SUMMER TRAINING PROJECT REPORT ON

Comparative analysis for FnV of different Retail stores

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

THE POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

UNDER THE GUIDANCE OF: UNDER THE SUPERVISION

OF:
PROF. KAMALJEET SODHI MR. VIPIN SHARMA

(vice-president, 6ten)

SUBMITTED BY:
RAVI SANKAR PATERIYA

PGDM 2009-2011

Galgotias Business School

APPROVED BY AICTE, MINISTRY OF HRD, GOVT. OF INDIA
1, KNOWLEDGE PARK, PHASE II, GREATER NOIDA (UP)
 To whom it may concern

This is to certify that Mr. Ravi Shakar Pateriya, Roll no 09PGDM073 is the student
of PGDM. He has worked on the project titled “To do a comparative analysis for
particularly FnV (Fruit and Vegetables) of different Retail stores”. under my
supervision and guidance. This is an original and authenticated work done by him.

Guide

Date
 CERTIFICATE

This is to certify that the project work done on Comparative analysis for FnV of
different Retail stores is a bonfide work carried out by Mr. Ravi Shankar Pateriya
under my supervision and guidance. The project report is submitted towards the
partial fulfillment of 2 years, full time Post Graduate Diploma in Management.

This work has not been submitted anywhere else for any other degree/ diploma. The
original work carried during 23 April 2010 to 28th June 2010 in 6ten .

Prof Kamaljit Sodhi

Date:
 Acknowledgement

I express my sincere gratitude to my industry guide Mr. VIPIN

SHARMA,VICE PRESIDENT, REI 6TEN for his able guidance, continuous support
and cooperation throughout my project, without which the present work would not
have been possible.

I would also like to thank the entire team of REI 6TEN Retail LTD, for the
constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide PROF KAMALJIT SODHI,

DIRECTOR PROF. RENU LUTHRA and DIRECTOR CRC PROF V.K. LUTHRA
of my institute, for their continued guidance and invaluable encouragement.

Signature
(Ravi Shankar Pateriya)
 Declaration

I, Ravi Shankar Pateriya, Roll No 09PGDM073, student of PGDM of Galgotias

Business School, Greater Noida hereby declare that the project report on
Comparative analysis for FnV of different Retail stores at REI 6TEN Retail Ltd.
is an original and authenticated work done by me.

I further declared that it has not been submitted elsewhere by any other person any
of the Institute for the award of any degree/diploma.

Ravi Shankar Pateriya

Date
 PREFACE

It’s a thing of massive gratification for me to do my summer training in REI 6TEN

and present this project on topic “Comparative analysis for FnV of different Retail
stores”, in Delhi/NCR.

Survey measure the comparison all the present brand in delhi for particular FnV(fruit
and vegetable).

The project attempts to find out the comparison among different retail brand for
6TEN. In this project attempts to find out present situation and reason behind the
drop and suggest measures to overcome it.
 Table of content

1. Introduction

1.1 Retail Industry for FnV

1.2 Company overview

1.3 About REI 6TEN

1.4 Product life cycle

1.5 Types of product and services

1.6 Organizational chart

1.7 Promoters

1.8 SWOT analysis

1.9 Market position

1.10 Review about various Retail Companies of FnV

2. Literature Review

2.1 Back ground of company

2.2 Government Policy

3. Research Methodology

3.1 objective of project

 3.2 Research methodology

3.3 Sampling Design

3.4 Limitation

3.5 Analysis and Interpretation

3.6 Hypothesis

3.7 Findings

3.8 Actionable

3.9 Overall experience

Bibliography

4. Annexure

Executive Summary

Horticultural development had not been a priority until recent years in India. It was later in
the post 1993 period that focused attention was given to horticulture development through
an enhancement of plan allocation and knowledge-based technology. Any company which
is successful is because of their reach among customers which is possible through the
effective tools through which a company communicates and attract its customer. REI 6TEN
is a young company which was launched 2007,it implemented innovative technique for
particularly the sale of FnV, by late 2008 sales started to decline but still company is
revitalizing itself.

The attempt behind this project was to find out the comparative analysis of all the major
competitors of 6TEN for FnV, so the company would be able to set a benchmark, to find
out its lagging area and can focus more effectively to target more and more customer and to
communicate them more easily.

Descriptive research is being used to find out the difference between 6TEN store and its
competitors. The findings of research suggest that there is significant difference for FnV in
some factors like maintenance, offers, quality, price etc.
 I. Introduction

1.1 Retail Industry for FnV

Kishore Biyani’s Future Group is making a vigorous push to increase its share in the fruit
and vegetables business, a category that has traditionally been an Achilles heel for the
country’s largest retailer.

Economic
Times

Horticultural development had not been a priority until recent years in India. It was later in
the post 1993 period that focused attention was given to horticulture development through
an enhancement of plan allocation and knowledge-based technology. Despite of this decade
being a period of “golden revolution” productivity of the horticultural crops has increased
only marginally from 7.5 tonnes per hectare in 1991-92 to 8.4 tonnes per hectare in 2004-05
(NHB, 2005 In 2005 total area under fruits and vegetables had been 11.72 million hectares
and total production had been 150.73 million tones (NHB, 2005). Of the 456 million tons of
vegetable produced in the world, India’s share is 59 million tons. All taken together, India’s
share of the world’s vegetable market is 17 per cent. Presently, the horticultural crops cover
13.6 million hectares, i.e. roughly 7 per cent of the gross cropped area and contributes 18-
20 per cent of the gross value of India’s agricultural output. India is the second largest
producer of fruits and vegetables in the world next only to China and accounts for about
16% of the world’s production of vegetables and 10% of world’s fruits production. Annual
area and production growth under fruits and vegetables in the period 1991-2005 was 2.6 per
cent and 3.6 per cent respectively in India. Share of fruits and vegetables in total value of
agricultural exports has increased over years from 9.5 per cent in 1980- 81 to 16.5 per cent
in 2002-03. But we are still lagging behind in actual exports of these produce. For example,
India produces 65 per cent and 11 per cent of world’s mango and banana, respectively,
ranking first in the production of both the crops. Yet our exports of the two crops are nearly
negligible of the total agricultural exports from India. It is a known fact that horticulture
sector in India is constrained by low crop productivity, limited irrigation facilities and
underdeveloped infrastructure support like cold storages, markets, roads, transportation
facilities etc. There are heavy post-harvest and handling losses, resulting in low productivity
per unit area and high cost of production. However, on the other hand India’s long growing-
season, diverse soil and climatic conditions comprising several agro-ecological regions
provide ample opportunity to grow a variety of horticulture crops. Thus, efforts are needed
in the direction to capitalize on our strengths and remove constrains to meet the goal of
moving towards a horticulture lead agricultural growth in India. The foreign trade policy
2004-09 emphasized that to boost agricultural exports, growth and promotion of exports of
horticultural products is important. Horticulture contributes nearly 28 per cent of the GDP
in agriculture and 54 per cent of export share in agriculture.

1.2 Company Overview

India is witnessing a retail revolution and the sector is seeing a rapid growth. But
the food and grocery segment is still a segmented one. It is also characterized by
inefficiencies. 6Ten aspire to create a vibrant and sustainable business model for this
segment keeping abreast of this radical change in the retailing industry. Predominantly, they
focus on the products of daily needs especially fruits and vegetables.
 REI Agro was established in the year 1994 with a vision to consolidate the
fragmented basmati rice industry. In a short span of time it has risen to the position of an
undisputed leadership in the industry. A unique business model, out of the box approach of
the management, and the goodwill of the customers have enabled the company to
consolidate on Its leadership position.Today, REI Agro is India’s leading food major. It
follows an integrated business model and is equipped with the latest technology available
globally. The company operates state of the art rice processing unit s supplied by world
leaders in food processing equipments. The state - of - the - art facilities and ISO -
conforming quality initiatives have resulted in superior quality grain at an excellent value
proposition. Strict adherence to the international standards as well as world-class quality
initiatives has resulted in superb brand image of the company in the international market.

It is estimated that about 75% of the world's Basmati rice is produced in India and REI
Agro is a major player in the country. Keeping abreast of the changing time, the company
has been proactively strengthening its branding, processing and production capabilities.

1.3 About REI 6TEN

REI Agro launched its 6Ten chain of retail outlets in the last quarter of the fiscal of
2006-07. Through this venture, they endeavour to get closer to the customers to fulfill their
needs. They are committed to provide excellent value for money maintaining an innovative
and responsive operating structure that delivers quality products and services to customers.

