Gokhale Education Society’s

B.Y.K College of Commerce

Project Report

On

Business Exposure (Retail Management)

2020-2021

(Mohammad Rahil Parvez Khan)

Class: SYBBA

Guided by
Dr.Sushumna Kane

1
 University Exam Seat No:24591

Gokhale Education Society’s

B.Y.K. College of Commerce

Prin. T. A. Kulkarni Vidyanagar, Nashik-5.
‘NAAC’ Re-accredited with Grade ‘A’
ISO 9001-2015 Certified College

Certificate
This is to certify that Mr. Mohammad Rahil Parvez Khan of SYBBA, Roll No. 81
has undertaken and completed the Industrial Visits as per the rules of Savitribai
Phule Pune University for the year 2020- 2021.

Date:28 /04 /2020 Subject Teacher Principal/Vice Principal

Date:29 /04 /2020 Internal Examiner External Examiner

2
 INDEX

Sr. No. Title of the project Page no.

Project 1 Bajaj 4

Project 2 Decathlon 21

Project 3 Raymond Group 36

Project 4 Croma 47

Project 5 Mc Donald’s 58

3
 Project 1

4
 Project Title :- Bajaj Auto

Introduction

Bajaj Auto Limited is an Indian multinational two-wheeler and three-wheeler

manufacturing company based in Pune, Maharashtra.It
manufactures motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of
the Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the 1940s. The
company has plants in Chakan (Pune), Waluj (near Aurangabad)
and Pantnagar in Uttarakhand.The oldest plant at Akurdi (Pune) houses
the R&D centre 'Ahead'.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and the
second-largest in India. It is the world's largest three-wheeler manufacturer.
In May 2015, its market capitalisation was ₹64,000 crore (US$9.0 billion),
making it India's 23rd largest publicly traded company by market
value. The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416.
In December 2020, Bajaj Auto crossed a market capitalisation of ₹1 lakh crore
(US$ 13.6 billion), making it the world's most valuable two-wheeler company.

5
 Objectives of the project Bajaj Auto

a) To know about the Company Bajaj Auto

b) To study Different Branches of Bajaj Auto

c) To know the Competitors of Bajaj Auto

d) SWOC Analysis of Bajaj Auto

e) To understand Product Display of company Bajaj Auto

f) To study Store Layout of Bajaj auto

6
 Methodology
What is methodology ?

A system of methods used in a particular area of study or activity.

Types of methodology

1. Primary Methodology
2. Secondary Methodology

1. Primary Methodology:- Primary research is defined as a methodology used

by researchers to collect data directly, rather than depending on data collected
from previously done research. Technically, they “own” the
data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.
This project does not have any primary source of data
or methodology.

2. Secondary Methodology:- Secondary research or desk research is a

research method that involves using already existing data. Existing data is
summarized and collated to increase the overall effectiveness of
research. Secondary research includes research material published in research
reports and similar documents.
This project is made by the help of secondary
methodology. To find the required information for the project I have refer to
different websites and catalogues that provide the information about the company
Bajaj Auto.

7
 Theory related to the project Bajaj Auto

1. About the company Bajaj Auto:-

Bajaj Auto was established on 29 November 1945 as M/s Bachraj Trading

Corporation Private Limited. It initially imported and sold two- and three-
wheelers in India. In 1959, it obtained a license from the Government of India to
manufacture two-wheelers and three-wheelers and obtained Licence
from Piaggio to manufacture Vespa Brand Scooters in India.It became a public
limited company in 1960.
With the launch of motorcycles in 1986, the company changed its branding from
a scooter manufacturer to a two-wheeler manufacturer.
In 1984, Bajaj Auto signed a technical assistance agreement with Kawasaki,
cooperating to expand production and sales of motorcycles in the local market.
In the early 2000s, Bajaj Auto bought a controlling stake in the Tempo Firodia
company, renaming it "Bajaj Tempo". Germany's Daimler-Benz owned 16% of
Bajaj Tempo, but Daimler sold their stake back to the Firodia group. It was
agreed that Bajaj Tempo would gradually phase out the use of the "Tempo" brand
name, as it still belonged to Mercedes-Benz. The name of the company was
changed to Force Motors in 2005, dropping "Bajaj" as well as "Tempo", over the
objections of Bajaj Auto with whom the company shares a long history as well as
a compound wall.
In 2007, Bajaj Auto, through its Dutch subsidiary Bajaj Auto International
Holding BV, purchased a 14.5% stake of Austrian rival KTM,gradually
increasing its stake to a 48% non-controlling share by 2020. In December 2020,
Bajaj started discussions on swapping its stake from KTM to KTM's controlling
shareholder Pierer Mobility, a subsidiary of Pierer Industrie.
On 26 May 2008, Bajaj Auto Limited was split off into three corporate entities —
Bajaj Finserv Limited (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and
Investment Ltd (BHIL).

8
 2. Different branches of Bajaj Auto:-

The Bajaj Auto has massive presence in India as well as oversees, manufacturing
two- and three-wheeler units at a number of locations in India. The Uttarakhand
manufacturing facility is solely for manufacturing two-wheelers, while the
Aurangabad plant is used for manufacturing three-wheelers. Two-wheelers are
also manufactured at the Chakan and Akurdi plants.

1.Headquarters and Plant – Akurdi, Pune, Maharashtra

2.Manufacturing Facility –Waluj, Aurangabad, Maharashtra
3.Manufacturing Facility –Chakan, Pune, Maharashtra
4.Manufacturing Plant – Pantnagar, Uttarakhand
5.Corporate Office – Mumbai, Maharashtra

9
3. Competitors of Bajaj Auto:-
Top Competitors of Bajaj Auto
1. TVS Motor Company. 5,966. $2 Billion. …
2. Kymco. 3,000. $109 Million. …
3. Hero MotoCorp. 7,069. $5 Billion.
4. Honda Motorcycle and Scooter I... 2,999. $589 Million.
5. Piaggio & C. SpA. 6,515. $1 Billion.
6. Piaggio. 6,222. $1 Billion.
7. Royal Enfield. 3,148. $1 Billion.
8. Pak Suzuki Motor. 2,151. $47 Million.

10
4. SWOT analysis of Bajaj Auto:-
Strengths in the SWOT analysis of Bajaj Auto

1. Brand positioning: Bajaj Auto, is the world’s fourth largest two and three-
wheeler auto manufacturer in the world. The company manufactures
motorcycles, passenger carriers and goods carriers. The most popular brand
in the two wheeler segment of Bajaj Auto’s portfolio is Bajaj Pulsar. In the
three-wheeler segment, it has a range of 2-stroke and 4-stroke passenger as
well as goods carrier.
2. Sustainable business: The company’s extensive range of products allows
them to cater to a wide range of customers. Also, it helps the company to
deliver sustainable business growth.
3. Alliance with KTM: Bajaj Auto through its subsidiary Bajaj
Auto International Holdings (BAIH) holds a 48% stake in Europe’s second-
largest sports motorcycle manufacturer, KTM of Austria. KTM has a strong
brand equity globally and the alliance with Bajaj Auto help both the
companies to deliver sustainable result focusing on offering cost and quality
benefits. KTM provides Bajaj Auto with a large global reach.
4. Strong Distribution: Bajaj Auto has dealers throughout India and it has
always maintained a smooth supply chain. Bajaj motorcycles and three
wheelers are always in demand and are supplied to various small and large
cities. Hence, there are various Bajaj Auto service centres throughout the
country.
5. Awards and recognition: Bajaj Auto was ranked 96th in Forbes’ most
innovative companies list in 2014. Bajaj Auto was also named Company of
the year in 2011 by Economic Times. Bajaj Pulsar has been received various
awards and recognition.
6. Market share in two wheeler category: As can be seen from the graph
below, Bajaj auto has a 13% of market share in the two wheeler category. It
is 3rd in the two wheeler category.

11
Weaknesses in the SWOT Analysis of Bajaj Auto :

1. Lack of Presence in the scooter market: Bajaj Auto was the leader in the
scooter market till the motorcycle momentum picked up in the 1990s. Bajaj
shut down its scooter business post that, but the scooter business is blooming
and showed a growth of 12% in 2016. Today, Honda Activa and other such
models are the leders in scoothers. The company is losing out on a huge
market by not re-entering the scooter market.
2. Labour issues: Bajaj Auto has been involved in Labor and wage issues in
the recent past. In February 2014, workers in its Chakan plant threatened to
go for hunger strikes. In 2013, Chakan and Pune plant workers went on strike.
This damages Bajaj’s image and it also has an adverse effect on the
production.
3. Not a Global brand: Even after producing in high volume, Bajaj is not
recognised as a global brand. It has not entered other markets or not
expanded internationally as fast as it could. It is predominantly an Indian
market player.

