3.

3 Marketing Department:

MARKETING is everything you do to place your product or service in the hands

of potential customers.

It includes diverse disciplines like sales, public relations, pricing, packaging and
distribution.
In short buying and selling and delivering products to people and fulfilling the
needs of people.

Market Analysis

The wholesale channel helps the manufacturers achieve sales from markets where they are not
directly able to handle retail sales and their shipments. In a country like India, where 95% of the
retail environment is unorganized and spanning across millions of small stores, it is impossible to
reach all the stores directly through your distributors.

Most companies will have strong direct distribution in cities like Mumbai, but as you go deep into
India, the dependence on wholesale indirect channels increases. Most top selling brands and
categories have a good amount of wholesale component. For example, a brand which is selling in
Pan-India (across the regions in India) may have a wholesale component ranging from 20% to as
high as 50-70% depending on the category/brand’s dependence on Rural India. It is obvious that
most of the sales in Rural India happen through whole-sellers. In Rural India, you will have strong
whole sellers for every group of villages or in the nearby town, where retailers go and replenish
their stocks.

Manufacturers would always like to have a higher contribution of retail sales to their overall
shipments, as this helps them directly to control the nuts and bolts in the operations such as trade
promotions and schemes, in-store visibility, relationship with retailers, pushing and increasing
their assortment within the stores, maximizing profitability, increased visibility of their sales, etc.
The important target customers are
PIKU
Piku is a 35 years old women who has more exposure to world
Who wears both modern and ethnic
Who has well knowledge

Marketing includes : SALES,STARTEGIC &OPERATIONS.

The 7ps of marketing are

1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical evidence

THE 7PS OF MARKETING IN HYPER CITY WHOLESALE SHOP AND HOW IT

WORK

PRODUCT: They deal with

PRICE: As they deal with wholesale products and bulk goods their prices
 will be relatively at a lower price comparing with others but relatively
make certain profit as every company makes a margin out if their sales.
 Near to expiry products are on offer.
PLACE: The HYPER CITY stores are opened in core areas an shopping malls. The
planning of opening a new store is planned a year before.
 The products are placed in selves according to the brand ,size and attractive
 goods are placed in the middle shelves and to place the products in middle
shelves they are priced a commission.
 The place also depends on Popular brandvalues, parking,revenue,capital area.

PROMOTION: Promotion of hyper city is done through

• hoardings
• online
Sales and operation is the subset of marketing.
PEOPLE: Cross functional team and the employees are the
pillars of the company.
Customers are the major role of the organization.
PROCESS: The process of the hyper city is very crucial as the process of the company comes
under many order approvals and decision making of the CEO’s, Managers ,HR’S.
Price before charging to customers many approvals and decisions are required.
PHYSICAL EVIDENCE: The physical evidence is the products,
articles, people, ambience etc.

Project/ work performed by interns in hypercity in the field of marketing is

Basically included,
1. Promoted the product and explaining about what exactly is the
programme
all about.
2. How it is helpful to the people .
3. Clarifying their queries regarding the issues.
4. Inducing the customers to buy.
5. Understanding the various customers psychology.
6. Explaining and giving clear cut ideas about customer benefits and
giving customer satisfaction.
7. Detailed explanation to the customers in a convincing manner.
8. Giving good customer satisfaction and good sales to organization.
 9.visual merchandising

Some of the factors that are said to have promoted the growth of the industry are:

 Changed lifestyle
 Higher disposable income
 Changed taste
 Affordable prices
 Boom in housing and real estate industry
 Festivals deals and discounts

Growth drivers

 Continued economic growth demonstrated through 8.4% CAGR growth in GDP over last
5 years.

 Favourable demographics; 70% of the population in working age category

 Increasing urbanization

 Increase in disposable income

 Available of new products

 Easy financing schemes

 Increased in organized retail.

