Hypercs lla A Summer Project Report On “Marketing Activities & Customer Response for Hypereity” At “Hypersity Retail India Ltd” Pune Swangate By “Dharmendra Kumar Yadav" MBA-II (Marketing) Batch -2015+17 Under the guidance of Prof. Dr. Nilesh Gokhale ame of the faculty" Sire” Submitted to “'Savitribai Phule Pune University" In partial fulfillment of the requirement for the award of Degree of Master in Business Administration (MBA) me. @ MITSOM Submitted Through MAEER’S MIT School of Management,Kethrud Pune, MIT SCHOOLOF MANAGEMENTPope Declaration Title of Project Report Marketing Activities & Customer Response for Hypercity 1 Declare a) That the work presented fir assessment in this Summer Intemship Report is my own. ‘That it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledge. bb) ‘That the work confirms to the guideline for presentation and style set out in the relevant documentation. Date: 14" October 2016 Dharmendra Kumar Yadav Roll No- ISMMM034 MIT SCHOOLOF MANAGEMENTCERTIFICATI This is to certify that Mr. Dharmendra Kumar Yaday of MAEER's MIT School of Management has successfilly completed the project work titled Marketing Activities & Customer Response for Hypercity in partial filillment of requirement for the award of (MBA-MARKETING MANAGEMENT)prescrbed by the Savitribal Phule Pune University fiom 19" May 2016 to 18 fuly 2016 This project is the record of auiberie work carried out during the academic year 2016-2017 (Prof, Dr, Nilesh Gokhale) Prof.Dr. SayaleeGankar Internal. Project Guide Director - MITSOM. MIT SCHOOLOF MANAGEMENTHypercs ll Acknowledgement It gives me immense pleasure to express my sincere gratitude to all the helping hands who have guided me in the completion of this project. It was a great leaming experience for me to work on my project. As student of MIT School of Management; 1, Dharmendra Kumar Yaday got an opportunity of doing work on project. | took up the project with strong determination and tried to put in the best of my effonts. The project done by me is about “Marketing Activities & Customer Responds for Hypereity” and this project coukl not have been completed without the help of my faculty guide Prof, Dr, Nilesh Gokhale and my industry guide Mr Murlidharan Bijoy (Store Manager) & Mr. Ankush Patil (Executive Marketing Manager). Prof, Dr. Sayalee Gankar Dharmendra Kumar Yadav Director ~ MITSOM ISMMM034 MIT SCHOOLOF MANAGEMENTHyper lila INDEX S.No Detailed Contents Page No T | Executive Summary a9 Introduction Objectives of project ‘Seope of project Tndustry profile Thiraducton ‘COMPANY PROFILE Company history Vision mission “Global presence ‘Other details Services / Product profile Literature reviews Background sources, intemet relerences Research methodology: Data analysis and interpretations ‘Observations (Findings ‘Suggestions/ Recommendations ‘Conclusions “APPE! Bibliography Annexure > questonna re MIT SCHOOLOF MANAGEMENTLIST OF FIGURE PARTICULAR, PAGE NO. location of Respondents aa Age Group. of Respondents Preitrence for shopping at other then at Hypercity Satisfaction Level reganding billing speed at Hypercity Staff Service avilbility at Hypercity your shopping experience in Hypercity Brand and product avilability in Hypercity Ambience & Atmosphere inside the Store Discount and offers served in Hypercity Location of Hypercity in your City In offer days the shopping experience in the store MIT SCHOOLOF MANAGEMENTLIST OF TABLE PARTICULAR, PAGE NO. location of Respondents aa Age Group. of Respondents Preference for shopping at other then at Hypercity Satisfaction Level reganding billing speed at Hypercity Staff Service avilbility at Hypercity your shopping experience in Hypercity Brand and product avilability in Hypercity Ambience & Atmosphere inside the Store Discount and offers served in Hypercity Location of Hypercity in your City In offer days the shopping experience in the store MIT SCHOOLOF MANAGEMENTHyper lilla EXECUTIVE SUMMARY In a competiive imarkeipkice where businesses complete for customers, customer satisfiction is been is seen as a key differentiator and. increasingly has become a key element of business strategy. Customer satisfiction of the state of satisfietion will vary from person to person and productservice to productservice, The state of satisfiction depends on a. sumber of both psychological and physical variables which correlate with satisfaction behaviors such as retum and recommend rate. The level of Satisfiction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. The enormous reiail boom in Indian has given space to many companies who have mushroomed out to benefit from this retail boom, which is nothing but a structured format of the unorganized retail business which is being done in India fiom ages. Many stores have come up with exquisite interiors, state of the art infiastructure and the best possible products or services to the customer which fas led to the growth of mall culure in India, The stores try and attract customers by providing them with such services and plethora of options in products and services in different categories so that they can retain customers for long and make them loyal towards their retail stores. Consumers can either be subjective or objective, testing the persuasiveness of brand names Retail stores selling the products ako plty an importam role in swaying the decisions of consumers. Consumer may choose particular products/brands not only because these products can be ied 10 eNpress consumers’ personality, Social status oF affiliation or to fill their imemal psychological needs, such as the need for change or newness, Consumer behavior refers to the mental and emotional process and the observable behavior ‘of consumers during searching, purchasing and post consumption of a product or service, Consumer behavior invokes stuly of how people buy what they buy and why they buy. It blends the elements from psychology, sociology, and economics, It ako tries to assess the infuenee on the consumer fom groups such as family, friends, reference groups and society in general HyperCity tas brought about many changes in the buying habits of people. It has created formats. Which provide all items under one roof, HyperCity has maintained thit miqueness & has succeeded in attracting customers, Based on the topic objectives a questionnaine was designed and response is collected fiom the customers who are visting the Store. For data colkction convenient sampling method was adopted, For this project the area of research i HyperCity, Pune. MIT SCHOOL OF MANAGEMENTHyper lilla Where HyperCity is not just another