A Study On: "Customer Survey Report in Retatil Secctor"
A Study On: "Customer Survey Report in Retatil Secctor"
A Study On: "Customer Survey Report in Retatil Secctor"
BIG BAZAAR HYDERABAD. Submitted in Partial Fulfillment of the Award of the Degree Of MASTER OF BUSINESS ADMINISTRATION Submitted By
D.UMESH M.B.A
by me in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION I also declare that this project work is a result of my effort and it has not been submitted to any other university for the award of any degree or diploma.
PLACE: DATE:
D.UMESH
ACKNOWLEDGMENT
With a profound sense of thankfulness, I acknowledge my indebtedness to my company guide Mr. MANJUL PATEL, Faculty S.V PHANINDRA NATH NAIDU, for their valuable guidance, timely suggestions and constant encouragement. Their insightful criticisms and patience throughout the duration of this project have been instrumental in allowing this project to be completed. Their continual support and careful attention to the details involved in producing a document of this nature are very much appreciated.
D.UMESH
Quality of service delivery expected by the customers. An internal drive to satisfy an unsatisfied need of customer. Providing good service in a pleasant manner and meeting the customer's expectations; The measure of the degree to which a product or service meets the customer's expectations;
Most companies say that they believe in great customer service, but few set up a system to ensure that they provide it. To deliver excellent customer service takes both understanding what your customers want and the way to see that they receive it. DELIGHTED CUSTOMERS ARE PROFITABLE: It is widely accepted that it is almost five times more profitable to sell to an existing customer than to find a new customer. More important, the difference between satisfied customers and very satisfied customers can make a big difference in customer repeat business and the profits. Measuring client survey is very important and distinguishing between degrees of survey by using is crucial.
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Customer surveys with standardized survey question insure that you will collect the same information from everyone. Remember that few of your customers will be interested in "filling out a questionnaire". It's work for them without much reward. By launching a customer survey as an attempt to find out "how we can serve you better" -- your customers will feel less put upon. Here are a few of the possible dimensions that one could measure: Staffs behavior Complaints or problems Billing experience Securitys behavior Stores ambience & cleanliness Overall experience in store Survey to achieve a Competitive advantage
Only 4% of all customers with problems complain The average person with a problem eventually tells 9 other people Satisfied patients and customers tell 5 other people about their good treatment
METHODOLOGY
RESEARCH PLAN: Research approach: - CUSTOMERS SUREY REPORT. RESEARCH INSTRUMENT: The research instrument used for collecting primary data were the questionnaire METHODOLOGY ADOPTED FOR THE STYDY: Observing the working of various departments like finance, safety, human resources, production, purchasing etc. Discussion with the company executives, managers and employees. Visiting and surfing website of the company Customer survey.: PRIMARY DATA: its comes through books &magazines SECONDARY DATA:
PERIOD OF THE STUDY In this project period: Organization: Big Bazaar Location: Hyderabad
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LIMITATIONS
The survey was limited only to the customers of Big Bazaar outlet at Hyderabad stores in andhrapradesh. A sample size of only 200 respondents could be taken. Time is the major limiting factor as the available time for survey was only three months. The accuracy of the findings is trusted by the accuracy of the statistical tools used for analysis. Retailers are using sophisticated communications and information systems to manage their business. The use of new technologies helps retailers reduce their operations costs, while better serving their customers. To compete against non-store retailers, stores are now becoming more than just places to buy products. They are offering entertaining and educational
concepts and becoming industry leaders, while traditional firms have had to rethink their business.
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CHAPTER PLAN: I would like to choose five Chapters for my project work. RESEARCH INSTRUMENT
Sampling Unit Sample Size Sampling Method Research method Type of data Research instrument Customers purchase at Big bazaar, Hyderabad 200 Random Sampling Survey Primary data
- Structured questionnaire
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CHAPTER-2
REVIEW OF LITERATURE
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REVIEW OF LITERATURE
Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fighting to win the hearts of customer who is God said by the business tycoons. There is always a first mover advantage in an upcoming sector. In India, that advantage goes to BIG BAZAAR. It has brought about many changes in the buying habits of people. It has created formats, which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies and promotional activities. The research titled A Study on the effective promotional strategy which influences customer to purchase a product of Big Bazaar helps us to understand the effect of promotional strategy which is responsible for attracting customer towards big bazaar This study helpful to top level management to improve the present promotional strategy of BIG BAZAAR. The report deals with the impact of promotional activity which attracting customer towards big bazaar. The research was carried out as per the steps of Marketing Research. The well supportive objectives were set for the study. To meet the objectives primary research was undertaken. The data collection approach adopted was experimental research & survey research. The instrument used for the data collection was observation & questionnaire. The target respondents were the visitors of BIG BAZAAR, with the sample size of 100 for the study of sales management of the company. Tables & charts were used to translate responses into meaningful information to get the most out of the collected data. Based on those the inferences have been drawn with peer supportive data. Retail managers today must make complex decisions on selecting target markets and retail locations, determining what merchandise and services to offer, negotiating with supplier and distributing merchandise to stores, training and motivating sales associates, and deciding how to price, promote and present merchandise. The retail is the combination of factors retail used to satisfied customer needs and influences their purchase decision. Its include the type of merchandise and services offered, merchandise pricing, advertising, promotional programs store design merchandise display, assistance to customer provided by salespeople, and convenience of the stores location.
