SUMMER TRAINING REPORT
ON
WELSPUN RETAIL LTD.
OBSERVING AND ANALYSING THE CONSUMER BUYING DECISIONS
AND THE BUYING CENTRES INVOLVED WITH THE HOTELS &
CORPORATE OFFICES CLIENTS OF WELSPUN RETAIL LTD. IN
MUMBAI
Submitted in partial fulfilment of the requirements of
Master of Management Studies (MMS)
by
HUSSAIN SAYLAWALA
MMS (2009-11)
ROLL NO: 9148
Under the guidance of
Project Guide
Mr. Narayan Chokhani
Head-Institution, Hotels and CSD Sales
ORIENTAL INSTITUTE OF MANAGEMENT STUDIES
Plot No. 149, Sec. 12 VASHI,
Navi Mumbai- 400703
DECLARATION
I Hussain Saylawala pursuing MMS from Oriental Institute Of Management
Studies, Vashi- (Navi Mumbai) hereby declare that this project work entitled
“Observing and analysing the consumer buying decisions and the buying
centres involved with the Hotels and Corporate offices clients of WELSPUN
RETAIL LTD. in Mumbai.” is carried out for 42 days.
To the best of my knowledge & belief, it is an original piece of work and is the
sheer outcome of my own efforts under the vigilant guidance of my guides and
has not either in full or in part been submitted to any other institution for the
award of any other course.
HUSSAIN SAYLAWALA
MMS(09-11)
O.I.M
VASHI (NAVI Mumbai)
Date- 25 June’2010
ACKNOWLEDGEMENT
An exchange of ideas generates a new object to work in a better way. Apart
from the ability, labour and time devotion; guidance and co-operation are two
pillars for the success of a project. Whenever a person is helped or co-operated
by others, his heart is bound to pay gratitude to them.
A satiation and pleasure that accompany the successful completion of task
would be incomplete without the mention of the people who have made it
possible and whose consent guidance and encouragement served as a guiding
light for the completion of the study.
I would like to express my gratitude to my project guide Mr. Narayan Chokhani
(Head- Institution, Hotels and CSD sales) and his entire team for their
constant encouragement and guidance without the task would not have been
completed.
TABLE OF CONTENTS
Executive Summary
Industry study
Company History
Channels of Company
Clients of Company
Products
Competitors
Swot Analysis
Introduction of Project
Statement of problem
Objectives
Limitations
Findings and recommendations for Welhome store
Overview of Hotels and Institutions
Findings and recommendations for Institution and Hotel sales.
Conclusion
EXECUTIVE SUMMARY
As a part of my MMS program, I am doing my internship training at
WELSPUN RETAIL LTD., MUMBAI.
The study is about selling to institutions and hotels. Project mainly deals with
various strategies employed by Welspun Retail Ltd. in Institution and hotel
sales. It explains the various buying centers and buying decisions involved in
corporate and hotel sales. It is not only the theory, which will help in the
corporate world, but also how things happen practically. Here there is an
opportunity to learn how the things happen practically. Every day the various
activities happening in the department are observed and understood carefully.
My work in that organization mainly consists of mapping the market for
institution and hotel sales. It also included visiting various clients.
This project also includes research done for repositioning of Welhome. Survey
was done from customers to know about their views on Welhome.
COMPANY STUDY
RETAIL INDUSTRY
Comprising of organized and unorganized sectors, India retail industry is one of the fastest
growing industries in India, especially over the last few years. Though initially, the retail
industry in India was mostly unorganized, however with the change of tastes and preferences
of the consumers, the industry is getting more popular these days and getting organized as
well.
RETAILING FORMATS IN INDIA
Malls- The largest form of organized retailing today. Located mainly in metro cities,
in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above.
They lend an ideal shopping experience with an amalgamation of product, service and
entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd,
Pantaloon.
Department Stores- Departmental Stores are expected to take over the apparel
business from exclusive brand showrooms. Among these, the biggest success is K
Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large
stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes
called Stop
Speciality Stores- Chains such as the Bangalore based Kids Kemp, the Mumbai
books retailer Crossword, RPG's Music World and the Times Group's music chain
Planet M, are focusing on specific market segments and have established themselves
strongly in their sectors.
