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A
ONA STUDY ON MERCHANDISE PLANNING IN A RETAIL STORE
BYVISHAL KUSHWAHA
REG NO: 511128724
Submitted in fulfillment of requirement for the degree of the
Master of Business Administration in marketingOf Sikkim Manipal University, India
(Session:2010-2012)
Under the guidance of submitted by
Mr. Manav Sharma vishal kushwahaDirector & center head MBA semester IV
Submitted at
NORHEN COMPUTERS
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NORTHERN COMPUTERS
16/79-G, CIVIL LINE BEHIND RBI
NEAR CENRA BANK,KANPUR-208001
CENTER CODE-0940
ONA STUDY ON MERCHANDISE PLANNING IN A
RETAIL STOREBY
VISHAL KUSHWAHAREG NO: 511128724
Submitted in fulfillment of requirement for the degree of theMaster of Business Administration in marketing
Of Sikkim Manipal University, India
Sikkim Manipal University of Health,Medical & Technological Science,
Distance Education Wing,Syndicate House, Manipal-576104
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A study on merchandise planning ina retail store
Submitted in fulfillment of requirement for the degree of theMaster of Business Administration in marketing
Of Sikkim Manipal University, India
By
Vishal kushwaha
Sikkim Manipal University of Health,Medical & Technological Science,
Distance Education Wing,Syndicate House, Manipal-576104
EXAMINER S CERTIFICATION
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The project report of Vishal kushwaha A study on merchandise
planning in retail store is approved and is acceptable in quality and
form.
Internal Examiner External Examiner
(manav sharma)
Centre Head
UNIVERSITY STUDY CENTRE CERTIFICATE
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This is to certify that the project report entitled A study on
merchandise planning in retail store submitted in partial
fulfillment of the requirement for the degree of master of Business
Administration in marketing of Sikkim Manipal University of
Health, Medical and Technological Sciences.
Vishal kushwaha has worked under my supervision and guidance and
that no part of this report has been submitted for the award of any
other Degree, Diploma, Fellowship or other similar title or prizes
and that the work has not been published in any journal or
magazines.
VISHAL KUSHWAHA Certified
Regn. No. 511128724 ( Manav sharma)(director & Centre Head)
DECLARATION
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I hereby declare that the project report entitled A study on merchandise
planning in retail store. Submitted in partial fulfillment of the
requirements for the degree Of Master of Business Administration in
marketing to Sikkim Manipal University, India, is my original work and
not submitted for the award of any other degree, diploma, fellowship or any
other similar title or prizes.
PLACE: ( Vishal Kushwaha)
DATE: Reg. NO. 511128724
ACKNOWLEDGEMENT
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I feel it a duty on my part to acknowledge the contribution of the persons.
Who has been Enormously helpful in preparation of this project. No research
endeavor is also exercise. Various Individual, in their own capacities at some
Point or the other contributes in bringing to function the research endeavor.
By acknowledging the guidance, support and assistance I humbly thank
them.
First of all, I express my gratitude for honorable Mr. Manav sharma for his
able guidance at every step of my project work.
I am also thankful to Miss Sarika Upadhyay and other faculty member of
my Institute, who helped me in developing knowledge, which helped me in
completing this project. Last but no least I thankful to my senior and friends
for their help and Co-operation.
PREFACE
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In spite of the theoretical knowledge gained through classroom study, as
person is uncompleted of not subject to practical exposure of real corporate
world and may have to face hurdles, which will be difficult to overcome
without any first hand experience of business.
In this context Research program has been design to make the person aware
of happening of the real business world. The report, entitled A STUDY ON
MERCHANDISE PLANNING IN RETAIL STORE. Has been done by
me at BIG BAZZARoutlets, in Kanpur
This report focus on the Retail Market activities and enlightening the
Problem of Unorganized trading, opportunities in the Retail Market, trends
adopted by the retail market, trend adopted by the retail market, new era of
technologies in Retail Industry operation etc. It is specially design on the
basis Of secondary design on the basis of secondary data as well as Primary
data collected through Questionnaire, Books, Internet, business Magazine
etc. I hope my Research report will be prove fruitful for readers and readers
will find this report useful to boost
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INTRODUCTION TO INDUSTRY
SIZE OF INDIAN RETAIL INDUSTRY
RETAIL HISTORY
RETAIL TNDUSTRY IN INDIA
RETAIL SECTOR GROWTH IN INDIA
CONTRIBUTION OF RETAIL IN INIDIA
CONCLUSION ON RETAIL INDUSTRY
INTRODUCTION TO COMPANY
BIG BAZAAR
MILESTONES
SWOT ANALYSIS
PROJECT OVERVIEW
INTRODUCTION
OBEJECTIVES
MERCHANDISE MANAGEMENT
PROCESESS MERCHANDISE
MERCHANDISING PLANNING IN A RETAIL STORE
STRATEGIC DECISION SUPPORT SYSTEM
METHODOLOGY
PRIMERY DATA
SECONDARY DATA
MERCHANDISE ANALYSIS
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FINDING
CONCLUSION
BIBLOGRAPHY
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Size of Indian retail industry
The size of retail industry in an economy depends on many factors and the
level of consumer spending is the most important among these factors. The
retail sector in India has grown by leaps and bounds in the last five years.
The reason behind this growth has been the synergy of many propellants.
However the growth is not always genuine as there are exaggerations as
well. But these exaggerations also have benefits since they given a feel of
growing competition all around. Secondly the present situation is just a
depiction of nascent stage. The future of the trajectory may not be as steep as
it is now or may be even slope downward. 'What will be the future size of
the retail industry' is the mind boggling question. Another moot point that
will gain importance in due time concerns the future of the unorganized
retail market which constitute a significant proportion of the whole industry.
The retail stores have proved to be a vantage point for the customers. This
implies that the small farmers who used to sell their product in the sabji-
mandis and on roadsides are going to lose a significant market share as they
can't employ the two profit maximizes-economies of scale and economies of
scope.
Retailing in India is one of the pillars of its economy and accounts for 14 to
15 percent of its GDP. The Indian retail market is estimated to be US$ 450
billion and one of the top five retail markets in the world by economic value.India is one of the fastest growing retail market in the world, with 1.2 billion
people.
http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/1000000000_(number)http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/1000000000_(number) -
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India's retailing industry is essentially owner manned small shops. In 2010,
larger format convenience stores and supermarkets accounted for about 4
percent of the industry, and these were present only in large urban centers.
India's retail and logistics industry employs about 40 million Indians (3.3%
of Indian population).
Until 2011, Indian central government denied foreign direct investment
(FDI) in multi-brand retail, forbidding foreign groups from any ownership in
supermarkets, convenience stores or any retail outlets. Even single-brand
retail was limited to 51% ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for
both multi-brand stores and single-brand stores. These market reforms paved
the way for retail innovation and competition with multi-brand retailers such
as Walmart, Carrefourand Tesco, as well single brand majors such as IKEA,
Nike, and Apple. The announcement sparked intense activism, both in
opposition and in support of the reforms. In December 2011, under pressure
from the opposition, Indian government placed the retail reforms on hold till
it reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming
anyone in the world to innovate in Indian retail market with 100%
ownership, but imposed the requirement that the single brand retailer source
30 percent of its goods from India. Indian government continues the hold onretail reforms for multi-brand stores.
