Professional Documents
Culture Documents
ON
Submitted by:
ABHILASH OJHA
FACULTY SCM
(MBA IV SEM)
Roll no. ____________
PREFACE
The Topic of study was MARKETING
MARKETING STRATEGY TO PROMOTE HOME
CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR PRADESH.
India is going through a retail revolution. All the big business houses are entering this
Sector and it is growing at a very past pace. International giants in this sector like WalMart, Tesco and Care four are also trying to enter the Indian market. Retail is offering
tremendous opportunities in employment. However, our country also poses a big
challenge to organized large retailers particularly in food sector. Food being perishable
item, for the retailer to be successful the key is proper supply chain management. The
challenge comes from a number of factors, e.g. huge size and population of our country,
varied culture and hence varied taste, very poor infrastructure like improper roads, bad
connectivity between production centers and markets, lack of proper cold chain facility
like refrigerated transportation, ware-housing etc. Under these circumstances it is
interesting to find out how large organised retailers are coping up with these problems. In
this paper a comparative study is made in supply chain management adopted by different
players in food and grocery segments.
ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people concerned
and this particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement
and help.
Wish to place on record my sincere gratitude to my project guide Dr. SANJAY
SRIVASTAV, Faculty Member, Sherwood College of Management, Lucknow. I thank
him for constructive help and encouragement throughout the project. Without his support
and guidance taking this would not have been possible.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by
my family members.
Im also thankful to my friends who provided me their constant support and assistance.
ABHILASH OJHA
MBA-4th Sem
DECLARATION
I do hereby declare that the research report titled MARKETING STRATEGY TO
PROMOTE HOME CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR
PRADESH submitted by me in partial fulfillment of the requirement of Master of
Business Administration, exclusively prepared and conceptualized by me and is not
submitted to any other Institution or University or published anywhere before for the
reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not
been obtained from any other part.
ABHILASH OJHA
MBA-4th Sem
EXECUTIVE SUMMARY
The supply chain management is logistics aspect of a value delivery chain. It comprises
all of the parties that participate in the retail logistics process: Manufacturers,
Wholesalers, Third Party Specialists like Shippers, Order Fulfillment House etc. and the
Retailer. Here, logistics is the total process of planning, implementing and coordinating
the physical movement of merchandise from manufacturer to retailer to customer in the
most timely, effective and cost efficient manner possible. Logistics regards order
processing and fulfillment, transportation, warehousing, customer service and inventory
management as interdependent functions in the value delivery chain. It oversees
inventory management decisions as items travel through a retail supply chain. If a
logistics system works well, the retail firm reduces stock outs, hold down inventories and
improve customer service all at the same time.
Logistics and Supply Chain enables an organized retailer to move or store products more
effectively. Efficient logistics management not only prevents needless movement of
goods, vehicles transferring products back and forth; but also frees up storage space for
more productive use.
Retail analysts say on-time order replenishments will become even more critical once the
Wal-Mart/ Bharti combine begins operations - the American retailer works almost
entirely on cross-docking and is likely to demand higher service levels, including
potential levies for delays in shipment.
TABLE OF CONTENT
PREFACE
ACKNOWLEDGEMENT
DECLARATION
EXECUTIVE SUMMARY
CHAPTER-I
INTRODUCTION
14
21
49
50
RESEARCH METHODOLOGY
51
CHAPTER-II
54
COMPANY DETAILS
55
MANAGEMENT
57
PRODUCT LINE
59
COMPETITORS
63
GOVERNMENT POLICIES
64
ACHIEVEMENTS
65
CHAPTER-III
67
LEARNINGS
68
DATA ANALYSIS
69
FINDINGS
79
CHAPTER-IV
RECOMMENDATIONS
CHAPTER-V
80
81
92
CONCLUSION
93
BIBLIOGRAPHY
94
ANNEXURE/QUESTIONNAIRE
95
CHAPTER I
FINANCE IN INDIA
More than half of personal savings are invested in physical assets such as land, houses,
cattle, and gold.
The Indian money market is classified into: the organised sector (comprising private,
public and foreign owned commercial banks and cooperative banks, together known
asscheduled banks); and the unorganised sector (comprising individual or family owned
indigenous bankers or money lenders and non-banking financial companies (NBFCs)).
The unorganised sector and microcredit are still preferred over traditional banks in rural
and sub-urban areas, especially for non-productive purposes, like ceremonies and short
duration loans.
Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in
1980, and made it mandatory for banks to provide 40% of their net credit to priority
sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure
that the banks fulfill their social and developmental goals. Since then, the number of bank
branches has increased from 10,120 in 1969 to 98,910 in 2003 and the population
covered by a branch decreased from 63,800 to 15,000 during the same period. The total
deposits increased 32.6 times between 1971 to 1991 compared to 7 times between 1951
to 1971. Despite an increase of rural branches, from 1,860 or 22% of the total number of
branches in 1969 to 32,270 or 48%, only 32,270 out of 500,000 villages are covered by a
scheduled bank.
Since liberalisation, the government has approved significant banking reforms. While
some of these relate to nationalised banks (like encouraging mergers, reducing
10
INDUSTRY PROFILE
India is undergoing rapid development. This means that there are millions of people who
dream of better home, better infrastructure and a better life. This opens several avenues of
potentially limitless growth in the banking and finance sector. Bajaj Finserv Lending will
help grab this opportunity to grow your business, through lending loans, financing, etc.
BACKED WITH
A favorable demographic profile which supports a higher retail off take - 54% of the
population is in the 15-35 years age group. India consists of a dynamic and a growing
middle-class class which on a purchasing power parity basis is much larger than the
entire population of the US and a consumer credit market that is growing by more than
40% per annum.
11
12
13
The major Non Banking Financial Companies (NBFCs) in India have their
relative specializations, for e.g. HDFC (mortgage loans), IDFC (infrastructure
loans), Mahindra Finance, Power Finance Corporation (power financer) &
Shriram Transport Finance (auto loans). The trend of segmental monopoly is
changing as banks are entering long-term finance and FIs also meeting the
medium and short term needs of the business masses
NBFCs' growth had been constrained due to lack of adequate capital. Going
forward, we believe capital infusion and leverage thereupon would catapult
NBFCs' growth in size and scale. A number of NBFCs have been issuing nonconvertible debentures (NCDs) in order to increase their balance sheet liquidity.
Also to address this purpose, especially in the infrastructure financing space, a
new category of NBFCs was formed called Infrastructure financing companies
(IFCs).
NBFCs are not required to maintain cash reserve ratio (CRR) and statutory liquid
ratio (SLR). Priority sector lending norm of 40% (of total advances) is also not
applicable for them. While this is to their advantage, they do not have access to
low-cost demand deposits. As a result their cost of funds is always high, resulting
in thinner interest spread. However, the regulatory arbitrage may soon change
between the two entities with the help of the Usha Thorat committee
recommendations, which call for stricter regulations in the space.
14
It was also the most challenging year for the Indian commercial vehicles sector.
India's cycle-prone commercial vehicle industry is not new to downturns. Thus
the vehicle financiers too faced enormous challenges during the year.
Despite the overall slowdown in the economy, the demand for individual home
loans continued to remain strong. The demand for affordable housing remained
robust with increased growth coming from tier II and tier III cities. In an endeavor
to further support home loans, the Finance Act, 2013 provided a one-time benefit
of additional interest deduction up to Rs 1 lakh for first-time home buyers,
provided the loan amount and property cost did not exceed Rs 25 lakhs and Rs 40
lakhs respectively. This, coupled with the other fiscal benefits available on home
loans has helped reduce the effective rate of interest payable on a home loan.
Thus, overall, FY14 turned out to be a strong year in terms of home loan
disbursements for housing financiers.
During FY14 India continued to show a deceleration in growth with the GDP
growth rate at lower than 5 percent. The macroeconomic scenario was difficult
with a slowdown in the investment cycle, persistently high headline inflation and
a volatile currency and interest rates. The trend of declining private investment in
15
Infrastructure continued during the year. The issues faced by the infrastructure
sector are well known and the Government initiated some steps to reduce the
bottlenecks faced in project execution. And FY14 proved to be an equally
turbulent year for infrastructure financiers.
The Reserve Bank of India granted branch licenses to two NBFCs; namely, IDFC
and Bandhan Financial services to set bank in the private space.
The retail focused NBFCs witnessed a surge in asset quality issues during the
fiscal ended March and the troubles are likely to continue in FY15 as well. The
agency stated delinquencies due for over 180 days, after which the asset turns bad
as per the existing reporting guidelines, for the retail focused NBFCs increased to
1.9% for FY14 from 1.3% at the end of FY13. Going by the 90-day due rule,
which qualifies an asset as bad for commercial banks, delinquencies increased to
4.5% as of March 2014 as against 3.6% in the year-ago period.
