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“Marketing Strategies of Vishal Mega mart”
SUBMITTED TO PUNE UNIVERSITY In Partial Fulfillment of Requirements For the Award of Requirement of Masters of Business Administration BY GAURAV TYAGI MMM- II Roll No:- 25 PROJECT GUIDE MANISHA LANDE ACADEMIC YEAR 2010-2012 SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH KONDHWA, PUNE- 48
A man can become perfect with a perfect knowledge and experience. As a student of business management, we have studied many theories in the classroom but any professional degree is incomplete without practical knowledge of concerned field. And the same case is with management studies, management is incomplete without knowing practical application of theories studied. I have experienced and understood the practical importance of these theories on this training. More books and theoretical knowledge can’t help you in any field whether it is management or technical. Only thing can help you is practical knowledge. This development day provides a golden opportunity to the students for getting a perfect knowledge and experience. I come to know how the management of company is actually being done. How decisions are made? How people behave and decide what to purchase? As a part of my learning in management field and requirement of MMM program, I have been given an opportunity to grab practical knowledge in the area of marketing and I had selected “VISHAL MEGAMART”. I have made my best efforts to get knowledge and experience. During the day, I had collected necessary information, and I present all the necessary information to understand well.
ACKNOWLEDEMENTS The project work is pursued as a part of MMM curriculum at Pune University Pune. I would greatly rejoice to express emphatically with profound sense of gratitude and highest veneration, my sincere thanks to Pro-Manisha Lande for giving me guidance for this Project. The project is undertaken as training at Vishal Mega-Mart. The project is done under expert supervision and guidance of Mr. Ashish Kumar (Store Manager, Vishal Mega-Mart). I am thankful for him. I am short of words to express my respect & honor to my parents and family members & friend who showered their blessings, affection, encouragement, & inspiration, without which this report would not have been finalize. I also express my sincere thanks to my friends who helped me differently in the completion of my work. Last but not least, I also thank all those people whom I met at Vishal Mega-Mart during my internship and helped me to accomplish my assignments in the most efficient and effective manner.
have been duly acknowledged.DECLARATION I. if any. hereby declare that the project report on “MARKETING STRATEGIES OF VISHAL MEGA MART” is a result of my own work and my indebtedness to other work publications.GAURAV TYAGI. Place: Pune Date: 21/09/2010 Signature GAURAV TYAGI 4 .
I have prepared questionnaire for the survey. The finding of the thesis is that customer is interested in products and services given by Vishal Mega Mart & give different type of promotional activity for the effective market potential. 5 . From the questionnaire & the data collected from net & other resources and find market potential of big bazaar. The objective of this thesis is understood marketing strategies of vishal mega mart and its effect on the sales of its services and products. The sample size for this thesis is only 100 respondents. The limitation of this thesis is sample size. The methodology adopted by me for this thesis is to conduct a survey.EXECUTIVE SUMMARY “A comparative study of effectiveness of different promotional strategies (schemes) with reference to vishal mega mart” All this information has collected regarding the project through primary and secondary data. This report highlights on the understanding the marketing strategies of vishal mega mart and their effect on sales of the products.
.NO. Bibliography 6 . Data collections and Analysis Swot Analysis Questionare Chapter4. 4. Conclusion and Suggestion Conclusion Suggection 63 64 65 Chapter 6. 2. Findings Findings PAGE NO. 5.CONTENTS S. 1. CONTENTS Preface Acknowledgement Declaration Executive Summary Chapter 1. Research Meathodology Company Profile Vision Marketing Strategy Chapter3. 3. 2 3 4 5 8 12 13-14 15 16-20 21 25 37 45-47 45 47 60 60-62 Chapter 5. Introduction Introduction of Indian Retail Industry Objective of the Study Limitations of the Study Scope of the Study Chapter 2.
Chapter:-1. INTRODUCTION 7 .
A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer. RECENT TRENDS • • • • • Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Reliance Fresh are the best known examples of retail sector outlets in India. of which organized retailing (i. 8 . Retailing is the interface between the producer and the individual consumer buying for personal consumption. In some parts of the country. at a margin of profit. breaking the bulk Present in neighborhood or in the location which is quite convenient to the customers. Vishal Mega Mart. modern trade) makes up 3 percent or US$ 6. Some of the key features of retailing include: • • • • • • Selling directly to customers with out having any intermediaries Selling in smaller units / quantities. in recent year there are a number of companies have expressed their interest towards retail sector outlets. Pantaloon.Introduction of Indian Retail Industries: In the background of high consumerism and income of the urban consumers. As such. Besides it is also reported that the traditional retailing such an age old Grocery shops have directly faced competition with the organized retailing sector. the mindset of the existing customers have undergone drastic changes. retailing is the last link that connects the individual consumer with the manufacturing and distribution chain.4 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. big bazaar. it is reported that the traditional retails are resisting the entry of organized shopping malls.e. Very high in numbers Recognized by their service levels Fitting any size and or location It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas. As a result numbers of shopping malls have started their operations in metro and urban areas. For instance the traditional retails of Bhubaneswar with the active support of the consumers at large didn’t allow reliance Fresh to start outlet initially. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. Estimated to be US$ 200 billion.
900 crore is the largest of the different types of retail industries present in India. 7.00. There are many factors that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Retail market for food and grocery with a worth of Rs. retailing in India is superior to those of its contenders.7 percent.Retailing in India: the present scenario The present value of the Indian retail market is estimated by the India Retail Report to be around Rs. Some of them can be listed as follows: 9 . 43. 12. Retail sector is a sunrise industry in India and the prospect for growth is simply huge. The contribution of retail sector to GDP has been manifested below: Country Retail Sector's share in GDP (in %) India 10 USA 10 China 8 Brazil 6 As can be clearly seen.000 crore($270 billion) and the annual growth rate is 5. Furthermore around 15 million retail outlets help India win the crown of having the highest retail outlet density in the world.
