A PROJECT REPORT ON THE VARIOUS PROMOTIONAL STRATEGIES OF HYPERCITY (A study done at Mumbai branch)
BY SANJAY SAHA (B-102)
UNDER THE GUIDANCE OF DR. THIRUMAGAL PILLAI
INDIRA INSTITUTE OF MANAGEMENT PGDM 2010-12
i
“THE VARIOUS PROMOTIONAL STRATEGIES OF HyperCITY” (A study done at Mumbai branch)
ii
ACKNOWLEDGEMENT
We take the opportunity to express our gratitude to all of them who in some or the other way help us to accomplish this project. The research study cannot be completed without your guidance, assistance, inspiration, and co-operation. We particularly owe our gratitude to Dr Thirumagal Pillai madam to give a such a opportunity. And lastly to all the people who cooperate and encourage us, with their valuable time.
A very special thanks to HyperCITY Retail LTD. Malad, Mumbai and all the who given me the opportunity and ed me to learn in their organization and I‘m very thankful to Mr. ABHIJEET GAWDE the marketing officer of HyperCITY who helped me a lot to pursue my summer internship under him.
SANJAY SAHA
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iv
EXECUTIVE SUMMARY
v
TITLE ―THE EFFECTIVENESS OF PROMOTIONAL ACTIVITIES OF HYPERCITY‖
RETAIL INDUSTRY Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector.
HyperCITY RETAIL INDIA LTD. HyperCITY is the part of K Raheja corp. group and was incepted in 2005. It provides a truly international shopping experience where customer can shop in comfort in a large, modern and exiting environment. It offers a wide and contemporary range of innovative products, sourced from both local and international markets.
OBJECTIVES PRIMARY OBJECTIVE:
To study the effectiveness of promotional activities which influences a customer to purchase from HyperCITY?
SECONDARY OBJECTIVES:
To find out the satisfaction level of Hypercity hip Discovery Club Card?
To know the promotional activity awareness among the customers
To know the various mediums of promotional activities of HyperCITY
To understand the ambience effects on the customers.
To know the frequency of visiting the customers at HyperCITY.
To know which category of product selling more. vi
SAMPLE SIZE 300 (Three hundred)
METHODOLOGY:
The basic methodology that we followed was the questionnaire method.
Research objectives were clearly stated before deg the questionnaire
Information was collected form a sample size of 300 respondents, which included both males and females. Information obtained from the respondents was analyzed and interpreted. Findings revealed by the tabulations were listed in a summarized form as Recommended Actions The sampling method used was Non-probability random sampling.
Sample population
Resident of Mumbai
Sample frame
Customers of HyperCITY
Data collected
Non probability convenience sampling method
.
SOURCES OF COLLECTION OF DATA: All the useful data which were require for this research has been collected through Primary and secondary data
Primary data collected through Questionnaire
Secondary data collected through Internet, Magazines and newspapers.
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FINDINGS
The promotional activities did have the influence on customers.
People are aware of promotional activities done by HyperCITY.
Among various means of doing promotions like newspapers, leaflets and catalogues are the better means which attracted customers.
Customers always visited HyperCITY because of better ambience and quality products.
Among many products offered, maximum sales happens is for the groceries section at HyperCITY. This is because quality products are offered.
Weekly offers are not given importance by the customers.
Many of the customers are not aware of offers given such as hyper Wednesday, Friday blockbuster etc.
Discovery club card (hip card) is satisfactory among the customers
Many customers did purchases, but did not avail the benefit of hip (DCC) card.
Ambience and comfortable atmosphere rather proved to be gaining momentum for HyperCITY.
ASSUMPTIONS: It is assumed that chosen sample is a representation of the entire population It is assumed that the information provided by the samples is accurate and best of their knowledge.
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CONCLUSION The target segment of HyperCITY is niche class people mainly and they don‘t come for any offers so HyperCITY doesn‘t need to do the ment very frequently. The customers come for shopping because of the standard of the store, the quality of the products, hygiene and the world class ambience which gives them a very comfortable atmosphere
RECOMMENDATIONS Many of the customers are not aware of the Hyper weekly offers so try them to make them aware Many of the customers said that the customer associate doesn‘t respond very well so train them thus they can help the customers. Follow up of the HAM section is not very good. So try to give better after sales service thus customer can come back again and again. Many of the of DCC are not getting the emails and sms from HyperCITY so update the customer information while enrolling the customers
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CONTENTS Chap No.
Title
Page No.
1
Introduction
2
2.
Industry Profile
6
Size of the Industry
Growth trends
Government policies
Major players
3.
Company and Product Profile
21
4.
Literature Review
43
5.
Objective and Scope of Study
48
6.
Research Methodology
50
Research design
Sampling design
Data collection
Limitation & Assumptions
7.
Data Analysis and Interpretation
76
8.
Observation and Findings
99
9.
Conclusions
101
10.
Recommendations
103
References
105
Questionnaire
107
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LIST OF TABLES Table No.
Title
Page no.
1.
World‘s Top Ten Retailers by Revenue
6
2.
Retail Formats
8
3.
Retail formats in India
11
4.
Entry options for foreign players
17
5.
Sample size
53
6.
Sources of ment
78
7.
Frequency of shopping
80
8.
Products usually purchased by customer
82
9.
Products usually purchased by customer
84
10.
Awareness about Hyper weekly offers
88
11.
Offers preferred by customers
94
12.
Ratings
96
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LIST OF GRAPHS AND CHARTS Chart No.
Chart Title
Page No.
1.
Promotional activity seen by the customers
76
2.
Sources of promotion
78
3.
Frequency of shopping
80
4.
Products usually purchased by customer
82
5.
Products usually purchased by customer
84
6.
Visual merchandising
86
7.
Awareness about Hyper weekly offers
88
8.
Discovery club card
90
9.
Satisfaction level for discovery club card
92
10.
Offers preferred by customers
94
11.