Hypermarkets/Supermarkets- Large self service outlets, catering to varied shopper
needs are termed as Supermarkets. These are located in or near residential high
streets. These stores today contribute to 30% of all food & grocery organized retail
sales. Super Markets can further be classified in to mini supermarkets typically 1,000
sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft.
having a strong focus on food & grocery and personal sales.
Discount Stores- As the name suggests, discount stores or factory outlets, offer
discounts on the MRP through selling in bulk reaching economies of scale or excess
stock left over at the season. The product category can range from a variety of
perishable/ non perishable goods.
Convenience Stores- These are relatively small stores 400-2,000 sq. feet located near
residential areas. They stock a limited range of high-turnover convenience products
and are usually open for extended periods during the day, seven days a week. Prices
are slightly higher due to the convenience premium.
Department Stores- Large stores ranging from 20000-50000 sq. ft, catering to a
variety of consumer needs. Further classified into localized departments such as
clothing, toys, home, groceries, etc.
MBO’S- Multi Brand outlets, also known as Category Killers, offer several brands
across a single product category. These usually do well in busy market places and
Metros.
RECENT TRENDS
 Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
 India is rated the fifth most attractive emerging retail market: a potential goldmine.
 Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
 As per a report by KPMG the annual growth of department stores is estimated at 24%
 Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
WELSPUN RETAIL LTD.
Welspun Retail Limited is India’s largest specialty retailer in the Home furnishing segment. It
is an integral part of the US $2000 million Welspun Group. Customer convenience and
satisfaction is the driving force behind all their endeavours. Hence, they have modeled
themselves as a one-stop solution offering a wide range of world-class products in Bed, Bath,
Kitchen, Dining and Living furnishing segments, at extremely affordable prices. They have
an internationally-acclaimed team of designers who ideate, innovate and create trendsetting
superior quality furnishing solutions that lend each Home a designer look.
Welspun flagship brands are:
 Spaces - Home & Beyond – A Lifestyle brand that caters to the demands of their
high-end customers.
 Welhome – A brand that provides value-products to meet the ever-evolving needs of
our customers at large.
They aspire to be a Global player of repute by delighting their customers in India and across
the world with premium home furnishing solutions at competitive prices.
The multi- disciplinary design studio; namely CAD designers, stylists, and graphic designers
at Welspun specialize in original design and styling ranging from the contemporary to
traditional ideas for bed, bath kitchen, living, dining and accessories. The young team hail
from the country's leading art and design institutions, rich in experience as they work closely
with the International offices in the U.S.A and U.K. The unique and customer- centric
developments encompass cutting- edge prints, wovens and embellishments coupled with fine
styling to hone every idea for the Spaces Home and Beyond and WELHOME Brand.
The studio offer turn key solutions from trend ideation, concept generation, product
development, styling, communication and presentation.
The spirit and fervour coupled with a constant endeavor to maintain high design standards
and professional ethics makes us the country's leading design studio; with aspirations to make
a mark on the globe.
•
Global player with presence in 32 Countries in Textile & 50 countries including Steel
•
Among the Top 3 home textile companies in the world & Largest in Asia
•
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Award winning product innovation
•
In-depth knowledge of consumer behaviors and preferences
•
Industry leader in product quality and customer service
Presence in all major Retail Giants eg. Bloomingdale’s, Macy’s, Bed Bath & Beyond,
Kohl’s, JC Penney, Target, Sears, Kmart, Wal-Mart, Costco, Sam’s, Home Outfitters,
The Bay and Liverpool
•
Licensed brands include Nautica, Waverly, Amy Butler
•
154 Company Stores in 90 Indian Cities
•
18,500+ skilled global workforce
•
Other divisions include steel pipe, real estate, polyester, and organic farming
VISION OF THE COMPANY
We aim to emerge as a global leader preferred by every home serve…with passion
grow…@speed innovate…with quality excel…with ethics delighting all stakeholders...
We are…WELSPUN
MISSION
 We endeavor to reach the leadership position in each Segment / Sector of our Product
/ Service.
 We are committed to satisfy our customers by providing such Quality Product /
Service, which gives highest value for money.
 We believe that employees are our most important asset through which we can reach
the top in each category of our Product / Service. Therefore, we will emphasize on
their continuous improvement through upgradation of relevant knowledge and
training.