10 . Comfortable Atmosphere. However only about 4. People and kids prefer to shop in an air conditioned a tech savvy manner.a typical Indian is most conversant with using credit cards than carrying money.retailing has helped in removing the middlemen and has thus enhanced the remuneration to farmers. The retail industry is the second largest employer in India. Chidambaram's recent statement “salaries ought not to be legislated” is a welcome move as most of the organized retail is in private hands. The major and minor players desperately need to work hard in this direction so that next time the figures look more decent.55. The government must also make an attempt to ameliorate the situation as political instability and infrastructure namely power and roads are the major roadblocks in the path of smooth functioning of the market. The demand of new as well as second hand durables has risen throughout the country thus providing the incentive for taking up retailing. It currently employs about 7 percent of the total labor force in India. Use of credit. This has led to the generation of insatiable wants of the upper and middle class. 000 crore ($12. Finance Minister P.4 billion).Rise in the purchasing power of IndiansThe rise in the per capita income in the last few years has been magnificent. Favorable to farmers. It generates about Rs. This is a new revolution in the agricultural sector in India and will go a long way in amending the condition of agriculture. These have led to a shift of the consumer base towards supermarkets and make the payments in the form of credit.a visit to a retail store appears to be more soothing for the generation-Y.6% of the total retail trade is in organized sector. a major concern among policy makers.
according to the survey conducted by KPMG for Federation of Indian Chamber of Commerce and Industry (FICCI). Fast Moving Consumer Goods (FMCGs).Components of Retail Sector The major components of the retail sector are: Food and Grocery. Apparel. followed by food and grocery. However. Footwear and leather. 11 . the food and grocery is expected to witness the fastest growth followed by clothing as the second-fastest growing segment. Watches. among these. which accounts for 11 percent of the total retail market. Jewellery. Consumer Durables. and Health and Beauty The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per cent of the organised retail pie.
12 . To learn their marketing mix. Learning how to reach your customers and how frequently you should try to communicate with them. The benefits of market research include: Learning who your customers are and what they want. thus improving return on investment. Learning the relative success of different marketing strategies.Objectives of the study • • To understand the different marketing strategies being followed by Vishal Mega Mart. Learning which advertising appeals are most effective and which ones get no response. not your own. It is also used to confirm whether the customer reacted to a marketing program as expected. Marketing help to define the business for the customer's interests. Learning how not to repeat your mistakes. It is the process of learning what customers want or need and determining how to satisfy those wants or needs.
but this study is conducted under certain limitations. INHIBITIONS OF THE RESPONDENTS The respondents did not reply the question with precision as they were busy with their own work or they were not interested in taking part in such a research. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA The research has been conducted for the Vishal mega mart(Shastri Nagar Garh Road. THE SAMPLE SIZE IS SMALL 13 . 4. LIMITATION OF TIME The limitation of time was another constraint in the study as the study had to be conducted in few months therefore many aspects have been left unexplored.Meerut) but not all their retail outlet have been covered therefore it has been mentioned that the research has been conducted in a limited area.LIMITATION OF THE STUDY Although it would have been nice to conduct a perfect research study. which cannot be achieved in such a short time. 2. So it is highly recommended to consider these limitations while going through the project study. Employees sometimes feel hesitated while telling about their view about their marketing strategies. LIMITATION OF DATA The statistical data regarding the city was not available to us on secondary source of data and to generate such data on the primary source was a task. which were faced while doing this research. 5. These limitations are as follows 1. Research period is not just much enough to know fully about the strategies & consumers perception 3.
it may not actually represent the whole population.The sample size taken for this thesis is small. 14 . psychology related to particular scheme which could base in nature These limitations were very common and yet we came across these with a positive note and the subsequent chapters in this report shall explain the rationality behind the structural compilation. The data collected were totally depending on the respondent’s views. perception. behavior.
Scope of study This project gave me great exposure to the customer’s perception to the marketing strategies adopted by the Vishal mega mart because it includes the service offered by them. 15 . The study also identifies the attitudes and preference of the consumers. The study also focused on Media through which the product reaches the consumers This project helped me in knowing the market practically.
this would facilitate to take decision. so procedures can be duplicated or understood by others Empirical. Demographic factors like age. Discovering new facts or verify and test old facts. 16 . concepts and theories. Collecting. It helps in making more generalization from the data available. It employs well-designed method to collect the data and analyses the results. The characteristics of research presented below will be examined in greater details later are: Systematic problem solving which identifies variables and tests relationships between them. Logical. organizing and evaluating data. income and educational background was used for the classification purpose.RESEARCH METHODOLOGY Definition of Research The word research is derived from the Latin word meaning to know. It disseminates the findings to contribute to generalize able knowledge. For the proper analysis of data simple statistical techniques such as percentage were use. Developing new scientific tools. which identifies and defines problems. It is a systematic and a replicable process. so others may test the findings by repeating it. so it investigates a small sample which can be generalized to a larger population Replicable. The data which was collected from a sample of population was assumed to be representing entire population was interest. so decisions are based on data collected Reductive. within specified boundaries.
• These three types can be viewed as cumulative. 17 . the next job is of data collection. For example: Whether decrease in price will lead to an increase in the sales of a product. Little prior knowledge is required. • Once the researcher has decided the ‘Research Design’. the possible decision alternatives. availability of distributors. It is an evidence of relationships of variables. For example: Determining the size of the market. unstructured and qualitative.1 Research Design: It was important to collect detailed information on various aspects for effective analysis. what should be the positioning of our product. For example: What new product should be developed.2. our observation needs to be organized so that we can get some patterns and come to logical conclusions. and relevant variables that need to be considered. • Causal Research: Causal studies are designed to determine whether one or more variables cause or determine the value of other variables. For data to be useful. studies of consumer attitude etc. The research design adopted for project research is Causal Research. etc. Research methods are highly flexible. sales analysis. or whether the presence of a sales person will help in increasing the sales in a retail outlet. Research design can be of three forms: • Descriptive Research: It is conducted to ascertain certain magnitudes and to provide an accurate snapshot of some aspect of the market environment. • Exploratory Research: This is used when one is seeking insight into the general nature of a problem. market share. etc.
2 Primary Data: It is one.3 Secondary Data 2. It can be obtained by: ° ° Company’s web Journals 18 .2 Primary Data 2.3 Secondary Data: When an investigator uses the data.Depending upon the sources utilized. statistical data can be classified into two categories: 2. It can be obtained by: ° ° ° Communication Observation Questionnaire 2. which is collected by the investigator himself for the purpose of specific inquiry or study. Such data is original in character and is generated by surveys conducted by individuals or research institutions. which has already been collected by others such data is called secondary data. This data is primary for the agency that collects it and becomes secondary data for someone else who uses this data for his own purpose. whether the data has come from actual observations or from records that are kept for normal purposes.