Opportunities in the SWOT Analysis of Bajaj Auto :

1. Growth in motorcycle market: The global motorcycle manufacturing is

expected to grow strongly in the years to come. According to the market line,
the global motorcycle industry generated about $75000 million in 2016. It
showed a growth of about 6.3%. The market is expected to grow at 7%
CAGR for the 2016-19 period to approximately reach $93450 million.
2. Growing India three wheeler Industry: The three wheeler market
registered a growth of 11.51% in FY2016 and is expected to grow at a CAGR
of 4.4% to approximately reach $4.2 billion by 2017.
3. Launch new vehicles: Bajaj Auto should further look to strengthen
its product portfolio like it has done in the past with models of Avenger
Pulsar, Discover etc. By continuously encapsulating new technologies into its
portfolio, Bajaj’s image of being an innovative company will also be
maintained.

Threats in the SWOT Analysis of Bajaj Auto :

1. Intense competition in the 2-wheeler market: The 2-wheeler market in

India is highly competitive with various top brands such as Global and Indian
giants such as Suzuki, Hero Motocorp, TVS etc. fighting to capture market

12
 share. Fuel efficiency and price being crucial for the Indian market, all the
brands are constantly innovating to achieve higher fuel efficiency in low price.
2. High Bank interest rates: In comparison with other countries, India has a
higher lending rate which is growing. The growth in interest rates
affects consumer decision on spending on vehicles etc. bought on interests.
3. Environmental Regulations: Auto companies are subjected to strict
environmental regulations in India. The BS regulations are constantly updated
in India and hence the companies have to constantly modify their products in
order to fall in line with the regulations and hence, this may adversely affect
company’s financial condition.

13
5) Product Display of Bajaj Auto

Motorcycles

 Avenger 220 Cruise Desert Gold Edition

 Avenger 220 Cruise
 Avenger 220 street
 CT100
 CT100B
 Dominar 400
 Dominar 250
 Discover 1
 Pulsar 150
 Pulsar 180 and 180f
 Pulsar 220F
 Pulsar NS200
 Pulsar RS200
 V15
 V12
Three Wheelers

 RE Compact
 RE Compact 4S
 RE Compact+
 RE Maxima
 RE Maxima Z
 RE Maxima C
Four Wheelers

 Qute
Scooters

 Bajaj Chetak Electric Scooter

Discontinued
Scooters

 Bajaj 150
 Bajaj Bravo
 Bajaj Chetak

14
 Bajaj Chetak 99
 Bajaj Chetak 4s
 Bajaj Cub
 Bajaj Classic
 Bajaj Kristal
 Bajaj Legend
 Bajaj M50
 Bajaj M80
 Bajaj Priya
 Bajaj Rave
 Bajaj Sunny
 Bajaj Stride
 Bajaj Saffire
 Bajaj Spirit
 Bajaj Super
 Bajaj Super Excel
 Bajaj Super 99
 Bajaj Wave
 Bajaj Viking
Motorcycles

 Bajaj Kawasaki 4S Champaion 100

 Bajaj Kawasaki Aspire 110
 Bajaj Kawasaki Boxer 100
 Bajaj Kawasaki Boxer AT 100
 Bajaj Kawasaki Boxer AR 100
 Bajaj Kawasaki Boxer CT 100
 Bajaj kawasaki Caliber 110
 Bajaj Kawasaki Caliber 115
 Bajaj Kawasaki Caliber Croma 110
 Bajaj kawasaki Eliminator 175
 Bajaj Kawasaki KB100
 Bajaj Kawasaki KB125
 Bajaj Kawasaki Wind 125
 Bajaj Avenger 180
 Bajaj Avenger 200
 Bajaj Byk 100
 Bajaj Boxer BM150

15
 Bajaj Discover 100
 Bajaj Discover 110
 Bajaj Discover 135
 Bajaj Discover 150
 Bajaj Discover 100M
 Bajaj Discover 100T
 Bajaj Discover 125M
 Bajaj Discover 125T
 Bajaj Discover 125ST
 Bajaj Discover 150S
 Bajaj Discover 150F
 Bajaj Platina 100
 Bajaj Platina 125
 Bajaj Pulsar 200
 Bajaj Pulsar 220
 Bajaj Pulsar 220S
 Bajaj Prowler RR125
 Bajaj SX Enduro 100
 Bajaj XCD 125
 Bajaj XCD 135

16
6) Store Layout of Bajaj Auto:-

Sr.No. Facility Area/Quantity

Showroom and back office (Frontage-40 Display Area- min. 1200

feet) sq.ft, Back office- min.
300 Sq., Finance area-
min. 200 Sq.ft, Dealer
Cabin- min. 100 sq.ft,
1.
Vehicle selection
areamin. 400 sq.ft,
Utility area- min.100
sq.ft, Total Area –
Min. 2400 Sq.ft.
2. Workshop Area Service reception-120
sq.ft, Customer
Lounge200 sq.ft, Spare
counter-300 sq.ft, WM-
Cabin75 sq.ft, 6 Bays-
125 sq.ft, Engine room-
75 sq.ft, Equipment’s-
75 sq.ft, Major Job
area- 75 sq.ft, Washing-
150 sq.ft, Parking- 500
sq.ft. Change room- 75
sq.ft, Ready for
delivery-350 sq.ft,
Vehicle movement area-
350 sq.ft. Total area –
Min. 2500 sq.ft.
3. Storage/Stockyard Area Min. 2000 sq. ft.

4. Recommended site area for an 5000 to 6000 sq. ft.

integrated 3S

5. Workshop Interior & Tools & Equipment 15 Lakhs

(Rs.)

17
6. Working Capital for vehicle inventory Equivalent to 30-35 days
(Approx.) of retail sales.

7. Working Capital for spare parts (Rs.) 60 days inventory

8. Other Investment: Computers / Showroom 15 Lakhs

Corporate Identity/ Software/Support
vehicles (Rs.)
9. Manpower

10. Sales Vol<200-15, 200-300-

18, >300-21

11. Service <1000-21, 1000-1500-

25, >1500-29

18
 7. Logistics of bajaj auto:-

. INBOUND LOGISTICS • The raw materials and required components and

spares are sourced from selected suppliers/vendors. The inbound logistics
are managed by third party logistic (3PL) operators as suppliers of Bajaj
Auto spread across different states. • Bajaj Auto maintains seven days (7)
inventories; this sourced raw material will be stored in raw material ware
houses in concerned plant. • In manufacturing process, the final assembly
unit will get all the assembled components from different assembly lines
and assembles these components to body chassis of the the motor cycle. •
The assembled motor cycle has to pass through two levels of quality
inspection to maintain Zero Defects in final product. • After inspection
process these motor cycles will sent to Factory warehouse for distribution.

. OUTBOUND LOGISTICS • The outbound logistic operations depend

upon Bajaj Auto market segments. Bajaj Auto market is segmented by
geographical wise. The geographical segmentation of Bajaj can be divided
into two broad categories. 1. National Level Markets 2. Global Level
Markets • The national and Global level segments are further divided into
sub-segments for smooth logistic and physical distribution operations.

19
 Conclusion

Through this project we learned about the sucessful multi national company of
India, Bajaj Auto. During collectting information about the project I came to learn
several things about the company Bajaj Auto. Firstly I discovered how old is the
company Bajaj Auto and how the company is dominating the tow and three
wheeler market segment.

Then I learned that how vast the bajaj auto company is in the Indian market. Its
branches is all over the country. Vast market with great domination in the market
comes with a huge number of competitors, at that moment I learned that bajaj has
a lot of competition in the market.

During choosing a two wheeler in the Indian market the most famous bike
companies are bajaj, ktm, Husqvarna. These companies have a huge sucess in the
indian market. I was wondering that why companies like ktm and husqvarna
which are foreign companies sells bike at very low costs, after researching I came
to know that companies like ktm and husqvarna are partially owned by Bajaj
company and the production of the bikes are held in India.

20
 Project 2

21
 Project title :- Decathlon

Introduction

Decathlon S.A. is a French sporting goods retailer. With over 1647 stores in
nearly 1000 cities in 57 countries and regions (Jan 2020), It is the largest sporting
goods retailer in the world.
The company manages the research, design, production, logistics and distribution
of its products in house; partners with global suppliers; and markets their own
brands directly to consumers in Decathlon-branded big-box stores.
Decathlon Sports was founded in 1976 in France. We aim to make the pleasure
and benefit of sports accessible to everyone across the globe and we do that by
providing world-class products both for enthusiastic beginners as well as
passionate professionals at extremely affordable prices. In India, it is our aim to
do our best to help Indians play more by paying less for their sports equipment. It
is our commitment to attract and nurture talent to create growth opportunities in-
sync with our progress in India. Decathlon Sports has been present in India for
more than 10 years and our first cash and carry flagship store was set up in May
2009 at Sarjapur in Bangalore. As of September 26th 2018, we are at 65 stores
spread across India with further expansion plans.

22
 Objectives of the project Decathlon

a) To know about the Company Decathlon

b) To study Different Branches of Decathlon

c) To know the Competitors of Decathlon

d) SWOC Analysis of Decathlon

e) To understand Product Display of company Decathlon

f) To study Store Layout of Decathlon

23
 Methodology

What is methodology ?

A system of methods used in a particular area of study or activity.

Types of methodology

3. Primary Methodology
4. Secondary Methodology

3. Primary Methodology:- Primary research is defined as a methodology used

by researchers to collect data directly, rather than depending on data collected
from previously done research. Technically, they “own” the
data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.
This project does not have any primary source of data
or methodology.

