dissertation project on “marketing strategy of v-mart and vishal mega mart :- a comparative...

DISSERTATION PROJECT REPORT ON

“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A

COMPARATIVE STUDY”

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

2014-2016

Under The Guidance Of- Submitted By-

Dr.Adeel Maqbool Amaan Khan, MBA- IV Sem

(ASSOCIATE PROF.) (Integral University, Lucknow)

DEPT.OF BUSINESS MANAGEMENT

Department of Business Management

Faculty of Management & Research

INTEGRAL UNIVERSITY, KURSI ROAD, LUCKNOW

“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

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2.Declaration

I hereby declare that study of

“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :-

A COMPARATIVE STUDY” has been exclusively done by me for the degree

of MASTER OF BUSINESS ADMINISTRATION and not for any other

degree.this is my own study done under the guidance of DR.ADEEL

MAQBOOL (ASSOCIATE PROF.) INTEGRAL UNIVERSITY,LUCKNOW.

I hereby declare that

the contents of this report are true and best to my knowledge.

AMAAN KHAN

(1400101151)


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3. ACKNOWLEDGEMENT

A research studies cannot be completed without the guidance, inspiration and cooperation

from the various quarter. This study also is the imprints of many persons.

I would like to express my

gratitude to Dr.Adeel Maqbool, my project guide for his kind mentorship and guidance in

assisting me with my project. His academic inputs provided me insights that were

invaluable for completing this project.

I wish to express my deep gratitude and sincere thanks to “V-MART and VISHAL MEGA

MART ” for providing me their precious time to collect various kinds of information.

AMAAN KHAN

(1400101151)


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4. EXECUTIVE SUMMARY

V-MART is a chain of shopping malls in India. V-MART are one of the pioneers in setting

up stores across various small Indian towns and cities including

Sultanpur,Ujjain.Faizabad.V-MART primarily operate in Tier-II and Tier-III cities, with a

chain of “value retail” departmental stores offering apparels, general merchandise and

kirana, catering to the entire family.

V-MART have established stores in Metro, Tier-I, Tier-II and Tier-III

cities which are primarily located as standalone stores in high-street areas and shopping

hubs of such cities. The average size of our store is approximately 8,000 Sq. Ft. V-MART

follows the concept of “value retailing” to target the strata of the population belonging to

the expanding “aspiring class” and “middle class” based on our customer’s socio-

economic conditions, purchasing power, demographic details and customer trends.

Vishal Mega Mart is India’s largest Fashion-led

hypermarket chain with a footprint of over 175 stores, cumulative trading area in excess of

3 million square feet, in over 110 cities and towns across India.Vishal is sharply focused at

the needs of consumers in Apparel, General Merchandise, Grocery and Personal Care in

Tier-1, Tier-2 and Tier-3 cities and towns and is dedicated to offer the best value and

choice to its millions of customers.

The title of the project is “ MARKETING STRATEGY OF V-MART AND VISHAL

MEGA MART :- A COMPARATIVE STUDY”. The purpose of the study is how V-MART

and Vishal Mega Mart adapt and implement the different marketing strategies according

to the customer preference keeping in mind. The type of research design used here was

Exploratory research and sampling procedure that was followed was Simple random

sampling The total sample size is 100 respondents across all the ages, income category,

occupation and gender. Bar charts and other useful tools are used for the analysis of the

study.


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5 .GUIDE CERTIFICATE

This is to certify that the project report entitled “MARKETING STRATEGY OF V-MART AND VISHAL

MEGA MART :- A COMPARATIVE STUDY”” submitted for the degree of MBA to Integral University

Lucknow is a benefited research work carried by Amaan Khan, student of Integral

University,Lucknow.

This assistance and help received during the investigation

have been fully acknowledged.

DR.ADEEL MAQBOOL

(ASSOCIATE PROF.)

FACULTY OF MANAGEMENT & RESEARCH

INTEGRAL UNIVERSITY, LUCKNOW


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6.CONTENTS

S. NO. TOPIC PAGE NO.

1. TITLE PAGE

2. DECLARATION

3. ACKNOWLEDGEMENT

4. EXECUTIVE SUMMARY

5. GUIDE CERTIFICATE

6. CONTENTS

7. CHAPTER -1

7. INTRODUCTION 8

7.1BRIEF PROFILE OF THE

V-MART

9-16

7.2 VISION AND MISSION 17

7.3 ORGANIZATIONAL CHART 18

7.4. DETAILS OF V-MART

PRODUCT

19-20

7.5. CORPORATE STRATEGY AS

REGARDS TO MARKETING

21

7.6 MARKETING STRATEGY OF V-

MART

22-25

7.7 SALES PROMOTION

TECHNIQUES ADOPTED BY V-

MART

26-29

7.8 SWOT ANALYSIS 30-31

7.9 OVERVIEW OF VISHAL MEGA

MART

32-34

7.10 MANAGEMENT ANIZATION

STRUCTURE

35-36


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7.11 VISHAL PRODUCTS 37

7.12 VISION AND MISSION 38-42

7.13 PRODUCTS OF VISHAL MEGA

MART

43-48

7.14 MARKETING STRATEGY OF

VISHAL MEGA MART

49-52

7.15 SALES PROMOTION

TECHNIQUES ADOPTED BY

VISHAL MEGA MART

53-54

7.16 SWOT ANALYSIS 55-56

7.17 E - COMMERCE 57-59

8. CHAPTER 2 60

8. RESEARCH METHODOLOGY 61-63

8.1 OBJECTIVE OF RESEARCH 64

8.2 RESEACH METHODOLOGY 65

9. CHAPTER 3 66

9.1 DATA

ANALYSIS/INTERPRETATION.

67-75

9.2.FINDINGS. 76

9.3. CONCLUSION 77

9.4 SUGGESTIONS. 78

9.5 LIMITATIONS. 79

10. BIBLIOGRAPHY

80

11. ANNEXURE 81-83


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CHAPTER -1

INTRODUCTION


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7.1 BRIEF PROFILE OF COMPANY

V-MART PVT LTD

V-MART

Type Hypermarket

Founded 2002

Maiden store Ahmedabad

Industry Retail

Products Apparels, Non Apparels,

Department, Grocery store

Key People LALIT AGARWAL,

Madan Agarwal,

Hemant Agarwal

Punchline ‘Sabse sasta,Sabse Acha’

Retail Space 8.20 Thousand Sq Mtr

Advantage tier II & tier III cities

Currently 108 outlets


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V-Mart is a complete family fashion store that provides its customers true value for their

money.

