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A Study of Marketing Ystrategies Adopted by Vishal Mega Mart & V - Mart - 2
A Study of Marketing Ystrategies Adopted by Vishal Mega Mart & V - Mart - 2
(NMBA- 035)
ON
OF BUSINESS ADMINISTRATION
Programme: 2014-2016
SUBMITTED BY:
Kajal
Faculty of Management
Science
Certificate
This is to certify that Mr./Ms. KAJAL a regular student of MBA 2014 Batch has undergone
Summer Training in
on the topic of A
VISHAL MEGA
MART AND V MART AT BAREILLY for a period of 6 week commencing from .Date
8/06/2015 to Date......24/07/2015
This Summer Training Project Report embodies the facts and figure collected and interpreted by
him/her during the course of Training.
This Certificate is issued by the undersigned on the basis of the Summer Training Certificate of the
organization in which the student completed the Summer Training during above period.
Date:.
Place: Bareilly
DECLARATION
I confirm that the project work that is undertaken by me is an original
and authentic work done by me. This project is being submitted in
partial fulfillment for award of degree of MASTER OF BUSINESS
ADMINISTRATION from SRMSCET BAREILLY.
The content of this report is based on the information collected by me
during my tenure
ADOPTED BY
Kajal
MBA 3RDSemester
3
Roll no:
1401470008
Date
ACKNOWLEDGEMENT
This report which I have presented is not the result of my own labor alone.
There are dozens of supporting hands who helped me all through the
program. It doesn't go without thanking all of those who constantly keep me
on the move. I would like to give heartily thanks of Institute of
Management Studies Bareilly, who have give an opportunity to learn
something practical apart from books by including the in plant training in
our MBA programme.
I express my gratitude thanks to our Head of the Department "Dr.
Anant Kumar Srivastava" who has supported me to complete this
project. My sincere thanks to Dr. Reeta Singh internal guide for guiding
me to work on this project.
I would like to express my sincere thanks & gratitude to external guide "Mr.
Vivek verma " (store manager in vishal mega mart) who has give a good
support to grab the external exposure and to complete a project in brand
factory. I would like to give my sincere token of thanks to all my faculties
relative and friends who have gathered me the wisdom of knowledge. This
work is dedicated to my parents who have support me throughout my
student life..
Kajal
MBA 3rd semester
Roll
no: 1401470008
Date..
EXECUTIVE SUMMARY
Marketing theory and practice has become more and more customer
Centered, and managers have increased their emphasis on long-term client
Relationships because loyalty, stronger relationships and therefore longer
Customer lifetimes likely are associated with a greater degree of crossBuying, a more significant level of transactions and therefore higher profits.
This makes Customer retention rates and customer share of category purchase as
Important metrics in customer relationship management and loyalty programs or
Frequency reward programs. Thus it is important to find out whether these
Loyalty programs are influencing the buying behavior.
Index Part A
Sr. No
Title
Page No.
7-9
Business Profile
10- 13
Functional Area
14-15
Organization Structure
16
17-25
Achievements/Recognitions
26-31
SWOT Analysis
38-42
Marketing Strategies
44-46
Part B
Sr. No
Title
Page No.
47-54
Research Design
55-56
57-76
77-79
Conclusion
80
Annexure
81-83
Bibliography
84
PART A
ORIGININTRODUCTION OF INDIAN RETAIL INDUSTRY
Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and
around 11 per cent of the employment. Retail industry in India is at the crossroads. It has
emerged as one of the most dynamic and fast paced industries with several players
entering the market. But because of the heavy initial investments required, break even is
difficult to achieve and many of these players have not tasted success so far. However, the
future is promising; the market is growing, government policies are becoming more
favorable and emerging technologies are facilitating operations. Retailing in India is
gradually inching its way toward becoming the next boom industry. The whole concept of
shopping has altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. Modern retail has entered India as seen in Sprawling
shopping centers, multi-storied malls and huge complexes offer shopping, entertainment
and food all under one roof.
1.
2.
3.
VALUE,
VARIETY &
VOLUME.
10
major cities and metros but tier-ii and tier-iii cities in India are also
on the focus.
MISSION STATEMENT:We shall deliver everything, everywhere, every time for every Consumer in the most profitable manner.
VISION STATEMANT:We share the vision and belief that our customers and stakeholders shall be served only by creating and
executing future scenarios in the consumption space leading to economic development.
1.
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
2.
We will be the trendsetters in evolving delivery formats, creating retail realty, making
consumption affordable for all customer segment- for classes and for masses.
3.
4.
5.
We shall ensure that our positive attitude, sincerity, humility and united determination
shall be the driving force to make us
11
COMPANY PROFILE
Founders of Vishal mega mart
MEGA MART.
Mr. amchandra Agarwal
Mrs. Uma Agarwal
Mr. Surendra Agarwal
1. Mr. Ram Chandra Agarwal, (Chairman & Managing
Director) He holds a bachelors degree in
commerce from St. Xaviers College, Kolkata.
2. Mrs. Uma Agarwal,( Executive Director)
She holds a bachelors degree in arts. Mrs. Agarwal
has more than 7 years of experience in the retail
industry. She has been associated with accounts
department of VRP.