Key challenges

 Increasing competition

 Increase in fuel prices which is leading to increase in the transport cost indirectly affecting the
 consumable goods

 Changes in technology where small scale industries finding hard to survive in the market

 Rural distribution- availability of products to masses is difficult as 69% per cent of India’s
population still lives in rural areas

 Entry of cheap products- as private labels in organized retails.

Porter’s Five Forces Model

Bargaining Power of Buyer

As far as the bargaining power of Metro Buyers is concerned ,Metro is not in a strong
position .They have low power against the customer because customer influence in pricing and
shift towards other seller if he/she is not satisfied with quality or price of the product or services.

Bargaining Power of Supplier

hypercity has many options to buy products from any supplier, So suppliers try to make possible
their store. So we can say that hyper city has high bargaining power with respect to the suppliers.

Threats of Substitutes

The major threat to hypercity is the local vendors in the market and other competitors like super
market and specialty stores etc. If the customer is not satisfied with any factor they can easily
switch to other because they have almost exact or the same kind of substitutes.

Threats of New Entrants

Since it is not a kind of special product or service owed by hypercity any one can enter and it
attracts more entrepreneurs Although initial investment for this industry is much high but for such
kind of chains like Wal-Mart and others have no problem in that. So hyper city also has a high
threat of new entrants.

Rivalry among Existing Competitors

The main customers of hypercity is PIKU (women) and other customers who do not buy goods
for their own use but to serve their further conzumers. Hyper city is expecting the variety seeking
and convenience shopping behavior from their customers. Because it is such kind of product that
the customer can change its mind just on a factor of pricing and shift on the other exactly direct
competitor’s .Customer has full knowledge with choices

PEST ANALYSIS

Political Environment

 The following are the factors regarding the Indian government which influences the
workings of hypercity.
 The political instability is the major factor of low investment in the India. Same is the
case with hypercity. The management always keep in mind the threat of change in
government. They analyzed several times before entering this field and before doing
further expansion in this market.
 The tax rebate and certain other favours’ given by the previous government can be set a
side by the change in the government.
 The ineffective control of every government regarding the prices of products and
inflation creates certain problems because customers’ demands product at the same and
low price while in such conditions prices changes rapidly.

Economical Environment

 Consumer spending Inc. (34% from 2001-05)

 FDI Inc. (just 1% GDP of china 2005)
Economical changes of India effects hyper city in such a way that the interest rates charged the
by the banks can not only restrict the spending power of the customers but also in fund raising
for the company. Interest rate is about 6% on the deposits and 12% on loans. The rapid growth in
inflation rate is the major factor influencing the spending power of buyer. Current inflation rate
in India 5.37 is quite favourable for the customers as wells as for hypercity.

Now the evaluation of money and decreasing exchange rate encouraging the investors across the
India.
Switching cost matters a lot in the buying decision behaviour of customer. The switching can be
higher in terms of time and the distance competitively the other specialized whole sale markets.

Policies of state bank can be influenced by the existing political party and government and every
person either business or a separate citizen entity holder has to follow this rules govern by state
bank.

The distribution of wealth is the key factor of purchasing and also the major characteristics of the
country. A person’s spending only shifts from necessaries to luxuries with the increase in money
it does not increase the spending.

Socio-Cultural Environment

First of all society and culture of India and its market is adopting changes at a very steep speed.
Now the citizens are adopting all the new products which are coming into market. Foreign
investors are investing in India in almost every sector. People in India change their product and
services according to their taste and preferences. Brand image of company’s product plays a
major role in influencing the market condition.

 Every now and then a person switches to some other company.

 Literacy rate is low as compared to Russia and China
 Small wholesalers do not allow foreign companies

Technological Environment

Hyper city, is a huge hyper market store chain operating in many cities of India is already using
the up to date and high tech mechanism for the shifting of products and for other purpose. They
have not too much threat of any technological changes. Precautionary measures like cameras are
installed for safety reasons and modern equipment’s are used in almost all working fields.