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Topic - Consumer Behaviour Towards Vishal Mega Mart
Topic - Consumer Behaviour Towards Vishal Mega Mart
SOURAV RAINA
11/13/2010
TERM PAPER
OF
CONSUMER BEHAVIOUR
SUBMITTED TO: -
SUBMITTED BY:-
Mr .SOURAV RAINA
LPU
ROLL NO: -
T1903A65
SECTION: - T1903
ACKNOWLEDGEMENT
Words often fail to express ones inner feelings of gratitude and indebtedness to ones
benefactors, but then it is only the readily available medium through which the undersigned can
express his sincere thanks to all those who are associated with the work in one way or the other.
Nothing concrete can be achieved without an optimal combination of inspiration and
perspiration. No work can be accomplished without taking the guidance of the experts. It is only
the critiques from ingenious intellectuals that helped transform a product into a quality product.
Project work is never the work of an individual. It is more of a combination of use, suggestions
and contributions and work involving many individuals. This project also bears the impact of
many people. First and foremost I would like to gratefully acknowledge and express my sincere
gratitude towards Mr. AMIT DUTT, my subject teacher who always helped and provided
guidance during the course of my project. I would like to extend my earnest thanks for his
assistance in the course of making term papers. The learning during the project was immense &
invaluable.
I shall be failing in my duties if I do not express my gratitude to other faculty members and dear
friends for their useful help at various stages of this term paper.
Sourav Raina
CONTENTS
Executive Summary
Introduction
Growth of Retail Sector
Vishal Retail Ltd History
Review of Literature
Research Methodology
Analysis & Interpretation
Findings
Complaints
Recommendations
Questionnaire
References
EXECUTIVE SUMMARY
The project is about consumer behavior towards Vishal Mega Mart. Retail industry is booming
all around the globe at a very fast pace. Vishal Retail is a known and strong competitor in the
retail industry since 23 years. When we talk about Indian market, the demands of everything
which you can find in every retail store are increasing every year. Indians are famous for their
traditions and festivals and exchanging gifts with friends and relatives is a part of it.
This project report is the study of various parameters of behavior of consumer towards Vishal
Mega Mart and relates it to the theoretical aspects within the scope of our subjects. It also helps
us in understanding the functioning that took place with in an organization from different
perspectives. A questionnaire has been drafted, to try and understand the psyche of the VISHAL
MEGA MART customers to know their needs and expectations which can be further utilized by
the company to gain a competitive edge over their competitors. It also helps us in understanding
the different technologies being used by VRPL.
In the end, I came up with some suggestions based on my analysis of customer tastes and
preferences and competition prevailing in retail sector.
INTRODUCTION
The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent
of the countrys GDP and around 8 per cent of the employment. India has the most unorganized
retail market in the world. Most retailers of the unorganized retail market have their shop in the
front and house at the back. The Retail Industry in India is today amongst the fastest growing
industries with several players entering the market. Currently, the organized retail sector
accounts for only 2 per cent indicating a huge potential market opportunity. India is being seen
as most attractive market by retail investors from all over the world. Retail is clearly the sector
that is poised to show the highest growth in the next five years. The sector is set for a
revolution, as both the present players and new entrants are gearing up to explore the market.
The present size of the organized retailing sector is approximately 3% and is expected to grow
to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and 325
departmental stores currently under construction. Many players are coming up with huge
investments, due to which the present 12 million mom-and-pop shops and kirana stores fear
losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by
the year 2010.
Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready
to enter the retail markets. The rising demands of branded products and increase in purchasing
power have lured these companies to enter the market. Modern retail development in India is
focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National Capital Region,
Chennai, Banglore, Hyderabad, Kolkata. The leading Indian retailers are Bata India Ltd, Big
Bazaar, Crossword, Vishal Mega Mart., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes
Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha,
Titan Industries etc.
MODERN RETAIL STRUCTURE:It includesMalls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida) etc
Discount Stores like Brand Factory, Loot, M&B Factory, Subhiksha, Big Apple, and Reliance
Fresh.
Department Stores like Shoppers Stop, Big Shop, and Pantaloons.
Hypermarkets/ Supermarkets like Big Bazaar, Vishal Mega Mart.
Convenience Stores like Spencers Daily, Tru Mart, Choupal, More.
Multi Brand Outlets like Globus.
CURRENT SCENARIO
A glimpse of the international retail47 global fortune companies & 25 of Asia's top 200 companies are retailers
Dominated by developed countries
US, EU & Japan constitute 80% of world retail sales.
Biggest player in India is Pantaloon Retail India Limited.