Ratings
96
75
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INTRODUCTION
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RETAILING :AN INTRODUCTION The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman---the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word ‗retail‘ is derived from the French work retailier, meaning ‗to cut a piece off‘ or ‗to break bulk‘. In simple , it implies a first-hand transaction with the customer. A retailer is a person, agent, agency, company, or organization which isinstrumental in reaching the goods, merchandise, or services to the ultimate consumer. The selling need not necessarily take place through a store. Retailing encomes selling through the mail, the Internet, door-to-door visits---any channel that could be used to approach the consumer. When manufacturers like Dell computers sell directly to the consumer, they also perform the retailing function. Retailing has become such an intrinsic part of our everyday lives that it is often taken for granted. The nations that have enjoyed the greatest economic and social progress have been those with a strong retail sector. Why has retailing become such a popular method of conducting business? The answer lies in the benefits a vibrant retailing sector has to offer—an easier access to a variety of products, freedom of choice and higher levels of customer service. As we all know, the ease of entry into retail business results in fierce competition and better value for customer. To enter retailing is easy and to fail is even easier. Therefore, in order to survive in retailing, a firm must do a satisfactory job in its primary
2
DEFINITION: Historically retailing has been viewed as the ale of the goods to the consumer through retail shops. However, retailing today should be viewed as being rather broader. Retailing is the sale of the goods and services to the ultimate consumer for personal, family or household use. Thus retailing involves more than selling tangible products. The purchase of a service such as a haircut or dry cleaning is also a retail transaction. Purchases for a business or industrial use are not retail transactions.
FUNCTIONS OF RETAILING: The retail outlet may provide some or all of the following services to its customers:
Convenient location.
An assortment of merchandise appropriate to the particular market (i.e allows choice)
Breaking of bulk so that small quantities can be sold.
Processing of merchandise to more acceptable forms.
Holding of stock for instant availability at relatively stable prices.
Helping to effect change in ownership of goods.
Causing goods to move through the distribution system e.g from manufacturer to wholesaler to retailer to consumer.
Information not only to the consumer but also to suppliers.
Product guarantees, after-sales service and dealing with customer complaints.
Credit and hire- purchase facilities.
Some facility for social intercourse.
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IMPORTANT FEATURES OF RETAILING:
There is direct end- interaction in retailing.
In is the only point in the value chain to provide a platform for promotions.
Sales at the retail level are generally in smaller unit sizes.
Location is a critical factor in retail business.
In most retail businesses services are as important as core products . There are a larger number of retail units compared to other of the value chain. This occurs primarily to meet the requirements of geographical coverage and population density
RATIONALE OF STUDY: In today‘s economy and competitive business world retaining the customer base is critical to the company‘s success. Customer retention and satisfaction drives profits. It‘s far less expensive to cultivate the company‘s existing customer base and sell more service to them than to seek new single transaction customer. Keeping one existing customer is five to seven times more profitable than attaching new one. Good customer retention is vital to any organization because a slight reduction in the customer defection rate has a disproportionally positive effect on profitability. 5% increase in customer retention can result in profit increase of at least 20% for more business company wants to retain the customers so that they become loyal advocates for the company‘s brand. The study makes an effort to ascertain the effectiveness of the promotional activities. It helps to know that how does a customer influence by the promotional activities. The study helps to understand why customers shop at a particular store. The retail store can rise up to the expectations of the customers only by how do you make him feel difference than others. Promotional activities makes a loyal relationship between the customers and the retail organization. The subject has been taken for the research as it plays key role in the success of retail store. As long as the store is able to being in touch with its customer, customers will remain in the bracket of loyal customers. This study helps to understand the factors which pulls customers to retail store. 4
SECTOR PROFILE
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THE GLOBAL RETAIL INDUSTRY: AN OVERVIEW Retail has played a major role world over in increasing productivity across a wide range of consumer goods and services .The impact can be best seen in countries like U.S.A., U.K. Mexico, Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the retail sector. Retail is the second-largest industry in the United States both in number of establishments and number of employees. It is also one of the largest worldwide. The retail industry employs more than 22 million Americans and generates more than $3trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart is the world‘s largest retailer. Already the world‘s largest employer with over1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world‘s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has become the most successful retail brand in the world due its ability to leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from the retail business.
WORLD’S TOP TEN RETAILERS BY REVENUE No. Name
Headquarters
Revenues
8900
15
No. of outlets
No. of countries Operating in
1.
Wal-Mart
US
($billions) 408.21
2.
Carrefour
126.5
15500
34
3.
Tesco
UK
99.7
502
15
4.
Metro
92.02
2100
33
5.
Lidl
82.08
7200
20
6.
Kroger
US
76.7
3264
1
7.
Home Depot
US
71.5
2242
4
8.
Costco
US
71.4
573
8
9.
Target
US
65.357
1743
2
10.
Aldi
58
8210
18
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OVERVIEW OF RETAIL SECTOR IN INDIA Retailing is one of the pillars of the economy in India and s for 13% of GDP. The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are ed for sales tax, income tax, etc. These include the corporatebacked hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Organized retail such supermarkets s for just 4% of the market as of 2008. Regulations prevent most foreign investment in retailing. Moreover, over thirty regulations such as "signboard licenses" and "anti-hoarding measures" may have to be complied before a store can open doors. There are taxes for moving goods to states, from states, and even within states. India‗s retail market, valued at US$ 353 billion in 2010, is projected to grow at a rate of 12 per cent per annum. India has one of the largest number of retail outlets in the world. The sector is witnessing exponential growth, with retail development taking place not only in major cities and metros, but also in Tier-II and Tier-III cities.
INDIAN RETAIL INDUSTRY:SUMMARY s for 13% of GDP and 8% of total employment Over 90% is unorganized. Valued at US$ 400 billion (2011) Projected to grow at a rate of 12 % per annum to US$ 785.12 billion by 2015. India currently allows 51 per cent FDI in single-brand retail and 100 per cent in wholesale cash-and-carry operations. India will announce new rules for foreign investment in retail by April 2012. 7
RETAIL FORMATS: Media Activity
In store
Catalogue
Cable TV
WWW
Telephone
Means of
Humans in
Paper
Broadcast
Computer
Telephonic
Mediation
Brick and
&Telephonic
&Telephonic
&Voice over
Elements
Mortar
Internet
Environment
Protocol
Customer
Face to Face
Remote,
Remote,
Remote,
Remote,
Interface
Sales
Print,
Voice only,
voice often
Voice Only
Service
Response
Recreate
electronic
Voice only
Social Aspect
Product
3-
Photograph &
Television
Computer
Telephonic
presentation
Dimensional
Text
image &
image,
product &
Displays
demonstration Photograph Text
service description
RETAILING FORMAT IN INDIA: Mom-and-Pop stores: Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.
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Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sqft to 7,00,000sqft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon. Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non-perishable goods. Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop.
