AN IMPERICAL STUDY ON CONSUMER PERCIPTION

OF VISHAL MEGA MART

A Dissertation Project Report

Submitted in partial fulfillment of
The requirement for the award of
MASTER IN BUSINESS ADMISTRATION
Under NIST Business School, Berhampur, ODISHA

Submitted By
Subrat Ranjan Panda
Regd. No.: 1106202023
2012

UNDER THE SUPERVISION OF

Internal guide – Mrs. Sanjukta Mahapatro
External guide – Mr. Jotirmaya Sahoo, FMCG Manager of
Vishal Mega Mart

NIST BUSINESS SCHOOL

Palur Hill, Berhampur – 761008, Odisha
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COMPANY CERTIFICATE

COLLEGE CERTIFICATE
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DECLARATION

I Mr. Subrat Ranjan Panda bearing Roll. No. 201180003 hereby declare
that the project report entitled “A Customer Satisfaction survey : In Vishal Mega
Mart” at Vishal Mega Mart, Berhampur is an original work done by me under
the guidance of Mr. Jotirmaya Sahoo, FMCG Manager of Vishal Mega Mart,
Berhampur for partial fulfilment of the degree of the Master in Business
Administration under BPUT, National Institute of Science & Technology,
Berhampur.

Mr. Subrat Ranjan Panda

MBA (2011- 2013)

Roll. No.201180003

NIST, Berhampur.
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ACKNOWLEDGEMENT

I express my profound gratitude to all those who have made it possible for me
to accomplish this project. Firstly I thank to Vishal Mega Mart, Berhampur
for giving me this opportunity to undergo a project study program in their
esteemed organization.

I am especially thankful to Mr. Sudhansu Sekhar Sandha, Stores Manager

and Mr. B. Santosh, Asst. Store Manager and Mr. Jotirmaya Sahoo, FMCG
Manager for their co-operation and valuable guidance and also to the staff of
Vishal Mega Mart, Berhampur.

I wish to express my deep sense of gratitude to my internal project guide, Mrs.

Sanjukta Mahapatro, management faculty, NIST for her valuable guidance
and useful suggestions, which helped me in completing the project work. I
would also like to thank all those who have directly or indirectly contributed in
marketing this project a success.

I also would like to thank Dr. Ratnakar Mishra, project coordinator MBA,
NIST BUSINESS SCHOOL for being supportive and for being a helping hand.

I take immense pleasure in thanking Mr. Shom Prasad Das, Course

Coordinator, MBA for having permitted me to carry out this project work.

Finally, yet importantly, I would like to express my heartfelt thanks to Prof.

Sangram Mudali, director NIST.
Mr. Subrat Ranjan Panda

MBA (2011 - 2013)

Roll No. 201180003

NIST, Berhampur
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TABLE OF CONTENT

0.1 COMPANY CERTIFICATE

0.2 COLLEGE CERTIFICATE

0.3 DECLERATION

0.4 ACKNOWLEDGEMENT

CHAPTER – 1 PageNo.

World retailing---------------------------------------------------------------------------9

General Overview of India RETAIL Industry-------------------------------------10

India’s Organized Retail Industry-----------------------------------------------------11

Benefit to the Government-------------------------------------------------------------11

Retailing in India -----------------------------------------------------------------------11

Retail Formats---------------------------------------------------------------------------12

Major Retail Players--------------------------------------------------------------------15

SWOT analysis--------------------------------------------------------------------------17

Innovation & change in Retailing-----------------------------------------------------18

Challenging Ahead----------------------------------------------------------------------18

Need of the study------------------------------------------------------------------------19

Purpose of the Study--------------------------------------------------------------------19

Scope of the Study----------------------------------------------------------------------19

Objective of The Study----------------------------------------------------------------20

Area of the study------------------------------------------------------------------------20

Limitation--------------------------------------------------------------------------------20

CHAPTER – 2

Company Profile----------------------------------------------------------------------------23
Data of Register Office--------------------------------------------------------------------23
Identification of particular details-------------------------------------------------------------24
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History of Vishal Mega Mart-----------------------------------------------------------25

Major Events-------------------------------------------------------------------------------26

Our stores and distribution centre-----------------------------------------------------26

TPG, Shriram Group acquire Vishal Retail----------------------------------------29

Overview of operation--------------------------------------------------------------------30

Corporate Governance-------------------------------------------------------------------31

Committees of the board----------------------------------------------------------------31

Marketing Strategy of Vishal--------------------------------------------------------32

CHAPTER – 3

Introduction------------------------------------------------------------------------------34

Perception process or model----------------------------------------------------------34

Perception process----------------------------------------------------------------------35

 Process of receiving stimuli-------------------------------------------------35

 Process of selecting stimuli--------------------------------------------------36

Factors influencing perception-------------------------------------------------------37

Top 5 reason of why customer do not buy from us------------------------------38

Data Analysis:-

Question No. 1----------------------------------------------------------------------43

Question No. 2----------------------------------------------------------------------44

Question No. 3-----------------------------------------------------------------------45

Question No. 4----------------------------------------------------------------------46

Question No. 5----------------------------------------------------------------------47

Question No. 6----------------------------------------------------------------------48

Question No. 7----------------------------------------------------------------------49

Question No. 8----------------------------------------------------------------------50

Question No. 9----------------------------------------------------------------------51

Question No. 10---------------------------------------------------------------------52

Question No. 11--------------------------------------------------------------------53

Question No. 12--------------------------------------------------------------------54

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Question No. 13--------------------------------------------------------------------55

Question No. 14--------------------------------------------------------------------56

Question No. 15--------------------------------------------------------------------57

Question No. 16--------------------------------------------------------------------58

Question No. 17--------------------------------------------------------------------59

CHAPTER – 4

Findings and Interpretation-------------------------------------------------------62

CHAPTER – 5

Conclusion ----------------------------------------------------------------------------65

Suggestions----------------------------------------------------------------------------65

Complaint-----------------------------------------------------------------------------65

Recommendation--------------------------------------------------------------------66
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INTRODUCTION :-

1.1 General over view of Indian RETAIL industry

1.1.1 World Retailing

 World’s largest private industry

 US $ 9 trillion sales annually
 47 fortune companies and 25 top Asia's companies are retailers
Organized Retailing in All over the world

Figure 1.1 Comparative Penetration of Organized Details

The retail industry is derived into organized and unorganized sectors. Organized retailing
(Vishal Mega Mart) refers to trading activities undertaken by licensed retailing, that is, those
who are registered for sale tax, income tax, etc. This includes the corporate-backed
hypermarkets and retail chains, and also the privately owned large retail businesses. The
unorganized retailing refers to trading activities done by local retailers which are not
registered like kirana shops, fruits and vegetable vendors etc.

The term “Retailing” refers to any activity that involves a scale to an individual customer. In
India, the unorganized retailing sector comprises of 96.5% while that of organized sector just
3.5% that is mainly in major metropolitan and urban areas. Indian retailing traditionally
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dominated by a small family run “Kirana” store. Retailing in India is second largest untapped
market after China. Professional management and strong customer focus characterize
organized retailing. Despite the huge size of the industry, only 8% of the country’s population
is engaged in retailing while that in united state of America it is 20%. The positive factor such
as increased purchasing power, raise in number of double income families and demanding
customers, due to change in life style and paucity of time , customers are increasingly
looking for convenience. To woo the customers to the store retailers are providing a wide
product range, quality and value for money, apart from creating a memorable shopping
experience.

India’s vast middle class and its almost untapped retail industry are key attractions for
global retail giant wanting to enter newer markets. Driven by changing lifestyles, strong
income growth and favourable demographic patterns, Indian retail is expected to grow
25% annually.

Morden retail in India could be worth US$ 175-200 billion by 2016. With the economic
booming, competition in the marketplace is fierce. According to “Retail in India Getting
organized to Drive Growth”, a report AT Kearner and the confederation of India Industry,
retail is one of India’s fastest growing industries with a 5% compounded annual growth rate
expected revenues of US$ 320 billion in 2007, Raising incomes, consumerism in urban areas
and an upswing in rural consumption will fuel this growth to around 7-8 %.