Therefore the sample size has to be decided for a meaningful 19 . surveys and secondary data from internet.° ° ° ° Reports Newspapers Government Publications Publication of professional and research organization. Secondary data are data that were collected for another purpose and already exist somewhere. It is obtained by study specifically designed to fulfill the data of the problem in hand.1 Defining data source: In the project. fresh data was collected by observing the relevant parameter of research. The research methodology involves the following major steps namely2.Observation research and surveys. books and text materials.2 Research approach 2. Primary data are data freshly gathered for specific purpose or specific project purpose. In observation research. Basically secondary data was used for evaluating the performance of stock market.22.214.171.124 Defining data source 2. Primary data are original in character. 2.2 Research Approach: In the project primary data was collected through observation research. newspapers and text materials.3.4 Sample Design: For carrying out any research or study on any subject it is very difficult to cover even 10% of the total population. 2. Primary data was collected in two ways: . In this project the secondary data are collected from internet. both primary and secondary data were used for the research process. This constitutes the chief material on the basis of which research work is carried out.
The questionnaires were structured non-disguised questionnaire because the questions. This has lead marketing researchers to use the questionnaire technique for collecting data more than any other method.conclusion.5. I have selected the persons randomly for research work. hence most convenient way is selected 2. no question can be termed as irrelevant.1 Sample Size: I conducted approximately 200 samples during my research. 2. Scientific method is not adopted in this study because of financial constraints and also because of lack of time. The method used for sample technique was non probability convenience sampling method. In this method questionnaire were distributed to the respondents and they were asked to answer the questions in the questionnaire.5 Method of data collection: The next step is together the requisite data. For designing the sample size. Considering the constraints. it was thought proper to cover a very small percentage of population in various age groups.2 Sampling Method: I used random sampling method for my research. also the basic aim of doing the research is academic. If one wishes to find what people think or know. it was decided to conduct the study based on sample size of 200 people in specific age groups. 20 . Convenient sampling is used because only those people will be asked to fill the questionnaires that were easily accessible and available to the researcher. were arranged in a specific order besides every question asked was logical for the study. There are two types of data collection method – primary data and secondary data 2.4. Where. which the questionnaire contained. the logical procedure is to ask them.4. 2.1 Instrument for data collection: I have used the questionnaire method in sample survey. This method is used because it is known previously as to whether a particular person will be asked to fill the questionnaire.
Instead of resting on its laurels the Group are busy identifying new avenues of growth by venturing in other formats like cash & carry.The questionnaire. The group has tied up with HPCL to open corner stores at their petrol pumps and in addition to the above Vishal has come up with an institute to train manpower for the service industry. Ram Chandra Agarwal. COMPANY PROFILE “Future is thinking beyond horizon” & in order to keep its pace with the modern retail. He was involved in all the aspects of the business: right from sourcing the garments to interacting with customers. Today Vishal Retail Limited. Flagship Company of Vishal Group. The first big store opened in Calcutta's Esplanade area in 1997. In tune with the pulse of the market. CMD. And this led to his greatest finding “The Vishal Group. were non-disguised because the questionnaire were constructed so that the objective is clear to the respondent. ft. In its efforts to strengthen thier supply chain. 2. including two stores which are operated by their franchisees. conclusive descriptive statistical study is the best study for this purpose as it provides the necessary information which is utilize to arrive at a concrete decision. According to Mr. the group owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling readymade garments.000 sq.000square feet and are located in 24 states across India. They knew why they asked to fill the questionnaire. All the similar responses are taken together as one and their percentages are calculated. Thus. under the banner of Vishal Garments. The respondents were aware of the objective. it operates 172 retail stores.00. Vishal Retail Limited is spreading its wings. The study is statistical because throughout the study all the similar samples are selected and group together. Vishal Retail Limited. As of December 1. . the researcher comes to the decision which is precise and rational. convenios as well as specialty stores and inspiring local retailers to grow along with the big names.” 21 . The study is conclusive because after doing the study the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. this. it has set up seven regional distributions centres and an apparel manufacturing plant.7 Data-analysis techniques: The study conducted is a conclusive descriptive statistical study. engaged in Hyper Market stores with an average area of 25.000 to 30. he envisioned a mega store that would sell garments at prices none other could match. 2010. These 172 stores are spread over about 24.
Small stores can avail of the benefits on account of the economies of scale. besides its brand and customer base. He has access to all reforms taking place through various arrays of communication. CMD. This partnership will help small retailers to survive the onslaught of organized retail as it will enhance their competitiveness. As per the plans. He moved to Delhi in 2001 and opened his first store in Delhi’s Rajouri Garden by the name of Vishal Mega Mart (The jewel in Vishal Group’s crown) and then there was no looking back for Mr. relative increase in the younger population. the group is now looking for franchisees to join hands with Vishal and grow under common banner. their business approach is to sell quality goods at reasonable prices by either manufacturing themself or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturers). FMCG and electronic goods. and the change in attitudes towards shopping. Age is also a major factor that affects the spending decisions of an individual. Ram Chandra Agarwal. It endeavour to facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire family. Vishal Retail will completely take over the supply chain of its franchisees and provide them with technology. Keeping this in mind. higher aspirations. The emphasis has changed from price consideration to design.After identifying the immense market in fashion garment for the masses. in addition to garments. consumer is more educated. It 22 . Vishal Mega Mart stores retail the entire range of household products. Some of the Franchisee exclusive business categories are: Mens Fashion Ladies and Kids Footwear Toys and Games Home – General Convenience (FMCG) CDIT Watches Mobile It follows the concept of value retail in India. quality and trendy. a key advantage for big retailers. Mr. new practices. He is becoming a “value shopper” everyday. visual merchandising skill and special promotional schemes. Vishal Retail Limited believes that the shopping habits of Indians are changing due to their growing disposable income. At present. In other words. Consumer spending is an important factor that affects the economic growth and development in a country. Ram Chandra Agarwal. As a trend. Vishal's prices are roughly 15 to 20 per cent less than other mass market garment labels.
Gurgaon (Haryana) and Delhi. Thier apparel manufacturing plant is located at Gurgaon. “Retailing is an engine for taking merchandise to the end-users. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the Indian retail industry. it has set up seven regional distribution centres located around Kolkata. In order to reduce costs and take advantage of economies of scale it has embarked on backward integration of their products. Thane (Maharashtra). Therein lies the road to success. it has focussed on developing a cost and time efficient distribution and logistics network. Ludhiana (Punjab). which currently comprises seven distribution centers and a fleet of trucks for transportation. Ghaziabad (Uttar Pradesh). For ensuring efficiency in supply chain.” says Mr. R C Agarwal 15 Board of Directors: 23 . Further. Mr. Jaipur (Rajasthan). Haryana.believes this concept has helped them grow to thier current size within a short time frame of their years. There is a lot of opportunity in this sector for us since demand of the potential consumers are not being met under the existing facilities.