Hyper marts/Supermarkets:
Large self-service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini 9
supermarkets typically 1,000 sqft to 2,000 sqft and large supermarkets ranging from of 3,500 sqft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience
Category Killer:
small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.
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RETAIL FORMATS IN INDIA: Format Hypermarkets
Description
Example
Avg. Size 50000-100000 sq. ft.
HyperCITY
Offers a large basket of products ranging
STAR
from grocery, fresh and processed food,
BAZAAR
beauty and household products, clothing and appliances. Department
Avg. size-10000 to 60000 sq. ft
stores
Offers a large layout with a wide merchandise mix, usually in cohesive
SHOPPER‘S STOP
LIFESYLE
INORBIT
categories including fashion Shopping
malls
and above
Supermarket
Avg size 60,000 sqft to 7,00,000 sq. ft
MALL
The largest form of organized retailing
INFINITY
today
PHOENIX
Avg. size-10000 to 60000 sq. ft
BIG BAZAAR
Having a strong focus on food & grocery
D MART
KIRANA
and personal sales
Mom & Pop
shops
They are family owned business catering to small sections
SHOPS
They are individually handled retail outlets and have a personal touch.
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LALA SHOPS
BARRIERS IN THE INDIAN RETAIL SECTOR To become a truly flourishing industry, retailing needs to cross the following hurdles:
Automatic approval is not allowed for foreign investment in retail.
Regulations restricting real estate purchases, and cumbersome local laws.
Taxation, which favours small retail businesses.
Absence of developed supply chain and integrated IT management.
Lack of trained work force.
Low skill level for retailing management.
Lack of Retailing Courses and study options
Intrinsic complexity of retailing – rapid price changes, constant threat of product obsolescence and low margins.
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MAJOR PLAYER IN RETAIL Future Group:
Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000 people and as of 2010, it was the country's largest listed retailer by market capitalization and revenue. With effect from 1 January 2010 the company separated its discount store business, which includes the Big Bazaar hypermarket and the Food Bazaar supermarket businesses, into Future Value Retail Ltd., its wholly owned subsidiary, so that the company may be listed independently.
Retail Outlets:
Fashion-Big Bazaar, Pantaloons, Central, ALL, Brand Factory, Blue Sky, Top 10, Fashion Station- Big Bazaar, Lee Cooper (JV), Ethnicity Mall - Central Food - Food Bazaar Electronics - eZone, Electronic Bazaar, STAPLES (JV) E-tailing - www.futurebazaar.com Home Improvement - Home Town
K Raheja Group:
Established in 1956, over the decades, K. Raheja Corp has undergone a major transition from a real estate developer to a well diversified corporate. Under the leadership of Mr. C L Raheja, we have progressed rapidly and today, K. Raheja Corp. has grown into a multi-dimensional organization in the fields of Real Estate, Retailing and Hospitality. The group has the following formats in retail. 13
Mall - Inorbit Book store - Crossword Fashion - Shopper‘s Stop Hypermarket - HyperCITY.
Tata Group: Established in 1998 trend .one of the subsidiary of Tata group –operates Westside,a lifestyle retail chain and star India bazaar –a hypermarket with a large assortment of product at the lowest price .Tata has also formed a subsidiary named infinity retail hitch consist of Croma ,a consumer electronics chain.
RPG group : The RPG Group one of India's largest industrial conglomerate headquartered in Mumbai, India. It was founded by RP Goenka in 1979. Today the RPG Group is involved in diverse sectors of business, including power generation, power transmission, information technology, retail, and entertainment. It owns the following retail outlets:
Spencer's Retail
Food World
Music World
Books and Beyond
Reliance retail Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance I Store, Reliance Home Kitchens, and Reliance Jewel come under the Reliance Retail brand.
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LandMark: The Landmark Group provides a value-driven product range for the entire family through a diverse portfolio of core retail brands. This includes a host of home grown brands in addition to international franchise offering. Their brands include:
Home Centre Baby Shop Shoe Mart Splash Max Lifestyle Home Décor
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GOVERNMENT POLICIES IN RETAIL The Indian government is likely to announce policy changes allowing foreign direct investment (FDI) in the multi-brand retail segment. It is currently reviewing a draft report on FDI in multi-brand retail, according to media reports. The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry is currently fine tuning a draft report submitted by an inter-ministerial committee. The report is said to have been prepared after taking the consent and viewpoints of all stakeholders into consideration. The current regulations on retail allow 100 per cent FDI in wholesale cash-and-carry trading. In single-brand retailing, 51 per cent FDI is allowed while no FDI is allowed in multi-brand retailing. After DIPP's review, the report will be sent to the Cabinet Committee on Economic Affairs for it to be converted into policy, say senior government officials. The government is seeking an opportune time to reveal the changes so that it may not cause any upheaval or resistance by the public, as it could potentially affect the livelihood and employment of millions, the officials added. It is likely that the government of India may relax the FDI norms in multi-brand retail during the announcement of the annual Budget for 20112012. Commerce and Industry Minister Anand Sharma has said that a broad-based consensus in policy formulation for further development of the sector was needed and that the ministry itself wanted a 51 per cent FDI cap for the sector as was allowed in single-brand retail. The Ministry of Consumer Affairs and Public Distribution has recommended a 49 per cent FDI cap in multi-brand retail and the ministry of micro, small and medium enterprises 18 per cent. The Ministry of Communications and IT , however, feels that liberalisation of FDI norms will hit electronics manufacturers hard.
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Time and again, international multi-brand retailer like Wal-Mart, Carrefour and Metro have lobbied to open up India's retail sector for foreign direct investment with an eye on the country's vast consumer market. Some of them have opened cash-and-carry stores across the country Franchise agreements
•
Most
widely
used
entry
route
by
multinational retailers • Fast food retailer Domino‘s entered India through master franchise root while Pizza Hut entered through regional franchisee
Cash and Carry whole sale treading
100% FDI is allowed in wholesale trading which involves buildingbuilding of a large distribution infrastructure to assist local manufacturers • The wholesaler deals only with smaller retailers and not consumers • Metro AG of was the first significant global player to enter India through this route
Strategic licensing agreements
Foreign company enters into a licensing agreement with a domesticretailer • Mango, the Spanisn apparel brand has entered India through this route with an agreement with Piramyd, Mumbai • SPAR entered into a similar agreement with Radhakrishna 17
Foodlands Pvt. Ltd
CHALLENGES & OPPORTUNITIES Retailing has seen such a transformation over the past decade that its very definition has undergone a sea change. No longer can a manufacturer rely on sales to take place by ensuring mere availability of his product. Today, retailing is about so much more than mere merchandising. It�s about casting customers in a story, reflecting their desires and aspirations, and forging long-lasting relationships. As the Indian consumer evolves they expects more and more at each and every time when they steps into a store. Retail today has changed from selling a product or a service to selling a hope, an aspiration and above all an experience that a consumer would like to repeat.
