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A THESIS ON

―A COMPARATIVE ANALYSIS ON THE IMPACT OF ORGANIZED RETAIL STORES ON EXISTING SMALL DOMESTIC ESTABLISHMENTS IN VADODARA CITY WITH SPECIAL EMPHASIS ON FOOD, GROCERY AND APPAREL PRODUCTS‖

SUBMITTED BY ENROLLMENT NUMBER UNIVERSITY ID SUBMITTED TO

: : : :

KARAN KAPOOR 8NBVD059, SEM - IV 0801212842 Mr. AMOL RANADIVE

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A THESIS ON
―A COMPARATIVE ANALYSIS ON THE IMPACT OF ORGANIZED RETAIL STORES ON EXISTING SMALL DOMESTIC ESTABLISHMENTS IN VADODARA CITY WITH SPECIAL EMPHASIS ON FOOD, GROCERY AND APPAREL PRODUCTS‖ By KARAN KAPOOR 8NBVD059 SUBMITTED TO: Mr. AMOL RANADIVE A Report submitted in partial fulfillment of The requirement of The MBA PROGRAM (The Class of 2010)

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CERTIFICATE
This is to certify that the Management Thesis titled

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_________________ of the MBA Program (The Class of 2010) embodies original work done by me. Signature of the Student Name (in Capitals) Enroll Number Campus : ________________________________________________ : ________________________________________________ : ________________________________________________

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...42 Analysis…………………..……………………….7 Introduction………………………………………………………...……….44 Conclusion…………..54 References……………………………………………………….……………….…………………….……………………………………….11 Review of Related Theoretical Concepts……….…….5 Summary……………………….……40 Research Methodology…………….61 4 .TABLE OF CONTENTS Acknowledgement……………………………………………….53 Appendices……………………………………......8 Objectives…………………………………………………………10 Review of literature………………………………………………. ……………………………………………50 Recommendations / Suggestions….6 Abbreviations…………………………………………………….…………………………………....

I am deeply indebted to them. I am indebted towards him for taking time from his very busy schedule to guide me at every stage. I have learnt this over the years from great number of people. Knowledge is of no use.ACKNOWLEDGEMENT I am thankful to Mr. Special thanks to all my instructors in life. I am grateful to almighty God. Karan Kapoor 5 . He not only guided me throughout the project but also gave me a constant encouragement. AMOL RANADIVE. grocery and apparel products”. Also my sincere gratitude and thanks to all the respondents for their valuable support and cooperation. RANADIVE has provided me constant support and complete independence in conducting the project. faculty supervisor who has helped me and encouraged me in doing Management Thesis on – “A comparative analysis of the impact of organized retail stores on existing small domestic establishments in Vadodara city with special emphasis on food. who have contributed in shaping my career. Mr. because he has given me strength and wisdom for the study. unless you know the way to express it. which instilled in me a confidence to make the best out of this project.

6 .  I critically analyzed the impact of organized retail stores on small domestic establishments. All these analytical information is subjected to the conclusions following justified interpretation of the results drawn from the statistical tools.  The collected data has been categorized and presented in to the meaningful diagrammatic presentations following its proper classification.  To collect this particular type of data a questionnaire was been administered to take the personal interview of the small retailers of Vadodara. the data has been compiled and analyzed with the help of various statistical tools to draw conclusion out of mathematical data. I used questionnaire as a tool which helped me in this management thesis.SUMMARY  From this management thesis I came to know about organized and unorganized retail stores.  After collection of the desired data.  In order to get quality information.

ABBREVIATIONS SKU MBO - Stock Keeping Units Multi Brand outlets FDI GDP FMCG RPG C & C stores ET PRIL RRL LVMH - Foreign Direct Investment Gross Domestic Product Fast Moving Consumer Goods Ramah Prasad Goenka Cash & Carry Stores Economic Times Pantaloon Retail India limited Reliance Retail Limited Louis Vuitton Moet Hennessy Group 7 .

Imagine yourself walking through the air conditioned lanes smelling fresh food and groceries. Food retailing has come of age from a period when food items were sold in small road side grocer shops & mandis. experiencing five star ambiences and above 8 . especially in terms of food. The food industry is on a roller coaster ride as Indians continue to have a feast.INTRODUCTION Retail is being hailed as India‟s industry of the future. The paper on “FOOD RETAIL – AN EMERGING FACET” maps out the Background of food retailing as well as current scenario catching up the retail front. incited by the country‟s huge urban middle class population. particularly in untapped markets like rural and semi-rural areas. Food and grocery is the second-largest segment of the retail industry and the potential for new entrants in this segment is enormous. From simple trading activity. haats and bazaars by vendors to a stage when food products (processed and groceries) are retailed through supermarket stores where consumers can inspect. Growing at the rate of 30%. food retailing is now heading to the status of an industry. enjoying light music. select and pick up the products they like in a comfortable ambience and still pay a fair price for the product and the merchandise and sometimes even pay less than the price they would have paid at the nearest food stores. fuelled by large disposable incomes – the food sector is witnessing a remarkable change in consumption patterns. Instead. it is a pleasurable experience. up-and-coming multiple formats of food retail. Shopping for groceries is no longer a strenuous and uncomfortable affair. the Indian food retail is going to be the major driving force for the retail industry.

Food retail has surpassed the dominating apparel and accessories sector. worth Rs 8. food & beverages is the major segment.all buying food products (vegetables. Chairman. 9 . There is an old industry saying that ―CUSTOMER IS KING‖ retailers today had updated that saying to ―CUSTOMERS IS THE DICTATOR‖ because of fierce competition. at the Indian Retail Forum held in Mumbai. "Contrary to the belief that fashion is the largest segment of organized retail in India.000 crore. Technopak. spices and beverages) without bargaining with the vendors.97." said Arvind Singhal. new technology and business practices the market power of customer is strong and growing stronger.

theories.  In this thesis. profit.  To apply the theoretical knowledge gained throughout academic curriculum.  To know various initiatives taken by small domestic establishments to counter competition.  To understand the strategies adopted by the organized retailer in India for maximum market penetration.  To examine its impact on unorganized retailer with emphasis on revenue.OBJECTIVES  To understand the structure of the unorganized retail and organized retail. which I have learnt till date. 10 . employment and level of competition. management concepts and models to the corporate world and find solutions to problems/issues. I shall apply my best knowledge.  To study the market share of retailers existing in the market.

the retail business in India is estimated to grow at 13 per cent annually from US$ 322 billion in 200607 to US$ 590 billion in 2011-12. The first involved complete survey of previous work published. 11 . The new organized retail segment has been posing a severe threat to these grocery stores existing since centuries in form of Haats in the Indian markets.000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. Stage: 2 Literature Search The real GDP is expected to grow at 8-10 % per annum in the next five years. of India since 1990s. the domestic establishments (Kirana Shops) in India have been facing a tremendous competition in terms of customer retention and expanding their reach to new customers. The study will also help the domestic establishments to understand and optimize their service strength and become polymorphic to sustain against this growing giant.REVIEW OF THE LITERATURE The research process involved a two tier process. Consequently. collecting primary data for analysis from existing small domestic establishments. The study is aimed to find a solution about estimating the degree of dominance that this upcoming organized retail segment is going to establish over small domestic establishments. in my case survey of articles and second. 90. The development of the literature review requires four stages as follows: Stage: 1 Problem Formulation With the increased globalization and liberalization policies adopted by the Govt. As a result. the consuming class with annual household incomes above Rs.

