a study on impact of big malls on sm,all vendors---reliance retail

8/4/2019 A Study on Impact of Big Malls on Sm,All Vendors---RELIANCE RETAIL

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BIG MALLS ON SMALL VENDORS

INTRODUCTION

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OBJECTIVES

Primary objectives

1. To study the impact of Big malls on small vendors

2. To study the degree of influence of big super malls on Small vendors.

SECONDORY OBJECTIVES

3. To know the ideas of Small vendors regarding the emergence of the super malls.

4. To study the threats and weaknesses of the small vendors..

5. To know the retailers satisfaction levels towards big super malls..

6. To know the market share big super malls.

NEED FOR STUDY

As retailer, each of has a vast number of perceptions toward products, toward

services, toward company or industry, etc. It is difficult to imagine in any

research project that does not include the measurement of some aspects of

retailers s perceptions. The size of the market is vast and constantly expanding,

thus resulting in a vast number of competitors entering the market. Billions of

dollars were being spent on goods and services by tens of millions of people.

The growth of the retailers movements created urgent need to understand how

competitors form strategies and capture the market share and take strategic

decisions. For example, in order to discover how retailers respond to the

promotional offer, advertisement and distribution or service. (E.g. promotional

appeals, package labels, warranties, discounts, etc.).

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The study of retailers perception and market share would provide the company

with necessary insights to develop the product, its pricing strategy, and to design

persuasive promotional strategy, distribution system and develop defensive

strategies and elimination strategies to remove the competitors product from the

market or some promotional strategies to increase the market share of particular

products and brands. It would also support the organization to analyze its

drawbacks in its various strategies and to take corrective action to remain as

market leaders.

The study will also reveal the different aspects of retailers perception regarding

price, quality, range, availability, and advertisements of the products. The need

for the study is very essential as the competition in the soft drink and water

segment is ever increasing. Competitors are mainly struggling to shutdown the

market by capturing its market share.

SCOPE FOR STUDY:

The scope of the study is limited. The study is a very minor contribution to the

company as it is only restricted to the twin cities (Hyderabad and

Secunderabad). The study would only be a drop in the ocean, Can help the

distribution in twin cities. The study can be conducted on a national basic too

with a large sample size and interviewing many numbers of respondents.

OPERATIONAL DEFINITIONS:

Retailer: retailer is a person or business who sells products to the public.

Brand: Brand refers to the identification of the product given by the

manufacturer.

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Brand Loyalty: Brand loyalty refers to the continuous and repeated purchase

of a particular brand without any wavering purchase pattern.

Respondent: Respondent is a person who is being interviewed for the purpose

of conducting the study.

Market share: the amount that a company sells of its products or services

compared with other companies selling the same things

Promotional Activities: Promotional activities include advertising, personal

selling, sales promotion, and publicity, which have their own characteristics and

cost but have common objectives of achieving high sales by creating awareness.

Incentives: Offer of an article at frees of cost or less price of the market can be

termed as incentives.

Interviewee: A person who is answerable to the interviewer of the proposed

questions.

Interviewer: A person who carries on investigation for the purpose of

achieving the objectives of the project.

Sample: The selection of set of people from the total population for the

purchase of carrying on the investigation.

Survey: It refers to the questionnaire administered to the subject who is

identified from the population with the help of probability or non-probability

sampling.

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Research Methodology

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This study is based on survey and fact-findings inquiries with the customers

purchasing from organized FMCG retail outlets in Hyderabad. It is aimed to

collecting all the relevant data and its optimal usage keeping in mind objectives of

the research.

Sample Size: -

Sample size of 50 respondents was taken. The survey was conducted in

Hyderabad only.

Sampling technique: -

All the respondents were selected on random basis. So far every surveyed

entity, the respondents are an essential prerequisite. For broader perspective the

customers were contacted directly and by there association.

Research Instrument: -

A standard questionnaire was prepared for the collection of data from the

various respondents. The questionnaire was designed to keep objectives of the

study with the aim of collecting important information for the study.

COLLECTION OF DATA:

For this research project, data was collected both from the Primary and Secondary

sources.

1. Primary Data:

Students were personally contacted and the data was collected with the help of

questionnaire. The questionnaire was so designed so as to contain appropriate no. of

questions and to satisfy all the research objectives. The questionnaire contained both;

close-ended and open-ended questions. Special care was taken to ensure that questions

were simple & sequential.

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2. Secondary Data:

The secondary data was collected from catalogues, magazines, records and,websites,

related to organized FMCG retail outlets in the city.

LIMITATIONS OF THE STUDY:

No study is complete by itself, however good it may be, and every study has some

limitations. The limitations of this study can be summarized below:

1. Due to the constraints of time, the study was confined to Hyderabad city.

2. The sample was taken on the basis of convenience; therefore the short comings of

the convenience sampling may also be present in this study.

3. The sample size chosen for the purpose was only indicative and not exhaustive

owing to time constraints.

4. There were some inherent limitations as far as collection of data is concerned. The

respondents replied may be biased in favour of their centres

RETAILING:

Retailing consists of the sale of goods or merchandise from a fixed location, such as a

department store orkiosk, or by post, in small or individual lots for direct consumptionby

the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers

may be individuals or businesses. In commerce, a retailerbuys goods orproducts in large

quantities from manufacturers or importers, either directly or through a wholesaler, and

then sells smaller quantities to the end-user. Retail establishments are often called shops

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http://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Retail_marketing#cite_note-fas-0%23cite_note-fas-0http://en.wikipedia.org/wiki/Retail_marketing#cite_note-fas-0%23cite_note-fas-0http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesalerhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Retail_marketing#cite_note-fas-0%23cite_note-fas-0http://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Manufacturerhttp://en.wikipedia.org/wiki/Importerhttp://en.wikipedia.org/wiki/Wholesaler


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or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the

process of retailing as a necessary part of their overall distribution strategy.

Shops may be on residential streets, shopping streets with few or no houses, or in a

shopping center or mall. Shopping streets may be forpedestrians only. Sometimes a

shopping street has a partial or full roofto protect customers fromprecipitation. Online

retailing also referred to as B2C type ofe-commerce, and mail orderare forms of non-

shop retailing.

Shopping generally refers to the act ofbuying products. Sometimes this is done to obtain

necessities such as food and clothing; sometimes it is done as a recreational activity.

