Project Report on:

SLEEPWELL
Submitted By:
SAJID LODHA
T.Y. BMS [Semester V]
Submitted To:

University of Mumbai
Project Guide:
Prof. RICHA JAIN
Academic Year:
2013 2014

Declaration
I, SAJID LODHA, from THAKUR COLLEGE OF SCIENCE & COMMERCE,
student of T.Y.BMS [SEMESTER V], hereby submit my project report on the brand
SLEEPWELL.
I also declare that this project which is the partial fulfillment of the requirement for the
degree of T.Y.B.Com (MANAGEMENT STUDIES) of the MUMBAI UNIVERSITY is the
result of my own efforts with the help of experts.

Date:

Certificate
This is to certify that the project entitled is successfully done by SAJID LODHA
during the Third Year, Fifth Semester of B.Com (MANAGEMENT STUDIES) under the
University of Mumbai through the Thakur College of Science & Commerce, Kandivali,
Mumbai 400101.

B.M.S. Coordinator

Principal

Internal Examiner

External Examiner

Date :
Place :

Acknowledgement

It gives me immense pleasure in presenting the project on SLEEPWELL. Firstly, I take the
opportunity in thanking our very dear principal Mrs. CHAITALI CHAKRABORTY then I would like to
thank the Almighty and my parents without whose continuous blessings; I would not have been able to
complete this project. I would like to thank my project guide Prof. RICHA JAIN for her great help,
valuable opinions, advice and suggestions in fulfillment of this project. I am also grateful to Prof. RICHA
JAIN for supporting me, giving me encouragement and for providing me with the material and knowledge
to make this project a success. I convey my deep appreciation to him for sparing her valuable time and
efforts, so as to make me capable of presenting this project. I am thankful to our college for all the possible
assistance and support, specially our library by making available the required books and the internet room
which have proved useful to me in successful completing my project. I hope that I have succeeded in
presenting this project to the best of my abilities.

ANNALYSIS OF:

RETAILING TOOLS USED BY SLEEPWELL, CONCEPT OF RETAILING &

CUSTOMER SATISFACTION TOWARDS THE BRAND SLEEPWELL

Thesis synopsis
Student details:
Name: Sajid Lodha
Section: TYBMS A
Phone number: 9870408633
E-mail address: sajidlodha33@gmail.com
Thesis topic: Analysis of retailing tools used by Sleepwell, Concept of Retailing & Customer satisfaction
towards the brand Sleepwell
Problem definition:
In India, organized retail is an upcoming industry. Sleepwell is recognized in India as a specialist
who provides state of the art sleep support solutions that lead to good health and serenity in the daily lives.
A flagship brand of Sheela group, it is ISO 9000:2001 certified as well.
The study would focus on analyzing the retailing and marketing tools and strategies employed by
Sleepwell. The research shall aim for providing an overview of what is retail business all about, what are
the most prominent marketing practices in it and would also assess customer satisfaction towards the brand
Sleepwell.
Research objectives:
Primary objective are:

To know what are the retailing tools used by Sleepwell.

To analyze the level of customers satisfaction and Perception towards Sleepwell.

Secondary objective are:

Systematic analysis of retailing efforts of Sleepwell.

Scope of this research:

Main emphasis of the thesis is analyzing retailing tools used by Sleepwell and customers
expectation from Sleepwell. This will be done with the help of a questionnaire which will be filled by
consumers and then data will be analyzed to give that picture of Sleepwell which is on the mind of the
customer.

Literature related to the research:

Sleepwell, a brand owned by Sheela foam industries, has a strong market presence in India. It is
currently looking to take its communication strategy to the next level. Retail presence is being ramped up
nationwide, while retail branding is being standardized along with a new look and feel to the product
packaging. Sleepwell has built tremendous traction and are looking at consolidating their leadership
position in times to come.
Research methodology:
My research will include the following:
Primary data: Interviews and Questionnaires with the Customers in retail outlets and employees/officials of
Sleepwell.
Secondary data: Newspapers, books, internet, reports, Business magazines
Tools: bar diagrams, pie-charts, tabulation
Sampling method: random sampling method
Sample size: 100
Target audience: Customers of Sleepwell in Mumbai.
Justification for the topic:
The study shall aim at analyzing the current scenario of Indian retail industry, particularly
Sleepwell. It will also trace its genesis in the Indian market and the situation that prevailed before its arrival
in India. A relevance to the Global retail movement will also be provided keeping the Globalization of
Indian economy and its impact highlighted.

TABLE OF CONTENT

Chapter-1- Introduction
Chapter-2- Research Objective and Methodology
Chapter-3- Literature Review
Chapter-4- Data Analysis
Chapter-5- Conclusion & Findings
Annexure
References

INTRODUCTION

RETAILING THE CONCEPT

In terms of origin earlier a shopping centre was a row of shops by the roadside, selling every range of
products based on the income of the people in that area. The second step in shopping came when people
started desiring shops that met their multiple needs under one roof.
This resulted in the development of shopping malls. Shopping mall is an old concept in western countries,
but here in India, bazaars like Connaught place, Karol Bagh, Chandni Chowk etc. have paved way for
customers across all segments. With the change in demand and the westernization, people in India want an
additional or modified package of facilities in the market.
Till 1990s there were only 3 international level shopping mall: Spencer in Chennai, Cross Roads in Mumbai & Ansal Plaza in NEW DELHI.
This number has jumped to 20 times.
By 2011, industry experts believed that modern retail could be worth as much as $100 billion out of a total
$600 billion Indian consumer market. Also the government has taken a good note of all this and has already
paved the path for major changes in the segment, like increasing the FDI limit etc, it seems retail is going
to play a very vital role in the growth of Indian economy as a whole.
Considering the bigger role that retail is expected to play in Indian economy, this study/reports aims at
highlighting and analyzing the different facts of the retail industry and analysing how much customers are
satisfied with the retail outlets of Sleepwell.

