Project Report

On
Marketing Strategies Adopted By
Reliance Mart & Vishal Mega Mart


Submitted in the partial fulfillment of the degree of
Master of Business Administration !""#$%"&
Submitted 'o( $ Submitted By($
)ontroller of *+amination Vi,ek -upta
M./. 0ni,ersity1 Semester$2
th

Rohtak 3nst. Roll 4o$"#5MBA5!6
B.S.Anangpuria 3nstitute of 'echnology & Management
Alampur1 7aridabad.
1
PR*7A)*
Master of Business Administration (MBA) Programme is one of the most reputed
professional courses in the field of management. This course includes both theory & its
applications as its content of Curriculum. The Research Proect is an integral part of the
curriculum and its purpose is to pro!ide the practical e"posure of business #orld in the
changing scenario. $n this #ay it helps the student in de!elopment of practical s%ills and
analytical thin%ing process. $t ma%es more a#are about the perceptions and tastes of the
people of the corporate #orld. Thus it helps in moulding the students according to the
re&uirements of the mar%et
'ach student is re&uired to complete a proect in his or her field of interest after the
completion of his or her second semester e"amination. The purpose of this proect is to
e"pose the students on practical and research front of his or her area of interest. The proect
gi!es a uni&ue e"perience to aspirants #ho can !isuali(e things #hat they ha!e been taught in
classroom.
$ #as fortunate enough to ha!e the opportunity to do a research proect on 8MAR9*'34-
S'RA'*-3*S A/OP'*/ B: R*;3A4)* MAR' & V3S<A; M*-A MAR'=. As a
complementary to Proect) e!ery student has to prepare and submit a report. $t is an attempt to
present practical %no#ledge & obser!ation gathered during the proect.
2
A)94O>;*/-*M*4'
$ #ish to e"press my sincere esteemed than%s to our institution) #hich pro!ided me this most
a#aited opportunity of undergoing training in the corporate #orld.
Along #ith the institution $ also #ant to e"press my gratitude to my faculty members #ho
help me #ith their immense %no#ledge and their e"perience.
*ast but not least $ #ant to e"press my immense heartly than%s to all the personalities #ho
ha!e been instrumental in ma%ing this proect on +MAR,'T$-. /TRAT'.$'/ 01
R'*$A-C' MART & 2$/3A* M'.A MART +possible and successful.
Vi,ek -upta
3
34/*?
)O4'*4' PA-* 4O.
C3APT'R45
$ntroduction of the Proect 5
C3APT'R46
0becti!e) /cope & *imitations of the /tudy 67
C3APT'R48
Research Methodology 89

C3APT'R4:
;ata collection & Analysis :6
C3APT'R4<
1indings of the study ==
C3APT'R4=
Conclusion 95
/uggestion 96
Appendi"
Bibliography 98
>uestionnaire 9=
4
Introduction of
the Project
5
6
3ntroduction to Retailing sector
Retailing sector of $ndia can be split into t#o segments. They are the informal and the formal
retailing sector. The informal retailing sector is comprised of small retailers. 1or this sector) it
is !ery difficult to implement the ta" la#s. There is #idespread ta" e!asion. $t is also
cumbersome to regulate the labor la#s in this sector. As far as the formal retailing sector is
concerned) it is comprised of large retailers. /tringent ta" and labor la#s are implemented in
this sector.
$f the retail industry is di!ided on the basis of retail formats then it can be split into the
modern format retailers and the traditional format retailers. The modern format retailers
comprise of the supermar%ets) 3ypermar%ets) ;epartmental /tores) /pecialty Chains and
company o#ned and operated retail stores
The traditional format retailers comprise of ,iranas) ,ios%s) /treet Mar%ets and the multiple
brand outlets. The retail industry can also be subdi!ided into the organi(ed and the
unorgani(ed sector. The organi(ed retail sector occupies about 8? of the aggregate retail
industry in $ndia.
Si@e and contribution of the retail industry in 3ndia
$n terms of !alue) the $ndian Retail industry is #orth @8AA billion. $ndia retail industry is the
largest industry in $ndia) #ith an employment of around B?. $ts contribution to the .ross
;omestic Product is about 5A?) the highest compared to all other $ndian $ndustries. The
retail sector has also contributed to B? of the employment of the country. The organi(ed
retail sector is e"pected to triple its si(e by 6A5A. The food and grocery retail sector is
e"pected to multiply fi!e times in the same time frame. The maor reason behind the lo#
participation in the $ndian retail sector is the need for lumpy in!estments that cannot match
up their brea% e!en points. The go!ernment policies are being re!ised from time to time to
attract in!estments in this sector.
7
'he 3ndian Retail 3ndustry A Sky is the limit
$n terms of the retail de!elopment inde" $ndia ran%s fifth. $n Asia it occupies the second
position) ne"t to China. Among all the global mar%ets) the $ndian retail mar%et is the most
e"panding. This is o#ing to absence in restriction at the entry le!el. /o the large foreign
companies can reap the benefits of economies scale by entering the green retail fields of
$ndia. There are many reasons #hy the retail industry in $ndia can reach the (enith.
1irstly the organi(ed retail sector in $ndia has a !ery lo# contribution to the entire retail
sector in the country. 3ence there is ample scope for the ne# players to achie!e success in the
bac%drop of soaring disposable income of the upcoming generation. /econdly) not only ha!e
the incomes increased but there has been a sea change in the preferences of the consumers.
These factors ha!e acted as a stimulus for the ushering of foreign players retailing in
apparels) accessories) electronic appliances etc. *arge shopping malls ha!e already
mushroomed in the metropolitan cities. There still lies untapped potential in the $ndian Retail
Mar%et.
The si(e of retail industry in an economy depends on many factors and the le!el of consumer
spending is the most important among these factors. The retail sector in $ndia has gro#n by
leaps and bounds in the last fi!e years. The reason behind this gro#th has been the synergy of
many propellants. 3o#e!er the gro#th is not al#ays genuine as there are e"aggerations as
#ell. But these e"aggerations also ha!e benefits since they gi!en a feel of gro#ing
competition all around. /econdly the present situation is ust a depiction of nascent stage. The
future of the traectory may not be as steep as it is no# or may be e!en slope do#n#ard.
CDhat #ill be the future si(e of the retail industryC is the mind boggling &uestion. Another
moot point that #ill gain importance in due time concerns the future of the unorgani(ed retail
mar%et #hich constitute a significant proportion of the #hole industry. The retail stores ha!e
pro!ed to be a !antage point for the customers. This implies that the small farmers #ho used
to sell their product in the sabi4mandis and on roadsides are going to lose a significant
mar%et share as they canCt employ the t#o profit ma"imi(ers4economies of scale and
economies of scope.
8
Retailing in 3ndia( the present scenario
The present !alue of the $ndian retail mar%et is estimated by the $ndia Retail Report to be
around Rs. 56)AA)AAA crore(@69A billion) and the annual gro#th rate is <.9 percent. Retail
mar%et for food and grocery #ith a #orth of Rs. 9) :8)7AA crore is the largest of the different
types of retail industries present in $ndia. 1urthermore around 5< million retail outlets help
$ndia #in the cro#n of ha!ing the highest retail outlet density in the #orld. The contribution
of retail sector to .;P has been manifested belo#E
)ountry Retail SectorBs share
in -/P in C&
3ndia %"
F/A 5A
China B
Bra(il =
As can be clearly seen) retailing in $ndia is superior to those of its contenders. Retail sector is
a sunrise industry in $ndia and the prospect for gro#th is simply huge. There are many factors
that ha!e stimulated the rise of the shopping centers and multiple"4malls in a iffy. /ome of
them can be listed as follo#sE
Rise in the purchasing po#er of $ndians4 the rise in the per capita income in the last
fe# years has been magnificent. This has led to the generation of insatiable #ants of
the upper and middle class. The demand of ne# as #ell as second hand durables has
risen throughout the country thus pro!iding the incenti!e for ta%ing up retailing.
1a!orable to farmers4 retailing has helped in remo!ing the middlemen and has thus
enhanced the remuneration to farmers. This is a ne# re!olution in the agricultural
sector in $ndia and #ill go a long #ay in amending the condition of agriculture) a
maor concern among policy ma%ers.
9
Fse of credit4 a typical $ndian is most con!ersant #ith using credit cards than carrying
money. These ha!e led to a shift of the consumer base to#ards supermar%ets and
ma%e the payments in the form of credit.
Comfortable Atmosphere4 a !isit to a retail store appears to be more soothing for the
generation4G. People and %ids prefer to shop in an air conditioned a tech sa!!y
manner.
The retail industry is the second largest employer in $ndia. $t currently employs about
9 percent of the total labor force in $ndia. 1inance Minister P. ChidambaramCs recent
statement +salaries ought not to be legislatedH is a #elcome mo!e as most of the
organi(ed retail is in pri!ate hands. 3o#e!er only about :.=? of the total retail trade
is in organi(ed sector. $t generates about Rs.<<) AAA crore (@56.: billion). The maor
and minor players desperately need to #or% hard in this direction so that ne"t time the
figures loo% more decent. The go!ernment must also ma%e an attempt to ameliorate
the situation as political instability and infrastructure namely po#er and roads are the
maor roadbloc%s in the path of smooth functioning of the mar%et.
Retail sectors in neighboring countries(
China 4 The total sales from retail mar%et in China reached F/@9<< billion in 6AA<. 3o#e!er
organi(ed retailing in China accounts for only 6A? of it. Also the fragmentation of ChinaCs
retail mar%et is so high that top 5AA retailers ma%e up for only 5A.<? of the total mar%et. The
registered sales of department stores gre# by 6<.9? and that of con!enience stores gre# by
8=.<? in 6AA<. The Chinese retail mar%et is e"pected to reach ne# highs as the population of
strong middle class is e"pected to double by 6A6A and mergers and ac&uisitions among
retailers are8 going in great guns. The DT0 restrictions are also e"pected to ha!e a fa!orable
impact on its retail sector.
Japan 4 total annual sales for the Iapanese retail industry for 6AA8 amounted to IPG 588)698
billion. Iapan had 5.6 million retail establishments in Iune 6AA: and there #ere :6)98B
specialty superstores. Bet#een 6AA6 and 6AA: annual sales per store increased by 8.B?. The
gro#th #as mainly dri!en by the grocery superstores but the number of superstores
10
speciali(ing in clothes gradually came do#n. The organi(ed retail sector in Iapan couldnCt
perform at its full efficiency because of collapse of the Cbubble economyC in the early 7As.
Retail /istribution in 3ndia
The distribution sector bridges the gap bet#een the producer and consumer and thus forms a
crucial lin%. ;istribution of retail in $ndia has multiple dimensions. $ts uniformity is difficult
to decide and easy to argue. ;istribution in any sector is usually measured by the reach of its
products to people. But in case of the retail sector in $ndia it also implies the dispersion
among the organi(ed and unorgani(ed spheres. The &uestion of distribution ho!ers mainly
around the intentions of pri!ate players to reach out to the less rich people. But the point that
has caught the public eye recently is the ambiguous mood of the beneficiaries and the
chau!inist go!ernment that produces ci!il ser!ice.

