Despite adverse impact of global economic slowdown by tyC9OW


                                Fundamentals of Retailing
                                         Assignment No.I

Assignment Code: 2012RM01B1                            Last Date of Submission: 15th October 2012
                                                       Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Ques. 1       Why is it important for a retailer to do Environmental Scanning and Situational Analysis?

Ques. 2       Why have location decision become more important in recent years in retailing? What
              are the relative advantages of location type?
Ques. 3       a)      Define the characteristics, according to which store formats are defined.

              b)      Briefly explain any three store formats with examples.
Ques. 4       How has changing socio-demographic situation of India, contributing to growth of retail
              sector in India. Elaborate.

Case Study:

Carrefour SA, France-based world’s second largest retailer, which clocked global revenues of E 97.8
billion in 2008, has according to an announcement, decided to foray into the country’s retail sector by
opening its first Cash & Carry store in the National Capital Region (NCR) in mid-2009 or early 2010.

The Europe’s largest retailer has been looking for opportunities to enter the country’s fast growing retail
sector since 2006 as its sales in its home market France, which accounts for nearly one-half of its
global sales, have been stagnating for sometime. Last year (2008), sales in France grew by a mere one
per cent.

Despite adverse impact of global economic slowdown, sales in the nascent organised retail sector
of India still grew at a healthy pace of around 15 per cent in 2008. This growth, though was slower than
the previous years when the business grew at around 30 to 35 per cent per annum.

In order to give a fillip to its India plans and finalise sourcing arrangements, the European retail giant
recently organised a meeting of food and non-food vendors in Delhi.

“Every market we enter, we work closely with local producers, farmers, agricultural cooperatives and
manufacturers. In most Carrefour stores, around 90 per cent of the sold items are locally sourced,” said
Carrefour in a statement.
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“This meeting had three objectives: to introduce the Carrefour Group and its project in India, to return
on the concept of the cash-and-carry store and to present the working specifications and the mode of
collaboration with suppliers.”
Apart from introducing the group and its India plans, according to Herve Clec’h, Managing Director,
Carrefour India, the meet was also organised to build relationships and open business opportunities for
suppliers in the company’s global sourcing network.

While, the world’s largest retailer Wal-Mart has recently opened its first Cash & Carry store in India in
partnership with telecom giant Bharti Enterprises, the world’s fourth largest retailer Metro AG of
Germany is is already present on its own in the Cash & Carry segment with 5 C&C stores operating
across large metro cities of Bangalore, Hyderabad, Mumbai, and Kolkata in India.
The two other Europerean retail giants Carrefour SA of France (world’s second largest) and Tesco plc
of UK (world’s third largest) are now preparing blueprints for setting up their C&C format stores in India.
While Tesco plc has joined hands with Star Bazaar retail chain of Tata group retail arm Trent Limited,
Carrefour is believed to be in talks with the country’s largest retailer Fututure group for a possible tie-up.

All the major Indian retail players, who were earlier planning to foray into Cash & Carry wholesale
retail, including Reliance Retail, Future group, Videocon, Indiabulls, appear to have withdrawn from the
race to enter this segment that apart from heavy cash investment requires long gestation period to
make operations viable.

Case Questions:

1.     What is cash and carry format? Explain in detail, its advantages and disadvantages.
2.     Why are global retailer look at investment opportunities in India?
3.     Why is it important for a retailer to have a in-depth knowledge of local vendors?

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                                 Fundamentals of Retailing
                                         Assignment No.II

Assignment Code: 2012RM01B2                             Last Date of Submission: 15th November 2012
                                                        Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Ques. 1       Explain the importance of population trends in retail planning
Ques. 2       Explain Retail audit and its relevance in business.
Ques. 3       What do you understand by perceived service quality?
Ques. 4       What are unplanned purchases? How can a marketer trigger unplanned purchase?

Case Study:
Reliance Jewels, a specialty format of Mukesh Ambani-led Reliance Retail, which specialises in offering
a wide range of certified gold, gold jewellery, and diamond jewellery, launched its 12th store in the
National Capital Region (NCR). The new store is located at the Gold Souk Mall in Sushant Lok-1, in
Gurgaon. Reliance Jewels offers more than 10,000 stunning designs of jewellery from all regions of the
“We are delighted to bring the Reliance Jewels experience to the people residing in the NCR. It has
always been the endeavour of Reliance to provide consumers with a wide range of high quality
products at competitive prices. Reliance Jewels is another step in that direction- we offer consumers an
unparalleled range of jewellery, backed by the assurance of hallmarked gold and certified diamonds, in
an unmatched shopping ambience. We are confident that the Reliance Jewels experience will be
appreciated by our customers here,” said Bijou Kurien, President and Chief Executive - Lifestyle, on the
The first Reliance Jewels store was opened on 17th November, 2007. According to the original plan
Reliance had targeted to open 300 specialty jewellery stores and garner 10 per cent of the total market
overtaking the business of another jewellery retailer Tanishque, owned by Titan Ltd of Tata group.
Gitanjali Group, the country’s largest integrated jewellery maker and pioneer in the business of branded
jewellery, which among others offers branded ornaments under Gili, D’Damas, and Nakshatra brands,
is going in for an aggressive expansion of its retail network.

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Aerens Gold Souk (AGS) Luxury Retail, a Delhi-based venture of Aerens family, which presently
operates two Gold Souks at Gurgaon and Ludhiana, is preparing itself to launch a Rs 250 crore multi-
specialty mall in the last quarter of 2010. The mall is coming up at Vandalur, near Chennai.

Case Questions:

1.     Why are all Indian retailer investing in gold market? Discuss with reference to potential market
       and growth opportunities.
2.     Why is certification important in the sector?
3.     Do a customer profiling for Reliance Jewels.
4.     As the chief of marketing Reliance Jewels, outline the market expansion and service strategy.

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