Mr. Surendra Kumar Agarwal,( Executive Director)
13
THE FOUNDERS:-
VALUE INCREASE
PUNCHLINE:Vishal Retail Ltd, is one of the leading player in the Indian retail industry, is a lead the way in discount
retailing and is focused on tier II and III cities in the country. It has a strong presence in manufacturing
and retailing of readymade garments (apparels) retailing of non-apparels and a large variety of FMCG
products. The company has pan-India presence with 108 mid-sized hypermarket format stores as on April
28, 2008 covering about 2.3mn sq ft retail space area. Vishal is supported by strong manufacturing set-up
in Gurgaon, Dehradun and Manesar with a capacity of 5,000 garment pieces per day in each unit. It also
has 27 warehouses located in 8 key cities in India covering over 1.1mn sq ft area.
Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a
conglomerate encompassing 117 showrooms in 75 cities / 20 states. Indias first hyper-market has also
been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of
the single largest collection of goods and commodities sold under one roof in India. The group had a
turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra
Agarwal. The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal
2007. The turnover of the company for 09-10 was 1105 crore. The groups prime focus is on retailing.
The Vishal stores offer affordable family fashion at prices to suit every pocket.
EXECUTIVE SUMMARY
15
The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent of the
countrys GDP and around 11 per cent of the employment. As an MBA (Retail Management) student I
have done my summer internship in retail store Vishal mega mart, During my training I have done price
gap analysis between Vishal mega mart, VISHAL MEGA MART & V-Mart on non-food category. After
that Consumer perception about Vishal mega mart, ,. According to analysis I observe that customer of the
Vishal mega mart; is not fully satisfied with their services. Because of less variety, assortment, poor
services & unprofessional employees behavior.
16
Vishal Mega Mart is one of the fastest growing retail chain in the
country. We are in the expansion phase. The expansion commenced
with Sonipat store last year i.e. Nov'12, and since then we have
added 25 stores to the network.
Job Description
OPERATIONS
activities
of
associates
in
Functional Area: 9
merchandising
evenmerMerchandising
buying,
Merchandising
product
ordering,
Buying,
Receipt
confirmation,
transfer,
Inventory
Stock
Management,
Merchandise
even
Sales
Product ordering ,
Receipt,
Confirmation,
stock
Management
sales
Merchandise event
Comments:
JDAev
is
one
of the leading ERP systems
Merchandising
product
ordering,
Buying,
Receipt
confirmation,
transfer,
Inventory
Stock
Merchandise
Management,
Sales
used by many
retailers for multiple business
models in regards to retailing. The system is fully
integrated and
takes care of the supply chain
19
Functional Area:
Financial Accounting
Comments:
Completely integrated with their retail
ERP- MMS, allows them to get online
integrated
financials.
Functional Area:
.
Comments: Their system
supports Personnel
Management, Payroll Management, Employee
Benefits Management, Training Management and
Executive Information.
4. WMS software
Functional Area:
Distribution and Logistics.
20
Functional Area:
Zeppelin
Fizzy Babe
Kitaan Studio
Jasmine
Mens Trousers
21
Zero Degree
Kids Boys
Paranoia
Soil
Mens Shirts
Chlorine
Mens Shirts
Massa Bay
Fume
1.APPS
Zeppelin
Fizzy Babe
Kitaan Studio
Jasmine
Blues & Khakis
Zero Degree
Paranoia
Soil
Chlorine
Massa Bay
Bermudas
Fume
Viveza
Mavie
Men, s jeans
2.CDIT
Tandem
Sunflame
Usha
Philips
Bajaj
Kenstar
Maharaja
HUL
Prestige
Roti maker
Food processor
juice maker, dry iron
Grinder, dry iron
2 jar juicer mixer, grinder
juicer
2 jar juicer mixer
water filter
electronic rice cooker
3. FMCGBajaj
Wipro
Dabar
HUL
Himalaya
ITC
Godrej
Imlee tree
Gubbara
Coco cola
Mohini
face washg
hand wash
hair oil, honey
Wim, domex, surf exel
scrubs, face wash
mangladeep
good night
fruit jam
aloo bhujiya
orange, uncle chipps,, lays
papad
23
24
FOODMART
Beverage
Cooked Indian
Cooked Chinese
Drinks
Fruits & Vegetables
FOOTWARE
Boys
Girls
Shoes
Slippers
Sandals
Sandals
Ladies
Mens
Shoes
Shoes
Slippers
Slippers
HOUSEHOLD
Acrylic Ware
Dinner Set
Glass Ware
Home Aids
Floor Wiper
Sanitary Brush
Cup
General Plastic Goods
Coffee Mug
Copper
Jug
Thermo Ware
Pressure Cooker
Cooker
Pressure Pan
Tiffin
Electrical App.
Chopper
Steel
Cake Server
Porcelain
Non Stick
Handi
Dosa Tawa
Cup & Saucer
Bone China
Soup Set
25
Bucket
Lemon Set
Microwave Oven
Container
LADIES ACCESSORIES
Personal Items
Cap(LCA)
Socks(Las)
Dessert Set
etc.