1.1.2. India’s Organized Retail Industry

Indian Retail sector consist of small-owned stores, located in residential areas, with a
shop floor of less than 500 square feet. At present the organized sector accounts for only 2
to 4% of the total market although this is expected to rise by 20 to 25% YOY basis.

Retail growth in the coming five year is expected to be stronger than GDP growth, driven
by changing lifestyles and by strong incoming growth, which in turn will be supported by
favourable demographic patterns. The structure of retailing also develop rapidly.
Shopping malls are becoming increasingly common in large cities, and announced
development plans project at least 150 new shopping malls by 2008. The next cycle of
change in Indian consumer markets will be the arrival of foreign players in consumer
retailing.
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1.1.2.2 Why India is #1 Retail Growth Market?

 MARKET GROWTH: 8-10 % annual growth with 30% + growth for modern format
retail.
 STRONG ECONOMY: Fourth largest economy on Purchasing Parity Basis.
 MARKET OPPORTUNITIES: Growing consumer aspirations together with very
low penetration of modern format retailing.
 INFRASTRUCTURE: Large amount of quality retail space being added.

Benefits to the Government

Greater Consumer
Greater Per
Spending due to
Capita Income
economic boom
GDP Growth

Employ Benefits Greater

ment to Govt. Exports
Increasing Greater
Tax Paying Sourcing
Increased Tax
Population From India
Revenues

Reduced Tax
Evasion

Figure 1.3 Benefits to the Government

1.1.3Retailing in India:-
Total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by
2015, according to the Business Monitor International (BMI) India Retail Report for the
second-quarter of 2011. Strong underlying economic growth, population expansion, the
increasing wealth of individuals and the rapid construction of organized retail infrastructure
are key factors behind the forecast growth. With the expanding middle and upper class
consumer base, there will also be opportunities in India's tier II and III cities.A retailer is a
business that sells products and services to for their personal or family use. A retailer is the
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Final business in the distribution channel that links manufacturer with consumer.

Manufacturing

Wholesaler

Retailer

Consumer

Figure 1.2: Retail position with the distribution channel.

India has the largest number of retail outlets in the world 12 million of which no less then 5
million sell food and related products. A part from a few large players in the market, such as
Wholesaler kishore Biyani Big bazaar, Aditya Birla More Megastore and Mukesh Ambani
Reliance Fresh, the sector is largely fragmented.

Retail Formats

(a) Hypermarkets: A hypermarket is a superstore which combines a Supermarket and a

department store. The result is a very large retail Facility which carries an enormous
range of products under one roof, Including full lines of groceries and general
merchandise. In theory, Hypermarkets allow customers to satisfy all their routine
weekly shopping needs in one trip.

Space occupied: 50000Sq. Ft. and above.

Example: Pantaloon retail’s Big Bazaar, RPG’S spencerrs (Giant).

(b) Supermarkets: A supermarket, also called a grocery store is a self-service Store

offering a wide variety of food and household Merchandise.

Space occupied: 5000sq. Ft. or more.

Example: Nilgiris, Apna Bazar, Trinethra
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(c) Department Stores: A department store is a retail establishment Which specializes in

satisfying a wide range of the consumer's personal and residential durable goods
product needs; and at the same time.
 Offering the consumer a choice multiple merchandise lines, at variable price
points, in all product categories.
 Department stores usually sell products including apparel, furniture,
appliances, electronics, and additionally select other lines of products such as
paint, hardware, toiletries, cosmetics, photographic equipment, and jewelry.

Space occupied: Around 10000 sq.ft. to 30000 sq.ft.

Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside, Vishal Retail Pvt. Ltd.

(d) Shopping malls: A shopping mall or shopping centre is a building Or set of buildings
which contain retail units, with interconnecting walkways enabling visitors to easily
walk from unit to unit.
(e) SPECIALITY STORE: It consist of a narrow product line with deep assortment.

Merchandise: Depends on the stores.

Example: Bata store’s only deals with footwear, RPG’s Music World.

(f) KIRANA STORE: The smallest retail formats which are the highst in number (15
million approx.) in India.
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Table 1.1 Present Players and Their Retail Formats

Figure 1.2 Category Wise distribution of Indian Retailing

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Table 1.2 India: #1 Emerging Retail Growth Market

Top 10 Major players in Indian organized retail:

1. Pantaloon Retail:

It is headquartered in Mumbai with 450 stores across the country employing more than
18,000 people. It can boast of launching the first hypermarket Big Bazaar in India in 2001.
An all-India retail space of 5 million sq. ft. which is expected to reach 30 mn by 2010. It is
not only the largest retailer in India with a turnover of over Rs. 20 billion but is present across
most retail segments - Food & grocery (Big bazaar, Food bazaar), Home solutions
(Hometown, furniture bazaar, collection-i), consumer electronics (e-zone), shoes (shoe
factory), Books: music & gifts (Depot), Health & Beauty care services (Star, Sitara and
Health village in the pipeline), e-tailing (Futurbazaar.com), entertainment (Bowling co.)

One of their recent innovations include e-commerce’ hybrid format of ’small’ shops , the area
for these stores will be 150 sq. ft. fitted with 40 digital screens. Customers will be encouraged
to browse through the entire range of products on digital screen. They will be able to place
the order, the delivery of which will be arranged by the shop to their homes within a few
hours

2. K Raheja Group

They forayed into retail with Shopper’s Stop, India’s first departmental store in 2001. It is the
only retailer from India to become a member of the prestigious Intercontinental Group of
Departmental Stores (IGDS). They have signed a 50:50 joint venture with the Nuance Group
for Airport Retailing. Shoppers Stop has 7, 52, 00 sq ft of retail space with a turnover of Rs
6.75 billion.

The first Hypercity opened in Mumbai in 2006 with an area of 1, 20,000 sq. ft. clocking gross
sales of Rs. 1 bn in its first year.

Crossword brand of book stores, Homes stop a store for home solutions, Mothercare a
concept stocking merchandise related to childcare are also owned by them. Recently,
Raheja’s have signed an MoU with the Home Retail Group of UK to enter into a franchise
arrangement for the Argos formats of catalogue & internet retailing.
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The group has announced plans to establish a network of 55 hypermarkets across India with
sales expected to cross the US$100 million mark by 2010.

3. Tata group:

Established in 1998, Trent - one of the subsidiaries of Tata Group - operates Westside, a
lifestyle retail chain and Star India Bazaar - a hypermarket with a large assortment of
products at the lowest prices. In 2005, it acquired Landmark, India's largest book and music
retailer. Trent has more than 4 lakh sq. ft. space across the country. Westside registered a
turnover of Rs 3.58 mn in 2006.

Tata’s has also formed a subsidiary named Infiniti retail which consists of Croma, a consumer
electronics chain. It is a 15000-17000 sq. ft. format with 8 stores as of September 2007.

Another subsidiary, Titan Industries, owns brands like “Titan”, the watch of India has 200
exclusive outlets the country and Tanishq, the jewellery brand, has 87 exclusive outlets. Their
combined turnover is Rs 6.55 billion.

Trent plans to open 27 more stores across its retail formats adding 1.5 mn sq ft of space in the
next 12 DLF malls.

4. RPG group:

One of the first entrants into organized food & grocery retail with Foodworld stores in 1996
and then formed an alliance with Dairy farm International and launched health & glow
(pharmacy & beauty care) outlets. Now the alliance has dissolved and RPG has Spencer’s
Hyper, Super, Daily and Express formats and Music World stores across the country.

RPG has 6 lakh sq. ft. of retail space and has registered a turnover of Rs 4.5 billion in 2006.

It is planning to venture into books retail, with the launch of its own bookstores “Books and
Beyond” by the end of 2007. An IPO is also in the offering, with expansion to 450+
MusicWorld, 50+ Spencer's hyper outlets covering 4 million sq. ft. by 2010.

5. Landmark group:

were launched in 1998 in India. Lifestyle is spread across six cities, covering 4.6 lakh sq. ft.
with a turnover of Rs 3.5 billion in 2005. A new division named Lifestyle International has
emerged for their international brands business comprising Bossino, Kappa and Springfield in
their portfolio.

Their retail mix includes Home solutions (Home centre), fashion (lifestyle, landmark
International), value retailing (max retail), hypermarkets & supermarkets (Max), kids
entertainment (Funcity).