4. Secondary Methodology:- Secondary research or desk research is a

research method that involves using already existing data. Existing data is
summarized and collated to increase the overall effectiveness of
research. Secondary research includes research material published in research
reports and similar documents.
This project is made by the help of secondary
methodology. To find the required information for the project I have refered to
different websites and catalogues that provide the information about the company
Decathlon.

24
 Theory related to project Decathlon

1. About the company Decathlon :-

Founded by Michel Leclercq in 1976, Decathlon started with a store in Lille,

France.Its holding company was formerly known as Oxylane.
The company expanded abroad a decade later: to Germany in 1986, Spain in
1992, Italy in 1993,Belgium in 1997, Portugal, the United Kingdom in
1999, Brazil in 2001, China in 2003, India in 2009, Taiwan in 2012, Hong
Kong in 2013, Malaysia and Singapore in 2016, South
Africa, Philippines and Indonesia in 2017 and South Korea, Australia in 2018.The
company employs more than 87,000 staff from 80 different nationalities.
The retailer stocks a wide range of sporting goods, from tennis rackets to
advanced scuba diving equipment, usually in large, big-box superstores averaging
4,000m2 in size. Decathlon Group markets its products under more than 20
brands.Its research and development facilities are located across France, where
the company develops its product designs, registering up to 40 patents per year.

2. Different branches of Decathlon:-

As of January 2020, Decathlon operated 1,647 Decathlon stores worldwide in

nearly 1,000 cities and 57 countries.
Online delivery has been introduced in Australia, Bangladesh, Belgium, Brazil,
Bulgaria, Czech Republic, France, Germany, Hong Kong SAR, Hungary, India,
Ireland, Israel, Italy, Japan, Mainland China, Mexico, Netherlands, Poland,
Portugal, Romania, Singapore, Spain, Taiwan, Turkey, United Kingdom, and
recently, Egypt, Malaysia, Thailand, Vietnam, and parts of Canada (Ontario &
Quebec).
In India, Decathlon products may be purchased directly through their stores,
subsequent to change in India's FDI policy and approval for Decathlon in
February 2013.In addition to this, Decathlon products are also available online
through their online resellers.
In late 2016, an online only delivery service was introduced in Tunisia in
preparation of the opening in Tunis of its first store. The first store opened in
November 2017 in Tunis City commercial center in Tunis.A second location
opened in April 2018 in the country situated in La Marsa.

25
In February 2017, they opened the first store in Bogota, Colombia in the mall
Parque La Colina.
In July 2017, Decathlon entered the Philippine market with a location at Festival
Mall in Filinvest Corporate City, Alabang, Muntinlupa, and in Tiendesitas,
Pasig.In August 2017, the company announced it would open its first Canadian
store in Brossard, Quebec during the spring of 2018.
In November 2017, Decathlon entered the Indonesia market.
Their first Australian store opened in Tempe, Sydney, NSW, in December
2017. After two years in the Australian market, the viability of the Australian
business is under question after posting a trading loss of $19,563,819 (Australian
dollars) in just 2 years of trading.
In April 2018, the company announced it would open its first store
in Kyiv, Ukraine in the first months of 2019.
In 2019, the company opened stores in Ireland;Vietnam;Bangladesh; Malta;
and Serbia. The company also opened stores in the United States (California),—
having acquired the 18 locations of MVP Sports Stores in 1999, rebranded them
under the Decathlon brand and subsequently closed the stores by 2006.
In November 2020, the first Decathlon store opened in Riga, Latvia.
In April 2021, Decathlon was supposed to open in Mauritius but due to the
lockdown, the date of the grand opening is unknown.

26
3. Competitors of Decathlon:-

In 2009, Decathlon's sector rivals, Go Sport [fr] and Sport 2000 [fr], joined forces
to set up a common purchasing centre in Switzerland, intended to "pressurize
most of the major international suppliers", according to François Neukirsh,
Managing Director of Go Sport, in the newspaper Les Échos. Otherwise, the
company does not have significant competition due to their specific target
audience in mass-market retail. Intersport is also a major competitor mainly in
European market.

4. SWOT analysis of Decathlon:-

Strengths in the SWOT Analysis of Decathlon

1) Private Labels
Decathlon has 20 brands and each brand is dedicated to creating and
innovating products for specific sports. Currently, Decathlon has offered over 70
different sports products. Their passion for sports grows every day and so does

27
their ambitions. The company plans to sell only private labels exclusively in
the market. The brand has informed major brands to reduce or stop orders by
2020. The chain’s own-brand share is around 70-80%.

2) Brand Retention
Decathlon majorly focuses on customer loyalty which proves to be a winning
formula. The brand believes in investing time on the customer rather than money.
The company has agents that keep track of the pending items and customer
follows ups as quick as possible. They have integrated chat features that help
them to respond to customer queries and follow it up that has increased
the customer satisfaction rate and improve team performance as well.

3) Technology integration
The new store of Decathlon in Eva Mall, Bengaluru is equipped with tech-
enabled innovations. It has a VR system that allows the customers to experience
the different types of camping tents and have a look at the products and has
improved the customer experience at the stores.

The Decathlon app allows customers to locate the exact position of the products
in the store so that they can navigate easily in the large stores. The customers can
also scan the RFID tags of the products via the app and obtain more details about
the products and look at the verified customers’ review as well. The payment can
also be done online so that the customers don’t have to stand in the queue for
checkouts, they just have to scan the QR code to confirm the purchase.

Weaknesses in the SWOT Analysis of Decathlon

1) Overdependence on French Market

In France, the market has become saturated with over 300 stores. The market is
now close to saturation and focusing on this market will not be able to help
achieve its goal to double its size in the next 5 years. The strategy is to become
an international leader in the sporting goods market. Opening more stores in
France is not going to help the brand.

2) Mature market
The brand is successful in most part of Europe and in the BRIC countries but they
have failed in other parts of the globe. The US could never accept the brand. The

28
North America market is saturated by American brands like Under
Armor, Reebok, and Nike.

Decathlon does not use any famous sportsman to endorse its brand and the
chances to do well in the USA was tough as Decathlon has had the hard time to
find its position in the “mature market” in the developed countries as their
products were priced comparatively lower and it did not seem good enough for
the brand. In the UK, the brand has to change their strategy and make a deal with
a supermarket retailer called ASDA to better sell their products.

3) Competition
Decathlon does not pay big stars to endorse or to advertise about the brand. This
strategy aims to save money and use that money to provide better facilities to the
existing customers. Nike’s annual budget for communication is equal to the
annual turnover of Decathlon. JD sports fashion has been doing really well in the
market, they have significantly expanded internationally, and have been covering
the European market well with 56 out of 65 international new stores were opened
in Europe. The other competitors are Kit Bag and Early Winters.

Opportunities in the SWOT Analysis of Decathlon

1) Newer brand creation

The multinational company like Decathlon should refine their service and product
offerings to appeal to the local tastes and also to be affordable for the customers.
Emerging markets like India, Turkey, and Malaysia etc.
offer opportunities for innovation of newer products and services. Decathlon
is planning to split the brand and creating one brand for each of the sports it caters
to. Decathlon should consider changing its headquarters of certain brands from

29
France to different countries, for example, badminton is quite popular in China,
and so headquarter of badminton brand could be China.

2) Expansion
The annual consumption of the emerging market will reach $30 Trillion by 2025,
there is going to be the overwhelming number of increment in customers from the
emerging market. In France, Decathlon has a business model to open stores
outside the cities but open it larger in size. Decathlon should consider rethinking
this model because the trend now is that more and more people are living in the
bigger cities, so while doing international expansion Decathlon should look in
this changing culture of people. The “mall culture” is very much present in Brazil
and China. The emerging markets offer huge potential to Decathlon for growth in
coming years

Threats in the SWOT Analysis of Decathlon

1) Counterfeit products
The internet provides a huge playground for counterfeiters so a brand like
Decathlon needs to be vigilant in protecting its brand image and also its
customers. The most common counterfeited products are sports equipment, shirts,
balls etc. Decathlon which is expanding in China in faster rate needs to be careful
because the Chinese Market has the most sophisticated counterfeiters in the world.
The international brands in many countries do not get enough rights thus
Decathlon needs to take clever decisions to prevent such issues.