V-MART offer V-MART customers a great shopping experience each time they visit V-

Mart store by offering a vast range of products under one roof. Maintaining high

standards in quality and design, V-Mart offers fashion garments at down-to-earth prices

and over a period of time has emerged as the destination of choice for bargain hunters and

the fashionable alike.

V-MART primarily operate in tier II & tier III cities with the chain of “Value Retail”

departmental stores. V-MART stores cater to the needs of the entire family altogether by

offering apparels, general merchandise and kirana goods.

“Price Less Fashion” is the main motto

through which we believe in providing the latest trends to the upwardly mobile Indians at

the best possible price.


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V-MART have 108 stores across 91 cities in 12 states and

union territories,with a total retail area of 8.63 Lac sq.ft (7.74 Thousand Sq Mtr.).V-MART

stores are located in prime states/cities such as Bihar, Chandigarh, Gujarat, Haryana,

Jammu and Kashmir, Madhya Pradesh, New Delhi, Punjab, Rajasthan, Uttarakhand and

Uttar Pradesh. V-MART are among the pioneers in setting up modern ambiance stores or

large retail malls across various small towns and cities like including Sultanpur, Ujjain,

Motihari, Faizabad and more.


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i. ORIGIN OF V-MART

First incorporated as Varin Commercial Private Limited

under the Companies Act in 2002 in West Bengal. Then in 2003, we opened V-MART

maiden store in Ahmadabad (Gujarat).

In the Year 2004 we have opened V-MART first store in capital city, New Delhi.

Further in 2006 V-MART have crossed 1 lac sq.ft. retail space and subsequently renamed

to V-Mart Retail Private Limited.

In the year of 2008, V-MART hit the base by registering V-Mart Retail as a public limited

entity and also crossed the turnover of 1,000 million Rs. As the time passes by we took the

shape of a renowned family brand that caters the needs of whole family by offering high

quality retail products.

Along with growing customers, we achieved a turnover of over Rs 2,000 million in 2011-12

In the Year 2012 V-MART have crossed the retail space of 5 lac Sq. Ft.

2013 - V-Mart Retail Ltd has opened a new store located at F.D.R.A Plaza, Opp. Sanjay

Cinema, Malipur Road, Shahzadpur, Akbarpur, Uttar Pradesh. -V Mart Retail has opened

86th Store at Jhansi, Uttar Pradesh. -V Mart Retail has opened 65th Store at Varansi,

Uttar Pradesh. -V Mart Retail Opening its 84th Store at Fatehpur, Uttar Pradesh.

2014 -V Mart Retail has Opened 92nd Store at Patna City, Bihar. V-Mart Retail has

opened 97th Store at Ranchi, Jharkhand.


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V-MART Business Verticals

V-MART business can be classified in three business verticals:

(i) Apparels,

(ii) General Merchandise, and

(iii) Kirana Bazaar.

V-MART stores are “Mini Hyper Stores” retailing apparels,

general merchandise as well as kirana and “Family Fashion Stores” which are focused on

apparels and general merchandise. V-MART business verticals are further divided as

follows:


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V-MART apparels business vertical includes the following

divisions: apparels and accessories for :

men,

women,

boys

girls

infants.

V-MART general merchandise business vertical includes the following divisions: Non-

Apparels and Home Mart. The Non-Apparel division has the following segments:

footwear

books

stationery

toys

games

purses

clutches

fashion jewellery

bags

luggage.

The Home Mart division consists of the following segments :

home furnishing,

kitchenware,

crockery

gifts and novelties.

V-MART Kirana Bazaar business vertical, includes the following segments:

FMCG products,

Packaged food items,


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Beauty and

Personal care,

Home care

V-MART business is based on the primary concept of “value retailing” and guided by V-

MART principles “Sabse Sasta Sabse Accha” and “Price Less Fashion”, following which v-

mart aim to provide the latest fashion trends in apparels and non apparels to the entire

family with an added focus on demands of the youth and Young Families. As a complete

family departmental store, we also retail a wide range of products at affordable prices

through V-MART Kirana Bazaar vertical.V-MART source its products, including private

labels, directly from the regions where such products are widely

available or manufactured, to minimize V-MART procurement costs and offer quality

products at such costs. V-MART

strong sourcing capability is backed by an efficient logistics network, which is supported by

strong IT

infrastructure, systems and processes, thus enabling us in achieving V-MART concept of

“value retailing”.


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V-MART journey

over the years

• Incorporated as Varin Commercial Private Limited2002

• Opened its maiden store in the state of Gujarat2003

• Opened its maiden store inNew Delhi2004

• Changed name from Varin Commercial Private Limited to V-Mart RetailPrivate Limited.

• Crossed an aggregateof 100,000 square feet ofretail space.2006

• Converted into a public limited company.

• Investment in Equity Shares by Naman Finance, a part of the Aditya Birla Group.

• Investment by DB Corp Limited2008

• Achieved a turnover of over H2,000 million inFiscal 2011.

• Declared a dividend of 4 per cent for Fiscal 2011.2011• Declared a dividend of 4 per cent for fiscal 2012.

• Stores extended to more than 50 cities. 153,252 ESOPs were granted under the V-Mart ESOP Scheme 2012.

• Crossed 500,000 square feet in retail space.

2012• Pre-IPO placement of 12,50,000 Equity Shares.

•Public Issue of 44,96,000 Equity Shares.

•Public issue oversubscribed 1.2 times.

•Attracted marquee institutional and HNI investors. Declared dividend of 10 per cent.

2013•Opened 23 new stores in FY 13-14 with the retail space of 1.90 lac square feet.

•Strengthened supply chain, capability building and investment in infrastructure.

•Footfall increased by 31.58%, from 115.29 lac to 151.70 lac in 2013-14

2014


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7.2. VISION /MISSION OF COMPANY

Vision statement of V-MART

“Create value and make our ecosystem proud”

To uphold and contribute to the realization of a sustainable society by balancing our

business activities with nature using the resources we have in making a real and

sustainable difference. 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.

Mission statement of V-MART

• Care for customer aspirations

• Discover and nurture talent

• Sustain ethical growth

• Harness vendor relationships

We shall deliver everything, everywhere, every time for

every Consumer in the most profitable manner.


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7.3. ORGANIZATIONAL CHART


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7.4. DETAILS OF V-MART PRODUCT


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7.5. CORPORATE STRATEGY AS REGARDS TO MARKETING

PROMOTION STRATEGIES

Sales promotion and advertisements are the two promotional strategies which V-MART

adopts. Prices of every goods are shown during any promotion session to aware the

customer about the market price and V-MART offered prices

Some of the examples of the sales promotion adopted by V-MART are:

Price-off offer:

Discounts offer

Offer on bulk purchase

Buy 2 get 1 free offers.

