A SUMMER TRAINING PROJECT REPORT ON

Marketing Strategies Of More Mega store kirti nagar

PREPARED AND PRESENTED TO

Under the Guidance of

NEHA GOGIA
CUSTOMER SUPPORT MANAGER, MORE MEGA STORE KIRTI NAGAR

Submitted in partial fulfillment for the

Award of Degree of Master of Business Administration
From Dr.A.P.J. Abdul Kalam Technical University, Lucknow.
Submitted By:
Ambika Pandey
Roll Number- 1513370008

Noida Institute of Engineering and Technology

Plot no.19 Knowledge Park, 2 Institutional area
Greater Noida - 201306

Phone: 0120-2320062
After Hours: 0120-2320132
E-mail: admissions@niet.co.in
Website: www.niet.co.in

Noida institute of Engineering

and Technology
Plot no.19 Knowledge Park , 2 institutional area
CERTIFICATE

This is to certify that Mr. Ambika Pandey, a student of Master of Business Administration
(MBA) Program (Batch 2015-17) at this Institute has undergone Summer Training in the
More megastore kirti nagar, New Delhi , from 10 June 2016 to 20 july 2016 and carried
out a study titled Marketing Strategies of More Mega store Kirti Nagar.He has
prepared a report on the study carried out by his in the organization .The student has also
made a presentation before a panel of experts at the Institute.

(DR.GAURAV AGRAWAL)

AssistantProfessor
Assoc. Prof. & Head
(Dr. Dileep Singh)

Certified

DECLARATION

I, AMBIKA PANDEY a student of Master of business administration (MBA) programme at

NOIDA INSTITUTE OF ENGINEERING AND TECHNOLOGY, GREATER NOIDA
hereby declare that all the information, facts and figures used in this summer training project
titled Marketing strategies of MORE mega store Kirti nagar NEW DELHI have
been collected by me. I also declare that this project report has been prepared by me and the
same has never been submitted by the undersigned either in part or in full to any other
university or institute or published earlier.
This information is true to best of my knowledge and belief.

DATE

(AMBIKA PANDEY)
Roll No. : (1513370008)

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed

in the development of this work and who influenced my thinking, behavior, and acts
during the course of study. I am thankful to Neha Gogia (CUSTOMER SUPPORT
MANAGER, More Mega store Kirti Nagar) for his support, cooperation, and
motivation provided to me during the training for constant inspiration, presence, and
blessings.

I express my sincere gratitude to Dr. Dileep Singh, worthy Principal for providing me an
opportunity to undergo summer training at MORE MAEGASTORE KIRTI NAGAR. I also
extend my sincere appreciation to Dr. Gaurav Agrawal, (Assistant Professor) who provided
his valuable suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral support and my
friends with whom I shared my day-to-day experience and received lots of suggestions that
improved my quality of work.

(AMBIKA PANDEY)
Roll No. : 1513370008

PREFACE
6

This report deals with the marketing mix if More megastore kirti nagar , This report is
beneficial not only for the company but also for the researchers and business executives.
Keeping the point of view, simplicity and the motive of making this report understandable to
the laymen.

Hope readers of this report will find it useful to enhance their knowledge and this report will
surely help them in various ways. I believe that this report will be proven as a good source of
information for More Mega Store and may be considered for the promotional strategies of
More Mega Store . Due importance has been given at various level of writing this report
so that mistakes should be avoided, but even if some creeps in, that shall be regretted. All the
suggestions are welcomed.

(AMBIKA PANDEY)
Roll No. : 1513370008

TABLE OF CONTENT

Chapters
Part I
1. Introduction
2. Company profile
a. About organization
b. Organization chart
c. Aims and objectives
d. Any specific information of the organization
Part II
3. Objectives of the study
4. Problems and Limitations
5. Research Methodology
a. Method of data collection
b. Data Source
c. Sample design
d. Universe
e. Sample type
f. Sample size
g. Sample Unit
h. Statistical tools to be used

Part III
6. Data Analysis & Interpretations
7. Findingsand conclusion
8. Suggestions/Recommendations
9.

Bibliography

11. Appendix

Part I

10

INTRODUCTION OF INDIAN RETAIL INDUSTRY

Brief Description
Introduction to Retail industry in India
Retailing Customer is King

A Customer is the most important visitor on our premises. He is not dependent on

us. We are dependent on him. He is not an interruption on our work. He is the
purpose of it. He is not an outside of our business. He is a part of it and we are not
doing him a favor by servicing him. He is doing us a favor by giving us an
opportunity to do so.

Ma
hatma Gandhi

INTRODUCTION
The India Retail Industry is the largest among all the industries, accounting for over
10 per cent of the countrys GDP and around 8 per cent of the employment. 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
11

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 industry.
The total concept and idea of shopping has undergone an attention drawing change in
terms of format and consumer buying behavior, ushering in a revolution in shopping
in India. Modern retailing has entered into the Retail market in India as is observed in
the form of bustling shopping centers, multi-storied malls and the huge complexes
that offer shopping, entertainment and food all under one roof.
A large young working population with median age of 24 years, nuclear families in
urban areas, along with increasing workingwomen population and emerging
opportunities in the services sector are going to be the key factors in the growth of
the organized Retail sector in India. The growth pattern in organized retailing and in
the consumption made by the Indian population will follow a rising graph helping the
newer businessmen to enter the India Retail Industry.
In India the vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets, which in
turn will help the India Retail Industry to grow faster. Indian retail is expected to
grow 25 per cent annually. Modern retail in India could be worth US$ 175-200
billion by 2016. The Food Retail Industry in India dominates the shopping basket.
The Mobile phone Retail Industry in India is already a US$ 16.7 billion business,
growing at over 20 per cent per year. The future of the India Retail Industry looks
promising with the growing of the market, with the government policies becoming
more favorable and the emerging technologies facilitating operations.

THE INDIAN RETAIL SCENE

India is the country having the most unorganized retail market. Traditionally it is a
familys livelihood, with their shop in the front and house at the back, while they run
the retail business. More than 99% retailers function in less than 500 square feet of
shopping space. Global retail consultants KSA Technopak have estimated that
organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06.
The Indian retail sector is estimated at around Rs 900,000 crore, of which the
organized sector accounts for a mere 2 per cent indicating a huge potential market
opportunity that is lying in the waiting for the consumer-savvy organized retailer.
Purchasing power of Indian urban consumer is growing and branded merchandise in
categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even
Jewellery, are slowly becoming lifestyle products that are widely accepted by the
urban Indian consumer. Indian retailers need to advantage of this growth and aiming
12

to grow, diversify and introduce new formats have to pay more attention to the brand
building process. The emphasis here is on retail as a brand rather than retailers selling
brands. The focus should be on branding the retail business itself. In their preparation
to face fierce competitive pressure, Indian retailers must come to recognize the value
of building their own stores as brands to reinforce their marketing positioning, to
communicate quality as well as value for money. Sustainable competitive advantage
will be dependent on translating core values combining products, image and
reputation into a coherent retail brand strategy.
There is no doubt that the Indian retail scene is booming. A number of large corporate
houses Tatas, Rahejas, Piramalss, Goenkas have already made their foray into
this arena, with beauty and health stores, supermarkets, self-service music stores, new
age book stores, every-day-low-price stores, computers and peripherals stores, office
equipment stores and home/building construction stores. Today the organized players
have attacked every retail category. The Indian retail scene has witnessed too many
players in too short a time, crowding several categories without looking at their core
competencies, or having a well thought out branding strategy.

GROWTH OF RETAIL COMPANIES IN INDIA.

Growth of Retail Companies in India exhibits the boom in the retail industry in India over
the years. The increase in the purchasing power of the Indian middle classes and the influx of
the foreign investments has been encouraging in the Growth of Retail Companies in India.
Growth of Retail Companies in India : Overview
Growth of Retail Companies in India is still not yet in a matured stage with great potentials
within this sector still to be explored. Apart from the retail company like Nilgiri's of
Bangalore, most of the retail companies are sections of other industries that have stepped in
the retail sector for a better business. The Growth of Retail Companies in India is most
pronounced in the metro cities of India, however the smaller towns are also not lagging
behind in this. The retail companies are not only targeting the four metros in India but also is
considering the second graded upcoming cities like Ahmedabad, Baroda, Chandigarh,
Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South
Indian zone have adopted the process of shopping in the supermarkets for their daily
13

requirements and this has also been influencing other cities as well where
many hypermarkets are coming up day to day.

Reasons for the fast Growth of Retail Companies in India:

The retail companies are found to be rising in India at a remarkable speed with the years and
this have brought a revolutionary change in the shopping attitude of the Indian customers.
The Growth of Retail Companies in India is facilitated by certain factors like 1.
2.
3.
4.
5.

existing Indian middle classes with an increased purchasing power

rise of upcoming business sectors like the IT and engineering firms
change in the taste and attitude of the Indians
effect of globalization
heavy influx of FDI in the retail sectors in India

Growth Factors in Indian Organized Retail sector

The growth factors in Indian organized sector are various but it is mainly due to the fact
that India's economy is booming.
Also, the rise in the working population which is young, pay- packets which are hefty,
more nuclear families in urban areas, rise in the number of women working, more
disposable income and customer aspiration, western influences and growth in expenditure
for luxury items. All these are the factors for the growth in Indian organized retail sector.

In fact, India retail industry is the fastest growing industry in India and it accounts for
10% of the country's GDP. In 2006, the retail industry in India amounted to US$ 200
billion and out of this, the organized retail sector in India amounted to US$ 6.4 billion. By
2010, the Indian organized retail sector is expected to rise to US$ 23 billion. In 2003, the
Indian organized retailing sector accounted for more than 4.5 million sq. ft of space
absorption by malls.
Many Indian companies have entered the retail industry in India and this is also a factor in
the growth of Indian organized retail sector. Reliance Industries Limited is planning to
invest US$ 6 billion in the organized retail sector in India by opening 1500 supermarkets
and 1000 hypermarkets. Bharti Telecoms is planning a joint venture worth 750 million
with Tesco a global retail giant. Pantaloons is planning to invest US$ 1 billion in order to
increase its retail space to 30 million square feet. Such huge investments is also a factor in
the growth of the organized retail sector in India.

14

Global retail giants are also entering the retail industry in India and this is also one of
the factors in the growth of the organized retail sector in India. The global retail giants
who are entering the organized retail sector in India are:

Wal- Mart

Tesco

Carrefour SA

Metro AG

The factors for growth in Indian organized retail sector are many and thats the reason
behind its massive growth. But for this to continue both the Indian retailers and the
government will have to work together.

Growth Phase of Indian Retail Sector to Continue

The phase of high growth of Indian retail sector is expected to Continue due to huge amounts
of investments and breaking up of traditional concepts in this sector. These are leading to
various changes and are providing further boost to the growth of the Indian Retail Sector.
The Indian Retail Sector that includes the traditional retail and the modern retail is estimated
to grow at a very fast pace from US$ 336 billion, in 2006 to US$ 590 billion, by 2011.
The traditional retail sector is expected to increase from US$ 324 billion, in 2006 to US$ 493
billion, by 2011. The share of the modern retail in the Indian Retail Sector is also estimated
to increase from 4% in 2008, to 16% in the next five years. This exceptional growth is
expected to take place in the retail sector due to large amounts of investment which is
estimated to be about US$ 35 billion in the next five years. The "cash- and- carry" activities
are expected to receive the majority of investments.
The maximum amount of growth in the Indian Retail Sector will be registered in the topmost
50 to 60 markets that are located in the urban areas. These markets would be mostly
supermarkets and hypermarkets. However, these supermarkets and hypermarkets will also
witness fast erosions in their margins. Further, it is estimated that in the longer run, the
convenient stores that are located in the local neighborhood will continue to survive.
A major focus area in the Indian retail sector is the supply chain management. In the western
countries, the retail sector has a highly developed system of supply chain. However
developments in supply chain in Indian retail sector has been quite slow.
15

Other areas that need attention for the growth of the Indian retail sector to continue includes
duty and tax structures, infrastructure, rising land prices and effective trend forecasting.
Trend forecasting needs to be done in the country especially in the segments of cosmetics,
apparel and footwear for this will help the retail companies to curtail their expenses
substantially. Also another area that requires attention is manpower for it is estimated that the
Sector of Indian Retail will suffer from shortage of manpower by about a million people, by
2012.
The chains in the Indian retail sector need to frequently change their stocks and also adopt
concepts like home delivery. If all these areas are given immediate attention then the growth
phase of Indian retail sector would continue at a very fast pace. The Indian retail sector
would then witness the setting up of retail parks that are flourishing in Europe. Further, the
growth of the Indian retail sector would help in making the country ready for big retailers by
2015- 2016.

RETAILING FORMAT IN INDIA (MAJOR RETAIL FORMATS)

Traditional Format :
1. Salesman
2. Haats
3. Mandies
4. Company/Multi Brand store etc
Established Formats :
1. Kirana stores
2. The Indian Commerce Association 27-29 December, 2007, Hyderabad

16

3. Convenience/Departmental Store
4. Pan/Beedi Shop
5. Malls/Special Malls
6. Company/Multi Brand Store
Emerging Format :
1. Exclusive Retail Outlet
2. Hypermarket
3. International Retailer
4. Malls/Special Malls
5. Multiplexes
PESTEL ANALYSIS.
PEST analysis of any industry sector investigates the important factors that are affecting the
industry and influencing the companies operating in that sector. PEST is an acronym for
political, economic, social and technological analysis. Political factors include government
policies relating to the industry, tax policies, laws and regulations, trade restrictions and
tariffs etc. The economic factors relate to changes in the wider economy such as economic
growth, interest rates, exchange rates and inflation rate, etc. Social factors often look at the
cultural aspects and include health consciousness, population growth rate, age distribution,
changes in tastes and buying patterns, etc. The technological factors relate to the application
of new inventions and ideas such as R&D activity, automation, technology incentives and the
rate of technological change.
Synergyst's PEST Analysis is a perfect tool for managers and policy makers; helping them in
analyzing the forces that are driving their industry and how these factors will influence their
businesses and the whole industry in general. Our product also presents a brief profile of the
industry comprising of current market, competition in it and future prospects of that sector.
POLITICAL
1. Strong opposition to FDI in Indias retail
sector.
2. Taxation policy VAT.
3. Low access to banking facilities

ECONOMIC

17

1.GDP Growth.
2.Foreign Investments.
3.Money Supply.
4.Inflation.