DEFINING RETAIL:
RETAIL is the term given to the sphere of related and interdependent activities of making the produced
goods available to its end user. To be more specific, end users are the people who actually utilize the
product for their own consumption, gratification or comfort, and do not use it for any commercial gains.
Retailing is the interface between the producer and the individual consumer buying for personal
consumption. By definition, whenever an organization, be a manufacturing or a whole seller, sells directly
to the end consumer it is actually operating in the Retail space.

Defining Retailing can be classified as:

1. Un-Organized Retailing
2. Organized Retailing

Un-Organized Retailing:
It refers to the old and traditional way, where in the shops, utility stores catered to the consumers needs of a
particular product type or more widely, limited types of goods. Specifically mentioning, this term
encompasses the street-corner shops, Mom and Pop stores, and even the local grocery vendors, each
working as a separate entity selling goods of limited types.

Organized Retailing:
It refers to concept that has evolved over the ages for servicing and supplying the goods produced of varied
kinds at one location and precisely less than one roof. Organized retailing talks about retail business done

10

by people after having proper license with them and fulfilling all legal formalities whereas in unorganized
retailing no particular legal system with rules and regulations is followed. Manipulation can be easily done
with the sales figures and taxes can be easily avoided.

THE BRAND SLEEPWELL

Vision:

We will continue to be recognized as a leading organization in quality comfort products while

practicing values of integrity, reliability, pro-activity & transparency to do business with a smile for
customer delight and a commitment to society.

Quality Policy:

"We are committed to provide complete Customer Satisfaction through Continual Improvement by
Consistent Adherence to our Quality System and Standards."

Corporate History
Founded in 1972, Sheela Foam Pvt. Ltd. an ISO 9001:2000 company, pioneered the manufacturing
of P.U. Foam in India. Today, Sleepwell is ranked amongst the top 5 manufacturers of Slabstock P.U. Foam
in South East Asia with a footprint in India and Australia. This has been achieved by our relentless focus on
quality, innovation and continual improvement. Over the last 30 years Sleepwell has made giant strides not
only in manufacturing capabilities but also in their methods of testing & ensuring quality.
In India, Sleepwell has 10 manufacturing units using the state-of-the-art technology at strategic
locations across the country. They serve a wide spectrum of customers in a fast and economical manner

11

through a distribution network of over 70 distributors and 3000 dealers. A combination of manufacturing
excellence and distribution network has enabled us to get over 40% of the Indian P.U. Foam market share.

Sleepwell has 5 manufacturing units in Australia. These are located in five major cities i.e. Adelaide,
Brisbane, Melbourne, Perth and Sydney which enables the company to service the Australian market
effectively. Sheela Foams Sleepwell and Feather Foam brands are leading and most trusted names in home
comfort products and industrial foam respectively in India. In Australia, the name of Joyce also signifies
quality and is a reputed brand.

In addition to standard P.U. Foam, Sleepwell manufactures a wide variety of Technical Foams i.e. Memory,
Flame Retardant, High Resilience, Reticulated, etc. Rubberised coir pads manufactured by them are used in
our comfort products and are also exported to various countries. As a leader in the P.U. Foam industry in
India, the corporate sights of Sheela Foam are set far beyond the borders of the country. Today, Sheela
Foam is busy looking at issues from a global perspective - busy assimilating and amalgamating new
opportunities for collaborations / partnerships and acquisitions worldwide; busy with the task of ushering
for the country and the future generations, a quality of life theyd love to cherish; busy with a mission and a
crusade. And thats something an industry leader, Sheela Foam is quite used to putting into practice.

12

Product range of Sleepwell:

Sleepwell is recognised in India as a specialist who provides state of the art sleep support solutions that
lead to good health and serenity in our daily lives. It is a flagship brand of the Sheela Group, Indias
leading manufacturer of Polyurethane foam and an ISO 9001 certified company. It has 12 state of the art
manufacturing units, a strong support of 100 distributors and over 5000 dealers in India. Sheela Group
commands more than 35% market share of the Indian P.U. Foam industry. Its P.U. Foam is used in
industries like Automobiles, Shoes, Garments, Packaging and many others.

The range of Sleepwell consists of:

- Premium Range: Impressions, Latex Plus, Duet Luxury, Duet and Resitec Air Mattresses.
-State of the art Springfresh range of mattresses: Amity, Serenity, Harmony Royale, Tranquil Royale,
Harmony and Tranquil.
Flexi PUF Mattresses and Back Support Mattresses.
Flexi Coir Mattresses that offer traditional coir with state of the art 3 way Anti Sag Technology.
Pillows, Bolsters & Back Cushions.
Comfort Accessories Range: Mattress Protectors, Bed Sheet Sets & Comforters, Baby Care Sheets
Furniture Line.
Medicare Range.

13

THE BUSINESS MODEL OF SLEEPWELL:

Stability in the core values of quality consistency and value for money has been a cornerstone of company
policy. This has been dynamically coupled with religious zeal to stay ahead of the competition in matters of
product, styling and delivery to the customer. The promoters understood that the success of both
manufacturing and retailing lies in their joint success and hence a manufacturing company has moved
forward to an integrated manufacturing and retailing company

Although the adherence to high standards of manufacture and product quality is the foundation of the
company, it is the visionary leap into new retailing format which has catapulted the company into a growth
path which should take Sleepwell to the position of the biggest mattresses brand in India in the near
future and prospectus of further growth to become an international force to be reckoned with.