Recreational shopping often involves window shopping (just looking, not buying) and

browsing and does not always result in a purchase.

Retail pricing:

The pricing technique used by most retailers is cost-plus pricing. This involves adding a

mark up amount (or percentage) to the retailers cost. Another common technique is

suggested retail pricing. This simply involves charging the amount suggested by the

manufacturer and usually printed on the productby the manufacturer.

In Western countries, retail prices are often calledpsychological prices orodd prices.

Often prices are fixed and displayed on signs or labels. Alternatively, there can beprice

discrimination for a variety of reasons, where the retailer charges higher prices to some

customers and lower prices to others. For example, a customer may have to pay more if

the seller determines that he or she is willing to. The retailer may conclude this due to the

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http://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Shopping_centerhttp://en.wikipedia.org/wiki/Pedestrianhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Precipitation_(meteorology)http://en.wikipedia.org/wiki/B2Chttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Mail_orderhttp://en.wikipedia.org/wiki/Shoppinghttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Recreationhttp://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Odd_pricehttp://en.wikipedia.org/wiki/Odd_pricehttp://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Shopping_centerhttp://en.wikipedia.org/wiki/Pedestrianhttp://en.wikipedia.org/wiki/Roofhttp://en.wikipedia.org/wiki/Precipitation_(meteorology)http://en.wikipedia.org/wiki/B2Chttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Mail_orderhttp://en.wikipedia.org/wiki/Shoppinghttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Recreationhttp://en.wikipedia.org/wiki/Pricinghttp://en.wikipedia.org/wiki/Cost-plus_pricinghttp://en.wikipedia.org/wiki/Markup_(business)http://en.wikipedia.org/wiki/Suggested_retail_pricehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Psychological_pricinghttp://en.wikipedia.org/wiki/Odd_pricehttp://en.wikipedia.org/wiki/Price_discriminationhttp://en.wikipedia.org/wiki/Price_discrimination


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customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Another example

is the practice of discounting for youths or students.

EFFECT OF SHOPPING MALLS ON THE SMALL RETAILERS

Retail trade contributes around 10-11% of Indias GDP and currently employs over 4

Crores people. Within this, unorganized retailing accounts for 97% of the total retail

trade.

Traditional forms of low-cost retail trade, from the owner operated local shops and

general stores to the handcart and pavement vendors together form the bulk of this sector.

In the absence of any significant growth in organized sector employment in India in the

manufacturing or services sector, millions are forced to seek their livelihood in the

informal sector. Retail trade, which has been a relatively easy business to enter withlow

capital and infrastructure needs, has acted as a refuge source of income for the

unemployed.

Organized retailing has witnessed considerable growth in India in the last few years and is

currently growing at a very fast pace. A recent KPMG survey report prepared for the

FICCI states that organized retail, estimated as a $ 6.4 billion industry in 2006, is

projected to reach $ 23 billion by 2010. The share of organized retail in overall retail sales

is projected to jump from around 3% currently to around 9-10% in the next three years. A

number of large domestic business groups have entered the retail trade sector and are

expanding their operations aggressively. Several formats of organized retailing like

hypermarkets, supermarkets and discount stores are being set up by big business groups

besides the ongoing proliferation of shopping malls in the metros and other large cities.

This has serious implications for the livelihood of millions of small and unorganized

retailers across the country.

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Need to Regulate Organized Retail:

Large format retailing is controlled and regulated across the world. The experiences of

Western European as well as South East Asian countries are particularly relevant in this

regard. However, an appropriate regulatory framework for the organized retail sector in

India has to be framed keeping in mind the Indian specificities. India has the highest shop

density in the world with 11 shops per 1000 persons, much higher than the European or

Asian countries. The potential social costs of the growth and consolidation of organized

retail, in terms of displacement of unorganized retailers and loss of livelihoods is

enormous. Regulation in India therefore needs to be more stringent and restrictive. There

are broadly three ways in which the adverse impact of the rapid and unbridled expansion

of organized retail can be felt:

1. Around 95% of the 12 million shops in India have a floor area of less than 500 square

feet. The impact of the growing market share for organized retailers is being manifested

in the falling sales for the unorganized retailers in several places. The NSSO surveys

already indicate a significant decline of more than 12.5 lakhs in the number of self

employed retailers in urban India (by current weekly status) between 1999-2000 and

2004-05. Further acceleration in the growth of organized retail would eventually result in

making business unviable for a large number of unorganized retailers, particularly in the

event of a slowdown in consumption growth and retail sales. In the backdrop of huge

unemployment and underemployment persisting in India, small-scale retailing still

provides livelihood security to around 20 million urban workers and 12 million rural

workers. Their displacement would further worsen the unemployment scenario.

Giant organized retailers use their monopoly buying power to squeeze small producers of

agricultural as well as manufactured products. The experience of the farmers of

developing countries with the giant food retailers has been particularly bad. The farmers

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become dependent upon the inputs, credit and technology supplied by the food retailers

and end up being at their mercy in terms of prices for their produce and qualitystandards.

Contract farming, which is the preferred mode of operations as far as the agribusiness

corporations and food retailers are concerned, has led to agrarian distress in many places.

Moreover, uncontrolled diversification in agriculture away from food grains can imperil

food security. In the backdrop of the crisis being already faced in Indian agriculture, the

entry of large retailers with monopolistic control can aggravate the situation.

3. The proliferation of large format retail outlets reshapes the urban landscape in myriad

ways. Land use patterns change drastically, often in violation of city plans. Given the

unplanned and chaotic path of urban development witnessed in India over the past decade

and a half, and the pathetic state of urban infrastructure, the proliferation of large format

retailers will only accelerate the undesirable trends of predatory real estate development

and unsustainable pressures on urban infrastructure and the environment. Rather than

enhancing choices for the consumers, especially the lower income groups, proliferation of

large format retail stores would kill competition, lead to closure of neighbourhood

markets and make consumers solely dependent upon the organized retailers. This would

also increase the propensity to use private vehicles for shopping thus leading to more

pollution.

Regulation of the organized retail sector has to address all these areas of concern

mentioned above. Organized retail cannot be allowed to grow in a way, which displaces

existing unorganized retailers, jeopardizing livelihoods in the absence of other

employment opportunities. The interests of the small producers, especially farmers, also

have to be protected by preventing the emergence of local monopolies/monopolies. It has

to be ensured that competition is not stifled and potentially monopolistic practices in

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credit, input and output markets are not encouraged by the entry of large corporate

retailers. Moreover, undue pressure on urban infrastructure and the environment arising

out of the proliferation of large format retailers has to be prevented.

