR“
forms my own contribution to management. Wherever references have been made to
intellectual properties of any individual / Institution / Government / Private / Public Bodies /
Universities, research paper, text books, reference books, research monographs, archives of
newspapers, corporate, individuals, business / Government and any other source of intellectual
properties viz., speeches, quotations, conference proceedings, extracts from the website, working
paper, seminal work et al,they have been clearly indicated, duly acknowledged and included
in the Bibliography.
_________________________ _________________________
Signature of project Guide Signature of Candidate
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Acknowledgement
I take this opportunity with much pleasure to thank all the people who have helped me
through the course of my journey towards completing this project. I sincerely thank my mentor,
Ms. Swapna Tamhankar, for her guidance, help and motivation. Apart from the subject of my
research, I learnt a lot from her, which I am sure, will be useful in different stages of my life.
I would like to express my gratitude to Mr. Dhananjay Maniwade(Field Manager at IMRB) for
his help in making me understand the working of IMRB and providing me help throughout my
project. My sincere gratitude also goes to all those who instructed and taught me through the
years.
Finally, this project would not have been possible without the confidence, endurance and support
of my family. My family has always been a source of inspiration and encouragement. I wish to
thank my parents whose love, teachings and support have brought me this far.
SAMEER Y. WAJE
\
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Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................5
ABOUT IMRB INTERNATIONAL COMPANY.............................................................................................6
Need and Scope of Project.........................................................................................................................10
Project Objectives......................................................................................................................................11
About the Itops Project..............................................................................................................................12
RETAIL INDUSTRY................................................................................................................................13
Top Retail Formats in India.......................................................................................................................15
Retail Technology and the Evolving Shopper...........................................................................................16
Need of Information Technology in Retailing............................................................................................17
How Information Technology Involved In Retailing Operations?.............................................................19
Applications of Information Technology in Retail....................................................................................21
Some of the Information technology tools that retailers are using are:......................................................27
Contribution of India’s IT industry to Economic progress........................................................................33
Advantages of conventional and modern organized retail formats............................................................35
Literature Review......................................................................................................................................36
Outcome of the Study from Customer Survey...........................................................................................41
Learning from the project..........................................................................................................................53
Conclusion.................................................................................................................................................54
Bibliography/ References..........................................................................................................................55
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EXECUTIVE SUMMARY
Industries in our modern day are facing tremendous pressures like society conformation,
technology innovation and market competition. These three forces describe by Boyett and
Boyett, (1995) catalyzed an organization to initiate goodwill responses, improve their
technological platform and invent systems to automate their operational processes. These are
efforts contributed to retain their competitive edge thus preserving their existence.
The challenge of retailing is to strike the balance between cost optimization and maintaining the
level of service. The trade-off between these factors is a dynamic one and retailers have to
endeavor to strike a balance towards it all times. Technology has become the basic fabric of the
retailing industry today. Perhaps the most important fact is that retailers who do not understand
the ways to use technology for competitive advantage will be left out in the competition.
This study is an effort to understand the applications of information technology in the modern
retail industry, like in supply chain management, store management, point of sale and customer
relationship management. With the help of case studies and a brief customer survey the current
industry scenario is also studied.
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ABOUT IMRB INTERNATIONAL COMPANY
INTRODUCTION:
IMRB International, the erstwhile Indian Market Research Bureau (IMRB), established in
1971, is the oldest & largest market research organisation in India and South Asia. IMRB
International is part of the world renowned Kantar Group, the Insight and Consulting Division of
the 10 Billion WPP Plc. The other partners in the Kantar world include Research International,
Millward Brown, BMRB, etc. In India, IMRB International is owned by HTA Private Limited
which also owns the world renowned advertising agency, JWT.
In 2005, IMRB International managed 2,500 projects and 40,00,000 interviews across all its
offices in India.
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IMRB International promises high quality conceptualization, strategic thinking, execution and
interpretation skills on all its clients' research needs. IMRB International is the only research
company in India today that offers the entire range of research based services to its clients.
IMRB International's specialized areas are consumer markets, industrial marketing, business to
business marketing, social marketing and rural marketing.
The company has ability to provide the highest quality of professional services to the utmost
satisfaction of our clients which include small medium and large scale industries, government
and public sector units, multinational corporations and international companies.
To serve the diverse needs of our clients, the company has five specialist units:
• Probe Qualitative Research (PQR)
• Social and Rural Research Institute (SRI)
• Media & Panel Research Group
• Customer Satisfaction Management & Measurement (CSMM)
• Business & Industrial Research Division (BIRD) and the e-Technology Group
IMRB offers the full spectrum of customised research services which besides consumer research,
includes trade research, industrial market research, business to business research, trade and
tourism research, corporate image research, media research, financial services research, medical
marketing research and social research.
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In addition, IMRB offers a wide array of syndicated research services in the field of technology,
media and market measurement.
Infrastructure and Resources
Research staff
IMRB has close to 400
professionals on its research staff
for handling consumer, industrial
and qualitative research. These
include managers, project directors
and research executives from
diverse academic disciplines
including engineering, statistics,
psychology, social sciences,
economics and management.
All research staff is extensively
trained in conducting market
research through in house experts
as well as faculty invited from the
industry in India and abroad. The induction training programme of IMRB International – Lyceum, is
well known in the research fraternity for imparting best quality training.
Analysis and Systems staff
Analysis of all survey research data is computerised. The in-house data processing cell has the state
of art infrastructure (hardware and software) available to them. The department is manned by more
than 150 full time computer professionals most of whom have advanced qualifications in
computer applications and languages. These personnel are also well versed in the use of wide
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variety of off-the shelf data processing packages such as SPSS, Quantum, Brio, MDS, Excel Pivots,
CAN, LOTUS, FOXBASE, etc. Whenever necessary, customized analysis software is developed in-
house using higher level programming languages such as C++, Visual Basic , Fortran, etc.
Field staff
Field management operates through a three-tier structure to ensure close control and supervision of
fieldwork. Each of the zonal offices has more than 10 field executives who work under the overall
supervision of the Zonal Field Manager.
The field office maintains panels of interviewers for consumer research and panels of specialist
interviewers for interviewing target groups such as business executives, medical practitioners’ etc.
The interviewers are personally briefed and trained by IMRB executives on each project.
To collect data for its research projects, the research office draws upon the support from its local
as well as 15 field offices spread across the country. The 15 field offices of IMRB International
have also empanelled agencies to enhance our presence in over 250 towns of the country. This
decentralized field infrastructure with multi-lingual field executive staff enables data collection
across the country.
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Need and Scope of Project
A thought of understanding the IT Environment & its life cycle.
