CHAPTER 1

INTRODUCTION

1

1.1 INTRODUCTION TO RESEARCH TOPIC Value and satisfaction are at the very heart of modern marketing thinking Marketing is indeed an ancient art; it has been practised in one form or the other, since the days of Adam and Eve. Today, it has become the most vital function in the worlds of business. Marketing, more than any other business function, deals with customers. Understanding, creating, communicating, and delivering customer and practice. Marketing is the delivery of customer satisfaction at a profit. Marketing management is a functional area of business management. it plays a vital role in developing strategies, plans and programs for each market segment in order to satisfy the customer wants. Marketing management represents marketing concept in action. In other words, it refers to the pre-plan demand management under customer oriented marketing philosophy. In simple words, marketing management is the management of marketing activities that is to involve planning, implementation and control of marketing programmes included in the process of marketing. Martin Zober has described marketing management as follows: “Marketing management is the use of interdisciplinary sciences in the coordinative effort of planning, organizing, and controlling activities that direct the flow of goods and services from producer and to customers. So that they are fully satisfied and the objectives of the enterprise are achieved”. Marketing management has historically been identified with tasks and personnel dealing with the customer market. It has the task of influencing the level, timing and composition of demand in a way that will help the organization achieving its objective marketing management is essentially demand management. 2

Market: The word ‘Market’ is derived from the Latin word ‘marcatus’, which means merchandise, trade or a place where business is conducted. In ordinary language the term market means a place where goods are bought and sold. The concept exchange and relationships lead to the concept of market. A market is a set of actual and potential buyers of a product. Thus buyers share a particular need or want that can be satisfied through exchanges and relationship. The size of the market depends on the number of people who exhibit the need, have resources to engage to exchange, and are willing to offer these resources in exchange for what they want. The retail industry is one of the biggest employers in the country. Retailers sell goods and products to consumers. There are many different kinds of retailers, including department stores, specialty stores, discounters, catalogs, Internet sites, independent stores, chain restaurants and grocery stores. Retailers have a real need for employees who have good people skills. Many salespersons work evenings, weekends, and long hours from Thanksgiving through the beginning of January, during sales, and in other peak retail periods. The retail trade sector comprises establishments primarily engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise; retailers are therefore organized to sell merchandise in small quantities to the general public. This sector comprises two main types of retailers, that is, store and non-store retailers. Their main characteristics are described below.

Store Retailers

3

Store retailers operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers. They typically sell merchandise to the general public for personal or household consumption, but some also serve business and institutional clients. These include establishments such as office supplies stores, computer and software stores, gasoline stations, building material dealers, plumbing supplies stores and electrical supplies stores. In addition to selling merchandise, some types of store retailers are also engaged in the provision of after-sales services, such as repair and installation. For example, new automobile dealers, electronic and appliance stores and musical instrument and supplies stores often provide repair services, while floor covering stores and window treatment stores often provide installation services. As a general rule, establishments engaged in retailing merchandise and providing after sales services are classified in this sector. Catalogue sales showrooms, gasoline service stations, and mobile home dealers are treated as store retailers. Non-Store Retailers Non-store retailers, like store retailers, are organized to serve the general public, but their retailing methods differ. The establishments of this sub-sector reach customers and market merchandise with methods such as, the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of traditional and electronic catalogues, door-to-door solicitation, in-home demonstration, temporary displaying of merchandise (stalls) and distribution by vending machines. The methods of transaction and delivery of merchandise vary by type of non-store retailers. For example, non-store retailers that reach their customers using information technologies can receive payment at the time of purchase or at the time of delivery, and the delivery of the merchandise may be done by the retailer or by a third party, such as the post office or a courier. In contrast, non-store retailers that reach their customers by door-to-door solicitation, in-home demonstration, 4

temporary displaying of merchandise (stalls) and vending machines typically receive payment and deliver the merchandise to the customer at the time of the purchase. The non-store retailer’s sub-sector also includes establishments engaged in the home delivery of products. This includes home heating oil dealers and newspaper delivery companies. Retail Employment: The retail industry accounts for about 11.6 percent of U.S. employment. Annual retail employment averaged 15.3 million people in 2005. Retail unemployment was 5.4 percent compared to 5.1 percent overall. Employment of non supervisory workers in retail averaged 13.0 million in 2005. Non supervisory retail employees averaged 30.6 hours a week during 2005 with average hourly earnings of $12.36. Ten year employment projections expect retail to increase 11.0 percent, versus 14.8 percent overall. Challenges for retail include operating on razor-thin margins, the retail industry is challenged by static domestic markets, a volatile economic scenario, a need to globalize and exploit unfamiliar segment, the need to achieve critical mass, rapid consumer demand shifts, supply chain coordination, and relentless competition. Retailers are looking for innovative ways of responding to evolving markets, competitive pricing, new product rollouts, and changing consumer tastes. Existing retail technology is fragmented, with limited integration between storefront and corporate systems and even less between the enterprise and its supply chain partners. Aging platforms are proving inflexible, expensive to maintain, difficult to integrate and dependent on a shrinking base of experienced support talent. Retailers worldwide are opting for IT services outsourcing, which enables them to focus their attention on core functions and business operations, adding value to their business by freeing up valuable resources and reducing costs.

5

1.2 SUBJECT BACKGROUND OF THE TOPIC The Current Retail Context As differentiation between retail chains decrease and the need for convenience and value-added services increases, customers have become more discerning and demanding but less loyal than before. One retailer's customer today is a potential customer for all other chains, formats and channels tomorrow. To create sustainable advantage over competition, retailers are trying to enhance their product offerings, service levels and pricing models. To prevent value erosion and to protect margins, retailers are trying to reduce their cost-to-serve per customer and thereby ensure that the total cost of ownership of a customer over time is reduced. Managing promotional spends is another critical area for retailers to focus and target customers more effectively and efficiently. Generating above 10% of the Gross Domestic Production, Indian retail industry is the largest source of employment, after agriculture, in the country. Enormous opportunities exist in this sector. Driven by the changing lifestyles and strong income growth, retail industry in India is expected to record an impressive growth in the next five years. Growth in this sector will be further supported by the favorable demographic patterns. Growing consumer credit will also help boost consumer demand. As shopping malls are becoming increasingly common in metropolitan cities, and the announced development plans project at least 150 new shopping malls by 2008. Number of departmental stores is growing at an annual 24%. Supermarkets have been taking a growing share of general food and grocery trade during the past two decades. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and 6

consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. The mall's glistening exterior seems to capture the exuberance of India's economic boom. Inside, however, except for a busy restaurant and supermarket, business is sluggish, and many shops are slathered with signs proclaiming SALE. Organized retailers in India are trying out a variety of formats, ranging from discount stores to supermarket to hypermarkets to specialty chains. However, of late, most players appear to be gravitating towards the hypermarket format. Some feel a combination of cash-and-carry and neighborhood stores, as in a huband-spokes model can be a good bet. Says one retail analyst, nascent markets like India need a lot of room for experimentation on part of the retailers. Ergo, there are no cut-and-dried solutions when it comes to fixing on the right retail format. Finally, while in the first flush of the retail boom, the elimination of traditional intermediaries may bring windfall gains (as well as bring welcome and muchneeded relief to the producers), this source will increasingly dry out as competition intensifies and margins come under pressure a few years down the line. What would set the survivors apart from those who are forced to sell out (or go belly-up) will be differentiators like location, value-added services (convenience), private labels and customer loyalty programmes, other than price. The last, a result of retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global 7

sourcing and scale will be a key factor. And, if experience in other markets is anything to go by, an uncanny ability to read shifting trends. 1.3 NEED OF THE STUDY Retailing is a low-margin, high-volume, commodity business where profitability gets strained as competition intensifies. And if wrong choices are made regarding the location or the formatting of the store, woe betide the retailer. The catches are many and to make it big, a retailer would have to negotiate all the tricky turns most of the time. Given the number of players getting into the fray today, this clearly means a winnowing out of the weaker retail players. What's more, that time could be sooner rather than later, maybe just three or four years down the line. That's not so surprising, industry insiders even say, pointing out that a large number of the new entrants may not be committed to retailing in the long term. While some almost certainly are looking to act as silent partners for foreign players, others may be more willing to look at an exit option a few years down the line. Forum has been rated as one of the best malls in the country, now with the entry of other malls in Bangalore, Forum has been challenged in its position to remain at the top. The present research would identify whether Forum Mall has the competitive advantage over other malls in Bangalore.

8

CHAPTER 2

RESEARCH DESIGN

9

2.1 INTRODUCTION

The Malls in retail industry in India collectively generate 90 crores revenue a year. Some players have managed to cut through consumer resistance with innovation, pricing and aggressive marketing. The competition level in the Mall industry is very high now. Many brands are fighting in the market for maximum share. They have to bring out a lot of differentiation among them. The major duty of the marketer is to know the reasons for preferring particular Mall by the consumers.

2.2 REVIEW OF LITERATURE

The Competitive Advantage Report includes questions in four key areas, Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the customer should be invited to participate in the survey. Setting realistic expectations during the sales process is a vital component of making happy customers. How a company sets and meets product and service expectations plays a pivotal role in fashioning customer opinions. For this report, how a company meets or exceeds expectations is measured in three important areas: product/service, support, and price. These three areas will be used to factor a score for the Expectations category. The results of the three questions will be used to factor an overall expectations score. The Purchase Decision category gives us a better understanding of how the customer perceives the purchase process. Two key areas for questions include an open ended question on why they purchased and a ratings question on their experience. The rating Question data will be used for the analysis of Purchase Decision category. The open ended responses from the “Why” questions will be used for product strengths analysis. The results of the purchase experience question will be used for the overall Purchase perception analysis. Customer service is one of the most important differentiations a company can have. For this report, customers will rate a company in three key areas: customer service, timeliness for problem resolution, and expertise. These three areas will be used to factor a score for the Customer Service category.

10

PURPOSE OF LITERATURE REVIEW

Literature review is one of the prime parts of every project. The very basic purpose of the literature review is to gain insight on the theoretical background of the research problem. It helps the researcher to gain strong Theoretical basis of the problem under study and also help to explore whether any one has done research on the related issue. That’s why literature review helps one to find out the path of problem solving. In this regards the very basic purpose of the literature review in this project is same as mentioned 2.3 PROBLEM STATEMENT Forum has been rated as one of the best malls in the country, now with the entry of other malls in Bangalore, Forum has been challenged in its position to remain at the top. The present research would identify whether Forum Mall has the competitive advantage over other malls in Bangalore. 2.4 OBJECTIVES The principle objective of the present research study is to analyze the competitive advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore. The specific objective of the study are :1. To identify the competitive advantage of Forum in the retail industry in terms of • • • • Promotional activities Brand value Customer perception Brand offerings

2. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma Mall, Eva Mall.

11

2.5 RESEARCH METHODOLOGY POPULATION The population in this present study consists of the regular visitors in the mall during the last 15 days. SAMPLE AND SAMPLING TECHNIQUE The sample taken is 100 and the sampling technique used here is convenient sampling..

SOURCES OF DATA Secondary and primary data would be collected for the study. After identifying and defining the research problem and determining specific information required solving the problem the researcher will look for the type and sources of data which may yield the desired results Secondary data: Secondary data is available in the form of company records, trade publications, company reports, Daily Newspaper, Textbook, Various Websites and libraries. Primary data: Primary data is collected by framing questionnaires. The questionnaire contained questions which are both open-ended and closed-ended.

2.6 SCOPE The study conducted would help in understanding and analyzing the various aspects in the retail industry. It would indicate that global supply chain development shall also be a key success factor, the retailers who are able to provide high quality

12

products at the most competitive prices will be the winners. Finally, the Indian retailers will have to brace themselves for increased competition on a global level. 2.7 LIMITATIONS 1. The study is time-bound (1 month) 2. The research is conducted only in Bangalore 3. The sample taken is limited as it is a research and not a census. CHAPTER SCHEME 1. 2. 3. 4. 5. Introduction Research Methodology Profile of the Industry and Company Analysis of the Data Collected Findings, Suggestions and Conclusion

Bibliography Appendix

13

CHAPTER 3

PROFILE OF INDUSTRY & COMPANY

14

3.1 RETAIL INDUSTRY

After leading the IT bandwagon, India is poised to grow as a Retail hub. It is imperative to sustain the modernization of the retail sector and dispel the myth that the game is big Vs small or traditional Vs modern or organized Vs unorganized or local Vs foreign . What is needed is to create an appropriate environment to propel retail where all benefit, he said. India's huge population, he said, has the potential for mammoth consumption if given the power of spending and that is only possible through large scale development generating employment which is already happening with retail as the driving force. According to IMAGES India Retail Report 2007, of the Rs.12,00,000 crores retail market, food & grocery retail is by far the single largest block estimated to be worth a whopping Rs.7,43,900 crores, but more than 99 per cent of this market is dominated by the neighborhood kirana stores. But unlike the experiences in most other countries, growth of Indian retail is not going to be a staggered and time-taking process: India has already shown the world how quick it can adapt to hi-tech products and services and will again set a record of sorts in setting up world class retail formats across the country in record time. In the next five years India should have retail entities strong enough to compete with the best in the world At present, India's retail sector is largely unorganized, with about 15 million tiny outlets catering to consumer needs across the country – it employs the second-largest number of people after agriculture. Organized retail is now focused primarily on the 300 million urban "middle classes'' and an additional 200 million rural rich, who form a consumer market worth more than US$100 billion. So, there is enough ground for the modern and the traditional formats to co-exist.

