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A research project report on comparative study of vishalmegamart and its competitorsby Hemanth CRPatna on Apr 20, 2011
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A research project report on comparative study of vishal megamart and its competitors
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A research project report on comparative study of vishal megamart and its competitorsDocument Transcript
Research Project Report On “Comparative Study of Vishal Megamart at
Lucknow and its Competitors” SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION UTTAR PRADESH TECHNICAL UNIVERSITY,
LUCKNOW ACADEMIC YEAR 2008-2010Under Guidance of: Submitted By:
Table of ContentsPART I Executive summary Introduction to Retail
Industry Company’s Profile Overview Products offered by the
company SWOT Analysis Visual MerchandisingPART II Objectives of
the study Research methodology Reseach Design Questionnaire
Analysis Suggetions Limitations Bibliography
INTRODUCTION TO RETAIL INDUSTRY.
Introduction of Indian Retail Industries:Retail is India’s largest industry,
accounting for over 10 per centof the country’s GDP and around eight per
cent of theemployment. Retail industry in India is at the crossroads. It
hasemerged as one of the most dynamic and fast paced industrieswith several
players entering the market. But because of theheavy initial investments
required, break even is difficult toachieve and many of these players have not
tasted success so far.However, the future is promising; the market is
growing,government policies are becoming more favorable and
emergingtechnologies are facilitating operations. Retailing in India isgradually
inching its way toward becoming the next boomindustry. The whole concept
rexd
akanshachulbuliavi
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niftkishan
jyothipinky
Shivansh Sood
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retail management
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customer of big bazaar
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Future group ppt
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I360 Weekly digest 4th july to10th
july
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What is retail11
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What is retail
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What is retail11
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profile
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Own brand promotion by sudipto
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Own brand promotion by sudipto
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Strategic Management (2)
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of shopping has altered in terms offormat and consumer buying behavior,
ushering in a revolution inshopping in India. Modern retail has entered India
as seen inSprawling shopping centers, multi-storied malls and hugecomplexes
offer shopping, entertainment and food all under oneroof. The Indian retailing
sector is at an inflexion point where thegrowth of organized retailing and
growth in the consumption bythe Indian population is going to take a higher
growth trajectory.
The Indian population is witnessing a significant change in itsdemographics.
A large young working population with medianage of 24 years, nuclear
families in urban areas, along withincreasing working-women population and
emergingopportunities in the services sector are going to be the keygrowth
drivers of the organized retail sector in India.Retailing is the final step in the
distribution of merchandise - thelast link in the Supply Chain - connecting the
bulk producers ofcommodities to the final consumers. Retailing covers
diverseproducts such as foot apparels, consumer goods, financialservices and
leisure.A retailer, typically, is someone who does not effect anysignificant
change in the product execs breaking the bulk. He/She are also the final stock
point who makes products or servicesavailable to the consumer whenever
require. Hence, the valueproposition a retailer offers to a consumer is easy
availabilities ofthe desired product in the desired sizes at the desired times.In
the developed countries, the retail industry has developedinto a full-fledged
industry where more than three-fourths of thetotal retail trade is done by the
organized sector. Huge retailchains like Wal-Mart, Carr four Group, Sears, K-
Mart,McDonalds, etc. have now replaced the individual small stores.Large
retail formats, with high quality ambiance and courteous.
Retailing is the interface between the producer and the individualconsumer
buying for personal consumption. This excludes directinterface between the
manufacturer and institutional buyers suchas the government and other bulk
customers. A retailer is onewho stocks the producer’s goods and is involved
in the act ofselling it to the individual consumer, at a margin of profit. AsSuch,
retailing is the last link that connects the individualconsumer with the
manufacturing and distribution chain.Retailing is more than selling
goods:Retailing consists of the sale of goods or merchandise, from afixed
location such as a department store or kiosk, in small orindividual lots for
direct consumption by the purchaser.Retailing is a well recognized business
function whichcompromisesmaking available desired product in the desired
quantity atthe desired time. This creates a time, place and form utilityfor the
consumer. The success of retailing is highly dependenton an efficient supply
chain management. A well-developedsupply chain reduces wastages and
transaction cost therebyreducing the cost of inventories to be maintained by
theproducers and the traders. A reduction in the cost ofinventory
management leads to a reduction in the final priceto the consumer.
Retailing has been identified as a thrust area for promotion oftextiles,
processed foods, agricultural and horticulturalproduce. Retail Sector can be
divided into organized andunorganized sectors:Unorganized
Retail:Unorganized retailing is characterized by a distorted real-estate market,
poor infrastructure and inefficient upstreamprocesses, lack of modern
Retail Industry
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technology, inadequate funding andabsence of skilled manpower. Therefore,
there is a need topromote organized retailing.Unorganized Retail:Unorganized
retailing is characterized by a distorted real-estate market, poor infrastructure
and inefficient upstreamprocesses, lack of modern technology, inadequate
funding andabsence of skilled manpower. Therefore, there is a need topromote
organized retailing.
Evaluation of Organized Retailing:American mass retailing began in the late
1800s withMontgomery Ward marketing its products through
generalmerchandise mail order catalogs, which was very effective at thattime
for reaching a largely rural society.In the 1940s, the population began its
movement to the suburbs asthe economy shifted from an agricultural base to
an industrializednation. The first shopping center was opened, which
wouldeventually be a significant factor in the decline of downtownRetailing in
the 1960s and 70s. JC Penney and Sears began theirnational mass retailing
expansion, and the use of credit cards asMajor retail chains began.The 1950s
witnessed the reaffirmation of the traditional family.The first planned mall and
franchised food restaurant opened. Aspeople continued to flock to the
suburbs, the downtown areasbegan to decline. Larger suburban malls were
created andanchored by traditional downtown department store
merchants.Freeways were expanded and the sales of private automobilesgrew,
giving the consumer a wider accessible area in which toshop. Discounters
were born, Korvetta being one of the firsts.The 1960s witnessed the growth of
enclosed shopping centers,with department stores anchors and specialty retail
chains. Thebaby boomers were teenagers at this point, leading to the growth
of juniors-oriented stores and vendors. Women became targetsnot just as
mothers or wives as they entered the workforce andconsumers became more
demanding in their expectation ofquality and service.In the 1970s, promotional
pricing started to pick up thedepartment stores as off-price retailer emerged.
The growth ofretail space slowed, as sales increase came at the expense
ofcompetition, not of market growth. This competitive market ledto the under
performance of several retailers as gross marginsexperienced downtown
pressure from increased competition.Retailers in large upscale markets
recognized the time shortagecreated by dual-career families and began to offer
more servicesto assist in saving time.The 1980s witnessed the growth of off
price retailing as adistinct, enduring retail format. Retailers began to drop low
profitlines. Acquisitions and mergers were actively utilized as
growthstrategies, private brands were redeveloped to enhanceuniqueness and
margins and offshore sourcing was developed tocompensate for
marginsBroadly the organized retail sector can be divided into twosegments,
In-Store Retailers, who operate fixed point-of-salelocations, located and
designed to attract a high volume of walk-in customers, and the non-store
retailers, who reach out to thecustomers at their homes or offices.
It was only in the year 2000 that the economists put a figure to
it:Rs.400,000crore (1crore = 10 million) which is expected todevelop to around
Rs.800,000crore by the year 2005 – an annualincrease of 20 per cent. Retailing
in India is unorganized withpoor supply chain management perspective.
According to a recentsurvey by some of the retail consulting bodies, an
overwhelmingproportion of the Rs.400,000crore retail markets
areUNORGANISED. In fact, only a Rs. 20,000crore segment of themarket is
organized. As much as 96 per cent of the 5 million-plusoutlets are smaller than
500 square feet area. This means thatIndia per capita retailing space is about 2
square feet (comparedto 16 square feet in the United States). Indias per capita
retailingspace is thus the lowest in the world (source: KSA Technopak (I)Pvt
Ltd, the India operation of the US-based Kurt SalmonAssociates).Currently
the retail landscape is filled with Supermarket chainswith over 1000 outlets all
over the country to increase to around5000 by the 2005. The success of a
couple of hyper mart’sindicating the evolution of hypermarkets in the country
prominentamong them is Giant, Metro, Big Bazaar models. While theaverage
bill value at a supermarket is in the range of Rs.300 perbill, the average bill
amount at a Hypermarket is in the range ofRs.750-1000, indicating that the
model is in tune with the globalmodels where the average spend is increasing
with the shoppingexperience.