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It is the effective blending of all the elements of retail activities within the retail organization that determines the success of retail management. Discuss this statement and explain with retail examples how the elements of retail could be blended to ensure the success of retail operation.Retailing in India is one of the pillars of its economy and accounts for 14percent of its GDP.The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail market in the world, with 1.2 billion people. Indias retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).Until 2011, Indian central go vernment denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even singlebrand retail was limited to 51% ownership and a bureaucratic process.
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In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.[5] The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, on hold Indian till it government placed the retail reforms reaches a consensus.[6] In January 2012,
India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores. In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in India and set up 25 retail stores. Fitch believes that the 30 percent requirement is likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India. Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local mom and pop store, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Organized retailing was absent in most rural and small towns of India in 2010. Supermarkets and similar organized retail accounted for just 4% of the market. 16
a vegetable retail market in Kerala, India on a sunny day; During monsoons, vendors experience more produce spoilage. Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. Shoppers typically stand outside the retail shop, ask for what they want, and cannot pick or examine a product from Access storage shopper the to area shelf. the is
shelf or product limited. Once the requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equi valent to the product the consumer is asking for. The product typically has no price label in these small retail shops; although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day. Price is sometimes negotiated between the shopper and shopkeeper. The shoppers do not have time to examine the product label, and do not have a choice to make an informed decision between competitive products.
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India's retail and logistics industry, organized and unorganized in combination, employs about 40 million Indians (3.3% of Indian population).The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail shops in India employ family members, do not have the scale to procure or transport products at high volume wholesale level, have limited to no quality control or fake-versusauthentic product screening technology and have no training on safe and hygienic storage, packaging or logistics. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. The unorganized retail shops typically offer no after-sales support or service. Finally, most transactions at unorganized retail shops are done with cash, with all sales being final. Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licenses" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30 percent. Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between 2000 to 2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry. India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale. Then, it required government approval. The approval requirement was relaxed, and automatic permission was granted in 2006. Between 2000 to 2010, Indian retail attracted about $1.8 billion in foreign direct investment, representing a very small 1.5% of total investment flow into India. Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary restraint inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence.
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Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used only for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm output of India, and grossly inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable agricultural output in India, on average, every year. Indian laws already allow foreign direct investment in cold-chain infrastructure to the extent of 100 percent. There has been no interest in foreign direct investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. The risk of cold storing perishable food, without an assured way to move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organized retail competition and with a ban on foreign direct investment in multi-brand retailers, foreign direct investments are unlikely to begin in cold storage and farm logistics infrastructure. Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency. Small Indian farmers realize only 1/3rd of the total price paid by the final Indian consumer, as against 2/3rd by farmers in nations with a higher share of organized retail.[12] The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry. India has had years of debate and discussions on the risks and prudence of allowing innovation and competition within its retail industry.[13] Numerous economists repeatedly recommended to the Government of India that legal restrictions on organized retail must be removed, and the retail industry in India must be opened to competition. For example, in an invited address to the Indian parliament in December 2010, Jagdish Bhagwati, Professor of Economics and Law at the Columbia University analysed the relationship between growth and poverty reduction, then urged the Indian parliament to extend economic reforms by freeing up of the retail sector, further liberalization of trade in all sectors, and introducing labor market reforms. Such reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the life of India's poorest.,
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A 2007 report noted that an increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. The Retail Business in India is currently at the point of inflection. As of 2008, rapid change with investments to the tune of US $ 25 billion was being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF), it is valued at about US$ 395.96 billion. Organised retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian economy has registered a growth of 8% for 2007. The predictions for 2008 is 7.9% The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country. Before 2011, India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India spoils because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer., One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share.[21] A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers.,