In June 2012, IKEA announced it has applied for permission to invest $1.9
billion in India and set up 25 retail stores. Fitch believes that the 30 percent
http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Carrefourhttp://en.wikipedia.org/wiki/Tescohttp://en.wikipedia.org/wiki/IKEAhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Apple_Inc. -
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requirement is likely to significantly delay if not prevent most single brand
majors from Europe, USA and Japan from opening stores and creating
associated jobs in India.
On 14 September 2012, the government of India announced the opening of
FDI in multi-brand retail, subject to approvals by individual states. This
decision has been welcomed by economists and the markets, however has
caused protests and an upheaval in India's central government's political
coalition structure. On 20 September 2012, the Government of India
formally notified the FDI reforms for single and multi brand retail, thereby
making it effective under Indian law.
Country Retail Sector's share in GDP (in %)
India 10
USA 10
China 8
Brazil 6
Retail history
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India has number of departmental stores. Being the seventh largest country
in the world there are lot of companies like Big Bazaar, Shopper's Stop,
Pantaloon, Ezone, Reliance Fresh and Dmart entering into retail.
Small time department stores - or convenience stores as they are better
known in most western countries - are also upcoming. Although these stores
are much bigger in size than a usual-size convenience store in, lets say the
US, they are much smaller than a regular-sized department store. Examples
include Sabka Bazaar, Big Apple, Marks, Spencers and Dailymart
Ramanujam Sridhar
There is untapped, and bigger, potential beyond the new middle-class in this
country. Big Bazaar has recognized this.
Retail history: Big Bazaar made Rs 125 crore in total in a three-day sale
across its outlets. (Above) A file picture of police trying to control the
crowds at a Big Bazaar sale in Hyderabad last year.
In the Sixties, an extremely humorous Tamil film titled Kathalikka
Neramillai rocked Madras. The film, made by a famous director with the
admirable name of Sridhar, had an interesting dialogue which went
something like this: Nagesh in the movie is a guy who is mad about making
films. His two sisters come for a break and he asks them what Tamil film
they had seen recently. "We don't see Tamil pictures, we see only English
pictures," they chorus proudly. To which Nagesh with his usual aplomb
says, "Let my picture come, then all Englishmen will say that we don't see
http://en.wikipedia.org/wiki/Big_Bazaarhttp://en.wikipedia.org/wiki/Shopper's_Stophttp://en.wikipedia.org/wiki/Reliance_Freshhttp://en.wikipedia.org/wiki/Big_Bazaarhttp://en.wikipedia.org/wiki/Shopper's_Stophttp://en.wikipedia.org/wiki/Reliance_Fresh -
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English pictures, we see only Tamil pictures." To which his sisters say,
"Then we will stop seeing films."
More than the humour in the dialogue or the situation, to me it represents a
state of mind that was certainly present then and is perhaps present even
today. And that is a preference for things that are not made within the shores
of this country - be it the language, the food, the clothes and manner of
dressing, the brands and at times the strategy used to sell these brands as
well. Then things changed. India opened up its economy to the rest of the
world and a host of international brands came into the country.
More bit the dust than hit the rooftops - our obsession with `value for money'
and the right price-value equation was the key to success. People wanted
brands but would not pay an arm and a leg to buy them. They would wait for
the annual sale. Brands like Vivek's made the New Year Sales events
customers wait for. Even traditionally dull months like Aadi in Tamil Nadu
were turned into opportunities to sell. Of course, countries such as Malaysia,
Singapore and Dubai had their own version of sales.
Yes, sales are here to stay it seems and brands will continue to milk them
even as they try to ensure that there is no dilution in the brand's value. But
one brand has taken this entire creation of an annual event and in making a
property of it, to the next level. And that is Big Bazaar.
Sabse sasta
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Last year, on January 26, I was in Delhi. And as I went for my early morning
walk braving the cold, I saw something that one does not see often in a
shopping centre. There was a long, winding queue of customers waiting for
Big Bazaar to open. It reminded me of Traumata! The crowds were
unprecedented and at times unmanageable. This year Big Bazaar had
organized it much better. It had a sale for three days. And created retail
history.
Here are a few quick numbers. No less than 60 lakh visitors came to the Big
Bazaars across the length and breadth of this country. The turnover? A
whopping Rs 125 crore. Over one lakh bed sheets were sold. Not to forget
30,000 mobile phones. What staggering numbers!
And yet, it must also be mentioned that every other retail format - Lifestyle,
Globus, Westside - was offering 50 per cent discounts at the same time. It
seems to have had a limited impact on Big Bazaar. Yet, I think it is
worthwhile to go beyond the numbers and look at something equally more
significant.
Sabse achcha
What does the future hold and what must marketers do? At the risk of
repeating myself, I must say that we must move out of our own zones of
comfort. We must continually monitor the consumer and not merely believe
what we want to believe. The media is at best a poor indicator of the changes
that are sweeping the country. We need to get a closer feel for the Indian
consumer.
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Biyani seems to have a great understanding of this emerging superpower.
Take an objective look at costs and ruthlessly shave unwanted cost elements.
Air Deccan's free seating ensures a much quicker turnaround of aircraft. See
if you can create an event that is easily recognizable as yours. An event that
becomes a part of your brand and furthers its success. Yes, India is rising in
expectation and affluence. The uncomfortable question is: "Do we know this
India?"
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Retail industry in india
The Indian retail industry is the fifth largest in the world. Comprising of
organized and unorganized sectors, India retail industry is one of the fastest
growing industries in India, especially over the last few years. Though
initially, the retail industry in India was mostly unorganized, however with
the change of tastes and preferences of the consumers, the industry is getting
more popular these days and getting organized as well. With growing market
demand, the industry is expected to grow at a pace of 25-30% annually. The
India retail industry is expected to grow from ` 35,000 crore in 2004-05 to `
109,000 crore by the year 2010.
In the Indian retailing industry, food is the most dominating sector and is
growing at a rate of 9% annually. The branded food industry is trying to
enter the India retail industry and convert Indian consumers to branded food.Since at present 60% of the Indian grocery basket consists of non- branded
items.
Growth of Indian Retail
It is expected that by 2016 modern retail industry in India will be worth US$
175- 200 billion. India retail industry is one of the fastest growing industries
with revenue expected in 2007 to amount US$ 320 billion and is increasing
at a rate of 5% yearly. A further increase of 7-8% is expected in the industry
of retail in India by growth in consumerism in urban areas, rising incomes,
and a steep rise in rural consumption. It has further been predicted that the
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retailing industry in India will amount to US$ 21.5 billion by 2010 from the
current size of US$ 7.5 billion.
According to the 8th Annual Global Retail Development Index (GRDI) of
AT Kearney, India retail industry is the most promising emerging market for
investment. In 2007, the retail trade in India had a share of 8-10% in the
GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is
also expected to reach 22% by 2010.