Impact of Organized Retail:Organized retailing is spreading and making its
presence felt indifferent parts of the country. The trend in grocery
retailing,however, has been slightly different with a growth concentrationin
the South. Though there were traditional family owned retailchains in South
India such as Nilgiri’s as early as 1905, the retailrevolution happened with the
RPG group starting the Food worldchain of food retail outlets in South India
with focus on Chennai,Hyderabad and Bangalore markets, preliminarily. The
experimenthas reaped rich dividends and the group is now foraying intoother
territories as well. Owing to the success of Food worldmodel of RPG group,
several new models such as Trinethra,Subhiksha, Margin Free and others
have made their foray intothis sector albeit at regional levels. Today the food
retail sectorin India is about Rupees Ten Lakh Crores (USD 200 billions)
ofwhich the organized food retail segment is about 1 per cent andincreasing at
a pace of over 20% y-o-y. To be successful in foodretailing in India essentially
means to draw away shoppers from,the roadside hawkers and kirana stores to
supermarkets. Thistransition can be achieved to some extent through pricing,
so thesuccess of a food retailer depends on how best he understandsand
squeezes his supply chain. The other major factor is that ofconvenience
shopping which the supermarket has the edge overthe traditional kirana
stores. On an average a supermarket stocksup to 5000 SKU’s against few
hundreds stocked at an averagekirana stores.
In the organized retail industry, the gestation periods are long,institutional
funding is difficult, and there is none or littleGovernment support. But the
belief among top retailer chains inthe country is that the industry will see large
investments comingonce the current ban on foreign direct investment is lifted.
Butthat could be two-three years away. Food and grocery retailing isa tough
business in India with margins being very low, andconsumers not dissatisfied
with existing shops where they buy.For example,The next-door grocery
shopkeeper is smart and delivers goodcustomer service, though not value.As
of now, while Chennai has about five organized food andgrocery retail chains,
other big cities such as Delhi, Bangalore,and Mumbai average only two-three
such chains. Almost all foodretail players have been region-specific as far as
geographicalpresence is concerned in the country. To illustrate with
examples,the RPG Groups Food World, Nilgiris, Margin Free, Giant,Varkeys
and Subhiksha, all of which are more or less spread inthe Southern region;
Sabka Bazaar has a presence only in andaround Delhi; names such as Haiko
and Radhakrishna Food landare Mumbai-centric; while Adani is Ahmedabad-
centric. Industrytopography in India is such that spreading presence across
citiesis a tough call. As pointed out by many experts, organized foodand
grocery retailing chains going national requires significantinvestments.
Retailing within this sector is not just about thefront-end, but involves
complex supply chain and logistics issuesas well.
The trend and mindset of the present retailer chains in India canbe best
understood by studying Food World as an example, whichcame in first in the
food and grocery retailing sector. The chainhas no plans to venture beyond
the Southern region just yet.Current plans are to focus on the Southern
markets and achievesaturation. The intention is that by 2005, they could look
at theother regions. Subhiksha, a Chennai based discount chain, toowants to
be the principal store of purchase for at least 40 per centof all consumers living
within 500-750 meters of the store, thatis, within walking distance. This makes
the point very clear thatthe strategy among most existing retail chains of
various formatsis to completely saturate the markets where they are
alreadyestablished players and then move on to virtually untouched
areaswhere the challenge of sourcing resources and extending theirsupply
chain model to best suit the size and expanse of themarket would be a
challenging task.It can be explained that the obstacles of looking at a pan-
Indiamodel for grocery are several. Given the federal nature of thecountry, the
weak infrastructure and the major variances in eatinghabits in different parts of
the country, one will have to replicatethe retail administration costs for at least
each region andtherefore the gestation period of the project becomes
huge.However, if a model is in place where the upfront store revenuesscale
very rapidly, then it is possible. Therefore, if one is toattempt a pan-Indian
grocery foray, it will have to be in thehypermarket format with its attendant
investment numbers andrisk profile.
If a close look is taken at the nature of the Indian Retail Markets,it can be seen
that there is so much potential to extract fromindividual regions that players
are in no tearing hurry to spreadout. Based on a recent study by a renowned
governmentinstitution in India, in the six major metros, Delhi has the
highestper capita consumption of food and grocery, among
supermarkets.Chennai, “the Mecca of retailing”, comes at fourth place.
Thisshows the high potential the sector presents. Chennai has somefive
supermarket chains, and each of these is doing well forthemselves. So there is
enough scope to expand even in onesingle city in India.Sabka Bazaar, a
supermarket chain restricted to Delhi alone, isnow generating sales of about
Rs.11 crore from its 19 storeswhich best illustrates the potential of each
individual city. Thisexplains the reason for delay in intentions of retailers to
spreadfar and wide.Benefits of Retailing:Retailing is good for national
economies where it has positiveinfluence on influence on inflation and
product availability. It
also creates fortunes for its owners and is a tremendous source
ofemployment.INDIA has been virtually the only developing country in
theworld that has been extremely slow in adopting this organizedpattern of
retailing. • Better quality products • Employment opportunities • Better social
infrastructure • Enhanced foreign exchange • Benefit to tourism • Better
showcase for exports • Better realization of taxesIndian Retail Scenario:
Retailers in India have to experiment with formatsmaintaining scalability in
terms of segments, along withdeepening penetration levels.Traditionally
Indian Retail can be traced back from WeeklyMarkets, Melas, and Village Fairs
in Small towns and villages toKirana stores, PDS outlets, Khaki Bhandaar, co-
operative storesin Urban cities. The wave of retail began with various
textilemanufactures like Bombay Dyeing, Raymond’s, S Kumar’s, andGrasim
foraying into selling the product through their outlets andcompetition among
FMCG players driving the forces towardsretailing. The evolution of retailing
lead to an emergence ofvarious formats like Shopping malls, Super-marts,
Hyper-marts,Departmental Stores, Apparel Stores, etc. catering to majority
allsectors of society providing the all-important 3Vs – Value,Variety and
Volume.India is the country having the most unorganized retail
market.Traditionally it is a Family’s livelihood, with their shop in thefront and
house at the back, while they run the Retail business.More than 99% retailers
function in less than 500 square feet ofshopping space. Global retail
consultants KSA Technopak, haveestimated that organized retailing in India is
expected to touch Rs35,000 crore in the year 2005-06. The Indian retail sector
isestimated at around Rs900,000 crore, of which the organizedsector accounts
for a Mere 2 per cent indicating a huge potentialmarket opportunity that is
lying in the waiting for the consumer-savvy organized retailer .Purchasing
power of Indian urban
consumer is growing and branded merchandise in categories likeApparels,
Cosmetics, Shoes, Watches, Beverages, Food and evenJewellery, are slowly
becoming lifestyle products that are widelyaccepted by the urban Indian
consumer. Indian retailers need toadvantage of this growth and aiming to
grow, diversify andintroduce new formats have to pay more attention to the
brandbuilding process. The emphasis here is on retail as a brandrather than
retailers selling brands.The focus should be on branding the retail business
itself. Intheir preparation to face Fierce competitive pressure, Indianretailers
must come to recognize the value of building their ownstores as brands to
reinforce their marketing positioning, tocommunicate quality as well as value
for money. Sustainablecompetitive advantage will be depended on translating
corevalues combining products, image and reputation into a coherentretail
brand strategy.Growth of Organized Retail in IndianCities:
Organized Share of retail sector is expected to increaseto 8-9 percent in 2010-11
from 6 percent in 2008.The Retail sector contributes to around 36 percent of
GDP inIndia and is largest employment generator. The sector isdominated by
small-scattered unorganized regional players, largeplayers contributing to
meager 10 percent of the total pie.Organized retail is at its nascent phase
wherein the largeorganized retail groups are having aggressive expansion
plans topenetrate the Metros and Tier I cities and establish
themselvesamongst rural masses of Tier I and Tier II cities. There lies a
challenge for retailers to experiment with newvalue formats along with
developing customer loyalties. Sincethere will be demographic shift in
population growth,urbanization and migration due to transition in urban
householdgrowth and income distribution. The total retail market in the top67
cities in India in 2006 was Rs. 2.55 trillion, which is expectedto increase to Rs.