They plan to invest Rs. 300 crores in the next two years to expand on Max chain, and Rs 100
crores on Citymax 3 star hotel chain. They have already instituted a separate company
christened Citymax Hotels (India).

6. Piramal Group

In September 1999, Piramal Enterprises announced their arrival into retail with the launch of
three retail concepts: India's first true shopping mall of international standards, called
Crossroads; a lifestyle department store named Piramyd Megastore; and a family
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entertainment centre known as Jammin. Piramyd Megastore and Jammin were anchor tenants
for Crossroads (recently sold to Pantaloon for Rs 4 billion). In 2001, the group entered the
business of food & grocery retail with the launch of TruMart supermarkets in Pune.

They have around 18 TruMart stores covering 1.90 lakh sq. ft. registering a turnover of Rs
37.6 mn in 2005. Piraymd Megatsore’s contributes more than 70 % to their retail mix with a
turnover of Rs 112.8 mn. They plan to open 150 stores covering 75 mn sq ft of retail space in
the next 5 years.

7. Subhiksha

Subhiksha is a Chennai-based, decade old, no frills, food, grocery, pharma and telecom,
discount retail chain. ICICI Venture Capital holds 24% in the equity capital of Subhiksha. It
has more than 500 stores across the country covering a retail space of more than 1 million sq
ft with a registered turnover of Rs 3.34 bn in 2006. It has a planned investment of Rs.300
crores to ramp up its operations to 1200 stores by 2008.

New but potential BIG players

8. Bharti-Walmart

Their plans include US$ 7 bn investment in creating retail network in the country including
100 hypermarkets and several hundred small stores. They have signed a 50:50 percent joint
venture agreement with Walmart. Wal-Mart will do the cash & carry while Bharti will do the
front-end.

9. Reliance

India’s most ambitious retail plans are by reliance, with investments to the tune of Rs. 30,000
cr ($ 6.67 bn) to set up multiple formats with expected sales of Rs 90,000 crores ($20 bn) by
2009-10.

There are already more than 300 Reliance Fresh stores and the first Reliance Mart Hypermart
has opened in Ahmedabad. The next ones are slated to open at Jamnagar, followed by marts
in Delhi / NCR, Hyderabad, Vijaywada, Pune and Ludhiana.

10. AV Birla Group

They have a strong presence in apparel retailing through Madura garments which is
subsidiary of Aditya Birla Nuvo Ltd. They own brands like Louis Phillipe, Van Heusen, Allen
Solly, Peter England, Trouser town.

In other segments of retail, AV Birla Group has announced investment plans of Rs 8000 -
9000 crores in the first 3 years till 2010.

The acquisition of Trinethra (food & grocery) chain in the south has moved their tally to 400
stores in the country. Their “More” range of 15 supermarkets are slated to open at Nashik,
Pune and other tier II cities in Western India in 2007.
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1.1.4 SWOT Analysis

STRENGTH:
Retailing is a "Technology-intensive" industry. It is technology that will help the organized
retailers to score over the unorganized retailers. Organized retailers today work closely with
their vendors to predict consumer demand, shorten lead times, reduce inventory cost.

WEAKNESS :
 Less Conversion level: Despite high footfalls, the conversion ratio has been very low
in the retail outlets in a mall as compared to the standalone counter parts.
 Customer Loyalty: Retail chains are yet to settle down with the proper merchandise
mix for the mall outlets

OPPORTUNITY:

Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the
rate of 25-30% p.a. and reach INR 1,00,000 Chore by 2010.

THREAT:
 If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise.
 Shopping Culture: Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends and largely confined to
window-shopping.

1.1.5 Innovation and Change in Retailing

 Unorganized retailing to organized retailing

 Small size shops to big sized stores
 Limited merchandise to wide assortment and varieties
 Urban to rural entry
 One country stores to international operations in other Countries.
 Greenfield start to expansion via acquisition and mergers
 No or limited technology to usage of wide technology
 From Pop and Mom stores to stores for everyone
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 Limited time shops to late night stores

1.1.6 Challenges Ahead

 Non-Financial Risks
 Souring Real Estate Cost
 Rising Distribution Cost
 Skilled Retail Personnel
 Supply Chain Management
 Technology
 Loss Due to Theft
 Governmental Restrictions

1.2 Need for the Study

 In those days, department store like Vishal mega mart is one of the best opportunities
for studying perception of customer in Berhampur town. It is more wide and
competitive market for all variety.
 To determine the customer perception about this department store.
 Know about the different choice of customers.

1.3 Purpose of the Study

 To know about the retail industry.

 To know the customer’s perceived value about the Vishal Mega mart.
 To know about the product/service specification of VMM.
 To know about the promotional strategy of VMM.
 To get overall knowledge about the available product of VMM.

1.4 Scope of Study

 The scope of my study restricts itself to analyze the business development strategy of
Vishal mega mart Berhampur.

 To inform the development strategy about VMM.

 To create positive consumer perception towards the products of the company.
 To know the marketing and other activities related to the products available at this
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store.

Objectives of the Study

 To find out the comparative popularity of the various sections of VMM.

 To find out the impact of VMM on the shopping behaviour of customers in
Berhampur City.
 To have knowledge on how to persuade a prospect.
 To have a clear understanding about the comparative pattern of retail industry which I
have chosen (Vishal).
 To help the customer in erasing his doubts and fears and motivating him to buy the
product by proving him sufficient knowledge.

1.6 Area of the Study

My area of study is “An Empirical Study On Customer Perception of VISHAL MEGA

MART And Its Impact On Shopping Behaviour in Berhampur Town”. My study comprises of
to find out the level of perception about product & service provided by this department store.
And also to understand the different strategies adopted by the company for their products.

1.7 Limitation

WHILE studying I encounter with some problems like some people were not willing to
respond and few have in hurry. Hence the active participation was lacking. Due to which I
faced some difficulties in collecting information.
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VISHAL MEGA MARKET

TYPE DEPARTMENTAL STORE
FOUNDED 1986(KOLKATA)
HEAD QUARTERS DELHI
INDUSTRY MANUFACTURING & RETAIL
ANNUAL TURN OVER
PRODUCTS APPRALS, FMCG, TOYS & GAMES, HOUSE HOLDS,
ELECTRONICS etc.
PROMOTERS RAM CHANDRA AGRAWAL
PARENT VISHAL RETAIL Ltd.
PUNCH LINE ‘VALUE OF MONEY’
RETAIL SPACE MORE THEN 1.6mn S.F.
ADVANTAGE FIRST MOVER TO TIRE II &TIRE III CITY

1.8 Company Profile

VISHAL MEGAMART is a retail house in India. As of April 30, 2007, it operates 50 retail
stores, including two stores which are operated by their franchisees. These 50 stores are
spread over about 1,282,000square feet and are located in 18 states across India. In its efforts
to strengthen their supply chain, it has set up seven regional distributions centers and an
apparel manufacturing plant.

It started as a retailer of ready-made apparels in Kolkata in 2001. At the time of

incorporation, the registered office of their Company was situated at 4, R. N. Mukherjee
Road, Kolkata 700 001. In 2003, it 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, it diversified their portfolio of offerings
to include other retail goods. Currently, it sell ready-made apparels and a wide range of
household merchandise and other consumer goods such as foot tar, toys, watches, toiletries,
grocery items, sports items, crockery, gift and novelties.
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1.8.1 Data of Register Office

August1, 2001 from 4, R. N. Mukherjee Road, Kolkata to 54/4C, Strand Road, Kolkata.
February 14, 2004 from 54/4C, Strand Road, Kolkata to Mouza Kuch Pukur, P.S. Bhangore,
24 Paragnas (South),W. Bengal. December 29, 2005 From Mouza Kuch Pukur, P.S. Bhang
ore, 24 Paragnas (South), Bengal to RZ-A- 95 & 96, Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi.

1.8.2 Our Promoters and Group Companies

Our Promoters

The following individuals are the Promoters of our Company:

 Mr. Ram Chandra Agarwal;

 Mrs. Uma Agarwal; and
 Mr. Surendra Kumar Agarwal.

