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SUMMER TRAINING REPORTON WELSPUN RETAIL LTD.OBSERVING AND ANALYSING THE CONSUMER BUYING DECISIONS AND THE BUYING CENTRES INVOLVED WITH THE HOTELS & CORPORATE OFFICES CLIENTS OF WELSPUN RETAIL LTD. IN MUMBAISubmitted in partial fulfilment of the requirements ofMaster of Management Studies (MMS)by HUSSAIN SAYLAWALAMMS (2009-11)ROLL NO: 91482315210224790 Under the guidance ofProject Guide Mr. Narayan Chokhani Head-Institution, Hotels and CSD Sales ORIENTAL INSTITUTE OF MANAGEMENT STUDIESPlot No. 149, Sec. 12 VASHI,Navi Mumbai- 400703DECLARATIONI Hussain Saylawala pursuing MMS from Oriental Institute Of Management Studies, Vashi- (Navi Mumbai) hereby declare that this project work entitled “Observing and analysing the consumer buying decisions and the buying centres involved with the Hotels and Corporate offices clients of WELSPUN RETAIL LTD. in Mumbai.” is carried out for 42 days.To the best of my knowledge & belief, it is an original piece of work and is the sheer outcome of my own efforts under the vigilant guidance of my guides and has not either in full or in part been submitted to any other institution for the award of any other course. HUSSAIN SAYLAWALA MMS(09-11) O.I.M VASHI (NAVI Mumbai)Date- 25 June’2010ACKNOWLEDGEMENTAn exchange of ideas generates a new object to work in a better way. Apart from the ability, labour and time devotion; guidance and co-operation are two pillars for the success of a project. Whenever a person is helped or co-operated by others, his heart is bound to pay gratitude to them.A satiation and pleasure that accompany the successful completion of task would be incomplete without the mention of the people who have made it possible and whose consent guidance and encouragement served as a guiding light for the completion of the study.I would like to express my gratitude to my project guide Mr. Narayan Chokhani (Head- Institution, Hotels and CSD sales) and his entire team for their constant encouragement and guidance without the task would not have been completed.TABLE OF CONTENTSExecutive SummaryIndustry studyCompany HistoryChannels of CompanyClients of CompanyProductsCompetitorsSwot AnalysisIntroduction of ProjectStatement of problemObjectivesLimitationsFindings and recommendations for Welhome storeOverview of Hotels and InstitutionsFindings and recommendations for Institution and Hotel sales.ConclusionEXECUTIVE SUMMARYAs a part of my MMS program, I am doing my internship training at WELSPUN RETAIL LTD., MUMBAI.The study is about selling to institutions and hotels. Project mainly deals with various strategies employed by Welspun Retail Ltd. in Institution and hotel sales. It explains the various buying centers and buying decisions involved in corporate and hotel sales. It is not only the theory, which will help in the corporate world, but also how things happen practically. Here there is an opportunity to learn how the things happen practically. Every day the various activities happening in the department are observed and understood carefully.My work in that organization mainly consists of mapping the market for institution and hotel sales. It also included visiting various clients. This project also includes research done for repositioning of Welhome. Survey was done from customers to know about their views on PANY STUDYRETAIL INDUSTRY Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well.RETAILING FORMATS IN INDIAMalls- The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon.Department Stores- Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called StopSpeciality Stores- Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.Hypermarkets/Supermarkets- Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.Discount Stores- As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods.Convenience Stores- These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.Department Stores- Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc.MBO’S- Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.RECENT TRENDSRetailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billionAs per a report by KPMG the annual growth of department stores is estimated at 24%Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. WELSPUN RETAIL LTD.Welspun Retail Limited is India’s largest specialty retailer in the Home furnishing segment. It is an integral part of the US $2000 million Welspun Group. Customer convenience and satisfaction is the driving force behind all their endeavours. Hence, they have modeled themselves as a one-stop solution offering a wide range of world-class products in Bed, Bath, Kitchen, Dining and Living furnishing segments, at extremely affordable prices. They have an internationally-acclaimed team of designers who ideate, innovate and create trendsetting superior quality furnishing solutions that lend each Home a designer look.Welspun flagship brands are:Spaces - Home & Beyond – A Lifestyle brand that caters to the demands of their high-end customers.Welhome – A