3.91 trillion in 2011.American mass retailing began in the late 1800s
withMontgomery Ward marketing its products through generalmerchandise
mail order catalogs, which was very effective at thattime for reaching a largely
rural society.In the 1940s, the population began its movement to the suburbs
asthe economy shifted from an agricultural base to an industrialized
nation. The first shopping center was opened, which wouldeventually be a
significant factor in the decline of downtownRetailing in the 1960s and 70s. JC
Penney and Sears began theirnational mass retailing expansion, and the use of
credit cards asMajor retail chains began.The 1950s witnessed the reaffirmation
of the traditional family.The first planned mall and franchised food restaurant
opened. Aspeople continued to flock to the suburbs, the downtown
areasbegan to decline. Larger suburban malls were created andanchored by
traditional downtown department store merchants.Freeways were expanded
and the sales of private automobilesgrew, giving the consumer a wider
accessible area in which toshop.The 1960s witnessed the growth of enclosed
shopping centers,with department stores anchors and specialty retail chains.
Thebaby boomers were teenagers at this point, leading to the growthof
juniors-oriented stores and vendors. Women became targetsnot just as
mothers or wives as they entered the workforce andconsumers became more
demanding in their expectation ofquality and service.According to CRISIL,
around 87 percent of the retail opportunitycomes from top 25 cities
compromising Metro Delhi, Mumbai,Calcutta, Mini Metros Hyderabad,
Chennai, Bangalore, MiniMetros Ahmedabad and Pune, Tier I cities of Kanpur
, Nagpur,
Surat and Ludhiana, Tier II cities Coimbatore, Chandigarh,Lucknow, Kochi,
Jaipur and Tier III cities Vadodara, Vizag,Indore, Vijaywada,
Thiruvananthpuram, Bhopal, Nashik andMadurai.Organized retail has been
established in Metros and Tier 1cities, other cities having negligible level of
penetration.Old Retail Formats:O Kiranas:
These are food and non-food neighborhood counter stores, alsocalled ‘mom
and pop stores’ in western countries. These are bigchunks forming the
segregated and unorganized retail segment.These are family-owned and- run
retail-outlets picking the goodsfrom wholesalers totaling to around 12 million
stores acrossIndia.I Mandis:These are the largest chunk of unorganized retail
catering tourban and rural masses. Mandis are physically located at
differentregions to enhance convenient shopping. The sellers bring
acrossvarious products like eatables, vegetables and fruits, pulses,cereals,
spices etc. The most prominent of them are sabzi mandisfound in most of the
localities across India.f Village Haats:This form is operating in rural areas
where buyers and sellersgather once in a week or month from nearby villages
and smalltowns to cater their livelihood and leisure needs. These haats area
source of entertainment and socialization among ruralmasses.
Push Cart Vendors:The are categories of vendors roaming from door to door
invarious localities selling fruits, vegetables, and other eatables,from which
mostly housewives makes purchases that too oncredit. Upcoming Retail
Formats
Modern Area (sq. ft) Points of DifferentiationFormatsShopping 60,000-7,00,00
Multi-format, multi-Malls 0 product, multi-brands & Catering lifestyle
needs.Hyper marts 50,000-70,000 Multi-verticals.Super marts 5,000-10,000
Single vertical.Departmental 20,000-50,000 Single Vertical.StoresApparel Stores
20,000-25,000 Multi-branded single verticals, focusing on high-end
customers.Specialty 2,000-5,000 Multi-branded, singleformat vertical on
specific needs of customers.Exclusive 500-5,000 Owned/Franchised
singleformats product.
COMPANY PROFILEIntroduction of Vishal Retail Ltd.:Vishal Retail Ltd, a
leading player in the Indian retailindustry, is a pioneer in discount retailing and
is focused ontier II and III cities in the country. It has a strong presence in
manufacturing and retailing of readymade garments(apparels); retailing of non-
apparels and a large variety ofFMCG products. The company has pan-India
presence with108 mid-sized hypermarket format stores as on April 28,
2008covering about 2.3mn sq ft retail space area. Vishal issupported by strong
manufacturing set-up in Gurgaon,Dehradun and Manesar with a capacity of
5,000 garmentpieces per day in each unit. It also has 29 warehouses locatedin
8 key cities in India covering over 1.1mn sq ft area.Vishal started as a humble
one store enterprise in 1986 inKolkata (erstwhile, Calcutta) is today a
conglomerateencompassing 117 showrooms in 75 cities / 20 states. India’sfirst
hyper-market has also been opened for the Indianconsumer by Vishal.
Situated in the national capital Delhi thisstore boasts of the singe largest
collection of goods andcommodities sold under one roof in IndiaThe group
had a turnover of Rs. 1463.12 million for fiscal2005, under the dynamic
leadership of Mr. Ram ChandraAgarwal. The group had of turnover Rs 2884.43
million forfiscal 2006 and Rs. 6026.53 million for fiscal 2007.
The group’s prime focus is on retailing. The Vishal storesoffer affordable
family fashion at prices to suit every pocket.The group’s philosophy is
integration and towards this endhas initiated backward integration in the field
of high fashionby setting up a state of the art manufacturing facility tosupport
its retail endeavors.Company Background:Vishal Retail was incorporated on
July 23, 2001 as VishalRetail Private Limited as a retailer of ready-made
apparels inKolkata in 2001. The company has acquired the business of
M/s The Vishal Garments and M/s Vishal Garments in2001. In 2003, the
company has acquired the manufacturingfacilities from Vishal Fashions
Private Limited and M/sVishal Apparels.Vishal is one of fastest growing
retailing groups in India. Itsoutlets cater to almost all price ranges. The
showrooms haveover 70,000 products range which fulfills all your
householdneeds, and can be catered to under one roof. It is coveringabout
2059292 lac sq. ft. in 18 states across India. Each storegives you international
quality goods and prices hard tomatch. The cost benefits that are derived from
the largecentral purchase of goods and services are passed on to
theconsumer. The Founders
Mr. Ramchandra Agarwal Mrs. Uma Agarwal Mr. Surendra
AgarwalInvestment Rational:Vishal Retail sells ready-made apparels (including
its ownbrands) and wide range of household merchandise and other
consumer goods such as footwear, toys, watches, toiletries,grocery items,
sports items, crockery, gift and novelties.Vishal is value Retail Company
catering to middle and lowermiddle income groups.As Apparel segment
contributes 63 percent; it has plans tofocus more on FMCG.To reduce cost,
Vishal does in-house production of apparels,Procurement of goods directly
procurement of goods from thesmall and medium size vendors and
manufacturers.Efficient Logistics and distribution system along
withcustomized product mix at stores depending on the regionalcustomer
behavior and preferences.Plans of penetrating deeper into Tier 1 and Tier 2
cities tobank upon early mover advantage, where organized retail isyet to make
a significant mark, which will help establish andbuild customer loyalty prior to
other players.Higher margins of around 5-6 percent in private labels
whichaccount for 10 percent of sales in FY07.Future Prospective:Vishal Retail
Ltd has declared that the company has opened fournew Showrooms at
different localities.
The company has opened a store at Shree Ram Palace, Main DelhiRoad,
Meerut. This is the company’s second store in Meerutspreading across an
area of 3,600 Sq. ft. (Approx).The company opened a store at Nauchandi Garh
Road, Meerutcommonly called Dreemz, Opp. Samrat Heavens, Meerut. This
isthe company’s third store in Meerut covering up an area of12,000 Sq. ft.The
company has opened a showroom at Enclave, Near BSNLOffice, Ranipur
More, Haridwar. This is the company’s first storein Haridwar spreading across
an area of 9,545 Sq. ft. (Approx).The company opened its store at Arcade, Plot
No. 56-58, DumasRoad, Piplad, Surat. This is company’s second store in
Suratspreading across an area of 38,000 Sq. Ft (Approx).Vishal Retail Limited is
an India-based retail company. It wasestablished in 1986. It was formerly called
Vishal Retail PrivateLimited and changed its name to Vishal Retail Limited in
2006.The company is based in New Delhi, India.As of August 8, 2007, the
company operated 53 retail stores,including two stores that are operated by its
franchisees. It sellsreadymade clothes, and a variety of household
merchandise andother consumer goods, including toys, footwear, toiletries,
sportsitems, watches, grocery items, crockery, novelties and gifts.Today, the
stock is hovering around Rs 724 on the Bombay StockExchange. Vishal Retail
has seen a 52-week high of 812 and lowof Rs 423.
Factors Affecting Retailing in India:Various factors affect retailing in India.
However, if one were to Single outthe single biggest different in the
development of organized retailing inIndia, it would undoubtly be the cost of
real estate. The high cost of realestate in India, in spite of the fact that the per
capital income is one of thelowest in the world, makes the country a land of
contradictions. In fact soexorbitant is the cost of property in almost every
town of India that it makesthe very concept of organized retailing nonviable.
