“marketing research of vishal mega mart in retail industry”

8/9/2019 Marketing Research of Vishal Mega Mart in Retail Industry

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COMPANY PROFILE

V I S H A L

Value Increase Shopping Hypermarket Affordable Low Price Founded in1986 in Kolkata. 148 showrooms in 91 cities/23 states. Opened as Indian 1sthyper-market. Turnover : 2005 - Rs. 1463.12mn

2006 - Rs. 2884.43mn

2007 - Rs. 6026.53mn

It has over 70,000 products range. Covering about 26,29,433 sq. ft. in 23 states across india.

VISHAL Apparels Brands

Zeppelin :Mens Shirts &Trousers

Fizzy Babe : Ladies & Kids Girls

Kitaan Studio :Mens Shirts &Trousers

Jasmine : Ladies & Kids Girls

Blues & Khakis Mens Trousers Zero Degree : Kids Boys

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

Chlorine : Mens Shirts Massa Bay : Mens Trousers & Bermudas

Fume :

Mens Shirts, T-Shirts,

UnderGarments.


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Any place that calls itself Vishal which means big and also, adds a mega to

its name must be gigantic, right? Wrong! The only thing big about this place is its

name. The rest would give a pimple an inferiority complex. Just goes to show you

the magnitude of their extremely inflated egos that they have to call themselves such

a thing.

Fine, now that we are in, lets check out what they have to offer. The clothes look

decent, feel decent and are also decently priced, but decency isnt actually a virt ue

now-a-days. Despite the absence of any well known brands, their range is pretty

diversified and well maintained. They stack clothes for mentwo floors of it, by the

way women and children and most new designs find mention. Youd have to

actually take the plunge and buy stuff to discover whether they would last though.

The place on the whole is worth a visit, for the clothes, if not for anything else.

Started as a humble one store enterprise in 1986 in Kolkata(erstwhile, Calcutta) is today

a conglomerate encompassing 117 showrooms in 75 cities / 20 states. Indias first

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

national capital Delhi this store boasts of the singe largest collection of goods and

commodities sold under one roof in India.

Vishal Retail is one of the fastest growing retail chain in Indian Retail market. The

chain has currently 108 showrooms in 20 states. The vishal brand is known for great


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modern style for men, women, and children. Vishal offers high level fashion styling.

Since 1986, the name vishal has been synonymous quality, value, and fashion integrity.

The company was started under the leadership of Mr. Ram Chandra Agarwal, a

dynamic personality.

Vishal offers an unparalleled collection of cloths 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.

Its 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. All vishals stores are air conditioned and tastefully decorated with easy excess to

the products, giving to customers a unique shopping experience. Vishals trained staff

will be able to help you select the garment of your choice and also help you color

coordinates the accessories that you may want to buy.

The group is today Rs. 6026.53 million company. The groups prime focus is fashion

retailing. The Vishal stores offer affordable family fashion at prices to suit every

pocket. The groups philosophy is integration and towards this end has initiated


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backward integration in the field of high fashion by setting up a state of the art

manufacturing facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups. Vishals outlets cater to almost all

price ranges. Our showrooms have a product range so wide that all your household

needs can be catered under one roof. Our stores give you international quality goods

and prices hard to match. The cost benefits that we derive from our large central

purchase of goods and services are passed on to the consumer.

Our loyalty programme gives the Indian consumer of

being rewarded every time he makes a purchase at any

of our 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. You can accumulate points even when you make

a purchase while traveling and redeem points at any

store. So no matter where you are in India you can partake in our loyalty

programme.


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Infrastructure

The

VISH LGroup


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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.Our 10 warehouses cater to 117 showrooms

in 20 states/75 cities. It is covering about 2059292 sq. ft. in 20 states across India.


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RETAIL INDUSTRY


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The India Retail Industry is the largest among all the industries, accounting for over

10 per cent of the countrys GDP and around 8 per cent of the employment. The

Retail Industry in India has come forth as one of the most dynamic and fast paced

industries with several players entering the market. But all of them have not yet

tasted success because of the heavy initial investments that are required to break

even with other companies and compete with them. The India Retail Industry is

gradually inching its way towards becoming the next boom industry.

The total concept and idea of shopping has undergone an attention drawing change

in terms of format and consumer buying behavior, ushering in a revolution in

shopping in India. Modern retailing has entered into the Retail market in India as is

observed in the form of bustling shopping centers, multi-storied malls and the huge

complexes that offer shopping, entertainment and food all under one roof.

A large young working population with median age of 24 years, nuclear families in

urban areas, along with increasing workingwomen population and emerging

opportunities in the services sector are going to be the key factors in the growth of

the organized Retail sector in India. The growth pattern in organized retailing and in

the consumption made by the Indian population will follow a rising graph helping

the newer businessmen to enter the India Retail Industry.


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The Global Retail Scenario

Large format retail businesses dominate the retail landscape in the United States and

across Europe, in terms of retail space, categories, range, brands, and volumes.

Indian retail industry cannot hope to learn much by merely looking at the Western

success stories in retail. Their scales of operations are very huge, the profit margins

that they earn are also much higher and they operate in multiple formats like

discount stores, warehouses, supermarkets, departmental stores, hyper-markets,

convenience stores and specialty stores.. The economy and lifestyle of the West is

not in line with that of India and hence the retailing scene in India has not evolved in

the same format as the West nor can we learn valuable lessons from their style of

operations.

In retailing, the conventional wisdom used to be, that, the critical success factor was

location. But precise location no longer matters and geo-demographics is

increasingly becoming irrelevant. The leading multiple chain retailers, superstores

and malls create their own centers of gravity, attracting customers by car, bus, train

or even by plane to wherever they are located.


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The growth of multiple chain retailers has been relentless for many years in the west

and this has been accompanied by the development of retail names as brands in their

own right. Discount retailer Walmart has catapulted to the top of the Fortune 500

rankings in the U.S. with a turnover of $258 billions (2003 revenues the basis for

2004 rankings), ahead even of oil major Exxon Mobil and the mammoth

manufacturing giant General Electric.

Wal-Mart is the worlds largest retailer. Already the worlds largest employer with

over 1million associates, Wal-Mart displaced oil giant Exxon Mobil as the worlds

largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has

become the most successful retail brand in the world due its ability to leverage size,

market clout, and efficiency to create market dominance. Wal-Mart heads Fortune

magazine list of top 500 companies in the world. Forbes Annual List of Billionaires

has the largest number (45/497) from the retail business.