India's economic growth story consists three important things:

15

One - that here is a society in which the fruits of development are more evenly spread, in which democracy is more real and palpable to the mass of the population, which makes for a stable social environment that is attractive and reassuring; Two - that India is an enormous market, of which you are seeing only the tip of the iceberg; Three - the tremendous resilience of India: we survived the zooming oil prices, the fluctuating dollar and global recession, with barely a hiccup. The Indian economy is integrating with the world, and yet it simultaneously has its own dynamics, which cushion global shocks as in no other country. India had kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in single-brand retail with prior government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode. . “To understand the reasoning and implications of such moves it was vital to size up the entire retail market in various segments and consumption levels across product categories with share of the organized segment and it was just the right time for India Retail Forum to take the initiative of researching the scope of retail businesses in India” Till, couple of years back the Indian organized retail market was either dominated by the apparel brand stores or regional retail chains. There was no Pan-India retail chain on the line of developed economies and the organized retail in India contributes roughly 3.5 ñ 4 per cent of the total Indian retail, which is very small compared to the developing economies like Thailand, Brazil and so on. ICICI Property Services and Technopak estimate that the total real estate required by the upcoming organized retail chains will be in the range of 500 million square feet, out of which 250 mn sq ft should be contributed by the shopping malls. However, as per the current plans of real estate developers, only 143-mn sq ft of mall space is being planned over the next five years and this leaves the retail industry with a shortage of more than 40 per cent. Developers are now more attuned to the demand by both domestic and foreign companies, where tenants are driving on 16

improvement in the quality of commercial real estate development. The success of retail real estate business depends on the developer’s ability to recognize and respond to the changing consumer and market trends. As the competition in the market is intense, mall developers, in a bid to offer distinctive value propositions are planning specialty malls. These malls have a higher conversion rate as consumers go there with specific requirements. A number of malls are being developed as a part of a large residential development, driven by the concept of providing a total quality lifestyle with residential, retail and office space as a part of integrated development. The retail component helps boost the property values of the overall development and the available catchments from the residential component aid in marketing the mall. With so much action in the shopping mall space, there is always a debate going on about the implication on the existing retail real estate. The study shows that high streets being in operation for long have assured footfalls of the target segment and in fact, most of the retailers experience much higher space productivity in a high street shop than a regular mall. However, the speedy development of ill-conceived and poorly planned malls has and will continue to lead to lower profits for mall owners and retailers. India has also seen many foreign developers as well as investors coming in the last year to get a foothold in the lucrative real estate market. Many Indian developers have also raised funds from the global investors or are planning to raise capital from the capital market. Mall management has been a major challenge for India’s shopping mall owners, who until recently have mostly developed properties and then sold it to investors who further lease it out to the retailers. This has resulted in unplanned and uncontrolled developments of the malls and may lead to eventual loss of rental values. The mall owners and developers need to consider the importance of controlling and managing their malls in order to maximize the value on their investments. The right mix of tenants would lead to maximizing the market value of the mall. India is getting into an interesting phase as far as retail and real estate is concerned and we will see more and more and world class shopping ambience being created by developer. With new shopping-malls having become operational in many cities across India, it is interesting to observe how the shopping-behavior of consumers in the vicinity of these malls has changed and thereby draw some lessons that could be of some use to the 17

developers of hundreds of new malls that are currently under planning or construction across India. It is still not too long ago that the operators of a particular new shopping-mall at Mumbai had to contemplate restricting entries of visitors by imposing conditions that such entry was limited to those having mobile phones or credit cards a.k.a., the income tax department's one in six criterion for filing a tax return. Rentals, rather than going down with more malls coming up, started moving up even as the quality of services within the malls started deteriorating. In this context, therefore, it is somewhat surprising that questions are already being asked, albeit in whispers, whether shopping-malls can survive and operate profitably in India. Many tenants lament about the low percentage of conversions from those who walk through the portals of these malls, and casual observers routinely find shopping-bags missing in the hands of the supposed shoppers visiting these malls as an indicator that the initial euphoria about shopping in the malls is already on the wane and that consumers are reverting to their traditional shopping-destinations. There are some myths and some realities about these observations. It is, indeed, true that many Indian retailer tenants in the shopping-malls have now become familiar with terms such as footfalls, conversions, average transaction value, and repeat customers. However, it is also true that for many of these tenants, it has been their first expansion beyond their traditional high street locations and hence, they have expectations born more out of hype than by any real experience. There is no reason to believe that it should be any different in a shopping-mall, which, in any case, is fundamentally no different from a traditional shopping-high street, except that a mall has a more modern and compact structure, in most cases a single roof. Local retailer tenants who move into a new mall for the first time should not expect any customer loyalty being built up overnight. 18

Mall developers also have to create distinctive identities for their specific malls, much like the identities that have developed over time for major shopping-high streets in various cities in the country. Their work is not done just when the mall has been commissioned! As for the would-be retailer tenants, it is important to realize that merely moving into a mall does not guarantee business for them. They have to work as hard to draw consumers to their own stores once the latter have entered the mall, and then have the right value proposition for them to get converted into customers, and then become repeat customers. The final, obvious, conclusion is that mall developers have to invest in getting a better understanding about the retail business, while retailers have to get a better understanding about the dynamics of operating at a new location. India's vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. The retail road ahead The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated at only US$ 8 billion. However, the opportunity is huge--by 2010, organized retail is expected to grow to US$ 22 billion. With the growth of organized retailing estimated at 40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon. Moving up the evolutionary ladder won't be easy for India's retailers. Especially given the large number of potential spoilers. Availability of quality retail space will be a key