Obsolete rental laws havecompounded the situation even further and unless
immediate and serioussteps are initiated in this direction it would be fairly long
before the benefitsof this concept reach the public at large.The rampant
corruption &poor implantations of taxation laws also permit amajority of the
unorganized retail fraternity with substantially large turnoverto avoid paying
full taxes.There are no single factors but numerous factors which have
preventedorganized retailing from taking off as it should have in India. Some
of theleading factors that have restricted this growth are as follows. • High real
estate costs • Obsolete rental laws
• Lack of finance options• High interest costs• Unplanned cities• Rampant
corruption• Exorbitant electricity costs
VISION 2010:The past 2-3 years have seen a number of developments in the
retailingbusiness in India. The entries of corporate houses like RPG, Tatas
andPiramals have increased the capital availability in the market. Bigger
playerslike Shoppers Stop are in a position to take advantage of their sizes
indealing with the manufacturers. Despite a slowdown in the
economy,customer queues at the stores are not decreasing. Retail sector is
bound togrow in the coming years. But how much and in what direction are
thequestions that need to be evaluated. Various agencies have made
differentestimates of the size of organized market in 2010. The one thing in
commonamongst these estimates is that the Indian organized Retailing
industry willbe very big in 2010. The status of the industry will depend a lot on
externalfactors like Government regulations and real estate prices, besides
activitiesof the retailers and demands of the customers. Based on our analysis
ofpresent trends, and development of retailing elsewhere, we present
ourperspectives and snapshots of organized retailing, as it would exit in 2010.
MAJOR COMPETITORS OF VISHAL MEGAMART
Major Players of Retailing in India:Retailer Current Format New Formats.
Experimenting WithShoppers Department Store Quasi-mallStopEbony
Department Store Quasi-mall, smaller outlets, adding food retailCrossword
Large bookstore Corner shopsPyramid Department Store Quasi-mall, food
retailPantaloon Own brand store HypermarketSubhiksha Supermarket
Considering moving to self serviceVitan Supermarket Suburban discount
storeFood Food supermarket Hypermarket, Food world expressworldGlobus
Department Store Small fashion storesBombay Aggregation of
KiranasBazaarE-food Aggregation of KiranasmartMetro Cash and carryMajor
Competitors of Vishal Megamartin Lucknow City:1. BIG-BAZAR
Type Subsidiary of Pantaloon GroupFounded 2001Headquarters Mumbai,
IndiaIndustry RetailParent Pantaloon GroupOwner Kishore BiyaniSlogan Is se
sasta aur accha kahi nahinBig Bazaar is a chain of shopping malls in India
currently with 29 outlets,owned by the Pantaloon Group. It works on same the
economy model asWal-Mart and has had considerable success in many Indian
cities and smalltowns. The idea was pioneered by entrepreneur Kishore
Biyani, the head ofPantaloon Retail India Ltd.COMPANY PROFILE OF BIG-
BAZAR:Pantaloon Retail (India) Limited, is Indias leading retail company
withpresence across multiple lines of businesses. The company owns
andmanages multiple retail formats that cater to a wide cross-section of
theIndian society and is able to capture almost the entire consumption basket
of
the Indian consumer. Headquartered in Mumbai ( Bombay), the
companyoperates through 4 million square feet of retail space, has over 140
storesacross 32 cities in India and employs over 14,000 people. The
companyregistered a turnover of Rs 2019 crore for FY 2005-06.Pantaloon Retail
forayed into modern retail in 1997 with the launching offashion retail chain,
Pantaloons in Kolkata. In 2001, it launched Big Bazaar,a hypermarket chain
that combines the look and feel of Indian bazaars, withaspects of modern
retail, like choice, convenience and hygiene. This wasfollowed by Food
Bazaar, food and grocery chain and launch Central, a firstof its kind seamless
mall located in the heart of major Indian cities. Some ofits other formats
include, Collection i (home improvement products), E-Zone (consumer
electronics), Depot (books, music, gifts and stationary), aLL(fashion apparel
for plus-size individuals), Shoe Factory (footwear) and BlueSky (fashion
accessories). It has recently launched its etailing venture,The groups
subsidiary companies include, Home Solutions Retail India Ltd,Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing.The group
also has joint venture companies with a number of partnersincluding French
retailer Etam group, Lee Cooper, Manipal Healthcare,Talwalkars, Gini & Jony
and Liberty Shoes. Planet Retail, a group company
owns the franchisee of international brands like Marks & Spencer,Debenhams,
Next and Guess in India.Pantaloon Retail (India) Limited, is Indias leading retail
company withpresence across multiple lines of businesses. The company
owns andmanages multiple retail formats that cater to a wide cross-section of
theIndian society and is able to capture almost the entire consumption basket
ofthe Indian consumer. Headquartered in Mumbai ( Bombay), the
companyoperates through 4 million square feet of retail space, has over 140
storesacross 32 cities in India and employs over 14,000 people. The
companyregistered a turnover of Rs 2019 crore for FY 2005-06.Pantaloon Retail
forayed into modern retail in 1997 with the launching offashion retail chain,
Pantaloons in Kolkata. In 2001, it launched Big Bazaar,a hypermarket chain
that combines the look and feel of Indian bazaars, withaspects of modern
retail, like choice, convenience and hygiene. This wasfollowed by Food
Bazaar, food and grocery chain and launch Central, a firstof its kind seamless
mall located in the heart of major Indian cities. Some ofits other formats
include, Collection i (home improvement products), E-Zone (consumer
electronics), Depot (books, music, gifts and stationary), aLL(fashion apparel
for plus-size individuals), Shoe Factory (footwear) and BlueSky (fashion
accessories). It has recently launched its retailing venture,
The groups subsidiary companies include, Home Solutions Retail India
Ltd,Pantaloon Industries Ltd, Galaxy Entertainment and Indus League
Clothing.The group also has joint venture companies with a number of
partnersincluding French retailer Etam group, Lee Cooper, Manipal
Healthcare,Talwalkars, Gini & Jony and Liberty Shoes. Planet Retail, a group
companyowns the franchisee of international brands like Marks &
Spencer,Debenhams, Next and Guess in India.Big Bazaar is not just another
hypermarket. It caters to every need of yourfamily. Where Big Bazaar scores
over other stores is its value for moneyproposition for the Indian customers.
At Big Bazaar, you will definitely getthe best products at the best prices --
that’s what we guarantee. With the everincreasing array of private labels, it
has opened the doors into the world offashion and general merchandise
including home furnishings, utensils,crockery, cutlery, sports goods and much
more at prices that will surpriseyou. And this is just the beginning. Big Bazaar
plans to add much more tocomplete your shopping experience.BIG BAZAAR
WHOLESALE CLUB:The Big Bazaar Wholesale Club brings to you an
opportunity to save in bulkas you buy in bulk. In line with the Big Bazaar
tradition of providing best
deals at best prices, the Big Bazaar Wholesale Club provides you bulk dealsat
wholesale prices.An extension of Big Bazaar, the Big Bazaar Wholesale Club
offers multi-packs and bulk packs of a select range of merchandise at
wholesale prices.The merchandise categories range from Food & FMCG to
Home Linen andmany more. You will not find any merchandise being sold
loose/single unit(except fresh) at a Big Bazaar Wholesale Club.A typical Big
Bazaar Wholesale Club is located adjacent to a Big Bazaar inthe form of a
separate section. The look and feel of a wholesale market isevident in the
stores from the stacking styles and use of a lot of hand writtensignages by
chalks on black slates.Taking care of your savings, the Big Bazaar Wholesale
Club will ensure thatthe more you buy, the more you save. If you enjoy
shopping at wholesalemarkets for your entire family, or you have a huge circle
of friends whowould like to get together for their monthly shopping needs or if
you are aretailer looking for wholesale offers then the Big Bazaar Wholesale
Club isthe place to shop at.