To know the current marketing scenario in today’s world.
To determine various IT related uses and requirements.
To know the different scenarios and perception for IT products and its beneficiaries.
To find out & analyze the various ways of use of IT products in retail sector.
To find out how IT can generate better usefulness to retail outlet.
To find out how retailers can make a good buy worth for their business through IT.
To see how retailers rate IT and its involvement in their business workforce.
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Project Objectives
To study and check the usefulness of IT products (PC/Laptop) in outlet sector with
changing IT technology.
To study the availability and brand consciousness of IT products with changing IT
technology and its usage in retail sector.
To figure out retailers needs wants and preferences towards IT durables.
To find out which branded product satisfies retailers in their business use.
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About the Itops Project
The annual MAIT Industry Performance Review – ITOPs, conducted by India’s leading market
research firm IMRB International is a survey of the IT hardware sector’s efforts to manage the
business environment, gauge the market potential and consumer trends. This round of the study
involved face-to-face interviews with over 15,000 respondents selected randomly across 22 cities
in India. The MAIT-IMRB study was initiated in 1996-97 and encompasses five broad product
segments — computers, networking products, printers used in outlet sector. Apart from the
yearly review, a supply-side estimation module is used to monitor industry performance every
half-yearly, alternating with the annual review.
The MAIT-IMRB study involves data collection after the 'last mile' that the product travels, i.e.
from the premise where the product is finally installed. It is therefore an accurate estimate of
'what' was bought, 'by whom', and for 'what purpose'. Since the MAIT-IMRB study is based
entirely on data collected from 'users', it is able to accurately estimate the large unorganized
market as well as direct imports. It does not suffer from shortcomings of estimates based on
shipment or supply which in addition to under or over-counting, may also reflect biases in
perception of vendors and resellers.
With five consecutive years of ITOPS data, the study is now able to closely track emerging
segments such as retail outlets, small offices, home users, first time buyers, etc. By virtue of
tracking the installed base built over the years, and monitoring the
extent of up gradations/ replacements taking place in the market, the study has been able to
identify emerging business opportunities that promise to expand the market for IT products in
India.
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RETAIL INDUSTRY
What is retailing?
The word "Retail" originates from a French-Italian word. Retailer-someone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or services to final consumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplying them to customers on a relatively small scale. Retailer is a Person or Agent or Agency or Company or Organization who is instrumental in reaching the Goods or Merchandise or Services to the End User or Ultimate Consumer.Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoing an exponential growth, the road ahead is full of challenges.
The Indian retail segment accounts for 22 per cent of the country's gross domestic product (GDP)
and contributes about 8 per cent to the total employment. India continues to be among the most
attractive investment propositions for global retailers.
India has emerged as the fifth most favourable destination for international retailers, outpacing
the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail
Development Index (GRDI) 2012. "India remains a high potential market with accelerated retail
growth of 15-20 per cent expected over the next five years," highlighted the report.
Retail in Rural India
Rural chains in India are focussing on hinterlands in a big way. For many companies, a large
portion of their revenues comes from rural sales. The companies thus are aligning their
marketing strategies in accordance to the requirements of their customers in rural areas.
Turtle, one of India's leading men's lifestyle brands unveiled their limited edition collection of
Khadi menswear with the theme "Ecological Weave". This is an initiative which not only hopes
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to revive the khadi industry and the livelihood of its weavers and their families in rural India, but
is also poised to revolutionalise menswear fashion.
PRESENT INDIAN SCENARIO
* Unorganized market: Rs. 583,000 crores* Organized market: Rs.5, 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. 35,000 crores (US$ 7 Billion) or more by 2005-06
Major players
- Food and grocery- Fashion - Others- Food world- Shoppers' Stop- Vivek's- Subhiksha- Westside - Planet M- Nilgris - Lifestyle- Music World- Adani- Rajiv's- Pyramid - Crossword - Nirma-Radhey- Globus- Life spring
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Top Retail Formats in India
Traditional Format :
. Salesman
. Haats
. Mandies
. Company/Multi Brand store etc
Established Formats :
. Kirana stores
. Convenience/Departmental Store
. Pan/Beedi Shop
. Malls/Special Malls
. Company/Multi Brand Store
Emerging Format :
. Exclusive Retail Outlet
. Hypermarket
. International Retailer
. Malls/Special Malls
. Multiplexes
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Retail Technology and the Evolving Shopper
Technology has changed almost every aspect of our daily lives. From how we listen to music and where we keep our information, to how we watch movies and communicate with our peers, emerging technology is transforming our daily lives in ways that might have been impossible to imagine a few years ago.
Except for retail.It seems odd that retail shopping is amazingly similar to the experience our parents knew. Sure, the cash register is now computer driven and the credit card swipe generates an approval in seconds. And much of the back-room technology that drives inventory replenishment is highly automated. Shelf labels may be printed out on computer stickers today, but many retailers still hand write their end cap signs. The physical displays are still the same metal shelves. And even when digital monitors are hung in the store, they are often little more than noisy, flashing versions of the same signs on the shelf. Despite a few improvements, from the shopper’s point of view, the shopping process is remarkably unchanged from the 1970s.
Not so in the electronic shopping world. Amazingly powerful technology helps you make smarter, more informed decisions and gives you access to the world’s supply of retail options. Consider the Amazon shopping experience: smart software helps you quickly find what you are looking for and gives you a wealth of information about the item. You can see previous purchase reviews, detailed product information – even reviews of the shoppers who wrote the reviews! And Amazon’s ability to identify other items you might like often makes the shopping experience feel magical because it is so easy.
Sporting goods retailer Golfsmith has a sophisticated e-commerce site as well, with video reviews from store associates about new golf club designs and links to articles in golfing magazines. They even allow you to read previouspurchasers’ product reviews based on the reviewer’s skill level – learning how beginner golfers lowered their scores might be more valuable than scratch golfers’ conversations on subtle changes in grip improvements. Is that same experience available in store? Not really. Sure, a great associate can beat the Amazon experience, but often shoppers want to explore unassisted. Meanwhile, with retail labor turnover approaching a 100% a year, great customer service is often impossible to sustain.
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Need of Information Technology in Retailing
The critical information needs of the retail organization form the basis for critical success factors in the retail business. The following are some of the key information areas;• Product information – catalog, availability, new releases, promotion, supply and demand etc.
• Customer information – profile, behavior, activities, preferences, distribution etc.