Framework for a National Policy on Regulating Organized Retail:

Small retailers need protection and policy support in order to compete with

organized retail. The Ministry of Housing and Urban Poverty Alleviation has formulated

a National Policy for Urban Street Vendors. The policy proposes several positive steps to

provide security to street vendors considering it as an initiative towards urban poverty

alleviation.However, what is required is a more comprehensive policy, which addresses

the needs of small retailers, especially in terms of access to institutional credit and know

how to upgrade their businesses.

A regulatory framework for organized retail should also be framed. Since the operations

of organized retailers impact upon various sectors of the economy, policy guidelines

should be framed involving all the relevant Departments, namely Commerce, Agriculture

and Urban Development. Moreover, since regulation of the large format retailers would

mainly be in the domain of the states and local bodies, State Governments have to be

consulted and involved in the process of framing policy guidelines. A Central legislation

or a Model legislation, which can be enacted by the State Governments, may also be

considered for this purpose.

In addition, the UPA Government should also abandon the moves to permit FDI in retail

trade through the back door, as in the case of the joint venture between Wal-Mart and

Bharti whereby the former proposes to operate in the cash-and-carry segment while the

latter in the front-end. It is more than obvious that this proposed joint venture is nothing

but a subterfuge, to circumvent the existing policy regime, which does not allow FDI in

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retail. The entry of giant MNCs like the Wal-Mart, TESCO, Carrefour etc, besides

accelerating manifolds the already rapid growth of organized retail, would also sabotage

any attempt by the Government to regulate the sector in order to protect the interests of

the small retailers and farmers. The UPA Government should take a categorical position

on this issue. Not allowing MNCs to operate in the retail sector should be the starting

point of the national policy on retail.

The issues, which need to be addressed in the regulatory framework for organized retail,

have already been discussed above. Some suggestions are made below which seek to

address those issues:

A Licensing System for Organized Retail:

1. A system of licensing should be introduced for organized retail. Any retail outlet with

floor area over an appropriate minimum floor area should require prior license from local

authorities (city corporations or municipalities). Corporate entities should not be allowed

to operate retail outlets below the specified minimum floor area

2. The authority to grant licenses should be the urban local bodies. A dedicated

Committee/board/department should be set up by the urban local bodies, with

representation from street vendors and small retailer associations, which should be

empowered to grant licenses to organized retailers.

3. The system should be devised in a manner so that there is transparency in the process

of granting licenses in order to prevent corrupt practices. A process of open bids for

granting licenses may be considered.

4. Considering the multiplicity of formats of organized retail, there should be separate

sets of regulations for each format, based on floor area. Slabs should be set for the

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different retail formats, like discount stores, supermarkets, hypermarkets, shopping malls

etc based on floor area.

5. Licenses for each format should be given on the basis of a population criterion,i.e. not

more than X number of large format retail stores of Y format per Population. The criteria

may vary between states and cities depending upon the nature of the retail sector and

needs of consumers. However, a commonality should exist in terms of assessing the

employment impact by the local authorities in a scientific as well as democratic manner,

before granting license for a large

format retail outlet.

6. There should be appropriate caps both on the total number of large format retail outlets

that are being granted licenses in particular areas as well as on the

maximum floor area for a retail outlet.

7. Retail outlets above a certain floor area should not be allowed to operate within

existing commercial zones/areas. In case a license is granted for a large format retailer

within an existing commercial area, it should only be on the basis of an agreement to

share a substantial proportion of its floor area with small retailers at concessional rent.

The allotment of space to small retailers in such cases should be done by the license

issuing authority.

8. Giant retail outlets like hypermarkets, which attract large numbers of customers, should

have adequate parking space and should ideally be located outside city limits.

Environmental Impact assessment should also be mandatory for giant retail outlets whose

floor area exceeds a specified limit.

9. Penal provisions, including withdrawal of licenses, should be laid down forviolation of

the terms and conditions of licenses by organized retailers.

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Governments Role in Preventing Private Monopolies:

1. A single large format retailer should not be allowed to capture a large market share. For

this it is important to restrict the number of retail outlets that a single private entity can

open in a city, state as well as region. Under no circumstances should a national level

monopoly be allowed to develop in the retail sector.

2. There should be guidelines to prevent predatory pricing and below-cost sales by

organized retailers. A mechanism should be set up where complaints against predatory

pricing can be registered by small retailers. The Competition Commission in India is not

suitably equipped to handle such issues. A dedicated mechanism is required for this

purpose.

3. In order to prevent the development of big private monopolies in retail trade, it is also

important for the Government to ensure its presence in the market. Several Government

marketing agencies exist, both at the Central as well as State levels. With a few

exceptions, these agencies have been experiencing decay, owing to various factors. These

marketing agencies should be revived and encouraged to grow and compete with private

large format retailers.

4. Consolidation of several Government marketing agencies in order to create a few big

public sector retail chains should be seriously considered, which can also invest in

developing modern supply chain infrastructure. Panchayati Raj Institutions (PRIs) should

be involved in the administration of cold storages and

Procurement centres.

5. Encouragement should be provided to the existing retail chains in the cooperative

sector. New retail cooperatives should also be promoted. Partnerships between existing

Government marketing agencies and cooperatives can also be considered, especially in

food retail where synergies exist.

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6. The State Governments or urban local bodies should levy a cess on the VAT on all

goods sold by large format retail outlets (including those in the public sector) in order to

create a level playing field between the organized and unorganized retailers. Revenues

generated from the cases can be used to create a dedicated fund to provide infrastructure

support, financial assistance or cheap credit for unorganized retailers to improve and

upgrade their operations.

7. Tax incentives should not be provided, either by the Central or State Governments, for

the setting up of procurement/distribution centres or rural business hubs by private

players. Neither should tax breaks be provided to private players for contract farming.

Safeguarding Farmers Interests:

1. Handing over farmland to food retailers for contract farming should not be permitted.

Rules for contract farming should ensure that there is no possibility of farmers being

alienated from their land, even if there is a failure in meeting contract commitments.

2. Contract farming should be regulated and monitored by the Government to protect the

interests of farmers. Farmers should be encouraged to form groups or cooperatives in

order to enter into contracts collectively with corporate rather than entering into

individual contracts.