According to a report by Northbride Capita, the India retail industry is
expected to grow to US$ 700 billion by 2010. By the same time, theorganized sector will be 20% of the total market share. It can be mentioned
here that, the share of organized sector in 2007 was 7.5% of the total retail
market.
Major Retailers in India
Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores
across the country. Headquartered in Mumbai, it has more than 5 million sq.
ft retail space located across the country. It's growing at an enviable pace
and is expected to reach 30 million sq. ft by the year 2010. In 2001,
Pantaloon launched country's first hypermarket Big Bazaar. It has the
following retail segments:
Food & Grocery: Big Bazaar, Food Bazaar
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Home Solutions: Hometown, Furniture Bazaar, Collection-i
Consumer Electronics: e-zone
Shoes: Shoe Factory
Books, Music & Gifts: Depot
Health & Beauty Care: Star, Sitara
E-tailing: Futurebazaar.com
Entertainment: Bowling Co.
Tata Group
Tata group is another major player in Indian retail industry with its
subsidiary Trent, which operates Westside and Star India Bazaar.
Established in 1998, it also acquired the largest book and music retailer in
India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across
the country.
RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it
came into food & grocery retailing in 1996 with its retail Foodworld stores.
Later it also opened the pharmacy and beauty care outlets Health & Glow.
Reliance
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Reliance is one of the biggest players in Indian retail industry. More than
300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian
retail market. It's expecting its sales to reach ` 90,000 crores by 2010.
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands
like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite
popular. It's also investing in other segments of retail. It will invest ` 8000-
9000 crores by 2010.
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.
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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 couple of examples.
Challenges facing Indian retail industry
The tax structure in India favors small retail business
Lack of adequate infrastructure facilities
High cost of real estate
Dissimilarity in consumer groups
Restrictions in Foreign Direct Investment
Shortage of retail study options
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Shortage of trained manpower
Low retail management skill
The Future
The retail industry in India is currently growing at a great pace and is
expected to go up to US$ 833 billion by the year 2013. It is further expected
to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the
country has got a high growth rates, the consumer spending has also gone up
and is also expected to go up further in the future. In the last four year, theconsumer spending in India climbed up to 75%. As a result, the India retail
industry is expected to grow further in the future days. By the year 2013, the
organized sector is also expected to grow at a CAGR of 40%.
India retail industry is progressing well and for this to continue retailers as
well as the Indian government will have to make a combined effort.
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In 2011, food accounted for 70% of Indian retail, but was under-represented
by organized retail. A.T. Kearney estimates India's organized retail had a
31% share in clothing and apparel, while the home supplies retail was
growing between 20% to 30% per year. ]These data correspond to retail
prospects prior to November announcement of the retail reform. The Indian
market offers endless possibilities for investors.]
It might be true that India has the largest number of shops per inhabitant.
However we (locatus) have detailed figures for Belgium, the Netherlands
and Luxemburg. In Belgium, the number of outlets is approximately 8 per
1,000 and in the Netherlands it is 6. So the Indian number must be far
higher.
Retail industry can be classified into two broad categories organized retail
and unorganized retail.
1. Organised retail - Those traders/retailers who are licensed for trading
activities and registered to pay taxes to the government.
2. Unorganised retail It consists of unauthorized small shops -
conventional Kirana shops, general stores, corner shops among
various other small retail outlets - but remain to be the radiating force
of Indian retail industry.
http://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Retailing_in_India#cite_note-29http://en.wikipedia.org/wiki/A.T._Kearneyhttp://en.wikipedia.org/wiki/Retailing_in_India#cite_note-29 -
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Overview
Retail industry, being the fifth largest in the world, is one of the sunrise
sectors with huge growth potential and accounts for 14-15% of the countrys
GDP. Comprising of organized and unorganized sectors, Indian retail
industry is one of the fastest growing industries in India, especially over the
last few years.
According to the Global Retail Development Index 2012, India ranks fifth
among the top 30 emerging markets for retail. The recent announcement by
the Indian government with Foreign Direct Investment (FDI) in retail,especially allowing 100% FDI in single brands and multi-brand FDI has
created positive sentiments in the retail sector.
Emerging Areas
Some sectors that occupy a prominent position with the retail industry are:
Apparel Retail: Everybody understands the impact of fashion and textiles
on the environment. Almost $19.5 billion were spent on online apparel
shopping in the year 2009 and increasing since then.
Fashion & Lifestyle Retail: In India the vast middle class and its almost
untapped retail industry are the key attractive forces for global retail giants
wanting to enter into newer markets, which in turn will help the retail to
grow faster.
Food & Beverage Retail: Backed by huge potential and changing lifestyles,
the food and beverage retail market is growing at a robust 30-35 per cent per
year.
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Pharmaceutical Retail: Driven by therapies like anti-diabetic, vitamin,
anti-infectives and dermatology, it accounted for a robust 15% growth in
2011.
E-commerce or E-tailing the next big revolution: With the advent of e-
commerce in the retail industry, retail stores are facing stiff competition
from e-stores. The rising demand for e-shopping has lead to a new debate
cropping up in the world.
Factors driving growth are:
Emergence of nuclear families
Falling real estate prices
Growing trend of double-income households
Increase in disposable income and customer aspiration
Increase in expenditure for luxury items
Large working population
Low share of organized retailing
Growing liberalization of the FDI policy in the past decade
Skill sets required are:
The industry employs a staggering number of people, and given its rapid
proliferation, this number is always on the rise. The backbone of the sector
are the operations and supply chain management jobs but there are various
other options as well, from sales executives and store managers to
merchandise planners and buyers.
Conceptual understanding
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Analytical skills
Detail-orientation
Fair understanding of customers psychology
Observations skills
Project Management
Operational Skills
In-depth product knowledge
Bottlenecks
A long way to meet international standards Lack of efficient supply-chain management
Lack of required retail space
No fixed consumption pattern
Shortage of trained manpower
Lack of proper infrastructure and distribution channels
Ratings agency Fitch has assigned a stable outlook to the retail sector for
2012 as factors like expected sales, growth-driven expansion and efficient
working capital management are likely to benefit retail companies.
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Indian retail sector to double in 5 years
Yet due to a growth in the retail market,
neighbourhood kirana to remain unimpacted.
Retailers focus more on opening stores rather and
ignore sourcing and supply chain and the
aspirations of each consumer segment.
Due to the rapid growth of the retail sector in India since the 1990s, the
future of the $372 billion retail industry is set to double in just five years
according to management consultancy Technopak.
And yet, Purnendu Kumar of Technopak says, that with retail market
growing at a fast pace, modern retail alone wont be able to cater to the
growing needs of the consumer. Currently, India has more than 12 million
kiranas growing at 5-6% annually. Thus according to the study
Neighbourhood kiranas are not likely to be impacted by the rise of the
modern retail.
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As incomes increase, Indians are likely to spend more. The expenditure on
food and groceries has declined consistently from 40% in 2003 to 36% in
2008. In 2013 this could further decrease to 32%. The expenditure on eating
out, entertainment, and tourism is on the rise, Purnendu Kumar of
Technopak said.
