MICRO RETAILING 2010

EXECUTIVE SUMMARY
Sakhi Retail Private Limited was incorporated in January 2009 by Swayam
Shikshan Prayog (SSP), a learning and development organization. The Sakhi Retail network
reaches over 60,000 families in five districts in India; Latur, Osmanabad, Beed and Nanded,
in the Marathwada region and Solapur in Western Maharashtra. Assessments estimate that
the Sakhi Retail will reach over 75,000 households through 1000+ entrepreneurs by end
2011. Sakhi Retail’s focus is on developing trained retail entrepreneurs from local women to
conduct promotion and sales in their communities. Sakhi Retail is structured on a revenue
model that provides sustainable livelihoods and incomes to women in Self Help Groups
(SHG). Sakhi Retail enables rural women entrepreneurs to retail multiple products in their
communities and increase their incomes. SRPL is a social business model which operates to
reach positive social impact for the communities.

The Project is all about finding the true potential of a Rural retail Outlet. Sakhi was the kind
of Retail Outlet for the products which were offered by Sakhi Retail Private limited and it
was a home for only SRPL products and Sakhi was not Professional in setting up her retail
outlet so we did our best to establish a Retail Outlet which included SRPL products and
Household Commodities through Micro Retailing.

The first part of our project includes profiling of sakhis in and around Solapur district which
included Investment, stock, sales, margin and other details. The sample size consisted of 10
Villages .After Sakhi profiling we did a pilot survey to understand which are the products
which were frequently bought by the households and sold by the Retailers. After this survey
we shortlisted 80-85 products for Retail Outlet.

Later we started to survey the villages by considering the catchment area of 200 meter radius
of Sakhis house or Retail outlet. We surveyed the 10% of the households which were present
in the catchment area. The catchment area was classified into Poor, Medium and Rich in
order represent the whole catchment area. Same procedure was carried out for the remaining
9 villages. After the survey the data was put into the excel sheet to find out the potential of
Retail outlets. The data collected is analyzed and interpreted using various graphs and charts.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 1

 MICRO RETAILING 2010

CHAPTER – I
INTRODUCTION

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 2

 MICRO RETAILING 2010

1.1 INDUSTRY BACKGROUND

The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by
the year 2010.

GROWTH OF INDIAN RETAIL

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,
India retail industry is the most promising emerging market for investment. In 2007, the retail
trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In
2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow
to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total
market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5%
of the total retail market.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 3

 MICRO RETAILING 2010

MAJOR RETAILERS IN INDIA

PANTALOON
Pantaloon is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located
across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft
by the year 2010. In 2001, Pantaloon launched country's first hypermarket ‘Big Bazaar’. It
has the following retail segments:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar
 Consumer Electronics: e-zone
 Shoes: Shoe Factory
 Books, Music & Gifts: Depot
 Health & Beauty Care: Star, Sitara
 E-tailing: Futurebazaar.com
 Entertainment: Bowling Co.

TATA GROUP

Tata group is another major player in Indian retail industry with its subsidiary Trent,
which operates Westside and Star India Bazaar. Established in 1998, it also acquired the
largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft
retail space across the country.

RPG GROUP

RPG Group is one of the earlier entrants in the Indian retail market, when it came into
food & grocery retailing in 1996 with its retail Food world stores. Later it also opened the
pharmacy and beauty care outlets ‘Health & Glow’.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 4

 MICRO RETAILING 2010

RELIANCE
Reliance is one of the biggest players in Indian retail industry. More than 300
Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's
expecting its sales to reach Rs. 90,000 crores by 2010.

AV BIRLA GROUP

AV Birla Group has a strong presence in Indian apparel retailing. The brands like
Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing
in other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

RETAIL FORMATS IN INDIA

Hyper marts/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.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 5

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 6

 MICRO RETAILING 2010

CHALLENGES FACING INDIAN RETAIL INDUSTRY

 The tax structure in India favors small retail business

 Lack of adequate infrastructure facilities
 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

THE FUTURE

The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year
2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending
has also gone up and is also expected to go up further in the future. In the last four year, the
consumer spending in India climbed up to 75%. As a result, the India retail industry is
expected to grow further in the future days. By the year 2013, the organized sector is also
expected to grow at a CAGR of 40%.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 7

 MICRO RETAILING 2010

1.2 COMPANY PROFILE

INTRODUCTION

In 1993, Latur and parts of rural Maharashtra suffered a massive earthquake which
claimed over 11,000 lives and damaged over 200,000 houses. This disaster led to the
development of Swayam Shikshan Pryog (SSP), which transformed this mass-scale disaster
recovery into a development opportunity and mobilized grassroots women's groups in
reconstruction and local governance.SSP started to educate rural households and engineers to
adopt new techniques in the construction of the houses.

Swayam Shikshan Prayog (SSP)-Self Education for Empowerment is a learning

and development organization that improves the lives of some of the world’s poorest people.