19

determinant for the growth of the sector. With most Indian cities undergoing rapid urbanization, spiraling rental costs has most retailers worried already. Hitherto, most retailers have preferred to go in for long-term leases. But with real estate prices in most top tier cities hitting the roof in the past two years, lease rental increases are making business unviable for organized retail. According to PricewaterhouseCoopers (PWC), the current average lease rentals across some of the top cities range from Rs 88 per sq feet per month to as high as Rs 120 per sq ft per month. On an average, lease rentals account for 7-8% of the revenue and 40-45% of the non-material cost for retailers. Unless these prices stabilize, most retail businesses could end up taking much longer than originally planned to break even. Foreign retailers have shown that managing operations innovatively can provide a significant competitive advantage to retailers. Wal-Mart, for instance, leverages IT to track supply chain processes like cross-docking very effectively. Similarly, Tesco requires lean production techniques of its suppliers and has high-reliability delivery systems in place such as 'milk-runs'. The other key metric -- stock availability -- is telling too: Where global retailers achieve more than 95% availability of all stock-keeping units on the retail shelves, their Indian counterparts cut a rather poor figure at 5-15%.There are other areas that retailers would have to master -- such as reaping economies in procurement and transportation, bulk storage, trend forecasting to minimize inventory levels -- before they can truly claim to have arrived. There are various retail formats currently in use in India. These include hyper and supermarkets, convenience stores, department stores and specialty chains. Among these formats a notable trend has been the development of integrated retail-cumentertainment centers and malls as opposed to stand-alone developments. About 25 million square feet of organized retail space is expected to come up across the country by 2005. Mumbai and Delhi rank amongst the top two cities in India for organized retail growth. Although, the emergence of the organized retail outlets has predominantly been an urban phenomenon, in the next couple of years, organized 20

retailers will to enter semi-urban areas in India, where disposable income is also fast increasing. Retailing is not yet officially recognized as an industry. India does not allow 100 percent foreign direct investment (FDI) in the retailing sector. There have been discussions between the government and the industry on opening up the retail sector to FDI, and at least allow 26 percent foreign equity initially, but a decision has not yet been taken. A case is being made to the Government of India by officials of some global majors to allow FDI in retail trading of low-volume, high-value products. Though 100 percent FDI is not allowed, it is still possible for the foreign retailers to enter the Indian market through three channels - franchise agreements, cash and carry wholesale trading, and strategic license agreements. With tariffs on imported consumer items gradually being aligned to meet prescribed WTO norms and reduction of import restrictions, the retailing sector will get a major boost. To attract and sustain the interest of international retailers, India still has quite a way to go by way of reforming the real estate laws, restructuring the tax structure, and allowing FDI in the retail sector. The growing consuming class coupled with the entry and expansion of organized sector players in the recent years has set the pace for corporate investment in retail business. It has seen the emergence of supermarkets, huge department stores and shopping malls. Large-format supermarkets are coming up including centrally air-conditioned malls. The retailers have started looking at new business formats, business planning and expansion.

However, the sector faces several challenges. Property and real estate issues, capital availability, legal framework, human resources, supply chain development and management, and logistics are amongst the prominent ones. The foremost challenge facing the organized retail industry in India is competition from the unorganized sector.

21

Traditional retailing (12 million outlets) has been established in India (as elsewhere in the world) for centuries. It is a low cost structure, mostly owner-operated, has negligible real estate and labor costs and little or no taxes to pay. Consumer familiarity that runs from generation to generation is a big advantage for the traditional retailing sector. In contrast, players in the organized sector have big expenses to meet, and yet have to keep prices low enough to be able to compete with the traditional sector. High costs for the organized sector arises from: higher labor costs, social security to employees, high quality real estate, much bigger premises, comfort facilities such as air-conditioning, back-up power supply, taxes etc. Organized retailing also has to cope with the middle class psychology that the bigger and brighter a sales outlet, the more expensive it will be. Despite these difficulties, investor interest in this sector is growing. Also, with tariffs on imported consumer items gradually being aligned to meet prescribed WTO norms and reduction of import restrictions, the retailing sector will get a major boost. Competition The figures for the Indian retail business, when compared to developed markets, look small. But in the Indian context they are attractive enough to invite investors' attention. Some of the largest Indian corporate houses such as the Tatas, Rahejas, and Goenkas have entered the retailing sector. In addition, the last decade has seen many retail startups such as Pantaloon, Shoppers' Stop, and Ebony entering the organized retail fray. Although some have fallen by the way side, a significant number of new retail businesses have surged ahead of the pack and are now aiming to become nation wide chains.

Current retailing formats such as street carts, pavement shops, kirana stores (mom and pop stores), public distribution system, kiosks, weekly markets etc. are unique to India and have been in existence for a long time. A major contrast to these formats is the emergence of modern large-scale formats such as supermarkets, specialty stores, chain stores, department stores, hypermarkets, factory 22

outlets and discounters. In addition to these formats, the emergence of malls has transformed the retailing environment in India and is expected to push organized retailing into the fast track. A unique distinction in the mall development in India is that Indian malls have a combination of high value outlets, as well as mass brands, while in comparison malls overseas either cater to the mass category or are the boutique type. If a city like Mumbai is examined, there are three types of malls in existence in Mumbai. Though malls are on route to be the kings of organized retail in the future, their sustainability is debatable. It will eventually come down to what value proposition a mall manager can provide versus the competition to increase footfalls into the mall. Given the number of retail malls coming up around the country, only the one that satisfies the Indian consumers' need for value-for-money proposition will survive. Of course, there is a perception that the offerings of these spacious, plush and up scale stores will be high priced. To counter those apprehensions, stores have started offering budget-pricing schemes, offers and sales to attract that price sensitive customer. Unlike the early days of organized retailing in India, people of all strata of society are now walking into these stores. Market Access The Global Retail Development Index (GRDI), developed by AT Kearney has ranked India fifth in a global ranking of emerging destinations in the retail sector for food and general merchandise retailers who have international expansion plans. Since Foreign Direct Investment is not allowed or encouraged, India remains only a potential attractive destination for investments. Retailing is one of the few sectors of the Indian economy that is closed to Foreign Direct Investment (FDI). One of the major arguments against allowing FDI is that the advent of large retailers will cause the demise of the mom and pop stores.