A ruthless policy, of, Always Low prices - Always has brought Walmart to the

top. On the day after Thanks giving in November 2002, Wal-Mart sales hit $1.43

billion in one single day. Walmart and Nordstrom in the U.S. and Sainsburys and

Marks & Spencer in the U.K. have grown by rapid geographic expansion in their

own countries. Specialists like Benetton of Italy and IKEA of Sweden and The Body

Shop of the UK are international and the fast food chains like McDonalds and Pizza


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Hut are everywhere. The same products are increasingly available from the same

names on every continent. Retailers worldwide have immensely benefited from the

sustained growth of the disposable income of their global consumers.

Retail has played a major role world over in increasing productivity across a wide

range of consumer goods and services.

The impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and

more recently China. Economies of countries like Singapore, Malaysia, Hong Kong,

Sri Lanka and Dubai are also heavily assisted by the retail sector.

Retail is the second-largest industry in the United States both in number of

establishments and number of employees. It is also one of the largest world-wide.

The retail industry employs more than 22 million Americans and generates more

than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector.


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Geographic Saturation:

The end of the nineties has signified a turning tide of retailer power. The limit to

retail ambition is geographic saturation. There is already a fear that the U.S is over-

malled, that available shopping space exceeds customer demand for products. The

retailer logic that if we build new stores they will come, is being belied. Many

retailers have started postponing their store expansion plans. The track record of

some of their international store expansions is also not promising.

Category Killer Competition:

The threat of saturation is accompanied by a new competition from the low cost

category killers. Specialist competition is eating away at the market share and

forcing down the prices and gross margins of the multiple chains. The success of the

giant killers in the toys segment Toys R Us and in home furnishings Home

Depot, in the area a case in point.

Alternative Shopping Channels:


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The newest retail format that is showing growth in the U.S., and is more frightening

for retailers than for consumers, is the Internet. The potential for on-line shopping

which is growing in the U.S. questions retailers investments in more physical sites

and stores and makes it imperative that they too explore the new agenda of E-

retailing or e-tailing

The Indian Retail ScenarioRetail is India's largest industry. It accounts for over 10 per cent of the India's GDP

and around eight per cent of the employment. Retail sector is one of India's fastest

growing sectors with a 5 per cent compounded annual growth rate. India's huge

middle class base and its untapped retail industry are key attractions for global retail

giants planning to enter newer markets. Driven by changing lifestyles, strong income

growth and favorable demographic patterns, Indian retail is expected to grow 25 per

cent annually. The Indian retail industry is expected to grow to $427 billion in 2010

and $637 billion in 2015. Retailers of multiple brands can operate through a

franchise or a cash-and-carry wholesale model. It is expected that retail in India

could be worth US$ 175-200 billion by 2016.

India is the country having the most unorganized retail market. Traditionally it is a

familys livelihood, with their shop in the front and house at the back, while they run

the retail business. More than 99% retailers function in less than 500 square feet of

shopping space. Global retail consultants KSA Technopak, have estimated that


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organized retailing in India is expected to touch Rs 35,000 crore in the year 2005-06.

The Indian retail sector is estimated at around Rs 900,000 crore, of which the

organized sector accounts for a mere 3 per cent indicating a huge potential market

opportunity that is lying in the waiting for the consumer-savvy organized retailer.

Emerging markets such as India and China are the final frontier for retail taking the

focus away from saturated Western markets. Since 2001, 49 global retailers entered

90 new markets, but at the same time, 17 retailers left markets in 2005.

The organized retail industry in India had not evolved till the early 1990s. Until

then, the industry was dominated by the un-organized sector. It was a sellers market,

with a limited number of brands, and little choice available to customers. Lack of

trained manpower, tax laws and government regulations all discouraged the growth

of organized retailing in India during that period. Lack of consumer awareness and

restrictions over entry of foreign players into the sector also contributed to the delay

in the growth of organized retailing. Foundation for organized retail in India was laid

by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's

successful venture a host of Indian business giants such as Reliance, Bharti, Birla

and others are now entering into retail sector.

A number of factors are driving India's retail market. These include: increase in the

young working population, hefty pay-packets, nuclear families in urban areas,


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business. All the companies have laid out ambitious expansion plans for themselves

and they may be hampered due lack of requisite skilled manpower.

But retail offers tremendous for the growth of Indian economy. If all the above

challenges are tackled prudently there is a great potential that retail may offer

employment opportunities to millions living in small town and cities and in the

process distributing the benefits of economic boom and resulting in equitable

growth.

Purchasing power of Indian urban consumer is growing and branded merchandise in

categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even

Jewellery, are slowly becoming lifestyle products that are widely accepted by the

urban Indian consumer. Indian retailers need to advantage of this growth and aiming

to grow, diversify and introduce new formats have to pay more attention to the brand

building process. The emphasis here is on retail as a brand rather than retail ers

sell ing brands.The focus should be on branding the retail business itself . In their

preparation to face fierce competitive pressure, Indian retailers must come to

recognize the value of building their own stores as brands to reinforce their

marketing positioning, to communicate quality as well as value for money.

Sustainable competitive advantage will be dependent on translating core values

combining products, image and reputation into a coherent retail brand strategy.


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There is no doubt that the Indian retail scene is booming. A number of large

corporate houses Tatas, Rahejas, Piramalss, Goenkas have already made

their foray into this arena, with beauty and health stores, supermarkets, self-service

music stores, new age book stores, every-day-low-price stores, computers and

peripherals stores, office equipment stores and home/building construction stores.

Every retail category has been attacked, by the organized players today. The Indian

retail scene has witnessed too many players in too short a time, crowding several

categories without looking at their core competencies, or having a well thought out

branding strategy.

As the corporatesthe Piramals, the Tatas, the Rahejas, ITC, S.Kumars, RPG

Enterprises, and mega retailers- Crosswords, Shoppers Stop, and Pantaloons race to

revolutionize the retailing sector, retail as an industry in India is coming alive.

Retail sales in India amounted to about Rs.7400 billion in 2002, expanded at an

average annual rate of 7% during 1999-2002. With the upturn in economic growth

during 2003, retail sales are also expected to expand at a higher pace of nearly 10%.

Across the country, retail sales in real terms are predicted to rise more rapidly than

consumer expenditure during 2003-08. The forecast growth in real retail sales during

2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure.

Modernization of the Indian retail sector will be reflected in rapid growth in sales of

supermarkets, departmental stores and hyper marts. Sales from these large-format


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classification, the National Council of Applied Economic Research (NCAER)

classified approximately 50% of the Indian population as low income in 1994- 95;

this is expected to decline to 17.8% by 2006-07.

Liberalization of the Indian economy which has led to the opening up of the market

for consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc.

to make significant inroads into the vast consumer market by offering a wide range

of choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

The internet revolution is making the Indian consumer more accessible to the

growing influences of domestic and foreign retail chains.

