Project

Report on Summer Training

On
To Study The Working Procedure & Marketing Strategies of
Aadhar Retail Ltd

Submitted to Punjab Technical University

In the partial fulfillment of the
requirements for the award
of
Degree
of
Masters of Business Administration(MBA)
2009-2011

Submitted by:
Gagandeep Singh
University Registration No.95182239101

DEPARTMENT OF MANAGEMENT
 SHREE ATAM VALLABH JAIN COLLEGE
LUDHIANA

DECLARATION

I GAGAN DEEP SINGH declare that the project report entitled “STANDARD
OPERATIONAL PROCEDURE AND ITS ADHERENCE RELATED TO AADHAAR
RETAIL MARKETING”, is the produce of my sincere effort. This Summer Internship
Project Report is being submitted by me alone, at SHREE ATAM VALLABH JAIN
COLLEGE, for the partial fulfillment of the course MBA, and the report has not been
submitted to any other educational institutions for any other purpose.

GAGAN DEEP SINGH

2
 PREFACE

As a part of MBA degree, it is required for every student to undergo summer training in
an industrial or commercial organisation to get a practical exposure of actual situation
existing in the industry.

I have undertaken my training in AADHAAR RETAILING LTD, LUDHIANA. The

duration of my training was eight weeks.

When I joined AADHAAR RETAIL LTD. , I believed that ‘’RETAIL IS IN EVERY

BIT OF YOUR LIFE” I believe that now I will answer my entire enigma and asked for
queries .During this humble month old stay in the organization , I have made a very
modest attempt in understanding and presenting my ideas as well as enriching experience
through this report .

3
 ACKNOWLEDGEMENT

No endeavour can be successful without the active cooperation of the people concerned
with it, which was fourth coming in full during this study. It is extremely difficult to find
words which can do justice to this sort of cooperation; I got in the planning & execution
of this study.
I am deeply indebted to Mr. Anchal Bindal(Sr. Manager HRA) who allowed me to
take training in this esteemed branch of Aadhaar Retailing ltd. and without whose
cooperation my training would not been possible.
I feel lucky to complete my project under the able and competent guidance of Mr. Ajay
Dwivedi. (State Head Punjab) and Mr. Muneesh Kaushal (Asstt. Marketing
Manager) and take the opportunity to express my sincere thanks to Mr Sumant
(Sr.Operation Manager) and Mr. Naresh Dutt(Sr. Distribution Manager) and
Mr.V.K. Pandey (Store Manager) for valuable guidance in planning & execution of
this study.
I am extremely grateful to Mr.Ashok Biyani(DIRECTOR) and my research guide Mr.
RAJNISH JAIN (FACULTY OF MBA) and other faculty members for their whole
hearted co-operation.
I extend my deepest gratitude to all those persons who supported me all through my
project. My interaction with all these people has left a long lasting impression in my mind
that will influence my project and my behaviour for all times to come
.
Once again I extend my whole hearted thanks to all the supporters and advisors for
their help.

4
Gagandeep Singh

TABLE OF CONTENTS

Sr. No Description Page No.

EXECUTIVE SUMMARY
1 6

INTRODUCTION TO RETAIL MARKETING

2 7-23
COMPANY PROFILE S HISTORY
3 24-35

4 INTRODUCTION TO - S. O. P. 36-55

5 SWOT ON AADHAR RETAIL LTD 56-65

6 OBJECTIVE OF STUDY 66

7 RESEARCH METHODOLOGY 67-71

8 DATA ANALYSIS AND INTERPRETATION 72-81

9 CONCLUSION 82

10 RECOMMENDATIONS AND SUGGESTIONS 83

11 BIBLIOGRAPHY 84

5
 EXECUTIVE SUMMARY
In today economy, one needs money to make money. Marketing is the life
blood of business and there must be continuous flow of funds in and out of
business enterprise. Money makes the wheel of business run smoothly.
Sound plan and efficient production system and excellent marketing network
are all hampered in the absence of adequate funds. In modern economy, the
rate of finance has increased due to large scale industrial production. It has
resulted in increasing the demand of funds in an organization.
Retail Marketing is a growing sector in all around the world.Retailing
includes all the activities involved in selling goods or services directly to
final consumers for personal, non business use. Basically retail marketing is
globalize in urban areas but now company’s are also interested in rural areas
and moving towards it .
Retailing is emerging as a sunrise industry in India and is presently the
largest employer after agriculture. In the year 2004, the size of Indian
organized retail industry was Rs 28,000 Crore, which was only 3% of the
total retailing market. Retailing in its present form started in the latter half of
20th Century in USA and Europe and today constitutes 20% of US GDP. It is
the 3rd largest employer segment in USA. Organized retailing in India is
projected to grow at the rate of 25%-30% p.a. and is estimated to reach an
astounding Rs 1,00,000 Crore by 2010. In India it has been found out that
the top 6 cities contribute for 66% of total organized retailing. With the
metros already been exploited, the focus has now been shifted towards the
tier-II cities**. The 'retail boom', 85% of which has so far been concentrated

6
in the metros is beginning to percolate down to these smaller cities and
towns. The contribution of these tier-II cities to total organized retailing
sales is expected to grow to 20-25%.
Introduction to Retail Marketing

Retail forms the core business activity at Future Group and most of its businesses in the
consumption space are built around retail. Future Group’s retail network touches the lives
of more than 200 million Indians in 73 cities and 65 rural locations across the country.
The group currently operates around 1,000 stores spread over 16 million square feet of
retail space. Present in the value and lifestyle segments, the group’s retail formats cater to
almost the entire consumption expenditure of a wide cross-section of Indian consumers.

Led by Pantaloon Retail, the group’s flagship company, the group manages some of
India’s most popular retail chains like Pantaloons - a chain of fashion destinations, Big
Bazaar - a uniquely Indian hypermarket chain, Food Bazaar - a supermarket chain that
blends the look, touch and feel of Indian bazaars with aspects of modern retail like
choice, convenience and quality and Central - a chain of seamless destination malls.
Some of its other formats include Ethnicity - India's first concept store, which recreates
the experience of a traditional ethnic market in a modern retail format, Brand Factory,
Planet Sports, aLL, Top 10 and Star and Sitara. The group also operates India’s most
popular online shopping portal www.futurebazaar.com.

Retailing of products and services related to home building and home improvement is led
through the group’s formats, Home Town, a large-format home solutions store, along
with specialized formats for home furniture and home furnishing through, Collection i
and Furniture Bazaar and consumer electronics through eZone and Electronics
Bazaar.

The group also operates India’s leading rural retailing chain, Aadhaar that is present
in over 65 locations in retail showroom in India. Aadhaar, an agri-service cum rural
retail initiative, provides a complete solution provider for the consumer.

7
 RETAIL MARKETING

The term marketing refers to an art of selling product by satisfying consumer needs.
Marketing deals with identifying and meeting human and social needs. Retail marketing
takes place when at least one party to a potential exchange thinks about the means of
achieving desired responses from other parties. Retail marketing is also related to getting,
keeping, and growing customers through creating, delivering,and communicating
superior customer value.

The 'marketing mix' is a set of controllable, tactical marketing tools that work together to
achieve company's objective Elements of the marketing mix are often referred to as 'the

8
1-PRODUCT

A product is a bundle of benefits which are being offered to consumer. Thus a good
product makes its marketing by itself because it gives benefits to the customer.

2-PRICE

Pricing is basically setting a specific price for a product or service offered. In a simplistic
way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money
that customers have to pay to obtain the product.

9
3-PLACE-DISTRIBUTION

The place is where you can expect to find your customer and consequently, where the
sale is realized. Knowing this place, you have to look for a distribution channel in order
to reach your customer.

In fact, instead of "place" it would be better to use the word "distribution" but the MBA
lingo uses "place" to memorize the 4 Ps of the marketing mix!

4-PROMOTION

Promotional strategies include all means through which a company communicates the
benefits and values of its products and persuades targeted customers to buy them
Promotion has four distinct elements - advertising, public relations, word of mouth and
point of sale.

Significance of Retail Markets

The retail markets are estimated to be growing fastly in the middle class area. The
potentiality of rural markets is said to be like a 'woken up sleeping giant'. These facts are
substantiated in a study of market growth conducted by various researches. In recent
years, rural markets have acquired significance in countries like China and India, as the
overall growth of the economy has resulted into substantial increase in the purchasing
power of the rural communities. On account of the green revolution in India, the rural
areas are consuming a large quantity of industrial and urban manufactured products. In
this context, a special marketing strategy, namely, rural marketing has taken shape.
Sometimes, rural marketing is confused with agricultural marketing – the later denotes

10
marketing of produce of the rural areas to the urban consumers or industrial consumers,
whereas rural marketing involves delivering manufactured or processed inputs or services
to rural producers or consumers.

A number of factors have been recognized as responsible for the rural market boom to
come into existence:
1. Increase in population and hence increase in demand.
2. A marked increase in the rural income due to agrarian prosperity.
3. Standard of living is also increasing in rural areas.
4. Large inflow of investment for rural development programmes from government and
other sources.
5. Increased contact of rural people with their urban counterparts due to development of
transport and wide communication network.
6. Increase in literacy and educational level and resultant inclination to sophisticated lives
by the rural folks.
7. Inflow of foreign remittances and foreign made goods into rural areas.
8. Change in the land tenure systems causing a structural change in the ownership
patterns and consequent changes in the buying behaviour.
9. Rural markets are laggards in picking up new products. This will help the companies to
phase their marketing efforts. This will also help to sell inventories of products out dated
in urban markets.
Rural market has following arrived and the following facts substantiate this.
What makes Rural Markets Attractive?
* 742 million people
* Estimated annual size of the rural market
- FMCG Rs. 65,000 Crores
- Durables Rs. 5,000 Crores
- Agri-inputs (incl. tractors) Rs. 45,000 Crores
- 2 / 4 wheelers Rs. 8,000 Crores
* In 2001-02, LIC sold 55 % of its policies in rural India.
* Of two million BSNL mobile connections, 50% in small towns/villages.

11
* Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)
* 41 million Kisan Credit Cards issued (against 22 million credit-plus-debit cards in
urban) with cumulative credit of Rs. 977 billion resulting in tremendous liquidity.
* Of 20 million Rediffmail signups, 60 % are from small towns. 50% transactions from
these towns on Rediff online shopping site
* 42 million rural HHs availing banking services in comparison to 27 million urban HHs.
* Investment in formal savings instruments: 6.6 million HHs in rural and 6.7 million in
urban

Opportunities: In Retail Marketing

Infrastructure is improving rapidly.

- In 50 years only 40% villages connected by road, in next 10 years another 30%.
- More than 90 % villages electrified, though only 44% rural homes have electric
connections.

12
- Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop
is connected by STD.
* Social Indicators have improved a lot between 1981 and 2001
- Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved
(41% to 23%)
- Percentage of BPL families declined from 46% to 27%
- Rural Literacy level improved from 36% to 59%
* Low penetration rates in rural so there are many marketing opportunities.

Durables Urban Rural Total (% of rural HH)

CTV 30.4 4.8 12.1

Refrigerator 33.5 3.5 12.0
FMCGs Urban Rural Total (% of rural HH)
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6

* Marketers can make effective use of the large available infrastructure

- Post offices - 1, 38,000
- Haats (periodic markets) - 42,000
- Melas (exhibitions) - 25,000
- Mandis (agri markets) - 7,000
- Public distribution shops - 3, 80,000
- Bank branches - 32,000

* Proliferation of large format rural retail stores which have been successful also.
- DSCL Haryali stores
- M & M Shubh Labh stores
- TATA/Rallis Kisan Kendras
- Escorts rural stores
- Warnabazaar, Maharashtra (annual sale Rs. 40 crores)

13
EMERGING TRENDS IN MARKETS
ONLINE RURAL RETAIL MARKET (INTERNET, NICNET):

Rural people can use the two-way communication through on – line service for crop
information, purchases of Agri-inputs, consumer durable and sale of rural produce
online at reasonable price. Farm information online marketing easily accessible in
rural areas because of spread of telecommunication facilities all over India.

INFORMATION THROUGH LOCAL AGRICULTURE INPUT DEALERS

Most of the dealers have direct touch with the local farmers; these farmers need
awareness about pests, decease, fertilizers, seeds, technology and recent
developments. For this information, farmers mostly depend on local dealers. For
development of rural farmers the government may consider effective channel and
keep information at dealers, for farmer education hang notice board and also train the
dealer recent changes and developments in agriculture.

National Chain Stores: large number of stores set up in different rural areas
throughout the country by the same organization for marketing its products. Thus
national chain stores can serve large number of customers in rural area.

COST BENEFIT ANALYSIS

Cost benefit can be achieved through development of information technology at the
doorsteps of villagers; most of the rural farmers need price information of agri-
produce and inputs. If the information is available farmers can take quick decision
where to sell their produce, if the price matches with local market farmer no need to

14
go near by the city and waste of money & time it means farmers can enrich their
financial strength.