23

However, those in favor of allowing FDI argue that there are obvious benefits of permitting FDI in retail - it will boost a key growth sector of the economy, create employment, benefit consumers with the increase in the retailer efficiency and competitiveness, and introduce best practices and access to world-class technologies. Despite the perceived benefits of permitting FDI into the retail trade sector, reticence still persists amongst policy makers. Strategic License Agreements: Mango, a well-known apparel brand, has used this route to enter into India as it is said to be the easiest alternative for global retailers. A strategic License Agreement involves the signing of a joint venture agreement with a domestic retailer. Although global retailers are using the above routes as an alternative to FDI, major chambers and associations are sparing no effort to make the government understand the opportunities FDI in this sector will bring in for the economy. It will be a while before the government realizes that FDI will not only boost the retail scenario but will also attract FDI in various upstream activities such as food processing and packaging. In this scenario, global retailers will be unable to enter into India till the government decides to open its shores to foreign investment. However, in addition to the routes mentioned above it is important to note that non-resident Indians can invest in the real estate development sector. Therefore, it is possible for foreign property developers to tie up with NRIs to invest in property development in India. Retailers are faced with the enormous challenges of globalization, regulation, growing costs, and demanding customers. In addition to these changing market conditions, there are now multiple channels to reach customers. All of this increases the need for flexibility and agility in the business applications. However, at a time when competition is keenly interested in buzzwords like agility and adaptability, businesses are confronted with systems seemingly built of steel and cement. Businesses are stuck with applications which were developed as though things would never change. These applications become more expensive and cumbersome each time organizations tweak them to fit new business imperatives. Unfortunately, this leads to less materialization of automation because systems require constant human intervention and IT development. All too often, the alignment of technology with business objectives gets bogged down by integration problems and progresses no further than the white board. 24

Embracing emerging technologies to enhance the overall experience of the customers and improve efficiency within the organization. These pressures are forcing retailers to rethink their overall strategies. Current legacy systems—either in store or at the corporate headquarters—were designed and implemented many years back, and retailing has moved on since then. These legacy solutions tend to be uni-functional. For example check-out systems remain single-purpose devices, and even though new point-of-service (POS) solutions offer inventory management, price optimization, and customer management some retailers are still only using POS devices to check-out the customer. In addition, current retail solutions are built as separate siloed systems. Brick-and-mortar retail channel runs independently from the e-commerce channel, which runs independently of the catalog base-order management system, and so on. However, customers are increasingly using the stores to touch and feel the products but ordering the products from e-commerce sites. As broadband availability becomes pervasive, the distinction between different channels is blurring. Customers are expecting the same experience irrespective of how they shop. They expect their preferences and customer information to be carried between the channels and expect to accrue loyalty points across all channels. 3.2 COMPANY PROFILE - The Forum BACKGROUND The Prestige Group, who is the leading property developer of Bangalore, is promoting this Project. The Group has completed over 5 million square foot of space and has delivered over a 100 projects. The Group also has over five decades of experience in retailing and represents leading brands in Bangalore. This unique combination of real estate experience and retail expertise gives the Group the technical competence and the conceptual sensitivity to design, build and manage an integrated only for lease and not for sale SHOPPING MALL that offers complementary experiences. The Project design incorporates market research, product profile and mall customer psychology inputs from international property and mall management consultants from USA and Hong Kong through CB Richard Ellis and Jones Lang LaSalle. Following thru on these inputs the Project design process proceeded as follows: 25

1. The target customer was profiled to be between 15 and 40, of the ‘nowgeneration’ and in the middle / upper middle class segment. 2. The experiences that the target customer group would seek and which should be offered were identified to be: • • • • Retail Food & Beverage Entertainment, and A multiplex 3. The total space that should be allocated for each experience was identified. E.g., Retail 38% 4. Within each experience, the trade mix that must be present to provide prospective customers with a comprehensive offering was determined. E.g., Apparel 36% 5. For each trade mix the constituent trade category was identified. E.g., Men’s Formal 17%. 6. For trade category a wish list of constituents was drawn up. E.g., Raymond’s, Louis Philippe. The resultant offering to the consumer would thus be focused and capable of making the SHOPPING MALL a destination. The Project is comprised of 650,000 sft of built area in four- and – a – half acres of land. Of the total area, 350,000 sft is the people space and 300, 000 sft for parking around 800 vehicles. The highlights of the project are: • • • • • • • • Consumer focus design. Complementary experience / product offering. Only for lease. Presence of only ‘top-of-mind’ recall brands. 11 – Screen multiplex. Parking for around 1000 vehicles. Mall promotion and management by promoter. Operational by mid 2003. 26

The Project is unique, relevant and contemporary in concept, positioning and success potential. LOCATION The property is located at 21. Hosur Road, Koramangala, Bangalore. It is within four and a half kilometers from Brigade Road, which marks the Central Business District. The property gains access from two main roads and has a frontage of over 350 ft. The catchments area of the project includes prime residential areas of Koramangala, Jayanagar, Richmond Town, BTM layout and Indiranagar. The location is part of the IT corridor. The travel time from the CBD is within 10 minutes. Several colleges [Jyothi Nivas College, Christ College, St. John’s Medical College], software [Lucent Technologies] / commercial [Mico] offices, stores [Big Bazaar, Globus, Raheja Arcade], eat-outs [Pizza Corner] are located within a radius of 1 km, but no organized ‘brand’ retailing is in the vicinity.

NEED FOR THE PROJECT Consistent with the faster pace of life, time has become a commodity: to be conserved and wisely spent. It is in acknowledging this new value for time that marketers worldwide recognized the convergence of shopping and entertainment and the emergence of family entertainment centers as the premier destination of all spenders of leisure time. Shopping and entertainment are today complementary expectations for shoppers and entertainment seekers. All current platforms of shopping and entertainment in Bangalore – whether in high streets, shopping complexes, cinema theaters, video parlors or restaurants – are in mutually exclusive locations. This places limits upon the customers potential to maximize time….. and it is in response to this, that this project has been conceived. International property consultants have the following to say: • 83% of entrepreneur retailers contacted are planning expansion – CB Richard Ellis

27

• • • •

Bangalore is right on top of new expansion list of most brand managers – CB Richard Ellis Shopping Malls and cinema are currently the most attractive leisure destinations – CB Richard Ellis Bangalore is one of the four best markets in the country having a high level of retail maturity – Jones Lang LaSalle Organized retailing in India is set to increase five fold from US $ 1.2 billion in 2000 to US $ 7.6 billion in 2005 – Kurt Salmon Associates

This Project’s offering is thus supported by strong research fundamentals. PROJECT COMPONENTS The principle ideation behind the Mall is to offer: • • • A Brand optimizing presence A synergistic environment, and A potential for 300 minutes of ‘shopper-tainment’

Consistent with this ideation and supported by the researched findings of international property consultants, the Project has the following components: • • • Two levels of retail space. Each level is about 85000 SFT. One level of food courts, play stations and entertainment One level of cinema housing an 11 – screen multiplex, with 2150 seats.