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The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by 2020.The projected increase alone is equivalent to the current retail market size of France. As regards fresh fruit and vegetables, however the store level penetration is low compared to other categories for various reasons: (i) high wastage; (ii) lack of temperature-controlled isles; and (iii) low profit margins in bulk produce (potatoes, tomatoes, and onions). In addition, the customer adoption rate is also low in fresh fruit and vegetables because of its daily need-based requirement and the distance factor. Nevertheless, fruit and seasonal vegetables are higher profit-margin produce: fruit sell at 40 per cent margin on the cost price, and seasonal and exotic vegetables around 30 per cent above the cost price. Across the fruit and vegetable section, the net profit gain is between 8 per cent and 10 per cent on an average. As a result, organized retail firms are strategizing convenience format stores up to 2,000 sq. ft. area in order to penetrate the local neighborhood markets. Large retailers are heading for a pyramidal approach by launching several small-sized neighborhood convenience stores in tandem with a few large hypermarket or department store formats. This strategy is beneficial to large retail firms because they can absorb supply-chain costs across formats. Further, bulk purchases enable them to squeeze profit margin from suppliers. However, the local traditional retailers in the nearby locations feel more intense competition. The product mix in the hypermarket format is typically 60 per cent food and 40 per cent nonfood. The format incorporates a larger share of apparel, grocery products in staples, and FMCG goods, of which the share of apparel merchandize is 30 per cent. Fruit and vegetables, mobile phones, alcohol-based beverages and pharmaceutical electronics and household durable product categories encompass a much smaller share. Another dominant format used by modern retailers includes the department and specialty stores focusing primarily in clothing, cosmetics, artificial jewelry and watches, and household durables. The discount and convenience formats largely concentrate on fruit and vegetables and grocery products. Gradually, the organized retail value chain would prefer to lean towards the direct procurement approach in order to reduce the cost of the middleman. 21
The direct procurement model benefits modern retailers for the following reasons: (i) maximizing its gains on large volume transactions; (ii) implementing store brand promotional schemes; and (iii) minimizing the operational cost. In the case of FMCG and staple products, the firms procure primarily from large suppliers for branded products and small suppliers for store brand private labels. As regards apparel, a mix of large and small suppliers supply directly for private labels. Currently, the modern retailers work on a commission-based margin with branded suppliers as opposed to the slotting-fee position where a manufacturer or supplier gets shelf space by paying a certain fee structure. By having commission-based direct contract terms with branded suppliers, retailers are able to arrange various promotional schemes in order to attract customer footfalls to their stores and secure discounted price on bulk purchase. This business tactic is particularly disadvantageous to the traditional retailers because their volume demand is very small and is primarily on credit payments.
EMPLOYMENT GENERATION:
Finally, but most importantly, the employment generated by organized retail is building a quality labour class that is gaining vocational training in skilled and unskilled jobs at the graduate and tenth class level Foreseeing the demand for trained staff, leading organized retailers are creating their captive human resources pool through internal training and programmes and tie-ups with retail management schools. Low-price high-volume strategy: by keeping no fancy frills front-end and by becoming an intermediary at the back end, Subhiksha leverages on discounted prices on bulk purchases and cash payments. Single- brand strategy: leverages on high margins in private labels, and targets consumers in socio-economic class B and C. if they so choose. Actual implementation of policy will be within the parameters of state laws and regulations.
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The opening of retail industry to global competition is expected to spur a retail rush to India. It has the potential to transform not only the retailing landscape but also the nation's ailing infrastructure., A Wall Street Journal article claims that fresh investments in Indian organized retail will generate 10 million new jobs between 20122014, and about five to six million of them in logistics alone; even though the retail market is being opened to just 53 cities out of about 8000 towns and cities in India. Not only do these losses reduce food security in India, the study claims that poor farmers and others loose income because of the waste and inefficient retail. Over US$50 billion of additional income can become available to Indian farmers by preventing post-harvest farm losses, improving transport, proper storage and retail. Organized retail is also expected to initiate infrastructure development creating millions of rural and urban jobs for Indias growing population. One study claims that if these post-harvest food staple losses could be eliminated with better infrastructure and retail network in India, enough food would be saved every year to feed 70 to 100 million people over the year. Supporters of retail reform, The Economist claims, say it will increase competition and quality while reducing prices helping to reduce India's rampant inflation that is close to the double digits. These supporters claim that unorganized small shopkeepers will continue to exist alongside large organized supermarkets, because for many Indians they will remain the most accessible and most convenient place to shop. Amartya Sen, the Indian born Nobel prize winning economist, in a December 2011 interview claims foreign direct investment in multi brand retail can be good thing or bad thing depending on the nature of the investment. Quite often, claims Professor Sen, FDI is a good thing for India.