 Hence.  local kirana stores.  Given the relatively weak financial state of unorganized retailers. this sector alone will not be able to meet the growing demand for retail. indicated their preference to continue in the business and compete rather than exit.  supermarkets.  The majority of unorganized retailers surveyed in this study. and the physical space constraints on their expansion prospects.  Displaying the merchandise in an effective manner so that consumers find it easy and attractive to buy.  food joints. Retailers compromise of  street vendors.  This represents a positive sum game in which both unorganized and organized retail not only coexist but also grow substantially in size. 12 .A research conducted by ICRIER shows  The unorganized retail sector is expected to grow at about 10 per cent per annum with sales rising from US$ 309 billion in 2006-07 to US$ 496 billion in 2011-12.  Developing good assortment of merchandise. organized retail which now constitutes a small 4% of total retail sector is likely to grow at a much faster pace of 45-50 % per annum and quadruple its share in total retail trade to 16 per cent by 2011-12. Organized Retailing Involves:  Understanding the needs of the customer.

This concept is still popular in B-class and II Tier cities of India and giving employment to thousands of its inhabitants. Escorts group in the late eighties diversified into non-auto sectors by getting into agri business or food business. wheat. Traditionally. Such produce is deemed to be of low product quality. These stores used to cater to the local people. The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. With the passage of time new entrants moved on from manufacturing to pure retailing. from their neighborhood baniya. Initially the food retail format was seen in A-class cities like Mumbai. rice etc.  airlines. 13 . The majority of food and food products were and still are retailed through neighborhood kirana (baniya) stores. saloons. Until the late 1990s. The economy began to open up in the 1980s resulting in the change of retailing. S Kumar's.  direct marketers. etc. Raymonds. Bombay Dyeing. pulses. Delhi.  video kiosks. Later Titan launched retail showrooms in the organized retail sector. The first few companies to come up with retail chains were in textile sector. The majority of fresh produce is sold from the carts of traveling vendors. Indians were used to buying their sugar. Chennai which had co-operative stores like "Apna Bazaar" in Mumbai and "Kendriya Bhandar" in Delhi. food retailing has been a typical kirana store has a retail area of 200 sq ft and sells 500 to 800 stock keeping units (SKUs). variety and hygiene. Both were very successful and are operating many outlets in all strategic localities in the city. It came out with first "Nanz" store at South Extension in Delhi in 1990. for example.  vending machine operators. etc. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission.  automobile showrooms.

back-end operations. The reason being that most entrepreneurs who started organised retail came from southern India and the cost of real estate in the southern region was less than other regions (particularly north and west). however. addressing the needs of the population in the area and being the point of contact with the consumer. organised food retailing has emerged across the country. The retail industry in rural India has typically two forms: "Haats" and "Melas". bread and baked products. toothpastes and some creams. These include Food World. The distribution networks of brands extend right upto this point to stay in touch with customer needs and preferences. It has thoroughly experienced the food retailing in various formats such as the supermarkets. sweets. These small stores cater to the needs of their own local population and travelers who stop by for a smoke or a snack. distribution channels. A lot of them function as paan and cigarette outlets with tea and coffee sometimes also offered. and Big Bazaar. The small local stores have dominated Indian retailing over the decades and are present in every village and local community. west and east as well as the success of some nonfood retailers and food services companies in these regions. India like most other countries has a very large network of local stores. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Nilgiris. Planet M and Music world in Music. mergers and acquisitions and huge investments. etc. chocolate. Many of them also sell fruits like bananas and a range of toiletries and cosmetics like soaps.The kirana stores focus on dry food products because the infrastructure for cold storage was lacking. Margin Free. Eventually hypermarkets and supermarkets emerged. shampoos. Southern India has been witnessing revolutionized activity in food retailing. soft drinks. hypermarkets and neighbourhood stores. Crossword in books entered the market before 1995. technology. 14 . You will find these in almost every village and locality. inspired by the presence of high potential markets in the north. The evolution of the sector includes the continuous improvement in the supply chain management. Since then. Retail outlets such as Foodworld in FMCG. Subhiksha. this would finally lead to more of consolidation. Besides this these stores stock and offer small eats and soft drinks including biscuits.

Fruits and vegetables that are perishable are usually maintained and offered by exclusive vegetable stores and not by the normal groceries. They also have a very good understanding of requirements of the local population and have very low overheads enabling them to offer the best price for their products. Coca Cola. Looking Ahead  Many strong regional and national players emerging across formats and product categories Most of these players are now geared to expand far more rapidly than the initial years of starting up Most have regained / improved profitability after going through their respective learning curves. Demography Dynamics: Approximately 60 per cent of Indian population below 30 years of age. This network is very large and spread all across India. It does however represent a network since large consumer product companies like Unilever. They are points of news and connection. 15 . a fruit and vegetable shop and a paan and cigarette shop. These small stores are very personal and have strong relationships with the local population. ColgatePalmolive. They offer credit to the local population and help out in times of crisis.  The Indian Retail growth can be attributed to the several factors including 1. Cadbury. Every fair sized village is likely to have at least one grocery store. reality points the other way and it is likely that these stores will continue even in the next two decades. Procter & Gamble. While it is commonly believed that the new retail chains will drive these small stores out of business. It is not really a network since each store is individual or family owned and has no connection with the other. Pepsi and ITC uses them as their final point of retail to the consumer.

fruit and vegetable outlets. Consumer Durable Goods. choice and value for money the set-up of retail format is changing. Double Incomes: Increasing instances of Double Incomes in most families coupled with the rise in spending power. Coimbatore. Ahmedabad. Investment Opportunities Potential for Investment: The total estimated Investment Opportunity in the retail sector is around US$ 5-6 Billion in the Next five years. Mumbai. These are giving an opportunity to various other retail formats: 16 . These outlets include neighbourhood kirana stores. Bangalore. Chennai. Delhi. Food and Grocery etc. which make up the daily consumption basket. dairy booths and chakkies (small flour mills).2. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. which is very time-consuming and unproductive way of shopping for food. 4. Location: with modern retail formats having made their foray into the top cities namely Hyderabad. consumers need for convenience. Urbanization: increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. 3. bakeries. Nagpur there exists tremendous potential in two tier towns over the next 5 years UP-AND-COMING FOOD RETAIL FORMATS With the changing food consumption patterns. With changing lifestyle there is growing scarcity of time. Plastic Revolution: Increasing use of credit cards for categories relating to Apparel. and convenience in food shopping is emerging as an important driver of growth of one-stop retail formats that can offer consumer 'value for time' in addition to 'value for money'. Pune. The Indian consumers do visit about eight to ten outlets to purchase various food products.

