Summer Internship Project On Understanding the Sales Staff Behaviour towards Customer and Employee Perception towards DIGIWORLD

At

Mumbai

Submitted in partial fulfilment of PGDM (RM) program 2011-2013

Submitted By: Santosh Kumar Sahu PGDM (RM) Sec (A) 11Dr004

Company Guide Mr.Omendra Arya Business Operation Manager DIGIWORLD

Faculty Guide Prof. R.N. Pattanaik Professor IMIS

Institute of Management & Information Science Bhubaneswar

ACKNOWLEDGEMENT
Interdependence is a higher value than independence
Some Says Managers are born and some says managers are made. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are guided properly and are motivated to work willingly towards fulfillment of specific goal. It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well wishers who have in some way or other contributed in their own special ways to the success and completion of this summer internship project. First of all, I express my sage sense of gratitude and indebtedness to my Retail Coordinator, Prof. R.N. Pattnaik of IMIS, Bhubaneswar, from the bottom of my heart, for his unprecedented support and faith that I do the best and his valuable recommendation and for accepting this project. Also, I also express my sincere thankfulness to my Collage Dean Prof. Mr. S. P.Padhi for his kind advice, suggestions and constant help in a lot of various ways during project course. Further I express my sage sense of gratitude to Mr. Omendra Arya, Business Operation Manager of DIGIWORLD (A Videocon Group enterprise) and Mr. Amit Sing, Marketing Manager Of DIGIWORLD (A Videocon Group enterprise), who

were kind enough to give an opportunity to work under their immense expertise. I sincerely thank to both of them for their valuable suggestions, motivation and encouragement. I express my thanks to the DIGIWORLD Supporting Team, for their support and encouragement in bringing out this project report. I would be failing in my duty if I dont express my profound gratitude to the entire respondent who has spent their valuable time to answer the questionnaire.

Last but not the least; I would also like to expand my thanks to all faculty members of INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE, Bhubaneswar, who have helped a lot during the course of my project. Finally, I sincerely express my thanks to all my friends and the Staff members of INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE, Bhubaneswar for their support.

Santosh Kumar Sahu (Roll No-11DR004)

DECLARATION
I, Santosh Kumar Sahu, hereby declare that the project report entitled Understanding the Sales Staff Behaviour Towards Customer And Employee Perception Towards DIGIWORLD under the guidance of Mr. Omendra Arya submitted in partial fulfilment of the requirement for the award of degree of PG Diploma in Retail Management to Institute Of Management And Information Science, Bhubaneswar is my original work carried out during 21th April, 2011 to 16th June, 2012 and not submitted for the award of any degree, diploma, fellowship or other similar titles or prizes to any other institution/organization or university by any other person.

Date : Place: Mumbai

SIGNATURE (Santosh Kumr Sahu)

CERTIFICATE
This is to certify that the project work done on Understanding the Sales Staff Behaviour Towards Customer And Employee Perception Towards DIGIWORLD Submitted to Institute Of Management and Information Science, Bhubaneswar by Santosh Kumar Sahu in partial fulfilment of the requirement for the award of PG Diploma in Retail Management, is a bonafide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried during 21th April, 2012 to 16th June, 2012 in DIGIWORLD.

I wish him all the very best in his career endeavours.

Mr. Omendra Arya (.) (PROJCET GUIDE)

TABEL OF CONTENTS S. No. 1. 2. 3. 4. 5. 6. 7.

CONTENTS
Executive Summary Introduction to Retailing Objective of the Study Research Methodology and Scope of the Study Assumption of Study Retail Sector and its scope in India Consumer Durable And Home Appliances Industry In India .

8.

Company Profile Videocon Group DIGIWORLD

9. 10. 11. 12. 13.

Data Analysis and Interpretation Findings of the Study Suggestions and Recommendation Limitations of Study Conclusion Bibliography

PREFACE
I want to express my gratitude for the experience and practical knowledge that I gained during the summer internship project at DIGIWORLD (An enterprise of VIDEOCON group).It was my first experience when I went to the market not to buy anything but to do the survey and to Study of Market Potential and Customer Preferences at Mumbai with reference to DIGIWORLD . The basic need of this survey is to interact with customers and employee. On first day I was nervous, but because of the good image of the DIGIWORLD in the market the people reacted positively. For accomplishment of the project report I think about the conditions and views and then I used to compose the whole thing on computer. In making the project report theoretical knowledge was needed more than the practical which was given to us by my professors in my institutes. In the market the experience relating to the practical knowledge was very good which realized me about the real conditions of the marketing. The project flows logically consisting of market research, data collection method and questionnaire. It hoped that the findings and the suggestions will help the company, confidently to formulate its strategy in comparison to its competitors. I have enjoyed my summer internship at DIGIWORLD and have learnt lots of new things, which will be helpful to me during my work in any organization. I thank DIGIWORLD for giving this opportunity at their office and being good to me all the time. I am please to work in this esteemed organization. I have tried my best to make this report a reader friendly & also did my level best to fulfill the objective of the summer training. Lastly I am giving thanks to IMIS, BBSR family who gave me their precious time to make project successful.

Retailing Customer is King

A Customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outside of our business. He is a part of it and we are not doing him a favour by servicing him. He is doing us a favour by giving us an opportunity to do so.

Mahatma Gandhi

Some Published issue of Retail Industry.

Indias retail industry, which is in the middle of rapid growth, has already scripted success stories fit to be the subject of a Bollywood film-Business Standard. The impact of organized retailers that have seen swarming of malls lately, on the mom-n-pop stores in 20 Indian cities- Indian Council of Research in International Economic Relations (ICRIER). Modern Retailing Comprehensive policy vital- The Hindu Retail boom triggers ancillary industry growth- The Times of India Indian Retail Report-2011

The Indian Macro Economy

Tops AT Kearney list of emerging markets for global Retailers to enter. 2nd Fastest growing economy in the World and 50% of the total GDP led by services such as IT, telecommunications, healthcare and retailing. GDP growth rate for the year 2012 ended at 5.3% (in 1st quarter) and Average GDP Growth Rate More Than (7 %) Since 1997 .But comparatively Growth rate is falling down due to depreciation of Indian Currency in international market.