SOCIAL
1.Corporate Social Responsibility.
2.Environmental Safety.
3.Ease of shopping.

TECHNOLOGY
1.Online Shopping.
2.Retail media networks(RMN).
3.ERP System.
4.CRM System.

SUPPORTIVE SECTORS
1.I T.
2.Media.
3.Real Estate.
4.Tou r i s m .

18

INVESTMENT POLICY AND INITIATIVES

3.1 FDI Policy in the Retail Sector
India has kept the retail sector largely closed to outsiders to safeguard the livelihood of
nearly 15 million small storeowners and only allows 51 per cent foreign investment in single
brand retail with prior Government permission. FDI is also allowed in the wholesale
business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can
operate now on their own. Metro is already operating through the cash-and-carry wholesale\
mode. The policy makers continue to explore areas where FDI can be invited without hurting
the interest of local retail community. Government is considering opening up of the retail\
trading for select sectors such as electronic goods, stationery, sports goods, and building
equipment.
Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods,
electronics and stationery is also being contemplated. The Government has to walk a tight
rope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI
in single-brand product retailing has led to the entry of only a few global brands such as Nike
(footwear), Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear),
Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture),
Argenterie Greggio (silverware, cutlery,\ traditional home accessories and gift items) and
Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is
also eyeing the domestic luxury segment to make a presence through retailing directly.

OPPORTUNITIES AND CHALLENGES

1 Investment Opportunities in the Retail Sector

India is the least competitive as well as least saturated of all major global markets. This
implies that there are significantly low entry barriers for players trying to setup base in India,
in terms of the competitive landscape. The global retailers such as Wal-Mart, Carrefour,
Tesco and Casino would take advantage of the more favourable FDI rules that are likely in
India and enter the country through partnerships with local retailers. Other retailers such as
Marks & Spencer and the Benetton Group, who operate through a franchisee model, would
most likely switch to a hybrid ownership structure.
A good talent pool, unlimited opportunities, huge markets and availability of quality raw
materials at cheaper costs is expected to make India overtake the world's best retail
economies by 2042, according to industry players. The retail industry in India, according to
experts, will be a major employment generator in the future. Currently, the market share of
organised modern retail is just over 4 per cent of the total retail industry, thereby leaving a
huge untapped opportunity. The sector is expected to see an investment of over $30 billion

19

within the next 4-5 years, catapulting modern retail in the country to $175-200 billion by
2016, according to Technopak estimates.
The Potential of the Indian Retail Sector
The high growth projected in domestic retail demand will be fuelled by:
1. The migration of population to higher income segments with increasing per capita
incomes
2. An increase in urbanisation
3. Changing consumer attitudes especially the increasing use of credit cards
4. The growth of the population in the 20 to 49 years age band There is retail
opportunity in most product categories and for all types of formats
5. Food and Grocery: The largest category; largely unorganised today
6. Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated
in the next 10 years
7. Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure: Cold chain and logistics
8. India also has significant potential to emerge as a sourcing base for a wide variety of
goods for international retail companies
9. Many international retailers including Wal-Mart, GAP, JC Penney etc. are already
procuring from India.
Corporate Catalyst India A report on Indian Retail Industry Of the total organised retail
market of Rs 550 billion, the business of fashion accounts for Rs 300.80 billion, which
translates into nearly 55 per cent of the organised retail segment in the country.
Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the
country's retail market of Rs 12,000 billion. Commanding such a large chunk of the
organised retail business in India, fashion retailing has indeed been responsible for singlehandedly driving the business of retail in India.

The opportunities in Indian organized retail sector are many for this sector is witnessing a
boom.
The retail industry in India amounted to US$ 200 billion in 2006, and out of this amount the
Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in India
organized retail sector can be judged from the fact that by 2010 it is expected to rise to US$
23 billion.

The various opportunities in the organized retail sector in India are mainly there for the
Indian consumers behavior pattern has changed. Now the Indian consumer gets more hefty
pay- packages, is younger, a large number of women are working, western influences, and
more disposable income have opened a lot of opportunities in Indian organized retail sector.
The Indian consumer wants to shop, eat and get entertainment in one place and is have also
20

given Indian organized retail sector an opportunity to grow.

The Indian government in 2005 allowed foreign direct investment (FDI) in single brand
retail to 51%. This have opened up a lot of opportunities in India organized retail sector. In
fact 325 departmental stores, 300 new malls, and 1500 supermarkets are being built which
shows the tremendous opportunities in the organized retail sector in India.
Many Indian companies seeing the various opportunities in organized retail sector in
India have entered it. Pantaloons have decided to increase its retail space to 30 million
square feet with an investment of US$ 1 billion. Reliance Industries Limited is targeting for
annual sales of US$ 25 billion by 2011. It is planning to invest US$ 6 billion in order to open
1,500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with
Telco a global retail giant worth 750 million.
The opportunities in the organized retail sector in India have also increased with the desire of
many global retail giants to set up shop here. The global retail giants who are entering the
Indian organized retail sector are:

Tesco

Wal- Mart

Metro AG

Carrefour SA

The opportunities in Indian organized retail sector are varied and it must be fully exploited
by the Indian retailers.
4.2 Challenges in Retailing
The challenges facing the Indian organized retail sector are various and these are
stopping the Indian retail industry from reaching its full potential. The behaviour
pattern of the Indian consumer has undergone a major change. This has happened for
the Indian consumer is earning more now, western influences, women working force
is increasing, desire for luxury items and better quality. He now wants to eat, shop,
and get entertained under the same roof. All these have lead the Indian organized
retail sector to give more in order to satisfy the Indian customer.
The biggest challenge facing the Indian organized retail sector is the lack of retail space.
With real estate prices escalating due to increase in demand from the Indian organized retail
sector, it is posing a challenge to its growth. With Indian retailers having to shell out more
for retail space it is effecting there overall profitability in retail.
Trained manpower shortage is a challenge facing the organized retail sector in India. The
21

Indian retailers have difficultly in finding trained person and also have to pay more in order
to retain them. This again brings down the Indian retailers profit levels.
The Indian government have allowed 51% foreign direct investment (FDI) in the India retail
sector to one brand shops only. This has made the entry of global retail giants to organized
retail sector in India difficult. This is a challenge being faced by the Indian organized retail
sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG are entering the
organized retail sector in India indirectly through franchisee agreement and cash and carry
wholesale trading. Many Indian companies are also entering the Indian organized retail
sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are
facing stiff competition from these global retail giants. As a result discounting is becoming
an accepted practice. This too brings down the profit of the Indian retailers. All these are
posing as challenges facing the Indian organized retail sector. The challenges facing the
Indian organized retail sector are there but it will have to be dealt with and only then this
sector can prosper.
The industry is facing a severe shortage of talented professionals, especially at the middlemanagement level. Most Indian retail players are under serious pressure to make their supply
chains more efficient in order to deliver the levels of quality and service that consumers are
demanding. Long intermediation chains would increase the costs by 15 per cent. Lack of
adequate infrastructure with respect to roads, electricity, cold chains and ports has further led
to the impediment of a pan-India network of suppliers. Due to these constraints, retail chains
have to resort to multiple vendors for their requirements, thereby, raising costs and prices.
The available talent pool does not back retail sector as the sector has only recently emerged
from its nascent phase. Further, retailing is yet to become a preferred career option for most
of Indias educated class that has chosen sectors like IT, BPO and financial services. Even
though the Government is attempting to implement a uniform value-added tax across states,
the system is currently plagued with differential tax rates for various states leading to
increased costs and complexities in establishing an effective distribution network.
Stringent labor laws govern the number of hours worked and minimum wages to be paid
leading to limited flexibility of operations and employment of part-time employees. Further,
multiple clearances are required by the same company for opening new outlets adding to the
costs incurred and time taken to expand presence in the country. The retail sector does not
have industry status yet making it difficult for retailers to raise finance from banks to fund
their expansion plans. Government restrictions on the FDI are leading to an absence of
foreign players resulting into limited exposure to best practices. Corporate Catalyst India A
report on Indian Retail Industry .Non-availability of Government land and zonal restrictions
has made it difficult to find a good real estate in terms of location and size. Also lack of clear
ownership titles and high stamp duty has resulted in disorganized nature of transactions
The Hidden Challenges

22

Modern retailing is all about directly having "first hand experience" with customers, giving
them such a satiable experience that they would like to enjoy again and again. Providing
great experience to customers can easily be said than done. Thus challenges like retail
differentiation, merchandising mix, supply chain management and competition from
supplier's brands are the talk of the day. In India, as we are moving to the next phase of retail
development, each endeavor to offer experiential shopping. One of the key observations by
customers is that it is very difficult to find the uniqueness of retail stores. The problem:retail
differentiation.
The next problem in setting up organized retail operations is that of supply chain logistics.
India lacks a strong supply chain when compared to Europe or the USA. The existing supply
chain has too many intermediaries: Typical supply chain looks like:- Manufacturer - National
distributor - Regional distributor - Local wholesaler - Retailer - Consumer. This implies that
global retail chains will have to build a supply chain network from scratch. This might run
foul with the existing supply chain operators. In addition to fragmented supply chain, the
trucking and transportation system is antiquated. The concept of container trucks, automated
warehousing is yet to take root in India. The result: significant losses/damages during
shipping.
Merchandising planning is one of the biggest challenges that any multi store retailer faces.
Getting the right mix of product, which is store specific across organization, is a combination
of customer insight, allocation and assortment techniques.
The private label will continue to compete with brand leaders. So supplier's brand wiil take
their own way because they have a established brand image from last decades and the
reasons can be attributed to better customer experience, value vs. price, aspiration,
innovation, accessibility of supplier's brand.
4.0 Strategies
4.1: Right Positioning
The effectiveness of the mall developer's communication of the offering to the target
customers determines how well the mall gets positioned in their minds. At this stage, the
communication has to be more of relative nature. This implies that the message conveyed to
the target customers must be effective enough in differentiating the mall's offering from that
of its competitors without even naming them. The message should also clearly convey to the
target audience that the mall offers them exactly what they call the complete shopping-cumentertainment point that meets all their expectations. The core purpose is to inform the target
customers about the offering of the mall, persuade them to visit the mall and remind them
about the mall. The mall developer can create awareness about the offering among the target
customers in a number of ways. Various communication tools available to the mall developer
for this purpose may include advertising, buzz marketing (WoM), celebrity endorsement, use
of print media, press releases and viral marketing .Once the message is being conveyed
23

through these channels, the mall developer must add a personal touch to his message by
carrying out a door-to-door campaign in order to reinforce the message.
4.2: Effective Visual Communication
Retailer has to give more emphasis on display visual merchandising, lighting, signages and
specialized props. The visual communication strategy might be planned and also be brand
positioned. Theme or lifestyle displays using stylized mannequins and props, which are
based on a season or an event, are used to promote collections and have to change to keep
touch with the trend. The merchandise presentation ought to be very creative and displays
are often on non-standard fixtures and forms to generate interest and add on attitude to the
merchandise.
4.3: Strong Supply Chain
Critical components of supply chain planning applications can help manufacturers meet
retailers' service levels and maintain profit margins. Retailer has to develop innovative
solution for managing the supply chain problems. Innovative solutions like performance
management, frequent sales operation management, demand planning, inventory planning,
production planning, lean systems and staff should help retailers to get advantage over
competitors.
4.4: Changing the Perception
Retailers benefit only if consumers perceive their store brands to have consistent and
comparable quality and availability in relation to branded products. Retailer has to provide
more assortments for private level brands to compete with supplier's brand. New product
development, aggressive retail mix as well as everyday low pricing strategy can be the
strategy to get edge over supplier's brand.
5.0 Conclusion:
In their preparation to face fierce competitive pressure, Indian retailers must come to
recognize the value of building their own stores as brands to reinforce their marketing
Positioning, to communicate quality as well as value for money. Sustainable competitive
advantage will be dependent on translating core values combining products, image and
reputation into a coherent retail brand strategy.

IN SHORT THE CHALLENGES FACING INDIAN RETAIL INDUSTRY

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

24

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of
categories.

Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products

and services.

Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix
of all types of products and services including entertainment and food under a
single roof.

E-trailers: are retailers providing online buying and selling of products and
services.

Discount stores: these are factory outlets that give discount on the MRP.

Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks
and other small items can be bought via vending machine.

Category killers: 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.

Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a
couple of examples.
25

STRATEGIES USED BY SOME COMPANIES IN THAT INDUSTRY TO

CONVERT THEIR THREATS INTO OPPORTUNITIES:
Back ground
Pantaloon Retail (India) Limited is Indias largest leading retailers. It operates on
multiple platforms like Value and life style segment in the Indian consumers market.
Company head quarters located in Mumbai. As on Feb 2009 Company operates over 12
million square feet of retail space, 1000 stores in 71 cities with employee strength of 30,000
people. The company is in aspect of giving retailing a modern looks with reachable for
middle and middle lower class people. Retailing includes retail formats like Pantaloons, Big
bazaar, Food bazaar, brand factory, Blue sky, and Top 10, Star & sitar and e zone. The
company also operates on online futurebazzar.com for upper class that can get internet
connectivity. Home Town a large-format home solutions store.
Pantaloon Retail is the flagship company of Future Group, a business group catering
tothe entire Indian consumption space. Future Group led by its founder and Group CEO,
Mr.Kishore Biyani, is one of Indias leading business houses with multiple businesses
spanningacross the consumption space. While retail forms the core business activity of
Future Group,group subsidiaries are present in consumer finance, capital, insurance, leisure
and entertainment,brand development, retail real estate development, retail media and
logistics.
1.2 Strategies
The company observes retail customer trend and changing consumption tastes.
Organizationis customer driven opposed to product driven .Company is very conscious about
culture andregional consumption pattern. Strategies change frequently due to orient to the
customers needs.The continues of learning, unlearning and relearning is applied to update
the quick changingstrategies across the organization. As Kishore Biyani MD Pantaloon retail
India LTD saysRetail is like riding bicycle. In uphill if you stop pedaling you will slide
down. The statement express the need of continues learning process to form the strategies.
Based on analysis its business strategies can be categorized in 3 major groups. They are

26

 Diversification strategy
Classes destination strategy

Maximum market shares strategy

Diversification strategy
The company started its business as textile manufactures but growth in
modernorganized retailing attracted the company to switch diversify to the next consumption
pattern.The company diversified and acquired a large business in organic and inorganic way.
Butcompany did not forget ripe its strategy and values in the diversified company.
In every new business company started to rewrite the rules by retaining values. The
company in latter stage organized to support each other by physical material flow if required.
Diversification is done in two main categoriesRETAIL FORMATS and SPECIALIZED
BUSINESs.
Classes destination strategy
Future group has diversified its business keeping the retiling as common goal. To set
andconcentrate on one stratum is main objective of this strategy. Each business is set to
operate ondefined strata. Company has divided Indian customers in three different groups.
INDIA ONE,INDIA TWO, INDIA THREE. Each has different values, products and quality
requirements.
INDIA ONE or consuming class .The population of this constitutes only 14%.Till
recenttimes the modern retiling formats is offered for this class. According Maslows theory
ofhierarchy the 14% people are in self actualization and Esteem needs in the pyramid. For
thisclass pantaloon patterned Future bazaar, E zone, Central, brand factory, Home town and
starGalaxy entertainment.
INDIA TWO or the serving class it includes people like house hold helpers, office
peonetc. This is the people who make service INDIA ONE class. The population of this class
is morethan 30%. In the needs hierarchy they are located in for Social and security .Earning
27

capacity ofthis class is 60% lesser than INDIA ONE. For this class as the big bazaar, Food
bazaar, Futuremoney and other retail formats are presented.
INDIA THREE or struggling class. The class led life on hand to mouth existence.
Theycant afford for beater living style. This segment doesnt contribute much in the
contributioncycle. The need of the segment is local as they are finding it cheaper. The present
business modelis not addressing this class.
Figure 3 shows change in consumption patter by different class in 2001-02 and 200708.INDIAONE has changed from 25% to 35% normally the total profit in this segment will
comparatively20% more than they are sold in next segment. As ambiance is factor and other
pleasuring nonvalue added services are necessary. INDIA TWO has not changed it
conception level. INDIATHREE has seen 10 % decline.
Maximum market shares strategy
The retail chain by pantaloon in all business patterns tries to achieve maximum
marketshare in all the products or service it provides .The Company does not bothers about
short termprofit or loss by a strategy. This are considered as learning. The business will sell
at marginalprofit some times to attract the new customer who will prove potential customers
in future. Thestrategy achieved by focusing pricing factors in INDAI TWO and on service
and quality inINDIA ONE.
Pricing strategies
Pricing is strategy used by Pantaloon retail chain to attain maximum market shares.
Thecompany offers numerous schemes to attract the new customer as well as to retain the
present customers. The companys schemes are categorized in following groups

1.VALUE PRICING

28

This

approach

is

used

where

external

factors

such

as

recession

or

increasedcompetition force companies to provide 'value' products and services to retain sales.
Theproduct value will be associated with external factors.

2.PROMOTIONAL PRICING
Pricing to promote a product is a very common application. The application of
this done by BOGO (Buy one Get One), BTGO (Buy Two Get One Free) etc.

3.BUNDLING
Bundling is marketing tool sell two or more complementary product as a package
with attractive price. The price is will lesser then individual selling price.
Example:
A Person needs one soap for a period of time
But bundling with attractive price with more than 3 soaps can attract them.

4.LOW INTEREST RATE FINANCING

Future money helps in asset purchase at 0% interest.

5.PHYSIOLOGICAL DISCOUNTING
In India this approach is called as Bata rating system. Organization utilizes
thisapproach when product has emotional value rather than rational value. Example a
productis priced for 99 instead of 100.When board shows price reduction from 100 to
99,Consumer looks at 3 digits to 2 digits rather than exact value.

6.TIME PRICING
29

The innovative way of attract the customer is Timely pricing it is known thatduring
holidays rate of customer is more. Reduction of profit margin with lot ofadvertisement will
invite new customers. The company has learnt it from strategy madeon public holiday 26Feb. When the turnover of the day reached 30 cores where averageis 5 cores.
With such experience crowded management is essential so to divert potential
customers Wednesday bazaar where it will offer less profit margin sales.

1.3 Levers issues

Human resource
Well trained staff, Appearance, Empowered individuals, Use scenario planning as a tool for
quick decision making, Brand ambassador Organization structure & controls .The
entrepreneurial culture and spirit prevails in the company, Appetite for taking risks is
encouraged, learning while doing, No rigid organizational structure, organization design
approach, Balanced Score card approach Retail control Semi Centralized, Complex
Sourcing E-touch with supplier, Self production facilities with small number of suppliers,
Short term contracts (based on lowest bid) Process Modern hard technology, Devolved
internally, Reduces cost, new strategies and process innovations Facilities Special propose,
Large, Capital driven, Placed in major cities.
Why not e-retailing
The organization focused on mall base selling rather than e business in initial
stages.Apart from having so many advantages company had no focused on this pattern. The
reasons fornot selecting this system is probably
1 .

Targeted on INDIA ONE initially , Who are away from internet services

2 .

Supplier base and support was not so strong

3 .

Absence of good software support in supplier management

4 .

E business threat of cash jams in initial days

30

5 .

Face to face communication is tradition of Indian retailing from many years

6 .

The threat or cyber crime

2.8 Conclusion
Pantaloon retail India evolved its business strategy based on under studying
customers.The organization deploys the cultural and regional strategies to attract the
customers. Thechanging emotions of customers are tracked and they are linked with the
power of modernretailing environment. But still the company has introduce modern retailing
malls to the socialclass people of India it has fear of threat of business decline from the
competitors like Reliancefresh and Aditya birla moreWho are potential competitor

5.0 Conclusion:
In their preparation to face fierce competitive pressure, Indian retailers must come to
recognize the value of building their own stores as brands to reinforce their marketing
Positioning, to communicate quality as well as value for money. Sustainable competitive
advantage will be dependent on translating core values combining products, image and
reputation into a coherent retail brand strategy.

INTRODUCTION MARKETING STRATEGIES OF RETAIL INDUSTRY

31

Marketing strategy has the fundamental goal of increasing sales and achieving a
sustainable competitive advantage. Marketing strategy includes all basic, short term, and
long-term activities in the field of marketing that deal with the analysis of the strategic
initial situation of a company and the formulation, evaluation and selection of marketoriented strategies and therefore contribute to the goals of the company and its marketing
objectives.

Marketing strategy should not be confused with a marketing objective or mission. For
example, a goal may be to become the market leader, perhaps in a specific niche a mission
32

may be something along the lines of "to serve customers with honor and dignity";
in contrast, a marketing strategy describes how a firm will achieve the stated goal in a
way which is consistent with the mission, perhaps by detailed plans for how it might
build a referral network, for example. Strategy varies by type of market. A wellestablished firm in a mature market will likely have a different strategy than a start-up.
Plans usually involve monitoring, to assess progress, and prepare for contingencies if
problems arise.

Diversity of Strategies
Marketing strategies may differ depending on the unique situation of the individual
business. However, there are a number of ways of categorizing some generic strategies. A
brief description of the most common categorizing schemes is presented below

Strategies based on market dominance

In this scheme, firms are classified based on their market share or dominance of an industry.
Typically there are four types of market dominance strategies

Leader

Challenger

Follower

Nicher

Marketing strategy: knowing your customers

A successful marketing strategy depends on understanding your customers, what they need
and how you can persuade them to buy from you. There's no substitute for knowledge.
Experience and regular two-way communication will tell you a lot about your customers.
But targeted market research will build a more detailed picture of customer segments with
similar needs. It will help you understand how to target these people so you're not wasting
time on people who aren't interested in your offer. But you'll also need to understand how
33

your market works - where do your customers find out about your offer, for example? Your
strategy should even tell you how you measure up against the competition and what new
trends to expect in your market.

Marketing strategy: making a plan

A marketing plan explains how to put your strategy into action. It will set marketing
budgets and deadlines, but it will also tell you how you're going to talk to your target
customers - whether that's through advertising, networking, going to trade shows, direct
marketing, and so on.

Retail
The word retail has its origin in French word retaillier and means to cut a piece off or to
break bulk. The term Retailing is defined as All activities involved in selling goods and
services directly to final consumers for their personal and non-business use. In simple
terms, it implies a first-hand transaction with customer. 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 fastest changing and dynamic industries in
the world today.
Retailing, it is an emerging trend in the India and Hyderabad is not far behind which is also
witnessing the stupendous growth and opportunities presented by this sector. Many
institutions- Manufacturing, Wholesalers and retailers do retailing, but most retailing is
done by Retailers. A business wholesales come from primarily from retailing. It is a proven
fact that in India the retail industry has become the 2 nd largest employer after agriculture.
Indian retail sector is in boom period and many reasons are contributing to it.
The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12
million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less
than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US
figure of 16 sq. ft. Thus Indias per capita retailing space is the lowest in the world.
With more than 9 outlets per 1000 people, India has the largest number of outlets in the
world. Most of them are independent and contribute as much as 95% to the total retail sales.
34

Because of the increasing number of nuclear family, working women, greater work pressure
and increased commuting time, convenience has become a priority for the Indian consumers.
The growth and development of organized retailing in India is driven by two main factors
lower price and benefits the consumers cant resist. According to experts, economies of scale
drive down the cost of supply chain, allowing retailers to offers more benefits offered to the
customers. Globally, retailing is customer-centric with an emphasis on innovation in
products, process and services. In short, the customer is the king.
The Indian retail market is the 5 th largest retail destination globally. It is estimated to grow
from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015.
In Hyderabad, Spencers Retail came up as the organized retail outlet in the form of a
Hypermarket in the year 2001, with its inception in Hyderabad, shopping got an altogether
new meaning in Hyderabad. Some of the striking features of Spencers Retail a big and
different formats having nice store image, along with soothing music and luring visual
display of the products with self-selection facility magnetizing customers to choose from a
wide assortment and variety of the products priced with entrancing discounts and fabulous
offers.
The emergence of organized retailing has led to competition which has resulted to the
demographics & psychographic changes in the life of urban consumers. The life style and
purchasing power of the middle class & upper class segment have fuelled the growth of
organized retailing to intense competition among the big players.
Spencers Retail is facing big intense competition from organized retail outlets like Big
Bazaar, More, Vijetha, Hyderabad Central, Spar, Shoppers Stop, Pantaloons, Heritage fresh
@, Food World, Reliance fresh, Vishal Mega Mart etc, to name a few, and from unorganized
retailers like Kirana shops, Garment shops etc. Competition in retail sector has become
extremely keen. Many new players coming in the retail market has increased the degree of
competition by adopting 5 Ps (i.e. place, product, price, promotion and people) for
successful retailing. While some of the exiting retailers survived, others failed to do so.

35

STRUCTURAL REPRESENTATION OF RETAIL INDUSTRY

Retail Store Marketing: Strategies For Attracting More Customers

If you're like most retail business owners, your NUMBER ONE PROBLEM is getting
enough customers.
If your existing retail store marketing strategy is not producing the results you want, then we
have resources that can help you get noticed and drive more customers into your store.

36

Let's face it - the cost of acquiring new customers can be expensive. As an independent retail
business, you'll never have the marketing budget of the big box stores and mega chains. To
survive, you need to use smart, creative, and low-cost marketingstrategies.
One thing is for certain - if you're not attracting enough customers to your retail business
now, you need to make some changes - FAST. Continuing to do the same things will only
lead to the same results. Without enough customers, the long term future of your business is
at risk.
Fortunately, there are several proven and tested retail marketing strategies that other
successful independent retailers use that you can also use in order to attract more customers.
Choose the ones that fit your type of retail business and you can increase your customer flow
and build a steady stream of customers for your business.
You can attract more customers without spending alot of money - we'll show you how.
Our retail marketing tools are easy to understand and implement, and are designed for
independent retail businesses.
They are time-tested strategies that other independent retailers and businesses have
successfully used to grow and thrive.
Use these marketing strategies and help turn your good retail store into a great
business.

THE ROLE OF MARKETING IN RETAIL

In order to evaluate the role of Marketing in the area of retail, let us first start
with some of the commonly quoted definitions of the term marketing. Philip Kotler
defines Marketing as a societal process by which individuals and groups obtain what they
need want through creating, offering and freely exchanging products and services of value
with others.

