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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

PRICE GAP ANALYSIS IN DIFFERENT RETAIL STORES

Submitted to Lovely Professional University

In partial fulfilment of the

Requirements for the award of Degree of

Master of Business Administration

Submitted by:

NIKHIL KUMAR NADDA

10906313

Under Guidance:

Mr. Vikash sir (Store Manager)

(Vishal Mega Mart)

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DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA(2010-11)

ACKNOWLEDGEMENT

It is indeed of great moment to pleasure to express my senses of per found gratitude & ineptness to all the

people who have been instrumental in making my training a rich experience. The successful task would be

incomplete without the mention of the people whose constant guidance and encouragement crown all efforts

with success.

I express my sincere gratitude to my training guide “Mr. Pratish Srivastav” (Retail teacher) for giving me an

opportunity to do my summer training at his esteemed organization “Vishal Mega Mart.”

I would like to extend my heartiest thanks to my corporate guide “MR. Vikas sir” (Store manager in Vishal

Mega Mart) who took out time from his busy schedule to brief me and provide me with valuable suggestions

from time to time.

I am thankful to “Mr. Rahul” (Assistant Store Manager) for providing continuous cooperation, support and

expert guidance throughout my project.

I would also like to pay my acknowledgement to all respondents for taking out time from their busy schedule

and providing me with relevant information which contributed significantly in my project analysis.

(NIKHIL KUMAR NADDA) 

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TABLE OF CONTENTS

CHAPTER-1                                                                   

INTRODUCTION OF RETAIL INDUSTRY

SPREAD OF ORGANIZED RETAIL IN INDIA TOP RETAILERS OF THE WORLD

CHAPTER-2

INTRODUCTION OR HISTORY OF VISHAL MEGA MART

INFRASTRUCTURE OF VISHAL

GROWTH PATH OF VISHAL

COMPANY PROFILE

LOCATION OF THE STORE

CHAPTER -3

CURRENT SCENARIO OF VISHAL

SWOT ANALYSIS

COMPETITORS OF VISHAL

MERCHANDISE MIX

VISUAL MERCHANDISING AND DISPLAY OF PRODUCTS

REVIEW OF LITRATURE

CHAPTER- 4

PRICING AND SALES OF STORE

PRICING OBJECTIVES TARGET SETTING AND MONITORING

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CHAPTER-5

DIFFERENT SECTIONS OF VISHAL MEGA MART

MAIN SECTION OF THE STORE OVERVIEW OF CDIT MARKET CDIT PRODUCT AND SECTION AND BRANDS

CHAPTER-6

RESEARCH METHDOLOGY

SAMPLE DESIGNING QUESTIONNAIRE AND THEIR INTERPRETATION HYPOTHESIS SURVEY

CHAPTER-7

PRICING STRATEGY OF VISHAL

COMPARISON OF PRICES WITH OTHER STORES PRICE GAP CONCLUSION

CHAPTER-8

SUGESTIONS AND RECOMMENDATIONS

FORMET OF QUESTIONNIRE BIBLOGRAPHY

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CHAPTER-1

INTRODUCTION OF RETAIL INDUSTRY:--

If we study about the Indian retail industry then we would found that the India Retail Industry is the largest

among all the industries in the country. If we account for over 10 per cent of the country’s 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

Indian 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 behaviour, 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 centres, multi-storied malls and the huge

complexes that offer shopping, entertainment and food all under one roof. This proves good for customers

because now they can buy products according to there need under a single roof. A large young working

population with medium age of 24 years, nuclear families in urban areas, along with increasing working women

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.

In India the vast middle class and its almost untapped retail industry are the key attractive forces for global

retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow

faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-

200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail

Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the

India Retail Industry is looking promising with the growing of the market, with the government policies

becoming more favourable and the emerging technologies facilitating operations.

SPREAD OF ORGANIZED RETAIL IN INDIA:--

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Organized retailing is spreading and making its presence felt in different parts of the country. The trend in

grocery retailing however has been slightly different with a growth concentration in the South. Though there

were traditional family owned retail chains in South India such as Nigeria’s as early as 1904, the retail

revolution happened with various major business houses foraying into the starting of chains of food retail

outlets in South India with focus on Chennai, Hyderabad and Bangalore markets, preliminarily. In the Indian

context, a countrywide chain in food retailing is yet to be established as lots of Supply Chain issues need to be

answered due to the vast expanse of the country and also diverse cultures that are present.

MODERN TRADE : THE ORGANIZED RETAILERS:--

Within modern trade, we have:

1. The discounter (Subhiksha, Apna Bazaar, Margin Free)

2. The value-for-money store (Nilgiris)

3. The experience shop (Foodworld, Trinethra)

4. The home delivery (Fabmart)

TOP RETAILERS OF THE WOELD:--

RANK NAME OF THE COMPANY FORMATS

1 Wal-Mart Discount, Hypermarket, Supermarket, Superstore,

Warehouse.

2 Carrefour Cash & carry, Convenience, Discount,

Hypermarket, Supermarket.

3 Royal Ahold Cash and Carry

4 Home Depot DIY, Specialty

5 Kroger Convenience, Discount, Speciality, Supermarket,

Warehouse.

6 Metro Ag Cash & carry, Department, Hypermarket,

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Superstore.

7 Target Department, Discount.

8 Albertsons Drug, Supermarket, Warehouse.

9 Kmart Discount, Superstore

10 Sears Department, Mail order, Speciality.

CHAPTER-2 

INTRODUCTION OR HISTORY OF VISHAL MEGA MART:-

Firstly if we talk about the history and background of Vishal Mega Mart then we know that it is founded by

Mr. Ramchandra Agrawal, Mrs. Uma Agarwal and Mr. S.K. Agarwal. And first store was situated in

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

conglomerate encompassing 180 showrooms in 100 cities / 24 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

singe 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 a turnover of Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.

The group’s prime focus is on retailing. The Vishal stores offer affordable family fashion at affordable prices

so that everyone can buy the products from these stores and it always suit every pocket.

The group’s philosophy is integration and towards this end has initiated 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 in India. Its outlets cater to almost all price ranges. The

showrooms have over 70,000 products range which fulfills all our household needs, and can be catered to

under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store gives you

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international quality goods and prices hard to match. The cost benefits that is derived from the large central

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

Infrastructure of Vishal Mega Mart:-

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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 manufacture 1,50,000 pieces a month. The factory occupies 80,000 sq. ft. of covered

space. The Vishal Group indirectly gives employment to more than a 1,000 people. These people work in

ancillaries that supply finished goods to the company.

 

Vishal has 10 warehouses cater to 180 showrooms in 24 states and 100 cities across India. That

is covering about 29, 90, 146 sq. ft.