Reserves Fell to the $285.86 billion mark as of June 1 from $288.86 billion
FOREIGN EXCHANGE RESERVES (in million U.S. dollars) ------------------------------------------------------June 01 May 25 June 3 2012 2012 2011 ------------------------------------------------------Foreign currency assets 253,094 254,406 280,908 Gold 25,585 26,618 24,391 SDRs 4,347 4,381 4,623 Reserve Tranche Position 2,832 2,854 2,982 ------------------------------------------------------Total 285,857 288,259 312,904 -----------------------------

 65% of population below 35 years and 54% below age 25 years Working population in India is growing like most other developed countries. China has issues of median age 30-34 years at the early stage of development and psychology issues after implementation of one child policy Housing Boom due to nuclear family, low interest rates, tax benefits from government and lastly strong Indian values driven by savings and owning home Economy - 4h largest economy in the world on PPP basis (next only to USA, China and Japan) -One of the fastest growing economy with 6.5% average growth in GDP for last 10 years and is expected to rank 3rd by 2010, just behind the US and China Fragmented retailing with 5 million retailers and 95% less than 500 sq ft nation of shop-keepers -brilliant trading and entrepreneur community Over 3.9 million tourists visited India this year, up from 3.0 million last year. India is on the track to be the servicing capital of the world (As China is manufacturing capital) and Organized retail growing at 30-35%+ p.a. compound growth. IPL has again drastically changed the outlook of the whole world towards India. It has the highest paid players across the Globe / Sports. Real Estate & Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate. Their preferred means of expansion is to increase the number of outlets in a city and also expand to other regions. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expanding at a rapid pace. Besides the 6 metros, India has 61 other cities with populations greater than 0.5 million and contributes about 14% to the countrys GDP. India also allows 100 percent FDI in cash-and-carry, or wholesale, ventures. Restrictions on foreign investment in front-end retail exist because of opposition from millions of small shopkeepers who are valuable vote banks during elections. India has recently allowed 100 percent FDI in single-brand retail subject to certain sourcing restrictions but no ownership in multi-brand retail. The retail sector in the nation of 1.2 billion people is estimated to have annual sales of $450 billion, with nearly 90 percent of the market controlled by tiny family-run shops. Organized retail, or large chains, makes up about 10 percent of the market, but is expanding at 20 percent a year. This is driven by the emergence of shopping centers and malls, and a middle class of close to 300 million people that is growing at nearly 2 percent a year.

India Vs World
Indian retail is fragmented with over 12 million outlets operating in the country which is 13 times more the all retail outlets operating in USA (0.9 million outlets). India has the highest number of outlets per capita in the world - widely spread retail network but with the lowest per capita retail space (@ 2 sq. ft. per person) Annual turnover of Wal-Mart (Sales in 2001 were $219 billion) is higher than the size of Indian retail industry. Almost 100 times more than the turnover of HLL (India's largest FMCG Company). Wal-Mart - over 4,800 stores (over 47 million square meters) where as none of India's large format store (Spencers, Big Bazaar, Shoppers' Stop, Westside, Lifestyle) can compare. The Wal-Mart sales per hour of $22 million are incomparable to any retailer in the world. Numbers of employees in Wal-Mart are about 1.3 million where as the entire Indian retail industry employs about three million people. One-day sales record at Wal-Mart (11/23/01) $1.25 billion - roughly two third of HLL's annual turnover. Developed economies like the U.S. employ between 10 and 11 percent of their workforce in retailing (against 7 percent employed in India today). 60% of retailers in India feel that the multiple format approach will be successful here whereas in US 34 of the fastest-growing 50 retailers have just one format Inventory turns ratio: measures efficiency of operations. The U.S. retail sector has an average inventory turns ratio of about 18. Many Indian retailers have inventory turns levels between 4 and 10 - KPMG surveyed. Global best-practice retailers can achieve more than 95 percent availability of all SKUs on the retail shelves (translating into a stock-out level of less than 5 %).The stock-out levels among Indian retailers surveyed ranged from 5 to 15 percent.

1. Executive Summary

Executive Summary

Retailing is emerging as a sunrise industry in India and is presently largest employer after agriculture. Some economists say that Retailing is one of the pillars of the economy in India, and some say it is gold mine of Indian economy. Retailing in its present form started in the latter half of 20th century in USA and Europe. Retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 5% of them being larger than 500 sq ft (46 m) in size. Organized retailing in India is growing at the rate of 30-35% p.a., is estimated to grow from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015. Indian Retail Sector is growing very fast with so many new players are coming in this growing organized sector and trying to attract customers by giving attractive offers and offering competitive prices etc. DIGIWORLD is owned and operated by Videocon Industries Limited (VIL).VIL is a part of the Videocon Group, A USD 2.5 Billion Global Conglomerate. It is a Multibrand Consumer Electronic And Home Appliance Retail Chain. The Aim Of DIGIWORLD is to reach out to every Indian Household in the top 300 cities, with plans outlets in the next 12 months. It is growing at a fast pace of opening many outlets every month. The motive of the study is to know sales staff approach towards customer and sales staff perception about DIGIWORLD as well at Mumbai and its subarb & what are the customers expectations from from DIGIWORLD sales staff at the time of their interaction while they come to purchase. The main purpose of the study is to find out the target customers, who have already interacted with DIGIWORLD sales staff inside store and their experience of interaction with DIGIWORLD sales staff,also to find out DIGIWORLD sales staff overall view about DIGIWORLD. The study is done with the help of primary data given by respondents and secondary data through various sources ,during survey to know the customer view about

DIGIWORLD sales staff and perception of sales staff about DIGIWORL at Mumbai

and its suburbs, Maharashtra market with reference to DIGIWORLD . Primary data is collected through personal interview using structured questionnaire and secondary data is collected from management of the DIGIWORLD, various book, journals and from Videocon and DIGIWORLD website.

