Project Report

On

“MARKETING STRATEGIES OF VISHAL MEGA MART”“MARKETING STRATEGIES OF VISHAL MEGA MART”

A PROJECT REPORT SUBMITTED IN PARTIAL FULLFILMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF SUBMITTED BY-

Mrs. Sanjana Mittal Jain Dushyant Kumar Sharma

Reg.No.-1208003893

M.B.A.(Marketing )IVth Sem

SIKKIM MANIPAL UNIVERSITY

Directorate of Diatance Education 5th Mile, Tadong, Sikkim-737102

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STUDENT DECLARATION

I hereby declare that the project titled " MARKETING STRATEGIES OF VISHAL MARKETING STRATEGIES OF VISHAL

MEGA MART”MEGA MART” is an original piece of research work carried out by me under

the guidance and supervision of Mr RAM SINGH at Vishal Mega Mart.

The information has been collected from genuine & authentic sources. The

work has been submitted in partial fulfillment of Master of Business

Administration of Sikkim Manipal University, India, is my original work and

not submitted for award of any other degree, diploma, fellowship, or other similar

titles project.

Place : Agra

Date:

Dushyant Kumar Sharma

Reg.No.-1208003893

M.B.A.(Marketing )IVth Sem

2

University study Center Certificate

This is to certify that the project report entitled “MARKETING STRATEGIESMARKETING STRATEGIES

OF VISHAL MEGA MART OF VISHAL MEGA MART “Submitted in partial fulfillment of the requirements

for the degree of Master of Business Administration of Sikkim Manipal University

of Health, Medical Technology Science, `DUSHYANT KUMAR SHARMA ' has

worked under my supervision of under guidance and that no part of this report has

been submitted for the award of her degree, Diploma, fellowship or other similar

titled or prize and work has been published in any journal of Magazine.

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Examiner's Certificate

The project report of DUSHYANT KUMAR SHARMA on " MARKETING MARKETING

STRATEGIES OF VISHAL MEGA MART”STRATEGIES OF VISHAL MEGA MART” is approved and is acceptable

quality and form.

Seal Examiner External Examiner

PREFACE

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A man can become perfect with a perfect knowledge and experience. As a student

of business management, we have studied many theories in the classroom but any

professional degree is incomplete without practical knowledge of concerned field.

And the same case is with management studies, management is incomplete without

knowing practical application of theories studied. I have experienced and

understood the practical importance of these theories on this training. More books

and theoretical knowledge can’t help you in any field whether it is management or

technical. Only thing can help you is practical knowledge.

This development day provides a golden opportunity to the students for getting a

perfect knowledge and experience.

I come to know how the management of company is actually being done. How

decisions are made? How people behave and decide what to purchase?

As a part of my learning in management field and requirement of MMM program,

I have been given an opportunity to grab practical knowledge in the area of

marketing and I had selected “VISHAL MEGAMART”. I have made my best

efforts to get knowledge and experience. During the day, I had collected necessary

information, and I present all the necessary information to understand well.

ACKNOWLEDEMENTS

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The project work is pursued as a part of Sikkim Manipal University I would

greatly rejoice to express Mrs. Sanjana Jain emphatically with profound sense of

gratitude and highest veneration, my sincere thanks to Pro- for giving me guidance

for this Project.

The project is undertaken as training at Vishal Mega-Mart. The project is done

under expert supervision and guidance of Mr. Ram Singh (Store Manager, Vishal

Mega-Mart). I am thankful for him.

I am short of words to express my respect & honor to my parents and family

members & friend who showered their blessings, affection, encouragement, &

inspiration, without which this report would not have been finalize.

I also express my sincere thanks to my friends who helped me differently in the

completion of my work.

Last but not least, I also thank all those people whom I met at Vishal Mega-Mart

during my internship and helped me to accomplish my assignments in the most

efficient and effective manner.

Dushyant Kumar Sharma

Reg.No.-1208003893

M.B.A.(Marketing )IVth Sem

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EXECUTIVE SUMMARY

“A comparative study of effectiveness of different promotional strategies

(schemes) with reference to vishal mega mart”

All this information has collected regarding the project through primary and

secondary data.

This report highlights on the understanding the marketing strategies of vishal

mega mart and their effect on sales of the products.

From the questionnaire & the data collected from net & other resources and find

market potential of big bazaar.

The limitation of this thesis is sample size. The sample size for this thesis is

only 100 respondents. The methodology adopted by me for this thesis is to conduct

a survey. I have prepared questionnaire for the survey. The objective of this thesis

is understood marketing strategies of vishal mega mart and its effect on the sales of

its services and products.

The finding of the thesis is that customer is interested in products and services

given by Vishal Mega Mart & give different type of promotional activity for the

effective market potential.

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ContentS.NO. CONTENTS PAGE

NO.

1. Preface 2

2. Acknowledgement 3

3. Declaration 4

4. Executive Summary 5

5. Chapter 1. Introduction 7

Objective of the Study 16

Scope of the Study 18

LITERATURE REVIEW 20

Importance of the study 23

Research Methodology 26

Company Profile

Vision 21

Marketing Strategy 25

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Analysis and Data collections 63

Swot Analysis

Questionnaire

Recommendation 78

Findings

Findings

Conclusion and Suggestion 81

Conclusion

Suggection

Annexure 85

Chapter 6. Bibliography 88

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Chapter:-1.

INTRODUCTION

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Introduction of Indian Retail Industries:

In the background of high consumerism and income of the urban consumers, in

recent year there are a number of companies have expressed their interest towards

retail sector outlets. As a result numbers of shopping malls have started their

operations in metro and urban areas. Pantaloon, big bazaar, Vishal Mega Mart,

Reliance Fresh are the best known examples of retail sector outlets in India.

Retailing is the interface between the producer and the individual consumer buying

for personal consumption. This excludes direct interface between the manufacturer

and institutional buyers such as the government and other bulk customers. A

retailer is one who stocks the producer’s goods and is involved in the act of selling

it to the individual consumer, at a margin of profit. As such, retailing is the last link

that connects the individual consumer with the manufacturing and distribution

chain. Some of the key features of retailing include:

Selling directly to customers with out having any intermediaries

Selling in smaller units / quantities, breaking the bulk

Present in neighborhood or in the location which is quite convenient to

the customers.

Very high in numbers

Recognized by their service levels

Fitting any size and or location

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It is assumed that due to the entry of a number of retail outlets in the urban and

semi urban areas, the mindset of the existing customers have undergone drastic

changes. Besides it is also reported that the traditional retailing such an age old

Grocery shops have directly faced competition with the organized retailing sector.

In some parts of the country, it is reported that the traditional retails are resisting

the entry of organized shopping malls. For instance the traditional retails of

Bhubaneswar with the active support of the consumers at large didn’t allow

reliance Fresh to start outlet initially.

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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.

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail

Report to be

around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent.

