COURSE CODE: - MKT COURSE TITLE; - RETAIL

305 MARKETING
COURSE INSTRUCTOR: - SECTION: Q4E80
DR. NIKHIL MONGA
DATE OF ALLOTMENT: DATE OF SUBMISSION: -20TH
-10TH APRIL 2022 APRIL 2022
STUDENT ROLL NO. STUDENT REGN NO. 12009946
RQ4E80B53
Comparison between two departments on the basis of three product categories.

Company Profile:

Vishal Retail Ltd, is one of the leading players in the Indian retail industry, is a lead the way in
discount retailing and is focused on tier II and III cities in the country. It has a strong presence in
manufacturing and retailing of readymade garments (apparels) retailing of non-apparels and a large
variety of FMCG products. The company has pan-India presence with 400+ mid-sized
hypermarket format stores. Vishal is supported by strong manufacturing set-up in Gurgaon,
Dehradun and Manesar with a capacity of 5,000 garment pieces per day in each unit. It also has 27
warehouses located in 8 key cities in India covering over 1.1mn sq ft area. The founders of Vishal
Mega Mart are Mr. Ramchandra Agarwal, Mrs. Uma Agarwal, Mr. Surendra Agarwal. Each stores
gives international quality goods and prices hard to match. The cost benefits that derived from the
large central purchase of goods & services are passed on the consumer. Vishal stands for value,
increase, shipping, hyper market, affordable and low price. The punch line of the company is
“Value for money”. Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile,
Calcutta). India’s first hyper-market has also been opened for the Indian consumer by Vishal.
Situated in the national capital Delhi this store boasts of the single largest collection of goods and
commodities sold under one roof in India.

Mission Statement: “We shall deliver everything, everywhere, every time for every Consumer in
the most profitable manner.”

Vision Statement: ‘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.’
A company named Varin commercial Pvt. Ltd. Was started on oct-2002 at new Delhi by two
person Mr. Lalit Agrawal and Mr. Hemant Agrawal they both are the director of the company.
Head office of this company is situated at new-Delhi. Situated in the national capital Delhi this
store boasts of the single largest collection of goods and commodities sold under one roof in India.
For the time period from Oct 2002 to as on today they had touched the turn over near about 1075.46
as on March’21. The purchasing system is totally centralized from Delhi and they are also
purchasing locally to fulfill the local requirement as per the region. The vision of this is to reach
at each state by opening at least one outlet of V-MART. They follow their slogan “SABSE SASTA
SABSE ACHHA” and also to satisfy their customer with high level of customer delight. V-Mart
is having 368 stores across 235 cities in 26 states and union territories in north, west, east and south
India, with a total retail area of 3.2 million sq. ft. Prime states / cities include Bihar, Chandigarh,
Gujarat, Haryana, Jammu and Kashmir, Madhya Pradesh, Assam, New Delhi, Punjab, Rajasthan,
Uttarakhand and Uttar Pradesh.

Mission statement: “Care for customer aspirations, discover and nurture talent, sustained ethical
growth for stakeholders and harness vendor relationships.”

Vision Statement: “Create value and make our ecosystem proud.”

Part A: Comparative analysis between Vishal Mega Mart and V Mart

This section of the report shows the comparison between Vishal Mega Mart and V Mart on the
basis of three product categories (home decor, kitchen appliances and women footwear):

➢ On the basis of variety: In home décor section, if we pick up a particular product

from this section “bedsheet” as a product than the types of bedsheet Vishal Mega has
single, double, and king-size bedsheet with pillow covers whereas in V-Mart there are two
types of bedsheets (single, and double with pillow covers). Home Beautiful is the only
brand available in the Vishal Mega Mart but in V-Mart there are multiple brands called
Namo, Plush, Arch Fab, Raj Mahal, Bella Casa. In kitchen appliances section, if we pick
up a particular product from this section “Iron” than the brands available in Vishal Mega
Mart are Usha, Tandem and also there are also two brands available in V-Mart are Indo &
Magic. In “women footwear”, if we pick up “Sandals” than the brand available in Vishal
Mega Mart are Brink, Lucky Charm, and Pink Almirah whereas brand available in V-Mart
are Foundation, Gaurav Comfort, Alina, Glaz Comfort, Energy. The types of sandals
available in Vishal Mega Mart are flats and V-shape whereas V-Mart are having more than
5 types mainly comforters, mules, pumps, flats etc.
➢ On the basis of assortment: Product assortment in relation to retail marketing refers
to the whole collection of products that a retail stores offers to their customers in a
merchandise category.

In home furnishing category, Vishal Mega Mart offers the following:

• Door Mat.
• Bedsheet
• Carpet
• Curtains
• Pillows
• Pillow covers
• Towel Sets
• Bath mats.

In home furnishing category, V-Mart offers the following:

 • Bedsheets
• Blankets & quilts
• Cushion & cushion covers.
• Curtains
• Mats

In kitchen appliances category, Vishal Mega Mart offers the following:

• Juicer & Mixers.

• Gas Stoves.
• Electric Kettle
• Over toaster grill
• Rice cooker.
• Toaster & sandwich maker.
• Blender & chopper.

