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AIRPLAZA RETAIL HOLDINNGS LTD.
Project report submitted in partial fulfillment of the requirement of Pondicherry University for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(Reg No.1105566) Under the guidance of
INTERNAL GUIDE: Dr. UMA CHANDRASEKRAN
Associate Professor Department of Management Studies School of Management Pondicherry University.
Mr. ABHISHEK SRIVASTAVA Head-Retail Merchandising Vishal Mega mart New Delhi
DEPARTMENT OF MANAGEMENT STUDIES SCHOOL OF MANAGEMENT PONDICHERRY UNIVERSITY March-April 2012
DEPARTMENT OF MANAGEMENT STUDIES SCHOOL OF MANAGEMENT PONDICHERRY UNIVRSITY PUDUCHERRY – 605 014
This is to certify that this project titled “CUSTOMERS PERCEPTION
TOWARDS VISHAL MEGA MART” for “VISHAL RETAIL LTD.-AIRPLAZA RETAIL HOLDINGS PRIVATE LTD.” by Saumitra Singh, (Reg No. 1105566) during
March-April 2012 in partial fulfillment of the requirements for the award of the degree of Master of Business Administration. It is certified to be an original and bonafide work.
Professor and Head of the Department Department of Management Studies School of Management Pondicherry University
Dr. UMA CHANDRASEKRAN
Associate Professor Department of Management Studies School of Management Pondicherry University
I hereby declare that the project report titled “CUSTOMERS PERCEPTION TOWARDS VISHAL MEGA MART.” submitted to Department of Management Studies, Pondicherry University, is a record of original work done by me under the guidance of Dr. Uma ChandrasekAran, Associate Professor, DMS. This project work is submitted in partial fulfillment of the requirements for the award of degree in Masters of Business Administration. The results or any part of this project have not been submitted to any other University or Institute for the award of any degree or diploma.
Words often fail to express one’s inner feelings of gratitude and indebtedness to one’s benefactors, but then it is only the readily available medium through which the undersigned can express his sincere thanks to all those who are associated with the work in one way or the other. Nothing concrete can be achieved without an optimal combination of inspiration and perspiration. No work can be accomplished without taking the guidance of the experts. It is only the critiques from ingenious intellectuals that helped transform a product into a quality product. Project work is never the work of an individual. It is more of a combination of use, suggestions and contributions and work involving many individuals. This project also bears the impact of many people. First and foremost I would like to gratefully acknowledge and express my sincere gratitude towards Dr.R.P.Raya, Head of the Department and Mrs. Uma Chandrasekaran, my subject teacher who always helped and provided guidance during the course of my project. I would like to extend my earnest thanks for his assistance in the course of making term papers. The learning during the project was immense & invaluable. I would also like to extend my gratitude and thanks to Mr. Abhishek Srivastava, the Head-Retail Merchandising ,Vishal Mega Mart, Delhi for giving me this opportunity to work on this project. I shall be failing in my duties if I do not express my gratitude to my friends for their useful help at various stages of this Project work.
Executive Summary Introduction Growth of Retail Sector Vishal Retail Ltd History Review of Literature Research Methodology Analysis & Interpretation Findings Complaints Recommendations Questionnaire References
The project is about costumers perception towards Vishal Mega Mart. Retail industry is booming all around the globe at a very fast pace. Vishal Retail is a known and strong competitor in the retail industry since 23 years, now acquired by Airplaza Retail Holdings Private Ltd. When we talk about Indian market, the demands of everything which you can find in every retail store are increasing every year. Indians are famous for their traditions and festivals and exchanging gifts with friends and relatives is a part of it. This project report is the study of various parameters of behavior of consumer towards Vishal Mega Mart and relates it to the theoretical aspects within the scope of our subjects. It also helps us in understanding the functioning that took place with in an organization from different perspectives. A questionnaire has been drafted, to try and understand the psyche of the VISHAL MEGA MART customers to know their needs and expectations which can be further utilized by the company to gain a competitive edge over their competitors. It also helps us in understanding the different technologies being used by VRPL. In the end, I came up with some suggestions based on my analysis of customer tastes and preferences and competition prevailing in retail sector.
The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. India has the most unorganized retail market in the world. Most retailers of the unorganized retail market have their shop in the front and house at the back. The Retail Industry in India is today amongst the fastest growing industries with several players entering the market. Currently, the organized retail sector accounts for only 2 per cent indicating a huge potential market opportunity. India is being seen as most attractive market by retail investors from all over the world. Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently under construction. Many players are coming up with huge investments, due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to enter the retail markets. The rising demands of branded products and increase in purchasing power have lured these companies to enter the market. Modern retail development in India is focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National Capital Region, Chennai, Banglore, Hyderabad, Kolkata. The leading Indian retailers are Bata India Ltd, Big Bazaar, Crossword, Vishal Mega Mart., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries etc.
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and man y of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations. Ret ailing in India is graduall y inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in Sprawling shopping centers, multi -storied 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.
Retailing is the final step in the distribution of merchandise - the last link in the Suppl y Chain - connecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. A retailer, t ypicall y, is someone who does not effect any signif icant change in the product execs breaking the bulk. He/ She are also the final stock point who makes products or services available to the consumer whenever require. Hence, the value proposition a retailer offers to a consumer is easy availabilities of th e desired product in the desired sizes at the desired times. In the developed countries, the retail industry has developed into a full fledged industry where more than three -fourths of the total retail trade is done by the organized sector. Huge retail ch ains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now replaced the individual small stores. Large retail formats, with high qualit y ambiance and courteous.
Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As Such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain.
Retailing is more than selling goods:
Retailing consists of the sale of goods or mer chandise, from a fixed location
such as a department store or kiosk, in small or individual lots for direct consumption by the purchaser. Retailing is a well recognized business function which compromises making available desired product in the desired qua ntit y at the desired time. This creates a time, place and form utilit y for the consumer. The success of retailing is highl y dependent on an efficient suppl y chain management. A well developed suppl y chain reduces wastages and transaction cost thereby reduc ing the cost of inventories to be maintained by the producers and the traders. A reduction in the cost of inventory management leads to a reduction in the final price to the consumer. Retailing has been identified as a thrust area for promotion of textiles , processed foods, agricultural and horticultural produce. Retail Sector can be divided into organized and unorganized sectors:
Unorganized retailing is characterized by a distorted real -estate market, poor infrastructure and ineffici ent upstream processes, lack of modern technology, inadequate funding and absence of skilled manpower. Therefore, there is a need to promote organized retailing.
Unorganized Retail: Unorganized retailing is characterized by a distorted real -estate market, poor infrastructure and inefficient upstream processes, lack of modern technology, inadequate funding and absence of skilled manpower. Therefore, there is a need to promote organized retailing.
Evaluation of Organized Retailing:
American mass retailing began in the late 1800s with Montgomery Ward marketing its products through general merchandise mail order catalogs, which was very effective at that time for reaching a largel y rural societ y. In the 1940s, the population began its movement to the suburbs as the econom y shifted from an agricultural base to an industrialized nation. The first shopping center was opened, which would eventuall y be a significant factor in the decline of downtown Retailing in the 1960s and 70s. JC Penney and Sears began their national mass retailing expansion, and the use of credit cards as Major retail chains began. The 1950s witnessed the reaffirmation of the traditional famil y. The first planned mall and franchised food restaurant opened. As people continued to flock to the suburbs, the downtown areas began to decline. Larger suburban malls were created and anchored by traditional downtown department store merchants. Freeways were expanded and the sales of private automobiles grew, giving the consumer a wider accessible area in which to shop. Discounters were born, Korvetta being one of the firsts. The 1960s witnessed the growth of enclosed shopping centers, with department stores anchors and specialt y retail chains. The baby boomers were teenagers at this point, leading to the growth of juniors-oriented stores and vendors. Women became targets not just as mothers or wives as they entered the workforce and consumers became more demanding in their expectation of qualit y and service. In the 1970s, promotional pricing started to pi ck up the department stores as off-price retailer emerged. The growth of retail space slowed, as sales increase came at the expense of competition, not of market growth. This competitive market led to the under performance of several retailers as gross mar gins
experienced downtown pressure from increased competition. Retailers in large upscale markets recognized the time shortage created by dual -career families and began to offer more services to assist in saving time. The 1980s witnessed the growth of off price retailing as a distinct, enduring retail format. Retailers began to drop low profit lines. Acquisitions and mergers were activel y utilized as growth strategies, private brands were redeveloped to enhance uniqueness and margins and offshore sourcing w as developed to compensate for margins Broadl y the organized retail sector can be divided into two segments, In -Store Retailers, who operate fixed point -of-sale locations, located and designed to attract a high volume of walk -in customers, and the non -store retailers, who reach out to the customers at their homes or offices. It was onl y in the year 2000 that the economists put a figure to it: Rs.400,000crore (1crore = 10 million) which is expected to develop to around Rs.800,000crore by the year 2005 – an annual increase of 20 per cent. Retailing in India is unorganized with poor suppl y chain management perspective. According to a recent survey by some of the retail consulting bodies, an overwhelming proportion of the Rs.400,000crore retail markets are
UNORGANISED. In fact, onl y a Rs. 20,000crore segment of the market is organized. As much as 96 per cent of the 5 million -plus outlets are smaller than 500 square feet area. This means that India per capita retailing space is about 2 square feet (compared to 16 square feet in the United States). India's per capita retailing space is thus the lowest in the world (source: KSA Technopak (I) Pvt Ltd, the India operation of the US -based Kurt Salmon Associates). Currentl y the retail landscape is filled with Supermarke t chains with over 1000 outlets all over the country to increase to around 5000 by the 2005. The success of a couple of hyper mart’s indicating the evolution of hypermarkets in the country prominent among them is Giant, Metro, Big Bazaar models. While the
average bill value at a supermarket is in the range of Rs.300 per bill, the average bill amount at a Hypermarket is in the range of Rs.750 -1000, indicating that the model is in tune with the global models where the average spend is increasing with the shop ping experience.