3. The processes of credit provision linked to input supplies and subsequent purchase of

the crop, all by one private player, need to be regulated carefully by State authorities and

PRIs. Supply of inputs like seeds need to be monitored by the Government. It is also

important to ensure that monoculture is avoided.

4. It should be ensured that the farmers are not denied the opportunity of selling their

produce over and above the quantity specified in the contract to other agencies at a price

higher than what is specified in the contract. Farmers also need to be protected from

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arbitrary refusal by the contracting parties to buy their produce on grounds of poor

quality. The Government should reserve the right to intervene in such contracts in

situations when they are found to be operating to the detriment of farmers interests.

5. Large procurement centres created by corporate retailers should compulsorily have

separate space for Government agencies. The scope of activities of the Government

agencies would depend on the scale of operations. They may range from a single

information centre for Government services to various Government agencies supplying

inputs, providing extension services, disbursing credit and Undertaking procurement.

Several State Governments have amended their APMC Acts in accordance with the

Model APMC Act framed by the Central

Government. That model Act itself needs to be changed incorporating the suggestions

made above. State Governments should also be persuaded to do the same.

6. It has to be ensured that a single corporate retailer does not monopolize procurement

operations in a district or area. It is therefore absolutely critical that both public

procurement agencies and cooperatives are given support, incentives and freedom to

compete with the corporate retailers. This would require special initiatives from the State

Governments to reinvigorate the Government agencies. The Central Government should

also provide adequate funds required for the purpose.

7. Private procurement of food grains by large players who can manipulate the market

should be discouraged. The experience of the last two years shows how the free hand

given to corporate players has led to shortfalls in public procurement necessitating wheat

imports. There is an urgent need to strength and expand the public procurement

machinery into more areas and provide it with the required flexibility to ensure adequate

procurement at remunerativeprices.Private procurement of food grains, wherever it takes

place, should be closely monitored by the PRIs and the Government.

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8. Food retailers or other agribusiness companies should not be allowed to corner and

hoard food grains stocks under any circumstances. To prevent cornering of stocks by

private players with the associated potential for speculation, there should be rules for

public disclosure of stock holding levels. Public agencies should be empowered to

purchase food grains from the private holders at prespecified prices if their stocks exceed

a specified level.

Genres of retail

Some shops sell second-hand goods. In other cases, especially in the case of a nonprofits

shop, the public donates goods to the shop to be sold (see also thrift store). In give-away

shops goods can be taken for free. There are also "consignment" shops, which are where a

person can place an item in a store, and if it sells the person gives the shop owner a

percentage of the sale price. The advantage of selling an item this way is that the

established shop gives the item exposure to more potential buyers. The term "retailer" is

also applied where a service provider services the needs of a large number of individuals,

such as apublic utility like electric power.

Sales techniques

Behind the scenes at retail there is another factor at work. Corporations and independent

store owners alike are always trying to get the edge on their competitors. One way to do

this is to hire a merchandising solutions company to design custom store displays that will

attract more customers in a certain demographic. The nation's largest retailers spend

millions every year on in-store marketing programs that correspond to season and

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promotional changes. As products change, so will a retail landscape. Retailers may use

facing to create the look of a perfectly-stocked store even when it is not.

A destination store is one that customers will initiate a trip specifically to visit,

sometimes over a large area. These stores are often used to "anchor" a shopping mall or

plaza, generating foot traffic which is capitalized on by smaller retailers.

Customer service: According to the book "Discovery-Based Retail", customer service is

the "sum of acts and elements that allow consumers to receive what they need or desire

from your retail establishment."

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COMPANY PROFILE

RELIANCE GROUP

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The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain. Group's

annual revenues are in excess of USD 27 billion. The flagship company, Reliance

Industries Limited, is a Fortune Global 500 company and is the largest private sector

company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of

Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of

backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals,

petroleum refining and oil and gas exploration and production - to be fully integrated

along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining

and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals),

textiles and retail.

Reliance enjoys global leadership in its businesses; The Group exports products in excess

of USD 15 billion to more than 100 countries in the world. There are more than 25,000

employees on the rolls of Group Companies. Major Group Companies are Reliance

Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance

Retail limited) and Reliance Industrial Infrastructure Limited.

Reliance Industries Limited is India's largest private sector conglomerate (and second

largest overall) with an annual turnover ofUS$ 35.9 billion and profit ofUS$ 4.85 billion

for the fiscal year ending in March 2008 making it one of India's private sector Fortune

Global 500 companies, being ranked at 206th position (2008). [1] It was founded by the

Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing

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financial instruments like fully convertible debentures to the Indian stock markets.

Ambani was one of the first entrepreneurs to draw retail investors to the stock markets.

Critics allege that the rise of Reliance Industries to the top slot in terms of market

capitalization is largely due to Dhirubhai's ability to manipulate the levers of a controlled

economy to his advantage.

Though the company's oil-related operation forms the core of its business, it has

diversified its operations in recent years. After severe differences between the founder's

two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in

2006. In September 2008, Reliance Industries was the only Indian firm featured in the

Forbes's list of "world's 100 most respected companies"

Subsidiaries of RIL:

Reliance Petroleum

Ranger Farms Limited

Retail Concepts and Services (India) Private Limited

Reliance Retail

Reliance Global Management Services (P) Limited

Reliance Biopharmaceuticals

Reliance Ghatraj Services

Reliance Engineering Associates (P) Limited

Reliance Retail Limited:

22
http://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Reliance_Petroleumhttp://en.wikipedia.org/w/index.php?title=Ranger_Farms_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Retail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Biopharmaceuticals&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Ghatraj_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Anil_Ambanihttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/Reliance_Petroleumhttp://en.wikipedia.org/w/index.php?title=Ranger_Farms_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Retail_Concepts_and_Services_(India)_Private_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Retail&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Global_Management_Services_(P)_Limited&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Biopharmaceuticals&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Ghatraj_Services&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Engineering_Associates_(P)_Limited&action=edit&redlink=1


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Reliance is gearing up to revolutionize the retailing industry in India. Towards this end,

Reliance is aggressively working on introducing a pan-India network of retail outlets in

multiple formats.

A world class shopping environment, state of art technology, a seamless supply chain

infrastructure, a host of unique value-added services and above all, unmatched customer

experience, is what this initiative is all about.

