I.

INTRODUCTION

I. 1) Executive Summary

Clarification of the title:

 To promote the opening of a new NEXT electronic store in Aundh area.

 To study the reason why sales went down at the NEXT electronic store at
Paud Road in Pune .

Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser.
Retailing may include subordinated services, such as delivery. Purchasers may be
individuals or businesses. In commerce, a "retailer" buys goods or products in large
quantities from manufacturers or importers, either directly or through a wholesaler, and
then sells smaller quantities to the end-user. Retail establishments are often called shops
or stores.

Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is
also applied where a service provider services the needs of a large number of individuals,
such as a public utility, like electric power.

It is very important to, to learn things practically, because practically learning removes all
our confusion about the object, which we have studied in the books. It helps to the
students to make their view point very broad; students can get the exact picture of the
reality. With the help of training students get practical knowledge which helps them in
future.

1
I got chance to peep in the real business world of survey to promote the opening of a new
store of NEXT electronics and to evaluate the study the reason why sales down in Next
stores at one of the branch in Pune city.

If we talk about the NEXT RETAIL INDIA LTD. it is the largest electronics retail
chain in India.

The main aim of this project is to find out the future prospect for NEXT electronics store
in PUNE. The research will also help to understand about the various viewpoints of the
customers by which the company can easily make out where it is exactly lagging behind
along with that customer expectations. The survey method is used wherein Structured
Questionnaire has been used as a research instrument. I got knowledge about the
operations at the Next stores as well.

Two surveys were conducted, a sample size of about 100 respondents was taken
for this study in Aundh area and 50 respondents in PAUD ROAD region. After the
survey was completed, the data was first sorted and then analyzed on the chosen
parameters. This analyzed data was later converted into graphs such as pie charts, bar
graphs, etc. This was done to make results easily comprehensible by anyone going
through the report. This also made it easy to draw out the conclusions and provide a
presentable format of the report.

2
 I. 2) OBJECTIVES OF THE STUDY

Primary objective of the topic is to learn the process of understanding with fact and
analysis of retail organisation to work on the various processes over particular period of
time and thus gather knowledge about whole process as below:

1. To understand the retail operations at NEXT electronics store.

2. To promote the opening of new store of NEXT Electronics in Pune.

3. To know the reason why the sales of NEXT electronics store went down.

4. To know the factors which affect the sales while purchase of the product.

5. To evaluate feedback of customers for NEXT electronics.

3
 I. 3) INDUSTRY PROFILE

Retail sector in India

The Retail Sector of Indian Economy is going through the phase of tremendous
transformation. The retail sector of Indian economy is categorized into two segments
such as organized retail sector and unorganized retail sector with the latter holding the
larger share of the retail market. At present the organized retail sector is catching up very
fast. The impact of the alterations in the format of the retail sector changed the lifestyle of
the Indian consumers drastically. The evident increase in consumerist activity is colossal
which has already chipped out a money making recess for the retail sector of Indian
economy.

With the onset of a globalized economy in India, the Indian consumer's psyche has been
changed. People have become aware of the value of money. Nowadays the Indian
consumers are well versed with the concepts about quality of products and services.
These demands are the visible impacts of the Retail Sector of Indian Economy.

Since the liberalization policy of 1990, the Indian economy, and its consumers are getting
whiff of the latest national & international products, the with help of print and electronic
media. The social changes with the rapid economic growth due to trained personnels, fast
modernization, and enhanced availableness of retail space is the positive effects of
liberalization.

The growth factors of the retail sector of Indian economy:

4
 Increase in per capita income which in turn increases the household consumption
 Demographical changes and improvements in the standard of living
 Change in patterns of consumption and availability of low-cost consumer credit
 Improvements in infrastructure and enhanced availability of retail space
 Entry to various sources of financing

Indian Retail Industry

5
Organized Retail - Market Overview

Indian organized retail market is growing at a fast pace due to the boom in the India retail
industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting
for about 10% to the country's GDP. The organized retail market in India out of this total
market accounted for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010.
Traditionally the retail industry in India was largely unorganized, comprising of drug
stores, medium, and small grocery stores. Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan cities.