GROWTH PATH OF VISHAL MEGA MART:---

Vishal Start as a humble one store enterprise in 1986 Kolkata. In 2001 they launched Vishal Retail Ltd. After

that in 2002 they open its first store at Delhi. At that retail industry was in great boom. There were so much

other retailers also in the market such as Big Bazaar, Easy days, Reliance etc. After coming all these retailers

in the market it affect the profits of every retailer. In 2003 Vishal started its first manufacturing unit at

Gurgaon. It was one of good achievement of the store. Because after coming this manufacturing unit it

decrease the prices of its products. Every year Vishal start doing something extra. Such as in 2004 they open a

very big store. Which was 80000 sift. They join together all its stores with internet and in 2006 they installed a

very good software SAP which is very helpful in distribution center. This helps to maintain the record of

coming or going material from the distribution center. In 2007 Vishal launched first IPO. And in 2008 it is

nominated for gold medal at Gwalior. And also in 2008 it break the story of centuries of 100 retail chain

outlets in India.

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COMPANY PROFILE:--

Vishal Retail Ltd (VRL) is one of the leading retailers of India, currently operating around 50 retail stores

including two stores operated as its franchise. These 50 stores are spread over about 1.28 mn sq.ft and are

located in 18 states across India with strong presence in Tier II and Tier III cities under the brand name ‘Vishal

Megamart’. It sells ready-made apparels, a wide range of household merchandise and other consumer goods

such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, gift and novelties.

KEY HIGHLIGHTS OF VISHAL:--

ONE OF THE EARLY ENTRANTS:-- Led by Mr. R.C Agarwal Vishal Retail has been one of the early

entrants in the Indian Organized Retail industry, having started as a retailer of ready-made apparels in Kolkata

in 2001. In 2003, it acquired the manufacturing facilities from Vishal Fashions Pvt. Ltd and M/s Vishal

Apparels. Subsequently with the evolution of organized retail in India, the company diversified into other

product categories besides apparel. In FY07 Non Apparel and FMCG contributed around 21.8% and 15%

respectively to the total revenues of the company. Going forward the company plans to take the share of

FMCG sales to around 25% of total revenues in the next 2 years.

FOCUS ON VALUE RETAILING:-- Vishal Retail’s main focus is on the value retailing segment, targeting

the middle and lower middle income groups which constitute majority of the population in India. At present 43

out of the 50 stores of the company are located in Tier II and Tier III cities. This strategy enables it to capture

market share in these locations where majority of its target customers are located and there is less of

competition from the other branded retailers who normally do not have a presence in many of these locations.

EXPANSION PLANS:-- VishalRetail plans to increase its store space from 1.28 mn sq ft at present to 5 mn

sq ft by FY10. To fund its expansion plans the company intends raising around Rs 1.1 bn from this IPO. It

plans to open 32 stores in FY 08, 28 of which will be opened in Tier III cities, 3 of them in Bangalore Kolkata,

Mumbai and one in Pune. Out of these 32 stores, 22 will be funded from this IPO and the remaining by way of

debt and internal accruals. Firm arrangements for 13 out of these 32 stores have been already made

FINANCIAL FACTS – The total revenues and Net profit of the company grew at a CAGR of 87.12% and

268.43% respectively from Rs 499.6 mn and Rs 5.5 mn in FY03 to Rs 6026.53 mn and Rs 249.83mn

respectively in FY07. The EBITDA margins and net profit margins stood at 11.1% and 4.1% respectively in

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FY07.

BACKWARD INTEGRATION:-- In order to reduce costs and take advantage of economies of scale VRL

has embarked on backward integration of its products by setting up one apparel manufacturing plant in

Gurgaon. Besides this it has set up 7 regional distribution centers for ensuring efficiency of supply chain. The

company has developed a cost and time efficient distribution and logistics network and has a fleet of 41 trucks

for the fulfillment of the same.

OPERATIONAL PARAMETER:--- There was a marginal decline in the sales per sq. ft in FY07 to Rs 7,023

from Rs 7,139 in FY06, as it opened 27 new stores during the year and doubled its retail space from 5.43 mn in

FY06 to 1.26 mn sq.ft in FY07. With the increasing share of non apparel and FMCG products the average

selling price declined from Rs 116.82 in FY06 to Rs 84.9 in FY07. Average no of footfalls per day in FY07

were quite impressive at 89,829/day as against 29,470/day in FY06. The footfall conversion ratio stood at

56.3% and 42.16% for FY06 and FY07 respectively.

FINANCIAL DETAILS OF VISHAL MEGA MART:--

Financials Notes:--

The company’s third-quarter profit dropped 86 per cent to Rs 21.55 million despite a 24 per cent

increase in the total revenues to Rs 3,576 million. This was on account of higher interest expenses,

depreciation and increasing cost pressures. 

Though net sales have increased on a y-o-y basis, it has been depicting a weakening trend on a

sequential basis. Aggressive expansion through debt on high interest have caused the margins of the

company to deteriorate sharply.

The interest cost as percentage of sales has increased from almost 4 per cent in Q3FY08 to 8.04 per

cent in Q3FY09.

For the quarter, apparel sales constituted 54 per cent of revenues, followed by FMCG 22.6 per cent and

revenues from non apparel and others aggregated  23.4 per cent.

Reduced footfalls per day at 7 per cent sequentially to 1,98,000 could lead to further pressure in the top

line as well as the bottom-line of the company.

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LatestFinancials–RsMillion

ParticularsQ3 FY09 FY08

Net Sales 3554.5 9529.8

Other Income 21.3 77.6

Total Income 3575.8 9607.4

Total Expenditure 3116.6 8335.5

PBIDT 459.2 1271.9

Interest 285.7 364.1

PBDT 173.4 907.9

Depreciation 133.8 276.0

Tax 18.1 225.5

Exceptional items & extraordinary items 0 0

Profit After Tax 21.55 406.4

     

PBIDTM(%) 12.9 13.3

PBDTM(%) 4.8 9.5

PATM(%) 0.6 4.3

Financials Notes:--

The company’s third-quarter profit dropped 86 per cent to Rs 21.55 million despite a 24 per cent

increase in the total revenues to Rs 3,576 million. This was on account of higher interest expenses,

depreciation and increasing cost pressures. 

Though net sales have increased on a y-o-y basis, it has been depicting a weakening trend on a

sequential basis. Aggressive expansion through debt on high interest have caused the margins of the

company to deteriorate sharply.

The interest cost as percentage of sales has increased from almost 4 per cent in Q3FY08 to 8.04 per

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cent in Q3FY09.

LOCATION OF THE STORE

Vishal mega mart this store is located near Shakti Tower, which is near the bus stand of Jalandhar (Punjab).

Proper address of the store is given below.