Reach of satellite T.V. channels is helping in creating awareness about global

products for local markets. About 47% of Indias population is under the age of 20;

and this will increase to 55% by 2015. This young population, which is technology-

savvy, watch more than 50 TV satellite channels, and display the highest propensity

to spend, will immensely contribute to the growth of\ the retail sector in the country.

As India continues to get strongly integrated with the world economy riding the

waves of globalization, the retail sector is bound to take big leaps in the years to

come.


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Indian retail industry. This joint venture will mark the entry of Wal-Mart into the

Indian retailing industry.

The biggest competitor for Bharti-Wal-Mart is likely to be Reliance Retail, the retail

wing of Reliance, which had planned to establish 10,000 stores by 2010. It had

already opened 11 pilot stores under the Reliance Fresh format in Hyderabad.

All these trends and developments present a great business opportunity for software

and hardware vendors from across the globe. Indian solution providers are targeting

this segment have reason to rejoice. For while organised retail occupies a miniscule

two to three percent of the overall Indian retailing industry, that is poised to change.

Traditionally retailing in India can be traced toThe emergence of the neighborhood Kirana stores catering to the convenience of

the consumers.

Era of government support for rural retail: Indigenous franchise model of store

chains run by Khadi & Village Industries Commission

1980s experienced slow change as India began to open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and

Grasim first saw the emergence of retail chains


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Later Titan successfully created an organized retailing concept and established a

series of showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift from

Manufactures to Pure Retailers.

For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and

Music World in music; Crossword and Fountainhead in books.

Post 1995 onwards saw an emergence of shopping centers,mainly in urban areas,

with facilities like car parking

Emergence of hyper and super markets trying to provide customer with 3 Vs -

Value, Variety and Volume

Expanding target consumer segment: The Sachet revolution - example of reaching

to the bottom of the pyramid.

At year end of 2000 the size of the Indian organized retail industry is estimated at

Rs. 13,000 crore


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STRUCTURE OF RETAIL INDUSTRY IN INDIA

The retail industry continued in India in the form of Kiranas till 1980. Soon,

following the modernisation of the retail sector in India, many companies started

pouring in the retail industry in India like Bombay Dyeing, Grasim etc. As has been

mentioned earlier the retail sector in India can be widely split into the organised and

the unorganized sector. The unorganized sector is predominant.

Unorganized Retail Sector

The unorganized retail sector basically includes the local kiranas, hand cart, the

vendors on the pavement etc. This sector constitutes about 98% of the total retail

trade.

Organised Retail Sector

The organised sector trading is undertaken by the licensed retailers who have

registered themselves to sales as well as income tax. The organised retail sector have

in their ambit, corporate backed hypermarkets and retail chains. The private large

business enterprises are also included under the organised retail category.

The organised retail sector can be further subdivided into:

In-store Retailers


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This type of retail format is also known as the brick and mortar format. These retail

stores are in the form of fixed point sale outlets. They are specially designed to lure

the customers. There are different types of stores through which the instore retailers

operate. Branded Stores appear in the form of exquisite showrooms. Here the total

range of a particular brand is available and the quality is certified by the

government. There are also multi brand specialty stores that sell a series of brands so

that the consumers are free to choose from the wide variety of available brands.


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SEGMENT OF RETAIL

The Indian retail industry is diversified into different segments such as clothing,

textile, jwelery, wathches, footwear, health and beauty product, consumer durables,

Mobile, furniture,food & grocery, book, music etc.In terms of retail sale the major

contribution is of food & grocery, followed by clothing and textile, jwelery etc. Now

if we look at the table above then it is evident that in organised retail sale, clothing,

textile & fashion accessiories dominates in terms of sale followed by food and

grocery sale. The total contribution of organised retail is just 3 % of total retailing.


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In percentage terms clothing, textile & fashiopn accessiories dominates the

organised reatil sale. So one thing can be concluded here that inspite of having good

retail sale in food and grocery ,organised retail contributes only 11% .


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Food Policy Research Institute (IFPRI) and Michigan State University (MSU).The

emerging structural transformation in retail trade would benefit the society as a

whole, but noted that the gains will accrue early to consumers

Malls in IndiaThe largest form of organized retailing today. Located mainly in metro cities, in

proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above.

They lend an ideal shopping experience with an amalgamation of product, service


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and entertainment, all under a common roof. Examples include Shoppers Stop,

Piramyd, and Pantaloon. Over the last 2-3 years, the Indian consumer market has

seen a significant growth in the number of modern-day shopping centers, popularly

known as malls. There is an increased demand for quality retail space from a

varied segment of large-format retailers and brands, which include food and apparel

chains, consumer durables and multiplex operators.

Shopping-centre development has attracted real-estate developers and corporate

houses across cities in India. As a result, from just 3 malls in 2000, India is all set to

have over 220 malls by 2005. Today, the expected demand for quality retail space in

2006 is estimated to be around 40 million square feet. While previously it was the

large, organised retailers with their modern, up-market outlets, and direct

consumer interface- who had been a key factor driving the growth of organized retail

in the country, now it is the malls which are playing the role.

Factors such as availability of physical space, population densities, city planning,

and socio-economic parameters have driven the Indian market to evolve, to a certain

extent, its own definition of a mall. For example, while a mall in USA is 400,000

to 1 million sq.ft. in size, an Indian version can be anywhere between 80,000 sq.ft.

and 500,000 sq.ft. By 2005, total mall space in the 6 cities of Mumbai, Bangalore,


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Hyderabad, Chennai, Kolkata, and National Capital Region (Delhi, Noida, Gurgaon)

is expected to increase to over 21.1 million sq. ft.

Compared to other big cities, Kolkata and Hyderabad are relatively new entrants in

the mall segment, but are witnessing quick growth. Smaller cities like Pune,

Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh and Indore, are also expected

to see a formidable growth in the growth of malls in the near future. But malls in

India need to have a clear positioning through the development of differential

product assortment and differential pricing, in order to compete effectively in a

growing mall market.

Segmentation in malls, like up-market malls, mid-market malls, etc. , proper

planning, correct identification of needs, quality products at lower prices, the right

store mix, and the right timing, would ensure the success of the mall revolution in

India.


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Retailing in India is witnessing a huge revamping exercise as can be seen in the

graph

India is rated the fifth most attractive emerging retail market: a potential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)

makes up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at

24%


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Ranked second in a Global Retail Development Index of 30 developing countries

drawn up by AT Kearney.

Multiple drivers leading to a consumption boom:

Favorable demographics Raising aspirations : Value added goods sales.

Growth in income Increasing population of women

Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban phenomenon with affluent

classes and growing number of double-income households.