The retail initiative of Reliance will be without a parallel in size and spread and make

India proud. Ensuring better returns to Indian farmers and manufacturers and greater

value for the Indian consumer, both in quality and quantity, will be an integral feature of

this project. By creating value at all levels, we will actively endeavour to contribute to

India's growth.

The project will boast of a seamless supply chain infrastructure, unprecedented even by

world standards. Through multiple formats and a wide range of categories, Reliance is

aiming to touch almost every Indian customer and supplier.

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,

small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL,

was set up to lead Reliance Groups foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic

activity across the world. Of this, organized retailing contributes between 20% to 55% in

various developing markets. The Indian retail industry is pegged at $ 300 billion and

growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is

expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to

build state-of-the-art retail infrastructure in India, which includes a multi-format store

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strategy of opening neighbourhood convenience stores, hypermarkets, and specialty and

wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store format

Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13 states

at the end of FY 2007-08. RRL launched its first Reliance Digital store in April 2007

and its first and Indias largest hypermarket Reliance Mart in Ahmadabad in August

2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance

Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and

other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance

AutoZone) and also an initiative in the health and wellness business through Reliance

Wellness. In each of these store formats, RRL is offering a unique set of products and

services at a value price point that has not been available so far to the Indian consumer.

Overall, RRL is well positioned to rapidly expand its existing network of 590 stores

which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agri-business

value chain and has commenced marketing fruits, vegetables and staples that the

company sources directly to wholesalers and institutional customers. RRL provides its

customers with high quality produce that has better shelf life and more consistent quality

than was available earlier. RRL has made significant progress in establishing state-of-the-

art staples processing centres and expects to make them operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure. The Company is

fully geared to meet the requirements of its rapidly growing store network in an efficient

manner.

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Recognizing that strategic alliances are going to be a key driver to its retail business, in

FY 2007-08, RRL established key joint ventures with international partners in apparel,

optical and office products businesses. Further, RRL will continue to seek synergistic

opportunities with other international players as well. This year, RRL will continue its

focus on rapid expansion of the existing and other new formats across India.

Reliance fresh is the retail chain division of reliance industries of India which is headed

by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores

into almost every metropolitan and regional area of India. Reliance plans to invest rs

25000 crores in the next 4 years in their retail division and plans to begin retail stores in

784 cities across the country. The reliance fresh supermarket chain is rils rs 25,000 crore

venture and it plans to add more stores across different g, and eventually have a pan-India

footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples,

groceries, fresh juice bars and dairy products and also will sport a separate enclosure and

supply-chain for non-vegetarian products. Besides, the stores would provide direct

employment to 5 lakh young Indians and indirect job opportunities to a million people,

according to the company. The company also has plans to train students and housewives

in customer care and quality services for part-time jobs

BACK GROUND

We can see many examples of businesses where, first we grow and then think

of expanding but Reliance is quite different. Reliance has developed such huge amount

of resources and capital over the years that whenever it steps into any segment it is not

required to wait for growing signal, thats why it always thinks of expanding without any

boundaries. Reliance retail is next Step by RIL which will be a pan India project.

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Reliance Fresh is the retail chain division of Reliance Industries of India

which is headed by Mukesh Ambani. Reliance has entered into this segment by opening

new retail stores into almost every metropolitan and regional area of India. Reliance plans

to invest Rs 25000 crores in the next 4 years in their retail division and plans to begin

retail stores in 784 cities across the country. The Reliance Fresh supermarket chain is

RILs Rs 25,000 crore venture and it plans to add more stores across different g, and

eventually have a pan-India footprint by year 2011.

The super marts will sell fresh fruits and vegetables, staples, groceries, fresh

juice bars and dairy products and also will sport a separate enclosure and supply-chain for

non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh

young Indians and indirect job opportunities to a million people, according to the

company. The company also has plans to train students and housewives in customer care

and quality services for part-time jobs.

The company is planning on opening new stores with store-size varying from

1,500 sq ft to 3,000 sq ft, which will stock fresh fruits and vegetables, staples, FMCG

products and dairy products. Each store is said to be within a radius of 1-2 km of each

other, in relation to the concept of a neighbor store. However, this is only the entry roll-

out that the company has planned. Bangalore is said to have 40 stores in all by the end of

the year.

In a dramatic change due circumstances prevailing in UP, West Bengal and

Orissa, It was mentioned recently in News Dailies that, Reliance Retail is moving out

stocking. Reliance Retail has decided to minimize its exposure in the fruit and vegetable

business and position Reliance Fresh as a pure play super market focusing on categories

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like food, FMCG, home, consumer durables, IT, wellness and auto accessories, with food

accounting for the bulk of the business.

The company may not stock fruit and vegetables in some states, Orissa being

one of them. Though Reliance Fresh is not exiting the fruit and vegetable business

altogether, it has decided not to compete with local vendors partly due to political

reasons, and partly due to its inability to create a robust supply chain. This is quite

different from what the firm had originally planned. When the first Reliance Fresh store

opened in Hyderabad last October, not only did the company said the stores main focus

would be fresh produce like fruits and vegetables at a much lower price, but also spoke at

length about its farm-to-fork theory. The idea the company spoke about was to source

from farmers and sell directly to the consumer removing middlemen out of the way.

STEPS IN WTS MODEL:

1) Reliance has owned farms on contract basis for production of specific crop which

is decided after extensive research depending on

SOIL CONDITIONS,

CLIMATE CONDITIONS,

RETURN OVER COSTS INCURRED.

2) Different vegetables and fruits from such farms are collected through reliance own

Logistics and brought to collection Processing centres where quality check and other

required processing is done.

In processing centres workers wearing balaclavas, woollen trousers and bulky

jackets work inside a room kept at a constant 3oC, peeling and chopping vegetables,

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spinning them dry and then heaping them in small plastic packets before placing them

in plastic transport crates. At the other end of the 5,000-sq-m warehouse, men unload

crates of fruits from a truck pulled up to a spotless loading dock. A quality-control

expert samples every tenth crate; if the fruits are good a team will ready them for

delivery within hours to Reliance fresh stores around different places like U.P and as

far away as Hyderabad and even Mumbai (formerly Bombay). If they are not, workers

will inspect the entire shipment and discard anything below standard.