The credit growth registered by retail focused NBFCs also declined massively
during the fiscal with such NBFCs reporting only 8% growth in advances as
against 19% rise in advances in the previous fiscal. A significant part of the
slowdown was due to de-growth in the commercial vehicle, construction
equipments and gold loan segments as reported by the agency.
16
To know about the customer perception about the Home Credit India Pvt. Ltd.
17
LIMITATIONS
This report incorporates sincere efforts to submit the best possible dossier on the
topic assigned because no study can be perfect. There are bound to be limitations
that I faced and within which I had to work.
The data used in most part of the report is primary data, it has inherent
discrepancy.
Some of the respondents were not completely aware of its products and track
record.
Report limited to Lucknow region only so it doesnt resemble the whole state or
nation.
18
RESEARCH METHODOLOGY
Research
scientific procedures the main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Marketing research is the careful analysis of a
business situation by scientifically analyzing it and using various statistical applications
to the subject of study.
Research is the process of finding a solution through the use of scientific tools and
techniques. Marketing research is a methodical and purposeful study conducted to obtain
solution for specific marketing problem.
As far as method is concerned, I preferred personal interview or face to face meeting to
ensure accurate information and encourage frank response to questions. At the same time
telephone or mail survey was not possible.
While framing the questionnaire, I tried to list a series of question, which could elicit the
needed information for proposed study. Questions, which were of no particular value for
the study objectives, were not included. I also tried to keep in mind the respondents
understanding capacity, ability to recall the information and his experience limits. I didnt
include those
Questions in the questionnaire, which could have raised misconception and promoted
non-cooperation on their part.
However in the questionnaire I used simple words, which were easy to understand, and
beyond any doubt. In the same way ambiguous questions were not included and questions
were arranged in a logical order.
19
RESESRCH INSTRUMENT
The research instruments generally used to collect primary data are questionnaires and
mechanical instrument. Some of these are;
Questionnaire:Questionnaire are formal sets of questions, prepare to collect the require information .this
is one of the most effective and popular technique used in survey. Questionnaire is a tool
which provides right information.
Sampling:Proper sampling design is essential in marketing research so the sample has to be
collecting in such a way that it represents the entire population. Sample size has taken of
100.
Collecting of data:In dealing with customers it is often found that data, at hand are inadequate, and hence it
became necessary to collect data that are appropriate and adequate. There are two way of
collecting the appropriate data:1. By observation:
This method implies the collection of information by investigators own observation,
without interviewing the respondents .In survey many times I observed that is what
the reason to damages and shortage of goods are.
.Personal interview:
I have also collected my data through Personal interview. I made a well structured
questionnaire and asked them what the reason of damages and shortages are.
20
Secondary data:
Secondary data is collected from the company internal and external resources. While the
internal resources include the company literature, sales report, broachers, pamphlets etc.
and the external sources could be included magazines, newspaper etc.
Research type:My project based on supply chain and damages and shortage so I am taking interview and
informative research. The main advantages of this research that I have no control over
the variable. I have done my project in Pantaloons Store, Lucknow warehouse.
Sampling method:In my survey I have used deliberate sampling. This sampling method involves purposive
or deliberate selection of a particular unit of the universe. It can also be known as
convenience sampling.
21
CHAPTER II
22
COMPANY DETAILS
HOME CREDIT INDIA PRIVATE LIMITED
Founded in 1997, Home Credit Group
has established itself as an emerging
markets
specialist
in
consumer
markets
ahead
of
its
competitors.
Continuing the successful development of the business in Europe (the Czech Republic,
Slovakia, Russia, Belarus and Kazakhstan), Home Credit expanded into Asia in 2007 and
has operations in China, Vietnam, Indonesia, Philippines and in India.
35 million customers
44,800 employees
23
24
finance
provider
with
OWNER
Home Credit B.V. is owned by PPF Group N.V.,with an 86.6% stake and EMMA
OMEGA LTD, an investment holding company ultimately owned by Mr. Ji mejc, with
a 13.4% stake.
PPF Group N.V. is one of the largest investment and finance groups in Central and
Eastern Europe (CEE). PPF was founded by Mr. Petr Kellner, a prominent and successful
Czech entrepreneur, who remains the major shareholder. With EUR 21.5 billion of assets
25
under management (as of 31 December 2012), PPF's business investments range across a
variety of sectors, with a focus on banking and finance. PPF's reach spans across the CEE
and Russia to Asia.