More successful in cities in the south and west of India. Reasons range from

differences in consumer buying behavior to cost of real estate and taxation laws

. Rural markets emerging as a huge opportunity for retailers reflected in the share of

the rural market across most categories of consumption

ITC is experimenting with retailing through its e-Choupal and Choupal Sagar

rural hypermarkets.

HLL is using its Project Shakti initiativeleveraging women self-help groupsto

explore the rural market.

Mahamaza is leveraging technology and network marketing concepts to act as an

aggregator and serve the rural markets.

IT is a tool that has been used by retailers ranging from Amazon.com to eBay to

radically change buying behavior across the globe.


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e-tailing slowly making its presence felt.

Companies using their own web portal or tie-sups with horizontal players like

Rediff.com and Indiatimes.com to offer products on the web.

The above two pictures shows us that how service to customer has changed during

the due course of time. In earlier days the retailing format allows the customers to

purchase product from specific counter they are not allowed to look for different

products by themselves, so ultimately they are bound to purchase goods from the

shop as per the recommendation of the retailer.


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But this form of retailing i.e. counter service is overtaken by self service. In this new

pattern the customers to alllowed to roam inside the premise of the shop to collect

different types of goods, which they wish to purchase. So this type of self service

pattern has increased the buying experience of the customer and this has also

increase the sale volume of the retail outlet.

So, this change in retailing trends has tremendously increased the number of

customer towards the retail outlet.

A Stock Keeping Unit, or SKU as an initialism is a unique identifier for each of the

distinct products and services that can be ordered from a supplier.SKUs are often

assigned and serialized at the merchant level. All merchants using the SKU method


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If we go foe the size of a retail outlet than it is quite obvious from the above two

pictures that the size of shop has increased from few hundred sq ft. shop to few

thousand sq. ft. shop. Earlier the shops were kirana stores, pop and mom stores

which were very less in terms of size. These stores are specially meant for catering

the needs of nearby localites. So naturally the no of shops were more as compared to

the new format of shops

But if we look at the big size outlets such as hypermarkets, supermarkets,etc. there

size is 50,000 sq. ft. and more. Now the new size of outlet i.e. lakh sq. ft. outlets are

in pipeline. In this new big size retail outlets goods are displayed in an orderly

manner, for example different corners for catering different sets of peoples.

Now every big business houses is in process of entering into this type of big space

retail business, eg. Bharti is foraying in this type of retail after reliance had made

their entry.


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Now retailing has changed its pattern in terms of gadgets application. Earlier the

shops were using very less gadgets which are manually operated. In some cases

there were no use of gadgets in retailing. But with the elipse of time gadgets are

being incorporated in retailing day by day.

Now each type of retailing sector,it may be textile, grocery, food and beverage e.t.c

has incorporated advanced gadgets in their retail sales. For Ex. In food and

beverages retailing refrigrators, Proper lighting e.t.c used frequently.


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In recent times bar code is replaced by advanced RFID . It helps the retailer in

augemented sales operation Both bar coding and RFID are quite similar; both are

intended to provide rapid and reliable item identification and tracking capabilities.

The primary difference between the two technologies is that bar coding scans a

printed label with optical laser or imaging technology, while RFID scans, or

interrogates, a tag using radio frequency signals.Because of the low cost of bar code

labels, established standards, and global deployment, bar coding is a widely

accepted, mature technology, while, in the past, RFID had been limited to niche

applications.


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Shopping has never been such interesting, thanks to the latest efforts of the retail

chains, that today people create time to shop around, rather than finding time to

shop, as in before this retail boom. They have increased the buying experience by

introducing shoppertainment. Today it is perceived as one of the most look after

shopping.

Retail chains have pulled every trick from their hat, to lure the customers, hold their

imaginations, and provide them interesting options consistently. And they have been

successful so far, but lets see how long


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NEWER CONCEPT- FARM RETAIL

The New Middle Man

The food and grocery business offers a beguiling prospect, although estimates vary

widely. The India Retail Report 2007, put together by leading Indian and foreign

consultancies, estimates that the retail pie was worth Rs 1,200,000 crore in 2006,

with food and groceries accounting for a whopping 63 per cent. But the share of

organised retail in this sector was negligible.

According to Crisil Research, food and grocery (F&G) items account for a

significant 74 per cent of total retail sales, which it places at Rs 12,80,000 crore (Rs

14.8 trillion) in 2008. However, F&G accounts for only 18 per cent of the total

organised retail market, as the penetration of organised retail in the F&G vertical is a

mere 1 per cent.


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What it means is that the opportunity in agriculture is very, very big as Rakesh

Bharti Mittal, vice chairman of Bharti Enterprises, says. The company, which

revolutionised telecom in the 1990s by expanding its reach to millions of customers,

is hoping to do the same with its foray into agriculture, specifically vegetables and

fruits. It has launched Field Fresh Foods in partnership with EL. Ro Holdings India,

an investment company of the Rothschild family, and expects a turnover of $1

billion (Rs 4,100 crore) in five years. Mittal will be invest Rs 10,000 crore ($ 2.5

billion) to cover 10 million sq. ft. of retail space by 2015. By then, they hopes to

cover all cities with a population of one million and above. The underlying

philosophy, the company says, is to link Indian farms to the world by creating the

countrys first global outsourcing opportunity in fresh produce. Its 300-acre farm

leased from the Punjab Agricultural University has been experimenting with exotic

vegetables destined for the European market. Snow peas, cherry tomatoes, bell

peppers and sugar snap peas are being tested out at the Ladowal farm close to

Ludhiana, which is the lynch pin of its farming initiative.

The numbers get bigger with RIL. Officials have refused to discuss its retail plans

with media, but company sources say it is setting aside Rs 50,000 crore to build its

farm-to-fork linkage. Reliance has drawn up plans for a presence in 784 towns and

6,000 mandi (wholesale market) towns with 1,600 rural business hubs to service


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these. It has already rolled out 177 Reliance Fresh stores across major towns in 11

states. According to a company report, RIL is targeting a turnover of Rs 40,000

crore in the next few years.

All of a sudden, the farmer is in demand. Retail chains want his produce they

also want his farm. Companies from DCM to the Tatas to Triveni are investing big to

help the countrys notoriously inefficient and hamstrung agriculture to scale up

production, modernise farm practices and persuade farmers to use the best seeds

and improved irrigation system so that they get good returns

If India Inc is expected to invest more in agriculture, many of the existing acts need

to be amended. Till the Agricultural Produce Marketing Committee (APMC) Act is

amended, farmers cannot sell their produce in the open market, but only in the

mandis (wholesale markets). The mandi is controlled by the arthiyas (commission

agents) and mashokars (middle men) who pay a fee to the government for the

upkeep of the market and improving the infrastructure.