The following companies are the Promoters of our Company:

 Unicon Marketing Private Limited;

 Ricon Commodities Private Limited; and
 Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:

Committee of the Board

VRPL have constituted the following committees of their Board of Directors for compliance
with corporate governance requirements:

a) Audit committee;

b) Shareholders’/Investors’ Grievance committee;

c) Remuneration committee;
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Audit committee

The members of audit committee of the board are Mr. Bharat Jain, Mr. Jay Prakash Shukla
and Mr, Rakesh Aggarwal. All members of the audit committee are independent directors.
The chairman of the audit committee is an independent Director.

The audit committee oversees the company’s financial reporting process and disclosure of its
financial information. The audit committee further reviews the accounting and financial
policies and practices, internal control system, quarterly, half yearly and annual financial
results. It also recommends appointment of statutory and internal auditors and consider and
observations made by them.

Shareholders’/Investors’ Grievance committee

The members of the Investors’ Grievance Committee of the Board are Mr. Surendra Kumar
Agarwal, Mr. Jay Prakesh Shukla and Mr. Rakesh Aggarwal.

The Investors’ Grievance Committee is responsible for the redressal of shareholders and
investor s’ Grievances such as non-receipt of share certificates, balance sheet, dividend, etc.

Remuneration committee

The members of the Remuneration Committee of the board are Mr. Bharat Jain, Mr. Jay
Prakash Shukla and Mr, Rakesh Aggarwal. All members of the Remuneration committee are
independent directors.

The Remuneration committees determines the company’s remuneration policy, having regard
to performance standards and existing industry practice. Under the existing policies of our
company, the Remuneration Committee inter alia determines the remuneration payable to our
Directors.

Other Committees:

In addition, our Board constitutes, from time to time, such other committees, as may be
required, for efficient functioning and smooth operations.

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.

Year Milestone

2001  Incorporated as Vishal Retail Private Limited

 Acquired the proprietorship firm Vishal Garments & The Vishal
Garments
 Opened first store outside Kolkata
2002  Opened first Store in Delhi
2003  Acquired Vishal Apparels, a manufacturing unit.
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 Set up a manufacturing unit in Gurgaon

2005  Started our largest store of at Mathura Road, New Delhi having an
area of 80,000 square feet
 Nominated for the Images Retail Awards’ 2004
2009  Our company having 186 retail stores in India.
 Our company plan for adding new FMCG products in product
line.

MISSION STATEMENT:
We shall deliver every thing, everywhere, every time for every Indian Consumer in the most
profitable manner.

VISION STATEMANT:
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.

Profile of Vishal Mega Mart

Vishal Group l a u n c h e d t h e i r f i r s t h y p e r m a r k e t Vi s h a l M e g a m a r t i n Udaip

ur this month. Spread over 25,000 sq.ft, the store offers extensiverange of men's,
women's and kids' range of fashion clothing. Beside
fashiona t t i r e , i t w i l l a l s o h a v e s e p a r a t e s e c t i o n s a n d c o u n t e r s f o r w a t c
h e s , sunglasses, fashion accessories, gifts and novelties, electrical appliances, digital
diaries, perfumes, cosmetics and grocery items etc. Currently, Vishal Mega Mart operates 29
fully integrated and self-owned stores spread over a total shopping area of 5,70,000 sq. ft in
21 cities across India

Vishal Retail Ltd. is one of fastest growing retailing groups in India. It o utlets
cater to almost all price ranges. The showrooms have over 70,000 products range which
fulfils all your household needs, and can be catered to under one roof. Each store gives
you international quality goods and
pricesh a r d t o m a t c h . T h e c o s t b e n e f i t t h a t i s d e r i v e d f r o m t h e l a rg e c e n t r a
l purchase of goods and services is passed on to the consumer. In BerhampurVishal Mega
Mart is situated at R. C. Church Road in an independent building.It is a central market place
where all sorts of customers come from all sorts of places. This place is very
convenient in various aspects like its reach, parking facility, market
coverage.D u e t o r i s e i n t h e p e r c a p i t a i n c o m e , a u g m e n t e d p r o d u c t a v a i l a b i l
i t y, exposure to international lifestyle brands& media explosion all adds to the
booming retail industry investment in this area is poised to reach Rs 40000 crore by
2006.

Summary of the progress till date

There is a boom going on in the retailing sector in the present world. The business
environment in India as well as in other countries like China, South Korea, Germany,
France, UK, Japan, Thailand, Hong Kong, Indonesia etc is becoming very complex and
opportunistic with respect to various sectors as of now
 26

“Customer is the KING”

The customer retention strategies of Vishal Mega Mart as observed by me
int h e S I P p e r i o d a n d f o r l a s t o n e a n d a h a l f m o n t h h a v e b e e n c u s t o m e r ori
ented and time or season oriented. That means it is undertaking these strategies
on a regular basis so as to make the customers more loyal towards the products or services
in Vishal Mega
Mart.Vishal mega mart has been trying to differentiate itself from other localsto
res like Lohiya Brothers, Sri Durga Cloth Stores, other franchisee outlets, local kirana stores
so that more number of existing as well as new customers will enter and be converted into
regular loyal customers. From time to time itis providing discounts, offers, schemes, better
ambience, wide assortment
of goods with innovative visual merchandising, competitive pricing, better
customer value, better service through employees etc. it has been verydifficult
for the management of the store for making the customers
loyalt o w a r d s t h e s t o r e b e c a u s e o f t h e c o m p l e x i t i e s o f t h e c o n s u m e r s a n d c
ompetitors

Corporate Governance
VRPL is in compliance of the provisions for corporate governance as stipulated in the listing
agreements with the stock Exchange, including with respect to the appointment of
independent Directors to VRPL’s Board and the constitution of the audit committee, investor
governance committee and compensation committee.
Our Stores and Distribution Centers
Table 1.3 Existing Stores
CITIES ADDRESS Area In Fiscal yr
Sq.ft. of launch

Tier I Cities

1. Bangalore No. 31/9, Hosur Main Road, Near Central 42000 2007
Silk Board Junction, Bangalore, Karnataka

2. New Delhi 1 Padam Singh Road, Karol Bagh, New Delhi 20000 2004

3. New Delhi 2 18, Mohan Co-operative Estate, Mathura 80000 2005

Road, New Delhi

4. New Delhi 3 Block-FD, Vishaka Enclave, Pitampura, New 18000 2004

Delhi

5. New Delhi 4 Pal Mohan Plaza, No. 39, Block A2, Rajouri 25000 2003
Garden, New Delhi.

6. New Delhi 5 E- 367, Nirman Vihar, Vikas Marg, New 10400 2004
Delhi – 92

Tier II Cities

7. Hyderabad 1 Sagar Plaza, Troop Bazaar, Hyderabad. 25045 2007

8. Hyderabad 2 3-11-107, Ramanthapur, Ranga Reddy 36326 2007

 27

District, Hyderabad, Andhra Pradesh

9. Pune Wing B, KPCT Building, Wanowarie, Pune, 45000 2006

Maharashtra

Tier III Cities

10. Agra*^ 70-71, Gandhi Nagar, Bye pass Road, Agra, 10000 2006

Uttar Pradesh

11. Ahmedabad Zodiac Square, FP 407, Bodakdev, Opp. 37968 2007

Gurudwara, S.G. Road, Ahmedabad, Gujarat

12. Amritsar SCO No. 126-127, District Sopping Centre, 31000 2007

Ranjit Avenues, Amritsar, Punjab

13. Aurangabad Bansi Nagar, Near Railway Station, 25920 2007

Aurangabad, Maharashtra

14. Baguhati PGE Plaza, VIP Road, Baguhati, Kolkata

15. Bihar Pandey Mall, Frazer Road

16. Berhampur Old busstand, Church Road, BAM, Odisha 14500 2008

17. 1# Shopping Hall no. 7, Western Market 6400 2002

Bhubaneswar 1 Building, Unit-II, Bhubaneswar, Odisha

18. 2 A-1/2 Nayapally, I.R.C. Village, 28000 2007

Bhubaneshwar 2 Bhubaneshwar, Odisha

18. Cuttack Bajarak Bati, Cuttack, Odisha 6900 2002

19. Dehradun 52, 52A, 52B, Rajpur Road, Dilla Bazar, 26000 2007
Dehradun, Uttaranchal

20. Dhanbad Main Road Saraidhela, Dhanbad, Jharkhand 20000 2007

21. Ghaziabad 1 6/3 South Side, G.T. Road, Ghaziabad, Uttar 15000 2004
Pradesh

22. Ghaziabad 2 G-SR 26 to 33 and UG-SR 20-27 in Ansal 27190 2006

Plaza, Vaishali, Ghaziabad, Uttar Pradesh

23. Goa Samrat Ashok Theatre Complex, 18th June 16289 2007
Road, Panaji, Goa

24. Gurgaon SCO 9,10,11,12, Sec.14, Gurgaon, Haryana 26269 2006

 28

TPG & SHRIRAM GROUP ACQUIR VISHAL RETAIL

THE Rs 30,000 crore Shriram group and private equity giant TPG Capital are working on a
12-18 month time bound plan to turn around Vishal Retail stores. It focuses on stabilising the
operations and restocking the stores to attract customers in an environment where Biyani’s
Big Bazaar as well as Raheja’s HyperCITY and Tataowned Star Bazaar are expanding
rapidly.