37

The American Marketing Association defines marketing as the process of

planning and executive the conception, pricing, promotion and distribution of ideas, goods
and services to create exchanges that satisfy individual and organizational goals.
For these definitions, one can draw the conclusion that marketing has to do with
providing the right product to the consumer, at the right place and time, which is largely
what retailers believe that they are doing. Therefore, what is the role that marketing can play
in a retail organization?
The role of marketing in retail organization is two-fold. The first role that
marketing can play for a retail organization is that of information the consumer that it exits.
The second role that marketing plays for the retailer is enabling it to get closer to the end
consumer.
As the industry evolves and begins to focus on creating an experience for the
end consumer, the elements of the marketing mix become increasingly important.
Technology aids the understanding of consumer needs and preferences and at the same time,
serves as the salient salesmen. Point-of-purchase (P-O-P) signage and in-store media educate
and draw the attention of the consumers towards a products availability and attributes. At a
time when most consumers want more information and when retailers have reduced staffing
levels, Retail Marketing performs a vital service and augments cost-reduction efforts.
Retail Marketing is one of the few mass advertising media that can convey the
same overall strategic message in differing languages, to varying audiences in the same
village, city or region. Todays P-O-P displays are easily assembled, maintain and, at the
same time, more powerful in entertaining and informing in the retail environment.

38

RETAIL STRATEGY AND STRUCTURE

39

Successful retail operations depend largely on two main dimensions: margin and turnover.
How far a retail enterprise can reach in margin and turnover depends essentially on the type
of business (product lines) and the style and scale of the operations. In addition the turnover
also depends upon the professional competence of the enterprise.
In a given business two retail companies may choose two different margin levels, and yet
both may be successful, provided the strategy and style of management are appropriate.

40

{A:} Margin Turnover Model:

Ronald R. Gist "Suggested a conceptual frame work, using margin and turnover, for
understanding the retail structure and evolving a retail strategy."
Margin is defined as the percentage mark tip at which the inventory in the store is sold and
turnover is the number of times the average inventory is sold in a year. Fig. 2 is a
diagrammatic representation of the frame work and can be applied to almost any type of
retail business.
Depending upon the, combination of the two parameters, a retail business will fall into one
of the four quadrants. For instance L-L signifies a position which is low on both margin and
turnover; whereas, H-L indicates high margin and low turnover.

{B:} Low Margin High Turnover Stores

Such an operation assumes that low price is the most significant determinant of customer
patronage. The stores in this category price their products below the market level. Marketing
communication focuses mainly on price. They provide very few services; if any, and they
normally entail an extra charge whenever they do. The merchandise in these stores are
generally pre-sold or self sold. This means that the customers buy the product, rather than the
store selling them.
These stores are typically located in isolated locations and usually stock a wide . range of
fast moving goods in several merchandise lines. The inventory consists of well known
brands for which a consumer pull is created by the manufacturer through national
advertising. Local promotion focuses on low price. Wal-mart in the United States is an
example and Pantaloon Chain or Subhiksha are Indian examples of such stores.

{C:} High Margin Low Turnover

This operation is based on the premise that distinctive merchandise, service and sales
approach are the most important factors for attracting customers. Stores in this category price
their products higher than those in the market, but not necessarily higher than those in
similar outlets. The focus in marketing communication is on product quality and uniqueness.
41

Merchandise is primarily sold in store and not pre-sold. These stores provide a large number
of services and sell select, categories of products. They do not stock national brands which
are nationally advertised. Typically, a store in this category is located in a down town area or
a major shopping center. Sales depends largely on salesmanship and image of the outlet.

{D:} High Margin High Turnover Stores

These stores generally stock a narrow line of products with turnover of reasonably high
frequency. They could be situated in a non commercial area but not too far from a major
thoroughfare. Their locational advantage allows them to charge a higher price. High over
head costs and, low volumes also necessitate a higher price.

{E:} Low Margin-Low Turnover Stores

Retail enterprises in this category are pushed to maintain low margins because of price wars.
Compounding this problem is the low volume of sales, which is probably a result of poor
management, unsuitable location etc. such businesses, normally get wiped out over a period
of time.

42

HYPOTHESIS

The hyper market and shopping malls are enabling to market the product throughout
the city.

An extra sale staff is major problem with this shopping malls like.

Due to the wrong selection of location they can not able to attract the middle class or
higher middle class customers.

Lack of proper advertising.

Market Competition.

Poor schemes on products to attract costumers.

Negligible impact on Mom-and-Pop stores, due to the presence of organized

retailing.

43

Company Profile

ADITYA BIRLA RETAIL LIMITED

Aditya Birla Retail Limited (ABRL) is the retail arm of Aditya Birla Group, a $41 billion
corporation. The company ventured into food and grocery retail sectors in 2007 with the
44

acquisition of Trinethra Super Retail and subsequently expanded its presence across the
country under the brand more with two formats Supermarkets and Hypermarkets.
In keeping with its motto Quality 1st, ABRL takes pride in being the first ever Indian food
and grocery retailer to receive the Food Safety Management System (FSMS) certification.
The company bagged the award for ensuring that manufacturing, storage, distribution and
sales of food adhere to the highest quality standards. The Aditya Birla Science and
Technology Centre in Taloja drives the quest for world-class quality through extensive
research and development across food and non-food categories.
Through Clubmore and its comprehensive range of brands, including power brands VOW,
Feasters and Kitchens Promise that offer unbeatable value for homemakers, the company
aims to create customers who keep on returning for more. In all, the company's family of
Clubmore members has grown to 17 million, all of whom enjoy a host of customised offers
and great savings.
ABRL follows the best industry practices in order to unlock the full potential of its staff
through its world-class learning institutes the Aditya Birla Centre for Retail Excellence
and Gyanodaya. Coupled with learning initiatives such as SPARK, Aarohan and Aarambh,
these initiatives are critical in helping their people imbibe the key characteristics of the
Quality
1st
philosophy.
Supermarkets
more Conveniently located in neighbourhoods, more supermarkets cater to the daily,
weekly and monthly shopping needs of consumers. The product offerings include a wide
range of fresh fruits and vegetables, groceries, personal care, home care, general
merchandise and a basic range of apparels. Currently, there are 489 supermarkets across the
country.
Hypermarkets
more.MEGASTORE is a one-stop shopping destination for the entire family. Besides a wide
range of products comprising fruits and vegetables, groceries, FMCG products,
more.MEGASTORE also has a strong emphasis on general merchandise, apparel, consumer
durables and IT goods. Currently, there are 19 hypermarkets across the country.
Own
Brands
more strives to delight customers through a wide range of brands that deliver high quality at
attractive prices across ready-to-eat food, beverages, tea, staples, cereals, instant mixes,
papad, pickles, apparel, footwear, household cleaning essentials, personal care and
devotional products. The power brands VOW, Kitchens Promise and Feasters deliver
world-class quality to discerning consumers. All these brands are developed in-house.

45

In addition, Own Brands across categories include selecta, Prarthana, More Choice, More
Value, Paradise, Bluearth, TRU, Bjoyzz, Karinee, Kruff Jeans Company, Berwins, Incheels,
Chatter Kids and Yo. ABRL aspires for its range of brands to be a customers most preferred
brand across product categories.
ABRLs research and development centre in Taloja, spread across 3,380 square feet,
formulates, tests and develops food as well as non-food products. Each of our brands
undergoes stringent testing for shelf life and consumer acceptance before they are made
available commercially.
Clubmore
With the strength of around 17 million members, Clubmore has gone mobile. It leverages the
power of marketing analytics to deliver meaningful and tailor-made offers to individual
customers based on their shopping history. Thus, creating loyal customers everytime.
Customer-friendly, free-to-use and completely intuitive, Clubmore is easy to understand. It
strives to be a notch above the industry standard. This is achieved with its mobile identifier
system.

THE ADITYA BIRLA GROUP: A PREMIUM GLOBAL

CORPORATION
A US $41 billion (Rs. 2,50,000 crore) corporation, the Aditya Birla Group is in
the League of Fortune 500. Anchored by an extraordinary force of over
120,000 employees, belonging to 42 nationalities. Over 50 per cent of its
revenues flow from its overseas operations spanning 36 countries.
The Aditya Birla Group has been ranked fourth in the world and first in Asia
Pacific in the Top Companies for Leaders study 2011, conducted by Aon
Hewitt, Fortune Magazine and RBL (a strategic HR and leadership Advisory
firm). The Group has topped the Nielsen's Corporate Image Monitor 2014-15
and emerged as the Number one corporate, the 'Best in Class', for the third
consecutive year.

Globally, the Aditya Birla Group is:

A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia, with the largest single location copper
smelter
No.1 in viscose staple fibre
No.1 in carbon black
The fourth-largest producer of insulators
The fifth-largest producer of acrylic fibre
46

Among the top 5 cement producers globally

Among the best energy-efficient fertiliser plants
The largest Indian MNC with manufacturing operations in the USA, wherein 95 per
cent of the workforce comprises of Americans
Aditya Birla Group The Indian Scenario

A top fashion (branded apparel) and lifestyle player

The second-largest player in viscose filament yarn
The largest producer in the chlor-alkali sector
Among the top three mobile telephony companies
A leading player in life insurance and asset management
Among the top two supermarket chains in the retail business
Aditya Birla Group Beyond Business

Reaches out annually to 7.5 million people through the Aditya Birla Centre for
Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.
Works in 5,000 villages globally.
Focuses on: health-care, education, the girl child, sustainable livelihood, women
empowerment projects, infrastructure and espousing social reform.
Runs 42 schools which provide quality education to 45,000 children. Of these 18,000
students belong to the underprivileged segment. Merit Scholarships are given to 24,000
children from the interiors.
Its 18 hospitals tend to more than a million villagers.
Ongoing education, healthcare and sustainable livelihood projects in Philippines,
Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of people out of poverty.
Set up the Aditya Birla India Centre at the London Business School.
The Aditya Birla Group transcends conventional barriers of business because we care. We
believe it is our duty to facilitate inclusive growth as well.

Company Philosophy
Purpose of Corporate Philosophy
An effective corporate philosophy helps a company develop a certain corporate culture,
ethical practices and strengthens the relationship between employers and employees. It also
positions the values of the company in the minds of others both within and outside of the
organization. Your corporate philosophy should give employees a starting point for the
decision-making process, so they are all operating on the same page. Developing a corporate
47

philosophy gives you something against which you can compare candidates for new
positions, thereby helping you make hiring decisions based on whether an individual will fit
within your corporate culture.
Creating a Corporate Philosophy
One of the first things to consider when creating a corporate philosophy is the purpose of
your business. A companys philosophy can contain similar verbiage as a companys mission
statement, but in more detail. For example, the mission statement of a major search engine
company is, To organize the world's information and make it universally accessible and
useful." A portion of that companys corporate philosophy includes the statement, We do
search. With one of the worlds largest research groups focused exclusively on solving
search problems, we know what we do well, and how we could do it better. By reading
these and other similar statements in its corporate philosophy, you can ascertain its mission.
Corporate Philosophy Benefits
Small businesses benefit greatly from developing a corporate philosophy. A primary benefit
of a corporate philosophy is that it helps to build long-lasting, trusting relationships between
your business and clients. You should implement your corporate philosophy within every
level of your company, which allows customers to trust that they will receive the same
professional treatment throughout the organization. A corporate philosophy also builds
consistency between your employees. When employees are familiar with the companys
philosophy, it makes the integration of new hires easier and helps current employees
embrace changes within the
company that follow the corporate philosophy. Another benefit of a corporate philosophy is
that it can possibly give your company a competitive advantage because you possess a clear
vision of how you want customers and competitors to perceive your business.

48

Company history And Milestone

In 1770, Louis Steigenberger moved from Frankfurt to London to
sell a Prussian blue colour, which was made using his own formula. He then changed his
name to Lewis Berger and by 1870 Berger Paints was selling 19 different pigments,
including black lead, sulphur, sealing wax and mustard. After the demise of Lewis Berger his
sons took over the business. Sherwin-Williams, an American company bought control of the
company in the 1900s. By the 1940s Mr. Hadfield set up Hadfield's (India) Ltd., a small
paint company in Kolkata on 17 December 1923. Towards the end of 1947, British Paints
acquired Hadfield's (India) Ltd and thus British Paints (India) Ltd was incorporated in the
State of West Bengal. In 1951, sales offices were opened in Delhi and Mumbai and a depot
was started in Guwahati. This resulted in sales rising to Rs. 6 million in 1952. In 1969
Berger, Jenson Nicholson Limited, UK bought British Paints (India)
From 1973 the company entered into one of its dynamic phases of business with introduction
of new generation products in the industrial, marine and decorative segments under the able
leadership of it first Indian Managing Director Mr. Dongargaokar Madhukar.
Year 1976 was another turning point in the history of the company when the foreign holding
in the company was diluted to below 40% by sale of a portion of the shares to the UB Group
controlled by Mr. Vittal Mallya. The reins of the company were taken over by Mr. Biji K
Kurien as its Chief Executive & Managing Director in the year 1980. Finally in the year
1983, the British Paints (India) Limited, changed its name to Berger Paints India Limited.
The entire 80s & 90s saw the lunch of many new products from company's stable such as
premium emulsions and high quality acrylic distempers. The COLOUR BANK tinting
system was launched through which the consumer could select from a range of over 5000
shades.
Again the fortunes of the company changed hands in 1991 with UB Group's stake in the
company bought over by the Delhi based Dhingra brothers, Mr. K.S.Dhingra & Mr.
49

G.S.Dhingra and their associates of the UK Paints Group. Presently Dhingras' control a
majority stake of almost 73% in Berger Paints India Limited, which is a professionally
managed organization, headquartered in Kolkata, with the stewardship resting since 1994
until 2012 with the Managing Director Mr. Subir Bose. The current managing director of
Berger Paints India Ltd is Mr. Abhijit Roy.