SSP's operations extend to ten of the most hazard prone underdeveloped districts
spread over Maharashtra, Gujarat and Tamil Nadu in India. SSP partners with over 60,000
women members in 5,000 self help groups and self governed apex federations supported by
ten district resource teams across 1,553 villages in three states. As a result of its innovative
approach, working after three major disasters advancing to local development, since 1993,
SSP has experienced a continuous expansion to extend its potential outreach to over 3,00,000
households.

Since 1998, SSP has mobilized grassroots women's network to form savings and credit
groups (15-20 women mobilize savings, lend for household needs and access microfinance)
and member-owned federations at the local level. With growing demand, SSP established a
community driven (MFI) that has disbursed over Rs. 105.22 million to over 2,576 women
self help groups for productive activities agriculture, small businesses etc.

In the last three years, it has moved steadily from a micro-enterprise strategy to setting
up social businesses that provide sustainable “livelihoods” to women. SSP views its role as
that of a facilitator - turning appropriate opportunities into businesses that involve the groups
in financing, operations and management. It did the groundwork along with the SHG network
securing credit and capital; creating legal entities and building new skills.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 8

 MICRO RETAILING 2010

The main four pillars of the SSP are

1. Sakhi Retail Private limited

2. Sakhi Social Enterprise Network
3. Sakhi Samudaya Kosh
4. Sakhi Arogya Samudaya Trust

Sakhi Social Enterprise Network develops marginalized women and youth into business
people and entrepreneurs. Aiming to integrate rural women and young people into local
markets. SEEN provides training , inspiration, and support to develop entrepreneurial skills,
entrepreneurial mindsets, and a broader entrepreneurial culture for women and youth. SEEN
helps grassroots women and youth to increase their income, develop market knowhow, and
launch and grow micro-business. Counseling is provided in business plan development , bank
credit access, accounting, product diversification, legal information etc.

Sakhi Samudaya Kosh – SSP’s microfinance arm – gives poor rural and urban women
access to micro-credit, micro-insurance, business management and development support and
other innovative financial services. SSK provides direct, long and short-term loans for
agriculture, livestock, small trades, housing education and life insurance products for low
income families in disaster prone areas.

Sakhi Arogya Samudaya Trust, Community Health Program, , offers poor underserved
families access to health services, health insurance, HIV/AIDS and other health education,
and improvements in village water and sanitation deficiencies. It also advocates for better
health in government arenas, both regional and national. Arogya Sandhi – health insurance
program , offers a social and economic safety net. Grassroots women proactively promote the
benefits of Arogya sandhi, encouraging rural families to contribute to the health fund and
provide doorstep health services through Arogya sakhis.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 9

 MICRO RETAILING 2010

SAKHI RETAIL PRIVATE LIMITED

The journey began in early 2005, when Swayam Shikshan Prayog (SSP) was exploring
solutions to alleviate the physical drudgery and health hazards associated with fuel collection
and cooking of rural women. At the same time, British Petroleum (BP) was seeking NGO
partners to enter new and emerging markets in safe, eco-friendly energy. Utilizing this co-
creation opportunity, BP and SSP went to rural women’s groups to understand their needs in
the household energy sector .Research at the grassroots level and rural women’s direct
involvement led not only to a product concept, but also to a delivery model involving
women’s groups in every business aspect.

A biofuel stove was developed, under the leadership of BP Energy India Private
Limited, with technical support from Indian Institute of Science, Bangalore. SSP and
Covenant Centre for Development (CCD) were an integral part of this product development
process, which took one and a half years,. The organizations jointly established warehouses,
formed legal entities and drew up a business agreement. The company, Adharam Energy
Private Limited, was formed to stock and distribute the biofuel in SSP’s operational areas in
Maharashtra and CCD’s base of operations in Tamil Nadu, taking advantage of both
organizations’ well-established networks with communities. Another company founded by
SSP called Access Distribution coordinated door to door sales of high quality, locally
procured grocery items.

In January 2009, Sakhi Retail was established, consolidating Adharam Private Limited
and Access Distribution in order to increase distribution network and reduce operating costs
to help the company become sustainable.

By December 2009 Sakhi Retail reached 630 villages, more than 60000 households and
nearly 830 Sakhis. Sakhi Retail has partnership agreements on distribution, marketing, and
training, services with Godrej, Unilever, BP, Reuters Market Light, D-lite, OGP
Nutraceticals, and DAWN.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 10

 MICRO RETAILING 2010

1.3 LINE AND STAFF FUNCTIONS

As per the organization structure chart the various functions of each unit are as follows:

Sakhi, she has to sell the product, must collect feedback on the products sold. She should
also be in a position wherein she can promote the product and provide some instant service if
required.

Cluster coordinators, they have to collect the feedback from the Sakhis regarding the
various products. Must shortlist potential candidates for Sakhi in places where there are either
no existing Sakhis or the Sakhis are not functioning; this has to be done on the norms fixed
by SRPL. The cluster coordinator must also look into the problems faced by Sakhis and take
necessary action.