“We are seeing progress in the front end. The focus is on categories, which offer higher
margins and regaining the lost goodwill among supplier partners. We expect that we will be
able to break even company-wide in the next 12-18 months,” a top official familiar with the
financials and strategy of the retail venture told
Financial Chronicle.

Since taking charge of the stores in March they have pruned the network by 810 stores to 120
stores and have been engaged in putting in place the infrastructure, software and back end
systems to run these stores. Harminder Sahni of Wazir Advisors, a retail sector specialist
consultancy, said, “Vishal Retail will need at least a year-and-a-half to
turnaround their business. Now they are busy closing down stores,
building new stores and cleaning up the mess with vendors, distributors
and companies.” “We don’t expect a large number of stores to be closed
down,” said a senior Shriram group official who runs the front end
stores.

“At the most around 10-15 per cent of the network may require pruning.
 29

But before we close any more outlets we must consider, if we have done everything we could
to improve volumes at these stores,” added the senior Shriram group official.

Vishal Mega Marts saw high attrition as talented employees deserted the firm that was then in
a financial bind. Stock levels were also down as its earlier parent was unable to pay dues to
vendors. “Lax stock control and stock outs challenged the business at a time when
competitors such as Big Bazaar and Reliance were running promotions in the run up to
Independence Day celebrations,” said the Shriram group official. Since March 2011 when
TPGShriram took over, their priority has been to bring down the high attrition of employees,
who were concerned about the timely disbursement of salary and had doubts over the
commitment of the new promoters to the retail business. “We have told them that we have not
taken over this business as a short term investment and they needn’t worry about their
salaries. While we have closed some stores whose long term profile does not match our target
segment, we have managed to get back three ex-staffers of Vishal Retail as finance head,
head of operations and Venugopal K as CEO of the venture,” a director at Airplaza Retail
Holdings told Financial Chronicle.
For the operational 120 stores, the combine has managed to rework the lease agreements with
landlords to lock in the properties for long tenures, as they do not want to be hit with rising
rental costs once the stores turn around. The entire set of licences and approvals required for
carrying on this business too have now been obtained in the name of Airplaza.

“We have broken the vicious cycle of falling stock levels leading to lower sales making
available even lesser money for investments. We have now fully stocked the stores to cater to
increased footfall in tier 2 cities, which will hopefully lead to higher sales. The first signs so
far are positive as we have posted a marginal increase in same store sales over the past three
to four months,“ said Airplaza director.

“On an average, our inventory levels across stores are up 10 per cent as vendors regain
confidence in us. We have also started getting FMCG goods on credit compared with earlier
times when we were placed on cash & carry by the leading FMCG majors,“ said Airplaza
director.

A senior official of TPG Wholesale too confirmed that the combine is struck off the cash &
carry list of FMCG majors and is now being extended a reasonable period of credit.
When contacted for a confirmation an HUL spokesperson said, “We have no comments to
offer on this speculation.” Similarly a Dabur India spokesperson said, “Dabur, as a policy,
does not comment on its business associates.” If the turnaround plan proceeds on track, the
company will be in a position of cash break even by the end of this financial year. The
combine then plans on renovating and refitting the outlets to create an experience zone.
Arvind Singhal, chairman, Technopak Advisors said, “Vishal Retail is in rebuilding phase
now. After rebuilding and restructuring the company’s expansion plans will become clear.”
Harminder Sahni, owner at Wazir Advisors said, “Vishal Retail will need at least a year and a
half to turnaround their business. Now they are busy closing down stores, building new stores
and cleaning up the mess with the vendors, distributors and the companies.” TPG Wholesale
acquired the wholesale franchise undertaking of Vishal Retail while Airplaza Retail Holdings,
a part of Shriram group, has bought its retail undertaking.

TPG will invest Rs 200 crore in TPG Wholesale to finance the turnaround of its business and
future growth, said a company press release issued in March this year. TPG and Shriram paid
Rs 70 crore to acquire the business of Vishal Mega Mart along with the brand rights to the
stores in a slump sale.
 30

Business Process

Currently, VRPL’s business plan involves implementation of the concept of value retail in
India. VRPL sell quality products at reasonable prices by directly procuring from
manufacturers.VRPL’s business process can be summarized as below:

 Pricing: VRPL follow uniform pricing policy across their stores in respect of private
labels and non-branded products sold by them. This enhances brand loyalty,
encourages customer confidence and results in operational convenience. In relation to
the other products, the prices may vary between stores on account of state-specific
taxation and vendor policies.
 Sales Promotions and Customer Service: VRPL’s category management system is
used to plan promotional schemes. They launch promotional schemes weekly. Apart
from general sales promotion, the category manager formulates promotional plans for
‘slow movers’. In addition, to promote sales, they focus on layout of the stores and
positioning, presentation and display of merchandise, in order to appeal to the
customer. Under arrangements with some of our merchandise manufacturers, they
receive payment on account of display of their products. VRPL have also entered into
a co-branded card agreement with SBI Cards & Payment Services.
 Advertising and Publicity: VRPL undertake regular promotion of their stores
through print media, television and local radio channels and have organized press
conferences in the past to promote ourselves. Outdoor advertising such as banners,
posters and hoardings are employed to advertise and to increase visibility.

In September 2005, VRPL entered into a long term advertising agreement with Bennett,
Coleman & Company Limited (“BCCL”). Under the agreement, they are entitled to fixed
discounts for our advertisement in print publications of BCCL for a period of five years from
the date of the agreement. In addition, BCCL would also act as a facilitator for other print and
non-print media of the Times Group i.e. internet, radio and television or any other new
medium launched during the tenancy of the agreement.
 31

Private Level

It has a number of private labels for apparels (i.e. apparels manufactured by us) such as
Zeppelin, Paranoia, Chlorine, Katina Studio, Famine, Flthierier Women and Roseau. In fiscal
2007, their income from their private labels was Rs. 583.60 million, which accounts for
9.68% of their total sales for fiscal 2007. It believes that their focus on theIr private labels
and their recognition in their customer segment enables us to Differentiate themselves from
their competitors

Information Technology System

In August 2005, VRPL had entered into a software end-user license agreement with Systems,
applications and Products in Data Processing Private Limited (“SAP India”) for grant of a
nonexclusive and perpetual license to VRPL to use the SAP software, documentation and
other information related thereto.
32
INTRODUCTION
Perception:-

In its simple sense perception is understood as the act of seeing what is there to be seen.
But the perceiver, the object, and the environment influence what is s een. The meaning
of perception w ill be complete w hen all the three aspects are stressed. A few
definitions of perception are given below:
“Perception can be defined as a process by which individuals organize and i n t e r p r e t
their sensory impressions in order to give meaning to their
environments.” “Perception includes all those processes by which an individual
receives information about his environment – seeing, hearing, feeling, tasting, and
s melling.
The s tudy of thes e perception process es s hows that their functioning is
affected by three classes of variables – the objects or events being perceived, the
environment in w hich perception occurs , and the individuals doing the
perceiving.”