NEED BASED PRODUCTION

Supply plays major role in price of the rural produce, most of the farmers grow crops
in particular seasons not through out the year, it causes oversupply in the market and
drastic price cut in the agricultural produce. Now the information technology has
been improving if the rural people enable to access the rural communication, farmers
awareness can be created about crops and forecasting of future demand, market taste.
Farmers can equates their produce to demand and supply, they can create farmers
driven market rather than supply driven market. If the need based production system
developed not only prices but also storage cost can be saved. It is possible now a days
the concept of global village.

MARKET DRIVEN EXTENSION

Agricultural extension is continuously going through renewal process where the focus
includes a whole range of dimensions varying from institutional arrangements,
privatization, decentralization, partnership, efficiency and participation. The most
important change that influences the extension system is market forces. There is a
need for the present extension system to think of the market driven approach, which
would cater the demands of farmers.

PROCESSING INDUSTRY

15
India is the second largest producer of fruits and vegetables in the world with an
annual production of more than 110 million tones of fruit and vegetable only 1.3
percent of the output is processed by the organized sector commercially, the reason
higher consumption in fresh form. However, as the packaging, transportation and
processing capacities increase, the market for processed fruits and vegetables is
projected to grow at the rate of about 20 % per annum. 100 % export oriented units
(EOU) and Joint venture units required improving the processing industry.

APANAMANDI / KISAN MANDI / RYTHUBAZAAR

There is a need to promote direct agricultural marketing model through retail outlets
of farmer's co-operatives in urban areas. The direct link between producers and
consumers would work in two ways: one, by enabling farmers to take advantage of
the high price and secondly, by putting downward pressure on the retail prices.

RURAL AGRI- EXPORT

Rural produce, raw fruits and vegetable, processing goods, have the potential market
in Asian, Europe and western countries. Particularly soudhy countries have
commendable potential for Indian rural produce.

16
 Classification of Customers
India 1 India 2 India 3
Consuming Class Serving Class Struggling class

17
 • like •
• Constitutes only 14 % of
Includes
drivers,
people
house hold
It lives
existence,
hand-to-mouth
so can not
the country’s population
helpers, office peons, afford to even aspire for
• Most of these customers liftmen, washer man etc. good living.
•
have a substantial
• These people make life
Unfortunately
segment will continue to
this

disposable income and

easier and more
they form part of usually be on the peripheries of
comfortable for the
called as the upper the consumption cycle in
consuming class or India
middle and the lower India, in years to come.
1.
middle class
• Research indicates that
for every India one at
least three India Twos are
there, making up approx.
55 % of the population
but due to low income
they have a very little
disposable income to
spend on buying
aspirational goods &
services .

Source: Future Group Research, Published in the Book “It Happened in India” by
Kishore Biyani, 2007 issue.
Emerging Trends in Modern Retail Formats:

18
It is difficult to fit a successful international format directly and expect a similar
performance in India. The lessons from multinationals expanding to new geographies
also point to this. For example, Wal-Mart is highly successful in USA but the story is
different in Asian countries like China. Therefore, it is important for a retailer to look at
local conditions and insights into the local buying behavior before shaping the format
choice. Considering the diversity in terms of taste and preferences prevailing in India, the
retailers may go for experimentation to identify the winning format suited to different
geographies and segments. For example, the taste in south is different from that in north
and this brings challenges to the retailers. Therefore, most of grocery retailers are region
centric at this point in time. The available research findings on retail indicate the
following trends in Modern Retail formats:

1) Trial & Error: Now a number of retailers are in a mode of

experimentation and trying several formats which are essentially the
representation of retailing concepts to fit into the consumer mind space. Apart
from geography even rural and urban divide poses different kind of challenge to
the retailer. Pantaloon Retail India is experimenting with several retail formats to
cater to a wide segment of consumers in the market. Some of the new formats are
Fashion Station (popular fashion), Blue Sky (fashion accessories), aLL (fashion
apparel for plus-size individuals), Collection i (home furnishings), Depot (books
& music) and E-Zone (Consumer electronics).

2) Emergence of Wholesale Clubs: Since retailers are trying to segment the

market with the help of formats, they developed another new format in the form
of Wholesale Club to sell a segment of consumers, who purchase on bulk and
look out for substantial discounts and offers. The new format is going to be a kind
of wholesale club which is likely to be located close to Food Bazaar. Consumers
who are interested to purchase on bulk can take benefit from this format.
Similarly the Land mark group also operates multiple formats such as
hypermarket (Max), departmental store (Lifestyle), Shoe mart and Funcity8 etc.
Such experimentation and identification of an appropriate format for the local
conditions would separate winners from losers in India, possibly implying

19
 multiple formats could be the reality in the long run. Pantaloon Retail India Ltd is
a live example of that in Indian scenario.

3) Increasing Acceptance of Rural Markets: Mall-mania is phenomenal in

India and is spreading fast and entering even the second tier cities in India. Real
estate developers are jumping very fast to take this further from Metro cities to
smaller cities and corporate houses like ITC and Sriram group are making steady
progress to make this phenomena feasible in rural markets as well. There is no
denying that the top notch cities like Mumbai, Delhi, Bangalore, Hyderabad,
Kolkata, Chennai and Pune are leading the way but the second tier cities like
Ludhiana, Chandigarh, Nagpur and Surat are also catching the eye of all retailers.
Retail developers are in such a mood that they may over ride the requirement in a
specific city.

4) Govt. is also promoting the Development of Modern Retail Formats:

Large format malls are increasingly getting prominence with adequate retail space
allocated to leisure and entertainment. Some states like Punjab have lifted
entertainment tax on multiplexes till 2009. This boosted the confidence of the
mall developers to accommodate entertainment players like PVR, Waves, Adlab
and Fun Republic in large malls.

5) Efficient Buying: Increasing Importance of Supermarkets & Discount

Stores: Such a format provides the greatest selection of any general merchandize
and very often serves as the anchor store in shopping mall or shopping centre. In
India, the number of department stores is less as compared to other retail formats
such as supermarkets and discount stores. Shoppers' Stop is the first one to open a
department store in the early 1990s and currently operates 19 stores in 10
different cities in India .The store strongly focuses on lifestyle retailing and
mainly divides into five departments such as apparel, accessories, home décor,
gift ideas and other services. Shopper’s Stop is getting stronger and stronger year

20
 after year. It attracts more than 12 million shoppers every year with a conversion
rate of 38 per cent. In the end of FY2000 this retailer had 5 stores and is in the
process of reaching 39 stores with retail space of 2,502,747 sq ft by FY08.
Another operator Lifestyle India began operations in 1998 with its first store in
Chennai in 1999 and in March 2006 it opened one of the largest department stores in
the same city. The store spreads over 75,000 sq. ft and store provides customers a
great shopping experience with three floors of apparel, footwear, products for
children, household furniture and decor, health and beauty products.

6) Hypermarkets: The Biggest Crowd Puller: Hypermarkets have emerged

as the biggest crowd pullers due to the fact that regular repeat purchases are a
norm at such outlets. Hypermarkets not only offer consumers the most extensive
merchandise mix, product and brand choices under one roof, but also create
superior value for money advantages of hypermarket shopping. With product
categories on offer ranging from fresh produce and FMCG products to
electronics, value apparels, house ware, do it yourself (DIY) and outdoor
products, the hypermarkets are emerging as one of the popular formats in India..
Number of players operating hypermarket format are increasing day by day. One
of the leading players in this format is Pantaloon Retail India Limited which
operates 32 Big Bazaars in twenty cities. In early 2006, the K. Raheja Corp (C.L.
Raheja Group) has introduced its value retail concept hyper city which is the
country’s largest hypermarket at 118000 sq ft. hyper city Retail plans to open 55
hypermarkets by 2015. As the market is expanding and consumers are in a mood
to accept changes, hypermarkets are getting overwhelming response from
consumer. Currently there are about 40 odd hypermarkets in India but this format
holds a great potential for growth.

7) Customers still rely on traditional concepts: A super market normally

sells grocery, fresh, cut vegetables, fruits, frozen foods, toiletries, cosmetics,
small utensils, cutlery, stationery and Gift items. In India Food World, Food
Bazaar, Nilgiri (30 plus stores), and Adani are the leading super market
operators .One of the biggest super market operators in the western India is Adani

21
 Retail Limited which operates Adani super market plans to continue its journey to
reach total 19 cities with the store strength of 60 plus in the state of Gujarat. ARL
also plans to expand its operation in the neighboring states of Rajasthan, Madhya
Pradesh, Maharashtra and Chhattisgarh.
Subhiksha is one of the leading super market operators, who largely operates in the
southern part of India is expanding to western India. One more retailer Reliance
Retail is on the move and this retailer opened its Reliance Fresh-a super market chain
with 11 stores in Hyderabad in November 2006 and is planning to enter 70 more
cities within 2 years.

8) Emergence of Private-Label Brands: The private labels are offering

flexibility to both the retailer and the consumer on price front. The objective of
the store is to offer variety at affordable price in each category. Food Bazaar have
made the transition from just a grocery retailer to developing emotional bonding
with shoppers by providing some value added services to the shoppers. Some of
these initiatives include : ( Jo Dikhta Hai wo hi Bikta Hai )

Live chakki: which allows customers to buy fresh wheat and have it grinded there
at the store
Fresh Juice counter: This provides customer to have fresh juices.
Live dairy: This provides customers with fresh milk and milk products.
Live kitchen: Customers have the option of buying vegetables, getting them
chopped, cooked fully or partly. Soups, salads and sandwiches are also available at live
kitchen.

9) Ease of Shopping & Customized Services: Order of the Day: To

activate it a new format has emerged in the name of Convenience Store. A
Convenience store offers locational advantage to the shoppers and provides ease
of shopping and customized service to the shoppers. It charges average to above
average prices, depending on the product category and carries a moderate number
of stock keeping units (SKUs). Normally it remains open for long hours and
shoppers use it for buying fill-in merchandize and emergency purchases. In India,

22
 Convenience stores occupied 23 thousand sq. meter of retail space with sales of
about Rs 1347 million in 2005 and are expected occupy 85 thousand square meter
of selling space by 2010 .

10) Magnetic Effect: Discounters not Shopkeepers: Wal-Mart, the largest

retailer in the world is a discounter. Practically the discounters offer several
advantages such as lower price, wider assortment and quality assurance. The
discounters like Wal-Mart and Aldi were able to quickly build scale and pass on
the benefits to the consumer. However, in the long run success depends on the
operational efficiency and consistent value delivery to the consumer. The same
retailer Wal-Mart struggles in Asian countries like China but extremely successful
in USA. It is believed that the average Indian consumer is highly price-sensitive
and looks for savings in term of money in their grocery purchase. So price-value
equation is a critical component in most of the grocery purchases.

11) Category Killer: A New Concept imported from U.S.: The category
killer concept originated in the U.S. due to abundance of cheap land and the
dominant car culture. Category Killer is a kind of discount specialty store that
offers less variety but deep assortment of merchandise. By offering a deep
assortment in a category at comparative low prices, category specialist can be able
to “kill’ that specific category of merchandize for other retailers. Generally such
kind of retailers uses a self service approach. They use their buying power to
negotiate low prices, excellent terms and assured supply when items are scarce. In
India this kind of retail stores are not prevalent at this point of time. But there is
scope for such kind of format. In India, Mega-Mart is one sort of category killer
which sells apparel products.

12) Dollar Stores: Dollar stores have their roots in America's homey five-
and- dimes, the general stores that offered a range of products at low prices. But
modern dollar-store retailers are having more sophisticated operations; leveraging
their growing buying power to strike special deals with vendors and continuously
striving for unique advantage of both convenience and price. Some chains sell all

23
 their goods at $1 or less. Others offer selected items at higher prices. Most sell a
combination of paper products, health and beauty supplies, cleaning products,
paper and stationery, household goods, toys, food and sometimes clothing. Both
private-label and brand-name goods fill the shelves. They are looking for
employing technology to manage large distribution networks. Store 99 is the
example of it in Indian Scenario.

13) Retail Development in Rural India: A Market with Silver lining:

Chennai based market research firm Francis Kanoi estimated the size of the rural
market to be INR 1, 08,000 crore annually. During the survey in 2002 the firm
took into account four categories - FMCG, durables, agri-inputs, and two- and
four-wheelers for their estimation. Rural incomes are growing steadily as well.
NCAER data shows while the number of middle-class households (with annual
income between Rs 45,000 and Rs 2.15 lakh) is at 16.4 million in urban India, the
figure stands at 15.6 million18 in the rural areas, data from. Largely this rural
market is untapped and there is huge opportunity for retailers.
ecent Developments in Rural Retailing: Therefore, in recent times rural retailing is
witnessing explorations by both corporate houses and entrepreneurs – ITC's Choupal
Sagar, HLL's project Shakthi and Mahamaza are some of the models being tried out. At
this juncture there is no conclusive evidence of winning rural retail formats available.
However, corporate forays into rural retail are expected to bring more experimentation
and innovation in term of retail format. The Godrej Adhaar, the rural retail initiative of
Godrej Agrovet Ltd operates a chain of 18 stores providing a host of services to farmers
and their families and is planning to set up at least 1,000 stores19 across rural India in the
next five years. Apart from Godrej Adhar and Choupal Sagar other formats operating
successfully in the rural area are, M & M Shubh Labh stores, Escorts rural stores, Tata
Kisan Sansar, and Warnabazaar, Maharashtra (annual sale Rs 40 crore).