2) Increasing Rental costs in China

China is the home to most of the Decathlon stores outside of France. It has 214
stores in China, it is more than any country except France. The rents in China has
increased by 30% in 2018 especially in the Southern towns. This could increase
the fixed cost of operation and hit the margins of Decathlon

5. Product Display of Decathlon:-

Decathlon is vertically integrated, designing and developing its own products and
marketing under its more than 20 brands, with each sport—and often sub-sports
and sports groups—having their own brand:

30
 Aptonia - Nutrition and Triathlon
 Artengo - Tennis
 B'Twin - Cycling
 Caperlan - Fishing
 Domyos - Fitness, Gym, Dance,[27]
 Forclaz - Trekking
 Fouganza - Horse Riding
 FLX - Cricket
 Geologic - Target Sports such as Archery, Darts and Pétanque
 Geonaute - Sports Electronics
 Inesis - Golf
 Inovik - Cross-country skiing
 Itiwit - paddle sports
 Kalenji - Running
 Kimjaly - Yoga
 Kipsta - Team Sports
 KOROK - Field hockey
 Kuikma - Padel (sport)
 Nabaiji - Swimming
 Newfeel - Sport Walking
 Offload - Rugby
 Olaian - Surfing and Boardwalking
 Opfeel - Squash
 Orao - Kiting and Kitesurfing
 Oroks - Ice hockey
 Outshock - Combat Sports
 Oxelo - Rollersports, Skating and Scooters
 Perfly - Badminton
 Quechua - Hiking, Camping
 Rockrider - Mountain Biking
 Sandever - Beach Tennis
 Simond - Mountaineering
 Solognac - Hunting
 Subea - Diving

31
 Tarmak - Basketball
 Triban - Cycling (Comfort-Oriented)
 Tribord - Sailing
 Van Rysel - Cycling (Performance/Racing-Oriented)
 Wed'Ze - Skiing and Snowboarding
Brands providing technical support for the products for the company's passion
brands:
 Equarea - Clothing designed for the active removal of sweat
 Essensole - Shoe soles and insoles
 Novadry - Waterproof and breathable clothes
 Stratermic - Warm and light clothes
 Strenfit - Light and Robust Synthetic fabrics (non garment)
 Supportiv - Support and compression

6. Store layout of Decathlon:-

Founded in 1976, Decathlon is a limited company that employs a staff of around

46,000. Its stores are present throughout France. The Company has also expanded
internationally, mainly in Europe. Decathlon is one of just a few sports brands
that designs and manufactures its own branded products, in other words,
Decathlon has become a branch-based business. The Decathlon store at Groslay is
typical of the brand's stores and generates several million euros per annum, and
has a staff of 70 and retail surface area of 3,000m². As far as communication is
concerned, the store focuses on merchandising and does very little external
advertising. The case deals with how to increase profitability through store layout
and merchandising, especially through a new marketing plan for the store's
football section because its clientele is of particular strategic importance to the
store.

7. Logistics of Decathlon:-

32
International Plataform

The Decathlon product are manufactured in fifteen countries around the world.
However, the production, which is always outsourced, is centralized in
geographical areas. In the Spain the French firm has its Bicycle suppliers, mainly
in Mataró (Barcelona). In Catalonia, he has plastic products, such as shower caps,
socks and metal components are also manufactured. However, the Catalan
community has lost a large part of the production of Decathlon, which has gone
to Portugal. Morocco is another country that provides numerous articles for
Decathlon, especially textiles, while in Asia sneakers and balls occur.

The displacement of the Spanish production to Portugal answers a new policy of

the French firm globally. Previously always the same products were
manufactured in two different places, just in case a provider failed. But now
they just have two different qualities for the same item, so that now only select
the best supplier for each reference.” Decathlon select and monitor the
components and materials as well as the design of the products marketed under its
brand.

The challenge of deadlines

In 2001, the store of Sant Esteve Sesrovires reached an average of 15 hours in the
preparation of orders, from the time of receipt of an order to exit the truck to the
store. For the current year, management has set itself the challenge of twelve
hours, under the average of the entire sequence: the picking, preparing the
product, pack it, check it, put it in the dock, and upload it to the truck.

In the international arena, the target set by the Decathlon logistics in 2005
provided a range of two to 72 hours for delivery, “regardless of whether the

33
reference should come from the continental store, regional or multiregional” says
Cristina Gaitan, head of logistics for Decathlon northeastern Spain.

The procurement of stores has also been modified as some changes are introduced
in the supply chain. Previously, the priority was to always have stock on the
premises, so they were served daily as many times as necessary as long any
reference didn’t finish . Following an assessment of the costs, the company opted
to get them one day shipping, but with much more material.

On-line orders

The Decathlon products are also available via the Internet, but to do so, you must
go to the French website (address on the local network in each country has a link).
Orders that are made in the French portal are served from the corresponding
regional warehouse. This has meant that, nowdays, on-line sales are still residual
in Spain. For this reason, one of the projects that the company has in mind is
enable an own Spanish channel page for sale.

34
 Conclusion

Decathlon is a multi national company of France and it has its branches

all over the globe. It is a sports brand which specialises in several
sports like badminton football cricket etc. Decathlon is comprised of
many different small brands and companies.
Decathlon is mainly in a leaque of its own with no major competition,
it easily dominates in the sports market.

35
 Project 3

36
 Project Title:- Raymond Group

Introduction

Raymond Group is an Indian branded fabric and fashion retailer,incorporated in

1925. It produces suiting fabric, with a capacity of producing 31 million meters
of wool and wool-blended fabrics.
The group owns apparel brands like Raymond, Raymond Premium Apparel, Park
Avenue, Park Avenue Woman ColorPlus, Kamasutra & Parx. All the brands are
retailed through 'The Raymond Shop' (TRS), with a network of over 700 retail
shops spread across India and overseas, in over 200 cities.
In addition, the group also has business interests in readymade garments, designer
wear, cosmetics & toiletries, engineering files and tools, prophylactics and air
charter operations.
In 2019, Raymonds announced its venture into real estate business under
Raymond Realty. The new venture is poised to start with an investment of Rs.
250 crore (approx $36 million) in developing mid-income and premium housing
units on 20 acres of land in the growing suburb of Thane. Raymond group holds
over 125 acres of land in this region.

37
Objectives of the project Raymond Group:-

a) To know about the Company Raymond Group

b) To study Different Branches of Raymond Group

c) To know the Competitors of Raymond Group

d) SWOC Analysis of Raymond Group

e) To understand Product Display of company Raymond Group

f) To study Store Layout of Raymond Group

38
 Methodology

What is methodology ?

A system of methods used in a particular area of study or activity.

Types of methodology

1. Primary Methodology
2. Secondary Methodology

1. Primary Methodology:- Primary research is defined as a methodology used

by researchers to collect data directly, rather than depending on data collected
from previously done research. Technically, they “own” the
data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.
This project does not have any primary source of data
or methodology.

2. Secondary Methodology:- Secondary research or desk research is a

research method that involves using already existing data. Existing data is
summarized and collated to increase the overall effectiveness of
research. Secondary research includes research material published in research
reports and similar documents.
This project is made by the help of secondary
methodology. To find the required information for the project I have refered to
different websites and catalogues that provide the information about the company
Raymond Group.

39
Theory related to project Raymond Group

1. About the company Raymond Group:-

It was incorporated as the Raymond Woollen mill during the year 1925
near Thane Creek. Lala Kailashpat Singhania took over The Raymond Woollen
Mill in the year 1944. In 1958, then with lot of hardwork and efforts Mr.
Gopalkrishna Singhania and thereafter Mr. Vijaypat Singhania made this small
fabric company into an world renowned brand. The exclusive Raymond Retail
showroom, King's Corner, was opened at Ballard Estate in Mumbai. In 1968,
Raymond had set up a readymade garments plant at Thane. A new manufacturing
facility was set up at Jalgaon (Maharashtra) during the year 1979 to meet the
increasing demand for worsted woollen fabrics. In the year 2000, vijaypat
Singhania handed over his company to his only son Gautam Singhania and in the
year 2015, he gave 37.57% of the total shares to him.
In November 2015, Raymond announced that Sanjay Behl would be taking over
M Shivkumar as CFO.

2. Different branches of Raymond Group:-

Raymond Ltd is largest integrated manufacturer of fabric in the world based

in Mumbai, Maharashtra.It has over 60% market share in suiting in India. It is
also India's biggest woolen fabric maker.Textile division of the company has a
distribution network of more than 4,000 multi-brand outlets and over 637
exclusive retail shops in the domestic market itself. Suitings are available in India
in over 400 towns through 30,000 retailers and an exclusive chain is present in
over 150 cities across India. Its products exports to over 55 countries including
US, Canada, Europe, Japan and the Middle East. It has more than 20,000 design
and colours of suiting fabric which makes it one of largest collection of designs
and colours by single company.It was listed as India's most trusted apparel brand
by The Brand Trust Report in 2015.

40
3. Competitors of Raymond Group:-

Raymond's top 8 competitors are

1. Arvind Limited,
2. Louis Philippe,
3. Sara Group,
4. Blackberrys,
5. Matias,
6. RedStar Safety,
7. Kaaryah Lifestyle Solutions
8. Planet Fashion.

4. SWOT analysis of Raymond Group:-

Strengths in the SWOT Analysis of Raymond :

Strong Brand Name: Raymond is almost a 100-year-old brand and has sustained
through different phases and fashion trends in India and all over the world
through the trust and credibility of its customers. It has a very strong Brand
image and has been successful in satisfying its customers.

Popular Tagline “Raymond: The complete man”: Raymond has been able to
create a strong and well-renowned tagline “The complete man”. This tagline has
been defining Raymond over the years. This has helped Raymond create a strong
image and brand recall of Raymond and has made its advertisements very popular.