hypermarket; it caters to every need of your sarily, HyperCity scores over other stores is its value for money proposition for Indian customers With the ever- increasing array of private labels; it has opened doors in the work! of fashion and general merchandise, inchiding home furnishing, ulensis, crockery, cutlery, sports goods and rach more at prices that will surpiise customers. MIT SCHOOLOF MANAGEMENTINTRODUCTION Background of the study HyperCity has brought about many changes in the buying habits of people. It has created formats, which provides all items under one roof, To attract more customers companies have fo cary out the promotional activities in unique way, HyperCity fas maintained that uniqueness & has succeeded in attracting, customers Need for the study India is having huge customer base having different choice and behavior. To satisfy their need is a diferent task. To achieve this Indian retail has change Kirana to retail outlets and has becoming the need in India. Different retail outlets are offering different scheme and promotional strategies. Thus a study is been conducted to know the effective marketing strategies needed to attract now as well as retaining. the existing customers, OBJECTIVES OF THE STUDY 1) To find out customer buying behavior for HyperC 2) To find out customer satisfietion with HyperCity, 3) To find out Product availibility in store by customer response. To find out ‘Shopping Experience’ in store during offér days. To check whether Discount and Offers affects the buying behavior of respondents, To conduct at HyperCity Marketing Activities main objective is Sales Promotion, Builling product awareness, creating interest in a product, providing. product information. MIT SCHOOL OF MANAGEMENTHypercit lila SCOPE OF THE STUDY © Scope of the study is HyperCity, Pune. + It aims ot understanding the company’s eslablishment, organization structure, department, wwehniques, marketing stratewies and the adva is having over the co LIMITATION OF THE STUDY © Time limit is a major constraint * As perthe company nies certain information was not disclosed MIT SCHOOL OF MANAGEMENTHyper lila INDUSTRY PROFILE (K RAHEJA GROUP Pe dm C.L Raheja Ravi Raheja Neel Raheja Chairman Group President Group President K Rabeja Corp is a success story spanning sit decades, and stands today as the most trusted destination developers of India. With business diversified across reality, hospitality, retail and retail development, the Company has pioneered the concept of self-contained residential township and commercial business districts in the country. Transforming spaces, this Corporate develops state-of-the-art structures that detiver on both innovation ane fiunctiona lity, From exquisite residences to adaptive workphee, skillilly created and. convention centers to Outstanding ‘retail destinations, the Company has made a significant impact on the evolution of modem-day living K Raheja Comp delivers aspirational spaces with distinct characteristics and attributes, making cach of is offering. inimitable, ‘The Company has ako been ahead of the curve in the green development sector. Pioncering the industries responsibilty towards contributing «0 a green society, it signed 9 memorandum of understanding with the Cll-green Building Council to constuct gwen buiding, back in 2007. Agen fiom its eco-ffiendly constructions, K Raheja Corp is committed to developing large, green expanses across the country. With is buikting certifed in the categories of Gold and Platinum, it has been recognized with awards across prestigious forums ke the “Global CSR Excellence and Leadership Awards 2014" — “accousing for Clinrite Change” Outstanding contribution for green building Footprint in India — Green Co summit. Best environment excellence Global mid CSR Awants 2012 at Philippines, Affica Sustainability Awards Green Mind CSR Awards at Lebanon and The Ingersoll Rand Intemational Energy Effciency Leader Awards’, MIT SCHOOL OF MANAGEMENTHyper lilla Backed by the belief that ‘peopl: are a company’s greatest asset and competitive advantage’, K Raheja Corp leads the way with exempkry HR policies, judiciously collated from the best across indusiries, to ensure employee engagement and fillfiment. The company has been recognized and awarded across credible industry forums like — ‘Dream Companies to. work for Awards’, 23" Global HR Congress’, Asian HR. Leadership Awards, Best Employer Brand Awards, Workls HRD Congress and Asia Pacific HRD Congress Awards, 10 name a few, With the upsurge in the Indian real estate sector, K Raheja Com is one of the main proponents that will level the playing fell for the India with other developed economics. Pioneers of Organized Ret K Raheja Corp brought the concept of organized retail to India with country’s first large scak, multi-brand lifestyle store — Shoppers Stop. ‘This merely iniarked the bith of a gain in the magnanimous retailing arena, Expanding its retail chains across the Country, K Raheja Corp is the front rimner and has set new benchmarking staying in tune with the cubue, customs, traditions, and spending power of its customers. Crosswon! and HyperCity have been burgeoning innovation and novel techniques in retailing ever since their inception. With brands that have evehed with customer feedback and keen observance of people's preférence, K Raheja Comp is at the hub of the retail evolution. With the endeavour influence lifestyle, K Raheja Corp has abo suecessfilly ventured into retail development with Inorbit Malls. Pioneering the mal cukure im India, the work class mals offer an amalgamation of fashion, lifestyle, fod and entertainment, delivering 10 families an-exceptional entertainment destination. 