A PROJECT REPORTON

VISHAL RETAIL PVT.LTD.A STUDY OF V.R.P.L. AND GAP ANALYSIS

SUBMITTED IN THE FULFILLMENT OF THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BY PUNJAB TECHNICAL UNIVERSITY

Submitted to: Mr. S.k.Mukherjee(H.O.D)

Submitted by: Raja PandeyMBA-4th SemRoll No. 71760047

NETAJI SUBHASH INSTITUTE OF MANAGEMENT SCIENCES PITAMPURA (BATCH: 2007-2009)

DECLARATIONI Raja pandey , student of NIMS, Pitampura hereby solemnly declare that the project report titled ASTUDY OF V.R.P.L. AND GAP ANALYSIS is the outcome of my own research and prepared by me and the same has not been submitted to any other university or institute for the award of any degree or diploma.

Place: Date:

(Raja Pandey)

CONTENTS

Acknowledgement

Project profile

Company profile

Products of vishal mega mart

Marketing mix for vishal mega mart

Financial resource

Expansion plan

Loyalty programme

SBI card

Research design and methodology

Analysis and interpretation of data

Strength and weakness

Comments by customer

Questionnaire

bibliography

ACKNOWLEDGEMENTI express my heartfelt thanks to faculty Mr. S.K.Mukherjee, H.O.D for providing me an opportunity to undertake this project. Last but not the least, I am thankful to the entire respondent, my family and my friends for their support without which it would have never been possible for me to complete my project.

(Raja Pandey)

PROJECT PROFILEHow and where should I purchase my household goods is a major question that arises in the mind of person of every class of society. To solve this problems VISHAL RETAIL PVT. LTD. has thrown his various product range in the market. E.g. Garments, home furnishing, food mart, house hold etc.

There is a cut throat competition among the various players in India , such as Spencer from RPG RETAIL, Big Bazaar from PANTALOON RETAIL PVT. LTD. etc. As VRPL have a tough competitor in India because of the many organization local retailers deals in all the same products in which vishal mega mart is dealing. And therefore, all the organization are trying to retain then customer and attract those of then rivals by advertising, by providing better services on the time of selling and services after sale.

However the most among all is to maintain their customer by providing better services. now vishal mega mart has also started providing better services.

The various institutions that are servicing wants be aware of linking and liking of their customers and so that will help them to in developing a strategy for his benefits i.e. to increase the market share and off course profits also.

The title of my project is A STUDY OF VISHAL MEGA MART AND ITS SERVICES.

The project undertaken can provide following information:

1. Best media to advertise the product 2. Role of various attributes in Buying decision process3.

Importance of various services provided by an retail Organization.

4. Perception of customer in terms of services provided by the VISHAL MEGA MART.

COMPANY PROFILEVISHAL is one of the fastest growing chain of India in Indian retail market. The chain has currently 24 state in 110 cities and 183 stores in India.

The vishal brand is known for great modern style for men, women, and children. Vishal offers high level fashion styling.

Since 1986, the name vishal has been synonymous quality, value, and fashion integrity. Vishal offers an unparalleled collection of cloths for the entire family. . Each garment is hand selected for quality and contemporary stylin. Vishal manufactures majority of its own garments and out sources some under its direct quality supervision. This enables us to offer the lowest possible and most reasonable prices.

Our goal is to provide a range of fashion wear to suit every pocket. Our product mix represents the most current fashion trends in tops, bottoms, formals and accessories for men, women and kids. Our courteous staff will ensure that consumers get a perfect fit.

All vishals stores are air conditioned and tastefully decorated with easy excess to the products, giving to customers a unique shopping experience. Vishals trained staff will be able to help you select the garment of your choice and also help you color coordinates the accessories that you may want to buy.

The Group is today a Rs. 150 crore. Under the dynamic leadership of Mr. Ram Chandra Agarwal the group is expected to touch Rs. 300 crore turnover by the end of March 2008.