China - 20%
India - 3%
According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India was placed at
1st position in the year 2005. However within 2 years of time i.e 2007, it is being placed at 2 nd
position jointly with China and after Vietnam.
Mahipalpur Extension, New Delhi 110 037, which is the present registered office of the
Company. The fresh certificate of incorporation consequent on change of name was granted to
our Company on February 20, 2006 by the Registrar of Companies, West Bengal.
With a business purchase agreement dated November 23, 2001 executed between VRPL and
Mr. Ram Chandra Agarwal (carrying on proprietorship business in the name of M/s The Vishal
Garments) and Mrs. Uma Agarwal (carrying on proprietorship business in the name of M/s
Vishal Garments), VRPL acquired the business of M/s The Vishal Garments and M/s Vishal
Garments, and the said businesses were transferred to VRPL as a going concern with effect
from December 15, 2001.
With a business purchase agreement executed between VRPL and M/s Vishal Fashions
Private Limited, they acquired the business of manufacturing of readymade garments as a going
concern with effect from March 31, 2003. VRPL went into backward integration by acquiring a
manufacturing unit for readymade garments.
DETAILS OF DIRECTORS
Mr. Ram Chandra Agarwal, 43 years, is VRPLs Chairman and Managing Director. He holds
a bachelors degree in commerce from St. Xaviers 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. He started the business under the name of Vishal Garment with a small store at 9, Lal
Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the development of the value retailing
industry in India and is well known for his business acumen.
Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds a bachelors 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, 46 years, is an executive Director of VRPL. He holds a
bachelors 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, 45 years, is an independent Director of VRPL. He holds bachelors 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, 44 years, is an independent Director of VRPL. He holds a masters
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.
Mr. Ram Chandra Aggarwal is the husband of Mrs. Uma Agarwal and brother of Mr. Surendra
Kumar Agarwal. None of our other Directors are related to each other.
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 achieved total sales of Rs. 1005.31 cr for fiscal 2008, as opposed to a turnover of
Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal 2006. During the same period
VRPLs profit after tax was Rs. 40.64 cr, Rs.25.07 cr and Rs. 12.39 cr, respectively.
REVIEW OF LITERATURE
AAbstract: The study showed that six of the independent variables considered, namely, shopping
attitude of respondent, store loyalty (SL), perceived store prices, store distance,
shopping frequency, and brand loyalty (in order of importance of impact) significantly
influenced consumers' attitude towards retail store in out-of-stock.
Marketers are trying to grab this untapped market but still the reach of those players is mere
they should more focused and rural oriented. There are some points which they should
undertaken
The retailers should try for up selling and cross selling rather to focus on the bulk selling
The promotion strategy should be local and easy to grab able for the target audience
The awareness about product quality should be spread between customer so they can
shift to these stores rather to traditional stores
Stores should enhance their portfolio so that more and more customers can find their
needs.
IN
MALLS
WITH
LARGE
SCALE
Abstract:- The concept of 'entertainment' is hard to define in the context of a shopping center.
It could be viewed in a very narrow sense as consisting of just fides, games, and shows, or in a
broad sense as a combination of the entire shopping experience. The present study, however,
focuses specifically on common area entertainment centers within malls, operationally defined
as a concentrated, centralized, entertainment area of at least 30,000 square feet and containing a
variety of entertainment opportunities, including various types of rides for children, carrousels,
miniature golf courses, soft play structures, simulator rides, etc. Although malls have
traditionally offered several different types of entertainment options, it is this category that has
seen the most growth in recent years.
Most previous academic research studies have treated such entertainment centers as just one
additional characteristic of a shopping center which could be included in retail gravitational
models to predict consumer patronage of shopping centers or the market potential of a
particular location. Such gravitation models have traditionally included factors such as distance
and travel time, size of a shopping area, characteristics of the shopping center, consumer
characteristics, and the cost of shopping to consumers (Craig, Ghosh, & McLafferty, 1984). In
terms of shopping center patronage, Bellenger et al. (1977) found that some consumers placed
the greatest value on convenience and economic attributes including convenience to home,
accessibility, and the presence of services such as banks and restaurants. Others, however
RESEARCH METHODOLOGY
Primary data:- primary data has been collected through the help of questionnaires by using the
technique of JUDGEMENTAL SAMPLING.
Secondary data: - secondary data has been collected with the help of various websites.
Sample size: - 60
The above shown graph shows that housewives used to visit Vishal Mega mart,
followed by self employed people and others
The above graph shows that the people with the income between Rs 5000-20000 used to visit
Vishal Mega Mart followed by the people with the income of Rs 0-5000 and Rs 2000040000.
the above given graph shows that maximum people used to visit VISHAL MEGA
MART sometimes followed by monthly and weekly basis.