 We commit ourselves to continuous growth, so as to fulfill the aspirations of our
Customers, Employees and Shareholders.
CSR POLICY
Welspun is committed to conduct business in a socially responsible and ethical manner.
Sustaining mutually accountable and responsible synergies, we serve with passion to our
Customers, Shareholders, Employees & Society at large. To meet our commitment we seek to
respect the rule of law, adopt appropriate international standards and strictly follow our 6
Guiding Principles (The 6 ‘E’s):
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ENRICHMENT OF MIND
ENRICHMENT OF BODY
EDUCATION
EMPATHY
EMPOWERMENT OF WOMEN
ENVIRONMENT
In addition to our guiding principles, at Welspun, Ethical Business Conduct is strictly
followed and we practice the principles of accountability, honesty and integrity in all aspects
of our business. Besides this, we strictly comply with all the laws that regulate and apply to
the company, its systems and the conduct of its business.
At Welspun we work with governments and agencies (including the Universal Declaration of
Human Rights by the UN) to support and respect Human Rights within our sphere of
influence. We promote universal respect for observance of human rights and fundamental
freedom - particularly those of our employees, the communities within which we operate and
parties with whom we do business, without distinction as to ethnicity, origin, religion, gender,
language or disability.
At Welspun we believe that Local Stakeholder Engagement is extremely important and we
adhere to a collaborative, consultative approach in our communities by supporting innovative
programs in health, education, environment, as well as cultural and civic projects. We take
utmost care to integrate community investment considerations into decision-making and
business practices and assist in local capacity building to develop mutually beneficial
relationships with communities.
Last, but in no way the least, Employee Relations takes prime position at Welspun. We
ensure to provide maximum employment and economic opportunities in the communities
where we operate and we make sure that employees are treated fairly and with dignity and
consideration for their goals and aspirations and that diversity in the workplace is embraced.
Fair labour policies, while respecting the national and local laws of the countries and
communities where we operate are practiced. We are additionally committed to provide equal
opportunity in all aspects of employment and will not engage in or tolerate unlawful
workplace conduct, including discrimination, intimidation, or harassment.
CHANNELS OF WELSPUN RETAIL LTD.
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Hotels
Institutions
CSD
Key Accounts(Shoppers stop, Lifestyle, @home, Landmark)
