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1.0 Introduction

Videocon Industries Ltd. is a very large diversified company headquartered at Gurgaon, Haryana.

It is a very well-known Indian company which is very much focused on maintaining the highest

standards for ecellence as per the international guidelines through delivera!les of high

technology, innovation and quality. "he core !usiness areas for Videocon are consumer

electronics and home appliances. #ecently they have also diversified into various areas of $"H,

power, oil eploration. %rand !asket of Videocon includes &ansui, 'enstar and 'elvinator.

Videocon does its retailing through three retail !rands namely ()*", $igi+orld and lanet .

rimary focus of the report would !e on ()*" #etail India Ltd, Indias largest electronics retail

chain.

()*" started its functioning in /001 and speciali2es in organi2ed retailing of mo!ile phones,

small phone appliances and consumer electronics. It is a multi-!rand and multi-product retail

chain which has a range of consumer dura!les including 3"Vs, +ashing achines, 4ir-

conditioners, 5$s 65lat anel $isplays7,

()*" is a multi-!rand, multi-product retail chain which stocks an entire range of consumer

dura!les, Home "heatre &ystems to &"%s, #efrigerators, icrowaves, 6&et "op %oes7, Gaming

consoles, small home appliances, mo!ile phones and lot more. (et store deals in some of theworlds most popular !rands like8

+hirlpool

'elvinator

9rg

)lectrolu

9nida

&ansui

hilips

'enstar

Videocon 6 Home %rand7

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()*" currently operates over ::0 showrooms 6;/0 3939 stores 63ompany owned7 and . In the coming three years, ()*" is planning to epand and open around ;000

showrooms throughout the country and estimated turnover is around #s. :000 crores.

erformance of ()*" has increased tremendously, this can !e seen from their turnover !eing

dou!le in the current financial year. &hort term plan is to esta!lish ?00 stores in net year and

achieve an additional turnover of #s. /:00 crores.

(et stores are segmented into different regions, across /: states of India. $ifferent locations

may have different prices for the same product 6specific model7 !ased on the geography. "hus

the offline prices may differ store to store whereas the online prices are same for all the regions

throughout India. oreover there is no inventory integration at store and online level. %oth the

channels maintain their separate inventory and distri!ution. )commerce division does it in their

warehouse whereas the inventory management at store is done in the respective stores.

How motivated is the staff to promote sales@ +hat are the current incentives they are

receiving@ How is the store target divided@

roduct i

+hat were the reasons !ehind failure A closing down of multiple ()*" stores@

ricing- How the prices should !e decided for !oth online and offline channels.

Inventory planning B (o information availa!le to the offline store a!out the

approimate num!er of orders to !e received from the online team.

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"he (#6 (et #etail rice7 is updated even after the purchase of the inventory

which at times !ecome higher than the 6 aimum #etail rice7

opular !rands are not availa!le B (o Voltas, &ony, $aiken or &amsung.

3.4.2 NEXT Jail Road

"he &'C names for the same product are different under !oth the accounts which

further complicates inquiring the availa!le inventory. In order to tackle the price

difference !etween !oth the channels what company does is provide a different &'C

name to the same product availa!le online and offline. &o whenever a customer visits

a store and inquire a!out the price difference, sales representative tries to convince

him with different &'C name.

&chemes and free!ies on offer at the online and "ele platform are not availa!le at the

store when the customer asks for it. "here have !een instances where online

promotional schemes have not !een properly communicated to the retail stores. "his

creates a lot of confusion. In an eample there was a promotional offer for cross sales,

where a customer who !uys online gets a free discount coupon which can !e availed

at the offline store. "his was not communicated to the offline team properly !ecause

of which there was a lot of confusion and the scheme had to !e closed on immediate

!asis.

(o fied margin sharing model. +henever a stock is transferred from offline to

online inventory, it is still considered as an online sale and store does not even get a

margin out of it ecept for the amount that they have spent, that to on a yearly !asis.

&o all their initial investment and work on the proDect gets wasted.

"he pricing for products !eing sold from the store inventory is not done in

consultation with them which at times have also lead to selling of the product at a

loss. 9nline prices are generally lower than the store prices. &o In case of stock

transfer when an online sale is made its cost is lower than the actual !uying cost of

the item. 4s !oth the online and offline channels have their separate vendors.