Currently, 6Ten is operating 150 stores in the NCR, Chandigarh, Mohali, Panchkula,
Amritsar, Ludhiana, Baddi, Jalandhar, Ambala and Nagpur. Stores are on COCO (Company
Owned and Company Operated) and CODO (Company Owned Distributor Operated) basis.
They are uniquely positioned because of our experience in the food industry as well as
relationship in the supply network. They will capitalize on our relationships at the level to
provide our customers with a completely different shopping experience.

Mission

Only a small portion of the retailing market in India is organized. It is estimated that
in the supply chain for fruits and vegetables in India a substantial part of the products ends
up as wastage. 6Ten stores will strive to organize the retail market in India and to improve
efficiencies in the supply chain in order to offer quality products at attractive prices.
There mission is to be the trendsetter in the retail space in India with professional
services making the lives of ordinary Indians easier and more convenient.

Vision
 Through an efficient business model in the retailing sector, 6Ten will be a household
name through out the nation. By enhancing efficiency and reducing wastage it will ensure
substantial savings in the food and vegetable retailing sector which will be passed on to the
customers. They envisage an ideal retailing business model that can cater to the daily needs
of the Indian consumers.

6 TEN has moved from one success to another, and today has become the most
Formidable player in the retailing business in the country. It has registered its presence in
NCR, Chandigarh, Mohali, Panchkula, Baddi, Ambala and Nagpur. In addition to its own
outlets, 6 Ten is also looking forward to launch its Franchising Programme. It is planning to
set up stores on highways and railways to offer a distinctive shopping experience to the
consumers. 6 Ten now enjoys profits of over 100 crores and holds market share of 35%
(Food), 20% (Non-food) and 45% (Grocery) in organized retail in India.

Plans

Taking into account the demands and the necessities of the customers, REI Agro
will bring changes to the 6ten stores with the passage of time. They have already set up
6Ten stores at key locations across the country. Within a short span we envisage a Pan-
Indian Presence of 6Ten stores. The stores will be in size range of 300 to 15,000 sq. ft.

They are also planning to set up stores on highways and railways to offer a
distinctive shopping experience to the consumers. They have launched a store at a Delhi
Metro Station on a pilot basis. They are also about to start a few stores on the Delhi –
Chandigarh highway.

REI’s distribution strength and relationships with over 100,000 retailers across the
country also gives them an edge for quickly scaling up and going forward.
Private Labels

Presently, the private label products account a major part of sales at 6Ten. The
products are packed in our “Real Magic”, “Mr. Miller”, and “6Ten” brands. We have
already started private labels for most of the products such as rice, pulses, wheat floor, tea
spices, and other staples.

FMCG products such as sauces, chocolates, juices, beverages, jams, biscuits,

shampoos, moisturizers, hand-washes, floor and toilet cleaners, mosquito repellents etc. are
available under private labels. The private labels will offer quality at prices lower than the
national brands.

SERVICES:

REI AGRO 6ten is trying to give its all possible services to the customers. The
company always try to be punctual in availability of goods or the products which generally
expects from “6ten stores” .

They are showing themselves very excellent in customer services.

1.4 PRODUCT LIFE CYCLE OF 6TEN:-

 190
185
Sale
Quaterly 180
175
170
165
160
155
150
Mar'09 Jun'09 Sep'09 Dec'09 Mar'10

Annual PLC
900
800
700
Annual Sale

600
500
400 Series1
300
200
100
0
Mar'08 Mar'09 Mar'10

1.5Customer services:
 They say that they are “at your service with dedication and commitment”.

The executives at 6Ten are committed to ensure 100% customer satisfaction. They make
every effort to resolve your issues at the earliest.
The most frequent customer issues are addressed below for your convenience.

Refunds and replacements:

An unused product may be returned at the store within _________ days of

purchase . The customer has to produce the invoice at the counter or to the store manager.
The store manager may issue the refund or replacement after considering your complaints
and as per the terms and conditions.

Non-food Special Purchase returns and exchanges

You should retain the packaging and sales receipt for non-food Special Purchase
products. Some products may be covered by manufacturers' limited warranty. Kindly, go
through the terms and conditions of the warranty provided. If any product is defective upon
first use, you can return it to the 6Ten store from where you bought it. You must return it in
original packing along with the invoice for an exchange or to claim refund.

If your product is found to be defective during the warranty period you can write to
6Ten at the address given below. You should include the following in your complaint.

• Your name, address, and contact number

• A description of the defective item
• A description of the defect
• A copy of your receipt.

Along with this following note in bracket is being mentioned

 (Please, don’t enclose the defective item. We will contact you if it can be replaced.)

Additional help:

If customer have need any additional help, they may contact them and they can also
send any suggestions or comments on the following website.

Please write to us at: info@6ten.co.in

Company private labels:

The store focuses on the products of daily needs especially like fruits and
vegetables, grocery, FMCG, Food/non-food items. The company has tie-ups with national
brands such as HUL, ITC, Britania, Parle, P & G, etc.

Special Products:

• Food
• Child Care
• Household
• Groceries
• Toiletries
 1.6 ORGANISATION CHART:-

Board Of
Director

Mr. K.D. Mr. A Mr. Sandip Mr.Sanjay Dr. ING

Ghosh Chatterjee Jhunjhunwala (Vice Jhunjhunwal N.K.Gupta
(Indep. Chairman & a (indep.
(Indep. managing director) (Chairman )

Mr. Ambuj Jhunjhunwala

(CEO)

Mr. Sandeep (MD)

Mr. Vipin Sharma (Vice

President )

Head Head Head Head A/C Head IT

HR operations Admin/Legal Mr.Narendra Mr.Prash
Mr.Prasoon M. Mr. Anand Raj Mr.R.S. Kadian Somani ant

BDM
Head
Merchandising
Mr. D.M. Panda

Area
Manager Chartered
Accountant

A/C
Executives
1.7 Functions of departments:

HR:

• Hiring

• Promotions

• Position classification and grading

• Salary determination
• Performance appraisal review and processing
• Awards review and processing
• Gifts and Gratuities.
• Consultation and advisory services to management and employees.
• Safety, Health and environment.

IT:

• Software developing and modifying.

• Solving retail excel software issues.
• Maintaining regular updation of offers and price in menu master.

Marketing / Merchandising:

• Maintain regular supply of products.

• Maintaining coordination with store franchisees.
• Checking the availability of product in stores and warehouse.
• Looking after the prices of the product.
• Maintaining sales record .
1.8 PROMOTORS

Pursuant to the Scheme becoming effective the Company has allotted equity shares
to the shareholders of REI Agro Limited. Consequently, Mr. Sandip Jhunjhunwala and Mr.
Sanjay Jhunjhunwala are presently the Promoters of the Company and Ms. Kaunshalya
Devi Jhunjhunwala, Ms. Sangita Jhunjhunwala, Ms. Suruchi Jhunjhunwala, Snehpush
Barter Pvt Limited, Aspective Vanijya Pvt Limited, Subh Chintak Vancom Pvt. Limited,
REI Steel and Timber Pvt Limited, Jagadhatri Tracon Pvt Limited and Shree Krishna
Gyanodaya Flour Mills Pvt Limited are the Persons Acting in Concert with the Promoter.

Mr. Sandip Jhunjhunwala: Age 42 Years is a Promoter Director of the company. He is a

graduate and having 13 years of work experience in Domestic and International Market..

Mr. Sanjay Jhunjhunwala: Age 47 Years is a promoter of the company. He has

significant experience in the field of marketing, both in the domestic and international
markets.
1.9 SWOT Analysis

STRENGTHS WEAKNESS

1.Low Pricing 1.Poor Promotion.

2.Healthy and clean environment 2.Presence in selected areas.

3.Good quality products. 3.Less trained workers.

4.Wide range of food and 4.Unavailability of products.

Non food products 5.Poor maintained stores.

5.Fresh fruits & vegetables.

OPPORTUNITIES THREATS

1.Growing retail sector. 1.Big players in retail like reliance,

2.Awareness among consumers. Big bazaar,spencers,more etc.

3.Improved standard of living. 2.Price competition.

4.Focus on non food items and

Other daily usage products.