Mr. Ram Chandra Agarwal, Chairman & Managing Director He holds a bachelor’s degree in commerce from St. Xavier’s College,Kolkata. Mr. Agarwal has more than 20 years of experience in the retail industry and has been with VRPL since their inception in 1997.
Mrs. Uma Agarwal, Executive Director She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of experience in the retail industry. She has been associated with accounts department of VRPL. Mr. Surendra Kumar Agarwal, Executive Director . . He holds a bachelor’s degree in commerce. Mr. Agarwal has more than 17 years of experience in the retail industry. He has been associated with store development and management at various locations of VRPL.
Mr. Bharat Jain, Independent Director He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather garments and accessories and has more than 23 years of work experience. Mr. Jain joined VRPL Board on May 8, 2006. Mr. Rakesh Aggarwal, Independent Director He holds a master’s degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on October 31, 2006.
OUR PROMOTERS AND GROUP COMPANIES Our Promoters The following individuals are the Promoters of our Company: a). Mr. Ram Chandra Agarwal; b). Mrs. Uma Agarwal; and c). Mr. Surendra Kumar Agarwal. 24
The following companies are the Promoters of our Company: a). Unicon Marketing Private Limited; b). Ricon Commodities Private Limited; and c). Vishal Water World Private Limited. In addition, the following HUFs are the Promoters of our Company: a). Mr. Ram Chandra Agarwal (HUF)VISION STATEMANT: We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development Name of Shareholders & Number of Shares % of shareholding Because of increasing number of nuclear families, working women, greater work pressure and greater commuting time, convenience 1. Unicon Marketing Private Limited 315,000 49.53 has become a priority for Indian customers. 2. Ricon Commodities Private Limited 300,000 47.17and multiplicity of choice. The growth and They want ever thing under one roof for easy access 3. Mr. Ram Chandra Agarwal 12,010 1.89 development of organized retailing 4. Mrs. Uma Agarwal 9,010 1.42 is driven by two main factors – lower prices and benefits the Total 636,020 100.00 customer can’t resist. India is rapidly involving into a competitive market place with potential target consumers in the niche middle class segments. The market trend indicates tremendous growth opportunities.
MISSION STATEMENT: We shall deliver Everything, everywhere, everytime for every Indian Consumer in the most profitable manner. VRPL’s BUSINESS:VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India and change in consumer aspirations, VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell ready-made apparels and a wide range of household merchandise and other consumer goods such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home furnishing, beverages, drinks, gift and novelties. VRPL follow the concept of value retail in India. In other words, VRPL’s business approach is to sell quality goods at reasonable prices by either manufacturing themselves or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturers). VRPL endeavor to facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire family. VRPL believe this concept has helped them grow to 25
their current size within a short time frame of 10 years. In order to reduce costs and take advantage of economies of scale VRPL have embarked on backward integration of their products. VRPL’s apparel manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have focused on developing a cost and time efficient distribution and logistics network, which currently comprises seven distribution centers and a fleet of trucks for transportation. VRPL Business Processes:VRPL’s business process can be summarized as below: Establishment of Stores: Selection of location In selecting location for a new store, VRPL start by identifying the city/town. VRPL target primarily cities/towns which may be classified as Tier II or Tier III cities. In this regard, an analysis of the demography, literacy levels, nature of occupation and income levels. Within a city/town, VRPL target locations with good infrastructural facilities such as easy accessibility, provision for water, electricity, parking, security and other basic amenities. VRPL prefer to locate their stores in areas where real estate is available at reasonable prices. The efforts of VRPL’s retail business are targeted towards families having total income which can be classified under the “lower middle” and “middle” income groups. Accordingly, VRPL plan their strategy to search for areas within cities where such customers are domiciled in large numbers and make efforts to locate themselves within the reach of such customers. VRPL believe that adoption of standard formats for their stores has led to their brand establishment and identification among their customers and will increase their base of loyal customers. In pursuance of this, they have adopted standard parameters for store planning and establishment. For ensuring standardized formats of their stores, VRPL consider various factors, such as internal and external décor and colour schemes, allocation of store space, stock mix and pricing and accounting methods. 26
7.50 million as an interim payment. Gurgaon. Merchandise Planning VRPL’s merchandise planning is based on the concept of category management rather than traditional brand management practices. VRPL insurance policies include comprehensive coverage for electronic equipment. Further. In addition. manufacturing facilities and trucks. Insurance VRPL maintain comprehensive insurance coverage with Tata AIG. Bajaj Allianz. fire and special perils and burglary.24 acres in Dehradun. distribution centers. VRPL have recently acquired freehold interest in relation to a land admeasuring 7. they have received Rs. 22. 2006.50 million on account of fire in their store at Meerut as on July 7. 27 . where they are exploring the possibilities for establishment of another manufacturing facility. Factories VRPL’s existing manufacturing facilities are located at Plot No. Royal Sundaram and IFFCO-TOKIO for their existing stores.830 square feet in Hubli. Uttaranchal. 2009. Phase 1 Udyog Vihar. In this regard. Other Properties VRPL have recently acquired freehold interest in relation to a land admeasuring 82. 224. for which they have leasehold interest until May 4. VRPL has filed a claim of Rs. Dharwad.
VRPL draw annual sales projections for different SKUs and. These major categories are in turn segregated into various subcategories. regional customer tastes and preferences. men’s apparel as a division is further divided into three major categories. lowers and sports and ethnic wear). Each sub-category consists of pre-defined SKUs. pattern and size. For instance. fabrics.Apparels and Non Apparels Under category management for. say. style. Through their manufacturing capabilities. For certain non apparel categories. likely fashion and trends. shapes. For example. their merchandise planning and scheduling also depends on introduction of new products and schemes by the vendors. designs. casual shirts. men’s upper as a major category would be further divided into several sub-categories such as formal shirts. namely. number of stores (established and proposed). brand. The inventory position for each SKU is reviewed fortnightly taking into account the actual sales and variations from the budgeted plans. seasons. in-house production resources. vendor management and price. VRPL use their manufacturing strengths to focus on enhancing product knowledge and their experiences from manufacturing enable them to negotiate better terms from the vendors 28 . ascertain their sourcing requirements. VRPL create and cater to products across length and breadth of a category at different price points. if a branded home appliance manufacturer replaces a product with a new version. which are classified on the basis of price point. party wear etc. then their planning for the product would need to be reviewed based on the acceptability of the new version. accordingly. upper. VRPL formulate annual merchandising plan for each division of merchandise taking into consideration factors such as past sales data. Regular visits to the stores are made by the category merchandising team to identify the slowmoving-SKUs and explore the options to expeditiously dispose of them. apparels. colors and sizes. Each division is further divided into major categories (for instance. Based on such information and lead time estimates for supplies. VRPL is able to attain relative independence from intermediaries with a competitive advantage in terms of value and cost. In-house Manufacturing VRPL benefit from backward integration and in-house manufacturing of part of the apparel products sold in their stores. purchase orders with delivery schedules are issued.