Company Background
Established in 17th December, 1923, the company then known as Hadfiled's (India) Limited;
was a small paint company based in Kolkata having its only manufacturing facility at
Howrah, West Bengal to produce ready mixed stiff paints, varnishes and distempers. Post
independence, towards the end of 1947, British Paints (Holdings) Limited, U.K acquired
Hadfield's (India) Limited and thus British Paints (India) Limited was incorporated.
From a production capacity of 150 tonnes and sales turnover of around Rs. 25 lakhs in 1947,
the company has come a long way to become at one point of time; a part of the worldwide
BERGER group in 1983 and thereby acquiring its present name Berger Paints India Limited
to having subsequently gone through further ups & downs as well as ownership changes to
gain its present status wherein the majority stake is with Delhi based Dhingra brothers and
business revenue more than Rs 2400 crs.
Today Berger Paints India Limited, having solely used and developed the name and
trademark BERGER and all its variants in India, is a household name in paint. With Head
Office in Kolkata the company manufactures and markets a range of decorative & industrial
paint products under various product brands and has it operations spread throughout the
length & breath of the country; with seven manufacturing facilities in India and more than 85
depots, several regional & area offices, besides four facilities overseas. It has a workforce of
over 2500 employees and a countrywide distribution network of 15000 plus dealers.
Berger Paints has clearly demonstrated its commitment to Indian consumers for over 88
years, by offering its varied range of high performing quality products backed by highest
level of customer service. Company's high ethical standards in business dealings and its on50

going efforts in community welfare make Berger Paints India Limited a responsible
corporate citizen. While the company's decorative and Industrial paints continue to gain an
increasing market share, Berger as an organization has managed to achieve sustainable
competitive advantage through innovations in all spear of business, desire to excel and by
creating a winning culture & abiding faith in its values & philosophy among all its
stakeholders.With Berger Paints we can now see your imagination of colour unfurl in front
of your eyes and watch your home come alive, telling a thousand tales.
Transform our home with the POWER OF IMAGINATION

Landmark Projects

The Calcutta Club was set up in 1907 in

response to the discriminatory practices of
the Bengal Club which admitted only white
members. Today, it is not just popular but
also one of the most prestigious clubs in the
city. A membership to the club is so coveted
and the list of prospective members
believed to be so large, that it takes over a
year before the screening committee finds
time to consider the suitability of an
applicant.
A high rise condominium spread over five
acres, Teen Kanya overlooks Lake
Nucifera. The three towers, 16 storied each,
arranged in a semi circle overlook the 100
acre water body. Plenty of natural light,
perfect cross ventilation and a whole host of
state-of-the-art amenities make the flats of
Teen Kanya, in Action Area II of Rajarhat,
perfect for living. Living here is like living
in the heart of nature with all the modern
facilities you can dream of.

51

Rs. 275 crore was poured into making the

mall and the five-star hotel of City Centre II
a multi-utility urban infrastructure
project. The project, which took three years
to get completed, is built on five acres of
land. City Centre II, at Rajarhat is just 3 km
from the Netaji Subhash Chandra Bose
International Airport. It has been designed
to give a boost to the hotel business while
the mall caters to the people of north
Kolkata largely.

In 1994 as a development and maintenance

services arm of The Dun & Bradstreet
Corporation and Satyam Computers and
Services Ltd., blossomed into an
independent organization called Cognizant
in a matter of two years. One of the first IT
services companies with key industry
verticals as well as technology horizontals.
Gold Souk Grande is a large format multispecialty mall in Chennai. The Rs. 250
crore project is spread across 8 lakh sq. ft.
The mall which will be fully operational by
the third quarter of 2010 will have a
hypermarket, food court, anchor stores and
a multiplex. Like all malls it house stores
offering lifestyle products, accessories,
electronics, footwear, cosmetics and more.
The T .A Pai Management Institute
(TAPMI) located in the international
university town of Manipal (Karnataka), is
among the leading management institutes in
India, and is reputed for its academic rigour
and faculty-student interaction. Founded by
the visionary, Late Shri. T.A. Pai, TAPMIs
mission is to provide much needed impetus
to the task of building professional
management capability in the country. In
the process, it has also played a role in
strengthening the existing educational and
health infrastructure of Manipal.
52

The land on which Mantri Greens is built

was once Royal property belonging to none
other than The Maharajah of Mysore. Not
only that, the title document bears the
signature of world renowned engineer and
Statesman - The Dewan of Mysore, Sir M.
Visvesvaraya. The authenticity of this title
has stood intact for more than 110 years.
Now, it is a place where you and your
family's can enjoy the rich and scenic
nature for a lifetime.

53

Bergers Presence in India

Bergers Presence All Over The World

Apart from operations in Russia, with a production facility at the Berger manufacturing unit at
54

Krasnodar, Berger has also expanded its footprint in Nepal by setting up a second unit. Today
Bergers sister company in Bangladesh is the dominant leader with 65% market share. In keeping
with the companys dynamic growth plan, Berger has also acquired Bolix SA of Poland, a leading
provider of External Insulation Finishing System (EIFS) in Eastern Europe. As Berger continues to
grow internationally, it also continues to be the second largest paint company in India. Berger is
the lone supplier of Nuclear Power Plants with its Protective Coatings. The automotive sectors, be
it cars or bikes, is primarily ruled by Bergers automotive coatings. Luxury cars including
Mercedes make use of Berger products. Companies like Nokia uses
Bergers services as well. Berger has tied up with Becker of Sweden to manufacture coil
coatings for steel surfaces

Marketing Mix in relation to Berger Paints

Marketing decisions fall into four main controllable categories namely
Product
Place
Price
Promotion
Relating these factors with respect to Berger Paints
Product :Berger is committed to offer quality products that satisfy consumers ultimate desires from paints
with the help of state-ofart technology. Berger always believes in one step ahead in offering new
product to create more value for customers money. Berger outsmarts other competitors of the
market through its one step in advance policy and innovative market offers. Berger is trying to fill
up all holes of the market through offering a wide range of products to meet the needs (Premium to
Economy Paints) of different types of users and to solve the different types of functional
requirements (Industrial, Decorative & Marine). Due to shift in market growth trends Berger is
55

trying to establish itself in the economy segment of the paint market.

Place :Another major component of marketing mix is place. During our visit at BERGER I was
able to include inventory, transportation, coverage, channel, logistics and market and market
segments etc. under these marketing mix components.
Differentiated market segment
Bergers market segments are differentiated. They use different types of marketing mix for
different segments. Their product quality, advertisement, promotional techniques, price are high
for upper class customers. Again for the people of middle class on the basis of their income,

occupation, taste, lifestyle different marketing policies are applied. We can observe this deviation
in TV advertisement.
Inventory
BERGER has divided their products in A,B,C category. For inventorying their products BERGER
is following some storing norms. Depending on this storing norms company decides how long
their product will stay in the market in accordance with the existing sales trend of that particular
product. This is how the firm can determine when to order and how much to order.
Transportation
To ensure customer satisfaction BERGER uses modern and fastest going covered van as
transportation carrier while moving goods from depots to dealers. But when they move goods from
factory to depots they uses public transportation carriers such as truck and railway as rental basis.
Distribution network
With Head Office in Kolkata the company manufactures and markets a range of decorative &
industrial paint products under various product brands and has it operations spread throughout the
length & breath of the country; with seven manufacturing facilities in India and more than 85
56

depots, several regional & area offices, besides four facilities overseas. It has a workforce of over
2500 employees and a countrywide distribution network of 15000 plus dealers. The orders are
collected by the sales executives and passed on to the nearest depot. The depots are fed by regional
warehouses. These depots maintain a minimum order quantity which is arrived at from the
monthly demand forecast. The material is dispatched from the depot in the name of the dealer.
Generally some orders of the same region are clubbed together and dispatched in trucks. Finally
the truck is unloaded and the small orders of the dealers are dispatched to them.

Manufacturing Unit

Depot

Dealer

Manufacturing Unit

Dealer

Depot

Depot

Depot

Deal
er

Manufacturing Unit

Dealer

57

Deale
r

Depot

Dealer

Deale
r

BERGER
Feedback

Pr
o
d
u

Feedback

DEPORTS

DIRECT
DEALERS

Pr
o
d
u

CUSTOM
ER

RETAIL

Feed back

Feed back

CUSTOM
ER

DIRECT
CHANNEL

RETAIL

CUSTOM
ER

BERGER

DIRECT
CHANNEL

DIRECT
DEALER

58

CUSTOM
ER

Price :In the paints industry price is the used only as a differentiator between the various segments
in the same product line. The prices of different brands in the same segment remain more or
less similar, with just a difference of 30 to 40 paise per square feet. Some of the speciality
products, which are not produced by all brands, may be priced at a higher price.
Pricing decisions in the paint industry largely depend on the price of the inputs like petro
products, other raw materials, excise duties and taxes and the general operating profits.
Generally increase or decrease of prices is effected across all brands in the market. Most of
the paint companies offer a 5% margin to the dealer. Due to internal competition, the dealers
pass on this advantage to the customers by reducing their own margins to 2-3%. This is a
cause of concern for the paint companies because they have to keep a constant check on the
prices offered in the market. The dealers offer more of discounts and the companies are not
able to firm up the prices. Paint companies offer a lot of discounts like cash discounts,
volume discounts, seasonal discounts and allowances. The dealers take advantage of these
discounts to gather more business.

Promotion:The paint industry until 1999 was concentrated mostly on increasing sales by intensive trade
promotion wherein the dealers, contractors and other components of the supply chain. There
was little emphasis on theme advertising directed towards the customer. A recent trend that
is emerging in the Indian paint market is that the major brands have all identified the
importance of reaching out to the common man instead of just limiting themselves to the
intermediaries. Advertising strategy: BERGER follows different strategy for developing its
strategy. It depends on some characteristics that is product life time, brand etc. Media:
Berger used different media for advertising like- on-air advertisement, television, newspaper,
magazines. The dealers are educated with the company background, products and service etc
59

The time to time selling incentive are given by company according to performance of dealer
and market demand. In-Store Displays: Point-of-Purchase, Berger paints Banners,
Demonstrations of color on wall, etc are provided by the company. Temporary Price
Reduction (TPR): They get margins plus some incentives promotion scheme to maintain the
dealer. Contests: Dealer to dealer contest is kept to promote push strategy and best dealer
gets the reward. Berger paints likes to do the same within same geographic areas. Sampling:
Allowing the dealer to experience the product or service by providing free samples so as he
can promote word of mouth. Bergers sales promotion consists of short-term incentives to
encourage the purchase of sale of a product or services. Berger Paints advertising has
created brand awareness, highlighted what the brand has to offer and has consistently
brought all of it top-of-the-mind for the customer. But the outreach effort does not end there.
Berger Paints has recognized the importance of communicating to and involving key players
who influence the final brand choice. These include channel partners, contractors and
painters, on whom Berger Paints focuses by initiating and developing innovative activities
and promotions. This helps build the Berger Paints family so that customers get a high
degree of personalized service and professional guidance to facilitate their final decision.
Sales Promotion:
Sales Promotion is an important component of marketing communications mix. It adds an
extra value to the product and hence prompts the dealer or consumer to buy the product. In a
specific
sense, sales promotion includes those sales activities that supplement both personal selling
and advertising, and coordinate them and make them effective, such as displays, shows,
demonstrations and other non-recurrent selling efforts not in the ordinary routine.

60

Sales promotion can be used:

For facilitating introduction of new products

For overcoming unique competitive situation

For unloading accumulated inventory

For overcoming seasonal slumps

For getting new accounts

For retrieving lost accounts

As a support and supplement to the advertising effort

As a support and supplement to the salesmens effort

For persuading salesmen to sell the full line of product

For persuading the dealer to buy more or increase the size of order

Commonly Used Tools and Techniques of Sales Promotion:

Demonstrations

Trade Fairs and Exhibition

Coupons, Premiums, Free offers, Price-offs, etc

Free samples

Joint promotion

Contests (consumer contests, dealer contests)

Merchandising or Display

Sales promotion on the internet

The company has been concentrating more on sales promotion than on advertising. On
analyzing the customer survey data it becomes evident that since the customer is returning to
the store after an average of about three years it is better to concentrate more on the dealers
who are in the business throughout the year. Keeping this in mind the companys decision of
doing more sales promotion than advertising stands justified. Sales promotion can broadly be
divided into two categories:
61

1) Customer promotion
this section includes all the sales promotion activities directed towards the
customers. Scratch cards that are provided with specific size of packages are
examples. The company comes out with many different sales promotion schemes
during the festival season, especially the durga puja festival in Orissa and West
Bengal. There are a number of gifts and schemes on the larger packs. Coupons and
free gifts are offered on packs of more than 10 kgs. The company also offers a large
number of services to the customers to assist them in their
buying decisions. These services are offered on the companys website to make it accessible
to a very wide range of customers.
2) Trade promotion
As part of the companys policy, huge emphasis is given on trade promotion. The
dealers and contractors who are a part of the distribution chain are given special
attention. The company comes up with several incentive schemes for the dealers. The
most popular schemes include cash discounts, foreign trips and gifts such as
refrigerators etc for dealers who succeed in meeting or exceeding pre-determined
sales targets. The company also organizes regional dealer meets regularly. Here the
dealers are briefed about the companys new products and the technical details and
application procedures of these products. The company also aims at building and
retaining dealer loyalty through these meetings.