CORE BUSINESS
Home Credit's core business is to provide consumer finance lending to qualified mass
market customers, often first-time borrowers. Our comprehensive presence across each of
our markets consists primarily of in-store financing, i.e., non-collateralised, non-cash
loans primarily to customers seeking purchases of durable goods, and we provide this
service directly in the shops through our branded "point-of-sales" outlets. This localised
approach means that we have an efficient and flexible distribution model as these POS
outlets are supported by close cooperation with various local payment channels including
automated payment machines, post offices and cash kiosks, and complemented by our
own branches in some markets (Russia, Kazakhstan, Belarus). In selected markets, we
also provide cash loans, credit cards and retail banking services such as, deposits or
current accounts.
26
OUR ETHOS
Our success is backed by the highest standards of business practice in our dealings with
customers, employees, investors and other stakeholders. We also look after our chosen
retailers through dedicated support, extensive marketing assistance and training. In each
country, we have an internationally experienced management team and we endeavour to
share best practice across the Group to improve our customer service and to grow the
businesses.
27
28
29
MANAGEMENT
Our people are key to the success of our business and the backbone of our localised
approach and it is a crucial component of Home Credit's values to ensure our employees
progress within the company and to share innovation and best practice across the group.
Our local management team receives broad support from the experts at the global Home
Credit headquarters and this is the team that we believe will be successful in growing the
business in India through their experience and expertise:
Pavel Maco-CEO
Chief Executive Officer
Pavel Maco joined Home Credit Bank, Kazakhstan as Chief
Financial Officer in 2009 and was appointed as Chief Executive
Officer in July 2010. He was appointed as CEO in India in Oct
2013. Prior to joining Home Credit Group, he spent a year at VAB BANK, Kiev, Ukraine
as CFO and Deputy Chairman of the Board of Directors, where he was responsible for
the financial management of the bank, with a primary focus on cost control. He
previously spent ten years at GE Consumer Finance, based in the Czech Republic, Ireland
and Russia in senior roles focused on finance and operations management.
Mr. Maco studied Industrial Electronics at Novosibirsk State University, Novosibirsk,
Russia and also holds an MSc in Accounting and Systems Engineering from Czech
Technical University, Prague and an MBA in Finance and General Management from the
University of Pittsburgh's Katz School of Business in the U.S.
30
Magdolna Juridesz
Chief Financial Officer
Magdolna Juridesz joined Home Credit in 2015 with over two
decades of experience across financial services and consulting. At
Home Credit India, she is Chief Financial Officer responsible for
financial planning and analysis, accounting, procurement and treasury functions. Prior to
Home Credit, Magdolna was Chief Financial Officer of CIB Bank (Intesasanpaolo),
Hungary, responsible for 21 entities of the banking group including accounting, taxation,
financial controlling, procurement and economists. In the past she has also worked with
Citibank Hungary as Vice-President, Strategic Projects and Planning where she managed
a wide variety of strategic projects for the CEO and was a member of the bank's
Management Committee. Magdolna has also served as Chief Financial Officer of
Hungarian
Post
Insurance
Companies.
Prior
to
that
she
worked
with
PricewaterhouseCoopers and began her career with Arthur Andersen. She has a Masters'
degree in Economic Sciences from the Budapest University of Economics.
Vlastimil Hrabal
Chief Sales Officer
Vlastimil joined the Home Credit Group in 2012. Over the last
eight years, he has worked in internationally renowned insurance
companies where he managed projects in Operations and Sales.
For the past two years with Home Credit India, Vlastimil has led the Operations
department transforming it into a well-oiled engine. He leads the Sales network across the
country today and holds a Masters degree from the University of Economics, Prague.