An Indian shopkeeper is financially reliable and steady business partner but is invariably risk averse and
more often than not slow to respond to modern marketing and display trends. Safe and sure albeit moderate
returns is what an Indian shopkeeper looks for. All risks and uncertainties are discounted very heavily by
the businessman and his expectations of margins are consequently high. In the traditional marketing
structure for mattresses, the manufacturer sells to the Distributor who in turn sells to the retailer. Fear of
unsold stocks keep both the distributor and retailer margins high which in turn lead to high retail costs and
these in turn slow down sales and result in dead stocks. Thus, it is a vicious cycle leading to inefficient
selling and high costs. The Sleepwell model sidesteps these problems by entering into a bond of faith with
every franchisee. Firstly, Sleepwell guarantees a return on all investment and reimbursement of all
expenses (Rent, electricity, salaries etc.) on an expected basis. The franchisee then trusts Sleepwell to

14

decide the product and its price. Sleepwell retains total control over product and price and has all power as
the total owner of the selling facility. However, costs incurred with layers of control, audit and theft
prevention in a company run chain of stores are saved by having an owner/franchisee interfacing with the
company head office. The observation of this business proposition is equally satisfactory for the franchisee
as he has a risk free investment and is covered for his expenses and he makes a profit on performance. A
typical agreement would envisage a franchisee getting a percentage of sales (the percentage falling with the
discount and / or promotion) with a minimum reimbursement being guaranteed by the company. Left over
stock are virtually eliminated as the company has an aggressive pricing policy which is worked into the
franchisee agreement through variable margin. The net effect is that as per the current aggressive selling
policies of the company, the percentage of consumer rupee going towards retail operations is much lower
than for the competition.

Product

The company was born as a manufacturing company and created forward linkages to become a retailing
company. This history explains the strong product line in terms of quality and consistency. With exposure
to manufacturing for export and for the upper end of the Indian market, the company has always
understood that quality comes out integrity of production and not just through rejections of borderline
quality. Thus well laid out factories with high end machinery and quality checked inputs, along with a well

15

trained and quality conscious workforce, are necessary ingredients to ensure a product of consistent quality.
The promoters have nurtured and encouraged a team of dedicated professionals who have imbibed these
values and are carrying the work forward.

Production facilities are largely company owned or company controlled with state of the art machinery
being a pre-requisite not only for in-house production but also for any sub-contracted sections of the
production and finishing process. Specialized machines for performing intricate stitching functions have
been pronounced to ensure globally competitive quality.

The desire to be at forefront of the changing world of home furniture and new materials has led the
company to continuously search the world for new products and new product trends. The company has
Trendy and casual image rather than a strong formal image and as such the introduction of newer
fabrics and styles helps it to augment its image. The one word that best describe the product, its image and
its fashion statement is CONTEMPORARY.

The company keeps itself geared for growth and ahead of the competition by planning product ranges two
seasons in advance. It is this advanced planning and research which is making high growth with new
products a way of life at Sleepwell.

Pricing Strategy
The selling arrangement as detailed earlier, envisages the product to be under the ownership and control of
the company until the end customer buys it. Thus, the company can pursue seasonally determined pricing
16

cycles and launch promotions and discount sales in response to stocks, competition and buying sentiment
of the market. The company, like any other business entity, wants to maximize its profits but unlike many
businesses, Sleepwell believes in current profits alongwith the rise in volume and goodwill which would
help the future growth of the company as a desirable end result. Thus, if there was a choice between
earning 1 crore rupees through a turnover of the Rs. 100 crores or the same 1 crore rupees were to be
earned under an alternative strategy of selling Rs.200 crores worth of goods, the company would opt for
the second alternative to gain the intangible benefits for the future.

17

Objective of the study

Primary Objective:

To know what are the Retailing tools used by Sleepwell

To analyze the level of customers satisfaction and perception towards Sleepwell.

Secondary Objective:

Systematic analysis of retailing efforts of Sleepwell

18

Research methodology

Main emphasis of the thesis is analyzing retailing tools used by Sleepwell and Customers Expectation
from Sleepwell. This will be done with the help of a questionnaire which will be filled by consumers and
then data will be analyzed to give that picture of Sleepwell which is on the mind of the customer.

My research includes:

Primary data:

Interviews and Questionnaires with the customers in retail outlets and

employees/officials of Sleepwell in MUMBAI

Secondary Data:

News Papers, books, internet, Reports, Business magazines

Tools:

Bar Diagrams, pie-charts, tabulation

Sampling method:

Random sampling method

Sample size:

100

Target audience:

Customers of Sleepwell in MUMBAI

The study aims at analyzing the current scenario of Indian Retail Industry, particularly Sleepwell. It also
traces its genesis in the Indian Market and the situation that prevailed before its arrival in India. A relevance
to the global retail movement is provided keeping the globalization of Indian Economy and its impact
highlighted.

19

Literature Review

RETAILING EFFORTS BY SLEEPWELL

In a competitive market customer is always considered as king thus in order to increase companys market
share Sleepwell is implanting all retail strategies so that it can satisfy its old customers and can attract new
ones also.

Retailing Strategies are as follows:

Trained Staff
Company is providing special training to its staff so that they can help the customers the best way.

Attractive Display
Attractive display always catches attention. Sleepwell is putting pains in this area so that products in the
store are clearly displayed. Products of one type should be displayed in one section so that customer
should not get confused.

Reasonable Price
In this competitive market price is the major factor which attracts customers hence Sleepwell store are
giving almost 5% discount on home furniture then the market price.

Wonderful Ambience
Ambience and decoration keeps customer loyal towards a store.

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Product Range
A Wide range is what customer want and Sleepwell is offering a wide variety of home furniture items
in the store.
Promotional Schemes
Sleepwell offers attractive schemes to its customers which include the EXCHANGE OFFER OR the
COMPLEMENTARY GIFTS two times a year.

FUTURE PLANS:
Sleepwell Retail 3-5 yrs Plan:
To Acquire 100 Mn sq ft retail space.
To open Multiple Formats stores i.e.