Retail

market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the

different

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types of retail industries present in India. Furthermore around 15 million retail

outlets help

India win the crown of having the highest retail outlet density in the world. The

contribution

of retail sector to GDP has been manifested below:

Country Retail Sector's share

in GDP (in %)

India 10

USA 10

China 8

Brazil 6

As can be clearly seen, retailing in India is superior to those of its contenders.

Retail sector is

a sunrise industry in India and the prospect for growth is simply huge. There are

many factors

that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy.

Some of

them can be listed as follows:

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Rise in the purchasing power of Indians-

The rise in the per capita income in the last few years has been magnificent. This

has led to the generation of insatiable wants of the upper and middle class. The

demand of new as well as second hand durables has risen throughout the country

thus providing the incentive for taking up retailing.

Favorable to farmers- retailing has helped in removing the middlemen and has

thus

enhanced the remuneration to farmers. This is a new revolution in the agricultural

sector in India and will go a long way in amending the condition of agriculture, a

major concern among policy makers.

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Use of credit- a typical Indian is most conversant with using credit cards than

carrying

money. These have led to a shift of the consumer base towards supermarkets and

make the payments in the form of credit.

Comfortable Atmosphere- a visit to a retail store appears to be more soothing for

the

generation-Y. People and kids prefer to shop in an air conditioned a tech savvy

manner. The retail industry is the second largest employer in India. It currently

employs about

7 percent of the total labor force in India. Finance Minister P. Chidambaram's

recent

statement “salaries ought not to be legislated” is a welcome move as most of the

organized retail is in private hands. However only about 4.6% of the total retail

trade

is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The

major

and minor players desperately need to work hard in this direction so that next time

the

figures look more decent. The government must also make an attempt to

ameliorate

the situation as political instability and infrastructure namely power and roads are

the

major roadblocks in the path of smooth functioning of the market.

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Components of Retail Sector

The major components of the retail sector are:

Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables,

Apparel,

Footwear and leather, Watches, Jewellery, and Health and Beauty

The anatomy of the retail market has shown that the clothing and textiles

constitutes 39 per

cent of the organised retail pie, followed by food and grocery, which accounts for

11 percent

of the total retail market.

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However, according to the survey conducted by KPMG for Federation of Indian

Chamber of

Commerce and Industry (FICCI), among these, the food and grocery is expected to

witness

the fastest growth followed by clothing as the second-fastest growing segment.

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CHAPTER -2

OBJECTIVE OF THE STUDY

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Objectives of the study

To understand the different marketing strategies being followed by

Vishal Mega Mart.

To learn their marketing mix.

Marketing help to define the business for the customer's interests, not your own. It

is the process of learning what customers want or need and determining how to

satisfy those wants or needs. It is also used to confirm whether the customer

reacted to a marketing program as expected. The benefits of market research

include:

Learning who your customers are and what they want.

Learning how to reach your customers and how frequently you should try to

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communicate with them.

Learning which advertising appeals are most effective and which ones get

no response.

Learning the relative success of different marketing strategies, thus

improving return on investment.

Learning how not to repeat your mistakes.

CHAPTER-3

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SCOPE OF THE STUDY

Scope of study

This project gave me great exposure to the customer’s perception to the marketing

strategies adopted by the Vishal mega mart because it includes the service offered

by them. The study also identifies the attitudes and preference of the consumers.

The study also focused on Media through which the product reaches the consumers

This project helped me in knowing the market practically.

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CHAPTER -4

LITEREATURE REVIEW

LITERATURE REVIEW

ABSTRACT (SUMMARY)An ET survey on the retail market shows that retail chains such as Big Bazaar and Vishal Mega Mart areOffering attractive schemes and selling products at cheaper rates. For instance a kg of bottled Maggitomato ketchup costs Rs 74 at Big Bazaar as against a maximum retail price of Rs 84, which a mom-andpopStore would charge. Also one can buy a two litre bottle of Sprite for Rs 38 at Vishal Mega Mart

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Instead of paying a market price of Rs 42 at a local store.

ARTICLES NO. 02VISHAL RETAIL TO EXPAND TO 5 CITIESBusiness line. Chennai: Jun 24, 2009. pg. 1ABSTRACT (SUMMARY)The company inaugurated its first mall in [Pune], its first in the western region. Mr Ramchandra Agarwal,Managing Director, said the company would expand to cities such as Chandigarh, Ghaziabad, Patiala,Surat and Meerut.Located at the KPCT Towers building at Fatima Nagar, the Vishal Mega Mart will give Pune anexperience of the latest in the world of fashion and trends.

ARTICLES NO. 02VISHAL RETAIL TO EXPAND TO 5 CITIESBusiness line. Chennai: Jun 24, 2009. pg. 1ABSTRACT (SUMMARY)The company inaugurated its first mall in [Pune], its first in the western region. Mr Ramchandra Agarwal,Managing Director, said the company would expand to cities such as Chandigarh, Ghaziabad, Patiala,Surat and Meerut.Located at the KPCT Towers building at Fatima Nagar, the Vishal Mega Mart will give Pune an

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experience of the latest in the world of fashion and trends.

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CHAPTER-5

IMPORTANCE OF THE STUDY

IMPORTANCE OF THE STUDY

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.

These limitations are as follows

1. LIMITATION OF DATA

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The statistical data regarding the city was not available to us on secondary

source of data and to generate such data on the primary source was a task,

which cannot be achieved in such a short time.

2. LIMITATION OF TIME

The limitation of time was another constraint in the study as the study had

to be conducted in few months therefore many aspects have been left

unexplored. Research period is not just much enough to know fully about

the strategies & consumers perception

3. INHIBITIONS OF THE RESPONDENTS

The respondents did not reply the question with precision as they were busy

with their own work or they were not interested in taking part in such a

research. Employees sometimes feel hesitated while telling about their view

about their marketing strategies.

4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA

The research has been conducted for the Vishal mega mart(Shastri Nagar

Garh Road,Meerut) but not all their retail outlet have been covered therefore

it has been mentioned that the research has been conducted in a limited area.

5. THE SAMPLE SIZE IS SMALL

The sample size taken for this thesis is small; it may not actually represent

the whole population. The data collected were totally depending on the

respondent’s views, perception, behavior, psychology related to particular

scheme which could base in nature

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These limitations were very common and yet we came across these with a

positive note and the subsequent chapters in this report shall explain the

rationality behind the structural compilation.    

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CHAPTER-5

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Definition of Research

The word research is derived from the Latin word meaning to know. It is a

systematic and a replicable process, which identifies and defines problems,

within specified boundaries. It employs well-designed method to collect the data

and analyses the results. It disseminates the findings to contribute to generalize

able knowledge. The characteristics of research presented below will be

examined in greater details later are:

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Systematic problem solving which identifies variables and tests

relationships between them,

Collecting, organizing and evaluating data.

Logical, so procedures can be duplicated or understood by others

Empirical, so decisions are based on data collected

Reductive, so it investigates a small sample which can be generalized to a

larger population

Replicable, so others may test the findings by repeating it.

Discovering new facts or verify and test old facts.

Developing new scientific tools, concepts and theories, this would

facilitate to take decision.