31
Manu Pal
Chief Strategy and Marketing Officer
A Chartered Accountant by qualification, Mr. Pal has amassed a
rich career spanning over 15 years in various sectors including
Retail Banking, Commercial Finance, Insurance and Healthcare in
both mature and emerging economies. He is responsible to establish the Marketing
function for the India business. His scope encompasses Marketing, Market Strategy,
Market
Research,
Branding,
Cross
Sell,
Product
Management
and
PR
&
Communications. Prior to this, he successfully built the Sales network for India
Operations. Before that he also served as the interim CMO and Head of Customer
Relationship Management with GE Money Bank and was responsible for managing the
integrated Customer Relationship Management (CRM) segment, encompassing direct
marketing, lifecycle management, channel management, customer analytics and related
technology infrastructure across the Personal and Commercial banking, Sales Finance
and Auto product segments in the Czech Republic
Tomas Dudasko
Chief Operations Officer
Tomas has been working with the Home Credit Group for over six
years, and has worked at the global Home Credit IT Centre in the
Czech Republic as well as lead the IT team in India. Over the
years, he has been responsible for rolling out projects across geographies such as Czech
Republic, Egypt and India. As Chief Operations Officer at Home Credit India, Tomas is
responsible for the Client verification process, Customer Care, Registration team and
32
Payment channels. Tomas graduated from Masaryk University, Brno, with a degree in
Computer Science and Mathematics.
Vijay Dhingra
Head of Legal
Vijay brings along a varied experience of over 12 years in the
fields of Corporate Governance, Compliances and Legal affairs of
the Company. His last assignment was with GE Capital Services
India where as part of Legal & Secretarial Team responsible for compliances and legal
matter of the Company. He was also associated with entities like HSBC and IFCI Factors
wherein he was involved in setting up compliance structures and filing of offer
documents with SEBI. Vijay is Law Graduate and Associate member of Institute of
Company Secretary of India.
Manish Kaushik
Head of Security
Manish Kaushik who joined Home Credit India in August 2013
with a rich experience of over 16 years in Security & Fraud Risk
Management, fraud frameworks & policy, fraud prevention
systems & strategy, prevention detection & major investigations - internal & external
obtained within multiple product portfolios & channels.
He has successfully achieved lowest loss ratio in the industry, In his previous company
"SBI Cards" his team was awarded as the best Fraud Control team and was given Leaders
Award
by
VISA in
2013
for
having
best
in
class
Fraud
Management.
Manish is the Chairman of Industry Forum for Fraud Prevention (IPCRC -North India)
33
and is Guest Speaker/Faculty for Fraud Conferences and Police Training Academies ,He
also has the distinction of having worked for sales of products like Auto Loans, Personal
Loans, Automobiles, Consumer durable and various financial products. He has managed
wing to wing sourcing and approval processes for various retail assets therefore has a 360
degree view of challenges faced by the sales team and the fraud control teams in a
competitive environment.
He is a valuable asset for us on our way towards achieving operational efficiency and
minimizing any potential losses.
Milan Urbasek
Chief Roll Out Officer
Milan has been working with the Home Credit Group for over
four years and currently leads the Roll Out team. A seasoned
professional, he worked, as Manager of Business Applications
unit and later as Director of Quality Management at Home Credit Bank in Kazakhstan .
During his career with Home Credit, Milan has been responsible for project Management,
Process Management, development and support of customized SW. Before joining Home
Credit, Milan had experience of 9 years with organizations like Adastra s.r.o, and
Aquasoft spol. s.r.o. He is a trained Six Sigma expert and holds Ph.D. Degree in
Informatics from Technical University, Berlin, Germany.
Petr Jirat
Chief Risk Officer
Petr has joined Home Credit in 2013 as Chief Risk Officer. In his
10 years of track record, he has done fraud management and risk
34
35
Martina Kadebkov
Chief Quality Management Officer
Martina has over a decade of experience in project management,
Business Process management and strategy. With the Home Credit
Group for over a year, Martina heads the Quality Management
team where she leads projects that aim to make business processes more efficient and
effective. Prior to Home Credit, Martina worked as a Business Consultant with Greyson
Consulting as well as with GE Money Bank in the Czech Republic. She holds a Master's
Degree from the University of Economics, Prague, Czech Republic.
Tom Paukner
Chief IT Officer
With more than 14 years' of experience in Data Centre
Management, Risk management, Facility Management, GSM and
ICT systems migrations, integration, space diversity solution.
Tomas leads the Information Technology team at Home Credit India. Prior to Home
Credit, he worked at GTS Central Europe, Home Credit China and Vodafone. Tomas
holds a Diploma in Power Engineering from Czech Technical University Prague, Czech
Republic.