Nail Polish
Necklace
Ring
Cosmetics
Lip Gloss
LIFESTYLE
Time Zone
Ladies Wrist Watch
Mens Wrist Watch
Mens Accessories
Belts
Wallets
Optical
Ladies Sun Glass
Mens Sun Glass
Electric & Electronics
Battery(ABT)
Calculator(EEC)
GARMENTS
MEN
Upper
Shirt Casual
Shirt Formal
Ethnic & Sports
Lower
Jeans(MP)
Cotton- Trouser(MPC)
Winter Wear
Night Suits
Suit(WMC)
T-Shirts
Blazer (WMB)
Dupatta
Windcheater
Sherwani
Jacket
26
LADIES
Upper
Lower
Kurta
Pants Jeans
Skirt Top
Capri
Ethnic
Winter Wear
Nighty
Jackets
Lancha
Stawl
Sharara
Blazer
Salwar Suit
Track Suit
BOYS
Lower Sets
Winter Wear
Jeans
Night Suit
Bermudas
Baba Suit
Blazer
Jacket
Upper
Shirt Formal
Ethnic
Kurta- Pyjama
27
T-Shirt
Sherwani
GIRLS
Lower
Hot Pant
Winter Wear
Hipster Set
Skirt
Jacket
Upper
Ethnic
Tops (GWT)
Frock (GFK)
Sharara
Lancha
INFANTS
Garments
Accessories
Hot Pant
Bed Sheet
Frock
under Garments
Baba Suit
Socks
Winter Wear
Sweater
28
Pull Over
HOME FURNISHING
Drawing Room
Bedroom
Door Mat
Bed Sheet
Carpet
Pillows
Curtains
Pillow Cover
Kitchen
Bathroom
Apron
Bath Mats
Kitchen Napkin
Outdoor games
Basket Ball
Cricket Bat
T.T. Bat
Football
Boxing Kit
Lawn Tennis
Swimming Costumes
Tennis Racket
Water Ball
Tennis Ball
Fitness Equip.
29
Personal Gym
STATIONERY
School
Office
Paper Mart
Exam Board
Office File
Diary
Clay
Punching Machine
File
Party Stuff
Balloons
Ribbons
Dolls
Musical Toys
Barbie Doll
Cycles
Non-Musical
Other Dolls
Scooters
Board Games
Infant Toys
Video Games
Wooden Blocks
Teether
T.V. Video
Puzzles
Swing Hand
Game
30
TRAVEL ACCESSORIES
Luggages
Portfolio Bags
Suitcase
Shoulder- Bags
Executive -Bag
Waist Pouch
School Bags
ACHIEVEMENTS
GROWTH OF RETAIL IN INDIA:Organized Share of retail sector is expected to increase to 8-9 percent in 2010-11
from 6 percent in 2008.
The Indian retailing market, it is a very fast growing sector. One reason that can be attributed to this rapid
entry of the foreign retail giants is that the Western Countries have reached a point of saturation in their
retail sector. Another reason as already mentioned earlier is the change in the tastes and preferences or the
psychographic of the consumers that is bent in their favour.
Although the retail sector in India contributes to about 10% in the GDP, it is the most underdeveloped
sector in terms of investments that are made in this sector. The organized sector is growing at 25-30 %
per annum.
31
32
Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating
the convergence of consumer tastes.
Introduction of dual income families also helps in the growth of retail sector.
Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
Technology-savvy/Youth population.
Effect of globalization
33
The first challenge facing the organized retail sector is the competition from unorganized sector.
Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low
margins.
Organized retail sector has to pay huge taxes, which is negligible for small retail business.
34
ORGANIZED RETAIL IN INDIA:The Indian organized retail industry is valued at about $300 billion and is expected to grow to $427
billion in 2010 and $637 billion in 2015. Retail Market India today is the second fastest growing
economy of the world after China. Indian economy will grow larger than Britain's by 2022, Japan by
2032 and by 2050 will become the second largest economy of the world after China. Indian market has
become the most lucrative market for retail investment in the world. Some of the factors which have
contributed to the growth of organized retail in India are: increase in the purchasing power of Indians,
rapid urbanization, increase in the number of working women, large number of working young
population.
Today people look for better quality product at cheap rate, better service, better ambience for shopping
and better shopping experience. Organized retail promises to provide all these. The Industry The various
formats of organized retail are: Hypermarkets: They store products of multiple brands comprising food
items and non-food items. Supermarkets: These are self service stores selling food and personal care
products. E.g.: Departmental stores: Retails branded goods in non-food categories. E.g.: Shoppers Stop.
Specialty Chains: These stores focus on a branded product or a product category. E.g.: Bata Convenience
stores: These are small self service outlet located in crowded urban area. Malls: A huge enclosures which
has different retail formats. e.g.: Nucleus Key players in organized retail are: Pantaloon Retail: It was
started by Kishore Biyani- India's largest retailer. The various formats of pantaloon retail are: Pantaloons,
Big Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: Food World, Music World,
Health & Glow, Spencer's Tata Retail (known as TRENT): Its various formats are: CromaWestsideStar
India Bazaar K Raheja Corp. Group: Shoppers' Stop, Hyper city, Crossword, InOrbit Mall Reliance
Retail Job Opportunities: Retail accounts for 8% employment in the country. In the next 2 years the
sector is set to provide 2.5 lakh job opportunities.