Vishal Mega Mart

Shakti Tower B.M.C. Chowk

Jalandhar (Punjab)

Category:- Super Market

CHAPTER 3

CURRENT SCINARIO OF VISHAL MEGA MART:--

Vishal is one of fastest growing retailing groups in India. Just in two or three years it grow very fatly. Because

nowadays maximum peoples are going to buy products from retail stores. If we talk about its outlets they are

all over the country and its outlets cater to almost all price ranges. The showrooms have over 70,000 products

range which fulfills all your household needs and can be catered to under one roof. It is covering about

13,38000 sq. ft. in 18 state across India. Each store gives you international quality goods and prices hard to

match.

SWOT ANALYSIS OF VISHAL RETAIL:--

STRENGTHS:--

Strong in value retail segmentation.

Efficient supply chain system.

Efficient logistics and distribution network.

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Wide geographically spread.

Doing good performance in every city where it open its stores.

WEAKNESSES:--

It viewed as a poor cousin of biggies like Pantaloon, Big Bazaar etc.

Customer dissatisfaction with billing, store interior, sales staff.

Slow adoption of technology.

Brand building not aggressive.

OPPERTUNITIES:--

Greater consumer performance for organized retailing.

Increasing consumer performance for value for money.

Nowadays we are looking that lifestyle of consumers is increasing day by day that is good opportunity.

Indian middle class is growing that is also a great opportunity for retailers.

Disposable income of consumers is also increasing.

THREATS:--

There is multiple legislation that is a very big threat.

High cost/ unavailability of real estate.

Supply chain bottlenecks.

Stiff competition from small scale traditional format.

Dearth of trained manpower.

Possible entry of MNC giants.

COMPETITORS OF VISHAL MEGA MART IN JALANDHAR:--

Competitor literally means any Pearson or entry which is a rival against another. In business a company in the

same industry or a similar industry which offers similar products or services. The presence of one or more

competitors can reduce the prices of goods and services as the companies attempt to gain a larger market

share. Competition also requires companies to become more efficient in order to reduce costs. Fast-food

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restaurants McDonald's and Burger King are competitors, as are Coca-Cola and Pepsi, and Wal-Mart and

Target and Big Bazaar, Vishal mega, and Easy Day etc.

Vishal competitors in Jalandhar (Punjab)

1) EASY DAY.

2) BIG BAZZAR.

3) RELIANCE TRENDS & RELIANCE FREASH.

4) SARB

5) EMAR MGF MALL OF JALANDHAR.

6) VIVA.

All these are the competitors of Vishal Mega Mart. Which is near the bus stand of Jalandhar. In all the

competitors Easy day is the nearest competitor of Vishal Mega Mart. Which is quite near the store. Every

competitor always use to come with new strategies. So Vishal is also make some strategies so that it can

promote its sale. These strategies are like price reduction, giving offers, making contests, change in display,

advertisements.

HOW TO OVERCOME COMPETITORS:--

1) Learn your business well.

2) Identify the weaknesses of competitor.

3) To expect disagreements and objections.

4) Leverage competitors strength.

5) To improve closing techniques.

MERCHANDISE MIX OF VISHAL MEGA MART:--

In the store of Vishal Mega Mart we can found different sections of goods . In theses sections we can found

goods of our use. After visiting the store of Vishal Mega Mart Jalandhar we found there are total seven

sections in which we can got the goods of every kind. In every section we would found the sales peoples.

These peoples helps us in selecting goods. These people are so skilled peoples who can easily help us for

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selecting proper goods for us. There are eight section in the store. Which can be categories like this:--

1) Men’s Section :-- In the Men's section of the stores general line of new men's and boy's suits formal

wear, shirts, t-shirt, casual slacks, jeans, sports costs, blazers, sports apparel, sweaters, overcoats,

raincoats and accessories. Side on services may also include basic alterations, such as hemming, taking

in or letting out seams, or lengthening or shortening sleeves.

2) Life style section:-- In the life style section of Vishal Mega Mart we can find the goods of our daily

changing lifestyle. In this section there are sales girls who helps to find good product for us.

3) CDIT( Consumer durable and Information Technology) Section :--In the Vishal retail store we can found this

section in which we select goods for us like TV, Cameras, DVDs, VCDs, Steamers, Washing

machines, Speakers of different brands. In the Vishal retail stores we can also got the goods of their

local brands. These are the local brands so these goods are so cheap as we compare it with other stores.

4) FMCG( Fast Moving Consumer able Goods) Section :-- In the fmcg section these are the goods that we use

on daily basis. The section includes groceries, beauty products and home care products. This is also a

big section of Vishal retail.

5) Ladies Section:-- This is the section in which ladies can buy their clothes etc. In which we include

shirts, t-shirts, nightwear’s, Trousers, pants, short leaved dress etc. This kind of clothes ladies can buy

from this store.

6) Toys Section:-- In the store of Vishal we can also buy toys for our children. Maximum small children

like this section because they can buy toy for them. This section also a good section which is promoting

the sale of Vishal store.

7) Kids Section:-- In this section we can got the children clothes of bys and girls like dresses, skirts,

shirts, sweaters, shirts, pants etc. In this section we can also buy clothes for children because there are

some sales peoples in the section which is use to handle their customers. They help us in purchasing

clothes for children.

VISUAL MERCHANDISE AND DISPLAY OF PRODUCTS IN THE STORE:--

Objective:--

The objective of this is to ensure that the stores across India reflect a chain store image and there is consistency

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in the display of products and visual merchandising standards. Thus providing a common frame of reference to

the customer no matter where they shop.

To provide an environment for the customer which is both interesting and easy to shop.

Which in turn promotes and encourages multiple and repeat spending. Provide guidelines on how to launch a

promotion and how to launch sale, press

Conference, product launches and events to be added.

Merchandising principles:--

1 ) Merchandise on display reflects a good availability of product and sizes. Merchandise on display at

the front of the departments and in focal areas should reflect the stores and company image and branding

strategy.

2 ) Where the product is bought in more than one colour-way the full colour range and styles (where

possible) is on offer to the customer.

3 ) No packaging elements such as stuffing, cardboard slips etc are on display.

4 ) All lights are properly focused angled on the intended display. Ensure that no lights are out of

working order and that the correct bulb colour / light emitting shade is being used e.g. bright white light etc.

5 ) All signage being used is correct for the fixture and display intended. All promotions are highlighted

with the correct price and type of promotion.

6 ) Except during sale, merchandise is laid out according to the same end use within the floor layout set-

up.

7 ) This rule can be broken to create area’s of cross merchandising. This is normally best suited where

two products are bought together. Such adjacencies are where formal shoe is bought with a pair of formal

pants for example, but it can be as simple as a pair of socks or handbag etc. This is known as co-ordinated

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fashion accessorizing.