These needs translate into 'more width' and 'more depth' in each category.A. B. Trinetra and Nilgiri's. Spencers (RPG). Big Bazaar (Pantaloons). monthly and occasional needs. Metro has started the first C & C store in India in Bangalore. available at wholesale prices. D. Margin Free in Kerala and Subhiksha. The outlets closest to a neighbourhood store in India are 'Safal' outlets operated by Mother Dairy in Delhi. The members are typically retailers and institutions. ft.000 to 100. Neighborhood Stores In India about 90% of food purchases are made within a distance of 1. This means that an organised retailer would need to have a 'neighbourhood store' close to customers in order to capture the share of wallet that is spent on food.5 km from the customer's home. The key added values for the customer are 'choice' and 'value for money' because products are sold at a discounted price. These stores would cater to the consumer's daily and weekly needs. These stores cater to the consumers in a catchment area with a radius of 3 to 4 km and therefore need to be destination stores. The typical area of a C & C store is 70.000 sq. 17 . Examples of supermarkets already in India are Food World. C. The hypermarkets model of food retailing is new to India. The key added value is a wide range of products under one roof. and both food and non-food products are stocked. Star India Bazaar. Supermarkets This format caters to the consumers' need for choice and variety. Hypermarkets Hypermarkets are essentially destination stores catering to the consumers' bulk shopping needs in both food and non-food categories. A supermarket can cater to the consumers' weekly. Cash & Carry (C & C) Stores These stores sell their products to their members only.

Retailers' entrance in the unbranded food space Modern food formats like Food Bazaar and Spencer's have their eye on the unbranded part of the consumer's shopping basket. More and more corporate houses such as HLL.000 crore sales in a couple of years with around 200 outlets. Dabur’s Amit Burman has also forayed into food retailing. ITC. Margin Free. Huge increase is expected from the corporate players. says AC Nielsen estimates. Godrej and Reliance are already working into food retail. According to Amit "Food and beverages retailing is a very attractive segment and with Lite Bite Concepts we are targeting Rs 1. 18 . Sabka Bazaar. Varkey's." Well-established players such as Subhiksha. all of which are more or less spread in the Southern region. Giant. This constitutes as much as 60% of the total purchases and growing sharply. while trying to match their expanding geographies with retail formats. Also. Food Bazaar and Spencer's Daily are also tapping into backward linkages. The government is also considering the opening up of the $330-billion retail market with adequate provisions to protect neighborhood stores. which will help grow the entire food retail sector. Our farmers must also get benefits of economic liberalization”. Big Apple has a presence only in and around Delhi. while Adani is Ahmedabad-centric. names such as Haiko and Radhakrishna Foodland are Mumbai-centric. Retailers are offering a package of convenience and freshness.KEY DEVELOPMENTS IN RETAIL The major development in food retail is consideration of Foreign Direct Investment (FDI) with a limitation that all companies would have to meet mandated export obligations. most food retail players have been region-specific as far as geographical presence is concerned. and have an edge over manufacturers that focus mainly on packaged conveniences. It should be in such a way that it would boost our agriculture. Take the RPG Group's FoodWorld. In every retail format food trade is growing. Nilgiris. Food processing minister Subodh Kant Sahay told ET that “We are considering a proposal to allow FDI in food retail.

Retail players would also benefit from an efficient supply chain inventory management.Food retailers are offering 'live kitchen' formats. 19 . access to the right locations and the ability to manage the supply chain efficiently will be critical success factors for the new entrant. FOOD RETAIL AND ITS STEPPING STONES Rising Investment There are strong opportunities in food retail as a result of encouraging changes in consumer purchasing patterns. cooked rice and kneaded dough with options like grinding coffee fresh at store. ft. which offer on-thespot home-style gravies. FDI Policy for Retail Gates have been opened up for single brand retailers. Emergence of Logistic Providers The present lack of logistic support exposes the need for an integrated logistic provider. dal. idli batter. Organized food retail presents a unique investment opportunity for corporates looking to diversify. the availability of real estate and supply chain development. A good understanding of consumer. shopping centers and multiplexes under construction. curd and cut vegetables. paneer. As retail activity gathers momentum and large quantities of perishables are sold in modern formats.  300 malls. In February 2006. the logistic service providers would have a crucial role to play in bridging the supply gap.  7 major cities to account for 41 million sq ft development. of quality space under development. the door was opened to some extent when the government allowed 51% FDI by single brand companies subject to government approvals. INDIA RETAIL BY 2011-12  50 million sq.

strengths and scope with performance of key players in each segment and explores new emerging segments that have potential for new and existing players. R S Roy.  Department Stores Large stores having a wide variety of products. toys. carry most of the brands available. house wares. 325 large department stores. The study required a thorough understanding of the world market. furniture. retailing and the services sector that had direct or indirect impact on consumer spending." Major Formats of In-Store Retailing  Branded Stores Exclusive showrooms either owned or franchised out by a manufacturer. Complete range available for a given brand. To add US $10 billion of business to organized retail. One stop shop catering to varied/ consumer 20 . Briefing on the report Mr.  Specialty Stores Focus on a specific consumer need. etc. strategies and emerging trends and the evolution of Indian retail across multiple segments. organized into different departments such as clothing. certified product quality.000 new outlets. appliances. IMAGES Group said that the presentation of India Retail Report 2009 required a yearlong interaction with over 1000 companies representing the entire gamut of manufacturing.     To open 35 hypermarkets. Greater choice to the consumer. "Supported with the findings of various research reports of IMAGES and KSA Consumer Outlook study the India Retail Report 2005 presents size. major players. comparison between brands is possible. Editorial Director. 1500 supermarkets and Over 10.

Variety of shops available. Low Prices  Hyper. Formats Adopted by Key Players in India 1) Retailer 2) Original formats 3) Later Formats RPG Retail Supermarket (Foodworld) Hypermarket (Spencer's)Specialty Store (Health and Glow) Piramal's Department Store (Piramyd Megastore) Discount Store (TruMart) Pantaloon Retail 21 .  Supermarkets Extremely large self-service retail outlets One stop shop catering to varied consumer needs  Discount Stores Stores offering discounts on the retail price through selling high volumes and reaping economies of scale.mart Larger than a supermarket. Convenient location and extended operating hours. vast choice available including services such as cafeterias. all under one roof. sometimes with a warehouse appearance.needs.  Convenience stores Small self-service formats located in crowded urban areas.  Shopping Malls An enclosure having different formats of in-store retailers. generally located in quieter parts of the city Low prices.