In India modern retail, still considered in its nascent stages, has had
difficulty in working out a format for the consumer. Retailers focused more
on opening stores rather and ignored sourcing and supply chain and the
aspirations of each consumer segment, Kumar added.
Those who focused on the front-end were in trouble as they werent driven
by profitability but by the number of stores they could open.
Many retailers expanded rapidly without the right amount of capital in place.
It takes 2-3 years for one store to break even and 6-7 years for the business
to break even, says Kumar.
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Contribution of Indian Retail Industry
Contribution of Retail:
Contribution of Retail:
What, How and In this report we have analyzed in detail the retail industry
in India. We had initially started with the evolution of the retail sector in
India, then moved onto its size, distribution and the growth of the retail
sector. We have also covered issues like the Foreign Direct Investment in the
retail sector, the untapped opportunities that exist in the retail industry in
India. We have also discussed about the bottlenecks that the retail industry is
facing in India, online retailing in India and the role of Information
Technology in the retail sector in India.
Major Findings
1. The Retail Sector in India can be split up into two, the organised and theunorganized. The organized sector whose size is expected to triple by 2010
can be further split up into departmental stores, supermarkets, shopping
malls etc.
2. In terms of value the size of the retail sector in India is $300 billion. The
organised sector contributes about 4.6% to the total trade.
3. The retail sector in India contributes 10% to the Gross Domestic Product
and 8% to the employment of the country.
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4. In terms of growth the FMCG retail sector is the fastest growing unit and
the retail relating to household care, confectionery etc, have lagged behind .
5. The foreign retail giants were initially restricted from making investments
in India. But now FDI of 51% is permitted in India only through single
branded retail outlets. Multi brand outlets are still beyond their reach. Again
they can only enter the market through franchisees,. This was how Wal-Mart
had entered joining hands with Bharati Enterprises.
6. On line retailing is still to leave a mark on the customers due to lacunae
that we have already mentioned.
In this section we have coined down the major findings of our research.
Major Findings
1. The Retail Sector in India can be split up into two, the organised and the
unorganized. The organized sector whose size is expected to triple by 2010
can be further split up into departmental stores, supermarkets, shopping
malls etc.
2. In terms of value the size of the retail sector in India is $300 billion. The
organised sector contributes about 4.6% to the total trade.
3. The retail sector in India contributes 10% to the Gross Domestic Product
and 8% to the employment of the country.
4. In terms of growth the FMCG retail sector is the fastest growing unit and
the retail relating to household care, confectionery etc, have lagged behind .
5. The foreign retail giants were initially restricted from making investments
in India. But now FDI of 51% is permitted in India only through single
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branded retail outlets. Multi brand outlets are still beyond their reach. Again
they can only enter the market through franchisees,. This was how Wal-Mart
had entered joining hands with Bharati Enterprises.
6. On line retailing is still to leave a mark on the customers due to lacunae
that we have already mentioned.
Indian Retail: Past Vs Present
It is widely accepted that the retail industry has undergone a drastic change
in last five years and there is yet more to come. Let us compare the image of
Indian retailing in 2004-05 to that of its status in 2007-08 in the followingtable:
Magnification of the Indian Retail Industry Yardstick Situation in 04-
05 Situation 07-08
Value of retail sales
Rs. 10,20,000 crore
Rs 12,00,000 crore
Annual growth rate
5%
5.7%
Value of organized market
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Rs 35,000 crore
Rs 55,000 crore
Share of organized market in the sector
3.4%
4.6%
Forecasts (after 5 years) about size of organized retail market
Over Rs. 1,00,000 crore
Rs. 2,00,000 crore
Forecasts about growth rate of organized retail market
Around 30%
Around 40%
The above table clearly shows that the retail market as well as the mindset
required for it has experienced a thorough revisal in the last three years. This
is just the beginning and Indians are sanguine that the sector will see rosy
days in the future. This confidence has helped India acquire the No.1
position among 30 most attractive retailing destinations in the world
according to the Global Retail Development Index of 2005 (by AT Kearney,
India). Among emerging markets, India holds the second position after
China in the list of most favored retail destinations.
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The retail industry employs a huge share of the total workforce in India. It is
the second largest employer after India. Presently 7 percent of the total labor
force is employed in the retail sector. According to available data it is also
the largest employer in the services sector and maximum growth in the non-
agricultural sector has been witnessed by retail trade. According to market
analysts 300 new malls, 1,500 supermarkets and 325 departmental stores are
going to come up in India in the next few days. The shopping revolution that
has led to this retail boom is going to continue and this is a good news for
the government as well as those who wish to work in the organized sector.
Contribution of FDI in Retailing
Permitting Foreign Direct Investment in the retailing sector can have
immense benefits. It can generate huge employment for the semi-skilled as
well as illiterate population which otherwise can't be employed in the
already confined rural and organized sector. The retail sector is highly
dependent on the rural sector. Thus it can facilitate the improvement of the
standard of living of farmers by purchasing commodities at a reasonable
cost. It also stems out an indirect employment generation channel by training
and employing people in the transportation and distribution sectors such as
drivers, mechanics etc. It is also evident that real estate is a genuine
challenge for organized retailing. Traditional retailers can use this situation
in their favor by taking franchisees of the mega players of this industry. On
the other hand, the consumer gains from the wide variety of choices and a
more diversified basket of prices available under one roof. Secondly the
indirect benefits like better roads, online marketing, expansion of telecom
sector etc. will give a 'big push' to other sectors including the rural one itself.
Last but not the least the huge tax revenue generated from these retail
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biggies and collected in government coffers will gradually wipe out the ugly
looking fiscal and revenue deficits. Besides the transaction in foreign
currencies by these MNCs will create a balance in exchange rate and will
bring in stable funds in the economy as opposed to FII's hot money. This
will in turn act as a boost to the developing (or 'transforming', as suggested
by the USAID) economy of India.
The phobias relating to FDI in the retail sector are unfounded as neither the
retailing sector in India is an infant industry, nor it can outweigh the
paramount local tastes and preferences.
Let's pray that the retail sector like the IT and manufacturing sector brings
happiness in the eyes of the people and help remove the regional and class-
based disparities.
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Conclusion on retail industry in India
What, how and In this report we have analyzed in detail the retail industry in
India. We had initially started with the evolution of the retail sector in India,
then moved onto its size, distribution and the growth of the retail sector. We
have also covered issues like the Foreign Direct Investment in the retail
sector, the untapped opportunities that exist in the retail industry in India.
We have also discussed about the bottlenecks that the retail industry is
facing in India, online retailing in India and the role of Information
Technology in the retail sector in India.
In this section we have coined down the major findings of our research.
Major Findings
(1). The Retail Sector in India can be split up into two, the organised and the
unorganized. The organized sector whose size is expected to triple by 2010
can be further split up into departmental stores, supermarkets, shopping
malls etc.
(2). In terms of value the size of the retail sector in India is $300 billion. The
organised sector contributes about 4.6% to the total trade.