The growth in the Indian organized retail market is mainly due to the change in the
consumer’s behavior. This change has come in the consumer due to increased income,
changing lifestyles, and patterns of demography which are favorable. Now the consumer
wants to shop at a place where he can get food, entertainment, and shopping all under one
roof. This has given Indian organized retail market a major boost.

Retail market in the organized sector in India is growing can be seen from the fact that
1500 supermarkets, 325 departmental stores, and 300 new malls are being built. Many
Indian companies are entering the Indian retail market which is giving Indian organized
retail market a boost. One such company is the Reliance Industries Limited. It plans to
invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500
supermarkets.

Pantaloons is another Indian company which plans to increase its retail space to 30
million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian

6
company is in talks with Tesco a global giant for a £ 750 million joint venture. A number
of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set
up shop in India. Indian organized retail market will definitely grow as a result of all this
investments.

Indian organized retail market is increasing and for this growth to continue the Indian
retailers as well as government must make a combined effort.

7
Consumer Durable Market

In the last 10 years, a huge growth has taken place in the consumer durables retail market.
Taking the present situation into account, one can see that the demand for consumer
durables has been increasing.

The increase in demand for consumer durables retail is because of the increase in
disposable income levels in families, since most families are based on a double income
these days.

The rise in the levels of family income have transformed the visage of the Indian lifestyle
which means that most companies view India as a prime destination for consumer
durables retail.

Most of the the consumer durables retail market comprises of television sets, audio
systems, VCD players, washing machines, microwave ovens, air conditioners, toasters,
juicer-mixer-grinders, and so on. Though Indian consumer durables have been increasing
in demand within the domestic market, it has tough competition from international
consumer durables companies such as Sony, Samsung, LG, and Philips. In fact,
according to the Indian Retail Sector analysis 2006-07, the size of the Indian consumer
durables industry in the retail sector stands at US$ 4.5 billion.

Among consumer durables retail goods, flat-screen television and frost-free refrigerators
have been in huge demand in recent times. In 2005 alone, 9 million TV sets and more
than 4 million refrigerators were sold in India.

The performance of the consumer durables retail is critical to the growth of the retail
industry of India. There are new ventures being forayed into by the big Indian companies.
Such steps in the consumer durables retail sector would definitely facilitate the need for
Foreign Direct Investment. However, some international retailers have already started

8
investing in the Indian consumer durables market, such as Metro, Spa International, and
Dairy Farm.

It is quite a challenge to maintain the consumer durables retail market in India because of
the unprecedented challenges that are attached with it. However, the consumer durables
retail market in India is here to stay because of the new age tastes of the modern
consumer in India.

9
Challenges Faced by Organised Retail

The challenges facing the Indian organized retail sector are various and these are
stopping the Indian retail industry from reaching its full potential. The behavior pattern of
the Indian consumer has undergone a major change. This has happened for the Indian
consumer is earning more now, western influences, women working force is increasing,
desire for luxury items and better quality. He now wants to eat, shop, and get entertained
under the same roof. All these have lead the Indian organized retail sector to give more in
order to satisfy the Indian customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space.
With real estate prices escalating due to increase in demand from the Indian organized
retail sector, it is posing a challenge to its growth. With Indian retailers having to shell
out more for retail space it is effecting there overall profitability in retail.

Trained manpower shortage is a challenge facing the organized retail sector in India. The
Indian retailers have difficultly in finding trained person and also have to pay more in
order to retain them. This again brings down the Indian retailers profit levels.