Impact of Organized Retail: Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing, however, has been slightl y different with a growth concentration in the South. T hough there were traditional famil y owned retail chains in South India such as Nilgiri’s as earl y as 1905, the retail revolution happened with the RPG group starting the Food world chain of food retail outlets in South India with focus on Chennai, Hyderabad and Bangalore markets, preliminaril y. The experiment has reaped rich dividends and the group is now foraying into other territories as well. Owing to the success of Food world model of RPG group, several new models such as Trinethra, Subhiksha, Margin Fr ee and others have made their foray into this sector albeit at regional levels. Today the food retail sector in India is about Rupees Ten Lakh Crores (USD 200 billions) of which the organized food retail segment is about 1 per cent and increasing at a pace of over 20% y-o-y. To be successful in food retailing in India essentiall y means to draw away shoppers from, the roadside hawkers and kirana stores to supermarkets. This transition can be achieved to some extent through pricing, so the success of a food retailer depends on how best he understands and squeezes his suppl y chain. The other major factor is that of convenience shopping which the supermarket has the edge over the traditional kirana stores. On an average a supermarket stocks up to 5000 SKU’s agai nst few hundreds stocked at an average kirana stores. In the organized retail industry, the gestation periods are long, institutional funding is difficult, and there is none or little Government support. But the
belief among top retailer chains in the cou ntry is that the industry will see large investments coming once the current ban on foreign direct investment is lifted. But that could be two -three years away. Food and grocery retailing is a tough business in India with margins being very low, and consum ers not dissatisfied with existing shops where they buy. For example, The next-door grocery shopkeeper is smart and delivers good customer service, though not value. As of now, while Chennai has about five organized food and grocery retail chains, other big cities such as Delhi, Bangalore, and Mumbai average onl y two-three such chains. Almost all food retail players have been region -specific as far as geographical presence is concerned in the country. To illustrate with examples, the RPG Group's Food Worl d, Nilgiris, Margin Free, Giant, Varkey's and Subhiksha, all of which are more or less spread in the Southern region; Sabka Bazaar has a presence onl y in and around Delhi; names such as Haiko and Radhakrishna Food land are Mumbai -centric; while Adani is Ah medabadcentric. Industry topography in India is such that spreading presence across cities is a tough call. As pointed out by many experts, organized food and grocery retailing chains going national requires significant investments. Retailing within this sector is not just about the front -end, but involves complex suppl y chain and logistics issues as well. The trend and mindset of the present retailer chains in India can be best understood by studying Food World as an example, which came in first in the food and grocery retailing sector. The chain has no plans to venture beyond the Southern region just yet. Current plans are to focus on the Southern markets and achieve saturation. The intention is that by 2005, they could look at the other regions. Subhiks ha, a Chennai based discount chain, too wants to be the principal store of purchase for at least 40 per cent of all consumers living within 500-750 meters of the store, that is, within walking distance. This makes the point very clear that the strategy amo ng most existing retail chains of
various formats is to completel y saturate the markets where they are already established players and then move on to virtuall y untouched areas where the challenge of sourcing resources and extending their suppl y chain mode l to best suit the size and expanse of the market would be a challenging task. It can be explained that the obstacles of looking at a pan -India model for grocery are several. Given the federal nature of the country, the weak infrastructure and the major v ariances in eating habits in different parts of the country, one will have to replicate the retail administration costs for at least each region and therefore the gestation period of the project becomes huge. However, if a model is in place where the upfro nt store revenues scale very rapidl y, then it is possible. Therefore, if one is to attempt a pan -Indian grocery foray, it will have to be in the hypermarket format with its attendant investment numbers and risk profile. If a close look is taken at the nat ure of the Indian Retail Markets, it can be seen that there is so much potential to extract from individual regions that players are in no tearing hurry to spread out. Based on a recent study by a renowned government institution in India, in the six major metros, Delhi has the highest per capita consumption of food and grocery, among supermarkets. Chennai, “the Mecca of retailing”, comes at fourth place. This shows the high potential the sector presents. Chennai has some five supermarket chains, and each of these is doing well for themselves. So there is enough scope to expand even in one single cit y in India. Sabka Bazaar, a supermarket chain restricted to Delhi alone, is now generating sales of about Rs.11 crore from its 19 stores which best illustrates t he potential of each individual cit y. This explains the reason for delay in intentions of retailers to spread far and wide.
Benefits of Retailing: Retailing is good for national economies where it has positive influence on influence on inflation and pro duct availabilit y. It also creates fortunes for its owners and is a tremendous source of employment. INDIA has been virtuall y the onl y developing country in the world that has been extremel y slow in adopting this organized pattern of retailing. Better qualit y products Employment opportunities Better social infrastructure Enhanced foreign exchange Benefit to tourism Better showcase for exports Better realization of taxes
Indian Retail Scenario:
Retailers in India have to experiment with formats maintaining scalabilit y in terms of segments, along with deepening penetration levels.
Traditionall y Indian Ret ail can be traced back from Weekly Markets, Melas, and Village Fairs in Small towns and villages to Kirana stores, PDS outlets, Khaki Bhandaar, co -operative stores in Urban cities. The wave of retail began with various textile manufactures like Bombay Dyei ng, Raymond’s, S Kumar’s, and Grasim foraying into selling the product through their outlets and competition among FMCG players driving the forces towards retailing. The evolution of retailing lead to an emergence of various formats like Shopping malls, Super-marts, Hyper -marts, Departmental Stores, Apparel Stores, etc. catering to majorit y all sectors of society providing the all -important 3Vs – Value, Variet y and Volume. India is the country having the most unorganized retail market. Traditionall y it is a Famil y’s livelihood, with their shop in the front and house at the back, while they run the Retail business. More than 99% retailers function in less than 500 square feet of shopping space. Global retail consultants KSA Technopak, have estimated that orga nized retailing in India is expected to touch Rs 35,000 crore in the year 2005 -06. The Indian retail sector is estimated at around Rs900,000 crore, of which the organized sector accounts for a Mere 2 per cent indicating a huge potential market opportunit y that is lying in the waiting for the consumer -savvy organized retailer .Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewellery, are slowl y becoming lifest yle products that are widel y accepted by the urban Indian consumer. Indian retailers need to advantage of this growth and aiming t o
grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face Fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate qualit y as well as value for money. Sustainable competitive advantage will be depended on translating core values combining products, image and reputation into a coherent retail bra nd strategy.