The groups prime focus is fashion retailing. The Vishal stores offer affordable family fashion at prices to suit every pocket. The groups philosophy is integration and towards this end has initiated backward integration in the field of high fashion by setting up a state of the art manufacturing facility to support its retail endeavors.

Vishal is one of fastest growing retailing groups. Vishals outlets cater to almost all price ranges. Our showrooms have a product range so wide that all your household needs can be catered to under one roof. Our stores give you international quality goods and prices hard to match. The cost benefits

that we derive from our large central purchase of goods and services are passed on to the consumer.

PRODUCTS RANGE OF VISHAL MEGA MARTA product occupies a dominant position among the four elements of marketing mix. In fact planning & development of the marketing mix normally begins with a dear idea of the firms product or services. In the word of Philip Kotler, a product is anything that can be offered to a market for attention, acquisition, use or consumption. It includes physical objects services, personalities, place, organization and ideas. VISHAL carries a wide range of consumer products in their stores.

Some of them are as follows:

Garments:

Home furnishing:

Men Women Boys Girls Infants

Bed room Drawing room Kitchen Bathroom Covers

Food mart:Beverage

House holds:Thermo ware

Cooked Indian

Cleaning aids

Cooked Chinese

Plastics aids

Drinks

Kitchen wears

Fruits & vegetables

Appliance

We can say that Vishal mega mart carries a wide assortment with itself: Women----- Fruits & Vegetables----- Fmcg -----Hardware-----Car- accessories ----- Techno mart ----- Electricals ----- Crockery-----Consumer durable-----Sanitary ware.

FMCG.

FOODMART:

CONT..

MARKETING MIX FOR

VISHAL MEGA MART Product:Vishal retail pvt. Ltd. have various types product range in their stores. e.g. Apparel , Fmcg, home Furnishing, etc.

I took Fmcg department for my project. Because Fmcg products are the most common things. In fact these are basic need of any family.

Price:Vishal mega mart stores carries all leading brands with local brands in their stores. Vishal mega mart gives discount to customer time to time. They offer weekly offer, seasonable offers for their product, but in fmcg product they gives discount less than other products because of costing. In fact vishal mega mart charges are also quite similar to the other organization who so ever dealing in Fmcg product.

Place:Ghaziabad is a place where I did my survey. Ghaziabad is a big city and highly populated.

I have taken 100 of people in vaishali (Ghaziabad) those belong to high class society. The location of this center is very good.

Promotion:That are some promoting tools that has been adopted by company.

@ Television :Vishal mega mart advertisements can be finding on domestic channel and every local channel.

@ News paper:Hindustan times, times of India, many regional papers and local papers.

@ Hoarding:are also part of advertisement of vishal mega mart. Even its plays a vital role.

@ Others:pamphlets, advertisement in national events etc.

FINANCIAL RESOURCENorth India's leading retail chain stores, Vishal Retail Pvt. Ltd., has decided to raise Rs. 50 crores through an initial public offer. The company, that owns 16 Vishal Mega Marts in India and plans to take this to 26 by the end of next fiscal, was planning to dilute 15 per cent stake, said its Chairman, Mr. Ram Chandra Agarwal. "We will also be expanding our chain of retail outlets across the country by investing around Rs. 50 crores. Our new stores will soon come up at Agra, Pune, Chandigarh, Patiala, Ludiana and Meerut. We are also looking at opening two `hyper marts' in neighboring Gurgaon and Noida," he said, adding that the company was aiming a sales turnover of Rs. 300 crores this year.