The Indian government has allowed 51% foreign direct investment (FDI) in the India
retail sector to one brand shops only. This has made the entry of global retail giants to
organized retail sector in India difficult. This is a challenge being faced by the Indian
organized retail sector. But the global retail giants like Tesco, Wal-Mart, and Metro AG
are entering the organized retail sector in India indirectly through franchisee agreement
and cash and carry wholesale trading. Many Indian companies are also entering the
Indian organized retail sector like Reliance Industries Limited, Pantaloons, and Bharti
Telecoms. But they are facing stiff competition from these global retail giants. As a result
discounting is becoming an accepted practice. This too bring down the profit of the
Indian retailers. All these are posing as challenges facing the Indian organized retail
sector.

10
The challenges facing the Indian organized retail sector are there but it will have to be
dealt with and only then this sector can prosper.

11
 COMPANY PROFILE

NEXT RETAIL INDIA LTD.

 Vision: To be the number ONE electronics retailer in India and to be within the
top two in each city or town that we operate in.

 Mission: NEXT aims at making the Indian middle class consumers experience
the best electronic products and brands near their homes at affordable prices
providing a warm and reassuring customer experience.

 Objective: Plans ahead are more ambitious with a targeted turnover of 1800
Crores for next year with 600 plus outlets.

12
NEXT is a “Change India” Program. It aims at changing the way an Indian consumer
shops for electronics. NEXT Retail India Ltd with more than 300 outlets across 16 states
with a presence in 145 towns spanning metros and large towns is India’s Largest
Electronics Retail Chain; a giant in the organized retailing of consumer electronics, home
appliances and IT products.
NEXT has more than doubled its last year’s turnover in the current financial year.

NEXT is a multi-brand multi-product outlet and stocks an entire range of consumer durables right
from air-conditioners, LCD and Plasma TVs, home theater systems, washing machines,
refrigerators, microwaves to small home appliances. NEXT retails some of the most popular
brands such as LG, Samsung, Sony, Electrolux, Kelvinator, Whirlpool, Onida, Philips, Kenstar,
Videocon, Sansui, including its own brand under its stable. NEXT,computers & laptops of Acer,
HCL, Lenova, HP. Very shortly NEXT will be introducing Imaging and accessories product
categories.

NEXT has always stood by its brand promise of “Best brands. Best bargains”
NEXT has opened up a world of choices for shopping enthusiasts (including homemakers),
across all demographic and psychographic segments. Plus, with the best brands that one comes
across in NEXT, there are surprise gifts, specialized prices, opening offers, holiday packages,
zero percent finance options, attractive exchange offers and free home delivery within city limits.

Mint – Pitch – Synovate India Retail Brands Survey 2007* has recently rated NEXT as all India
No. 1 in customer satisfaction in the consumer durables category. In the Consumer Survey NEXT
scores 1345 on satisfaction index which is way ahead of its closest competitor (with an index of
482). The Survey finding is an endorsement of NEXT leading the organized consumer durable
retail sector and the destination point for consumers.

13
Unique to Next

 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 and employees.

 Always open to suggestions & improvements.

14
II. 2) PRODUCTS AT NEXT ELECTRONICS

20-27 28-32 33-42 43-52 inches

14-19 20-27 28-32 inches

REFRIGERATORS WASHING MACHINE AIR-CONDITIONERS

Frost Free Fully Automatic Split AC

Direct Cool Semi Automatic Window AC

15
Food Processors, Irons, Mixers, Water Purifiers, Air Cooler,
Vacuum Cleaner, Blenders, Rice Cookers

LG, KENSTAR, GODREJ, etc

DVD & HOME-THEATER

16
LAPTOPS & DESKTOPS

DIGITAL CAMERA & CAMRECORDER

Gaming, Headphones, UPS

MP3/4, Mouse, Video Games
Pen Drive, CD/DVD , CD Wallet
Webcam , CFL , PS3 Software

17
ELECTRONIC COMPANIES AT NEXT

18
Promotional Activities

19
My card of next

MyCard - A rewards program that's as unique as you are.

 
Welcome to a world of rewards!

It gives us immense pleasure to present a great new way to enjoy

a world of rewards and gifts. MyCard represents your individuality,
which is as unique as your choices. Which is why, we have
designed a rewards program keeping you in mind and one that
understands your aspirations, lifestyle and your needs. This also
means that instead of earning points on individual rewards
programs, you earn points on all your spends on one card.