They regularly interact with the vendors and share information such that the vendors remain familiar with their goals and targets. quality awareness and experience. VRPL explore the various options for sourcing the products. Further. VRPL are exploring the possibilities for establishment of another manufacturing facility. Upon ascertaining the procurements needs based on each SKU. The plant was commissioned in 2004 and achieved a capacity utilization of 80%. VRPL have in place a vendor management system. After identifying the vendors for the goods. VRPL’s manufacturing team works closely with their design team to understand trends. Haryana. buttoning. VRPL currently have an apparels manufacturing plant at Gurgaon. VRPL undertake quality control measures by way of random sampling to ensure the pre-determined quality standards are met. Uttaranchal. They continuously strive to procure goods from the place of origin to reduce the costs and control the quality. 29 .24 acres in Dehradun. To verify that the quantity of supplies is as per the order. they undertake count-check for every receipt of the goods. VRPL place purchase orders based on their SKUwise plan. develop products. credibility in the market. estimated lead time of each vendor and quantity to be procured from each vendor. for the purposes of which they have acquired certain portions of land admeasuring 7.and job workers. embroidery and welt pocket-making operations. they have outsourced some parts of the manufacturing to “job workers” who work in their factory premises. The manufacturing plant is well-equipped with fully automatic machines for fusing. The factory has a capacity to manufacture 5. VRPL assess the various possible options on factors such as capacity. In addition to in-house manufacturing. It has been their strategy to procure goods from small and medium sized vendors and manufacturers. which they believe has led to reduction in the cost of goods they sell and increase in their profitability.000 pieces per day. value engineer and finally create season wise collection that cater to regional tastes. Purchasing Purchasing or vendor management assumes critical importance in retail business where one has to deal with multiple products. under which they identify vendors all over the country and overseas and seek to develop alliances and arrangements with them. For identifying the vendors. It has 450 machines and is operated by 500 workers.
For procurement from the large manufacturers or their distributors. VRPL check quality by way of random sampling at the time of receipt of the goods. such that they are able to derive fixed margins from sales of such products. they endeavor to enter into formal arrangements for supply of products to all VRPL stores. 30 . For FMCG products. To ensure quality of supplies. Under these agreements.VRPL follow a policy of ‘payment on delivery’ to negotiate better prices with the vendors and in certain cases they also release payments in advance. To verify that the quantity of supplies is as ordered. VRPL procure from large as well as small and medium size manufacturers. they benefit from special discretionary discounts and offers directly from the manufacturers or their distributors. irrespective of the locations. they undertake count-check for every receipt of the goods.
women and kids. Vishal offers high level fashion styling. 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. Our courteous staff will ensure that consumers get a perfect fit. our name has been synonymous with quality. Since 1986. formals and accessories for men. VRPL merchandising teams source fabrics from local manufacturers in India depending upon their production plan. bottoms.. VRPL source various other components and accessories from vendors in various parts of the country 31 . UnderGarments. VRPL also source fabrics from the place of origin. Our goal is to provide a range of fashion wear to suit every pocket. We offer an unparalleled collection of clothes for the entire family. Fizzy Babe : Jasmine : Zero Degree : Soil : Massa Bay : Ladies & Kids Girls Ladies & Kids Girls Kids Boys Mens Shirts Mens Trousers Bermudas & Apparel Manufacture The basic raw materials required for the manufacturing process of apparels includes fabrics and accessories. Our product mix represents the most current fashion trends in tops. This enables us to offer the lowest possible and most reasonable prices.VISHAL Apparels Brand Vishal Mega Mart is one of India’s fastest growing retail chains. women and children. The Vishal brand is known for great modern style for men. value and fashion integrity. The chain currently has 172 company stores in 24 states / 110 cities in India. Popular Brands are: Zeppelin : Kitaan Studio : Blues & Khakis : Paranoia : Chlorine : Fume : Mens Shirts & Trousers Mens Shirts & Trousers Mens Trousers Mens Shirts & T-Shirts Mens Shirts Mens Shirts. T-Shirts.
trends and promotional schemes. Jaipur (Rajasthan). VRPL review these re-order levels on continuous basis to factor in variances in demand based on seasons.033 square feet. Distribution centers operations have been streamlined through the standardisation of racking system. VRPL have clearly demarcated the stores which will be serviced by each distribution centre.and also import them from China. They primarily utilise their own vehicles to transport the inventory to their stores from the distribution centers. Distribution Network and Logistics VRPL’s distribution network and logistics encompasses all activities to ensure that goods are dispatched in right quantities and at right time to reach stores with sufficient time in hand to promptly cater to customer demands and optimization of inventory position. They have built a system to monitor the inventory position on a real-time basis at each store. which caters to both the existing and proposed stores to be fed. Under arrangements with some of their merchandise manufacturers. Gurgaon (Haryana) and Mahipalpur (New Delhi). Thane (Maharashtra). The re-order levels for stores are determined based on factors such as display levels. 32 . layouts and implementation of automatic replenishment system. Inventory Management. VRPL have seven distribution centers over approximately 385. under which a stock requisition or delivery order is generated when pre-determined stock or reorder levels are reached. Ghaziabad (Uttar Pradesh). they receive payment on account of display of their products. Ludhiana (Punjab). VRPL use the services of logistic solution providers including low cost transport service providers in order to deliver products on time to VRPL stores and optimize transportation costs. lead time for replenishment and buffer stock. lead time for replenishment and average daily sales. In addition. These distribution centers are located around Kolkata (West Bengal). The reorder levels for distribution centers are ascertained on the basis of factors like average daily sales of all the stores services. VRPL’s distribution centers and stores are connected through company-wide virtual network connection through broadband which helps to efficiently manage their network of stores and distribution centers throughout the country. they regularly review these re-order levels. As for the stores.