Propagation of the retail sector(
The e"pansion of the retailing in $ndia has been magnificent especially after the ad!ent of
liberali(ation and the abolition of licensing. A comparati!e study #ith other de!eloped
countries indicates that the retail sector has achie!ed a fantastic brea%through in the $ndian
economy. $ndia topped the A.T. ,earneyCs .lobal Retail $nde" in both 6AA< and 6AA=as can
be seen belo#E
The .R;$ /core as calculated by A.T. ,earney is a #eighted a!erage of mar%et
attracti!eness) mar%et saturation) country ris% and time pressure. $ndia had a .R;$ score of
5AA in both 6AA< and 6AA=.implying mar%et potential and attracti!eness. As the graph clearly
depicts) $ndiaCs contenders li%e Russia and China are no#here in competition. This result has
been obtained mainly because of a higher APC (A!erage Propensity to consume) of the
$ndian people.
According to $M1) $ndia has a APC of more than =A? #hile the corresponding figure for
Iapan is <9? and China is 87?. Also $ndians tend to e"haust :A? of their consumer
spending on groceries (foodstuffs). These figures are intensified by the fact that $ndians ha!e
special preference for lifestyle products and they feel comfortable in buying against credit as
11
the credit card and mortgage mar%et has been gro#ing by more than 8A?.
De present the results from another sur!ey belo# in order to strengthen our findings.
A,ailability of Retail Stores
)ountry 4umber of stores
per %1""" people
3ndia !!
Iapan 5A
F/A 8.B
The abo!e table reinforces our !ie# that $ndia has done a great ob in retailing. 0ne
note#orthy point here is that Iapan in spite of being one of the most densely populated
countries has fared poorly than $ndia. But this euphoria loses its charm if #e compare the
percentage of organi(ed retail in the total !alue generated by the retailing sector.
According to international standards) a
retail store is nominated as organi(ed only
#hen it features more than 5A employees.
The abo!e chart clearly portrays the
miserable condition of $ndiaCs organi(ed
retail A forecast of :A? annual gro#th in
the organi(ed retail sector seems sound.
The number of shopping malls in $ndia
has gro#n from 5 in 6AA5 to 5AA in 6AA<
but still more effort is needed to turn the
predictions into reality.
/tudies ha!e further sho#ed that non4urban areas account for only about 5<? of organi(ed
retailing /o it is high time that the retail industries pay importance to di!ersification and
reach out to non4urban mar%ets. $f they remain confined to the metropolis then they #ill soon
hit a ceiling and #ill be able to gro# no more. But at the same time they must reali(e that the
rustic people are sceptic about the urbane lifestyle habits. The mega retail players #ill ha!e to
drop their policy of full e"traction of consumer surplus and #ill ha!e to employ the local
12
people to o!ercome the myth that entry of a branded retail #ill displace the millions of
traders) shop%eepers and ha#%ers. Protests must be #elcomed and meetings encouraged
ma%ing life saner.
Retail mar%ets in .ermany) /outh Africa and many other countries allo# 5AA? foreign
in!estment in retail. This has helped in setting up of cash and in creating #holesale mar%ets.
3o#e!er) in $ndia) only <5? 1;$ is allo#ed in single4brand retail and that too #ith prior
appro!al. $n case of multi4brand retail) 1;$ is completely prohibited. This is a perfect
beginning but foreign in!estment should be gradually liberali(ed to moderni(e farming and
help farmers scale up. Moreo!er) restricting 1;$ for protecting mom4and4pop stores seems
unustifiable since Tata) Reliance and Bharti ha!e already made a foray in the sector.