20
MyCard rewards you with points for every purchase you make
across our partner outlets nationwide. These points are called
SMILES, because we want to spread the joy of shopping and keep
a smile on your face. Collect SMILES on your everyday shopping
and then redeem them for your favorite products or gift vouchers
from wide range of rewards - it’s as simple as that.

So keep shopping and keep earning SMILES!

 
Benefits
 

A Single Easy-to-use Card Accepted at Multi-Partner Outlets

& E-Stores.

Freedom to Choose Your Rewards.

Host of Privileges & Special Offers from our Partners.

21
 Partners - A growing nucleus of partners that gives you more
 
As a member of MyCard you earn SMILES on all your purchases
anywhere in the country. We have a diverse list of partners from
retail to groceries and from home durables to lifestyle products,
covering all aspects of your shopping. So earn SMILES faster and
get rewarded more.
 

       

         

             
       

             
          

 
 
 
MyCard - A single, easy-to-use card to earn and redeem
SMILES
 
With MyCard Rewards Program, you earn SMILES from our

22
partner outlets across the nation with India's leading brands. So
wherever you are, you can earn SMILES faster and enjoy the
freedom to choose gifts and products you want, always! Click here
to view list of partners with whom you can start earning SMILES
today!
 
 
How to earn SMILES
 
NEXT, Planet M, Big Flix, Tie Rack London, Satya Paul, Satya
Paul accessories
Flash your card at any of these stores to earn SMILES

Videocon, Sansui, Kelvinator, Electrolux, Kenstar

Call MyCard Customer Care at 60011009 and register your
product purchase to earn SMILES

Videocon d2h
Call MyCard Customer Care at 60011009 and register your
Subscriber ID to earn SMILES

E-digiworld, fnp.com, fnp.in, BigFlix.com

Enter your membership number while making any purchase to
earn SMILES

Redeem SMILES for a wide range of gifts and products

 
The MyCard Rewards Program offers a range of redemption
options to suit your lifestyle. Once you have earned enough
SMILES for your favorite rewards, you can redeem them for

23
dream gadgets, shopping vouchers or even holidays to exciting
destinations of your choice.

MyCard - A world of rewards

 
We want to make shopping fun, exciting and more rewarding than
ever. Choose from a range of categories and gift options that you
truly deserve. We will be continuously adding more gift vouchers
and products to give you more choice and make it more rewarding
for you.
 

     

 
 

PROMOTIONAL SCHEMES ARE AS FOLLOWS:-

24
A
V
G
P
T
IN
-

-
W
S
R
E
F
O
L
3. Sample Design –

I have prepared questionnaires and through it, I have taken all data and
suggestion of customer opinion about the offer schemes and impact of offers schemes
on individuals. After taking the data I will analyze that what is the effect of any
promotional schemes on consumer behavior.

I have also successfully done my project of MY CARD given by company which is a

loyalty program of costumers.

MY CARD ANALYSIS-

25
 (a unique loyalty program).At different outlet are as follows: KOTHRUD,
CAMP, CHINCHAWD,TILAK ROAD AND AUNDH,

AREAS OF SERVEY % OF FILLING of MY CARD (a unique

loyalty program) .

AUNDH(MY STORE,MY ACHIVEMENT) 92%

CHINCHWAD 45%
CAMP 15%
KOTHRUD 12%
TILAK ROAD 10%

III. RESEARCH METHODOLOGY

26
 III.1) THEOROTICAL BACKGROUND

 Consumer

Consumer refers to the people or organizations that seek satisfaction of their needs and
wants. Its for the satisfaction of their needs and wants they move to the market to buy
goods and services

 Consumer Satisfaction

The consumer derives satisfaction from his expenditure.

The consumer chooses his expenditures and maximizes his utility with the given income
and the given prices of goods and services

 Survey research a research method involving the use of questionnaires and/or

statistical surveys to gather data about people and their thoughts and behaviours.