Customer and Customer perception

A customer is someone who makes use or receives of the product or service of an individual
or organization the historically derived from “custom” meaning “habit “a customer was
someone who frequented a particular shop, who made it habit to good of the short the shop
sold their rather than elsewhere and with whom the shopkeeper had to maintain a relationship
to keep his “custom “meaning expected purchases in the future.
In psychology and the cognitive sciences perception is the process acquiring interpretation
selection and organization sensory information the word perception comes from the Latin
perception meaning receiving collection action of taking a possession. Apprehension with
the mind or sense. Method of studying perception range from essentially biological or
physiological approaches though psychological approaches though the philosophy of mind
and in empiricist epistemology.

Perceptional process or model:-

Schematically, we can summarize this way of looking at perception in what I’ll call the
Perceptual Process Model, shown here in a very simple form. This is essentially the model
that I proposed in , though I used somewhat different terminology there.

Think of yourself as being continually immersed in an immense stream of information, which

I’ll call your perceptual stream. The globe represents the world around you, the source of that
perceptual stream. In addition to the outside world it includes your body, itself a major source
 34

of the information. Your perceptual stream is processed through your perceptual lens, which
we will treat conceptually as a “black box.” (“Black box” is an engineering term used for a
process described in terms of what the process accomplishes, without specifically addressing
the internal detail of how that is actually done.) Within that lens, pieces of this overall
perceptual stream are filtered out and assembled into a stream of perceptual images.

I’m using the term “image” here in a very general sense, to refer to more than just visual
images. It encompasses all the perceptual representations you make for yourself. The words
you hear when someone speaks to you and the melody you hear when you listen to music are
auditory images; your sense of your body in space and of the movement of your arm when
you pick up an object are kinesthetic images, etc. These images are not objective copies of
the world “out there,” as depicted in the eye-as-a-camera model. Rather, they are
representations of things you know how to perceive and expect to encounter.

This model describes the way you produce the various individual dimension of perception —
vision, hearing, touch, the kinesthetic sense of body position and movement, emotional
feeling, intellectual understanding, etc., as well as how you produce your overall ongoing
experience — the encompassing multidimensional stream of experience of which all the
individual dimensions are components. I’ll sometimes use the term current experience to
refer to the ever changing present moment in that ongoing stream.

Looking at visual perception in isolation, the perceptual stream would be the flow of visual
information coming into your eyes from the outside world, and the perceptual images would
be the visual images you see as a result of that flow. More generally, your larger perceptual
stream would include ambient sounds impinging on your eardrums, smells, the hepatic (touch
and pressure) sensations from your contact with the objects in the external world, etc. It
would also include proprioceptive sensations from within your body, which we’ll examine in
greater depth in later postings. Your perceptual images would include your interpretations of
what you hear, the sense of mass and volume of external objects derived from all your senses,
and even your perceptions of opportunity or threat from external situations and your
emotional responses to them.

This points up an important truth that it’s easy to lose track of. Human beings are extremely
complex organisms, living and functioning in extremely rich and complex environments.
When we think and talk about who we are and how we function, we usually ignore most of
that complexity and focus on much simpler abstractions as if that was all there is. That kind
of simplification works pretty well, most of the time, but we need to keep in mind that there
is always a lot more going on. Sometimes that difference can be important, and neglecting it
can have serious consequences. I’ll return to this point from time to time as we proceed.

Perceptual Process:-

Perception, as revealed by the definitions, is composed of six processes, viz.,

re cei vi n g , se le cti n g , org a ni zi ng , i n te rp re ti n g , ch e cki n g , an d re a ctin g
to stimuli. These processes are influenced by the perceived and the situation.

Process of Receiving Stimuli:-

The human organis m is s tructured w ith five sens ory organs , viz., vis ion,
hearing, smell, touch and tasting. There is the sixth sense about which much is speculated
and nothing is known. We receive stimuli through the organs. Secondary organs
receive not only physical objects; they receive events or objects that have been
repressed. We may not be able to report the existence of certain stimuli but our behaviour
 35

reveals that we are often subject to their influence. Similarly, stimuli need not be external to
us. They may be inside also.

Process of Selecting Stimuli:-

Myriads of stimuli seemingly clamour for our attention at any given time. We n e e d t o
filter or screen out most of them so that we may deal with the
important or relevant ones . Tw o s ets of factors govern the s election of
stimuli: external and internal.

External Factors Influencing Selection:-

The external factors influencing selection are:

Nature:
By nature we mean, whether the object is visual or auditory, and whether it involves
pictures, people or animals.

Location
The best location of a visual stimulus for attracting attention is directly in the front of
the eyes in the centre of a page. When this location is not possible in a newspaper or a
magazine, a position in the upper portion of a page in more favourable than one in the lower
portions, and the left hand side receives more attention than the right hand side.

Intensity:
S timuli of higher intens ity are perceived more than the objects with low
intensity. A loud noise, strong odour, or bright light will be noticed more than a soft
sound, weak odour, or dim light.

Size:
Generally objects of larger size attract more attention than the smaller ones. The
maintenance engineering staff may pay more attention to a big machine than to a
small one, even though the smaller one costs as much and as important to the operation.

Contrast:
The contrast principle states that external stimuli which stand out agains t the
background, or which are not w hat people are expecting, w ill receive their
attention.

Movement:
The principle of motion s tates that a moving object receives more attention
than an object that is standing still.

Repetition:
The repetition principle states that a repeated external stimulus’s more attention drawing than
a single one.

Novelty and Familiarity:

The novelty and familiarity principle states that either a novel or a familiar external
situation can serve as an attention getter. New objects in familiar settings or familiar objects
in new setting will draw the attention of the perceiver.
 36

Internal Factors Influencing Selection:-

Internal factors influencing selection of stimuli include learning, psychological needs , age
differen ces , interes ts , ambivalenc e, and paranoid perception. These factors
relate to one self.

Learning:
L e a r n i n g , a c o g n i t i v e f a c t o r, h a s c o n s i d e r a b l e i n f l u e n c e o n
perception. It creates expectancy in people. People tend to perceive what they want
to perceive.

Psychological Needs:
Needs play a significant role in perceptual selectivity. Unreal things often look real because
of deprived needs.

Age Difference:
Older senior executives complain about the inability of the new young to take tough
decisions concerning terminating or resigning people and paying attention to details and
paper work. The young managers in turn complain about the “old guards” resisting
change and using paper and rules as ends in themselves. Different perceptions of old and
young executives are due to their age differences perception.

Interest:
The interests of the perceiver unconsciously influence perception. An architect
will notice many details of buildings that he passes only once. It has been argued
that, in their influence on perception, interests cannot be distinguished from needs.
That is, the person with a particular interest has a need to involve himself in activities
pertaining to it. Yet there is some value in conceiving the two as distinct. Once they have
been satisfied, most needs no longer influence perception. But if the pers on has a
s pecial interes t, his perception is likely to be selective at any time.

Ambivalence:
Another factor in perceptual s election is ambivalen ce or mixed feelings about
a situation.

Factors influencing perception:-

1. Characteristics of the perceiver: Several characteristics of the perceiver can affect

perception. When an individual looks at a target and attempts to interpret what he or she
stands for, that interpretation is heavily influenced by personal characteristics of the
individual perceiver. The major characteristics of the perceiver influencing perception are:

a) Attitudes: The perceiver’s attitudes affect perception. This attitude will doubtless affect his
perceptions of the female candidates he interviews.

b) Moods: Moods can have a strong influence on the way we perceive someone. We think
differently when we are happy than we do when we are depressed.
 37

c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong
influence on their perceptions.

d) Self-Concept: Another factor that can affect social perception is the perceiver’s self-
concept. An individual with a positive self-concept tends to notice positive attributes in
another person.

e) Interest: The focus of our attention appears to be influenced by our interests. Because our
individual interest differs considerably, what one person notices in a situation can differ from
what others perceive.

f) Cognitive Structure: Cognitive Structure, an individual’s pattern of thinking, also affects

perception. Some people have a tendency to perceive physical traits, such as height, weight,
and appearances more readily.

g) Expectations: Finally, expectations can distort your perceptions in that you will see what
you expect to see. The research findings of the study conducted by Sheldon S Zalkind and
Timothy W Costello on some specific characteristics of the perceiver reveal

Knowing oneself makes it easier to see others accurately.

One’s own characteristics affect the characteristics one is likely to see in others.

People who accept themselves are more likely to be able to see favourable aspects of other
people.

Accuracy in perceiving others is not a single skill.