Sakhi Coordinator, the functions of the Sakhi coordinator are that they must check the
products and services provided. They must also stay in touch regularly with the Sakhis and
the cluster coordinators.

Warehouse Manager, he has the responsibility of taking care of the warehouses situated in
various places. Each warehouse has one Manager. He should be in touch with the Sakhis so
that he can readily dispatch the orders of the products placed by them.

Accountant, he is entrusted with the responsibility of looking after the company accounts
and other financial issues.

Logistics and OPS coordinator, they have to look after the transportation and operational
issues of SRPL. The coordinator should look after the transportation of the products from the
manufacturer to the warehouse, and coordinating the operations of SRPL.

C.E.O, the C.E.O is the head of SRPL and takes care of the entire company.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 11

 MICRO RETAILING 2010

1.4 REPORTING RELATIONSHIPS

Supplier /
CEO
Manufacturers

Logistics & Ops

Sakhi Coordinator
Coordinator

Cluster
Accountant
Coordinator

Network Warehouse
Sakhis
Coordinators Managers

End Users

If the consumer has any queries or complaints then he or she has to bring it to the notice of
the Sakhi (the rural retailer of that place). Then the Sakhi has to report it to her immediate
senior authority i.e. either the cluster coordinator or the warehouse manager. The cluster
coordinator should be contacted if there are any grievances and the warehouse manager for
placing an order for a particular stock. The cluster coordinator is also known as Supervisor.

The cluster coordinator weighing the seriousness of the enquiry can either take the
necessary action or if it’s beyond his or her authority then bring it to the notice of his or her
immediate seniors that is the Sakhi coordinator. The Sakhi coordinator keeps a check on
the products and services, Sakhis and the Cluster coordinators. The Sakhi coordinator is also
known as Operations Manager.The Operations Manager reports to the C.E.O who is the
overall in charge of Sakhi Retail Private Limited. The C.E.O is also the interface between
SRPL and the Manufacturers and Suppliers who supply the various products to SRPL.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 12

 MICRO RETAILING 2010

CHAPTER – 2
RESEARCH METHODOLGY

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 13

 MICRO RETAILING 2010

PREAMBLE

Rural is a term which is defined differently by different experts. Some have defined it
on the basis of geographical factors, some have defined it on income factor and some have
defined it on the level of industrial advancement in the region concerned. Collin’s Cobuild
Dictionary(2001) describes the word rural as “places far away from towns and cities”. From
the sociology point of view rural is defined as a group of people who are traditionalists in
outlook, rooted in land and who resist change.

According to the National Commission on Agriculture: ‘Rural marketing is a process

which starts with a decision to produce a saleable farm commodity and it involves all aspects
of market structure or system, both functional and institutional, based on technical and
economic considerations and includes pre and post harvest operations, assembling, grading,
storage, transportation and distribution

Rural Marketing, in simple words, is planning and implementation of marketing

function for the rural areas. It is a two way marketing process which encompasses the
discharge of business activities that direct the flow of goods from urban areas to rural areas
(for manufactured goods and other products) and vice versa (for agricultural produce) as also
within the rural areas. The size in itself that the rural market has cannot be ignored by the
Companies doing their trade in India, specially the FMCG Companies. According to the
article published by Pradeep Kashyap, “Revolution-in-waiting” Praxis- Business Line-
Theme July2003, pp 6-11. “The rural market has been growing steadily over the years and is
now bigger than the urban market for FMCG’s (53% share of the total market). With an
annual size in value terms currently estimated at around 50,000 crores. It is a definite boon in
disguise for the FMCG majors who have already reached the plateau of the business curve in
urban India and are desperately seeking new ways to increase sales. The annual size of the
rural market in value terms, is currently estimated at around Rs50000 crores for FMCGs,
Rs5000 crore for durables, Rs45000 crores for agricultural inputs and implements and
another Rs8000 crores for automobiles.”

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 14

 MICRO RETAILING 2010

Retailing in India is dominated by unorganized retailing, intermediaries and

fragmentation. According to the ‘Retailing in India’ report by Price waterhouse Coopers, 98
per cent of the 12 million retail outlets in the country lie in the unorganized sector. Retailing
in India is mainly characterized by Food and Grocery. Here lies a big treasure trove for
companies to explore, penetrate and establish themselves in the hearts and minds of the rural
consumers. The companies have to provide value for money, as the rural consumers are very
conscious about how much they pay, for what they pay and what do they get when they pay .

2.1 PROBLEM DEFINITION

According to R.V.Rajan: there are problems with distribution, with language, the products
themselves may not be in the right sizes and at the right process, there is not much
infrastructure, literacy levels are low, so is per capita income, the number of rural retail
outlets are low, rural credit is lacking, banking facilities are inadequate, spurious brands
flourish, demands are seasonal and villagers are highly suspicious of the big city types, they
feel exploited.