Mumbai is the most developed city in India and it consists of all classes of families. Most of the families belong to Business class and employee class. Most of the residents fall in to age group 18-45. Most of the families have 4 to 5 members in their families. Residents are well educated and holding jobs. Their monthly incomes are ranging from 10,000-20,000 and above. They mostly prefer to buy their Consumer Durables And Home Appliances from well established Brands and well known electronic shops. The factors which attract the respondents to an electronic shops are home delivery, parking facilities, accepting debit/ credit cards, fast billing, booking counters, customer service, courteous and friendly behavior and ambience. Most of the customers complained regarding customer service, variety of product with deep assortment, store image, arrangement of products, pricing, product knowledge of employee, quality of products, parking space, product updation, time with reference to DIGIWORLD . Company can enhance its business or increase its sales by doing these things; provide better customer service than its competitors, increase the variety of product with deep assortment, arrangement of product should be in proper way that creates good store image, provide loyal membership card to the customers, providing better ambiance. Company should employ knowledgeable sales staff as well as better managers ambiance ,closing

particularly at its VASAI DIGIWORLD .

This study helped me a lot for analyzing the market, understanding retail business and how to respond in critical situations. Findings and suggestions/recommendation of this report might be helpful for the company to improve its performance and business.

2. Introduction to retailing

INTRODUCTION
The word retail has its origin in French word retaillier and means to cut a piece off or to break bulk. The term Retailing is defined as All activities involved in selling goods and services directly to final consumers for their personal and non-business use. In simple terms, it implies a first-hand transaction with customer. Retailing involves a direct interface with the customer and the coordination of business activities
from end to end right, from the concept or design stage of a product or offering, to its delivery and post delivery service to the customer. The industry has contributed to the fastest changing and dynamic industries in the world today. Retailing, it is an emerging trend in the India and Mubai is far ahead behind which is also witnessing the stupendous growth and opportunities presented by this sector. Many institutions- Manufacturing, Wholesalers and retailers do retailing, but most retailing is done by Retailers. A business wholesales come from primarily from retailing. It is a proven fact that in India the retail industry has become the 2nd largest employer after agriculture. Indian retail sector is in boom period and many reasons are contributing to it. The retail scenario in India is unique. Much of it is in the unorganized sector, with over 12 million retail outlets of various sizes and formats. Almost 95% of these retail outlets are less than 500 sq. ft. In size, the per capita retail space in India being 2 sq. ft. compared to the US figure of 16 sq. ft. Thus Indias per capita retailing space is the lowest in the world. With more than 9 outlets per 1000 people, India has the largest number of outlets in the world. Most of them are independent and contribute as much as 95% to the total retail sales. Because of the increasing number of nuclear family, working women, greater work pressure
and increased commuting time, convenience has become a priority for the Indian consumers. The growth and development of organized retailing in India is driven by two main factors lower price and benefits the consumers cant resist. According to experts, economies of scale drive down the cost of supply chain, allowing retailers to offers more benefits offered to the customers. Globally, retailing is customer-centric with an emphasis on innovation in products, process and services. In short, the customer is the king. The Indian retail market is the 5th largest retail destination globally. It is estimated to grow from the US $ 330 billion in 2007 to US $ 427 billion by 2010 and US $ 637 billion by 2015.

3. Objective of the Study

Objectives of the study

To study DIGIWORLD in Mumbai and its sub-urbs. To study about the perception of customers with reference to sales staff approach and their overall attitude at the time of handling customer in DIGIWORLD. To study about sales staff perception and their overall view about their job and DIGIWORLD . To know the target customers of DIGIWORLD at Mumbai and its suburbs. To understand the customers expectation from DIGIWORLD management.

4. Research Methodology and Scope of the Study

Research Methodology
The study is relied on primary as well as secondary data. The primary data is collected through personal interviews using structured Questionnaire. The Secondary is collected from management of the DIGIWORLD, various books, journals and Internet.

Sampling Methods
Probability sampling method or simple random sampling

Universe: The research work was accomplished in Mumbai and its sub-urbs, Maharastra, so Mubai and its sub-urb is my Universe.

Sample Size: Sample size was 100 for customer and 20 for sales staff.

Research Instrument: For this study, for the collection of various data requirement, structured questionnaire is used. This questionnaire contains qualitative and quantitative information of the customers. The questionnaire contains of both open-ended and close ended questions, which would help to know the situation prevailing in the market.

Statistical Tools Used

For the purpose of data analysis, Percentage Method is used for calculation and result was interpreted. No. of Respondents Percentage = ---------------------------10 0 Total Respondents

Scope of the Study

With the help of primary data given by the respondent during survey and secondary data, study is done to help the DIGIWORLD to understand the customer expectation from its sales staff and sales staff expectation about DIGIWORLD at Mumbai and its sub-urbs, Maharastra market.

5. ASSUMPTION OF THE STUDY

5. Assumptions of the Study

The assumptions of the study are--- Questionnaires which were filled by both husband and wife and other members of family have been considered by me as filled by male (earner) only. Those questionnaires which are more than 80% filled, I have taken them in to consideration as a full filled questionnaire.

6. Retail Sector and its scope in India

RETAIL SECTOR AND ITS SCOPE IN INDIA

Structure of Indian Retail Sector

The retail industry continued in India in the form of Kirana stores till 1980. Soon, following the modernization of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. From that time the retail sector in India can be widely split into the organized and the unorganized sector.

Organized Retail Sector

After 50 years of unorganized retailing and fragmented Kirana stores, the Indian retail industry has finally begun to move towards modernization, Systematization and

consolidation. Today, modernization is the catch phrase and the key to understanding retail in the next decade. There has been a boom in retail trade in India owing to a gradual increase in the disposable incomes of the middle class households, as a result of good performance of IT, Service and Infrastructure sectors. More and more players are entering the retail business in India to introduce new formats like malls, supermarkets, discount stores, department stores and even changing the traditional looks of bookstores, chemist shops, and furnishing stores. Organized retail formats prevalent globally Malls Supermarkets Hypermarkets Discount Stores Department Stores Specialty Stores Internet Retailing Convenience Stores MBO

Unorganized Retail Sector

The unorganized retail sector basically includes the local Kirana stores, hand cart, the vendors on the pavement (sidewalk) etc. This sector constitutes about 95% of the total retail trade. As 70% of the employment is generated in Agriculture sector, hence this form of retailing is widely seen in those areas and of course to some parts of the urban. There is a lot of hue and cry in the sector for opening of sector for direct investment from the foreign players, but government cannot neglect the interests of small players. One of main reason of not opening this sector to FDI is it may shrink the employment in the unorganized sector and expand that in the organized.