For the proper analysis of data simple statistical techniques such as percentage

were use. It helps in making more generalization from the data available. The data

which was collected from a sample of population was assumed to be representing

entire population was interest. Demographic factors like age, income and

educational background was used for the classification purpose.

2.1 Research Design:

It was important to collect detailed information on various aspects for

effective analysis.

Research design can be of three forms:

Descriptive Research: It is conducted to ascertain certain magnitudes and

to provide an accurate snapshot of some aspect of the market environment.

For example: Determining the size of the market, market share, availability

of distributors, sales analysis, studies of consumer attitude etc.

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Exploratory Research: This is used when one is seeking insight into the

general nature of a problem, the possible decision alternatives, and relevant

variables that need to be considered. Little prior knowledge is required.

Research methods are highly flexible, unstructured and qualitative. For

example: What new product should be developed, what should be the

positioning of our product, etc.

Causal Research: Causal studies are designed to determine whether one or

more variables cause or determine the value of other variables. It is an

evidence of relationships of variables. For example: Whether decrease in

price will lead to an increase in the sales of a product, or whether the

presence of a sales person will help in increasing the sales in a retail outlet,

etc.

These three types can be viewed as cumulative. The research design adopted

for project research is Causal Research.

Once the researcher has decided the ‘Research Design’, the next job is of

data collection. For data to be useful, our observation needs to be organized

so that we can get some patterns and come to logical conclusions.

Depending upon the sources utilized, whether the data has come from actual

observations or from records that are kept for normal purposes, statistical data can

be classified into two categories:

2.2 Primary Data

2.3 Secondary Data

2.2 Primary Data:

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It is one, which is collected by the investigator himself for the purpose of

specific inquiry or study. Such data is original in character and is generated by

surveys conducted by individuals or research institutions.

It can be obtained by:

Communication

Observation

Questionnaire

2.3 Secondary Data:

When an investigator uses the data, which has already been collected by

others such data is called secondary data. This data is primary for the agency that

collects it and becomes secondary data for someone else who uses this data for his

own purpose.

It can be obtained by:

Company’s web

Journals

Reports

Newspapers

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Government Publications

Publication of professional and research organization.

The research methodology involves the following major steps namely-

2.3.1 Defining data source

2.3.2 Research approach

2.3.1 Defining data source:

In the project, both primary and secondary data were used for the research

process. Secondary data are data that were collected for another purpose and

already exist somewhere. In this project the secondary data are collected from

internet, newspapers and text materials. This constitutes the chief material on

the basis of which research work is carried out.

Primary data are data freshly gathered for specific purpose or specific project

purpose. It is obtained by study specifically designed to fulfill the data of the

problem in hand. Primary data are original in character. Primary data was

collected in two ways: - Observation research and surveys.

2.3.2 Research Approach:

In the project primary data was collected through observation research,

surveys and secondary data from internet, books and text materials. In observation

research, fresh data was collected by observing the relevant parameter of research.

Basically secondary data was used for evaluating the performance of stock market.

2.4 Sample Design:

For carrying out any research or study on any subject it is very difficult to

cover even 10% of the total population. Therefore the sample size has to be

decided for a meaningful conclusion. For designing the sample size, it was thought

proper to cover a very small percentage of population in various age groups.

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The method used for sample technique was non probability convenience sampling

method. This method is used because it is known previously as to whether a

particular person will be asked to fill the questionnaire. Convenient sampling is

used because only those people will be asked to fill the questionnaires that were

easily accessible and available to the researcher.

Considering the constraints, it was decided to conduct the study based on sample

size of 200 people in specific age groups. Scientific method is not adopted in this

study because of financial constraints and also because of lack of time; also the

basic aim of doing the research is academic, hence most convenient way is selected

2.4.1 Sample Size:

I conducted approximately 200 samples during my research.

2.4.2 Sampling Method:

I used random sampling method for my research. Where, I have selected the

persons randomly for research work.

2.5 Method of data collection:

The next step is together the requisite data. There are two types of data collection

method – primary data and secondary data.

2.5.1 Instrument for data collection:

I have used the questionnaire method in sample survey. If one wishes to find what

people think or know, the logical procedure is to ask them. This has lead marketing

researchers to use the questionnaire technique for collecting data more than any

other method.

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In this method questionnaire were distributed to the respondents and they were

asked to answer the questions in the questionnaire. The questionnaires were

structured non-disguised questionnaire because the questions, which the

questionnaire contained, were arranged in a specific order besides every question

asked was logical for the study; no question can be termed as irrelevant.

The questionnaire, were non-disguised because the questionnaire were constructed

so that the objective is clear to the respondent. The respondents were aware of the

objective. They knew why they asked to fill the questionnaire.

2.7 Data-analysis techniques:

The study conducted is a conclusive descriptive statistical study; the researcher

comes to the decision which is precise and rational. The study is conclusive

because after doing the study the researcher comes to a conclusion regarding the

position of the brand in the minds of respondents of different firms groups. The

study is statistical because throughout the study all the similar samples are selected

and group together. All the similar responses are taken together as one and their

percentages are calculated.

Thus, this, conclusive descriptive statistical study is the best study for this purpose

as it provides the necessary information which is utilize to arrive at a concrete

decision.

COMPANY PROFILE

“Future is thinking beyond horizon” & in order to keep its pace with the modern

retail, Vishal Retail Limited is spreading its wings. Instead of resting on its laurels

the Group are busy identifying new avenues of growth by venturing in other

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formats like cash & carry, convenios as well as specialty stores and inspiring local

retailers to grow along with the big names. The group has tied up with HPCL to

open corner stores at their petrol pumps and in addition to the above Vishal has

come up with an institute to train manpower for the service industry.

As of December 1, 2010, it operates 172 retail stores, including two stores which

are operated by their franchisees. These 172 stores are spread over about

24,00,000square feet and are located in 24 states across India. In its efforts to

strengthen thier supply chain, it has set up seven regional distributions centres and

an apparel manufacturing plant.

Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in

Hyper Market stores with an average area of 25,000 to 30,000 sq. ft.

According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group

owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling

readymade garments. In tune with the pulse of the market, he envisioned a mega

store that would sell garments at prices none other could match. . The first big store

opened in Calcutta's Esplanade area in 1997, under the banner of Vishal Garments.

He was involved in all the aspects of the business: right from sourcing the

garments to interacting with customers. And this led to his greatest finding “The

Vishal Group.”

After identifying the immense market in fashion garment for the masses, He

moved to Delhi in 2001 and opened his first store in Delhi’s Rajouri

Garden by the name of Vishal Mega Mart (The jewel in Vishal Group’s crown)

and then there was no looking back for Mr. Ram Chandra Agarwal. At present, in

addition to garments, Vishal Mega Mart stores retail the entire range of household

products, FMCG and electronic goods. Vishal's prices are roughly 15 to 20 per

cent less than other mass market garment labels.