Growth of Organized Retail in Indian Cities:
Organized Share of retail sector is expected to increase to 8 -9 percent in 201011 from 6 percent in 2008.
The Retail sector contributes to around 36 percent of GDP in India and is largest employment generator. The sector is dominated by small -scattered unorganized regional players, large players contributing to meager 10 percent of the total pie. Organized retail is at its nascent phase wherein the large organized retail groups are h aving aggressive expansion plans to penetrate the Metros and Tier I cities and establish themselves amongst rural masses of Tier I and Tier II cities.
There lies a challenge for retailers to experiment with new value formats along with developing custom er loyalties. Since there will be demographic shift in population growth, urbanization and migration due to transition in urban household growth and income distribution. The total retail market in the top 67 cities in India in 2006 was Rs. 2.55 trillion, w hich is expected to increase to Rs. 3.91 trillion in 2011. American mass retailing began in the late 1800s with Montgomery Ward marketing its products through general merchandise mail order catalogs, which was very effective at that time for reaching a la rgel y rural societ y. In the 1940s, the population began its movement to the suburbs as the econom y shifted from an agricultural base to an industrialized nation. The first shopping center was opened, which would eventuall y be a significant factor in the decline of downtown Retailing in the 1960s and 70s. JC Penney and Sears began their national mass retailing expansion, and the use of credit cards as
Major retail chains began. The 1950s witnessed the reaffirmation of the traditional famil y. The first planned mall and franchised food restaurant opened. As people continued to flock to the suburbs, the downtown areas began to decline. Larger suburban malls were created and anchored by traditional downtown department store merchants. Freeways were expanded and the sales of private automobiles grew, giving the consumer a wider accessible area in which to shop. The 1960s witnessed the growth of enclosed shopping centers, with department stores anchors and specialt y retail chains. The baby boomers were teenagers a t this point, leading to the growth of juniors -oriented stores and vendors. Women became targets not just as mothers or wives as they entered the workforce and consumers became more demanding in their expectation of qualit y and service.
According to CR ISIL, around 87 percent of the retail opportunit y comes from top 25 cities compromising Metro Delhi, Mumbai, Calcutta, Mini Metros Hyderabad, Chennai, Bangalore, Mini Metros Ahmedabad and Pune, Tier I cities of Kanpur , Nagpur, Surat and Ludhiana, Tier II cit ies Coimbatore, Chandigarh, Lucknow, Kochi, Jaipur and Tier III cities Vadodara, Vizag, Indore, Vijaywada, Thiruvananthpuram, Bhopal, Nashik and Madurai.
Organized retail has been established in Metros and Tier 1 cities, other cities having negligible l evel of penetration.
MODERN RETAIL STRUCTURE:It includesMalls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida) etc Discount Stores like Brand Factory, Loot, M&B Factory, Subhiksha, Big Apple, and Reliance Fresh. Department Stores like Shoppers Stop, Big Shop, and Pantaloons. Hypermarkets/ Supermarkets like Big Bazaar, Vishal Mega Mart. Convenience Stores like Spencer’s Daily, Tru Mart, Choupal, More. Multi Brand Outlets like Globus.
A glimpse of the international retail47 global fortune companies & 25 of Asia's top 200 companies are retailers Dominated by developed countries US, EU & Japan constitute 80% of world retail sales. Biggest player in India is Pantaloon Retail India Limited.
PERCENTAGE OF ORGANIZED RETAIL:USA - 85% Taiwan - 81% Malaysia - 55% Thailand - 40% Brazil - 36% Indonesia - 30% Poland - 20% China - 20% India - 3% According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India was placed at 1st position in the year 2005. However within 2 years of time i.e 2007, it is being placed at 2nd position jointly with China and after Vietnam.
GROWTH OF RETAIL SECTOR
The following are the reasons for growth of retail sector in India- Increase in disposable income of consumers, Increase in consuming desire, Low share of organized retailing. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Accessories, Food, and even Jewellery, are slowly becoming lifestyle products. Retailers are taking benefit of this growth and accordingly are aiming to expand. Indian retail is expanding at a fast pace. India's retail industry, which is currently valued at nearly $350 billion, is expected to double in size by 2015. The Indian Retail Industry is gradually moving ahead towards becoming the next boom industry. Modern Large-Format retail, efficiently connects the producers and the consumers and is helpful to both in the long run. In India there is a huge wastage of fresh fruits and vegetables. In this scenario, the Large-Format Retail provides all important infrastructures to carry the farm produce to the consumers with lesser wastage. In this way the farmers get better returns and the consumer better quality and price. KEY TRENDS:The existing players like Big Bazaar, Shoppers' Stop, Piramyd, and Vishal Mega Mart are expanding to smaller towns and cities. Many other business houses are planning to enter the retail sector either on their own or through partnerships. New entrants like Bharti pvt ltd and Wal-Mart are going to enter the market soon. Even rural areas will provide a huge opportunity to be explored.