To shop at the Big Bazaar Wholesale Club, you just need to enroll yourselfas
a member of the club. If you possess an Anmol card or an ICICI-BigBazaar
card then you are automatically enrolled as a member of the BigBazaar
Wholesale Club.So buy more as you save more or save more as you buy more
at the BigBazaar Wholesale Club.Sales Promotion Strategies By Big Bazaar:
The greatest opportunity for new business is always the existing
customerbase. Big Bazaar totally focuses on this policy.Using creative and
innovative customer communication is far more likely tobe remembered than
the "same old stuff" everyone does.One of your products/services? Making
sure they are aware of your fullrange of capabilities can be a simple way to get
new orders.Even the most dedicated sales person may not call at the
appropriate time. Aplanned approach to customer communication will be most
effective.Customers like to be appreciated, its human nature. So look carefully
at howyou can motivate your customers and build their trust.If you are
notpromoting your products or services you can be sure your competitors
are.Look at things you can leverage to generate customer interest and
buyingdecisions2-FUTURE BAZAAR :
FUTURE BAZAAR is owned and operated by Future Bazaar India Ltd.,
asubsidiary of Pantaloon Retail (India) Limited.As part of India’s largest retail
chain, we enjoy the benefits of buying in bulkfor the entire group and keep our
margins low, so you get a great range ofproducts at great prices. We pass
these benefits on to you, so our prices arethe lowest we can make – every
day.About our parent company:Pantaloon Retail (India) Limited led by
Kishore Biyani is the countryslargest retailer. It owns and operates multiple
retail formats includingPantaloons, Big Bazaar, Food Bazaar, Central, E-Zone,
Fashion Station,Depot and many others. Headquartered in Mumbai, Pantaloon
Retail is listedon BSE and NSE with a turnover of Rs 2,018 croresPantaloon
Retail was selected as the Best of Best Retailers in Asia by RetailAsia-Pacific
Big Bazaar was awarded the CNBC-Awaaz Consumer Awardsin 2006 and the
Readers Digest Platinum Brand Award 2006.The Future Bazaar
promiseManufacturer’s warranties on all productsFuture Bazaar sells only
original products from authorized dealers; so allapplicable products carry the
original manufacturer’s warranty. To service
any product purchased at Future Bazaar, please visit the authorized
servicecenter of the manufacturer. The invoice accompanying the product is
yourwarranty document, so please preserve it.Guaranteed Delivery:We
guarantee to deliver the exact product you selected, without defects. Incase
you have received a different product, or if the product was damaged intransit,
please contact us within the stipulated time period and we will ensurethat we
replace it or refund you for it.Please note that delivery times vary according to
products. Although wedeliver goods within the committed time period, but
there could beoccasional delays. We will contact you, in case deliveries are
expected to getdelayed.Real Customer Support:Our customer support is
manned by real employees, not computers orcontract call centre personnel. Be
assured that when you call us that you aretalking to someone who can take
decisions and resolve your problems.Secure Payments:
We are committed to ensuring that no payment misuse happens, so we
workwith banks and payment gateways to ensure that your information
isprotected. Payments are protected both by us and by the policies of
yourbank, and the chances of fraud in these channels are actually very
low.FutureBazaar openly publishes its office addresses and is part of
India’slargest retail company with a presence all over India – so you know
how tocontact us in person, if required.Product range of Big Bazaar:
1-Apparel and Accessories for Men, Women and Children2-Baby
Accessories3-Cosmetics.4-Crockery.5-Dress Materials Suiting & Shirting.6-
Electrical Accessories.7-Electronics.8-Footwear Toys.9-Home Textiles.10-
Home Needs.11-Household Appliances.12-Household Plastics.13Hardware.14-
Home Decor Luggage.15-Linens.16-Sarees.17-Stationery.18-Utensils &
Utilities.2. SHOPPERS’ STOP:
The foundation of Shoppers Stop was laid on October 27, 1991 by the
K.Raheja Corp. group of companies. Being amongst Indias biggest
hospitalityand real estate players, the Group crossed yet another milestone
with itslifestyle venture - Shoppers Stop.From its inception, Shoppers Stop
has progressed from being a single brandshop to becoming a Fashion &
Lifestyle store for the family. Today,Shoppers Stop is a household name,
known for its superior quality products,services and above all, for providing a
complete shopping experience.With an immense amount of expertise and
credibility, Shoppers’ Stop hasbecome the highest benchmark for the Indian
retail industry. In fact, thecompany’s continuing expansion plans aim to help
Shoppers’ Stop meet thechallenges of the retail industry in an even better
manner than it does today.Vision & Values Of Shoppers’ StopVision
To be a global retailer in India and maintain its No. 1 position in the
Indianmarket in the Department Store category.ValuesThe following are the
values that help us in achieving our mission andvision: • We shall not take
what is not ours. • The Obligation to dissent (against a viewpoint that is not
acceptable). • We shall have an environment conducive to openness. • We
shall believe in innovation. • We shall have an environment conducive to
development. • We shall have the willingness to apologise and/or forgive. •
We shall respect our customers rights.
• The value of trust • We shall be fairMilestones-Year & Events:1991
Launched first Shoppers’ Stop store selling men’s wear at
Andheri(Mumbai)1992 Ladies apparel section added Children and non -
apparel accessoriessections addedDisney carnival organized, with official
Disney characters (Mickey,Minnie, Donald and Goofy) participating, In House
Retail ManagementTrainee Programme started1994 First Citizens Loyalty
programme launched1995 Second store opened (Bangalore)
1996 Festival of Britain celebrated in association with the
CommercialDepartment of the British Consulate1997 Shopper’s Stop as a body
corporate was incorporated on June 16.Festival of Indian tradition and culture,
‘Parikrama’, launched Co-brandedcredit card launched for FCC members in
partnership with HSBC.1998 Third store opened (Hyderabad), the then largest
with 72,287 sq. ft ofretail area SSL co-opted as India’s only member to the
IntercontinentalGroup of Department Stores (IDGS)1999 Implemented JDA
Retail ERP (a global leader in retail ERP packages)Fourth and Fifth stores
launched (Jaipur & Delhi)2000 Sixth & Seventh stores opened (Chennai &
Chembur,Mumbai) Placedequity with external investors to raise Rs 600
mnAcquired Crossword, one of India’s leading book retailing chain, fromIndia
Book House in partnership with ICICI Trusteeship Services Limited(A/c ICICI
Emerging Sectors Fund)2001 Implemented Warehousing Module of JDA,
Auto Replenishment andAuto Purchase Order system and business to
business connectivity
Eight and Ninth store launched (Pune & Bandra, Mumbai)Profit Linked
Reward System (PLRS) introduced for all employees2002 Tenth store opened
(Kandivali, Mumbai)2003 Received various industry awards from CMAI
(including BestRetailer of the Year) and from Nasscom (Best IT Practice in
RetailCategory)Signed Austin Reed licence for men’s outerwear for India
exclusively.Three stores launched taking the total number of stores to 13
(Mulund,Mumbai, Gurgaon and Kolkata)2004 Fourteenth, fifteenth and
sixteenth stores launched in February 2004(Malad, Mumbai), June 2004 (Salt
Lake City, Kolkatta) and October 2004(Bangeratta Bangalore) respectively
taking total retail area to 752,848 sq ft.Received Superbrand status for 2003 and
2004Received Images Retail award for the “Most favoured retail destination
ofthe year” – September, 2004.Received the “Organization With Innovative
HR Practices” award at theHR Excellence Awards organized by Mid - Day, Big
Break & Daks –November 2004.
Received Top retailer 2004 India Bronze award given by Retail Asia-Pacific
Top 500 awards.2005 Seventeenth store launched in April 2005 at Nucleus
Mall, Pune.Eighteenth and Nineteenth stores launched in May 2005 at
Dynamix Mall,Juhu Mumbai and at Bangalore.The Company makes an Initial
Public Offer of 69,46,033 Equity Shares ofRs.10 each at a premium of Rs.228 per
share aggregating to Rs. 1653.16million. The issue received overwhelming
response with a subscription ofmore than 17 times.Twentieth Store launched
at ‘Shipra Mall’, Ghaziabad, in June 2005.The Company acquired balance 49%
of the Equity Share Capital ofCrossword Bookstores Limited from ICICI
Emerging Sectors Fund, makingCrossword its Wholly Owned Subsidiary
Company.2006 Launch of BRIO at Bangalore. BRIO is a stylish, new world
ofgourmet coffee, specialty tea and delectable European bistro fare
whichpromises to offer something which all the coffee connoisseurs across
thecountry have never experienced beforeLaunch of mothercare at the Juhu &
Bandra Stores. ‘mothercare’ is theleading specialist retailer for mothers-to-be
and parents of young children,
offering the widest range of clothing, hardware and toys for the pre-
schoolchild, in the UK internationally.Launch of HyperCITY at Mumbai. We
made a foray into food and generalmerchandise retailing through Hypercity,
our 124,000 sq. ft hypermarket.The product offering includes fresh fruits and
vegetables, groceries,apparels, electronic appliances etc – all under one
roof.Shoppers Stop Limited is appointed as “Master Franchisee” of
CrosswordBookstores Limited for conducting the business of retail book
stores underthe trademark “Crossword” at all existing stores (Crossword
Owned Stores)wherever permissible and excluding stores which are operated
byCrossword’s existing franchisees.Launch of the second HomeStop at
Malad, Mumbai. The store is approx.49,000 sq. ft. on a single floor with
displays of bedrooms, living rooms, amodular kitchen and centre podium to
exhibit lifestyle displays in a liveatmosphere. The store has an array of brands
in kitchenware and bed linenfrom India and abroad.Launch of our first store in
the city of Nawabs, Lucknow. Measuringapprox. 53,000 sq. ft. spread over
three floors, it is the anchor store of theE-City Fun Republic Mall at Gomti
Nagar.