THE EVOLUTION OF RETAIL IN INDIA

FORMATS: Traditional Itinerant Salesman Haats Melas Kiosks Post Office Established Kirana shops Convenience/Department stores PDS Pan/Beedi shops Fast food outlets etc. Emerging Exclusive retail outlets Hypermarket Malls/Multiplexes Specialty Malls

INDIA'S LARGEST RETAIL CHAINS:

1. PDS (Public Distribution System): 463,000 2. Post offices: 160,000 3. KVIC (Khadi & Village industries): 7,000 4. CSD (Canteen Stores Department) Stores:3,400 (Source business world marketing White book 2005)

CURRENT SENARIO OF INDIAN RETAIL SECTOR

With a contribution of 14% to the National GDP(Gross Domestic Product) and employing 7% of the total workforce or two million employees ,the retail industry is definitely one of the pillars of the Indian economy.Postliberalization the retail sector in India is heralded as one of the sunrise industry. With more than US$ 450 billion sales and an average growth rate of 11.2% for the market and 35% average annual growth rate for organised retail business. Though organised retail has been growing at an impressive 35% to 40% year-on-year in the last few years compared to 9-10% growth in the over all retail industry. it accounts for just around 5% of the total retail market. While India has one of the highest densities of shops per population with 15 million small retail outlets(14 shops per 1000 people) the organised retail is still at an embryonic stage in the growth process. It is probably for this reason India has been ranked as the third most attractive nation for retail investment among emerging market. A McKinsey report 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market is currently valued at US$ 511 billion.

Indian retail on the fast-track

The Indian retail market is the fifth-largest retail destination globally. It is estimated to grow from the US$ 330 billion in 2007 to US$ 637 billion by 2015. Indian retail showed a growth rate of 49.73% with a turnover of US$ 25.44 billion in 2007-08 as against US$ 16.99 billion in 2006-2007. Retail contributes to 14 per cent of Indias Gross Domestic Product and provides employment to 7 per cent of Indias working population. Higher disposable incomes, easy availability of credit and high exposure to media and brands considerably increased the average propensity to consume over the years.

7. GLOBAL CONUMER DURABLE INDUSTRY AND HOME APPLAINCES

GLOBAL CONSUMER DURABLE INDUSTRY CONSUMER ELECTRONICS AND HOME APPLINCES

Any manufactured goods purchased by consumers for long-standing and lasting use are classified as consumer durables. They are merchandises which are planned to undergo regular usage for a number of years or longer before substitution are required. From cars to communication device, Furnitures to refrigerator can classify as consumer durables. The consumer durable industry can be three main categories specifically WHITE GOOD Refrigerators, Air conditioners, Washing machine, Speakers And Audio equipments. BROWN GOODS Mixers, Grinders, Microwave ovens, Electric Fans, Irons, Cooking Range, Chimneys. CONSUMER ELECTRONICS Television, Mobile Phone, MP3 Player, DVD players, VCD players, ETC.

HISTORY OF CONSUMER ELECTRONIC IN INDIA The electronic industry in India took off around 1965 with an orientation towards space and defense technology . This was rigidly controlled and initiated by government. This was followed by development in consumer electronics mainly with transistor radio, Black and white TV ,Calculator, and other audio products .Colour Television soon followed. In 1982 a significant year in the history of Colour Television in India, the govt allowed thousand of colour TV to be imported to country To coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone exchange, which are succeeded by Digital exchanges in 1988.The period between 1980 to 1990 was the golden period for electronic during while the industry witnessed continuous and rapid growth. From 1991 onwards there Was first an economic crises triggered by the Golf war which was followed by political and economic uncertainties within the country. Pressure on electronic industry remained though growth and development have continued with

Digitalization in all sectors and more recently the trend towards the convergence of Technology. In recent year the electronic industry is growing at a brisk pace. The predicted figure of the consumer electronic market by 2013 is around $46 Billion, growing at a compound annual growth rate (CAGR) of 16%. The Largest Segment is the consumer electronics segment.

Consumer Electronics (Brown Goods) Market Share

3%

33%

37% Mobiles Audio/Video/Gaming Computers

Others

27%

7. Company Profile

COMPANY PROFILE
VIDEOCON INDUSTRY

VIDEOCON INDUSTRY:SNAP SOT Date of Establishment Revenue Market Cap Corporate Address 1985 3261.68 ( USD in Millions ) 53856.47347755 ( Rs. in Millions ) 14 Km Stone, Aurangabad - Pitman Road, Village Chittagong Taluka - PaithanAurangabad-431105, Maharashtra www.videoconindustries.com Chairperson - Venugopal N Dhoot MD - Venugopal N Dhoot Directors - Ajay Saraf, Arun Laxman Bongirwar, Birendra Narain Singh, Girish Nayak, Gunilla Nordstrom, Karun Chandra Srivastava, Kuldeep Drabu, Pradipkumar N Dhoot, Radhey Shyam Agarwal, S C N Jatar, S Padmanabhan, Satya Pal Talwar, Venugopal N Dhoot, Vinod Kumar Bohra Consumer Durables Electronics Videocon Industries, established two decades ago, is a global conglomerate with market capitalization of $2.5 billion. Videocon's businesses consists of manufacturing, marketing & distribution of consumer electronics products and oil & gas extraction. Videocons R & D centres are developing technologies that include True Flat, Slim, Extra Slim, Plasma & LCDs. It want to m Financials Total Income - Rs. 144526.77 Million ( year ending Dec 2010) Net Profit - Rs. 7446.94 Million ( year ending Dec 2010) Vinod Kumar Bohra