Small format outlets (Shoppe) Department Store (Pantaloon) Supermarket (Food Bazaar) Hypermarket (Big Bazaar) Mall (Central) K Raheja Group Department Store (shopper's stop) Specialty Store (Crossword) Supermarket Hypermarket Tata/ Trent Department Store (Westside) Hypermarket (Star India Bazaar) Landmark Group Department Store (Lifestyle) Hypermarket Others Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket (Nilgiri's), Specialty Electronics Road Ahead- Plans of Large Retailers Reliance Retail: investing Rs. 30,000 crore ($6.67 billion) in setting up multiple retail formats with expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10. Pantaloon Retail: It Will occupy 10 mn sq. ft retail space and achieve Rs.9,000 crore-plus ($2 bn) sales by 2008. RPG: Planning IPO will have 450-plus Music World, 50-plus Spencer's Hyper covering 4 mn sq. ft by 2010. LIFESTYLE: Investing Rs.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value retail stores, home and lifestyle centres.

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Raheja's: Operates Shoppers' Stop, Crossword, Inorbit Mall, and 'Home Stop' formats. Will operate 55 "Hypercity" hypermarkets with US$100 million sales across India by 2015. Piramyd Retail: Aiming to occupy 1.75 million sq.ft retail space through 150 stores in next five years. TATA (Trent Ltd.): Trent to open 27 more stores across its retail formats adding 1 mn sq.ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2006.

INDIAN PLAYERS
1- Pantaloon retail India limited (PRIL)

Renamed itself as "FUTURE RETAIL'' in march 2006, as part of its restructuring and expansion plans. Headed by Kishore Biyani include pantaloons. Big bazaar, food bazaar, gold bazaar and the central mall. The first menswear pantaloons outlet was set up in 1992. The company sold products under the bare denim, springboard, Lombard and John miller brand names. Pantaloons offered a wide range of clothing options to Indian consumers. It stocked garments, accessories and life style products. The target audience for pantaloons was upper and middle class urban population in India. Customer feedback and customer satisfaction were the key focus at PRIL.
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Company relied heavily on IT for collecting customer data and opinions .PRIL realized the potential of huge middle class population in India, apart from retailing lifestyle products, it ventured in to BIG BAZAARin 2001 PRIL opened its first big bazaar, which had an area of 30,000 sq ft. in Kolkata .the major USP of the big bazaar store was low prices and the best price proposition being offered to customers. The caption used in the promotion – is se sasta aur accha kahin nahin (cheaper and better than this? nowhere else!) indicating value for money stores. Big bazaar stocks over 2,00,000 products that include apparel, food products, home appliances, and cosmetics. Product are cheaper than the the market price by as much as 5-60 %, apparel are cheaper by 25-60%.

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restaurant. Due to its focused Marketing and merchandising strategies.RPG GroupThe Ramah Prasad Goenka group – one of the entrants in to the organized retail sector in India .20 %. PRIL also ventured in to online retailing by launching its e-retail portal. resulting saving and saving passed on to the customer. It had over 50. the food bazaar stores soon became popular among customers. besides stocking vegetables and fruits. in may 2006 . Each central mall has different departments for home Products. Food world stocks almost 5000 items. In 2005 PRIL had three central malls located at Hyderabad.000 stock keeping units that covered a range of products like cereals. PRIL‟s central malls are targeted towards the up-market segment of urban population. futurebazaar. juices. from warehouse the products than be distributed to individual food world.with the launch of this online shopping portal. Most products were sold at Discounts ranging between 2. The caption used in the promotion campaign of food bazaar was – “ab ghar chalaana kitna Aasaan” ( now. Food world has been growing at an annual growth rate of 30 % over last 5 years. milk products and FMCG products. beauty parlors. The first food bazaar store was set up in the lower parel region of Mumbai. In each outlet. Food represented PRIL's foray in to yet another value retailing business. food. making it the largest food & grocery retail chain. They launched the 'FOOD WORLD' chain of grocery stores in 1999. Bangalore & Pune. Rediff. By 2005. In addition to big bazaar.com. leisure. which focused on food and grocery products. PRIL also started 'FOOD BAZAAR' in 2001. This shortens the distribution channel. a pub and a nightclub. PRIL planned to invest Rs 150mn and hoped to earn Rs 3 bn from the venture. providing quality 25 . sugar. there were more than 90 Food world stores across India. To counter competition from leading e-commerce portals in India like e Bay. Suppliers can deliver products directly to warehouse. health. 2.The success of PRIL comes from cheaper sourcing of products and lower distribution costs. it is so easy to run a house ). The stores were designed based on PRIL's understanding of the domestic needs of Indian housewives. Fabmall and Indiatimes. fashion. rice. pulses.

electronics. food items. Spencer’s Super: one of the largest supermarket chains in the food and grocery segment in India. RPG too used IT for running operation smoothly and also hi. Operations Spencer‟s has retail footage of over 2 million square feet and over 400 Spencer‟s storesin65cities.tech Cash registers and bar – code scanners. Spencer‟s Retail is one of India‟s fastest growing retail stores with multiple formats and retailing food. Spencer's hypermarket stock a wide range of products right from groceries. garments and consumer durables. music and books. Spencer’s Daily: small format stores conveniently located with a range of products to meet your daily household needs. Lucknow. RPG also owns spencer's hyper market – a chain of retail hyper market in India. Vijayawada. Spencer‟s has become a popular destination for shoppers in India with supermarkets. Gurgaon. fresh food. Hyderabad. Aurangabad Durgapur and Kolkata. Ghaziabad. Vizag. Spencer’s Express : your food and grocery store next 26 . home needs. lifestyle products. apparel. The company operates through the following formats: Spencer’s Hypermarkets: A fast growing retail network of hypermarkets with large format stores in Mumbai. Calicut. Established in 1996.goods at lower costs. hypermarkets and dailies spread all over India. fashion.

makes working with RPG an enriching experience. well experienced in their respective fields. Transmission. established in 1979. Anticipation. Values RPG‟s business ethics promote higher levels of excellence. Tyre. Its members are highly qualified professionals.RPG Enterprises. Quality For RPG quality determines success. Passion for Superior Performance. People Orientation. Carbon Black. Management The RPG Management Board is the backbone of the conglomerate. Transparency & Integrity. Speed and Flexibility propel it to perform and excel in all spheres of the business. growing returns and a reputation to reckon. Wide-ranging businesses. Where entrepreneurial skills are valued. Continuous process improvements 27 . excellence is the by-word. Innovation & Entrepreneurship. Retail and Entertainment. IT.25 billion. The group has more than twenty companies managing diverse business interests in the areas of Power. is one of India‟s fastest growing business groups with a turnover touching USD $3. and performance is a prerequisite. The group‟s values of Customer Sovereignty. Speciality.