• Operations information – logistics, allocation, procurement, schedule, inventory, shelf spaceA number of factors are responsible for the need of information technology in retail out of which four factors are more important than ever before. They are:
1. Intense Competition: Intense competition forces the organization to become more efficient and effective. As the industry matures lack of growth and excess capacity will often result in a share battle between the large companies. For example we are witnessing a market share battle in steel, automobile, chemical and food industry. One way to gain the competitive advantage is to use information technology at least in four ways. It reduces the operating costs through automation. It improves the product or service quality by providing quality assurance Information technologies provide a value added services which creates a differentiation. Information technology can be used for competitive intelligence.
2. Globalization of business operations: In all the businesses whether it is consumer or industrial, high tech or low tech, service or product there is at least some degree of global completion. Global operations require that both the time and distance barrier is to be eliminated or reduced. As the industry become more global in its procurement, manufacturing and marketing operations it requires a greater use of information technology to reduce the time and space barriers.
3. Organizational changes: With the organizational reorganization and increased mergers and acquisitions top management recognizes the need for flexibility through compatible information technology. Some of the aspects that creates the need for information technologyare: Cost efficiency through consolidation and automation.
Significant number of mergers and acquisitions.
Crises management and security of physical human resources has become a major issue in recent years
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As the major industries mature and competition intensifies they are reorganizing to become market driven.
4. Technology revolution: In a very short period of time we have seen the commercialization of information technologies. The performance and price ratio of new generation information technology is making them more affordable and useful to the organization (Sheth, 1994).There are three fundamental dimensions of information technology; Sharp experiences in information technologies resulting in an increased value in use.
Information technologies have been distributed over time with respect to processing, memory and intelligence.
Information technologies are highly integrated with the advent of end to end digital
technologies, it is possible to transmit, store, process and distribute different forms of
information on a single integrated technology.
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How Information Technology Involved In Retailing Operations?
Information technologies can be used by the organization in variety of innovative ways. They
have become tools to meet corporate objectives of effectiveness and efficiency. They can be used
as shown in the following figure.
Some of the areas are:
* Forecasting: Forecasting is the process of estimation in unknown situations. It's an essential
and very important process in any business organization. Business leaders and economists are
continually involved in the process of trying to forecast, or predict, the future of business in the
economy. Business leaders engage in this process because much of what happens in businesses
today depends on what is going to happen in the future.
Modern demand-forecasting systems provide new opportunities to improve retail
Performance. Although the art of the individual merchant may never be replaced, it can be
augmented by an efficient, objective and scientific approach to forecasting demand. Large-scale
systems are now capable of handling the mass of retail transaction data – organizing it, mining it
and projecting it into future customer behavior (Hussain, 2010). This new approach to demand
forecasting in retail will contribute to the accuracy of future plans, the satisfaction of future
customers and the overall efficiency and profitability of retail operations.
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Inventory Management: Inventory can be either raw materials, finished items already
available for sale, or goods in the process of being manufactured. Inventory is recorded as
an asset on a company's balance sheet.
To optimize the deployment of inventory, retailers need to manage the uncertainties, constraints,
and complexities across their global supply chain on continuous basis. This allows them to
improve their inventory forecasting ability and accurately set inventory targets. An IT solution is
a proven and market leading solution for determining optimal time-varying inventory targets for
every item, at every location throughout supply chain. This allows retailers you to significantly
reduce inventory without adversely affecting service levels.
Store Management: Another example where Information technology can be beneficial is
a store management system that alerts out-of-place or stock-out items. A store is
commonly a shopper stall for the retail sale of commodities, but also a place where
wholesale supplies are kept, exhibited, or sold. A place where something is deposited for
safekeeping is called store. An in-store system uses magnetic strips or barcodes or RFID
to monitor actual versus intended product location on the floor or in the stockroom (Negi,
2008).
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Applications of Information Technology in Retail
The Indian organized retail industry is the fastest growing in the world. To keep pace with the
rapid expansion, companies are forced to leverage technology to bring in operational efficiency.
With the government of India allowing 100% FDI in retail, major retail companies have started
entering the Indian market. The competition is getting tougher by the day and companies are
using technology as a differentiator. The following sections highlight the various operational
areas of retail industry and how information technology is used for competitive advantage.
IT in Supply Chain Management
Supply Chain may be defined as the series of companies that eventually make products and
services available to consumers, including all of the functions enabling the production, delivery,
and recycling of materials, components, end products and services. Supply Chain Management
may be defined as the systematic, strategic coordination of the traditional business functions and
the tactics across these business functions within a particular company and across business
within supply chain for the purpose of improving the long term performance of the individual
companies and the supply chain as a whole. SCM gives a value-enhancing and long-term benefit
for the organization. Firms with large inventories, many suppliers, complex product assemblies,
and highly valued customers have a lot to gain by good practices in SCM. The cost of inventories
was over $2.2 trillion in U.S in 2000. Transportation and inventory carrying cost in U.S totaled
$434 billion in 2000 (U.S Central Bureau’s Annual Survey of Manufacturers). The best way to
leverage the potential of SCM is by the efficient use of IT in this area. The importance of IT in
SCM has long been acknowledged but little work has been done in this area. But with growing
competition and greater emphasis to keep price as low as possible the companies are looking
towards strengthening their supply chain. IT can be used in SCM in various areas such as:
Purchasing Management
Demand Forecasting
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Performance Evaluation
Inventory Management
Implementation of JIT
ERP Systems
1. IT in Purchasing Management
Electronic data interchange was developed in 1970 to improve the purchasing process. The rapid
advent of internet technology in the 1990’s spurred the growth of non-proprietary and more
flexible internet based e-Procurement systems. Earlier critics argued that e-Commerce have been
over inflated and it results in larger expenses than its savings. Today though many well managed
e-commerce firms are beginning to thrive as users realize the benefits of their services. The
material user initiates the e-procurement process by entering a material request and other
relevant information. This is then submitted to the purchasing department. After verification of
this the buyer transfers this data to the e-procurement system and assigns qualified suppliers to
bid for it. Suppliers connected to this system receive the bid instantaneously. The purchasing
department maintains a list of preferred suppliers for each category of material. Thus the buyer is
able to submit the bid request to numerous suppliers within seconds. The traditional manual
purchasing system is a tedious and labor intensive task. The new e-procurement system is a time
saving system. It also results in a lot of cost saving as manual tasks are reduced. This system is
much more accurate than the manual system. It allows mobility to the system. Audit trails can be
maintained for all transactions in electronic form thus increasing the tractability. This system
results in overall better management. This also results in various benefits for buyers.
2. IT in Forecasting Demand
Forecasting provides an estimate of future demand and the basis for planning and sound business
decisions. The goal of a good forecasting technique is to minimize the gap between actual and
forecast demand. All the factors that influence demand, the impact of these factors and there time
frame must be considered in developing an accurate forecast. Also buyers and sellers should
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share all the relevant information about the forecasting so that a correct decision can be made.