)omponents of Retail Sector
13
The maor components of the retail sector areE
1ood and .rocery) 1ast Mo!ing Consumer .oods (1MC.s)) Consumer ;urables) Apparel)
1oot#ear and leather) Datches) Ie#ellery) and 3ealth and Beauty
The anatomy of the retail mar%et has sho#n that the clothing and te"tiles constitutes 87 per
cent of the organised retail pie) follo#ed by food and grocery) #hich accounts for 55 percent
of the total retail mar%et.
3o#e!er) according to the sur!ey conducted by ,PM. for 1ederation of $ndian Chamber of
Commerce and $ndustry (1$CC$)) among these) the food and grocery is e"pected to #itness
the fastest gro#th follo#ed by clothing as the second4fastest gro#ing segment.
Marketing Strategies
14
Marketing strategy is a method of focusing an organi(ationCs energies and resources on a
course of action #hich can lead to increased sales and dominance of a targeted mar%et niche.
A mar%eting strategy combines product de!elopment) promotion) distribution) pricing)
relationship management and other elementsJ identifies the firmCs mar%eting goals) and
e"plains ho# they #ill be achie!ed) ideally #ithin a stated timeframe. Mar%eting strategy
determines the choice of target mar%et segments) positioning) mar%eting mi") and allocation
of resources. $t is most effecti!e #hen it is an integral component of o!erall firm strategy)
defining ho# the organi(ation #ill successfully engage customers) prospects) and competitors
in the mar%et arena. Corporate strategies) corporate missions) and corporate goals. As the
customer constitutes the source of a companyCs re!enue) mar%eting strategy is closely lin%ed
#ith sales.
'ypes of strategies
Mar%eting strategies may differ depending on the uni&ue situation of the indi!idual business.
3o#e!er there are a number of #ays of categori(ing some generic strategies. A brief
description of the most common categori(ing schemes is presented belo#E
/trategies based on mar%et dominance 4 $n this scheme) firms are classified based on
their mar%et share or dominance of an industry. Typically there are four types of
mar%et dominance strategiesE
o *eader
o Challenger
o 1ollo#er
o -icher
Porter generic strategies 4 strategy on the dimensions of strategic scope and strategic
strength. /trategic scope refers to the mar%et penetration #hile strategic strength
refers to the firmKs sustainable competiti!e ad!antage. The generic strategy
frame#or% (porter 57B:) comprises t#o alternati!es each #ith t#o alternati!e scopes.
These are Differentiation and low-cost leadership each #ith a dimension of Focus4
broad or narro#.
o Product differentiation
15
o Mar%et segmentation
$nno!ation strategies 4 This deals #ith the firmCs rate of the ne# product de!elopment
and business model inno!ation. $t as%s #hether the company is on the cutting edge of
technology and business inno!ation. There are three typesE
o Pioneers
o Close follo#ers
o *ate follo#ers
.ro#th strategies 4 $n this scheme #e as% the &uestion) +3o# should the firm gro#LH.
There are a number of different #ays of ans#ering that &uestion) but the most
common gi!es four ans#ersE
o 3ori(ontal integration
o 2ertical integration
o ;i!ersification
o $ntensification
16
/3V3S3O4 O7 R*'A3;*RS 34 34/3A
The retail sector in $ndia can be di!ided into t#o maor categoriesE
5) 0rgani(ed
6) Fnorgani(ed
17
Marketing Strategies of R*;3A4)* MAR'
R'*$A-C' R'TA$* *T; has launched its much4a#aited hypermar%et format (#hich also
happens to be $ndiaKs largest hypermar%et) called +Reliance MartH at $scon Mall) /.
3igh#ay) Ahmadabad on August 5<. After the successful launch of the supermar%et format
18
HReliance 1reshH and the consumer electronics concept mega store +Reliance ;igitalH) the
hypermar%et is the third retail format launched by Reliance Retail.

/pread across 5=<)AAA s&uare feet of shopping area) Reliance Mart #ill pro!ide the shoppers
a ne!er4before4e"perienced shopping delight. The hypermar%et #ill carry a range of o!er
7<)AAA products catering to the entire family. /hoppers #ill ha!e the option to choose from a
#ide array of products in e!ery category ranging from fresh produce) food & grocery) home
care products) apparel and accessories) non4food 1MC. products) consumer durables and $T)
automoti!e accessories) lifestyle products) foot#ear and much more.

Commenting on the launch) /hri. Mu%esh Ambani) Chairman and Managing ;irector)
Reliance $ndustries *td) saidE +0rgani(ed retail has the potential to trigger socio4economic
transformation on an unprecedented scale in our country and #ill bring about enormous spin4
off benefits to the $ndian economy and its !arious constituentsH.

+The launch of Reliance Mart is yet another step by Reliance Retail to#ards pro!iding
international shopping e"perience to all our customers at unmatched affordability) guaranteed
&uality and choice of products and ser!ices. Reliance Mart mar%s the achie!ement of another
milestone in our effort to unleash a retail re!olution in $ndia.H /hri Ambani added.

Reliance Mart offers some uni&ue ser!ices to the shoppers li%e tailoring) shoe repair) #atch
repair) a photo shop) gift ser!ices and laundry ser!ices) all #ithin the store. The store also
houses its o#n fresh ba%ery) ser!ing +hot) off4the4o!enH bread and bread products throughout
the day and local sa!ouries) an ice4cream train for the %ids) a cha%%i) ready4made batter and
loose tea and pic%le for the house#i!es. Reliance Mart #ill also sell fine e#ellery and
fashion e#ellery as part of its lifestyle section.

Reliance Mart #ill also house a health and #ellness store pro!iding pharmaceutical drugs and
other #ellness products. 1or the shopperKs con!enience) the store has a cafeteria pro!iding
&uality food and be!erages for ready consumption) an ATM machine and a consumer
ser!ice M membership des% to pro!ide the customer a truly international shopping e"perience.

The hypermar%et also launched a host of RelianceKs o#n brands in select categories #ith
superior &uality and affordable prices li%e +1irst ClassH) +-et#or%) -etplay) Team /piritH and
19
/parsh in MenKs and DomenKs 1ormal M Casual and 'thnic #ear) +;-M4 NH in the eans
category for men and #omen) +PandaH for %ids clothing and + .ripH in the luggage section.
The foot#ear category #ill carry +OigH in formal #ear. +3i AttitudeH for semi 4formal)
+ToscoH for party #ear and +Mon(aH for the sports enthusiast. There are many products that
#ill be e"clusi!ely a!ailable in Reliance Mart stores only.

Reliance Mart) #ith =5 chec%4out counters has for the first time in $ndia introduced the
Mobile P0/ system for faster chec% outs. This is aimed at reducing customer #ait4time. The
store planning) atmospherics and layout has been designed specifically to pro!ide +a
complete solutionH to the customer. Reliance Mart #ill remain open from 5AEAA a.m. to
5AEAA p.m.) se!en days a #ee%. The store has o!er :AA highly s%illed and trained customer
sales representati!es. Reliance Mart #ill continue to offer all its customers Reliance 0ne) a
common membership and loyalty program across all its formats) #hich follo#s the
philosophy of P'arn Any#here) /pend Any#hereK. Reliance Mart #ill also pro!ide easy and
attracti!e finance options) including A? financing for your purchases on select products.
Reliance Retail plans to ha!e a pan4$ndia presence by opening o!er 8A Reliance Mart
hypermar%ets this year and o!er <AA by the end of 6A5A.
Ser,ices Offered
$t offers some uni&ue ser!ices to the shoppers li%e tailoring) shoe repair) #atch repair) a photo
shop) gifting ser!ices and laundry ser!ices all #ithin the store under one roof and also it has
its o#n ba%ery shop.
Reliance Mart #ill also pro!ide easy and attracti!e finance options) including (ero per cent
financing for the purchases on select products. Reliance Mart #ill continue to offer all its
customers Reliance 0ne) a common membership and loyalty programme across all its
formats) #hich follo#s the philosophy of C'arn Any#here) /pend Any#hereC.
20
7uture Plans
The ne"t t#o hypermar%ets are to be opened in Iamnagar in .uarat and in the -CR by ne"t
month #ith plans to open 8A such marts by the year. Raghu Pillai) President and C'0
(operations and strategy)) Reliance $ndustries *imited (R$*) said the company is planning to
set up <AA hypermar%ets across 9B: to#ns by 6A5A.
Strategy
The hypermar%et #ould be selling the products on ';*P (e!ery day lo# price) basis at prices
5<46A percent lo#er than mar%et prices.
$n order to gro# faster and better in local mar%ets #ith higher margins) it has focused largely
on local brands instead of national brands or pri!ate labels. *ocal brands include $nduben
,ha%ra#alaKs -am%eens) *iat Papad) Dagh Ba%ri and Madhur (spices brand). This is
in addition to 5AA pri!ate labels that Reliance plans to display. CompanyKs /ources says that
the share of regional brands in the hyper marts #ould be o!er 5A?.
Strengths
,eeping local brands at the outlets is more profitable and also ma%es the supply chain more
efficient. Being a bul% purchaser) Reliance Mart can offer products at !ery lo# prices. Also
ta%ing into consideration the local brands) the products at the outlets #ould be easily
acceptable by the customers. And there #ould be comparati!ely less efforts needed by the
mar%eter to e"plain the product to the consumers.
>eaknesses
$n some cases) fe# regional brands strongly li%ed by the consumers offer lo#er margins than
that offered by the national brands. $t has to face a tough competition by big shopping malls
i.e. Big Ba(aar) /pencer 3yper) 2ishal Mega Mart and the upcoming Dall Mart.
21
Popular Brands of Reliance Mart are(