Management Details

Business Operation Background

Company Secretary Bankers Auditors

Khandelwal Jain & Co, Kadam & Co

ABOUT VIDEOCON
Videocon, founded in 1985, is today one of the largest corporate groups in India. Its main business segments are consumer electronics and oil & gas exploration; it is now venturing into power and telecom. It is one of the largest manufacturers of Colour Picture Tube (CPT)globally. It has close to 25% market share in home appliances segment in India and aims to double this business in next five years. It has also made significant forays into Oil & Gas exploration and production across the globe. Apart from its core businesses, the company is aiming to grow its power and telecom (handset and services) businesses aggressively through large scale investments. Videocon Industries is primarily engaged in two core businesses
Manufacturing, assembly, marketing and distribution of consumer electronic products & home appliances Oil & gas exploration and production

The Company operates across various sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing:

Products include home entertainment systems, microwave ovens, Colour Picture Tube (CPT) & liquid crystal display (LCD) televisions, refrigerators, washing machines, air conditioners, small appliances, glass shells, compressors / motors and other components -The Company has Research & Development centres located in China, India and Japan -Manufacturing and assembling plants are located at Chavaj, Gandhinagar (Gujarat) and Chitegaon (Maharashtra);among these the Chitegaon plant has the highest productivity

Display industry and its components:

Manufactures colour picture tubes at its facilities in Italy, Poland and China

Colour Picture Tube (CPT) Glass:

Operates manufacturing facilities in India and Poland

Oil and Gas:

Videocon owns a 25% stake in the Ravva Joint Venture; the JV operates the Ravva oil & gas field located 10 km offshore in the Krishna Godavari basin in Andhra Pradesh in southern India. The JV produces 50,000 barrels of oil per day The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities in oil & gas fields in Brazil, Mozambique, East Timor, Oman and Australia.

Entry into the Telecom business:

In March 2010, Videocon Telecommunications Ltd, a unit of Videocon Industries Ltd, launched mobile services based on the global system mobile (GSM) platform

Power business:
Papaya Energy, the Companys subsidiary, is implementing a thermal power project in Gujarat with a capacity of 1,200 MW; Videocon is also considering power projects in the other parts of India and evaluating alternate technologies forthe same -Plans to set up three more thermal power generating units with a combined capacity of 4,800MW in Maharashtra, Chhattisgarh and Asansol, with a total investment of USD6.5bn

The equity shares of the Company are listed on the Bombay Stock Exchange and National Stock Exchange of India; the Global Depository Receipts (GDR) and Foreign Currency Convertible Bonds (FCCB) issued by the Company are listed on the Luxembourg Stock Exchange and Singapore Exchange Trading Securities respectively.

Consumer Electronics & Appliances

Overview Videocon enjoys a leadership position in consumer products and home appliances. The Companys refrigerator manufacturing business enjoys synergy with its in house compressor manufacturing facility in Bangalore. The Companys manufacturing and assembling plants are located at Chavaj, Gandhinagar (Gujarat) and Chitegaon (Maharashtra). Among these the Chitegaonplant has the highest productivity.

Performance
The Company has performed well in its Consumer Electronics & Home Appliances business and has posted a stable performance on the back of technological up-gradation, multi-brand strategy, aggressive marketing, launch of new logo and focused penetration in the key markets. Gross sales in FY09 from Consumer Electronics & Home Appliances Segment amounted to USD1.80bn as against USD1.77bn for the previous year. FY10 sales are projected to be USD2.2bn with an EBITDA of USD384m.With the Thomson acquisition, Videocon has emerged as one of the largest Colour Picture Tube (CPT) manufacturers in the world, operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT. The acquisition also included the 2,000 patents of Thomson, which provided a sustainable competitive advantage for the Company. Thomson was a good deal; we got the asset, and best part was technology, which we would not have got otherwise. Venugopal Dhoot, Chairman, Videocon; 13 September 2010 The acquisition of Electrolux Kelvinator supported Videocon in its multi-brand strategy and presented an opportunity for the Company in the form of licensing rights to sell the global brand. These two major acquisitions helped the Company in brand consolidation and enabled it to form a leadership in the market. Gaining a global presence along with optimizing the economies of scale form a significant part of Videocons M&A strategy. The Company holds the largest market share of more than 25% in India for colour TV, refrigerators, washing machines, air conditioners and microwave ovens

INDUSTRY OUTLOOK
As per industry reports, Indias consumer electronics devices market was at around USD23.3bn in 2010. This is expected to increase to USD41.1bn by 2014, driven by rising incomes and growing affordability. Spending on consumer electronics devices is projected to grow at an overall CAGR of 12% through 2014. With the increase in income levels, easy availability of finance, increase in consumer awareness and introduction of new models, the demand for consumer durables has increased significantly. COLOUR TELEVISION Television continues to be the mainstay of the Consumer Electronics industry in India, with the transition occurring to newer technologies such as LCD and LED. The markets are changing rapidly from the conventional CRT technology to flat panel display televisions. The LED TV segment in India is poised for significant growth in the coming years. REFRIGIRATORS Refrigerators are one of the most standard features in Indian middle class homes. Direct cool segment remains the dominant sector. However, frost free segment is witnessing the highest growth in the category and is expected to overtake direct cool sales. AIR CONDITIONER Indian air conditioner market will continue its sustained growth, mainly on account of strong demand from consumers and corporate buyers. The air conditioner market in India has been expanding on the back of increased investments in high-end industries. New commercial users and existing users have also contributed to the growth of air conditioner market WASHING MACHINE Network expansion in semi urban and rural areas has contributed to growth of semi automatic washing machines whereas metros and other A class towns have significantly moved towards the fully automatic segment. Washing machines are now increasingly finding a place in Indian homes. The high-end segment comprises of fully automatic & front loaders and lowend segment comprises of semi automatic & top loaders. The fully automatic category is showing higher growth rate; however, the semi automatic category continues to dominate in terms of market share. MICROWAVE OVENS The Indian microwave oven market remained stagnant in 20010-12. With low stakes, the category did not witness significant expansion efforts by manufacturers during the economic slowdown and also remained low on the shopping priority list. The Indian microwave oven market consists of the grill and convection segments and the solo segment. The solo segment is slowly losing its popularity in urban and semi-urban cities but still has some demand in rural areas or smaller cities, due to lower prices. The convection segment continues to register the maximum growth, on account of growing consumer awareness of

DIGIWORLD

DIGIworld is owned and operated by Videocon Industries Limited. (VIL). VIL is a part of the Videocon Group, a USD 2.5 Billion global conglomerate. edigiworld is the e-commerce arm of the Videocon Group. As part of one of the Indias largest manufacturer and supplier of consumer Electronics, Home appliances and Power products we enjoy the benefits of offering you a great range of products at great prices under one roof. DIGIworld is a Multi Brand Consumer Electronics and Home Appliances Retail chain. The aim of DIGIworld is to reach out to every Indian Household in the Top 300 Cities, with plans outlets in the next 12 months. It is growing at a fast pace of opening many outlets every month.