Various forecasting techniques are as follows:
Jury of executive method
Delphi method
Sales force opinion
Consumer survey
Simple average forecasting
Moving average
Weighted moving average
Exponential smoothening
Regression analysis
Some of the forecasting software used are:
Forecast Pro Software: It is used by over 15,000 companies in 84 countries. The
software is easy to use and has a built in expert selection system that analyzes the data, selects
the appropriate technique for forecasting, builds the model and calculates the forecast.
Smart Software: This software is used by companies such as HP, Mead Corporations
etc. This is designed to run on Windows 95, 98, 2000, XP.
3. IT in Performance Measurement
It is said that “You can’t improve what you can’t measure”. Performance measurement is the use
of statistical evidence to determine progress toward specific defined organizational objectives.
The daunting task of measuring performance for organizations across industries and eras,
declaring the top performers, and finding the common drivers of their success did not occur to
anyone until around 1982, when Tom Peters and Bob Waterman got down to work researching
and writing In Search of Excellence. This publishing sensation challenged industrial managers’
actions and attitudes, and inspired researchers and scholars to further pursue the theory of high
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performance. This task becomes more complex as corporations diversify into multiple industries.
A researcher must take this into consideration when conducting a comparative analysis of
companies.
Performance Measurement Guidelines in SCM:
Total SCM cost
Supply Chain production flexibility
Supply chain delivery performance
Supply chain e-business performance
Supply chain perfect order fulfillment
The evaluation of performance of the suppliers, material etc. requires a lot of data and
continuous evaluation is required. Due to large volume of information available it has become
almost impossible to do this evaluation process manually and thus the role of IT in this area has
been increasing. One of the most recognized methods for integrating supply chain and measuring
their member’s performance is the Supply Chain Operations Reference (SCOR). This model
is used as a supply chain management diagnosis, benchmarking and process improvement tool
by manufacturing and service firms in a variety of industries across the globe. This follows
weighted approach to the areas that need more competencies.
4. IT in Inventory Management
In traditional supply chain inventory management, orders are the only information firms
exchange, but information technology now allows firms to share demand and inventory data
quickly and inexpensively. The inventory management directly influence how effectively the
organization deploys its assets and capacity in producing its goods and services. The problem of
inventory is compounded in an integrated supply chain, where a missed due date or stock out
cascades downstream, affecting the entire supply chain. In this area IT is used in The Chase
Production System in which the capacity is adjusted in the demand pattern. It is also used in
Master Production Scheduling, listing the exact end items to be produced in a specific period. IT
is also used in Material Requirement Planning and Manufacturing Resource Planning.
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Case in Focus
International Truck and Engine Corporation is a fortune 500 manufacturer of make-to-order
trucks and buses. It has a huge network of dealers in more than 50 countries. The company has
annual sales of about $6.7 billion in 2001 and sold about half a million trucks in 2001. Its main
feature is the make-to-order trucks according to customer specifications.
This helps in reducing the inventory and provides a opportunity to charge a price premium for its
trucks. But to manage this information is a complex task. It required a system that could handle
more than 173,000 models and feature combination. The new system needed to handle all
aspects of product change effectively and efficiently, including the ability to interface and
communicate with existing systems. The company opted for TrigentConfigration Solution as is
manufacturer. This system had information imbedded in it. This information was used to process
truck orders. Dealers and company is also connected. The results were an increase in the revenue
by 150% and increase in profits by 120%. Also the BOM records were reduced from 7.2 million
to 250,000. The system enabled International to differentiate its products and compete effectively
in a market plagued by an oversupply of used trucks.
5. IT in Just In Time
Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of
a business by reducing in-process inventory and its associated carrying costs. When implemented
correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on
investment, quality, and efficiency. Implementing lean/JIT practices significantly reduces lead
time. Lean/JIT practices mediate the influence of IT integration on lead-time performance.
Process improvements that result from lean/JIT practices are important contributors to the
success of IT integration. Even companies that have experienced success in reducing lead time
through lean/JIT practices may benefit from IT integration practices such as those embodied in
enterprise resource planning systems. Two general approaches have been taken to reduce lead
times in manufacturing: information technology (IT) integration within and between firms in the
supply chain and process improvements that, as a group, are often referred to as lean/just-in-time
(JIT) manufacturing practices. IT integration refers to information systems that electronically
transmit information within firms and between firms. Although these IT integration and lean/JIT
initiatives are complementary in concept, in practice they are often considered to be competing.
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The sense of competition stems from two major sources. First, the source of organizational
expertise required is quite different for each approach, IT professionals in the case of IT
integration versus manufacturing management and manufacturing engineering for the lean/JIT
approach. Second, the financial resources and top management attention required by each of
these approaches often obviate initiating both IT integration and lean/JIT in a large scale at the
same time.
Case in Focus
The example is about one of the most well-known companies of the world, Dell Computer
Corporation. Product goes in and out of Dell so fast that there is barely any time to see whether it
is in the warehouse or manufacturing. Dell refers to this as a combination of just in time process
and e-commerce and the main reason for its success. Dell started in 1984 as a build-to-order
organization based on telephone call orders and the inventory was always low but never close to
today’s levels. Material arrives at Dell two hours prior to assembly. The internet can be used to
compress time and that’s what Dell has changed itself into. With the use of internet they can get
a better pulse on their customers needs at any given time and also feed the data to the suppliers.
The suppliers have also been brought close to each other by the use of internet and help in the
implementation of JIT.
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Some of the Information technology tools that retailers are using are:
1. Radio frequency identification (RFID) is one of such technologies which can dramatically
increase the organizations capability to acquire data about entities properties and location. RFID
technology can provide much useful information about products: Product identification number,
price and cost, manufacturing date, location, inventory on hand and so on. RFID technology can
increase speed, accuracy and visibility of operational information exchange which in turn leads
to shorter cycle times, lower labour costs and improved customer service . Radio frequency
identification technology is “a technology that uses radio frequency waves to transfer data
between a reader and a movable item for the purpose of identifying , categorizing tracking and
monitoring products”. A typical RFID system is comprised of tags, readers and software. Tags
are the key component and are placed on the entity which is identified as data carrier; readers can
read/write data on tags and transmit the data between readers and tags; and software integrates an
RFID system which usually includes a front end which manages the readers and tags and a
middleware which routes this information to servers in order to run the back – end database
applications.
There are three main benefits from RFID application in retail supply chain. First, identifying and
tracking product information from RFID system can enable firms to integrate inventory
timeliness; for example a study reports that RFID can make a savings of 16% in out of stock.