8 ) Depending on the shape and size of the store the fixtures are placed at 90 degrees to the walls. Should

the fixtures be required to be angled at 45degrees to accommodate customer flow, this will be conveyed and

decided by HO.

REVIEW OF LITRATURE:--

VISHAL MEGA MART EXPANDS IN PUNJAB

Vishal Mega Mart, is all set to launch its first hyper market and shopping mega mall in Navashehar, Punjab.

The Navashehar hyper mart is spread over a carpet area of 9,200-sq.-feet. It is the company's 16th store in the

state. 

They already have a presence in Amritsar, Patiala, Bhatinda, Phagwara, Khanna, Abohar, Sunam, Sangrur,

Batala, Manimajara, Gurdaspur, Sirhand along with two stores each in Ludhiana and Jalandhar, all in the state

of Punjab.

 According to the directors of the company, “We seek the profit margins in the bulk purchases and mass sales,

which is why we are able to offer such fine products at such low price structure.” Hence, it claims to offer its

consumers the finest quality of garments and latest in fashion and trend at the most reasonable prices. 

BAD COLOUR VISHAL MEGA MART TOLD TO PAY UP FOR SHIRTS:--

Sale of a defective shirt has cost Vishal Mega Mart, Model House, dear. The store has been asked to pay up Rs

1,000 as compensation and to refund the amount of the shirt to a consumer.

Arshdeep, a resident of Abadpura, said he had purchased a white shirt of Chlorine Co. worth Rs 345 on August

22 last year.

He said four days later, his wife washed the shirt. “Even as it was washed separately with Surf Excel, the blue

colour from the border of the shirt came out and blemishes spread all over the white portion of the shirt,” he

wrote.

He claimed that the blemishes could not be removed and the shirt could not be worn again. He said he, along

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with his friend, went to the manager of Vishal Mega Mart and showed him the stained shirt but he refused to

change it.

The counsel for the store resisted the claim and said the complaint was false and frivolous. He claimed that

there was no colour guarantee on cotton wash items. But the counsel for the complainant said the condition

was unreasonable and undesirable.

The forum, presided over by AK Sharma with member Darshan Singh, directed the store owner to replace the

stained shirt with a new one or refund the amount of Rs 345. The forum also asked them to pay Rs 1000 as

litigation expenses. An order ‘to stop selling all shirts of Chlorine of the same kind’ was also passed.

VISHAL MEGA MART EYES RS. 650 CRORETURNOVER IN CURRENT FISCAL:--

Vishal Mega Mart eyes Rs 650 crore turnover in current fiscal

Jalandhar, Sep 30 (PTI) Hypermarket retail chain Vishal Mega Mart today opened its first store in the city and

said it is looking at a 100 per cent growth in the current fiscal to take its turnover to Rs 650 crore.

The company is targeting sales of Rs three crore from its newly opened outlet here, with plans to achieve a

turnover of Rs 5,000.

CHAPTER 4

SALES PROMOTION AND PRICING:--

Sales promotion is an important issue for every organization. The main objective set by the organization is to

promote its sale. In Vishal Mega Mart they also take care of this issue. For this purpose they always use to did

experiments such as they use to adopt different policies. We can promote our sale if our products are so

cheaper as we compared it with other organization. But in the Vishal Mega Mart all the products are so

cheaper as we compare it with its competitors. That we found by visiting other stores near this store. One

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reason of these low prices is that Vishal use its local brands.

One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it

is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product

features, channel decisions, and promotion.

PRICING OBJECTIVES OF VISHAL RETAIL:--

The pricing objectives of Vishal Retail is to provide goods for each and every Pearson of the society.

Because in the company prices are set by taking care of common man. Some other Common objectives

include the following:--

Current profit maximization   :-- It seeks to maximize current profit taking into account revenue and

costs. Current profit maximization may not be the best objective if it results in lower long-term profits.

Current revenue maximization:-- It also seeks to maximize current revenue with no regard to profit margins.

The underlying objective often is to maximize long-term profits by increasing market share and lowering costs.

1) Maximize quantity:- – It seeks to maximize the number of units sold or the number of customers

served in order to decrease long-term costs as predicted by the experience curve.

2) Maximize profit margin  - attempts to maximize the unit profit margin, recognizing that quantities will

be low.

3) Quality leadership   - use price to signal high quality in an attempt to position the product as the quality

leader.

4) Partial cost recovery  - an organization that has other revenue sources may seek only partial cost

recovery.

5) Survival  - in situations such as market decline and overcapacity, the goal may be to select a price that

will cover costs and permit the firm to remain in the market. In this case, survival may take a priority

over profits, so this objective is considered temporary.

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TARGET SETTING AND MONITORING:--

Vishal Mega Mart is a famous shopping mall in the city Jalandhar. So store managers always try to provide

products according to their needs. Every month they get a target from head office. Store has to achieve this

target. For the fulfilment of this target the store manager give target to its sales peoples on the daily basis. In

the morning time they get their targets. After that they start their next work. Sales people tried to attract more

and more customers. And every month store achieve its goal that are set by the head office.

Objective:--

Target Setting Process to begin, right from setting the annual, quarterly, monthly, daily targets to

planning and monitoring the achievements.

To standardize procedures in monitoring targets.

To achieve 100% targets.

CHAPTER 5

DIFFERENT SECTIONS IN VISHAL MEGA MART:--

Vishal Mega Mart is one of the big shopping mall of Jalandhar Punjab. It is situated near the bus stand of

Jalandhar. The main thing about this mall is that we can get everything with cheaper prices as we compared

with other shopping malls. In Vishal Mega Mart we can get branded as well as local brands products. All kind

of fmcg products, mans wear, women wear, toys, sports kit, lifestyle products, footwear’s etc. So there are so

many sections in this store. All its section are known for its different qualities.

All the products are kept in racks, bins, salves etc. And the price of each and every product is written properly.

Tags are also available with the products. So that customers can select products according to their range. In

every shopping mall we can find different sections. So these we can also find in Vishal Mega Mart. There are

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three flours in this store and in every store there are two or three section which are directed by their section

readers. In every section four or five sales peoples. All the work of sale is done by those peoples.

MAIN SECTIONS OF VISHAL MEGA MART:--

1) Men’s Section.

2) Lifestyle section.

3) CDIT (Consumer Durable and Information Technology) section.

4) FMCG (Fast Moving and Consumer able Goods) Section.

5) Ladies section.

6) Toys section.

7) Kids section.

8) Food section.

Theses all are the sections that we can find in our store of Vishal Mega Mart. All sections are known for its

products. In every section all kinds of goods are available. During my summer training in Vishal Mega Mart I

learned so much things of store handling. In this I take part so much activities of the store. In our first week

store manager give us work of customer handling. It was great time for us that how we can attract our

customers. Firstly we face some problems but we learn it with the help of store members and section readers.

