TCS AIP Take Home Assignment

TCS AIP take home assignment
Name: SHRUTHI. S
Registration No: 12BTC24063
Name of the College: SESHADRIPURAM DEGREE COLLEGE
Objective
Take home assignment is an integral part of AIP program which gives unique opportunity
to students to explore the industry. This assignment aims at reviewing students
understanding, creativity and individual thought process.
Assignment
Its commonly believed that e-retailing is taking over the retail industry by storm. Build a
case study of maximum 15 pages on the below topic
Traditional retailing versus e-retailing.which do you think is

the future of Retailing Industry and Why?
Your assignment should be divided into 3 sections. Some hint questions are provided
below but we strongly encourage you to add your thought process and not just answer
the hit questions.
Overview
Overview of the retail industry as a whole
How big is e-retail versus traditional retail?
Findings
Attributes and Characteristics of traditional retail and e-retail and their pros and
cons
Take a survey with sample size if 40-50 people. Keeping segmentation in mind,
ensure your group is not of people falling into same characteristics. Use
population of students, parents, teachers, family friends and relatives to find out
customer preference with reasons. Develop a questionnaire and same should be
attached in the document
Conclusion
Your findings and conclusions
Opportunity calculations (findings project to total population) and
recommendation if any
Few points to note
The first page is the cover page of the assignment and should remain as is
This is an individual assignment and not group
Use internet as a reference but data should not be copied
If you are using internet for facts and figures ensure you mention source (website
address) from where you are taking the data
Individual though process, structuring your findings and story has added
weightage
Ensure correctness of data and formatting
You can use social media for survey within your college but do not mention that
this project is for TCS
Evaluation Criteria
Content
Information
Value
Explanatory
Power
Clear &
Precise
Relevance &coverage of the topic, self-explanatory. All key elements of the paper
requirements must relate to Subject
Flow/Sequence, use of industry terminology (eg. sample response)
Illustrative, Instructive and Descriptive. Visual representation gets more weightage
Not subject to multiple interpretations, not ambiguous

NonDiscretionary
Fair and reasonable (Unbiased views). Survey data and usage of data representation must
Note
Quality, Original thinking would be much appreciated and will carry better weightage
What is retailing?
Retailing is one area of the broader term, e-commerce. Retailing is buying
and selling both goods and consumer services. With more number of
educated and literate consumers entering the economy and market, the
need for reading the pulse of the consumers has become very essential.
Retail marketing is undergoing radical restructuring. This is because of
increase in gross domestic product, increase in per capita income, increase
in purchasing power and also the ever changing tastes and preferences of
the people. The entry of plastic money, ATMs, credit cards and debit cards
and all other consumer finances, the taste for the branded goods also added
for the evolution of retail marketing.
Retail marketing is not just buying and selling but also rendering all other
personalized consumer services. With the RM picking up it has given a new
look for various fast moving capital goods (FMCG) goods. This not only
increased the demand for various goods in the market but also made retail
marketing the second largest employment area, the first being agriculture.
Definition and Scope of Retailing:

Retail Industry, one of the fastest changing and vibrant industries in the
world, has contributed to the economic growth of many countries. The term
'retail' is derived from the French word retailer which means 'to cut a piece
off or to break bulk'. In simple terms, it implies a first-hand transaction with
the customer.
Retailing can be defined as the buying and selling of goods and services. It
can also be defined as the timely delivery of goods and services demanded
by consumers at prices that are competitive and affordable.
Retailing involves a direct interface with the customer and the coordination
of business activities from end to end- right from the concept or design stage

of a product or offering, to its delivery and post-delivery service to the
customer. The industry has contributed to the economic growth of many
countries and is undoubtedly one of the fastest changing and dynamic
industries in the world today.
Stages of retailing:
Traditional- melas, Fairs, weekly Bazaars, Rural fairs.
Indigenous- mom and pop, kirana stores Neighbour stores.
Contemporary- Khadi outlets, co-operative stores
Modern Retailing- shopping malls, Bazaars, Super Bazaars, Special bazaars.
An over view of retail formats:

Types of retail formats
Examples
Convenience stores
Twenty four seven, Bharthi easy day
Department stores
Big bazaar, Marks & spencer
Hyper Markets
Carrefour, Star bazaar
Malls
Orion, Forum
Speciality stores
Michaels, Nike
Large super Markets
Shop rite, Kroger
Small super Markets
Nilgiris, Daily fresh
Discount stores
Wal-mart, K-Mart
E-tailers
Amazon, Flipkart
History of Retail Management:

Retail marketing started from Mediterranean regions and spread to Egypt
and Babylonia. For over 2000 years Retail marketing flourished in Rome.
After the destruction of Roman Empire retailing spread across the globe and
Romans are the first ones to conduct sophisticated retailing. As
sophistication and human relations go hand in hand Retail marketing has
got lot to do with the psychology of human behaviour. So retail marketing
can be conveniently called has psychology of marketing.
Traditional retailing:

Traditional commerce is the process of buying and selling or exchanging
Products, services or information is physical, marketing is the process of
Communicating the value of a product. Traditional marketing activities
typically involve advertising, publicity, sales, merchandising and
distribution.
Process of traditional retailing:
In a traditional retailing the customer visits the stores and make the desired
purchases. The flow of goods is from; Manufactures-Warehouse-Retail
outlet-Consumer.
It involves the 4 ps of marketing i.e
1) Product
2) Price
3) Place
4) Promotion
Top 10 traditional retailers of the world:

Retailers
1) Walmart
2) Tesco
3) Costco
4) Carrefour
5) The kroger
6) Schwarz
7) Metro
8) The home depot
9) Aldi
10)Target
Revenue(US billion)
$469
$103
$99
$98.7
$96.7
$87.2
$85.8
$75
$73
$71
Advantages of traditional retailing

1)
2)
3)
4)
5)
We can get the products immediately.

Many choices are available.
Free from shipping charges.
Free from service taxes.
It is tangible, we can feel the texture and appearance of the
product clearly.

6) We can try the products and make sure its of proper size.
7) There is an assistance by sales executive who guides the
customer for his desired purchases and gives him better
explanation and clarity about the product.
8) We can compare similar products on basis of price, quality,
discounts etc.
9) We can have access to after sales service without much
complications.
10) Easy returns in case of any defective product.
11) Good relationship between seller and customer.
12) There are chances of bargaining.
Disadvantages of traditional retailing

1)
2)
3)
4)
5)
It may takes time for us to find parking.

It takes time for travelling to the stores.
Sometimes the sales executive may confuse the buyer.
Limited range and brands as compared to e-tailers
Prices are likely high as the store keeper has to pay rent and
other overheads.
6) Prices are higher as compared to e-tail because the product
passes through various channels of supply chain management.
Immediate payment of cash or downpayment is required at the time of
purchase.
E-tailing
E-tailing is commonly known as electronic marketing, buying and selling

of goods or services through internet, without using any paper documents.
Process of E-tailing:
The consumer browses the catalog of products featured on the site-

selects items to purchase-the selected items are placed in the electronic
equivalent of a shopping cart & provides a bill - ship-to address for
purchase and delivery.
Top 10 E-tailers:
E-tailers
1)amazon
2)apple
Revenue(percentage)
100%
31.4%

3)wal-mart
1.6%
4)otto
57.1%
5)Beijing jindong
100%
6)tesco
4.7%
7)liberty interactive
43.9%
8)dell
100%
9)casino
guichard- 6.4%
perrachon
10)
jia.com
100%
Advantages of E-tailing:
1) It is saves the time of visiting a store and standing in crowded billing
counters.
2) It helps us to compare the prices of similar products.
3) It has wide range of choices for all type of customers.
4) It is user friendly .
5) It has convenient modes of payment and the customer can choose
which type suits him the most.
6) It has cash on delivery facility which is most beneficial one
7) Customer need not have the cash while shopping through online,
he/she can pay through cod
8) One can check for proper sizes with the help of size charts.
9) One can shop anytime anywhere and the products can be availed in
any part of the world.
10)
Various online retailers offer products at discounts than what
the brick and mortar stores do.
11)
They need not invest in the infrastructure and pay rent and
other expense as the e-tailing involves storing in warehouses and
distributing directly to the consumers.
12)
It eliminates the middle men.
13)
One can sell the used products directly to buyers.
Disadvantages of E-tailing:
1)
2)
3)
4)
5)
6)
7)
8)
9)
Less powerful than face to face selling