2007 Shopper’s Stop Limited has forays into airport retailing through a
jointventure with The Nuance Group AG of Switzerland, which is the
world’sleading airport retailer. The company bags concessions for retail
operationsat the Terminal 1B – Departure of the Mumbai Domestic Airport and
theGreenfield Bangalore International Airport for both domestic
andinternational terminals.Shopper’s Stop Ltd. and Hypercity Retail India Pvt
Ltd. sign a Memorandumof Understanding to enter into a franchise
arrangement for the ARGOSformats of catalogue and internet retailing, with
Home RetailCorporate Governance:The Company remains committed to the
concept of good CorporateGovernance practices in all its activities to ensure
the ultimate goal ofmaking the Company a value driven organization.Its
philosophy on the code of Corporate Governance is: • To ensure adequate
control systems to enable the Board to efficiently conduct the business and
discharge its responsibilities to shareholders. • To ensure that the decision
making process is fair and transparent. • To ensure fullest involvement and
commitment of the management for maximization of shareholders value.
• To imbibe the corporate values in the employees and encourage them in their
conduct. • To ensure the Company follows the globally recognized corporate
governance practices.The Board of Directors consists of seven Non Executive
Directors and twoExecutive Director viz; Managing Director & Executive
Director & CEO ofthe Company. All key decisions are taken only after detailed
deliberationsand discussions by the Board. The Board acts with autonomy
andindependence in exercising strategic decision making process
anddischarging its fiduciary responsibilities.The Board members are presented
with all the relevant information on vitalmatters affecting the working of the
Company as well as those which requiredeliberations at the highest level. It is
ensured that the information, asrequired under Annexure I to the provisions of
Clause 49 of the ListingAgreement is being made available to the Board
Members.The size and composition of the Board conforms to the requirements
of theCorporate Governance norms as stipulated under the provisions of
theListing Agreement entered into with the Stock Exchanges.
The Audit Committee consists of only non-executive directors, with
themajority being independent directors. Terms of Reference of the
AuditCommittee are as per Section 292A of the Companies Act, 1956 and
theguidelines as set out in the listing agreement entered with the
StockExchanges.As per the recommendation of the Compensation
/Remuneration Committee,the Board and the shareholders approves the
remuneration payable to theManaging Director & Executive Director & CEO of
the Company. TheCommittee also formulates the Employee Stock Option Plans
(ESOP).BRAND DIRECTORY OF SHOPPER’S STOPMen’s: • Austin Reed •
Van Heusen • Arrow • Louis Philippe • Indigo Nation • Scullers • Zodiac •
Excallibur • Allen Solly • Black Berry’s • Shapes • Easies
• Park Avenue • VF • Stop • Satya paul • Givo • Theme • Giovani • Life • Fried
Water • Mufti • Tuscan Verve • Weekender • Tantra • SpykarWomens: • Aliza
Donatein • Expozay • Black Berry’s • Allen Solly • Free Look • Wills Sport •
Weekender • Union Bay • One • Indian Earth • Life • Tangle • Upper Class •
Vibe
• Kraus • Biba • Ishvarah • Indifeel • Urban Trio • Affairs • Rang • Kashish •
Haute Curry • Sanna • Raviver • Rocky S Jeans • Triumph • Enamor • Vanity
FairKids: • Stop • Little Kangaroo • Disney Babies • Kids Studio • Winnie the
Pooh • Zero • Value M • Frills and Flowers • Weekender • Gini & Jony • Lee
Youth • Free Look • Pepe • Bunny Kids
• Kitten• Gini & Jony• Madigrass
3- Globus Retail:About the Company:Strong, Competitive, Innovative,
AdaptiveLaunched in January 1998, Globus is a part of the RajanRaheja group.
The company opened its first store in 1999 atIndore followed by the launch of
its second store in Chennai(T-Nagar). Soon to follow was another in Chennai
located inAdyar. The flagship store in Mumbai was opened on 1stNovember
2001 followed by a swanky new outlet in New Delhiin South Extension Part-
2.The sixth & seventh stores are in Bangalore in Koramangala &Richmond
Road respectively. The Eighth store in Ghaziabad atShipra Mall followed by
the ninth, tenth and eleventh inKalaghoda, Mumbai, Thane and Ghaziabad,
twelfth store atKanpur and thirteenth store in Ahmedabad & fourteenth
storein Lucknow.As of May 2008, Globus has opened its 24th Storein Nagpur
and the journey continues.
Mission: Achieve customer delight by offering quality products and services
through a process of continuous innovation and adaptation. Build a dynamic
team of committed and passionate employees through sustained learning and
grooming. Develop mutually beneficial relationships with our business
partners. Employ cost-effective processes and thereby create a strong
organization. Infrastructure:Globus Stores Pvt. Ltd. was formed to contribute
in therevolution sweeping the retail industry. Globus promises to bringabout a
perceptible change in the way apparel and lifestyleretailing has been carried so
far.Towards this end, modern international technology has beenbrought in
and heavy investments have been made in investingand acquiring the best,
tried and tested processes and proceduresof operation. • Research & Design •
Production & Merchandising • Marketing & Brand Development • Service •
Human resources
Future:Globus combines state of art international informationtechnology, the
highest quality human resources and sustainedfinancial commitment to realize
the long term vision. We arerapidly expanding and the target is to have an
additional 100fashion stores by the end of 2012.Product Ranges:Dress
Materials Suiting & ShirtingElectrical Accessories.Electronics
EquipmentsFootwear Toys.Home Textiles.Home Needs goods.Household
Appliances.Household Plastics.Hardware.Home Decor
Luggage.Linens.Sarees.Stationery.
Products Offered by Vishal Megamart:HOME FURNISHING:
Drawing RoomBedroomDoor MatBed SheetCarpetPillowsCurtainsPillow
CoverKitchenBathroomApronBath MatsKitchen NapkinTowel Gift Sets
FOOD MART:FOOD &BEVERAGESSPORTS & FITNESS:
INDOORGAMES OUTDOORGAMESBasket BallCricket BatT.T.
BatFootballBoxing KitLawn TennisSwimmingCostumesTennis RacketWater
BallTennis BallFitness Equip.