They all co operate us whenever we were in need of them. Store manager also help us in every step. He

everyday told us some kind of work related with our training. And after that he use to ask us about that work.

If some time we feel enable to complete that work he help us so much. So our summer internship was the great

experience for us to understand the working process of a shopping mall. We learned so much during these days

of our training.

OVERVIEW OF CONSUMER DURABLE AND INFORMATION TECHNOLOGY MARKET:--

22

The Indian consumer durables segment can be segregated into consumer electronics (TVs, VCD players and

audio systems etc.). Consumer appliances that is also known as white goods like refrigerators, washing

machines, air conditioners (A/Cs), microwave ovens, vacuum cleaners and dishwashers, Cameras etc. Most of

the segments in this sector are characterized by intense competition, emergence of new companies (especially

MNCs) and introduction of state-of-the-art models, price discounts and exchange schemes. MNCs continue to

dominate the Indian consumer durable segment, which is apparent from the fact that these companies

command more than 65 per cent market share in the colour television (CTV) segment. In consonance with the

global trend, over the years, demand for consumer durables has increased with rising income levels, double-

income families, changing lifestyles, availability of credit, increasing consumer awareness and introduction of

new models. Products like air conditioners are no longer perceived as luxury products.

The biggest attraction for MNCs is the growing Indian middle class. This market is characterised with low

penetration levels. MNCs hold an edge over their Indian counterparts in terms of superior technology

combined with a steady flow of capital, while domestic companies compete on the basis of their well-

acknowledged brands, an extensive distribution network and an insight in local market conditions.

CDIT SECTION OF VISHAL MEGA MART:--

In the store of Vishal Mega Mart there is a section for CDIT ( Consumer durable and Information technology)

goods. In this section there are two or three peoples who are doing sale work in the section. Firstly they told

each and every thing that customers ask. In this section all the products are not of national brands but there are

also some local brands in this section. The sale of this section is growing day by day . The rising disposable

income and declining prices of durable have resulted in increased volumes. An increase in disposable income

is aided by an increase in the number of both double income and nuclear families. The market for consumer

durables including ( entertainment electronics, communitarian and IT products) is estimated at Rs 32 billion.

The market is expected to grow at 10 to 12 percent annually and is expected to reach Rs 60 billion. The

product category of CDIT section of Vishal :--

1. Air conditioners.

2. Refrigerators.

3. Colour televisions.

4. Washing machines.

23

5. Video Cameras.

6. Speakers.

7. Hair dresser.

8. Vcds.

9. DVDs.

10. Cameras.

This is the product category of CDIT products in Vishal Mega Mart. We can buy such products from the CDIT

section of Vishal Mega Mart. In this section there are the products of many kinds of national brands. These

products are so much cheaper as we compare it with other local stores. During our training period we use to

visit so much retail stores like Big Bazaar, Easy Day, Reliance trends, Ritu Wears etc. In easy day only FMCG

products are cheaper other are costly But in Vishal all kind of products are cheaper. The reason for that is that

there are the products of some local brands as well as national brands. So these products are cheaper . Another

reason is that Vishal set its prices by taking care of common man. If we talk about the national income of

Indies people its so low. So it set its prices by taking care of national income of the country.

 CHAPTER 6

Research Methodology:--

MEANING OF RESEARCH-Research is an active, diligent, and systematic process of inquiry aimed at

discovering, interpreting, and revising facts. This intellectual investigation produces a greater knowledge of

events, behaviours, theories, and laws and makes practical applications possible. The term research is also

used to describe an entire collection of information about a particular subject, and is usually associated with

the output of science and the scientific method.

Research Design:--

DESCRIPTIVE RESEARCH:- Descriptive research includes surveys and facts findings enquiries of different

24

kinds. The major purpose of Descriptive research is the description of the state of affairs, as it exists at

present. It provides the data about the population or universe being studied. Descriptive research is used when

the objective is to provide a systematic description that is as factual as accurate possible. In this project we

have to find why there is price gap b/w Big Bazaar, Easy Day Vishal Mega Mart. therefore our research is

descriptive.

SAMPLE SIZE-  The sample size that we have taken is 100 peoples.:--

SAMPLE AREA-  Since the research is related with Retail Industry so the sample area that is

covered is as follows:--

PRIMARY DATA: – 

QUESTIONNAIRE:

Keeping in view the objective of study a questionnaire was selected. All questions were small in size and

arranged logically. And also the language was quite simple so that every person can understand it easily.

INTERVIEWS:

Information was also obtained by conversation with customers. They were interviewed personally for this

purpose.

SECONDARY DATA:--

The secondary information is taken from the company documents available on its websites.

The other related journals information and industry association site have also been viewed.

COLLECTION OF QUESTIONNAIRE:--

Sufficient time was given to the customers to fulfil the questionnaire.

PROBLEMS FACED DURING COLLECTION OF QUESTIONNAIRE:--

During the collection of questionnaire we have to face some kind of problems like some customers don’t

want to fulfil these questions. Some wren hesitating for giving the answer of such questions. Some were not

25

able because they said that they have to so much time for such kind of activities.

TABULATION:--

After all the questionnaires were collected back the responses were tabulated.

Each answer of the customers was tabulated to its respective category.

ANALYSIS:--

I have done a market field survey of Vishal Mega Mart. I have surveyed so much customers of Vishal Mega

Mart who come to visit the store. A specific series of questions was selected by me and I obtained data

regarding the prices of Vishal store and other stores of Jalandhar. The questions were all for the prices of

CDIT products because it was related with my project topic. The customers give me valuable information and

a proper analysis is done.

QUESTIONNAIRE

Personal Information

Dear sir/Madam

I Nikhil Kumar Nadda student of LPU. I am conducting a survey on price gap between stores .

So please provide me relevant information by filling this questionnaire to make my survey more

comprehensive. All details from your part will be kept confidential.

Name………………………………….

Sex:-a) male b) female

Contact no.:-………………………………

All the analysis and interpretation is discussed below:--

Q.1 Customers Monthly Income

26

Higher Income group 5%

No Income group 20%

Middle Income group 50%

Lower Income group 25%

HIGHER INCOME GROUP5%

NO INCOME GROUP20%

MIDDLE INCOME GROUP50%

25%

The above fingers are showing that Vishal is the shopping hub for middle level income group because of its

reasonable prices on its each product category. The higher level income level people don’t prefer do shopping

in Vishal as it doesn’t deal with the branded products. Because in Vishal there are the products of private

brands. The higher level income group people are very status conscious and their psychology is such type that

they don’t prefer much to visit Vishal Mega Mart. The lower income group people come into Vishal as they

get goods at good prices that they can afford. Hence according to me Vishal Mega Mart should include some

branded products also in their product category. It will encourage higher income people to come into Vishal

store.