1.1.1 KEY GROUP COMPANIES: Retail © HyperCity Retail Store India PVT. LTD. Shopper Stops Crossword Inorbit mall MIT SCHOOL OF MANAGEMENTHypercit lila HYPERCITY HyperCity is not just another hypermarket; it caters to every need of your funily, Where HyperCity scores other stores is its value for money proposition for Indian customers. With the ever-increasing array of private lnbek, it has apened in the world of fashion and general merchandise, inchiding home finishing, utensils, crockery, cutlery, sports goods and tmuch more at prices that will surprise customers. HISTORY OF HYPERCITY The first HyperCity store, with an area of about 1, 20,000 square feet, opened Malad, Mumbai in 2006. HyperCity (styled HyperCity) is a supermarket chain which curently operates 17 stores throughout India, Founded in 2006, HyperCity Retail (India) Lid. Is part of the K, RahejaCrop.Group, a leadet in the Indian relail sector? K. Rabija Corp belped create modem retiling in India with the Shopper's Stop, Inorbit Mall and Crossword chain in addition to its sucesses in realty and hospitality HyperCity Retail (india) Lid was incorporated in May 2004, as an associate Company of Shopper's Stop which has a stake of 19% in HyperCity. It is operational in the format of hypermarkevsupermurket in India, The Company offers a wide minge of product segment like food, home ware, home ettertainnenl, apphances, fimnitire, sports, toys, and fashion. The Company provides a wide array of exchisive brand across all segmems like Freshbaskets, HyperCity, Waitrose in fod & grocery; Ebano and Avorio in home, decor & furnishing; Vive, City Sense, City Styl,City Life, River Inc, In fashion segment; Teognis in household appliances and Raliegh&Maxit in sports segment, It also has in-store restaurants named Desi cafe and Brio, HyperCity’s new format GourmetCITY is a food store having juice bar, sated counter, bakery, tea and coflee bars, handmade chocolates, freshly baked breads and many more. HyperCity has partnered with JHP of London for in-store design, JDA for technology inffastructure, johnsonDiversey for cleaning and hygiene products & services. HyperCity opened its first store in Malad, Murbai. Today, HyperCity has opened a total of 17 stores since the Company's founding and has established a presence in cities including Hydrabaad, Bangalore, Jaipur, Anwitsar, Bhopal, Navi Mumbai, Ahmedabad, Vadodara and Pune, New Delhi, MIT SCHOOL OF MANAGEMENTTo be an integral part of customer fives, by offering them high quality shopping experience through great products at ever better prices. MISSION- To sustain profitable growth by encouraging customer to diseover an authoritative assortment of quality products with exciting promotions in a globally competitive retail environment and create through our company values an environment where our employees grow within the business. steadily, REWARDS & RECOGNITION HyperCiy, Munbai won The Award of Merit for large format speciality store at the United States Intemational Design Award in New York on 15" January, 2007, This is the first time that an Indian Company his received an awanl lke this. This was the 36" award fimetion for the institute of Store phinner/VM-+SD International Store Design, New York. HyperCity was voted as India’s top retail store by ‘Retail Week’, a leading U.K, magazine revered by retailer worklwide, It was voted as the 100 shop you must visit across the work! and was featured amongst intemationally renowned: store such as Bloomingdales New York, seliridges U.K, Louis Vuitton Paris and carefour shanghat The special repo carried weightage for innovation and creativity in retail, as well as recognizing retail excellence. The report was based on 2 survey carried out by Retail Weck amongst key players in the retail industry consisting of businessman, analysis, retail consultants, editors and top. shoppers around the gle. HyperCity bagged the prestigious award of the “Most Admired Food & Grocery Retailer of the Year — Private kibel Development Award” at the Coca Cok Goken Spoon Awards held. ‘on December 12, 2012 at the Renaissance Hotel, Mumbai. HyperCity Pune Store was awarded for the best Store design in the Hypermarket Category’ at the Visual Merchandising & Retail Design Awards 2012, Retail sorum held on the 10! and 11'* October 2012 HyperCity has been awarded the most admired Retailer in the Hypermarket Category. MIT SCHOOL OF MANAGEMENTHypercity ll ls Coca Cola Goklen Spoon Awards 2009 images award for excellince in food retailing awards Gourmetcity as “Most Admired Food Retailer of the Year" & “Innovative Retail Concept’. Star Retailer Awards awarded Gourmencity Debutant Retailer of the Year 2008. The Bok! 100 — IDC India CIO magazine has recognized Shoppers stop and HyperCity as a recipient of 2008 CIO 100 Award, ‘The anmal award program recognizes those executives and organisations those are playing not just to survive, but to win and embrace great risk for the sakeof great reward, Most Admired Retailer of the Year for Retail Design & Visual Merchandising Images in India Retail Forum, 2007, ‘The organisation structure for HyperCiy is fat in nature, For HyperCity, the division are apparel non apparel and the new business division, which includes jewellery, footwear and the shop-in-shops, for Hyper saver, a separate team has been created which again works independently. About 1,000 people works for HyperCity directly, support and ancillary services comprise another 300 people. A mew tinge is put through basic three day training program before on the shop floor. Evakmtion is done every six month, THE STRATEG Saving is Key to: the Indian middle class consumer, The store, which woukl be created, Ind 10 offer value 40 the consumer. Keeping this in mind, the concept of HyperCity was created. In India, when a customer needs something for the home, a typical thought is 10 seek it fom the bazaar, A bazaar is a pkice where a compkte ringe of products is always availible to the consumer, This is true across India, As the store would offer a large mix of products at a discounted price, the name Cityfinatised. The idea was to re-create a complete bazaar, with a kirge produet offering (at a time modified to suit local needs) and to offer a good depth and width in terms of range. The mind (0 market for the first store was just six month Price was the basic value proposition at HyperCity. The HyperCity outlets sokl a variety of products at prices, which were 5 16 60 percent lower than the market price. The fine “Big_store — Big saving” and “HyperCity — Hyper saveremphasised this MIT SCHOOL OF MANAGEMENTHypercit lila Few Popular Private Label Brands: FASHION BRANDS NeprEBES “Style FMCG BRANDS EVERY, Waitrose HOME & FURNITURE BRANDS AVORTO MIT SCHOOLOF MANAGEMENT Page | 17.SPORTS BRAND ELECTRONIC & APPLIANCES BRAND technix MIT SCHOOLOF MANAGEMENT Page | 18.MARKETING MIX OF HYPERCITY, A. Product With a better understanding behavior across various cultures and classes. HyperCity has pil together a stunning range of over 150,000 SKUs, Private bel of HyperCity are among the largest apparels and fashion brands in the country. These Reverinc — men's: casual wear range and City fife — men’s formal wear range; joo jobs, such are exclusive ginvents designed for modem kids; ‘tara, a bibel of ethnic wear for women; Reverine, haionable western wear for teenage girls; Ebano, a kibel that caters to an entire range of home linen, utensils and crockery. HyperCity Is also tied up with a host of well-known brands