Festive offers.


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7.6 MARKETING STRATEGY OF V-MART

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.

V-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.

The various marketing strategies adopted by V-Mart are:

Regional cluster based expansion and penetration

(a) Enhancing brand visibility

(b) Understanding customer preferences

(c) Better utilization of human resources

(d) Effective implementation of marketing activities

PROMOTIONAL EVENTS –Free eye checkup ,blood donation campaign.

Dedicated focus towards increasing same store sales growth.

Cross promotion through “Intelligent Marketing”

Increase in customer loyalty.

Continue to invest in IT infrastructure.

Foray into e-commerce and start our online retail portal.

Continue to provide training to our employees and invest in human capital.


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Hiring people with disability by joining hand with SARTAK.

The various marketing strategies adopted by V- Mart are:

Product

V- Mart offers a wide range of products which starts from apparels to food items, footwear to

home furnishing, , child care products to toys, watches, drinks etc. 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, V-

Mart believe retailing of FMCG products will bring customers to their stores on a frequent

basis and this mayin-turn lead to consumption of their apparels. V-Mart have a number of

labels for apparels such as

Price

V- Mart promises its consumers the lowest available price. The concept of psychologic-al

discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. V- Mart also caters on Special

Event Pricing (Close to Diwali, Christmas, and 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. The efforts of V-Mart retail business are targeted

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

“middle” income groups. V-Mart 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


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other products, the prices may vary between stores on account of state-specific taxation and

vendor policies.

Place

V-Mart stores are located in 92 cities in 108 outlets. V-MART has presence in almost all the

major Indian cities. They are aggressive on their expansion plans. V-MART 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. V-Mart advertisements

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

sometime road-side

billboards.Mart category management system is used to plan promotional schemes. They laun

ch promotional schemes weekly. Apart from general sales promotion, the category manager fo

rmulates promotional plans for ‘slow movers’. In addition, to promote sales, they focus on

layout of the stores and positioning, presentation and display of merchandise, in order to

appeal to the customer

People

V-Mart Retail has been established by Mr. LALIT AGARWAL, a first generation

entrepreneur.. The salient features of staff of VM 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 staffs 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. VM


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

improves the overall appearance of store.

Process

VM adopted the business model 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.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.


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7.7 SALES PROMOTION TECHNIQUES ADOPTED BY V-MART

1. Price-off offer:

Under this offer, products are sold at a price lower than the original price. This type of

scheme is designed to boost up sales in off-season and sometimes while introducing a new

product in the market.

Example:

· Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T shirt).

· Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt).

· Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP: Rs. 299/T-shirt).

· Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 1 woman top and get Rs. 100/- off on the bottoms.


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2. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on the

original price. This type of scheme is designed to boost up sales in off-season.

Example:

· 30% off on all the men formal shirts and trousers.

· 30 % off on all the women formals and casual outfits.

. discount on purchase of goods in bulk.

3.New Year offers:

V- Mart offers gifts for purchases that are make at the store during the New Year for

cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set for Rs. 249


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only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package for a couple

on an International cruise.

4.End of season sale:

End of Season sale or stock Clearance sale is been conducted atV-MART. They are offering

surprising discounts as if you buy 2 any items of garments and you will get 3 more with

your choice absolutely free. These offers are given as celebration of New Year.

5.Festival offers:

V- Mart have come up with festive offer during Diwali and Christmas by giving away gifts

for purchases that are made at the store for cheaper price. If you shop for Rs. 4500 you get

a Trolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs. 2400 and above you get a

lemon set, which is said to be imported, worth Rs. 649 for Rs. 99 only.


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6.Seasonal offers:

V- Mart provides the customers with various discounts and price-off offers at the stores

and factory outlets on the seasons like winter and monsoon. This type of scheme is designed

to boost up sales in these seasons.

7.Discount Coupons:

V- Mart offers 25% discount on its large range of apparels. The coupon is valid for limited

period. This coupon is valid for 25% off on any product purchased above the decided

range.

8.Gift Vouchers:

V- mart Fresh Fashion offers many vouchers ranging different denominations like Rs100,

Rs.250, Rs.1000 and Rs.2000. These vouchers are exchangeable with the products by the

customers at all the V- Mart showrooms in India. The vouchers are a better option rather

than gifts for the employees and customers as they are not bound for a particular thing to

accept.


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7.8 SWOT ANALYSIS

Strength:

High Brand Equity in evolving retails markets.

POP to increase the purchase.

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

Understanding of the ‘value retail’ segment.

Garment sector of the V-Mart is much more superior to other retail stores.

It segments on middle and lower middle income groups.

Weakness:


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Unable to meet store opening target so far.

Falling revenue per square feet.

Employees behavior is not professional.

Daily customers footfall is very less around 200 to 300 average.

Inexperienced and unskilled management team except managers.

Supply chain management is quite slow.

No brand awareness for the product.

Lack of proper extraction of work from staff.

Need to include more assortment & varieties of the same item.

Need to provide more offers/ discounts on FMCG in comparison of Big bazaar, Reliance

Fresh, Easyday & Vishal Mega mart.

Need to improve store layout according to customer facility.

Opportunity:

Increasing customer satisfaction and our base of loyal customers

Emphasis on Backward Integration.

Expansion of FMCG.

Continue to upgrade information technology systems and processes

Continue to train employees and seek entrepreneurship from employees.

To increase the customer satisfaction by providing different variety of products.

Threat:

Global big players planning to foray into market.

Government policies are not well-defined in India.

Unorganized retail market of India.

Independent small stores.

Demographic Changes.

Vishal Mega Mart, Reliance fresh, Easy day & Big-Bazaar.

Overseas group entering the market.

Increased competition in the domestic market.


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7.9 OVERVIEW OF VISHAL MEGA MART

V I S H A L

VALUE INCREASE SHIPPING HYPERMARKET AFFORDABLE LOW PRICE

PUNCHLINE:-

ABOUT THE ORGANISATION

Vishal Retail Ltd, is one of the leading player in the Indian retail industry, is a lead the way in

discount retailing and is focused on tier II and III cities in the country. It has a strong presence

in manufacturing and retailing of readymade garments (apparels) retailing of non-apparels

and a large variety of FMCG products. Vishal Mega Mart is India’s largest Fashion-led

hypermarket chain with a footprint of over 175 stores, cumulative trading area in excess of 3

million square feet, in over 110 cities and towns across India.