Q.2 CUSTOMERS VISIT VISHAL MEGA BMART

Weekly 29%

Monthly 34%

Quarterly 23%

On unplanned basis 14%

27

weekly Monthly Querterly On unplanned basis

0%

5%

10%

15%

20%

25%

30%

35%

40%

From this I interpret that in Vishal Mega Mart 34% customers visit monthly, 29% customers visit weekly,

23% customers visit quarterly and 14% customers visit on unplanned basis. It means that mostly customers

visit weekly and monthly basis for their purchase requirements.

Q.3 APART FROM VISHAL MEGA MART VISIT RETAIL OUTLETS

Yes 64%

No 36%

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YesNo

From this I interpret that 64% customers of Vishal Mega Mart visit other retail outlets for their requirements

and 36% customers of Vishal Mega Mart generally do not visit other retail stores. It shows that customers

satisfaction level is more.

Q.4 PURPOSE BEHINDE VISITING VISHAL MEGA MART

Shopping 60%

Outing 10%

Both 30%

Shopping Outing Both0%

10%

20%

30%

40%

50%

60%

70%

From this I found that Vishal Mega Mart is purely a shopping complex but also facilitates a certain kind of

ambience and decorum to the people that they also visit it for the purpose of outing. The infrastructure and

ambience of Vishal is good so that people even like to go their even also they don’t have to purchasing

anything. People enjoy shopping in Vishal Mega Mart.

29

Q.5 PRTODUCTS MOSTLY PURCHASED BY CUSTOMERS IN VISHAL MEGA MART

Clothes 70%

Grocery 60%

Food Items 50%

Leather Items 15%

Electronic Items 25%

Gift Items 10%

Other Items 10%

These figures are clearly indicating that the demand for clothes is 70% is highest awe compared it with

grocery items the demand for them is 60%. The demand for food items by the customers is 50%, The demand

for leather items is 15%, The demand for gift items is 10 % and also the demand for other remaining items is

also 10%. And Electronic items hold 25% of demand by the customers of Vishal Mega Mart. From this I

found that the demand for clothes, Grocery products, food items, electronic in Vishal is good as we

compared it with other products of the store. To increase the demand for other products They must use good

brands products in the store.

Q.6 EXPENDITURE PATTERN OF THE CUSTOMERS COMING INTO VISHAL MEGA MART

Below Rs.500 / single visit 11%

500-1000 / single visit 16%

30

1000-1500 /single visit 22%

1500-2000 /single visit 22%

More than 2000 /single visit 29%

We can clearly see from these figures that majority of customers spend a lot in Vishal that is 29% of people

spend more than Rs. 2000 in single visit to Vishal. Equal number of people that is 22% of people each spend

Rs 1000-1500 and Rs. 1500 -2000 respectively in a visit to Vishal Mega Mart 16% people spend Rs, 500-

1000 and only 11% of customers are there who spend less than Rs. 500 in their visit.

From this I interpret that most of the customers purchase goods in bulk which leads them to spend a lot.

Volume of sale is good in the store.

Q.7 Brands and product availability in Vishal Mega Mart

Outstanding 3

Excellent 28

Good 22

Average 22

Bad 3

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Sales

OutstandingExcellentGoodAverage

This data got from the customers is showing that only 28% customers are saying that brands and products

available in the store are good 3% are saying that this is not good and 28% are saying that it is good not so

bad. This is showing that brands and products are not good in the store so they need to take care about the

brands in the store.

Q.8 How do you feel about sales persons and promoters

Outstanding 4

Excellent 21

Good 49

Average 23

Bad 3

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outstanding Excellent Good Average0

10

20

30

40

50

60

From the above figures we found that 74% customers are satisfied with the sales persons and rest 26% of

customers of Vishal Mega Mart are not sifted with the services of salespersons and promoters. This is good

for the store that so much customers are liking the services of the store.

Q.9 Prices of Vishal products

Outstanding 30

Excellent 22

Good 35

Average 10

Bad 3

33

PricesOutstadingExcellentGoodAverage 

The above figures are showing that 35 % customers are feeling that prices of Vishal products are good, 30 are

saying that it is outstanding, 22 are saying that it is excellent but 10% are saying that these prices are average

not so bad but 3% of customers are thinking that prices of the Vishal products are bad. Majority of people is

saying that these are good. So it is good for the store.

Q.10 In which store prices of CDIT products are good.

VISHAL MEGA MART 40

BIG BAZAR 22

EASY DAY 38

CDIT PRODUCT PRICESVISHAL MEGA MART BIGBAZAREASY DAY 

The above data is showing that 40% customers are satisfied from the prices of CDIT products in Vishal store,  38% customers are satisfied from easy day but there are only 22% customers are saying that CDIT product prices in Big Bazaar are good. Most of the customers are in favoured of Vishal Mega Mart that is good for the store.

34

HYPOTHESIS STUDY:--

A  hypothesis is an assumption about a population parameter. This assumption may or may not be true.

The best way to determine whether a statistical hypothesis is true would be to examine the entire population.

Since that is often impractical, researchers typically examine a random sample from the population. If sample

data are not consistent with the statistical hypothesis, the hypothesis is rejected.

There are two types of statistical hypotheses.

Null hypothesis. The null hypothesis, denoted by H0, is usually the hypothesis that sample

observations result purely from chance. 

Alternative hypothesis. The alternative hypothesis, denoted by H1 or Ha, is the hypothesis that

sample observations are influenced by some non-random cause.

In this study I am taking the sample size of 100 peoples randomly from the store who are visiting the store .

So N = 100 people. The sample size is more than 30 peoples so we need to do z-test in the study.

Process in our study to complete the z-test:

We select our sample size randomly.

The observation was independent.

e.g. Preference for Vishal products and Easy day products ( 4 section from the same family)

In this case standard error is not changed by treatments .

It means treatment adds a constant gain to each subjects pre treatment score:

1) Additive effective .

This is violated in practice but the tests are largely robust to this violation.

But sample distribution is normal.

35

So in this case we must need to use z-score distribution table

The other thing that we have to take care was that the population mean and standard deviation and sample size

must be known.

In this case mean = 100/3 = 33.33

So what I found from the hypothesis study it is totally assumption based. So after doing our internship we

assume that prices of Vishal are good for CDIT products as we compared it with other retail stores like Easy

day, Big Bazaar. And after getting the respondents answers we found that it is true. We also compare the prices

of these stores and we found that Vishal store is giving more cheap CDIT products as we comp[are it with

Easy Day, Big Bazaar. The only thing in the store is its private brands. Store is using more private brands.

PURPOSE AND OBJECTIVE OF THE STUDY:--

The purpose or objective of the study is to accomplish the following objectives:--

1) Proper understanding and analysis of the store Vishal Mega Mart.