36
General Terms and Conditions of Loan from Home Credit India Finance Private
Limited
38
Loans are available in-store at the time of purchase: Just look for the Home Credit
logo
Fast and easy processing with approval received on the spot (in certain
cases): You can leave the store with your purchase, then and there
Affordable advance EMIs and monthly payments: Flexible payment options and
term length to suit your budget
Clear terms and conditions: All terms and conditions, including fees and
penalties, are clearly explained at the time of submitting loan application. There
are no hidden fees/charges.
Be an Indian National
Reside in the same business area in which the loan is being applied
Have two pieces of valid documentation to prove your identity and current
address
Documentation requirements:
At least two documents are required. If a single document can prove both, identity and
address, then a secondary identity document is needed for a successful application. Proof
of identity and address must be issued by any authority under Government of India in the
applicant's name and must not be expired.
40
41
LOAN PARAMETERS
CONSUMER DURABLE LOAN
Mobile
Laptop
9,000-60,000 INR
Home appliance
6,000-80,000 INR
Min & max term
Mobile
9-15 months
Laptop
9-24 months
Home appliance
9-24 months
Min. cash payment
Mobile
35%
Laptop
35%
Home appliance
25%
Origination fee
0% - 5% of loan amount
Monthly servicing fee
20,000-120,000 INR
9-36 months
Yes
25 %
0% - 4 % of loan amount
42
HOW IT WORKS
Home Credit offers "point-of-sales" services to customers in stores to enable them to buy
goods such as electronic items and mobile phones, without the need to search around for
financing.
A loan application is made in the store with minimum documentation and sent
immediately for approval. Approval is received on the spot enabling the customer to
leave the store with his or her new purchase, then and there. The customer repays the loan
on monthly basis directly to Home Credit.
For customers, the service is simple. The customer applies on the spot and gets the goods
very quickly.
The customer makes a credit application in the shop through Home Credit sales
agent/representative: there are simple document requirements, no credit card is
needed
43
... and Home Credit makes the payment for the item to the shop upon submitting
all the customer's contractual documents
The customer pays for the item by monthly instalments to Home Credit
44
COMPETITORS
Competition in consumer durable and auto loan sector increasing with time as many new
industry players emerging in market. Few of Home Credit India competitors given
below:
Bajaj Finance
SBI Loans
Capital First
HDFC Loans
45
CHAPTER III
46
LEARNING EXPERIENCE
The opportunity to work with the company given by the company officials was very
helpful to me. I got to meet many players in the marketing and sales field and discussed
business with them which helped me to improve my communication as well as marketing
skills.
Apart from this i was able to understand the real scenario of the market and how things
really work in the market. This made me taste the real flavors of working environment,
work pressures, target achievements and other necessary skills required to be a good
manager.
From this study I got to know the automobile sector from inside and also came to
know about the many industry players and competition amongst them.
I also got a firsthand experience of conducting marketing research and the issues
47
DATA ANALYSIS
1. Could newcomers in the Retail Industry create damaging competition for Pantaloon?
Yes
40%
No
60%
48
Interpretation: Most respondents dont think that Newcomers can create damaging
competition to the PANTALOONS.
49
2. Is there an equally powerful force as Pantaloon in the market who can muscle into our
territory?
Yes
60%
No
40%
Interpretation: Most respondent believe that there is other retail player which equally
powerful as the Pantaloon in market.
50
3. Are there other kinds of differentiators of other companies which could take away
Pantaloon top position in the market?
Yes
50%
No
50%
51
4. Does Pantaloon have any weaknesses compared to the competition in a key market
segment?
Yes
20%
No
80%
Interpretation: Most respondents think that Pantaloon has not any weakness compared
to competitors.
52
5. Is the market developing in ways that favour competitors more than Pantaloon?
Yes
30%
No
70%
Interpretation: Respondents dont think that developing market anyhow favoring to the
competitors.
53
6. Could Pantaloon customers possibly move away and take major sources of revenue
away to a competitor?
Yes
32%
No
68%
Interpretation: Respondents dont think that pantaloon customers will move away.
54
7. Is there a major area in the market where Pantaloon lags rather than leads?
Yes
44%
No
56%
Interpretation: Most of the Respondents dont think that Pantaloons lags rather than
lead.
55
40%
No
60%
Interpretation: Respondents dont think that any competitor has stronger hold on
Pantaloon Customers.
56
9.
20%
No
80%
Interpretation: Most of the respondents dont think that there is any environmental or
regulatory threat to Pantaloon.
57
10. Could unsuspected challenges arrive from outside the existing industry?
Yes
52%
No
48%
58
FINDINGS
There is other retail player which equally powerful as the Pantaloon in market.