PRODUCT CATEGORIES OF DIGIWORLD

In DIGIWORLD they have divided products into two broad categories. HOME APPLAINCES AND ACCESSORIES ELECTRONICS
HOME APPLAINCES

This category is further subdivide into two sub category, I. Home Appliances II. Kitchen Appliances

HOME APPLAINCES
Under this category The products available are Washing machine Iron Water heaters Air coolers Air conditioners Refrigerators

KITCHEN APPLAINCES
Under this category the products available in DIGIWORLD are Food processor Mixer grinder Microwave oven Toaster Juicer mixer Grinder

ELECTRONICS
Under this category the products available in DIGIWORLD are broadly divided in three caregories....... Audio/Video Mobile

AUDIO/VIDEO Under this products available in DIGIWORLD are.... 3D LED/LED/LCD/PLAZMA/FLAT TELIVISION SPEAKER

COMPITITITORS
Main competitor of DIGIWORLD in Mumbai are VIJAY SALE SNEHANJALI CROMA RELIANCE DIGITAL

9. Data Analysis and Interpretation

Data Analysis and Interpretation

Research in retail is very essential, as customer preferences and choices are dynamic and change frequently, the retail company needs to understand these before redesigning its processes for enhancing business and many more. Since customer interaction takes place at the store , there is a big opportunity to gather first hand information and feedback from customers through research and survey.

The major objectives of analysis of data are: To evaluate and enhance data quality Describe the study population and its relationship Examine effects of other relevant factors Seek further insight into the relationship observed or not observed Evaluate impact and importance.

UNDERSTANDING THE SALES STAFF BEHAVIOUR TOWARDS CUSTOMER

Target customer age % wise

This Table reveals about age group of customers at DIGIWORLD.

AGE GROUP OF RESPONDENT

AGE GROUP 35-50 25-35 51 & ABOVE BELOW 25 NO. OF RESPONDENT 66 26 6 2 % OF RESPONDENT 66 26 6 2

51 above 6%

Chart Title

below 25 2%

25-35 26% 35-40 66%

Pie chart-1 Source: Primary Data

Inference:
From the Table-1 and Pie chart-1 depicted above, Out of 100 respondents who answerd the questionnaire, 66% people fall in the age group 35-40 years, 26% people fall in the age group 25-35 years,6% people fall in the age group 51 & above years, 2% people fall in the age group of below 25 years.From the above analysis, it is observed that majority of the residents fall in the age group 35-40 and 25-35.

Target Customer- Education Wise

This table explains about education level of customers of DIGIWORLD.
Education Level of Respondents Education Level GRADUATE UP TO HSC POST GRADUATE OTHER No. of Respondents 41 48 9 2 % of Respondents 41 48 9 2

Table-2

Chart Title
GRADUATE UP TO HSC 2% 9% 41% POST GRADUATE OTHER

48%

Pie chart-2
Source: Primary Data

Inference: From the table, pie chart depicted above, Out of 100 respondents who answered the questionnaire, 48% people belong up to H.S.C. category education level, 41% people to Graduate category education level, 9% people belong to Post Graduate category education level and 2% people belong to others category education level.

Occupation of Respondents
This table describes the occupation of respondents who gave the answer of questionnaire and explain class of customers at DIGIWORLD.

Table-3 Occupation of Respondents % of Occupations Salaried House Wife Self employed Business No. of Respondents 40 8 13 39 Respondents 40 8 13 39

Chart Title
salaried houswife self-employed business

39%

40%

13%

8%

Pie Chart-3 Source: Primary Data Inference: From the table, pie chart depicted above,

On this basis of 100 respondents who answered the questionnaire, 40% people belong to Service category, 39% people belong to Business category, 8% people belong to House Wife category and 13% people belong to Self-employed category.

Customer Likeness about DIGIWORLD.

This table describes the LIKENESS of respondents about DIGIWORLD.
This table also reveals the opinion of customers for visiting a DIGIWORLD. It means the convenience of the customer to visit a supermarket based on the different factors like better price, customer service, , store ambience (it determined by store layout, soothing music, tempting visual display of the products with self selection facility, etc.), customer service, better price, value for money.

Table-4 Likeness of Respondents about DIGIWORLD % of Likeness Ambiance Better customer service Better price Multi brand option Value for money Any other 6 48 12 32 1 6 48 12 32 1 No. of Respondents 1 Respondents 1

Chart Title
ambiance better price value for money better customer service multibrand option any other 1% 6% 1%

32% 48%

12%

Pie-chart 4 Source: Primary Data Inference: From the table, pie chart depicted above. Out of 100 respondents who answered the questionnaire, 1% people likes ambiance,6% likes customer service, 48% thinks they get better price so they like to shop from DIGIworld ,32% like because they think they get value for money and 1% goes there for any other reason. So this question it reveals that customer likes DIGIWORLD because they get better price & value for money. But still DIGIWorld needs to improve its ambiance and customer service.

WHAT CUSTOMER THINKS ABOUT ATTITUDE OF SALES STAFF AT DIGIWORLD

This table reveals the opinion of customers about attitude of sales staff at a DIGIWORLD store. TABLE NO 5

PERCEPTION OF CUSTOMER ABOUT SALES STAFF ATTITUDE

PERCEPTION VERY GOOD GOOD AVERAGE CAN BE IMPROVED POOR 92 3 2 0 NO OF RESPONDENT 3 % of Respondents 3 92 3 2 0

80 70 60 50 40 30 20 10 0

Series1

BAR-CHART-1
Source:- Primary Data Inference:From the Table-5, Bar Chart-1 depicted above,

Out of 100 respondents who answered the questionnaire, 92% thinks that DIGIWORLD sales staff are attitude wise good,3% says very good,3% says average,2% says can be improved . By this question it reveals that attitude wise DIGIWORLD SALES STAFFS ARE REALLY GOOD.