Convenience Store

Supermarket

Specialty Store

Hypermarket

To make Rural Business Hubs (RBH) i.e. penetrate the rural market and acquire agriculture
products directly from the farmers without any middleman so that farmer get higher compensation.
Presence across 1600 urban/rural towns of India
Planned Investment to the tune of US$ 6 BN

Sleepwell Retail An Inclusive Model:

Backward disintermediation leading to:
21

Better Prices to the farmers

Eliminating of wastage across the supply chain (Currently 50% of the produce)
Partner with vendors to reduce Supply chain inefficiencies to make products affordable &

trigger

growth of categories.
Aiming to provide benefits to the small retailers through Cash and Carry forma

MARKETING STRATEGIES OF SLEEPWELL:

Sleepwell offer their customers a range of the finest products and a quality and price assurance that is
backed by their guarantee, stamped on every bill:
We are responsible for the goods we sell.
Emphasis Is Laid on Various Elements of the Marketing Mix so that it can penetrate the market. Elements
of Marketing Mix are as follows
Product
Price
Place
Promotion
Product
Sleepwell offer a wide variety of home furniture items

Promotion
22

Sleepwell has been positioned as a store that offers its customers an international shopping experience. In
their efforts to provide this experience, they have held numerous path breaking events and promotions,
which have got them both national and international accolades besides the appreciation of their customers.
Some of the hugely popular promotional schemes taken by the company are:

The Festival of Britain

Parikrama

The Disney Carnival

DOTY - The Designer of the Year

Valentines Day

Pricing
Pricing is not as important as convenience; todays consumer is more upbeat about money spending and
more conscious about time spending. And the consumer prefers shopping for most of their requirements
from a single store. Most of the products at Sleepwell are branded. One of the prominent features of
branded products is the fact that they are available at the same prices within a particular geographical
region. Therefore, in terms of pricing its products Sleepwell can exercise only a limited amount of control.
Sleepwell offers 5% discount on the prices of home furniture than the market price.

Place
Sleepwells first outlet in Delhi opened in December 2000 taking the total number of stores to seven. The
company has two stores in Mumbai and one each in Bangalore. Hyderabad, Jaipur. Recently it has opened
one store in the Swanky Metropolitan Mall in Gurgaon. Massive expansions have been planned for
23

MUMBAI by opening four new centers. The objective is to make state-of-the-art malls to make shopping
comfortable.

Retail industry has evolved from shopping malls in India. Historically speaking in terms of its origin,
earlier a shopping centre was a row of shops by the roadside, selling every range of products based on the
income of the people in that area. The second step in shopping came when people started desiring shops
that met their multiple needs. A shopping mall used to have the central space or the building used to have
a bowl like structure with major activities happening in the centre. The centre used to have.

No-Salesman fast moving consumer products and around it used to be the galleries in which other goods
were sold. The whole building used to be designed in such a way that all the shops around the central area
looks in that space and all the movement used to happen from within that central space. Shopping mall is
an old concept in western countries, but here in India, bazaars like Connaught place, Karol Bagh. Chandni
Chowk etc. have paved way for customers across all segments. With the change in demand and the
westernization, people in India want an additional or modified package of facilities in the market. People
want to enjoy the magic of the movies entertainment to come hand in hand with retailing and eating out in
a centrally providing not only a shopping pleasure but a memorable experience.

TYPES OF RETAILERS:-

Specialty Stores:

Such stores carry a narrow product line with a deep assailment within that line.

24

E.g. Apparel stores, sporting good stores, bookstores etc.

Departmental Stores:

They carry several product lines- typically clothing, home, furnishing and house hold goods- with each
line operated as a separate department managed by special buyers or merchandisers.

Super Markets:

Super markets are relatively large, low cost, low margin, high volume, self service operations designed
to serve the consumers total needs for food, laundry and household maintenance products. Usually
they earn an operating profit of only about 1% on their sales and 10% on their net worth.

Convenience Stores:

Such stores are relatively small stores seven days a week, and carry a limited line of high turnover
convenience products. Their long hours and their use by consumers mainly for fill in purchases make
them relatively. High price operations they fill an important consumer need and people seem willing to
pay for the convenience.

Discount Stores:

They sell standard merchandise at lower prices by accepting lower margins and higher volumes. The
use of occasional discounts or specials does not make a discount store. True discount stores regularly
sell their merchandise at lower prices, offering mostly national brands, not inferior goods.

Off Price Retailers:

Buy at less than regular wholesale price and change consumers less than retail. Tend to carry a
changing and unstable collection of higher quality merchandise, often leftover goods, overruns &
irregulars obtained at reduced prices from manufactures or other retailers.
25

CATALOG SHOWROOMS
Sell a broad selection of high markup, fast-moving, brand name goods at discount prices. These include
jewelry, power tools, cameras, luggage, small appliances, toys and sporting goods. Customers order the
goods from a catalog in the showroom, their prick these goods up from a merchandise pickup area in the
store. Catalog showrooms made there may by cutting costs margins to provide low prices that will attract a
higher volume of sales.

INTERNATIONAL SCENARIO
Retailing globally is far more organized than in India today. Up to 80% of all retail sales in the United
States are controlled by the organized retail sector. The corresponding number in Western Europe is 70 %,
in Brazil and Argentina it is 40%, in Korea and Taiwan it is 35 %.Organized retailing in Asia remains poor
with its contribution being paltry 20 % in Malaysia, Thailand & China. India is too much unorganized in
the retailing business.

Secondly most developed economies have an increasingly large share of service sector in the globally
organized retailing has brought tremendous benefits for the consumer and has actually helped the consumer
to be the King. Retail has played a major role world over in increasing productivity across a wide range of
consumer goods and services. The impact can be best seen in countries like U.S.A., U.K., Mexico,
Thailand and more recently China.

26

Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily
assisted by the retail sector. Retail is the second-largest industry in the United States both in number of
establishments and number of employees. It is also one of the largest worlds wide. The retail industry
employs more than 22 million Americans and generates more than 3 trillion in retail sale annually.
Retailing is a U.S. $7 trillion sector. Wal-Mart is the worlds largest retailer.

Wal-Mart heads Fortune magazine list of top 500 companies in the world. Forbes Annual List of
Billionaires has the largest number (45/497) from the retail business.