Vishal is sharply focused at the needs of consumers in Apparel, General Merchandise, Grocery

and Personal Care in Tier-1, Tier-2 and Tier-3 cities and towns and is dedicated to offer the

best value and choice to its millions of customers.

Vishal offers clearly differentiated value to customers in the following product categories:

Fashion: Fresh, trendy and affordable fashion comprising latest Apparel, Footwear

& Lifestyle accessories collection across Men’s, Women’s & Kid’s.

General Merchandise: Catering to all the household needs such as Kitchen-ware,

Home Furnishings, Luggage & Travel Accessories, Home/Kitchen Appliances, Toys

& Sports etc. at best prices


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Grocery and Household Needs: Catering to all daily needs with an extensive

Grocery & Staples, Packed Food, Branded Personal Care and Household Needs

products

Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is

today a conglomerate encompassing 117 showrooms in 75 cities / 20 states. India’s first hyper-

market has also been opened for the Indian consumer by Vishal. Situated in the national

capital Delhi this store boasts of the single largest collection of goods and commodities sold

under one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under

the dynamic leadership of Mr. Ram Chandra Agarwal. The group had of turnover Rs 2884.43

million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007. The turnover of the company for

09-10 was Rs.1105 crore. The group’s prime focus is on retailing. The Vishal stores offer

affordable family fashion at prices to suit every pocket.

CORPORATE PROFILE

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700

imported machines that have a capacity to manufacturer 150000 pieces a month. The factory

occupies 80000 sq ft of covered space. The Vishal group indirectly gives employment to more

than a 1000 people. These people work in Ancillaries that supply finished goods to the

company. Vishal’s 10 ware houses cater to 51 showrooms in 39 cities. It is covering about

1282000 sq. ft. in 18 states across India. Our loyalty programmes gives the Indian consumer

of being rewarded every time he/she makes a purchase at any of its stores anywhere in the

country. Consumers can make purchases at any store and accumulate points at a central level.

These points are redeemable at any of our stores. One can accumulate points even when a

purchase is made while traveling and can redeem points at any store. So no matter where

you are in India you can partake the our loyalty programme.

Some of the key features of retailing include:

Selling directly to customers without 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


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Recognized by their service levels

Fitting any size and or location

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 face direct 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.

ORG


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7.10 MANAGEMENT ANIZATION STRUCTURE

R.C.Agarwal

Chairman &

Managing Director

Board of Directors

Category Heads

Merchandise

Head

S.K.Agarwal

Whole-time Director

Heads - ZonalHead-Supply Chain

Management

Head- Retail

Chief Operating

Officer

Head – Legal &

SecretarialHead – IT

Head-Admin & HRHead-Finance,

Accounts & MIS


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THE FOUNDERS:-

Mr. Ramchandra Mrs. Uma Mr. Surendra

Agarwal Agarwal Agarwal

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.


37

7.11 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.

THE POPULAR BRANDS OF VISHAL MEGA MART 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 : Men’s Shirts, T-Shirts, Under Garments.


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7.12 VISION AND MISSION

MISSION STATEMENT:-

We shall deliver everything, everywhere, every time for every Consumer in the most profitable

manner.

VISION STATEMENT:-

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.


39

MANAGEMENT OF TECHNOLOGY, INNOVATION AND CHANGE

Technology is important to cut costs, improve efficiency, providing value to customers and

increasing the customer experience. IT solutions help in synchronizing activities across various

verticals such as procurement of inventory. Securities from both external and internal threats

are also important when the scale of the operations increases. Most of their critical functions

such as Supply Chain, Operations, Finance & Accounts, and Customer Loyalty Program &

Human Resources are linked through a computer network. This has enabled them to reduce

their time to market and respond to the changing customer requirements. This has also helped

them reduce their costs of operations through both, reduction in wastages and missed

opportunities as well as a consequent reduction of the overall costs of operations.

VRPL are focused on acquisition and implementation of advanced information technology

systems, processes and business applications in order to handle all store operations including

inventory management and billing. VRPL office processes are also computerized which

support procurement, supply chain logistics, distribution centers management and inventory

control. All the locations are connected through company-wide virtual network connection

which helps to efficiently manage their network of outlets throughout the country.

VRPL believe that their business requires efficient management and storage of data and

information to utilise for business analysis, research and forecast. Based on VRPL’s existing

information technology systems, they are able to generate detailed daily reports covering the

various aspects of their business such as division wise sales per store, inventory movement and

position at stores and distribution centers and generation of purchase and delivery orders.

In August 2005, VRPL had entered into a software end-user license agreement with Systems,

Applications and Products in Data Processing Private Limited (“SAP India”) for grant of a

non-exclusive and perpetual license to VRPL to use the SAP software, documentation and

other information related thereto. SAP for Retail provides an integrated technology platform

for retailers and a one point solution for supporting and managing different business models

such as owned stores, franchise stores, shop n shop concepts. Strong business decision and

analytical capabilities have enabled retailers of all sizes the power to make the right decisions

quickly and profitably.


40

Beginning with a computerized cash memo, to use FoxPro for operations & accounting and,

implementation of a complete ERP from JDA (J. D. Armstrong Software Group), they have

gradually extended the Use of technology in their various areas of operations. In order to

increase the speed and traceability to the supply chain management Vishal Mega Mart

introduces Bar Code Technology. Bar code is tried and tested technology—the “no-brainer”

choice for identifying items in the supply chain. Yes, it does have short comings in that

applying it means that everything has to be in line of sight because light is used to capture and

read the bar code. But as goods are handled either by humans or machines, the goods are

always visible, as are their labels—labeling standards mean that it is virtually impossible to

not see the label and its bar code. This means that some form of scanner is used—the range of

available technology is broad—either by an operator wielding a hand-held device or by a

machine-mounted or fixed-position scanner.

Beyond the bar code is RFID (radio frequency identification) where a chip within a tag carries

information and is read using radio waves. Vishal Mega Mart uses the latest technology to

improve its performance Quality as well as Quantity Wise. Bar code scanners are very

sophisticated devices these days. Functionality and reliability is extremely important. Vishal

Mega Mart also uses CCTV to monitor its stores. Various CCTV’s are being installed in a

store, with a room where the entire functioning taking place in a store can be monitored by a

human operator.