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Supporters of retail reform who have voiced the need to promote organized retail include Chief Ministers of several states of India, several belonging to political parties that have no affiliation with Congress-led central government of India. The list includes the Chief Ministers of Maharashtra, Andhra Pradesh, Tamil Nadu and Gujarat. In a report submitted earlier in 2011, these Chief Ministers urged the Prime Minister to prioritize reforms to help promote organized retail, shorten the retail path from farm to consumer, allow organized retail to buy direct from farmers at remunerative produce prices, and reduce farm to retail costs Similarly, the Chief Minister of Delhi has come out in support of the retail reform, as have the Chief Ministers of the two farming states of Haryana and Punjab in north India., The Chief Ministers of Haryana and Punjab claim that the announced retail reforms will immensely benefit farmers in their states. The Chief Minister of the state of Maharashtra - the state with the highest GDP in India and home to its financial capital Mumbai - has also welcomed the retail reform., Tarun Gogoi, the Chief Minister of Assam, an eastern state in India, announcing his support to the retail reform, claimed "this will go a long way in bringing about a sea change in rural economy. The decision will boost agriculture and allied sectors, manufacturing, logistics, integrated cold chains, refrigerated transportation and food processing facilities in a big way." Criticising the BJP-organized opposition, Gogoi claimed that these parties who had just a few years ago dubbed opening up retail as good for India, are now singing a different tune.
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CURRENT SUPERMARKETS
Existing Indian retail firms such as Spencer's, Food world Supermarkets Ltd, Nilgiri's and ShopRite support retail reform and consider international competition as a blessing in disguise. They expect a flurry of joint ventures with global majors for expansion capital and opportunity to gain expertise in supply chain management. Spencer's Retail with 200 stores in India, and with retail of fresh vegetables and fruits accounting for 55 per cent of its business claims retail reform to be a win-win situation, as they already procure the farm products directly from the growers without the involvement of middlemen or traders. Spencers claims that there is scope for it to expand its footprint in terms of store location as well as procuring farm products. Foodworld, which operates over 60 stores, plans to ramp up its presence to more than 200 locations.
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CHAPTER-3
COMPANY PROFILE & INDUSTRY PROFILE
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COMPANY PROFILE
Big Bazaar PRILs Hypermarket format that truly heighten up the expectation of value conscious Indian customer to a new level ever before, its Head quarter in Jogeshwari, Mumbai. It has changed the customers perception to that extent Big Bazaar can provide real value
for their money. The first store opened in Kolkata in 2001 at VIP and was followed by stores in Hyderabad and Bangalore in short span of 22 days. These stores contributed over Rs.43 crores to the companys business and over Rs. 2.89 crores to the profit in first year itself. With giving actual value of the money big bazaar fully came true on the expectation of the Indian common man. Actually big bazaar targets lower middle class customer so by seeing Indian economic prospective it is very popular among the its target market. At this time Mahindra shing dhoni, Asain is a brand ambassador of big bazaar. Its tagline is Isse sasta aur accha kahin nahin First Food Bazaar format was added as Shop- In-Shop within Big Bazaar in the year 2002 Big Bazaar and Food Bazaar -blend the look, feel and touch of Indian bazaars with modern retail concepts of choice, convenience and quality. By observing the customer big bazaar announce
Wednesday as a cheapest day of the week .with all this popularity of big bazaar is touching a land mark every and because of this within a span of eight year the total no. of store has gone up to 113. Mainly big bazaar has been established at busy street and it has been designed in such a manner so that may look crowded.
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SWOT ANALYSIS OF BIG BAZAAR STRENGTH High brand equity in evolving retail markets. State of art infrastructure of the big bazaar outlets. Point of purchase promotions to increase the purchase. Variety of stuff under single roof increasing customer, time and available choices. Every day low price. WEEKNESS Unable to meet store opening target. Falling revenue per square fit.
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OPPORTUNITY Organised retails are just 4.15% of total pie of Indian retail market. Evolving customer preferences in recent years Targeting Area more prone to. Economic condition development. Store experience improvements. THREAT Competitors, Big global players are planning to foray into the market. Unorganized retail market of India. Government policies are not defined in emerging market like India.
Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature. Pantaloon is not just an organization it is an institution, a centre of learning & development. We believe that knowledge is the only weapon at our disposal and our quest for it is focused, systematic and unwavering. At Pantaloon, we take pride in challenging conventions and thinking out of the box, in travelling on the road less travelled. Our corporate doctrine, Rewrite Rules, Retain Values is derived from this spirit. 29
Over the years, the company has accelerated growth through its ability to lead change. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing even as it expanded its retail presence at the front end, well before any other Indian retail company attempted this. It was the first to introduce the concept of the retail departmental store for the entire family through Pantaloons in 1997. The company was the first to launch a hypermarket in India with Big Bazaar, a large discount store that it commissioned in Kolkata in October 2001. And the company introduced the country to the Food Bazaar, a unique 'bazaar' within a hypermarket, which was launched in July 2002 in Mumbai. Embracing our
leadership value, the company launched aLL in July 2005 in Mumbai, making us the first retailer in India to open a fashion store for plus size men and women. Today we are the fastest growing retail company in India. The number of stores is going to increase many folds year on year along with the new formats coming up. The way we work is distinctly "Pantaloon". Our courage to dream and to turn our dreams into reality that change peoples lives, is our biggest advantage. Pantaloon is an invitation to join a place where there are no boundaries to what you can achieve. It means never having to stop asking questions; it means never having to stop raising the bar. It is an opportunity to take risks, and it is this passion that makes our dreams a reality. Come enter a world where we promise you good days and bad days, but never a dull moment!
