Introduction to Retail Sector

Retailing involves all activities incidental to selling to ultimate consumer for their personnel family and household use

The Indian retailing industry is becoming intensely competitive.

Retail Sector is divided into two types

1. Organized Retail

2. Unorganized Retail

World of Titan

INTRODUCTION

Titan Industries is the world's fifth largest and India's leading manufacturer of watches.

Owned by TATA group. The Titan portfolio has over 60% of the domestic

market share in the organised watch market. The company has 247 exclusive showrooms christened

World of Titan The world of titan mainly deals with watches.

Core Competence Niche Buisness areas

USP-1. Exclusive showroom where you find all products of

titan under one room.

2. Quality and service titan offer is very unique.

3. Cover wide range of customers from all age group.

4. From mass to elite class every one is customer

Value Proposition and added niches:1. Extra maintanance guarantee(EMG) is provided.2. Loyalty program called signet offered to the

customer for purchasing watch coting more then two thousand.

3. Quality and service titan offer is very unique.4. Watches available for mass to elite class

Continued

Threat: International Market

Corporate Partners: Tommy Hilfiger and Tamil nadu industry development corporation(TIDCO).

Core Customers: 1. Middle class people.

2. Elite Class people

Customer Relationships:What to expect at Titan Service Centers:

1. Quick Response

2. Quick & Quality repairs

3. 6 months repair guarantee

4. Signet points on service billing at Watch Care Centres.

5. Titan gift voucher acceptance at Watch Care Centres.

6. Credit Card acceptance.

7. Provision for standby Watch.

8. Wide range of watch accessories.

9. Conversion of old watches to new on selected design / models.

10. Home delivery of watches at nominal cost at selected outlets.

11. Repair of all Titan watches.

12. Fully automated billing at most Service Centres.

13. Dedicated & Compnay trained Customer Care Hostess and Service Technicians.

14. Customer friendly ambience

Supply Chain

Diagram Manufacturing Unit

CNFIndore(M.P.)

CNF (U.P.) CNF (Karnatak)

Titan Show rooms Bhopal

Titan Show rooms Indore

Etc.

Etc.

Products

Different type of watches: Raga Diva(“Unveil the real you. Be more”):

For ladies Zoop: For children WWF(Be one with the wild)

Continued…

Nebula Octane(“Be Speed Be more”) Sonata FastTrack(Move on) Xylys(Swiss Mode) Edge Bandhan

Distribution

Currently Titan has 65 distributors handling well over 6000 dealers across the country. Distribution Worldwide

Titan distribute through an exclusive distributor in each country.

Continued…

Manufacturing unit

CNF

World of TitanDirect dealers

Revenue

Revenue Generated: From Regular formal watches. Mainly Tier I and II cities each showroom has a

turnover of about Rs. 20 to 30 million a year in large cities and about Rs. half a million a year in smaller towns

Through various promational activities Through franchise

Cost model

Basically Titan is a self manufacturing brand. Titan manufactures complete watches and almost all

the components that go into them. These include: Over thirty different types of high-performance

jewelled quartz movement calibres Cases and bracelets in gold, steel and brass, finished

in a variety of surface coatings including Physical Vapour Deposition (PVD)

Cost model is an integral part of organisation and not shared with outsiders.

Buisness model

Introduction

Hypermarket Founded in 1986 Headquartered in Delhi Type-Manufacturing and retail

industry Promoter-Mr. Ramchandra Agrawal Punchline-”Value for Money”

USP-1. Good service2. Customer satisfaction3. Quality and Products4. Reasonable Rates

Core Competence-1. Apparels2. Quality3. Customer service4. First mover to tier 1 and tier 2

Competitors1. Big bazaar2. Shopper’s Stop Corporate Partners1. HLL2. Dabur

Customer Relationship1. Customer care center is available in each

oulet of vishal megamart.Customer satisfaction is their priorty.

Value proposition and added Niches1. Value proposition is provided in the form

of quality customer service

2. Good quality at lower prices.

Advertise in local dailies Website www.vishalmegamart.net PR – News Papers, Magazine’s Various sales Promotions like shop

and fly. 25% off on all items Discount offers

Promotion

Continued….

Phyical Evidence: Infrastructure - Stand Alone

Commercial Building Place – Clean, Air Conditioned outlet Equipment – Computer, desk etc

Core Customer

Middle Class Family. Tier III and IV cities. As on year 08

43% Tier III and IV cities, 29% from Tier II city and 28% from Tier I city

Products Apparels = Private Labels Non-Apparels = Private +Others FMCG(Fast Moving Consumer Goods)

= Private +Others Co-Branding with SBI. Toys and games, Stationary and

Cloths. In House Brands.

Small Town Big Opportunity

Low brand penetration in small towns Real estate is cheaper High share of apparels about 42%

Buisness model

NEXT Mart

Introduction

PunchLine: “Best brands. Best bargains.”

Emerging giants in the organized retailing of consumer electronics

Present in 16 states and over 384 outlets

Vision

The vision of NEXT is to be the number one in the retail field in our category and to become a globally recognized company through innovation, passion through quality, freedom through empowerment, and cost through volumes

Core Competance: Videocon Corporate Partners: Corporate tie-ups

are there with all major Brands. E.g. LG, Samsung, Videocon, Whirlpool, etc.

Customer Relationships: Customer care center available at each outlet and demo of product is given by the specialist of specific brands

Value Proposition added niches •Only chain of outlets to deliver across India.

•Only chain which does institutional supplies across all product categories and across brands.

•Customer oriented organization – have even created special email IDs for suggestions / complaints of customers of and employees. Always open to suggestions & improvements

Revenues Generated Time to time or at festive season. Sale is more in Tier I and II cities. Add Campaigns run to boost Sale. This is to

boost sale at Festive periods. Potential Products are TV’s , AC’s from

which maximum revenue is generated. In winter season Maximum Selling Products

are Geyser’s and CTV’s

Branch Manager

Cluster Manager

Outlet General Manager 

Customer Support Executive

Customer Sales Executive

Hierarchy in the company

Products from all the electrical brands like LG,

Samsung, philips, whirlpool

Corporate Office

Next showroom of a city

Local offices for all the brands in a particular city

Supply/Distribution Chain

Buisness Model