DSCL Haryali Kisan Bazaar

Hariyali stores keep wide range of product assortments such as fertilizers, pesticides,
farm implements, seeds, animal feed and irrigation equipment among other agriculture
related products. They also have officers who offer free advices to farmers regarding best

24
agriculture practices. Offering insurance and financial services to farmers is part of the
business. So far, 22 "Hariyali" Stores have been operational in different states across
North India. Farmer response has been extremely encouraging. A centre is attracting 150
- 200 farmers a day. Hariyali Kisaan Bazaar has plans to rapidly scale up the operations
& create a national footprint covering all the major agricultural markets of the country.
Mahindra & Mahindra Shubh Labh
This is the rural initiative taken by Mahindra & Mahindra group to provide complete
package of products and services related to firm productivity. One of the basic objectives
is to establish market linkage and optimize farm produce supply chain. There are about
franchised Shub Labh store established in ten states in India.

14: e-Retailing: The importance of internet retailing is growing all over the world. Some
internet retailers such as e Bay and rediff.com are providing a platform to vendors to sell
their products online and they do not take the responsibility of delivering the product to
buyer. They provide virtual shopping space to the vendors. On the other hand online
retailers like amazon.com and walmart.com have to maintain their warehouse to stock
products and take the responsibility of delivering products to the buyer. So, most of the
brick and mortar stores are entering into online retailing as they have physical
infrastructure and they can use that to capture additional consumer wallet. All the big
retailers like Target, Sears and Kmart are operating online shop and some manufactures
also operate online.
For example Apple Inc. operates through apple.com and Dell Inc. sells its products online
Through dell.com.
In India internet retailing is growing by 29% CAGR and Euro-monitor report estimates
that the a CAGR 48 per cent and in value term it going to touch INR 27 billion by 2010
from INR 4 billion in 2005. The report also predicts that the contribution of internet
retailing to non-store retailing to is likely to be 46 per cent by 2010.

25
 COMPANY PROFILE

Godrej Aadhar
Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in
various industries that include appliances, precision equipment, machine tools, furniture,
healthcare, interior solutions, office equipment, food-processing, security, materials
handling and industrial storage solutions, construction and information technology. Its
products include security Systems and Safes, Typewriters and Word processors, Rocket
Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and
Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical
Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents,
Car perfumes, Chicken and Agri-products, Material Handling Equipments Like
FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc.
The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's

manufacturing base, but increasingly the group have moved significant production
facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli,
occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS
marg. That makes the Godrej group the biggest private land owner in Mumbai by far [citation
needed]
. Such vast land can, in theory, be used to create at least 1500 acres of residential
floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion .

26
Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian
conglomerates.

Aadhar Retailing

Agri-services to direct sourcing from farmers, Aadhar Retailing is now getting into the
business of output management with farmers across the country. With the Future Group
owing a 70 per cent stake in Godrej Aadhar, the newly formed company, Aadhar, would
now serve as a procurement hub for the Future Group’s retail formats such as Food
Bazaar and KB’s Fair Price and even become supplier to other retailers across the
country.

Mr Arvind Chaudhary, Chief Executive Officer, Aadhar Retailing, told Business Line,
“We have now started buying the farmers’ produce and getting into the business of output
management. With the intention of selling the farmers’ produce to other retailers, we
would be adding one crop after another and help them in managing their produce,” stated
Mr Chaudhary.

Reaching out to 50,000 farmers every month, the company has already employed 300
people to directly access the produce of farmers across 2,000-odd villages in the country.
The States where farmers are being approached include Punjab, Haryana, Maharashtra
and Gujarat.

With the Future Group’s cash-and-carry format on the backburner, sourcing from farmers
and helping them sell their produce to other retailers is being seen as an extension of the
same format by analysts.

Not wanting to be compared with ITC’s e-Choupal, Aadhar Retailing believes it would
operate in the business of providing solutions for farmers. “We would operate on a
different model from e-Choupal as we would be advising farmers on what to produce and
giving services such as soil testing and weather prediction facilities. The purpose is to
become a one-stop-shop in the rural areas,” says Mr Chaudhary.

27
Fresh inputs

Meanwhile, the existing 66 Godrej Aadhar outlets would also be stocking the Future
Group’s private labels and financial products to extend its current portfolio. New brands
such as Koryo (for consumer durables) and food brands such as Tasty Treat and Fresh ’N
Pure would be making an appearance at the Aadhar outlets.

Besides, with the Future Group having forged strategic alliances with players such as
GlaxoSmithKline to develop the Gopika brand of ghee, its outlets would also see the
brand making an appearance at Aadhar outlets. Financial products, such as insurance-
based products of Future Generalli, would also get sold at the outlets.

Besides, there is also a possibility of the Future Card (the Future Group’s loyalty cum
credit card) being introduced.

Corporate details

Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd.
is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion
in financial year 06/07. Godrej Interio is the flagship company of the group.

Services

 Godrej HiCare (Pest Management Services)

 Godrej Global Solutions (ITES)
 Godrej Properties

Achievement

 In 1897, Godrej Introduced the first lock with lever technology in India.

28
  In 1902, Godrej made the first Indian safe.
 In 1920, Godrej made soap using vegetable oil, which was a huge hit with the
vegetarian community in India
 In 1955, Godrej produced India's first indigenous typewriter
 In 1989, Godrej became the first company to introduce PUF ( Polyurethane
Foam)

 Introduced India's first and only 100% CFC, HCFC, HFC free refrigerators

Godrej Agrovet

29
Godrej Agrovet (GAVL) is a diversified agribusiness company with interests in animal
feed, oil palm plantations, agrochemicals and poultry.It is headquartered at Vikhroli,
Mumbai India. The business was set up in 1971. GAVL today has 45 manufacturing
facilities across India, a network of over 10,000 rural distributors, dealers & agents
and over 1900 employees committed to improving the lives of Indian farmers. The
company has a presence in 21 states.Under the guidance of Chairman, noted
industrialist Nadir Godrej and its Cheif Executive Officer Balram Singh Yadav ,
GAVL today occupies the position of India's largest animal feed company, producing
over 750,000 tons of nutritionally balanced feed for diary cattle, poultry &
aquaculture every year.

Its oil palm plantation business is the market leader in India, with over 35,000 hectares of
smallholder cultivation across Andhra Pradesh, Karnataka, TamilNadu, Orissa,
Goa, Gujarat & Mizoram.
With the intend of radically improving farmer economics, the agrochemicals
business focuses on innovative and environmentally sensitive products.It has
dominant market share in plant growth promoters & soil conditioners.
GAVL has introduced fresh, chilled chicken to Indian consumer over the past decade,
and now has a 20% market share in processed poultry. Its Real good chicken brand
is the best known fresh poultry product in India, with a consumer loyalty about
80%.
 The Rs 900 crore Godrej Agrovet Ltd, a unit of the $1 billion Godrej Industries
Ltd, will open 1,000 'hub-and- spoke' centres in rural and semi-urban areas across
the country in the next five years.
 These centres will also provide technical services like farm management, soil
micro-nutrient analyses to farmers. The hub would cover about 10,000 sq ft and
spoke 3,000 sq ft, each costing about Rs 75 lakh and Rs 30 lakh respectively.
 These outlets will sell agro-products like seeds, pesticides, fertilisers and grocery,
apparel, footwear, home appliances, furniture and kitchen appliances. It will also
house banks, insurance offices, pharmacies, post offices and petrol pumps.

30
  R S Vijan, executive vice-president, Godrej Agrovet, said: "We have decided to
expand in rural and semi-urban markets. We will open 100-120 stores in the
country in this financial year and these centres would be funded and managed by
the company itself."
 Godrej Agrovet posted a turnover of Rs 900 crore in 2005-06 and is expecting
revenues of Rs 3,500-4,000 crore from these stores in the next five years.
 At present, it has 24 Aadhaar centres in Maharashtra, Punjab, West Bengal, Orissa
and Tamil Nadu. It has earmarked Rs 750 crore to train technical and marketing
staff.
 Godrej Agrovet is a key player in the farm segment with a large presence in cattle
and poultry feed. It covers the whole spectrum of poultry business -- from
breeding and hatching broilers to the marketing of its branded chicken. The
company also has foothold in animal feeds, agricultural inputs and palm oil, and
retail presence in urban areas through Nature's Basket. The animal feed segment
constitutes about 75% of the company's revenues; almost 10% comes from
poultry and the remaining from the rest of the businesses.
 Recently, the firm signed a deal with Apollo Pharmacy, part of the Apollo
Hospitals group and the country's largest retail pharmacy chain, to give medical
support to the farming community.Earlier in January, in a bid to strengthen its
hold on the farmer, Godrej Aadhaar had launched two new formats. The large
 format stores have been opened at Mancher and Alephata on the Pune-Nashik
highway in Maharashtra, taking the Aadhaar tally to 18 nationally.
 To increase its rural reach, Godrej Agrovet, which set up Aadhaar a year ago, is
now moving away from being a standalone outlet to hub and spoke model.

Company history
 PROPOSAL – Educational Courses at AADHAAR

31
 About GAVL: Godrej Agrovet Ltd (GAVL) is part of the Godrej
Group of Companies, which is a household brand in India with
diversified business interests. GAVL is Rs. 1000 Cr company closely
associated to rural India through various aspects of Agri Business like
Animal Feeds, Agri Products, Integrated Poultry Business, Oil Palm
Plantation and Plant Biotechnology.

 Godrej Aadhaar - Introduction: A couple of years back Godrej

Agrovet ventured into services cum rural/semi-urban retailing with its
'Godrej Aadhaar' chain of outlets. The initiative was driven by the
single-minded objective of improving the life and livelihood of Indian
rural community. Currently there are 45 Godrej Aadhaar Centers
operational across the country in the states of Maharashtra (11),
Gujarat (6), Punjab (16), Haryana (6), Andhra Pradesh (1), Orissa (1),
West Bengal (2) and Tamil Nadu (2).

 Godrej Aadhaar - the evolution: Godrej Aadhaar started off

as an initiative to provide Indian farming community with quality agri-
inputs and reliable agri-advisory services at the last mile, thus
improving the productivity and income levels. Now it has taken up a
more holistic objective of providing all the solutions to rural/ semi-
urban India under one roof, viz. agri-inputs, free technical
guidance/agri advisory, consumer products and services with focus to
facilitate financial, healthcare, education and entertainment services
etc.
 While agri-inputs and agri services still remain the core of Godrej
Aadhaar, availability of other consumer products and aggregation of
various utility services in an enhanced retail experience for the rural
population would make them the “transactional hubs” of rural/ semi-
urban India.

32
 Godrej Aadhaar - expansion plan: With a first hand
experience of the rural consumer, the Aadhaar centers have now
evolved into a complete retail model. It has aggressive plans of
becoming one of the largest agri-services cum retail chain of the
country with 50 Aadhaars by March 2007 and 1000 Aadhaars within
next five to seven years.

 Scope for Partnering: We believe that strategic partnership is

the key mechanism that would enable us to work towards a viable
business in the long term. Partnerships increase the level of
sustainability because they provide diversity in offering, expertise in
respective business domains and involve more stakeholders in working
towards success of a deserving cause. We already have alliance
partners like Apollo Pharmacy, Bajaj Allianz Insurance, ICICI Pru Life
Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA Time Industries),
Zenith. And we look forward to promote a sprit of co-operation,
collaboration, network, and partnering among other like-minded
associations. Welcome to the Aadhaar movement!

 Our Proposal for Promoting Education & Vocational Courses

from MEHTAB COMPUTERS Institute


 Variable period pilot with dedicated space in Barnala Aadhaar

location with good visibility and basic infrastructure.