Deppelin ( Mens /hirts & Trousers 7i@@y Babe ( *adies & ,ids .irls
9itaan Studio ( Mens /hirts & Trousers Easmine ( *adies & ,ids .irls
Blues & 9hakis (Mens Trousers Dero /egree ( ,ids Boys
Paranoia ( Mens /hirts & T4/hirts Soil ( Mens /hirts
)hlorine ( Mens /hirts Massa Bay (
Mens Trousers &
Bermudas
22

Marketing Strategies of Vishal Mega Mart
Product
2ishal Mega Mart offers a #ide range of products #hich starts from apparels to food items)
foot#ear to home furnishing) croc%ery to sport items) child care products to toys) #atches)
drin%s etc. There are many in house brands promoted by 2ishal Mega Mart. $n pursuance of
their business plan to di!ersify their portfolio of offerings) 1MC. products play a %ey role.
Price
23
2ishal Mega Mart promises its consumers the lo#est a!ailable price. The concept of
psychological discounting (Rs. 77) Rs. :7) etc.) is used as promotional tool. 2ishal Mega
Mart also caters on /pecial '!ent Pricing (Close to ;i#ali) Christmas) -e# Gear etc.).
/elling combo4pac%s and offering discount to customers. The combo4pac%s add !alue to
customer. Through Bundling) they also reduced the price of the products. $n addition to
2RP*Ks strategy to continue procurement of goods from small and medium si(e !endors and
manufacturers #hich leads to cost efficiencies) 2RP* intend to procure 1MC. and apparels
from lo#4cost production centers located outside $ndia. To#ards this obecti!e) 2RP*Ks
propose to increase their procurement of finished and semi4finished goods from China and
thereby reali(e economies of scale and pass on the benefits so accrued to their customers.
Place
2ishal Mega Mart stores are located in 55A cities #ith more than 5BA outlets. 2ishal Mega
Mart has presence in almost all the maor $ndian cities. They are aggressi!e on their
e"pansion plans. 2RP* intend to increase their penetration in the country by setting up ne#
stores in cities #here they already ha!e presence) as also entering into ne# areas in the
country. $n particular) they intend to focus on e"pansion in Tier $$ and Tier $$$ cities. 2RP*
target locations #ith good infrastructural facilities such as easy accessibility) pro!ision for
#ater) electricity) par%ing) security and other basic amenities.
Promotion
Ad!ertising has played a crucial role in building of the brand. 2ishal Mega Mart
ad!ertisements are mainly seen in print media i.e. ne#spapers) Tele!ision #ith Tina Pare%h as
there in ad!ertisement) and sometime road4side bill4boards. 2RP*Ks category management
system is used to plan promotional schemes. They launch promotional schemes #ee%ly. Apart
from general sales promotion) the category manager formulates promotional plans for Pslo#
mo!ersK. $n addition) to promote sales) they focus on layout of the stores and positioning)
presentation and display of merchandise) in order to appeal to the customer. $n addition)
2RP* ha!e introduced) in association #ith /B$ Cards & Payment /er!ices Pri!ate *imited) a
co4branded credit card. 2RP*Ks propose to continuously underta%e such initiati!es to increase
the satisfaction of their customers. /ome of the features of the co4branded card include Rs
6<A discount !oucher on signing up for the card and a process by #hich the cardholder earns
24
fi!e re#ard points on e!ery Rs 5AA spent. A cardholder accumulates points on the basis of
purchases made and the points accumulated can be redeemed for gifts or purchases. $n
/eptember 6AA<) 2RP* entered into a long term ad!ertising agreement #ith Bennett)
Coleman & Company *imited (+B));H). Fnder the agreement) they are entitled to fi"ed
discounts for their ad!ertisement in print publications of BCC* for a period of fi!e years
from the date of the agreement. As a part consideration) 2RP* had issued 5)=9A)=A< '&uity
/hares of Rs. 5A each and 8B:)57A Preference /hares of Rs. 5:= each amounting to an
aggregate of Rs. 8AA million.
Strong understanding of the F,alue retailG segment
2RP*Ks business plan in!ol!es implementation of the concept of the P!alue retailingK)
targeting the middle and lo#er middle income groups) #hich constitute maority of the
population in $ndia. 2RP* intend to pro!ide &uality products at competiti!e prices. 2RP*
sell a !ast range of merchandise across apparels and accessories) 1MC. products) food
products and consumer durables. 2RP*Ks emphasis has been to ma"imi(e the !alue that the
customers deri!e in spending on goods bought in their stores. 2RP* endea!or to
continuously reduce their costs through a !ariety of measures) such as) in4house production of
apparels) procurement of goods directly from the small and medium si(e !endors and
manufacturers) efficient logistics and distribution systems along #ith customi(ed product mi"
at their stores depending on the regional customer beha!ior and preferences. Central to their
25
!alue retail strategy is to pass on the benefits of cost reduction measures to their customers.
V3S<A; M*-A MAR'
+1uture is thin%ing beyond hori(onH & in order to %eep its pace #ith the modern retail)
Vishal Retail ;imited is spreading its #ings. $nstead of resting on its laurels the .roup are
busy identifying ne# a!enues of gro#th by !enturing in other formats li%e cash & carry)
con!enios as #ell as specialty stores and inspiring local retailers to gro# along #ith the big
names. The group has tied up #ith 3PC* to open corner stores at their petrol pumps and in
addition to the abo!e 2ishal has come up #ith an institute to train manpo#er for the ser!ice
industry.
26
Today 2ishal Retail *imited) 1lagship Company of 2ishal .roup) engaged in 3yper Mar%et
stores #ith an a!erage area of 6<)AAA to 8A)AAA s&. ft. through an impressi!e chain of more
than 5AA fully integrated stores in spread of more than the area of around 66) AA)AAA s&. ft. in
=7 cities across $ndia & has a plan to cross total retail area of 8< la%h s&. ft. in tier $$ and tier
$$$ cities by the end of 6AA7
.
According to Mr. Ram Chandra Agar#al) CM;) Vishal Retail ;imited) the group o#es its
origin to a small <A s& ft shop in ,ol%ataCs *al Ba(aar that started selling readymade
garments. $n tune #ith the pulse of the mar%et) he en!isioned a mega store that #ould sell
garments at prices none other could match. . The first big store opened in CalcuttaCs
'splanade area in 5779) under the banner of 2ishal .arments. 3e #as in!ol!ed in all the
aspects of the businessE right from sourcing the garments to interacting #ith customers. And
this led to his greatest finding +The 2ishal .roup.H
After identifying the immense mar%et in fashion garment for the masses) 3e mo!ed to ;elhi
in 6AA5 and opened his first store in ;elhiKs Raouri .arden by the name of 2ishal Mega
Mart (The e#el in 2ishal .roupKs cro#n) and then there #as no loo%ing bac% for Mr. Ram
Chandra Agar#al. At present) in addition to garments) 2ishal Mega Mart stores retail the
entire range of household products) 1MC. and electronic goods. 2ishalCs prices are roughly
5< to 6A per cent less than other mass mar%et garment labels.
Mr. Ram Chandra Agar#al) CM;) 2ishal Retail *imited belie!es that the shopping habits of
$ndians are changing due to their gro#ing disposable income) higher aspirations) relati!e
increase in the younger population) and the change in attitudes to#ards shopping. The
emphasis has changed from price consideration to design) &uality and trendy. Age is also a
maor factor that affects the spending decisions of an indi!idual. Consumer spending is an
important factor that affects the economic gro#th and de!elopment in a country. As a trend)
consumer is more educated. 3e has access to all reforms ta%ing place through !arious arrays
of communication. 3e is becoming a +!alue shopperH e!eryday.
,eeping this in mind) the group is no# loo%ing for franchisees to oin hands #ith 2ishal and
gro# under common banner. This partnership #ill help small retailers to sur!i!e the
onslaught of organi(ed retail as it #ill enhance their competiti!eness. /mall stores can a!ail
27
of the benefits on account of the economies of scale) a %ey ad!antage for big retailers. As per
the plans) 2ishal Retail #ill completely ta%e o!er the supply chain of its franchisees and
pro!ide them #ith technology) ne# practices) !isual merchandising s%ill and special
promotional schemes) besides its brand and costumer base.
Some of the 7ranchisee e+clusi,e business categories are
Mens 1ashion
*adies and ,ids
1oot#ear
Toys and .ames
3ome Q .eneral
Con!enience (1MC.)
C;$T
Datches
Mobile
28
The .roup also has a plan to raise around Rs 6AA crore through preferential issue in the ne"t
fe# months to fund the companyKs e"pansion plan. Mr. R C Agar#al said +Rs 5AA crore
corpus raised through the initial public offering had already been utili(ed and more money
#as re&uired to push the e"pansion plans further.H
The group has registered a consistent gro#th o!er the years. $t recorded a Hhopping
turno,er of more than Rs.I"" crores in !""#$"6 as opposed to a turno,er of Rs JJ"
)rore for !""I$ !""#. This ascent has inspired the .roup to chal% out an ambitious
e"pansion program) #ith e"pansion and gro#th plans being implemented on different
dimensions.
+Retailing is an engine for ta%ing merchandise to the end4users. There is a lot of opportunity
in this sector for us since demand of the potential consumers are not being met under the
e"isting facilities. Therein lies the road to success.H says Mr. R C Agar#al