Stores- Welhome and Spaces
Distributors
B2B
No. of employees- 5000 employees
WHAT MAKES WELSPUN DIFFERENT FROM OTHERS
PRODUCT INNOVATION: Patents and Processes
1. Hygro Cotton® hollow core yarn that dries better and launders better
2. Flexi-Fit® fitted sheets that fit mattresses from 10-20 Inches
3. MXL ® Wrinkle Free Finish That stays for the life of the sheet
4. Perma White™ Finish that ensures towels stay white after repeated launderings
5. Drylon™ micro fiber that resists bleach, benzyl peroxide, iodine, hair dye and
numerous household stains
6. Combed & 2 Ply Yarn: for Hospitality Industry for Heavy Laundry Wash.
HOTEL CLIENTS
PRODUCTS
QUILTS
COMFORTERS/
DUVETS
PILLOW
FILLERS
PILLOW
COVERS
BED
SPREADS
BED
BED
SHEETS
FACE
TOWELS
SHOWER
CURTAINS
HAND
TOWELS
BATH
TOWELS
BATH
RUGS
BATH
BATH
ROBES
RUGS
CARPETS
DIVAN
SETS
CURTAINS
CUSHIONS
LIVING
&DINING
SOFA SETS
PRODUCT LIST FOR HOTELS
Item
Towels- 550 /630 GSM
Bath Towels
Bath Sheet
Hand Towels
Hand Towels
Face Towels
Face Towels
Bath Mats
Bath Mats
Pool Towels- Blue & White StripePool Towels- Blue & White Stripe
Pool Towels
Pool Towels- Blue & White Stripe
Bath Robes- Non Sheared
Bath Robes- Non Sheared
Bath Robes- Sheared
Bath Robes- Waffle
Bath Rugs
200 TC percale- Bed Linen
300 TC percale/satin - Bed Linen
350TC Satin Stripe- 1 cm- Bed Linen
Poly Fibre Filled Pillows
Duvet ( quilts)- Queen
Duvet ( quilts)- King
Size (
cm)
76 x
152
91 x
183
91 x
183
41 x 76
41 x 64
30 x 30
30 x 30
51 x 76
53 x 91
91 x
183
91 x
183
91 x
183
91 x
183
L/M/XL
L/M/XL
L/M/XL
L/M/XL
50 x 80
285
285
285
50 x 76
229 x
274
269 x
274
Fabric
Quality
GSM
Colour
2 Ply Pile
550
White
2 Ply Pile
550
White
2
2
2
2
2
2
2
Pile
Pile
Pile
Pile
Pile
Pile
Pile
630
550
573
550
630
900
860
White
White
White
White
White
White
White
2 Ply Pile
450
Blue/White
2 Ply Pile
550
2 Ply Pile
450
Blue/White
Yellow
/White
Yellow
/White
White
White
White
White
White
White
White
White
White
Ply
Ply
Ply
Ply
Ply
Ply
Ply
2
2
2
2
2
Ply Pile
Ply Pile
Ply Pile
Ply Pile
Ply Pile
Tufted
40s combed
60s combed
60s combed
Poly fill
Poly fill
Poly fill
550
380
420
500
250
1900
200 TC
300 TC
300 TC
200 TC
200/250
GSM
200/250
GSM
White
White
COMPETITORS
Key players in the Indian industry are:
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Bombay Dyeing
Portico
Rosebys
Marc
Trident
Apart from these, competition also comes from many unorganised suppliers.
Many alternatives in terms of substitutes are also present in case of institutions, as they can
buy anything. Institutions do bulk buying for gifting and promotions. So, they have many
substitutes available with them.
SWOT ANALYSIS
STRENGTHS
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Own manufacturing capabilities.
Strong reputation
Strong brand name
Good Quality
Good practices(Visits of clients done by head of the hotel and Institutions with sales
persons.
WEAKNESS
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Delivery Issues
High lead time
Less sales force
Wrong impression on clients due to high discounts available at retail outlet of the
company
 Priced higher as compared to other competitors
OPPORTUNITIES
 New business of same client in different cities of the India can be tapped
 New business (like any section/part customization of the hotel using BESPOKE
service) can be explored with the goodwill earned & relations developed with client
THREATS
 Loss of clients due to delivery, pricing, discounting issues
 Decrease in sales and thus profit earned by the company
PROJECT REPORT
INTRODUCTION
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This Project report includes overview of Corporate Selling.
Research for repositioning of Welhome
Achievements of WELSPUN RETAIL LTD. in a short span of period.
Current strategies employed by Welspun Retail Ltd. in Institutions and Hotel sales.
RESEARCH AT WELSPUN INCLUDES THE FOLLOWING ACTIVITIES:
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Interaction with customers at Welhome store.
Interaction with clients of Welspun.
Consumer preference for Welspun products on the basis of observation.
Importance of visual media for Welhome store.
STATEMENT OF PROBLEM
Mapping the market for hotels and institutions. As there are many properties, it is important
to keep in contact with the existing properties as well as be updated for upcoming properties.
OBJECTIVES
1. To study the potential market for corporate and hotels.
2. Understanding the current strategies employed by WELSPUN RETAIL LTD. in
Institutions and Hotel sales.
3. To study the consumer buying decisions in corporate and hotels.
4. To study the buying centres involved in corporate and hotels.
5. To study the consumer preference for Welhome stores.
RESEARCH METHODOLOGY
To achieve the objective of the project there was some information which was to be gathered
and accordingly some decision has to be taken. Under this project, I have studied market of
MUMBAI.
RESEARCH DONE FOR REPOSITIONING OF WELHOME
 Survey was done in Welhome store at Hub Mall, Goregaon.
 Collected opinion of 76 customers about what they think of Welhome.
FINDINGS
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Majority of customers talk about affordability of the product.
People want good quality at affordable price.
People need more variety in products.
Customers are more attracted through discounts.
Visual media plays an important role in attracting customers.
Many times customers are not aware of the offers.
Original ideas for your home
Innovative solutions.
International quality
Unique solutions for comfort
and décor
International quality. Affordable
price
Simple, original, international
YET Affordable
Innovate. Educate. Decorate
OUTCOME OF RESEARCH
 39.47% perceive Welhome as a brand providing international quality at affordable
price.