 Terms & Conditions
 - Space and basic infra provided by us
 - Equipment/computers etc provided by the partner
 - Publicity done by Aadhaar
 - Teachers/training materials provided by partner
 - Revenue sharing basis - 65 (Institute): 35 (AADHAAR

33
 Aadhaar’s Structure

(Agri. section)

Store In-Charge (S I)

Technical Service Incharge (T S I)

Field Service Assistance (F S A)

Farmer (Target Customer)

34
Aadhar Retailing Limited operates as a rural retail chain selling farm outputs like wheat
and paddy. The company also provides farmers with solutions to problems regarding
their agricultural output, which includes what kind of crop can they plant and when,
along with techno-commercial suggestions to help them give a better output. It also offers
insurance products to cover their risk and supermarkets for their daily needs. The
company is based in India. Aadhar Retailing Limited formerly operated as a subsidiary of
Godrej Industries Ltd. As of March 31, 2008, Aadhar Retailing Limited operates as a
subsidiary of Pantaloon Retail (India) Ltd.,

Godrej And Future To Divest Stake In Aadhar Retailing To PE Players

Godrej Industries Limited may hold slightly less than 30% direct stake in the wholesale
venture of Future Group likely to be rolled out shortly. Godrej already has a 36% stake in
Aadhar Retailing Limited. Aadhar Retailing is the front-end entity for Future Group's
rural retail venture. Future Group’s CEO Kishore Biyani said Future Ventures India Ltd
will have 50% stake in Aadhar Retailing and the remaining stake will be held by Godrej
and private equity players. He said: "The initial plan was that Future Ventures will have
70% and Godrej 30%. But now, both Future Ventures and Godrej would offload part of
their stakes to PE players."

Rabo Fund Eyeing Future’s Cash & Carry Arm

Rabo Equity Advisors is reportedly going to sign a deal next week to acquire about 20%
stake in Rural Fairprice Wholesale, Future Group's cash-and-carry entity for rural
retailing and sourcing business, a person close to the deal said. Rabo Equity is acquiring
the stake held by Aadhar Retailing Limited. Rajesh Srivastava, CMD of Rabo Equity
Advisors, said: "We will announce our plans at the appropriate time." Future Group CEO
Kishore Biyani and A Mahendran, FMCG director of Godrej Group, who holds a 4%
stake in Aadhaar Retail, declined to comment on the deal.

Rabobank’s PE Fund Reportedly Eyes Stake In Aadhar

35
The offshore private equity (PE) fund of Coöperatieve Centrale Raiffeisen-
Boerenleenbank B. (Rabobank) is in discussions to acquire a stake in Aadhar Retailing
Limited. According to people close the situation, India Agri Business Fund may acquire
about 25% stake in Aadhar. Future Group is known to be in contact with a number of
private equity (PE) funds to raise money for expanding its businesses. It has been
reported that talks are being carried out by Rabo Equity Advisors. Rajesh Srivastava,
CMD of Rabo Equity Advisors said: "We are interested in several businesses the group is
in. However, that we are in discussion does not mean there is a deal on the table."

About GAVL: Godrej Agrovet Ltd (GAVL) is part of the Godrej Group of
Companies, which is a household brand in India with diversified business
interests. GAVL is Rs. 1000 Cr company closely associated to rural India
through various aspects of Agri Business like Animal Feeds, Agri Products,
Integrated Poultry Business, Oil Palm Plantation and Plant Biotechnology.

Godrej Aadhaar - A couple of years back Godrej Agrovet ventured into

services cum rural/semi-urban retailing with its 'Godrej Aadhaar' chain of
outlets. The initiative was driven by the single-minded objective of improving
the life and livelihood of Indian rural community. Currently there are 45
Godrej Aadhaar Centers operational across the country in the states of
Maharashtra (11), Gujarat (6), Punjab (18), Haryana (6), Andhra Pradesh (1),
Orissa (1), West Bengal (2) and Tamil Nadu (2).

Godrej Aadhaar - the Evolution: Godrej Aadhaar started off as an

initiative to provide Indian farming community with quality agri-inputs and
reliable agri-advisory services at the last mile, thus improving the
productivity and income levels. Now it has taken up a more holistic objective
of providing all the solutions to rural/ semi-urban India under one roof, viz.
agri-inputs, free technical guidance/agri advisory, consumer products and
services with focus to facilitate financial, healthcare, education and
entertainment services etc.
While agri-inputs and agri services still remain the core of Godrej Aadhaar,
availability of other consumer products and aggregation of various utility

36
services in an enhanced retail experience for the rural population would
make them the “transactional hubs” of rural/ semi-urban India.

Godrej Aadhaar - Expansion plan: With a first hand experience of the

rural consumer, the Aadhaar centers have now evolved into a complete retail
model. It has aggressive plans of becoming one of the largest agri-services
cum retail chain of the country with 50 Aadhaars by March 2007 and 1000
Aadhaars within next five to seven years.

Scope for Partnering: We believe that strategic partnership is the key

mechanism that would enable us to work towards a viable business in the
long term. Partnerships increase the level of sustainability because they
provide diversity in offering, expertise in respective business domains and
involve more stakeholders in working towards success of a deserving cause.
We already have alliance partners like Apollo Pharmacy, Bajaj Allianz
Insurance, ICICI Pru Life Insurance, HDFC Bank, Tata Sky, Maxima Quartz (PA
Time Industries), Zenith. And we look forward to promote a sprit of co-
operation, collaboration, network, and partnering among other like-minded
associations. Welcome to the Aadhaar movement!

Our Proposal for Promoting Education & Vocational Courses from

MEHTAB COMPUTERS Institute

Variable period pilot with dedicated space in Barnala Aadhaar

location with good visibility and basic infrastructure.

Terms & Conditions

- Space and basic infra provided by us
- Equipment/computers etc provided by the partner
- Publicity done by Aadhaar
- Teachers/training materials provided by partner
- Revenue sharing basis - 65 (Institute): 35 (AADHAAR)

37
 Aadhaar -
1. Batala
2. Ajnala
3. Mehtachowk
4. Tarantaran
5. Aadhaar
Goindwal - H
6.
1. Kapurthala
Sirsa
7.
2. Malsian
Karnal
8.
3. Dharamkot
Jundla
9.
4. Sultanpur
Hansi Lodhi
38
 STANDARD OPERATIONAL PROCEDURE

AADHAAR RETAILING LTD. - STANDARD AUDIT

MONTH: _____ _DATE:_ _______ STORE:

IN LINE = “1” POINT NOT IN LINE = “0” POINT MAX.POINTS:

S. CRITERIA POINTS

N
O
A REGISTERS
1 STAFF ATTENDANCE REGISTER
.

2 STAFF IN & OUT REGISTER

.

3 STAFF CASH DECLARATION REGISTER

.

4 OUTSOURCED MANPOWER ATTENDANC

.

5 STORE OPENING CLOSING REGISTER

.

6 STORE KEY HANDOVER REGISTER

.

7 CUSTOMER ENTRY TRACKER

.

8 CUSTOMER RETURN GATE PASS

.

9 UN CLAIMED BAGGAGE REGISTER

.

1 LOST & FOUND

0
.

1 STAFF PURCHASE REGISTER

1
.

39
1 DSP REGISTER
2
.

1 INWARDING REGISTER
3
.

1 OUTWARD REGISTER
4
.

1 GATE PASS – FORMAT

5
.

1 DAMAGE & EXPIRY REGISTER

6
.

1 SCARP REGISTER
7
.

1 SCARP SALES REGISTER

8
.

1 SIS GOODS MOVEMENT REGISTER

9
.

2 FREE GIFT REGISTER

0
.

2 PRODUCT EXCHANGE & RETURN REGISTER

1
.

2 OPERATIONS LOG BOOK

2
.

2 VISITOR'S REGISTER
3
.

2 FUEL REGISTER
4
.

2 GODOWN OPERATING REGISTER

5
.

2 GODOWN KEY LOG BOOK

6
.

40
2 AGRI DAILY TRANSACTION REGISTER
7
.

B
CHECK THE FOLLOWING
1. CHECK ALL PREVIOUS DAYS RECEIPTS & DOCUMENTATION COMPLETE
2. RECEIVING PROCEDURE IS ADHERED TO
3. FILING OF ALL DOCUMENTS ( STN / CHALLANS / INVOICES )
4. STAFF ATTENDANCE TIME (Attendance Register signed by all employees regularly)
(Check on employees on rolls are physically present or not in the store)
5. HOUSE KEEPING STANDARDS
a) FLOOR
b) SHELF
c) GODOWN
6. STAFF GROOMING STANDARDS (CHECK ID CARDS)
7. STORE OPENING/CLOSING PROCESS (SEALING OF LOCKS)
8. CHECK STOCK CONTROL LEDGER MAITENANCE
9. CHECK DATE & SIGNATURE ON OPERATION’s MANAGER VISIT
( As per Schedule ) Last Visit mr.sumant dt.06.07.10
C COMMERICAL INFORMATION ( Forwarded to State Accounts )
1. TOTAL PHYSICAL CASH ON HAND:
2. PETTY CASH -
3. SALES CASH - Cash Sales on Date 07.07.10
4. OTHER CASH (If Any) –
5. CASH DEPOSITED IN BANK ( For Previous Day’s Sales ) – ( Last Cash Deposit in
bank on08.07.10

TOTAL POINTS ACTUAL

PERCENTAGE OBTAINED

A Standing Operating Procedure: A set of

instructions covering those features of operations
which lend themselves to a definite or standardized procedure without
loss of effectiveness. Also called SOP. See FM 6-0 or FM [1]
[edit] Major Stages in the Preparation of an SOP Manual
The preparation of an SOP manual is an involved task and usually
involves three major stages:
1. Business systems and process study by intensive interaction with
process owners, managers, operatives, etc. to understand in detail the
tasks that are performed.
2. Preparation of the draft manual

41
3. Finalisation of the draft manual after discussion with users where
any errors are corrected and process improvement recommendations
are discussed and accepted or rejected.
[edit] Contents of a Standard Operating Procedure (SOP) Manual
This section describes the possible contents of an SOP manual for an
organization. Almost any type of organization – whether profit-making
or otherwise - could use this template since the manual is concerned
with business processes and operations.
1. Objectives of the SOP Manual

An SOP manual typically describes the standard operating procedures

(SOPs) followed for various business processes within an organization
Its main objectives are:
a. To systematically record all current business policies, processes and
procedures currently followed
b. To clearly indicate the flow of actions performed from beginning to
end of the process chain
c. To inculcate a culture of “CONTROL CONSCIOUSNESS” among
process owners and operatives
d. To observe shortcomings in these policies, processes and
procedures and make suitable recommendations for improvements in
the policies, process effectiveness, process efficiency, internal controls
and compliance, as applicable, and
e. To serve as a basis for disseminating knowledge on the above
among employees dealing with the relevant business functions, to
enable adequate training to be imparted to concerned personnel with a
view to making the business operations person-independent.
f. To act as a reference guide for Internal Audit, which assesses the
extent to which the SOP is complied with.

2. Organization Structure

This is a macro organization chart showing the hierarchical or reporting

relationships in the organization or business unit for which the manual
is prepared.

3. Summaries of Business Processes

Each business process (such as procurement, sales and marketing,

planning, quality assurance, production, maintenance, etc.) is
summarized, and each summary could contain the following
information:
a. Objectives of the business process
b. Micro organization (functional) structure chart

42
c. Duties and responsibilities of each designated person involved in the
process
d. List of tasks performed
e. Summary of Recommendations
The summary of recommended policies and procedures (e. above)
lists, for each business process, the (“As-is”) practice, its
risks/shortcomings, and the recommended (“To-Be”) practice, with its
expected benefits. Indicate along with each recommended practice the
area of improvement envisaged (Efficiency / Effectiveness / Control /
Compliance).

4. Detailed Chapters for Each Business Process

Each business process has a chapter containing the following sections:

a. Objectives of the business process
b. Summarized Block Diagram of process flow
c. Detailed Process Flowchart
d. Outputs and inputs of each step in the process to clearly bring out
the inter-dependencies between various functional units in the
organization and between the organization and its internal and
external stakeholders (customers. suppliers, etc.)
e. Detailed textual description of process steps in strict logical
sequence. The steps would include both computer-based and manual
procedures and are to be described precisely and in the correct
sequence. The text and the detailed process flowcharts should match.
f. The description in e. above should include descriptions of procedures
to handle exceptions, i.e., exceptional but anticipated events.
g. Internal controls employed in the procedures to ensure that they are
correctly and completely executed. Internal controls may be built into
computerized business application systems such as ERP systems (like
data entry, document preparation or report generation) or may be
administrative controls exercised in the non-computer procedures of a
business process.
h. Recommendations to improve the effectiveness, efficiency, control
or statutory compliance of policies, processes and procedures which
would replace the current policies, processes and procedures if
accepted by users (if thought essential, desirable or practical, as
applicable) after intensive discussions.
i. Exhibits of documents, reports, computer data entry screens, manual
registers, etc. that are referred to as inputs to and outputs from
specific procedures
j. Accounting flow clearly showing which financial accounting general
ledger accounts are operated wherever specific business transactions
need to be recorded in the books of account.