Most of the Respondents dont think that Pantaloons lags rather than lead.
Respondents dont think that any competitor has stronger hold on Pantaloon
Customers.
Most of the respondents dont think that there is any environmental or regulatory
threat to Pantaloon.
59
CHAPTER IV
60
61
62
many lives. If we talk about only roads then many times the stock get damaged due to
bad condition of roads and it is very hard to transport breakable items like glass and
crockery items and in addition to this if drivers do not drive carefully then it also increase
the chances of damage.
Suggestions:
When stock comes from vendor to WH and during this journey if any stock is damaged
then it is totally the liability of vendor but we must see that the stock which we get in the
WH is good in condition so we must check the stock properly and if any damaged is
found in the stock we send it back to the vendor as soon as possible because if we inform
them late then vendor think that damages occurs in the WH. We instruct our vendors that
stock is packed properly.
4. Shortage due to unavailability of finding material in Warehouse:
When stock comes in the store it first entered in the SAP and a GRN is made and after
that every one in the company sees the stock level in the warehouse through SAP. Stores
raise STN after see the stock level in the warehouse through SAP but there is also a
problem because when WH get stock transfer order from stores then a pick list is made
and employee pick stock from the warehouse according to that list. Employee pick stock
according to the article code print on the pick list they just go in the respective section
and find the mentioned article code which print on
the bar code attached with article but sometimes employee does not find some articles
mentioned on pick list in warehouse. There are many reasons for this problem either
because article is not placed at its proper location during inwarding or due to wrong entry
63
in the SAP during inwarding and this creates shortage in stores because WH is not able to
meet the demand of store.
Suggestions:
To solve this problem first we must train our employee about the method according to
which we put the stock in the racks and also tell them where is the particular category is
placed and try that the employee who put the merchandise in any section in the WH is
responsible for picking merchandise from that section only. We must use Bin cards in the
WH as they are not used in many When Article No. is properly printed on the bar code
tags.
5. Damages in the Warehouse:
Warehouses are made because it is hard to for stores to carry much stock because stores
are located in areas of very high property rents and every Sq. ft. of land is very costly and
company try to maximize the usage of this area and it is very hard to transfer stock from
different vendors to different stores and that is the reason for develop warehouses and
storage is one of the main function of WH so better storage is very essential for WH but
damages are also happens in WH. When stock is unloaded from the vehicle then it is very
essential to unload the stock very carefully but due to mistakes of employee sometimes
stock get damaged due to poor handling. Other problem is with the storage because if the
stock is not store properly in the right place then damages also occurs like if put
something on glass items or if we stake the stock very high and during handling it stock
may fall and it may damage. Handling stock inside the store is also a tough job if proper
conveyors are not available in the WH then it is very hard to handle the stock carefully.
64
Suggestions:
For handling damages in the warehouse the fist important thing is that company must
provide proper conveyors to the WH. Other thing is that the breakable items must not be
put near to the aisles like sanitary items, glass items and gift items etc and heavy items
like furniture and consumer durable must put near to exit gate of WH. Proper instruction
are also given on how to handle different type of stock and inform our vendors that they
must print proper information about which type of stock is in any carton and in spite of
writing we use signs for instruction.
6. Damages due to improper packaging
If we want to transfer any thing from one place to another then first and foremost
thing that you require is proper packaging without which no product is safe. So while
transporting goods from vendor to WH or from WH to store proper packaging is must but
due to lack of knowledge about the packaging in employees there is always risk of
damage. Employees in the WH does not use proper material used for packaging like
thermocol, proper size of cartons and proper packed it with tape so because of this there
is more risk of damage in loosely packed items
Suggestions:
I see that many of the employees do not know how to packed the stock and they take
carton of any size and put the merchandise in it and in this way it is completely the
wastage of cartons and stock is also not properly packed, so we must train our employee
about how to pack the different type of stock so that they do not pack stock loosely and
use proper type of carton this also take less space and less risk of damage.
65
66
stock in stores. I see this in dare WH when there is no OC stamp in the WH and because
of this no out warding is done from the WH.
Suggestions:
Company must provide the proper documents, which are required for dispatch of stock
from WH, on time and instruct the WH that no stock should be dispatch without the
proper documentation.
OTHER RECOMMENDATIONS
1. In warehouse there must be clear distinction between the rows and some space is also
be there for easy handling of material.