VRPL have partly implemented their information technology set up and are currently in the

midst of completing the process of upgrading their information technology set up and have

entered into an agreement dated September 6, 2005 with Tata Consultancy Services Limited

for providing information technology services including implementation of more advanced

ERP applications such as SAP, rendering services inter alia for management information

system on reports related to stock management, receipt processing, picking and packing,

project systems, merchandise assortment management, pricing and promotion, sales,

controlling and financial accounting.


41

Management Information Systems (MIS)

They have strong MIS capabilities that make use of their technological investments to generate

valuable insight for them and help them in improving their operations, as well as in enhancing

their speed of response to what the customers want. They are thus able to monitor their

performance on a day-to-day basis, across stores, departments and product categories and

compare the same with other stores as well as across periods. This helps them take corrective

action on a timely basis, and optimize their stock. They are currently using Business Objects to

analyze data related to the buying trends of their loyalty customers.

Following are the table which shows the different software used by the organization in the

organization activities, for customer transaction & for employees working in the organization.

1. “JDA ERP” software

Functional Area:

Merchandising Buying,

product ordering, Receipt

confirmation, Stock

transfer, Inventory

Management, Sales

Merchandise event

Comments: JDA is one of the leading ERP systems used by many retailers for multiple

business models in regards to retailing. The system is fully integrated and takes care of the

supply chain from a manufacturer to the end customer by using back-end and front-end

systems like MMS (Merchandise Management System) & WinDSS (Windows Distributed

Stores Systems).

2. “Oracle Financial” software

Functional Area:

Financial Accounting


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Comments: Completely integrated with their retail ERP- MMS, allows them to get online

integrated financials.

3. “RAMCO HRMS” software

Functional Area:

Human Resources.

Comments: Their system supports Personnel Management, Payroll Management, Employee

Benefits Management, Training Management and Executive Information.

4. “WMS” software

Functional Area:

Distribution and Logistics.

Comments: WMS enable the space planning and also integrated SKU location which

enable faster picking and putting of merchandising.

5. “Arthur Planning” software

Functional Area:

Merchandising Planning.

Comments: An integrated planning and decision making tool.

6. “Microsoft Exchange” software

Functional Area:

Internal/External communication.

Comments: Enterprise wide mailing solution.


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7.13 PRODUCTS OF VISHAL MEGA MART

P R O D U C T S

FOODMART

Beverage

Cooked Indian

Cooked Chinese

Drinks

Fruits & Vegetables

FOOTWARE

Boys Girls

Shoes Slippers

Sandals Sandals

Ladies Men’s

Shoes Shoes

Slippers Slippers


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HOUSEHOLD

Acrylic Ware Copper Steel

Dinner Set Jug Cake Server

Glass Ware Thermo Ware Porcelain

Home Aids Pressure Cooker Non Stick

Floor Wiper Cooker Handi

Sanitary Brush Pressure Pan Dosa Tawa

Cup Tiffin Cup & Saucer

General Plastic Goods Electrical App. Bone China

Coffee Mug Chopper Soup Set

Bucket Microwave Oven Dessert Set

Lemon Set Container

LADIES ACCESSORIES

Personal Items Nail Polish Cosmetics

Cap(LCA) Necklace Lip Gloss

Socks(Las) Ring

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 Perfume/Deo

Belts Battery(ABT) Spray

Wallets Calculator(EEC) Deo


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GARMENTS

MEN

Upper Lower

Shirt Casual Jeans(MP)

Shirt Formal Cotton- Trouser(MPC)

Ethnic & Sports Winter Wear

Night Suits Suit(WMC)

T-Shirts Blazer (WMB)

Dupatta Windcheater

Sherwani Jacket

Upper Lower

Kurta Pants Jeans

Skirt Top Capri

Ethnic Winter Wear

Nighty Jackets Track Suit

Lancha Stawl Salwar Suit

Sharara Blazer

LADIES


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Upper Ethic

Shirt Formal Kurta Pyjama

T-shirt Sherwani

Lower Sets Winter Wear

Jeans Night Suit

Bermudas Baba Suit

Blazer Jacket

GIRLS

Lower Winter Wear

Hot Pant Hipster Set

Skirt Jacket

Upper Ethnic

Tops (GWT) Sharara Frock (GFK) Lancha

Garments Accessories

Hot Pant Bed Sheet

Frock Under Garments

Baba Suit Socks

BOYS

INFANTS


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HOME FURNISHING

Drawing Room Bedroom

Door Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

SPORTS & FITNESS

Indoor games Outdoor games

Basket Ball Cricket Bat

T.T. Bat Football

Boxing Kit Lawn Tennis

Swimming Costumes Tennis Racket

Water Ball Tennis Ball

Fitness Equipment. Personal Gym

STATIONERY

Paper Mart Exam Board Office File

Diary Clay Punching Machine

Party Stuff Balloons Ribbons


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TOYS & GAMES

Soft Toys Dolls Cycle & Scooters

Musical Toys Barbie Doll Cycles

Non-Musical Other Dolls Scooters

Board Games Infant Toys Video Games

Wooden Blocks Teether T.V. Video

Puzzles Swing hand Game

TRAVEL ACCESSORIES

Luggages Portfolio Bags

Suitcase Shoulder- Bags

Pouch & Cases Executive -Bag

Waist Pouch School Bags


49

7.14 MARKETING STRATEGY OF VISHAL MEGA MART

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.

The various marketing strategies adopted by Vishal Mega Mart are:

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 mayin-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.


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Price

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

ic-al discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart also caters

on Special Event Pricing (Close to Diwali, Christmas, and 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. 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. 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


51

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 inadverti

sement, and sometime road-side bill-boards.

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

otional 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 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

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 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 staffs is empowered to take innovative steps.-Multiple


52

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.

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.


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7.15 . SALES PROMOTION TECHNIQUES ADOPTED BY VISHAL MEGA MART

3. Price-off offer:

Under this offer, products are sold at a price lower than the original price. This type of scheme

is designed to boost up sales in off-season and sometimes while introducing a new product in

the market.

Example:

· Buy 2 men T-shirts at Rs. 599/- and 1 T-shirt at Rs. 399/- (MRP: Rs.399/T shirt).

· Buy 2 men T-shirts at Rs. 749/- and 1 T-shirt at Rs. 499/- (MRP: Rs.499/T-shirt).

· Buy 3 men round neck T-shirts for Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 2 men V neck T-shirts at Rs. 499/- and 1 T-shirt for Rs. 299/- (MRP: Rs. 299/T-shirt).

· Buy 3 women T-shirts at Rs. 399/- (MRP: Rs.199/T-shirt).

· Buy 1 woman top and get Rs. 100/- off on the bottoms.