Source: retail biz

EXPENSION PLAN

The company inaugurated its first mall in Pune, its first in the western region. Mr Ramchandra Agarwal, Managing Director, said the company would expand to cities. The chain currently has 24 company stores in 18 cities in India. Now company is planning to expend it vishal mega mart chain of retail outlet. . It will open 20-25 stores in class-B cities of Rajasthan, Uttar Pradesh, Himachal Pradesh, Gujarat and Punjab. While some stores will be standalone, others will be opened in malls. Mr.Ramchandra Agarwal says on that The expansion will be funded mostly through an initial public offering*. "We are conducting the due diligence and will file the red herring prospectus with the Securities and Exchange Board of India soon," said Mr Agarwal. "We would initially generate Rs 100 crore from the equity market,"* he added.

source: The Hindu business line*

Vishal Retail will thus add six-seven lakh sq. ft of retail space (25,00030,000 sq. ft. per store). The capacity of the company's garment manufacturing facility at Gurgaon (Delhi-NCR) will also be expanded to 2.5 lakh pieces a month from one lakh pieces. All garments sold by the stores are sourced from this facility. Apart from readymade garments, Vishal retails watches, sunglasses, electrical appliances, perfumes and cosmetics. The company has a turnover target of Rs 300 crore for the current fiscal against the Rs 147 crore it clocked last year.

VISHAL MEGA MART

NEW LOCATION:-

@ CHANDIGARG @ PATIALA @ HISSAR @ SHAKTI NAGAR (NEW DELHI) @ GWALIOR @ SURAT

thus I would like to say that this time vishal mega mart is going to open many stores at various location. Not only in metros but in b-class cities. In fact they are reaching directly to the mind of the Indian consumer.

LOYALITY PROGRAMMEVISHAL MEGA MART Loyalty programme gives the Indian consumerof being rewarded every time he makes a purchase at any of their stores anywhere in the country. Consumers can make purchases at any store and accumulate points at a central level. These points are redeemable at any of our stores. Customers can accumulate points even when customers make a purchase while traveling and redeem points at any store. So no matter where the customer are in India you can partake in vishal mega mart loyalty programme.

SBI CARD, VISHAL MEGA MART,

CREDIT CARDSBI Card, one of India's largest Visa card issuers with over 2 million credit cards, have joined hands with Vishal Retail Pvt. Ltd, one of India's leading retailers, to launch a feature packed co-branded credit card, the SBI Vishal Mega Mart Card. Vishal Mega Mart, which retails a large variety of household, FMCG and consumer durable products at bargain prices through a chain of 24 selfowned stores, covers a combined shopping area of 5,30,000 sq. ft. at 18 locations across India. Another 26 stores, including in tier-II cities, are planned to come up by end 2008, taking the total count to 50. Analysts believe that the organized retail industry in India is expected to grow 2530% annually and would triple in size from Rs. 35,000 crore in 2004-05 to Rs1090bn by 2010. Vishal Mega Mart's innovative and flexible supply chain solutions are customized to meet each customer's specific requirements. By focusing on improving people's lives through cost effective solutions, Vishal Mega Mart meets the varied demands of thousands of price sensitive customers each day across multiple locations.

Targeted at regular Vishal Mega Mart shoppers, the SBI Vishal Mega Mart Card offers a unique rewards programme that entitles cardholders to 5 Reward Points on every Rs. 100 they spend at any Vishal Mega Mart store. Customers can redeem these reward points, against subsequent instore purchases at a Vishal Mega Mart outlet of their choice. Roopam Asthana, CEO, SBI Card said, "Vishal Mega Mart is a unique success story. From a small shop in Kolkata, it has established itself as one India' s leading brands in the retail arena with a strong presence across cities. It caters to a discerning set of customers who look to get the best value out of their purchases. With over 50,000 customers a day, this is one of the most popular retail chains and a perfect fit with our strategy to grow SBI Card's cardholder base in India by developing new partnership. Our goal is to be the card of choice for today's frequent shopper and the SBI Vishal Mega Mart Card will introduce the benefits of SBI Card to a new and wider group of smart consumers who are looking to leverage their spending to earn multiple benefits in return."

Source: www.indiaifoline.com

RESEARCH DESIGN AND METHODOLOGY

DEFINE THE MARKETING PROBLEM:Retail industry is the industry facing a tough competition in market. Customer switch over to the next store according to the services, location, the brand they have and last but not the least taste and preference. therefore, it is very difficult but important for a marketer to analyze all such factors which affect. The consumers behavior as well as the marketer must analyze about the best possible ways for increasing the customer awareness.