So far, 16 states have amended the Act but until these states frame the rules under

the amended Act it remains a legislative exercise that does not change ground

realities. Delhi has once again extended the deadline to March 2008 for all 29 states


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to amend the law.Till that happens, India will remain one of the most fragmented

markets for agriculture produce.

The amendment of the Act has paved the way for contract farming in a numbers of

states although there is a restriction on the lease period. Under the model law on

contract farming, a farmer can lease out his land for a minimum of 11 months and a

maximum of 30 months. Companies getting into retail complain that 30 months is

too short a time to recoup investments. Farmers are wary of longer leases because

they fear they would lose their land rights. The corporate entrants have been seeking

an amendment in the Revenue Act so that they can lease land for up to 10 years.

Says Rakesh Mittal: We need to amend the law so that farmers can lease land on

long tenure without alienating their ownership rights.

Currently, only three states Punjab, Haryana and Maharashtra allow farmers to

lease land. Here too, farmers are now leasing out their land for 30 months. In the

wake of the agitation against the special economic zones however, companies are

finding it very difficult almost impossible to pick up land for agricultural purposes.

For most, one of the inspirations has been PepsiCo. The food subsidiary of the US

soft drink company has been successful in transforming agriculture in a part of

Punjab where Pepsi pioneered the concept of contract farming for bulk procurement

of crops like potato, tomato, groundnut, chilli and paddy. In partnership with the


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Opportunity in Indian Retail

Standing on the threshold of a retail revolution and witnessing a fast changing retail

landscape, India is all set to experience the phenomenon of a global village. Indiapresents a grand opportunity to the world at large, to use it as a business hub. A

Vibrant Economy, India tops A T Kearneys list of emerging markets for global

retailers for the 3rd consecutive year. The 2nd fastest growing economy in the

world, the 3rd largest economy in terms of GDP in the next 5 years and the 4th

largest economy in PPP terms after USA, China & Japan, India is rated among the

top 10 FDI destinations.

With a stable Government with 2nd stage reforms in place, India can be reasonably

proud of having put in place some of the most widely accepted Corporate Ethics

(Labour Laws, Child Labour Regulations, Environmental Protection Lobby,

Intellectual Property Rights, and Social Responsibility) and major tax reforms

including implementation of VAT, all of which make India a perfect destination for

business expansion.

India is the fastest-growing market in Asia Pacific for international tourist spending,

according to latest Visa Asia Pacific release. The economy is growing by over 8 per

cent a year and Indias growth rate can actually exceed that of China by 2015. TheIndian economy is expected to grow larger than Britains by 2022 and Japans by

2032 to become the third-largest economy in the world after China and US and

finally become the second largest economy after China by 2050.

Investments

51% FDI allowed in single brand retailing FDI Laws relatively liberal in wholesale

tradeMetro AG and Shoprite already operating

More Foreign Retailers eyeing possibilities in wholesale

Tesco and Carrefour expected to operate soon


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Wal-Mart has already sined a JV with the Bharti Group

Woolworths (Dick Smith Electronics - durable retail arm) recently started

their operations through a JV with Tatas with plans to open 60 Croma stores

by 2009.French retailer Geant is also expected to begin operations in India soon.

A report by investment banker Goldman Sachs, credits India with the potential to

deliver the fastest growth over the next 50 years. According to Standard & Poor's,

foreign direct investment (FDI) to India is likely to grow the fastest in next few

years. As targeted FDI is to hit $13 billion in the 12 months ending March 2007,

more than double Indias previous best of $5.5 billion hit in the previous year.

India is investing over US $130 billion in infrastructure by the end of this decade.Indian retail industry itself has attracted investment of over INR 200 billion (over $4

billion) in creating infrastructure, systems & shop-fit. The additional retail space is

expected to add INR 300 billion ($ 6.67 billion) of business to organised retail.

Indias stock market continues to rise at unprecedented levels and foreign investors

are flooding in. The quantum of investments is likely to skyrocket as the inherent

attractiveness of the segment lures more and more investors to earn large profits.

The Indian Consumer

With the largest young population in the world - over 890 million people below 45

years of age! India is indeed a resplendent market. India has more English speaking

people than in the whole of Europe taken together. Its 300 million odd middle class,

the Real consumers, is catching the attention of the world. As the economy grows

so does India's middle class. It is estimated that 70 million Indians earn a salary of

over INR 800,000 ($18,000) a year, a figure that is set to rise to 140 million by

2011. The number of effective consumers is expected to swell to over 600 million by2010 sufficient to establish India as one of the largest consumer markets of the

world

.


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Private Consumption & Retail

With the changing face of retail, the Indian consumer is in for a rapidtransformation. While the consumer spending continues to grow at double digit

figures, leading retailers have recorded an increase in sales between 50 to 100

percent in the calendar year 2006 over the previous year.

According to India Retail Report 2007, the total private consumption touched INR

20,000 billion (US $ 445 billion) at current prices in the calendar year 2006 with

organised sector accounting for INR55,000 crore ($12.4 billion) business increasing

its share to 4.6 per cent of the total Indian Retail Value that stood at INR12,000

billion ($270 billion). Moving forward, organized retailing is projected to grow at

the rate of about 37 per cent in 2007 and 42 per cent in 2008. Organised retail in

India has the potential to add over INR 2,000 billion ($45 billion) business by the

Year 2010.

The consumer spending is ultimately pushing the economy into a growth-and-

liberalisation mode. The Indian market is becoming bolder by the day, with the

economy now expected to grow at over 8 per cent and average salaries being hiked

by about 15 per cent, there will be lot more consumption.

Opportunity for Global Players

Favourable demographic and psychographic changes relating to Indias consumer

class, international exposure, availability of quality retail space, wider availability of

products and brand communication are some of the factors that are driving the retail

in India. Over the last few years, many international retailers have entered the Indian

market on the strength of rising affluence levels of the young Indian population

along with the heightened awareness of global brands, international shoppingexperiences and the increased availability of retail real estate space.

Development of India as a sourcing hub shall further make India as an attractive

retail opportunity for the global retailers. Retailers like Wal-Mart, GAP, Tesco, JC

Penney, H&M, Karstadt-Quelle, Sears (Kmart), etc stepping up their sourcing


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requirements from India and moving from third-party buying offices to establishing

their own wholly owned / wholly managed sourcing & buying offices shall further

make India an attractive retail opportunity for the global players.

Manufacturers in industries such as FMCG, consumer durables, paints etc are

waking up to the growing clout of the retailers as a shift in bargaining power fromthe former to the latter becomes more discernible. Already, a number of

manufacturers in India, in line with trends in developed markets, have set up

dedicated units to service the retail channel. Also, instead of viewing retailers with

suspicion, or as a necessary evil as was the case earlier, manufacturers are

beginning to acknowledge them as channel members to be partnered with for

providing solutions to the end-consumer more effectively.