FOOTWEAR:BOYSGIRLSShoesSlippersSandalsSandalsLADIESMENSShoesShoesSlippersSlippers
TELEMART:CommunicationMobileAccessoriesMobileMobile
BatteriesMobile ChargerMobile DoriMENS:
UpperLowerShirt CasualJeans(MP)Shirt FormalCottonTrouser(MPC)Ethnic &
SportsWinter WearNight SuitsSuit(WMC)T-
ShirtsBlazer(WMB)DupattaWindcheater(WMW)SherwaniJacket
LADIES ACCESSORIES:
UpperLowerKurtaPants JeansSkirt TopCapriEthnicWinter
WearNightyJacketsLanchaStawlShararaBlazerSalwar SuitTrack Suit
INFANTS:
GarmentsAccessoriesHot PantBed SheetFrockUnder GarmentsBaba
SuitSocksWinter WearSweaterPull Over
WOMEN:
SareesPersonal
ItemsFancy(SRF)Cap(LCA)SyntheticsSocks(Las)BanarsiJewelleryCosmeticsNecklaceLIp
GlossRingNail Polish
KIDS BOYS:
LowerSetsWinterWearJeansNight SuitSuitBermudasBaba
SuitBlazerDungriesJacketUpperEthnicShirt FormalKurta-PyjamaT-
ShirtSherwani
KIDS GIRLS:
LowerSetsHot PantNight SuitSkirtCapri
SetDungriesUpperEthnicTops(GWTShararaFrock(GFK)Lancha
TRAVEL ACCESSORIES:
LuggagesPortfolio BagsSuitcaseShoulder BagsPouch & CasesExecutive
BagWaist PouchSchool BagsVanity Cases
HOUSEHOLD:
Acrylic WareCopperSteelDinner SetmugCake ServerHome
AidsPressureCookerNon StickFloor WiperCookerHandiSanitary
BrushPressure PanDosa TawaGeneral PlasticGoodsElectricalApp.Bone
ChinaCoffee Mug ChopperSoup SetBucketMicrowaveOven
LIFESTYLE:
Time ZoneOpticalsGifts &NoveltiesLadies WristWatch Ladies SunGlass
Flower VaseMens WristWatchMens Sun GlassKey
ChainMensAccessoriesElectric &ElectronicsItems Perfume/DeoBeltsBattery
(ABT)SprayWalletsCalculatorDeo
TOYS & GAMES:
Soft Toys Dolls Cycles &ScootersMusical ToysBarbie DollCyclesNon-
MusicalOther DollsScootersBoard GamesInfant ToysVideo
GamesWoodenBlocksTeetherT.V. VideoGamePuzzlesSwingHand VideoGame
STATIONARY:SchoolOfficePaper MartExam BoardOffice
FileDiaryClayPunchingMachineFileParty StuffBalloonsRibbons
SWOT ANALYSISSTRENGTHS:
We can encash brand image of Vishal Retail Ltd. to sell its new product. It
sells product at cheaper prices. Garment sector of the Vishal is much more
superior to other retail stores. It offers wide range of products under one
roof. It provides good after-sale service. It is the only store in Lucknow
where you can exchange the goods after purchase. (On selected items). The
Vishal Mega Mart is situated at the big market place. It segments on middle
and lower middle income groups, which constitute majority of the population
in India. It has welled design store & well organized store.WEAKNESSES:
Absolutely no brand awareness for the product. (Z-Line). Need to
incorporate many new features as per customer requirement. Lack of proper
extraction of work from staff. Need to include more varieties of the same
item. Need to provide more offers/ discounts on FMCG. Here the perception
of the people is quite low, because from my consumer behavior survey I have
found out that most of respondents think that Vishal Mega Mart is not
providing good offers/discounts on FMCG in comparison of Big bazaar.
Need to improve store layout according to customer facility. People are not
so modern in Lucknow and their perceptions are quite
advance.OPPORTUNITIES:
No other big competitor in that area. To increase the customer satisfaction
by providing different variety of products. Z-line (Manufacturing unit of
Vishal) if we create the brand image of it. It will get additional sales in the
future. Coming era is of knowledge and information if we sell our
manufacturing unit product through internet so we can create its brand image
+ additional sales in future. There is a boom of retail in future according to
current scenario. If Vishal creates brand image of its Z-line product, so it can
give direct competition to the other branded products in future.THREATS:
Big bazaar, Spencer, Reliance and Globus are the main competitors.
Overseas group entering the market. Increased competition in the domestic
market.
STRENGTHS OF COMPETITORS: The Big Bazaar is situated at the
Saharaganj mall, Lucknow. It has welled design store of 70,000sqft and well
organized store. The Spencer is situated at Nishalganj and different other
public locations. It segments all age groups and income groups.
Additional space for the display. Competitors provide good salary to the
staff. Large number of staff working in the competitors’ organization. It
gets credit from MNC’s for the extended period of time. Regular advertising
in newspaper, radio, and TV for reminding the customers about its stock.
Good space for parking of the competitors’ at different locations of the retail
outlets.
RESEARCHMETHODOLOGY
Research Methodology:Research methodology is the way to systematically
solve the researchproblem .It may be under stood as a science of studying to
how research isdone scientifically. In it we study the various steps that are
generally adoptedby a researcher in studying his research problem along with
the logic behindthem.In research methodology we not only talk of the research
methods but alsoconsider the logic behind the methods we use in the content
of our researchstudy and explain why we are using a particular method and
why we are notusing others so that research results are capable of being
evaluated either bythe researcher himself or by others.Secondary data are
those which have been collected by someone else andwhich have already
been passed through the statistical process. There areseveral ways by which
secondary data can be classified.
Survey Method:The survey is a non-experimental, descriptive research
method. Surveys canbe useful when a researcher wants to collect data on
phenomena that cannotbe directly observed (such as opinions on library
services). Surveys are usedextensively in library and information science to
assess attitudes andcharacteristics of a wide range of subjects, from the
quality of user-systeminterfaces to library user reading habits. In a survey,
researchers sample apopulation. Basha and Harter (1980) state that "a
population is any set ofpersons or objects that possesses at least one
common characteristic."Examples of populations that might be studied are 1)
all 1999 graduates ofGSLIS at the University of Texas, or 2) all the users of UT
GeneralLibraries. Since populations can be quite large, researchers directly
questiononly a sample (i.e. a small proportion) of the population
Types of Surveys:Surveys can be divided into two broad categories: the
questionnaire and theinterview. Questionnaires are usually paper-and-pencil
instruments that therespondent completes. Interviews are completed by the
interviewer based onthe respondent says. Sometimes, its hard to tell the
difference between aquestionnaire and an interview. For instance, some
people think thatquestionnaires always ask short closed-ended questions
while interviewsalways ask broad open-ended ones. But you will see
questionnaires withopen-ended questions (although they do tend to be
shorter than in interviews)and there will often be a series of closed-ended
questions asked in aninterview.Survey research has changed dramatically in
the last ten years. We haveautomated telephone surveys that use random
dialing methods. There arecomputerized kiosks in public places that allows
people to ask for input. Awhole new variation of group interview has evolved
as focus groupmethodology. Increasingly, survey research is tightly
integrated with thedelivery of service. Your hotel room has a survey on the
desk. Your waiterpresents a short customer satisfaction survey with your
check. You get a callfor an interview several days after your last call to a
computer company for
technical assistance. Youre asked to complete a short survey when you visita
web site. Here, Ill describe the major types of questionnaires andinterviews,
keeping in mind that technology is leading to rapid evolution ofmethods. Well
discuss the relative advantages and disadvantages of thesedifferent survey
types in Advantages and Disadvantages of Survey
MethodsQuestionnaires:When most people think of questionnaires, they
think of the mail survey. Allof us have, at one time or another, received a
questionnaire in the mail. Thereare many advantages to mail surveys. They are
relatively inexpensive toadminister. You can send the exact same instrument to
a wide number ofpeople. They allow the respondent to fill it out at their own
convenience. Butthere are some disadvantages as well. Response rates from
mail surveys areoften very low. And, mail questionnaires are not the best
vehicles for askingfor detailed written responses.A second type is the group
administered questionnaire. A sample ofrespondents is brought together and
asked to respond to a structuredsequence of questions. Traditionally,
questionnaires were administered ingroup settings for convenience. The
researcher could give the questionnaireto those who were present and be
fairly sure that there would be a high
response rate. If the respondents were unclear about the meaning of aquestion
they could ask for clarification. And, there were oftenorganizational settings
where it was relatively easy to assemble the group (ina company or business,
for instance).Whats the difference between a group administered
questionnaire and agroup interview or focus group? In the group administered
questionnaire,each respondent is handed an instrument and asked to complete
it while inthe room. Each respondent completes an instrument. In the group
interviewor focus group, the interviewer facilitates the session. People work as
agroup, listening to each others comments and answering the
questions.Someone takes notes for the entire group -- people dont complete
aninterview individually.Survey Interviews:Interviews are a far more personal
form of research than questionnaires. Inthe personal interview, the interviewer
works directly with the respondent.Unlike with mail surveys, the interviewer
has the opportunity to probe or askfollow-up questions. And, interviews are
generally easier for the respondent,especially if what is sought is opinions or
impressions. Interviews can bevery time consuming and they are resource
intensive. The interviewer is
considered a part of the measurement instrument and interviewers have to
bewell trained in how to respond to any contingency.Almost everyone is
familiar with the telephone interview. Telephoneinterviews enable a researcher
to gather information rapidly. Most of themajor public opinion polls that are
reported were based on telephoneinterviews. Like personal interviews, they
allow for some personal contactbetween the interviewer and the respondent.