which offer exclusive lines created especially for the store. These inchded Lee Cooper, Fling Machine, Proline, SDL, Puma, and Lotto, MIT SCHOOLOF MANAGEMENTHypercit lila Products in Apparel Section: Formal Shirt & Paints Dress Materials 1) Infants Casual Shirts & Paints Jeans & Tops © Shit & Paints Party Wears Night Wear © Frocks Jeans & T-Shirts Westem Wear © Innerwear Lingerie Bis Fiddiing (Other Accessories Bed lems Undergarments Other Act 2) Boys Section © Jeans & T-Shirts © Shits & Trousers © Undergarments 3) Girls Section * Cotton Frocks: © Westem wear Products in Toys & Stationary: Soft Toys Drawing Books Barbe Dolk ‘Office Stationary Remote & Manual Cars Diary Notebook, Copies Outdoor & Indoor Games File & Foklers Kids Cyeke Coin Box, Clip Boards ete. Skating Board Puzzle Game ete. MIT SCHOOL OF MANAGEMENTHypercity lalla Luggage & Furniture & Electronics Department: Bags Bed Room Accessories Microwaves Bricfease Dining Table Music Players & Speakers Dulles Sofa Sets Primers Laptop Bags Table & Chairs’ Fan Office Bags Wardrobe Juicers, Mixers & Water Purifiers. ete. Pouches Mattresses ete Plastics, Utensils & Crockery (PUC), Footwear & Home Fashion Seetion: mal, Spo ‘Sandals © Ladies Sandals, Sleepers Towels, Curtains Chairs ete © Men Casual Shoes Carpets ‘Utensils: ‘Door Mats, Dusters Plates. Bowk, Gusses Apron Table Covers Kitchen Tools Tilfin Boxes Cushion Covers: Crockery Table Materials Dinner $ Wine, Jui MIT SCHOOLOF MANAGEMENTHyperciy lila Food & Non Food Section: 1) Staples: Tome Care: Bal, Rie, Atta, Rava hens Phenyl, Detergents Oils, Masala Ttens: Dish Wash, Tissue Papers, Seraich By Friis Fresh Wrap Spicy ems Personal Care: Ready Meals Soaps, Toothpaste, Shampoo Breakfast Cereals Deodorants, Body Spray Processed Food: Baby Food, takum Powder Health Drinks Ready To eat Com Flakes, Chips Instant Mixes ‘Soups, Bread items, Pickle Beverages: Soft Drinks Mineral Water Tuices Frozen items ‘Confectionaries . PRICE: The Pricing objective at HyperCity is to get “Maximum market Share", Pricing at HyperCity is based on the following technique «Psychological pricing:HyperCity offers financing at knw interest nite, The concept of psychological pricing (Rs. 99, Rs. 199, etc.) is ao used to attract customers, Differentiated Pricing: Differentiated pricing ie. difiérent in rate based on peak and no- peak hours or days of shopping i also a pricing technique used Eg, Wednesday Bazaar, MIT SCHOOL OF MANAGEMENTnvlill 3. Bundling: It reférs to selling combo-packs and offering discount to. customers, The comboepacks add vakie to customer and lead to increased sales. HyperCity phys a lot of importance on bundiing. Eg. 3 Good Day family packs at Rs 60 (Price of I pack =Rs 22) 3kg Oil + Skg Rice + 3kg Sugar for Rs, 679. Buy 2 get | fice. . Special Event Pricing: Buy 2 Two Liter Cock at Rs. 75 (MRP of one Bottle is Rs, 65) offer valid for 2 days only, C. PLACE: ‘The success of any retail store depends on three factors — Location, Location and Location, The HyperCity stores are opentlional across three formats — hypermurkets spread over 40,000-50,000 sq fl, the Express format over 15,000 — 20,000 sq ft and the Super centers set up over I lakh sq fl. Currently HyperCity operties in over 18 cities and across indin with 18 stores, These store normally Icated in traffic areas, In Pune HyperCity is situated near societies so the people can easily access the stores through the best mode of public transport. In order tw gain a competitive advantage HyperCity has bunched a website wanw.HyperCitvindia.com, which helps customers to orders products online which will besetiered to their doorstep, ‘This helps in saving a lot of time of ts cistomers. D. PROMOTION: a, Gift Vouchers of HyperCity: HyperCity offers Git Vouchers to attract the new and retain its existing customers. These cards are offered to satisfy the different needs and to provide maximum benefit to as loyal customers. lle —— SS MIT SCHOOLOF MANAGEMENTb. Discovery Club Cand (DCC This program emables customers to collect points on shopping bill amount and redeem this points on next shopping bill amounts. | poinis means 0.7Sps Customers get 100 points means get 75 Rupees. ©, Employee Discount Carts: All empbyees are given a Special Discount Card Known as EDC. Through this eard the employees can buy any product at a special discount of 5% to 20% on difitrent product category over which there is no any promotional offer is running There is a limit fixed over each EDC which varies over sakiry structure of employee, means higher the salary higher the discount limit and vice versa. ‘The card is valid for one year or the discount limit of each card whichever is less, Other Promotional Activities: 1) Advertising Before designing the advertising campaign for the HyperCity brand, the message that needs to deliver about the brand through advertisement needs to be designed, It woul itvolve following three elements: Style of the Message: Style of the message would be Valk and Benefit Provider and attention secker. Tone of the message: The Tone of the message would be positive. Message Text: “Big Store — Big Saving” — This single line statement woul convey the modem retail format of the HyperCity. Advertising campaigns for HyperCity will take plee in the form of followings 2) Print Ads: This woukl take place in the form print advertisement in newspaper. The advertisement would initially aim at educating the consumer about HyperCity as a brand, An efféctive cominunication as has been of “Big Store — Big saving” and comparison of price of various consumer products at HyperCity visi-vis local market prices. HyperCity newspaper advertisements will be presented just befbre the lunch of any new scheme MIT SCHOOL OF MANAGEMENTMIT SCHOOL OF MANAGEMENTHypercily i iA Big store. Sig savings. MIT SCHOOL OF MANAGEMENTHyper: avila 3) Road side advertisements: Road side advertisement will take the form of road side billboards which would be displayed at prime locations in the cities conveying the central idea of HyperCity of law Prices and quality products. The bol-boards will display the catch phrases about HyperCity aiming to atiract the consumers, Radio Ad; The objective of radio based advertising is to inform the customers at the new happening at HyperCity outlets while at the same time conveying the cukure of HyperCity of offering the values deak for a broad range of products. Sales Promotion: Sales promotion activities for HyperCity will take place through the folowing. forms. 