For manufacturers and service providers the emerging opportunities in urban markets seem to lie in capturing and delivering better value to the customers through retail. For instance, in Chennai CavinKare�s LimeLite, Marico�s Kaya Skin Clinic and Apollo Hospital�s Apollo Pharmacies are examples, to name a few, where manufacturers/service providers combine their own manufactured products and services with those of others to generate value hitherto unknown. The last mile connect seems to be increasingly lively and experiential. Also, manufacturers and service providers face an exploding rural market yet only marginally tapped due to difficulties in rural retailing. Only innovative concepts and models may survive the test of time and investments. However, manufacturers and service providers will also increasingly face a host of specialist retailers, who are characterized by use of modern management techniques, backed with seemingly unlimited financial resources. Organized retail appears inevitable There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth.. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are 18
required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom indust
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COMPANY AND PRODUCT PROFILE
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COMPANY ORIENTATION HyperCITY is the part of K Raheja corp group and was incepted in 2005. It provides a truly international shopping experience where customer can shop in comfort in a large, modern and exiting environment. It offers a wide and contemporary range of innovative products, sourced from both local and international markets.
OUR VISION To be an integral part of customer live, by offering them a high quality shopping experience through great products at ever better prices.
WHAT WE ARE Hypermarket model – 1, 20,000 Sq. Ft. and above.
Best priced, full supermarket within.
Widget general merchandise range
Dominant assortment in chosen categories
International shopping experience
Lisuretainment
21
HyperCITY HyperCITY Retail (India) Ltd. is part of the K. Raheja Corp. Group, a leader in the Indian retail sector. K. Raheja Corp helped create retail boom in India with Shopper's Stop, Inorbit Mall and Crossword apart from their successes in realty and hospitality HyperCITY has 10 stores, covering approx 8 lac sq. ft, operational across 7 cities viz. Mumbai (Malad, Thane & Vashi), Amritsar, Jaipur, Bengaluru, Bhopal, Ludhiana &Hyde rabad. It offers a wide range of product in categories like Fresh produce, Foods and Grocery, Home, Bakery, electronics, Furniture, Sports, Toys & Apparel. it now is gearing up to commission three more stores at Ahmedabad, Pune and Mumbai by December HyperCITY also offers other value added services like consumer finance, ATM facility, telecom services, pharmacy, Bakery and Restaurants etc under one roof. HyperCITY launched its first store in Malad, Mumbai, which is spread over 1, 20,000 sq ft. It offers over 44,000 products sourced from both local & global markets. HyperCITY, the hypermarket offer from Shoppers Stop has a chain of 10 stores (covering approx. 8 lac sq ft) with the addition of a store in Bangalore recently, and. The company closed year 2010-11 with a growth of about 80 % clocking sales of Rs 600 crore and expect to take this up to Rs 900 crore in 2011-12. Food business contributes about 58 % revenue. The company hopes to achieve an operational break even this year. Contribution from private label is expected to be increased to 23 % this year and 25 % next year.
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K. RAHEJA GROUP
23
COVERAGE
HyperCITY – Malad Next to Inorbit Mall Malad Link Road Malad (West) Mumbai 400 064 Ph: +91 - 22 - 40078418/ 19/ 20
HyperCITY - Vashi GR Floor, Inorbit Mall Plot No. 39/1, Sector - 30/A Vashi Navi Mumbai 400 703 Ph: +91 - 22 – 40501300 24
HyperCITY – Thane Ground Floor, Big Thane Shopping Centre Ghodbunder Road, Behind Kasarvadawali Police Station, Thane Ph: +91 - 22 – 25987777
HyperCITY – Hyderabad Inorbit Mall, Lower Ground Floor, Opp. I-Labs, Hi-tech City, Madhapur, Hyderabad Andhra Pradesh Ph: +91 - 040 – 44882031 25
HyperCITY - Amritsar Alpha One Mall, Upper basement, MBM Farms, Sultan Wind Suburban, Main G. T. Road, Amritsar - 143 001 Ph: +0183 - 661 5555
HyperCITY – Jaipur Triton – The Mega Mall, Lower Ground Floor, Nr. Jhotwara Pulia & Sikar Road Circle, Jhotwara Road, Jaipur - 302 012 Rajasthan Ph: +91 - 141 - 4094660/ 26
HyperCITY – Bhopal DB CITY Arera Hills Bhopal 462011 Ph: 1800-209-7172
HyperCITY – Ludhiana Lower basement, MBD neopolis mall Ferozpur road, adjacent to Rajguru nagar, Ludiana - 141001
27
HyperCITY – Bangalore 1 Embassy Paragon, Ground Floor, Nr. Kundalahalli Gate, ITPL Road, Near Brooke Field, Bangalore - 560 037 Ph: +91 - 080 - 4364 3333
HyperCITY – Bangalore 2 Lower ground floor Royal meenakshi mall Bannergatta road,
bengaluru 28
HyperCITY – Pune Ground floor Kumar pacific mall, Shankarsheth road, Swargate, pune
29
HyperCITY, MALAD HyperCITY, Malad is a flagship store in Mumbai which has niche segment target people. This store is 1, 20.000 sq. ft. huge in size and a wide parking area within. HyperCITY, Malad has 68% market share in his catchment area
CATCHMENT AREA Malad east & west Goregaon east & west Andheri east & west Bangur nagar
HyperCITY gives a wide & huge space for shopping and provides standardized, luxurious and international experience of shopping. HyperCITY provides hygienic and quality products to their customers.