DIFINE THE RESEARCH PROBLEM:A researcher must find the problem and formulate it so that it becomes susceptible to research. Like a medical doctor, a researcher must examine all the diagnose correctly. And therefore, I have also defined the research problem i.e. to analyze the service level of vishal mega mart stores. Behalf of this report we will be able to find the gaps.

RESEARCH METHODOLOGY:After defining the research problem the foremost step will be planning for the further investigation. Preparing the blue print to undertake the research called research design. in other words, A research design is the arrangement of condition for collection and analyze of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

1) OBJECTIVE:My objective was to study the service level of vishal mega mart stores, perception in the mind of the consumer, awareness about the vishal mega mart.

2) NATURE OF RESEARCH:Exploratory govern by certain limitation.

3) LOCATION:I have taken vaishali (Ghaziabad) as a field of study because vishal mega mart is also there. Its a good residential area.

4) TARGET SEGMENT:I have taken earning class belonging middle and upper middle class as a target segment as the vishal mega mart products are off all range i.e. person of any income group could be a customer of Vishal Mega Mart. Because they have the format of discount store.

Lastly the customers can only explain better about the level of their awareness about the store.

5) SAMPLING DESIGN:Sampling method suggest to take only a part of unit instead of every unit which is both economical and less time consuming. Sampling is a tool to know about the whole unit by examining only a small part of it.

Collection of data:Data is the basic building block for statistical analysis and interpretation. Hence, for my statistical calculation, the first step is to obtain data. The data can be obtained from any of the two sources: 1) Primary source 2) Secondary source

Primary data can be collected either through experiment or through survey. In cases where data is not available from any record of enterprises or in

published sources, it becomes necessary to collect original data for the study to be taken. Primary data can be obtained from following two ways:

OBSERVATION: This method implies the collection of information by way of interviewing the respondents. Some times investigator himself takes the observation while at other time, devices like camera, tape recorders etc. are used.

QUESTIONING: This method of data collection includes asking questions to people (that are target) directly or through mail, telephone etc. A format of the questions in written form is called the questionnaire.

Observation method is no doubt an expensive method and the information provided by this method is also very limited.

Comparison of the above two method reveals the questionnaire method is more widely used for collection of business data as it is based on bare facts. Some of techniques used for questioning are as follows:-

1) Personal interview 2) Mail interview3) Telephone interview

Personal questionnaire method is used in the study because it is economical and can yield complete results quickly. This cheaper and faster method of collecting data.

For this study I also used structural type questionnaire. Secondary data: This data which have already been collected by some one else and which have already been passed through the statistical process. Secondary data are obtained from journals, reports, internet etc.

ANALYSIS AND INTERPRETATION OF DATA

Visit (in a month) ::

Visit 1-3 times 4-6 times 7-8 times More than 8 times

No. of Respondent 35 18 14 10

Percentage 35% 18% 14% 10%

35% customer said that they visit vishal mega mart 1-3 times in a month. This is highest % in respondent customer. There are 10% customers who visit more than 8 times vishal mega mart. And 14 % are who visit 7-8 times in a month. We can categorize them in loyal customer. And 18% customer visit 4-6 times. Those customers who come in 1st and 2nd row can come in last two rows if they get better services, and quality.

Average value of purchase ::

Value (Rs.) Below 500 501-1500 1501-3500

No. of respondent 3o 24 18

percentage 30% 24% 18%

More than 3500

16

16%

The profile which visit vishal mega mart is quite good. What I have observed that mostly customer belongs to upper middle class and higher class. Some also come from middle but ratio is very low in comparison to above two class. We can see from this interpretation that there are 30% customer who purchase with the value of below 500 on every visit. And there are also number of customer those purchase value is more than 3500. which show the purchasing power of customer.