2) To conduct a survey on a sample selected from the customers of Vishal Mega Mart. That what the

think about the prices of Vishal stores and other stores and to drive their opinions’..

3) To know the strategy to make a customer retention.

4) To analyze a comparative study of three store Vishal Mega Mart, Easy Day and Big Bazaar.

5) To compare the price gap of these stores and to know the brands of these stores.

6) To know that customers are satisfied from the store products or not.

36

CHAPTER 7

PRICING STRATGIES OF VISHAL:--

Pricing is a critical lever for every retailer and is uniquely tied to both top-line growth and margin generation.

Recently retailers have focused on price optimization software in order to amplify the earning power of their

pricing processes. While extremely powerful in application price optimization software only delivers benefits

when executed properly. Retailers can arm themselves with the best management team advanced software and a

stream of data-driven decisions. But these strengths can evaporate if store employees fail to execute the

company plan or if corporate data is improperly architected for the system. In reality, the perfect price is useless

if it never reaches the eyes of a customer. Too often execution errors plague retail environments thereby

thwarting potential pricing benefits.

Pricing effectiveness requires retailers to close the gap between strategy and reality. Achieving execution

proficiency, the keystone of any pricing program, requires a holistic approach that considers core operational

concepts in addition to innovative strategy and scientific techniques. An optimized price that fails to be

executed in stores is a defect of the pricing process. Advanced analytics that apply elements of neural networks,

Six Sigma, statistical process control, and behavioural demand modelling can help curb pricing defects.

Nevertheless to be successful a retail organization must leverage the science of pricing to support – not replace

– accountability and the fundamental principles of retail execution. Given today’s challenging environment,

price execution represents an opportunity to improve the bottom line while positioning stores for future growth.

After the successful completion of Vishal Retails IPO with the issue being subscribed 82 times over, the

company may stir the packaged mineral water market by launching a 1 liter bottle for as low as Rs.6 to be sold

initially at Vishal Megamart stores.

Vishal Retail though may be at a certain disadvantage as it is primarily located in northern and central India

while 40% of bottled water consumption is in western region. Some other strategies are given below:--

1) Vishal Mega Mart Gift Vouchers:-- Vishal mega mart also offers some kinds of gift vouchers to its

customers. So that more and more customers attracts for shopping in the store. It provides such gift like

Rachis & Rakhi gifts, Shipping in 24 hours, Cakes, Chocolates, Combos, Dry fruits, Flowers, Fruits, gift

certificates, sweaters etc to its customers with some selected products.

2) Occasion Gift:-- It is also providing gifts in occasion time like birthday gift, anniversary gift, Wedding

gifts etc. .

37

 

 

   

BearyRocherLovean...     1,026   892

FerreroRocher300(300gm)  

 825 599

3) To Provide discounts: -- Every Saturday and Sunday Vishal retail gives a lot of discounts to its customers on each kind of products. Because every Saturday and Sunday the got higher the target to achieve. To achieve this higher target they give discounts to their customers. And the give its detail in the local newspaper of the area so that people can be aware of this. With the help of such policies the use to increase its customers.

38

Private Label:-- Private label brands and strategies are evolving quickly.  Retailers have learned that a good 

private label strategy pays off big dividends in customer loyalty, margin enhancement, and category control 

over national brand manufacturers. So Vishal is using the product of private level. Retailers should be aware of the 

emerging best practices in pricing private label.  Supporting private label growth should be top priority in time 

and management as it adds profit at a much higher rate than any other  category in retail.  Establish an ideal 

price gap between private label and national brands, recognizing the consumer will evaluate the core suite of 

items (by size).   Support a value-price perception by adopting both long-term and seasonal pricing practices 

that capture margin targets.  Avoid line pricing organics or “better for you” products with mainstream items. 

They offer additional benefits and have competitive items of their own to take into consideration.   Private label

also enables retailers to all a hole in their product mix with the added benefit of not being subjected to a direct-

price comparison by developing new products of a different size, added features, unique flavors, or even

different packaging. This practice has resulted in multiple tiers of private label offerings but has some private

label items taking on the popularity of a national brand with consumers. By having a comprehensive data file

that can be intelligently and systematically analyzed, retailers can “reverse engineer” price gaps to identify the

right size and package for their new private label initiatives. Set a competitive price that generates better-than-

average margins. In terms of managing gaps between multiple private label tiers, a consistent and purposeful

price strategy.

Key oppertunities to leverage price optimization:--

Most retailers understand that being competitive on price-sensitive items helps build store traffic. But staying

competitive on price-sensitive items can result in minimizing or sacrificing profit on those items. So, how can

retailers attain portability and maintain a competitive footing? Emerging price science helps retailers create a

personalized strategy in a wide variety of dimensions. Below are five key areas of opportunity that can be

leveraged to maintain financial stability over the long term. A thorough price strategy incorporates each

components.

PRICE GAP BETWEEN VISHAL MEGA MART, EASYDAY, BIGBAZAR:--

Price gap means the different in prices. So there are several shopping malls in every part of the world . And we

are looking that the prices of each and every store are different even they are using the same brand products.

The reason behind this price gap is due to the competition in the market. Each and every day we are looking that

many kind of stores and shopping malls are opening. And another reason is that there are so many brands of a

39

single product are available in the market. Retailers are trying to provide unique services to its customers. So

there is the price gap between the products of the different stores.

During our internship days we use to visit different stores of Jalandhar (Punjab). In actual terms we were getting

our training in the store of Vishal Mega Mart. So it was easy for us to get the prices of its products. Then after

we visit Easy day and Big Bazaar also. To know the different brands are available in these stores. Every brands

were not available in these stores. In these days we found that Vishal retail store is using its private level of

brands. Because every one know that the products of these privet level products are cheaper as we compare it

with national brands of products.

PRICES OF SOME PRODUCTS OF CDIT SECTION WITH SIMILAR BRNDS IN THE STORE OF

VISHAL MEGA MART, EASYDAY, BIGBAZAR:--

CDIT PRODUCTS PRICE LIST

Products prices of Vishalprices of easy day

prices of big bazaar

Philips products1) 5 ch. Home Theater 8499 8390 109902) 5 ch. Home theater big 8999 8990 109992500 watt home theater 5.1channel 3999 3990 4510Philips room theater 3299Philips 5.1 channel + DVD player 2499 2190Haier 32 LCD 22999Soyer products:--5.1 ch. DVD player 1199 1375 1275DVD + 100 TV ch. 4999 4995 6175Kodak ComersKodak8.2MP+ACC 3799+499 4335 4575Kodak 10MP+AC 4499 4950 5090Kodak 12MP+AC 5499 5590 57952GB Memory Card 399 250 390Kodak 10.2MP 5999Kodak 14 MP 9795 10190Philips JuiceMixerGrinder 2690 2690 2795PhilipsMixerGrinder 1999 2995 2990

40

Philips Dry Iron 699 730Philips steam Iron 899 895 1029Hair Dryer 649 1045 999

This is the price list of CDIT section products of these three stores which are the nearly competitors of each

other. And after looking this price list we have get that the prices of these products are not similar in these

stores. After comparing these prices of these stores we found that brands are similar but prices are not similar.