brand that provides value-products to meet the ever-evolving needs of our customers at large.They aspire to be a Global player of repute by delighting their customers in India and across the world with premium home furnishing solutions at competitive prices.The multi- disciplinary design studio; namely CAD designers, stylists, and graphic designers at Welspun specialize in original design and styling ranging from the contemporary to traditional ideas for bed, bath kitchen, living, dining and accessories. The young team hail from the country's leading art and design institutions, rich in experience as they work closely with the International offices in the U.S.A and U.K. The unique and customer- centric developments encompass cutting- edge prints, wovens and embellishments coupled with fine styling to hone every idea for the Spaces Home and Beyond and WELHOME Brand.?The studio offer turn key solutions from trend ideation, concept generation, product development, styling, communication and presentation.?The spirit and fervour coupled with a constant endeavor to maintain high design standards and professional ethics makes us the country's leading design studio; with aspirations to make a mark on the globe.Global player with presence in 32 Countries in Textile & 50 countries including SteelAmong the Top 3 home textile companies in the world & Largest in AsiaAward winning product innovationIn-depth knowledge of consumer behaviors and preferencesIndustry leader in product quality and customer service Presence in all major Retail Giants eg. Bloomingdale’s, Macy’s, Bed Bath & Beyond, Kohl’s, JC Penney, Target, Sears, Kmart, Wal-Mart, Costco, Sam’s, Home Outfitters, The Bay and LiverpoolLicensed brands include Nautica, Waverly, Amy Butler154 Company Stores in 90 Indian Cities18,500+ skilled global workforceOther divisions include steel pipe, real estate, polyester, and organic farmingVISION OF THE COMPANYWe aim to emerge as a global leader preferred by every home serve…with passion grow…@speed innovate…with quality excel…with ethics delighting all stakeholders... We are…WELSPUNMISSIONWe endeavor to reach the leadership position in each Segment / Sector of our Product / Service.We are committed to satisfy our customers by providing such Quality Product / Service, which gives highest value for money.We believe that employees are our most important asset through which we can reach the top in each category of our Product / Service. Therefore, we will emphasize on their continuous improvement through upgradation of relevant knowledge and training.We commit ourselves to continuous growth, so as to fulfill the aspirations of our Customers, Employees and Shareholders.CSR POLICYWelspun is committed to conduct business in a socially responsible and ethical manner. Sustaining mutually accountable and responsible synergies, we serve with passion to our Customers, Shareholders, Employees & Society at large. To meet our commitment we seek to respect the rule of law, adopt appropriate international standards and strictly follow our 6 Guiding Principles (The 6 ‘E’s):ENRICHMENT OF MINDENRICHMENT OF BODYEDUCATIONEMPATHYEMPOWERMENT OF WOMENENVIRONMENTIn addition to our guiding principles, at Welspun, Ethical Business Conduct is strictly followed and we practice the principles of accountability, honesty and integrity in all aspects of our business. Besides this, we strictly comply with all the laws that regulate and apply to the company, its systems and the conduct of its business. ? At Welspun we work with governments and agencies (including the Universal Declaration of Human Rights by the UN) to support and respect Human Rights within our sphere of influence. We promote universal respect for observance of human rights and fundamental freedom - particularly those of our employees, the communities within which we operate and parties with whom we do business, without distinction as to ethnicity, origin, religion, gender, language or disability. ? At Welspun we believe that Local Stakeholder Engagement is extremely important and we adhere to a collaborative, consultative approach in our communities by supporting innovative programs in health, education, environment, as well as cultural and civic projects. We take utmost care to integrate community investment considerations into decision-making and business practices and assist in local capacity building to develop mutually beneficial relationships with communities. ? Last, but in no way the least, Employee Relations takes prime position at Welspun. We ensure to provide maximum employment and economic opportunities in the communities where we operate and we make sure that employees are treated fairly and with dignity and consideration for their goals and aspirations and that diversity in the workplace is embraced. Fair labour policies, while respecting the national and local laws of the countries and communities where we operate are practiced. We are additionally committed to provide equal opportunity in all aspects of employment