000 sq ft in size. The group regularly contributes toward the welfare of various social groups and is involved in promoting social activities in the field of sports and arts. 28 . there were 16 west. believing in giving back to the community what it has gained from it.Tata Group The group started its Retail Business in 1998 with the purchase of the little woods Retail stores.launched in 1997 is another RPG retail venture.are carried out to ensure complete satisfaction of customer and market requirements. audios. originally owned by a UK based firm. 3.ft in size. largest music retail chain in India with over 170 outlets.the health & glow outlets offer cosmetic and medicinal products and services. MUSIC WORLD. Beyond Business RPG is a socially responsible organization. Launched in 1997. The company was renamed Trent limited and the littlewoods store was called westside. all under one roof. It stocks music videos. As of 2005. The Westside outlets are in apparel stores a cross India about 20. the store ambience and presentation of products have contributed strongly to music world's success. 'Health & Glow'.side stores across India about 20. accessories etc.joint venture between RPG & Dairy farm international.it is the first retail chain catering exclusively to the health and beauty requirement .000 sq .

toys and other gift items. music and gaming from leading brands such as Apple. Infiniti Retail / Croma: Deals with consumer electronics and durable products under the retail outlet brand name Croma. Titan's series of watches included Fastrack.000 sq. India's largest book and music retailer. fruits. Tata‟s acquired 76per cent stake in Landmark. ft. Edge. Kenstar. Offer quality products with latest designs. Competitors of Titan are HMT and TIMEX. software.The Westside out lets are in appored and accessories retailing and offer international shopping experience with value for Money. communication. Canon.000 sq. greeting cards. Sonata. beverages. Croma is set to expand all over the country with at least 100 stores by 2011. these outlets offers a wide choice of staple food. Sonata was targeted at middle class consumer. With the backing of technical and sourcing collaboration with Australia‟s retail major Woolsworths. Landmark: In 2005. Godrej. Croma offer products in home entertainment. These divisions are further classified in to seven departments (catering to men. white goods. Titan industries established in 1984. stationery. one apparel division and other product division. 3 in Chennai and 1 each in Bangalore. 29 . Titan market its range of watches under the 'Titan' and 'sonata' brands and hold a 25% market share in watch industry . Sony. Landmark‟s product profile includes books. Nebula. vegetables. Presently there is only one 50. computers. Started in 2004. ft. LG. kid's wear and needs) Star India Bazaar: A hypermarket with a large assortment of products at the lowest prices. varying in size from 12. health and beauty products. dairy products. Gurgaon. Regalia.000 square feet store in Ahmedabad and plans to extend its presence across all major metros. who is both price conscious and quality conscious. Each Westside store has two divisions. The company would be investing upto Rs 4 billion for this venture.it is India's leading watch manufacturer and retailer. women. consumer electronics and household items. Mumbai and Vadodara. music CDs. Bandan and Steel. appliances. to 45. Raga. At present Landmark has 7 stores.

coffee shops and book stores to give consumers a complete shopping experience. specialty stores and convenience storess . C & MD. It is based in Chennai and has a strong presence in southern India.a cargo management and logistics solutions provider. 4-K. Europe. 2006. Reliance industries limited. on Jan 07 launched its foray in to the retail sector.Titan entered in to jewelry segment under the brand name 'Tanishq' in 1995. 30 .B. opening the first of its retail store. accessories. Gati has targeted the opening of 100 'Cafe d'eliver' by march 2008 to offer various services like fax. Australia. Tanishq jewelry is sold exclusively by 69 outlets spread over 53 Indian cities and also exported to US. document photocopying. 8. perfumes and cosmetics. They launched Shopper's Stop in 1991 & its outlets stock apparel. Reliance also had plans to open restaurant outlets within its stores.which has acquired supermarket chain TRINETHRA has ruled out partnering foreign firms in its bid to be among the country's top retailers. vegetables.A. groceries and dairy products. household items. Crossword Bookstores Ltd. internet browsing in addition to own cargo services. and Middle East.is a chain of food and pharmacy discount retail stores. 7. announced his plans to foray in to the retail sector with an initial investment of US$ 5. RIL launched its first retail store 'RELIANCE FRESH' at Hyderabad. In Nov 2006. 5-RRL (Reliance Retail Limited)On june 26. 6.a subsidiary of Shopper's Stop in book retailing business has 22 stores across India. hypermarkets.Raheja Corp.SUBHIKSHA. calling and printing. mukesh Ambani.Gati.Birla Group. Group of CompaniesIndia's largest real estate players.6 bn. The store catered to consumer needs by providing fresh fruits. RRL was expected to have its presence across India withdifferent retailing formats such as warehouse clubs. 'Cafe d'eliver' in Hyderabad on 6 Jan 07. supermarkets.

is to set up a retail operation in India. which the company introduced in the mid-1990s. Murjani forged a separate deal with The Warnaco Group.. crafts and party products through exclusive Disney Artist stores in India . stationery. RJ Corp will sell as vast range of Disney character-led products aimed at the kids and youth categoryThe Ravi Jaipuria held company RJ Corp has signed an exclusive master franchise agreement with Disney Consumer Products to source and market Disney character branded cards. Under the Disney Artist brand in India. It includes the original Calvin Klein Jeans line and the unisex ck Calvin Klein label. Murjani India. crafts and party products through exclusive Disney Artist stores in India .DISNEY ARTIST STORESThe Ravi Jaipuria held company RJ Corp has signed an exclusive master franchise agreement with Disney Consumer Products to source and market Disney character branded cards. The first of the stores is to open in Mumbai in January 2007. arts. stationery. a subsidiary of the Murjani Group. focuses on attracting international brands and retail concepts to India. The agreement authorises Murjani to market the Calvin Klein lineup through exclusive retail outlets and select department stores approved by the company. The first of the stores is to open in Mumbai in January 2007.9. 10. The broad plan is to open at least 40 Calvin Klein-branded stores during the first five years of the operation. a New York-based apparel company. 11.is a Kerala based chain of discount stores.CALVIN KLEIN. with construction beginning as early as March 2007. MURJANI GROUPCalvin Klein Inc. The clothing empire and Murjani India Ltd. 31 . arts. have announced an agreement for the latter to market and distribute the brand's various labels throughout India and open dozens of retail stores planned for the subcontinent. the clothing design and marketing studio formed in 1968. granting Warnaco exclusive rights to distribute the Calvin Klein Underwear line of products in India and supply Calvin Klein Jeans to Murjani.MARGIN FREE.

the store offers extensive range of men's.000 sq.500. gifts and novelties. “They have positioned themselves on the value-for-money platform which is a strong property and will help them attract consumers quickly.000 that households spend every month on food and toiletries. fashion accessories. chief operating officer.000 square feet in size.” To be able to sell to customers at attractive prices.000-3. It hopes to attract a large portion of the total food and grocery spends.” he says. And home delivery to boot. “We offer the lowest prices across products. RJ Corp will sell as vast range of Disney character-led products aimed at the kids and youth category 12 -Vishal Group . perfumes. digital diaries. The shops are not air-conditioned and about 1. electrical appliances. Subhikhsha needs to 32 . which are estimated to be as much as 40 per cent of total spends.” What Subhikhsha believes will work for it are the attractive prices that are available throughout and not just on some days of the week. women's and kids' range of fashion clothing.Under the Disney Artist brand in India. can‟t turn back.2. That‟s going to be the long term differentiator. Currently. SUBHIKHSHA Subhiksha‟s taking on the „kiranas‟ and targeting the Rs 2. not just on 50 or 100 items and we‟re cheaper than supermarkets or kiranas. Beside fashion attire. Says he.000. Our customers should easily be able to save around Rs 700-800 every month on a bill of Rs 4. Vishal Mega Mart operates 29 fully integrated and self-owned stores spread over a total shopping area of 5.”Our outlets are not destination stores like those located in malls. He‟s also clear that the chain does not intend to target the more affluent households. Most do not allow consumers to walk around and browse. likes the strategy. sunglasses. Some of the stores also stock medicines and telecom products. Spread over 25.ft. Subhikhsha‟s value proposition: provisions that are a good 10 per cent cheaper than those available at the „kiranas‟. consumers have to walk down a single aisle and in many shops.70. cosmetics and grocery items etc. Gibson Vedamani.launched their first hyper market Vishal Mega mart in Udaipur this month. Says Khattar.ft in 21 cities across India. Retailers Association of India.000 sq. it will also have separate sections and counters for watches.