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Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that the

shopping habits of Indians are changing due to their growing disposable income,

higher aspirations, relative increase in the younger population, and the change in

attitudes towards shopping. The emphasis has changed from price consideration to

design, quality and trendy. Age is also a major factor that affects the spending

decisions of an individual. Consumer spending is an important factor that affects

the economic growth and development in a country. As a trend, consumer is more

educated. He has access to all reforms taking place through various arrays of

communication. He is becoming a “value shopper” everyday.

Keeping this in mind, the group is now looking for franchisees to join hands

with Vishal and grow under common banner. This partnership will help small

retailers to survive the onslaught of organized retail as it will enhance their

competitiveness. Small stores can avail of the benefits on account of the economies

of scale, a key advantage for big retailers.

As per the plans, Vishal Retail will completely take over the supply chain of

its franchisees and provide them with technology, new practices, visual

merchandising skill and special promotional schemes, besides its brand and

customer base.

Some of the Franchisee exclusive business categories are:

Mens Fashion

Ladies and Kids

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Footwear

Toys and Games

Home – General

Convenience (FMCG)

CDIT

Watches

Mobile

It follows the concept of value retail in India. In other words, their business

approach is to sell quality goods at reasonable prices by either manufacturing

themself or directly procuring from manufacturers (primarily from small and

medium size vendors and manufacturers). It endeavour to facilitate one-stop-shop

convenience for their customers and to cater to the needs of the entire family. It

believes this concept has helped them grow to thier current size within a short time

frame of their years. Mr. Ram Chandra Agarwal has been ranked as the 28th most

pitiful person in the Indian retail industry.

In order to reduce costs and take advantage of economies of scale it has embarked

on backward integration of their products. Thier apparel manufacturing plant is

located at Gurgaon, Haryana. For ensuring efficiency in supply chain, it has set up

seven regional distribution centres located around Kolkata, Thane (Maharashtra),

Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon

(Haryana) and Delhi. Further, it has focussed on developing a cost and time

efficient distribution and logistics network, which currently comprises seven

distribution centers and a fleet of trucks for transportation.

38

“Retailing is an engine for taking merchandise to the end-users. There is a

lot of opportunity in this sector for us since demand of the potential consumers are

not being met under the existing facilities. Therein lies the road to success.” says

Mr. R C Agarwal

Board of Directors:

Mr. Ram Chandra Agarwal, Chairman & Managing Director

He holds a bachelor’s degree in commerce from St. Xavier’s College,Kolkata.

Mr. Agarwal has more than 20 years of experience in the retail industry and has

been with VRPL since their inception in 1997.

 

Mrs. Uma Agarwal, Executive Director

She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of

experience in the retail industry. She has been associated with accounts

department of VRPL.

   

Mr. Surendra Kumar Agarwal, Executive Director

. . He holds a bachelor’s degree in commerce. Mr. Agarwal has more than 17

years of experience in the retail industry. He has been associated with store

development and management at various locations of VRPL.

   

Mr. Bharat Jain, Independent Director

He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of

39

leather garments and accessories and has more than 23 years of work

experience. Mr. Jain joined VRPL Board on May 8, 2006.

 

Mr. Rakesh Aggarwal, Independent Director

He holds a master’s degree in commerce. Mr. Aggarwal is currently engaged in

roto-moulding industry has more than 20 years of work experience. Mr.

Aggarwal joined VRPL Board on October 31, 2006.

 

OUR PROMOTERS AND GROUP COMPANIES

Our Promoters

The following individuals are the Promoters of our Company:

a). Mr. Ram Chandra Agarwal;

b). Mrs. Uma Agarwal; and

c). Mr. Surendra Kumar Agarwal.

The following companies are the Promoters of our Company:

a). Unicon Marketing Private Limited;

b). Ricon Commodities Private Limited; and

c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:

40

a). Mr. Ram Chandra Agarwal (HUF)

Name of Shareholders & Number of Shares % of shareholding

1. Unicon Marketing Private Limited 315,000 49.53

2. Ricon Commodities Private Limited 300,000 47.17

3. Mr. Ram Chandra Agarwal 12,010 1.89

4. Mrs. Uma Agarwal 9,010 1.42

Total 636,020 100.00

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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

Because of increasing number of nuclear families, working women,

greater work pressure and greater commuting time, convenience has become a

priority for Indian customers. They want ever thing under one roof for easy

access and multiplicity of choice. The growth and development of organized

retailing is driven by two main factors – lower prices and benefits the customer

can’t resist. India is rapidly involving into a competitive market place with

potential target consumers in the niche middle class segments. The market

trend indicates tremendous growth opportunities.

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MISSION STATEMENT:

We shall deliver Everything, everywhere, everytime for every Indian Consumer in

the most profitable manner.

VRPL’s BUSINESS:-

VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003,

VRPL acquired the manufacturing facilities from Vishal Fashions Private Limited

and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India

and change in consumer aspirations, VRPL diversified their portfolio of offerings

to include other retail goods. Currently, VRPL sell ready-made apparels and a wide

range of household merchandise and other consumer goods such as footwear, toys,

watches, toiletries, grocery items, sports items, crockery, home furnishing,

beverages, drinks, gift and novelties.

VRPL follow the concept of value retail in India. In other words, VRPL’s business

approach is to sell quality goods at reasonable prices by either manufacturing

themselves or directly procuring from manufacturers (primarily from small and

medium size vendors and manufacturers). VRPL endeavor to facilitate one-stop-

shop convenience for their customers and to cater to the needs of the entire family.

VRPL believe this concept has helped them grow to their current size within a

short time frame of 10 years.

In order to reduce costs and take advantage of economies of scale VRPL

have embarked on backward integration of their products. VRPL’s apparel

manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in

supply chain, VRPL have set up seven regional distribution centers located around

Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar

Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have

43

focused on developing a cost and time efficient distribution and logistics network,

which currently comprises seven distribution centers and a fleet of trucks for

transportation.

VRPL Business Processes:-

VRPL’s business process can be summarized as below:

Establishment of Stores:

Selection of location

In selecting location for a new store, VRPL start by identifying the city/town.

VRPL target primarily cities/towns which may be classified as Tier II or Tier III

cities. In this regard, an analysis of the demography, literacy levels, nature of

occupation and income levels. Within a city/town, VRPL target locations with

good infrastructural facilities such as easy accessibility, provision for water,

electricity, parking, security and other basic amenities. VRPL prefer to locate their

stores in areas where real estate is available at reasonable prices. The efforts of

VRPL’s retail business are targeted towards families having total income which

can be classified under the “lower middle” and “middle” income groups.

Accordingly, VRPL plan their strategy to search for areas within cities where such

customers are domiciled in large numbers and make efforts to locate themselves

within the reach of such customers.

VRPL believe that adoption of standard formats for their stores has led to their

brand establishment and identification among their customers and will increase

their base of loyal customers. In pursuance of this, they have adopted standard

parameters for store planning and establishment. For ensuring standardized formats

of their stores, VRPL consider various factors, such as internal and external décor

and colour schemes, allocation of store space, stock mix and pricing and

accounting methods.