Cannot see or feel the merchandise.
Premium is charged on delivery.
Difficulties in returning goods
Some fake websites may mislead the customers
Computer illiterates can hardly do online shopping
Too much of choices which may confuse the customers
Cannot be sure of the quality of the products
Sizes may vary and may or may not match customers sizes as
customer cannot try the product until delivered
10)
There are chances of credit card frauds
Questionnaire
Note: I have taken
a sample size of 50 which includes 23 men
and 27 women of different age groups. I have represented each

question based on gender segmentation.
1) what
is your monthly salary?

15-20k
20-30k
30-50k
50-80k

14
12
12
11
10
8
8
6
male
female
0
15-20k
20-30k
30-50k
50-80k
2) How often do you go shopping on average?(include in-store and

online but exclude food shopping)
More than once a week
Once a week
2-3 times a month
Once a month
Less than once a month
14
12
10
8
6
4
2
0
12
12
10
7
4
1
0 0
3
male
female

3) How often do you shop online?
More than once a week
Once a week
2-3 times a month
Once a month
Less than once a month

Never
14
12
10
8
6
4
2
0
12
10
7
4
1
0 0
5
3
4) Do you shop at a retail store?

No never
Regularly
Once a month
Frequently
For important purchases only
male
female

12
10
8
6
4
2
0
male
female
5) Have
you ever shopped at a retail store online?

No, never
Regularly
Once a month
Frequently
For important purchases only
12
10
8
6
4
2
0
10
5
7
5
2
0
6) Which is your preferred retail store?

Marks & spencers
male
female
Metro
Auchan
Big bazaar
Max
Others
9
8
7
4
3
3
2
2
1
male
female
3
2
0
marks and spencers auchan
star bazaar
others
7) Why do you like shopping at a retail store?

Convenience where I live
Items I normally buy under one roof
Good customer service
Excellent brand name
Comfortable experience
I can ask for product advice
( average of both male and female is represented
together)
I can ask for product advice; 8%

convenience-near I live; 20%
comfortable experience; 24%
excellent brand
6% buy all under one roof; 35%
itemsname;
I normally
good customer service; 8%
8) Why
do you like shopping at an online department store?

Convenience
Better choice and price than in store
Good customer service
Excellent range of products
Comfortable browsing experience
Reliable delivery service
I trust their secure payment system
I trust their secure payment system; 6% convenience; 11%

reliable delivery service; 10%
better choice and price; 23%
comfortable browsing experience; 19%
good customer service; 13%
excellent range of products; 17%
( average of both male and female is represented together)
9) Which websites do you prefer the most?

Amazon
E-bay
Flipkart
Snapdeal
Others
12
10
8
male
female
4
2
0
amzon
10)
e-bay
What do you think is better?

Online stores
Traditional stores
flipkart
snapdeal
others
online
traditional
18
16
16
15
14
11
12
10
8
6
4
2
0
male
11)
female
Do you feel online stores have replaced the traditional ones?

Yes
No
25
22
20
20
15
yes
no
10
5
0
male
12)
How much would you rate online?

0-3
3-5
5-7
7-9
9-10
female

14
12
12
10
female
5
4
4
2
13)
male
0-30
3-5
5-7
7-9
9-10
How much would you rate the traditional shopping?

0-3
3-5
5-7
7-9
9-10
14
12
12
10
7
6
5
4
4
2
0
male
female
4
2
1
0-30
Findings:
3-5
5-7
7-9
9-10
women do more shopping than men but
they are more likely to do traditional shopping than online

shopping. Men do less shopping as compared to women but
are more inclined towards online shopping.
Conclusion:
No doubt online shopping is slowly
replacing the traditional ones but, as we know India is a

developing country people wont accept the change so easily.
Online stores can gradually replace the traditional ones but
cannot eliminate them completely. There are chances of
more online shopping if the people are computer literates, if
online retailers have to survive for long they need to target
computer literates. At present however , online retailers are
growing at a fast pace, they are still not able to replace the
traditional retailers.

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Traditional retailing versus e-retailing.which do you think is