4. Discounts:

Under this, the products are sold at a discounted price with percentage discounts on the

original price. This type of scheme is designed to boost up sales in off-season.

Example:

· 30% off on all the men formal shirts and trousers.

· 30 % off on all the women formals and casual outfits.

5. End of season sale:

End of Season sale or stock Clearance sale is been conducted at Vishal Mega Mart factory

outlets. They are offering surprising discounts as if you buy 2 any items of garments and you

will get 3 more with your choice absolutely free. These offers are given as celebration of New

Year.

6. Seasonal offers:

Vishal Mega Mart provides the customers with various discounts and price-off offers at the

stores and factory outlets on the seasons like winter and monsoon. This type of scheme is

designed to boost up sales in these seasons.


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7. Festival offers:

Vishal Mega Mart have come up with festive offer during Diwali and Christmas by giving

away gifts for purchases that are made at the store for cheaper price. If you shop for Rs. 4500

you get a Trolley bag worth Rs. 1299 for Rs. 149 only. If you shop for Rs. 2400 and above you

get a lemon set, which is said to be imported, worth Rs. 649 for Rs. 99 only.

8. New Year offers:

Vishal Mega Mart offers gifts for purchases that are make at the store during the New Year

for cheaper price. If you shop for Rs. 3500 you get a Imported Designer Glass Set for Rs. 249

only. If you shop for Rs. 2500, you get a 3 nights and 4 days holiday package for a couple on an

International cruise.

9. Discount Coupons:

Vishal Mega Mart offers 25% discount on its large range of apparels. The coupon is valid for

limited period. This coupon is valid for 25% off on any product purchased from

www.vishalmegamart.com

10. Gift Vouchers:

Vishal mega mart Fresh Fashion offers many vouchers ranging different denominations like

Rs100, Rs.250, Rs.1000 and Rs.2000. These vouchers are exchangeable with the products by

the customers at all the Vishal Mega Mart showrooms in India. The vouchers are a better

option rather than gifts for the employees and customers as they are not bound for a

particular thing to accept. They are given free choice for choosing better gifts for themselves

by using vouchers. Vishal Mega Mart vouchers offer a wide range of products and services for

shopping. It has got coverage in 15 cities including 22 outlets. It thus offers good gift vouchers

to its customers, clients and sales force also to keep good relationships amongst each other.

The most famous Gift Vouchers by Pantaloons Fresh Fashion are Trendsetters and

Connoisseurs Choice.


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7.16 SWOT ANALYSIS

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.

Understanding of the ‘value retail’ segment.

Garment sector of the Vishal is much more superior to other retail stores.

It segments on middle and lower middle income groups.


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Weakness:

Unable to meet store opening target so far.

Falling revenue per square feet.

Employees behavior is not professional.

Daily customers footfall is very less around 200 to 300 average.

Inexperienced and unskilled management team except managers.

Supply chain management is quite slow.

No brand awareness for the product.

Lack of proper extraction of work from staff.

Need to include more assortment & varieties of the same item.

Need to provide more offers/ discounts on FMCG in comparison of Big bazaar, Reliance

Fresh, Easyday & V-Mart.

Need to improve store layout according to customer facility.

Opportunity:

Increasing customer satisfaction and our base of loyal customers

Emphasis on Backward Integration.

Expansion of FMCG.

Continue to upgrade information technology systems and processes

Continue to train employees and seek entrepreneurship from employees.

To increase the customer satisfaction by providing different variety of products.

Threat:

Global big players planning to foray into market.

Government policies are not well-defined in India.

Unorganized retail market of India.

Independent small stores.

Demographic Changes.

V-Mart, Reliance fresh, Easy day & Big-Bazaar.

Overseas group entering the market.

Increased competition in the domestic market.


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7.17 E - COMMERCE

The uses of computers and internet have been expanding significantly over the years.

Presently internet has been used widely as a means of communication, as a potential source of

information, as a means of entertainment and many more. With in few years after existence of

internet, business men realized the possibilities of using internet as a medium of business. This

idea kick started the first online business ventures. Modern technology has been developed to

the extent that even shopping made possible over the internet. The process of shopping done

over the internet is called online shopping.

Both products and services can be purchased by online shopping. Online shopping is used for

business to business transactions or business to customer transactions with applications of

electronic commerce (E-Commerce). Vishal Mega Mart is soon launching its online shopping

website this summer named as www.vishalmegamart.com which promises to be a boon for its

customers.

VRPL has its own site named as www.vishalmegamart.net.

Vishalmegamart.net is concerned about the safety and security of their website and customers.


58

Accordingly, they have put a number of technological protections in place to ensure that their

transaction process is extremely safe and that their customers' information is secure. They

provide a large amount of information to their customers, suppliers through their website.

This information includes their stores in different areas, cities with correct address and

contact no’s, products being offered by them, career opportunities, enquiry, supplier’s zone

etc.

Vishal Mega Mart also provides opportunities to its customers by collaborating with

shopping.indiatimes.com and with shopping.rediff.com.


59

HOW TO SHOP

Firstly, you have to register yourself with the shopping.indiatimes.com & shopping.rediff.com.

Place your order through following these 7 quick and easy steps:

1. Find the Items You Want to buy.

2. Add the Items to Your Shopping Bag

3. Proceed to Checkout

4. Sign In/Create a New Account/Choose guest checkout

5. Enter a Shipping Address

6. Provide Payment Information and authorization

7. View or print your Order Acknowledgment and check your Order status.


60

Chapter -2

RESEARCH

METHODOLOGY


61

Meaning of Research

Redman and Mory define research as a “systemized effort to gain new

knowledge.” Some people consider research as a movement, a movement from the

known to the unknown.

Research is an academic activity and as such the term should be used in a technical

sense. According to Clifford Woody, research comprises defining and redefining

problems, formulating hypothesis or suggested solutions; collecting, organizing

and evaluating data; making deductions and reaching conclusions; and at last

carefully testing the conclusions to determine whether they fit the formulating

hypothesis.

Objectives of Research

The purpose of research is to discover answers to questions through the application

of scientific procedures. The main aim of research is to find out the truth which is

hidden and which has not been discovered as yet. Though each research study has

it’s own specific purpose but the research objectives can be listed into a number of

broad categories, as following

1. To gain familiarity with a phenomenon or to achieve new insights into it.

Studies with this object in view are termed as exploratory or formulative

research studies.

2. To portray accurately the characteristics of a particular individual, situation

or a group. Studies with this object in view are known as descriptive

research studies.


62

3. To determine the frequency with which something occurs or with which it is

associated with something else. Studies with this object in view are known

as diagnostic research studies.