Retailers Worldwide Rank Retailer Home Country

Wal-Mart Stores, Inc. U.S.A.

Carrefour Group France

The Kroger Co. U.S.A.

The Home Depot, Inc. U.S.A.

Metro Germany

EVOLUTION OF RETAIL INDUSTRY IN INDIA

Over the last 2-3 years, the Indian consumer market has seen a significant growth in the number of modernday shopping centers, popularly known as malls. There is an increased demand for quality retail space
from a varied segment of large-format retailers and brands, which include food and apparel chains,
consumer durables and multiplex operators. Today, the expected demand for quality retail space in 2010 is
27

estimated to be around 80 million square feet. While previously it was the large, organized retailers with
their modern, up-market outlets, and direct consumer interface- who had been a key factor driving the
growth of organized retail in the country, now it is the malls which are playing the role. Factors such as
availability of physical space, population densities, city planning, and socio-economic parameters have
driven the Indian market to evolve, to a certain extent, its own definition of a mall. For example, while a
mall in USA is 400,000 to 1 million square feet. In size, an Indian version can be anywhere between 80,000
to 500,000 square feet. Kolkata and Hyderabad are relatively new entrants in the mall segment, but are
witnessing quick growth. Smaller cities like Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh
and Indore, are also expected to see a formidable growth in the growth of malls in the near future. But
malls in India need to have a clear positioning through the development of differential product assortment
and differential pricing, in order to compete effectively in a growing mall market. Segmentation in malls,
like up-market malls, mid-market malls, etc. , proper planning, correct identification of needs, quality
products at lower prices, the right store mix, and the right timing, would ensure the success of the mall
revolution in India.

28

Figure: Evolution of Indian Retail

Retail trade takes place through five types of outlets

Kirana shops

More modern retail shops

Departmental stores

Supermarkets

Hypermarkets

29

Lording over the retail scene in the country currently is Kishore Biyani-led Future Group. The group,
started as a garment manufacturing company almost 20 years ago, entered modern retail with Pantaloon
Retail outlet in Kolkata in 1997. It has now grown into a retail giant with 140 stores across 32 cities in the
country, which includes hypermarket chain Big Bazaar, supermarket chain Food Bazaar & malls called
Central.

This member of the global entity of the Intercontinental Group of Department Stores has 20 lifestyle and
33 Crossword outlets. It has also introduced value retailing business with hyper city. The group plans to
extend its retail space six times to over 6 million sq ft. in three years. As for foreign retail majors, WalMart's arrival has come even as they have been waiting for a clear-cut foreign direct investment (FDI)
policy.

At present 51 per cent FDI is allowed in single brand retailing and they are hoping that it would be
extended to multi-brand outlets. The global players have been entering India through licensee or franchisee
route. Wal-Mart is no different. Bharti Enterprises will be the franchisee of Wal-Mart in India and will own
the retail shops in the country.

30

Table: The Top Five:

Wal-Mart Bharti
Reliance
Aditya Birla Group
Pantaloon
Tatas
(Source: Economic Times)

Yet to announce
$ 5.5 Billion
$3.3 Billion
$ 1 Billion
$ 89 Million

THE INDUSTRY STRUCTURE:

Retail includes all the activities involved in selling goods or services directly to final consumers for their
Personal non-business use. A retailer or Retail Store is any business enterprise whose sales volume is
primarily from retailing. Hence, commencing the study of retailing industry, we must first look at its
structure - what the retailing industry is made up of, what it looks like. The structure of the retailing
industry can be studied from two perspectives - according to the form of ownership of various retail units
or according to the strategy mix that various retailers adopt.

Based on the form of ownership, various types of retailers comprising the retailing industry are
described below:

An unaffiliated or independent retailer

Is one who owns and operates only one retail outlet? A family mostly owns it with high dependence on the
owner, thus affecting long run success and employee morale. He is supposed to have a friendly
personalized image and his offering reflects the tastes and preferences of its owners and customers. Kirana
shops are very good examples of such retailers.

31

A chain retailer or corporate retail chain

Owns and operates multiple retail outlets (store units) under common ownership. Most chains have well
defined management philosophies, which tend to be solid overall strategies. These contribute towards
limiting the independence of the local owners of the individual units who, in addition, lack commitment
also. Consistent strategies with reference to store hours, product assortment, prices, sales personnel,
promotion and other policies must be maintained throughout all branches in order to project a particular
image of the chain. This calls for centralized decision making which in turn result in difficulties for
individual units in adapting to local needs of the target markets. There also exist associations of
independent retailers, which are formed in order to compete more effectively with corporate chain stores.
They enjoy benefits of a corporate chain while still maintaining status of individual owners.

These associations could be formed with other retailers (known as cc, operative chains), with sponsorship
by a wholesaler (known as voluntary chains) rather than by the retailers themselves or by franchise
agreements sponsored by manufacturers or distributors (known as dealers) or by service firms (known as
franchisees).

A franchise system
Results from a contractual agreement between a franchiser and a retail franchisee, thus allowing the
franchisee to conduct a given form of business under an established name as per a particular business
format in return for an initial fee and a percentage of monthly gross sales as royalty. It helps franchise to
create national or international presence quickly and with similar investments (than required by the
franchise alone for creating such a presence independently). These, if not met, give the right to the

32

franchise to avoid the individual franchisee. It is for this reason that franchisees are seeking more and more
independence from franchise rules and regulations.

There are some key questions that a franchisee must answer while evaluating franchisee
opportunity:

Does the franchise have a strong chance of competing in his community?

Does the franchise have potential for further growth or does its success depend on a fad?
Will franchise ownership be an advantage in the business he is considering or could he do as well on
his own.
What is the companys attitude towards Development of new products, franchisee termination and
renewal, and territorial protection for existing franchisees?

