A Cross-Category Analysis of

Shelf-Space Allocation,
Product Variety And Margins
By
Anuradha Gaikwad

Introduction
1.Retailing in India is one of the pillars of its
economy and accounts for 14 to 15 per cent of its
GDP.
2. India's retailing industry is essentially owner
manned small shops.
3. The opening of retail industry to global competition
is expected to spur a retail rush to India.
4. 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.

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

1. With the current proposed entry of FDI in

retail any type of research would be
helpful to the industry.
2. 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
1. To study the shelf space allocation for food items
in multi brand retail stores.
2. To find out the relationship (if any) between the
retail margin and the total shelf space allocation
for a product category.
3. To study the variety of brands stocked in a
specific category of product.
4. To understand the relationship between shelf
space allocation and brand variety.
5. 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
1. The entire project is subject to constraints
of time and money.
2. 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

1.Chi square test

2.Correlation
3.Cross tabs (using SPSS)

Quarterly plan of work and targets to

achieve
Sr No

Time period

Plan of Work

Status

First 3 Months

Literature review,
preparation of
questionnaire, interview
schedules

Completed

3-6 Months

6-10 Months

Data Collection & analysis In process. 75 % data

already collected. (all
data will be available
by 15th July.
Interpretation and final Will be completed by
October 2012.
report preparation.

Expenditure so far

Travelling Rs 500
Xeroxing of questionnaires Rs 900

THANK YOU