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3.4.3 NEXT Paschim Vihar

"here is no way for the store staff to check the online inventory which forces them to take

!lind orders many of which have to !e cancelled later. &tore staff is uncertain of the

availa!ility of the online inventory. &o this leads to pro!lems sometimes. 5or instance inthe aschim Vihar store, once they received a corporate contract for a firm where they

had to sell 1: "Vs which was availa!le In there warehouse !ut simultaneously online

stock transfer of ;0 "Vs took place, which lead to the delay in delivery of their order.

In case of limited inventory, there is no way to decide whether store or online customer is

to !e given priority. 5or instance a customer selected a product of which only ; item was

availa!le in store. %efore the customer ordered there was stock transfer !y online team

and it was a dilemma for the store manager who should !e given the priority.

$elay in delivery of online orders taken !y the stores leads to the customer coming to the

store and complaining. 3ustomer care services for !oth the channels work separately.

$ue to this ="he 'ing =, the customer has to suffer.

3.4.4 NEXT Burari

"he difference in product portfolio leads to the customer asking for products at the store

which are not availa!le with them.

4ll the catalogs and newspaper ads invite the customer to the nearest ()*" store which

actually dont even have the product.

"he stores are directed to keep the "ele shopping channel 9( in the panels which are

actually selling the same product at cheaper prices thus affecting the store sales.

#esponsi!ility for deliveries of online sales could !e given to the stores in that area whichwould help reduce logistics cost.

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Retail i!

4 well planned and integrated retail mi will provide a focused position in the marketplace anddifferentiate your retail esta!lishment from that of your defined competition. "he key element6s7

of your proposed competitive advantage should guide you in the design of your retail mi.

"tore #ocation)plain your location strategy. $o you propose locating in a free-standing !uilding, a downtown!usiness setting, or a planned shopping environment and why@ +hat specific site have you

selected and what is its EfitE relative to the trading area you intend to serve@ 5ollow this up with a

trading area analysis showing the num!er of target customers residing within the EdrawE of yourfacility.

"tore $%erations+hat are your epected hours of operations@ How many employees do you anticipate needing to

serve you customers adequately@ 4n outline of your proposed organi2ational structure and a

general description of the duties and responsi!ilities of employees will !e helpful. %e sure toinclude a typical weekly work schedule. lanned credit policies and amenities or service

dimensions should likewise !e discussed in this su!section.

erchandisin&+hat goods andFor services do you propose to offer@ $iscuss the general level of quality of the

goods you will carry, the depth and !readth of your offering 6num!er of "'(s7 as well as the

stock levels, epected inventory turnover, re-order policy, and anticipated vendor relationships.

Pricin&

+hat !asic pricing strategy do you propose to implement@ %ased on your investigation, what isyour anticipated cost-of-goods sold, on average@ )plain your markup strategy and its impact on

retail price. Here, !e sure to calculate your markup percentage !ased on retail price rather that

costs to !e consistent with the data provided in your upcoming pro forma statements.

"tore Ima&e$evelop a schematic of your proposed store layout and descri!e, generally, the atmospherics youplan to employ. 4lso, remem!er that the name and graphics associated with the store help set the

tone for the image you intend to convey.

Retail PromotionIn developing your promotional strategy, !e sure to consider what EroleE you epect each of the

promotional tools you employ to play in the consumer !uying process. lan to include eamplesof the tools 6advertising, personal selling, pu!licity, andFor sales promotional devices7 you epect

to utili2e and their scheduling. 4 promotional !udget with time schedule should !e developed

reflecting the allocation of dollars across the various elements.

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References

Accenture. (2012). Seamless Inventory Management.

(2012). CROSS-CHANNEL INTEGRATION.Power Retail.

Gallino, S. ; 4ntonio 6/0;17. Integration of Online and Oine !"annels in Retail.

Management Science manuscrit, 2#.

$indal, A. (200%). Clic!" n Mortar# Ac$ieving multi-c$annel integration.&iew'oint.

Oaura, $. (2012). %est &ractices in Cross C$annel Retailing.Oaura.

Online S$oing In'ia ( %uy Online - T)* Mo+ile &$ones* Camera* Re,rigerator* ater

&urier at Ne/t.co.in. (200*). Retrie+ed fro "tt'--www.net.co.in accessedon 1/-0/-201#

AA. (201).A'ating to t$e Multi-c$annel Customer.