In kitchen appliances category, V-Mart offers the following:

• Sandwich maker
• Electric Kettle
• Mixer grinder
• Blender
• Induction

In women footwear category, the Vishal Mega Mart offers the following:

• Shoes
• Sandals
• Slippers

In women footwear category, the V-Mart offers the following:

• Mojaris
• Shoes
• Sandals
• Slippers

➢ On the basis of service: If the customer is buying any product from the home
furnishing and women footwear category, both the departmental stores doesn’t provide any
kind of warranty. If the any product is picked from kitchen appliances category from Vishal
Mega Mart, then the warranty period starts from 2 months to 2 years whereas no warranty
is provided in V-Mart. Both the departmental stores provide home delivery and Rs 29/- is
charged by Vishal Mega Mart if the bill amount is less than Rs 499/- and above that is
offered free. Free delivery is offered in V-Mart if the bill amount is more than Rs. 599/-.
The return policy of Vishal Mega Mart comprises of 30days from the day of purchase and
the product should not be damaged. The return policy of V-Mart comprises of 15days from
the day of purchase.

➢ On the basis of price: The price ranges in home furnishing category in Vishal Mega
Mart starts from Rs 99/- to Rs 1000/- whereas in V-Mart the price range starts from Rs
199/- to 1500/-. The price ranges in kitchen appliances in Vishal Mega Mart starts from Rs
100/- to Rs 2500/- and in V-Mart it starts from Rs 300/- to Rs 2400/-. The price range in
women footwear in Vishal Mega Mart starts from Rs 50 to Rs 500/- and in V-mart it starts
from Rs 179/- to Rs 980/-

➢ On the basis of promotion: Advertising has played a crucial role in building of the
brand. Both the departmental stores use different promotional tools I.e., newspaper,
television, etc. 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. Gift Voucher Rs. 1000.-
25% Off on All Items – Every Month-Discount Offers at Various Festive Occasions-Grand
Winter Sale – 50% & 60% discount for 2 days-Paise Bachao Andolon – 9 Din Ki Maha
 Loot-Vishal Reward Plus: Consumers can make purchases at any store and accumulate
points at a central level. These points are redeemable at any store. They also provide
various seasonal & festive offers.

Part B: Conclusion for each retailer’s strategy covering all the following aspect

Target Market of Vishal Mega Mart: Vishal Mega-mart stores are located in 129 cities
with 172 outlets. VMM has presence in almost all the major Indian cities. They are aggressive on
their expansion plans. Vishal Retail targets cities with urban population of 1 million people or
above or can be classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens retail
outlets on the outskirts, rather than the prime area. Its target market includes people with middle
income and lower income levels. This enables the company to overcome competition to some
extent due to its first mover advantage (as competitors have relatively less space in tier-2 and tier-
3 cities) and helps to lower rental cost.

Target Market of V-Mart: V-mart stores having more than 368 stores across 235 cities in
26 states and union territories in north, west, east and south India, with a total retail area of 3.2
million sq. Ft. They are usually located in Tier 2 and Tier 3 cities and in tier 1 cities the company
opens retail outlets other than prime areas. The efforts of V-Mart retail business are targeted
towards families having total income which can be classified under the “lower middle” and
“middle” income groups. V-Mart 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.

Competitive Advantage of Vishal Mega Mart: Competitive Advantage refers to a

situation or circumstances that puts a company in a favorable or superior business position. Vishal
Mega Mart is 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. The company is technology friendly as most of
their critical functions as human resources, Supply Chain, Operations, Finance & Accounts, and
Customer Loyalty Program are linked through a computer network. This has enabled them to
reduce their time to market and respond to the changing customer requirements. This has also
helped them reduce their costs of operations through both, reduction in wastages and missed
opportunities. Based on VRPL’s existing information technology systems, they are able to
generate detailed daily reports covering the various aspects of their business such as division wise
sales per store, inventory movement and position at stores and distribution centers and generation
of purchase and delivery orders. In order to increase the speed and traceability to the supply chain
management Vishal Mega Mart introduces Bar Code Technology. Bar code is tried and tested
technology—the “no-brainer” choice for identifying items in the supply chain. Vishal Mega Mart
uses the latest technology to improve its performance Quality as well as Quantity Wise. The
company is having Management Information Systems (MIS) capabilities able to monitor their
performance on a day-to-day basis, across stores, departments and product categories and compare
the same with other stores as well as across periods. This helps them take corrective action on a
timely basis, and optimize their stock. They are currently using business objects to analyze data
related to the buying trends of their loyalty customers. They also function in various areas such as
Merchandising buying, product ordering, Receipt confirmation, Stock transfer, Inventory
Management, Sales Merchandise event. The product prices are cheaper as compared to the
products available in other departmental stores and also, they are having wide range of varieties.
The return policy is also hassle-free.

Competitive Advantage of V-Mart: VM adopted the business model to run their activities
smoothly. This process includes four steps as follows: Manufacturing Capacity; Strong Logistics;
Products; Retailing The goods' dispatch and purchasing area has certain salient features which
include: --Multiple counters with trolleys to carry the items purchased. -Proper display / posters of
the place like (Kids Wear, Grocery, and Stationary etc.) Three Layer Security Checks. -No. Of
Parallel Billing Counter -Retail Exchange Software Solution – PRIL-Integrated with SAP & ERP.
They focus on layout of the stores and positioning, presentation and display of merchandise, in
order to appeal to the customer. V-Mart 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.

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