4. To test a hypothesis of a casual relationship between variables. Such studies

are known as hypothesis-testing research studies.

Significance of Research

“All process is born of inquiry. Doubt is often better than overconfidence, for it

leads to inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in

context of which the significance of research can well be understood? Increased

amounts of research make progress possible.

Research inculcates scientific and inductive thinking and it promotes the

development of logical habits of thinking and organization.

The role of research in several fields of applied economics, whether related to

business or to the economy as a whole, has greatly increased in modern times. The

increasing complex nature of business and government has focused attention on the

use of research in solving operational problems. Research, as an aid to economic

policy, has gained added importance, both for government and business.

Research Methodology

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically. In

it we study the various steps that are generally adopted by a researcher in studying

his research problem along with the logic behind them. It is necessary for the


63

researcher to know not only the research methods or techniques but also the

methodology.

Data Collection Source

Information was collected through both primary and secondary sources.

Primary Data: In some cases the researchers may realize the need for collecting

the first hand information. As in the case of everyday life, if we want to have first

hand information or any happening or event, we either ask someone who knows

about it or we observe it ourselves, we do the both. Thus, the two methods by

which primary data can be collected is observation and questionnaire.

Secondary Data: Any data, which have been gathered earlier for some other

purpose, are secondary data in the hands of researcher.

The data collected for this project has been taken from the secondary source.

Sources of secondary data are:-

Internet

Magazines

Publications

Newspapers

Broachers


64

8.1. OBJECTIVES OF THE STUDY

To know the strategy adopted by V-MART and Vishal Mega Mart in the current

retail marketing environment.

To have a proper understanding and analysis of V-MART and Vishal Mega Mart

To know the marketing strategies that V-MART and Vishal Mega Mart adopted to

make a good relationship with its customers.

To know the people perceptions towards V-MART and Vishal Mega Mart.

To compare the marketing strategy adopted by V-MART and Vishal Mega Mart.

To know consumer perception toward the V-MART and Vishal Mega Mart.


65

8.2. RESEARCH METHODOLOGY

Method of data collection used in the research is PRIMARY DATA collection method

Primary Data - QUESTIONNAIRE.

Sample Size - 100

Sample profile - Customer of V-MART and

Vishal Mega Mart (nakkhas branch) .

Sampling technique - Simple random sampling.

Research design - Descriptive research.

This research is conducted into an

issue or problem where there are few or no earlier studies to refer. The focus is on gaining

insights and familarity for later investigation. Here data is often quantitative and statistics

applied. It is used to identify and obtain information on a particular problem or issue.

Finally, casual or predictive research seeks to explain what is happening in a particular

situation.

In my project I have also used descriptive research for

secondary data because the main goal of this type of research is to describe the data and

characteristics about what is being studied and descriptive research is mainly done when a

researcher wants to gain a better understanding of a topic It is quantitative and uses

surveys and panels and also the use of probability sampling.

Secondary data-

www.vmart.co.in ,

www.myvishal.com

Newspaper,

journals.


66

CHAPTER -3

Data analysis

And Interpretation


67

Q1. Which retail market comes to your mind when you think of shopping ?

V-MART 34

VISHAL MEGA MART 43

OTHER 23

As per this study suggested that Vishal Mega Mart is still has market leadership in India

because 43% of the people say they prefer Vishal Mega Mart.34% of the people say they

prefer v-mart for shopping while 23% people say they prefer other retail outlet for good

shopping experience.

34%

43%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

V-MART VISHAL MEGA MART OTHER


68

Q2. Which retail store do you use at present?

V-MART 34

VISHAL MEGA MART 43

OTHER 23

As per this study suggested that 43% people are using vishal mega mart and 34% people

people say they use v-mart retail outlet for shopping while 23% people say they prefer

other outlets for shopping

34%

43%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

V-MART VISHAL MEGA MART OTHER


69

Q3. Which mode has motivated your purchase for the particular brand?

a) Newspaper b) Television

b) Family and friends d) Others

Newspaper 33

television 26

Family and friends 19

others 22

As per this study suggested that 33% of people are aware of the outlet from the

newspaper,26% people are aware from television,19%people are aware of different

promotional activities from the family and friends and 19% people said that they are

motivated to purchase from the outlet from other outlets.

33%

26%

19%

22%

newspaper

television

family and friends

other


70

Q4. Are you satisfied with the current purchase?

Fully Satisfied Somewhat Satisfied Not Satisfied


57 33 10

As per this study suggested that 57% people are satisfied with there purchase where 33%

of people are not fully satisfied with there purchase and 10% of people are not satisfied

with there purchase.

57%33%

10%

Sales

fully satisfied somewhat satisfied not satisfied


71

Q5. From Which retail store you purchase in future and why?

V-MART 33

Vishal Mega Mart 54

other 13

As per the study suggested that 54% of people will go with Vishal mega mart in future and

33% of people will go with V-mart and 13% of people prefer other outlets in future.

33%

54%

13%

V-MART VISHAL MM OTHER


72

Q.6. In the following scale how do you rate V-MART and Vishal Mega Mart on following

parameters? (1=excellent,2=v. good,3=good,4=average,5=poor)

Brands excellent V good good average poor

1 V-MART 40 12 26 20 2

2

VISHAL

MM 52 18 21 8 1

As per the study suggested that people are more satisfied with the vishal mega mart retail

outlet then V-mart.

V-MART VISHAL MEGA MART

EXCELLENT 40 52

VGOOD 12 18

GOOD 26 21

AVERAGE 20 8

POOR 2 3

0

10

20

30

40

50

60


73

Q.7.What you liked about that showroom?

Particulars Brands V.Good Good Average Poor V.Poor

1. Reach of outlet

V-Mart 70 10 18 1 1

Vishal

Mega

Mart

75 14 10 1 -

2. Availability of

Designs

V-Mart 55 22 19 4 -

Vishal

Mega

Mart

69 27 4 - -

3. Parking area

V-Mart 4 18 22 35 21

Vishal

Mega

Mart

34 47 18 1 -

4. Special offers like

discounts.

V-Mart 29 31 32 8 -

Vishal

Mega

Mart

55 33 11 1 -

5.