3) Merchandise from these collection processing centers are collected and loaded for

Wholesale mandis. As this merchandise is to be made available by 4 A.M in

morning thus deliveries in trucks are sent at time depending upon:

TRANSIT TIME. Time required reaching destination i.e. mandis.

MARGIN TIME. Time period between a truck reaching mandi and then Unloads.

Can be 2 to 3 hours.

LOADING AND UNLOADING TIME.

4)From mandis where the trucks have been unloaded, roadside vendors and pull

carters Buy fruits and vegetables to supply in households.

5) In case still some vegetables and fruits are not sold reliance logistics own

Transportation sends them to reliance fresh stores.

SWOT ANALYSIS:

The Indian retail market accounted for $ 200 billions. Food accounts for over two-thirds

of the $200-billion Indian retail market. Yet, it has seen less than 1 per cent penetration

by modern retail so far. Reliance industries which always looking for new business

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opportunities just started a new era with its introduction of new concept stores named

Reliance Fresh with opening convince store in high streets of Banjara hills of

Hyderabad. Reliance Fresh is very different from what modern retail has offered in India

so far and with this reliance is planning to establish strong retail network in India in food

and farm sector. They have started with new eleven stores in the last week and they are

thinking to add 100 more stores to their feather by the end of this year.

Lets do a SWOT analysis on the Reliance Fresh.

Strengths:

Reliance is the first into enter into this unorganized sector of vegetables and fruits.

According to them its intentions to have100% farm fresh foods in their new retail stores.

It is also adding shortly a juice bar, and even a large counter for puja flowers. In fact,

over 60 per cent of the floor space has been dedicated to fresh fruits and vegetables, the

rest to other food products like staples, spices, bakery, etc. But reliance has decided not

to add any bar soap or toothpaste and detergent in its shelves. So by using this strategy

they are positioning themselves different from other players of the industries like Food

world, Big Bazaar and Nilgiris. But over come the short comings of these specialized

stores they are also introducing new Reliance full-fledged supermarket called Shakhari

Bhandar which offers each and everything from the staple to soap. Most of the staples

are under its own private label brand Reliance Select. There is a 500g channa dal

pack priced at Rs 28, a 500g urad dal pack for Rs 39, all under Reliances own brand.

Excepting a few packets of Nestles Maggi, or MTRs masalas or Pepsis Lays chips,

there is very little shelf space given to the big brand owners in the country. Reason:

private labels offer far better profit margin to the retailer than branded products of

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FMCG companies. Most of these outlets will need only 2,000-5,000 sq. ft. A

supermarket may need as much as 8,000-10,000 sq. ft.

Weakness:

This is definitely an interesting business venture but it may miss out on the opportunity

to capture a greater share of the customers wallet. For customers, too, this could be

irksome, as they would have to visit another store to pick up essentials. Reliance could

easily fix this problem by adding a few small counters for some basic non-food

products. According to their official this format is not final one they are accepting the

new changes which are required to attract the large number of customers.

Opportunities

Reliance wants to build a high-profitability business and food is, perhaps, the best

venture to start. That is because the Indian food supply chain is grossly inefficient. There

are several intermediaries, each of whom adds his own profit margin to the cost.

Besides, there is huge wastage in transit. This offers potential for savings and profits. To

reduce the cost and increase the profit it has been sourcing out its requirements from the

farmers. For example, the leafy vegetables, brinjals, tomatoes and green chilies in the

Banjara Hills outlet were sourced directly from farmers in Vantimamdi, Chevella and

nearby mandals in Ranga Reddy district of Andhra Pradesh. The supply chain already

has been backed by few hundred farmers the number is estimated to touch million in

next five years. The main aim of the reliance is to eliminate the intermediaries in the

sector and reduce the cost. Smaller stores have two advantages. They bring down the

cost of real estate (and increase profits). It is easier to find space for small convenience

stores in a quiet neighbourhood than for supermarkets in high streets.

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Threats:

This model is engineered to clock a faster turnover of inventory Reliance expects

consumers to visit the store at least twice a week for their top-up groceries. Each store

will have an investment of Rs 50 lakh to Rs 60 lakh. Unlike global retailers who operate

on thin margins, Reliance Retail is looking at a fairly high-margin business model.

Deliberately stopped short of being a full-fledged supermarket rather, it has limited itself

to a food and grocery convenience store. They also have a threat from the existing

supermarkets which provides all the services to its customers. For Example Food world

and Nilgiris also provides food and beverages with other personal care products. These

convince are not existed in the present Reliance retail stores.

CORPORATE SOCIAL RESPONSIBILITY

Today when most of the companies are busy in making profits by any means, there are

few Ones who are focused to return this society, a part of what they have earned through

this society. Reliance retail is one of them. Following efforts of reliance retail are aimed

at benefiting the society making reliance socially responsible:

1) Reliance Retail aims at recruiting people from the underprivileged community in

society. "Hence, we are planning to train students from corporation schools and schools

run by NGOs. And, we consider this as a part of our corporate social responsibility," he

said. Asked whether the company will take students on an employment basis and pay

them a stipend during the course period, he said that actually, it is planning to charge a

"small fee" from those who want to join the course "as we want to bring in some

discipline and regularity among the students", and will reimburse that once they are

inducted into service.

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2) Farming in India is highly fragmented and subject to harsh climatic conditions: once

harvested, it is very difficult to keep fruits and vegetables fresh. To secure high quality,

Reliance Retail is directly sourcing fresh agricultural produce from thousands of farmers

from villages through Collection Centers. With this concept, Reliance has built a business

model generating shared value that links the company supply chain more closely to poor

farmers in Indian villages. Reliance is providing a guaranteed market for the farmers

produce, reducing transaction costs and training the farmers in better and sustainable

farming practices. This initiative results in higher income and upgrading of skills for the

farmers, and reduced spoilage of produce (up to 35 percent) and better quality products f

or Reliance retail stores.

3) Reliance retail has adopted farm to fork theory which means it is procuring directly

from the farmers thus offering them quite reasonable prices for their produce as now no

intermediaries are involved. In return Reliance is giving farmers information about how

can farmers improve their productivity. They have centers in villages who apart from

providing information make farmers aware of market rates of different crops so that

farmers can choose crops they want to sow to become profitable. Farmers are provided

technical help as well like information about quality of seeds and fertilizers.