VISHAL RETAIL PVT. LTD. HISTORY
What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing around 183 showrooms in 110 cities / 24 states. India’s first hypermarket has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India. VRPL was incorporated on July 23, 2001 under the Companies Act, 1956 as Vishal Retail Private Limited. VRPL was converted to a public limited company on February 20, 2006. At the time of incorporation, the registered office of VRPL was situated at 4, R. N. Mukherjee Road, Kolkata 700 001. Subsequently VRPL’s registered office was shifted to 54/4C, Strand Road, Kolkata 700 006 on August 1, 2001 and on February 14 2004, VRPL’s registered office was shifted to Mouza Kuch Pukur, P.S. Bhangore, 24 Paragnas (South), West Bengal. On December 29, 2005, VRPL’s registered office was shifted to RZ-A-95 & 96, Road No. 4, Street No. 9, Mahipalpur Extension, New Delhi 110 037, which is the present registered office of the Company. The fresh certificate of incorporation consequent on change of name was granted to our Company on February 20, 2006 by the Registrar of Companies, West Bengal.
With a business purchase agreement dated November 23, 2001 executed between VRPL and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the name of M/s The Vishal Garments) and Mrs. Uma Agarwal (carrying on proprietorship business in the name of M/s Vishal Garments), VRPL acquired the business of “M/s The Vishal Garments” and “M/s Vishal Garments”, and the said businesses were transferred to VRPL as a going concern with effect from December 15, 2001.
With a business purchase agreement executed between VRPL and M/s Vishal Fashions Private Limited, they acquired the business of manufacturing of readymade garments as a going concern with effect from March 31, 2003. VRPL went into backward integration by acquiring a
manufacturing unit for readymade garments.
DETAILS OF DIRECTORS
Mr. Ram Chandra Agarwal, 43 years, is VRPL’s Chairman and Managing Director. He holds a bachelor’s degree in commerce from St. Xavier’s College, Kolkata. Mr. Agarwal has more than 20 years of experience in the retail industry and has been with VRPL since their inception in 1997. He started the business under the name of “Vishal Garment” with a small store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the development of the value retailing industry in India and is well known for his business acumen. Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of experience in the retail industry. She has been associated with accounts department of VRPL. Mr. Surendra Kumar Agarwal, 46 years, is an executive Director of VRPL. He holds a bachelor’s degree in commerce. Mr. Agarwal has more than 17 years of experience in the retail industry. He has been associated with store development and management at various locations of VRPL. Mr. Bharat Jain, 45 years, is an independent Director of VRPL. He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather garments and accessories and has more than 23 years of work experience. Mr. Jain joined VRPL Board on May 8, 2006. Mr. Rakesh Aggarwal, 44 years, is an independent Director of VRPL. He holds a master’s degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on October 31, 2006. Mr. Ram Chandra Aggarwal is the husband of Mrs. Uma Agarwal and brother of Mr. Surendra
Kumar Agarwal. None of our other Directors are related to each other.
VRPL PROMOTERS AND GROUP COMPANIES
The following individuals are the Promoters of the Company: a). Mr. Ram Chandra Agarwal; b). Mrs. Uma Agarwal; and c). Mr. Surendra Kumar Agarwal. The following companies are the Promoters of the Company: a). Unicon Marketing Private Limited; b). Ricon Commodities Private Limited; and c). Vishal Water World Private Limited. The company has during the year 2008, established its five new companies by the name of VRL Foods Ltd., VRL Movers Ltd., VRL Consumer Goods Ltd., VRL Fashions Ltd. & VRL Infrastructure Ltd., none of the companies have commenced business operations during the year. VRPL’s BUSINESS:VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels. Subsequently, with evolution of retail industry in India and change in consumer aspirations, VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell ready-made apparels and a wide range of household merchandise and other consumer goods
such as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home furnishing, beverages, drinks, gift and novelties. VRPL follow the concept of value retail in India. In other words, VRPL’s business approach is to sell quality goods at reasonable prices by either manufacturing themselves or directly procuring from manufacturers (primarily from small and medium size vendors and manufacturers). VRPL endeavor to facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire family. VRPL believe this concept has helped them grow to their current size within a short time frame of 8 years. In order to reduce costs and take advantage of economies of scale VRPL have embarked on backward integration of their products. VRPL’s apparel manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have focused on developing a cost and time efficient distribution and logistics network, which currently comprises seven distribution centers and a fleet of trucks for transportation. VRPL achieved total sales of Rs. 1005.31 cr for fiscal 2008, as opposed to a turnover of Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal 2006. During the same period VRPL’s profit after tax was Rs. 40.64 cr, Rs.25.07 cr and Rs. 12.39 cr, respectively.
AIRPLAZA RETAIL HOLDING PRIVATE LIMITED
Airplaza Retail Holdings Private Limited took over Vishal retail ltd. In Rs. 70 crores. A company of Sriram Group now own the whole business but they are still going with the same name and management.