HOME FURNISHING Drawing Room Door Mat Carpet Curtains Kitchen Apron Kitchen Napkin Bedroom Bed Sheet Pillows Pillow Cover Bathroom Bath Mats Towel Gift Sets FOOTWEAR BOYS Shoes Sandals LADIES Shoes Slippers GIRLS Slippers Sandals MENS Shoes Slippers MENS Upper Shirt Casual Shirt Formal Ethnic & Sports Night Suits T-Shirts Dupatta Sherwani Lower Jeans(MP) Cotton Trouser(MPC) Winter Wear Suit(WMC) Blazer(WMB) Windcheater(WMW) Jacket LADIES ACCESSORIES Upper Kurta Skirt Top Ethnic Lower Pants Jeans Capri Winter Wear 33 .Product Categories .
Pyjama Sherwani Winter Wear Suit Blazer Jacket KIDS GIRLS Lower Hot Pant Skirt Dungries Upper Tops(GWT) Frock(GFK) Sets Night Suit Capri Set Ethnic Sharara Lancha Winter Wear Hipster Set Blazer Jacket HOUSEHOLD Dinner Set Jug Cake Server 34 .Nighty Lancha Sharara Salwar Suit INFANTS Garments Hot Pant Frock Baba Suit WOMEN Sarees Fancy(SRF) Synthetics Banarsi Jewellery Necklace Ring KIDS BOYS Lower Jeans Bermudas Dungries Upper Shirt Formal T-Shirt Jackets Stawl Blazer Track Suit Accessories Bed Sheet Under Garments Socks Personal Items Cap(LCA) Socks(Las) Cosmetics LIp Gloss Nail Polish Sets Night Suit Baba Suit Ethnic Kurta.
Video Game Hand Video Game FOOD MART FOOD & BEVERAGES Snacks Drinks 35 .Home Aids Floor Wiper Sanitary Brush General Plastic Goods Coffee Mug Bucket Glass Ware Cup L$emon Set LIFESTYLE Time Zone Ladies Wrist Watch Mens Wrist Watch Mens Accessories Belts Wallets Pressure Cooker Cooker Pressure Pan Electrical App.V. Chopper Microwave Oven Thermo Ware Tiffin Container Non Stick Handi Dosa Tawa Bone China Soup Set Dessert Set Porcelain Cup & Saucer Opticals Gifts & Novelties Ladies Sun Glass Flower Vase Mens Sun Glass Key Chain Electric & ElectronicsPerfume/Deo Items Battery(ABT) Calculator(EEC) Spray Deo TOYS & GAMES Soft Toys Musical Toys Non-Musical Board Games Wooden Blocks Puzzles Dolls Barbie Doll Other Dolls Infant Toys Teether Swing Cycles & Scooters Cycles Scooters Video Games T.
The benefits of market research include: Learning who your customers are and what they want.M A R K E T I N G A N A LY S I S S U M M A RY Marketing help to define the business for the customer's interests. 36 . It is also used to confirm whether the customer reacted to a marketing program as expected. It is the process of learning what customers want or need and determining how to satisfy those wants or needs. thus improving return on investment. It wanted people to do bulk shopping for their monthly ration instead of going to the shop each week. not your own. Learning how to reach your customers and how frequently you should try to communicate with them. Learning which advertising appeals are most effective and which ones get no response. Learning the relative success of different marketing strategies. Learning how not to repeat your mistakes. Its first fight was against local ‘Kirana’ stores. Vishal Mega Mart has been the pioneer of retail revolution. The task was to change the mindset of consumer to bring about changes in their shopping patterns.
In all. FMCG products play a key role. these categories made up only about 60%. VRPL have a number of private labels for apparels such as Zepplin. Chlorine. In pursuance of their business plan to diversify their portfolio of offerings. FMCG products are usually meant to fulfill the daily needs of consumers and therefore. There are many in house brands promoted by Vishal Mega Mart. Fleurier Women and Roseau. 37 . Vishal Mega-mart sold over 300. Paranoia. Last year.000 pairs of jeans. child care products to toys. 50. drinks etc. Kitaan Studio.MARKETING STRATEGY OF VISHAL MEGA MART Product Vishal Mega Mart offers a wide range of products which starts from apparels to food items. VRPL believe retailing of FMCG products will bring customers to their stores on a frequent basis and this may in-turn lead to consumption of their apparels. the fashion. Famenne. watches.000 microwave-ovens. crockery to sport items. .000 DVD-players and 25. footwear to home furnishing. electronics and travel segments made up about 70% of sales.
99. VRPL follow uniform pricing policy across their stores in respect of private labels and non-branded products sold by them. Vishal Mega Mart also caters on Special Event Pricing (Close to Diwali. The efforts of VRPL’s retail business are targeted towards families having total income which can be classified under the “lower middle” and “middle” income groups. VRPL’s propose to increase their procurement of finished and semi-finished goods from China and thereby realize economies of scale and pass on the benefits so accrued to their customers. 49. etc. Towards this objective. New Year etc. The concept of psychological discounting (Rs.). Selling combo-packs and offering discount to customers.) is used as promotional tool.Price Vishal Mega Mart promises its consumers the lowest available price. VRPL intend to procure FMCG and apparels from low-cost production centers located outside India. The combo-packs add value to customer. Through Bundling. Christmas. they also reduced the price of the products. 38 . Rs. In addition to VRPL’s strategy to continue procurement of goods from small and medium size vendors and manufacturers which leads to cost efficiencies.
The various promotion techniques used at VMM include: -5 Din Ki Maha Bachat -2 din Ki Maha Loot 39 . VRPL’s category management system is used to plan promotional schemes. a co-branded credit card. Place Vishal Mega-mart stores are located in 129 cities with 172 outlets.The company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1 cities at 80:20. This enables the company to overcome competition to some extent due to its first mover advantage (as competitors have relatively less space in tier-2 and tier-3 cities) and helps to lower rental cost. to promote sales. They are aggressive on their expansion plans. As at 3Q FY08. Television with Tina Parekh as there in advertisement. In addition. encourages customer confidence and results in operational convenience. VMM has presence in almost all the major Indian cities. Vishal Mega Mart advertisements are mainly seen in print media i. the category manager formulates promotional plans for ‘slow movers’. Promotion Advertising has played a crucial role in building of the brand. 78% of the company’s 82 stores are in Tier-2 and Tier-3 cities.e.This enhances brand loyalty. In addition. and sometime road-side bill-boards. in order to appeal to the customer. Vishal Retail targets cities with urban population of 1 million people or above or can be classified as Tier-2 and Tier-3 cities. Its target market includes people with middle income and lower income levels. they focus on layout of the stores and positioning. Vishal Mega-mart started many new and innovative cross-sell and up-sell strategies in Indian retail market. presentation and display of merchandise. VRPL’s propose to continuously undertake such initiatives to increase the satisfaction of their customers. newspapers. In relation to the other products. the company opens retail outlets on the outskirts. VRPL have introduced. Apart from general sales promotion. the prices may vary between stores on account of state-specific taxation and vendor policies. They launch promotional schemes weekly. In Tier-1 cities. in association with SBI Cards & Payment Services Private Limited. rather than the prime area.