A Leased Department (LD)

It is a department in a retail store that is rented to an outside party? If the existing store is well known, with
a large number of steady customers, it becomes easier for the LD to generate immediate sales. It operates in
categories on the fringe of the stores major product lines and it must be taken care that its not a parasite
and does not live off the traffic generated by other parts of the store. Thus goods or services lines that it can
offer may be restricted. Apart from this, various requirements are imposed to ensure overall consistency
and co-ordination.

Vertical Marketing System (VMS)

33

In an independent VMS, there are three levels of independently owned businesses - manufacturers,
wholesalers and retailers. Such a system is most beneficial if manufacturers and/or retailers are small,
intensive distribution is sought and customers are widely distributed. In a partially integrated VMS, two
independently owned businesses (most likely a manufacturer and retailer) along a channel perform all
production and distribution functions without the aid of the third i.e. wholesaler.

This type of system is most appropriate if manufacturers and retailers are large. Selective or exclusive
distribution is sought and existing wholesalers are too expensive or unavailable through a fully integrated
VMS, a single firm performs all production and distribution functions without the aid of any other firms.

A fully integrated VMS enables a firm to have total control over its strategy, to have direct contact with
final consumers. To have higher retail markups without raising prices (by eliminating channel members), to
be self sufficient and not rely on others and to have exclusivity over the goods and services offered

Consumer Co-operatives
Are retail firms owned by their respective customer members. In such co-operative arrangements, groups
of consumers invest in the co-operative, receive stock certificates, elect officers, manage operations and
share the profits or savings that accrue. Consumer Co-operatives come into existence with the purpose (of
some consumers) of operating stores as well or better than traditional retailers, of getting control over
prices, of saving money by substituting their own labors.

FUTURE OF INDIAN RETAIL MARKET

34

Indian Retail Market is large but it is highly fragmented with very few large players. However it has
highest density in the world i.e.5.5 outlets per 1000 population. In the area of 100-500 square feet there
are more than 12 Mn Mom N Pop outlets.

Figure 1.2
Almost 45 % market is Urban and 55% market is Rural.
In India 2/3rd of the market is of Food and Grocery however in the Organized Retail sector its
share is the lowest.

% Share of Organized

% Segment contribution

Retail to the segment

to total industry

Food & Grocery

62

Clothing, Textile & Footwear

11

Consumer durable & Telecom

Jewellery

Food & Beverage services

Books, Music, Gifts & Entertainment

Pharmacy

10

Retail Segment

35

Home, Furnishings & Furniture

21

Others

28

Table: Retail Segment

Organized Retail Next 5 years

Expected investments US $ 30 BN
Expected development of 750 MN & sq ft of retail real estate
Emergence of 1000 malls, 2000 Hypermarkets & 6000 super markets

GROWTH DRIVERS
The factors responsible for the development of the retail sector in India can be broadly summarized
as follows:
Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating
the convergence of consumer tastes.
Liberalization of the Indian economy which has led to the opening up of the market for consumer
goods has helped the MNC brands like Kelloggs, Unilever, Nestle, etc. to make significant inroads into
the vast consumer market by offering a wide range of choices to the Indian consumers.
Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
The internet revolution is making the Indian consumer more accessible to the growing influences of
domestic and foreign retail chains.
Reach of satellite T.V. channels is helping in creating awareness about global products for local
markets.
36

 About 47% of Indias population is under the age of 20; and this will increase to 55% by 2015. This
young population, which is technology-savvy, watches more than 50 TV satellite channels, and displays
the highest propensity to spend.

CHALLENGES IN RETAIL INDUSTRY:

Retailing as an industry in India has still a long way to go. To become a truly flourishing industry, retailing
needs to cross the following hurdles:

One of the key impediments is the lack of FDI status. This has largely limited

capital investments in

supply chain infrastructure, which is a key for development and growth of food retailing and has also
constrained access to world-class retail practices. Regulations restricting real estate purchases, and
cumbersome local laws. Taxation, which favors small retail businesses.

Absence of developed supply chain and integrated IT management.

Lack of trained work force.

Low skill level for retailing management.

Intrinsic complexity of retailing rapid price changes, constant threat of product

obsolescence and

low margins.
The retailers in India have to learn both the art and science of retailing by closely following how retailers in
other parts of the world are organizing, managing, and coping up with new challenges in an ever-changing
marketplace. To establish a retail shop/ Mall, the real estate and the infrastructure are very vital. The
expenditure and availability on both the accounts do hinder the growth of the retail chain. The land ceiling

37

restrictions and other state restrictions on land use have prevented the growth of efficient retailing in the
cities. An average investment of about Rs. 5 crore is required to establish a mall and that explains the rush
of big companies into this business. Small and individual retailers find it difficult to pour in that much of
investment.
Indian retailers must use innovative retail formats to enhance shopping experience, and try to understand
the regional variations in consumer attitudes to retailing. Retail marketing efforts have to improve in the
country - advertising, promotions, and campaigns to attract customers; building loyalty by identifying
regular shoppers and offering benefits to them; efficiently managing high-value customers; and monitoring
customer needs constantly, are some of the aspects which Indian retailers need to focus upon on a more
pro-active basis.
Penetration into the rural market is what big retailers have to concentrate on for growth. Attracting rural
markets will be different from that of the urban market. For example detergent cakes are preferred to
powder and coconut oil in bottle to sachets in the rural areas. The rural consumers are different from the
urban consumers as they are more prices sensitive and their quantity of consumption would be less.

38

Figure: Organization Retail

39

ANALYSIS OF DATA

Questionnaire was given to different people who were buying products from Sleepwell.
I interviewed 100 people and the result was amazing. According to everyone, These stores are the small,
friendly neighborhood stores, which have been offering customized services to their customers. The stores,
which have contributed to this study, were in different areas, of different sizes and had been in existence for
different time periods. The result obtained from those interviews can be summarized in the below table
form:
1

Reason to visit outlet

10

45

20

15

10

Preferred retail outlets

45

15

15

10

15

Quality

38

62

Hygienic Condition

43

55

Product Range

49

47

Value for Money

34

50

16

Packaging of Goods

45

55

Service of Storekeeper

26

37

10

Parking Condition

26

37

37

Ambience & Decoration

57

31

12

Promotional Efforts

27

42

31

Display of products

65

35

Accessibility

100

Overall View

61

36

Table: The result Summarized in the table

40

Graph: Above table of results can be represented in form of following graphs:

Graph: Following percentage of people ranked Sleepwell 1 in different category. Result is displayed
in the form of Pie diagram.