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BOARD OF DIRECTORS
Mr. Kishore Biyani, Managing Director Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. Mr. Gopikishan Biyani, Whole time Director Gopikishan Biyani is a commerce graduate and has more than twenty years of experience in the textile business. Mr. Rakesh Biyani, Whole time Director Rakesh Biyani is a commerce graduate and has been actively involved in category management; retail stores operations, IT and exports. He has been instrumental in the implementation of the various new retail formats. Mr. Vijay Kumar Chopra, Independent Director V.K.Chopra is a fellow member of The Institute of Chartered Accountants of India (ICAI) by profession and is a Certified Associate of Indian Institute of Bankers (CAIIB). His banking career spans over 31 years and he has served senior management positions in Central Bank of India, Oriental Bank of Commerce, SIDBI, Corporation Bank and SEBI. Mr. Shailesh Haribhakti, Independent Director Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and past president of Indian merchant Chambers. He is on the Board of several Public Limited Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc. He is on the Board of Company since June 1, 1999.
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Mr. S Doreswamy, Independent Director S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves on the board of DSP Merrill Lynch Trustee Co and Ceat Limited among others. Dr. D O Koshy, Independent Director D. O. Koshy holds a doctorate from IIT, Delhi and is the Director of National Institute of Design (NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a renowned consultant specializing in international marketing and apparel retail management. Ms. Bala Deshpande, Independent Director Bala Deshpande is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing Ltd, among others. Mr. Anil Harish, Independent Director Anil Harish is the partner of DM Harish & Co. Associates & Solicitors and an LLM from University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank and Hinduja TMT, among others.
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Rakesh Biyani Anshuman Singh Damodar Mall Hans Udeshi Hemchandra Javeri Kailash Bhatia
CEO Retail CEO - Value Fashion CEO - Incubation & Innovation CEO - General Merchandising CEO - Home Solutions Retail (India) Ltd. CEO - Integrated Merchandising Group
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Madhumati Lele Sadashiv Nayak Sadashiv Nayak Sanjeev Aggarwal Vishnu Prasad Kruben Moodliar Mayur Toshniwal Rajesh Joshi Rohit Malhotra Sandeep Marwaha Sanjay Jog Ushir Bhatt Atul Takle Prashant Desai Vinay Shroff
CEO - Services CEO - Big Bazaar CEO - Food Bazaar CEO Pantaloons CEO - Central & Brand Factory President- Operations (Value Retailing) Head - Operations (North Zone) Head - Operations (West Zone) Head - Operations (South Zone) Head - Operations (East Zone) Head - Human Resources Executive Board Member Head - Corporate Communications Head - Group IR & New Ventures (PE) Head - Supply Chain Management
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INDUSTRY PROFILE
Retail means selling goods and services in small quantities directly to customers. Retailing consists of all activities involved in marketing of goods and services directly to consumer for their personnel family and household use. The Indian retailing industry is becoming intensely competitive, as more and more payers are Vying for the same set of customers. The major retail players are Pantaloon Retail, Shoppers Stop, Reliance, etc., Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in 1995 and now it is in peaking stage in 2006. India's retail market is expected to grow tremendously in next few years. India shows US$330 billion retail market that is expected to grow 10% a year, with modern retailing just beginning. India ranks first in 2005. In fact, in 2005 and 2006, India is the most compelling opportunity for retailers, because now India is in peaking stage. Sector details 1. Introduction to retail industries. 2. Retail word is derived French word retailer means to cut off a piece. 3. Retailing includes all the activities involved in selling goods or services to the final customer for personnel or non-business use. 4. Supermarket is a retailing of a wide variety of consumer products under one roof, ample stock, stock of several brands & extended business hours.