These four characteristics greatly influence how a person perceives others in the
environmental situation

Top 5 reasons customer don’t buy from a store

Are you spending time marketing your product, but still not selling as much as you would
like? The truth is consumers have needs and steps that they go through that persuades them to
buy. If your marketing is not meeting those requirements it is probably the reasons your
product is not selling. As consumers we are not just persuaded by the "price" of a product, we
are moved by the benefits of the product and what it can do for us; that's our reason for
purchasing.

If you are finding that you are having difficulty in selling your product you may want to
consider the following reasons why consumers don't buy and evaluate how you can do better
at marketing your products in a way that converts consumers into your customers.
 38

1. They are not aware of your product.

Consumers cannot purchase products they are not aware of. If you are marketing, but
consumers still don't know about your product it may be time to evaluate why it's not
working. Are you targeting the right market with your message? Is your message
reaching those that would have an interest in your product? It's important to remember
that the solution is not always more marketing, because the problem may lie with
where you are marketing at, and what marketing vehicles you are using.
2. They don't understand the benefits of your product.
Consumers don't buy products solely based on price. Now, this does not mean that they
don't factor in price, they do. Consumers buy based on the benefits your product brings
them. If you asked your customers what the benefits of your product are, would they
know? This is important. Your marketing must be centered on the benefits for your
product in order for consumers to take an interest in purchasing your product. Create a list
of the top three benefits of your product and use those in your marketing message.
3. They don't feel your product has perceived value.
Consumers will not buy products that they perceive as having no value. Why should
customers value your product? You can use the benefits of your product to create a
perceived value and it is that perceived value that helps in the sales of your product. If a
customer cannot see value they will simply pass your product by. You must create that
perceived value in your marketing message.
4. They don't see how your product meets their needs.
We've talked about benefits and perceived value, now let's talk about needs. Do
consumers know how your product meets their needs? Does it make their life easier, save
them time, make them feel better? What need does your product satisfy? You have to tell
consumers that, don't make them guess or come up with the answer on their own tell them
and help educate them on why they need your product.
5. Your product is not accessible to them.
Consumers cannot buy what is not available to them. If they hear about your product but
it is not accessible, forget it. Consumers want ease in obtaining and using your product.
How can you make your product more accessible to them? Is it putting it in different
locations? Distributing your product different? Perhaps it's offering your product online.
Evaluate the accessibility of your product and see if you need to make changes.

The concept of perceived quality:-

Quality can be define broadly as superiority or excellence. By extension, perceived quality

can be defined as customers judgement about a product’s overall excellence. Perceived
quality is (1) differ from actual quality or objective, (2) a higher level abstraction rather then
a specific attribute of a product.
39
 40

Research Objectives:-

Is to study the customers perception from point of view of various attributes in Vishal Mart
at BERHAMPUR.

 Determine consumer rating on agreed parameters to measure how consumer rate

Vishal Mega Mart.
 The main objective is to measure the perception about Vishal Mart.
 The objective of research is to study the perception level of the customer from point
of view of various attributes in Vishal Mart at BERHAMPUR.
 To know the profile of the visitors at Vishal Mega Mart in BERHAMPUR so that the
management can concentrate their effort on that particular age group.
 To know the acceptability and effect of various schemes on visitors at Vishal
Mart in BERHAMPUR.
 To know the perception of customers towards various services provided to customers
by Vishal Mart.

RESEARCH METHODOLOGY

1. Design of the Study

 Research methodology is a way to systematically solve research problem. In it we

study the various steps that are generally adopted by researcher in studying his
research problem along with the logic behind them.
 It is necessary for a researcher to know not only the research methods/techniques but
also the methodology. It may be noted, in the context of planning & development, that
the significance of research lies in its quality and not in quantity.
 Researchers should know how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not,
and what would they mean and indicate and why.
 There are various stages to solve the research problem as shown in following
diagram:

2. Data Collection

PRIMARY SOURCE: The method of data collection is done by the way of survey; this is a
process whereby first hand information is collected. This method is needed for meeting the
specific Objective of research study.
 41

I have collected primary data in the form of filled structured questionnaire by customers. In
first questionnaire I collect whole data about customer’s feedback about the products of
VMM . In second I collect all the data regarding to comparative analysis.

SECONDARY SOURCE: The secondary data was collected in the form of company profile
and product profile from the Web Site of Vishal Mega Mart. Some other Web Sites were also
referred. For collecting the required data.

The data has helped in ascertaining the strategies and approaches of major players in market.
Thus the study involved collection, analysis and interpretation of a lot of data relating to this
sector. The data is collected from various sites, books, journals, etc.

3. Sampling

 SAMPLE SELECTION PROCEDURE: Since it is the survey of customer, to obtain

an unbiased result the customers sample from the population were interviewed
randomly. So the sampling technique chosen for the research is Random sample
technique. Every customer inside the VISHAL MEGA MART had an equal chance of
being interviewed.
 SAMPLE UNIT: The customer who comes for shopping inside the VISHAL MEGA
MART is the sample unit.
 CONTACT METHOD: Personal approach to each and every customer for all surveys
and interviews were the Contact method used for obtaining a proper and detailed
feedback. A face-to face Interaction took place with each sample representative.
 RESEARCH INSTRUMENTS: As the questionnaire is self administrated one, the
survey is kept simple and user friendly. Words are used in questionnaire are readily
understandable to all respondents. Also technical jargons are avoided to ensure that
there is no confusion for respondents.
 42

4. Data Analyze and Interpretation: Charts, Tables

Q1. I get good quality products at this store.

Table no 1:-

6
Strongly agree
8
Agree
48
Neutral
28
Disagree
10
Strongly Disagree

Graph 1:-

Interpretation
 43

From the above chart, we came to know that the product quality is good for somewhat.
Because 48% feedback is neutral and 28% feedback is agree. So it provide good quality
product which reflect the rate of customer perception.

Q2. Sufficient information regarding product price and durability is provided at VMM.

Table no 2:-

4
Strongly agree
8
Agree
20
Neutral
56
Disagree
12
Strongly Disagree

Graph 2:-
 44

Interpretation

From the above chart, the sales persons have sufficient knowledge about product and
the sineses which are pasted and have sufficient information about a
product. The positive response shows customers perception.

Q3. Fair price policy is followed by this store.

Table no 3:-

12
Strongly agree
26
Agree
52
Neutral
6
Disagree
4
Strongly Disagree

Graph 3:-
 45

Interpretation

From the above chart, it is clear that VMM follow the fair price policy. I.e. customer get the
product with effortable price, from which perception level is reflected. More than 90%
responses are positive.

Q4. VMM provide exchange facility by without any difficulty.

Table no 4:-

16
Strongly agree
22
Agree
54
Neutral
4
Disagree
4
Strongly Disagree
 46

Graph 4:-

Interpretation

From the above analysis we can conclude that exchange facility was provided by VMM
with out any hesitation. We can also says that the perception level is high in this case (92%
positive responses).

Q5. The Retail Outlets sales person gives proper response regarding product.

Table no 5:-

24
Strongly agree
58
Agree
16
Neutral
2
Disagree
0
Strongly Disagree

Graph 5:-
 47

Interpretation

From the above we can interpret ate that the sales person has sufficient knowledge
regarding product. Perception of customer towards sales person is good.

Q6. The Retail Outlet provide discount or rebate to regular customers.

Table no 6:-

0
Strongly agree
0
Agree
0
Neutral
26
Disagree
74
Strongly Disagree

Graph 6:-
 48

Interpretation

From the above chart we can conclude that more than 75% customers are disagree. this
shows the negative perception towards VMM.

Q7. The Retail Outlet provides value added services (credit cards) facility to consumers.

Table no 7:-

66
Strongly agree
30
Agree
4
Neutral
0
Disagree
0
Strongly Disagree

Graph 7:-
 49

Interpretation

We can conclude that all most all customers are give their positive response to words the
credit card purchase facility.

Q8. The Retail Outlet provides coupons or points on bulk purchasing.

Table no 8:-

10
Strongly agree
12
Agree
56
Neutral
8
Disagree
14
Strongly Disagree

Graph 8:-
 50

Interpretation

From the above, more than 50% customers are give the positive response but not all ,
because during my survey that discount is running but for some time (for 10 days).