The problem definition of the project is, it is an attempt to arm the Sakhis (rural retailers) to
establish a retail outlet which enables them to stock and sell Household commodities initially
at the local village level and then to evolve and grow. Sakhi is a village level rural
entrepreneur who is a part of Sakhi Retail Private Limited (SRPL). SRPL was established by
Swayam Shikshan Prayog (SSP), a learning and development organization moving people
from margin to mainstream. SRPL has tie ups with Godrej, Hindustan Unilever Limited,
Honeywell, First Energy, Selco, D.light.

The challenges that are to be faced are:

 To motivate the sakhi to establish a rural retail outlet.

 To train the Sakhi how to go about establishing the Rural Retail Outlet
 To understand which Household commodities can be stocked and sold

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 15

 MICRO RETAILING 2010

2.2 PLAN OF STUDY AND ITS OBJECTIVES

The plan of the study was to help the sakhis establish a rural retail outlet where in they can
stock and sell Household Commodities. To accomplish this Sakhi has to survey the
households and retail shops to identify the commodities which are frequently bought by the
households. After identifying the commodities which are frequently bought by the
households and sold by the Retailers, Sakhi again has to survey the Surrounding households
in order to find out the potential of the Retail Outlet.

The objectives of the study were

 To conduct a survey and understand which commodities can be stocked and sold?
 To train the sakhis to conduct a survey on the lines of PMA
 The major objective is to find Potential of the Rural Retail Outlet.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 16

 MICRO RETAILING 2010

2.3 RESEARCH METHODOLOGY

Initially the project began with profiling the Sakhis, to have basic information about
the Sakhi and her family. We were given a list of 20 Sakhis from 20 different villages in
order to understand their business interms of Investment, Stock, Sales, Profit, Products
available and other details of their outlet.

The details asked were as follows:

SAKHI DETAILS

Name: Shashikala Nadgir

Age: 43 Years
Address: Laxmi chowk , Valsang
Village: Valsang Taluk: South Solapur
Phone No: 9595304191

HOUSE DATA

House Well built: Wood: Stone: Cement: others:

h
type
Roughly built: Mud: Bamboo: Alu sheets: others:
Ownership Own: Rented: Govt Sponsored: Others:

If Owned Cost Built year Any major repair has taken Cost of major
House place Repair
15000 1965 Yes 3500
Electrified Yes: No:
Area of 20*20 ft
House

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 17

 MICRO RETAILING 2010

ANNUAL EXPENDITURE

Monthly Expenditure Annual Expenditure

(Rs/month) (Rs)
1 Living Expenses Food:3000 36000
Clothing:

2 Health Related 1000

3 Education 1000
4 Marriage/Funeral/other traditional 2500
expenses
5 Festivals 1500
6 Agricultural related 3000
7 Fuel(wood, gas, kerosene) 3000
8 House rent Rs

BASIC DATA

1 Years into Business 4 years

2 Investment Initial Additional Total
10000 90000 100000
3 Products Available at Oorja stove, Pellets D-light, Pureit,
Sakhi
4 Assets
5 Liabilities
6 No of Family 3
Members
7 Support by Family Husband
If yes mention the
members name
8 Total Income of 2000-3000
Family
9 Income by Products 300

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 18

 MICRO RETAILING 2010

SALES DATA

Products Oorja Stove Pellets Pureit D-light

Stock 2 100- 1-2
150bags
Sales/month 1-2 100 0-1
Margin 50 2 100 50
Customer 3-4
complaints/month
Total Sales 150 3000-4000 10-12

There was lack of professionalism in the retail outlet of sakhi and there were only those
products which were offered by Sakhi Retail Private limited and there were no specific area
allocated to this retail outlet, just they used to stock these products in any corner of their
house. Later on we conveyed the importance of the Retail outlet and tried to establish the
retail outlet by taking the following steps.

Once the interviewing was over, the second phase of PMA (Participatory Market
Appraisal) began in which we first had to draw a map of the village which we surveyed to
understand the different segments of the population

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 19

 MICRO RETAILING 2010

2.4 PREPARATION OF PARTICIPATORY MARKET APPRAISAL (PMA)

OBJECTIVE

To identify the products which are frequently bought by the Households and sold by a
Retailers.

METHOD

Pilot survey of Retailers and Households.

PROCEDURE

 Identify the village that is to be surveyed first, it can be your own village or any other
village of your choice.
 Divide the village into different segments like lower, middle and upper class.
Classification can also be done on the basis of Religion, community, culture etc.
 Survey 10% of the houses from each segment. For example if the lower class
contains 500 houses than survey approximately 50 houses in order to avoid tedious
process of surveying.
 Start surveying the houses by asking the following details. The survey can be made
simpler by arranging the details in the Table as shown below.