62

Vision
To be the most admired Indian paint and coating solutions company with
globally recognised competencies.
Despite many challenges, Berger Paints has succeeded in staying at the forefront of Indias
paint industry. Innovation and technological development has enabled the company to
achieve corporate success through its commitment to provide products of the highest quality
and ensuring the ultimate satisfaction of customers.
The companys employees are constantly encouraged to pursue the Corporate Mission
Statement:

Mission
To maximise shareholder value by developing and delivering innovative and best solutions
for our customers, consistently outperforming our peers and providing a dynamic and
challenging work environment for our employees. We will lead by innovative ideas and
technological development in the paints and associated products in India ensuring efficient
utilization of resources yielding high returns.
We will ensure highest level of commitment to achieve best quality products and services.
We will vigorously promote and safeguard the interests of employees, shareholders, business
associates & all other stakeholders.
We will act as a good corporate citizen ensuring service towards community and shall focus
on environment, health and safety.

Board of Directors

Mr. Kuldip Singh Dhingra (Chairman)

Mr. Gurbachan Singh Dhingra (Vice-Chairman)
Mr. Abhijit Roy (Managing Director)
Mr. Subir Bose (member in the Board of the Company.)
Mr. Anil Bhalla
63

Mr. Gerald Kenneth Adams

Mr. Gurcharan Das
Mr. Kamal Ranjan Das
Mr. Pulak Chandan Prasad
Mr. Srijit Dasgupta
Mrs. Rishma Kaur
Mr. Kanwardeep Singh Dhingra

KEY EXECUTIVES OF BERGER PAINTS INDIA LTD.

Mr. Kuldip Singh Dhingra is the Chairman

of the Board of Directors. He has been a
Director of the Company since 1991. Mr.
Dhingra is a Science Graduate from Hindu
College, Delhi University. He is a Promoter
of the Company, is an Industrialist with long
standing experience in paints and related
industries. He is the fourth generation of his
family which has been continuously in the
Paint business since 1898.

Mr. Kuldip Singh Dhingra

Chairman
( Chairman)

64

Mr. Gurbachan Singh Dhingra is

the Vice-Chairman of the Board of
Directors. He has been a Director
of the Company since 1993. Mr.
Dhingra is a graduate, an
Industrialist, a Promoter of the
Company and has considerable
experience in the paint industry,
especially in its technical aspects.
He is the fourth generation of his
family which has been
continuously in the Paint business
since 1898.

Mr. Gurbachan Singh Dhingra

Vice-Chairman

Born on 12th July, 1965, he graduated

in Mechanical Engineering from
Jadavpur University, Kolkata and then
completed his post graduation in
Business Administration from the
Indian Institute of Management,
Bangalore. He started his career with
Asian Paints Limited & prior to joining
Berger was associated with L'oreal. He
was appointed as the Managing
Director with effect from 1st July,
2012.

Mr. Abhijit Roy

Managing Director & CEO

65

Management Team

Born on 12th July, 1965, he graduated

in Mechanical Engineering from
Jadavpur University, Kolkata and then
completed his post graduation in
Business Administration from the
Indian Institute of Management,
Bangalore. He started his career with
Asian Paints Limited & prior to joining
Berger was associated with L'oreal. He
was appointed as the Managing
Director with effect from 1st July, 2012.
Mr. Abhijit Roy
Managing Director & CEO

Mr. Dasgupta is a B.Sc (Hons) from

Calcutta University, AICWA from
Institute of Cost & Works Accountants
of India & Company Secretary from
Institute of Company Secretaries of
India having over 29 years of work
experience. He started his career with
Machinery Manufacturers Corporation
Limited and prior to joining Berger was
associated with the same organization.
Mr. Srijit Dasgupta
Director, Finance
66

Mr. Aniruddha Sen

Mr. Sen is a B.Sc (Hons) from Calcutta

University, Diploma in Management
from IGNOU, Delhi, AICWA from
Institute of Cost & Works Accountants of
India & Company Secretary from
Institute of Company Secretaries of India
having over 30 years of work experience.
He started his career with Indian
Aluminium Company Limited and prior
to joining Berger he was associated with
the same organization.

Sr. Vice President & Company

Secretary

Mr. Bera is a B.Sc (Hons) & M.Sc

(Chemistry) from Ranchi University
having over 36 years of work
experience. He started his career with
C.S.I.R and prior to joining Berger he
was associated with the same
organization in Regional Engineering
College, Durgapur.
Mr. Bhabesh Bera
Sr. Vice President R & D

67

PRODUCTS

Interior Wall Coatings

Exterior Wall Coatings
Berger Metal & Wood Paints
Protective Coating
Undercoats
Construction Chemicals
Express Painting

INTERIOR COLLECTION
Silk Luxury Emulsion

EXTERIOR COLLECTION
Weather Coat All Guard
68

 Breathe Easy Emulsion

Rangoli Total Care

Weather Coat Smooth

Walmasta Kool and Seal

Bison Arcrylic Emulsion

ENAMELS

Breathe Easy
Luxol Satin
Luxol Lustre
Luxol Hi-Gloss

WOOD FINISH

Polyurethene Finish
Melamine
WoodKeeper

TEXTURES
Tartaruga Hi-Build
Tartaruga
Illusion Exterior Texture

Berger paints Competitors

69

Since its foundation in 1942, Asian Paints has come a long way to
become Indias largest and Asias second largest paint company, with a turnover of Rs.
155.34 billion. We operate in 19 countries and have 26 paint manufacturing facilities in the
world, servicing consumers in over 65 countries.

all great things start small

History
The company has come a long way since its small beginnings in 1942. It was set
up as a partnership firm by four friends who were willing to take on the world's biggest, most
famous paint companies operating in India at that time. Over the course of 25 years, Asian
Paints became a corporate force and India's leading paints company. Driven by its strong
consumer-focus and innovative spirit, the company has been the market leader in paints since
1967. Today, it is double the size of any other paint company in India. Asian Paints
manufactures a wide range of paints for decorative and industrial use.

70

Shalimar Paints is an Indian paints manufacturing

company. The company is engaged in manufacturing and marketing of decorative paints and
industrial coatings. Some of Indias iconic buildings and structures such as the Howrah
Bridge, Rashtrapati Bhawan, Salt Lake Stadium, All India Institute of Medical Sciences, and
many others, continue to be painted with Shalimar Paints.

History
It can be said that the history of Shalimar Paints is the history of the paints
industry in India and also in South East Asia. Shalimar Paints was founded in 1902 by two
British entrepreneurs AN Turner and AC Wright as Shalimar Paints Colour & Varnish Ltd. In
the same year, the company set up a large scale manufacturing plant in Howrah, West
Bengal, the first such plant in entire South East Asia. In 1928, Pinchin Johnson & Associates
of UK bought control from the British entrepreneurs AN Turner and AC Wright. In 1963, the
company's name was changed to Shalimar Paints Ltd. after Turner Morisson & Co stepped in
as new management.
With access to high-end technology, the company introduced many firsts in the industrial
coatings segment such as high build zinc coatings, radiation resistant coatings for nuclear
power plants, polyurethane paint for fighter aircraft and railway coaches, among others.
Shalimar was the first company to paint a fighter aircraft for the Indian Army.
In 1972 Shalimar went public and in 1989, the company was acquired by the O.P. Jindal
Group and the Hong-Kong based S.S. Jhunjhnuwala Group. From May2015 affair of the
company are managed by Mr. Surender Bhatia as whole time directo

71

Kansai Nerolac Paints Ltd (formerly known as

Goodlass Nerolac Paints Ltd) is the largest industrial paint and second largest decorative
paint company of India based in Mumbai. It is a subsidiary of Kansai Paint of Japan.It is
engaged in the industrial, automotive and powder coating business. It develops and supplies
paint systems used on the finishing lines of electrical components, cycle, material handling
equipment, bus bodies, containers and furniture industries

Parent Company
Kansai Paint was founded by Katsujiro Iwai in Amagasaki City, Japan in May 1918. Kansai
Paint is a comprehensive manufacturer of paints and coatings. The Products includeAutomotive Coatings, Industrial coatings, Decorative coatings, Protective coatings and
Marine Coatings. They are also present in U.K., Turkey, U.S.A, Canada, Mexico, UAE.

Company Overview
Kansai Nerolac Paints has 4 paint manufacturing plants and about 67 contract
manufacturers. The Nerolac owned plants are at
1. Jainpur (Uttar Pradesh)
2. Bawal (Haryana)
3. Lote, Chiplun (Maharashtra)
4. Hosur (Tamil Nadu)
Kansai Nerolac Paints Ltd. has entered into many technical collaborations with other
industry leaders such as E.I. Du-products.
The Mumbai-based company is the leader in the industrial paints segment with a market
share of over 40%. It is the third-largest player in the decorative paints segment with a

72

modest market share of 13%. Nearly 75% of the Indian paints industry consists of the
decorative segment

Dulux is an internationally available brand of

architectural paint. It is produced by AkzoNobel (formerly Imperial Chemical Industries)
although the US markets are now served by PPG. The brand name Dulux has been used by
both ICI and DuPont since 1931 and was one of the first alkyd-based paints.

History
In the early days of its existence, decorators and their suppliers were the main customers for
Dulux, with Say Dulux to your decorator used as an advertising slogan in the 1950s. By
1953, Dulux was available in the retail market and ten years later the famous Old English
Sheepdog was used in advertisements, to the point where "Dulux dog" has become a
common nickname for the breed.
The name Dulux is derived from the words DuPont and Luxury.

In 2010, alongside Dulux Valentine, Coral and Marshall, Dulux launched the 'Let's Colour
Project a global marketing campaign featuring the painting of public spaces with bright
colours.

Dulux Trade Contract Partnership

Dulux Trade Contract Partnership is a scheme for independently assessed, quality assured
contractors. Dulux Trade Contract Partners undergo regular site visits by independent
scheme assessors to monitor standards and to identify opportunities for improvement.

73

The history of Acro Paints goes back over 50

years
Acro brands represent product excellence and customer satisfaction. The products are market
leader in their respective fields. The range includes Silicon acrylic emulsions, Acrylic
emulsions for interiors and exteriors, Range of Italian Designer Finishes, World Class
Textured Wall Finishes, Premium Cement paints, Range of High performance and
Specialized coatings, World standard Construction chemicals, Water proofing systems,
Concrete additives and admixtures, etc.
The manufacturing plants have state of art facilities with one of the largest production
capacities. The In-house R&D unit has highly advanced facilities to adapt and assimilate
latest technology into the product range. This has enabled export of products amidst stiff
international competition. Acro Paints meets the statutory international regulations of Quality
Management Systems and is an ISO 9001:2000 certified company.
Acro Products are marketed countrywide through a network of C&Fs, Distributors, Stockist
and Dealers facilitating a closer reach to its valued customers. The company is first to
introduce latest Ceramised granites, Rock finishes, Renaissance art as are most popular the
world over.
Acro Paints aims to provide complete solutions to House owner, Builders, Decorators,
Architects, Engineers for their requirements for building protection and maintenance. It has

74

now introduced rapid drying Surfacing polyplasters, Insulation paints, Hygiene Coatings,
Stucco finishes, Faux coatings, etc.

E. I. du Pont de Nemours and Company, commonly

referred to as DuPont, is an American conglomerate that was founded in July 1802 as a
gunpowder mill by French leuthre Irne du Pont.
In the 20th century, DuPont developed many polymers such as Vespel, neoprene, nylon,
Corian, Teflon, Mylar, Kevlar, Zemdrain, M5 fiber, Nomex, Tyvek, Sorona, Corfam, and
Lycra. DuPont developed Freon (chlorofluorocarbons) for the refrigerant industry, and later
more environmentally friendly refrigerants. It also developed synthetic pigments and paints
including ChromaFlair.
In 2014, DuPont was the world's fourth largest chemical company based on market
capitalization and eighth based on revenue. Its stock price is a component of the Dow Jones
Industrial Average.

History
DuPont was founded in 1802 by leuthre Irne du Pont, using capital raised in France and
gunpowder machinery imported from France. The company was started at the Eleutherian
Mills, on the Brandywine Creek, near Wilmington, Delaware, two years after he and his
family left France to escape the French Revolution. It began as a manufacturer of
gunpowder, as du Pont noticed that the industry in North America was lagging behind
Europe. The company grew quickly, and by the mid-19th century had become the largest
supplier of gunpowder to the United States military, supplying half the powder used by the
Union Army during the American Civil War. The Eleutherian Mills site is now a museum
and a National Historic Landmark.
75

SWOT Analysis

Strengths:a. Berger Paints has excellent brand perception and brand awareness amongst its
potential customers.
b. It provides with high quality products and has very high market space both in terms
of visibility and sales.
c. With nearly one-fifth market share and is ranked 2nd in India.
d. Its industrial and automotive coating is used by the best automobile companies like
Mercedes.

Weakness:a. Dependence on Decorative Segment where competition is intense.

b. High levels of lead found leading to negative publicity.
c. Limited liquidity options.

Opportunities:a. New product launches and innovation with changing trends.

b. Strong growth potential in Indian owing to urbanization.
c. Business diversification.
d. Product diversification.

Threats:a. New entrants in the industry and local companies.

b. Fluctuations in raw material prices.
c. Stiff competition.

76

Promotional Strategies of Berger Paints

a. Inspire creativity
b. Continue to run business business as best in class, with customer (painter)
c. satisfaction as the ultimate goal.
d. To use the strong cash flows to improve returns to the shareholders.
e. Reaffirm our commitment to highest level of integrity and professionalism
f. throughout our business.

g.