REVIEW OF LITERATURE
CONSUMER ATTITUDES TOWARDS FOREIGN RETAILERS’ PRODUCTS Bircan Asuk Abstract:- Turkey has attracted foreign retailers for many years because of its high population, growing economy, growing market potential, young population and also, its high labour force. Although conditions are attractive, foreign retailers face some problems related to different demographic characteristics, different values, attitudes and different cultures of consumers in Turkey and also, in the other countries. One of the most important factors that affects consumers’ attitudes towards foreign retailers’ products and their willingness to purchase these brands is consumer ethnocentrism (According to ethnocentrism; people evaluate their race more superior than the other races). The aim of this research is generally to examine Turkish consumers’ atttitudes towards foreign retailers’ products. In this respect, consumer ethnocentrism is explored among Turkish consumers. Besides, it is explored how this consumer ethnocentrism affect product judgement of foreign products and willingness to buy these products. The effect of age and education on attitudes is also investigated. Data was collected through a questionnaire. And this questionnaire was applied to 50 people in October 2009
EVALUATION OF AND BEHAVIOR TOWARD THE VISUAL RETAIL ENVIRONMENT: FUNCTION OF CONSUMERS’ VISUAL AESTHETIC SENSITIVITY Sarah Eubanks Wilhoit ABSTRACT: - The primary goal of retail environments is to stimulate positive behavior from consumers viewing the fulfilled plan of the designer or architect. This study explores the influence of the consumer trait, visual aesthetic sensitivity, upon the visual aesthetic design features of the store environment and consumer behavior. Treatment of the visual aesthetic design features of the retail environment as an integrated, holistic arrangement demonstrate the dynamic interrelation of the environment and perception as explained by Gestalt theory. Data was collected through traditional survey techniques. Statistical analyses using exploratory factor analysis, ANCOVA, and MANCOVA reveal distinct differences between consumers with high versus low visual aesthetic sensitivity in store environment evaluations and consumer behavior.
CONSUMER ATTITUDES TOWARDS THE AMERICAN RETAIL SYSTEM Charles A. Lngene Abstract: - This paper develops a theoretical model of consumer purchase decisions in a competitive retail system. Emphasis is placed on the relationship between per household expenditures and consumers' surplus. It is shown that parametric changes can cause expenditures and surplus to move in opposite directions. Empirical evidence on factors which influence grocery and department store purchases is presented. Such evidence, in conjunction with the theoretical model, can offer insights into consumer attitudes towards the American retail system. A micro-level, behavioral analysis predicated upon this research is then proposed as a method of determining actual consumer attitudes.
UNDERSTANDING CONSUMER'S ATTITUDE TOWARDS RETAIL STORE IN STOCKOUT SITUATIONS AAbstract: The study showed that six of the independent variables considered, namely, shopping attitude of respondent, store loyalty (SL), perceived store prices, store distance, shopping frequency, and brand loyalty (in order of importance of impact) significantly influenced consumers' attitude towards retail store in out-of-stock.
CONSUMER SHOPPING BEHAVIOR AMONG MODERN RETAIL FORMATS Hotniar Siringoringo Abstract:- The given article shows that individual determinant such as shopping intension, attitude towards retail outlet, and shopping habit plays important role on consumer shopping decision. Attitude towards retail outlet and shopping habit influence shopping intension. This implies, retailers should concentrate on strategies in building consumers’ positive attitude towards retail, so that consumers visit their retail in order to make purchases regularly. However
it found that it is no different of this individual determinant among retail format. This imply, consumer visit all format in making convenience goods purchase.
STUDY OF RURAL CONSUMER BEHAVIOR TOWARDS RURAL RETAIL STORES Krishan Kumar Abstract:-In India for a long time a large chunk of retail outlets were grocery shop. This pattern had been changing in recent years, in urban and rural markets. Of late, India's largely rural population has also caught the eye of retailers looking for new areas of growth. A slew of supermarket chains, including those of the Tata and ITC, are set to storm the rural areas of the country as corporate realize the huge potential of the untapped market ITC launched the country's first rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to electronic appliances to automobiles, attempting to provide farmers a one-stop destination for all of their needs. Companies such as Godrej and DCM Shriram Consolidated are launching `onestop shops' for farmers and their communities. Godrej Agrovet, for instance, is planning to set up 1,000 Aadhar stores across rural India by 2010. DCM Shriram plans to set up 35 rural/semiurban utility marts over 2006-07. Positioned as a one-stop shop, the Hariyali Kisaan Bazaar Chain will cater to a variety of farmers' needs by providing access to retail banking, LPG outlets and even a motorcycle showroom. Marketers are trying to grab this untapped market but still the reach of those players is mere they should more focused and rural oriented. There are some points which they should undertaken
The retailer approach should be more professional like in urban The retailers should try for up selling and cross selling rather to focus on the bulk selling The promotion strategy should be local and easy to grab able for the target audience The quarries and questions should be addressed by retailer The awareness about product quality should be spread between customer so they can shift to these stores rather to traditional stores Stores should enhance their portfolio so that more and more customers can find their needs.
CONSUMER SHOPPING BEHAVIOR ENTERTAINMENT CENTERS.