(3). The retail sector in India contributes 10% to the Gross Domestic Product
and 8% to the employment of the country.
(4). In terms of growth the FMCG retail sector is the fastest growing unit
and the retail relating to household care, confectionery etc, have lagged
behind .
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(5). The foreign retail giants were initially restricted from making
investments in India. But now FDI of 51% is permitted in India only through
single branded retail outlets. Multi brand outlets are still beyond their reach.
Again they can only enter the market through franchisees,. This was how
Wal-Mart had entered joining hands with Bharati Enterprises.
(6). On line retailing is still to leave a mark on the customers due to lacunae
that we have already mentioned.
In a nutshell we may conclude that the retail industry in India has a very
bright future prospect. It is expected to enrich the Indian Economy in terms
of income and employment generation.
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Type Public
Industry Retailing
Founded 2001
Headquarters Mumbai, Maharashtra, India
Products Department store
Revenue
Rs 6000 crores (in 2011) (Big
Bazaar and Food Bazaar
combined)
Employees ~ 36000 people [1]
Parent Future Group
Divisions ~ 214
Website [http://www.bigbazaar.com
Big Bazaar is a chain ofhypermarket in India. As of June 2, 2012 there are
214 stores across 90 cities and towns in India covering around 16 million
sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars
or Indian markets with clusters offering a wide range of merchandise
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including fashion and apparels, food products, general merchandise,
furniture, electronics, books, fast food and leisure and entertainment
sections.
Big Bazaar is part of Future Group, which also owns the Central
Hypermarket, Brand Factory, Pantaloons, eZONE, HomeTown,
futurebazaar.com, KB's Fair Price to name a few and is owned through a
wholly owned subsidiary of Pantaloon Retail India Limited (BSE: 523574
523574), that is listed on Indian stock exchanges.
History
Big Bazaar was launched in September, 2001 with the opening of its first
four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within
a span of ten years, there are now 161 Big Bazaar stores in 90 cities and
towns across India. By September 2012 BIG BAZAAR will have two more
stores in North east namely SILCHAR and JORHAT in Assam.
Big Bazaar was started by Kishore Biyani, the Group CEO and Managing
Director ofPantaloon Retail India. Though Big Bazaar was launched purely
as a fashion format including apparel, cosmetics, accessory and general
merchandise, over the years Big Bazaar has included a wide range of
products and service offerings under their retail chain. The current formats
includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.
The inspiration behind this entire retail format was from Saravana Stores, a
local store in T. Nagar, Chennai
The stores are customized to provide the feel of mandis and melas. [ while
offering the modern retail features like Quality, Choice and Convenience. As
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the modern Indian family's favorite retail store, Big Bazaar is popularly
known as the "Indian Walmart".
On successful completion of ten years in Indian retail industry, in 2011, Big
Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar,
replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.
Operations
The Big Bazaar Store in Nagpur.
Most Big Bazaar stores are multi-level and are located in stand-alone
buildings in city centers as well as within shopping malls. These stores offer
over 200,000 SKUs in a wide range of categories led primarily by fashion
and food products.
Food Bazaar, a supermarket format was incorporated within Big Bazaar in
2002 and is now present within every Big Bazaar as well as in independent
locations. A typical Big Bazaar is spread across around 50,000 square feet
(4,600 m2) of retail space. While the larger metropolises have Big Bazaar
Family centres measuring between 75,000 square feet (7,000 m2) and
160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns
measure around 30,000 square feet (2,800 m2).
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Big Bazaar has the facility to purchase products online through its official
web page, and offers free shipping on some of their products
MILESTONES
It has been a remarkable journey for Future Group as its evolved ram a
manufacturing to
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a completely integrates player controlling the entire value chain.
During its evolution the company achieved various milestone and
demonstrated
Innovativeness and leadership by pioneering concept that has now become
industry
Standards. Some of the major milestone achieved by the company in its life
span of
14 year is enumerated below.
1987: Company incorporates as Manz Wear Private Limited. Launch of
Pantaloon
Trouser,
Indias first formal trouser brand.
1991: Launch of BARE, the Indian jeans brand.
1992: Initial public offer (IPO) was made in the month of May.
1994: The PANTALOON SHOPPE- Exclusive menswear store in franchisee
format
Launcher.
Across the nation. The company starts the distribution of branded garments
through multi-Brand
Retail outlets across the nation.
1995: John Miller Formal shirt brand launched.
1997: Pantaloons Indias family store launched in Kolkata.
2001: Big Bazaar Is se sasta aur accha kahi nahin-Indias first
hypermarket chain
launched.
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Three Big Bazaar stores launched within a span of 22 days in Kolkata,
Bangalore and Hyderabad
2002: Food Bazaar Wholesale prices the supermarket chain is launched.
Big Bazaar - ICICI Bank Card is launched.
Food Bazaar becomes part of Big Bazaar with the launch of the first
store in Mumbai at High Street Phoe
2003
Big Bazaar enters Tier II cities with the launch of the store in Nagpur
Big Bazaar welcomes its 10 million-th customer at its new store in
Gurgaon
2004: Central Shop Eat Celebrate in the heart of our city-Indias first
seamless mall is
launched in Bangalore.
Big Bazaar wins its first award and national recognition. Big Bazaar
and Food Bazaar awarded the countrys most admired retailer award
in value retailing and food retailing segment at the India Retail Forum
A day before Diwali, the store at Lower Parel becomes the first to
touch Rs 10 million turnover on a single day
2005: Fashion Station Fashion Ka Big Bazaar-the popular fashion chain
is launched.
Initiates the implementation of SAP and pilots a RFID project at its
central warehouse in Tarapur
Launches a unique shopping program: the Big Bazaar Exchange
Offer, inviting customers to exchange household junk at Big Bazaar
Electronic Bazaar and Furniture Bazaar are launched
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Big Bazaar and ICICI Bank launched ICICI Bank-Big Bazaar Gold
credit card program to reward its loyal customers.
2006 Future Capital Holding, the companys financial arm launched real
estate fund
Kshitij and Horizon and private equity fund Indivision.
Mohan Jadhav sets a national record at Big Bazaar Sangli with a Rs
1,37,367 shopping bill. The Sangli farmer becomes Big Bazaars
largest ever customer.
Big Bazaar launches Shakti, Indias first credit card program tailored
for housewives
Navaras the jewellery store launched within Big Bazaar stores
2007
The 50th Big Bazaar store is launched in Kanpur
Big Bazaar partners with Futurebazaar.com to launch India's most
popular shopping portal
Big Bazaar initiates the "Power of One" campaign to help raise funds
for the Save The Children India Fund
Pantaloon Retail wins the International Retailer of the Year at US-
based National Retail Federation convention in New York and
Emerging Retailer of the Year award at the World Retail Congress
held in Barcelona.
2008
Big Bazaar becomes the fastest growing hypermarket format in the
world with the launch of its 101st store within 7 years of launch
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Big Bazaar dons a new look with a fresh new section, Fashion@Big
Bazaar
Big Bazaar joins the league of Indias Business Super brands. It is
voted among the top ten service brands in the country in the latest
Pitch-IMRB international survey
Big Bazaar initiated the Mega Saving "Monthly Bachat Bazaar"
campaign, to provide exceptional deals on groceries and food items
during the first week of every month.