44

Insurance

VRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz,

Royal Sundaram and IFFCO-TOKIO for their existing stores, distribution centers,

manufacturing facilities and trucks. VRPL insurance policies include

comprehensive coverage for electronic equipment, fire and special perils and

burglary. Further, VRPL has filed a claim of Rs. 22.50 million on account of fire in

their store at Meerut as on July 7, 2006. In this regard, they have received Rs. 7.50

million as an interim payment.

Factories

VRPL’s existing manufacturing facilities are located at Plot No. 224, Phase 1

Udyog Vihar, Gurgaon, for which they have leasehold interest until May 4, 2009.

In addition, VRPL have recently acquired freehold interest in relation to a land

admeasuring 7.24 acres in Dehradun, Uttaranchal, where they are exploring the

possibilities for establishment of another manufacturing facility.

Other Properties

VRPL have recently acquired freehold interest in relation to a land admeasuring

82,830 square feet in Hubli, Dharwad.

Merchandise Planning

VRPL’s merchandise planning is based on the concept of category management

rather than traditional brand management practices.

45

Apparels and Non Apparels

Under category management for, say, apparels, VRPL create and cater to products

across length and breadth of a category at different price points, fabrics, designs,

shapes, seasons, colors and sizes. VRPL formulate annual merchandising plan for

each division of merchandise taking into consideration factors such as past sales

data, regional customer tastes and preferences, number of stores (established and

proposed), likely fashion and trends, in-house production resources, vendor

management and price. Each division is further divided into major categories (for

instance, men’s apparel as a division is further divided into three major categories,

namely, upper, lowers and sports and ethnic wear). These major categories are in

turn segregated into various subcategories. For example, men’s upper as a major

category would be further divided into several sub-categories such as formal shirts,

casual shirts, party wear etc. Each sub-category consists of pre-defined SKUs,

which are classified on the basis of price point, brand, style, pattern and size.

VRPL draw annual sales projections for different SKUs and, accordingly, ascertain

their sourcing requirements. Based on such information and lead time estimates for

supplies, purchase orders with delivery schedules are issued. The inventory

position for each SKU is reviewed fortnightly taking into account the actual sales

and variations from the budgeted plans. Regular visits to the stores are made by the

category merchandising team to identify the slow-moving-SKUs and explore the

options to expeditiously dispose of them.

For certain non apparel categories, their merchandise planning and scheduling also

depends on introduction of new products and schemes by the vendors. For

instance, if a branded home appliance manufacturer replaces a product with a new

version, then their planning for the product would need to be reviewed based on

the acceptability of the new version.

46

In-house Manufacturing

VRPL benefit from backward integration and in-house manufacturing of part of the

apparel products sold in their stores. Through their manufacturing capabilities,

VRPL is able to attain relative independence from intermediaries with a

competitive advantage in terms of value and cost. VRPL use their manufacturing

strengths to focus on enhancing product knowledge and their experiences from

manufacturing enable them to negotiate better terms from the vendors and job

workers.

VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The

manufacturing plant is well-equipped with fully automatic machines for fusing,

buttoning, embroidery and welt pocket-making operations. The factory has a

capacity to manufacture 5,000 pieces per day. The plant was commissioned in

2004 and achieved a capacity utilization of 80%. It has 450 machines and is

operated by 500 workers. Further, VRPL are exploring the possibilities for

establishment of another manufacturing facility, for the purposes of which they

have acquired certain portions of land admeasuring 7.24 acres in Dehradun,

Uttaranchal.

In addition to in-house manufacturing, they have outsourced some parts of the

manufacturing to “job workers” who work in their factory premises. VRPL

undertake quality control measures by way of random sampling to ensure the pre-

determined quality standards are met. To verify that the quantity of supplies is as

per the order, they undertake count-check for every receipt of the goods.

VRPL’s manufacturing team works closely with their design team to understand

trends, develop products, value engineer and finally create season wise collection

that cater to regional tastes.

47

Purchasing

Purchasing or vendor management assumes critical importance in retail business

where one has to deal with multiple products. VRPL have in place a vendor

management system, under which they identify vendors all over the country and

overseas and seek to develop alliances and arrangements with them. They regularly

interact with the vendors and share information such that the vendors remain

familiar with their goals and targets. It has been their strategy to procure goods

from small and medium sized vendors and manufacturers, which they believe has

led to reduction in the cost of goods they sell and increase in their profitability.

Upon ascertaining the procurements needs based on each SKU, VRPL explore the

various options for sourcing the products. They continuously strive to procure

goods from the place of origin to reduce the costs and control the quality. For

identifying the vendors, VRPL assess the various possible options on factors such

as capacity, credibility in the market, quality awareness and experience.

After identifying the vendors for the goods, VRPL place purchase orders based on

their SKU-wise plan, estimated lead time of each vendor and quantity to be

procured from each vendor. VRPL follow a policy of ‘payment on delivery’ to

negotiate better prices with the vendors and in certain cases they also release

payments in advance. To ensure quality of supplies, VRPL check quality by way of

random sampling at the time of receipt of the goods. To verify that the quantity of

supplies is as ordered, they undertake count-check for every receipt of the goods.

For FMCG products, VRPL procure from large as well as small and medium size

manufacturers. For procurement from the large manufacturers or their distributors,

they endeavor to enter into formal arrangements for supply of products to all

VRPL stores, such that they are able to derive fixed margins from sales of such

products, irrespective of the locations. Under these agreements, they benefit from

special discretionary discounts and offers directly from the manufacturers or their

48

distributors.

VISHAL Apparels Brand

Vishal Mega Mart is one of India’s fastest growing retail chains.. The

chain currently has 172 company stores in 24 states / 110 cities in India. The

Vishal brand is known for great modern style for men, women and children.

Vishal offers high level fashion styling. Since 1986, our name has been

synonymous with quality, value and fashion integrity. We offer an unparalleled

collection of clothes for the entire family. Each garment is hand selected for

quality and contemporary styling. Vishal manufactures majority of its own

garments and out sources some under its direct quality supervision. This enables

us to offer the lowest possible and most reasonable prices.

Our goal is to provide a range of fashion wear to suit every pocket. Our product

mix represents the most current fashion trends in tops, bottoms, formals and

accessories for men, women and kids. Our courteous staff will ensure that

consumers get a perfect fit.

49

Popular Brands are:

Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids Girls

Kitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids Girls

Blues & Khakis

: Mens Trousers Zero Degree : Kids Boys

Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts

Chlorine : Mens Shirts Massa Bay :Mens Trousers &

Bermudas

Fume : Mens Shirts, T-Shirts,

UnderGarments. 

Apparel Manufacture

The basic raw materials required for the manufacturing process of apparels

includes fabrics and accessories. VRPL merchandising teams source fabrics from

local manufacturers in India depending upon their production plan. VRPL also

source fabrics from the place of origin. VRPL source various other components

and accessories from vendors in various parts of the country and also import them

from China.

Inventory Management, Distribution Network and Logistics

VRPL’s distribution network and logistics encompasses all activities to ensure that

goods are dispatched in right quantities and at right time to reach stores with

sufficient time in hand to promptly cater to customer demands and optimization of

inventory position.