Product Categories
$ <OM* 70R43S<34-
/raHing Room Bedroom
;oor Mat Bed /heet
Carpet Pillo#s
Curtains Pillo# Co!er
9itchen Bathroom
Apron Bath Mats
,itchen -ap%in To#el .ift /ets
29
7OO'>*AR
BO:S -3R;S
/hoes /lippers
/andals /andals
;A/3*S M*4S
/hoes /hoes
/lippers /lippers
M*4S
0pper ;oHer
/hirt Casual Ieans(MP)
/hirt 1ormal Cotton Trouser(MPC)
*thnic & Sports >inter >ear
-ight /uits /uit(DMC)
T4/hirts Bla(er(DMB)
;upatta Dindcheater(DMD)
/her#ani Iac%et
;A/3*S A))*SSOR3*S
0pper ;oHer
,urta Pants Ieans
/%irt Top Capri
*thnic >inter >ear
-ighty Iac%ets
*ancha /ta#l
/harara Bla(er
/al#ar /uit Trac% /uit
347A4'S
-arments Accessories
3ot Pant Bed /heet
1roc% Fnder .arments
Baba /uit /oc%s
>OM*4
Sarees Personal 3tems
1ancy(/R1) Cap(*CA)
/ynthetics /oc%s(*as)
Banarsi
EeHellery )osmetics
-ec%lace *$p .loss
Ring -ail Polish
93/S BO:S
;oHer Sets >inter >ear
Ieans -ight /uit /uit
Bermudas Baba /uit Bla(er
30
;ungries Iac%et
0pper *thnic
/hirt 1ormal ,urta4 Pyama
T4/hirt /her#ani
93/S -3R;S
;oHer Sets >inter >ear
3ot Pant -ight /uit 3ipster /et
/%irt Capri /et Bla(er
;ungries Iac%et
0pper *thnic
Tops(.DT) /harara
1roc%(.1,) *ancha
<O0S*<O;/
;inner /et Iug Ca%e /er!er
<ome Aids Pressure )ooker 4on Stick
1loor Diper Coo%er 3andi
/anitary Brush Pressure Pan ;osa Ta#a
-eneral Plastic -oods *lectrical App. Bone )hina
Coffee Mug Chopper /oup /et
Buc%et Micro#a!e 0!en ;essert /et
-lass >are 'hermo >are Porcelain
Cup Tiffin Cup & /aucer
*@emon /et Container
;37*S':;*
'ime Done Opticals -ifts & 4o,elties
*adies Drist Datch *adies /un .lass 1lo#er 2ase
Mens Drist Datch Mens /un .lass ,ey Chain
Mens Accessories *lectric & *lectronics
3tems
Perfume5/eo
Belts Battery(ABT) /pray
Dallets Calculator(''C) ;eo
'O:S & -AM*S
Soft 'oys /olls )ycles & Scooters
Musical Toys Barbie ;oll Cycles
-on4Musical 0ther ;olls /cooters
Board -ames 3nfant 'oys Video -ames
Dooden Bloc%s Teether T.2. 2ideo .ame
Pu((les /#ing 3and 2ideo .ame
31
7OO/ MAR'
7OO/ & B*V*RA-*S
/nac%s
;rin%s
32
OBJECTIVE
33
Objecti,es of Study
5. To /tudy the promotional strategies of R'*$A-C' MART & 2$/3A* M'.A MART.
6. To study the challenges and future prospects of R'*$A-C' MART & 2$/3A* M'.A
MART.
8. To study the different Brand offerings by R'*$A-C' MART & 2$/3A* M'.A MART.
:. To study the distribution strategies of R'*$A-C' MART & 2$/3A* M'.A MART.
34
Scope
35
Scope of study
This proect ga!e us great e"posure to the customerKs perception to the mar%eting strategies
adopted by the Reliance mart & 2ishal mega mart because it includes the ser!ice offered by
them. The study also identifies the attitudes and preference of the consumers. The study also
focused on Media through #hich the product reaches the consumers This proect helped us in
%no#ing the mar%et practically.
36
37
I!IT"TIO# OF T$E
ST%D&
;3M3'A'3O4
Although it #ould ha!e been nice to conduct a perfect research study) but this study is
conducted under certain limitations) #hich #ere faced #hile doing this research. /o it is
highly recommended to consider these limitations #hile going through the proect study.
These limitations are as follo#s
%. ;3M3'A'3O4 O7 /A'A
38
The statistical data regarding the city #as not a!ailable to us on secondary source of
data and to generate such data on the primary source #as a tas%) #hich cannot be
achie!ed in such a short time.
!. ;3M3'A'3O4 O7 '3M*
The limitation of time #as another constraint in the study as the study had to be
conducted in fe# months therefore many aspects ha!e been left une"plored.
Research period is not ust much enough to %no# fully about the strategies &
consumers perception
K. 34<3B3'3O4S O7 '<* R*SPO4/*4'S
The respondents did not reply the &uestion #ith precision as they #ere busy #ith their
o#n #or% or they #ere not interested in ta%ing part in such a research. 'mployees
sometimes feel hesitated #hile telling about their !ie# about their mar%eting
strategies.
2. R*S*AR)< <AS B**4 )O4/0)'*/ 34 A ;3M3'*/ AR*A
The research has been conducted for the 2ishal mega mart(sec485.fbd) & reliance
mart(Cro#n $nteriors Mall) 1aridabad) but not all their retail outlet ha!e been co!ered
therefore it has been mentioned that the research has been conducted in a limited area.
J. '<* SAMP;* S3D* 3S ;AR-*
The sample si(e ta%en of the respondents is large therefore a !ery rough picture of
their mar%eting strategies has been generated therefore this limitation has to be
considered in the study.
These limitations #ere !ery common and yet #e came across these #ith a positi!e note and
the subse&uent chapters in this report shall e"plain the rationality behind the structural
compilation.
39
40
'ESE"'C$
!ET$ODOO(&
41
Research Methodology
Research Methodology is a #ay to systematically sol!e the research problem. Dhen #e tal%
to research methodology #e not only tal% of research methods but also consider the logic
behind the method #e use in the conte"t of our research results are capable of being
e!aluated either by researcher himself or by other.
42
The purpose of this section is to describe the methodology carried out to complete the #or%.
The methodology plays a dominant role in any research #or%. The effecti!eness of any
research #or% depends upon the correctness and effecti!eness of the research methodology.
This section deals #ith research design used) data collection) methods used and sampling
methods used.
Research design
A research design specifies the methods and procedures for conducting a particular research.
According to ,er linger +Research design is a plan) structure and strategy of in!estigation
concei!ed so as to obtain ans#ers to research &uestions and ha!e to control !ariance.H
My research design
$ ha!e chosen descripti!e research design for my study because $ am interested in %no#ing
the mar%eting strategies adopted by Reliance Mart & 2ishal mega mart
To accomplish the predefined obecti!es of the research) descripti!e research design is used
to collect the re&uire information from the sources. $tKs a fact finding approach generali(ing a
cross sectional study of the present situation.
/esigning the Luestionnaire
/tructured &uestionnaires and obser!ation method ha!e been used to conduct the research.
Sampling method
43
/pecific sampling method #as used to collect the data from the respondents because sample
si(e is large. Customers & employees of Reliance Mart & 2ishal mega mart #ere selected for
the sur!ey.
Sampling unit
The data #as collected from the Customers & employees by &uestionnaire and obser!ation
method in the Reliance Mart (Cro#n $nteriors Mall) & 2ishal mega mart (sec485.faridabad)
Sample si@e
The data #ere collected fromE
<A customers
<A employees
/ata collection(
There are t#o maor methods of data collectionE
Primary data
/econdary data
Primary data collection is used #hen there is need for collecting first hand data. $n such
cases) no ade&uate and usable data is a!ailable to the researcher.
/econdary data collection is used #here ade&uate and usable data is a!ailable to researcher.
Primary data collection by one person may become secondary data for another.
$n my research study $ ha!e used both primary as #ell as secondary data collection method.
1or primary data obser!ation method is used) and for secondary data the sources used are
boo%s) ournals) maga(ines and $nternet.
/ata analysis
All the recommendations in this proect ha!e been suggested %eeping in mind the thorough
analysis of all the steps in recruitment process.
44
/ata collection methods
The method used for the sur!ey process is through &uestionnaire.
45
Data Collection
"nd
"nal)sis
)RM PO;3): O7 R*;3A4)* MAR'
CRM policy of reliance mart can be di!ided into four maor parts) namelyJ
5) Customer loyalty
6) Customer retention
8) Customer communication
46
:) Customer gratification
There e"ists a blan%et customer relationship programme called the reliance one membership
programme for the purpose of maintaining customer loyalty. The membership programme is a
!ery simple one #here a #illing customer is re&uired to fill a form gi!ing personal
information and he gets a temporary card #hich #ill be made permanent after si" months.
0n each purchase of rs. 5AA the customer gets one redeemable point on the production of
card at billing counter. The collected points can be redeemed in form of discounts on future
purchases on demand of the customer.
The customers also get the opportunity of a!ailing four different %inds of insurance on the
payment of a nominal fee. 1or e"ample a customer can get an accidental death insurance of rs
si" lacs on the payment of rs. :AA only.
0ther forms of insurances are disability) hospitali(ation and home insurances.
The members of reliance one get the opportunity of ta%ing part and #inning pri(es by the
#ay of luc%y dra#s on regular inter!als.
)ustomer retention policy implementation is at the (onal le!el. .enerally each state is
regarded as a (one and the offers and discounts in a (one are not a!ailable in other (ones.
/uch policy helps reliance retail to understand and capture the local mar%ets better.
The products #hich sho# impro!ement due to offers and discounts on them are repeated #ith
these offers again so as to retain the sales of the customers #ho bought it the last time.
Also such the dayKs best offers are constantly announced in the store ma%ing the regular
customers a#are about them.
Maintaining a good store ambiance is also a part of customer retention policy of reliance
retail. Clean and hygienic en!ironment #ith properly and #ell spaced products along #ith a
uniform color theme attracts the e"isting customers to the store again and again.
A fast billing system and good and easy grie!ance handling system #hich can be accessed
thru customer ser!ice des% and company #ebsite) ensures that customers feel satisfied #ith
the store management. *ess harassment to customers means better customer retention.
)ommunication to e"isting customers ta%es the form of sms and e4mails) generally sent to
reliance one members. They get information about ongoing offers and also information and
latest ne#s about their nearest stores and the company in general.
47
Another source of customer database is the information collected during the organi(ing of
special e!ents in the stores. Customers participating in such e!ents pro!ide their contact
information #hich are also used in form of database for communication purposes.
Than% you and festi!e cards on special occasions are an inno!ati!e #ay of communicating
#ith the customers.
Trained salespersons ma%e customer gratification !ery easy. A simple than% you #ith a smile
goes a long #ay for the store to %eep the customers happy.
The special e!ents organi(ed by the stores across india are also a #ay to gratify the customers
by allo#ing them to play and #in pri(es.
.ift !ouchers and discount coupons are an attraction for the customers and gi!e them the feel
that the store cares about them and their money.
*ocal customers many a times ma%e limited personal contacts #ith the store staff ust li%e
that made at a %irana store and help the store to some e"tent to maintain a relationship #ith
the customers.
The implementation of the policies brings out certain limitations in them. 1e# maor ones are
as follo#s
The personal contact numbers of reliance one members are open to tele mar%eting calls from
!arious mar%eters as they lea% out of the reliance retailKs database) causing unnecessary
harassment to customers.
The customer communication policy is less follo#ed in small to#ns and cities and is more
concentrated to#ards the metro cities.
There is a common crm policy for both reliance fresh and mart. This should not be the case as
both the stores offer different %inds of merchandi(e and generally attract different %inds of
customers.
Reliance retail generally delays the processing of permanent membership cards to those
customers #ho ha!e not paid for such a card. Customers ha!e been #aiting for o!er three
months for their card. Those #ho ha!e paid the nominal fee of rs. <A get their permanent card
#ithin 5< days but the rest #ho ha!e optioned not to pay the fees do not recei!e the card until
too late.
Fnmanned billing counters create long &ueues at the open counters. This creates impatiens in
the customers as they e"pect faster billing at the stores and do not #ant to stand #ith too
much of goods held in their hands #hile billing.
48
)RM M Vishal mega mart
Customer profitability analysis (CPA) is done on the basis of transactions made
through the future cards.
o Platinum customers (most profitable).
o .old customers (profitable).
o $ron customers (lo# profitability but desirable).
o *ead customers (unprofitable and undesirable).
49
;ifferentiate customers in terms ofE (5) their needs and (6) their !alue to company.
$nteract #ith indi!idual customers to impro!e the %no#ledge about indi!idual needs
and to build stronger relationships.
There are four type of analysis done for analysis of CRM