supermarkets.is a French retail group that operates networks of hypermarkets.CARREFOUR SA . principal associate. has been overwhelming and there have been times when stores have run out of stocks.3 million square feet. “Subhiksha largely caters to a segment driven by price. the company has a total floor space of 1. the demand.google. In fact.com). says Khattar. For the year ended Jinuary 2006. It is also the largest employment provider in USA. Carrefour had revenues of 74. But if the company can scale up quickly. 2.” he observes. Says Harminder Sahni.93 bn and a net income of 2.it has to scale up before hypermarkets enter the game as they will offer consumers both the experience and good prices. As of now though.google.is the largest retailer in UK. USA.build scale quickly. convenience stores and cashand – carry outlets.25 million square feet.it tied up with Bharti mittal group to launced its product in India.” Vedmani agrees.He‟s busy making sure that the shopshelves are full. Arkansas.com) 3. it hopes to be able to increase this by at least two and half times to around 3. discount store. by the end of 2008-09.is the largest retailer in the world and is based in Bentonville. KSA Technopak.TESCO Plc. the group's sales were 57.49 a net income of 1. Hypermarkets could be cheaper and Subhiksha will be squeezed between the experience stores and the hyper markets. Industry experts point out that since the company is not banking on experience shopping and relies on its low-cost advantage . For the year ended February 2006.58 bn (source: finance. Subhiksha‟s stores are doing brisk business.65 bn and a net income of US$ 11.31 bn (source: www. it will be able compete with the new entrants.com) 33 . Wal-Mart had revenues of US$ 315.Wal-Mart Stores Inc.hoovers. for the year ended december 2005. “When hypermarkets enter they will pose a huge threat. Today. That should make sure the stores too are full.23 bn (source: finance. FOREINGN PLAYERS IN RETALING— 1.

despite the restriction on FDI.Rosy Blue Group . Unorganized Retail  In the developed economies. It was reported that Tesco had plans to enter the Indian retail market through a joint venture through Homecare Retail Mart Pvt. for opening 50 stores by 2010. STAGE: 3 DATA EVALUATION Organized vs. This included franchising.the world's largest Diamond manufacturer is planning to invest Rs. whereas in developing economies.4.900mn in setting up 40 exclusive ORRA Diamond Jewelry showrooms in India. the well known watch brand from the Louis Vuitton Moet Hennessy (LVMH) Group is planning to include India among its top 12 world markets. organized retail is in the range of 75-80 per cent of total retail. 5. 34 . strategic alliances and the wholesale trading. the unorganized sector dominates the retail business.Dior. Foreign retailers had other modes of entry in to the Indian retail market. most global players were opting for the franchisee route.Ltd. However.LVMH Group .

Consequently. whereas such forms of retail outlets have only just begun to spread to developing countries in recent years.  The study shows: The unorganized retail sector is expected to grow at about 10 per cent per annum with sales rising from US$ 309 billion in 2006-07 to US$ 496 billion in 2011-12. and the physical space constraints on their expansion prospects. As a consequence.Given the relatively weak financial state of unorganized retailers. As a result. Hence.  In developing countries. The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent in India to 36 per cent in Brazil and 55 per cent in Malaysia Modern retail formats. such as hypermarkets. supermarkets. the consuming class with annual household incomes above Rs. discount and convenience stores are widely present in the developed world. the retailing business continues to be dominated by family-run neighborhood shops and open markets. The real GDP is expected to grow at 8-10 per cent per annum in the next five years. superstores. wholesalers and distributors who carry products from industrial suppliers and agricultural producers to the independent familyowned shops and open markets remain a critical part of the supply chain in these countries. 90. this sector alone will not be able to meet the growing demand for retail. organized retail 35 .000 is expected to rise from about 370 million in 2006-07 to 620 million in 2011-12. the retail business in India is estimated to grow at 13 per cent annually from US$ 322 billion in 200607 to US$ 590 billion in 2011-12.

1 Almost reflecting the growth in the world economy. global retail sales grew strongly in the last five years (2001-06) at an average nominal growth of about 8 per cent per annum in dollar terms. The majority of unorganized retailers surveyed in this study. indicated their preference to continue in the business and compete rather than exit.which now constitutes a small four per cent of total retail sector is likely to grow at a much faster pace of 45-50 per cent per annum and quadruple its share in total retail trade to16 per cent by 2011-12.This represents a positive sum game in which both unorganized and organized retail not only coexist but also grow substantially in size. This is in contrast to near stagnant global retail sales during the previous five years. the share of modern retail has risen from about 45 per cent 36 . Grocery dominates retail sales with a share of approximately 40 per cent which varies from about 30 per cent in rich Japan to an average of 60 per cent in poor Africa.  Global retail sales are estimated to cross US$12 trillion in 2007. 1996-01.  Retail sales through modern formats have been rising faster than total retail sales.

Scalable and Profitable Retail Models are well established for most of the categories 2. Five Reasons why Indian Organized Retail is at the brink of Revolution: 1. retailers. Rapid Evolution of New-age Young Indian Consumers 3. Source: Planet Retail and Technopak Advisers Pvt.Organized retailers are the contemporary formats by which shoppers have the edge of a world class shopping experience. franchisees. of Domestic Groceries Chain and early foreign entrants.in 1996 to over 52 per cent in 2006. Fine examples of these formats are Pantaloon. India is on the radar of Global Retailers Suppliers 37 . Partnering among Brands. Shoppers Stop and Trent. Retail Space is no more a constraint for growth 4. Ltd.  India‟s growing no. investors and malls 5.

Among them few are:         Changing life styles and tastes Growing need for convenience Increasing disposable income Increasing numbers of working women Change in consumption patterns Higher aspirations among youth Impact of western lifestyle Plastic Revolution – Increased use of credit cards and debit cards Organized retail may broadly be classified into the following formats  Malls  Hypermarket  MBO’s:-Multi Brand outlets. also known as Category Killers. offer several brands across a single product category.There are various factors paving the way to revolutionizing food retailing in India. These usually do well in busy market places and Metros.  Supermarket  Discount stores  Convenience store  Departmental store  Exclusive store  Specialty store 38 .