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HyperCITY, MALAD
HyperCITY – MALAD Next to Inorbit mall Malad Link Road Malad (West) Mumbai 400 064 31
HyperCITY PRODUCT SECTIONS FOOD & GROCRY ITEMS Fruits & vegetables Meat &Fish Staples Ready & Instant Food Beverages Home care personal care
32
HOME SECTION Home ware Home needs Home linen
33
HIGH TECH SECTION Computing Communication Photography Imaging
HOME ENTERTAINMENT SECTION Vision Audio
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APPLIANCES SECTION Large appliances Small appliances Personal care
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FASHION SECTION Men‘s wear Women‘s wear Kids wear Foot wear Accessories
TOYS SECTION Infant toys Soft toys Electronic toys Learning toys Outdoor toys
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SPORTS SECTION Health & Fitness Outdoor sports Indoor sports
FURNITURE SECTION Living Room Bed Room Dining Room
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EXCLUSIVE BRANDS HyperCITY has a wide array of exclusive brands across all categories. These brands ensure increased value to our customers through superior product offerings, quality and uniqueness at great prices
FOOD & GROCERY
TERZO: The Power of Super clean is now in your hands. Introducing Terzo Home cleaners with power of 3! The range comprise of power cleaners, Everyday Cleaner, Toilet cleaner, Floor Cleaner & Utensil Cleaner.
FRESHBASKET: Every Fresh Basket product guarantees freshness and quality on a daily basis, with all the goodness locked in. Fresh Basket offers the freshest selection of meat, seafood, fresh produce, freshly baked breads, specialty bread, etc.
HyperCITY HyperCITY is dedicated to bring wholesome food to your family at great prices. Our products are packed under hygienic conditions and are priced to offer real value, every day. HyperCITY encomes everyday foods like cereals, spices, flour, pulses, dry fruits and other products.
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WAITROSE Voted the top supermarket chain in UK. Exclusively available at HyperCITY. Come and taste the best of teas, coffees, juices, jams and more.
HOME
EBANO Discover stylish essentials for your home with HyperCITY‘s exclusive brand e b a n o. e b a n o presents a selection of basic products with a modern appeal. Bringing your home to life with contemporary designs, vibrant colours, great value & is present across Utensils, Cutlery, Bakeware, Crockery, Glassware, Pots'n'pans, Implements, Bed linen, Towels, Cushions, Table linen, pillows and more.
AVORIO: Make your home a more luxurious place with Avorio, the exclusive brand from HyperCITY. AVORIO offers exclusive, versatile and classic designs to enhance your lifestyle. Avorio spans Implements, Pots'n'pans, Glassware, Cutlery, Crockery, Towels, Bed linen, Table linen, Duvets & quilts and more.
EVERYDAY: The range includes everything you need for your office - office accessories, writing instruments, paper stationery, etc.
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FASHION HyperCITY offers a coordinated range at super prices; cutting across clothing, footwear, sunglasses, watches, hair accessories, bags and jewelry.
JOOJOOBS Discover Fashion for your little ones!! The Joojoobs range of comfortable garments for infants includes designer infant wear and infant western wear. The range combines the finest quality fabrics & vivid colors to create a high value range of infant wear.
CITYSENSE Comprises of a basic line of value packs at super duper prices; covering value packs of tees, socks, briefs, vests, basic denim, etc., for men, women & kids.
CITYLIFE Everyday wear for men, women, kids and footwear, styled for value.
CITYSTYLE Offers the latest trends in clothing in the market, at prices that are affordable.
RIVERINC. A range of quality denims for men, ladies and kids. The range comprises of basic denims, fashion denims, tees, cargos, denim shirts and jackets.
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APPLIANCES TECHNIX: Our Technix range of appliances will be available across microwaves, cook-tops and mixer-grinders.
SPORTS
RALEIGH The Raleigh Series of bicycles are available exclusively at HyperCITY. Raleigh is one of the world‘s biggest brands in Bicycles. Raleigh bicycles are simple, elegant, efficient and fun. They are designed with care and fitted with latest technology. Raleigh has the following varieties in bicycles - Mountain Sport, Platinum, Juvenile, Toy cycles, etc.
MAXIT: The Maxit line of sports equipment and apparels is available exclusively at HyperCITY. Maxit stands for - Maximum Range, i.e. it offers a superior line up of sports gear at great value. Maxit is available across sports categories like cricket, football, basketball, volleyball, boxing and baseball.
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LITRATURE REVIEW
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WHAT IS PROMOTIONAL STRATEGIES?
Promotion is one of the four elements of marketing mix (product, price, place and promotion). It is the communication link between sellers and buyers for the purpose of influencing, informing or persuading a potential buyer‘s purchasing decision.
PROMOTION MIX Promotion mix contains five elements they are
Personal selling
Advertising
Sales promotion
Direct marketing
Publicity
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OBJECTIVE OF PROMOTION There are three basic objectives of promotion these are –
To present information to consumers as well as others
To increase demand.
To differentiate a product
TYPES OF PROMOTIONAL STRATEGY Basically there are two types of promotional strategies are used they are –
Push strategy
Pull strategy
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CHANNELS OF PROMOTION There are the various channels of promotion are given below
Newspapers
Magazines
Radio
Television
Direct mail
SMS
Outdoor advertising
Word of mouth
Leaflets
Catalogues
Announcement
PROMOTION TOOLS
Samples
Coupons
Cash refund offers (Rebates)
Price offs (Cent-off deals)
s (gifts)
Frequency programs
Prizes (contests, sweepstakes, games)
Patronage awards
Free trials
Product warranties
Tie-in promotions 45
Cross promotions
Point-of –purchase (pop) displays and demonstrations
Price offs
Allowance
Free goods
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OBJECTIVES AND SCOPE OF THE PROJECT
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PRIMARY OBJECTIVE:
To study the effectiveness of promotional activities which influences a customer to purchase from HyperCITY?
SECONDARY OBJECTIVES:
To find out the satisfaction level of HyperCITY hip Discovery Club Card?
To know the promotional activity awareness among the customers
To know the various mediums of promotional activities of HyperCITY
To understand the ambience effects on the customers.
To know the frequency of visiting the customers at HyperCITY.
To know which category of product selling more.
SCOPE OF THE STUDY This project is based on the customers of Mumbai, so this project will help to understand the perception of the customers about the ments and promotional activities. This project is based on the promotional activities of HyperCITY to know the awareness of the of offers and discount schemes given by the HyperCITY so this project will help to take the right decisions for the promotional activities. This project helps to know that what are the effective ways of promotional activies which helps to increase the footfall of HyperCITY.