Review about various Retail Companies of FnV

Reliance Fresh

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,
Reliance is aggressively working on introducing a pan-India network of retail outlets in
multiple formats. A world class shopping environment, state of art technology, a seamless
supply chain infrastructure, a host of unique value-added services and above all,
unmatched customer experience, is what this initiative is all about.The retail initiative of
Reliance will be without a parallel in size and spread and make India proud. Ensuring better
returns to Indian farmers and manufacturers and greater value for the Indian consumer, both
in quality and quantity, will be an integral feature of this project. By
creating value at all levels, we will actively endeavour to contribute to India's growth.
The project will boast of a seamless supply chain infrastructure, unprecedented even by
world standards. Through multiple formats and a wide range of categories, Reliance is
aiming to touch almost every Indian customer and supplier.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of 19
RIL, was set up to lead Reliance Group’s foray into organized retail.

Mother Dairy

Mother Dairy's range of products include the brands Mother Dairy (milk, milk products,
curd, ice cream, butter, etc), Dhara (range of edible oils) and Safal (range of fresh fruits and
vegetables, frozen vegetables, fruit juices).

Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy
markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti
Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oils and
the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a
national level, through its sales and distribution networks, for marketing food items.

The 'Safal' shop of Mother Dairy. Safal is the brand that sells vegetables at a subsidized
rates. In these times of high inflation, most Delhi-walas are resorting to buy vegetables and
fruits from the Safal outlets rather than the local vendor or the super markets. I personally
like Safal as it has a huge collection of pickles and jams and sharbats apart from vegetables
and fruits.

MORE

The more. Chain of supermarkets, are bright and clean stores, at convenient locations with
layouts that allow ease of navigation. The product display is well organised
and facilitates ease of choice. The stores have been designed by Fitch, the leading
international retail design firm.

The stores promise a range of benefits to consumers and are a solution to the many
problems faced by housewives while shopping for their daily needs. The retail offering
from the Aditya Birla Group, has been crafted after indepth research of the needs and
expectations of the Indian consumers. more. is the answer to the shopping needs of the
Indian housewife who wants a modern and convenient option in her neighbourhood, with an
attractive and consistent range of products? more. assures consumers the security of
knowing that they are paying the best price in the market for good quality products.

Big Apple

Delhites are always known for their high living standards and love for branded clothes cars
and now definitely branded groceries. The new retailing fever is redefining grocery and
farm produce retail in Delhi. Big Apple- A unit of Express Retail Services Pvt. Ltd is
Delhi’s first ever company owned Fruit, Vegetable and Grocery retail chain which has
added one more bling to it by opening there 65th store in Delhi.

Being well received by its consumer Big Apple has attained exponational growth rate from
each store. The 125 crore company’s direct tie-up with farmers in Haryana, Rajasthan,
Himachal Pradesh and Uttar Pradesh, provides consumers with uninterrupted and
qualitative product supply every single time.

Big Apple in a matter of one year has spread all over Delhi, having 65 stores, placing itself
in the prime locations of the city like East of Kailash, Hauz Khas, Lajpat Nagar, East Patel
Nagar, Naraina Vihar, New Rajender Nagar, Model Town-1, Janak Puri, Vikas Puri,
Rajouri Garden, Shyam Nagar, Mansarovar Garden, Bali Nagar, Shakti Nagar, Hudson
Lane, Vishwas Nagar, Jhilmil, Krishna Nagar, Rani Bagh, Gandhi Nagar, Rohini, Main
Vikas Marg, Pitampura, Sunder Vihar, Model Town-III, Narela, Darya Ganj and many
other locations.

Mr Munish Hemrajani further added that “The objective is not only making profits, also to
bring the convenience and money saving shopping experience to Delhites within the
walking distance of their homes. The stores are also designed to give hygienic and pollution
free environment, which makes shopping experience a real pleasure”.

The best part of these stores is their timing .i.e. 7 am to 11pm., which is quite beneficial for
working couples who can plan out their daily shopping as per their own convenience. The
growing number of stores is sign of growing retailer-customer relationship.

II. Literature
Review
 REVIEW OF LITREATURE
2.1 BACK GROUND

REI Agro was established in the year 1994 with a vision to consolidate the fragmented
basmati rice industry. In a short span of time it has risen to the position of an undisputed
leadership in the industry. A unique business model, out of the box approach of the
management, and the goodwill of the customers have enabled the company to consolidate
on its leadership position.

Today, REI Agro is India’s leading food major. It follows an integrated business
model and is equipped with the latest technology available globally. The company operates
state of the art rice processing unit s supplied by world leaders in food processing
equipments.

Offering a wide range of brands like Kasauri, Real Magic, Mehrab, Mr. Miller,
Hungama, Hansraj and Nausheen with wide choice at all the price points, REI Agro has
become a household name. The state - of - the - art facilities and ISO - conforming quality
initiatives have resulted in superior quality grain at an excellent value proposition. Strict
adherence to the international standards as well as world-class quality initiatives has
resulted in superb brand image of the company in the international market.

It is estimated that about 75% of the world's Basmati rice is produced in India and
REI Agro is a major player in the country.

India is witnessing a retail revolution and the sector is seeing a rapid growth.

In the last quarter of the fiscal of 2006-07 REI Agro launched its 6Ten chain of retail
outlets. Currently, 6Ten is operating 344 stores in the NCR, Chandigarh, Mohali,
Panchkula, Amritsar, Ludhiana, Baddi, Jalandhar, Ambala and Nagpur. All the stores are on
COCO (Company Owned and Company Operated) basis.

In NCR currently,6Ten is operating 110 stores .All the stores are on franchise basis.
Presently, the private label products account a major part of sales at 6Ten. The products are
packed under “Real Magic”, “Mr. Miller”, and “6Ten” brands. 6Ten has already started
private labels for most of the products such as rice, pulses, wheat floor, tea spices, and other
staples.

Marketing Strategies

The retail sector is one of the most competitive in the business world, and so effective
marketing strategy is needed in order to be successful. However, many retailers get caught
up in the day-to-day running of their companies and don't use all their business strategy
expertise to push their business forward. If they are in the retail business, then they need to
wake up and think carefully about their current marketing strategy. If they don't they could
find their self trailing behind the competition and losing business to other retailers. If they
want to improve their retail marketing strategy, then here is some advice to get them started.

• Signage and storefront are important:

Although they can use plenty of complex marketing strategy techniques to attract
customers, nothing is simpler and more effective than having a bold and effective
storefront and signage. If they have a shop window, then keep the displays up to date
and imaginative. Change the display each season and alter their sign every few years to
keep things looking good. However, make sure that they keep the signage them constant
so that their brand and store are easily recognizable. Make sure your sign can be seen
from as far a distance as possible. Sometimes, the simplest marketing strategies are the
best, and keeping your store bright and attractive is one such method.

• Ask customers what they want:

Their marketing strategy ideas might be great, but if they really want to improve
their business then they need to ask the people that matter most - the customers.
Effective marketing strategy should always begin by asking customers what sort of
 products, services and promotions they want. This will give them a better idea of how to
market their products and improve their customer base. If there is one thing they should
learn about effective business strategy, it is to listen to their loyal customers and then
cater to their needs through effective marketing strategy.

4ps of marketing:

Marketing mix is a deciding factor in formulating marketing techniques for the

success of a particular brand, commodity or company. The components of marketing mix
are:

• Product

• Price

• Place

• Promotion

The study which was conducted gives the effect of each and every component of the 4Ps on
the consumer’s mind.

Product:
 6Ten offers the maximum variety for each category of product and this is cited by
the customers as one of the main reasons why they like shopping at the hypermarket. The
product is the same in every store in the city but the brand options are more in 6Ten. Also,
the quantity for each product is not limited to large packs only. Observations also revealed
that local brands of popular commodities, like diapers, sugar, wheat flour garments etc, are
very popular in 6Ten stores. These products are never advertised but offer huge margin on
sales. In this way lower middle class customers are targeted well. The commodities sold by
the retail chain also includes its “own products” which get a ready distribution network. The
own products of 6Ten include business magazine which is not available anywhere else. So
costs are low for such product

Price:

Price is the critical point in a competitive industry. 6Ten works on a low cost model.
It considers its discounted price as its USP. There is an average discount of 7-8% on all
items in respect to their MRP. Prices of products are low because it is able to secure stock
directly from the manufacturer. There are huge synergies in terms of bulk purchasing,
central warehousing and transportation. These all factors help the retailer to keep low
prices. Survey indicated that low prices were the biggest factor in customers’ mind while
coming to 6Ten. It has never focused on giving great services, but laid emphasis only on
low prices to attract crowd.