Major players in retail sector:

Shoppers Stop

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Shoppers Stop is the pioneer of pan-nation one-stop retail outlets. Starting in 1991 with a

single store in Mumbai, it has now developed more than 20 stores (total retail space

crossed the 1 m mark in the second quarter of FY07). The company has added 1,568,479

sq ft of area during the year taking its total store area to 1,170,548 as on March 2007.

The company has a wholly owned subsidiary Crossword a specialty retail chain with

over 32 stores spread across the country. This store specialises in books, gift articles and

stationery. During the quarter, Crossword opened its first store and 2 Stop & Go stores

at the Mumbai domestic airport. Further, it forayed into airport retailing through a joint

venture with The Nuance Group AG of Switzerland.

The company has also made an entry into the entertainment sector by acquiring 45%

stake in Time zone Entertainment Pvt. Ltd. The recent moves by the company will widen

the offering and de-risk its dependence on the flagship Shoppers Stop stores.

Big Bazaar

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Incorporated in 1987, Pantaloon Retail is among the pioneers in chain retailing. It is the

largest retailer in the country operating 350 stores across segments in over 40 cities across

the country and constituting 5 m square feet of retail space. Starting out with dedicated

apparel stores (Pantaloon), the company has stores across the cross-section of the society.

The companys business is broadly divided into 2 segments, Lifestyle and Value retailing.

On the apparels front it has Pantaloon (31 departmental stores), Central Malls (4 seamless

malls as well as its other concepts). These stores can be classified under Lifestyle

Retailing. On the general merchandise front it has Big Bazaar (51hypermarkets), Food

Bazaar (77 supermarkets) and Fashion Station (5 fashion stores) and other delivery

formats. These fall under Value Retailing.

MORE

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The more.Chain of supermarkets, are bright and clean stores, at convenient locations with

layouts that allow ease of navigation. The product display is well organised and facilitates

ease of choice. The stores have been designed by Fitch, the leading international retail

design firm.

The stores promise a range of benefits to consumers and are a solution to the many

problems faced by housewives while shopping for their daily needs. The retail offering

from the Aditya Birla Group, has been crafted after in-depth research of the needs and

expectations of the Indian consumers. more. is the answer to the shopping needs of the

Indian housewife who wants a modern and convenient option in her neighbourhood, with

an attractive and consistent range of products? more. assures consumers the security of

knowing that they are paying the best price in the market for good quality products.

RPG Group

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RPG Enterprises is one of Indias largest business conglomerates, with a turnover of US$

2.55 bn and assets worth US$ 1.8 billion. Since its inception in1979, RPG Enterprises has

been one of the fastest growing groups in India with more than 20 companies operating

successfully in 7 business sectors: Retail, IT & Communications, Entertainment, Power,

Transmission, Tyres and Life Sciences. In 2001, it established Giant Hypermarket

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Provogue (India) Ltd., (PIL) formerly Acme Clothing Pvt. Ltd was incorporated in

November 1997, converted in to a public limited company in March 2005. It deals with

fabrics, dyestuffs, chemicals and textile machinery. PIL operates in two core industry

segments. The first being designing, manufacturing and selling branded ready-made

garments and other accessories under the brand 'Provogue'. The second business is export

of finished fabrics, dyestuffs, chemicals and textile machinery to several markets in

African continent.

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DATA ANALYSIS

&

INTERPRETATION

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1. Shop Turnover (Sales per Annum).

PARTICULARS RESPONDENTS PERCENTAGE

Below 1 lakh 12 37.5

1lakh -5 lakh 10 31.25

Above 5 lakh 10 31.25

TOTAL 32 100

Table-1

Graph 1

Interpretation:The above table shows most of the respondents i.e small vendors have

their capital as below 1 lakh Rupees. Others have a capital of above 1 lakh Rupees.

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2. Is your shop near too any Big Super Mall?

S.NO PARTICULARS %

1 24 Yes2 8 No

3 32 May be

Table-2

Graph-2

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Interpretation: Above table shows that the small vendors are mostly located near to the

big Super malls. Only few are away from the super malls.

3. In your opinion are there competitors for you?

PARTICULARS NO.OF RESPONDS %

Yes 28 87.5

N0 4 12.5

Total 32 100

Table-3

Graph-3

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Interpretation: Most of the respondents feel that these super malls are competition for

them i.e., 87.5 % feel this.

4. People from which income group are your customers?

PARTICULARS NO OF RESPONDS %

Low income 6 18.75

Middle income 26 81.25

High income - -

Total 32 100

Table-4

Graph-4

Interpretation: Most of the vendors have customers in the middle income groups. They

dont have any customer from high income group

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5. Why you think the customers prefer your shop than big malls?


Nearness to house 6 18.75

First delivery 6 18.75

Last price 12 32.50

Habituated for years 8 25

Total 32 100

Table-5

Graph-5

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Interpretation: Customers often visit the small vendors as they find the prices low with

small vendors. Some are habituated to the vendors from a long time.

6. How do you attract the customers?

Table-6

44

PARTIULARS NO OF RESPONDS %

OFFERING FREE GIFTS - -

GIFT COUPONS - -

DISCOUNTS 20 62.5

BARGAINING 12 37.5

TOTAL 32 100


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Graph-6

Interpretation: Small vendors attract the customers mostly by giving them discounts

and some times they allow bargain prices

7. What do you think customers prefer in big malls?

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Package - -

Low price 4 12.5

Availability 6 18.75

Quality 22 68.75

Total 32 100

Table-7

Graph-7

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Interpretation: Most of the small vendors think that often customers go to big malls as

they find high quality with the goods.

8. What do you think you must improve to get good no. of customers?


New package 2 6.25

Door delivery - -

Quality improvement 26 81.25

Less price 4 12.5

Total 32 100

Table-8

Graph-8

Interpretation: Small vendors think that most of their customers are not coming to

their shops as they dont find quality in their shops.

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9. Do you think people slowly changing from small vendors to big malls?


YES 30 93.75

NO 2 6.25

TOTAL 32 100

Table-9

Graph-9

Interpretation: Small vendors think that customers slowly changing their attitude to buy

their goods from big super malls.

10. If yes what percentage of customers are changing slowly?

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10-20 2 6.25

20-30 10 56.2530-40 12 37.5

MORE THEN 4O - -

TOTAL 32 100

Table-10

Graph-10

Interpretation: According to the opinion of small vendors customers 10-20 percent

changing from small vendors to big super malls.