They have built a system to monitor the inventory position on a real-time basis at

each store, under which a stock requisition or delivery order is generated when pre-

determined stock or re-order levels are reached. The re-order levels for stores are

50

determined based on factors such as display levels, lead time for replenishment and

average daily sales. VRPL review these re-order levels on continuous basis to

factor in variances in demand based on seasons, trends and promotional schemes.

VRPL have seven distribution centers over approximately 385,033 square feet.

These distribution centers are located around Kolkata (West Bengal), Thane

(Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab),

Gurgaon (Haryana) and Mahipalpur (New Delhi). VRPL have clearly demarcated

the stores which will be serviced by each distribution centre. The reorder levels for

distribution centers are ascertained on the basis of factors like average daily sales

of all the stores services, lead time for replenishment and buffer stock, which caters

to both the existing and proposed stores to be fed. As for the stores, they regularly

review these re-order levels.

VRPL’s distribution centers and stores are connected through company-wide

virtual network connection through broadband which helps to efficiently manage

their network of stores and distribution centers throughout the country.

They primarily utilise their own vehicles to transport the inventory to their stores

from the distribution centers. In addition, VRPL use the services of logistic

solution providers including low cost transport service providers in order to deliver

products on time to VRPL stores and optimize transportation costs. Distribution

centers operations have been streamlined through the standardisation of racking

system, layouts and implementation of automatic replenishment system.Under arrangements with some of their merchandise manufacturers, they receive payment on

account of display of their products.

Product Categories

51

- HOME FURNISHING

Drawing Room Bedroom

Door Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

FOOTWEAR

BOYS GIRLS

Shoes Slippers

Sandals Sandals

LADIES MENS

Shoes Shoes

Slippers Slippers

MENS

Upper Lower

Shirt

Casual Jeans(MP)

Shirt

Formal Cotton Trouser(MPC)

Winter Wear

52

Ethnic

&

Sports

Night

Suits Suit(WMC)

T-Shirts Blazer(WMB)

Dupatta Windcheater(WMW)

SherwaniJacket

LADIES ACCESSORIES

Upper Lower

Kurta Pants Jeans

Skirt Top Capri

Ethnic Winter Wear

Nighty Jackets

Lancha Stawl

Sharara Blazer

Salwar Suit Track Suit

INFANTS

Garments Accessories

Hot Pant Bed Sheet

Frock Under Garments

Baba Suit Socks

WOMEN

Sarees Personal Items

53

Fancy(SRF) Cap(LCA)

Synthetics Socks(Las)

Banarsi

Jewellery Cosmetics

Necklace LIp Gloss

Ring Nail Polish

KIDS BOYS

Lower Sets Winter Wear

Jeans Night Suit Suit

Bermudas Baba Suit Blazer

Dungries Jacket

Upper Ethnic

Shirt Formal Kurta- Pyjama

T-Shirt Sherwani

KIDS GIRLS

Lower Sets Winter Wear

Hot Pant Night Suit Hipster Set

Skirt Capri Set Blazer

Dungries Jacket

Upper Ethnic

Tops(GWT) Sharara

Frock(GFK) Lancha

54

HOUSEHOLD

Dinner Set Jug Cake Server

Home Aids Pressure Cooker Non Stick

Floor Wiper Cooker Handi

Sanitary Brush Pressure Pan Dosa Tawa

General Plastic

Goods

Electrical App. Bone China

Coffee Mug Chopper Soup Set

Bucket Microwave Oven Dessert Set

Glass Ware Thermo Ware Porcelain

Cup Tiffin Cup & Saucer

L$emon Set Container

LIFESTYLE

Time Zone Opticals Gifts & Novelties

Ladies Wrist Watch Ladies Sun Glass Flower Vase

Mens Wrist Watch Mens Sun Glass Key Chain

Mens Accessories Electric &

Electronics Items

Perfume/Deo

Belts Battery(ABT) Spray

Wallets Calculator(EEC) Deo

TOYS & GAMES

55

Soft Toys Dolls Cycles & Scooters

Musical Toys Barbie Doll Cycles

Non-Musical Other Dolls Scooters

Board Games Infant Toys Video Games

Wooden Blocks Teether T.V. Video Game

Puzzles Swing Hand Video Game

FOOD MART

FOOD & BEVERAGES

Snacks

Drinks

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M A R K E T I N G A N A L Y S I S S U M M A R Y

Marketing help to define the business for the customer's interests, not your own. It

is the process of learning what customers want or need and determining how to

satisfy those wants or needs. It is also used to confirm whether the customer

reacted to a marketing program as expected. The benefits of market research

include:

Learning who your customers are and what they want.

Learning how to reach your customers and how frequently you should try to

communicate with them.

Learning which advertising appeals are most effective and which ones get

no response.

Learning the relative success of different marketing strategies, thus

improving return on investment.

Learning how not to repeat your mistakes.

Vishal Mega Mart has been the pioneer of retail revolution. Its first fight was

against local ‘Kirana’ stores. The task was to change the mindset of consumer to

bring about changes in their shopping patterns. It wanted people to do bulk

shopping for their monthly ration instead of going to the shop each week.

57

MARKETING STRATEGY OF VISHAL MEGA MART

Product

Vishal Mega Mart offers a wide range of products which starts from apparels to

food items, footwear to home furnishing, crockery to sport items, child care

products to toys, watches, drinks etc. There are many in house brands promoted by

Vishal Mega Mart. In pursuance of their business plan to diversify their portfolio

of offerings, FMCG products play a key role. FMCG products are usually meant to

fulfill the daily needs of consumers and therefore, VRPL believe retailing of

FMCG products will bring customers to their stores on a frequent basis and this

may in-turn lead to consumption of their apparels. VRPL have a number of private

labels for apparels such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne,

Fleurier Women and Roseau.

. Vishal Mega-mart sold over 300,000 pairs of jeans, 50,000 DVD-players and

25,000 microwave-ovens. In all, the fashion,

electronics and travel segments made up about 70% of sales. Last year, these

categories made up only about 60%.

58

Price

Vishal Mega Mart promises its consumers the lowest available price. The concept

of psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool.

Vishal Mega Mart also caters on Special Event Pricing (Close to Diwali,

Christmas, New Year etc.). Selling combo-packs and offering discount to

customers. The combo-packs add value to customer. Through Bundling, they also

reduced the price of the products. In addition to VRPL’s strategy to continue

procurement of goods from small and medium size vendors and manufacturers

which leads to cost efficiencies, VRPL intend to procure FMCG and apparels from

low-cost production centers located outside India. Towards this objective, VRPL’s

propose to increase their procurement of finished and semi-finished goods from

China and thereby realize economies of scale and pass on the benefits so accrued

to their customers. The efforts of VRPL’s retail business are targeted towards

59

families having total income which can be classified under the “lower middle” and

“middle” income groups. VRPL follow uniform pricing policy across their stores

in respect of private labels and non-branded products sold by them. This enhances

brand loyalty, encourages customer confidence and results in operational

convenience. In relation to the other products, the prices may vary between stores

on account of state-specific taxation and vendor policies.