Place:

Place means the location of the business. 6ten has always worked on low-cost
locations. It targets semi-urban population with its placement. Its strategy is to find a cheap
location and it never goes for hot spots in the city. The talk with the manager revealed that
the Teghoria store was opened when it was scarcely populated. Even in Gurgaon, 6ten
chose Sahara Mall instead of Metropolitan or City Centre, which are more popular than
Sahara Mall. It relied on promotional activities to make up for unattractive locations. The
channel of place is company owned stores to have complete control. Another strategy used
by 6ten to overcome location disadvantage is use of internet. It has launched a merchandise
retailing website which targets high-end customers ready to use credit cards. Therefore 6ten
has made headway into a potentially high-yielding sector of online trade. Internet as place
has put them in a profitable position because there is minimal expense of maintaining a
website. The promotion of this website is done through advertisement on Google. The
website is put as sponsored link.

Promotion:

6Ten has huge promotion budgets. The biggest idea behind all advertisements is to make
people do bulk shopping. After talking to the store manager I found out that there are 2
types of promotional strategies. One is the holistic advertisement which promotes the brand
and creates awareness among people. It is not targeted at promoting each store but only
creates an image of 6Ten as low-cost shopping option. The store has advertised by
promotional campaign “The 6Ten Challenge.”, “ Kifayati kamla” Leaflets are given in local
newspaper. There are promotional efforts even inside the store. During the survey, it was
noticed that Buy 2 Get 1 Free type of promotions are very common. Original prices are cut
down and new prices are shown, of which customer takes quick notice. There are loyalty
schemes which reward regular clients.

Profitability:

This retail chain is present in all major cities of the country. And this means there is
huge requirement of capital. The stores generally occupy 10,000 square feet of space on an
average. In the wake of rising real estate prices, “place” component of marketing mix
becomes an increasingly important factor in deciding future strategies. The major store
which include Saket, Sufdarjung, Govindpuri, Malviya Nagar earns approx 90,000 per day.
The net worth of the company is Rs 226.88 crores. This includes all the investments made
by the promoters and subsequent reserves created during the life of the business. The profit
after tax in financial year 2008-09 was 44 crores on revenues. This means a net profit ratio
of 3.42%. This is very low for a national retail chain but it highlights the fact that the sector
has a huge potential and will generate more profits once the government policies are in
favor of opening up the sector further. Low profit can be attributed to:

• High cost of research required to study each and every region of the country
• The large number of staff needed to manage all the stores

• Burgeoning real estate prices which leads to high rentals

• Huge promotional activities undertaken to ensure enough footfall

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of

categories.

• Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.
• Departmental stores: are general retail merchandisers offering quality products
and services.
• Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.
• Shopping malls: the biggest form of retail in India, malls offers customers a mix
of all types of products and services including entertainment and food under a single
roof.
• E-trailers: are retailers providing online buying and selling of products and
services.
• Discount stores: these are factory outlets that give discount on the MRP.
• Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks
and other small items can be bought via vending machine.
• Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics and
sporting goods. This is also known as Multi Brand Outlets or MBO's.
• Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a
company.
 2.2 Government Policies:

In a decision that will have devastating consequences for some of the poorest
sections of Indian society, the Indian cabinet last month approved the opening up of the
country’s retail and other sectors of the economy to foreign investment. There are
approximately 40 million people and 11 million outlets in India’s retail sector. Many of
these are marginal businesses—small shops and stalls street vendors and hawkers— which
will be destroyed by competition from large retail outlets and chains.

Many people, who have no alternate source of income or work, will be left
completely destitute. The government decision on January 24 allows up to 51 percent
foreign direct investment (FDI) in “single brand” retail stores. Nike, Nokia or Levi can
establish stores, but multi-brand retailers such as Wal-Mart and Carrefour are excluded, for
now. The Congress-led government also opened up diamond mining, the development of
new airports, the laying of natural gas pipelines, cash-and-carry wholesale trading and
export trading to foreign investors. Companies investing in these industries no longer need
to seek approval from the Foreign Investment Promotion Board and all FDI limits have
been removed.

The government has also approved the removal of restrictions in aspects of the
petroleum, power trading, coal, rubber and coffee sectors. The latest measures are part of a
program of privatization; deregulation and restructuring that began in 1991. Over the last
decade and a half, successive governments have opened up transportation,
telecommunication, food processing, electrical equipment, software, hotel and tourism,
financial services, non-financial services, metals and other industries to foreign investment.
Commerce and Industry Minister Kamal Nath announced the changes before flying to the
World Economic Forum conference in Davos in late January where Indian business and
government officials touted for increased foreign investment. Nath told the leaders of the
world’s richest corporations that India was seeking to increase its FDI to $US10 billion by
2007-2009, up from the $6.5 billion invested in 2008. India’s team at Davos, which featured
Nath as well as the Finance Minister, the Chief Ministers of Delhi, Kerala and Rajasthan
and representatives of Indian business, ran a high-profile campaign to promote the benefits
of investing in India. The Confederation of Indian Industry spent $4 million on an “India
Everywhere” campaign at Davos. Delegates arriving at Zurich airport were greeted with a
billboard announcing India as the “world’s fastest growing free-market democracy”.
 The slogan “15 years, six governments, five prime ministers, one direction”
underscored the commitment of all parliamentary parties in India to the free market agenda.
Although the Indian government hails foreign investment as an economic boon, the growth
has largely benefitted the wealthy to the detriment of large sections of workers, small
business and farmers. The opening up of the Indian economy and deregulation has resulted
in substantial public sector job cuts, the destruction of industries, land seizures and cuts to
food and fuel subsidies. Nath tried to play down the effects of the latest changes on the
poor, claiming that the opening of the retail sector was “limited” and would leave existing
small retailers unaffected. But any change is going to have a devastating impact on an
economic sector that employs 7 percent of the workforce or about 40 million people and
supports as many as 200 million people. Partly due to poor infrastructure, India’s retail
economy is backward by world standards. Approximately 98 percent of those employed in
retail are in what is categorized as the unorganized sector—businesses that are small,
unlicensed and do not pay tax. The sector is far less developed than in most major countries
in Asia. China’s organised retail sector is 20 percent of the total, while the proportion is 50
percent in Malaysia and 40 percent in Thailand. Retail activities such as door-to-door
selling, street carts and market stalls, act as a last resort for the unemployed, given the lack
of jobs in manufacturing and agriculture. Many in the retail trade are living below the
poverty line. A report published in December 2004 by the Centre for Policy Alternatives
(CPAS) entitled “FDI in India’s Retail Sector: More Bad than Good” stated that retailing is
“probably the primary form of disguised unemployment/underemployment in the country”.

The report continued: “Given the already over-crowded agricultural sector, and the
stagnating manufacturing sector, and the hard nature and relatively low wages of jobs in
both, many million Indians are virtually forced into the services sector. Here, given the lack
of opportunities, it is almost a natural decision for an individual to set up a small shop or
store, depending on his or her means or capital. And thus a retailer is born, seemingly out of
circumstance rather than choice.” Commenting on the likely impact of foreign competition,
the CPAS report stated: “India has 35 towns each with a population over 1 million. If Wal-
Mart were to open an average Wal-Mart store in each of these cities and they reached the
average Wal-Mart performance per store—we are looking at a turnover of over 80,330
million rupees [$1.82 billion] with only 10,195 employees. Extrapolating this with the
average trend in India, it would mean displacing about 432,000 persons.” The report added
that if large retailers were to obtain 20 percent of the retail trade “this would mean a
turnover of 800 billion rupees [$18 billion] on today’s basis. This would mean an
employment of just 43,540 persons displacing nearly eight million persons employed in the
unorganized retail sector.” Unlike export-orientated investors, foreign retailers such as Wal-
Mart, Carrefour SA of France and Metro AG of Germany, which have been lobbying the
government to open up the sector, will seek to dominate the domestic Indian market. Their
success as well as those of Indian retail chains will be at the expense of small traders. Large
retailers also threaten the livelihoods of small farmers and manufacturers. Through their
buying power they can force down prices. In addition, retail chains will often want to deal
with bigger and more efficient suppliers rather than small producers. A 2004 paper by
Andrew Shepard, an economist with the UN Food and Agriculture Organisation, confirmed
that large supermarkets often push small farmers out of business.