Secondly RFID technology can greatly reduce or avoid shrinkage, which is the financial losses
attributable to a combination of employee theft, shoplifting administrative error and vendor
fraud. Thirdly RFID technology can help companies improve supply chain planning in three
ways: enhanced information visibility, increased information accuracy and privacy and security
issues. The three major concerns are first its relative high cost. Second the lack of globally
accepted standards and third complexity of RFID implementation.
2. Point of Sale technology: This can be defined as a computerized system used to capture time
and place of sale. It provides up to date information on sales of different brands, size, colour,
styles, prices, etc. Under point of sale technologies, specialized terminals or desktops are
combined with bar coding readers, magnetic stripe readers and cash registers for accurately and
27
instantly capturing the sale transaction. Retailers investing in these systems can benefit by
reducing their inventory investment by 15 to 30 %.
3. Electronic data Interchange: EDI is the exchange of business information through standard
interfaces, by the use of computers. In simplers terms, EDI is defined as the exchange of
electronic documents between organizations. It allows retailers to place instantaneous, paperless
purchase orders with suppliers. EDI is not only efficient but also reduces the time needed to
supply products to customers, by ensuring quick and accurate transactions. By using this
technique human intervention can be minimized and employees can focus on key business areas.
4. Barcode and Scanners: Bar code readers are photoelectric scanners that read the bar codes or
vertical zebra striped marks, printed on product containers. Barcode scanner reads the bar codes
quickly, speed up the checkout and makes the pleasant cashier to transfer the positive energy to
customers. Retailers now a days are increasingly using bar code system called the Universal
Product code (UPC).
5. Business to Business (B2B) collaboration: B2B is pre-agreed technological information
sharing mechanism and co-planning process. Business to business collaboration is electronic
marketplaces on the internet where supplier and buyers interact to conduct transactions. B2B
solutions are usually implemented through packages (SOA, C-ME and customized solution).
UccNet is an emerging B2B data communication standard for the retail industry with a
significant potential impact.
6. The Database Management, Data Warehousing and Data Mining: A single transaction at a
retail outlet releases a handful of information. The use of systems to organize, retrieve, search
and manage that data is referred as database management. A data warehouse is a collection of
computer based information that is crucial to the successful execution of enterprise initiatives.
The concept of data warehouse implies that the data stored for business analytics can most
effectively be assessed by separating it from the data in the operational systems. A data
warehouse is used for upgrading a retailer with important information regarding sales like colour,
28
size, and quantity of product. Data mining helps the retailers in extracting information from
database about the existence of which the user was not aware. It discovers a relationship between
customer behavior and variables that seems to be non – intuitive.
7. Cloud computing: Cloud computing is an IT delivery paradigm where compute capacity is
made available to users in an on – demand fashion through a shared physical infrastructure. The
expectation is that sharing hardware, software, network resources and management personnel
would reduce per unit compute cost for enterprises.
8. Collaborative, Planning, forecasting and Replenishment: Collaborative Planning,
Forecasting and Replenishment (CPFR) is a concept that aims to enhance supply chain
integration by supporting and assisting joint practices. CPFR seeks cooperative management of
inventory through joint visibility and replenishment of products throughout the supply chain.
Information shared between suppliers and retailers aids in planning and satisfying customer
demands through a supportive system of shared information. This allows for continuous
updating of inventory and upcoming requirements, making the end-to-end supply chain process
more efficient. Efficiency is created through the decrease expenditures for merchandising,
inventory, logistics, and transportation across all trading partners.
9. Electronic Cash Register: The Electronic Cash Register (ECR) keeps track of sales
transactions quickly and effectively. An abundance of PLUs (Price Look Ups) and department
keys accommodate a variety of merchandise items. This means a faster, more accurate check out
process and the ability to manage a wider variety of goods and services more efficiently. And
with features like fast, attractive receipt print outs and an easy-to-view LCD operator display, the
ECR makes managing the business a pleasure.
10. Loyalty Membership cards: Creative personalized customer loyalty cards enable retailers,
casinos and many others to provide customer loyalty reward points, discounts and perks.
Customer loyalty card programs also create opportunities to track customer data and use it to
build strong, lasting relationships.
29
11. Two Way Radios like the Kenwood TK3201: Members of staff communicate over a wide
area, check stock levels and stay in touch across the entire site. Not only does 2 Way Radio allow
members of staff to communicate over a wide area but they can be used as a health and safety
tool so workers can report accidents, check stock levels and stay in touch across the entire site
from the shop floor to the distribution area. Imagine a customer asking a member of staff if a
particular item was in stock. Gone can be the days of the staff member disappearing from what
seems like ever to find out. Instead a simple call using the Two Way Radio to someone in charge
of the stock levels and the customer is told in seconds if the item is available. Modern Two Way
Radios like the Kenwood TK3201 and Motorola XTN446 Radio are a perfect way for modern
retailers to differentiate themselves from their competitors whilst making all our shopping
experiences better.
12. Quick Response codes (QR): The Quick Response codes are the bar codes on the products
which could be downloaded by the customer from the internet or could be picked up from the
previously bought products on the smart phones or tablets. A list of all items to be purchased can
then be mailed to the retail outlet. The retail outlet can pack your material and either deliver the
same at your residence at a price or keep it at the outlet and the customer could pick it up based
on his convenience.
13. Customer Relationship management, Online Analytical Processing Collaborative
planning forecasting and replenishment: The emphasis of retailers are now in utilizing IT
solutions like CRM, OLAP, CPFR tools to carry out the behavioral analysis to stay in the
competitive market. Retail ERP packages have been implemented by large retailers but today
they are experiencing
difficulty in utilizing it fully, one of the key reasons could be the lack of adequate training. But it
is expected that the demand and utilization of these packages will grow in the near future. It is
estimated that about 400 to 500 mega bytes of data are transmitted daily between point-of sales
counters and corporate headquarters of retail chains in developed countries. Relay of transaction
data in such volumes helps to maintain a close working relationship between retailers and
vendors to predict consumer demand, shorten lead times, reduce inventory holding and thereby
30
save cost. Retailing database also helps in tracking purchase behavior through demographic and
psychographic information. This clearly is an indication of technology serving as an effective
means to build the retail business and not just restricted to supporting and improving the
operational efficiency.
14. ERP like Retail Pro, higher-end solutions like JDA, SAP IS Retail or Retek: Facilitate
complete integration of all the operations of the retail business and are a must in a scenario
where retailers have thousands of products, hundreds of suppliers, multiple locations, etc.