Continuous innovation to stay ahead of the curve and seize growth opportunities.

77

Part II

78

OBJECTIVES AND SCOPE OF STUDY

Objectives
The main objectives of the study is listed below :

To find the preference and choices of contractors regarding the different paint brands.

To collect appropriate contractor identification (address proof, passport size photo).

To survey the total purchase of different kinds of paints by the contractors.

To survey the market potential of the company.

To survey a new avenue of customers i.e the interior decorators and architects about

their choices and preferences of different paint brands, who were previously not a part of
Berger Paints target customers.

A qualitative analysis of the impact of the advertisements of Berger Paints on the

customers.

Scope of Study
The main scopes of the study is listed below :

It gives us information about the various categories of the contractors on the basis of

their total purchase.

It gives us information about the proportion of dedicated Berger Paints contractors.

79

It shows the market share of Berger Paints with respect to its contractors.
It gives the information regarding the preference and choices of the different
contractors.

The study also gives information regarding a new market segment i.e the interior

decorators and architects which was not previously the target of Berger Paints about their
tastes and preference of brands and their needs and expectations from the paint industry.

It gives us information that how much effective the advertisements of

Berger Paints are as a promotional strategy with respect to its competitors.

This study can be used by the company to convert more dealers into

dedicated Berger Paints customers.

Analyses the requirements of the alternate channels and devise strategies

of market penetration.
Make a quantitative research and analysis of the effectiveness of its sales
force.

Limitations

Survey area was confined to Moradabad & Bijnor.

Survey was totally confined with small dealers and no builder was contacted.
Time span was limited to 1 month.
Questions were mostly open ended.
There was less scope of feedback from end customers.

80

PROJECT
METHODOLOGY

Research Objective

81

The prime objective of this study was to analyse the taste and preference of the existing
contractors of Berger Paints, their contribution to the sales volume and their expectations
from the company. Secondly, investigating a new avenue of customers i.e the interior
decorators and architects and getting information about their tastes and preferences so that
they can be converted into customers of Berger Paints. And thirdly, analyzing the
advertisements of berger paints and comparing with those of its competitors.

Research Design

Contractor and Interior Decorator analysis : Descriptive research design

Advertisement Analysis : Exploratory research design

Data

Primary Data : Primary data collected by interviewing the contractors and interior

decorators.

Secondary Data : Web based data are used as secondary data

Research Instrument
82

Two different sets of questionnaire one for the contractors and the other for the interior
decorators and architects were used. Most of the questions were open ended.

Research Tool
Many statistical tools like,

Bar Charts

Pie Charts

Chi Square Analysis

ANOVA

Have been used in this research to derive the conclusion

Sample Size:
100 random samples were taken to identify the paints Markets future in India.

Sample Type:
Convenience sampling was adopted to select respondents.

Duration of Project:
15th June 2015 to 10th August 2015

The sources of the Data Collection are as follows

The study relies to a great extent on primary data and to some extent on secondary data:
Primary Data: Questionnaire
Observation
Secondary Data:-

83

Information is collected through internet from various text books, journals and
magazines.

TOOLS AND TECHNIQUES

Marketing research tools:
Survey
Questionnaire
Statistical tools:
1) Pie Chart
2) Bar chart

84

Part III

DATA ANALYSIS AND

INTERPRETATION

85

Know Your Contractors

Interior Paints

Purchase (Rs Lakhs)

No. Of

Cumulativ

Contractors
0-1
1-2

19
10
86

e%
29.69%
45.31%

2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10-above

12
3
8
5
1
2
0
2
2

64.06%
68.75%
81.25%
89.06%
90.63%
93.75%
93.75%
96.88%
100.00%

Interpretation

Maximum number of contractors purchases interior paints of value between 0 to 5

lakhs yearly.
Very few contractors i.e only 12.5% purchases interior paints of value between 6 to

10 lakhs.
There are only few well to do contractors i.e roughly 3% who have a purchase
capacity above 10 lakhs.

Exterior Paints

Purchase (Rs
Lakhs)
0-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10-above

No. Of
Contractors
16
12
10
7
7
1
3
1
2
2
4

87

Cumulative %
24.62%
43.08%
58.46%
69.23%
80.00%
81.54%
86.15%
87.69%
90.77%
93.85%
100.00%

Exterior Paints
Frequency

Cumulative %

16

12
10
7

7
4

3
1

Interpretation

Most of the contractors i.e around 80% have their annual purchase between 0 to 5

lakhs.
Very few contractors i.e around 10% are well to do having their purchase above 9 or
10 lakhs.

Damp Proof
Purchase (Rs)

No Of

Cumulative %

Contractors
0-20000
20000-40000
40000-60000
60000-80000
80000-above

14
4
1
1
3

88

60.87%
78.26%
82.61%
86.96%
100.00%

Damp Proof
Frequency

Cumulative %

14

3
1

Interpretation

Roughly 70% of the contractors make their annual damp proof purchase within Rs

40,000.
Very few i.e near about 15% of the contractors have their annual purchase above Rs

80,000.
Total sales of damp proof of Berger Paints are comparatively less with respect to the
sales of interior and exterior paints.

Roof Treatment

Bin
0-20000
20000-40000
40000-60000
60000-80000
80000-Above

Frequency
9
0
3
0
4

89

Cumulative %
56.25%
56.25%
75.00%
75.00%
100.00%

Roof Treatment
Frequency

Cumulative %

Interpretation

Very few contractors use roof treatment materials of Berger Paints i.e out of a sample

of 60 only 16 contactors (roughly 26%) .

Maximum contractors i.e 56.25% make annual purchase of roof treatment materials

within Rs 20,000.
Only a few contractors i.e 25% have their annual purchase of roof treatment above
Rs 80,000.

Wood Finish

Purchase in Rs
0-20000
20000-40000
40000-60000
60000-80000
80000-Above

No Of
Contractors
14
5
10
1
1

90

Cumulative %
45.16%
61.29%
93.55%
96.77%
100.00%

Wood Finish
Frequency

Cumulative %
20

14

5
1

Interpretation

Major section of the contractors i.e 93% makes their purchase within Rs 60,000.
Purchase of wood finish materials of Berger Paints is comparatively less, the highest

annual purchase lying within a range of Rs 1,00,000.

Out of all the respondents only half of them use wood finish materials of Berger
Paints.

Category Distribution

Category

Frequency

A
B
C

53
10
1

91

Category Distribution Of Contractors

A

16%

2%

83%

The contractors have been divided into categories on the basis of their total annual purchase
of different types of paints. There is mainly three categories :Category C below Rs 2,00,000
Category B between Rs 2,00,000 and Rs 5,00,000
Category A above Rs 5,00,000

Interpretation

According to the analysis 83% , 16% and 1% of the contractors fall in the categories

A, B and C respectively.
Major section of the contractors have an annual purchase of above Rs 5,00,000.

Contractors Distribution
Type

Frequen
cy

dedicated berger contractors

30

others

35

92

Contractors Distribution
dedicated berger contractors

others

46%

54%

Interpretation

According to the analysis it can be seen that 46% of the respondent contractors are

dedicatedly using Berger Paints products .

The remaining 54% respondent contractors are not fully using Berger Paints
products. Their choice differ on the basis of their preference or preference of their
customers i.e the householders.

Market Share Of Individual Paint Category Of Berger Paints

INTERI
OR

EXTERIOR
PAINT(RS)

DAMP
PROOF(RS)

PAINT(RS
)
2367200

20730000

940000

ROOF

WOOD

TREATMENT(

FINISH

RS)

(RS)

2650000

106000
0

93

Market Share Of Each Paint Category (Berger Paints)

5% 2%
EXTERIOR2%
PAINT(RS)

INTERIOR PAINT(RS)

DAMP PROOF(RS)

ROOF TREATMENT(RS)

48%
42%

WOOD FINISH (RS)

Interpretation
From the above analysis it can be interpreted that 90% of the total revenue comes from the
sale of paints both interior and exterior. The remaining 10% comprises of the construction
chemicals and wood finish materials. (this analysis is based on the annual purchase of the
contractors)

Chi Square test to analyze the brand preference

Brand Preference With Respect To The Choice Of Interior
And Exterior Paints
Original Values
Berger

Asian

ICI

Nerolac

Shalima

Total

Interior
Exterior

17
14

11
8

5
2

2
3

r
2
1

37
28

Total

31

19

65

94

EXPECTED VALUES

FORMULA: (row total* cloumn

total)/ grand total

Interior
Exterior
Total

Berger
17.639
13.3517
31

Chi-test

0.850530

Value=

Asian
10.811
8.1833
19

ICI
3.983
3.0149
7

Nerolac
2.845
2.1535
5

Shalimar
1.707
1.2921
3

Total
37
28
65

371

A chi-squared test, also referred to as chi-square test or

test, is any statistical

hypothesis test in which the sampling distribution of the test statistic is a chi-squared
distribution when the null hypothesis is true, meaning that the sampling distribution (if the
null hypothesis is true) can be made to approximate a chi-squared distribution as closely as
desired by making the sample size large enough.
From the data we collected through survey,
Null hypothesis: The attributes are independent i.e. the difference in brands does not have
an impact on the choice of interior and exterior paints

Alternate hypothesis: The attributes are dependent i.e. the difference in brands has an
impact on the choice of interior and exterior paints.
In Excel, the formula to evaluate is:CHISQUARE

chi-square(actual range, expected

TEST

range)

The value after evaluation,

0.850530371

Degree of freedom (DOF) = 4

Table value for 5% level of significance with DOF 4 is 9.49
95

Interpretation
0.850530371 is less than the table value 9.49. Therefore we can say, the null hypothesis is
accepted i.e. the difference in brands does not have an impact on the choice of interior and
exterior paints.

Analysis Of Interior Decorators / Architects

Interior Paints
Brands
No Of

ICI

Asian

Berger

Nerola

Shalimar

Paints
15

Paints
9

c
4

Respondent

96

Interior Paints
ICI

Asian Paints

Berger Paints

11%

Nerolac

Shalimar

20%

26%
43%

Interpretation
In the interior paint category the maximum market share is enjoyed by Asian Paints
comprising of 43% , Berger Paints and ICI almost enjoy equal shares of 26% and 20 %
respectively. Nerolac and Shalimar having negligible contribution in the market share.
So it can be interpreted that Asian Paints is the market leader followed by strong competitors
like Berger Paints and ICI.

Turnover in Lakhs
Turnover
Turnover
(in lakhs)

Frequency

0-5
5-10
10-15
15-20
20-25

39
34
42
33
15
97

Percent
19.4
16.9
20.9
16.4
7.5

25-30
30-35
35-40
40-45
45-50
More than 50

10
8
3
2
0
15
201

4.9
4.0
1.5
1.0
0.0
7.5
100.0

Turnover

Interpretation
Most of the dealers I have visited are having an approximate
turnover of 10-15 lakhs per annum.
This is a nice number for giving dealership.

Paint Dealers Dealing With Which Company

Company Name
Company

Frequency

Berger
Asian
Nerolac
Local

18
11
3
3
98

Percent
35.3
21.5
5.9
5.9

Asian + Nerolac + ICI

More than 1 Including
Berger
Total

3
13

5.9
25.5

51

100.0

Company Name
35.30

25.50
Company Name

21.50

5.90

5.90

5.90

Interpretation
31 dealers were already dealing in Berger.
16 dealers were having more than one paint company dealership.
Out of 31 dealers were dealing directly with Berger Paints.
This shows that there is an opportunity to target the Berger Paints
dealers which are dealing with wholesaler.

CB Machine Availability
(51 dealers were working in the paint segment.)

CB Machine
99

Does dealer have a

CB Machine

Frequency

Percent

Yes
No
Total

28
23
51

54.9
45.1
100.0

CB Machine

No; 45%
Yes; 55%

Interpretation
54.9% paint dealers have a CB Machine.
45.1% paint dealers have not CB Machine.

Company Name of CB Machine

Machine Name
Company

Frequency
100

Percent

Name
Berger
Asian
Nerolac
ICI
Berger + Asain
Asain + ICI
Total

12
6
5
1
3
1
28

42.9
21.4
17.8
3.6
10.7
3.6
100.0

Machine Name

Asian + ICI; 4%
Berger + Asian; 11%
ICI; 4%

Berger; 43%

Nerolac; 18%

Asian; 21%

Interpretation
Only 15 dealers out of 28 are having Berger CB Machine.
This shows that remaining 13 existing dealers should be persuaded
and targeted for CB Machine.
101

 We can see that dealers are having more machines of Berger Paints.

Willing To Deal with BERGER

Willing to deal with Berger
Willing to
Deal

Frequency

Percent

Already Dealing
Yes
Maybe
No
Total

28
43
11
119
201

13.9
21.4
5.5
59.2
100.0

Willing to Deal

Already Dealing; 14%

Yes; 21%
No; 59%
Maybe; 6%

Interpretation
13.9% dealers were already having dealership of Berger Paint.

102

 We can see that 21.4% (43) dealers are ready to be a part of Berger
Paint.
5.5% of the dealers will be deal with Berger in future.

When to Approach

pproach
When to
Approach

Frequency

Percent

Immediate
Later
Total

20
34
54

37.04
62.96
100.00

When to Approach

Immediate; 37%
Later; 63%

Interpretation
103

 37.04% (20) dealers want to deal with Berger Paint immediate.

62.96% (34) dealers want to deal with Berger Paint later.

CHI-SQUARE TEST:
Null Hypothesis (H0) There is no relation between the location of counter and
prospective dealers.
Alternative Hypothesis (H1) - There is a relation between the location of counter and
prospective dealers.