Place

Vishal Mega-mart stores are located in 129 cities with 172 outlets. VMM has

presence in almost all the major Indian cities. They are aggressive on their

expansion plans.

Vishal Retail targets cities with urban population of 1 million people or above or

can be classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens

retail outlets on the outskirts, rather than the prime area. Its target market includes

people with middle income and lower income levels. This enables the company to

overcome competition to some extent due to its first mover advantage (as

competitors have relatively less space in tier-2 and tier-3 cities) and helps to lower

rental cost. As at 3Q FY08, 78% of the company’s 82 stores are in Tier-2 and Tier-

3 cities.The company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1

cities at 80:20.

Promotion

Advertising has played a crucial role in building of the brand. Vishal Mega Mart

advertisements are mainly seen in print media i.e. newspapers, Television with

Tina Parekh as there in advertisement, and sometime road-side bill-boards.

VRPL’s category management system is used to plan promotional schemes. They

launch promotional schemes weekly. Apart from general sales promotion, the

category manager formulates promotional plans for ‘slow movers’. In addition, to

promote sales, they focus on layout of the stores and positioning, presentation and

60

display of merchandise, in order to appeal to the customer. In addition, VRPL have

introduced, in association with SBI Cards & Payment Services Private Limited, a

co-branded credit card. VRPL’s propose to continuously undertake such initiatives

to increase the satisfaction of their customers.

Vishal Mega-mart started many new and innovative cross-sell and up-sell

strategies in Indian retail market. The various promotion techniques used at VMM

include:

-5 Din Ki Maha Bachat

-2 din Ki Maha Loot

-Dhan-teras Dhamaal

-Great Savings

-Vishal Mega Mart Gift Voucher Rs. 1000.

-25% Off On All Items – Every Month

-Discount Offers At Various Festive occasions

-Grand Winter Sale – 50% & 60% discount for 2 days

-Paise Bachao Aandolan – 9 Din Ki Maha Loot

-Vishal Reward Plus: Consumers can make purchases at any store and accumulate

points at a central level. These points are redeemable at any of our stores.

-Cross category promotions are now catching up where discounts are being offered

on grocery purchases, redeemable against purchase of apparel and household

products

61

People

Vishal Retail has been established by Mr. Ram Chandra Agarwal, a first generation

entrepreneur. He has been

instrumental in expanding the business from an apparel store in Kolkata to 82

value retail stores with pan- India

presence. The management team has a pool of talented professionals with right mix

of working experience.

Professionals are one of the key assets for any organization. The salient features of

staff of VMM are: -

-Monthly, weekly & daily sales targets are communicated to the staff & efforts are

made to consistently achieve the set

targets.

-Employees are motivated to think out-of-the-box. Retail sector is in growth stage,

so staff is empowered to take

innovative steps.

-Multiple counters for payment, staff at store to keep baggage and security guards

at every gate, makes for a

customer-friendly atmosphere.

-VMM motivates & retains store staff & maintains a positive work environment.

-Well-dressed staff improves the overall appearance of store.

-Strong Recruitment Cell, 2,509 employees joined in 2009.

-8500 employee Strength.

Due to intense competition, the requirement of skilled manpower is increasing. At

the same time, the availability of

skilled manpower is declining and attrition rates are increasing throughout the

industry. We foresee an increase in the

62

employee cost going forward (Figure 7) due to company’s efforts to attract and

retain the employees. Although

employee cost is increasing; still the company’s motive is to retain the valuable

employees in the company

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 started soon.

-Three Layer Security Checks.

-No. of Parallel Billing Counter

-Retail Exchange Software Solution – PRIL

-Integrated With SAP & ERP

Physical Evidence

It deals with the final deliverable or the display of written facts. This includes the

current system and available facilities.

-Infrastructure – Stand Alone Commercial Building

-Clean, Air-conditioned outlet

-Equipment – computer, BCR, Desk etc State of Art

63

Management Organization Structure

64

Year---- Milestone

2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship

firm Vishal Garments & the Vishal Garments opened first store outside Kolkata.

2002-- Opened first Store in Delhi

2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing

unit in Gurgaon.

2004--Started thier largest store of at Mathura Road, New Delhi having an area of

80,000 square feet nominated for the Images Retail Awards’ 2004

2006--Thier Company was converted into a public limited company 103

implementation of production and retail module of SAP Broadband connectivity

with each and every location Increased thier presence to an aggregate of 17 States.

2007-- Increase in number of stores to 50 spread across in 18 States

65

CHAPTER-7

ANALYSIS OF DATA COLLECTED

NTERPRETATION

66

SWOT ANALYSIS

67

Strength :

High Brand Equity in evolving retails markets

State-of-art infrastructure of Big Bazaar outlets

POP to increase the purchase

One stop shop for variety of products, increasing customer time and

available choices

Weakness :

Unable to meet store opening target so far

Falling revenue per square feet

Opportunity :

Organized retail is just 4.15%of total pie of Indian retail market

Evolving Customer preferences in recent years.

Threat :

Competitors, global big players planning to foray into market

Government policies are not well-defined in India

Unorganized retail market of India

68

1. How do you know about Vishal MegaMart?

T.V. Hoardings

Newspaper Friends

Net

T.V Hoardings Newspaper Friends Net

70 40 50 20 20

2. How often you visit to Vishal MegaMart?

69

Within a week Within 2 week

Within a month Above 1 month

Within a week Within 2 week Within a month Above 1 month

70 40 35 55

3. What excites you most for shopping at Vishal Mega Mart?

70

Discount Buy one get one free

Cash back Free gift

Discount Buy one get one

free

Cash back Free gift

76 62 38 24

4. What do you usually buy from Vishal Mega Mart?

71

FMCG products Child care & Toys

Apparels Electronic goods

All products

FMCG

products

Child care &

toys

Appareals Electronic

goods

All product

45 20 60 20 55

5. Are you satisfied with the quality of the products offered by Vishal Mega

72

Mart?

Yes No

It’s ok

Yes No It’s ok

114 48 38

6. How is your shopping experience at Vishal Mega Mart?

73

Very Satisfactory Satisfactory

Average Unsatisfactory

Poor

Very

satisfactory

Satisfactory Average Unsatisfactory Poor

40 50 72 22 16

7. Do you want to changes in Vishal Mega-Mart?

74

Yes No

Yes No

96 104

9. What changes you want?

75

Better services Better packaging

Better products Home delivery

Better service Better packaging Better products Home delivery

45 25 60 70

10. According to you which promotional activity is effective?

Road show Campaign

76

Sampling Premiums

Any other

Road show Campaign Sampling Premiums Any other

40 76 30 24 30

11. What you think about sales promotion strategy of company?

77

Best Good

Average Not good

Best Good Average Not good

46 56 78 20

12. Does sales promotion strategies beneficial for sales?

78

Yes No

Yes No

146 54

13. At what percent sales promotion strategy is useful for increasing sales

79

Up to 10% 20-30%

30-40% More than 40%

Up to 10% 20-30% 30-40% More than 40%

75 58 40 27

80

CHAPTER-8

RECOMMENDATION & FINDING

81

Findings

1. The choice of a store location has a profound effect on the entire business

life of a retail operation. A bad choice may all but guarantee failure, a good

choice, and success.