2009
Big Bazaar opens its second store in Assam at Tinsukia
Big Bazaar initiates Maha Annasantarpane program at its stores in
South India a unique initiative to offer meals to visitors and support
local social organizations
Big Bazaar captures almost one-third share in food and grocery
products sold through modern retail in India
Mahendra Singh Dhoni and Asin, youth icons of India, were chosen
as the brand ambassadors of Big Bazaar
Big Bazaar announced the launch of 'The Great Exchange Offer'
Formed a joint venture with Hidesign to launch Holii, a new brand of
handbags, laptop bags and other accessories.
2010
Future Value Retail Limited is formed as a specialized subsidiary to
spearhead the groups value retail business through Big Bazaar, Food
Bazaar and other formats.
Big Bazaar wins CNBC Awaaz Consumer Awards for the third
consecutive year. Adjudged the Most Preferred Multi Brand Food &
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Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most
Preferred Multi Brand One Stop Shop
Big Bazaar connects over 30,000 small and medium Indian
manufacturers and entrepreneurs with around 200 million customers
visiting its stores
Big Bazaar opens its third store in Kanpurat Z Square Mall
Big Bazaar opens its fourth store in Kanpur at Jajmau which is the
largest leather tannery garrison of Asia
Vidya Balan was chosen as the brand ambassador of Big Bazaar's
Price Challenge exercise
Ranked 6 among the Top 50 Service Brands in India.[10]
2011
Big Bazaar forays into the rural wholesale and distribution business
through Aadhaar Wholesale store at Kalol, Gujarat.
Big Bazaar has come up a new logo with a new tag line: Naye India
Ka Bazaar.[11]
200th store opened in India [12]
Future Group has launched its latest venture, Foodhall a premium
food destination across 10 metros in India [13]
For the convenience of the online customers, Big Bazaar has started
free shipping on all orders above Rs. 1000 [14]
Entered into an agreement with Hindustan Unileverto co-develop and
co-brand bakery products, which would be sold exclusively at Big
Bazaar stores.[15]
2012
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Big Bazaar entered into a five year multi-million dollar deal with
Cognizant Technology Solutions for IT infrastructure services that
support Future Group's network of stores, warehouses, offices, and
data centers.[16]
Partnered with Disney to launch "Kidz Cookies", exclusively for kids
across India.[17]
Big Bazaar is planning to add further value to its retail services by
offering Value added services like grinding, de-seeding, vegetables
cutting at free of cost
Big Bazaar
Parent Company Future Group
Category Retail
Sector Lifestyle and retail
Tagline/ Slogan Is se sasta aur accha kahi nahi!
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USP Affordable lifestyle
STP
Segment Price sensitive group
Target Group Upper middle class and lower middle class
Positioning Family favourite retail store
SWOT Analysis
Strength
1. Affordability for middle class2. Quality,choice and convenience3. Wide range of products and service offerings4. Strong presence in local market
5. Attractive promotional offers
6. Large no. SKU provided to consumer
7. Good branding and advertising by also roping in celebrity brand
ambassadors
Weakness
1. Not known globally and restricted to the Indian market only2.No different game plan according to divergent people, theirlifestyles, their tastes and budgets in India
Opportunity
1. To expand globally by tie-ups2. Entering into high premium segment3.Opportunity to expand into financial services catering to hugesegment
4. Increased rural penetration
Threats
1.Competitors global presence2. Future bazaar under debt can cause financial problems3.Low priced brand perceived to be of low quality in Indianconsumer minds
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Competition
Competitors
1. Reliance retail2. Lifestyle Retail
3.Aditya Birla More
4. Shoppers stops
Foreign investment will play a bigger role in retailing
The opening of the retail sector to foreign direct investment (FDI) a policy change that
would alter radically the face of the Indian economy - is happening slowly. Since
February 2005 the government has taken several liberalizing step, but it continues to
disallow FDI by retailers of multiple brand, keeping out the big hypermarket groups and
discounters .this is a carefully crafted decision designed to cause minimum political
damage domestically, while showing foreign investors that liberalization remains on
track. Foreign firms will continue to lobby for liberalization and have cited the restriction
on FDI as a factor limiting future growth .Their options should multiply as food imports
are liberalized and import duties come down. The government will also need to reform
real-estate laws are restructure tax regimes further if it is to attract international retailers.
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Developing and implementing a merchandise plan is a key in a retail
strategy. to succeed, a firm must have the proper assortment of good and
services when they are in demand and sell them in a manner consistent with
its overall strategy . Merchandising consists of the activates involved inacquiring particular good and/ or services and making them available at
place, time, and prices and in the quantity that enable a retailer to reach its
goals.
For virtually, merchandising decision dramatically affect performance: why
Do investment in merchandise skills and talent often produce better returns
then investment in technology or other skill specialties? In retailing
organization, merchandisers in a critical role because they are responsible
for bringing to market the products that will excite and please target
consumers. Rarely is there a situation, as with retail merchandising, where
so few individuals drive so many decisions and outcomes. A small fraction
of the employ population control as much as 70 to 80% of a firms density.
Retailed may be called on to place multi million$ bet at time, even 100
million or billion$ wagers
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The merchandise philosophy is a reflection of the retailers target market,
which is nothing but the customer segment that he wishes to cater to.
Keeping this target market in mind, the retailer has to evolve a strategy for
store location, pricing and the product assortment that he is going to offer to
the customer.
The field of merchandising has evolved over the years, in lines with the
changes occurring in retail. The enlightened and knowledgeable consumer
seeks product that suit his requirements, and is most often, willing to pay the
required price. Products have also evolved to suit the lifestyles of the
customer.
The success of any retail operation in largely based on the retailers ability to
provide the right goods to the consumer at the right place and at the right
time. It is for this reason that the function of merchandising plays a key role
in retail management.
When you study merchandising in the technical or overall context of retail
management, you learn about assortment planning and many other aspects ofmerchandising activity that go into planning and implementing merchandise-
based decisions.
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. Recognize the key differences between merchandise as products, and
merchandise as a visual appeal aspect of retail execution.
. Describe merchandise as an activity.
. Explain visual appeal and packaging concepts.
. Explain what market presence means.
. Elaborate on the key aspects of market presence in modern retail.
. Explain the six features of in-store merchandising.
. Bring out the importance of store atmospherics.
. Mention the components of store exterior atmospherics.
. Describe store interior atmospherics and its components.
. List out the various elements of in-store mood builders.
. Describe merchandise planning elements.
. Explain how merchandise strategy is development.
. Explain the concept of category Management.
. Describe the overall approach to merchandise planning in retail.
. Explain the merchandise planning execution process.
. Describe the role of merchandise and buyer.
. Explain how merchandise performance is measured.
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A situation where the flow of data between activities is
not accompanied by the flow of control. A Connector
drawn with a dotted line with a Phi between activities
represents Data Flow Only. A Phi is required for Data
FloProcess: Merchandise management
Flow.