15. Customer Service Kiosks and Intelligent Vending Machines: Latest information about
products, their availability, price verification can be done at the customer service kiosks. If the
product is not currently available a process, whereby the missing goods are ordered and directly
shipped to the customer can be initiated. A ‘Get help’ button, can be used where by a customer
can click on this button and the store manager on the floor can walk down to the customer to
resolve his query or could inform the customer how much time he would take to come down to
the kiosk.
16. Voice ready Multi-Modal Wearable Computer Operatives can work completely hands and
eyes free by receiving picking commands from the WMS via a plug-in headset. Popular
application software and devices are available today that give a store associate access to store
inventory, point of sale, voice communication, instant messaging, and even external data such as
inventory at other stores in the region. Voice communication can be “broadcast”, where all
employees hear the same thing, or “unicast” where a conversation happens between two
employees. Group communication, or “multicast”, is also available which can be used to let
groups of managers communicate only amongst each other.
17. Mobile payment: Order through M-commerce or telephone and pay through mobile. This is
a very convenient way of making payment. The customer can order the material through his
smart phones using the Quick response codes. Ask the retailer to deliver the goods at his
residence and make payment through mobile saving huge amount of time.
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18. Global Data Synchronization Network (GDSN) Master Data across all business partners
remains the same. If any business partner makes a change in the master data especially product
master, a simultaneous change will be initiated in the database of all the other parties interested
that is the suppliers, company and the customers. And therefore all the parties in the value chain
maintain the same master data avoiding confusion and errors.
19. Video Conferencing: Video conferencing solutions within and between retail branch
locations can facilitate inventory checks, remote support, remote team meetings, last minute
specials, new incentive programs, faster access to sales reports, employee information and
remote expertise
20. Mobile point of sale: Fully mobile point-of-sale stations can be set up using handheld
computers, scanners, and printers with integrated credit card readers. This would be a great help
in reducing the queue at the retail outlets especially during peak hours. The store personnel could
use mobile point of sale equipments and complete the customer transaction at a great speed
avoiding dissatisfaction.
21. E-Commerce and F-Commerce: Use of electronic communication like e-marketing could
well be a cost-effective form of attracting and retaining customers. With internet penetration and
awareness on the rise in the country, e-marketing does prove to be a good communication tool.
Use of technology could further be extended to home shopping, direct mails and telemarketing. It
can also facilitate growth in newer applications like kiosks, intelligent vending machines, PC net
shops, etc. F-commerce is face book commerce. Retailers are sending posts to the respective face
book accounts based on the interest level of the customer thereby individualize the information
sent.
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Contribution of India’s IT industry to Economic progress
The contribution of India's IT industry to economic progress has been quite significant. The
rapidly expanding socio-economic infrastructure has proved to be of great use in supporting the
growth of Indian information technology industry.
The flourishing Indian economy has helped the IT sector to maintain its competitiveness in the
global market. The IT and IT enabled services industry in India has recorded a growth rate of
22.4% in the last fiscal year. The total revenue from this sector was valued at 2.46 trillion Indian
rupees in the fiscal year 2007. Out of this figure, the domestic IT market in India accounted for
900 billion rupees. So, the IT sector in India has played a major role in drawing foreign funds
into the domestic market.
The growth and prosperity of India's IT industry depends on some crucial factors. These factors
are as follows:
• India is home to a large number of IT professionals, who have the necessary skill and expertise
to meet the demands and expectations of the global IT industry.
• The cost of skilled Indian workforce is reasonably low compared to the developed nations.
This makes the Indian IT services highly cost efficient and this is also the reason as to why the
IT enabled services like business process outsourcing and knowledge process outsourcing have
expanded significantly in the Indian job market.
• India has a huge pool of English-speaking IT professionals. This is why the English-speaking
countries like the US and the UK depend on the Indian IT industry for outsourcing their business
processes.
The emergence of Indian information technology sector has brought about sea changes in the
Indian job market. The IT sector of India offers a host of opportunities of employment. With IT
biggies like Infosys, Cognizant, Wipro, Tata Consultancy Services, Accenture and several other
IT firms operating in some of the major Indian cities, there is no dearth of job opportunities for
the Indian software professionals. The IT enabled sector of India absorbs a large number of
33
graduates from general stream in the BPO and KPO firms. All these have solved the
unemployment problem of India to a great extent. The average purchasing power of the common
people of India has improved substantially. The consumption spending has recorded an all-time
high. The aggregate demand has increased as a result. All these have improved the gross
production of goods and services been instrumental in facilitating the economic progress of
India.
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Advantages of conventional and modern organized retail formats
Conventional
large bargaining power overheads
proximity to consumers
long operation-hours strong relations with customers convenience and hygiene.
Modern organized
Low operating cost and overheads Range and variety of goods long operating-hours assurance (brand related durability)
35
Literature Review
a) Topic-ORGANIZED RETAILING IN INDIA – CHALLENGES AND
OPPORTUNITIES
Learnings-
Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal
shift of the Indian consumer and the emergence of organized retail formats have transformed the
face of Retailing in India. With the sign of reemergence of economic growth in India, consumer
buying in retail sector is being projected as a key opportunity area. As a consequence, Indian
corporate houses are refocusing its strategic perspective in retail marketing with the idea to use
resources optimally in order to create core competence and gain competitive advantage. The
paper theme is to analyse finer strategic perspective for the retail sector in India and suggest
measures so that the corporate strategists could incorporate the same both qualitatively and
quantitatively. Based upon the qualitative judgment, a retail unit may be given an overall
understanding about the expected performance that can further be corroborated by quantitative
analysis. Retail trade has emerged as one of the largest industry contributing to employment
generation, revenue generation, increased turn over and many more. Organized retailing is
showing signs of enormous creativity. It. has emerged as one of the most dynamic and fast paced
industries with several players entering the market. As a matter of fact retailing in India is
gradually edge its way towards becoming the next boom industry. This paper provides detailed
information about the growth of retailing industry in India. It examines the growing awareness
and brand consciousness among people across different socio-economic classes in India and how
the urban and semi-urban retail markets are witnessing significant growth . The paper includes
growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format
in India, recent trends, and opportunities and challenges. This paper concludes with the likely
impact of the entry of global players into the Indian retailing industry. It also highlights the
challenges faced by the industry in near future
36
b) Topic- CUSTOMERS’ OPINION ON SMALL SCALE RETAIL STORES
Date and volume- May 2013
Learning’s- The Indian retail sector is dominated by small scale retailers. The organized sector
occupies only 5 percent share in the total retail sector. The presence of millions of small scale
retailers in different product categories makes one realize that a large number of people depend
upon this activity. In the light of severe competition from the fast growingand more challenging
big retailers in the fast changing scenario, the survival and growth of small scale retailers
depends upon their ability to provide customer satisfaction. Customer loyalty and support are the
pillars of success for these retailers. The present study aims to examine the opinion of customers
on small scale establishments. The customers’ opinion on facilities, ambience factors,
communication, sales promotion techniques, and service performance of small-scale retailers are
ascertained and analyzed in this paper.