41
Product Line Extension: Raymond has been successful in extending its product
line into other popular brands to target various age and income groups. Raymond
owns popular brands Park Avenue, ColorPlus & Park. These brands have been
successful in enhancing the customer base for Raymond and adding new revenue
sources.

The Raymond Shop: The Raymond Shop is a chain of stores through which the
company retains all the brands under it. It has been a successful venture for
Raymond in terms of engaging its customers through its brands and has also
contributed heavily in increasing the sales.

Weaknesses in the SWOT Analysis of Raymond :

Low Global Penetration: Raymond has the major presence in India and some
South East Asian nations which is very low as compared to its major competitors
which are a weakness for the company.

Over Dependence on Indian market: Majority of Raymond’s revenue comes

from India and thus it makes the company vulnerable to any economic, political
or social changes that happen in the nation.

Opportunities in the SWOT Analysis of Raymond :

Increasing Disposable Income in India: Disposable income in India has been
increasing over the years and is expected to increase further at a rapid pace. This
will certainly increase demand in the apparel industry.

Growing Middle Class: The Indian middle class have experienced a shift in their
spending pattern. The middle-class population of India can create high demand in
the near future.

42
Global Expansion: Raymond has a product portfolio which can attract
many markets around the world like African countries, Middle East etc. Raymond
should look forward to expanding globally to increase its customer base and
revenues.

Threats in the SWOT Analysis of Raymond :

Intense Competition: Raymond competes with various local and global players
in the market. Intense competition in the market puts pricing pressure and
reduce market share in the industry.

The abundance of counterfeit products: Presence of counterfeit products,

especially in the Indian market, is in abundance. This not only affects the sales of
the brands but also affect the brand image.

5. Product display of Raymond Group:-

The final layout of the store is the outcome of alignment of the design team with
an external architect. The signature elements of the store mainly highlight
strategic use of Raymond Red across specific details like the façade, furniture
and other displays. "The store fascia available was in an'L' shape. To maximize
visibility we had to showcase The Raymond Shop sign as well as communicate
the presence of Made to Measure. We have created Box windows with the main
signage at the center above the entrance,”says Shradha.

In order to grab the attention of the passerby's a signage has been created using
the latest LED technology, while the Raymond Red element has been imposed to
the window through a running band. Also, the Made to Measure window is
partially open allowing a peek into the in-store sections.

43
Contemporary merchandising designs and specially created zones reflect the
brand values and create an international appeal. The store offers ethnic and
occasion wears through specially designed lounges in order to create a specific
ambience. Largely the use of materials like veneer, glass and Duco/PU finish has
helped to generate a distinct and contemporary look to the store. As for the store's
lighting strategy, Sushil Wakde, Head, Projects, Raymond Ltd. explains,
"Lighting has been designed to bring out the best features of the garments on the
shop floor. The store flaunts white and yellow lamps which highlight the accurate
features of the fabric on display.

6. Store Layout of Raymond Group:-

1. Maximizing returns per square foot

2. Coordinating the merchandise with the store format

3. Allowing flexibility in store design

4. Recognizing the needs and safety of the customers 29

7. Logistics:-

Inbound Logistics selects annual G75 Green Supply Chain Partners based on the
companies’ current and ongoing green logistics initiatives. The publication chose
Raymond for continuously improving sustainability efforts within Raymond
warehouses, including tapping into alternative fuels or energy sources,
implementing a reuse/recycling program, reusing wastewater and incorporating
sustainable packaging.

In addition to the company’s array of sustainable supply chain practices and

energy solutions, the Raymond iWAREHOUSE® platform helps Raymond and its
customers measure fleet and operator performance for optimum results. It tracks
key performance metrics, energy consumption and cost savings, as well as lift
truck uptime, battery performance, kilowatt usage, operator behavior and
throughput. This powerful telematics solution allows managers to correct
inefficiencies and track progress against goals so improvements can be made.

44
“Having a full scale of intralogistics solutions allows Raymond and our
customers to track critical information such as productivity, uptime, battery
performance and cost savings,” said Michael Field, CEO, Raymond. “At
Raymond, we are always searching for ways to make our warehouses and our
customers’ operations more sustainable, so being recognized for our efforts is a
meaningful accomplishment.

45
 Conclusion

Raymond is a big fashion brand name in India, it has become a synonym for
men's wear. Raymond showrooms are well managed and offers the good
service. Raymond’s emerged as a undisputed market leader in the garment
industry. The brand Raymond has the unique perception over its customers
psyche. All the plants used are ISO certified, leveraging on cutting-edge
technology that adheres to the highest quality parameters while also being
environment friendly.

46
 Project 4

47
 Project Title :- Croma

Introduction

Launched in 2006, Croma was the first one-of-its kind large format specialist
retail store that catered to all multi-brand digital gadgets and home electronic
needs in India. Over a decade since its inception, Croma has almost become
synonyms for all electronics needs, with its tech-savvy staff, product range,
Staged presence and the will to help customers.
Bringing alive the promise of a ‘Brighter Every Day’ for its customers, Croma
offers its customers a world-class ambience to shop both in-store and Staged at
www.croma.com and also allows for a seamless ‘omni-channel’ shopping
experience that lets a customer enjoy the best of both the Staged & the offline
worlds. With over 6000 products across 200 brands and 150+ stores across 40+
major cities of India, Croma ensures that for each customer, a Brighter Tomorrow
begins Today! From the newlywed couple setting up their house to the son
reducing his mother’s burden with a washing machine; from the daughter gifting
her parents a new LED TV to the newly promoted manager buying an inverter
air-conditioner to make the summer bearable, Croma ensures that customers
always get ‘More for their money’!

48
 Objectives of the project Croma

a) To know about the Company Croma

b) To study Different Branches of Croma

c) To know the Competitors of Croma

d) SWOC Analysis of Croma

e) To understand Product Display of company Croma

f) To study Store Layout of Croma

49
 Methodology
What is methodology ?

A system of methods used in a particular area of study or activity.

Types of methodology

1. Primary Methodology
2. Secondary Methodology

1. Primary Methodology:- Primary research is defined as a methodology used

by researchers to collect data directly, rather than depending on data collected
from previously done research. Technically, they “own” the
data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.
This project does not have any primary source of data
or methodology.

2.Secondary Methodology:- Secondary research or desk research is a

research method that involves using already existing data. Existing data is
summarized and collated to increase the overall effectiveness of
research. Secondary research includes research material published in research
reports and similar documents.
This project is made by the help of secondary
methodology. To find the required information for the project I have refered to
different websites and catalogues that provide the information about the company
Croma.

50
 Theory Related to project of Croma
1. About the company Croma:-

Croma is the consumer and electronic durables retail chain store promoted by
Infiniti Retail Ltd which is 100% subsidiary of the Tata Sons. It has 101 stores in
25 cities and small kiosks in high traffic malls. Croma offers wide range of
products which include home appliances, computers and peripherals, gaming
software, mobiles phones, home entertainment systems and the white goods.

Croma has also launched its tablets based on Android operating system and
various other products like vacuum cleaners, LCDs, refrigerators and hard disks
under its brand name. Croma has a turnover of around 3000 crores with 6000
products and still plans to increase its presence in the country in future.

Established in 2006, Croma has shown a remarkable growth rate in seven years. It
has shown a growth of 55% in the financial year 2012-13 and was awarded as the
‘most admired retailer’ for the fifth time by India Retail Association.

To increase the credibility of the company and please its customers, it also
launched its e-retail store which brings 24*7 accesses of its products to the
customers. The e-retail portal cromaretail.com has leveraged the strong
distribution of its outlets in various cities.

2. Different Branches of Croma:-

Croma Electronics Branches Details - Mumbai

 International Airpor Branch (Andheri) • ...
 Andheri Airport Branch (Andheri) • ...
 Oshiwara bus depot Branch (Andheri) ...
 CST Airport Branch (Andheri) ...
 Terminal 1 C Branch (Andheri) ...
 Off Linking Road Branch (Bandra) ...
 Near Fly Over Branch (Bhayandar) ...
 Near Maxus Mall Branch (Bhayandar)

51
3. Competitors of croma company:-

Croma's top 8 competitors are:-

1. Vijay Sales,
2. Hellokart,
3. Reliance Digital,
4. Viveks,
5. Corp-o-rate,
6. HomeShop18,
7. Myshopbazzar
8. Goodsrail Online.

4. SWOT analysis of Croma:-

Strengths in the SWOT analysis of Croma :

Strengths are defined as what each business does best in its gamut
of operations which can give it an upper hand over its competitors. The following
are the strengths of Croma :

 Wide product Portfolio: The Croma Group under Infiniti Retak has the
presence in most areas of consumer durables like consumer electronics,
communication, entertainment, hygiene, home appliances and digital devices.
 The Tata Support: Croma is a 100 % owned subsidiary of the Tata Group.
The Tata Group has a rich history of business strategy about them and this
has helped them build a huge empire of their own.
 Steep growth: Croma was established in 2010 when specialty retail
business started booming. IN the past seven years Croma has grown into a
retailer that tops the charts and has a market share of 58 %.This steep growth
shows that the customer trusts this brand.
 E-store: Croma understood that the real business was with an online
retailer and recently launched their online store under the label ecroma.com.
Though it is slowly picking up eventually this will be the saving grace of the
retailer.