Location
Location

Observed N

Expected N

Residual

Main Market
Main Road
Cross Road
By Lane
Outskirts
Total

40
93
28
12
28
201

40.2
40.2
40.2
40.2
40.2

-0.2
52.8
-12.2
-28.2
-12.2

Test Statistics
Location
Chi-Square
Degree of
Freedom
Assume.

96.53
4
4

Sig.

.
000

104

Interpretation
As sig. value is less than 0.05, and then we should reject the null
hypothesis.
So it can be concluded that alternate hypothesis can be accepted
and there is a difference between the prospective dealers and there
counter location.

Findings and conclusion

DEALERS AVAILABILITY
From the study it can be observed that most of the dealers are
present at the main road of the town.
By Lane dealers are very less.
Berger paints awareness is more in urban market as compared to
rural markets.
Asian Paints is the biggest competitor in the market.
Berger Paints is performing well in interior and exterior paints.
Out of the sample surveyed, it is found that company has great
opportunities in the market.
Some of the previous dealers of Berger thinks that scheme should
be available for all seasons.
Some of the dealers think that there are fewer profit margins.
Most of the contractors are satisfied with the paint quality of
Berger, mostly the primer.

105

SWOT Analysis of Berger Paints

STRENGTHS

WEAKNESS
OPPORTUNITIES

THREATS

Wide range of product and service offering

Sales force.
High on quality and preferred by customers
Comparatively less price with respect to its

competitors.
Dependence on paint segment only.
Less awareness in rural markets.
Less concentration in decorative segment.
Many new products has been launched
New segment of customers targeted
Growing business of real estate.
Rural customers can be targeted.
Fluctuation in raw material prices
Intense competition from pioneer brands.
Price competition.

RECOMMENDATIONS

106

The over all performance of More Mega Store is satisfactory. But, there are few
suggestions, which I would like to put forward.

107

1: More Mega Store has to improve on their marketing skills; like emphasis on paper
advertisements, local FM channels and electronic media.

2: Secondly, they have to provide knowledge about each & every products to their sales
executives.

3: For training purpose they should arrange some special recruiting & training programs.

4: They should improve the range of their products in the Electronic Division.

5: I would also suggest More Mega Store that their FMCG products are coming all the way
from other cities, so it costs them a lot and I suggest them to buy the FMCG products from
the local producers. It will reduce the transportation cost and the price of FMCG will can be
reduced. And it is beneficial to the customers also.

6: At the last as they say, Customer is the King, More Mega Store must rigorously work on
customer satisfaction.

108

CONCLUSION

I conclude that above suggestions can really drive More Mega Store and use of this kind of
application shows the capability of the shopping malls towards capability the services
provided to the customers. Introduction of this type of systems can really be useful in any
kind of industry & particularly in shopping malls, and has made its importance which also
helps in making strategies decisions which in making strategies decision which in turn leads
the organization in the competitive market.
Thus, they can have solution without any kind of communication with the associates and this
kind of application can really raise the awareness of the retailers to find out where they stand
in the marketplace.

Further with the innovation of marketing strategies of malls in deep sense can also make the
hypermarket accurate and more useful in order to develop the business.

109

BIBLIOGRAPHY AND
REFERENCE

110

Bibliography
1. Marketing Management: A South Asian Perspective by Philip Kotler, Abraham
Koshy, Kevin Lane Keller, Mithileswar Jha
2. Marketing Research: An Applied Orientation by Naresh K. Malhotra, Satyabhushan
Dash
3. Advertising and Promotion by Keyoor Purani, George E Belch, Michael A Belch

111

Reference
1. http://en.wikipedia.org/
2. http://stockshastra.moneyworks4me.com/retail-indian-retail-industry-analysisand-research-report-2011/
3. http://www.scribd.com/
4. http://www.slideshare.net/
5. http://www.abrl.com/

APPENDIX

112

Appendix- Sample Questionnaire

APPENDIX-I

KNOW YOUR CONTRACTOR STUDY

Questionnaire for Retailers

113

Name of the Shop: _____________________________________________

Address:_______________________________________________________
Phone No.: ______________________________________________________

Q1. Type of Shop: (Please mark tick on the

answer)

Company outlet

Franchisee

Mega mart

Departmental stores Multi brand shop Unorganized

retail

Q2. You are operating Since:

________________________________________________________
_______
Q3. Branches in New Delhi. (If Any)
________________________________________________________
________
114

Q4. Your average daily Counter Collection/ Sales

(in Rupees): __________

Q5. Your Source of Purchase:

From Company

From Distributor

From Wholesaler

Q6. You order stock on:

Weekly Basis

Monthly basis

Quarterly basis

As per Requirement

Q7. Do you get discounts or other benefits on

your purchase/procurement?
Yes

No

Q8. Details of Promotional Activities carried out

by you for attracting customers?
________________________________________________________
__

115

Q9. Your
activities:

preferred

Print media

media

for

promotional

Electronic media

Q10. What type of benefits do you offer to your

customers?
________________________________________________________
___
Q11. What is your strong point compared to
other retailers in the market?

Service

Price

Quality

Promotion

Q12. Which category of products sells the most

at your Outlet/Shop?

FMCG products
Textile

Q13. Did you

employees?

Consumer Durables
Food

give

Other

any

116

benefits

to

your

NO
some)

YES (Please mention

________________________________________________________
___
Q14. Have you carried out any market
survey/research to know about your customers
needs/feedback?

YES

NO

Q15. Your sales get affected due to Recession.

YES

NO

Q16. Remarks or Feedback, if any:

________________________________________________________
___
Signature & Stamp:

Questionnaire for Customers

Name:_______________________________________________________

117

Age:

_______________________________________________________

Gender: Male

Female

Education:
_____________________________________________
Profession:

___________________________________________________
Address:_______________________________________________________
Phone

No.:-

___________________________________________________
Marital status:

Single

Married

No. of members in your family: Adults:

______________
Children: _____________
Family Income (per month):
Upto 5000

Between 5000 to 10000

Between 10000 to 20000

Above 20000

Q1. Please name the retail mall(s) which you

visit on a regular basis:
118

More
Vishal

Big Bazaar
Spencers
Mega Mart Reliance

Q2. Which factor influences your decision about

choosing the retail mall/supermarket you visit?
Distance from home

Advertisements

Discounts

Casual visit / Walk-ins

Q3. How often

/Supermarket?

do

you

Daily

Weekly

Monthly

Only on Offers

visit

retail

mall

Fortnightly
Rarely

Q4.
On an average, how much time do you
spend in a retail outlet per visit?
Half an hour
1-2 hours
More than 3 hours

2-3 hours

Q5. What kind of goods do you prefer purchasing

from retail outlets/Supermarkets?
Grocery Items

Furniture

Consumer electronics Clothes

Home Appliances
Financial Products

Q6. Which features / Qualities / Facilities of a

retail outlet / Supermarket do you like the most?
119

Kindly rank the following according to your order

of liking / preferences: Please write ranks 1-10.

________ ATM/Debit/Credit card facility

________ Information Displays

________ Product Displays

________ Courteous people

________ Variety of products available

________ Discounts/Low Prices

________ Quality of products available

________ Free Home Delivery

Q2. Which factor influences your decision about

buying items at the retail malls/supermarkets?
Quality & Brand Names

Advertisements

120

Discount Offers
or service

Past Experience with any product

Q8.
Whose
Marketing
/Advertisements are better?
Malls

campaigns

Local Retail Shops / Provision Stores

Q9. Whose services are better?

Malls

Local Retail Shops / Provision Stores

Q10. How is the product knowledge of the sales

staff of retail outlets/supermarkets?
Good

Average

Poor

Q11. Remarks or Feedback about

____________________________________________________
Products and Services of Retail Malls:
____________________________________________________

____________________________________________________

Signature of the Respondent:

121

APPENDIX-III

Yearly Results of Berger Paints India

2014-2010

Sales Turnover

Mar1
4
2,662.

Mar1
3
2,100.

Mar
'12
1,688.6
122

Mar1
1
1,513.

Mar1
0
1,346.2

Other Income
Total Income
Total Expenses
Operating Profit
Profit On Sale Of
Assets
Profit On Sale Of
Investments
Gain/Loss On
Foreign Exchange
VRS Adjustment
Other
Extraordinary
Income/Expenses
Total
Extraordinary
Income/Expenses
Tax On
Extraordinary
Items
Net Extra
Ordinary
Income/Expenses
Gross Profit
Interest
PBDT
Depreciation
Depreciation On
Revaluation Of
Assets
PBT
Tax
Net Profit

Prior Years
Income/Expenses
Depreciation for
Previous Years
Written Back/
Provided
Dividend

1
30.60
2,692.
7
2,384.
5
277.60

8
35.87
2,136.
6
1,883.
4
217.40

180.70

7
17.45
1,531.
1
1,381.
0
132.67

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

-0.27

--

--

--

--

--

--

--

--

--

--

308.20
22.40
285.80
37.60

253.27
12.18
241.09
29.98

198.92
3.11
195.81
26.41

150.12
12.39
137.73
20.40

137.70
-137.43
18.65

--

--

--

--

--

248.20
70.80
177.40

211.11
62.80
148.31

169.40
49.26
120.14

117.33
28.57
88.76

118.78
26.70
92.08

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

18.22
1,706.9
1,507.9

123

7.60
1,353.8
1,216.1
130.10

Dividend Tax
Dividend (%)
Earnings Per
Share
Book Value
Equity
Reserves
Face Value

---

---

---

---

---

5.12

4.29

3.47

2.78

2.89

-69.23
775.40
2.00

-69.21
651.99
2.00

-69.21
556.04
2.00

-63.77
350.37
2.00

-63.77
284.00
2.00

2009-2005
Sales Turnover
Other Income
Total Income
Total Expenses
Operating Profit
Profit On Sale Of
Assets
Profit On Sale Of
Investments
Gain/Loss On
Foreign Exchange
VRS Adjustment
Other
Extraordinary
Income/Expenses
Total
Extraordinary
Income/Expenses
Tax On
Extraordinary
Items
Net Extra
Ordinary
Income/Expenses
Gross Profit
Interest
PBDT
Depreciation
Depreciation On
Revaluation Of

Mar '09
1,172.21
5.80
1,178.01
1,049.62
122.59

Mar '08
987.91
5.30
993.21
878.59
109.32

Mar '07
831.68
5.38
837.06
745.75
85.93

Mar '06
675.82
5.19
681.01
602.81
73.01

Mar '05
586.43
2.55
588.98
526.74
59.69

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

-0.06

-0.31

-5.70

-0.05

-0.05

--

--

--

--

--

--

--

--

--

--

128.39
8.29
120.04
17.80
--

114.62
5.28
109.03
17.39
--

91.31
3.64
81.97
15.69
--

78.20
2.80
75.35
13.93
--

62.24
3.85
58.34
13.12
--

124

Assets
PBT
Tax
Net Profit
Prior Years
Income/Expenses
Depreciation for
Previous Years
Written Back/
Provided
Dividend
Dividend Tax
Dividend (%)
Earnings Per
Share
Book Value
Equity
Reserves
Face Value

102.24
19.17
83.07
--

91.64
21.35
70.29
--

66.28
14.16
52.12
--

61.42
17.39
44.03
--

45.22
11.80
33.42
--

--

--

--

--

--

---2.61

---3.53

---13.08

---16.57

---12.58

-63.77
225.62
2.00

-39.86
188.27
2.00

-39.86
163.44
10.00

-26.57
159.40
10.00

-26.57
139.35
10.00

APPENDIX-IV

The shareholding pattern of Berger paints India Ltd as on December 31,

2015
125

CATEGORY
OF SHAREHO
LDER

NO.
OF
SHAR
EHOL
DERS

TOTAL NO.
OF SHARES

TOTAL NO.
OF
SHARES
HELD IN
DEMATERIA
LIZED
FORM

TOTAL
SHAREHOLDIN
G AS A % OF
TOTAL NO. OF
SHARES
AS A %
AS A
OF
% OF
(A+B)
(A+B+
C)

SHARES
PLEDGED OR
OTHERWISE
ENCUMBERED
NUMBER OF
SHARES

(A) Shareholding of Promoter and Promoter Group

(1) Indian
Individuals /
Hindu
Undivided
Family
Bodies
Corporate
Sub Total
(2) Foreign
Bodies
Corporate
Sub Total
Total
shareholding of
Promoter and
Promoter
Group (A)

10

18,643,680

18,643,680

5.39

5.39

192,711,438

192,711,438

55.67

55.67

15

211,355,118

211,355,118

61.06

61.06

50,234,565

50,234,565

14.51

14.51

1
16

50,234,565
261,589,683

50,234,565
261,589,683

14.51
75.57

14.51
75.57

(B) Public Shareholding

(1) Institutions
Mutual Funds /
UTI
Financial
Institutions /
Banks
Insurance
Companies
Foreign
Institutional
Investors
Sub Total

19

1,711,430

1,704,855

0.49

0.49

11

44,574

35,358

0.01

0.01

12,097,732

12,096,732

3.50

3.50

35

28,606,871

28,606,871

8.26

8.26

70

42,460,607

42,443,816

12.27

12.27

6,145,195

6,031,381

1.78

1.78

(2) NonInstitutions
Bodies
615
Corporate
Individuals
Individual
36,637
shareholders
holding nominal
share capital up
to Rs. 1 Lakh
Individual
shareholders
holding nominal
share capital in
excess of Rs. 1
Lakh
Any Others

17

33,729,264

23,155,347

9.74

9.74

1,342,819

1,342,819

0.39

0.39

0.25

0.25

126

648

874,396

654,980

127

128