The findings of the study indicate the fact that small scale retailers are the key players in the
Indian retail sector and continue to offer services to the satisfaction of customers. The boom in
organized retailing did not affect the consumer opinion and perceptions against small scale
retailers. The small scale retailer is the preferred choice of customers in all the product
categories. The customers expressed their satisfaction on these retailers’ services. The findings of
the study do not lead to the conclusion that the small scale retailers can ignore the competition
from big retailers. On the other hand, it cautions the threat and makes them realize the
opportunities to build loyal customer base by continuously improving their marketing offers and
interactions. The small scale retailers will have bright future in India provided they upgrade the
quality of services continuously.
37
c) Topic- ORGANIZED RETAIL SECTOR: FUTURE, CHALLENGES AND
OPPORTUNITIES IN INDIA
Date and volume- Volume 4 Issue 1 January 2013
Learning’s-
Retailing provides a crucial link between producers and consumers in
modern market economy. Retail in India is most dynamic industry and represents a huge
opportunity both for domestic and international retailers. Modern retailing is not threat to
independent Mom and Pop stores as most of the consumers said that they never stopped visiting
Kirana stores. They strongly agreed on coexistence of both is requirement of the day. Their
frequency of going to kirana stores is reduced but it’s kind of opportunities for reorienting Mom
and Pop stores for attracting more customers. So, organized retailing is beneficial for India
because it’s not alarming to create conflict with unorganized stores but reshaping unorganized
stores into budding/nascent organised stores. Modern retailing has miles to go in India. The
growth of modern formats has been much slower in India as compared to other countries and the
development of this sector is restricted by the presence
of regulatory and structural constraints.
38
d) Topic - Technology Advances in Retail: Improving Margins using Wireless
Networks
Learning’s-
The retail industry is one that lives and dies on margins, with managers on a never-ending quest
to increase revenue and decrease costs. Technology has been an area of intense focus in retail
industries as a way to accomplish both goals. Improvements have been made in areas such as
supply chain management, inventory management, customer experience, and loss prevention.
Wireless technology, permitting communication between people and devices anywhere and
without cables, has enabled the dramatic transformation of business processes in the past, and
continues to do so. However, wireless deployments in the past have been limited by security
requirements, the cost of deployment, inadequate management solutions, lack of standards, and
availability of innovative solutions. Rapid advances in wireless local area network (WLAN)
technology in recent years along with widespread adoption of the technology in the consumer
and enterprise space have eliminated many of these
roadblocks. Today, a new wave of opportunity exists for retail industries to improve margins
through the use of wireless technology. This white paper discusses the applications for this
technology, the security requirements in retail environment, and considerations when selecting
the right architecture for mobile network deployments. There is no magic technology that by
itself can boost margins, fix operating problems, and guarantee customer loyalty. Only people
can do these things, along with a well-executed operational plan – but technology can help.
Successful companies today must build technology into their businesses. Wireless technology
has a number of innovative uses in retail, as described in this paper, that can improve operational
processes, improve the customer buying experience, give better visibility for management into
store operations, and ultimately improve the bottom line.
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e) Topic -RETAIL TECHNOLOGY AND THE EVOLVING SHOPPER
Learning’s-
New, powerful shopping technology will transform the retail landscape. And it will happen fast.
The convergence of low power usage screens, high battery capacity, 4G mobile speeds, touch-
screen/intuitive interfaces and behavior analytics are conspiring to generate unprecedented,
transformative power for shoppers. And with increasingly lower-cost electronics combined with
increasingly tech-savvy shoppers, adoption rates at scale in retail are inevitable.
Brands will try to harness this to connect directly with shoppers. Retailers will try to ensure retail
loyalty and increase conversion. While both are valid strategies, both will be essentially
misguided.
Shoppers will use high tech where it helps them become smarter, faster, and more informed. If
brands and retailers focus on serving shopper needs with new technologies, they will win.
Shoppers will also win, and winning with shoppers means driving sales.
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Outcome of the Study from Customer Survey
The survey was conducted by me in Mumbai, Navi Mumbai and Western suburb side. Since it
was a new project and exploratory study for me so no hypothesis was formulated. But the
summary of this project gives brief idea about the survey done in various areas of Mumbai, navi
Mumbai and western suburb side.
The survey states the following categories of questionnaire in 2 ways i.e. PC section (outlets
having IT product) and NON PC section (outlets not having IT products). Further in pc section it
states about the IT products available in retail establishment in various ways in questionnaire
such as i.e. qualifying section, peripheral section, operating section, networking products and
amount of investment on IT in that establishment.
Yes80%
No20%
IT Products
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1. In qualifying section there are various questions, regarding the particular establishment
i.e. primary role of the particular respondent in particular establishment. i.e. formulation
of It plans, evaluating IT requirement, developing technical specification, approving IT
purchase and final purchase authority. So in this 50% of respondent had option as
evaluating the IT requirement, 25 percent of respondent had option i.e. ‘formulation of IT
plans’, sometimes 20 percent of people respondents ‘approves IT purchases’ and rest all
are stuck between 5% to 25% in ‘final purchase authority’ and ‘formulation of IT plans’
25%
50%
20%
5%
Role of respondent to IT product
formulation of IT plans
Evaluating the IT plans
Approving the IT purchase and final purchase authority
Final purchase authority
42
2. In another question which states about nature of work that is mainly carried out in that
premise particularly. I.e. shop, restaurant, dealer, shop and warehouse etc. so most of the
survey we had in hotels and shops i.e. shoes shop, medical, clothes shop, specks etc.
57%
21%
14%
7%
Major Activity
Outlets Service
Manufacturing Other
43
3. Another question which states the total number of employees in the outlet establishment
i.e. 1, 2-5, 6-10, 11-25, 26-50. So retailers can be as large and medium size retailers. So
depending upon this most of the retailers have an employee size of 6-10 in automobile spare
parts shop and in hotel it was 11-25 employees working as staffs and waiters and one manager.
Some times in kiranaawala shop there might me a range of 2-5 employee data. So we can say
almost 75 percent of retail sectors have an employee size of 6-10 and 20 percent belong to 2-5
employee size.