52
  Private Label Brands: In comparison to other private labels Croma is
seen to be more trusted and this has resulted in people preferring to invest in
the private label which promises quality similar to those of brands. Strong
private label brands are one of Cromas strengths and this is there across most
of their product categories.
 Tie-Ups: Croma has entered into product development partnerships
with Amazon and Apple and created some innovative product lines which are
also customer friendly.

Weaknesses in the SWOT analysis of Croma :

Weaknesses are used to refer to areas where the business or the
brand needs improvement. Some of the key weaknesses of Converse are:

 Poor customer service: Croma has been often alleged with lack of
empathy for customer needs. The company has also been facing a lot of
complaints lately about the behavior of their in-store personnel. All this have
affected the quality of customer service of Croma Retail.
 Inadequate advertising: The mainstream media have been highly
supportive of online retailers like Amazon who also spend a lot on the
advertisement. Even smaller startups who are in the online space spend
profusely on endorsements and advertising. In comparison to this Croma
seems to be low key.
 Over-reliance on Brand Tata: Croma is depending excessively on the
image that Tata has carved for itself in most of the markets for its business.
This may not be the right strategy always and it is critical that the brand
carves its own independent image for long-term sustenance.

Opportunities in the SWOT analysis of Croma :

Opportunities refer to those avenues in the environment that surrounds the
business on which it can capitalize to increase its returns. Some of the
opportunities include:

 Specific Need: The needs of the customer has not just grown but have
become more specific. The result is the emergence of a lot of specialty stores
There is more scope for growth in various specialty segments and this may be
what each retailer needs to look into for expansion.
 Disposable Income: Globally there is a surge in per capita income with the
increase of people in workplaces and dual income households. This has
increased the disposable income and people are spending impulsively. This is
creating new needs and new markets and segments.

53
  Growth in online shopping: Convenience is making more and more
customers go the online way. This can be both an opportunity and a threat.

Threats in the SWOT analysis of Croma :

Threats are those factors in the environment which can be detrimental to the
growth of the business. Some of the threats include:

 Competition: The company is facing stiff competition from Reliance

Digital, Videocon Retail and online retailers such as Amazon and Flipkart.
 Startups: There has been a serious threat to online start-ups today in the
Indian Market and most of these are online businesses and many of them are
retailers or aggregators. Both these categories are serious threats to retailers.

5. Product Display of Croma:-

Being a large format store, Croma has a distinct category segmentation for
product display, ensuring easy brand selection. Glowing rectangular-shaped
inscriptions, suspended from the ceiling, clearly divide the stores in sections
like ‘computers’, ‘home entertainment’, ‘gaming’, ‘imaging’,
‘communications’, ‘musics and dvds’, ‘small appliances’, ‘large appliances’,
‘personal care’, ‘mobile accessories’, ‘food preparation’, etc.
Croma stocks 6,000 products from 180 national and international brands and
it has been made possible because of technical and sourcing agreement with
Australian retail giant, Woolworths Ltd, supporting its back-end operations.
Croma assures that its product offerings are price competitive and also runs
attractive schemes on various products. Every year, during sale season of
July-August, it offers special discounting on most products. The store also
has “Only at Croma” section, which gives it an edge over its competitors in
the market. Croma also invites people from the corporate offices of the
brands it houses, like LG, Bajaj, Sony, HP, Kodak, and others, for launching
new products or to give special demonstrations of their respective products.
The striking display at Point of Sale (POS) is also one of the most important
key features for elevating promotion and marketing at Croma stores. While
the store might experience a large number of customers during the peak
hours, nonetheless, they seem to be cheerful even while waiting in the queue.

54
6. Store Layout of Croma Company:-

The sprawling length of Croma store dazzles with smooth white and ash-
coloured tiles and powerful fluorescent lights, which illuminates the entire
store magnificently. The key VM features of Croma are its wide, clear aisles,
a clean, well-maintained interior and a logically- planned store, giving it an
upscale modern décour.
The compelling retail environment of the store highlights the exhibiting
brands like Samsung, Canon, Microsoft, HP, et al with glowing promotional
branding at the outer limits of the display racks. To acquire a sustainable
positioning in the consumers’ minds, Croma has designed the store in eight-
category layouts, namely home entertainment, small appliances, white goods,
computers and peripherals, communications, music, imaging and gaming
software.
During this sale season, the store is being decorated with the hangings (titled
SALE in red colour). Even the entry and exit gates are designed with the
banner of sale. Digital signage hanging from the ceiling has been
interestingly installed by Croma for educating customers about products
available in the store. Interesting branding like ‘Chalo Croma’, ‘Join our
extended warranty’, ‘Ask for your exchange offer’, ‘Easy EMI’, etc. further
enrich the customer’s awareness. The store designs and merchandise
presentation give a touch-and-feel appeal to the customers. The merchandise
is elegantly displayed on the square wooden and steel stands at comfortable
heights with clearly revealed respective product price in addition to screen-
based products displayed along the store walls.

7. Logistics of Croma :-
Croma, a Tata Group-promoted electronics retail chain, has tied up with online
marketplace Snapdeal wherein both would sell certain products exclusively at
Croma stores and retail those items also on snapdeal.com where Croma has set up
an exclusive shop. Croma would also be selling its own products on the portal.
This is a part of working towards an omni-channel strategy, which essentially
means retailing through multiple channels such as the web as well as brick-and-
mortar stores. Currently, products from other brands include a tablet model by
Lenovo and a mobile phone model by Karbonn, which would be sold exclusively
by them. "We are in talks and we will have more such deals going ahead," said
Ajit Joshi, CEO & MD, Croma, Infiniti Retail, without disclosing other names.
With this tie-up, however, there would be one thing that all the orders would be
fulfilled by Croma's distribution centres and delivered using Snapdeal's delivery

55
capabilities. The areas around its existing stores, currently numbering 96 in 16
cities in India, could be catered to by the stores themselves.
A fairly similar announcement was made earlier this month wherein Future
Group's Kishore Biyani said the company will invest Rs 100 crore in an e-
commerce initiative and will utilise the existing merchandise at its stores, and
distribution centres, to fulfil orders that come through from customers.
What brick-and-mortar retailers have been attempting recently tells us how they
are considering the use of omni-channel retail for more than just reaching out to a
larger customer base. The companies are looking at using their existing
warehousing capabilities to ensure efficient distribution of existing merchandise
and, in turn, avoid a lot of reverse logistics. Brick-and-mortar retailers are in a
way ensuring that their existing inventory can be utilised as well as managed
better.

56
 Conclusion

Croma ensures to provide best and quality products to his customers and even at a
low cost. They provide the best customer service and best delivery services.
Whenever a new electronic product or gadget is introduced, you can get it at
Croma store. Croma has the best deals and offers for you. Croma Coupons let
you have a huge discount on these expensive products. Here you can have
discount offers, vouchers and cash backs that lead to happy shopping. Shop more
and spent less!

57
 Project 5

58
 Project Title:- Mc Donald’s

Introduction

McDonald's Corporation is an American fast food company, founded in 1940 as

a restaurant operated by Richard and Maurice McDonald, in San Bernardino,
California, United States. They rechristened their business as a hamburger stand,
and later turned the company into a franchise, with the Golden Arches logo being
introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a
businessman, joined the company as a franchise agent and proceeded to purchase
the chain from the McDonald brothers. McDonald's had its previous headquarters
in Oak Brook, Illinois, but moved its global headquarters to Chicago in June 2018.
McDonald's is the world's largest restaurant chain by revenue, serving over
69 million customers daily in over 100 countries across 37,855 outlets as of
2018.Although McDonald's is best known for its
hamburgers, cheeseburgers and french fries, they feature chicken
products, breakfast items, soft drinks, milkshakes, wraps, and desserts. In
response to changing consumer tastes and a negative backlash because of the
unhealthiness of their food, the company has added to its
menu salads, fish, smoothies, and fruit. The McDonald's Corporation revenues
come from the rent, royalties, and fees paid by the franchisees, as well as sales in
company-operated restaurants. According to two reports published in 2018,
McDonald's is the world's second-largest private employer with 1.7 million
employees (behind Walmart with 2.3 million employees).As of 2020,
McDonald's has the ninth-highest global brand valuation.

59
 Objectives of the project Mc Donald’s

a) To know about the Company Mc Donald’s

b) To study Different Branches of Mc Donald’s

c) To know the Competitors of Mc Donald’s

d) SWOC Analysis of Mc Donald’s

e) To understand Product Display of company Mc Donald’s

f) To study Store Layout of Mc Donald’s

60
 Methodology

What is methodology ?

A system of methods used in a particular area of study or activity.

Types of methodology

1. Primary Methodology
2. Secondary Methodology

1. Primary Methodology:- Primary research is defined as a methodology used

by researchers to collect data directly, rather than depending on data collected
from previously done research. Technically, they “own” the
data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.
This project does not have any primary source of data
or methodology.