43
5. Appendices

One or more appendixes may be added at the end of the manual, but
at least the following are recommended:
a. List of inputs
b. List of outputs
c. Alphabetical glossary of terms
[edit] Military use
In military terminology SOPs describe a procedure or set of procedures
to perform a given operation or evolution or in reaction to a given
event. There is a popular misconception that SOPs are standardized.
However, the very nature of an SOP is that it is not standardized across
a large military element (such as a corps or division) but rather
describes the unique operating procedure of a smaller unit (such as a
battalion or company) within that larger element. "Standing" operating
procedures take effect until further notice, at which time the issuing
authority amend or dissolve them. Therefore, the military more
correctly uses the term "standing operating procedure" in lieu of
"standard operating procedure."
Unit members typically promulgate SOPs, based on unit experience
and local conditions. They are normally approved by the unit's Officer
Commanding or Commanding Officer.
SOPs often offer guidance where official doctrine does not cover a
situation, or treats a situation only in extremely broad terms. SOPs are
often used to provide practical detail to the some times high level
guidance of official doctrine.
Where official doctrine exists, SOPs will usually, at least in general
terms, adhere to the official doctrine. However SOPs may on occasion
ignore official doctrine, especially when a service/corps generally
regards official doctrine as out-of-date, inadequate or incorrect.
SOPs also differ from standing orders in that personnel may legally
disregard or interpret them, as required by the situation; however,
acting contrary to a posted command-signed SOP is generally
considered the same as violating a published order and punished
accordingly.
[edit] Clinical Research
In clinical research, the International Conference on Harmonisation
(ICH) defines SOPs as "detailed, written instructions to achieve
uniformity of the performance of a specific function". Organizations
involved in clinical research—whether pharmaceutical companies,
sponsors, contract research organizations, investigator sites, ethics
committees or any other parties—require SOPs to achieve maximum
safety and efficiency of the performed clinical research operations. All
people and sites involved in clinical studies (both at the sponsor and at

44
the investigative sites) must have appropriate SOPs in place in order to
conduct clinical research in compliance with current regulations.
In the United States of America, the ICH GCP (good clinical practice)
Step 5 Guideline (Section 3.2.2) also suggests that an Institutional
Review Board (IRB) have its own SOPs or written standard procedures.
[citation needed] This itself proves[citation needed] that the presence
of SOPs form an integral part of clinical trials at all levels.
Inspections target these quality documents since the most frequent
reported deficiencies during inspections are the lack of written SOPs
and/or the failure to adhere to them. The risk of GCP non-compliance is
high at organizations with a poor availability of clinical-research-
specific SOPs. The risk of GCP non-compliance is also high where SOPs
exist but the staff or the people for whom they were written lack
awareness of them or of the need for them.
The training of staff using SOPs therefore becomes very important, so
that staff actually become aware of why and how SOPs can play an
important role in fulfilling the ICH and other regulatory requirements.
[edit] Good business and manufacturing practice
An SOP is a written document or instruction detailing all steps and
activities of a process or procedure. These should be carried out[by
whom?] without any deviation or modification to guarantee the
expected outcome. Any modification or deviation from a given SOP
should be thoroughly investigated[by whom?] and outcomes of the
investigation documented[by whom?] according to the internal
deviation procedure.
All quality impacting processes and procedures should be laid out[by
whom?] in Standard Operating Procedures (SOPs). These SOPs should
form the basis for the routine training program of each employee. SOPs
should be regularly updated to assure compliance to the regulatory
requirements and the working practice. A minimum review schedule of
3 years is recommended[by whom?]. Changes of SOPs are in general
triggered by process or procedural changes / adjustments. The internal
site change-control procedure should manage these changes.
Part of the activity list of such changes should be to update the related
SOP. SOPs should be in place for all quality systems plus the specific
operational activities on site. The structure of an SOP System and the
total amount of individual SOPs should be carefully taken into
consideration[by whom?]. Too many SOPs could lead to a collapse of
the SOP System. System SOPs should not be mixed up to keep systems
and interaction between quality systems easy.[2]ISO 22000 essentially
requires the documention of all procedures used in any manufacturing
process that could affect the quality of the product.[3][edit]
Information-technology industry useThe information technology
industry uses the terms "Standard Operating Procedure" and "SOP"
interchangeably to describe a best-practice approach to executing

45
tasks related to the production and maintenance of hardware and
software, as well as to incident and change management. A number of
packages may aid in the automation of the execution of information-
technology SOPs for large enterprises, note for example Creekpath,
iConclude and Stratavia's Data Palette.

Competitors of aadhar retail ltd

Big retail charms small towns, inflation no problem

Posted by Barun Roy on August 27, 2008

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46
About

IndiaRetailBiz, an aggregator blog, attempts to aggregate the best of news, views,

research, trends, and every thing else that is relevant to India’s booming retail
business.India’s organised retail business, despite policy impediments and opposition
from political activists and traditional retailers, is growing by leaps and bounds, thanks
among others to favourable demographics, rising disposable incomes, growing economy,
and rapid urbanisation.We at IndiaRetaiBiz are working towards capturing every aspect
of the excitement associated with the evolving sector.We will always strive to provide
timely, interesting, useful, authentic, relevant and consistent information on Indian retail
sector. As India, being a part of the globe, can not operate in isolation, we will also
attempt to cover international news, views, and developments that in our opinion, in the
near or long term, may have bearing on India’s retail sector.IndiaRetailBiz is owned by
Delta Systems (P) Ltd- an Ahmedabad based management consultancy, which offers
professional consultancy services in the area of strategic enterprise management with
emphasis on strategic marketing and retail management.IndiaRetailBiz welcomes reader
comments, suggestions and contributions, which may kindly be communicated via
‘comment box’ provided below.We reserve the right to edit the contents of comments
before their publication. All information and views expressed in comments section are
that of its writer and IndiaRetailBiz neither subscibes nor is responsible for correctness or
otherwise of their content. As a matter of policy, we do not encourage comments that
seek to promote private business or advance personal career. In most situations, we will
also be not be able to provide additional information on a news item unless it is available
in public domain. For any such information, readers are requested to get in touch with
concerned entity directly either through its web site or through e-mail.

FROM HINDUSTAN TIMES

47
Shopping in a supermarket is no longer just for well-heeled metro citizens. About a year
after organised retailers hit the dusty trail to smaller towns, they are finding a broad
market base as value-for-money shopping meets youth power courting a new symbol of
enhanced lifestyle.

Even big villages may be ready for an expansion paralleling Wal-Mart’s US success, and
farmers are among a new tribe of smart shoppers, say industry insiders.

The Future Group’s value store Big Bazaar has been wooing customers in towns such as
Sangli and Alwar, and now covers 56 towns and cities across country. These include
places like Siliguri, Darjeeling, Meerut, Ambala, Ahmednagar, Bharuch, Anand, Hubli,
Udupi and Palakkad – hardly the kind of places you would associate with self-service or
credit card shopping.

“Smaller towns and cities in tier II and III category shows tremendous growth prospect
for the organised retail industry.

These are the towns where aspirations of the youth are high,” said Rajan Malhotra, Big
Bazaar’s chief executive officer.

“The competition will get hotter in the smaller towns and cities in about five years,” he
said.

As much as 70 per cent of Big Bazaar stores are in the so-called Tier II and III cities. The
retailer plans to add 45 to 60 stores in the current July-June financial year, most of them
in specks on the map.

Delhi-headquartered Vishal Retail who already has a presence in 80 cities plans to raise
this count to 120 cities by the end of this financial year.

48
“We are possibly the only retailer who has such a large footprint across the country. In
fact it’s not just Tier II cities, but we have a presence in Tier III and Tier IV cities as
well,” Manmohan Aggarwal, CEO, Corporate Affairs, Vishal Retail, told Hindustan
Times.

Inflation has not affected sales either.

“Inflation does have a marginal impact but as value retailers, it is at these times that we
can get the customer to come to our stores in droves because of the offers we give them,”
reasoned Aggarwal.

Vishal Retail plans to invest Rs 300 crore this year towards its expansion plans.

Aadhar Retailing Ltd, a small joint venture between the Future Group and Godrej, where
the former holds 70 per cent stake, has even courted villages – and shoppers include
farmers, a class rarely associated with supermarket shopping.

“Aadhar provides farmers with solutions to problems regarding their agricultural output,
which includes what kind of crop can they plant and when, along with techno-
commercial suggestions to help them give a better output. We also provide them with
insurance products to cover their risk and supermarkets for their daily needs,” said
Arvind Choudhury, CEO, Aadhar Retail.

But he adds that both the merchandise and price points are different in rural areas.

Vishal Retail’s Aggarwal said customer tastes at their stores in cities such as Udhampur,
Bhagwada and Badola were not very different from those in bigger cities such as Mumbai
where the retailer has set up stores in suburbs such as Dahisar and Mulund.

“Not only did we become the preferred destination for shopping for value seeking
customers but were also able to attract new customers through Food Bazaar’s Monthly
Bachat Bazaar (savings plan). We also took a conscious decision to not increase the cost
of our private label brands for the next six months,” Malhotra said.

49
 Easy Day,

Bharti Retail Ltd, a subsidiary of Bharti Enterprises, launched Easy Day, the company's
first food and grocery store, at Ludhiana in western Punjab. The stores cover an
approximate area of 2,500 to 4,500 square feet.

Retailers are on a constant lookout for newer and better ways to attract potential
customers, to increase their existing footfalls and to convert visitors into
customers. But, do retailers realise what encompasses the customer’s shopping
expectations? What motivates them to prefer one store over another? And what
influences their decision at the time of purchase? Is it value for money or in-store
experience?

Retailers, in a bid to drive in more footfalls and ensure consumer loyalty,

generally focus on in-store experience, especially if the target customer belongs to
A or A+ category in terms of socio-economic classification (SEC).

No doubt, in-store experience plays an important role in satisfying the discerning

50
shopper, but value for money cannot be ignored.

In a poll question, “Is the consumer more receptive to value-for-money deals

than in-store experience”, asked by IndiaRetailing, 78.95 per cent of the
respondents supported value for money, while just 7.37 per cent vouched for in-
store experience; the remaining 13.68 per cent preferred to stay neutral.

BVK Raju, director, Q-mart Retail Ltd, firmly believes it's in-store experience that
plays a more significant role than value-for-money deals. “Price proposition plays
a role to some extent, but in totality it is the experience that drives the customer.
Customer aspirations evolve continuously and so do their expectations. Once the
focus is only on value, retaining customer loyalty becomes a big challenge.
Retailers must, therefore, focus more on retail experience, rather than on price,
to competitively differentiate themselves.”

Raju further emphasises, “If the shopping experience is pleasant and enjoyable,
the customer will come back, irrespective of any deals... the total shopping
experience is what will drive the business in the long run.”

Siddharthan Sundaram, director, retailer services, The Nielsen Company,

however, does not agree with Raju. “During the economic slowdown in 2008-09,
consumers were looking for offers and promotions and the expectation continues
even today. As a result, retailers have been announcing new promos/schemes
regularly to attract more footfalls and have started focusing on introducing store
brands at a lower price (than the established brands). The in-store experience
may play a role if the store is new and big, but that is not consistent,” he reasons.

Commenting on the poll question, Esha Anand, head – marketing and visual
merchandising, Hypercity Retail (India) Pvt Ltd, says, “It depends on the
customer segment you are targeting. SEC A, B customers are more
experimentative, cosmopolitan and progressive. They have aspirations for a
better lifestyle. Increasing exposure to international trends and lifestyle, coupled
with rising levels of affluence, has fuelled the desire to move up the social ladder."

Vishnu Vardhan, head operations, Ruci & Idoni, agrees. “It depends on who we
are targeting – customers belonging to A and A+ categories don’t just shop, they
want to enjoy shopping; when they go to the market, they look for a comfortable,
hassle-free place to enjoy shopping.”

Stressing that there are many customers who put value first and are limited by
the extent to which they can spend, Dev Amritesh, senior vice-president,
marketing, Domino’s Pizza India, says, “We must recognise that in some
occasions, categories and in certain mood states, customers attach a lot of
premium to experience. The trick is to know what these occasions, categories and
mood states are, in order to exploit them.”

So, clearly, as experts point out, one doesn't take precedence over the other. Not

51
all customers are value conscious; some of them are willing to spend more in
order to get hygiene, good customer service, or simply a favourable in-store
experience. Both, therefore, have their roles to play, and which one to focus on
depends solely on the targeted customer segment.

Modern Food Retail: A tough balancing act

Diwakar Kumar
20 Jul 2009

The story has been read 1381 times.

The primary challenge in food retail, no doubt, is its supply chain, which is
making things difficult for retailers and food processors to procure quality
produce at competitive costs directly from farmers in India. Last year at the India
Retail Forum held in Mumbai, this prime challenge was centrestage for retailers
to sidestep efficiency bottlenecks of the modern marketplace. The Indian supply
chain for fresh and processed food is extremely poor and characterised by
panoptic wastage and poor handling. A food retailer’s supply chain must be short
and tightened by professionally-drawn efficient practices to avoid long chain of

52
products from farm to fork, failure of which costs a retailer not just efficiency and
just-in-time inventory control, but also results in a higher cost-of-operations
burden.

Last week, we posted an open question for our audience to poll on, on our sister
website www.imagesfood.com -- Food retailers should adopt the following
strategy to stay out of financial trouble in a slump: 1. Cut costs, 2. Increase
revenue, 3. Combination of the two. Over 19.05% of the respondents supported
cost cutting, 33.33% were in favour of increasing revenues and 47.62% polled for
a combination of the two strategies.