Pick one of the following retail stores, which you like to visit the most:VISHAL MEGA MART
BIG BAZAR
WALLMART
EASYDAY
RELIANCE SUPER
In the above graph it has been shown that that most of people like to visit other stores
as compare to Vishal Mega Mart.
1
1
1
VERY GOOD
Services
Environment
Price of the product
Product range
Discount and promotional
schemes
Factor Analysis:-
Communalities
Initial
Extraction
quality of products
1.000
.366
Services
1.000
.681
environment
1.000
.660
1.000
.615
product range
1.000
.476
1.000
.570
1.000
.517
1.000
.513
1.000
.407
GOOD
AVERAGE
POOR
Compo
nent
Total
% of Variance
Cumulative %
Total
% of Variance
Cumulative %
2.022
22.463
22.463
2.022
22.463
22.463
1.521
16.901
39.364
1.521
16.901
39.364
1.262
14.024
53.388
1.262
14.024
53.388
.949
10.540
63.929
.858
9.538
73.467
.760
8.449
81.916
.642
7.134
89.050
.599
6.661
95.710
.386
4.290
100.000
Component Matrixa
Component
1
quality of products
-.426
.365
.226
Services
-.385
.730
.003
environment
-.302
-.437
.615
.507
-.597
.051
product range
.289
.292
.555
.495
.219
-.527
.624
.233
.270
.516
.275
.414
.600
.211
-.040
quality of products
.558
.004
-.234
Services
.818
.033
.107
environment
-.142
.018
-.800
-.772
.135
-.034
.121
.659
-.164
-.139
.080
.738
-.137
.678
.196
-.031
.714
.049
-.166
.456
.413
product range
discount and promotional
schemes
INTERPRETATION:Out of the total 9 variables, 3 factors have come out after the factor analysis 53.38% of
the respondents said that three factors are most important for them. The standard
Eigen value against which the factors are measured is .7. Thus, the three factors
satisfying this condition are
Services
Discount and promotional schemes
Purchase of household items
These three have loading value of .818, .738 and .714 respectively.
The remaining data that is around 47% is lost and is called sampling error.
Findings:(1) The study finds that service plays a very important role in the retail sector
(2) People specially housewives used to purchase household items in retail outlets like
Vishal Mega Mart.
(3) Discounts and promotional schemes plays a very important role in attracting the crowed
to the malls.
(4) Vishal Mega Mart losing its identity in the market because of poor range of products
and due to the arrival of the various superior competitors.
Complaints: 1. Low variety of product available and customization of products is not there.
2. Air conditioners are not properly working.
3. Prices are not mentioned at all places and at all products.
4. Prices are not competitive as they are assumed to be higher when consumers are visiting
other retail outlets.
5. Grocery items are not sufficient and they are not at all available at many stores.
6. Clothing items of women are priced unreasonably
7. Lack of space in the store while shopping and moving within a store.
Recommendation: -
QUESTIONNAIRE
Topic: - Consumer Behavior towards VISHAL MEGA MART
NAME:
___________________________________________________________________________
____
GENDER: male/female
AGE ________
ADDRESS:
___________________________________________________________________________
___________________________________________________________________________
____________________
(1)ARE YOU MARRIED? (Yes/no)
(If No then move to question no. 3)
1 2
1
1 2
(8) How do you rate VISHAL MEGA MART on the following parameters?
PARAMETERS
Quality of product
VERY GOOD
GOOD
AVERAGE
Services
Environment
Price of the product
Product range
Discount and promotional
schemes
(9) Pick one of the following retail stores, which you like to visit the most:VISHAL MEGA MART
BIG BAZAR
WALLMART
EASYDAY
POOR
RELIANCE SUPER
(10) What are the reasons due to which you never visited VISHAL MEGA MART?
(a) Poor quality
(b) Poor service
(c) Lack of knowledge
(d) High pricing of products
(e) Any
other_________________________________________________________________
_____________________________________________________________________
__________________
(11) What kind of improvement do you think is required in VISHAL MEGA MART?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
______________________________
References:vishalmegamart.net
proquest.com
http://www.delhibusinessreview.org/vn1/vxn1afull.pdf
http://www.springerlink.com/content/q6270518386213w1/
http://www.skylinecollege.com/blog/dissertation/study-of-rural-consumer-behavior-towardsrural-retail-stores
http://www.allbusiness.com/marketing/market-research/632049-1.html
http://www.emeraldinsight.com/journals.htm?articleid=1736707&show=html&