A Cross-Category Analysis of Shelf-Space Allocation, Product

A Cross-Category Analysis of Shelf-Space Allocation, Product Variety And Margins A Cross-Category Analysis of Shelf-Space Allocation, Product Variety And Margins By Anuradha Gaikwad Introduction Retailing in India is one of the pillars of its economy and accounts for 14 to 15 per cent of its GDP. India's retailing industry is essentially owner manned small shops. The opening of retail industry to global competition is expected to spur a retail rush to India. In 2010, larger format convenience stores and supermarkets accounted for about 4 per cent of the industry, and these were present only in large urban centres.  2 Origin of the research problem The idea of working on this research is a result of reading on merchandising of products and also product mix of the store Significance of the study With the current proposed entry of FDI in retail any type of research would be helpful to the industry. Also we offer a special elective on Retail Management, hence any insight into aspects of Retail management will be useful to both faculty and students. Objectives To study the shelf space allocation for food items in multi brand retail stores. To find out the relationship (if any) between the retail margin and the total shelf space allocation for a product category. To study the variety of brands stocked in a specific category of product. To understand the relationship between shelf space allocation and brand variety. To find out relationship between shelf space allocation and sales volume. Hypothesis There exists a correlation between shelf space allocation, brand variety and retail margins. Methodology Data Collection – Primary data collection – Actual measurement of shelf space allocation and brand variety. Questionnaire survey of consumer behavior with respect to food products. Interview schedules of store managers. Interview schedules of distributors in Sangli Secondary Data Collection – through research articles, journals books and reports. Study area – Sangli City. Method of data collection – non probability haphazard sampling. Limitations – The entire project is subject to constraints of time and money. Study in small multi brand retail stores in Sangli only. Details of Study Three stores – Bharti, Tarun Bharat & Dandekar. All within 1.5 km radius in city. Food items being studied – biscuits, tea, noodles, breakfast cereals, sauces and pickels. Shelf space, sales volume & margins collected. Around 550 consumers across the stores already surveyed. Statistical tools for analysis Chi square test Correlation Cross tabs (using SPSS) Quarterly plan of work and targets to achieve Sr No Time period Plan of Work Status 1 First 3 Months Literature review, preparation of questionnaire, interview schedules Completed 2 3-6 Months Data Collection & analysis In process. 75 % data already collected. (all data will be available by 15th July. 3 6-10 Months Interpretation and final report preparation. Will be completed by October 2012. Expenditure so far Travelling Rs 500 Xeroxing of questionnaires Rs 900 THANK YOU