HOUSEHOLD PROFILE

Name: _______________________________ Income: _____

Product Brand Bought Stock Quantity/mo Purchase Why do Reasons for

Name name price nth shop you purchasing
purchase that specific
from that brand
shop

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 20

 MICRO RETAILING 2010

NOTE

1. The surveyor (sakhi) is free to add more rows to the table because the list of the items
purchased by a household can be a pretty long one.
2. Give the priority to those products which are bought frequently and in large volume
by the households
3. The surveyor should explain the columns in case the respondents are finding it
difficult to understand the meaning of a few words.
4. Here the surveyor should be careful not to influence the respondent in a way that may
manipulate the response. For example: if the respondent can’t read the brand name of
a product, the surveyor should not write the name of the product which she uses
herself domestically. Using of pictures wherever possible is encouraged.

RETAILERS PROFILE

The surveyor must now visit a shop and get details about what is being sold in the shop,
details about the price and other details like stock, sales, margin, Quantity etc.

PROCEDURE

 Identify all the Retail shops which are distributed throughout the village, it can be
small or big.
 Give the priority to those products which have been sold regularly and in large
quantity.
 Start surveying the Retail shops one by one by asking the following details.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 21

 MICRO RETAILING 2010

RETAILERS PROFILE

Name: _________________________________________

Shop name: _______________________________________

Product Brand Cost Selling Quantity Stock Sales/mont Margin Consumers

Name name pric price sold h
e

NOTE

1. The surveyor can again add more rows as per convenience.

2. Here the surveyor may come across situation where the retailer is stocking some dead
stock, the stock which he had bought some months ago and has failed to clear that
stock due to some reason, this should act as a warning sign that not all what is bought
by the retailer will be sold, so we have to be cautious in getting things.
3. Here PMA is helpful as it will give a very clear picture about what needs to be
bought, how should it be stored and how much should be bought.

RESULTS

1. We can list out the products which are in high demand in the village.
2. Now surveyor will have the broader picture of what is being sold in the market, who
are the competitors, how much to stock and how much to sold and why customers to
the particular shop.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 22

 MICRO RETAILING 2010

2.5 SAMPLING AND SURVEYING

OBJECTIVE

To collect the data necessary to understand the market, customers and their need and wants

METHOD

Pilot Survey for a single product.

PROCEDURE

 Once the pilot survey on Retailers and Households are done, the surveyor now must
shortlist a few products which are very popular among households.
 The surveyor then has to draw a map of the village.
 Classify the population of the village into different segments on the basis of income
or class or region or community or culture.
 Prepare a Questionnaire for the product which is going to be surveyed.
 Now survey 10% of the population from each segment.
 Same procedure can be applied for the other products as well.

PREPARATION OF QUESTIONNAIRE

Since the surveyor is a Rural lady, she may be illiterate or may have little knowledge so it
becomes very essential to understand the Questionnaire by herself. So she can use her
imagination and make the questionnaire pictorial. Usage of relevant pictures can be used, for
instance: a picture of a nose for smell can be used.

Smell Quantity

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 23

 MICRO RETAILING 2010

NOTE
1. The questions should not be biased towards a particular product. Ex: do you like
santoor rather than Godrej No 1 soap? Here chances of getting a pure reply are
reduced.
2. Double barreled questions should not be used. Ex: do you like the smell and feel of
santoor? Here a person may like the smell but not the feel of santoor, the other way
also is quite possible and a person may not like both those attributes of santoor or may
like both of them. So it is wise to avoid these confusing questions, and to have
separate questions for these types.
3. The questions should not hurt the sentiments of any person.
4. The surveyor must not feel uncomfortable and avoid questioning certain groups of
people who are different than the surveyor herself on the basis of religion, caste and
income; here sometimes even genders can be included.
5. pictorial questionnaire can be used as a questionnaire for a specific product. Usage of
pictures will be attractive and answering this questionnaire will be easier for the
masses to reply.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 24

 MICRO RETAILING 2010

TO FIND OUT THE POTENTIAL OF A PARTICULAR VILLAGE:

The method used to find out the potential of a particular village was the personal interview
since it was necessary to understand the villagers first before we could start our project. The
personal interview was useful to get number of Household commodities which were
frequently bought by the households.

The products which we shortlisted are:

Groceries Soaps and Essentials Vegetables

Detergents

Sugar Wheel soap Bread Onion

Salt Nirma Soap Biscuit Tomato
Jaggery Rin Soap Egg Potato
Rice Sargam Soap Horlics Chillies
Turdal Santoor Bornvita Ginger
Udad dal Lifebuoy Pickle Garlic
Masoor dal Godrej No 1 Maggi
Wheat Lux Gutka
chilli powder Dove Ponds
turmeric powder Medimix Powder
Rava Sunsilk Fair and
Shampoo Lovely
Pohe
Basen Head andIodex
Shoulders Zandubal
Maida
Saadu dhana Clinic All Clear m
Puffer rice Vatika Shampoo
Moong dal Surf Excel
Dalda Wheel detergent
Jola Tide detergent
Milk
Sunflower oil
Soya oil
Palm oil
Groundnut oil
Coffee powder
Tea powder