o Periodic /ur!eysE $tKs done on &uarterly) its an o!erall sur!ey done by the
future group authorities and CRM is a part of it.
o Customer *oss Rate E
o Mystery /hoppersE They pose as normal customers perform specific tas%sR
such as purchasing a product) as%ing &uestions) registering complaints or
beha!ing in a certain #ay Q and then pro!ide detailed reports or
feedbac% about their e"periences
o Monitor Competiti!e Performance
)omplaint <andling Procedures E
Screening And ;ogging 44 The type of product or ser!iceJ manufacturerMbrand
nameJ model nameMnumberJ date of purchaseMcontractJ #arranty e"piration dateJ
salespersonJ cost of productMser!iceJ date problem occurredJ and a description of
the problem is listed. This allo#s organi(ation to e"ercise control) and assure
proper follo#4through.
3n,estigating 44 customerCs e"planation of a problem pro!ides much information.
-e!ertheless) to assure they ha!e all the information needed for a thorough re!ie#
of the facts in!ol!ed) byE
o Researching in4house records on the customerJ
o Re&uesting receipts) or other recordsJ
o $nspecting the product) or ser!ice performedJ and
o 1ollo#ing4up #ith the customer for any necessary additional information.
AcknoHledging 44 Dhen 2ishal mega mart cannot resol!e an issue immediately)
it is important to let customer %no# that the matter is recei!ing attention.
Customer is gi!en information about ho# long it #ill ta%e to complete action on
the complaint. $f there is further delay) itKs made sure to ad!ise customer #hy and
#hen Big Ba(aar e"pects to ha!e an ans#er.
50
7ormulating A Solution 44 solution is made to be consistent #ith established
customer relations policy and important criteria are ta%en into accountE
o Contractual andMor #arranty obligationsJ
o The customerCs e"pectationsJ
o e"pectations of the customerJ
o The costMbenefit of alternati!e solutionsJ
o The probability and cost of customer see%ing redress in some other #ayJ
o The comprehensi!eness and fairness of solutionJ
o ability to perform the solutionJ and
o Dhat to do if the customer reects solution.
Responding 44 The response is made clear and appropriate. The customer must
understand the response) and the response must address the issues raised in the
customerCs original complaint.
An e"planation of decision preser!es the good#ill of customer) e!en if the decision
itself is ad!erse