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HISTORY OF RETAILING
Retail concept is old in India. Worlds first departmental store started in Rome. Todays kirana stores are based on Manuscript & Kautilyas arthshastra.Haats, Melas, Mandis & door to door salesmen are traditional Indian retail.Vishal Mega Mart is a retail sector, which is providing good quality of products in very reasonable price than its competitors. Retailing and wholesaling consist of many organizations designed to bring goods and services from the point of production to the point of use. Retai includes all the activities involved in selling goods or services directly to final consumers for their personal, non-business use. Retailers can be classified in terms of store retailers, non-store retailing, and retail organizations. Store retailers include many types, such as specialty stores, department stores, supermarkets, convenience stores, superstores, combination stores, hypermarkets, discount stores, warehouse stores, and catalog showrooms. These store forms have had different longevities and are at different stages of the retail life cycle. Depending on the wheel-of-retailing, some will go out of existence because they cannot compete on a quality, service, or price basis. Non-store retailing is growing more rapidly than store retailing. It includes direct selling (doorto-door, party selling), direct marketing, automatic vending, and buying services. Much of retailing is in the hands of large retail organizations such as corporate chains, voluntary chain and retailer cooperatives, consumer cooperatives, franchise organizations, and merchandising conglomerates. More retail chains are now sponsoring diversified retailing lines and forms instead of sticking to one form such as the department store. Retailers, like manufacturers, must prepare marketing plans that include decisions on target markets, product assortment and services, store atmosphere, pricing, promotion, And place. Retailers are showing strong signs of improving their professional management and their productivity, in the face of such trends as shortening retail life cycles, new retail forms, increasing intertype competition, and polarity of retailing, new retail technologies, and many others.
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Wholesaling includes all the activities involved in selling goods or services to those who are buying for the purpose of resale or for business use. Wholesalers help manufacturers deliver their products efficiently to the many retailers and industrial users across the nation. Wholesalers perform many functions, including selling and promoting, buying and assortment-building, bulkbreaking, warehousing, transporting, financing, risk bearing, supplying market information, and providing management services and counseling. Wholesalers fall into four groups. Merchant wholesalers take possession of the goods and include full-service wholesalers (wholesale merchants, industrial distributors) and limited-service wholesalers (cash-and- carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order wholesalers). Agents and brokers do not take possession of the goods but are paid a commission for facilitating buying and selling. Manufacturers' and retailers' branches and offices are wholesaling operations conducted by non-wholesalers to bypass the wholesalers. Miscellaneous wholesalers include agricultural assemblers, petroleum bulk plants and terminals, and auction companies. Wholesalers, too, must make decisions on their target market, product assortment and services, pricing, promotion, and place. Wholesalers who fail to carry adequate assortments and inventory and provide satisfactory service are likely to be bypassed by manufacturers. Progressive wholesalers, on the other hand, are adapting marketing concepts and streamlining their costs of doing business. CURRENT SCENARIO India rank first in terms of emerging market potential in retail sector. Current retail market is US $ 215 billion. Growth rate of retail sector in India is 8-10% per annum. Near about 12 million retail outlets are spread across India. FDI in retail sector increases from US $ 3.1 billion in 2003 to over US $7.6 billion in 2009.
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TYPES OF RETAILERS
Retailers are broadly classified into 3 categories Food Retailers. General Merchandise Retailers. Service Retailers.
OTHER SERVICES PROVIDED BY RETAILERS Retail not only provides products to the customer but also gives different types of services like: Airlines & travel agents Banks Health clubs Hotel & Restaurants Movie theatres TECHNOLOGIES USED IN RETAILING SECTOR In-store technologies Interactive kiosks Virtual display case Radio Frequency identification tags Self-scanning & self-checkout system Body scanning Online technology Online display of products nline shopping CHALLENGES Largely urban phenomenon, pace of growth is still slow. Not being recognized as an industry in India so availability of finance is low to new market players.
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High cost of real estate. High stamp duties. Lack of infrastructure. Multiple & complex taxation system. Protest against retail sector. FUTURE STRATEGY It is projected that up to 2010 retail sector will be worth around US $ 300 billion. FDI is going to increase rapidly, up to 2010 retail sector will become biggest industry in India. Retail sector is expected to create 2 million jobs up to 2010. According to Indian Retail Report top 10 players in modern retail trade are going to invest US $ 18-20 billion in next five years. SECTOR DETAILS In India, the most of the retail sector is unorganized. In India, the retail business contributes around 10 percent of GDP. Of this, the organized retail sector accounts only for about 5 percent share, and the expected annual growth rate is 5% per annum and remaining share is contributed by the unorganized sector. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries, theses are named as mom-pop stores. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a low cost structure, they are mostly operated by owners, has very low real estate and labor costs and has low taxes to pay. And it also gives 8% Employment to the country annually. In late 1990's the retail sector has witnessed a level of transformation. Retailing is being perceived as a beginner and as an attractive commercial business for organized business i.e. the pure retailer is starting to emerge now. Organized retail business in India is very small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about 10% of GDP. In this total market, the organized retail accounts for only $8 billion of total revenue. According to A T Kearney, the organized retailing is expected to be more than $23 billion revenue by 2010. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.