Abstract:- The concept of 'entertainment' is hard to define in the context of a shopping center. It could be viewed in a very narrow sense as consisting of just fides, games, and shows, or in a broad sense as a combination of the entire shopping experience. The present study, however, focuses specifically on common area entertainment centers within malls, operationally defined as a concentrated, centralized, entertainment area of at least 30,000 square feet and containing a variety of entertainment opportunities, including various types of rides for children, carrousels, miniature golf courses, soft play structures, simulator rides, etc. Although malls have traditionally offered several different types of entertainment options, it is this category that has seen the most growth in recent years. Most previous academic research studies have treated such entertainment centers as just one additional characteristic of a shopping center which could be included in retail gravitational models to predict consumer patronage of shopping centers or the market potential of a particular location. Such gravitation models have traditionally included factors such as distance and travel time, size of a shopping area, characteristics of the shopping center, consumer characteristics, and the cost of shopping to consumers (Craig, Ghosh, & McLafferty, 1984). In terms of shopping center patronage, Bellenger et al. (1977) found that some consumers placed the greatest value on convenience and economic attributes including convenience to home, accessibility, and the presence of services such as banks and restaurants. Others, however emphasized recreational attributes including atmosphere, fashionability, variety of stores and merchandise. More recent studies have supported these results on the importance of recreational attributes including atmospherics (Donovan & Rossiter, 1982); pleasurable shopping experiences (Dawson, Bloch, & Ridway, 1990); and the social aspects of mall shopping (Feinberg, Sheffler, Meoli, & Rummel, 1989; Jarboe & McDaniel, 1987). However, as mentioned earlier, there has been very little academic research on mega-malls and the effects of entertainment centers in such malls on consumer behavior. Most of the research conducted on this relatively recent phenomenon has been done by either mall developers in specific malls (e.g., Stiller & Smith, 1992) or by private research agencies which provide a feebased information service (e.g., U.L.I. Publications). These studies have primarily focused upon defining the trading area of the mall, the consumer characteristics, and the extent of patronage at various stores and entertainment centers. Testimonials to the effectiveness of the entertainment centers seem to be based not so much on this research as on the gut instinct of developers and the success of most of the mega-malls. For example, John Denlinger, the vice president of operations for Time-Out Amusements Inc., an operator of entertainment centers, says that such entertainment centers "are helping attract people from farther away, encouraging them to bring the whole family to the mall, and getting them to shop more once they are there". James Ginsberg, vice-president of Recreational Concepts Inc., also an operator of such entertainment centers has similar views, "if malls get people into their centers, they will stay longer. This is
especially true in the case of people coming from longer distances, who to justify the time spent getting there, are more likely to spend more money because they are there" (Bivins 1989, p.23). None of these statements, however, are supported by any published research findings. The present study seeks to provide this support by investigating the effects of the entertainment centers on the shopping behavior of consumers. In particular, the characteristics and shopping behavior of consumers who visit the entertainment centers is investigated and compared to the characteristics and shopping behavior of consumers who do not. Factors investigated include the distance traveled to reach the mall, demographic characteristics and group composition, the amount of time and money spent at the mall stores, the department stores, and the food court
The present study was undertaken “CUSTOMERS PERCEPTION TOWARD VISHAL MEGA MART”. This chapter gives as research design, data collection method, sampling techniques, fieldwork carried out, limitations inherent in the project and finally coverage of research work
Primary data:- primary data has been collected through the help of questionnaires by using the technique of JUDGEMENTAL SAMPLING. Secondary data: - secondary data has been collected with the help of various websites. Sample size: - 60
ANALYSIS AND INTERPRETATION
WHAT IS YOUR OCCUPATION? (a) (b) (c) (d) Businessman (firm/ company) Govt. employee Self employed housewife (e) Any other, if yes, please specify_________________________________________
The above shown graph shows that housewives used to visit Vishal Mega mart, followed by self employed people and others
INCOME LEVEL (monthly) (a) (b) (c) (d) 0000-5000 5000-20000 20000-40000 40000+
The above graph shows that the people with the income between Rs 5000-20000 used to visit Vishal Mega Mart followed by the people with the income of Rs 0-5000 and Rs 20000—40000.
How frequently do you visit VISHAL MEGA MART? (a) (b) (c) (d) Daily Weekly Monthly Sometimes
the above given graph shows that maximum people used to visit VISHAL MEGA MART ‘sometimes’ followed by monthly and weekly basis.
Pick one of the following retail stores, which you like to visit the most:VISHAL MEGA MART BIG BAZAR WALLMART EASYDAY RELIANCE SUPER
In the above graph it has been shown that that most of people like to visit other stores as compare to Vishal Mega Mart.
What is your Main purpose of visiting VISHAL MEGA MART? (1 for strongly ‘agree’, 2 for ‘agree’, 3 for ‘neither agree nor disagree’, 4 for ‘disagree’) (a) Leisure time activity (b) Purchase of household items (c) Purchase of other products 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5
FACTOR ANALYSIS OF THE FOLLOWING QUESTIONS:-
How do you rate VISHAL MEGA MART on the following parameters? PARAMETERS Quality of product Services Environment Price of the product Product range Discount and promotional schemes VERY GOOD GOOD AVERAGE POOR
Communalities Initial quality of products Services environment price of the products product range discount and promotional schemes leisure time activity purchase of household items purchase of other items 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .366 .681 .660 .615 .476 .570 .517 .513 .407
Extraction Method: Principal Component Analysis.
Total Variance Explained Compo nent 1 2 3 4 5 6 7 8 9 Total 2.022 1.521 1.262 .949 .858 .760 .642 .599 .386 Initial Eigenvalues % of Variance 22.463 16.901 14.024 10.540 9.538 8.449 7.134 6.661 4.290 Cumulative % 22.463 39.364 53.388 63.929 73.467 81.916 89.050 95.710 100.000 Extraction Sums of Squared Loadings Total 2.022 1.521 1.262 % of Variance 22.463 16.901 14.024 Cumulative % 22.463 39.364 53.388
Extraction Method: Principal Component Analysis.