2.Secondary Methodology:- Secondary research or desk research is a

research method that involves using already existing data. Existing data is
summarized and collated to increase the overall effectiveness of
research. Secondary research includes research material published in research
reports and similar documents.
This project is made by the help of secondary
methodology. To find the required information for the project I have refered to
different websites and catalogues that provide the information about the company
Mc Donald’s.

61
 Theory Related to the project Mc Donald’s

1. About the company Mc Donald’s:-

Siblings Richard and Maurice McDonald opened the first McDonald's at 1398
North E Street at West 14th Street in San Bernardino, California (at 34.1255°N
117.2946°W) on May 15, 1940. The brothers introduced the "Speedee Service
System" in 1948, putting into expanded use the principles of the modern fast-food
restaurant that their predecessor White Castle had put into practice more than two
decades earlier.[citation needed] The original mascot of McDonald's was a chef
hat on top of a hamburger who was referred to as "Speedee".[18] In 1962, the
Golden Arches replaced Speedee as the universal mascot. The mascot,
clown Ronald McDonald, was introduced in 1965. He appeared in advertising to
target their audience of children.[19]

Logo from 1940 until 1948

Logo from 1948 until 1953

Logo from 1953 until 1960

On May 4, 1961, McDonald's first filed for a U.S. trademark on the name
"McDonald's" with the description "Drive-In Restaurant Services", which
continues to be renewed. By September 13, McDonald's, under the guidance of
Ray Kroc, filed for a trademark on a new logo—an overlapping, double-arched
"M" symbol. But before the double arches, McDonald's used a single arch for the
architecture of their buildings. Although the "Golden Arches" logo appeared in

62
various forms, the present version was not used until November 18, 1968, when
the company was favored a U.S. trademark.
The present corporation credits its founding to franchised businessman Ray
Kroc on April 15, 1955. This was in fact the ninth opened McDonald's restaurant
overall, although this location was destroyed and rebuilt in 1984. In 1961, Kroc
purchased the McDonald brothers' equity in the company and began the
company's worldwide reach.[20] Kroc was recorded as being an aggressive
business partner, driving the McDonald brothers out of the industry.
Kroc and the McDonald brothers fought for control of the business, as
documented in Kroc's autobiography. The San Bernardino restaurant was
eventually torn down in 1971, and the site was sold to the Juan Pollo chain in
1998. This area serves as headquarters for the Juan Pollo chain, and a McDonald's
and Route 66 museum.[21] With the expansion of McDonald's into many
international markets, the company has become a symbol of globalization and the
spread of the American way of life. Its prominence has made it a frequent topic of
public debates about obesity, corporate ethics, and consumer responsibility.

2. Different Branches of Mc Donald’s:-

On June 13, 2016, McDonald's confirmed plans to move its global headquarters
to Chicago's West Loop neighborhood in the Near West Side. The 608,000-
square-foot structure opened on June 4, 2018 and was built on the former site
of Harpo Productions (where The Oprah Winfrey Show and several other Harpo
productions taped).
The McDonald's former headquarters complex, McDonald's Plaza, is located
in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling
area of Paul Butler, the founder of Oak Brook. McDonald's moved into the Oak
Brook facility from an office within the Chicago Loop in 1971.
McDonald's has become emblematic of globalization, sometimes referred to as
the "McDonaldization" of society. The Economist newspaper uses the "Big Mac
Index": the comparison of the cost of a Big Mac in various world currencies can
be used to informally judge these currencies' purchasing power parity.
Switzerland has the most expensive Big Mac in the world as of July 2015, while
the country with the least expensive Big Mac is India (albeit for a Maharaja
Mac—the next cheapest Big Mac is Hong Kong)
Some observers have suggested that the company should be given credit for
increasing the standard of service in markets that it enters. A group of
anthropologists in a study entitled Golden Arches East looked at the impact
McDonald's had on East Asia and Hong Kong, in particular. When it opened in
Hong Kong in 1975, McDonald's was the first restaurant to consistently offer

63
clean restrooms, driving customers to demand the same of other restaurants and
institutions. McDonald's has taken to partnering up with Sinopec, the second
largest oil company in the People's Republic of China, as it takes advantage of the
country's growing use of personal vehicles by opening numerous drive-thru
restaurants.McDonald's has opened a McDonald's restaurant and McCafé on the
underground premises of the French fine arts museum, The Louvre.

3. Competitors of Mc Donald’s:-

1. KFC
2. Burger King
3. Subway
4. Starbucks
5. Domino’s
6. Pizza Hut
7. Dunkin’ Donuts
8. Wendys
9. Taco Bell
10. Chipotle
11. Tim Horton’s
12. Papa John’s Pizza
13. Dairy Queen

4. SWOT analysis of Mc Donald’s:-

McDonald’s Strengths
The following factors are McDonald’s most potent aspects which have ensured
the company’s profitability, development and universal brand image.

1. Tenth Most Valuable Brands

64
McDonald’s is the tenth most valuable brand in the world. With an incredible
brand value worth, the company rules the restaurant industry regardless of
the fierce competition.

2. Tasty Food
McDonald’s French fries are considered the best tasting fries in the fast food
industry.

3. McDonald’s – A Real Estate Company

Very few people know that apart from selling burger and fries, McDonald’s has a
multi-billion real estate empire. Imagine having thousands of premium locations
around the globe.

As of end of 2018, it has 37,855 restaurants in 120 countries, out of which

35,085 are franchises and rest are company-operated restaurants.
McDonald’s franchise works slightly differently. McDonald’s not only provides
their brand name, recipes, ingredients, processes to franchisees but also owns the
land and operates as a landlord and makes revenue through rent payments.
4. Technology Initiatives

McDonald’s is taking revolutionary technology initiatives to make their

‘Experience of the Future’ dream come true. Initiatives like implementing self-
service with kiosks, mobile order and payment systems are benefiting
McDonald’s image as the ‘restaurant of the future.’

5. Technology Acquisitions
The company’s latest acquisition of ‘Dynamic Yield’ is another step towards
enhanced personalized marketing and customizations. Dynamic Yield is an Israeli

65
startup that assists brands like McDonald’s to boost their customer experience
with brands personalize offerings.

6. Highest Brand Value in Fast Food Brands

McDonald’s enjoys the privilege of being the most valuable fast food brand in the
world with the brand value of $126.04 billion in 2018. No other brand, in the fast
food category, was even close to McDonald’s worth as Starbucks, which was the
second most valued brand had a worth of just $44.5 billion.

McDonald’s Weaknesses
Here are some of the shortcomings of McDonald’s’ strategy and structured
composition, which affects its overall growth.

1. The Franchise business model

McDonald’s is the best example of international franchising models. However,
having this complicated web of franchised and company-operated restaurants
expose the brand to certain risks.

The risks of financial deterioration, mismanagement, customer dissatisfaction,

and low revenue generation. The company heavily depends on the franchises
which works independently and hence they have no control over their day to day
performance, but it affects the brand directly.

2. Supply chain interruptions

66
McDonald’s being one of the busiest food chains often faces issues due to
disruption in the supply chain. Also, it limits the availability of products, which
are critical to the operations.
Therefore, when a franchise experiences such interruptions, the operational
expense increases, which there by results in reduce revenue and lower
profitability.

3. Lack of Employee Satisfaction

Due to recent employee right revolutions worldwide and increased wage limits,
many organizations have faced critical dissatisfaction from employees.
Recently McDonald’s has faced extreme backlash from their workforce. The
workers went to several protests and strikes with a demand to increase their
minimum wage to $15 an hour, causing the company reputational harm.

4. McDonald’s Breakfast Menu Has Lost Its Charm

For nearly a decade, McDonald’s breakfast sales remained unbeatable especially
in the US. However, in May 2018, the company’s CFO accepted that they have
been observing a downfall in McDonald’s breakfast menu consumption and they
must do something to fix it.
But with such fierce competition around, it won’t probably be easy to regain the
popularity for breakfast meals.

5. CEO got fired

In Nov 2019, McDonald’s CEO, Steve Easterbrook, was fired after having a
consensual relationship with an employee. It violated company policy. Also, the
company’s board stated that Steve had “demonstrated poor judgment.”

McDonald’s Opportunities
The following opportunity section for McDonald’s emphasizes the emerging
chances of growth. It can help the company to improve its business performance,
management structure, and strategic growth and other aspects.

1. Value Meals
In 2018, McDonald’s launched its “$1, $2, $3” menu and “2 for $5 Mix and
match deal” proposed toward its value-conscious consumers. The menu was a
successful addition, resulting in increased sales.

2. Innovative Products

67
McDonald’s must put efforts to introduce new, innovative items on their menu to
make customers choose them instead of the new fast food outlets.
In 2018, the company started to serve an exclusive beverage – MIX by Sprite
Tropic Berry in their New York outlets. It became an instant hit and is likely to be
served in all of the US.
Launching more items like this according to the geographical conditions and
culture can help McDonald’s maintain their charm for a longer period of time.

3. Global Expansion
McDonald’s rules over the US, but it is often that it struggles in the international
market. However, the company has high potential to continue its global
expansion by focusing more on international markets rather than different states
of America.