35
36
37
COMPANY PROFILE
A company named varin commercial Pvt. Ltd. Was started on oct-2002 at new Delhi by
two person Mr. lalit Agrawal and Mr. Hemant Agrawal they both are the director of the
company. Head office od this company is situated at new-Delhi. At present in Delhi they
have three stores which as follows
H.O.:
Mayapuri Industrial Area,
Gate No. 1, Phase-II,
New Delhi-64.
Show Rooms:
Bunglow road, Kamla Nagar, New Delhi.
Lajpat Nagar, New Delhi.
Pitum Pura, New Delhi.
Total handling is done by Delhi based office. They had started with only one show room
at Delhi and by the passing of time they were thinking of expansion and had established a
show-room at Ahmedabad that is in Gujarat on 5th oct. 2003 with the store name of VMART at
Broadway business centre,
Law garden corner,
Ahmedabad-Gujarat.
38
The Handling of this region was taken care by Mr. Hament Agrawal. During very short
span of time they had started a new show room in Ahmedabad itself on 25th dec. 2003. at
Fun-Republic,
Sarkhej Gandhinagar Highway,
Nr. ISCON temple,
Ahmedabad.
Recently they had also started one new show room at Rajkot In saurastra in collaboration
with Adani B2C India Limited on 28th Feb.
The management hierarchy followed by this company is as follows
The Director
Manager
Floor In charge
Cashier
Staff-Member
39
For the time period from Oct 2002 to as on today they had touch the turn over near about
12-15 Cr. And had open five new branches. It is a big achievement isnt it. The purchasing
system is totally centralized from Delhi and they are also purchasing locally to fulfill the
local requirement as per the region. The vision of this is to reach at each state by opening
atleast one outlet of V-MART. They mention in their future plan is to follow their slogan
SABSE SASTA SABSE ACHHA and also to satisfy their customer with high level of
customer delight.
In store there is a bar coding system is applicable to each and every item. They
have computerized system for maintaining their inventory. They are having two systems
for maintaining their accountings.
Gini System
Tally
So by the way they have totally six outlets which are
Three at Delhi
Two at Ahmedabad
One at Rajkot
In near future, they are planning to open their outlets again in Gujarat Region at Baroda
and Surat.
40
LIMITATION:Although it would have been nice to conduct a perfect research study, but this study is conducted under
certain limitations, which were faced while doing this research. So it is highly recommended to consider
these limitations while going through the project study.
Other Limitations are:4. Sample size is limited due to the limited period allocated for the survey.
5.
Getting accurate responses from the respondents due to their inherent problem is difficult. They may
be partial or refuse to cooperate.
6.
Respondents may not be interested to give the data.
7.
Sometime respondents are not taking interest in such type of surveys therefore there is chance that
they might be giving wrong information.
8.
The respondents are free from all barriers so he/she can give his/her opinion which may not be true
in many occasions.
41
9. The staff of the Vishal only provides/ communicates the merits of its products.
10. Secondary data is not available of Vishal mega mart,
42
SWOT ANALYSIS
S WO T ANALYS I S
Some of the strengths and weaknesses of Vishal Mega Mart, Model House, Most of the weaknesses &
strengths has been given by customers through to questionnaire..
(On
selected items).
The Vishal Mega Mart is situated at the good market place Model house.
It segments on middle and lower middle income groups.
2.
WEAKNESSES: Lack of parking space because parking area is not clean & there has been so many things kept on
SCANERS etc.
Layout of the Vishal mega mart - is quite average.
Lighting system in not good. Because many lights are not working in the stores.
In Vishal A.C. sound is very noisily inside the store. Which irritate the customers..
Music system is not good. Because there has been playing two-2 songs at the same time. This makes
noise in the store.
44
3.
OPPORTUNITIES:
Increasing penetration in the city by leveraging their supply chain, distribution and logistics network
Emphasis on Backward Integration.
Expansion of FMCG.
Increasing customer satisfaction and our base of loyal customers
Continue to upgrade information technology systems and processes
Continue to train employees and seek entrepreneurship from employees.
To increase the customer satisfaction by providing different variety of products.
Z-line (Manufacturing unit of Vishal) if we create the brand image of it. It will get additional sales
in the future.
Coming era is of knowledge and information if we sell our manufacturing unit product through
internet so we can create its brand image + additional sales in future.
There is a boom of retail in future according to current scenario. If Vishal creates brand image of its
Z-line product, so it can give direct competition to the other branded products in future.
45
4.
THREATS:
KEY FINDINGS
Products availability in Vishal mega mart is not up to the mark. Especially in grocery section.
Noisy and unpleasant environment is irritates customer. Air conditioning is not so good.
Discounts and offers doing well in the store.
Product display and signage is average.
Quality in products is average.
Location of Vishal mega mart is good.
Parking facility in Vishal mega mart is not good.