Fruits Stationeries

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 25

 MICRO RETAILING 2010

Banana Pen
Apple Pencil
Musombi Candle
Chikku Book
Grapes Bulbs
Mango Bandies
Bangles
Toothbrush

THE VILLAGES WHERE WE WORKED ARE:

Valsang
Dharganahalli
Thanda Village
Bhogao
Musti
Thandulwadi
Boramani
Dhothri
Maradi
Kumbari

CATCHMENT AREA

To find out the potential of the Rural Retail Outlet, the Catchment area was 200
meter radius of the Rural Retail Outlet.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 26

 MICRO RETAILING 2010

2.6 DATA COLLECTION

The data was mainly collected from the primary source by visiting the villages and
surveying them. The first primary source was Sakhi, where we collected the data related
her Investment in the business and other details like Stock, Sales Profit ect. Villagers
were the next primary source of data collection, Where we collected the data related to
the commodities which are frequently bought by the villagers, the data like Quantity,
Price, stock and the Shop from where these commodities have been purchased.

Retailers were the another set of Primary source of data, they were helpful in
giving the details about the commodities which are regularly sold by them, the details
included are Selling price, stock , sales, Profit and kind of customers who approached
them. We visited Panchayath office to collect the data related to Population, Numbers of
Households and to get the classification of poor, medium and rich people. The next set
of primary source of data were the CEO, Operational Manager and other employees,
they were useful in giving the details about the company like its establishment,
Reporting Relationships, flow of organization communication, nature of ownership,
capital structure and different departments and their functions.

Internet, Books related to the Rural Marketing ,Articles and Manual were the source of
Secondary data.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 27

 MICRO RETAILING 2010

CHAPTER - 3
DATA ANALYSIS AND INTERPRETATION

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 28

 MICRO RETAILING 2010

3.1 ANALYSIS OF PMA

OBJECTIVE

To know the Market size of a product and to gauge the possibility for business success

METHOD

Analyzing the response sheets through master coding sheet.

PROCEDURE

 Take a large sheet (Master coding sheet), Questions of the response sheet should be
arranged in the large sheet in such a way that each symbol should represent each
column and each row should represent a customer.
 Each question has to be represented in the large sheet.
 Once all the questions (in the form of symbols) are represented in the large sheet,
Boxes checked on the response sheets should in turn be checked in the corresponding
box on the large sheet.
 Like this all the data should be transferred from response sheet to the large sheet.

A FORMAT OF A MASTER CODING SHEET:

Household
Name
1

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 29

 MICRO RETAILING 2010

NOTE

1. Make sure that you include each and every question in the large sheet (In the above
example Q5 and Q7 are excluded because of not enough space)
2. You can check two or three boxes for one question depending upon the answer got
from the consumers or households.
3. After a questionnaire is entered, mark the questionnaire so that it is not entered again.
4. Make sure that you check the same box as checked in the response sheet or
questionnaire.

ANALYSIS

In general analysis is done by adding all the checked boxes for a particular question
in a large sheet.

LOCATION:

Check where there is highest concentration of checked boxes ( Village market or City
Market) to understand where people buy the product the most. In our case we can see that
more people are buying from the local or village market. So if you want to establish a Retail
outlet in this village , you have to face a tough competition from the other local retailers since
the people are buying from village market most.

DEMAND

In our case we can see that the demand for Santoor Soap is more compared to other
soaps because santoor has got more checked boxes than others and Lux has least demand
compared to other sources. So Demand analysis helps us to stock those products which are in
high demand in particular are like santoor in our case.

SIZE

Most people consider the large sized soaps rather than small and medium sizes soaps.
So the conclusion would be one has to stock large sized soaps in Walsank village where we
surveyed.

ATTRIBUTES

As per our survey , most of the people think that the soap has to be skin friendly , some
people gave importance to the Fairness and few people have the opinion of good fragrance
and soft. This analysis helps us to understand what are the customers “WANTS” in a
particular product.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 30

 MICRO RETAILING 2010

3.2 POTENTIAL ESTIMATION OF VILLAGES

ANALYSIS OF VALSANG VILLAGE

HOUSEHOLDS

30

RICH
70 MEDIUM
POOR

50

The total number of households for the catchment area is 150

POTENTIAL OF EACH SEGMENT

161753
215323 Poor
Medium
Rich

226377

The total potential of catchment area of Valsang village is worth Rs 603453

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 31

 MICRO RETAILING 2010

ANALYSIS OF DHARGANAHALLI VILLAGE:

HOUSEHOLDS

Poor
Medium
Rich
26 41

The total number of households for the catchment area is 75

POTENTIAL OF EACH SEGMENT

61862
91383
Poor
Medium
Rich

128567

The total potential of catchment area of Dharganahalli village is worth Rs 281812