5.1 Coupons: In order to boost sales, various discounts coupons. will be offered to buyers at HyperCity such as “buy f+ get I five”, discount coupons on bulk purchase. Such a step would help to increase sales per consumer of the HyperCity. At the same time, coupons can be printed in local newspaper ads that can be availed on these coupons with respect to spreific purchase. This will help draw consumers to the store and initiate purchase: 5.2 Gift Vouchers: HyperCity offérs gif vouchers of different denomination for Gitling their vahwble customer or are avaible to be gifl some dear one so that he/she can redeem it in hivher desired shopping product 5.3 Contests: Coitests will be hosted by HyperCity with some incentive which will help to generate awareness about HyperCity as a brand. The theme lines of the contest will help spread awareness about the various offering of HyperCity and best deals offered by HyperCity thereby boosting HyperCity brand, 5.4 Personal selling: Personal selling woukl aim at educating customer at the point of purchase and help them making a betier purchase decision with respect to consumer products. This woukl help to build consumer satisfaction and give consumer a feeling of having mide a right decision, There are following esseential ekments critical to personal selling in the context of HyperCiry. © Weil trained staff MIT SCHOOL OF MANAGEMENTHyper lila * Motivation to employees to think out of the box and take innovative steps.training woukl be provided to the staff about the differen products in the store and persunsive and communication skits in order to intact effectively with the buyers, Tring would be provided to the sakes person at the store evakiate buyers’ the buyers to purchase product, build conveniction about the brand and influence the buyer to purchase the brand. While doing this, a continuous effort woukl be made to educate the buyer of the core culture of HyperCity of value dea and provide efficient customer value to the consumers. 6.5 Public Relation and Publicity: The objective of Pubic Relation and Publiity as a marketing communication mix for HyperCity as a brand is to establish good-will in the minds of the consumers. The various Public Relation and Publicity campaigns which will be used to build HyperCity brand woukl be through the folowing Events Sponsorships MIT SCHOOL OF MANAGEMENTHypercitylilla LITRETURE REVIEW Marketing for a Retail Business is an integral part of any retail organization. It is believed that customer doesn't buy the product all the time: it is the marketers who create the demand for their product. Implementing marketing techniques can help retailer increase sales Every business & a marketing business, as John jamtseh, author of “Duct Tape Marketing", says in his book. This is especially true fr retail businesses. In a competitive business environment, starting a retail business is only half the job done. Retailers must constantly Work toward getting customers to buy their products and convert potential customers into sales. Knowing and applying basi’ marketing techniques can boost the retail business and give it an edge over competition. Today businesses are employing various marketing and promotional strategies to retain their consumer base. With the concept of rekitionship marketing surfacing the market is completely consumer oriented, and the sole aim of any business taday # to serve and satisfy their customers in the best possible manner, The fact that consumer retention has gained precedence over acquiition, considering the cast involed, has made it ever) more important for businesses 10 satisfy) the consumers and win their loyalty. With competition hotting up, Indian retail chains are beefing up their marketing activities to recharge their brands. Gibson Vedamani, Chisf executive officer, Retailers Association of India, the Industry's apex body says that “Since retail chains have atiained a certain kevel of operation, the focus Will shit to above-the-line (ATL) marketing Each store will now want to communicate their brand differentiation to their consumers.” Julie-Ann Atos a ffeckince business writer says “If you are in the retail business then you peed to wake up and think carefully about your current marketing strategy, If you don't you could find yourself iniling behind the competition and bosing business to other retailers.” Therefore for fomulsiing the effective marketing strategy the marketer should keep in mind the following for the retail busine 1, Research and identify your target market, A. retail business usually depends on a defined eal area, so determining the location, market size and buying habs of your target MIT SCHOOL OF MANAGEMENTHyper lilla market will help you identify your potential customers and how you can promote your retail business to them. Develop a unique marketing message. Think of how your retail store or product helps solve a particular problem or satisfies a specific need of your target market and what mukes your product better thin competition, Ensure that this core marketing message is used across all channels for promoting your retail business. Create a marketing kil, Print business cards and broachers that fst your contact details and the products and prives you offtr so that customers have quick access to the information they need and can follow up with you letter, As part of your marketing kit, cteate a periodic e-newsletter with information about special sakes, tips on using your products and new products you are offering, Developed a website. The website should provide all relevant information about your business and products, Set up an online store to allow customers tw purchase your products directly from the website. This will boost your sakes and help you attract eustomers beyond your local market. Advertise in Iocal publications or on online sites that are rekyant to your product or nurket. Though advertising can be expensive, it can help directly promote and educate potential customer about your product and i benefits, Include a call to action in the advertisement by offering readers a discount coupon. Engage and build relationship: with cusiomers online. Using low cost social media. too’s such as a blog, Facebook page connect and start a conversation with prospects. and exiting customers and keep them informed of itest prodiicts, events or sakes To drive foot traffic 1 the retail store, one needs to employ retail marketing, activities. Retaining customers is done with good service, product selection and competitive pricing, getting customers through the door for the first time, or bringing back ok! customers, is achieved by using effective marketing promotions. MIT SCHOOL OF MANAGEMENTHyper