Though l ucrative opportuni ties exist across product categori es, food and grocery,

nevertheless, presents the most sign if icant potenti al i n the Indian context asconsumer spending is highest on food.Further, wet groceries i.e. fresh fruits and

vegetables is the most promising segment within food and grocery as very few

organized retailers have tapped this opportunity in spite of wet groceries being the

preferred choice of most Indian households.

The next level of opportunities in terms of product retail expansion lies in

categor ies such as apparel, jewellery and accessor ies, consumer durables, cater ing

services and home improvement. These sectors have already witnessed the

emergence of organized formats though more players are expected to join the

bandwagon. Some of the niche categori es l ike Books, Music and Gi fts off er

in teresting oppor tuniti es for the retail players.

Currently the fashion sector in India commands a lions share in the organised

retail pie.This is in line with the retail evolution in other parts of the world, where

fashion led the retail development in the early stages of evolution and was followed

by other categories like Food & Grocery, Durables etc. Fashion across lifestyle

categories makes up for over 50 per cent of organised retail and with the kind of

retail space growth that India is witnessing we can certainly foresee a very healthy

prospect for the fashion industry.

As nations become richer, their people start appreciating luxury goods and f ine

din ing. I ndia has over one mi l l ion such people and this number is expected to


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triple by 2010. A recent report divides consumers for luxury goods into four

categoriesluxuriated: source of affluence is largely traditional and inherited; New

rich: adequate spending power and are acquiring orientation to luxury; Getting there:

acquiring spending power and spend mainly on education, housing and large

automobiles; Mid-affluent: are also acquiring orientation to luxury but unlikely toindulge beyond a limit.

The most important categories for luxury goods consumers are housing, travel,

education, higher end automobiles, electronics and other home improvement

products besides fashion, lifestyle and fine dining. The most important reason for

luxury retail not taking off in India so far has been the lack of luxury retail

environment. The presence has been primarily confined to luxury hotels with

shopping plazas.

Retail Space Growth

100 mn sq ft of quality shopping centre space by 2007-08

To generate retail sales of over Rs. 50,000 cr ($ 11 bn)

Rs. 20,000+ cr ($ 4 bn+) investment in pipeline for retail infrastructure, systems &

shop-fit

Space for 15,000+ new outlets, 100 hypermarkets, 500 department stores and 2000

supermarkets

Over 10,000 small and big existing outlets to undergo complete facelift

By the Year 2010-11 this space will grow to 300 million sq. ft. offering business

worth over $17 billion for Design, Shop Fit and support systems.


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Plans of Some of the Large Retailers:

Pantaloon : Expansion into all possible formats of retail across categories and

segments. 30 mn sq.ft by FY10, foray in insurance, real estate and consumer financethe turnover is expected to touch Rs. 30,000 cr ($ 6.67 bn) in FY10-11.

Reliance: Rs. 30,000 cr ($ 6.67 bn) investment to set up multiple retail formats with

expected sales of Rs. 90,000+ cr ($ 20 bn) by 2009-10

RPG : Planning IPO, 450+ MusicWorld, 50+ Spencers Hyper covering 4 mn sq ft

by 2010

Lifestyle : Rs. 450+ cr ($ 90 mn) investment in next 5 years to expand on Max

Hypermarkets & value retail stores, Home & Lifestyle Centres.

Rahejas : Shoppers Stop, Crossword, Inorbit Mall, Home Stop and recently

lunched hypermarket named Hypercity. 55 hypermarkets across India, by 2015.

Subhiksha : 1000 stores and Rs. 1000+ cr ($ 240 mn) sales by Dec 2007.

Piramyd: 1.75 mn sq ft of retail space and 150 stores in next 5 years.

Trent: Trent to open 27 more stores across its retail formats adding 1 mn sq ft of

space in the next 12 DLF malls.

Trinethra: Recently acquired by the AV Birla group, Trinethra (currently with two

formats - Trinethra and Fabmall) plans 220 stores with a turnover of over Rs. 300 cr

($667 mn) this fiscal.

Vishal Group : Plans include an IPO and investment close to Rs. 1250 cr ($ 278mn) by 2010, targeting 220 outlets, taking its cumulative retail space to 5 mn sq ft

and sales turnover of Rs. 5000 cr ($ 1 bn+).

Bharati Group : Plans Rs. 31,500 cr (US$ 7 bn) investment in creating retail

network in the country including 100 hypermalls and several hundred small stores


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RESEARCH METHODOLOGY

Type of research : Descriptive research

Sampling technique : Restricted random sampling

Size of the sample : 250

Type of data : Primary data

Data collection instrument Questionnaire method

Sources & statistical analysis Through chart & table


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DATA ANALYSIS & INTERPRETATIONQ1.How frequentl y you visit Vishal Mega Marts?

a)

More than once in a week

b)Once in a week

c)

Once in a month

d)Not estimated

More than once

in a week

Once in a week Once in a month Not estimated

No. of

Respondents13 81 54 102

More than once in a

week, 13

Once in a week, 81

Once in a month, 54

Not estimated, 102

0 1 2 3 4 5

-20

0

20

40

60

80

100

120

NoofRespondents


Once in a week

Once in a month

Not estimated


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Interpretation: This question was designed in order to study the buying pattern of the

consumers. The findings showed that 40.8% consumers most of them are not random in their

buying. Although there are 32.4% & 21.6% people who visit Vishal Mega Mart once in a week

and month respectively. We can say around half of the buying in Vishal Mega Mart is frequent &

random and the rest is vice-versa.


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Q2. Which type of retail outlet would you prefer for shopping?

a)

Mom & pop shops

b)

Retail as separate outlet

c) Shopping malls

d)Anyone of them

Mom & pop shopsRetail as separate

outletShopping malls Anyone of them

No. of

Respondents

00 59 124 67

Interpretation: This question was asked in order to know the preference of the consumers

among the various available options. The findings were quite surprising that none of them prefer

Mom & pop shops, although 26.8% people are ready to choose anyone of them. This shows the

increased attraction towards complete shopping experience which consumers get in shopping

malls.

Mom & pop shops, 0

Retail as separate

outlet, 59

Shopping malls, 124

Anyone of them, 67

0 1 2 3 4 5

-40

-20

0

20

40

60

80

100

120

140

160

No

ofRespondents

Mom & pop shops

Retail as separate outlet

Shopping malls

Anyone of them


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Q3. How deep is your attachment with Vishal Mega Marts?

a) Loyal

b)

Loyal to some extent (f ir st choice)

c)

Depends upon the requir ements and convenience

d) Disloyal

Loyal Loyal to some

extent

Depends upon the

requir ements &

convenience

Disloyal

No. of

Respondents

18 76 156 00

Interpretation: This is a very important question due to the fact that it not only shows the

level and pattern of attachment but also the level of satisfaction of consumers. The results showed

Loyal, 18

Loyal to some

extent, 76

Depends upon the

requirements &

convenience, 156

Disloyal, 0

0 1 2 3 4 5

-50

0

50

100

150

200

NoofRespondents

Loyal

Loyal to some extent


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that a large no. of respondents (62.4%) keep their options open and decide according to their

requirements and convenience. Although lots of people (30.4%) find themselves loyal to some

extent and 7.2 % are loyal.