Q9. The retail outlet has an enough space for parking

Table no 9:-

20
Strongly agree
62
Agree
14
Neutral
4
Disagree
0
Strongly Disagree

Graph 9:-
 51

Interpretation

From the above we can conclude that enough parking space is available but 4%are disagree
because at the time of holidays and occasion it may be. It shows the positive perception
level.

Q10. The products offered in the retail outlet are of good quality.

Table no 10:-

24
Strongly agree
22
Agree
50
Neutral
4
Disagree
0
Strongly Disagree

Graph 10:-
 52

Interpretation

From the above chart , products are good in quality all most all are give their positive
response , this shows the perception of customers towards product quality.

Q11. The Retail Outlet has clean drinking water facility.

Table no 11:-

16
Strongly agree
12
Agree
54
Neutral
10
Disagree
8
Strongly Disagree
 53

Graph 11:-

Interpretation

From the above chart , more than 60% are agreed but some are also not because in
summer season water problem are happen in Berhampur.

Q12. The Retail Outlet has the separate zone for ladies.

Table no 12:-

16
Strongly agree
14
Agree
52
Neutral
10
Disagree
8
Strongly Disagree
 54

Graph 12:-

Interpretation

From the above, more than 65% respondents are give their respond positively but not
others because in case of purchasing some FMCG product which are specially meant for
ladies, they are feel uncomfortable.

Q13. The Retail Outlet frequently asks for suggestions to customers and tries to improve the
services.

Table no 13:-

20
Strongly agree
40
Agree
28
Neutral
8
Disagree
4
Strongly Disagree
 55

Graph 13:-

Interpretation

From the above, 60% positive response are positive, so they are frequently ask for
suggestion and also try to implement that.

Q14. The Retail Outlet provides new items according to the changing needs of the
customers.

Table no 14:-

12
Strongly agree
16
Agree
50
Neutral
12
Disagree
10
Strongly Disagree

Graph 14:-
 56

Interpretation

This chart shows that according to changing needs of customer new items are
provided to the customer by VMM. Here also the perception is positive.

Q15. The Retail Outlet provides free home delivery.

Table no 15:-

0
Strongly agree
0
Agree
0
Neutral
12
Disagree
88
Strongly Disagree
 57

Graph 15:-

Interpretation

This chart shows that home delivery services were not provided by the VMM. And
also home delivery services were not available here.

Q16. The Retail Outlet sends cards or mail to me on special occasions like Diwali,
Anniversary,
New-year.

Table no 16:-

0
Strongly agree
0
Agree
0
Neutral
24
Disagree
76
Strongly Disagree
 58

Graph 16:-

Interpretation

This chart shows that CRM was not maintain by the retailer. Here the perception is
negative.

Q17. Overlay you mark Vishal is good.

Table no 17:-

14
Strongly agree
18
Agree
38
Neutral
12
Disagree
18
Strongly Disagree

Graph 17:-
 59

Interpretation

This chart shows that 70% respondents are marked that Vishal is good. This shows the
perception.
60
 61

Finding
 Choosing a retail location is, at best, a risky undertaking. Considering the
consequences of choosing a location that proves to be unsuitable, it pays to get as
much assistance as possible. According to our survey more than 50% of the customer
prefers to shop in a retail store which is easily accessible to them.
 Advertising plays a very important role in achieving growth for VISHAL.
 The right location, trained manpower, software assistance, product with a distinct
differentiation, a strong value proposition, efficient supply chain management - these
are the factors that influence the success of a retail outlet.
 Variety offered by any retail store is of very much important to attract all type of
customers in the stores. A large variety of products caters to each segment of
customers. Our analysis shows tells us that more than 80% of people go to retail
stores for shopping based on the product range offered there.
 Quality in everyday life and business, engineering and manufacturing has a pragmatic
interpretation as the non-inferiority, superiority or usefulness of something. This is
the most common interpretation of the term. The quality of a product or service
refers to the perception of the degree to which the product or service meets the
customer's expectations..

4.2 Interpretation:

From the analysis part the strategies which Vishal is utilizing for retaining it’s customer is
utilizing for retaining its customer is:

 Price: it provides a constant low price with little or no price promotion and special
sales. Its price for it’s products suits to every pocket. So the customers are purchasing
from Vishal.

 Service recovery: Exchanging the defective product service quqlity level with a
better CRM practice in service industry. Vishal is haeding towards obtaining customer
when customers act their highest level of satisfaction can be found delighted by the
service level of Vishal.

 Exchange Guarantee: Vishal guarantee the exchange of any product that customer
have bought from Vishal and satisfied with.
 62

 Staff Behaviour: from the analysis part it is clear that staff behaviour is excellent and
it is an important factor to retain the customer. It is the employees who convience the
customers to purchase the products.

 Quality Guarantee: all products sold at Vishal guaranteed to be a good price and of
good quality.

 Advertisement: a key determination factor to retain the customers is the

advertisement and Vishal has its position in customers mind because of its
advertisement through the media, newspapers and also because of W-O-M i.e. word
of mouth advertisement.
 63

5.1 Conclusion

 As I has analysed the various data based on questionnaire a fact has come to light
that all most all responses are positive, but the perception is a complex cognitive
process we cannot record it exactly.
 64

 Customers most prefer quality and comparative low price.

 Vishal is the best hypermarket for middle class family.
 Offering discounts.

 Quality guarantee.

 Accept suggestion.

5.2 Suggestions

 Include more trained sales person to help customers in the store while shopping.
 Play good songs or soothing music in the store rather than cheap filmy songs.
 Customer care service can be introduced
 More branded products can be displayed in the store.
 Constant reminder of discounts through pamphlets, speakers inside the store for
inducing consumers for impulse buying.
 Add more cosmetic products as its having a huge market of consumers attached to it.
 Display of product should be improved so that the product is easily visible to the
consumers.
 Proper advertisement in press and outdoor to make Vishal visible in the eyes of
consumers.
 Should have parking spaces in front of every store.

5.3 Complaints
 Low variety of product available and customization of products is not there.
 Prices are not mentioned at all places and at all products (sinuses) .
 Prices are competitive as they are assumed to be lesser as compare to the other
retail outlets of Berhampur.
 Lack of space in the store while shopping and moving in the ground floor.

5.4 Recommendations

 Customization of products should be given a important consideration.

 Should apply electronic supply chain management for better inventory management.
 65

 Proper placements of Gondola in the stores as space between them are very less.
 Proper display in the gondola and top most rack of the gondola should be used for
storing of inventory rather than display of product.
 Should provide festival schemes and at proper time.
 Should use psychological pricing-more discounts by increasing the price.
 CRM should maintain.
 After sales service should given in case of selected electronic items.

QUESTIONEREE

Subrat Ranjan Panda

PERSONAL INFORMATION

NAME:……………………………………
 66

OCCUPATION:…………………………..

GENDER: Male ( ) Female ( )

AGE: 15-25 ( ) 25-35 ( ) 35-45 ( ) 45-55 ( ) More than 55 ( )

Please tick the relevant for the following as per your experience on the basis of:-
Strongly agree – 1
Agree - 2
Neutral - 3
Disagree - 4
Strongly Disagree- 5

The Retail Outlet that I often visit is kindly choose Vishal Mega mart

Parameter Response
1 I get good quality products at this store.
2 Sufficient information regarding product price and durability is provided at
VMM.
3 Fair price policy is followed by this store.
4 VMM provide exchange facility by without any difficulty.
5 The Retail Outlets sales person gives proper response regarding product.
6 The Retail Outlet provide discount or rebate to regular customers.
7 The Retail Outlet provides value added services (credit cards) facility to
consumers.
8 The Retail Outlet provides coupons or points on bulk purchasing.
9 The retail outlet has an enough space for parking

10 The products offered in the retail outlet are of good quality.

11 The Retail Outlet has clean drinking water facility.
12 The Retail Outlet has the separate zone for ladies.
13 The Retail Outlet frequently asks for suggestions to customers and tries to
improve the services.
14 The Retail Outlet provides new items according to the changing to the
changing needs of the customers.
15 The Retail Outlet provides free home delivery.
16 The Retail Outlet sends cards or mail to me on special occasions like
Diwali, Anniversary,
New-year.
17 Overlay you mark vishal is good
67