Food safety and security are essential concerns for grocery retailers of all sizes.
But the main challenge lies in boosting revenue, even as the cost of operations
rise and sales appear to be slowing. A good retailer respects the value of always
being in-stock, which in turn depends on highly efficient supply chain, inventory
management and demand forecasting. In many cases, maximising square foot
returns can entail additional spends – on upgraded cold chain systems,
technology-enabled SCM, shopper data mining or hosting promotional events in
alliance with suppliers, among on others.

“Rather than trying to fit the Sunil Sanklecha, managing partner of the
world to our business model, we Chennai-based supermarket chain Nuts ‘n’
need to fit the business model toSpices, points out that every penny a retailer
the real world that exists." spends is out of profits, but every penny of the
--Devangshu Dutta, chief revenue is not profit. Cutting cost while
executive, Third Eyesight. simultaneously increasing the revenue is the
mantra of any business model. “To increase the
revenue is every businessman’s challenge;
retailers must rework their strategies very frequently as today’s strategy may not
work after one year. One has to constantly work on strategising the business
model in alignment with market shifts,” he suggests.

He further adds, “We must also understand that cost cutting does not work
everywhere; cutting down on the basic infrastructure and basic customer services
is a no-no. We need to cut costs only in the areas where the input is not

53
productive.”

In many cases, business projections are also unrealistically high; there are
locations where the expected change-over from the kirana to modern retail has
been over-estimated, and the business has been modelled with costs that are in
line with the over-expectation of revenue.

In his Union Budget presentation earlier this month, India’s Union Finance
Minister (FM) Pranab Mukherjee underscored the urgency of reviving growth, by
identifying that the country’s immediate economic challenge is to return to nine
per cent GDP growth, failure of which will cause considerable loss of revenue for
the government and will affect the pace of job creation in certain sectors of the
economy and the investment sentiments, all features of the domestic economy in
the last two quarters of year 2008-09.

In an attempt to ensure balanced and equitable development, Mukherjee has

widely increased the allocations to social development schemes, which would
play a vital role in boosting rural development and demand.

In the context of the nation's food security, the declining response of agricultural
productivity to increased fertiliser usage in the country is a matter of concern.
And the decision to move from a product-based fertiliser subsidy mechanism to a
nutrient-based one and the move towards a market pricing regime for petroleum

54
products should increase India’s economic efficiency. "To ensure balanced
application of fertilisers, the Government intends to move towards a nutrient
based subsidy regime instead of the current product pricing regime. It will lead to
availability of innovative fertiliser products in the market at reasonable prices.
This unshackling of the fertiliser manufacturing sector is expected to attract fresh
investments in this sector. In due course it is also intended to move to a system of
direct transfer of subsidy to the farmers," he announced.

Assuming that the FM’s rural wishlist finds realisation, will his announcements
succeed in spurring demand from India’s non-urban markets? If yes, how long
will it be before measurable gains start to kick in?

Responding to our weekly opinion poll question, Union Budget 2009-10 will
boost rural consumption in -- a) Short term, b) Medium term c) Long term on the
website, 53.57% of the respondents opted for short term, 35.71% for medium
term, and 10.72% polled for long term.

Clearly, the majority of visitors to our site expect the FM’s announcements to
result in rural prosperity fairly rapidly.

The government has given more emphasis on domestic consumption so that rural
Indians may one day be turned into valuable consumers. "With more money in
the hands of rural Indians, the opportunity for rural retail is brighter than ever.
All such products and services that improve productivity and/ or enhance rural
incomes will sell well. These could be agri inputs, lighting solutions, education
products, mobile phones, transportation, health services etc. With increased
incomes, products that improve quality of life – branded FMCG and household
appliances – also sell well," noted S Sivakumar, Chief Executive of Agri
Businesses, ITC Ltd.

FM remained stuck to the UPA government's ‘Inclusive Growth’ theme by

continuing its focus on the Aam Aadmi, but has done little to cheer Corporate
India and FMCG industry in particular. While on the one hand the government
has left untouched key matters like corporate tax, it has, on the other hand, hiked
Minimum Alternate Tax (MAT) which would lead to higher tax outgo and erode
the benefits accrued from the removal of Fringe Benefit Tax (FBT). "The

55
government's move to reinforce its intent on introducing national-level Goods
and Services Tax (GST) by April 1, 2010 is a welcome step, but there's still no
clarity on the road forward. While Mukherjee has said that consensus is emerging
among the various stakeholders, what's missing is clarity on how various duties
would be merged with GST, and a clear schedule of dates for its smooth
implementation," said Amit Burman, Vice Chairman, Dabur India Ltd.

Commenting on the same Viney Singh, managing director of Max Hypermarkets

India Pvt. Limited says, "The FM’s announcement towards inclusive development
-- PMAGY, NREGA, SGSY-- in the 2009-10 budget should definitely boost rural
consumption."

"The extent of the boost will largely be a function of the efficiency and timeliness
with which these schemes are implemented. The past record on these counts has
been quite dismal," he further adds.

"The success of the monsoons will be another important influencer of rural

consumption. The progress of the monsoons has so far been poor, but there is
still some time wherein a recovery is possible."

The Government has announced a series of measures -- interest subvention on

farm loans, increase in allocation for NREGS by 144%, increase in target for
agricultural flow, Rs 20 billion earmarked for rural housing scheme in NHS,
allocation under the Indira Awas Yojana increased by 63% and under the RGGVY
increased by 27% -- to increase rural income.

Referring to these announcements, Thomas Varghese, CEO, Aditya Birla Retail

says, "These measures will result in increased money supply in rural areas as well
as sectoral growth and hence boost rural consumption in the short to medium
term. Increased credit flow is also likely to lead to stabilisation of rural demand,
which will also result in more stable consumption patterns."

"The government has ensured more liquid cash and rural India is one of the
particular areas where I would prefer to tack my business in coming days. So, I
believe that the current budget will boost the rural sector which will bring

56
remarkable change in the long term," concludes Ambeek Khemka, Group
President, Vishal Retail.

Overview

"Hariyali Kisaan Bazaar" - a rural business centre, is a pioneering micro level effort,
which is creating a far-reaching positive impact in bringing a qualitative change and
revolutionizing the farming sector in India. It is also an example of how well meaning
corporates can contribute to development of agriculture by building sustainable business
models.

DCM Shriram Consolidated Ltd. (DSCL), capitalising its over 35 years of experience in
the agri-input markets & first hand knowledge of Indian farmers, is setting up a chain of
centres aimed at providing end-to-end ground level support to the Indian farmer &
thereby improving his "profitability" & "productivity".

The key constraints of the Indian farming sector, being addressed by "Hariyali" are:

• Lack of last mile delivery mechanism of modern agriculture know-how &

practices.
• Lack of availability of critical good quality agri-inputs.
• "Middlemen" driven farmer interface.
• High cost credit.
• Lack of direct access to buyers of varied & high value crops.

Hariyali Kisaan Bazaar

The "Hariyali Kisaan Bazaar" chain, seeks to empower the farmer by setting up centres,
which provide all encompassing solutions to the farmers under one roof.

Each "Hariyali Kisaan Bazaar" centre operates in a catchment of about 20 kms. A typical
centre caters to agricultural land of about 50000-70000 acres and impacts the life of
approx. 15000 farmers.

57
Each centre is engaged in:

• Bridging the last mile: Provides handholding to improve the quality of agriculture
in the area. Provides 24X7 support through a team of qualified agronomists based
at the centre.
• Quality Agri-Inputs: Provides a complete range of good quality, multi-brand agri
inputs like fertilizers, seeds, pesticides, farm implements & tools, veterinary
products, animal feed, irrigation items and other key inputs like diesel, petrol at
fair prices.
• Financial Services: Provides access to modern retail banking & farm credit
through simplified and transparent processes as also other financial services like
insurance etc.
• Farm Output Services: Farm produce buyback opportunities, access to new
markets & output related services.
• Other Products and Services:Fuels, FMCG, Consumer Goods and
Durables,Apparels etc.

These centers provide the much needed respect/dignity and freedom to the Indian farmer.
In the near future, Hariyali Kisaan Bazaars plan to move beyond agri to meet the other
needs of farmers as customers.

Top

Technology as an important enabler

IT has been a critical backbone to the chain of centres. It is being used to provide online
support on latest technical advancements, weather forecasts, mandi (market) prices, fair
& transparent billing to farmers as well as in maintaining extensive farmer databases with
micro information about the farmers' field to provide customized service to the farmers.

Farmer Response

So far over 302 Hariyali outlets hav been set up across eight states- Haryana, Punjab,
Uttar Pradesh, Rajasthan, Chattisgarh, Madhya Pradesh,Maharashtra and Andhra Pradesh

The ground-level agri-support is already yielding results in the farmer's fields. Whether it
is adoption rate of high yielding seeds, right doses of fertilization, productivity of cattle-

58
feed, moisture conservation measures, adoption of new crops/allied occupations or
adoption of new technologies like zero tillage, the farmers in catchment of Hariyali
centres are already way ahead of the national averages.

Future Plans

Hariyali Kisaan Bazaar has plans to rapidly scale up the operations & create a national
footprint covering all the major agricultural markets of the country. This would mean
catering to cultivable land of over 30 million acres and touching the lives of over 10
million farmers

. We regard our agri business as a key growth driver for us. We believe that the
agricultural sector is a high potential area where we, with our expertise and strengths
accumulated over decades of presence in this sector, can add considerable value and
capitalise on emerging opportunities. Over the years through our various agri-businesses
we have developed extensive working relationship and knowledge about the farmers.

Our agri business offerings comprise agricultural inputs, both manufactured and
merchandised, outputs, distribution and services. Our agri-inputs include Urea, Seeds and
Pesticides manufactured by us. Additionally, we are also engaged in the marketing of a
range of other agri inputs SSP, and other nutrients such as Zinc Sulphate, soluble
fertilisers etc.

In terms of agri outputs, we manufacture and market sugar and its by-products –
Molasses and Bagasse. With the objective to move towards providing total “ Solutions”
to the farmers, we have initiated a “ Rural Retailing” initiative recently which we believe
holds immense promise in terms of untapped opportunities, scalability and growth
potential.

Being implemented under our “Hariyali Kisaan Bazar” initiative, we offer multiple
products and services to the rural and farming community, including agri inputs, diesel
and petrol ( under alliance with BPCL) ,consumer goods, durables, apparels, insurance,
agronomy advisory, credit, and contract farming as a part of this initiative. It is proposed
to extend the offerings to other products and services over a period. All of our agri
business activities are supported by a strong “Shriram” brand equity that our products
enjoy in the marketplace.

All our agri business units are supported by a robust and extensive distribution and retail
network. From about 3,000 retail outlets five years ago, we now have more than 6,000
retailers where all our manufactured and merchandised products are available to the

59
country's farming community. We also have around 900 wholesalers to distribute our agri
products, a large number of these have been with us for 3-4 decades.

We offer online agronomy services to farmers through 100 centres – Shriram Krishi
Vikas Kendras – established by us across the country that operate with the objective to
increase farmer profitability by providing them effective agronomy services. We have a
team of 102 agricultural graduates, recruited from local institutions and universities, and
15 development officers who work along with farmers to assist them in their endeavours.
To ensure that our agronomists provide knowledgeable and unconditional advice, we
have not assigned any sales responsibilities to our agronomists. The Shriram Krishi Vikas
Kendras help upgrade farming methods and also provide assistance to the farming and
rural community in the educational, hygiene and sanitation needs of the community as
well as health care support for animal husbandry. Such initiatives have made us one of
the most reliable and trusted partners of the Indian agri community.

60
 Strengths, Weaknesses, Opportunities and
Threats (SWOT).
SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.

In SWOT, strengths and weaknesses are internal factors.

For example:

A strength could be:

• Your specialist marketing expertise.

• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds value to your product or service.

A weakness could be:

• Lack of marketing expertise.

• Undifferentiated products or services (i.e. in relation to your competitors).
• Location of your business.

61
 • Poor quality goods or services.
• Damaged reputation.

In SWOT, opportunities and threats are external factors.

For example:

An opportunity could be:

• A developing market such as the Internet.

• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer improved profits.
• A new international market.
• A market vacated by an ineffective competitor.

A threat could be:

• A new competitor in your home market.

• Price wars with competitors.
• A competitor has a new, innovative product or service.
• Competitors have superior access to channels of distribution.
• Taxation is introduced on your product or service.

SWOT Analysis of Aadhar retail

Strengths

• Aadhar retail is a powerful retail brand. It has a reputation for value for money,
convenience and a wide range of products all in one store.
• Aadhar retail has grown substantially over recent years, and aadhar has
experienced good expansion.
• The company has a good competence involving its use of information technology
to support its national logistics system. For example, it can see how individual
products are performing store-by-store at a glance. IT also supports AADHAR
RETAIL's efficient procurement.
• A focused strategy is in place for human resource management and development.
People are key to AADHAR RETAIL business and it invests time and money in
training people, and retaining a developing them.