lilla Retailing Industry in Lndia India rises to 15th behind solid growth in retail sales and Strong prospects for fimure GDP growth, India's retail market is expected to grow 1 $1.3 trlion by 2020, and GDP is expected to grow at § percent over the next three years, making India the world's fistest~ growing major developing market. Consumer and investor sentiment have seen an uptick, as the pro-refoim. goverment under NarendraModi sets out on an ambitious goal of improving its Ease of Doing Business ranking from 142nd to SOth in the next two years. India represents a good opportunity for intemational retailers in singk-brand retail, cash-and- carry, and e-commerce, a5 the country appears to be on the cusp of a strong growth phase over the next five years. The tipping point for brick-and-mortar retail continues to be the ‘opening up of FDI norms in muti-brand retail, a move that is not expected in the near-term, For now, intemational retailers contime to focus on the casheand-camy and. singl-brand formats, where 100 percent FDI is allowed. After two years of dommancy, Walmart will open a new outlet in Agra in 2015 and plans to add SO wholesale stores to is existing 20 in the next fie years. Germanys Metro: will tiple the number of whoksale stores to 50 by 2020. Many single-brand retailers such as Japan-based Asics, Danish retaiier Bestseller, and French fashion brand Sisky are breaking away fiom ffanchisee tie-ups with Indian partners to go solo, Nike, which fas about 400 ffunchise locations in India, fled an application in September to open company-owned stores. Meanwhile many new entrants remain undecided between partnerships with local companies versus. company-owned stores. IKEA, which alko sources lically, plans to open its first soko store in Hyderabad, H&M will ako enter India alone with pkins to open an iitial SO shops, In contrast, Gap and The Chikirer's Plce have chosen to partner with Arvind Lifestyle Brands As retailers continue to expand, real estate availbilty coukl be the biggest barrier. India has four times the population of the United States but just one-tenth of the mall space. Many mal are also of poor design and lag behind gkibul standards. The dearth of quality space in core areas is prompting some retailers to look online instead, E-commerce recorded impressive 27 pervent growth in 2014 to reach $3.8 billion, led by ‘online retailers such as Amazon, Flipkart, and Snapdeal. However, this market stil has a long way to go as online remains just 0.5 percent of the total reiail market, Intemet penetration is just 20 percent of the population, and infrastructure needs to improve significantly, Indeed, MIT SCHOOLOF MANAGEMENT Page | 31,Hypercit lila the Associated Chambers of Commerce and Industry of India estimates that companies will spend between $1 billion and $2 billion on e-commerce-relted infrastructure over the next five years, ‘The Indian retail Industry is the fith kangest in the world, Comparing of Organized ad unorganized sector. Indian retail industry is one of the fastest growing industries in india, especially over last few years. Though initialy, the retail industry in India was mostly unorganized, however with the change of tastes and preférences of the consumers, the industry is getting more popular these days and getting organized as well The US-based global management consuling fim, A T Keamey, in its Global Retail Development Index (GRD!) 2012, has ranked India as the Fifh most attractive nation for retail investment, among 30-emerging markets, Indian retail industry 8 second largest employer affer agriculture, employing more thin 35 milion people with wholesale trade generating additional 5.5 million employments, accounting for over 10 percent of the country’s GDP and around $ percent of the empkayment, as per the National Sample Survey (NSS) 2009-10, India’s retail sector is estimated to touch US$833 billion by 2013 and USS 1.3 trillion by 2018, with a compound annual growth rate (CAGR) of 10%, which is quite lucrative, Retail Industry in India % at the crossroads. It has emerged as one of the most dynamic and fist paced industries with several players entering the market, But because of the heavy initial investment required, break even 's difficult to achieve and many of these players have not tasted success so fir, However the fimure is promising; the market & growing, government policies are becoming more favorable and emerging technologies are facilitating operations Organized Retailing (159%) Retail Industry Unorganized Retailing (85%) MIT SCHOOL OF MANAGEMENTHypercity lila Retailing in India is gradually inching its way toward becoming the next boom industry, The whok concept of shopping has akered in terms of format and consumer buying behavior, ushering in a revaluation in shopping in India. Modem retail has entered India as seen in sprawling Shopping centers, multi-siored malls and Inge compkxes offer shopping, entertainment and food all under one roof, ‘The Indian retailing sector is at an inflexion point Where the growth of organized retailing and growth in the consumption by the Indian populitinn is going to take « higher growth trajectory, The Indian population is witnessing a icant change in its demographics. A lange young working population with average age of 24 years, nuckar families in urban areas, along With increasing working-women populition and emerging opportunities in the services sector are going to be the key growth rivers of the organized retail sector in India, Opportunities for the Organized Retail Sector in India bitip//business. map sofindia.car ail industry/opportuné reainized-retai sector hum! The opportunities in indim organized retail sector are many for this sector is witnessing a boom. The Retail industry in India amounted 10 USS 200 billion in 2006, and out of this amount the Indian organized retail sector amounted to US$ 64 billion. The opportunities in India Organized retail sector can be judged fiom the fict that by 2010 itis expected to rise to USS 23 billion, Many Indian companies seeing the various opportunities in organized metail sector in. India have entered it Pamalbons have decided to increase its retail space to 30 millon square feet with an investment of USS. 1 billion, Reliance industries Imited is targeting for annual sales ‘of USS 25 billion by 2011. I is phnning to invest USS 6 billon in onder to open 1,500 supermarkets. and 1000 hypermarkets, Bharati telecom i planning a joint venture with Telco 4 gbbal retail giant worth £750 million. 