41

RESULTS
10% people say they visit outlets in order to BUY.
61% prefer Sleepwell over all other stores.
38 % people rated Sleepwell Number 1 in Quality.
43 % people rated Sleepwell Number 1 in Hygienic Condition.
According to 49 % people they have complete Product Range
34 % people found it worth it.
45 % people found its packing very good.
Parking and Service of store keeper has scored 26%.
57% approved its Ambience and decoration.
Promotional efforts have scored just 27% approval.
Accessibility got 100% approval of customers.
Overall 61% people found Sleepwell very useful.
Overall image of Sleepwell can easily be drawn by the overall view of Consumers. 61% result of Overall
view shows that Sleepwell still have to work on certain areas especially on Parking Facility, Store keeper
service and Promotional Efforts. However Sleepwell has gained consumers confidence which will help the
company in its growth.

42

EVALUATION
Table: Reason to Visit Outlet
Enjoy
Shopping Convenience

Shopping

Discount

Variety

20

15

10

Reason to visit
outlet

10

45

Graph: Reason to visit outlet

Interpretation:
People say that they visit Sleepwell outlet because of convenience as they offer wide variety of Sleepwell
products under one roof

43

Table: Quality

Quality

Good

Average

Bad

38

62

Graph: Quality

Interpretation:
Quality Pie diagram shows that 62% people have rated products quality as average and only 38 % has
marked it good. However nobody has rated it bad in Quality.

44

Table: Product Range

Product Range

Narrow

Less

Wide Range

Range

Range

49

47

Graph: Product Range

Interpretation:
Product range has scored less which needs to be improved only 49 % people have rated it good and
according to 4% people it is bad.

45

Table No.: Value for Money

Value for Money

Good
34

Average
50

Bad
16

Graph: Value for Money

Interpretation:
Products cost matters a lot however in case of Sleepwell 16% people found it very costly and wastage of
money.

46

Table: Packaging

Packaging

Good

Average

Bad

45

55

Graph: Packaging

Interpretation:
Packaging of goods has scored a better position as compared to others as most of the customers are
satisfied with the packaging however 55% still needs to be satisfied as they have rated it average.

47

Table: Service
Not
Service

Satisfactory
26

Less Satisfactory
37

Satisfactory
10

Graph: Service

Interpretation:
Service is the major factor, which holds a customer for lifetime however Sleepwell is up to the mark in case
of service it has scored 10% of bad response and 37% of negative response that needs to be improved.

48

Table: Parking outside Sleepwell stores

Parking

Less

Not

Available

Available

Available

26

37

37

Graph: Packing

Interpretation:
Now a days parking is the major problem people prefer to shop in those outlets where parking is easily
available in case of Sleepwells store parking has scored negative response apart from 26% of people most
of people are not happy with the parking condition.

49

Table: Ambience and Decoration

Ambience and Decoration

Good

Average

Bad

57

31

12

Graph: Ambience and Decoration

Interpretation:
Incase of interiors Sleepwell has worked a lot and thats why customers are happy with its interiors more
than 50% are satisfied with its ambience and decoration.

50

Table: Promotion

Promotion

Good

Average

Bad

27

42

31

Graph: Promotion

Interpretation:
Sleepwell needs to be promoted because most of the people said that they do not remember any of its
promotional campaign

51

Table: Accessibility

Accessibility

Easily

Somewhat

Not

Accessible

Accessible

Accessible

100

Graph: Accessibility

Interpretation:
I approached those people who were doing shopping in the store and all people said that the stores are
easily accessible.

52

Table: Display
Less
Satisfactory

Satisfactory

65

35

Not Satisfactory

Display

Graph: Display

Interpretation:
According to customers products in the outlets has been displayed properly with the proper tag rate.

53

Table: Now the overall view

Very
Overall View

Useful
61

Not
Useful
36

Useful
3

Graph: Overall View

Interpretation:
As far as overall performance is concerned customers are satisfied with the Sleepwell. 61% have rated it
very useful and only 3% said that it is not useful.

54

CONCLUSION

Sleepwells aim is to position itself as a global retailer. The company intends to bring the world's best retail
technology, retail practices and sales to India. Their goal is to increase sales. But this goal can be achieved
only if customers are 100% satisfied with its performance and services.
It still needs to penetrate in the market that can be done only when it will increase its product range but this
is not the only factor, which attract consumers Sleepwell still needs to work on the Quality of the product
and its price because it is only the price that attracts customers initially. Sleepwell needs to understand its
target consumer segment because same strategy and same price of a product in every region cannot work.
The Indian retail sector is going through a transformation and this emerging market is witnessing a
significant change in its growth and investment pattern. Both existing and new players are experimenting
with new retail formats. Currently two popular formats -hypermarkets and supermarkets are growing very
fast. Apart from the brick -mortar formats, brick -click and click-click formats are also increasingly visible
on the Indian retail landscape. Consumer dynamics in India is changing and the retailers need to take note
of this and formulate their strategies and tactics to deliver value to the consumer.