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RESEARCH MEHODOLOGY
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WHAT IS RESEARCH METHODOLOGY? Research methodology is a way to systematically solve the research problem. It shows how the research is done scientifically (exactly) – studying the research methods along with the logic (sense) behind them are part of the research methodology – various steps.
DEFINITION Search for Knowledge – careful investigation or inquiry to find out new facts in any branch of knowledge – scientific and systematic investigation to acquire new knowledge.
RESEARCH DESIGN The research will be descriptive in nature and survey is used as data collection technique will be conducted on already existing or prospective customers. Face to face interview with different customers from various parts of the Mumbai was held in which Questionnaire was used as a data gathering tool. The survey has helped us to streamline the process and serve the effectiveness of the promotional activities of HyperCITY.
Types of research : There are several research design given below
pure research
applied research
exploratory research
descriptive & diagnostic research
experiment research
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STAGES IN RESEARCH PROCESS
PROCESS STAGES: 1. Defining the research objectives 2. Planning a research design 3. Planning a sample 4. Collecting the data 5. Analyzing the data 6. Formulating the conclusions and preparing the report
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SAMPLE DESIGN: Sampling is an act, process, or technique of selecting a representative part of a population. a sample design is a definite plan for obtaining a sample from a given population.
SAMPLING CONCEPTS:
POPULATION: Total collection of elements under investigation. . SAMPLE: The subset of the element of the population chosen for study. . SAMPLING UNIT: A sampling unit can be an individual element or a set of elements based on the sampling process used. SAMPLING
FRAME:
The
sampling
frame
refers
to
a
complete
enumeration/list of the population as specified by the research problem. It is a list of all the sampling units. TECHNOQUE OF SAMPLING:
The basic methodology that we followed was the questionnaire method.
Research objectives were clearly stated before deg the questionnaire
Information was collected form a sample size of 300 respondents, which included both males and females. Information obtained from the respondents was analyzed and interpreted. Findings revealed by the tabulations were listed in a summarized form as Recommended Actions 52
The sampling method used was Non-probability random sampling
SAMPLE SIZE: Sample population
Resident of Mumbai
Sample frame
Customers of HyperCITY
Sample size
300
Data collected
Non probability random sampling method
SOURCES OF DATA There were two main sources of data during the project: Primary Data: the primary data was collected through the customers coming to the HyperCITY for shopping. Secondary Data: The secondary data was collected through Internet, Journals and magazines.
LIMITATIONS The present study is confined to a minimal sample size and may not reflect the opinion or response of the entire population in general.
The results of our study are entirely confined to the responses of the consumers of Mumbai and might deviate in of actual population as a whole.
Recommendations given after the study are entirely dependent on the survey and the secondary analysis done in the report.
There might have been tendencies among the respondents to amplify or filter their responses under the testing. 53
The respondents might think that this survey is only a waste of time or it might create some problem and hence there might have been tendencies to give fake answers and fill the questionnaire casually.
Observation Method: While streamlining the process I came across several areas where there as scope of improvement. So recommendations on various perspectives have also been put forward.
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TASKS UNDERTAKEN DURING THE PROJECT
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TASKS UNDERTAKEN DURING THE PROJECT
DCC Enrollment Competition Mapping Basket Comparison Ham Comparison Societal Tie up Restaurant Tie up Facebook Activity Sampling Activity In Store Activities Father‘s Day Celebration Drawing Competition Cycling Race
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DCC ENROLLMENT Dcc is the discovery club card. Which is a hip card for the hypercity customers. It is a electronic card which a customer show during the billing to get the benefits of this card.
FEATURES OF DCC It is an electronic swiping card 100 points are initially given 1 point is equivalent to 1 Rs. Whenever customer buy any products he gets certain points on certain products which points keep on accumulating to his Dcc .
BENEFITS OF DCC Customer become a lifetime member of the club Customer can redeem dcc points at the time of final billing Customer gets keep on updating with latest offers, schemes, activities etc. via emails, sms and direct mailing.
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COMPETITION MAPPING Competition mapping is all about to know what the competitors of HyperCITY are doing for their store marketing. Competition mapping is contains three tasks
Basket comparison
Ham comparison
Share of voice
BASKET COMPARISON Basket comparison is all about to know what the competitors are doing with their product prices. In this task we went to the different retail outlets (major competitors) and spying their product prices. And also try to know what promotional activities they are using to attract the customers. In this comparison we take 30 to 35 products including food, non food and perishable products. Perishable products are taken on seasonal basis. This activity is done on every Tuesday of the week
MAJOR COMPETITORS Star Bazaar Food Bazaar D – Mart Spencer‘s
BENEFITS OF BASKET COMPARISON Well understanding of competitor‘s pricing strategy Take an appropriate decision about our prices 58
Well understanding of competitor‘s promotional strategies Giving the product to the customer in nominal prices in comparison of the competitors
COMPILED BASKET REPORT After the all taken prices we make a compiled report. In this report we compare the our product prices to the competitor‘s product prices.
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BASKET COMPARISON IMAGES
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HAM COMPARISON Ham is the high-tech, appliances, multimedia. Ham comparison is all about to know what the competitors are doing with their product prices. In this task we went to the different retail outlets (major competitors) and spying their product prices. And also try to know what promotional activities they are using to attract the customers. In this comparison we take only electronic items. This activity is done on every Friday of the week.
HIGH TECH PRODUCTS
Laptops Headphones Game cds Speakers
Mobile phones Cameras Printers Desktops Other accessories
APPLIANCES Refrigerators Air conditioners Washing machines Microwaves
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MULTIMEDIA LCD LED Speakers CD
MAJOR COMPETITORS OF HyperCITY IN HAM PRODUCTS Croma Vijay sales Kohinoor E – Zone Snehanjali Next
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HAM COMPARISON IMAGES
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SHARE OF VOICE Share of voice is used to accumulate measured media expenditures and estimated costs for other communications activities. Information should be gathered for all competitors on a regular (weekly, quarterly and/or annual) basis. Each competitor's percentage of the aggregate total is its Share-of-Voice." Share of voice is the task to know that what the competitors are doing for the ment of their product. In share of voice marketing officer see the competitors ment and offers in various sources and make a share of voice report.
SHARE OF VOICE INCLUDES – Newspaper advertisings Hoardings NEWSPAPER INCLUDES
The times of India
Mumbai Mirror
Hindustan Times
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SPACE ON HIRE Space on hire means HyperCITY gives space to the different companies for the ments of their product.