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 32

 MICRO RETAILING 2010

ANALYSIS OF THANDA VILLAGE

HOUSEHOLDS

Poor
Medium
27 Rich

21

The total number of households for the catchment area is 55

POTENTIAL OF EACH SEGMENT

48574 49044
Poor
Medium
Rich

89705

The total potential of catchment area of Thanda village is worth Rs 187323

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 33

 MICRO RETAILING 2010

ANALYSIS OF BHOGAO VILLAGE

HOUSEHOLDS

Poor
Medium
Rich
14 27

The total number of households for the catchment area is 50

POTENTIAL OF EACH SEGMENT

46480 48716
Poor
Medium
Rich

56118

The total potential of catchment area of Bhogao village is worth Rs 151313

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 34

 MICRO RETAILING 2010

ANALYSIS OF MUSTI VILLAGE

HOUSEHOLDS

15

Poor
Medium
Rich
52

33

The total number of households for the catchment area is 100

POTENTIAL OF EACH SEGMENT

126269 131641
Poor
Medium
Rich

173861

The total potential of catchment area of Musti village is worth Rs 431771

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 35

 MICRO RETAILING 2010

ANALYSIS OF THANDULWADI VILLAGE

HOUSEHOLDS

19

Poor
Medium
49 Rich

32

The total number of households for the catchment area is 100

POTENTIAL OF EACH SEGMENT

117229
153190 Poor
Medium
Rich

162801

The total potential of catchment area of Thandulwadi village is worth Rs 433220

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 36

 MICRO RETAILING 2010

ANALYSIS OF BORAMANI VILLAGE

HOUSEHOLDS

18

Poor
Medium
Rich
33
74

The total number of households for the catchment area is 125

POTENTIAL OF EACH SEGMENT

125051
137533 Poor
Medium
Rich

141515

The total potential of catchment area of Boramani village is worth Rs 404099

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 37

 MICRO RETAILING 2010

ANALYSIS OF DHOTHRI VILLAGE

HOUSEHOLDS

12

Poor
Medium
Rich
22 46

The total number of households for the catchment area is 80

POTENTIAL OF EACH SEGMENT

98153 98716
Poor
Medium
Rich

107666

The total potential of catchment area of Dhothri village is worth Rs 304536

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 38

 MICRO RETAILING 2010

ANALYSIS OF MARADI VILLAGE

Households

16

Poor
Medium
Rich
58
36

The total number of households for the catchment area is 110

POTENTIAL OF EACH SEGMENT

134111 128734
Poor
Medium
Rich

185203

The total potential of catchment area of Maradi village is worth Rs 448048

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 39

 MICRO RETAILING 2010

ANALYSIS OF KUMBARI VILLAGE

HOUSEHOLDS

10

Poor
Medium
29 Rich

21

The total number of households for the catchment area is 60

POTENTIAL OF EACH SEGMENT

51047
68772
Poor
Medium
Rich

89590

The total potential of Catchment area of the Kumbari village is worth Rs 209408.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 40

 MICRO RETAILING 2010

RURAL RETAIL OUTLET AND THEIR POTENTIAL

Village Catchment Area Households Potential in Rs

Valsang 200 meter radius 150 603453
Dharganahalli 200 meter radius 75 281812
Thanda 200 meter radius 55 187323
Bhogao 200 meter radius 50 151313
Musti 200 meter radius 100 431771
Thandulwadi 200 meter radius 100 433220
Boramani 200 meter radius 125 404099
Dhothri 200 meter radius 80 304536
Maradi 200 meter radius 110 448048
Kumbari 200 meter radius 60 209408

From the above data we can interpret that the village Valsang has Maximum Potential of
worth Rs 603453 followed by Maradi, Thandulwadi and Musti. The Village Bhogao have the
least potential of worth Rs 151313.

CLASSIFICATION OF RURAL RETAIL OUTLET ACCORDING TO THEIR

POTENTIAL

Small RRO Medium RRO Large RRO

Dharganahalli Musti Valsang
Thanda Thandulwadi
Bhogao Boramani
Kumbari Maradi
Dhothri

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 41

 MICRO RETAILING 2010

CHAPTER - 4
FINDINGS AND SUGGESTIONS

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 42

 MICRO RETAILING 2010

4.1 FINDINGS

 As per our survey on Sakhi Profiling, we found many problems which were faced by
these Sakhis and the problems are
 No Proper service was given to the customers on time
 More fluctuations in the price of the products like Oorja stove and
pellets
 Problem with the battery and Chamber replacement cost is high
 Margin was very less
 As per Participatory Market Appraisal of Soap in Valsang village, demand was very
high to the Santoor soap followed by Lifebuoy and Godrej No 1.
 Most of the villagers used to by the products from Village market rather than City
market since the products were available in the Village.
 The main attributes which contributed to the buying of Soap was Skin friendly,
Fairness, Germ protection, smooth and soft Skin.
 As per Participatory Market Appraisal of Toothpaste in Valsang village, demand was
very high to the Colgate brand followed by Dabur
 The main attributes which contributed to the buying of Toothpaste was Clean and
Strong teeth, trusted brand.