1. India’s booming economy is a major source of opportuiity. It is the thitd largest in the work in terms of purchasing power. India is the second fistest growing major economy in the workd, India’s huge population has per capita income of Rs $3,331 PA in 2010-11, ‘The proportionate increase in spending with eaming & another source of opportunity. MIT SCHOOL OF MANAGEMENT Page | 33Hyperci lll 4, With the Indian economy now expected to grow at over 8% and average Salary hikes of about 15%, manufhctures and retailers of consumer's goods and services can expected a major boost in consumption. The Demogaphy dynamics are ako fivorable as approximately 60 percent of Indian population is below the age of 30 Increasing instances of double: incomes. in most families coupled with the rise in spending power, Increasing use of plastics money for categorics retailing to Apparel, consumer Durable Goods, Food and Grocery ete Increased automobile penetmtion amt an overall improvement in the transportation infiastucture, covering distance has become casicr than before. Now a customer can travel mis to reach a particuhr shop, if he or she sees value in shopping from a particular location, MIT SCHOOL OF MANAGEMENTHypercity lila Retailing formats in India Malls Specially store Discount store Department. stores wail Malls: Malls are largest form of organized retaiting today. Located mainly in metro cities, in proximately to urban outskins they range from 60,000 sq.ft. 10 7,00,000s9.f. and above, They kend an ideal shopping experience of product, services and entertainment, all under acommon roof, E.g. Inorbit Mall, kumar Pacific Mall, Specialty Stores: Focusing on specific market segments and have established themsehes strongly it their sectors. Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's music World and the Times Group's Music chain Phinet M is a couple of example, Discount Stores: As the name suggests, discount stores or factory outlets, offer discount on the MRP through seling in bulk reaching economics of scale or excess stock left over at the season. The product category can range ftom a. variety of perishable/ no perishable goods, Eg. Levi ‘actory outlet, Adidas Factory outlet etc, Department stores: Large stores ranging fiom 20000-50000 sq fi, catering to a variety of consumer needs, Further they are ckssified into localized department such as. clothing, toys, home, fimiture, groceries, etc, Exp. Shoppers Stop, Liftstyle, ete MIT SCHOOL OF MANAGEMENTHyperci lila ¢) Hyper marts/ supermarkets: Large self’ service outlets, catering. to varied shopper needs termed as Hypermarket/Supermarkets, ‘These are located in or near residential high streets. These stores today contributes to 30% of all food & grocery organized retail sakes. Normally Hypermarkets are ranging from 30,000 sq ft and more. Super markets can further the chissified info mini supermarkets typically 1,000 sq fl to 2,000 sq fi and large supermarkets ranging from of 3,500 sq fi to 5,000 sq ft having a strong focus on food & grocery and personal sakes. Eg. HyperCity, Big Bazar, More Hyper, Spencer ete for Hypermarket and Food Bazaar, Relate Fresh are called as Supermarket Convenience Stor These are relatively small stores 400-2000 sq feet Iocated near residential They stock a lintted range of high tumover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slighily higher due to the convenience premium. E.g. In.& Out ete. MBO" Multi Brand outlets, abo known as Category Killers, offér several brands across a single product category. These usually do well in busy market places and Metros. Eg Brand Factory, Planet Sports ete. h) E-trailers: Retailers providing online buying and selling of products and services, 1.2 MAJOR RETAILERS EN INDIA The major retaikr’s occupied in the organized retail sector in India are: K Ratheja Group Future Group Aditya Birk Group Reliance Group . Bharti Group Tata group RPG Group MIT SCHOOL OF MANAGEMENTBTL Marketing Definition: “BTL Marketing’ stands for “Below The Line Marketing’ that targets specific groups of people with feus, For example, a leaflet drop in a specific area, a Google Ad words campaign targeting a certain group or a direct telemarketing campaign targeting specitic businesses. The kind of Marketing is best tor conversions and direct response. ‘Types of BTL Activities: 13 Below The Line (BTL) Promotional Techniques Following are the different types of BTL too’ being used for consumer promotions: 1} DDS (Door to Door Selling) 2) Coupons 3) Rebates 4) Promotional Pricing 5) Trade-In 6) Loyalty Programs 7) ‘Trial Generation and five Sampling 8) Free/Extra Product 9) Premiums 10) Contests and Sweepstakes 11) Demonstrations. 12) Personal Appearances 13) Sponsorship Daor to Doar Selling: Door-to-door is a sales technique in which a salesman walks from one door to another trying to sell a product or service to the generel public. A variant of this involves cok calling first, when another sales represenmutive attempts to gain agreement that a salesperson should visit, Door-io-door selling i usually conducted in the aflemoon hours, when the majority of peopke fare at home, MIT SCHOOL OF MANAGEMENToducts Typically, products sok! door to door will be of the same variety that can be purchased at large discount stores. The products accounting for the largest share af direct-sales. revenue includes cleaning supplies, cleaning equipment, magazines, and home improvement products, The luegest of these Woukl be the home iinprovemenit products where item could be new or repaired roof, siding, new replacernent windows, and decorative stone, In Pakistan the first DDS was launched by Wheel Washing Powder back in 1995 with a notable success. Its competitor Aerial Surf was the immediate follower, Since then a lot brands have adopted this tool which incite: ‘Lifebuio y Blue Band Energile Laws Macleans Head & Shoulders Interestingly, i many countries, encyclopedias, including the Encyclopedia Britannica, were frequently sokl by doorto-door salesinen, although the practice is now kss common. Coupons: Most consumers are quite familiar with this form of sakes promotion, which offers purchasers price savings or other incentives when the coupon is redeemed at the time of purchase, Coupons are short-term i nature since most (but not all) camry an expiration date after which the valu my not be received, Ako, coupons require consumer involvement i order for value to be realized. In most cases involvement consists of the consumer making an effort to obiain the coupon (e.g. clip from newspaper) and then presenting it at the time of purchase. Coupons are used widely by marketers across miny retail industries