“Farmers experience many problems in supplying supermarkets in Asia and in some

cases this has already been reflected in the fairly rapid declines in the numbers involved as
companies tend to delist suppliers who do not come up to expectations in terms of volume,
quality and delivery,” he stated. Among other examples, the development of the Giant retail
chain in Malaysia which slashed the number of vegetable suppliers from 200 in 2001 to just
30 in 2003. The Indian decision to open up the retail trade has provoked opposition.
Following the announcement, the Hindu supremacist Bharatiya Janata Party (BJP) passed a
resolution opposing foreign involvement. The BJP’s president in Delhi, Harsh Vardhan,
complained the measure would make India subservient to foreigners and would cause major
job losses. However, BJP-led governments played a major role in opening up the economy
when in power from 1998 to 2004. The Communist Party of India-Marxist (CPI-M) and the
Communist Party of India (CPI) complained that they had not been consulted over the
measures. CPI secretary, D. Raja, declared: “We have been opposing it. I don’t know why
the government has to take such a decision.” These parties help prop up the ruling
Congress-led United Progressive Alliance in the national parliament. The four Left Front
parties—the CPI-M, CPI, the Revolutionary Socialist Party and All-India Forward Bloc—
met privately on January 27 and, according to the Times of India, decided to activate retail
trade merchants’ organisations to protest against the decision. There was no hint, however,
that the Left Front would withdraw its support for the UPA government. Moreover, in the
Indian state of West Bengal, the CPI-M led government is a vigorous advocate of free
market policies, including in the retail sector. Last October West Bengal Chief Minister
Buddhadeb Bhattacharjee held talks with Wal-Mart representatives about the company’s
proposal to take over all the fresh food markets in and around Calcutta. Speaking to the
Indian Chamber of Commerce in October, Bhattacharjee said he had accepted a proposal by
the German company Metro to provide wholesale supplies to hotels in West Bengal. He
also spoke favourably about a proposal from an Indonesian company to build a three-storey
shopping mall in Calcutta that would stock foreign goods. Neither the BJP nor the Left
Front parties, which falsely claim to be socialist, has any alternative. These parties—left
and right—seek to exploit the hostility of ordinary working people to the devastating social
impact of free market policies, encouraging the illusion that the policies of national
economic regulation remain viable. When in power, however, the BJP and the Stalinist
parties have been just as eager to attract foreign investors as the present UPA government.

Taxation Aspects:

The taxation system still favours small retail business. With the intrinsic
complexities of retailing such as rapid price changes, constant threat of product
obsolescence and low margins there is always a threat that the venture may turn out to be a
loss making one. India has a well-developed tax structure with clearly demarcated authority
between Central and State Governments and local bodies. Central Government levies taxes
on income (except tax on agricultural income, which the State Governments can levy),
customs duties, central excise and service tax. Value Added Tax (VAT), (Sales tax in States
where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on
professions are levied by the State Governments. Local bodies are empowered to levy tax
on properties, octroi and for utilities like water supply, drainage etc. In last 10-15 years,
Indian taxation system has undergone tremendous reforms. The tax rates have been
rationalized and tax laws have been simplified resulting in better compliance, ease of tax
payment and better enforcement. The process of rationalization of tax administration is
ongoing in India. Since April 01, 2005, most of the State Governments in India have
replaced sales tax with VAT.

Major Problem:

The industry is facing a shortage of middle management level professionals. Major

retailers are hiring aggressively from the similar and smaller organizations by offering
better packages. They are creating various levels of management and hiring on a spree.
Some of the areas such as technology, supply chain, distribution, logistics, marketing,
product development and research are becoming very critical for the success of the
organizations. All of these would lead to the recruitment of highly professional people who
specialize in these fields. The major problem of company was that company has given
control to franchisee for management of store and handling of the stores. Proper persons are
not appointed for every particular area to look after the stores hence what happened was
more of loss and less revenue was generated .Moreover stores complains of unavailability
of products, reduce supply, increase of customer complaints and thus loss of regular
customer.

National Image:

6 Ten now has a strong network of 400 outlets Nationwide and has become a brand
name to reckon with in the Packed Food, Fresh Vegetables, Fruits, Pvt. Label Groceries,
variety of Basmati Rice and a large variety of FMCG product such as Pest, Soap, Detergent
etc. and Household Items. 6 Ten is uniquely positioned with its experience in the food
industry as well as relationship in the supply network. Its relationships at the retail level
capitalize to provide its customers with a completely different shopping experience.

Future Prospect:

• Centralized purchase & the single-point delivery of all products!

• Proven & never-ending business!
• Readymade & ever-growing customer base!
• Groceries, food products and vegetables at challenge prices in the industry!
• No investment risk in the inventory!
• Remarkable payback period - Just 1 years!
 • Low on investment, high on returns!

Existing supply chain of FnV

Warehouse

• Warehouse situated near Azadpur Mandi. Its official capacity is 12 ton.

• Usually in the summer season, temperature of warehouse is 4 to 5 degree more

than outside environment.

• There is one gate in warehouse.

• Inventor is available in warehouse.

• Ware house open 24 X 7.

Human Resource

• 1 head warehouse manager, 1 night warehouse manager, 1 account, 1 operator, 3

purchasers and 1 sub purchaser and 1 each purchaser at 2 CC are official
employee work there.

• Rest labor, transportation are on contract base.

• All employees work 7 days in week.

• They work in 2 shifts. One is day shift and another is night shift.

• Warehouse manager is responsible for all the activities happing there, if

possible.

• Some time special inspection done by supervisor.

Purchasing
 • First, the warehouse manager makes expectation for the demand of next day.
The expectation based on experience and previous day demand, so it does not
match with the exact indent but approximate.

• Fruit, ginger, garlic and POT are purchase in the morning from Azadpur Mandi.
Purchasers who are official employee of company get expected demand and
purchase accordingly. When goods come at warehouse it’s quality and quantity
check. If not anything is proper then purchaser is responsible for that.

• CC center purchaser gets expected demand in morning. Goods come from

collection center in the evening. Collection center are those places where FnV
directly collected from Farmers and send to ware house. After loading goods
from CC, CC’s purchaser inform warehouse and make them noted what quantity
of goods he has sent. After receiving vehicle of CC at warehouse, they check
quantity, quality. If quantity is not according CC’s purchaser then the
responsibility is of driver, if quality is not proper then warehouse report to HQ
and they can return that goods to CC.

• After receiving the final indent from head office, if the stock does not match
with indent the remaining stock has purchased by night purchaser (1 senior
purchase, 1 junior purchaser). Besides this, some vegetables have also purchased
at night. After receiving the goods at warehouse, its quality and quantity check.
If items were not proper then purchaser would be responsible for that.

Sorting and Grading

After receiving FnV in warehouse

• However, the sorted fruits come from market. Again sorting and grading done at
warehouse, if any fruit find dump then it returns to vendor. Same process
followed with vegetables. FnV from CC’s have already sorted at CC.
• Sorting and grading takes place with the following process.

1. According standard size of FnV. E.g. potato, onion standard size is 40mm.

2. According to quality

(a) This is spontaneous find bad.

(b) This may be bad until supply.

(c) There is special grading in onion. Onion is purchase in huge quantity.

Therefore, at the time of sorting they also make special premium packet
with regular.

• Sorting and grading of existing stock.

(1) Those goods, which have not supplied on that day, are sort again before next
day supply.

(2) Those goods, which return from stores, are sort again before next day
supply.

• There are two types item in warehouse.

• Rejected items

Which items comes in rejection criteria will throw in rejected items.

Rejected items do not send to stores.

• Fresh goods

Rest goods called fresh.

• Rejected item solution

 1. If rejected FnV can return to vendor then it returns to vendor. It all depends,
condition on which those goods had purchased by purchaser.

2. Those items, which are not according to norms, those kept in different crates.
Some small purchasers come and purchase those fruits and vegetables from
rejected FnV.

3. Rest rejected FnV call Dump and that throw in Garbage.

• Fresh goods set in crate in standard weight or according to demand and stock.

• In night, all crates were set according to their category in rows and columns.

• Measuring all last stock by contractor labor, again check by company’s

supervisor at night.

Price

• Measuring price of FnV for stores

• What price FnV comes from market and CC, after sorting, rejected weight
minus from total weight.

Unit price of item = total market price of item / last weight of fresh item

{For HQ}

• This price sends to HQ on which adds company’s profit into unit price of
item. Usually it is 5%. However, in POT this profit may be IN MINUS.

 This profit calculated on the competitive and market condition.

• 1 + 1 Rs. / kg also add in the total weight of store supply. This cost is
warehouse cost and transportation cost which received by contractor not
company.