Objective
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Create, load, and manage the set of products for businesses to operate
online stores.
Description
Businesses need to manage a catalog over its life cycle and consider
the following elements:
Catalog design
Design the catalog structure or taxonomy for which to describe
and enter products in the catalog.
Catalog load
Load the product information, either manually or using
automation, into the catalog based on the defined taxonomy.
Merchandising
Add merchandising constructs such as associations, kits, guided
sales techniques, and sales catalogs, to promote the sale of
products to the customer.
Catalog maintenance
Product management will continue to evolve the catalog. New
products are introduced, old, obsolete products are discontinued,
product information is often revised, and prices from suppliers
may change frequently. Catalog maintenance may involve the
first three steps as product additions and deletions may cause
the catalog to be redesigned and loaded again.
Catalog syndication
Businesses may publish the catalog or a subset of the catalog
externally to third parties or onto other media.
Online sales catalog
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The catalog containing product content and business logic to
display products and categories to customers. This includes
associating display pages and assigning prices to the products.
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Replacement: A relationship between a products meant to
replace an existing product. A new product will replace one
that is being discontinued.
Shopping metaphors to provide assistance to customers
in selecting their products from the catalog. Web Sphere
Commerce supports three different paradigms
Product Exploration: A parametric search within a category
where possible ranges of values for attributes of SKUs are
selected by the customer in order to reduce the list of
products to display.
Product Comparison: A view of multiple selected SKUs in a
form such that the values of each attribute are displayed for
comparison.
Sales Assistant: A guided sell approach in which a list of SKUs
are returned based on the customers answers to a set of
presented questions.
Features
Nested shopping metaphors in which a Sales Assistant or Product
Exploration can be displayed with the Product Comparison
metaphor.
Sequencing merchandising associations between source andtarget products or categories.
Specify associations with quantities of the target.
Customization
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Extendible merchandising associations for other type of
associations, such as Down-sell, Alternative, Substitute. A new
type can be introduced to the database and data beans.
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Accepted order list
A list of orders that have been submitted and have payment
information created. They may or may not have a payment
authorization at this point.
Active auto bid
The auto bid (automatic bid) is active and will create bid for an
Open Cry auction on behalf of customer.
Active bid
The bid is active.
Active contract
An active contract is one that was deployed successfully and
purchases can be made against the contract. If the expiry date
for a contract has passed, the contract still remains in the active
state until it is canceled. Contracts enable a customer
organization to purchase products from a store or a group of
stores at a specified price for a specified period of time under
specific conditions. Web Sphere Commerce provides the ability
to record and deploy contracts that have been negotiated.
A contract consists of the following elements:
Profile
The contract profile contains the identifying information for the
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contract. This information includes a unique name for the
contract, a short description, and a time period during which the
contract is valid.
Participants
Contract participants are the organizations or member groups
that are entitled to the contract. There is a Buyer participant, a
Seller participant and
contacts for each participant organization.
Terms and conditions
Contract terms and conditions are the rules that cover the actual
implementation of the contract. Contract terms and conditions
cover such information as product pricing, returns and refunds,
payment, shipping, and order approval.
Attachments
Contract attachments cover any information not covered by the
previous elements such as file attachments that provide
additional information about the contract and any general
remarks about the contract. Web Sphere Commerce stores
Universal Resource Identifiers (Uris) for contract attachments,
not the actual attachments.
All contracts are associated with business accounts.
Active RFQ request
The RFQ request has been submitted and the seller can respond
to it.
Active RFQ response
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The RFQ response has been submitted, approved if appropriate,
and is available for evaluation by the buyer. If approvals have
been enabled, the response goes to the approver rather than
directly to the buyer. If the approver approves the response, it is
submitted to the buying organization.
Ad copy
An ad copy represents a set of marketing data to be shown to
customers in an e-mail or in the Web site through an activity.
The data may include the following: image, flash, URL link (click
action), and marketing text (may include HTML tags).
Address book
An address book is a set of addresses of the customer. The
addresses can be used for billing and shipping.
Adjustment code
The adjustment code to be recorded as the reason for the
inventory adjustment. Note: This is not used or required.
Allocated line item(s)
Order line items that have been allocated from existing (in-
stock) inventory.
Allocated order
An order with all its order line items allocated from existing (in-
stock) inventory.
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Answer
Solution to customer's request in plain text format.
Approval pending RFQ response
Approvals have been enabled and an approver is reviewing the
RFQ response.
Approval required notification
A notification by e-mail or some other means to a Sales Manager
that a contract has been submitted for approval and needs to bereviewed.
Approved Buyer
An approved merchant can logon and access the store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved buyer admin
An approved seller can logon and use the supplier store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved Buyer Administrator
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An approved merchant can logon and access the store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved contract
If the designated approvers for the contract decides a contract is
complete and acceptable, they can move the contract into the
approved state. Web Sphere Commerce will automatically
attempt to deploy an approved contract.
Approved Customer
An approved user can logon and shop at the store. See 'Users'
and 'User Registration Approvals' in the online help for more
details.
Approved merchant
An approved merchant can logon and access the store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved order
An order that has been approved by the Buyer Approver.
Approved organization
An approved merchant can logon and access the store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
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Approved payment
A payment that has been approved, which can also be called
"authorized."
Approved registration notification
A notification is sent to the customer when their notification has
been approved. See 'User Registration Approvals' in the online
help for more details.
Approved reseller
An approved merchant can logon and access the store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved Seller
An approved seller can logon and use the supplier store. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved supplier
An approved supplier can logon and access the supplier hub. See
'Users' and 'User Registration Approvals' in the online help for
more details.
Approved user
A user who has been approved to use the store.
Approved User Registration Notification
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An email received by a user indicating that they have been
approved to use the store.
Auction discussion message
Discussion message about the auction. Discussion messages are
posted to a discussion forum. The forum enables auction
administrators to view and respond to messages from
customers. Auction discussion messages can
provide information such as the following: product details,
auction rule details, announcements of future auctions.
Auction started notification
Informs customers who have included this auction in their
gallery that the auction has started.
Auction style template
Auction styles are templates that automatically complete fields
for you. For example, perhaps you schedule Open Cry auctions
and always use non-discriminative pricing. An auction style can
complete the appropriate fields for the auction type and pricing
mechanism, saving you the trouble of selecting these fields for
each auction.
Authorization
A single payment authorization.
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Authorization amount
An amount of a payment authorization.
Backordered order
An order that has at least one order line that is backordered.
Backordered order list
A list orders that are backordered.
Batch
A payment batch is a grouping of captured payments and issued
credits that will be treates as an entity and settled via a back-
end system or payment processor.