We can say that overall consumer behavior is inclined towards loyalty depending upon our abilityto provide complete range, quality, service and convenience.


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Q4. Level of satisfaction in Vishal M ega Mart f rom

1)

Ambience :

a)

Very Goodb)Good

c)

Average

d)Poor

Very Good Good Average Poor

No. of Respondents 04 79 149 18

Very Good, 4

Good, 79

Average, 149

Poor, 18

0 1 2 3 4 5

-40

-20

0

20

40

60

80

100

120

140

160

180

No

ofRespondents

Very Good Good

Average Poor


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Interpretation: F indings show that f rom the ambience of Vi shal Mega Mar t the level of

satisfaction of 59.6% consumers is average & of 31.6% consumers is good. Only 1.6%

customers are well satisf ied & 7.2% are unsatisf ied also. Ambience is having extr emely

important role to visit the retail outlet & wil li ngness to buy products.

2)

Customer Deali ng :

a) Very good

b) Good

c)Average

d)Poor



Very Good, 14

Good, 76

Average, 157

Poor, 3

0 1 2 3 4 5

-50

0

50

100

150

200

NoofRespondents

Very Good Good

Average Poor


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Interpretation: Customer dealing i s a very crucial factor behind success of any retail

outlet & in thi s question their l evel of satisfaction f rom customer dealing shows that some of

them (36%) are satisf ied up to some extent, nevertheless most of them (64%) are not properl y

dealed by sales executives of Vishal Mega Mart.

3)

Product Quali ty :

a) Very good

b) Good

c)Average

d)Poor



Very Good, 16

Good, 173

Average, 61

Poor, 0

0 1 2 3 4 5

-50

0

50

100

150

200

250

No

ofRespondents

Very Good Good

Average Poor


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I nterpretation:Qual ity of product i s as important f actor for any business as blood for

human l if e & he findings shows that most of the consumers are satisfied by the quali ty aspect of

Vishal Mega Mart.

4)

Schemes :

a) Very good

b) Good

c)

Average

d)

Poor



Very Good, 83

Good, 71

Average, 96

Poor, 0

0 1 2 3 4 5

-20

0

20

40

60

80

100

120

No

ofRespondents

Very Good Good

Average Poor


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Interpretation: I t can not be neglected that schemes help to increase footfall s & sales in

any retail outlet. & thi s is good that Vishal M ega Mart provide dif ferent-dif ferent schemes to

their customers always & most of its customers are satisfied f rom i t.

5)

After Sales service :

a) Very good

b) Good

c)

Average

d)

Poor



Very Good, 48

Good, 163

Average, 39

Poor, 0

0 1 2 3 4 5

-50

0

50

100

150

200

No

ofRespondents

Very Good Good

Average Poor


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Interpretation: Resul ts are quite favorable for Vishal Mega Mart. M ost of the customers

are satisf ied by their after sales services, which inf luence them to visi the store again. We can

say that af ter sales services play a complementary rol e in decision making process as they play

very in fl uential r ole in evaluating vari ous retail stores.

6)

Secur ity Measures :

a) Very good

b) Good

c)Average

d)Poor



Very Good, 57

Good, 132

Average, 61

Poor, 00 1 2 3 4 5

-40

-20

0

20

40

60

80

100

120

140

160

No

ofRespondents

Very Good Good

Average Poor


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Interpretation: Resul ts show that secur i ty measur es of Vishal Mega Mart are also in a

good positi on, which make mind of consumers free of tension & they can do their shopping

easil y & more comfortably.

Q5. To locate your preferred product in Vishal M ega Mart is

a) Very easy

b)

Easy

c)A little bit tough

d) Tough

Very easy Easy A lit tle bit tough Tough

No. of

Respondents

42 106 84 18

Very easy, 42

Easy, 106

A little bit tough, 84

Tough, 18

0 1 2 3 4 5

0

20

40

60

80

100

120

140

NoofRespondents

Very easy

Easy

A little bit tough

Tough


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I nterpretation: F indings show that approx. 50% of the respondents can locate their

preferred product easil y,but in the other hand half of the respondents are not comfortable to

locate easily,which shows executives inefficiency in Display & Visual Merchandising.So,

Avail abil ity of products are also very important point ,which should be kept in mind by retailers.


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Q6. Do you purchase the in store brandsproducts of Vi shal M ega Mart in Food

mart section?

a) Always

b) Mostly

c) Sometimes

d) No

Always Mostly Sometimes No

No. of

Respondents 08 46 129 67

I nterpretation:Resul ts show that there are very few customers, who purchase the Vishal

in store brands products in food mart section, which is not the favorable condition for Vishal

Mega Mart.

Always, 8

Mostly, 46

Sometimes, 129

No, 67

0 1 2 3 4 5-20

0

20

40

60

80

100

120

140

160

No

ofResponden

ts

Always Mostly

Sometimes No


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Q7. If no, whats the reason?

a) Quality

b)Price

c)Brand Loyalty

d)

Awareness

Quali ty Pri ce Brand Loyalty Awareness

No. of

Respondents 04 00 14 49

Quality, 4

Price, 0

Brand loyalty, 14

Awareness, 49

0 1 2 3 4 5

-10

0

10

20

30

40

50

60

No

ofResponden

ts

Quality

Price

Brand loyalty

Awareness


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Interpretation: This question is designed to know why customers are not interested in

Vishal in store brands product ? & the result is quite surprising that 73.13% of them are

unknown to their in store brands products.

.Q8. Would you prefer home deli very services if Vishal Mega Mart of fers ?

a)

Yes

b)Somewhere

c) Cant say now

d)No

Yes Somewhere Cant say now No

No. of


Yes, 43

Somewhere, 189

Cant say now, 18

No, 0

0 1 2 3 4 5

-50

0

50

100

150

200

250

No

ofRespondents

Yes

Somewhere

Cant say now

No


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I nterpretation:This question was asked in order to forecast the future of Home delivery

services, if Vishal Mega Mart provides it to its customers & the results provedthat lar ge no. of

people (93.2%) are wil li ng to use this service in fu ture according to their convenience.