7olloHing$0p Q Customer is contacted follo#ing response to !erify #hether or
not the matter has been resol!ed satisfactorily. $f customer is unhappy #ith
response) organi(ation refers the matter to a third party dispute resolution
mechanism for assistance.
Steps 3n,ol,ed in customer Satisfaction through Ser,ice(
o /eeing problems from the customerKs perspecti!e
o Managing customersC Smoments of truthS
o Communicating effecti!ely through better listening
o Analy(ing ho# customer perceptions are formed
o Managing anger and other ser!ice beha!iours
o ;ealing #ith long4term conse&uences of ser!ice brea%do#ns
o -egotiating solutions
51
o .enerating an action plan for impro!ed on4the4ob effecti!eness
SWOT ANALYSIS
52
VISHAL !"A A#T
Strength E
53
3igh Brand '&uity in e!ol!ing retails mar%ets
/tate4of4art infrastructure of Big Ba(aar outlets
P0P to increase the purchase
0ne stop shop for !ariety of products) increasing customer time and a!ailable choices
Wea$ness E
Fnable to meet store opening target so far
1alling re!enue per s&uare feet
Opportunit% (
0rgani(ed retail is ust :.5<?of total pie of $ndian retail mar%et
'!ol!ing Customer preferences in recent years.
Threat (
Competitors) global big players planning to foray into mar%et
.o!ernment policies are not #ell4defined in $ndia
Fnorgani(ed retail mar%et of $ndia
#!LIANC! A#T
54
Strengths&
3igh &uality)
latest in4style products)
international shopping e"perience
!alue for money pricing
loyal follo#ing
0#n brand of merchandise) #hich is both trendy and indi!idualistic.
ne# introductions e!ery #ee%
!ariety of designs and styles
e"citing mi" #ith a range e"tending from styli(ed clothes) foot#ear and accessories
for men) #omen and children to #ell4co4coordinated table linens) artefacts) home
accessories and furnishings.
Dell4designed interiors) spra#ling space) prime locations) lo!ely coffee shops add to
the customersK shopping e"perience.
Wea$ness&
-eeds to e"pand faster to maintain mar%et share
/i(e of the stores should be increased to stoc% more products.
Targets the middle4class segment. 3igher class customers do not prefer #est side.
Trent limited may not be able operate #est side efficiently due to its other operations.
OPPO#T'NITI!S&
To sur!i!e in todayKs #orld globali(ation is important. Reliance mart ha!e a #ide
opportunity to go more global to impro!e and e"pand its business.
55
They also ha!e the opportunity to consider more o!erseas supplier #hich #ill actually
gi!e them cost ad!antage) rather than suppliers a!ailable on a local le!el.
They also ha!e the opportunity to ma"imi(e the use of a!ailable technology to
impro!e their functioning and to gain competiti!e ad!antage.
Threats&
$f the unorgani(ed retailers are put together) they are parallel to a large supermar%et
#ith no or little o!erheads) high degree of fle"ibility in merchandise) display) prices
and turno!er.
/hopping CultureE /hopping culture has not de!eloped in $ndia as yet. '!en no#
malls are ust a place to hang around #ith family and friends and largely confined to
Dindo#4shopping.
Cultural 2ariation leads to !ariation in merchandise in $ndia at different geographical
locations.
Competition from future group and !arious other retail stores #hich are gro#ing
rapidly.
34/3A4 )O4S0M*R3SM
56
The lifestyle and profile of the $ndian consumer is going through a rapid transformation. The
population of $ndia is young) energetic and full of enthusiasm. <A? of the $ndian
population is under the age of 6<. There has been a transition from price consideration to
&uality and design) as the focus of the customer has changed. The upper and middle4
class population of today needs a feel good e"perience e!en if they ha!e to spend a little
more for that. People are mo!ing to#ards lu"ury and #ant to e"periment #ith fashion
and technology. There is an increasing need of better apparels) cars) mobile phones and
consumer durables.
The food & grocery) clothing) consumer durables and boo%s & music sectors are the maor
retail sectors. 3o#e!er) unorgani(ed small outlets largely control the sector. 3ence there is
57
tremendous potential for the organi(ed sector in !arious formats) such as hypermar%ets)
supermar%ets) specialty stores) category %illers and discount chains.
ANALYSIS
58
>5) Dhat Retail chain do you usually go toL
Reliance mart
2ishal mega mart
Any other
The obser!ation sho#s that :: ? of people out of 5AA person sur!eyed prefer to go to 2ishal
mega mart and only 8B ? & 5B? prefer to go reliance mart & any other retail outlet
respecti!ely.
>6) 3o# often do you !isit a Coffee /hopL
59
0nce in a month
T#ice in a month
Thrice in a month
The obser!ation sho#s that :6 ? of people out of 5AA person sur!eyed !isits retail stores
once in a month and only 8B ? & 6A? !isits the retail stores t#ice & thrice in a month
respecti!ely.
>8) 3o# much money do you usually spend on shopping in a monthL
A46<AA Rupees
6<AA49<AA Rupees
9<AA456<AA Rupees
0!er 56<AA Rupees
60
The obser!ation sho#s that <6 ? of people out of 5AA people sur!eyed spend Rs 6<AA49<AA
on shopping in a month. There are only <? people #ho spend more then 56<AA on shopping
out of 5AA people sur!eyed.
>:) 3o# much time do you usually spend at a /hopping martL
*ess than 5M6 hour
5M64 5 hour
546 hours
0!er 6 hours
61
The obser!ation sho#s that :7 ? of people out of 5AA people sur!eyed spend 546 hours in
shopping mart and 8A ? people spend T45 hour on shopping at retail store. There are only 7
? people #ho spend more than 6 hours at shopping mart.
><) 3o# many people do you usually go #ithL
Alone
Dith 5 person
64: people
More than : people
62
The obser!ation sho#s that <5 ? of people out of 5AA people sur!eyed goes along #ith 64:
person for shopping & there are only : ? people #ho goes for shopping along #ith more
than four persons...
>=) Please rate the follo#ing) according to your personal choice) for both Reliance mart &
2ishal mega martU.
63
>uestions Reliance mart 2ishal mega mart
1. Nuality of productsE (5VBad and <V '"cellent)
Accessories

5

6

8

:

<

:

<
3ousehold

5

6

8

:

<

:

<
*ifestyle

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
2. Prices of productsE (5VBad and <V '"cellent)
64
Accessories

5

6

8

:

<

:

<
3ousehold

5

6

8

:

<

:

<
*ifestyle

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
3. StaffE (5VBad and <V '"cellent)
65
Beha!iour

5

6

8

:

<

:

<
Manners

5

6

8

:

<

:

<
3elpfulness

5

6

8

:

<

:

<
/er!ice

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
4. >hat e+cite you mostO E (5VBad and <V '"cellent)
66
Promotional offers

5

6

8

:

<

:

<
2ariety of products

5

6

8

:

<

:

<
Price of the products

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
J. /o you e,er face any problemO:es54o&
Billing Problems

5

6

8

:

<

:

<
67
3ea!y Rush

5

6

8

:

<

:

<
PersonnelKs lac% of
%no#ledge

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
6. O,erall e+perienceO E (5VBad and <V '"cellent)
Products
5

6

8

:

<

:

<
68
People

5

6

8

:

<

:

<
Ambience

5

6

8

:

<

:

<
69
Findin*s
Findings
%. The choice of a store location has a profound effect on the entire business life of a
retail operation. A bad choice may all but guarantee failure) a good choice) and
success.
!. Choosing a retail location is) at best) a ris%y underta%ing. Considering the
70
conse&uences of choosing a location that pro!es to be unsuitable) it pays to get as
much assistance as possible. According to a sur!ey more than =A? of the customer
prefers to shop in a retail store #hich is easily accessible to them.
K. Ad!ertising plays a !ery important role in achie!ing gro#th for any retail company.
This is e!ident from the fact that Ad!ertising by Retail $ndustry registered a rise of 5:
percent during Ianuary 4 May 6AA7 o!er Ianuary 4 May 6AAB.
2. The right location) trained manpo#er) soft#are assistance) product #ith a distinct
differentiation) a strong !alue proposition) efficient supply chain management 4 these
are the factors that influence the success of a retail outlet. Dith competition in this
segment increasing) differentiation and a strong !alue proposition assume
significance. Retail chains are reali(ing that they cannot be another Pme4tooK store.
The differentiation today among the <4= retail chains has come through pri!ate labels)
#hich in some cases account for as much as 9A per cent of the total merchandise in
the outlet.
J. 2ariety offered by any retail store is of !ery much important to attract all type of
customers in the stores. A large !ariety of products caters to each segment of
customers.
P. /hopping e"perience #ithin a store also has a great impact on selecting a product
from a particular retail store. 0!erall ambience includes infrastructure facilities
pro!ided by the store such as air conditioners) lighting etc.
I. Pricing is in fact a dramatic controller of at least 8 %ey strategic elements to any
companyCs successE CompanyKs image) the product and ser!ices company sells and
consumer beha!ior. The $mportance of Pricing their ProductsC #ill gi!e them an
insight into de!eloping appropriate costing methods and the impact of getting it
#rong in todayCs competiti!e creati!e mar%et. This topic should be of interest to
anyone #ho is unsure if they are getting it right. Remember the difference bet#een
o!er or under4pricing their #or% can mean a !ery short future for any business.
Appro"imately =A? customers thin% that Price is the most important factor #hile they
go for shopping in a retail stores
#. >uality in e!eryday life and business) engineering and manufacturing has a pragmatic
interpretation as the non4inferiority) superiority or usefulness of something. This is the
most common interpretation of the term. The &uality of a product or ser!ice refers to
the perception of the degree to #hich the product or ser!ice meets the customerCs
e"pectations. >uality has no specific meaning unless related to a specific function
71
andMor obect. >uality is a perceptual) conditional and some#hat subecti!e attribute.
And in addition to that) more than 7A? of customers place &uality as the most
important factor than anything else in the list to shop in a retail store.
6. More than 9A? of customers place !ariety as an important factor to shop in a
particular retail store.
%". Brands name bears an important role #hile shopping of any type of goods. /o
building a brand for a retail store is important as BA? of customer still prefer to buy
branded clothes in the retail store instead of local or unbranded clothes.
72
Conclusion
+
Su**estions
73
Conclusion
.i!en the de!elopments and prospects) the $ndian retail sector is in its nascent stage of
e!olution. Dhile there are obstacles) there are clear opportunities in modern retailing in $ndia.
There are many lessons that $ndia can ta%e from other countries) #hich ha!e mo!ed along the
path of retail e!olution. The retail sector has pro!ed to be of immense significant from
macro4economic point of !ie#. The sectorKs capability to gi!e strong gro#th momentum by
creating multiplier effects on other sectors is not in dispute. $t is no# necessary to cautiously
74
e"pand and de!elop the sector) as the go!ernment) at present) has done by permitting partial
1;$ in the sector. .i!en the scope) the retail sector is certainly e"pected to fetch the long4
term economic benefits for the country.
The con!enience and personali(ed ser!ice offered by the unorgani(ed sector holds its future
in good stead for the future. 0rgani(ed retail of late has seen a tremendous boom and is
attracting more people to the malls.
Dhat is to be seen is ho# organi(ed retail can duplicate the same le!el of personali(ed
customer ser!ice le!els offered by the unorgani(ed sector to ha!e a higher con!ersion ratio.
The target audience for both the organi(ed and unorgani(ed retail formats remains relati!ely
the same. Dhen shopping in malls) people !alue the e"perience related to the trip the most
and return most fre&uently for the same. Besides) #hile enoying the e"perience they seem to
buy high tic%et and items of conspicuous consumption most fre&uently.
.aining and maintaining consumer preference is a battle that is ne!er really #on.
Continued and consistent branding initiati!es that reinforce the consumerKs purchase decision
#ill) o!er time) land the product in consumer preference sets. Attaining and sustaining
preference is an important step on the road to gaining brand loyalty
Suggestions
5. $nclude more trained sales person to help customers in the store #hile shopping.
6. $mpro!e &uality of the products especially clothes.
8. Play good songs or soothing music in the store rather than cheap filmy songs.
:. Customer care ser!ice can be introduced
<. More branded products can be displayed in the store as people still prefer branded
clothes than offered by local !endors.
75
=. Constant reminder of discounts through pamphlets) spea%ers inside the store for
inducing consumers for impulse buying.
9. Add more cosmetic products as its ha!ing a huge mar%et of consumers attached to it.
B. ;isplay of product should be impro!ed so that the product is easily !isible to the
consumers.
7. Proper ad!ertisement in press and outdoor to ma%e 2ishal Mega Mart should be
!isible in the eyes of consumers.
5A. /hould ha!e par%ing spaces in front of e!ery store.
55. 3ire more salesgirls as in ladies section its !ery difficult for both the consumers and
salesman to interact #ith each other.
56. Regular training to sales person to impro!e there o!erall performance.
58. Customi(ation of clothing should be gi!en an important consideration.
5:. Proper pac%aging and pro!ide contrast labelling in displays of product.
5<. /hould apply electronic supply chain management for better in!entory management.
5=. Proper po#er bac% up as air conditioners are not #or%ing to their full capacity at
many stores.
59. Proper placements of .ondola in the stores as space bet#een them are !ery less.
5B. Proper display in the gondola and top most rac% of the gondola should be used for
storing of in!entory rather than display of product.
57. /hould pro!ide more festi!al schemes and at proper time.
6A. /hould use psychological pricing4more discounts by increasing the price
65. Proper display of cutlery items
66. Clothes should be in sync #ith fashion.
76
Bi,lio*raph)
77
BIBILIOGRAPHY
Books referred(
78
Retailing Management
Pradhan) /#apna
Retail Management Q A /trategic Approach
Berman) Barry & '!ans) Ioel R.
The Art 0f Retailing
*amba) A.I.
>ebsites(
###.google.com
###.#i%ipedia.com
###.!ishalmegamart.com
###.reliancemart.com
###.indianretailindustry.com
79
-%ESTIO##"I'E
-%ESTIO##"I'E
Dear Sir/Madam,
80
$ 2i!e% gupta student of MBA of Bha#ani /han%ar Anangpuria institute of
technology & management) 1aridabad. $ am doing my proect on +Mar%eting /trategies of
Reliance Mart and 2ishal Mega MartH. Please gi!e your precious time for filling these
details.
-ameE
AgeE
ProfessionE
/e"E
>5) Dhat Retail chain do you usually go toL
Reliance mart
2ishal mega mart
Any other
>6) 3o# often do you !isit a Coffee /hopL
0nce in a month
T#ice in a month
Thrice in a month
>8) 3o# much money do you usually spend on shopping in a monthL
A46<AA Rupees
6<AA49<AA Rupees
9<AA456<AA Rupees
0!er 56<AA Rupees
>:) 3o# much time do you usually spend at a /hopping martL
*ess than 5M6 hour
5M64 5 hour
546 hours
0!er 6 hours
><) 3o# many people do you usually go #ithL
81
Alone
Dith 5 person
64: people
More than : people
>=) Please rate the follo#ing) according to your personal choice) for both Reliance mart &
2ishal mega martU.
>uestions Reliance mart 2ishal mega mart
1. Nuality of productsE (5VBad and <V '"cellent)
Accessories

5

6

8

:

<

:

<
3ousehold

5

6

8

:

<

:

<
*ifestyle

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
2. Prices of productsE (5VBad and <V '"cellent)
Accessories

5

6

8

:

<

:

<
3ousehold

5

6

8

:

<

:

<
82
*ifestyle

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
3. StaffE (5VBad and <V '"cellent)
Beha!iour

5

6

8

:

<

:

<
Manners

5

6

8

:

<

:

<
3elpfulness

5

6

8

:

<

:

<
/er!ice

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
4. >hat e+cite you mostO E (5VBad and <V '"cellent)
Promotional offers

5

6

8

:

<

:

<
2ariety of products

5

6

8

:

<

:

<
83
Price of the products

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
J. /o you e,er face any problemO:es54o&
Billing Problems

5

6

8

:

<

:

<
3ea!y Rush

5

6

8

:

<

:

<
PersonnelKs lac% of
%no#ledge

5

6

8

:

<

:

<
>uestions Reliance mart 2ishal mega mart
6. O,erall e+perienceO E (5VBad and <V '"cellent)
Products
5

6

8

:

<

:

<
84
People

5

6

8

:

<

:

<
Ambience

5

6

8

:

<

:

<
85