Batch availability request
XML document that contains a request for inventory availability
updates. The request consists of list of line items defined as
follows:
private String currency = null;
-- line number
-- global product identifier
-- distributor product identifier;
-- unit of measure
The request also contains:
-- message identifier
-- additional information allowed indicator
-- user credentials
-- quotation store identifier
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-- quotation contract identifier
-- quotation type
-- display sequence
Batch availability response
The inventory availability response contains the following data:
-- fulfillment center identifier (fulfillment location)
-- A list of specified items. For each specified item find out the
following:
--- The member identifier and part number of the specified item
--- The external Outmode for quantity (optional)
--- Quantity available
--- Restock date (optional)
Batch expected availability request
The inventory availability response contains the following data:
-- fulfillment center identifier (fulfillment location)
-- A list of specified items. For each specified item find out the
following:
--- The member identifier and part number of the specified item
--- The external Outmode for quantity (optional)
--- Quantity available
--- Restock date (optional)
Bid control rule
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Bid rules determine how bidding is allowed to proceed for Open
Cry and Sealed Bid auctions. Bid rules describe the minimum bid
price, quantity, and bid increment.
Bid override notification
Informs a customer that a higher bid has been placed.
Bidding closed auction
The auction is closed and no more bids are accepted.
Business account
Business accounts represent the relationship between a store
and the store's customer organizations and are the starting point
for managing business relationships. Using business accounts,
you can track contracts and orders for customer organizations
and configure how Buyers from customer organizations shop in a
store. A business account contains the following information
about a customer organization:
-- The name of the customer organization and a contact person
within that organization.
-- The department and name of the Account Representative from
the store
assigned to the customer organization.
-- Information about purchase orders a customer organization
has with a store.
-- Information on how invoices are delivered to the customer
organization.
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-- Whether or not the customer organization has a credit line.
-- Any display customization information for the business
customer. Store pages can be customized for a business account
by specifying a piece of HTML code that can be used by a store's
JSP files.
-- Any general remarks about the business account.
Also, business accounts control customer entitlement by
controlling the ability of Buyers from customer organizations to
access a store's master catalog and see standard pricing for
products contained in the master catalog. If a customer
organization is not entitled to purchase products in the store's
master catalog at standard prices, they are limited to products
and prices covered by contracts the customer organization has
with a store.
Business account analysis data
A report containing information about a business account
including number of orders, products purchased, and so on.
Buyer organization
Buyer Organization. See 'Buyer' and 'Organization' in the online
help for more details.
Buyer purchase orders
Web Sphere Commerce provides the ability for you to track and
authorize customer purchase order numbers. If a business
account includes any purchase order terms and conditions and a
contract specifies the use of that account, all purchases under
the contract must specify a purchase order number defined with
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the account. A single purchase order number can then be used
for payment authorization. Purchase order numbers are specified
when the customer places an order. Purchase order numbers can
be specified for three different types of purchase orders:
-- Blanket purchase orders
Used for an unlimited number of orders. Blanket purchase order
numbers that will be accepted when placing an order must be
specified in the business account before Buyers attempt to
specify a blanket purchase order number.
-- Limited purchase orders
Used for orders where the total amount of all orders made
specifying the limited purchase order number does not exceed a
spending limit. The spending limit for a limited purchase order is
recorded and used to validate orders that specify a limited
purchase order number to ensure the spending limit is not
exceeded. Limited purchase order numbers that will be accepted
when placing an order must be specified in the business account
before Buyers attempt to specify a limited purchase order
number.
-- Individual purchase orders
Used for one order and acceptable purchase order numbers are
not predefined. You can specify that customer under an account
must use a unique purchase order number for each order placed
on behalf of a business account. If you do not require a unique
purchase order number for each order for the account, then
those customers may reuse purchase order numbers.
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Blanket and limited purchase orders are also known as
predefined purchase orders because purchase order numbers for
these types of purchase order must be defined in the business
account before Buyers can use the purchase order numbers
when making a purchase. Purchase order numbers can be
tracked and authorized for any payment method supported by
Web Sphere Commerce, including credit line.
Canceled contract
A contract which is no longer required is moved into canceled
state. A contract may be canceled because it has been rejected
and it has been decided not to continue working on that
contract. A canceled contract is a contract that is no longer in
use, but is left in the database for reference.
Canceled order
An order that was canceled as a result of being rejected by the
Buyer Approver.
Canceled payment
A payment that has been canceled. This is a terminal state.
Cancelled RFQ response
The seller has decided not to send this RFQ response to the
buyer.
Cancelled scheduled order
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An order that was previously scheduled, but that has now been
cancelled.
Catalog
The sales catalog allows the customers to browse for products.
Formerly known as a navigational catalog, it is a hierarchical
map of categories with products, SKUs and kits. A store may
have multiple sales catalogs and each is organized for display to
the customers, usually for merchandising purposes. The sales
catalog may have products assigned to multiple categories and a
category may have more than one parent to form a map rather
than a tree.
Catalog in XML
A Master Catalog or Sales Catalog, in whole or in part, defined in
an XML format specified by the Product Manager or
merchandising manager.
Catalog Item
An item that is in the catalog. In the context of returns, it is an
ad-hoc item, i.e. one that is returned without reference to a
previously placed order.
Classification
The Product Manager or Category Manager must understand the
products they will be selling and plan how they will be organized.
Their decision on the classification used to organize products
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within a hierarchical tree of categories is usually based on one or
a combination of the following:
-- Product classification (industry standard or custom
classification): products are strictly organized based on what
they are and by the attributes they possess.
-- Supplier provided classification: as some businesses may have
a limited number of suppliers, managing products based on the
categorization provided by their supplier can be more efficient
than mapping the categorization to another classification
scheme.
-- Business policy classification: some businesses may manage
their catalog based on their own business policies (such as brand
names, manufacturers, or business rules) and will organize their
catalog to reflect their business policies.
Cleansed product data
Product information that has undergone cleansing, normalization
and rationalization such that products are described consistently.
Clickstream analysis reports
A set of business intelligence reports focusing on clickstream
analysis from Tivoli Web Site Analyzer data.
Closed batch
A payment batch that has been settled.
Closed contract
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When a revised version of a contract is deployed, then the
current active version of the contract is moved into closed state.
The contract remains in the
system for reporting and to fulfill orders in progress. An active,
suspended, or approved contract goes to the closed state
automatically when a new version of the contract has been
approved. Creating a new version of a contract creates a copy of
the contract and places the copy of the contract in the draft
state.
Closed return request
A return request that has been closed.
Closed RFQ request
The RFQ is closed and no more responses are being accepted by
the RFQ owner.
Closed store
A closed store is one that is unavailable to customers to enter,
browse the catalog, and purchase products. The store owner can
update the store data using the Web Sphere Commerce
Accelerator, and may enter the store to test the modifications.When the modifications are complete, the store owner can open
the store to make the store available to customers.
Closed stores report
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A report about stores that have been in the closed state for a
certain period of time.
Completed order
An order that has its payment captured. The order has now been
fulfilled and the money captured. The financial transfer at the
financial institution may not yet have happened. .
Order pick history
A history of items that have been picked.
Order releases
Releases associated with an order; a release is defined as a
group of one or more items that will ship together
Order requiring approval
An order that requires approval from the Buyer Approver.
Order ship history
A history of items that have been released to fulfillment.
Order status
The parameters l