2%6%
61%
12%
18%
Employees percentage in retail outlet
1
2-5 employees
6-10 employees
11-25 employees
26-50 employees
4. The study also states the following products installed/used in the particular establishment.
I.e. desktop computer, thin client- workstation, netbook/mini laptop, notebook/laptops, all-in-
44
one desktop, tablet computer, servers. So it was observed that retail sector are still using old
technology desktop computer in retail outlets. 75 percent of outlet sector are using desktop
computer and 20 percent of outlets are using laptops in their establishment and 5 to 10 percent
are using netbook/mini laptops. But still the technology of thin client workstation and tablet pc
and all in one desktop is not seen in retail outlets which would be still a upcoming technology
which would be seen slowly in future.
70%
20%
10%
Products Percentage
Dekstop
Laptop
Netbook/mini Laptop
5. The study also stated the printers installed/used in the particular establishment. i.e.
DMP(dot matrix printer), multi-functional inkjet printer-(MFD IJP), single-functional laser jet
45
printer (MFD LJP), multi-functional laser jet printer (MFD LJP), single function laser jet, line
printer , scanner, UPS. So it was observed that 60 percent of retail outlets use single function
laser jet which was mostly observed in larger number as the single function laser jet are used
for printing bills purpose, brochures etc. and multi-functional laser jet was found to be around
20% in retail outlets. Dot matrix and line printer is mostly seen in banking sector and printing
bills.
2%
22%
67%
2%6%
Printer installed in establishments
Dot matrix printer
multi-functional laserjet
single funtion laser jet
Line printer
Ups
6. The study also illustrated the brands of desktop and laptop computer installed in the
establishment and its totals installed in particular establishment. i.e. Acer, Asus, dell, HCL,
Hewlett Packard, Lenovo, Samsung, Sony, ThinkPad, Wipro, zenith, assembled products and
46
their brands.so it was observed 50 percent of retail outlets used assembled computer, 8% used
Samsung and 17 % used Hewlett Packard and 25% used other IT brand products.
8%
17%
50%
25%
Brands of computer
Samsung
Hewlett Packard
Assembled
Others
7. Next questions say about the various business activities that an establishment uses the IT
products.
I.e. Finance and Accounting department, marketing and sales, human resource and
administration, technical operation, logistics procurement. And all these activities is break up
47
in percentage which all together total should add up to 100%. So 60% of retail outlets
perform finance and accounting department,25% perform marketing and sales work, 10%
perform human resource and administration and 5% perform logistics and procurement.
60%
25%
10%
5%
Business activities in retail sector
Finance and Accounting Department
Marketing and Sales
Human Resource and Administration
Logistics and Procurement
8. Next questions show the latest processors used in the computers and laptops used in the
current establishments. It was found 60% used Pentium 4, 20% used core 2 duo, 10
percent used core i3, 3% AMD Athlon, 2% atom etc.
48
60%
2%
20%
2%
10%
3% 3%
Processor installed
Pentium IV
Atom
Core2Duo
Core2Quad
Core i3
Core i5
Core i7
AMD Athlon
49
9. The next questions states the respective brands of printers installed in the retail outlets. It
was observed that that 6o% retail outlets use Epson printers, 15% use canon printers in
their outlets because their cartridges are less costly and easy to installed.
10%
60%
20%
5%5%
Brands of printer
Canon
Epson
HP (Hewlett Packard)
Samsung
Panosonic
Don’t know
10. The next question suggest about the various sources you will use to gather more
information on IT. i.e. newspaper, magazines, websites, advertisements, friends , others.
50
So it was observed retailers mostly preferred newspaper and friends as a source of
information about IT products.
33%
17%
8%
13%
25%
4%
Source of Information
Newspapers
Magazines
Websites
Advertisements
Friends
Other
11. Next question tells about kind of customers you have for your retail outlet. Target
consumer for these retailers belong to the same city (area) where the enterprise is
situated. Only few retailers have their customers abroad.
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63%
19%
13%
6%
Customers for the establishment
From Same city
From Same State
Other
All over India
12. Next question suggest about rating IT for retail business activity. For retailers, IT
products provide Security as well as work proceeds are also accomplished in efficient
manner.
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43%
29%
19%
10%
IT to Business
Security
Efficiency in work
Network Enhancement
Other
Learning from the project
Many retailers often manage most of their operation on It technology. .
Desktop Pc- an IT product is popular and preferred more among others.
For Retailers, IT products are bought with an intention of Final purchase only.
Most IT products are assembled rather than associated with one single company.
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Still the small percentage of retail sectors is unaware about the IT products and its
usefulness.
Sales and marketing are prime one. Provided support from other activities.
The office staff ranges till min 15 in nos. However certain shops showed high in nos.
Owner has main access to the IT products. Elsewhere, situation changes in lower nos.
Newspapers and acquaintances are more trusted to obtain any information on IT by the
retailers.
Major part of the retailers was Outlet Owners.
Target consumer for these retailers belongs to the same city (area) where the enterprise is
situated.
IT products provide Security as well as work proceeds are also accomplished in efficient
manner.
Conclusion
The introduction of information technology in the retail sector has not only helped the industries flourish at a fascinating rate but has also helped people reach the global market easily and has established the name of Indian Markets in the international market. With coming up of online retail stores like Flip kart, EBay, Home Shop 18, Snap deal India has shown that India is in no way behind other countries in any aspect. Recently we saw the rise of Indian companies in the field of Information Technology who have invented new technologies that are helping the retail sector. WIPRO along with other companies has setup many Point of Sales across the country.
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Retail industry is now greatly influenced by technological advancements. Recent studies have shown that retailers are more interested in investing in the online sector as it is very fruitful in the long run, cost effective and reach to a large number of customers at a time. Information technology may capture the whole market but that doesn’t mean that the physical markets will vanish or deteriorate. They have existed since many years and will continue to exist. It can be said that Retail Industry has been blessed with IT in its business activities generating High returns, wider market reach, consumer preferences and likewise.
Though IT has on steady verge of being used in Retail industry, it still ranks itself on limited approach style.
It is seen that, Retailers (small-scale) are not too keen on use of IT thereby reducing scope of development through IT for their business activities.
But yes, those retailers who quickly grabbed the opportunity of IT and its use in their business have shown steady rise both in profit margin and market leading in terms of popularity, quality, and service in the minds of the consumers.
Bibliography/ References
Media Reports, Department of Industrial Policy and Promotion (DIPP), Market Research, PricewaterhouseCoopers (PwC).
http://retailindustry.about.com/
IT innovations in Indian Retail - www.expresscomputeronline.com
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RFID Technology - www.microsoft.com/industry/retail/businessvalue/rfidoverview.mspx
http:// www.imrbint.com
www.interbrand.com/.../BestRetailBrands/2013/articlesinterviews/articlesi
www.indiaretailing.com
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