46
48
49
50
Place
Vishal Mega Mart stores are located in 110 cities with more than
180 outlets.
VishalMegaMart has presence in almost all the major Indian cities.
They are aggressive on their expansion plans. VRPL intend to
increase their penetration in the country by setting up new stores
in cities where they already have presence, as also entering into
new areas in the country. In particular, they intend to focus on
expansion in Tier II and Tier III cities. VRPLtarget locations with
good infrastructural facilities such as easy accessibility, provision
for water, electricity, parking, security and other basic amenities.
Promotion
51
promotion
Promotion
Advertising has played
Process
Process
VMM adopted the business model as shown in (Figure-9) to
run their activities smoothly.
This process includes four steps as follows: Manufacturing
Capacity;
Strong
Logistics; Products; Retailing The goods'
dispatch and purchasing area has certain salient features which
include: --Multiple counters with trolleys to carry the items
purchased.-Proper display / posters of the place like (Kids Wear,
Grocery, and Stationary etc.).-Home delivery counters to be
53
54
55
1. Price-off offer:
Under this offer, products are sold at a price lower
than the original price. This type of scheme is
designed to boost up sales in off-season and
sometimes while introducing a new product in the
market.
Example:
Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs.
399/- (MRP: Rs.399/T shirt).
Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs.
499/- (MRP: Rs.499/T-shirt).
Buy 3 men round neck T-shirts for Rs. 399/- (MRP:
Rs.199/T-shirt).
Buy 2 men V neck T-shirts at Rs. 499/- and 1 Tshirt for Rs. 299/- (MRP: Rs. 299/T-shirt).
Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/Tshirt).
Buy 1 woman top and get Rs. 100/- off on the
bottoms.
56
2. Discounts:
Under this, the products are sold at a discounted
price with percentage discounts on the original
price. This type of scheme is designed to boost up
sales in off-season.
Example:
30% off on all
trousers.
the
57
5. Festival offers:
Vishal Mega Mart have come up with festive offer
during Diwali and Christmas by giving away gifts for
purchases that are made at the store for cheaper
price. If you shop for Rs. 4500 you get a
Trolley bag worth Rs. 1299 for Rs. 149 only. If you
shop for Rs. 2400 and above you get a lemon set,
which is said to be imported, worth Rs. 649 for Rs.
99 only.
6. New Year offers:
Vishal Mega Mart offers gifts for purchases that are
make at the store during the New Year for cheaper
price. If you shop for Rs. 3500 you get a Imported
Designer Glass Set for Rs. 249 only.
If you shop for Rs. 2500, you get a 3 nights and 4
days holiday package for a couple on an
International cruise.
.7. Discount Coupons:
58
are
6. Todays Price:- Everyday a chosen product is being sold at lower than usual
price.
PART -B
ABOUT RETAILING
1. What is Retail?
The word retail is, in fact, derived from the French word RETAILER, which means
to cut off a piece or break bulk. A retailer may be defined as a dealer or trader who sells
goods in small quantities or one who repeats or relates. Retailing can hence, be
61
considered as the last stage in the movement of goods and or services to the consumers.
put simply, any firm that sells products to the final consumer is performing the function of
retailing .it thus consists of all the activities involved in the marketing of goods and
services directly to the consumers, for their personal, family or household use.
The past century has been witness to many changes occurring in our everyday
world. Industrial and technological growth has made a significant impact on our lives as
consumers. One such industry, which has made a phenomenal impact on our daily lives, is
retail. This industry touches our lives as end consumers, by providing us with the products
or services that we need.
Almost everything we use in our daily lives including the feed we eat, the clothes
we wear, and the things we need for our homes or for ourselves, are bought from retail
stores. Goods are manufactured all over the world but are ultimately sold to us through
these retail stores.
India has already proven its mettle as superpower in the arena of information
technology. The retail industry offers to bloom to the same level if conductive
environment and support is provided it. Indias one billion populations make the country
the second largest in the world in terms of population which is the very basis for
successful organized retailing. We should take heart from the fact that most of the worlds
successful retail stories in the developed as well as developing countries have shaped up in
small towns and villages.
Retailing is a green pasture not just for individuals or companies but also comes
with job opportunities in all aspects of the operations. Professionalisms in retail while still
in its infancy does show some promising future for those keen to make a career in this
fascinating world.
2. What is Retailing?
62
Retailing involves
-
Retailing differs from marketing in the sense that refers to only those activities, which
are related to marketing goods and/or services to final consumers for personal, family
or household use.
Whatever the form of retailing, a retail marketing strategy defines the execution of the
marketing process and facilitation of customer satisfaction. This retail marketing
strategy involves selecting a retail target market (i.e. the carefully/exactly identified
group of final consumer that a retailer sees to satisfy) and then implementing the
corresponding retail marketing mix (i.e. a combination of product, price, promotion
and distribution strategies that will satisfy the retail target market). The table depicts
consumer service as the crux of the whole activity.