Retailing in India is receiving global recognition and attention and this emerging market is witnessing a
significant change in its growth and investment pattern. It is not just the global players like Wal-Mart,
Tesco and Metro group are eying to capture a pie of this market but also the domestic corporate behemoths
like Reliance, KK Modi, Aditya Birla group, and Bharti group too are at some stage of retail development.
Reliance, announced that it will invest $3.4 billion to become the country's largest modern retailer by
establishing a chain of 1,575 stores by March 2007. The last couple of years have been rosy for real estate
55

developers and the retailers are finding suitable retail space in prominent locations. The industry is buoyant
about growth and the early starters are in expansion mood. There is increased sophistication in the
shopping pattern of consumers, which has resulted in big retail chains coming up in most metros; mini
metros and towns being the next target. Consumer taste and preferences are changing leading to radical
alteration in lifestyles and spending patterns which in turn is giving rise to new business opportunities.
Companies need to be dynamic and proactive while responding to the ever-changing trends in consumer
lifestyle and behavior.

Organised retail has miles to go in India. It captures only three per cent of the $330bn (176bn) retail
market which is highly fragmented and unorganised, comprising mostly family-owned businesses that
leverage their unique selling point of being close to peoples homes. Modern retail chains which sprang up
fewer than five years ago foresee immense growth potential. A vast swathe of Indian retail is yet to be
tapped into. Compare this with organised retail activity in Taiwan and Malaysia: organized retail accounts
for 81% of total retail in Taiwan, whereas in Malaysia, Thailand and China, it makes up 55%, 40% and
20%, respectively.

With improving infrastructure facilities, especially in cities, and with government moving in the direction
of relaxing rules for foreign brands, the Indian organised retail sector is set to become the new star on the
commercial horizon. The entry of the largest domestic business conglomerates such as the Reliance Group,
Aditya Birla Group and Bharti Enterprises, has upped both the capital inflows as well as business
confidence in the sector. The largely untapped organized retail arena is now viewed as a multibillion dollar
proposition by Indian and foreign players. It is backed by a strong economy where GDP has more than
doubled in the last 10 years, a mushrooming middle class, and a young earning population with an appetite

56

for spending that is further spurred by a rapid rise in the proportion of working women in India. Many
agencies have estimated differently about the size of organized retail market. The one thing that is common
amongst these estimates is that Indian organized retail market will be very big. The status of the retail
industry will depend mostly on external factors like Government regulations and policies and real estate
prices, besides the activities of retailers and demands of the customers also show impact on retail industry.
As the retail market place changes shape and competition increases, the potential for improving retail
productivity and cutting costs is likely to decrease. Therefore it is important for retailers to secure a
distinctive position in the market place based on values relationships or experience. Finally it is important
to note that these strategies are not strictly independent of each other; value is function of not just price
quality and service but can also be enhanced by personalization and offering a memorable experience.
Accordance of industry status to retail in India is an issue that needs to be addressed soon. Recognition
would ease financing prospects, as well as standardize and unify taxes for the industry. An alignment of the
retail sector with the tourism sector could also promote India as a global shopping hub.

57

RECOMMENDATIONS

My Study on Sleepwell says that Sleepwell still has to work a lot to fulfill the consumers expectations.
Today Sleepwell has become a Synonyms of Trust so it needs to work on Quality of products, its
packaging, and its price. Apart from this store range, atmosphere of outlet is also important easy
accessibility and parking condition not only attracts consumers but also makes them loyal towards an
outlet.
The product range varied from store to store due to the constraint of space. But all of them stocked
the well-known products, which had greater demand among customers.
Many Store owners say that they are satisfied with their business volumes and they do not have the
time to look after a bigger store.
All these stores need to provide free home delivery to their customers and should have the credit
period ranging from 15 to 30 days.
On an average, these stores remain open from 11 in the morning to 9 in the night. These need to be
open for more hours and especially on holidays.
Suggestions for Government
Indias retail sector which accounts for about 9-10% of the countrys GDP remains one of the least
developed sectors in India. By 2012 Retail sector in India has the potential to reach to the almost
400 Bn Dollars.

58

For this to happen, the government have to bring about the required liberalization in the retail
sector, if India is to ever become a developed economy. Historically, the Indian retail sector has
been dominated by small independent players such as traditional, small local PANWALAS
(Grocery stores) and others. Recently organized, multi-outlet retail concept has gained acceptance
and since has then accelerated.
All major global players such as Wal-Mart, Tesco, sainburys and others are keen to enter the Indian
retail market. A.T Kearney ranked India 5th out of 30 most attractive retail markets in investments.
What Government Should Do?
There are numerous ways the government can please protectionist and bring about the liberalization. I think
the licensing approach might be a good way forward.
The license should be divided into three different categories:
Local
Regional and
National

59

Bibliography
1) Consumer Behavior, eight edition by Leon G.Schiffman, Leslis Lazar Kamuk
Pearson Education

2) Retailing Management, 5th edition by Levy Weitz

Tata Mc-graw hill

3) Marketing Research , 3rd edition by Malhotra Naresh

Pearson education

4) Business Statistics by J.K. Sharma,

Pearson education.
5) Retail biz, magazine.
6) KPMG - FICCI report on retailing.
7) www.rvg.com
8) www.retailbiz.com
9) www.eretail.com
10) www.sleepwellproducts.com

60

Appendix
Questionnaire:
Name: _______________________________________________________________
Age: _________________________________________________________________
Income: ______________________________________________________________
Occupation: ___________________________________________________________
Gender: ______________________________________________________________
Q.1: What will you say about the Quality of products of Sleepwell?
Good

Average

Bad

Q.2: How is the Product Range of Sleepwell?

Wide Range

Narrow Range

Less Range

Q.3: How will you rate Value for money for Sleepwell mattresses?
Good

Average

Bad

Q.4: How is the Packaging of Sleepwell products?

Good

Average

Bad

Que.5 How is the after sale Service of Sleepwell?

Satisfactory

Less Satisfactory

61

Not Satisfactory

Q.6: What about the Promotional efforts of Sleepwell?

Good

Average

Bad

Q.7: Are you satisfied by the way products are displayed in Sleepwell stores?
Very Satisfied

Satisfied

Not Satisfied

Q.8: What is your overall view on Sleepwell?

Very Useful

Useful

Not Useful

Suggestions: ___________________________________________________________

62