Q9. Do facil it ies l ike Fun stations, Play stations, Junk food stall s, PVRs attract

you to go to any mall or r etail store ?

a)

Yes

b)

No

c)Doesnt matter

d)

Cant say

Yes No Doesnt matter Cant say

No. of


Yes, 153

No, 36

Doesn't

matter, 61

Can't say, 0

0 1 2 3 4 5

-50

0

50

100

150

200

No

ofRespondents

Yes

No

Doesn't matter

Can't say


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I nterpretation:For most of the respondents (61.2%) facil iti es li ke Fun stations,Play stations, Junk food stall s, PVRs aff ect positively their choice of retail outlet

or mall .Defini tely thi s denotes the importance of these facil it ies as it is the dri ving force formost of the respondents and people want a complete shopping experience.

Q10. How you grade Vishal Mega Mart as a big retail chain ?

a)

The best

b)

Better

c) Good

d)Bad

e) worst

The best Better Good Bad Worst

No. of

Respondents00 43 207 00 00

Interpretation: T& Finally this question was asked in order to identify the level of gradingof Vishal Mega Mart by its customers in comparison to other retail chains.

& the result shows that most of the respondents (82.8%) are giving it good position, which is onlyone step greater than bad & according to very few respondents (17.2%) it is better than other

retail chains.

No. of

Respondents, 0

Better, 43

Good, 207

Bad, 0 Worst, 0

0 1 2 3 4 5 6

-50

0

50

100

150

200

250

No

ofResp

ondents

No. of Respondents

Better

Good

Bad

Worst


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CONCLUSIONS

1)From the above research done on the trends of Indian retail industry,

following conclusion will be drawn:-

Indian retail industry has metamorphosed from kiranas (pop and mom

stores) to big space super markets.

The unorganized retailing has overtaken by the organized retailing though

the share of organized retailing is very less in current scenario.

Organized retailing is mostly seen in urban areas due to more disposable

income of this population.

Now the format of retailing has changed a lot to give more buying

experience to consumers.

Indians prefer to shop at modern trade (super markets, hypermarket etc.)

due to higher standards of hygiene and attractive ambience.

Changes in lifestyledemand for global trends have given thrust on the

growth of specialty shops etc.

Consumer durables are another promising sector because, with increasing

purchasing power, consumers tend to spend the most on this category.

As government is continuing its plans to liberalize FDI in the retail sector

in India, foreign companies like Wal-Mart are waiting on the threshold.

Malls have mushroomed in various locations and they become the

centres of entertainment for the new generation.

Rural markets emerging as a huge opportunity for retailers reflected in the

share of the rural market across most categories of consumption.


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2)On the basis of the study of consumer behavior of Vishal Mega Mart, it can be

safely concluded that various factors affect buying behavior of retail

consumers differently at different levels. These factors have to be taken in

consideration while deciding and targeting the consumers. If the Vishal Mega

Mart focuses and targets on recent trends of Indian Retail Industry priority

wise, definitely the outcome will be very favorable for them. The conclusions

drawn from the study of their consumer behavior is as follows:

Today customers want a complete shopping experience rather than only to

go & purchase the products & to get this shopping experience they prefer

to go to malls or those retail chains, which provide it to them.

Some of the consumers of Vishal Mega Mart are loyal towards it,but

loyalty of most of them depends on their requirements & convenience.

Their level of satisfaction from

Ambience :Average

Customer dealing :Good & Average

Product quality :Good

Schemes : Very good, Good & Average

After sales services :Good

Security measures :Good

Some of its customers are able to locate their preferred product easily,

but some of get it tough too, which shows the inefficiency in display &

Visual Merchandising of their employee.

The survey shows that there are many of the customers, who are unaware

of their in storebrands products in foodmart section.


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SUGGESTI ONS

First of all, Vishal Mega Mart should provide Fun stations, Play stations,

Junk food stalls etc. to its consumers that they could get a complete shoppingexperience, what they actually want.

It should start some customer loyalty programsfor its regular customers.

For instance :If a customer does a shopping of 1000,hell get 10% discount

on next purchasing or, there may be lucky draw, gift coupons etc. for them.

The next effort should be to make some investment in improving the interiors

of their respective establishments to make shopping an enjoyable experience

for the customer.

Sales executives should be trained properly about how to deal with customers,

proper Display of products & Visual Merchandising, Colour Blocking, so

that customers could easily locate their preferred products.

It should use different kind of Sales Promotion Tools to make aware to its

customers about their in store brands products.

It should start home delivery serviceson the order of more than 1000 Rs.

It should provide more hygienic and attractive environment & ambience to its

customers.

As its target segment is lower-middle income group, but nowadays it should

target the middle & middle-upper income group also due to more chances of

profit from them.


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LIMITATIONS

The reliability always depends upon the responses of respondents how sincerely

they have given answer.

Constraint of time and resources limited the scope of study.


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88

QUESTIONNAIRE

Dear Sir/Madam,

Q1.How frequentl y you visit Vishal Mega Marts?

a)


b) Once in a week

c) Once in a month

d)

Not estimated

Q2. Which type of r etail outlet would you prefer for shopping?

a)Mom & pop shops

b)Retail as separate outlet

c)

Shopping malls

d)

Anyone of them

Q3. How deep is your attachment with Vishal Mega Marts?

a)

Loyal

b) Loyal to some extent (first choice)

c) Depends upon the requirements and convenience

d)

Disloyal

Q4. Level of satisfaction in Vishal M ega Mart f rom

Very good Good Average Poor

1) Ambience

2) CustomerDealing


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90

a)

Yes

b) Somewhere

c)

Cant say nowd)

No

Q9. Do faci li ties l ike Fun stations, Play stations, Junk food stall s, PVRs attract

you to go to any mall or r etail store ?

a)

Yes

b)

Noc)Doesnt matter

d)

Cant say

Q10. How you grade Vishal Mega Mart as a big retail chain ?

a)

The best

b)

Betterc) Good

d)Bad

e) worst


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BIBLIOGRAPHY

BOOKS

RESEARCH METHODOLOGY by C. R. Kothari

INDIAN RETAIL SECTOR:A Primerby Mehrotra, Nitin

RETAIL INDUSTRY :SHANGING TRENDSby Kesksr, Dhananjay.

WEBSITES

www.vishalmegamart.net

www.imagesretail.com

www.indiaretailbiz.com

www.india-reports.com

www business mapsofindia com
http://www.vishalmegamart.net/http://www.imagesretail.com/http://www.indiaretailbiz.com/http://www.india-reports.com/http://www.business.mapsofindia.com/http://www.business.mapsofindia.com/http://www.india-reports.com/http://www.indiaretailbiz.com/http://www.imagesretail.com/http://www.vishalmegamart.net/

“marketing research of vishal mega mart in retail industry”

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