64
Product Branding
Price
Packaging
Cost of Goods
Product Design
Business
Assortment
Expenses
65
Services
Gross Margin
Profit
Promotion
Distribution
Advertising
Logistics
Personal Selling
Store Location
Sales Promotion
Site Evaluation
Public Relation
Transportation
Visual Merchandising
Storage of Goods
The implementation of such a retail strategy mix benefits consumer and producers and
yields economic utility. The same has been explained in detail in Annexure-1.
3. RETAILING IN INDIA
RETAIL SALES
The retail market in India is estimated to be worth around USD 180 billion. It is
Indias largest source of employment in the country after agriculture, employing more than
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20 million people. The retail industry in India is largely unorganized with small and
individually owned businesses accounting for more than 98% of total retail sales.
There are nearly 12 million retail outlets in India, with a majority of them located
in rural areas. Though India has one of the highest numbers of retail outlets as a
percentage of population in the world, the retail space at 2 sq .ft per capita is amongst the
lowest. There has been a growing shift towards organized retailing in India in recent years.
Recent years have seen the entry of several new players in the retail industry;
chains such as Westside, Shoppers Stop, Food world, Crossroads, Wills Lifestyle and
Lifestyle have been establishing themselves in the retail market. In addition several of the
existing players such as Nilgiris and Subhiksha, have been focusing on expanding their
operations. With per capita incomes rising and disposable income rising too, retail
industry is likely to witness high growth. Established retail brands, due to their image of
consistent quality and service, may be the most from these trends.
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OBJECTIVES
OBJECTIVES:-.
1.
2.
3.
4.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY:Research Methodology is a way to systematically solve the research problem. When we talk to research
methodology we not only talk of research methods but also consider the logic behind the method we use
in the context of our research results are capable of being evaluated either by researcher himself or by
other. The purpose of this section is to describe the methodology carried out to complete the work. The
methodology plays a dominant role in any research work. The effectiveness of any research work
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depends upon the correctness and effectiveness of the research methodology. This section deals with
research design used, data collection, methods used and sampling methods used.
MY RESEARCH DESIGN
I have chosen descriptive research design for my study because I am interested in knowing the consumer
perception about Vishal mega mart,. To accomplish the predefined objectives of the research, descriptive
research design is used to collect the require information from the sources.
TYPE OF RESEARCH
(DESCRIPTIVE RESEARCH) The main goal of this research is to describe the data and
characteristics about what is being studied. The idea behind this type of research is to study frequencies,
averages, and other statistical calculations. Although this research is highly accurate.
TYPE OF DATA
1.
PRIMARY DATA
The primary data is that which details we collect from the market and also used first time in the
research. So in this research we collect data very first time from customers which are totally fresh.
2.
Companies Broachers
Companies Website
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Internet.
DETAILS OF RESEARCH:-
METHOD USED
Data used:
Instrument used:
Sample size:
Data Analysis Tools:
Type Of survey:
SURVEY METHOD
Both Primary & Secondary
Structured Questionnaire
100
column, bar & area charts
Interview
71
DATA ANALYSIS
VIM
PANTEENE
TIDE
VISHAL
V.MART
RELIANCE FRESH
64
63.7
60
199
190
174
220
210
199
72
COLGATE (FRESH
ENERGY)
VATIKA
HEAD & SHOULDER
PRIL
5
6
7
66
55.4
53.9
85
85
70
129
120
120
72
72
64
Mean:The simple mathematical average of two or more numbers. Through to this calculation we can know the
average price gap between Vishal Mega Mart, , &V-mart, ,
DIFFERENCE
0.3
V-MART
X =
4.03
MEAN= Xn
MEAN=4.32= 2.015 ANS.
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ANAYSIS: This observation shows that VIM-BAR price gap is 2.015. VISHAL MEGA MART is selling Vim-Bar 60
Rs. This is cheapest rate as compare Vishal mega mart & VISHAL MEGA MART.
DIFFERENCE
9
V-MART
25
X = 34
TOTAL
MEAN= Xn
MEAN=342= 17 ANS.
ANALYSIS: This observation shows that Panteene Shampoo price gap is 17 Rs. But this is not good symbol for Vishal
mega mart because other stores selling same product cheapest price. Vishal mega mart selling Panteene
Shampoo 199 Rs., VISHAL MEGA MART 174
price difference between all stores. And bad thing is this Vishal is that store who is selling very costly as
compare other competitors.
DIFFERENCE
10
21
74
TOTAL
X = 31
MEAN= Xn
MEAN=312= 15.50 ANS.
ANALYSIS:This observation shows that TIDE (4kg) price gap is 15.50 Rs. This is also big defferecial price. And
there is also Vishal mega mart is costly store as compare others stores.
DIFFERENCE
0.6
2.1
X = 2.7
MEAN= Xn
MEAN=2.72= 1.35 ANS.
ANALYSIS:75
This observation shows that Colgate with fresh energy product price gap is 1.35 Rs. This is quite good
average as compare other stores.
DIFFERENCE
V-MART
0.00
15
X = 15
TOTAL
MEAN= Xn
MEAN=152= 7.50 ANS.
ANALYSIS:This observation shows that Vishal mega mart & V-Mart stores selling Vatika Shampoo at same price.