The Potential of the 10 Rural Retail Outlet are as follows

Village Catchment Area Households Potential in Rs

Valsang 200 meter radius 150 603453
Dharganahalli 200 meter radius 75 281812
Thanda 200 meter radius 55 187323
Bhogao 200 meter radius 50 151313
Musti 200 meter radius 100 431771
Thandulwadi 200 meter radius 100 433220
Boramani 200 meter radius 125 404099
Dhothri 200 meter radius 80 304536
Maradi 200 meter radius 110 448048
Kumbari 200 meter radius 60 209408

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 43

 MICRO RETAILING 2010

4.2 SUGGESTIONS

 The Company Sakhi Retail Private Limited(SRPL) should mainly focus on Service
delivery on time rather than just focusing on introducing new products and their sales.
 SRPL should first conduct a primary research on the product before they could tie up
with the Companies.
 SRPL should give more importance to the Training of Sakhis on How to run the
Retail Outlet and their interaction with the Customers.
 SRPL can adopt the PMA technique to establish Rural Retail Outlet in any village
 PMA technique is also useful in doing research and in Launching a new product
 Since Sakhis don’t have exclusive Retail Outlet for SRPL products, they can help
Sakhis in establishing the Retail outlet by providing microfinance. It also useful to
stock and sell SRPL products.
 This Rural Retail Outlet ca also act as Sourcing point for Agricultural prodects.
 As per our we feel that Sakhi are losing interest in the Business due to low margin , so
it is more important to SRPL to motivate them by giving rewards like gifts or Cash
amount, if SRPL wants them to be back in business.
 From our project we see that there is huge Potential exists in every village so it
becomes obvious to establish a Rural Retail Outlet.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 44

 MICRO RETAILING 2010

4.3 CONCLUSION

From our Project we can conclude that there exists a huge potential in every village where we
worked and it becomes very important to set up a Retail Outlet in the village. Among the
villages where we worked, Valsang has the Maximum Potential compared to other villages
followed by Maradi, Thandulwadi , Musti and Boramani. Valsang have the least Potential
among the villages.

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 45

 MICRO RETAILING 2010

ANNEXURES

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 46

 MICRO RETAILING 2010

QUESTIONNAIRES

EXAMPLE OF PARTICIPATORY MARKET APPRAISAL OF SOAP: WALSANG

VILLAGE

1. Name:
2. Class

Poor
Medium Rich

3. Purchase Place

City Market
Village Market

4. Name of Soap Purchased

Santoor Lifebuoy Godrej No1 Lux Dove Medimix Others

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 47

 MICRO RETAILING 2010

5. Quantity per Month

2-4 4-6 6-8 8-10 10-12 12-14

6. Size of the Soap

Small Medium Large

7. Reasons for Buying

Cheap Good smell Soft Skin friendly Quality

Doesn’t Melt Popular Germ protection Fairness Good cleaner

Hair friendly Freshness Brand loyalty Traditionally

used

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 48

 MICRO RETAILING 2010

PARTICIPATORY MARKET APPRAISAL FOR TOOTHPASTE:

1. Name:

2. Class

Poor
Medium
Rich

3. Purchase Place

City Market
Village Market

4. Name of the Tooth Paste used

Colgate Babul Close up Pepsodent Colgate Kolsa Ayurvedic

powder

5. Quantity purchased

<50gm 50gm 100gm 200gm

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 49

 MICRO RETAILING 2010

6. Quantity per Month

7. Reasons for buying

Cheap Good Taste Fragrance Traditionally used

Popularity White teeth Strong gum Germs killer

Shining teeth Brand loyalty Suggested by someone Health conscious

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 50

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 51

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 52

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 53

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 54

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 55

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 56

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 57

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 58

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 59

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 60

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 61

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 62

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 63

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 64

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 65

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 66

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 67

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 68

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 69

 MICRO RETAILING 2010

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 70

 MICRO RETAILING 2010

BIBLIOGRAPHY
1. MOVE, a trainers manual to promote access to market for the landless and women.
2. Rural Marketing, Concepts and Practices – Balram Dogra, Karminder Ghuman.
3. The Rural Marketing Book - Pradeep Kashyap, Siddhartha Raut.
4. The Old Pillars of New Retailing – Leonard L Berry (Harvard Business Review on
Customer Relationship Management)
5. Krafft, Manfred; Mantrala, Murali K. (eds.) (2006). Retailing in the 21st century: current and
future trends. New York: Springer Verlag.

U.R.L
1. www.google.com
2. www.sakhiretail.com
3. www.sspindia.org
4. http://www.scribd.com/doc/15986778/Rural-Retail-wwwmon3yconr

KOUSALI INSTITUTE OF MANAGEMENT STUDIESPage 71