The reason behind this, is that every retailer is doing their best to increase its customers. So there is also the

competition between the prices. No doubt there is gap between the prices of these stores but it is not so far. But

we found that if we talk about the CDIT products then we found that Vishal Mega Mart is a good store in

Punjab.

CHAPTER 8

SUPPLY CHAIN MANAGEMENT OF VISHAL MEGA MART:--

The role of supply chain in Indian organized retail is very significant for on it depends the growth of this sector.

The Indian Supply Chain Council have been formed to explore the challenges that a retailer faces and to find

possible solutions for India. The role of supply chain in the organized retail sector in India should be a shelf-

centric partnership between the retailer and the manufacture for this will create supply chains that are loss free.

This will also give rise to top and bottom line growth. In the organized retail sector in India.

The presence of fresh produce (vegetables and fruits) is very small. This is so for the nature of supply chain is

very fragmented. This shows the important role of supply chain in the organized retail sector in India. In the

organized retail market in India the role of supply chain is very important for the Indian customer demands at

affordable prices a variety of product mix. It is the supply chain that ensures to the customer in all the various

offerings that a company decides for its customers, be it cost, service, or the quickness in responding to ever

changing tastes of the customers. The infrastructure in India in terms of road, rail, and air links are not

sufficient. And so warehousing plays a major role as an aspect of supply chain operations. To overcome these

problems, the Indian retailer is trying to reduce transportation costs and is investing in logistics through

partnership or directly. The Indian organized retail sector is growing so the role of supply chain becomes all the

more important. It should become all the more responsive and adaptive to customers demand. There is also need

41

for the supply chain to be more cost efficient and collaborative to win the immense competition in this sector.

The role of supply chain in Indian organized retail has expanded over the years with the boom in this industry.

The growth of the Indian retail industry to a large extent depends on supply chain, so efforts must be made by

the Indian retailers to maintain it properly.

Objectives of Study of Supply Chain Management:--

1) To analyze the complexities involved in management of a supermarket.

2) To know the current suppliers.

3) To understand criteria of supplier selection.

4) To understand the key areas of company through which its tries to maintain the good supplier relation

hence to have the strong supply chain.

5) To recommend the strategies for future to increase the supplier satisfaction and to have the strong supply

chain.

Conclusion:--

During my study of supply chain management of Vishal Mega Mart I have found that Vishal Mega Mart is

using a different kind of supply chain which is different than other retailer. Vishal mega mart has its one bigger

warehouse where it keeps inventories i.e. all the supplied good by the different suppliers are kept their and then

the goods are supply to the Vishal Mega Mart stores according to their necessity. I think this kind of supply

chain is very good for Vishal Mega Mart because by having this kind of supply chain they are able to deliver

the goods to their stores in time. And with the help of this kind of warehouse we can easily change our

inventories according to our wish. Because they have divided supply chain in two parts that is the half of the

chain is completed by their suppliers and half of the chin is in the hands of Vishal mega mart itself. Vishal

Mega mart is planning to introduce a completely outsourced logistics and supply chain management in order to

cut costs and optimise margin. So what I found during my study of this section that this is the only section

through which we can control our inventory. For the purpose of loading and unloading of material there is the

facilities of different trails. In which some are very big but some are small in size. So what I found during my

training that supply chain management of Vishal Mega Mart is good. Now not only Vishal Mega Mart but also

other stores who are taking so much interest to develop there supply chain management. Because every retailer

know that it is also one section through which they can promote their daily profit earnings.

42

LESSON 8

SUGESSIONS AND RECOMMENDATION:--

Customer facility should always be under watch.

Store should provide free home delivery facilities also.

Company should take initiative to open new outlets in sub-urban

area also to improve the life standard of people living there.

Company should ensure that quality and quantity of the

commodity is accurate.

Generate employment in that area in which the retail store is

situated.

Company should do some CSR initiatives in that area to develop

the economic condition of people living in that area.

Company should provide regular training to their staff and aware

him with the modern technique of selling and customer dealing.

To be improved the parking facility.

Range of products should be maintained.

43

Pricing of products compared to other stores should always

monitor.

Freshness & quality of products should be always checked.

Teach the counterman how to behave with customer and maintain.

courtesy and helpfulness of store staff.

There is a long delay at the billing/payment counter, mainly

because of less number of billing machines.

There is always a lot of crowd at the weighting counter of the

vegetable section. People do not follow queue system but charge directly to the counter without considering that

other people are in the line. The placement of the weighing counter is also not appropriate, creating lot of

inconvenience of shopping.

FORMET OF QUESTIONNIER:--

Name of the customer:--………………………..

Sex :-- a) Male b) Female

Contact No……………………………………..

Occupation……………………….

Age…………………….

Members of Family:---……………………

Q.1) What is your monthly income?

a) 5000-10000 b) 10000-15000 c) 15000-20000 d) More than 20000

Q.2) How many times you use to visit Vishal Mega Mart?

44

a) Weekly b) Monthly c) Quarterly d) On unplanned basis

Q.3) Apart from Vishal Mega Mart you visit retail outlet.

a) Yes. b) No.

Q.4) Your purpose behind visiting Vishal Mega Mart.

a) Shopping b) Outing c) Both

Q.5) Which kind of product you use to buy from the store?

a) Clothes b) Grocery items c) Food items d) Leather items

e) Electronic items f) Gift items.

Q.6) What is your expenditure pattern after coming in the store?

a) Below Rs.500 b) 500-1000 c) 1000- 1500 d) More than 1500

Q.7) You like brands and product availability of Vishal Mega Mart.

a) Outstanding b) Excellent c) Good d) Bad

Q.8) How do you feel about sales persons or promoters of Vishal Mega Mart?

a) Outstanding b) Excellent c) Good d) Average e) Bad

Q.9) The prices of Vishal products.

a) Outstanding b) Excellent c) Good d) Average e) Bad

Q.10) Which store you would prefer for CDIT products.

a) Vishal Mega Mart b) Big Bazaar c) Easy day

45

BIBLOGRAPHY:--

Book Referred:--

Research Methodology (C.K.Kothari)

Retailing Management (Levy& weitz)

WBBSITES:--

www.vrpl.com

www.retailindustry.about.com

www.google.com

www.scrbed.com

www.vishalmegamart.com

www.answer.com