But VISHAL MEGA MART is giving 15 Rs less price as compare Vishal & V-Mart. But Vishal mega
mart & V-Mart are selling vatika shampoo with gulabari free so price gap is not a big deal. And Price gap
is 7.50.
DIFFERENCE
9
9
X = 18
76
MEAN= Xn
MEAN=182= 9 ANS.
ANALYSIS:This observation shows that price gap is 9 Rs. V-Mart & VISHAL MEGA MART are selling at same
price 120 Rs. But bad thing is this Vishal mega mart is selling at Rs. 139. Which is costly as compare
other stores..
DIFFERENCE
0.00
8
X = 8
MEAN= Xn
MEAN=82= 4 ANS.
ANALYSIS:This observation shows that price gap is 4 Rs. V-Mart & Vishal mega mart are selling at same price 72 Rs.
But bad thing is this VISHAL MEGA MART is selling at Rs. 64.
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1.
(a)
Once
24
Twice
30
Thrice
16
More
30
Total
100
ANALYSIS:The observation shows that 30 % of people out of 100 customers surveyed used to come in Vishal mega
mart on twice & more than four times which shows that local customer in Vishal mega mart used to come
so many times. Because many families used to come and purchase their home care products & so many
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things. And only 24 % & 16% prefer to go once & thrice time. Overall we can say that in Vishal mega
mart is a family store. Where they can get everything whatever they want to purchase.
2.
How much money do you usually spend on Vishal Mega Mart in a month?
(a)
0 to 2000
[ ]
[ ]
o to 2000
42
2000 to 5000
36
5000 to 8000
14
8
100
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ANALYSIS:42 % of people spend their money or mostly people used to spend their money (0 to 2000 Rs). And 36%
customers spend 2000 to 5000 Rs. In Vishal mega mart which shows that people mostly spend their
money up to 5000 Rs. 14% customer is there who spend 5000 to 8000 Rs. In Vishal Mega Mart store..and
8% customer who spend more than 8000 Rs in Vishal store.
.
3.
(a)
[ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify).
Alone
12
With Family
56
With Friends
28
Others
Total
4
100
ANALYSIS:The observation shows that 56 % of customer used to come with their family. And 28% customers are
there who comes with friends. And there are so less customer who used to come alone & with others
because its family store and young and one customer try to avoid coming in Vishal Mega Mart.
4.
(a)
Casual
[ ]
(b) Planed
[ ]
casual
40
planed
60
Total
100
ANALYSIS:The observation shows that 60 % of customer come with planning in vishal.Because its family store so
family make plan that when they have or should go for purchase in Vishal mega mart. And 40%
customers are there who comes casually.
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5.
What features you considers when you purchase in Vishal Mega Mart. please give the rank.
(A)
PRICE
GOOD
VERY GOOD
58
0
AVG.
38
POOR
VERY POOR
TOTAL
100
ANALYSIS:The observation shows that 58 % of customers think that price of Vishal mega mart is good & 38% think
that its average price. But bad thing is that according to survey there is not even one customer who give
very good rank for Vishal price as well as poor rank. But 4% customer is also there who give the rank
very poor. This shows that its price is not reasonable.
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(B)
GOOD
VERY GOOD
PRODUCT QUALITY
36
2
AVG.
58
POOR
VERY POOR
TOTAL
100
ANALYSIS:According to this analysis 58% customer think that its product quality is Average & 36% customer think
that quality is good. Maximum no. of customer feels that its product quality is nice as per the
requirement. 2% customers think that its product quality is very good as well as very poor. And 4% think
that its poor quality product. Overall survey shows that its Vishal mega mart has nice product quality.
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(C) VARIETY
GOOD
VERY GOOD
16
0
AVG.
60
POOR
22
VERY POOR
TOTAL
2
100
ANALYSIS:Observation shows that 60% of customers are there who think that in Vishal mega mart variety of the
product is Average & 22% customer think that variety is poor. 16% said that variety is good and 2%
customer is also there who think that variety is very poor. So according to this survey I can say that if
they wanted to increase their sale volume in future they need to maintain good variety of the product then
they can increase their sale.
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(D)
OFFER
GOOD
VERY GOOD
AVG.
POOR
VERY POOR
TOTAL
56
12
28
4
0
100
ANALYSIS:Observation shows that whatever offers Vishal mega mart offer which is good. That is why 56%
customers think that offer is quite good as compare other retail stores. and good thing is that there is not
even one respondent who give very poor rank for Vishal mega mart offers. And 28% respondent think
that its offers is Average.12% customer think that offer is very good & 4% think that poor. Overall I can
say that its good result of this question or survey.
6.
85
STAFF BEHAVIOR
GOOD
VERY GOOD
AVG.
POOR
VERY POOR
TOTAL
34
4
44
12
6
100
ANALYSIS:This observation is based upon Vishal mega mart employees. Its quite flabbergasted survey which show
that behavior of the employee is not up to the mark or not professional. That is why 44% of respondent
think that employees behavior is not professional. They are not well for their duty. 12% respondent think
that poor staff behavior & 6% respondent think that Vishal mega mart employees behavior in terms of
professional ( talking style with customer mainly in FMCG section) is very poor which is very bad for
organization image. But some of the employees are very good that is why 4% customer gives them very
good rank as compare other.