and will not engage in or tolerate unlawful workplace conduct, including discrimination, intimidation, or harassment.CHANNELS OF WELSPUN RETAIL LTD.HotelsInstitutionsCSDKey Accounts(Shoppers stop, Lifestyle, @home, Landmark)Stores- Welhome and SpacesDistributorsB2BNo. of employees- 5000 employees WHAT MAKES WELSPUN DIFFERENT FROM OTHERSPRODUCT INNOVATION: Patents and ProcessesHygro Cotton? hollow core yarn that dries better and launders betterFlexi-Fit? fitted sheets that fit mattresses from 10-20 InchesMXL ? Wrinkle Free Finish That stays for the life of the sheetPerma White? Finish that ensures towels stay white after repeated launderingsDrylon? micro fiber that resists bleach, benzyl peroxide, iodine, hair dye and numerous household stains Combed & 2 Ply Yarn: for Hospitality Industry for Heavy Laundry Wash. HOTEL CLIENTSOur ClientelePRODUCTSPRODUCT LIST FOR HOTELSItemSize ( cm)Fabric QualityGSMColourTowels- 550 /630 GSM76 x 1522 Ply Pile550WhiteBath Towels91 x 1832 Ply Pile550WhiteBath Sheet91 x 1832 Ply Pile630WhiteHand Towels 41 x 762 Ply Pile550WhiteHand Towels 41 x 642 Ply Pile573WhiteFace Towels30 x 302 Ply Pile550WhiteFace Towels30 x 302 Ply Pile630WhiteBath Mats51 x 762 Ply Pile900WhiteBath Mats 53 x 912 Ply Pile860WhitePool Towels- Blue & White Stripe-91 x 1832 Ply Pile450Blue/WhitePool Towels- Blue & White Stripe91 x 1832 Ply Pile550Blue/WhitePool Towels91 x 1832 Ply Pile450Yellow /WhitePool Towels- Blue & White Stripe91 x 1832 Ply Pile550Yellow /WhiteBath Robes- Non ShearedL/M/XL2 Ply Pile380WhiteBath Robes- Non ShearedL/M/XL2 Ply Pile420WhiteBath Robes- Sheared L/M/XL2 Ply Pile500WhiteBath Robes- WaffleL/M/XL2 Ply Pile250WhiteBath Rugs50 x 80Tufted1900White200 TC percale- Bed Linen28540s combed200 TCWhite300 TC percale/satin - Bed Linen28560s combed300 TCWhite350TC Satin Stripe- 1 cm- Bed Linen28560s combed300 TCWhitePoly Fibre Filled Pillows50 x 76Poly fill 200 TCWhiteDuvet ( quilts)- Queen229 x 274Poly fill 200/250 GSMWhiteDuvet ( quilts)- King269 x 274Poly fill 200/250 GSMWhiteCOMPETITORSKey players in the Indian industry are:Bombay DyeingPorticoRosebysMarcTridentApart from these, competition also comes from many unorganised suppliers. Many alternatives in terms of substitutes are also present in case of institutions, as they can buy anything. Institutions do bulk buying for gifting and promotions. So, they have many substitutes available with them.SWOT ANALYSISSTRENGTHSOwn manufacturing capabilities.Strong reputationStrong brand nameGood QualityGood practices(Visits of clients done by head of the hotel and Institutions with sales persons.WEAKNESSDelivery IssuesHigh lead timeLess sales forceWrong impression on clients due to high discounts available at retail outlet of the companyPriced higher as compared to other competitorsOPPORTUNITIESNew business of same client in different cities of the India can be tappedNew business (like any section/part customization of the hotel using BESPOKE service) can be explored with the goodwill earned & relations developed with clientTHREATSLoss of clients due to delivery, pricing, discounting issuesDecrease in sales and thus profit earned by the companyPROJECT REPORTINTRODUCTIONThis Project report includes overview of Corporate Selling.Research for repositioning of WelhomeAchievements of WELSPUN RETAIL LTD. in a short span of period.Current strategies employed by Welspun Retail Ltd. in Institutions and Hotel sales.RESEARCH AT WELSPUN INCLUDES THE FOLLOWING ACTIVITIES:Interaction with customers at Welhome store.Interaction with clients of Welspun.Consumer preference for Welspun products on the basis of observation.Importance of visual media for Welhome store.STATEMENT OF PROBLEMMapping the market for hotels and institutions. As there are many properties, it is important to keep in contact with the existing properties as well as be updated for upcoming properties.OBJECTIVESTo study the potential market for corporate and hotels.Understanding the current strategies employed by WELSPUN RETAIL LTD. in Institutions and Hotel sales.To study the consumer buying decisions in corporate and hotels.To study the buying centres involved in corporate and hotels.To study the consumer preference for Welhome stores.RESEARCH METHODOLOGYTo achieve the objective of the project there was some information which was to be gathered and accordingly some decision has to be taken. Under this project, I have studied market of MUMBAI.RESEARCH DONE FOR REPOSITIONING OF WELHOMESurvey was done in Welhome store at Hub Mall, Goregaon.Collected opinion of 76 customers about what they think of Welhome.FINDINGS Majority of customers talk about affordability of the product.People want good quality at affordable price.People need more variety in products.Customers are more attracted through discounts.Visual media plays an important role in attracting customers.Many times customers are not aware of the offers.OUTCOME OF RESEARCH39.47% perceive Welhome as a brand providing international quality at affordable price.27.63% perceive it as