WHAT CUSTOMER THINKS ABOUT APPROACH OF SALES STAFF AT DIGIWORLD.

This table reveals the opinion of customers about attitude of sales staff at a DIGIWORLD store.
TABLE NO 6 PERCEPTION OF CUSTOMER ABOUT SALES STAFF APPROACH PERCEPTION VERY GOOD GOOD AVERAGE CAN BE IMPROVED POOR NO OF RESPONDENT 2 68 28 2 0 % of Respondents 2 68 28 2 0

APPROACH
Series1 74

18 2 VERY GOOD GOOD AVERAGE 6

CAN BE IMPROVED

BAR-CHART-2
Source:- Primary Data Inference:-

From the Table-6, Bar Chart-2 depicted above, Out of 100 respondents who answered the questionnaire, 68% thinks that DIGIWORLD sales staff are approach wise good,2% says very good,28% says average,2% says can be improved . By this question it reveals that approach wise DIGIWORLD sales staff are above average

If training will be given than it can be improved.

WHAT CUSTOMER THINKS ABOUT PRODUCT KNOWLEDGE OF SALES STAFF AT DIGIWORLD.

This table reveals the opinion of customers about PRODUCT KNOWLEDGE of sales staff at a DIGIWORLD store.
TABLE NO 6 PERCEPTION OF CUSTOMER ABOUT SALES STAFF PRODUCT KNOWLEDGE PERCEPTION VERY GOOD GOOD AVERAGE CAN BE IMPROVED POOR NO OF RESPONDENT 2 74 18 6 0 % of Respondents 2 74 18 6 0

PRODUCT KNOWLEDGE
Series1

74 18 GOOD AVERAGE

2 VERY GOOD

6 CAN BE IMPROVED

BAR CHART-3

From the Table-7, Bar Chart-3 depicted above, Out of 100 respondents who answered the questionnaire, 74% thinks that DIGIWORLD sales staff are product knowledge wise good,2% says very good,28% says average,2% says can be improved . By this question it reveals that product knowledge wise DIGIWORLD sales staff are above average. If training will be given than it can be improved.

WHAT CUSTOMER THINKS ABOUT COMMUNICATION SKILLS OF SALES STAFF AT DIGIWORLD. This table describes the communication skills of sales staff at DIGIWORLD.
PERCEPTION OF CUSTOMER ABOUT SALES STAFF COMUNICATION SKILL PERCEPTION VERY GOOD GOOD AVERAGE CAN BE IMPROVED POOR NO OF RESPONDENT 2 74 19 5 % of Respondents 2 74 19 5

COMMUNICATION SKILL
Series1 74

19 2 VERY GOOD GOOD AVERAGE 5 CAN BE IMPROVED

BAR CHART -4 From the Table-7, Bar Chart-24depicted above,

Out of 100 respondents who answered the questionnaire, 74% thinks that DIGIWORLD sales staff are COMMUNICATION wise good,2% says very good,19% says average,5% says can be improved . By this question it reveals that COMMUNICATION wise DIGIWORLD sales staff are above average.

If training will be given than it can be improved.

UNDERSTANDING SALES STAFF PERCEPTION AND SATISFACTION LEVEL AT DIGIWORLD

10. Findings of the Study

Findings of the Study

After completing the survey and analyzing the responses of the persons contacted. I came across the following facts Consumer life style and spending pattern are changing, more and more customers are purchasing more ticket size product. Most of customers belong to an age group of 25-50 Most customer come to DIGIWORLD for better price and value for money. DIGIWORLD sales staffs are attitude wise good but still they need training and other managerial guidance to improve their approach and product knowledge. Most of the customers complained-- In DIGIWORLD Price is different from one DIGIWORLD to another DIGIWORLD store Product assortment is not good. Arrangement of products is not systematic. Videocon LED products are not available in sufficient amount Store opening time should be earlier. Most of the customers were not too happy with level of service. Maximum time A.C. doesnt work properly. Products are not updated; new launched products are not available.

SALES STAFF- Age Wise:This Table reveals about age group of sales staff at DIGIWORLD.

Age Group of Sales staff Age Group 20-25 25-30 30-35 No. of sales staff 4 5 2 % of Respondents 36 46 18

AGE
30-35 18%

20-25 36%

25-30 46%

Out of 10 sales staff 36% comes under at an age group of 20-25,18% comes under at an age group of 30-35,46% comes under at an age group of 25-30.So here it reveals that most of the sales staff are youth.

SALES STAFF- Gender Wise:Table-2 GENDER GENDER MALE FEMALE No. of sales staff 9 2 % of Respondents 82 18

GENDER
MALE FEMALE

18%

82%

Out of 11 sales staff 82% are male and only 18% are female. So here we can say that in Mumbai & Sub-urbs maximum sales staff are male.

SALES STAFF- Qualification :QUALIFICATION QUALIFICATION INTER 10 TH PASS GRADUATE No. of sales staff 5 2 4 % of Respondents 46 18 36

Chart Title
INTER 10 TH PASS GRADUATE

36%

46%

18%

From 11 sales staff 46% are inter pass,36% are graduate , and 18% are 10 th pass.

SALES STAFF- feed back about DIGIWORLD:FEEDBACK OF SALES STAFF ABOUT DIGIWORLD FEEDBACK VERY GOOD MULTIBRAND IDEAS VALUE FOR OOUTLETS ANY OTHER MONEY No. of sales staff 4 2 4 1 % of Respondents 9 36.5 36.5 9

Chart Title
VERY GOOD IDEAS MULTIBRAND OUTLET VALUE FOR MONEY ANY OTHER

18%

9%

36.5% 36.5%

Out of 11 sales staff 36.5 % sales staff feel that DIGIWORLD is a value for money store,9% thinks its a good idea,36.5% thinks its an multibrand outlet & rest 9 % thinks other.