 27.63% perceive it as simple, original, international, yet affordable
 More than 50% of customer talks about international quality and affordable price.
LIMITATIONS
Every project has some limitations. Even the researcher came across some limitations while
working on the project which made the analysis a little inappropriate at times. Some of the
basic limitations faced during the research are listed below:
 Only 76 customers were considered in the study.
 The research is based in MUMBAI only.
 At the time of research, few of the customers did not sincerely respond to me.
RECOMMENDATIONS
 Company should get away from its different discount policy on same product, should
decide on a single discount figure.
 Proper training should be provided to store staff.
 New designs should be launched frequently
 Change of front visual setting of all shops should be done in 15 or 20 days
 Proper advertising need to be done to reach customers. T.V and online advertising can
be done.
HOTELS AND INSTITUTIONS
OVERVIEW
•
Contributes around 15-20% to the total company earnings.
•
Hotels business caters to all hotels including 5 & 7 star, mostly in metro cities
•
Institutional business caters mostly to pharma & non-pharma companies, wherein
70% business comes from pharma companies & 30% from non-pharma companies
like fmcg, electronics etc
•
Most of the orders are on contractual basis and bulk buying is done by the client
BUYING CENTRES INVOLVED IN HOTELS
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Firstly, we contact purchase manager of the hotel.
If hotel has any requirement, then we take their specifications of the product.
We provide samples of our products to the purchase manager.
Then, housekeeping manager go through all of the samples.
After going through all samples, he select the product which they need.
Then , purchase manager negotiate with the company for price.
If price is suitable for him, he gives the purchase order to the company.
CHALLENGES FACED IN INSTITUTIONAL SALES
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Competition is too high. Competitors can be of any industry.
Targeting customers from various sectors like pharma, FMCG, consumer durable etc.
Inquires need to be generated from existing as well as new clients.
Deliveries should be made in time.
FINDINGS
1. Delivery time of our company is more than our competitors. Competitors are
providing 25-30 days time to deliver the product whereas we take atleast 45-50 days
to deliver.
2. During the survey, I found that many times deliveries are not made in time due to
which they can lose faith in us.
3. Pricing of the competitors are much lesser than our pricing due to which we lose big
orders.
4. Shortfall of Manpower to cater different sectors as well as the existing sector.
5. At many times, samples are not provided to customers in time.
6. Our product range is less in comparison with competitors.
7. More discount at Welhome store creates confusion in minds of clients.
8. Proper amount of promotion is not done by the company.
9. Personal relation also plays a vital role in corporate selling.
RECCOMENDATIONS
1.
2.
3.
4.
5.
6.
7.
8.
Delivery time need to be squeezed. We need to decrease our lead time.
Competitive rates are required to capture the market.
Dedicated sales person required for different sectors.
Samples should be provided in time to our customers.
We need to increase our product range.
Sales force should be given brochures of company and product description.
Gifts should be given to clients to improve the relation.
Proper amount of promotion should be done by the company.
CONCLUSION
Marketing is a very crucial activity in every business organization. Every product produced
within an industry has to be marketed otherwise it will remain as unsold stock, which will be
of no value. I have realized this fact after completion of my summer training project. Despite
of various difficulties and limitations faced during my summer training project on the topic
“OBSERVING AND ANALYSING THE CONSUMER BUYING DECISIONS AND
THE BUYING CENTRES INVOLVED WITH THE HOTELS & CORPORATE
OFFICES CLIENTS OF WELSPUN RETAIL LTD. IN MUMBAI”, I have tried my
level best to find out the most relevant information for the organization to complete the
assignment that was given to me. After completion of my summer training project I have
gained several experiences in the field of sales marketing. I have got the opportunity to meet
various people, which fluctuate in different situation and time. This summer training project
has given me the opportunity to have first experience in the corporate world.
Theoretical knowledge of a person remains dormant until it is used and tested in the practical
life. The training has given to me the chance to apply my theoretical knowledge that I have
acquired in my classroom to the real business world.. In spite of few limitations and
hindrance in the summer training project I found that the work was a challenge and fruitful. It
gives enough knowledge about the home textile market and the distribution process
undertaken by an organization. This summer training project has enabled my capability in
order to manage business effectively and in my career in future.