-VMM motivates & retains store staff & maintains a positive work environment. Retail sector is in growth stage. We foresee an increase in the employee cost going forward (Figure 7) due to company’s efforts to attract and retain the employees. 1000. a first generation entrepreneur.509 employees joined in 2009. the requirement of skilled manpower is increasing.-Dhan-teras Dhamaal -Great Savings -Vishal Mega Mart Gift Voucher Rs. -Strong Recruitment Cell. makes for a customer-friendly atmosphere. Professionals are one of the key assets for any organization. At the same time. staff at store to keep baggage and security guards at every gate. -25% Off On All Items – Every Month -Discount Offers At Various Festive occasions -Grand Winter Sale – 50% & 60% discount for 2 days -Paise Bachao Aandolan – 9 Din Ki Maha Loot -Vishal Reward Plus: Consumers can make purchases at any store and accumulate points at a central level. so staff is empowered to take innovative steps. The salient features of staff of VMM are: -Monthly. Although employee cost is increasing. Ram Chandra Agarwal. 2. Due to intense competition. -Employees are motivated to think out-of-the-box. -Cross category promotions are now catching up where discounts are being offered on grocery purchases.India presence. weekly & daily sales targets are communicated to the staff & efforts are made to consistently achieve the set targets. The management team has a pool of talented professionals with right mix of working experience. He has been instrumental in expanding the business from an apparel store in Kolkata to 82 value retail stores with pan. -8500 employee Strength. These points are redeemable at any of our stores. -Multiple counters for payment. still the company’s motive is to retain the valuable employees in the company 40 . the availability of skilled manpower is declining and attrition rates are increasing throughout the industry. -Well-dressed staff improves the overall appearance of store. redeemable against purchase of apparel and household products People Vishal Retail has been established by Mr.
-Infrastructure – Stand Alone Commercial Building -Clean. Air-conditioned outlet -Equipment – computer. -Three Layer Security Checks. Products. -Home delivery counters to be started soon. -Proper display / posters of the place like (Kids Wear. Retailing The goods' dispatch and purchasing area has certain salient features which include: -Multiple counters with trolleys to carry the items purchased. This process includes four steps as follows: Manufacturing Capacity. Grocery. of Parallel Billing Counter -Retail Exchange Software Solution – PRIL -Integrated With SAP & ERP Physical Evidence It deals with the final deliverable or the display of written facts. This includes the current system and available facilities. BCR. and Stationary etc.Process VMM adopted the business model as shown in (Figure-9) to run their activities smoothly. Strong Logistics.). -No. Desk etc State of Art Management Organization Structure 41 .
Milestone 42 .Year---.
Increase in number of stores to 50 spread across in 18 States 43 .Incorporated as Vishal Retail Private Limited acquired the proprietorship firm Vishal Garments & the Vishal Garments opened first store outside Kolkata. New Delhi having an area of 80. Set up a manufacturing unit in Gurgaon. 2002-.Opened first Store in Delhi 2003 --Acquired Vishal Apparels.2001-. 2004--Started thier largest store of at Mathura Road. a manufacturing unit.000 square feet nominated for the Images Retail Awards’ 2004 2006--Thier Company was converted into a public limited company 103 implementation of production and retail module of SAP Broadband connectivity with each and every location Increased thier presence to an aggregate of 17 States. 2007-.
Data Collection And Analysis SWOT ANALYSIS 44 .
Strength: − High Brand Equity in evolving retails markets − State-of-art infrastructure of Big Bazaar outlets − POP to increase the purchase − One stop shop for variety of products. increasing customer time and available choices Weakness: − Unable to meet store opening target so far − Falling revenue per square feet Opportunity: − Organized retail is just 4.15%of total pie of Indian retail market − Evolving Customer preferences in recent years. Threat: − Competitors. global big players planning to foray into market − Government policies are not well-defined in India − Unorganized retail market of India 46 .
Newspaper Net Hoardings Friends T. How do you know about Vishal MegaMart? T.V Hording s Newspaper F riends Net 47 .V.V 70 Hoardings 40 Newspaper 50 Friends 20 Net 20 10% 25% 10 % 35 % 2 0% T.1.
5% 20% 35% Within a week Within 2week Within a m onth Above 1 m onth 3. What excites you most for shopping at Vishal Mega Mart? Discount Buy one get one free 48 . 17.2. How often you visit to Vishal MegaMart? Within a week Within a month Within a week 70 Within 2 week 40 Within 2 week Above 1 month Within a month 35 Above 1 month 55 27.
What do you usually buy from Vishal Mega Mart? FMCG products Apparels Child care & Toys Electronic goods 49 .Cash back Discount 76 Free gift Buy one get one free 62 Cash back 38 Free gift 24 12% 19% 38% D iscount Buy one g et one free C ashba ck F ree g ift 31% 4.
All products FMCG products 45 Child toys 20 care & Appareals 60 Electronic goods 20 All product 55 35 30 25 20 15 10 5 0 F MC G products C hild care Appareals Electronic All product & toys g oods IN % 5. Are you satisfied with the quality of the products offered by Vishal Mega Mart? Yes No 50 .
It’s ok Yes 114 No 48 It’s ok 38 60 50 40 30 20 10 0 Y es No Its ok D ata In % 6. How is your shopping experience at Vishal Mega Mart? Very Satisfactory Satisfactory 51 .
Average Poor Unsatisfactory Very satisfactory 40 Satisfactory 50 Average 72 Unsatisfactory 22 Poor 16 6 0 5 0 4 0 3 0 2 0 1 0 0 Very S a tis fa ctory S a tisfa ctory Avera g e Unsa tisfa ctory Poor D a tain % 7. Do you want to changes in Vishal Mega-Mart? Yes No 52 .
Yes 96 No 104 52% 4 8% Y es NO 9. What changes you want? Better services Better products Better packaging Home delivery 53 .