Ambiance::Ambiance Wonderful Good Ok Average Bad No. of respondent 0 18 25 35 18 Percentage 0% 18% 25% 35% 18%

according to survey no body said that ambiance of the store is wonderful which is really not a good sign for vishal mega mart. Its ok that they are in discount format but still there should be a good environment which can satisfy to the customer. This is not the least but there is a bad point which is customer notified bad ambiance of the store. Which is really not a good news. These are not happy with the ambiance. Their no. are 18%. Which is not a small number of customer. 35% customer said average ambiance. 25% agreed that its ok but need to be improvement.

Factors plays role in purchase::

Factors Visual displays Impulse goods Pre-determined Suggestion by the sales staff

No. of respondent 17 22 31 18

Percentages 17% 22% 31% 18%

We can see here that there are 31% customer are those customer who comes to the store with the predetermined about the product. Again a big number of customer believe in impulse goods. So this news also very useful. But for this quality, service, availability of the brand, price factors plays a vital role. There are 18% customer are those who also listen sales staff. They ask to sales staff for buy the product. 17% customer are those who want the visual display. The kind of visual display. If it is good enough than its also a big factor in purchase. Because visual merchandising is a salient sales man who attract to the customer without speaking. Its create feeling in the mind of customer.

Customer service::Rating Excellent Good Satisfactory Need to improve No. of respondent 0 15 12 56 Percentage 0% 15% 12% 56%

From this we can see the thing which is really important for any store. without it every store, organization goes down and that is customer service. and look at the percentage of the total sample size 56 customer out of 100 said that customer service is a area where improvement is must. Only 12% customers are satisfied with the customer service of vishal mega mart of that particular store. just 15% said that its good but this is not in good number which can create impression about the customer store. Because in present scenario customer is a king. If you are not able 2 keep happy then than they can move to other stores. Thats is why this is the are area where improvement is must as soon s possible. No body said excellent to this great factor.

Availability of the brands, Variety in stock, Billing::

Rating Excellent Good Satisfactory Need to improve

No. of respondent 6 22 18 39

Percentage 6% 22% 18% 39%

Again the problem is big. This interpretation is related to availability of the brands, variety in stock and billing facility in the store. There are large number of respondent said that 39% customer said that need to improve. 22% said its good enough. here 6% said that its excellent. That are such factor which is noticed by those customer than what is reason behind it that everybody is not able to notice them. I asked to customer. And they replied that the main problem is customers service. Either its a matter of availability of brands, or billing. The sales staff is not attentive. 18% are satisfied with all these factors.

Need to improvement::Area Customer service Price reduction Visual display No. of respondent 39 23 18 Percentage 39% 23% 18%

Yes,

we can see the actual result in this table. Again the customer is

emphasis on customer service. This is the key area where need to do improvement. Here price reduction is also a major factor. Because says on this that in other store i.e. Big bazaar and Spencers are cheaper than vishal mega mart. 19% customer said that visual display is also area where vishal mega mart should do improvement. Finally the customer service is the major problem of vishal mega mart.

Knowledge of the new arrival and store::Source Banner n advertisement Regular visit Friends n relatives Just shopping to it 16 29 32 16 12% 28% No. of respondent 6 percentage 35%

Thats a very god news that banner and advertisement plays a vital role to attract the customer towards the store. Numbers of respondent are in this major area 35% We can see that friend and relative are only 12% so thus we say that mouth publicity is very less of vishal mega mart. Numbers of respondents said that they sometimes get information by their friends and relative about the new arrival and schemes. 16% customers rplied that they do regular visit to the store. And 28% said they just go to the destination and buy the product.

Satisfaction with the brands and price::

Way of response Yes No

No. of respondent 36 48

Percentage 36% 48%

36% customer from my sample size said that they are quite satisfied with the brands and price those are carried by vishal mega mart. and 48% said they are not happy with these parameters. This is also not a good news about the store.

Strength and Weakness of Vishal Mega Mart( Retailing -Vaishali)

Strength:

1-Location of the store because its a very populated residential area with good profile of customers with higher disposable income.