Component 1 quality of products Services environment price of the products product range discount and promotional schemes leisure time activity purchase of household items purchase of other items -.426 -.385 -.302 .507 .289 .495 .624 .516 .600 2 .365 .730 -.437 -.597 .292 .219 .233 .275 .211 3 .226 .003 .615 .051 .555 -.527 .270 .414 -.040
Extraction Method: Principal Component Analysis. a. 3 components extracted.
Rotated Component Matrix
Component 1 quality of products Services environment price of the products product range discount and promotional schemes leisure time activity purchase of household items purchase of other items .558 .818 -.142 -.772 .121 -.139 -.137 -.031 -.166 2 .004 .033 .018 .135 .659 .080 .678 .714 .456 3 -.234 .107 -.800 -.034 -.164 .738 .196 .049 .413
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations.
INTERPRETATION:Out of the total 9 variables, 3 factors have come out after the factor analysis 53.38% of the respondents said that three factors are most important for them. The standard Eigen value against which the factors are measured is .7. Thus, the three factors satisfying this condition are Services Discount and promotional schemes Purchase of household items These three have loading value of .818, .738 and .714 respectively. The remaining data that is around 47% is lost and is called sampling error.
Findings:(1) The study finds that service plays a very important role in the retail sector (2) People specially housewives used to purchase household items in retail outlets like Vishal Mega Mart.
(3) Discounts and promotional schemes plays a very important role in attracting the crowed to the malls. (4) Vishal Mega Mart losing its identity in the market because of poor range of products and due to the arrival of the various superior competitors.
Complaints: 1. Low variety of product available and customization of products is not there.
2. Air conditioners are not properly working.
3. Prices are not mentioned at all places and at all products.
4. Prices are not competitive as they are assumed to be higher when consumers are visiting other retail outlets.
5. Grocery items are not sufficient and they are not at all available at many stores.
6. Clothing items of women are priced unreasonably
7. Lack of space in the store while shopping and moving within a store.
1. Vishal mega Mart should concentrate more on services to the customers.
2. Vishal Mega Mart should provide more promotional and discount schemes on various occasions
3. Vishal Mega Mart should have to increase the range of household items
4. Customization of clothing should be given an important consideration.
5. Proper packaging and provide contrast labeling in displays of product.
6. Should apply electronic supply chain management for better inventory management.
7. Proper power back up as air conditioners are not working to their full capacity at many stores.
8. Proper placements of Gondola in the stores as space between them are very less.
9. Proper display in the gondola and top most rack of the gondola should be used for storing of inventory rather than display of product.
10. Should provide more festival schemes and at proper time.
11. Should use psychological pricing-more discounts by increasing the price
12. Proper display of cutlery items
13. Clothes should be in sync with fashion.
14.References:1) vishalmegamart.net 2) proquest.com 3) http://www.delhibusinessreview.org/vn1/vxn1afull.pdf 4) http://www.springerlink.com/content/q6270518386213w1/ 5) http://www.skylinecollege.com/blog/dissertation/study-of-rural-consumer-behaviortowards-rural-retail-stores 6) http://www.allbusiness.com/marketing/market-research/632049-1.html 7) http://www.emeraldinsight.com/journals.htm?articleid=1736707&show=html&
Topic: - Customers Perception towards VISHAL MEGA MART
NAME: _______________________________________________________________________________ GENDER: male/female AGE ________
ADDRESS: _____________________________________________________________________________________ _____________________________________________________________________________________ (1)ARE YOU MARRIED? (Yes/no) (If No then move to question no. 3)
(2) WHAT IS YOUR FAMILY SIZE (no. of members)? (a) 0-4 (b) 4-6 (c) 6+
(3) WHAT IS YOUR OCCUPATION? (f) (g) (h) (i) (j) Business (firm/ company) Govt. employee Self employed housewife Any other, if yes, please specify_____________________________________________________
(4) INCOME LEVEL (monthly) (e) (f) (g) (h) 0000-5000 5000-20000 20000-40000 40000+
(5) Have you ever visited VISHAL MEGA MART? (a) Yes (b) No (if NO, refer to question no. 10)
(6) How frequently do you visit VISHAL MEGA MART? (e) (f) (g) (h) Daily Weekly Monthly Sometimes
(7) What is your Main purpose of visiting VISHAL MEGA MART? (1 for strongly ‘agree’, 2 for ‘agree’, 3 for ‘neither agree nor disagree’, 4 for ‘disagree’) (d) Leisure time activity (e) Purchase of household items (f) Purchase of other products 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5
(8) How do you rate VISHAL MEGA MART on the following parameters? PARAMETERS Quality of product Services Environment Price of the product Product range Discount and promotional schemes VERY GOOD GOOD AVERAGE POOR
(9) Pick one of the following retail stores, which you like to visit the most:VISHAL MEGA MART BIG BAZAR WALLMART EASYDAY RELIANCE SUPER
(10) What are the reasons due to which you never visited VISHAL MEGA MART? (a) Poor quality
(b) (c) (d) (e)
Poor service Lack of knowledge High pricing of products Any other__________________________________________________________________________ ______________________________________________________________________________
(11) What kind of improvement do you think is required in VISHAL MEGA MART? _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________
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