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The organized sector is expected to grow faster than GDP growth in next few years driven by favorable demographic patterns, changing lifestyles, and strong income growth. This organized retail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores. For example, Spencer network has 69 stores, which includes seven Spencer hypermarkets, three Spencer super markets and 49 Spencer Dailys. Now the company is planning to open 20 stores in 10 cities in six months. The top 10 retailers account only for 2% of total market, today modern retailing is expected to enter a boom phase, which has major players and these players might capture 10% of total market, within next five years. The retail sales in India for future are shown below (data from 2005-2008 is based on estimates) The trend in the Industry 1. Low share of organized retailing 2. Falling real estate prices 3. Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)
Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with
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increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.
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CHAPTER-4
DATA ANALYSIS & INTERPRETATION
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GENDER
GENDER No. of respondent Male 81 Female 119 TABLE: 1 TABLE SHOWING THE GENDER OF RESPONDENTS CHART: 1. CHART SHOWING THE GENDER OF RESPONDENTS
Inference: From the above table it is clear that 40.5% of respondent were male and 59.5% of female respondent were
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AGE
TABLE: 2. TABLE SHOWING AGE OF RESPONDENTS Age group 18-20 21-30 31-50 Above 50 No. of respondent 37 82 68 13 Percent 18.5 41 34 6.5
INFERENCE:
From the above table it is clear that 18.5% of respondent belongs to the age group of 18-20, 41% of respondent belongs to the age 21-30, 34% of respondent belongs to the age 31-50 and 6.5% of respondent belongs to the age 50 above.
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Inference: From the above table it is clear that the highest no. of family size is about 46.5%, next come the family size is 26.5%, than 20% family size of respondent and the minimum family size of respondent is 7%.
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Inference: From the above table it is clear that the highest no. of respondent buy product by family is about 61%, the next is to whom the respondent buy the product is myself is about 35.5%, and the minimum to whom the respondent buy the product is office about 3.5%
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TABLE: 5. TABLE SHOWING FREQUENCY OF VISIT IN BIG BAZZAR Period Once in a week Once in a month Once in two month Rare No. of respondent 42 87 53 18 Percent 21 43.5 26.5 9
Inference: From the above table it is clear that around 43.5% respondent visit big bazaar once in a month, 26.5% of them visit once in two month, 21% visit once in a week and remaining 9% visit rarely in big bazaar
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Inference: From the above table it is clear that the 35% of respondent prefer big bazaar for the price of the product, 23.5% prefer big bazaar for the availability of all product under one roof, 16.5% prefer for the convenient shopping , 13.5% prefer for the customer service of big bazaar and remaining 11.5 prefer product for their quality.
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TABLE: 7. TABLE SHOWING SECTION LIKE MOST. Section Home and kitchen items Bags & luggage Mobiles & camera Electronic goods Garments No. of respondent 14 15 7 54 41 Percent 34.5 7.5 3.5 27 20.5
Inference: From the above table it is clear that the 34.5% of respondent would like to purchase home and kitchen appliances more, 27% prefer to purchase electronic goods from big bazaar, 20.5% prefer to purchase garments, 7.5% prefer to purchase bags and luggages, and remaining 3.5% prefer mobiles and camera.
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& 15
25
51
57
37
30
Inference: From the above table it is clear that the most of the respondent are satisfied to home and kitchen items .
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TABLE: 9.TABLE SHOWING SHOP APART BIG BAZAAR Views Yes No No. of respondent 166 34 Percent 83 17
Inference: From the above table it is clear that 83% of respondent were prefer other shop apart big bazaar and 17% not prefer any other shop apart big bazaar.
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TABLE: 10. TABLE SHOWING PREFER OTHER THAN BIG BAZAAR. Shop name Reliance fresh Vishal mega mart More Shoppers stop Others No. of respondent 68 40 21 16 55 Percent 34 20 10.5 8 27.5
Inference: From the above table it is clear that the 34% of the respondent prefer to purchase product from the reliance fresh , 27% from other shop, 20% from vishal mega mart, 10.5% prefer more, and remaining 8% from the shoppers stop.
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TABLE: 11. TABLE SHOWING COME TO KNOW ABOUT BIG BAZAAR. Sources Advertisement Friends Internet Others No. of respondent 157 33 45 13 Percent 78.5 16.5 22.5 6.5
Inference: From the above table it is clear that a majority of respondent are aware about big bazaar through the various newspaper, t.v. advertisement about 78.5%, 22.5% through the internet, 16.5% through their friends and remaining 6.5% come to know through others.