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(A)
Address
In Bareilly
92
Outside bareilly
Total
ANALYSIS:This observation show that many no. of customer used to come in Vishal mega mart is local customer.
92% customer used to come from Bareilly city. And 8% customer is hare they are not from local city.
(A)
Age
18-25
32
26-30
30
31-35
22
36-40
41-50
>50
Total
100
87
ANALYSIS:Observation shows that 32% & 30% customers are young population between 18-25 & 26-30 age group
who used to come in store approximately. 22% from 31-35 age group. 8% & 8% are 36-40 & 41-50 age
group. And there is no customer who is more than 50 years old. So I can say that very young customer
used to come in Vishal mega mart.. This is good for store.
(B)
Income
5000-10000
22
11000-20000
38
21000-30000
10
31000-40000
N.A.
26
Total
100
88
ANALYSIS:This observation shows us which category or class customers actually come in Vishal retail store.
According to the survey I can say that maximum lower middle class customer used to come in Vishal
retail store. 22% customers income is 5000-10000 Rs. 38% customers income is 11000-20000 Rs. And
10% customer income is 21000-30000 Rs. And 2-2% customer income is 31000-4000 Rs. & more than
40000 Rs. 26% customers is here who doesnt have any income like student & children etc.
(C)
QUALIFICATION
10th
10
12th
20
Graduate
44
P.G.
18
Diploma
89
other
Total
100
ANALYSIS:Basis of this observation we come to know that which kinds of customer actually come in store.
According to this survey we come to know that maximum no of customers is Graduate 44% who used to
come in Vishal. 18% is post graduate, 20% 12 th & 10% metrics pass customers. Overall we can say that
in Vishal mega mart maximum no. of customer used to come is literate. This is good for them. Because
they understand the organized retail concept.
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KEY FINDINGS-
LIMITATIONS
Sample size is limited due to the limited period allocated for the survey.
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Getting accurate response from the respondents due to their inherent problem
is difficult .
SUGGESTIONS:-
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Company need to spend a lot on advertising and promotion to create brand image of its product
(Z-LINE).
Making stalls in corporate melas like trade fair, maybe beneficial to create brand image of its
product
Need to provide additional offers and discounts as per customer requirements.
Need to include varieties of similar item.
Provide more discounts on FMCG.
Provide better customer service.
Maintained proper display to create impulse. (It is assumed that near about 70% sales comes from
impulse marketing and if proper display is not maintained impulse cannot be created).
Better if we provide filtered information about Vishal Mega Mart.
Customer facility should always be under watch.
Store should provide free home delivery facility.
Company should ensure that quality and quantity of the commodity is accurate.
Company should provide regular training to their staff and aware him with the modern technique of
CONCLUSION:After completing this research I come to know that Vishal Mega mart is ahead of Easy Day .and VISHAL
MEGA MART, & V-Mart Retail in terms of sales. Only Big Bazaar & Easy Day - is ahead of Vishal
Mega Mart because of its prime Location and higher product range. . But there are few areas where
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Vishal, malls needs amendments and these suggestions are mentioned in these malls. Advertising is an
important factor of getting sales promotion.
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ANNEXURES:
Once [ ]
2. How much money do you usually spend on Vishal Mega Mart in a month?
(a) 0 to 2000 [ ] (b) 2000 to 5000 [ ] (c) 5000 to 8000 [ ] (d) More than 8000 [ ]
3. With whom do you usually come with?
(a)Alone
[ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify).
(c) Globus
(d) Local Markets
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10) from which source of advertisement have you heard about Vishal mega mart
(a)Magazine TV
(b)Local newspaper Social networking/visual
(c)Relatives/friends Other
Q11) How much rating will you give to this store?
(a)Below Average
(b)Average
(c)Good
(d)Excellent
1.
What features you considers when you purchase in Vishal Mega Mart. please give the rank.
ATTRIBUTES
VERY GOOD
GOOD
AVERAGE
POOR
VERY POOR
PRICE
PRODUCT QUALITY
VARITY
OFFERS
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2.
VERY GOOD
3.
GOOD
AVERAGE
POOR
VERY POOR
4.
1.
Name: -
2.
Address: -
3.
Phone No.
4.
.
.
.
18-25
5.
26-30
31-35
36-40
41-50
>50
Income
5000-10000
6.
(a)
Qualification
10th [ ] (b) 12th [ ]
11000-20000
(c) Grad.
[ ]
21000-30000
31000-40000
> 41000
[ ] (f) Other
BIBILIOGRAPHY
REFERENCES
BOOKS REFERRED:
Retailing Management
Pradhan, Swapna
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ARTICLES REFERENCES
Knight Ridder Tribune Business News. Washington: Jul 29, 2009. pg. 1
Business line. Chennai: Jun 24, 2009. pg. 1
Knight Ridder Tribune Business News. Washington: Jul 21, 2010. pg. 1
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-itsgrowth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-
2.
opportunities7.asp
http://business.mapsofindia.com/india-retail-industry/indian-organized-retail-market.html
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