Behavior/helpfulness

Of staff

V-MART 64 16 20 - -

Vishal

Mega

Mart

70 16 14 - -


74

Reach of outlet Availability of design

Parking area special offers like discounts

V-MARTVISHAL MEGA

MART

v.good 70 75

good 10 14

average 18 10

poor 1 1

v.poor 1 1

0

10

20

30

40

50

60

70

80

V-MARTVISHAL MEGA

MART

v.good 55 69

good 22 27

average 19 4

poor 4

v.poor

0

10

20

30

40

50

60

70

80

V-MARTVISHAL MEGA

MART

v.good 4 34

good 18 47

average 22 18

poor 35 1

v.poor 21

0

5

10

15

20

25

30

35

40

45

50

V-MARTVISHAL MEGA

MART

v.good 29 55

good 31 33

average 32 11

poor 8 1

v.poor

0

10

20

30

40

50

60


75

Behaviour/helpfulness of staff

As per the study suggested that mostly customers of vishal mega mart are much more

satisfied with the different services provided to them where customer are not fully satisfied

by the services provided by V-mart like less parking area in comparision with parking

space provided by vishal mega mart.

V-MART VISHAL MEGA MART

v.good 64 70

good 16 16

average 20 10

poor

v.poor

0

10

20

30

40

50

60

70

80


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9.2.Findings

As per this study suggested that Vishal Mega Mart is still has market leadership in

LUCKNOW(nakkhas market) because 43% of the people say they prefer Vishal

Mega Mart.34% of the people say they prefer v-mart for shopping while 23%

people say they prefer other retail outlet for good shopping experience.

As per this study suggested that 43% people are using vishal mega mart and 34%

people say they use v-mart retail outlet for shopping while 23% people say they

prefer other outlets for shopping.

As per this study suggested that 33% of people are aware of the outlet from the

newspaper,26% people are aware from television,19%people are aware of different

promotional activities from the family and friends and 19% people said that they

are motivated to purchase from the outlet from other outlets.

As per this study suggested that 57% people are satisfied with there purchase where

33% of people are not fully satisfied with there purchase and 10% of people are not

satisfied with there purchase.

As per the study suggested that people are more satisfied with the vishal mega mart

retail outlet then V-mart.

As per the study suggested that 54% of people will go with Vishal mega mart in

future and 33% of people will go with V-mart and 13% of people prefer other

outlets in future.

As per the study suggested that mostly customers of vishal mega mart are much

more satisfied with the different services provided to them where customer are not

fully satisfied by the services provided by V-mart like less parking area in

comparision with parking space provided by vishal mega mart.


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9.3. CONCLUSION

In the research we found that Indian retail industry is very complicated in nature because

the taste and preferences of the customers vary a lot in nature. The customers are very

choosy in nature; they are not ready to compromise with their requirements. The

customers have lots of option related to the choices. There are many competitors in the

retail industry. So the sales and promotion activity of the company is the only tool to

attract the customers.

On the basis of different aspects of comparative analysis of both the

retail store V-Mart and Vishal Mega Mart it’s found that mostly above 50% of the people

prefer vishal mega mart due to availability of variety, ranges, design and many other

aspects.V-mart have different variety of products of different ranges for different age

group but is not able o develop good marketing image of there brand in customer mind.

But still the customers face some complaints such as:

Low variety of products are available only and customization of products is not

there.

Prices are not mentioned at all places and at all products.

Prices are not competitive as they are assumed to be higher when consumers are

visiting other retail outlets.

Lack of space in the store while shopping and moving within a store.

There is a long delay at the billing payment counter mainly because of less number

of billing machine.

TO work effectively in the market and face the

challenges in the current marketing situation organization must have to adopt a

very efficient and good MARKETING STRATEGY.


78

9.4 SUGGESTIONS AND RECOMMENDATIONS

Company should try to increase publicity in and around 0-10 kms of V- Mart with

the help of different modes like local FM radio, print media, and posters especially

when there are special schemes for customers.

V- Mart and Vishal Mega Mart should introduce various schemes periodically, say

once in forth nightly.

It is suggested that the company should adopt aggressive marketing campaigning

and advertising during times of seasonal bulk items like wheat, oil, ghee, spices etc.

and provide fair discounts on bulk purchase.

From the consumer perception evaluation of the store and services it is recommend

that store should maintain the quality level in each categories of product.

Making stalls in corporate mela’s like trade fair, maybe beneficial to create brand

image of its product

Company should provide regular training to their staff and aware him with the

modern technique of selling and customer dealing.

A special discount may be given on purchases exceeding certain limits.

There should be more number of billing machines at the billing counter..

Constant reminder of discounts through pamphlets, speakers inside the store for

inducing consumers for impulse buying.

Proper advertisement in press and outdoor to make V- Mart should be visible in the

eyes of consumers.

Customer care service can be introduced.

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

clothes than offered by local vendors.

Customization of clothing should be given an important consideration.

Should provide more festival schemes and at proper time.


79

9.5. LIMITATIONS 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

LIMITATION OF DATA

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.

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. Locating the target

customers is very time consuming. Research period is not just much enough to know fully

about the Price strategies & consumers perception about V-Mart.

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.

Other Limitations are:-

Sample size is limited due to the limited period allocated for the survey.

Getting accurate responses from the respondents due to their inherent problem is

difficult. They may be partial or refuse to cooperate.

Respondents may not be interested to give the data.

Sometime respondents are not taking interest in such type of surveys therefore there

is chance that they might be giving wrong information.

The respondents are free from all barriers so he/she can give his/her opinion which

may not be true in many occasions.


80

10.BIBLIOGRAPHY

V-Mart prospectus.

Csr report, reviews.

Journals etc.

www.myvishal.com

www.vmart.co.in


81

ANNEXURE


82

QUESTIONNAIRE

Q1. Which retail market comes to your mind when you think of shopping ?

V-MART

VISHAL MEGA MART

OTHER

Q2. Which retail store do you use at present?

V-MART

VISHAL MEGA MART

OTHER

Q3. Which mode has motivated your purchase for the particular brand?

Newspaper

television

Family and friends

others

Q4. Are you satisfied with the current purchase?


Q5. From Which retail store you purchase in future and why?

A -V-MART B-VISHAL MEGA MART C-OTHER


83

Q.6. In the following scale how do you rate V-MART and Vishal Mega Mart on following

parameters? (1=excellent,2=v. good,3=good,4=average,5=poor)

Brands excellent V good good average poor

1 V-MART

2 VISHAL MM

Q.7.What you liked about that showroom?

Particulars Brands V.Good Good Average Poor V.Poor

Reach of outlet

V-Mart

Vishal MM

Availability of Designs

V-Mart

Vishal MM

Parking area

V-Mart

Vishal MM

Special offers like

discounts.

V-Mart

Vishal MM

Behavior/helpfulness

Of staff

V-MART

Vishal mm