 Promotion involves disseminating information about a product, product line,

brand, or company. It is one of the five key aspects of the marketing mix. (The
other four elements are product marketing, pricing, pay role and distribution.)

Promotion is generally sub-divided into two parts:

 Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers,
Internet and Mobile Phones) in which the advertiser pays an advertising agency to
place the ad
 Below the line promotion: All other promotion. Much of this is intended to be
subtle enough for the consumer to be unaware that promotion is taking place.E.g.
sales promotion, direct mail, personal selling, public relations, trade shows

III . 2) DATA COLLECTION AND SAMPLING

27
 There are two types of data source that are generally used -

1. Primary data
2. Secondary data

 PRIMARY DATA:

The primary data are those which are collected fresh for the first time, and thus
happens to be original in character. It thus customizes according to the need of the
researcher and focuses exclusively on the current research problem.

Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially
for the purposes of statistical inference

Sample Size- Two surveys were conducted

Survey.1 – 100 respondents

Survey.2 – 50 respondents

Sample Techniques- The samples were selected randomly and on the basis of place of
residence.

Study Period- The study was done in 60 days.

Tools of Data Collection- The main tool for collecting information for primary data was
the questionnaire.

 SECONDARY DATA:

28
 Secondary data are those, which are collected earlier for some purpose other than the
purpose of the present study. Secondary data provides a starting point for research
and offer the advantages of low cost and ready availability. It can also be as a
benchmark against which the findings of the study can be tested.

The tools or the sources through which all the secondary information was collected which
adds color to my report writing is:-

INDUSTRY RESEARCH:

Academic journals, publications, periodicals are the most recent developments in any
industry. A rigorous search effort can be conducted by using library based academic,
business indices trade publications and also internet search helps a lot.

BOOKS, MAGAZINES, INTERNET AND NEWSPAPERS:

These also play an essential part in understanding the subject, analyzing methods of
doing it in different ways, finding the best methods and keeping oneself update about the
latest developments in the same.

29
 III.3) LIMITATIONS OF THE STUDY

 Study was done to the limited number of people so the result is also related to it
only.

 The study on consumer perception about NEXT ELECTRONICS has been

limited to geographical boundaries of Pune.

 The respondents were not giving proper response for the questions.

 The project was to be completed in a specific time period.

IV. DATA ANALYSIS

30
 Q.1 Your electronics shopping experience at NEXT was

Performance No. of Respondent

Excellent 8

Very Good 19

Good 39

Fair 31

Poor 3

Table no 1.

No. of Respondent
40
20 No. of Respondent
0
nt d od ir or
elle Goo Go Fa Po
c ry
Ex
Ve

Graph no. 1

Interpretation

This can be understood from the graph that a big no of customers are satisfied with their

purchase from next Electronics outlet.

Q. 2. How would you rate NEXT on the following?

31
 1. Ambience

Performance / Properties Ambience

Excellent 22

Very Good 48

Good 25

Fair 4

Poor 1

Table no 2.

Ambience

Excellent
Very Good
Good
Fair
Poor

Graph no. 2

Interpretation

Ambiance wise mostly people likes the Next

32
2. Display of products

Performance / Properties Display of products

Excellent 19

Very Good 51

Good 26

Fair 4

Poor 0

Table no 3.

Display of products
Good Fair
4% Excellent
26% 19%

Very Good
51%

Graph no. 3.

Interpretation

Display of the products are also very good at next as per the customers.

33
3. Range of the brands available
Performance / Properties Range of the brands available

Excellent 5

Very Good 29

Good 45

Fair 16

Poor 5

Table no 4.

Range of the brands available

Excellent
Very Good
Good
Fair
Poor

Graph no. 4.

Interpretation

Ranges of the brands available are good but it could be improved because today the customers

want exactly what is there in their mind.

34
4. Staff approachability

Performance / Properties Staff Approachability

Excellent 7

Very Good 26

Good 44

Fair 20

Poor 3

Table no 5.