125 1.) of Stores 2001 Area ('000 sq.2 3.3 780 23.ORGANIZED RETAIL EXPANSION BY FORMAT Average Size (sq. ft. ft. ft.0 27.000 800 30.3 1.651 26 3.0 39 .980 16.490 53.9 4.5 Format Supermarkets / convenience stores Hypermarkets Discount stores Speciality stores Department stores Total 1. No.) Total Space Space (%) (%) 11.4 2.076 30.472 1.000 400 40.349 100.7 166 4.) 400 2006 Share No.121 63.472 4. Area Share in of ('000 in Total Stores sq.612 16.8 20.751 4.000 0 48 0 48 0.693 100.000 1.751 15.0 75 3000 9.8 2.

designs the method for collecting information. analyses the results.REVIEW OF RELEVANT THEORITICAL CONCEPTS This section consists of the various concepts and business practices that have affected the project. In this step questions like “What is the purpose of the project ? ” and “ What are the objectives of the project ? ” need to be carefully addressed and sincerely answered. 2. monitor marketing performance. and communicates the findings and their implications. Concepts that have enabled us do a sound analysis from the facts assimilated are also discussed here.” “Marketing Research specifies the information required to address these issues. Here we would be reviewing the various research and analysis concepts that have been widely and prudently used for gathering vital information from customers and competitors.” Marketing Research Process The marketing research process consists of the following six steps: 1. Here after a satisfactory statement of the study‟s purpose and objectives has been established. customer and the public to the marketer through information – information used to identify and define marketing opportunities and problems. 40 . manages and implements the data collection process. Preparing a list of needed information. it is necessary to prepare a list of the information needed to attain the objectives. generate. What is Marketing Research? The American Marketing Association defines marketing research as follows: “Marketing Research is a function which links the consumer. refine and evaluate marketing actions. Specifying research objectives. and improve understanding of marketing as a process.

controlling and evaluating the members of the field force. training. Timely spot checks and reviews should be carried out to ensure accuracy and genuineness of responses. 6. This step decides about the size of the sample that can vary from fewer than 10 to more than 1000. Data needs to be tabulated and analyzed appropriately.3. either in company records or with outside sources. 5. If the required information is unavailable. who should be interviewed? and how should the data collection form be designed?. After all interviews and observations are made. As collecting information from a large population is difficult and cumbersome. He should collect data from field after duly reviewing secondary data available. The sample size depends on the accuracy needed. the researcher will have to collect information from the field for which he needs to design a data collection project. 41 . This includes answering questions like “should research be conclusive or exploratory?”. Organizing and carrying out the fieldwork. the completed data collection forms should be processed in a way that yields fruitful results. 7. 4. A large number of errors are could arise at this stage due to the large number of people involved. While preparing reports. Fieldwork includes selecting. We may select either a probability sample or a non probability sample. Analyzing the collected data and reporting the findings. Designing the data collection project. Determining the sample size. Selecting a sample type. Here the researcher determines whether such information is already available. a sample is selected and information collected. it should be ensured that the researcher‟s suggestions and recommendations are included in the executive summary. the budget available and time constraints if they apply.

RESEARCH METHODOLOGY RESEARCH METHODOLOGY RESEARCH TYPE : Random sampling RESEARCH INSTRUMENT: Questionnaire SAMPLING UNITS : Individual SAMPLING SIZE : 50 SAMPLING METHOD : Questionnaire and personal Interview method for conducting surveys intending to gather primary data. I had to do research to study a comparative analysis to find out the impact of organized retail stores on the small domestic establishments in Vadodara city. Target population: existing small domestic establishments of Vadodara. 42 . 2. Primary Data Questionnaires  Interviews of existing small domestic establishments. I completed the research activity by conducting survey. Secondary Data Internet  Books  Articles  Literature DATABASE In this thesis. INFORMATION SOURCES: 1.

Research Design: .Data Collection. The Research Type was of Random sampling and the Research Instrument is Questionnaire. The personal Interviews conducted of establishments. The method of data collection is primary data from existing small domestic establishments. some of them are as follows: VIMALESHWAR STORE RIDDI SIDDHI STORE GANDHI STORE ANKUR STORE PRATIK STORE AMUL STORE KHETESHWAR STORE SHREE KRISHNA STORE VIMAL STORE SUVARNA STORE BALAJI STORE SHYAM STORE existing small domestic 43 . Mode of communication: Personal interview with the respondent through structured direct questionnaire containing list of alternatives. the Sampling Units is Individual and the Sampling Size was 50.

What kinds of product are offered by you to customers? Name of products Fruits Groceries milk products Spices Ready to eat food Biscuits cold drinks No. remaining 10 stores are 5-6 years old.  I came to know that 15 stores are 15 years old.Analysis on small domestic establishments with special emphasis on food and grocery  I conducted survey of 25 small domestic establishments with special emphasis on food and grocery. of stores 10 30 30 20 15 30 25 44 .

of customers visit their stores on daily bases. OF CUSTOMERS less than 50 50-100 more than 100 NO.No. OF STORES 16 8 6 45 . NO.

Effect of the following factors in influencing or switching away your regular customers good aesthetic 5 4 1 prime location 5 4 1 5 3 2 friendly store person 0 1 9 selling supp gds 7 2 1 discount offer 8 2 0 high advertise 6 2 2 big brand 6 2 2 free home delivery 0 0 10 atmosphere Effect on products of small domestic establishments due to the organized retail stores ready to cook Not at all Some what Considerable 6 2 2 Milk products 5 1 4 vegetables 7 2 1 fruits 7 2 1 groceries 6 0 4 spices 10 0 0 biscuits & con 3 1 6 cold drinks 3 1 6 46 .

of services are given Credit is given Free home delivery Order taking on telephone Fast delivery Discount No.Services or facilities offered to maintain your loyal customers No. of stores 15 28 25 30 0 47 .

Analysis of small domestic establishments with special emphasis on apparel  I conducted survey of 25 small domestic establishments with special emphasis on apparel. Do you think any of the following things has happened because of organized retail stores? Not at Some all what Considerable 15 5 5 15 5 5 15 15 3 4 7 6 Decrease in total no. of customer base Frequency of purchase of individual customers Demand of more facilities like big business group shopping mall Decrease in annual turnover 48 .  I covered Raopura and Mangalbazar area of Vadodara city.

Factors influencing customers for switching High Impact Good aesthetic Atmosphere prime location Friendly store person selling supplementary ( large variety ) Discount offer high add big brand name selling other house hold offering latest wear availability of more international brand other recreational factor like parking 8 8 9 0 6 3 7 8 8 7 5 6 Some what 2 2 1 3 2 1 2 0 1 1 2 2 No impact 0 0 0 7 2 6 1 2 1 2 3 2 49 .