According to you which promotional activity is effective? Road show Sampling Campaign Premiums 54 .Better service 45 Better packaging 25 Better products 60 Home delivery 70 35 30 25 20 15 10 5 0 Better Better Better service pa cka g ing product H om e delivery Da tain% 10.
What you think about sales promotion strategy of company? 55 .Any other Road show 40 Campaign 76 Sampling 30 Premiums 24 Any other 30 40 35 30 25 20 15 10 5 0 R oad s how C am paig nS am pling Prem ium sAny other D ata in % 11.
Best Good Average Not good \ Best 46 Good 56 Average 78 Not good 20 40 35 30 25 20 15 10 5 0 Bes t Good Averag e Not g ood D ata in % 56 .
12. Does sales promotion strategies beneficial for sales? Yes Yes 146 No No 54 27% Y es No 73% 57 .
13. At what percent sales promotion strategy is useful for increasing sales Up to 10% 30-40% 20-30% More than 40% Up to 10% 75 20-30% 58 30-40% 40 More than 40% 27 58 .
Findings 59 .
This topic should be of interest to anyone who is unsure if they are getting it right. 6. a good choice.these are the factors that influence the success of a retail outlet.Findings 1. 3. Advertising plays a very important role in achieving growth for any retail company. According to a survey more than 60% of the customer prefers to shop in a retail store which is easily accessible to them. differentiation and a strong value proposition assume significance. 4. A large variety of products caters to each segment of customers. a strong value proposition. a risky undertaking. it pays to get as much assistance as possible. The Importance of Pricing their Products' will give them an insight into developing appropriate costing methods and the impact of getting it wrong in today's competitive creative market. product with a distinct differentiation. 5. The differentiation today among the 5-6 retail chains has come through private labels. at best. A bad choice may all but guarantee failure. Approximately 60% 60 . The right location. Shopping experience within a store also has a great impact on selecting a product from a particular retail store. Retail chains are realizing that they cannot be another ‘me-too’ store. and success. Variety offered by any retail store is of very much important to attract all type of customers in the stores. With competition in this segment increasing. This is evident from the fact that Advertising by Retail Industry registered a rise of 12 percent during January . lighting etc. The choice of a store location has a profound effect on the entire business life of a retail operation. 2. efficient supply chain management . 7.May 2007 over January . Choosing a retail location is. Overall ambience includes infrastructure facilities provided by the store such as air conditioners. the product and services company sells and consumer behavior. Pricing is in fact a dramatic controller of at least 3 key strategic elements to any company's success: Company’s image. software assistance. which in some cases account for as much as 70 per cent of the total merchandise in the outlet. Considering the consequences of choosing a location that proves to be unsuitable. Remember the difference between over or underpricing their work can mean a very short future for any business. trained manpower.May 2006.
So building a brand for a retail store is important as 80% of customer still prefer to buy branded clothes in the retail store instead of local or unbranded clothes. 10. conditional and somewhat subjective attribute. This is the most common interpretation of the term.customers think that Price is the most important factor while they go for shopping in a retail stores 8. More than 70% of customers place variety as an important factor to shop in a particular retail store. The quality of a product or service refers to the perception of the degree to which the product or service meets the customer's expectations. 61 . superiority or usefulness of something. more than 90% of customers place quality as the most important factor than anything else in the list to shop in a retail store. 9. engineering and manufacturing has a pragmatic interpretation as the non-inferiority. And in addition to that. Quality in everyday life and business. Quality has no specific meaning unless related to a specific function and/or object. Brands name bears an important role while shopping of any type of goods. Quality is a perceptual.
Conclusion & Suggestions 62 .
There are many lessons that India can take from other countries. While there are obstacles. Organized retail of late has seen a tremendous boom and is attracting more people to the malls. Gaining and maintaining consumer preference is a battle that is never really won. Continued and consistent branding initiatives that reinforce the consumer’s purchase decision will. at present. Attaining and sustaining preference is an important step on the road to gaining brand loyalty 63 . over time. land the product in consumer preference sets. Given the scope. people value the experience related to the trip the most and return most frequently for the same. Besides. the retail sector is certainly expected to fetch the long-term economic benefits for the country. The convenience and personalized service offered by the unorganized sector holds its future in good stead for the future. has done by permitting partial FDI in the sector. When shopping in malls. What is to be seen is how organized retail can duplicate the same level of personalized customer service levels offered by the unorganized sector to have a higher conversion ratio. It is now necessary to cautiously expand and develop the sector. The target audience for both the organized and unorganized retail formats remains relatively the same. as the government. while enjoying the experience they seem to buy high ticket and items of conspicuous consumption most frequently. which have moved along the path of retail evolution. The sector’s capability to give strong growth momentum by creating multiplier effects on other sectors is not in dispute.Conclusion Given the developments and prospects. the Indian retail sector is in its nascent stage of evolution. The retail sector has proved to be of immense significant from macroeconomic point of view. there are clear opportunities in modern retailing in India.
Proper advertisement in press and outdoor to make Vishal Mega Mart should be visible in the eyes of consumers. Proper power back up as air conditioners are not working to their full capacity at many stores. 15.Suggestions 1. Proper display in the gondola and top most rack of the gondola should be used for storing of inventory rather than display of product. 14. Proper placements of Gondola in the stores as space between them are very less. Should use psychological pricing-more discounts by increasing the price 21. 13. 19. Play good songs or soothing music in the store rather than cheap filmy songs. Hire more salesgirls as in ladies section its very difficult for both the consumers and salesman to interact with each other. 8. More branded products can be displayed in the store as people still prefer branded clothes than offered by local vendors. Proper packaging and provide contrast labelling in displays of product. Should provide more festival schemes and at proper time. 12. Customer care service can be introduced 5. 11. 2. 3. 16. Customization of clothing should be given an important consideration. 10. Proper display of cutlery items 64 . Add more cosmetic products as its having a huge market of consumers attached to it. Display of product should be improved so that the product is easily visible to the consumers. Include more trained sales person to help customers in the store while shopping. 6. 9. Regular training to sales person to improve there overall performance. 7. Improve quality of the products especially clothes. 17. Should apply electronic supply chain management for better inventory management. Constant reminder of discounts through pamphlets. 4. Should have parking spaces in front of every store. speakers inside the store for inducing consumers for impulse buying. 20. 18.
Clothes should be in sync with fashion.22. Swapna Retail Management – A Strategic Approach Berman.wikipedia. Joel R. Barry & Evans.com 65 .google.vishalmegamart. The Art Of Retailing Websites: www.com www. Bibliography Books referred: Retailing Management Pradhan.com www.
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