simple, original, international, yet affordableMore than 50% of customer talks about international quality and affordable price.LIMITATIONSEvery project has some limitations. Even the researcher came across some limitations while working on the project which made the analysis a little inappropriate at times. Some of the basic limitations faced during the research are listed below:Only 76 customers were considered in the study.The research is based in MUMBAI only.At the time of research, few of the customers did not sincerely respond to me.RECOMMENDATIONSCompany should get away from its different discount policy on same product, should decide on a single discount figure.Proper training should be provided to store staff.New designs should be launched frequentlyChange of front visual setting of all shops should be done in 15 or 20 daysProper advertising need to be done to reach customers. T.V and online advertising can be done.HOTELS AND INSTITUTIONSOVERVIEWContributes around 15-20% to the total company earnings. Hotels business caters to all hotels including 5 & 7 star, mostly in metro citiesInstitutional business caters mostly to pharma & non-pharma companies, wherein 70% business comes from pharma companies & 30% from non-pharma companies like fmcg, electronics etcMost of the orders are on contractual basis and bulk buying is done by the clientBUYING CENTRES INVOLVED IN HOTELSFirstly, we contact purchase manager of the hotel.If hotel has any requirement, then we take their specifications of the product.We provide samples of our products to the purchase manager.Then, housekeeping manager go through all of the samples. After going through all samples, he select the product which they need.Then , purchase manager negotiate with the company for price.If price is suitable for him, he gives the purchase order to the company. CHALLENGES FACED IN INSTITUTIONAL SALESCompetition is too high. Competitors can be of any industry.Targeting customers from various sectors like pharma, FMCG, consumer durable etc.Inquires need to be generated from existing as well as new clients.Deliveries should be made in time.FINDINGSDelivery time of our company is more than our competitors. Competitors are providing 25-30 days time to deliver the product whereas we take atleast 45-50 days to deliver.During the survey, I found that many times deliveries are not made in time due to which they can lose faith in us.Pricing of the competitors are much lesser than our pricing due to which we lose big orders.Shortfall of Manpower to cater different sectors as well as the existing sector.At many times, samples are not provided to customers in time.Our product range is less in comparison with competitors.More discount at Welhome store creates confusion in minds of clients.Proper amount of promotion is not done by the company.Personal relation also plays a vital role in corporate selling.RECCOMENDATIONSDelivery time need to be squeezed. We need to decrease our lead petitive rates are required to capture the market.Dedicated sales person required for different sectors. Samples should be provided in time to our customers.We need to increase our product range.Sales force should be given brochures of company and product description.Gifts should be given to clients to improve the relation.Proper amount of promotion should be done by the company.CONCLUSIONMarketing is a very crucial activity in every business organization. Every product produced within an industry has to be marketed otherwise it will remain as unsold stock, which will be of no value. I have realized this fact after completion of my summer training project. Despite of various difficulties and limitations faced during my summer training project on the topic “OBSERVING AND ANALYSING THE CONSUMER BUYING DECISIONS AND THE BUYING CENTRES INVOLVED WITH THE HOTELS & CORPORATE OFFICES CLIENTS OF WELSPUN RETAIL LTD. IN MUMBAI”, I have tried my level best to find out the most relevant information for the organization to complete the assignment that was given to me. After completion of my summer training project I have gained several experiences in the field of sales marketing. I have got the opportunity to meet various people, which fluctuate in different situation and time. This summer training project has given me the opportunity to have first experience in the corporate world.Theoretical knowledge of a person remains dormant until it is used and tested in the practical life. The training has given to me the chance to apply my theoretical knowledge that I have acquired in my classroom to the real business world.. In spite of few limitations and hindrance in the summer training project I found that the work was a challenge and fruitful. It gives enough knowledge about the home textile market and the distribution process undertaken by an organization. This summer training project has enabled my capability in order to manage business effectively and in my career in future. ................
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