All the components are scheduled to be commissioned simultaneously and would be supported by: • • • • • • 100 % power back up Intelligent computerized car parking system for 1000 vehicles Centralized air conditioning Indoor air quality management system. Professional Mall management for services and Mall promotion Joint exclusive marketing mandate to CB Richard Ellis and Jones Lang LaSalle.

28

ENVIRONMENTAL ASPECTS The Project is located in an area designated for commercial use in terms of the Comprehensive Development Plan of the Bangalore Development Authority. Its immediate neighborhood is consistent with the planned activity. Provisions for water treatment and sewage treatment have been incorporated into the Project planning.

PRESENT STATUS 1. The Mall is full fledged functional from February 2004. 2. All designing has been completed. 3. Leasing program with all Tenants is complete. 4. Commitments received for 100% of space.

SL# 1 2 3 4 5 6

CATEGORY ANCHORS FOODCOURT F&B BRANDED STORES NON BRANDED MULTIPLEX

AREA OCCUPIED IN SFT 81458 29008 27742 98882 5508 104875 347473

IN PERCENTAGE 23.27 8.32 7.96 28.76 1.57 30.08 100.00

PARTICIPATING BRANDS INCLUDE: LEVEL 0 • • • • • • • MC DONALD ARCHIES REEBOK CARBON ZODIAC TITAN HSBC 29

• • • • • • • • • • • • • • • • • •

HEALTH & GLOW FX CURRENCY CAFÉ COFFEE DAY LEVIS ADIDAS METRO ARROW NIKE KFC FAB MART RELIANCE WEB STORE BENETTON PLANET FASHION TOMMY HILFIGER WEEKENDER KIDS PEPE PROLINE WESTSIDE

LEVEL 1 • • • • • • • • • ISIS MUSTARD CHAI SWAROVSKI SF JEANS WILLIAM PENN JOCKEY GREEN HILLS COOKIE MAN 30

• • • • • • • • • • • • • • • • •

PETER ENGLAND PROVOGUE SAMSONITE MOCHI SCULLERS PIZZA HUT RAYMONDS MASPAR AFFINITY FFARNA LEE WRANGLER LANDMARK LUSH MILANO ETHOS KHADDAR

LEVEL 2 • • • • • • • • • • BOSE AFTON WHIZZ SWEET WORLD MODEL ART KALMANE SONODYNE SANGEETHA APPLE AMOEBA 31

• • •

NIK NISH FEATHERLITE TRANSIT

LEVEL 3 • • • PVR CINEMAS BASKIN ROBBINS BODY CRAFT - NAIL BAR

LEVEL 4 • • PVR CINEMAS DECCAN DREAMS

The Bangalore-based real estate developers Prestige Group took root way back in 1956 in the avatar of a retail store, Prestige Fashions, that bartered in custom tailoring and retailing ready-to-wear garments. It was in 1985-86 that the company forayed into real estate development with the construction of Prestige Court in KH Road, Bangalore. Over the years, the Prestige Group has played a major role in changing the skyline of Bangalore and is fast emerging as one of the leading developers of South India. So far Prestige Constructions has completed over 120 projects, encompassing more than 10 million sq. ft. of commercial and residential area. In the residential segment, Prestige has undertaken projects such as Prestige Kensington Gardens, Prestige Wellington Park, and Prestige Shantiniketan. The group is also developing United Breweries' real estate venture, UB City. Prestige has also made a mark by developing high-quality commercial projects like Prestige Nebula and Prestige Technology Park.

32

In an effort to cash in on the retail boom in the country, the Prestige Group has planned to develop over 7 malls in South India at an investment of Rs. 2500 crore. The group's Forum Mall in Bangalore, an entertainment-cum-retail complex, includes 11 theatre multiplexes with food, bowling and shopping facilities. Besides being an ISO 9001:2000 certified company, the Prestige Group has also received the Crisil DA1 rating for its commitment to excellence. Beginning with a retail store and growing to become one of the most trusted names in real estate- the Prestige Group has come a long way. It was one man's dream, his grit and foresight that laid the firm foundations of Prestige, way back in 1956. Mr. Razack Sattar - the visionary who glimpsed what others would comprehend many years later and the founder of what is today the Prestige Group of Companies. The grand old man of retailing, endowed with unmatched business acumen, sowed the seeds of high quality retailing in Bangalore with Prestige Fashions on Commercial Street. Having started with custom tailoring and retailing ready-to-wear garments, the company today scores skylines with innumerable impressive constructions. A success story truly made possible by the founder's progeny - Irfan, Rezwan, Noaman and Anjum, the group has been groomed into great leaders who continue to uphold the Prestige vision. Spreading the falcon's wings We moved into the sphere of property development with Prestige Court (KH Road, Bangalore) in 1985-86. The last decade saw the Prestige Group strengthening its pillars of trust, quality and credibility, thereby leaving an indelible mark on the skyline of Bangalore and its people, as one of the leading developers of South India. And as the scorecard proudly reads today - over 120 developments completed, encompassing more than 10 million sq.ft. of commercial and residential area - it's proof that there's no looking back for Prestige. Several developments in the pipeline include noted developments like UB cITy, Prestige Shantiniketan as well as the Prestige Technology Park. What's more, we are also planning to spread out into other cities - with plans of a mall in Hyderabad, a residential development in Cochin, a technology park in Chennai and villas in Goa. 33

Strengthening our promise Today, as a real estate development company honoured with people's trust and credited with transforming the skyline of Bangalore, we at Prestige constantly strive for perfection. The ultimate aim is to exceed your expectations. A proof of our efforts - we are the only builders to get a reaffirmation of the Crisil DA1 rating; we have also become an ISO 9001:2000 certified company. We are also the only builders in Bangalore whose software and residential facilities have won the reputed FIABCI award.

At present, our Rs. 300 crore construction conglomerate is spearheaded by Irfan Razack and ably supported by Rezwan Razack. Noaman Razack, the youngest of the three brothers, looks after the retailing business. Faiz Rezwan, the son of Rezwan Razack has recently joined the board as a director and is already proving to be an asset to the company.