• After it, these rates send to store in morning with their supply.
 • Contractor charge 12-ton FnV price daily weather demand is 12 ton or not.

• Supervisor time to time takes information about warehouse price.

Indent

• There is one person who is sitting in HQ, collect demand, which called indent,
from franchises.

• Franchises send their demand by e-mail and phone.

• This demand then forward to warehouse. Generally till 5 to 6 pm and sometime

late.

• If that person not available then demand can come to anyone concerning person
who works in warehouse.

• Day operator after getting all demand makes spread sheet, that data then forward
to night operator.

• After coming last arrival, demand match with stock.

• Then last indent make on basis of available stock, that which store get how
much goods. Because may be item is greater or less then the demand.

• Priority had given to flagship stores while last indent list prepare. High
demand’s stores called flagship store.

• According to this last, indent list goods dispatch to stores.

Supply

• After getting last arrival, sorting, and got last indent, dispatching process start.
Key stores have kept on priority. More careful took in their goods selection and
time of dispatching.
 • Last indent list’s, according to stores, four copies print. In those copy, item code,
item name, standard crate size, rate, weight of each item, total weight and total
amount. One copy supervisor use, two copies send with the transport to store
with goods and last one kept in warehouse.

• Two contractor’s supervisor with labor collects all indents items of stores
separately. Simultaneously other labor loads these goods in transportation
vehicle.

• Root plan done by contractor supervisor. Therefore, he does according to his

convenience. Generally, it does according to indent.

• Times of dispatching three-dispatch slip have made. These dispatch slip has two
parts. In one part write each store total goods supply weight, no. of small and
large crate, time of dispatch from warehouse, no. of stores are dispatching in a
transport vehicle, driver name and contact no. . One slip gives to driver along
with two copy of each store last indent list. One copy keeps in warehouse and
another one-contractor use.

Store and Return

• When transport vehicle reach at store, then store’s employee receive goods, they
check quality, weight of each item.

• If they find weight is less then as given in price indent list, then they mark less
weight.

• If they find quality is not good, then either they sort it and rejected goods return
to ware house or they can return all goods. In another case if store receive late
supply, they can return all goods.

• Then they load empty crate, in same number that they have got from warehouse.
In other part of dispatch slip, they mention return crate, time of arrival of
vehicle, return goods and time of departing from store. In indent list they also
mention reason of returning goods. These both list return to driver with store
employee sign.
 • Weight loss is responsibility of driver. Only up to 500gm will be forgivable.
Above that driver will be responsible for loss.

• These returns come back to warehouse by same vehicle. Here a contractor

employee checks return and register it.

Billing

• Store billing

This return will deduct from store indent, if reason is considerable, and make
last bill. This bill mail Head office.

• Purchasing billing

• Goods that come from CC, after check and pass by warehouse, make three copy of
bill. One sends to HO and another two for warehouse.

• Goods, which come from Mandi, after, came in warehouse its weight and quality.
The purchaser makes 2 slip of quantity and price of goods.

• After sorting process complete, according to last weight, price drive. On that basis
warehouse, make 3slip of vendor name, 1 send to HQ and another two for
warehouse.

• Whatever warehouse got in sale of rejected goods, this will company’s profit, and
send to company.

• Last dump throw, no entry for that.

• They also register purchasing according to purchaser, which send HQ and

warehouse.

Note: If warehouse or store suffer by any problem, or find any mistake, they call to HQ.
 3.1 Objectives of the project

To do a comparative analysis for particularly FnV (Fruit and Vegetables) of

different Retail stores.

Resource Knowledge

• FnV sale

• Offers and promotions.

• Price

• Quality

• Customer footfall
 3.2 RESEARCH METHODOLOGY/ DESIGN

The methodology adopted for eliciting the data required for the study was survey method. It
is the overall pattern or framework of the project that will dictate as to what information is
to be collected, from which sources and by what procedures.

RESEARCH METHOD

Research methodology must be classified on the basis of the major purpose of the
investigation. In this problem, description studies have been undertaken, as the objective of
the project is to conduct the market survey about the comparative analysis to do a
comparative analysis for particularly FnV of different Retail stores.

DATA COLLECTION

The information needed to further proceed in the project had been collected through
primary data and secondary data.

PRIMARY DATA
Primary data consists of information collected for the specific purpose at hand for the
purpose of collecting primary data, survey research was used and all the retail outlets were
visited, included 6ten stores as well. Survey research is the approach best suited gathering
description.

SECONDARY DATA

The secondary data consists of information that already exists somewhere, having been
collected for another purpose. Any researcher begins the research work by first going
through the secondary data. Secondary data includes the information available with the
company. It may be the findings of research previously done in the field. Secondary data
can also be collected from magazines, newspapers, other surveys conducted by known
research agencies etc.

RESEARCH METHODOLOGY

The respondents are store’s officials of various Retail outlets. The survey was carried in
Delhi/NCR with the sample size of 46. The survey was carried out with the help of a
structured questionnaire, which helps in accomplishing the research objectives. The
respondents by means of personal interview administer this structured ended questionnaire.

Research design:

Descriptive method is used in the research. A sufficient thought has been given in framing
the questionnaire and deciding the types of data to be collected and the procedure to be
used.
Sources of data:

Primary data:-

Questionnaire has been used to collect the data. It contains the open ended, closed ended
and scaling techniques.

Data collection method: Survey method has been used for collecting the data.

Method of communication:

Indirect communication (questionnaire) has been used for collecting the information.

Data Analysis and Result

Tools and techniques of analysis of Data For Analyzing the data gathered from market
survey I have used two main IT tools which are as –

• Microsoft Excel
• SPSS

These two software’s have helped me to summarize, analyze and comparing various
variables of survey information. Through MS Excel all the chart and bar graph for results
are prepared While SPSS has helped me to determine that which factor is Company share
information, Company image, Advertisement is related with company sale.

Sample size: 46 stores have been surveyed.

Sampling technique: Convenience area sampling has been used in the research.

Area of survey: DELHI/NCR

 3.3 SAMPLING DESIGN

Delhi has a very large amount of population for carrying research study on any subject. It
was thought proper to cover all the different retail stores(different company).

The sampling chosen is the non probability convenience sampling, because only those
outlets were interviewed that were accessible and available and mainly which are close to
6ten.

Sample Size Selection: No statistical technique was applied to determine the sample size.
For this survey the sample size selected is 46
 3.4 LIMITATIONS OF THE STUDY

• The sampling plan was based on non-probability method and no scientific methods
were adopted.
• The study concerns itself with consumer trading behavior, which is a complex
activity. This is a psychological process and is so spontaneous sometimes, that, store
officials does not recognize it and remains unaware, and when store officials is
asked to give his views on such buying, it cannot be 100% reliable.
• The sample size is not sufficient to represent the whole population.
 • Due to time constraint the survey has been done on the basis of convenience.

3.5 ANALYSIS & INTERPRETATION

Q. Average footfall at the store per day?

Up to 200 200-250 250-300 300-350
Others………. (Fill no.)
 Up to 200 1
200-250 2
250-300 3
300-350 4
Above 350 5

Interpretation

• On an average at 6ten around 200 customer visit per day.

• At Reliance around 350 plus customer visits per day.

• At more around 200-250 customer visit per day.

 • At mother dairy 300-350 customer per day.

• Because in the sample, only on store of easy day has found, so it is not considerable
to compare it with others, though more than 350 customer visit at easy day on an
average.

Q Sale of Fnv out of total sale?(In percents)

Up to 10 10 – 15 15 – 20 20-30 Others……….
(Fill no.)

Up to 10 % 1
10-15 % 2
15-20 % 3
Interpretation
20-30 % 4
• Sale of FnV out of total sale at 6ten is around 17-20% per day. Other(more) 5

• At Reliance fresh and More sale is around 15-18 % for Fnv out of total sale.

• Whereas Mother dairy entirely deals in FnV,so the sale is around 90% out of total
which cannot compare with other stores.(Safal –Separate store for FnV)

• At Big Apple sale is around 13-16 % for Fnv out of total sale and at Easy day it is
around 20-30%.

Analysis

On an average at every retail store the sale of FnV out of total sale is around 15-20%, but as
per my experience at 6ten stores, previously the sale of FnV was very high but now it has
been reduced significantly. The quality of FnV which purchased and segregated at
warehouse is very good, though the customer feedback is normal about quality neither they
are agree nor disagree.
Recommendation: To increase the sale of FnV out of total franchiser has to maintain the
quality through proper management, what other stores are doing.