MEANS OF SPACE ON HIRE Travelator branding Drop downs Danglers Glass fasate Tran slide boxes Fixtures Pillar branding Portals FNV pillars Cash till poles Pillar cladding End capes Discovery pillars Plinth display
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ENDCAP
DISCOVERY PILLARS
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TRAVALATOR BRANDING
CASH COUNTER BRANDING
67
TROLLY BRANDING
GLASS FACATE
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FACEBOOK ACTIVITY Facebook is a social networking site. In facebook HyperCITY has a community. In this community customers are connects online to the HyperCITY. We done this activity with the collaboration of bru world café (coffee chain).in this activity we approach the customers to like the community of hypercity on facebook . and instead of that they get a bru world cappuccino voucher absolutely free which is worth RS. 129. Many customers participated in this activity and liked the HyperCITY community on the facebook. This campaign was for two weeks. And in these Two weeks we increased the No. of likes from 13506 to 15509. That means we have enrolled 2003 customers.
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IN STORE ACTIVITIES In store activity includes all the promotional activities which are done inside the store. These are the very important drives for HyperCITY which are the very helpful to increase the sales of different departments. Some of the in store activities are-
Father‘s day Drawing competition Cycling race
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DRAWING COMPETITION This in store activity is organized for the kids. In this activity Different ages of kids were participated and draw the sketches. This activity was sponsored by Junior Horlicks. This drive is organized to increase the sales of stationary section of HyperCITY.
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SLOW CYCLING RACE This in store activity is organized for the kids. In this activity Different ages of kids were participated. This activity was sponsored by Maxit. This drive is organized to increase the sales of sports section of HyperCITY.
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RESIDENTIAL SOCIETY ACTIVITY In this activity we gone to the different residential societies for the promotion of Bajaj Microwave oven. In this activity there was a cookery show sponsored by Bajaj electronics for the housewives of society This activity done for the drive the sales for Bajaj microwave oven.
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RESTAURANT TIE UP In this promotional activity we gone to the different restaurants in the catchment area (Malad, Goregaon, Andheri, Bangur nagar) of HyperCITY. We pitched the restaurant owner to give some discounts to our of HyperCITY. Those customers who are having the hip card of HyperCITY. We gone to 5 restaurant and approached them.
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DATA ANALYSIS AND INTERPRETATION
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Q.1
Have you ever seen any promotional activity or ment done
by HyperCITY, Malad?
Column1
47 53
76
YES NO
INTERPRETATION FOR QUESTION NO. 1 The analysis shows nearly half of the total samples (53 percent) surveyed have seen the promotional activities. Promotional activity had large impact of existing as well as potential customers. Our analysis also proves that there are customers (47 percent) who have not seen any of the promotional activity, but visit HyperCITY.
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Q.2 By which source you have seen the promotional activity?
SOURCES 40 35 30 25 20 15 10 5 0
36 24
20
Newspaper leaflets in store Word of mouth others (sms,email)
14 6
The sources in which the customers have seen the ment Sources
newspapers
Leaflets
In
store Word
activity
mouth
of Others (sms, emails
Percentage
36
24 percent
percent
14 percent
6 percent
20 percent
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INTERPRETATION FOR QUESTION NO. 2 Newspapers are the cheapest source/media where promotional activities reach every customer, either existing or new customer. 36 percent of them were influenced through newspaper ments. Leaflets and other sources via electronics (SMS, E-mail) stands next to newspapers. (24 percent customers seen ads through leaflets and 20 percent received ads either trough SMS/Email.) In store ads (14 percent) had very less influence.
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Q.3 How often do you come for shopping at HyperCITY?
FREQUENCY 60
53
50 40
32
30 20
13
10
2
Always sometimes very often first time
0
Frequency of the customers to come at HyperCITY Frequency
Always
Sometimes
Very often
First time
percentage
53%
32%
13%
2%
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INTERPRETATION FOR QUESTION NO. 3 This analysis proves that customers do visit HyperCITY very frequently. 53 percent of the customers say they like to come only at HyperCITY. They don‘t like to go any other places for shopping The range of products and the ambience attracts customers. This is indirectly proven from this analysis. (53 percent of customers always visit HyperCITY). 32 percent of the customers say they come hyperCITY but they also go to the other places as well. 13 percent of the customers say they come very often for the shopping at HyperCITY. 2 percent of the customers say this is the first time they are coming to hyperCITY for the shopping.
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Q.4 What kind of products do you purchase at HyperCITY?
PRODUCTS 60
57
50 40 30 19
20
GROCERY FASHION ELCTRONICS FURNITURE
19
10
4
0
The products usually purchased by the customers products
Grocery
Fashion
Electronics
Furniture
percentage
57%
19%
19%
4%
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INTERPRETATION FOR QUESTION NO. 4 The analysis shows 57 percent of the customers come to HyperCITY for purchasing GROCERIES. Though HyperCITY in Malad offers wide range of products, there is less preference for fashion and electronics products in the region. Furniture is hardly sold in HyperCITY Customers for furniture are almost very few (4 percent) from the samples.
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Q.5 Have you ever purchased anything because of the promotion you seen?
Series 1 80 70
67
60 50 40
GROCERY FASHION ELECTRONICS FURNITURE
30 18
20
11
10
4
0
Products purchased by the customers because of the promotion. Products
Grocery
Fashion
Electronics
Furniture
Percentage
67%
11%
18%
4%
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INTERPRETATION FOR QUESTION NO. 5 This question was raised to see the promotional effects on the purchase. Groceries purchase showed the highest among various products offered by HyperCITY. It is nearly 67 percent of the total samples. Electronic purchase is the next product which is done by customers other than groceries (18 percent are observed). Fashion products do not have any affects of promotions done by HyperCITY FASHION and FURNITURE products do not have any influence.
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Q.6
Do you think the visual merchandising is helpful to attract the
customer?
VISUAL MERCHANDISING
9
YES NO 91
91% customer says the visual merchandising is helpful to attract the customers 9% customer says the visual merchandising is not helpful to attract the customers
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INTERPRETATION FOR QUESTION NO. 6 Visual merchandising is very helpful to the customer. 91 percent of them are attracted by visual merchandising. Visuals proved to be a better form of attracting customers other than newspapers and SMS or E mail ways of doing ments.