If we talk about the products then I can say that Biscuits. cold drinks. This becomes one of major factor going against the small domestic establishment. After learning from small domestic establishment now organized retailers are also providing free home delivery service which was earlier a distinctive service of small domestic establishment.CONCLUSION . On the other hand. this on the other hand increased customer satisfaction and loyalty.FOOD AND GROCERY During their entry phase when organized retailers came into the market somewhat they were affected at some level. customers have many options to buy a particular product. PRICE : Respondents replied that Reliance fresh is giving one rupee discount on milk and vegetables which are available at less prize ( 50 paisa ) because of their purchase from suppliers in bulk quantity as compared to small domestic establishment in order to the customers. Customers are not satisfied with the issues of exchange of products due to bad quality. 50 . milk products and groceries are the most affected as the organized retailers are offering the same services at low cost and also these products have a low profit margin. Literate Employees: In competitive scenario retailers have to maintain their loyal customers. We believe that big retailers are giving more and more services like home delivery. And in the case of exchange of products due to bad quality. After sometime the customers started to come to their stores. Nowadays. Customers now have trust on organized retailers as they visit their stores regularly. with the small domestic establishment. So they buy from those retailers who sell them at least prices. Because goods once sold cannot be taken back. providing information of products with their literate employees who have good communication skills and thus interact with the customers in a very pleasing manner. customers are not worried because organized retailers exchange the goods with a smiling face and have not kept it time bound.

The major reason behind it can be the credit services for a month or two provided by them to the customers plays a vital role in their existence. because they have already build very personal and strong relationship and bonding with their customers.apparel 51 . I can say that they are not much affected by the organized retail stores. mass advertisements. Customers are now also become brand choosy or brand conscious but Small domestic establishments keep most of their products which are local. But. they don‟t keep international brands as compared to organized retailers. if we talk about overall small retail stores. Customers of Small domestic establishments are easily wooed and influenced by discounts. CONCLUSION .The small domestic establishment which are 15-16 years old or wholesalers are not affected by the organized retail stores. as Small domestic establishments are providing fair amount of services to their customers.

So.  According to the small domestic establishments retailers of Raopura say that Raopura is prime location for shopping. Mangalbazar is not posh location so high middle class people or young people does not preferred this location to shop. as per my findings some stores are affected by the organized retail stores but not all the stores are affected. I can say that prime location plays major role for the customers. reason being young people are attracted by malls i.. On the other hand. As per my survey I can say that 15 stores of Raopura are not affected much by organized retail stores but 10 stores from Mangalbazar and mandvi are affected.  The retailers of Boutique like Trezer says that they have more party wear or fashionable apparel compare to the malls.e. 52 .  People go to malls by attraction of the discount offer on the FMCG goods so they go and just see but they dont buy the apparel from malls.  In the cases of exchange. organized retail stores.  Small domestic establishments have less variety and less volume of clothes as compared to organized retail stores. malls have time limit but small retailers are flexible enough. Customers do not get more choices from Small domestic establishments because of limited merchandise.  But.

with the small domestic establishment. This is the major reason of lagging behind in competition.SUGGESTIONS CREDIT: It is a distinctive and USP of small domestic establishment. But they can gain advantage of word of mouth publicity by providing good quality products and services. Customers are not satisfied with the issues of exchange of products due to bad quality. PRICE: Small domestic establishment should set standard market prices and not charge higher even if it is a case of 50 paise. SERVICES: On time delivery of products should be taken care of by Small domestic establishment because they lack in providing this services. So if the quality is improved so there will be no case of exchange. they should never stop giving credit to their customers. because nowadays customers are very much price conscious. MARKETING: As the Small domestic establishment does not have that much capital as in the case of organized retailers so they lack in advertising. 53 . QUALITY: Small domestic establishment should be consistent in improving the quality of goods.

which means ―to cut a piece off‖. allowing the interview to express his own thoughts rather than restricting him to the available response options. MBO .Pantaloon retail India limited Unstructured questionnaires: are usually open ended and try to probe into the mind of respondent. QUESTIONNAIRE FOR FOOD & GROCERY 54 .APPENDICES Retailing is derived from the French word retailer.Multi Brand outlets PRIL .

Name and Address of Retailer:1) What is your store Name? ____________________________________________________________ 2) How many years old your store? ____________________________________________________________ 3) What kinds of product are offered by you to your customers?          Fruits Groceries Milk products Species Ready to eat food Biscuits & confectionaries Cold drinks General Merchandise Others 4) How many customers visit your store daily?  Less than 50  50 – 100  100 – 150 5) What is your total customer‟s base? 55 .

6) Do you think any of the following things has happened because of organized retail stores? Not at all Decrease in total no. of customer base Frequency of purchase of individual customers Reduction in their bill size Demand of more facilities like big business group shopping mall Decrease in annual turnover 7) What will be the effect of the following factors in influencing or switching away your regular customers? High Impact Good aesthetic Atmosphere Prime location Friendly store person Selling supplementary 56 Somewhat considerable Can‟t say somewhat No impact Can‟t say .

items(large variety) Discount offer High advertising & promotion Big brand name of the company Free home Delivery 8) Which of your products get affected with the advent of organized firms in your city? Not at all Ready to cook Milk products Vegetables Fruits Groceries Species Biscuits & confectionaries Cold drinks General merchandise Some What Considerable Can‟t say 57 .

How many customers come at your store daily? Less than 50 58 . How many years old your store? 3.9) Which services or facilities you offer to maintain your loyal customers?      Credit Free home delivery Order taking on telephone Fast delivery Discounts APPAREL QUESTIONNAIRE Name of Retailer:Address:1. What is your store Name? 2.

Which of the following apparel categories are do you stock?  Ladies Wear – Office wear ( formal ) Party Wear Casual Wear Festival Wear  Kids Wear Office wear ( formal ) Party Wear Casual Wear Festival Wear Office wear ( formal ) Party Wear Casual Wear Festival Wear  Gents Wear- 5. Do you think any of the following things has happened because of organized retail stores? Not at all Decrease in total no. of customer base Frequency of purchase of individual customers Demand of more facilities like big business group 59 Somewhat considerable Can‟t say .150 4.50 – 100 100 .

shopping mall Decrease in annual turnover 6. As per your opinions of what will be the effect of the following factors in drawing away you regular customers? High somewhat Impact Good aesthetic atmosphere Prime location Friendly store person Selling supplementary items(large variety) Discount offer High advertising & promotion Big brand name of the company Selling other households necessity items under are roof Offering latest Wear Available of more International brands Other recreational factors like parking 60 No Can‟t say impact .

in/policy/icrier_report_27052008.managementparadise.nic.indianmba.html  www.wikipedia.html  http://www.com/printer/news/151762/  http://www.REFERENCES  http://siadipp.com  www.edu.rbs.com  www.businessoutlook.org/wiki/Wal-Mart  www.businessindia.pdf  http://www.com/biznews/categoryNewsDesc.com 61 .sarkaritel.html  www.atimes.com/hotdiscussions/Has_organised_retail_faile d_to_blunt_inflation_3539  http://www.com/Faculty_Column/FC504/fc504.trends.html  http://www.com/india_retail_report.php/t161305.financialexpress.com/news_and_features/infa/july2009/15ban_bi g_retail_trade.imagesretail.in/research/ret.com/forums/archive/index.html  http://www.indiabiznews.com/atimes/South_Asia/GF09Df03.htm  http://en.jsp?catId  www.peerpower.

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