Staff Approachability
Excellent Very Good Good Fair Poor
3% 7%

20%
26%

44%

Graph no. 5.

Interpretation

Staff should be more active to attend the customers but don’t be too close that make them

uncomfortable in selection.

35
5. Staff technical knowledge

Performance / Properties Staff Technical Knowledge

Excellent 3

Very Good 12

Good 23

Fair 44

Poor 18

Table no 6.

Staff Technical Knowledge

Excellent
3%
Poor Very Good
18% 12%

Good
23%
Fair
44%

Graph no. 6.

Interpretation

As per the graph we can see that more than 60% of the customers are not very impressed which

required serious staff training in technical skills.

36
Q. 3. How do you find the pricing at NEXT

Pricing Response

Expensive 15

Very Expensive 7

Same as else where 56

Competitive 22

Table no. 7.

Response
Expensive
Competitive 15%
22%
Very Expensive
7%

Same as else where

56%

Graph no. 7.

Interpretation

Next should maintain more competitive pricing policy and always keep its eyes on

the other competitors and their prices.

37
Q. 4. Where did you hear about NEXT?

Pricing Response

Newspaper 45

Hoarding 30

Radio 13

Family/friends 12

Table No. 8.

Response
45
40
35
30 Response
25
20
15
10
5
0
Newspaper Hoarding Radio Family/friends

Graph no. 8.

38
 HAVE YOU HEARD ABOUT NEXT ?
10%

YES
NO

90%

INTERPRETATION:

 Out of 50 respondents 90% people were aware about the NEXT electronics store.

 ONLY 10% i.e.5 respondents said no.

39
 CONCLUSION AND SUGGESTION

Conclusion

 Location – Aundh,Pune

1. Respondents were not ready to disclose their personal details like phone no. and
address.

2. Most of the respondents were not aware about Next retail.

3. Most of the people commented to advertise more and give better offers/discounts
as its a new store in that area.

 Location – Paud Road,Pune

1. On the question about ambience of store, people rated it very low.

2. Respondents complained about the product range in sections like laptops, Air
conditioner

3. Most of the people commented to advertise more.

4. On the question of price response was average.

5. On question of staff behaviuor people rated it average.

6. Respondents suggested to introduce sections like accessories, mobiles,digital

cameras and handy-cams, portable music players.

40
 Suggestion

 Increase the local promotions like pamphlet, newspaper, radio, hoardings etc.

 Concentration should be given to the ambience of the store

 Concentration should be given to product availability in the store.

 Introduce new sections like mobile, cameras, accessories in all the stores.

 In-house promotions should be increased.

41
 Bibliography

WEBSITES

 www.next.co.in

 www.google.com

 www.yahoosearch.com

 www.wikipedia.com

BOOKS

 Marketing management –by Philip Kotler

 Marketing Research –by C.R Kothari

42
Questionnaire 

1. YOUR NAME-________________________________________________

2. AGE- _____yrs.

3. SEX-

 male
 female

4. Your electronics shopping experience at NEXT was:

Excellent
Very good
Good
Fair
Poor

5 .How would you rate NEXT on the following

 Ambience -
Excellent
Very good
Good
Fair
Poor

 Display of products
Excellent
Very good
Good
Fair
Poor

43
6. Range of the brands available

Excellent
Very good
Good
Fair
Poor

7. Staff approachability

Excellent
Very good
Good
Fair
Poor

8. Staff technical knowledge

Excellent
Very good
Good
Fair
Poor

9. How do you find the pricing at NEXT?

Expensive
Very expensive
Same as elsewhere
competitive
Inexpensive

44
7. Where did you hear about NEXT?

Newspaper
Hoarding
Radio
Family/friends
Others

8. How much any fabulous offers attract you

Less
Very less
High
Very high
No affect

9. How much time you have changed your brand preference due to some
fabulous offer of other brand

Never
Some times
Always
Depends on offer

10. Why did you not purchase at NEXT. Give your suggestion?

_____________________________________________________________
_____________________________________________________________
___.

45
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