Q. Categorical sale of Fnv – (POT, LEAFY & DRY veg., FRUITS are ranked as per its
sale)

FOR POT

Interpretation

Above graph shows the rank given by different stores to POT,maximum stores of all the
company says sale of POT from all other category of FnV is at Rank 1.

FOR LEAFY,DRY AND SEASONAL VEG.

Interpretation Graphs shows the rank given to Leafy,seasonal and dry vegetable (in same
category) and the average is Rank 3.

FOR FRUITS

Interpretation Graph shows the rank given to the sale of fruits among all the category of
FnV and the rank for fruits is found is 3.

Analysis: Overall findings from the question of categorical sale is, POT sales on Rank
1,Fruits 2,leafy,seasonal and dry Rank 3.Average sale of POT an Fruits is around 30-40 %
each whereas the sale of Seasonal vegetables is low at every store and is around 15-20 %.
Because of high risk, maintenance, and low margin company’s avoid to focus more on this
category.

In case of Easy Day store, only one store has found, so the comparison is not appropriate.

Q Do you grade and segregate the f n V as per its quality?

Yes No

Interpretation
The graph shows overall percentage of stores from sample that segregate the fnv of all the
companies. Around 95% of reliance stores which was visited grades the fnv as per its
quality, same for other.

Analysis

At 6ten’s stores no segregation and grading done(except few stores), once it put in rack
than no one take care for it, whereas those store that can Benchmark for 6ten, Stores like
Reliance fresh, easyday, mother dairy proper segregation and grading done, though
mother dairy only deals in FnV. So there should be proper maintenance for Fnv at 6ten’s
Store.

Q How do you rate quality of F n V as per its price? ** (filled by customer)

Interpretation
The question is being answered by customer at different stores.

• At 6ten around 41% people are disagree with its price and quality whereas only
10% are agree.

Analysis

At Reliance fresh where quality is fine but the prices are little bit higher, but because of
brand image of reliance around 75% people from the sample are agree. In case of Mother
Dairy (safal) because of customer loyalty and it is oldest brand in FnV, customers are 30%
customer agree with its price and quality and 42% are neither agree nor disagree. For More
and Big apple the maximum response is neutral. As far as 6ten is concerned around 41%
customers are disagree with its quality and price and say previously it was very good but
now it’s not good.

Overall the image in customers mind is not very bad for 6ten because company has
performed well at beginning. It also depends on location but overall the company can retain
its customer.

Q Dump material out of total F n V per day?( In percent)

 Below 5 % 1
5 to 10 % 2
10 to 15 % 3
Above 15 4

Interpretation

• On an average at 6ten dump material out of total is around 5%.

• On an average at Reliance fresh dump material out of total is around 7-8%.

• On an average at more dump material out of total is around 7-8%.

• On an average at big apple dump material out of total is around 10%.

• On an average at mother dairy dump material out of total is around 5-7%.

Analysis

Overall dump for all the stores is around 5-10%. But here 6ten’s dump is below 5% which
is considerable, although dump material is also depending on total sale of FnV.
Q In scale of 1 to 5 rate the factors on the basis of customer priority which makeup
purchase decision.

Interpretation

Above Graph shows customers priority at different stores.

Analysis

Here finding suggest that at 6ten customer come with the price and quality’s mindset first
that availability. But 6ten can fight at price with other stores. Overall prices at 6ten are
main concern as per stores for customer. Whereas at mother dairy which only deals in FnV
availability is main concern.
Q Offers are promoted on.

Interpretation
Graph shows when the offers promoted at different stores.
At 6ten no offers are promoted except those which is being given by separately by
franchise whereas at Reliance, More, Bigapple offers are promoted on weekends, at mother
dairy occasionally offers promoted.

Q What kind of offers do you give to increase your sale?

Interpretation
Graph shows what type of offers are promoted at stores.
At very few 6ten’s store inside signages are given, which means franchise give their own
offer and reduce price at their own. At Reliance combo offers are given, at More and Big
apple only price offers which is given by company is promoted.

Q How much sales increase when the offers are promoted?(in percent)

Upto 5% 1
6 to 10 % 2
11 to 15 % 3
Above 15 4
Interpretation:

Above graph shows the sales increase when the offers are promoted in percentage. On an
average where the survey was conducted normally the sales increase by 5-10% when they
promote any offers.
At Reliance around 9-10% increase in sale,at big apple 10-13% increase etc.

Analysis
For the Q8, Q9, Q10.

At 6ten there are no offers promoted particularly on FnV, whereas at other stores offers on
fnv are promoted on weekend and normally price cut down and combo offers are promoted.
For clearing the stocks company like Reliance and More use Mark Down approach, which
means cut down the price up to certain level, for example Reliance fresh has given the
authority to its manager to reduce price up to 30%, But at Mother Dairy no such approach
uses.
For 6ten some stores are following that approach depends on its franchise, But through
such kind of approaches Dump can be reduce.

As far as weekend offers are concerned, normally company gives Combo offers and
company’s price offers.
Q Does the presence of other stores or option influence the consumers purchasing
decision?
1.) Yes 2.)No
Interpretation:

Above graph shows the effect on consumer purchase decision because of the presence of
other stores or option. On an average Reliance, More stores says there is no effect on
consumer purchase decision, though the major stores are not located at very short distance.

Analysis

For particular FnV the presence cart puller always influence the purchase decision but
mainly for seasonal and leafy vegetables, therefore the sale is lower than other categories.

As far as the Fruits and POT is concerned customer prefer to buy from stores because of
quality, price, ambience, offers etc. Mother dairy’s stores are located at every location
wherever the survey is conducted and it’s been the main competitor in particular Fnv for
6ten’s stores.
Q How do you deal with bad quality product?

Interpretation

Above graph shows how the stores deal with bad quality product or when in evening quality
lower down. At Reliance store they control the moisture and segregate frequently. Normally
stores focus on moisture control.

Analysis

Maintenance of FnV depends on its category, for some costly fruits stores uses refrigerators
and for vegetables they use AC and try keeping the place cool whereas Potato, Onion
doesn’t required such kind of maintenance. But on an average at 6ten no such arrangement
has found except few key stores. To maintain the quality and reduce the dump such
arrangement should be implemented.
Q How the stores set their indent?

6ten Reliance More BigApple Mother D Easy Day

Indent set Before 12 Before 48 Before 48 Before 48 Before 24 Before 48
hrs. Max. hrs hrs hrs hrs hrs
Bases of Yes Yes Yes Yes Yes Yes
Cl. Stock
Experience Yes Yes Yes Yes Yes Yes
IT Tool None SAP Oracle ** *** Smart S/W

** Didn’t get the exact IT tool what they use.

*** Didn’t get the exact IT tool what they use, but they use their own technique and give
the indent with transport (vehicle who supply fnv) everyday.

Analysis

The way how 6ten set the indent is not very good, where all the store set their indent before
48 hours, 6ten’s indent set around 12 hrs before. No appropriate IT tool is being used at
6ten, whereas the major players uses certain Software for their demand forecasting.
 3.6 HYPOTHESIS

Alternate Hypothesis
1) There is no difference between 6TEN stores and other competitor store on the bases of
following factor.

• FnV sale

• Offers and promotions.

• Price

• Quality

• Customer footfall

2) Sale of store is influenced by the following factor

• Offers

• Company image

• Information sharing with franchise

NULL Hypothesis

• There is no affect on the sale by the factors of Offers, company image and
information sharing.
 3.7 FINDINGS

SPSS

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Customer_footfall 15 3.6667 1.17514 .30342

One-Sample Test

Test Value = 4.36

95% Confidence Interval of the

Difference

t Df Sig. (2-tailed) Mean Difference Lower Upper

Customer_footfall -2.285 14 .038 -.69333 -1.3441 -.0426

 • Here the null hypothesis was there is no difference in average footfall at 6TEN and
Reliance fresh which is being rejected, So there is significant difference.

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Customer_footfall 15 3.6667 1.17514 .30342

One-Sample Test

Test Value = 2.8

95% Confidence Interval of the

Difference

t Df Sig. (2-tailed) Mean Difference Lower Upper

Customer_footfall 2.856 14 .013 .86667 .2159 1.5174

 • Here the null hypothesis was there is no difference in average footfall at 6TEN and
More,6TEN and Big Apple which is being rejected, So there is significant
difference.