4. Rebuilding the Brand Image

While fast-food restaurants are struggling to fight the image of ‘junk producing
centers’, McDonald’s can play it smartly by continuing its aggressive initiatives
towards, healthy and customized offerings.

These developments have begun to show progress, with positive comparable sales
leading to a growth in profits. The re- franchising mission have surely pushed the
sales back, but in the long run, the healthy image of McDonald’s can continue to
make bigger differences.

5. Mobile order and McDelivery

McDonalds has initiated a partnership with UberEats and Door dash for US food
delivery. These mobile order and delivery initiatives help McDonald’s to reach
and fulfil customer’s ever-changing needs.

McDonald’s Threats
The threat factor is connected with the phenomenon which stops the company
from taking full advantages of the benefits that can be derived from the available
strengths. Therefore these are the few threat that McDonald’s faces.

1. Risky Investments on Technology Initiatives

Although the innovative changes done by McDonald’s have a positive outlook,
the investment in technology is still risky.

68
The public pace of adapting new technologies may slow down the return on
investment, and the results of enhancing customer experience may not generate
the expected returns.

2. Fierce Competition from Competitors like Chick-Fil-A

We might think that burger giants like ‘Burger King’ are McDonald’s only
competitors, but the table is beginning to turn.
Recently, Restaurant Business revealed that Chick-fil-A is now McDonald’s
biggest competitor in the wildly competitive Quick Serve Restaurant (QSR) area.

3. Cultural Threat While operating in Various Countries

Being a global fast-food chain, McDonald’s has often faced multiple cultural
threats in different parts of the world, causing harm to the image of the brand.
Also, it gets challenging to adapt and operate differently as per the location of the
franchise. For example, a few years ago, McDonald’s faced quite a big scandal
for using ingredients which were not ‘halaal’ in Muslims countries.
Such controversies make it difficult for McDonald’s to meet customer
expectations with inherited risks in the international operating environment,
deteriorating the brand image.

4. New Age Fast Food Trends

McDonald’s often for millennial is considered an old school with its traditional
menu and taste. In this situation, food chains like shake shack and Wendy’s take
full advantage with their often experimented menu and recipes to include variety.
For example, McDonald’s failed to compete with Wendy’s “Signature-Crafted
Burgers.” and hence had to stick with its conventional Quarter Pounders to save
face.

5. Constant Environmental Concerns

Like every other food giant, McDonald’s face immense pressure to improve its
practices to minimize the waste, which causes environmental pollution.
The growing ecological concerns demand McDonald’s to take initiatives in this
regard and set an example for other food outlets but it is not that simple.
In March 2018, environmental activists proposed the board of directors of
McDonald’s to abandon the use of plastic straws in its over 37,000 restaurants
worldwide due to explosion of plastic pollution.

69
5. Product display of Mc Donald’s:-

McDonald's predominantly sells hamburgers, various types of chicken, chicken

sandwiches, French fries, soft drinks, breakfast items, and desserts. In most
markets, McDonald's offers salads and vegetarian items, wraps and other
localized fare. On a seasonal basis, McDonald's offers the McRib sandwich.
Some speculate the seasonality of the McRib adds to its appeal.
Products are offered as either "dine-in" (where the customer opts to eat in the
restaurant) or "take-out" (where the customer opts to take the food off the
premises). "Dine-in" meals are provided on a plastic tray with a paper insert on
the floor of the tray. "Take-out" meals are usually delivered with the contents
enclosed in a distinctive McDonald's-branded brown paper bag. In both cases, the
individual items are wrapped or boxed as appropriate.
Since Steve Easterbrook became CEO of the company, McDonald's has
streamlined the menu which in the United States contained nearly 200 items. The
company has looked to introduce healthier options, and removed high-fructose
corn syrup from hamburger buns. The company has removed artificial
preservatives from Chicken McNuggets,replacing chicken skin, safflower oil and
citric acid found in Chicken McNuggets with pea starch, rice starch and
powdered lemon juice.

6. Store Layout of Mc Donald’s:-

. 1. “One world, One Burger”- McDonald’s By VASIM CAlCuttAwAlA

. 2. So, Let’s go, Listen My story, Agenda of My story is AGENDA•
HISTORY• SOME FACTS ABOUT MCDONALD’S• PAST AND
PRESENT STRATEGY• SWOT ANALYSIS• 7 P’S• MCDONALDS
LOCATION SELECTION• TECHNOLOGY IN RETAIL• RETAIL
FORMAT• STORE LAYOUT• ORGANISATIONAL STRUCTURE
. 3. McDonalds Mission Statement"McDonalds vision is to be the
worldsbest quick service restaurantexperience. Being the best
meansproviding outstanding quality, service,cleanliness, and value, so that
we makeevery customer in every restaurantsmile."
. 4. Mcdonald’s History  McDonalds was started as a drive-in restaurant
by two brothers, Richard and Maurice McDonald in California, US in the
year 1937. The brothers used assembly lineprocedures in their kitchen
for massproduction... As word of their success spread, franchisees
started showinginterest. However, the franchising system failed because
the

70
 . 5. McDonald’s History• At this point, Ray Kroc (Kroc), distributor
formilkshake machines.Expressed interest in thebusiness, and he finalized
a deal with theMcDonald brothers in 1954.•In 1961, he bought out the
McDonald brothersshare for $2.7 million and changed the name ofthe
company to McDonalds Corporation. In1965, McDonalds went public...
. 6. De ak IACh ND I McDonald’s in India
. 7. McDonald’s History INDIA • Entered in India 1996 • McDonalds India
is a 50 – 50 JV partnership between MCDONALD’S CORPORATION
(U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi •
Localisation: DON’T OFFER ANY BEEF OR PORK ITEM IN INDIA
IN PRODUCT LIKE MCVEGGIE, PIZZA MCPUFF ETC.THEY USE
SPICES FAVOURED BY INDIANS SOFT SERVES AND
MCSHAKES ARE EGGLESS • Actively Involver in many social activities
likegi CHILD EDUCATION, PULSE POLIOiesetc.
. 8. History in India• 1996 …the first McDonald’s restaurant opened on Oct.
13, at Basant Lok, Vasant Vihar, New Delhi. It was also the first restaurant
in the world not serving beef on its menu• 1997…the first Drive –Thru
restaurant at Noida• 1999…the first Mall location restaurant at Ansal Plaza
– New Delhi• 2000…the first highway restaurant at Mathura• 2001…the
first thematic restaurant at Connaught Place• 2002…the first restaurant in a
food court at 3C’s, Lajpat Nagar and the first restaurant at the Delhi Metro
Station at Inter State Bus Terminus
. 9. Segmentation, Targeting andPositioning• McDonald’s uses
demographic segmentation strategy with age as the parameter. The main
target segments are children, youth and the young urban family
. 10. ADAPTION STRATEGY• Menu differences:• Netherlands and
Austria– Beer• Germany – Chinese Week• Canada – Mc Pizza• India –
Goat and lamb burgers half of menu vegetarian• Japan – ingredients such
as cabbage and Teriyaki• USA – Barbecue bacon Burgers, sausage
breakfast burritos

7. Logistics:-

First, they use what we call a “Supplier Optimization” system in which they
prefer to select only a few suppliers with whom they create a solid, long-term
relationship rather than having too many. This helps building a relationship where
trust is a major component.

This is also linked to the “Vested business model” that McDonald is trying to
create. It is a model in which every party wins: the suppliers, the company and its

71
 employees, and the franchisees. They want to answer this important question:
“what’s in it for We?“: they work together to ensure a mutual success.

In order to build a successful system, they have created a set of rules to follow:

 Rule 1: Focus on outcomes, not transactions

 Rule 2: Focus on the what, not the how
 Rule 3: Agree on clearly defined and measurable outcomes
 Rule 4: Pricing model/incentives for cost/service trade-offs
 Rule 5: Govern for insight, not oversight
McDonald also uses 3PL Strategy (3rd Party Logistics providers), such as Martin
Brower, which are responsible for executing the supply chain management
decisions. The company represents 36,000 restaurants throughout the world,
among which 80% are franchises. the board of Directors made the decision
to support these franchises and to assure that they are correctly supplied. To do
so, they created shorter supply chains, which are easier and more reliable to deal
with. This also means a great supply and demand consistency where the supply
exactly meets the customers’ needs. To do so, each restaurant is approximately
resupplied 2.5 times a week with fresh and frozen products.

McDonald is currently spending a lot of money into its supply chain development
in order to offer a greater experience to its customers. For having such a
performant supply chain strategy, McDonalds has been able to serve 62 million
customers a day!

72
 Conclusion

McDonald’s has been successful in operating within the food service industry
through efficient strategies and quality standards which enables them to gain
competitive advantage. As evidenced by its international market growth,
McDonald’s has already been efficient in gaining entry even in the most
challenging markets like Britain. Through its strong sense of quality service and
customer satisfaction, McDonald’s was able to offer its products to the Britain
market. Products were modified to suit the British taste and preferences;
affordable prices were implemented; effective promotions and offers were done.

These are some of the strategies involved in the company’s business strategy
which allowed McDonald’s to gain the Britain support. Despite these successes,
the company should take into consideration the growing level of competitiveness
in the food service industry.

73