2. A first in first out format is used to move stock out from the warehouse so that old
stock is not remaining in the warehouse.
3. Company instructs the vendors of Apparel category that they pack the shirts and
trousers in polycovers of better quality so that they are not comes out from the cover.
4. Vendors must see that bar codes are properly attached to the product because if bar
codes are not attached with product employees are not able to enter that item in SAP in
most of the cases.
5. If WH employee enter any article in SAP which is without bar code by see its article
code on other article of same type then he must put bar code on the product latter so that
same problem does not occur in the store.
6. WH must instruct employees that they open cartons of stock properly so that is used
again because most of the cartons get damaged employee do not open them properly.
67
68
then it is not a problem. In cases when any merchandise damage due to the mishandling
of costumer and even then they are not ready to pay for that then it also a loss.
Suggestions:
The possible solutions for this problem are that the employees pay attention during
placing merchandise in the shelves. They must see that no merchandise is put outside the
shelf; no merchandise is put here and there in the store. For handling the damages occurs
due to children store must take care that they put food stuffs at some height so that
children do not touch easily. Proper paging is also done in stores for prevent the children
from damaging the merchandise. If any merchandise damaged by customer then
salesperson try to convince the customer for paying the charges for that and if customer is
not ready for that then staff must not force them.
2. Shortage due to uncertainty in demand:
Uncertainty is the mother of inventory and father of stock out
Uncertainty is the most common reason of stock out because when store order for the
stock then they consider only the normal demand but in many cases the demand get
increased and the store is not capable in dealing with such situation so there is shortage
like in case of big days there is shortage of many items.
Suggestions:
Department managers must consider the past demand in case of special discount days.
Before placing the order DM not only consider only one week sell they must see the
demand of the last season also and see the offers of the competitors in that reason.
69
70
Other recommendations for store level shortages and damages that I like to provide
in this report are as follows:
1. Stock must be transferred to the shelves in time that is before afternoon so that
customers do not feel problem.
2. If there is shortage for any item then any other stock placed in that shelf or if some
merchandise is present in that shelf then we must put these items like that the shelf does
not look empty.
3. Before placing any merchandise in shelves responsible person must see that the
merchandise and if any offer with it is properly entered in the REM so that it do not
create any problem when customer comes for billing of that item because I see in many
cases that offers on the products are not entered properly in the REM and due to which
many times store is not able to provide that item to customer inspite of presence of that
product in the store.
4. The damaged stock from the store must send back to vendor in time and do not store it
in the store if vendor do no take it then destroy it after taking permission from the
concerned person and from the vendor.
5. Non salable items like hangers for clothes, polybags etc are also used properly and if
any hanger is blank then employees must take it out from the Gondola.
71
CHAPTER V
72
CONCLUSION
After doing this project in Pantaloon Retail I understand how exactly the work is done in
the supply chain but after observing many things I reach to the conclusion that there are
still many gaps in the supply chain of the company and we must try our best to fulfill
these gaps so that we provide better service to our customers and also reduce our
operating cost because we are in value retailing so only cost cutting provides us better
margins and to archive all this we have to work hard and make strong relation with our
vendors, logistics service provider and with our customers.
73
REFERENCES
REPORTS:
BOOKS:
WEBSITES:
http://www.homecredit.co.in/about-us/home-credit-india-at-a-glance.aspx
http://www.homecredit.co.in/about-us.aspx
https://www.equitymaster.com/research-it/sector-info/finance/Investment-Finance-SectorAnalysis-Report.asp
74
APPENDIX
QUESTIONNAIRE
Name of the Employee
:-
Department
:-
Designation
:-
:-
1.
B) No
2. Is there an equally powerful force as Pantaloon in the market who can muscle into our
territory?
A)Yes
B) No
3. Are there other kinds of differentiators of other companies which could take away
Pantaloon top position in the market?
A)Yes
B) No
4. Does Pantaloon have any weaknesses compared to the competition in a key market
segment?
A)Yes
B) No
5. Is the market developing in ways that favour competitors more than Pantaloon?
A)Yes
B) No
6. Could Pantaloon customers possibly move away and take major sources of revenue
away to a competitor?
A)Yes
B) No
75
7. Is there a major area in the market where Pantaloon lags rather than leads?
A)Yes
B) No
B) No
B) No
10. Could unsuspected challenges arrive from outside the existing industry?
A)Yes
B) No
76
77