SALES STAFF-SATISFACTION ABOUT TEIR JOB AT DIGIWORLD:SATISFACTION SATISFIED YES NO No. of sales staff 10 1 % of Respondents 91 9

Chart Title
YES NO

9%

91%

Out of 11 sales staff 10 sales staff are satisfied with their job, it does mean that 91%employee are satisfied with their job.

SALES STAFF-REQUIREMENT To Improve Sale:SUGGESTION REQUIREMENT MARKETINGSUPPOR MORE PRODUCT T SUSUPPORT SU PRICING SUPPORT REPLENISHMENT AFTER SALE SERVICE No. of sales staff 2 3 2 3 1 % of Respondents 18 28 18 27 9

REQUIREMENT TO IMROVE SELL

MORE MARKETING SUPPORT PRICING PRODUCT AFTER SALES SERVICE MORE PRODUCT PROPER PRODUCT REPLANISHMENT

9% 27%

18%

28% 18%

Out of 11 sales staff in different store 28% needs more product,27 % needs proper product replenishment,9 % needs after sales service,18 % sales staff needs more marketing support.

IF OPTION GIVEN WHERE SALES STAFFS WOULD LIKE TO WORK APART DIGIWORLD

SALES STAFF PREFERD STORE TO WORK WITH PREFFERD VIJAY SALES STORE CROMA SNEHANJALI RELIANCE ANY OTHER DIGITAL No. of sales staff 4 1 1 2 3 % of Respondents 37 9 9 18 27

PREFERED STORE BY SALES STAFF TO WORK

CROMA VIJAY SALES SNEHANJALI RELIANCE DIGITAL ANY OTHER

9% 27% 37% 18% 9%

If option given 37% sales staff said they would like to work with Vijay sales, which is the highest,18 % told Reliance Digital,9% said Croma & 9% said Snehanjali,27% told any other.

REASON TO WORK WITH OTHER STORE

REASON REASON MORE SALARY FUTURE COMPANY GROWTH INCENTIVE CULTURE BRAND NAME No. of sales staff 1 7 1 2 0 % of Respondents 9 64 9 18 0

Chart Title
MORE SALARY COMPANY CULTURE FUTURE GROWTH INCENTIVE

18% 9%

9%

64%

Most of the sales staff told that main reason to work with other brand is future growth & the % of respondent told this was 64%

Findings of the Study

After completing the survey and analyzing the responses of the SALES STAFF contacted. I came across the following facts DIGIworld is a very new concept, so no employee has worked more than 18 months Most of the sales staff need pricing support, more marketing support and most importantly proper product replenishment to improve their sell. According to DIGIWORLD sales staff the salary and incentive structure is comparatively less to other electronic store. At wasai coco the ambiance is not proper.(e.g ac is not working. no proper pangram).

Most of the sales staff complained-- Less incentive no proper product replenishment lack of product availability comparatively less salary at wasai coco store no proper delegation of work less marketing support less pricing support

12. Suggestions and Recommendations

People at DIGIWORLD, say that DIGIWORLD should employ experienced sales staff so that they can better explain the quality and features of the products. Some of the people find in-store environment of digiworld very dull, so try to maintain nice store image which attracts the customers and it works in word of mouth marketing for attracting more customers.

Variety of products should be increased for better selection by the customers so that customers can choose from a huge lot of items of different companies having different features as the customers at DIGIWORLD complained more regarding variety of products.

Store layout and planogram of vasai coco should be redesigned that a customer can have easy access to the product. DIGIWORLD should provide membership card ( on that card one unique no. should be there and offer some point system on every purchase that will attract the customers, through that DIGIWORLD can increase its sales.)

People generally search for the product on offer so the high margin product should be up fronted that mean those item should be in the eye height so that it easily catches the customers attention and generates impulse purchase.

To improve Product visualization the Company should do visual merchandising in better way. DIGIWORLD should do more intensive advertisement through pamphlets, local newspaper, banners, FM Radio, Kiosks for creating more awareness. Variety of products should be increased with deep assortment for better selection by the customers so that customers can choose from huge lot of items of different companies having different features.

Customers are very eager to know about offers, discount schemes provided on consumer durable and home appliances then DIGIWORLD should do better marketing for creating awareness about offers and discount schemes.

Complained and feedback should be taken care in well manner to create the loyalty and goodwill. Merchandise should be arranged properly. Company should give information to the customers through the marketing gimmick (sms) using database of customers.

13. Limitations of the Study

Limitations of the Study

Following are the few limitation of the particulars research study. The sample size chosen is limited to 100 for customer only because of time and financial constraint. 98% respondent were male This study was based purely in the store at Vasai, Mira road, Bhyndar,Ullash Nagar, o Bandra,Kalyan,Borivali,Dombivali DIGIWORLD. Data collected may not be a representation of the entire population. The time duration for this project was only for a period of 45 days.. This study was limited to the capabilities and willingness of the respondents in appropriately answering the questions and information given by respondents may be correct and may not be correct. For employee I only took 11 sample .

14. Conclusion

CONCLUSION
In the organized consumer durable and home appliance market of Mumbai and its sub-urb, VIDEOCON has come up with DIGIWORLD , giving good competition to its competitors like Vijay Sales,Croma,Reliance Digital, Snehanjali and other electronic outlets. In the near future, it plans to open many stores in Mumbai and its sub-urbs. Many more competitors has entered the market and many are about to enter the market, making DIGIWORLDs journey even tougher. Hence, DIGIWORLDs has to take some important steps to overcome its problem areas and implement the suggestions before the existing and new retailers grab the opportunity making DIGIWORLDs existence even more challenging. To sum up, DIGIWORLD is facing tough competition from its competitors Vijay Sales, Croma, Reliance Digital, etc, who have grabbed half of the market by establishing its stores in prime area of the city. Digiworld has to do intensive media advertisements by roping in celebrities as brand ambassadors to create awareness of its existence, since most of the customers came to know only through friends and family.

Bibliography

Books:Marketing Management (13th Edition) - By Philip Kotler, Keller, Koshy and Jha Principles of Marketing (11th Edition) By Philip Kotler and Gary Armstrong Research Methodology The Art of Retailing -- C.R. Kothari - A.J. Lamba

Reference:www.google.com www.videocon.com www.indiaretailing.com www.retailindustry.com www.edigiworld.com