62
 Weaknesses

• AADHAR RETAIL is the smallest grocery retailer rural area and control of its
empire, despite its IT advantages, could leave it weak in some areas due to the
huge span of control.
• Since aadhar sell products across many sectors (such as clothing, food,non food or
stationary etc), it may not have the flexibility of some of its more focused
competitors.

Opportunities

• To take over, merge with, or form strategic alliances with other retailers, focusing
on more rural area or some middle class specific markets such as Region.
• The stores are currently only trade in a relatively small number of cities.
Therefore there are tremendous opportunities for future business in expanding
consumer markets, rural Indian area.
• New locations and store types offer aadhar opportunities to exploit market
development. They diversified from large super centres, to local and mall-based
sites.
• Opportunities exist for aadhar to continue with its current strategy of small, super
centres in mostly rural area

Threats

• Being number one means that you are the target of competition, locally and
globally.
• Being a global retailer means that you are exposed to political problems in the
countries that you operate in.
• The cost of producing many consumer products tends to have fallen because of
lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to
low-cost regions of the World. This has lead to price competition, resulting in
price deflation in some ranges. Intense price competition is a threat.

Introduction

Retailing includes all activities involved in selling goods or services directly to final
consumers for personal, non-business use. A retailer or retail store is any business
enterprise whose sales volume comes primarily from retailing.

Any organization selling to final consumers – whether a manufacturer, wholesaler or

retailer- is doing retailing. It does not matter how the goods or services are sold (by
person, mail, telephone, vending machine or internet) or where they are sold (in
store, on the street, or in consumer's home).

63
There are 3 types of retailers:

1. Store retailer
2. Non Store retailer
3. Retail Organization

From the assortment point of view, Store retailers* are of 5 types:

1. Specialty Store
2. Departmental Store
3. Super market
4. Convenience Store
5. Discount Store

* = Definition of the store retailer types is provided in the glossary.

From customers service point of view:

1. Self-service retailing: Many customers are willing to carry out their own locate-
compare-select process to save money.

2. Self-selection retailing : Customers find their own goods, although they can ask
for assistance.

3. Limited service retailing: These retailers carry more shopping goods, and
customers need more information and assistance. The stores also offers services
such as credit & merchandise-return privileges.

4. Full service retailing: Salespeople are ready to assist in every phase of the
locate-compare-select process.

Although majority of goods & services is sold through stores, non-store retailing has
been growing much faster than store retailing.

Major non-store retailer types:

1. Direct Selling: It deals with door-to-door or at home sale parties i.e. it involves
one-to-one or one-to-many selling.
Example > Eureka Forbes, Amway, Mary Kay Cosmetics.

2. Automatic Vending: Example > ATM

3. Buying services: Is a store less retailer serving a specific clientele-usually

employees of large organizations-who are entitled to buy from a list of retailers who
have agreed to give them discounts in return for membership.
Example > Amazon.com

4. Direct marketing: It involves direct response marketing. The different forms of

direct marketing are: Direct mail, catalog marketing, telemarketing, television direct
response marketing and electronic shopping.
Example: Dell Computers

64
Retail Organization mainly falls into 4 major categories:

1. Corporate chains: Example > Pantaloons, Westside

2. Retail Co-operative: Example > Amul, Samavaika, Khadi Gram Yudog
3. Consumer Co-operative: Example > Apna Bazar
4. Franchise Organization: Example > Monginis, Café Coffee day.

Global Scenario

Retail stores constitute 20% of US GDP & is the 3 rd largest employer segment in
USA. China on the other hand has attracted several global retailers in recent times.
Retail sector employs 7% of the population in China. Major retailers like Wal-Mart &
Carrefour have already entered the Chinese market. In the year 2003, Wal-Mart &
Carrefour had sales of US $ 70.4 Crore & US $ 160 Crore respectively.

The global retail industry has traveled a long way from a small beginning to an
industry where the world wide retail sales is valued at $ 7 x 10 5 Crore. The top 200
retailers alone accounts for 30 % of the worldwide demand. Retail turnover in the EU
is approximately Euros 2,00,000 Crore and the sector average growth is showing an
upward pattern. The Asian economies (excluding Japan) are expected to grow at 6%
consistently till 2005-06.

On the global Retail stage, little has remained same over the last decade. One of the
few similarities with today is that Wal-Mart was ranked the top retailer in the world
then & it still holds that distinction. Other than Wal-Mart's dominance, there's a little
about today's environment that looks like the mid-1990s. The global economy has
changed, consumer demand has shifted & retailers' operating systems today are
infused with far more technology than was the case six years ago.

e= estimate.

Indian Scenario

Retailing in India is the largest employer after agriculture. It employs almost 7% of

the total work force in India and has a contribution of 14% to the national GDP. In
the year 2004 , the size of Indian organized retail industry was Rs 28000 Crore,
which was only 3% of the total retailing market. Organized retailing is projected to
grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs
1,00,000 Crore by 2010. The contribution of organized retail is expected to rise from
3% to 9% by the end of the decade. The projection for the year 2005 is Rs 35000
Crore.

Though with a population of a billion and a middle class of 300 million (upper middle
class= 40, Middle class =150 & lower middle class = 110), organized retailing is still
at its infancy in India. The great Indian middle class is estimated to grow to over 60
Crore by 2010 making India one of the largest consumer markets of the world. It is
projected that by the year 2010, 65% of the Indian population will be in the age
group of 10-49 years, which makes the scenario even more attractive. India has the
largest retail network with 1.2 Crore outlets but only 4% of them are larger than
500 sq. feet in size. USA on the other hand has 9 Lakh outlets catering to more than
13 times the total retail market size of India. Thus India has the highest number of
outlets per capita in the world with a widely spread retail network but with the lowest

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per capita retail space (@ 2 sq.ft. per person). AT Kearney has ranked India as the
2nd most attractive retail market after Russia, in its Global Retail Development
Index 2004 report.

Retailing, one of the largest sectors in the global economy, is going through a
transition phase in India. For a long time, the corner grocery store was the only
choice available to the consumer, especially in the urban areas. This is slowly giving
way to international formats of retailing.

Let us look at the evolution process:

Detailing reasons why Indian organized retail is at the brink of revolution, the
IMAGES-KSA report says that the last few years have seen rapid transformation in
many areas and the setting of scalable and profitable retail models across categories.
Indian consumers are rapidly evolving and accepting modern formats
overwhelmingly. Retail Space is no more a constraint for growth. India is on the
radar of Global Retailers and suppliers / brands worldwide are willing to partner with
retailers here. Further, large Indian corporate groups like Tata, Reliance, Raheja,
ITC, Bombay Dyeing, Murugappa & Piramal Groups etc and also foreign investors
and private equity players are firming up plans to identify investment opportunities
in the Indian retail sector. The quantum of investments is likely to skyrocket as the
inherent attractiveness of the segment lures more and more investors to earn large
profits. Investments into the sector are estimated at INR 2000 - 2500 Crore in the
next 2-3 years, and over INR 20,000 Crore by end of 2010.

Few of India's top retailers are:

1. Big Bazaar-Pantaloons: Big Bazaar, a division of Pantaloon Retail (India) Ltd is

already India's biggest retailer. In the year 2003-04, it had revenue of Rs 658.31
crores & by 2010; it is targeting revenue of Rs 8,800 Crore.

2. Food World : Food World in India is an alliance between the RPG group in India
with Dairy Farm International of the Jardine Matheson Group.

3. Trinethra : It is a supermarket chain that has predominant presence in the

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southern state of Andhra Pradesh. Their turnover was Rs 78.8 Crore for the year
2002-03.

4. Apna Bazaar : It is a Rs 140-crore consumer co-operative society with a

customer base of over 12 lakh, plans to cater to an upwardly mobile urban
population.

5. Margin Free : It is a Kerala based discount store, which is uniformly spread

across 240 Margin Free franchisees in Kerala, Tamil Nadu and Karnataka.

Wholesale trading is another area, which has potential for rapid growth. German
giant Metro AG and South African Shoprite Holdings have already made headway
in this segment by setting up stores selling merchandise on a wholesale basis in
Bangalore and Mumbai respectively. These new-format cash-and-carry stores attract
large volumes from a sizeable number of retailers who do not have to maintain
relationships with multiple suppliers for all their needs.

SWOT Analysis

A SWOT analysis of the Indian organized retail industry is presented below:

Strength:

1. Retailing is a " technology-intensive" industry. It is technology that will help the

organized retailers to score over the unorganized retailers. Successful organized
retailers today work closely with their vendors to predict consumer demand, shorten
lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart
pioneered the concept of building competitive advantage through distribution &
information systems in the retailing industry. They introduced two innovative
logistics techniques – cross-docking and EDI (electronic data interchange).

2. On an average a super market stocks up to 5000 SKU's against a few hundreds

stocked with an average unorganized retailer.

Weakness

1. Less Conversion level : Despite high footfalls, the conversion ratio has been
very low in the retail outlets in a mall as compared to the standalone counter parts.
It is seen that actual conversions of footfall into sales for a mall outlet is
approximately 20-25%. On the other hand, a high street store of retail chain has an
average conversion of about 50-60%. As a result, a stand-alone store has a ROI
(return on investment) of 25-30%; in contrast the retail majors are experiencing a
ROI of 8-10%.

2. Customer Loyalty: Retail chains are yet to settle down with the proper
merchandise mix for the mall outlets. Since the stand-alone outlets were established
long time back, so they have stabilized in terms of footfalls & merchandise mix and
thus have a higher customer loyalty base.

Opportunity

1. The Indian middle class is already 30 Crore & is projected to grow to over

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60 Crore by 2010 making India one of the largest consumer markets of the world.
The IMAGES-KSA projections indicate that by 2015, India will have over 55 Crore
people under the age of 20 - reflecting the enormous opportunities possible in the
kids and teens retailing segment.

2. Organized retail is only 3% of the total retailing market in India. It is estimated to

grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010.

3. Percolating down : In India it has been found out that the top 6 cities contribute
for 66% of total organized retailing. While the metros have already been exploited,
the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of
which has so far been concentrated in the metros is beginning to percolate down to
these smaller cities and towns. The contribution of these tier-II cities to total
organized retailing sales is expected to grow to 20-25%.

4. Rural Retailing: India's huge rural population has caught the eye of the retailers
looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga"
offering a diverse range of products from FMCG to electronic goods to automobiles,
attempting to provide farmers a one-stop destination for all their needs." Hariyali
Bazar" is started by DCM Sriram group which provides farm related inputs &
services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar"
which offers agricultural products such as fertilizers & animal feed along with the
required knowledge for effective use of the same to the farmers. Pepsi on the other
hand is experimenting with the farmers of Punjab for growing the right quality of
tomato for its tomato purees & pastes.

Threat

1. If the unorganized retailers are put together, they are parallel to a large
supermarket with no or little overheads, high degree of flexibility in merchandise,
display, prices and turnover.

2. Shopping Culture: Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends and largely confined to
window-shopping.

Conclusion

To conclude, it can be said that though the global retail industry has reached its
maturity, the Indian retail industry is still at its infancy. But with the huge
potentiality existing in the Indian market, it is expected to grow in leaps and bounds
in the near future.

Instead of comparing the total global retail industry with the Indian retail industry,
lets compare Wal-Mart alone with the Indian retail industry & put forward few
interesting facts:

1. Retail Sales of Wal-Mart for the year 2003 was US $ 25,632.9 Crore; higher than
the size of Indian retail industry.

2. The size of any Wal-Mart store is much higher than the size of any existing
shopping mall in India.

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3. Wal-Mart has over 4,800 stores, which is unparallel to any of the India's large
format store.

4. New stores opened annually by Wal-Mart are about 420, much higher than all
organized Indian retailers put together.

5. The sales per hour of $2.2 Crore are incomparable to any retailer in the world.

6. Wal-Mart has around 30,000 suppliers throughout the world and more than
600,000 SKU's on its web site, a number that cannot be compared.

7. Daily customers are about 1.57 Crore (almost equivalent to Mumbai's entire
population).

8. Time between each Barbie Sale at Wal-Mart is just two seconds (same rate at
which babies are produced in India!)

Overall, it can be said that " Retail Industry" in India will emerge as one of the best 5
Business sectors in this decade.

Glossary

Specialty Store: Narrow product line with deep assortment, viz apparel stores,
book stores etc. A clothing store would be a single line store, men's clothing store
would be limited line store & men's custom-shirt store would be a super specialty
store.
Example: The limited, The Body Shop.

Departmental Store: Several product lines-typically clothing, household goods,

home furnishings- with each line operated as a separate department managed by
specialist buyers or merchandisers.
Example: Sears, Bloomingdale's.

Supermarkets: Relatively large, low-cost, low-margin, high volume, self-service

operation designed to serve total needs for food, laundry & household maintenance
products.
Example: Kroger, Safeway.