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Q.7 Are you aware of the hyper weekly offers?
OFFERS 60 51 50 HYPER WEDNESDAY FRIDAY BLOCKBUSTER BOTH
40 28
30 20
12
9
10
NO
0
The various weekly offers of HyperCITY Weekly offers
Percentage
Hyper
Friday
Wednesday
blockbuster
12%
9%
88
Both
No
28%
51%
INTERPRETATION FOR QUESTION NO. 7 Our observations proved that nearly 51 percent of the HyperCITY customers are not aware of Hyper weekly offers. During weekly offers, discounts are given on many products. This helps in increasing sales. Hyper Wednesday and Friday blockbuster are among such weekly offers by HyperCITY. Very less percentage of the samples knew about the HyperCITY offers. (28 percent expressed they are not aware of offers).
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Q.8 Do you have a Discovery Club Card?
DCC
42 58
58% customer says they are having the hip card of HyperCITY 42% customer says they are not having the hip card of HyperCITY
90
YES NO
INTERPRETATION FOR QUESTION NO. 8 Discovery club is the hip card for HyperCITY customers. 58 percent of them have the hip cards through which they do purchases. hip card facility will be useful to redeem points followed by gift vouchers.
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Q.9 Are you satisfied with the discovery club card?
SATISFACTION 70
65
60 50 40 30 19
20
16
YES NO NOT YET USED
10 0 YES
NO
NOT YET USED
65% customer says yes they are quite satisfied with the card. 19% customer says they are not satisfied with the facility of the card.
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INTERPRETATION FOR QUESTION NO. 9 65 percent of the customers from our samples are satisfied with discovery club card. Though cards are given for regular customers 16 percent of them have not at all used the hip facilities. Our analysis is also shows that 19 percent of them are not satisfied with the hip facilities. It appeared hip cards do not have any impact on HyperCITY customers. 16% customers having the card but they have not yet used the card or redeem the points.
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Q.10 What kind of offers do you like?
Series 1 70
66
60 50 40 30
21
20
13
10 0
DISCOUNT ON MRP FREE GIFTS
DISCOVERY CLUB POINTS
The offers liked by the customers Offers
Discount on MRP
Free gifts
Discovery club points
Percentage
66%
21%
13%
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INTERPRETATION FOR QUESTION NO. 10 The offers given by HyperCITY and is largely on discounts on MRP. Nearly 66 percent of customers are satisfied with discount offers. Free gifts are given to of the HyperCITY. 21 percent of the customers are satisfied with free gifts, which is again followed by Discovery club points (13 percent customers). Discounts on MRP, the strategy of HyperCITY is really a better promotional activity to boost up the sales.
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Q.11 How would you rate the promotional activities done by the HyperCITY?
RATINGS 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
VISUAL MERCHANDISI NG NEWSPAPER
LEAFLETS
ACTIVITIES IN THE STORE
The ratings of promotional activities given by the customers Activities
Visual
Newspaper
Leaflets
merchandising Percentage
4.5
1
2.5
96
Activities in Word the store
mouth
3
2
of
INTERPRETATION FOR QUESTION NO. 11 The analysis was done to find out the customer‘s rating on different ways of promotions of HyperCITY. To a larger extent visual merchandising is proved a better means of promotion.(4.5 points) Through newspapers were the other better sources to show the promotional activity, customers did not rate it the better. Leaflets, word of mouth were the better source other than visual merchandising which gained importance.
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OBSERVATIONS AND FINDINGS
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FINDINGS
The promotional activities did have the influence on customers.
People are aware of promotional activities done by HyperCITY.
Among various means of doing promotions like newspapers, leaflets and catalogues are the better means which attracted customers.
Customers always visited HyperCITY because of better ambience and quality products.
Among many products offered, maximum sales happens is for the groceries section at HyperCITY. This is because quality products are offered.
Weekly offers are not given importance by the customers.
Many of the customers are not aware of offers given such as hyper Wednesday, Friday blockbuster etc.
Discovery club card (hip card) is satisfactory among the customers
Many customers did purchases, but did not avail the benefit of hip (DCC) card.
Ambience and comfortable atmosphere rather proved to be gaining momentum for HyperCITY.
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CONCLUSION
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CONCLUSION The target segment of HyperCITY is niche class people mainly and they don‘t come for any offers so HyperCITY doesn‘t need to do the ment very frequently. The customers come for shopping because of the standard of the store, the quality of the products, hygiene and the world class ambience which gives them a very comfortable atmosphere
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RECOMMENDATIONS
102
RECOMMENDATIONS Many of the customers are not aware of the Hyper weekly offers so try them to make them aware Many of the customers said that the customer associate doesn‘t respond very well so train them thus they can help the customers. Follow up of the HAM section is not very good. So try to give better after sales service thus customer can come back again and again. Many of the of DCC are not getting the emails and sms from HyperCITY so update the customer information while enrolling the customers
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REFERENCES
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REFERENCES www.hypercityindia.com www.wikipedia.com www.google.com
BOOKS RESEARCH METHODOLOGY
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ANNEXURE
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Questionnaire Name Of Customer ____________________ Area Of Residence ___________________
Q.1 Have you ever seen any promotional activity or ment done by HyperCITY, Malad?
Yes No
Q.2 By which source you have seen the promotional activity?
Newspaper Leaflets, catalogues Radio In Store Word of Mouth Others __________________
Q.3
How often do you come for shopping at HyperCITY?
Always Sometimes Very often First time 107
Q.4
What kind of products do you purchase at HyperCITY?
Grocery Fashion Electronics Furniture
Q.5
Have you ever purchased anything because of the promotion or ment you Seen?
Grocery Fashion Electronics Furniture
Q.6
Do you think the visual merchandising is helpful to attract the customers?
Yes No
Q.7
Are you aware of the Hyper weekly Offers?
Yes No 108
Q.8
Do you have a Discovery Club Card?
Yes No
Q.9
Are you satisfied with the Discovery Club Card?
Yes No Not yet used
Q.10
What kind of offers do you like?
Discount on MRP. Free gifts Discovery club points
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Q.11 How would you rate the promotional activities done by the HyperCITY?
Poor
Average
Good
Very Good
Visual merchandising Newspaper ments Leaflets, catalogues Activities in the Store Word of Mouth (Announcement)
Q.12 Would you like to give any suggestions related to promotional activities or ments?
110
Excellent
111