34

CHAPTER 4

DATA ANALYSIS & INTERPRETATION

35

ANALSIS OF DATA COLLECTED “COMPETITIVE ADVANTAGE OF RETAIL INDUSTRY” – A study on Forum Mall. PROBLEM STATEMENT Forum has been rated as one of the best malls in the country, now with the entry of other malls in Bangalore; Forum has been challenged in its position to remain at the top. The present research would identify whether Forum Mall has the competitive advantage over other malls in Bangalore. OBJECTIVES The principle objective of the present research study is to analyze the competitive advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore. The specific objective of the study are :3. To identify the competitive advantage of Forum in the retail industry in terms of • • • • Promotional activities Brand value Customer perception Brand offerings

4. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma Mall, Eva Mall.

36

RESEARCH METHODOLOGY POPULATION The population in this present study consists of the regular visitors in the mall during the last 15 days. SAMPLE AND SAMPLING TECHNIQUE The sample taken is 100 and the sampling technique used here is convenient sampling.

SOURCES OF DATA Secondary and primary data would be collected for the study. After identifying and defining the research problem and determining specific information required solving the problem the researcher will look for the type and sources of data which may yield the desired results Secondary data: Secondary data is available in the form of company records, trade publications, company reports, Daily Newspaper, Textbook, Various Websites and libraries. Primary data: Primary data is collected by framing questionnaires. The questionnaire contained questions which are both open-ended and closed-ended.

37

Analysis of data collected

AGE OF THE RESPONDENTS

Table No. 1 AGE 18-25 42 25-40 19 40-55 15 ABOVE 55 100 TOTAL Interpretation: The above table showing the age categories of the Mall visitors who participated in the survey . 100% 15% 19% 42% NO. OF RESPONDENTS 24 % OF RESPONDENTS 24%

38

AGE OF RESPONDENTS

45 40 35 30 25 20 15 10 5 0 18-25 25-40 AGE S1 40-55 >55 RESPONDENTS

Analysis: Above 40% of the respondents of the survey were between25-40 of age and second most respondents were between18-25. There were only 15 respondents of above 55.

39

GENDER OF THE RESPONDENTS Table No. 2 GENDER NO OF RESPONDENTS % OF RESPONDENTS

MALE

45

45%

FEMALE

55

55%

TOTAL

100

100%

Interpretation: The above table showing the gender of the respondents those who participated in the survey

40

GENDER OF THE RESPONDENTS

M a le F e m a le

Analysis Above 55% of respondents of the survey were female customers and there were only 45% male respondents.

41

OCCUPATION OF THE RESPONDENTS

Table No. 3 Occupation Business Professional Employee Student Others No of Respondents 18 14 20 38 10 % of Respondents 18% 14% 20% 38% 10%

Total

100

100%

Interpretation: The above table showing the occupation of the Mall Visitors those who participated in the survey and their percentage wise analysis

42

Occupation of the Respodents
40 35 30 No of Respondents 25 20 15 10 5 0 Business Pfsnl Emplye Occupation Stdnt Others

Analysis: The majority of the Mall Visitors participated in the survey were students. consisting of 38% and the employees consisted of 20%. And the Professionals and Businessmen constitute only 32%.

43

FREQUENT MALL VISITOR Table No. 4 Mall Visitor No. of Respondents %age of Respondents

Yes

89

89%

No

11

11%

Total

100

100%

Interpretation: The above table showing that the number of respondents who frequently visit malls during the survey.

44

F R E Q U E N T V IS IT O R

YES NO

Analysis Around 90% of the respondents are frequent mall visitors as compared to the 10% of those who don’t visit regularly.

45

HOW OFTEN DO YOU GO TO MALLS. Table No.5 Frequency of visit Respondents %age of Respondents

Once a week

25

25%

Twice a week

53

53%

Thrice a week

22

22%

Total

100

100%

Interpretation The above table shows the frequency of respondents visiting malls during the survey.

46

F re q u e n c y o f v is it

60 50 40 R e sp o n d e n 30 ts 20 10 0 O nc e a w eek Tw ic e a w eek Thric e a w eek

Analysis The majority of the respondents have been visiting malls twice a week as compared to the other respondents.

47

REASON FOR MALL VISIT Table No.6 Reason for Mall Visit Respondents %age of Respondents

Movies

12

12%

Shopping

29

29%

Food Court

2

2%

All

57

57%

Total

100

100%

Interpretation The above table shows the reasons as to why respondents go to malls during the survey.

48

R e a s o n fo r M a ll v is it
60 50 40 Respondents 30 20 10 0 M o vie s
Analysis It is seen that most of the respondents visit malls for all the aspects mentioned i.e. movies, shopping and food court.

S h o p p in g

F o o d C o u rt

A ll

49

WHICH MALL DO YOU PREFER GOING TO Table No.7 Mall Preference Respondents %age of Respondents

Forum

52

52%

Sigma

11

11%

Eva

6

6%

Garuda

31

31%

Total

100

100%

Interpretation The above table shows the Mall preference by the respondents during the survey.

50

M a ll P r e fe r e n c e b y R e s p o n d e n ts

F o ru m S ig m a E va G a ru d a

Analysis The analysis shows that most of the Respondents prefer going to Forum Mall.

51

SHOPPING ATTRIBUTES SOUGHT FROM A MALL

Table No.8 Shopping Attributes Respondents %age of Respondents

Ambience

23

23%

Stores

34

34%

Proximity

26

26%

Food courts

17

17%

Total

100

100%

Interpretation The above table shows the shopping attributes that respondents look for while shopping in a mall.

52

S h o p p in g A ttr ib u te s in a M a ll

A m b ie n c e S t o re s P ro x im it y F o o d c o u rt s

Analysis The analysis shows that stores are the main attributes that respondents look for while shopping in malls followed by proximity.

53

ARE YOU AWARE OF THE FORUM SHOPPING FESTIVAL HELD LAST YEAR Table No.9 Awareness Respondents %age of respondents

Yes

100

100%

No

-

-

Total

100

100%

Interpretation The table shows that if the respondents were aware of the Forum Shopping Festival that was held last year.

54

A w a r e n e s s o f t h e F o r u m S h o p p in g F e s t iv a l
120 100 80 Respondents 60 40 20 0 Y es
Analysis The analysis shows that all of the respondents were aware of the Forum Shopping Festival.

No

55

THE MALL OFFERING THE BEST MIX OF BRAND OUTLETS Table No.10 Mall with right brand mix Forum Sigma Eva Garuda Respondents 54 12 9 25 %age of Respondents 54% 12% 9% 25%

Total

100

100%

Interpretation The table shows which mall offers the best mix of brands that the respondents prefer.