2. Choosing a retail location is, at best, a risky undertaking. Considering the

consequences of choosing a location that proves to be unsuitable, it pays to

get as much assistance as possible. According to a survey more than 60% of

the customer prefers to shop in a retail store which is easily accessible to

them.

3. Advertising plays a very important role in achieving growth for any retail

company. This is evident from the fact that Advertising by Retail Industry

registered a rise of 12 percent during January - May 2007 over January -

May 2006.

4. The right location, trained manpower, software assistance, product with a

distinct differentiation, a strong value proposition, efficient supply chain

management - these are the factors that influence the success of a retail

outlet. With competition in this segment increasing, differentiation and a

strong value proposition assume significance. Retail chains are realizing that

they cannot be another ‘me-too’ store. The differentiation today among the

5-6 retail chains has come through private labels, which in some cases

account for as much as 70 per cent of the total merchandise in the outlet.

5. Variety offered by any retail store is of very much important to attract all

type of customers in the stores. A large variety of products caters to each

segment of customers.

6. Shopping experience within a store also has a great impact on selecting a

product from a particular retail store. Overall ambience includes

infrastructure facilities provided by the store such as air conditioners,

82

lighting etc.

7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to

any company's success: Company’s image, the product and services

company sells and consumer behavior. The Importance of Pricing their

Products' will give them an insight into developing appropriate costing

methods and the impact of getting it wrong in today's competitive creative

market. This topic should be of interest to anyone who is unsure if they are

getting it right. Remember the difference between over or under-pricing their

work can mean a very short future for any business. Approximately 60%

customers think that Price is the most important factor while they go for

shopping in a retail stores.

8. Quality in everyday life and business, engineering and manufacturing has a

pragmatic interpretation as the non-inferiority, superiority or usefulness of

something. This is the most common interpretation of the term. The quality

of a product or service refers to the perception of the degree to which the

product or service meets the customer's expectations. Quality has no specific

meaning unless related to a specific function and/or object. Quality is a

perceptual, conditional and somewhat subjective attribute. And in addition

to that, more than 90% of customers place quality as the most important

factor than anything else in the list to shop in a retail store.

9. More than 70% of customers place variety as an important factor to shop in

a particular retail store.

10.Brands name bears an important role while shopping of any type of goods.

So building a brand for a retail store is important as 80% of customer still

prefer to buy branded clothes in the retail store instead of local or unbranded

clothes.

83

Conclusion

&

Suggestions

84

Conclusion

Given the developments and prospects, the Indian retail sector is in its nascent

stage of evolution. While there are obstacles, there are clear opportunities in

modern retailing in India. There are many lessons that India can take from other

countries, which have moved along the path of retail evolution. The retail sector

has proved to be of immense significant from macro-economic point of view. The

sector’s capability to give strong growth momentum by creating multiplier effects

on other sectors is not in dispute. It is now necessary to cautiously expand and

develop the sector, as the government, at present, has done by permitting partial

FDI in the sector. Given the scope, the retail sector is certainly expected to fetch

the long-term economic benefits for the country.

The convenience and personalized service offered by the unorganized sector holds

its future in good stead for the future. Organized retail of late has seen a

tremendous boom and is attracting more people to the malls.

What is to be seen is how organized retail can duplicate the same level of

personalized customer service levels offered by the unorganized sector to have a

higher conversion ratio.

The target audience for both the organized and unorganized retail formats remains

relatively the same. When shopping in malls, people value the experience related

to the trip the most and return most frequently for the same. Besides, while

enjoying the experience they seem to buy high ticket and items of conspicuous

consumption most frequently.

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Gaining and maintaining consumer preference is a battle that is never really

won. Continued and consistent branding initiatives that reinforce the consumer’s

purchase decision will, over time, land the product in consumer preference sets

Suggestions

1. Include more trained sales person to help customers in the store while

shopping.

2. Improve quality of the products especially clothes.

3. Play good songs or soothing music in the store rather than cheap filmy

songs.

4. Customer care service can be introduced

5. More branded products can be displayed in the store as people still prefer

branded clothes than offered by local vendors.

6. Constant reminder of discounts through pamphlets, speakers inside the store

for inducing consumers for impulse buying.

7. Add more cosmetic products as its having a huge market of consumers

attached to it.

8. Display of product should be improved so that the product is easily visible to

the consumers.

9. Proper advertisement in press and outdoor to make Vishal Mega Mart

should be visible in the eyes of consumers.

10.Should have parking spaces in front of every store.

11.Hire more salesgirls as in ladies section its very difficult for both the

consumers and salesman to interact with each other.

12.Regular training to sales person to improve there overall performance.

13.Customization of clothing should be given an important consideration.

14.Proper packaging and provide contrast labelling in displays of product.

15.Should apply electronic supply chain management for better inventory

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management.

16.Proper power back up as air conditioners are not working to their full

capacity at many stores.

17.Proper placements of Gondola in the stores as space between them are very

less.

18.Proper display in the gondola and top most rack of the gondola should be

used for storing of inventory rather than display of product.

19.Should provide more festival schemes and at proper time.

20.Should use psychological pricing-more discounts by increasing the price

21.Proper display of cutlery items

22. Clothes should be in sync with fashion.

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CHAPTER -10

ANNEXURE

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ANNEXURES:-SAMPLE OF QUESTIONNAIREHow often do you visit Vishal mega Mart.?

(b) Once [ ] (b) twice [ ] (c) Thrice [ ] (d) More (please specify)………

2. How much money do you usually spend on Vishal Mega Mart in a month?

(b) 0 to 2000 [ ] (b) 2000 to 5000 [ ] (c) 5000 to 8000 [ ] (d) More than 8000 [ ]

3. With whom do you usually come with?

(b) Alone [ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify)…….

4. Do you come in Vishal Mega Mart?

(b) Casual [ ] (b) Planed [ ]

5. 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

6. How is the behavior of staff members of Vishal Mega Mart?VERY GOOD

GOOD AVERAGE

POOR VERY POOR

Give your suggestion._________________________________________________________________________________________________________________________________________________________

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8. CUSTOMER PERSONAL INFORMATIONS:-1. Name: - .2. Address: - .3. Phone No. .4. Age (in year):-18-25 26-30 31-35 36-40 41-50 >505. Income5000-10000 11000-20000 21000-30000 31000-40000 > 410006. Qualificationa) 10th [ ] (b) 12th [ ] (c) Grad. [ ] (d) PG. [ ] (e) Diploma [ ] (f) Other………SURVEYOR NAME: DATE: TIME:

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Bibliography

Books referred:

Retailing Management

Pradhan, Swapna

Retail Management – A Strategic Approach

Berman, Barry & Evans, Joel R.

The Art Of Retailing

Websites:

www.google.com

www.wikipedia.com

www.vishalmegamart.com

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