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TABLE: 12. TABLE SHOWING KNOLEDGE ABOUT BIG BAZAAR. Sources Leaflets Newspaper Banner Auto announcement Others No. of respondent 27 111 26 26 10 Percent 13.5 55.5 13 13 5
Inference: From the above table it is clear that the highest no. of respondent get knowledge about big bazaar through newspaper about 55.5%, 13.5% through leaflets, 13% through banner and auto announcement, remaining 5% through others.
TABLE: 13.TABLE SHOWING AGREE WITH PUNCH LINE. Agree Yes No No. of respondent 113 87 Percent 56.5 43.5
Inference: From the above table it is clear that the 56.5% majority of respondent agree with the punch line and 43.5% not agree with big bazaar punch line.
RATE OF ACTIVITIES
TABLE: 14. TABLE SHOWING RATE OF ACTIVITIES. 55 | P a g e
Highly satisfied 44 86 56 88 96
satisfied 39 53 62 67 34
Highly dissatisfied 16 5 1 0 0
Arrangement of product
33
51
96
20
Inference: From the above table it is clear that most of the people are highly satisfied to discount, offers and advertisement of the big bazaar
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TABLE: 15.TABLE SHOWING SERVICE OFFERED BY BIG BAZAAR. Section Service Quality Price Highly satisfied 12 22 89 satisfied 37 29 63 53 30 51 45 WEIGHT 5 4 3 2 1 Neither Dissatisfied satisfied nor dissatisfied 73 46 39 34 32 61 96 116 FREQUENCY 88 61 22 21 8 200 68 11 3 40 20 10 Highly dissatisfied 32 42 3 0 57 0 3 SAMPLE WEIGHT 440 244 66 42 8 800
Availability of 112 product Billings rules 12 Display product Customer service RANK 1 2 3 4 5 of 33 26
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Inference: From the above table it is clear that the most of the people highly satisfied with the availability of product and price in big bazaar
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CHAPTER-5
FINDINGS, SUGGESTIONS &CONCLUSIONS
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FINDING:
In the project customer survey report represents big bazaar is number one retail show room in retail industry. 59.5% were are female respondent
big bazaar product bought by the family member more than the myself and office
Maximum no. of people like electronics goods section and than garments section.
People highly satisfied to bags and luggages and highly dissatisfied to toys and games.
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SUGGESTIONS
Customer service should be improved in my field survey.
Proper training should be given to employees as to how to attract more customers and how to retain them. Seating facilities could be provided since there are aged people visiting the store. Price of products could be reduced in order to attract more valuable customers. More branded products could be introduced. All the billing counters should be kept opened even during the week days. Variety of products with good quality should be brought in.
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CONCLUSION
In the project customer survey done with a very definite proposition of finding the customer satisfaction and expectation in big bazaar, Hyderabad. People prefer more branded and variety of products with good quality. Customers also feel that there should be proper customer service. As customer satisfaction plays a vital role, it has to be concentrated on seriously. In conclusion, matching customer expectation and satisfaction through proper service of marketing activities will improve company reputation and create loyal customers.
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a) Myself
b) Family
c) Office
a) Once in a Week
b) Once in a Month
d) Rare
b) Price
a) Home and Kitchen items b) Bags and Luggage c) Toys and Games Cameras e) Electronic Goods 6. Rank the various sections of Big Bazaar
d)
Mobiles
and
Sections 1 Home and Kitchen items Bags and Luggage Toys and Games Mobiles and Cameras Electronic Goods
7. Rate your satisfaction level for the services offered by Big Bazaar
Services Quality Price Availability of products Billing facilities Display of products Customer Service
3 Neither satisfied nor dissatisfied 4 Dissatisfied 5 Highly dissatisfied 8. Do you prefer any other shop apart from big bazaar? a) Yes b) No
9. If yes, specify the reason____________________ 10. Which of the following you prefer other than Big Bazaar? Reliance Fresh Subhiksha Others: - ___________________________ 11. How did you come to know about Big Bazaar? a) Advertisements b) Friends c) Internet d) Others, Specify _______________ Vishal Mega Mart Shoppers Stop
a) Yes
b) No
13. Which of the following means was most helpful in increasing your knowledge about big bazaar and its product?
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14. Big bazaar punch line is isse acha aur sasta kahin nahin do you agree with this? a) Yes b)No
Activity 1 Advertisements Punch Line Offers Discounts Arrangement of products 1 Highly satisfied 2- Satisfied
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MAGAZINES :
BUSINESS WORLD BUSINESS TODAY INDIA TODAY
www.google.com
K.Aswahthappa (2001),Human Resource and Personnel Management Human Resource Management, (2005), Dr.P.C. Pardeshi C.B Gupta (2005) www.inglife.co.in
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