Company share information with store * average sale

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 35.810a 20 .016

Likelihood Ratio 36.184 20 .015

Linear-by-Linear Association 5.390 1 .020

N of Valid Cases 30
Here the null hypothesis was ‘there is no association between the information shared with
store and its sale’, which is being rejected. So there is association.

Advertisement * average sale

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 30.063a 15 .012

Likelihood Ratio 23.224 15 .080

Linear-by-Linear Association .834 1 .361

N of Valid Cases 30

Here the null hypothesis was ‘there is no association between the advertisement shared and
its average sale’, which is being rejected. So there is association

Company image in customer eyes * average sale

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 33.345a 15 .004

Likelihood Ratio 32.265 15 .006

Linear-by-Linear Association .014 1 .906

N of Valid Cases 30

Here the null hypothesis was ‘there is no association between the brand image in customer
eyes and its average sale’, which is being rejected. So there is association.

So “There is significant affect on the sale from the factors of Advertisement, Information
sharing and company image at 6TEN” and the NULL Hypothesis is rejected.

From the Primary data and secondary the findings are as follows.
• Average Footfall at 6TEN stores are less than its competitor stores which can
improve and the reasons are no appropriate space, maintenance etc.

• Sale of FnV is not so much less than its competitors out of total sale but for the
growth it can improve because previously company was performing very well
particularly in FnV.

• From the overall sale of FnV all the competitors and 6TEN itself, normally sales
POT and Fruits at first than seasonal and leafy veg. because of its high maintenance
and risk, but here company can make its Point Of Difference by improving the
quality and promotions, though it has to take some risk in it, but once the brand is
set in customer mind it benefits to organization for long.

• At 6ten’s stores no segregation and grading done(except few stores), once it put in
rack than no one take care for it, whereas those store that can Benchmark for 6ten,
Stores like Reliance fresh, easyday, mother dairy proper segregation and grading
done, though mother dairy only deals in FnV. So there should be proper
maintenance for Fnv at 6ten’s Store.

• As far as the offers are concerned normally there are no specific offers promoted on
FnV but at weekend some competitors give offers like combo offers, so the
company can promotes such type of offers at their stores.

• As far as the quality and price 6TEN is concern customers are neutral,average
response has found whereas at reliance fresh and mother dairy customers are
satisfied. Here brand image also matter from customer mind set, customer takes
decision as per the perception.
 • Overall from the findings at 6TEN customers response is neutral, but the brand
image is violating, so it should be the main concern for company. Reason are Price,
availability etc. few stores are performing well but all together its not up to mark.

3.8 ACTIONABLES
To increase more footfalls more promotional activities must be carried out. For this 6TEN
can either offer more discounts or increase their advertisements. Increase in the number of
footfalls will lead to increase in sales.

Allowing more space between the entrance of a store and a product gives it more time in the
shopper's eye as he or she approaches it. It builds a little visual anticipation.

Play light music inside the store to make the shopping a pleasurable experience.

Baskets should be scattered throughout the store, wherever shoppers might need them.
Many. Customers don't begin seriously considering merchandise until they have browsed a
bit.

Make temperature control warehouse, which at least keep FnV fresh till 10 hours. Starting
can be done by using ACs. By which at least FnV will remain fresh until sales which is
been done at competitor’s stores.

Giving training to the store people is very important, so start giving Training to them
about
• How to display FnV?
• How to keep FnV fresh for long time?

Make understand to franchisee about

• New trends of businesses are Revenue.

 • How can and how much they can increase sales by reducing price at evening
and by decreasing dump?
• How much price should be reduced for it in the evening or when it started
getting dump?
• How to calculate Dump?

Whereas all the competitor’s stores are COCO

Investigation should be there at stores frequently. At least 1 times in a week visit every
store.
• It can help to give training to stores on the job.
• It helps company to control the stores.
• It helps company in reducing problem regarding Payment, Stock-out, store
management etc.
• It helps in controlling outside purchasing by stores.
• They can help franchisees in managing store.
• It also helps in increasing sales.
(This trend is generally followed by Reliance.)

Investigating at stores can bring lots of changes which can be used in eradicating the
problems at stores like mismanagement, purchasing from other than the warehouse
material, payment on time etc.

• Take prior initiative regarding FnV price or quality at stores.

• Take help of any software or statistical tools for forecasting, so that store can give
Indent at least 24 hours before. So that warehouse can supply appropriate quantity
and on time.

• Every evening stores should send full details of there whole day sale by there bills.

• Company also can get information of each product’s buying behaviour of customer
and according that can manage their supply chain.
• This also helps in forecasting, and because of which Expire product problem can
also be controlled.
• Service of store should be providing in such way which full the need of the
customer.
 • Store location and size again re-evaluate and maintain minimum size as company
norms.

• Not give more than 1 store to A franchisee. Because they cannot manage 2 or more
than store simultaneously. These rules also apply for master franchisee.

• Make SOP for working in stores.

• In future every store should be connected with headquarter by this way, that when
company want they can get all information about that store.

3.9 Overall Experience

My experience was very learning, I worked at three places

1- FnV warehouse

2- Headquarter of company

3- At stores

I have learned lot of things while working at those places. I have learned that

• Importance of supply chain

• How to make supply chain
 • What’s the factors those affect supply chain
• How headquarter coordinate between store and warehouse.
• How they make offers
• How stores interact with customer
• How store should manage
• How to talk with labor and Vice President of company

I worked as trainee, but that Time Company gives some responsibilities to me

like supervisory.

Few of the suggestions were also implemented in the company.

In future when I work in any company or start my own venture that time these
knowledge help me by various ways.

4.1 BIBLIOGRAPHY
REFRENCES:

“Marketing research”, fifth edition, by ‘Alvin C. Burns’ and ‘Ronald F.Bush’.

“Marketing research”, fifth edition, by ‘Naresh K. Malhotra’.

“Supply chain management”, by ‘Thomas A. Cook’

“Role of supply chain in Indian organized retail sector” by ‘S.Savitha’ written

on, Saturday june 26, 2010.

“India’s retail revolution begins” by ‘Raj Menon’ written, on 15 may, 2007.

“consumer behavior in India” by matrade Chennai, written on October, 2005.

www.6ten.co.in

www.moneycontrol.com

www.rediffmoney.com

www.wikipedia.com

www.logistic.about.com

www.supplychain.com

www.consumerbehavior.net

www.topics.nytimes.com

www.competitivecyclist.com

www.statcrunch.net

www.walmart.com

www.reliancefresh.info

4.2 ANNEXTURE
Questionnaire

Store Profile

Name of Store

Address

Tel Website

Contact person: E-mail:

 1. Type of store?
COCO CODO (franchise) others………….

2. Average footfall at the store per day?

Up to 200 200-250 250-300 300-350
Others………. (Fill no.)

3. Sale of Fnv out of total sale?(In percents)

Up to 10 10 – 15 15 – 20 20-30

Others………. (Fill no.)

Categorical sell of FnV?

Up to 25% 26 – 30 31 – 35 36 – 40 Other

POT

Leafy & Seasonal

Dry

Spices

Fruits

4. Do you grade and segregate the f n V as per its quality?

Yes No

5. How do you rate quality of F n V as per its price? **(filled by customer)

1 2 3 4 5

POT

Leafy & Seasonal

Dry

Spices

Fruits

**1. Strongly disagree 2.Disagree 3.Niether agree nor Disagree

 4. Agree 5.Strongly Agree

6. Dump material out of total F n V per day?( In percent)

Below 5% 5 – 10 10 – 15 above 15

7. In scale of 1 to 5 rate the factors on the basis of customer priority which makeup
purchase decision.

1 2 3 4 5

Quality

Price

Availability

Customer
Service(CSA)

Ambience

8. Offers are promoted on

Daily Weekends Others……………………..

9. What kind of offers do you give to increase your sale?

Company Price offer inside signage’s Combo offer

Others…………………………………………………………………………….

10. How much sales increase when the offers are promoted?(in percent)
Up to 5% 6-10 11-15 16-20 above 21
11. Does the presence of other stores or option influence the consumers purchasing
decision?
Yes No

12. How do you deal with bad quality product?

Cut Down price Treat as dump Return to ware house other
………………………………………………………………………………..

13. What are the strategies that you adopt to maintain more shelf life for your items,
mark the following.
Moisture Control Cleanness Segregation

Other ……………………………………………………………………………….

14. How do you set the indent?, with the help of :

IT tools Experience Statistical tool

Others……………………………………………………………………………….

Thank you