11. Do you feel there is high competition for you from big Malls?

PARTICULARS NO OF RSPONDS %

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Yes 2 6.25

No 30 93.25

Total 32 100

Table-11

Graph-11

Interpretation: According to the opinion of small vendors customers they feel that they

face a lot of competition from the big vendors

12. How do you feel about the loyalty of your customers?


More loyality 6 18.75

Less loyality 8 25

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Avg 18 56.25

Total 32 100

Table-12

Table-12

Interpretation: According to the opinion of small vendors customers they feel that they

are not really sure about the loyalty.

13.Do you feel the degree of loyalty is changing now a day from your

shop to big malls?


Yes 32 100

No - -

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Total 32 100

Table-13

Graph-13

Interpretation: According to the opinion of small vendors customers they feel

that the degree of the customers is changing.

14. If change how much % change you find?


20-30 20 62.5

30-50 12 32.5

Above 50 - -

Total 32 100

Table-14

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Graph-14

Interpretation: According to the opinion of small vendors customers they feel that the

degree of the customers changing is very high.

15.To sustain your customers what steps you take in future?

Particulars No of Responds %

Improving Quality

Offering Discounts

Free door delivery

Any Others

24

6

-

2

75.00 %

18.75%

-

6.25%

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Total 32 100%

Table-15

Graph-15

Interpretation: According to the opinion of small vendors customers they feel that

improving quality will be a measure that would sustain the customers.

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16.What type of changes you want to make in you shop to hold to your customers?


Decorating Shop

Changing Package

Bringing no.of items

2

6

24

6.25 %

18.75%

75.00%

Total 32 100%Table-16

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Graph-16

Interpretation: According to the opinion of small vendors customers they feel that

decorating shops will be one measure that can retain the customers.

17.Do you feel the profits you earn are sufficient?


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Yes 12 37.5%

No 20 62.5%


Graph-17

Interpretation: According to the opinion of small vendors customers they feel that the

profits they are not sufficient

18.What type of inventory you will maintain?


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High

Low

Average

_

32

_

_

100%

_

Total 32 100%

Table-18

Graph-18

Interpretation: According to the opinion of small vendors customers they will maintain

low inventory.

19.Are providing any customer services?


Yes 6 20%No 8 31.26%

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Some Times 16 53.33%

Total 32 100%

Table-19

Graph-19

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Interpretation: According to the opinion of small vendors customers they sometimes

provide customer service.

20.If yes what type of services you will provide?


Servicing

Delivery

Others

18

10

4

56.25 %

31.25%

12.5%

Total 32 100%

Table-20

Graph-20

Interpretation: According to the opinion of small vendors customers they sometimes provide

servicing to the products of their customers.

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21.How many customers daily visit your shop?


300

500

More than 500

6

18

8

18.75 %

56.25%

25%


Graph-21

Interpretation: According to the opinion of small vendors customers they feel that aroud

500 customers visit their shop.

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22.What type of products customer will prefer?


Low price low quality

Low price high quality

High price High quality

_

26

6

_

81.25%

18.25%

Total 32 100%

Table-22

Graph-22

Interpretation: According to the opinion of small vendors customers feel that their

customers prefer low price, high quality items.

23.What is the customers perception your shop?

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VERY GOOD

GOOD

BAD

2

16

14

6.25 %

50.00%

43.25%

Total 32 100%

Table-23

Graph-23

Interpretation: According to the opinion of small vendors customers feel that their

customers have a good opinion on their shop.

24.Are you satisfied your shop rents and advances?

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YES

NO

12

20

37.5 %

62.5%

Total 32 100%

Table-24

Graph-24

Interpretation: According to the opinion of small vendors customers feel that they are

not happy with the rents and advances provided.

25.What type of prices you will maintain?

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Fixed prices

Bargaining

MRP Prices

--

18

14

_

56.25%

43.75%

Total 32 100%

Table-25

Graph-25

Interpretation: According to the opinion of small vendors customers feel that they

depend on bargaining and are flexible in terms to pricing

FINDINGS

1. According to the opinion of small vendors customers 10-20 percent changing from

small vendors to big super malls.

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2. Small vendors think that customers slowly changing their attitude to buy their goods

from big super malls.

3. Small vendors think that most of their customers are not coming to their shops as they

dont find quality in their shops.

4. Most of the small vendors think that often customers go to big malls as They find high

quality with the goods.

5. Small vendors attract the customers mostly by giving them discounts and some

Times they allow bargain prices.

6. Customers often visit the small vendors as they find the prices low with


7. Customers often visit the small vendors as they find the prices low with


8. The above table shows most of the respondents i.e small vendors have ther capital as

below 1 lakh Rupees. Others have a capital of above 1 lakh Rupees.

SUGGESTION

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This project work has been undertaken to study the impact of Big super malls on small

vendors. During this project work the above facts have been identified and we can

suggest the small vendors as follows.

1. Most of the small vendors feeling very competitive towards big super

malls. Therefore they have to do something in a way to cut the

competition.

2. As the small vendors are feeling that they are not giving their customers

the required quality , they should try to improve the quality of their goods.

3. As the small vendors feel that they are selling goods of inferior quality

because of the less capitals, they should increase their capitals so that they

can attract the customers more.

4. Small vendors should also try to decorate their shops in such a way that

they attract more no. of buyers.

5. As the Number of customers turning from small vendors to big super

malls is now very less, this is the right time to concentrate on various

strategies to stop the customers from going to big malls.

CONCLUSION

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Now days super malls are becoming a great attraction for the customers for purchasing

goods. Retail Marketing is increasing day by day and most of the small vendors are

finding cut throat competition from these big super malls. Retail Marketing has many

advantages for a customer than a small vendor where a customer finds all the goods he

require to run the house from a same shop. Where a small vendor can supply only few

varieties of goods .If at all the small vendors try to improve the quality of the goods they

can atleast reduce the degree of competition.

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BIBLIOGRAPHY

BIBLIOGRAPHY

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Book References:

1. Marketing management philip kotler

2. Marketing management- ramaswami namakumari

3. Marketing research green and tulk, gc.berry

4. Indian journal of marketing,January

Web References

1. www.google.com

2. www.indianretaining.com

3. www.indianmarketing.com
http://www.google.com/http://www.indianretaining.com/http://www.indianmarketing.com/http://www.google.com/http://www.indianretaining.com/http://www.indianmarketing.com/

a study on impact of big malls on sm,all vendors---reliance retail

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