and reach consumers in a number of diferent delivery formats including: Free-Standing Inserts (FSI) ~ Here coupon phicement occurs loosely (ie., inserted) within media, such as newspapers and direct mil and may or may not require the customer to cut anvay from other material in order to use. MIT SCHOOL OF MANAGEMENTPpa Cross-Product — These consist of coupons placed within or on other products, Offen a marketer will use this method to promote one product by placing the coupon inside another major selling product. For example, a pharmaceutical company may imprint a coupon for a cough remedy on the box of a pain medication. Ako, this defivery approach is used when wo marketers have struck a cross promotion arrangement where each agrees to undertake certain marketing activity for the other, Printout — A delivery method that is common in many food stores is wo present eaupons to a customer at the conchsion of the purchasing process, These coupons, which are often prinied on the spot, are intended to be used for a fiture purchase and not for the current purchase Which triggered the printing. Product Display — Some coupons are nearly impossible for customers to miss as they are located in close proximity to the product. In some instances coupons may be contained within a coupon dispenser fastened to the shelf holding the product while in other cases coupons may be attached to a special display (see POP display below) where customers can remove them (c.g, tear off), Internet — Several specialized websites, such as HotCoupons.com, and even some manuficturer’s sites, allow customers 10 print out coupons. These coupons are offen the same ones appearing in other media, such as newspapers or direct mal, Customer Satisfaction: Definition “Consumer Satisfaction is the provision of goods or services, which fulfils the customer's expectations. in tems of quality and services, in relation to the price paid” -The Glossary of Marketing Communication Terminology Business must focus on Customer satisfiction, They naist monitor customer satisfaction, as this will lead them to increase their customer base, customer loyalty, revenue, profits market share and survival Although greater profit is the primary driver, exemplary businesses focus ‘on the customer and hivher experience with the organization. Businesses today work to make their customers happy and see customer satisfiction as the key to survival and profit, MIT SCHOOL OF MANAGEMENTRESEARCH METHODOLOGY Since the study is on retail sector first the detail observation of the store is been conducted about its Management team, its structure, the number of departments, which all brands the store has, who are its suppliers, about its warehouses ete. Based on the topic objectives a questionnaire was designed Which consist of 1S questions and Fesponse i collected ffdm the customers who are visiting the store, For data collection convenient sampling method was adopted. For this project the area of research is HyperCity, Swargate (Pune), Objective of the study: To find out customer buying behavior for HyperCiy, To find out customer satisfietion on HyperCity. To find out Product availability in store by customer response. To find out “Shopping Experience’ in store during offer days. To check whether Discount and Offers afféets the buying behavior of respondents. To conduct at HyperCity Marketing Activities main objective is Sales Promotion, Building product awareness, creating interest in a product, providing. product information. MIT SCHOOL OF MANAGEMENTHyper lilla A research Methodology is a way to systematically solve the research problem In research Methodology we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them, Research in common parkinee refers to a search for knowledge, Information 8 the lebhod ‘of managerial decision making. The purpose of methodology section is to describe the research procedure by which the relevant information is gathe This section comprises the research design, the data colkction method, the sampling procedures and analysis procedures. Research Methadology includes: Research Design Sample Design Data Collection Data Analysis Researeh Design: A Research design is the overall phn or program of research. It is the gener! blueprint for the collection, measurement and analysis. of data, It inckales. an outline of what the investigator will do form writing the hypothesis and their operational implications to. be final analysis data. It is the overall operational pattem or framework of the project that stipulates What information is to be collected, from which sources and by which procedures. Deperwiing upan the objective of the study there are four research design availa! > Exploratory research » Descriptive Research » Diagnostic Research > Experimental Research Exploratory Research: It means to gain the familiarity with a phenomenon or to achieve new insight into it. Studies With this object in view are termed as exploratory or formularize research studies. MIT SCHOOL OF MANAGEMENTHypercity ills Descriptive Research: In this type of research researcher has to portray accurately the characteristics of particular individual, group. or situation. Diagnostic Research: It deals with determining the frequeney wih which something occurs or with which something associnted with something eke. Experimental Research: Its used to test a hypothesis for casual relationship that is cause & effect relationship. Data Collection Method: Market Research requires two types of data ie, Secondary data and Primary data. Primary data has been used abundantly for the study, Questionnaire & prepared & the survey was undertaken. Feedback and suggestion for the store fas been taken by asking questions and observation has alko done to gather primary. infiermat There is ako a use of secondary data, collected the books, websites & from store employees and management, Primary Data: In store customer survey through Questionnaire Secondary Data: Annual Reports, Company Manual & websites, Location of Research: HyperCity, Shankar Seth Road Swargate (Pune) Research Approach: Survey Method Research Design: Exploratory Research MIT SCHOOL OF MANAGEMENTHypercit lila Sampling Method: Since the study is restricted to Retail Sector, all the functional department of HyperCity and the respondents are found at the store only so according to the convenience they are being picked so sampling method used in the study is Convenient Sampling. Sampling Size: 500 Respondents Sampling Method: Convenience Sampling Sample Unit: Customers of Hypercity Research Tool: Questionnaire MIT SCHOOL OF MANAGEMENT