Convenience Stores: Relatively small store located near residential area, open long
hours, seven days a week and carrying a limited line of high-turnover convenience
products at slightly higher prices.
Example: 7-Eleven, Circle K.

Discount Store: Standard merchandise sold at lower prices with lower margins and
higher volumes. True discount stores regularly sell merchandise at lower prices and
offer mostly national brands.
Example: Wal-Mart, Kmart.

Off-price retailer: Merchandise bought at less than regular wholesale prices & sold
at less than retail; often-leftover goods, overruns and irregulars obtained at reduced
prices from manufacturers or other retailers.

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Factory outlets are owned and operated by manufacturers and normally carry the
manufacturer's surplus, discontinued or irregular goods.
Example: Mikasa(dinnerware), Dexter (shoes)

Independent off-price retailers are owned & run by entrepreneurs or by divisions of

larger retail corporations.
Example: T.J.Maxx, Filene's Basement.

Warehouse clubs (or wholesale clubs) sell a limited selection of brand name grocery
items, appliances, clothing and other goods sold at deep discounts to members who
pay an annual membership fees. Warehouse clubs serve small businesses & group
members from government agencies, nonprofit organizations and some large
corporations. They operate in huge, low-overhead, warehouse like facilities & offer
few frills.They offer rock bottom prices- typically 20% to 40% below super market
and discount stores prices but make no home deliveries and accept no credit cards.
Example: Sam's Clubs, Max Clubs.

Superstore: Averages 35,000 square feet of selling space traditionally aimed at

meeting consumers' total needs for routinely purchased food and non food items.
Usually offer services such as laundry, dry cleaning, shoe repair, check cashing & bill
paying.

A new group called "category killers" carries a deep assortment in a particular

category & a knowledgeable staff.
Example: Borders books & Music, IKEA.

Combination stores are a diversification of the supermarket store into the growing
drug-and-prescription field. Combination food & drug stores average 55,000 square
feet of selling space.
Example: Jewel & Osco stores.

Hypermarkets range between 80,000 and 220,000 square feet and combine
supermarket, discount & warehouse retailing principles. Product assortment goes
beyond routinely purchased goods & includes furniture, large & small appliances,
clothing items and many other items. Bulk display & minimum handling by store
personnel with discounts offered to customers who are willing to carry heavy
appliances and furniture out of the store. Hypermarkets originated in France.
Example: Carrefour and Casino (France), Pyrca, Continente and Alcampo (Spain),
Meijer's (Netherlands).

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OBJECTIVES OF STUDY
"Any task without sound objectives is like Tree without roots". Similarly in case of any
research study undertaken, initially the objectives of the same are determined and
accordingly the further steps are taken on. A research study may have many objectives
but all these objectives revolve around one major objective which is the focus of the
study. In this study, the focus is on the emergence of retail markets as the most happening
market on which every marketer has an eye. And so this study will be based on studying
the emergence of retail market in various contexts.
The following are the objectives of this research study :-

♦ To study the present scenario of rural retail marketing in India.

♦ To study aadhar products and services
♦ To analyze the marketing strategies of aadhar and suggest new strategies

♦ To make a comparative study of aadhar in rural market

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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. In it we
study the various steps that are generally adopted by a researcher in studying his research
problem along with logic behind them.

TYPES OF RESEARCH
1 Descriptive research
2 Analytical research
3 Qualitative research
4 Quantitative research

DESCRIPTIVE OR EX-POST FACT RESEARCH:-

To conduct the research work accurately, we conducted the descriptive research. It
includes surveys & fact-finding inequity of different kinds.
ANALYTICAL RESEARCH: _
In it we have to use the fact & information already available & analyses of these to make
an evaluation of project.
QUALITATIVE RESEARCH:-
In selecting the appropriate research design of the study & the type of data needed, the
choice of data collection techniques is four grouped.
It is done for:-
1Consumer needs

2 Consumer’s preferences for brand

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3In depth understanding of consumers
4Availability for consumer

QUANTITATIVE RESEARCH:-
Quantitative research is obtained to rate the different aspects on parameter i.e. image of
brand, brand equity, expectation of customers, awareness among customer for scheme,
switch ability of customers etc.

METHODOLOGY:-
The project include both primary & secondary source of data. The data collected through
these sources has organized, analyzed & interpret so as to draw conclusion &to arrive at
appropriate recommendations.
1. A primary source of data includes the personal interview from various accounts
officers in the enterprise.
2. The secondary sources of data include annual report, website of Aadhaar Retailing Ltd.
Company which contains the details which is helpful for making my project report.

STEPS IN RESEARCH METHODOLOGY:-

1. Collection of data
2. Organisation of data
3. Presentation of data
4. Analysis of data
5. Interpretation of data

COLLECTION OF DATA:-

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 Both the primary & secondary data has been collected from the market & company. The
company provided the secondary data & primary data is collected through the medium of
face-to-face interaction & interview from various persons in the enterprise.
ORGANISATION OF DATA:
Data once collected the further processing is done, the data collected by me are carefully
done through in a useful & relevant manner &properly organized.
PRESENTATION OF DATA:-
The data collection is of no use unless & until it is given in the presentable form. Thus
after proper organization the data is given in presentable form with the complete details,
with the help of bar diagram, pie carts etc.

ANALYSIS OF DATA:-

The data is carefully analyzed keeping in the consideration both the pros & cons for the
purpose of arriving at concrete conclusion.

INTERPRETATION OF DATA:-
After carefully analyzed the data, it has been aptly interpreted in order to give concrete
conclusion & proper recommendation.
Research in common parlance refers to a search to a search for knowledge. One can also
define research as a scientific and system search for pertinent information on a
specific topic. In fact research is an art of scientific investigation.
Research Design: - The research design makes it clear weather the study is exploratory or
conclusive in nature and whether it is case statistical or experimental in design. The study is
a cross sectional study because the data were collected from many source’s. For the purpose
of present study a related sample of population was selected on the basis of convenience.

Data collection method: - There are four basis data collection approach in research,
They are :-
-Primary data
-Secondary data

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-Analysis of case studies
-Observation

Primary consideration in sampling is as follows:-

-Population
-Sample frame
-Sampling unit
-Sampling size
-Sample plan.
Analysis-Data are useful only after analysis. Data analysis involves converting a series of
recorded observation into descriptive statement and inferences. Nature of sampling
process, the measurement instrument and the data collection method the type is analysis
is to be used. Inference and Report-Once the data is analyzed statistically putting various
constrain; I conclude certain facts that can be summed up as interface of the research
process. Finally the whole thing becomes presentable as report.

RESEARCH METHODOLOGY USED IN THE PROJECT

Research is the art of scientific investigation. It is the scientific investigation in order to

find out facts and solution of a particular problem. It is the search for knowledge.

1 Research instruction Questionnaire, personal interview

2 Questionnaire form Structured

DATA COLLECTION

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Data Collection from Secondary and primary sources

Secondary Data –
Books, Magazines and Published data and information, report on the labours

Primary Data –Questionnaire, Interviews

Data Sources:There are two types of data were taken into consideration i.e. Secondary
data and primary data. The secondary data has been used to make the analysis because we
have no much sufficient time and resources to collect the primary data.

Secondary Data:
Secondary data is that data which is collected for other purpose. This is indirect
collection of data from sources containing past or recent past information like annual
reports, balance sheet, books, newspapers and magazines etc.
Collecting the Information:
For this research methodology, we were collecting information with the help of annual
reports, balance sheets and other company’s publications.
Analyse The Information:
In this research methodology the next step is to extract the pertinent finding from the
collected data. We tabulated this collected data and develop the means of analyzing the
data. There are so many tools for financial analysis but we mainly concentrate on the
ratio Analysis and supportive information taken from the other means i.e. comparative
financial statements with its major components viz. common size statement, comparative
financial statement.

Problems related to rural retail marketing

 Barter system.

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 Underdeveloped people and underdeveloped markets

 Lack of proper physical communication facilities.

 Many language and Dialects.

 Dispersed population and trade.

 Poor road connectivity.
 poor availability of dealers.
 low destiny of shops per village and high variation in their concentration.
 poor storage system,leading to inadequate stocking .

 Inadequate Media coverage for rural communication.

 Highly credit driven market and low investment capacity of retailers.

Data Analysis and Interpretation

1) Have you ever been visited Aadhar retail ltd?

a) Yes b) No

Response Response in no. Response in %

Yes 45 75%
no 15 25%
Total 60 100%

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2)Do you need discount or quality in product?
a) discount b) quality

Response Response in no. Response in %

DISCOUNT 45 75%
QUALITY 15 25%
Total 60 100%

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3) For how long have you been dealing with the Aadhar retail ltd?
a) 1 year b) 2 years

Response No. Of respondents Percentage

1 year 40 67
2 years 20 33
Total 60 100

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4) Are you satisfied with the customer service offered?

RESPONSE NO. OF RESPONDENTS PERCENTAGE

Good 15 25
Average 30 50
Need to be improved 15 25
Total 60 100

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5) On what basis Aadhar retail ltd is better than other retail outlets?
• Price
• Quality
• Availability
• Service
• Others

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Criteria No. of respondents Percentage
Price 20 34
Quality 15 25
Availability 5 8
Service 5 8
Others 15 25
Total 60 100

6) Do you think Aadhar is better than haryali or choppel?

• Aadhar

• Haryali

• EChoppel

Company name No of respondent Percentage

Aadhar 25 42
Haryali 30 50
E-choppel 5 8

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Total 60 100

8) Which of these products do you prefer to buy from aadhar ?

Product type No. of respondents Percentage

FMCG 10 17
Grocery Items 15 25
General Merchandise 5 8
Agri Products 25 42
Consumer Durables 5 8
Total 60 100

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9)How frequently do you visit Aadhar Retail outlet?
• Daily
• Once in a week
• Fortnightly
• Monthly

Time period No. of respondents Percentage

Daily 5 8
Once in a week 15 25
Fortnightly 30 50
Monthly 10 17
Total 60 100

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10)what medium of advertisement do you respond to?

medium respondent percentage

magazine 10 16
T.V(local cable channel) 20 34
News paper 25 41
OTHER 5 9
TOTAL 60 100

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11)How much rating will you give to this store?

rating respondent percentage

average 20 34
very good 12 20
Excellent 13 22
can’t say 15 24
Total 60 100

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12) Any recommendations???

 CONCLUSION

The concept of Retail Marketing in Indian Economy has always played an influential role
in the lives of people. In India, leaving out a few metropolitan cities, all the districts and
industrial townships are connected with rural markets.
The rural retail market in India is not a separate entity in itself and it is highly influenced
by the sociological and behavioral factors operating in the country. The rural population
in India accounts for around 627 million, which is exactly 74.3 percent of the
totalpopulation.
The Registrars of Companies in different states chiefly manage: The rural retail market in

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India brings in bigger revenues in the country, as the rural regions comprise of the
maximum consumers in this country. The rural market in Indian economy generates
almost more than half of the country's income. Rural marketing in Indian economy can be
classified under two broad categories. These are:

• The market for consumer goods that comprise of both durable and non-durable
goods
• The market for agricultural inputs that include fertilizers, pesticides, seeds, and so
on

RECOMMENDATIONS & SUGGESTIONS

 PRICING
Pricing is the major element for retail marketing so cheaper price product are affordable
for middle class people they need more discount more schemes with purchase.

 IMPROVEMENT IN TECHNOLOGY

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Technology is the major part of the retail area without nothing is
possible through media and electrification we improve the lifestyle of
people.

 MAINTAIN THE QUALITY STANDARD

Quality standard is also very important part of market because some people are quality
oriented customer.

 ESTABLISHMENT OF DISTRIBUTION CHANNELS

Retail market certainly offer a big attraction to marketers, it would be naïve to think that
any company can enter the market without facing any problem and walk away with
sizable share .but there are large number of small marketers and shopkeepers .ke a good
distribution channel.

Underdeveloped people and underdeveloped markets

Lack of proper physical communication facilities so trained people.
Provide more discounts and offers to people
Increase publicity and add to the company
Many language and Dialects
Make the idol distribution channel in for particular consumption area
Improve the electrification in the villages.
More add to their company in news paper through media.

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 Motivate to increase investment capacity of retailers.

BIBLIOGRAPHY
WEBSITES

 www.google.co.in
 www.alibaba.com
 www. Aadhar retailing ltd.com
 www.wikipedia.com
 www.retail industry.com

REFERENCES:

 Aaker, Kumar, Day, (2005), “secondary and exploratory research”

Marketing Management, John Wiley & Sons, Inc 7th ed., p 102-121

 McDaniel, Gates, (2001), “creating a research design”

Marketing Research Essentials, South Western Publications, 3rd ed., .

 Miller, T.W, (2001), “Can We Trust Data of Online Research”

Marketing Research, vol.13, Issue 2, p 26-32

 Zickmund, W .G.,(2002), “Exploring Marketing Research”

Thomson South- western Publications

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