2- Affordable price. Every time we can see sale and scheme kind of activity in the store to attract the customers.

3- All home and lifestyle products under one roof.

4- Large number of stock keeping unit carried by vishal mega mart.

5- Average walk in around 175

6- weekly offer. This is the activity which rotates in every department. i.e apparels ,home furnishings etc..

7- Quality is dignity of the store.

8- A refreshment area is area near fmcg department. In which customer fell relax. They can have some snacks and soft drinks between shopping time.

Weaknesses:

1- sales staff is not well trained. 2- Staff having product knowledge are not motivated enough to talk and convince prospective customer to improve sales. 3- Staff could not be distinguished from customers, as there is no dress code. 4- Staff not customer oriented. 5Staff spends much of their time in making reports rather than attending customer and giving time to their section. 6Sales staff is not well educated. This is also the mail problem which is facing by customers.

7-

Warehouse space is very less for fmcg department. So mostly times trolley use for extra merchandise which create problem for customer.

8- The entire merchandise is not being properly cleaned and dust is quite visible especially on glassware. 9There is communication gap between the store and HO. Between customer and store. Sometime what happened that scheme merchandise is not available on the floor but company adverise their advertisement. 10Customer service is the main problem of this

particular store as I mentioned above many times.

COMMENTS BY THE CUSTOMERS Positive comments perfect store

Everything looks quite good and well managed. Nice collection, keep it up. Your all variety of products are attractive, I felt very happy. Nice experiences

It is nice and wonderful experience Great ambience Good collection product I m impressed by visual display.

Negative comments:

Price is high

Need more attraction with the customer Decrease your price Price is high comparatively Big Bazaar. Price factor, product is good, variety should be improved. Merchandising should keep on changing. Improvement in communication between customers and sales person. Bad experience customers service should be improved there are many billing counter but less staff to manage them. There was a long queue on billing counter. The door on first floor should opened. Toilets are not neat and clean. Sales staff is not supportive.

QUESTIONNAIRE(SECTION- RETAILING)

Name.

Address.

Tel no

Q1. How often you visit Vishal mega mart(in a month). Ans. 1 --1-3 times 2 -- 4-6 times 3 -- 7-8 times 4 -- More than 8 times

Q2. What is the average value that you purchase on every visit to Vishal mega mart? Ans. 1 -- Below 500rs. 2 -- 501-1500rs. 3 -- 1501-3500rs 4 -- More than 3500rs.

Q3. How do you like the ambience of the store? Ans. 1 -- Wonderful 2 -- Good 3 -- Ok 4 -- Average 5 -- Bad

Q4. Which of these factors play the biggest role in purchase? 1 Visual display 2 Impulse goods 3 Pre determined to buy the product.

4 Suggestion by the sales staff.

Q5. How do you rate customer service on following parameters.? Awarenessknowledge of the products, Response and attentiveness, Communication. 1 Excellent 2 Good 3 Satisfactory 4 Need to improve

Q6. How do you rate Vishal mega mart based on following parameters.? Availability of the brand, variety in stock, Billing-----1 -- Excellent 2 -- Good 3 Satisfactory 4 Need to improve

Q7. If yes, what need to improved in Vishal mega mart? 1 Customer service 2 Price reduction 3 Visual displays 4 if any other,........

Q8. How do you let to know of the new arrival and store.? 1 Banner 2 Regular visit 3 Friends n Relatives 4 just shopping to see it.

Q9. Are you satisfied with the price and brands which is carried by the Vishal mega Mart.? 1 Yes 2 No

Q10. Comparing to other hyper market and super market please mention one positive and one negative aspect if Vishal mega mart.

Positive .

Negative

Suggestion if any,.

THANK YOU

BIBLIOGRAPHY

RESEARCH METHODOLOGY -C.R. KOTHARI

MARKETING MANAGEMENT - PHILIP KOTLER

www.indiainfilone.com retail biz The hindu business line