A Cross-Category Analysis of Shelf-Space Allocation, Product Variety And Margins

By Anuradha Gaikwad

Introduction

1.Retailing in India is one of the pillars of its economy and accounts for 14 to 15 per cent of its GDP.

2. India's retailing industry is essentially owner manned small shops.

3. The opening of retail industry to global competition is expected to spur a retail rush to India.

4. In 2010, larger format convenience stores and supermarkets accounted for about 4 per cent of the industry, and these were present only in large urban centres. 

Origin of the research problem

The idea of working on this research is a

result of reading on merchandising of

products and also product mix of the store

Significance of the study

1. With the current proposed entry of FDI in retail any type of research would be helpful to the industry.

2. Also we offer a special elective on Retail Management, hence any insight into aspects of Retail management will be useful to both faculty and students.

Objectives

1. To study the shelf space allocation for food items in multi brand retail stores.

2. To find out the relationship (if any) between the retail margin and the total shelf space allocation for a product category.

3. To study the variety of brands stocked in a specific category of product.

4. To understand the relationship between shelf space allocation and brand variety.

5. To find out relationship between shelf space allocation and sales volume.

Hypothesis

There exists a correlation between shelf space allocation, brand variety and retail margins.

Methodology

Data Collection – Primary data collection – • Actual measurement of shelf space allocation

and brand variety.• Questionnaire survey of consumer behavior

with respect to food products. • Interview schedules of store managers.• Interview schedules of distributors in Sangli Secondary Data Collection – through

research articles, journals books and reports.

Study area – Sangli City.

Method of data collection – non probability haphazard sampling.

Limitations –

1. The entire project is subject to constraints of time and money.

2. Study in small multi brand retail stores in Sangli only.

Details of Study

Three stores – Bharti, Tarun Bharat & Dandekar.

All within 1.5 km radius in city. Food items being studied – biscuits, tea,

noodles, breakfast cereals, sauces and pickels.

Shelf space, sales volume & margins collected.

Around 550 consumers across the stores already surveyed.

Statistical tools for analysis

1.Chi square test

2.Correlation

3.Cross tabs (using SPSS)

Quarterly plan of work and targets to achieve

Sr No Time period Plan of Work Status

1 First 3 MonthsLiterature review, preparation of questionnaire, interview schedules

Completed

2 3-6 MonthsData Collection & analysis

In process. 75 % data already collected. (all data will be available by 15th July.

3 6-10 MonthsInterpretation and final report preparation.

Will be completed by October 2012.

Expenditure so far

Travelling Rs 500Xeroxing of questionnaires Rs 900

THANK YOU