56

M a lls w ith r ig h t m ix o f b r a n d s
G a ru d a E va S ig m a F o ru m 0 10 20 30 40 50 60

R e s p o n d e n ts
Analysis The analysis shows that the respondents favor Forum Mall in having the right mix of brand outlets.

57

RATING OF THE MALLS 5-Excellent, 4-Very Good, 3-Good, 2-Poor, 1-Very Poor Table No.11 Entertainment

Parameters

Location

Layout

Hygiene

Parking

Overall

Forum

5

4

4

4

4

4

Sigma

3

3

2

3

3

3

Eva

3

1

2

3

2

2

Garuda

5

3

3

3

3

3

Interpretation The above table shows the ratings given by the respondents based on the parameters of the Malls.

58

M a ll R a tin g s
6 5 4 Rating 3 2 1 0 L o c a tio n Lay out E n te rta in m e n t H y g ie n e P a ra m e te rs
Analysis The analysis shows that Forum has got the maximum ratings among the other malls in contention in Bangalore.

F o ru m S igm a E va G a ru d a

P a rk in g

59

INFERENCE FROM THE DATA ANALYIS

From the data analysis I can say that my objectives have been proved right i.e. Forum has a competitive advantage in terms of • Promotional activities • Brand value • Customer perception • Brand offerings

Also from the comparative study it can be concluded that Forum does have competitive advantage when compared to the other malls.

60

CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

61

FINDINGS
The old prophecy that once a customer is a customer has become a myth in the present day competitive world. Brand image no longer works a magic with the consumer. So to hold the customer to the brand and attract new consumers the company must come up with strategies that is efficient and competent along with its marketing activities that help in market visibility. After analyzing the response of the respondent through questionnaire and observation the following were found in the study. 1) Majority of the customers visit Forum to watch movies, visit Landmark, McDonald’s, Transit and Westside. 2) Most of the respondents felt that there is a need for space to keep their luggage. 3) Most of the respondents are influenced to come to the malls due to friends, relatives and word of mouth. 4) Some respondents felt that Forum should go for advertisements. 5) Some of the respondents (Corporate Clients) felt that the price paid to Forum for their promotional activities is not satisfactory. 6) Some of the respondents (Retail Showrooms at the Mall) felt that the rent paid to Forum is not satisfactory. 7) It is found that Forum Mall has the largest parking space (3, 00,000 sq.ft) when compared to other Malls in Bangalore city. 8) Quality service and product is the motto that Forum inculcates to all its stores.

62

SUGGESTIONS
No product or a service can completely satisfy the customers. Satisfaction is the state of mind of each and every customer which is termed as a black box for any organization or for a manufacturer, it is also highly an impossible task. Therefore suggestions must be given on the basis of research work. A few important suggestions regarding The Forum Mall are the following. 1) The mall must have a suggestion box for the staff & all the suggestions must be reviewed & the best of them must be rewarded. 2) The customers must be provided with a space for keeping their luggage. 3) The Mall must have coin box (telephone) that works at all levels. 4) For the appraisal of the staff, the management should implement some points system, where in who ever gets more points should be awarded once in six months. 5) Motivational activities should be conducted for the staff. 6) Experts should be invited for guest lectures to the employees to update their skills and knowledge. 7) The brands which are not performing well in the Mall should be removed and replaced with other brands for better performance. 8) Identifying the staff with executive talents for developing them to occupy managerial positions. 9) Frequent organizing of carnivals, sponsoring events should be arranged, so that customer foot falls will be more. 10) They could promote art and cultural activities which could help conserving the heritage and it could attract customers

63

CONCLUSION
A careful study has been done to understand the behavior of customers through questionnaires, observation and through proper guidance of respective faculties. The study which lasted for one month has provided information to understand the buying behavior, and what are the factors which influence buying in the malls is studied in order to apply various activities for promotion in order to bring the crowds. Thus the project leads with all the details of origin of malls and their developments in future is given brief. The study is restricted to the four malls namely Forum, Sigma, Eva, Garuda, and the facts clearly show that people go with intense as well as impulse behavior. It also determines that opinion leaders play an important role while they have to be attracted most because they influence buying. The foremost point to understand the customer was through customer care, which helps to know what customers want, and what type they are. The features at Forum are exceptional from other Malls and attract the potential customers. The study shows the satisfaction levels who visit to malls and what sort of future it has, as a retail industry

64

BIBLIOGRAPHY
TEXTBOOKS REFERRED

RETAIL MARKETING - MALCOLM SULLIVAN & DENNIS ADCOCK RETAIL MARKETING - GIBSON G VEDMANI PRINCIPLES OF MARKETING - PHILIP KOTLER
MAGAZINES

BUSINESS TODAY BUSINESS WORLD BUSINESS STANDARD
NEWSPAPER REFERRED

ECONOMICS TIMES HINDU BUSINESS LINE THE TIMES OF INDIA BUSINESS STANDARD
WEB SITE REFERRED

www.theforumexperience.com www.prestigeconstructions.com www.retailworld.com www.indiainfoline.com www.businessworldindia.com

65

ANNEXURE
QUESTIONNAIRE Dear customer, . I M CALVIN VARGHESE final year MBA student of the Kristu Jayanti College of Management and Technology doing a project work on “Competitive advantage in retail industry-A study on Forum Mall” for my academic purpose. I request you to kindly fill this questionnaire. Thanking you, Sincerely yours, 1. Name:2. Age:18-25 25-40 40-55 >55

3. Sex 4. Occupation:-

Male

Female

Business Student 5. Are you a frequent visitor to malls? Yes 6. How often do you go to the malls?

Professional Others

Employee

No

66

Once a week 7. Why do you go to malls? Movies Shopping

Twice a week

Thrice a week

Food court

All

8. Which mall do you prefer to go to the most? Forum Sigma Eva Garuda

9. What do you look for most while shopping in a mall? Ambience Stores Proximity Food courts

10. Are you aware of the Forum Shopping Festival that was held last year? Yes No

11. Which Mall offers you the right mix of brand outlets? Forum Sigma Eva Garuda

12. Please rate the malls on the following. FORUM MALL Parameters Excellant Very Good Good Poor Very Poor Location Layout Entertainment Hygiene Parking EVA MALL Parameters Excellant Very Good Good Poor Very Poor 67

Location Layout Entertainment Hygiene Parking SIGMA MALL Parameters Excellant Very Good Good Poor Very Poor Location Layout Entertainment Hygiene Parking GARUDA MALL Parameters Excellant Very Good Good Poor Very Poor Location Layout Entertainment Hygiene Parking Thank you for devoting your time I am truly grateful.

68