And, they allow the interviewerto ask follow-up questions. But they also have
some major disadvantages.Many people dont have publicly-listed telephone
numbers. Some dont havetelephones. People often dont like the intrusion of a
call to their homes. And,telephone interviews have to be relatively short or
people will feel imposedupon.Constructing the Survey:Constructing a survey
instrument is an art in itself. There are numerous smalldecisions that must be
made -- about content, wording, format, placement --that can have important
consequences for your entire study. While theres noone perfect way to
accomplish this job, we do have lots of advice to offerthat might increase your
chances of developing a better final product.First of all youll learn about the
two major types of surveys that exist, thequestionnaire and the interview and
the different varieties of each. Then
youll see how to write questions for surveys. There are three areas involvedin
writing a question: • determining the question content, scope and purpose •
choosing the response format that you use for collecting information from the
respondent • figuring out how to word the question to get at the issue of
interestFinally, once you have your questions written, there is the issue of
how bestto place them in your survey.Youll see that although there are many
aspects of survey construction thatare just common sense, if you are not
careful you can make critical errorsthat have dramatic effects on your results.
Details Of Research:Method Used: Survey methodType Of survey:
InterviewInstrument used: QuestionnaireSample size: 200Data used: Both
Primary & SecondaryData Collection:Data Collection is an important aspect of
any type of research study.Inaccurate data collection can impact the results of
a study and ultimatelylead to invalid results.Data collection methods for
impact evaluation vary along a continuum. Atthe one end of this continuum
are quantatative methods and at the other endof the continuum are Qualitative
methods for data collection .
Data collection methodsThe Quantitative data collection methods, rely on
random sampling andstructured data collection instruments that fit diverse
experiences intopredetermined response categories. They produce results that
are easy tosummarize, compare, and generalize. Quantitative research is
concerned withtesting hypotheses derived from theory and/or being able to
estimate the sizeof a phenomenon of interest. Depending on the research
question,participants may be randomly assigned to different treatments. If this
is notfeasible, the researcher may collect data on participant and
situationalcharacteristics in order to statistically control for their influence on
thedependent, or outcome, variable. If the intent is to generalize from
theresearch participants to a larger population, the researcher will
employprobability sampling to select participants. Typical quantitative
datagathering strategies include: • Experiments/clinical trials. • Observing and
recording well-defined events (e.g., counting the number of patients waiting in
emergency at specified times of the day). • Obtaining relevant data from
management information systems.
Primary Data Collection:The considerable and diverse array of primary data
methods includes, e.g.,true experiments such as randomized controlled trials
(RCTs) and othercontrolled trials; other prospective but uncontrolled trials;
observationalstudies such as case-control, cross-sectional studies, and
surveillance studies;and simpler designs such as case series and single case
reports or anecdotes.These methods can be described and categorized in
terms of multipleattributes or dimensions, such as whether they are
prospective orretrospective, interventional or observational, controlled or
uncontrolled, andother attributes noted below. Some of these methods have
alternative names,and many studies employ nearly limitless combinations of
these attributes • Primary data used in this project is mainly collected through
questionnaire which has been taken with the help of sample size which has
been taken and after that the entire data has been manipulated.
Secondary data:Secondary data originally collected for a different study, used
again for anew research question. o Service District Statistics including basic
client counts, attributes, demographics, social conditions and lots of program
information (analogous to public schools and school teachers, who constitute
some of the most accountable of public servants). o Other Social and
Economic Indicators, Consumer Price Index, unemployment figures, inflation
indicators, Income Figures, etc. o Resource Inventories and other needs
assessments o Opinion Polls taken by others o Budgets • The secondary data
used in this project is : through internet through books of retail
company profiles of big bazaar and shopper’s stop
QUESTIONNAIRE ANALYSIS
QUESTIONNAIRE ANALYSIS: Q1. How often do you visit the store? a. Once
in a week. b. Twice in a week. c. Once in a month. d. Twice in a month. e. Once
in a year.200 once in a week175150 twice in a week125 once in a100 88 month
75 twice in a 50 40 40 month 25 22 once in a year 10 0 Visit of respondents in
the store Result: From the survey it is concluded that maximum visit of
respondents are twice in a month.
Q2. Which section of the store does you like the most? a. Food mart. b. Home
ware. c. Household. d. Medimart. e. Kids. f. Jewel mart.200 Foodmart175150
Homeware125 Household100 84 Medimart7550 48 Kids 4025 18 10 Jewelmart 0
0 Divisions Result: As per the responses about 84 respondents like the food
mart section.
Q3- Are you satisfied with the customer service offered? a. Good. b. Average.
c. To an extent. d. Need to be improved.200 Good175150 Average125100 84 To
an extent75 6050 30 2625 Need to be improved. 0 Customer service offered
Result: From the survey it is concluded that maximum number of respondents
are assuming that the customer service offered here is average.
Q4- Main reason for coming to the store? 1. Value for money. 2. Discounts. 3.
Product range offered. 4. Nearby. 5. Saving of time. 6. Other.200 Value for175
money Discounts150125 Product range offered100 Nearby75 70 45 Saving of
time50 3525 20 27 Other 3 0 Reasons for coming to the store Result: From the
survey it is concluded that maximum number of respondents are coming to the
store because it is near to their home.
Q5- Distance covered while coming to the store? a. 0-5 kms. b. 5-10 kms. c. 10-
15 kms. d. More than 15 kms.200 0-5 kms175150 5-10 kms125100 92 10-15 kms75
6550 30 More than 1525 13 kms 0 Distance preferred (in kms) Result: As per
responses about 90 respondents stay 0-5 kms from the store.
Q7- Preferred timing of coming to the store? a. 10:00-11:59 a.m. b. 12:00-5:59
p.m. c. After 6:00p.m. Evening after 6:00p.m. 20 50 Afternoon 12:00- 5:59p.m.
130 Morning 10:00- 11:59amResult: As per responses about 110 respondents
preferred tocome in store in the evening after 6:00 p.m.Question No.8-
Have you heard about Z-Line? a. Yes. b. No. YES 12% NO 88%There is
absolutely no brand awareness for Z-line (Vishalmanufacturing unit product)
Vishal Retail Ltd. must do measuresto promote its brand, make ads both in
print and electronic media.Making stalls in corporate melas like trade fair can
help. Question No.9-
Apart from Vishal where do you shop for daily items? a. Big bazaar. b. Globus.
c. Shopper’s Stop. d. Subiksha. e. Local markets. f. Other.200 Big bazaar175150
Reliance125 120 Spencer100 Subiksha7550 42 Local markets25 10 14 5 9 Other.
0 Retail Stores Result: As per responses about 120 respondents preferred local
markets apart from Vishal. Q10- What medium of advertisement do you
respond to?
a. Magazine. b. T.V (local cable channel). c. Local newspaper. d. Radio. e.
Relatives/ Friends. f. Visuals. g. Other.200 Magazine175 T.V.150125 Local
newspaper100 94 Radio 75 50 45 Relatives/ 29 26 Friends 25 Visuals 6 0 0 0
Ways of informing about Other. VishalResult: From the survey it is concluded
that maximum number ofrespondents knows about Vishal through local
newspaper.Q11- What sort of services would you will like the most gorthe
betterment of the different stores?
a. More variety. b. Discount on branded products. c. Discount on FMCG. d.
Better Customer service.200 More variety175150125 Discount on Branded100
Products 78 Discount on 75 56 FMCG 50 36 30 25 Better customer 0 service.
Suggestions Result: As per responses about 75 respondents preferred
discounts on F.M.C.G. Q11- How much rating will you give to this store?
a. Average. b. Very Good c. Excellent d. Can’t Say rating of the retail store 14%
23% excellent very good average 29% cant say 34%Result: As per responses
about 23% respondents said that itsrating is execellent.
SUGGESTIONS: Company need to spend a lot on advertising and
promotion to create brand image of its product. Make frequent
advertisements in both print and electronic media. Making stalls in
corporate melas like trade fair, maybe beneficial to create brand image of its
product. Need to provide additional offers and discounts as per customer
requirements. Need to include varieties of similar item. Provide more
discounts on FMCG. Provide better customer service. Maintained proper
display to create impulse. (It is assumed that near about 70% sales comes from
impulse marketing and if proper display is not maintained impulse cannot be
created). Better if we provide filtered information about Vishal.
Conclusion:After completing this research we come to know that Only Big
Bazaar isahead of Vishal Stop because of its prime Location and higher
product range.Shoppers’ Stop is new in Lucknow as compared to Vishal
Megamart and it isslowly covering its market. But there are few areas where
these malls needsamendments and these suggestions are mentioned in these
malls. Advertisingis an important factor of getting sales promotion and Vishal
Megamart isahead of Shoppers’ Stop in that case, but Product Quality of
Shoppers’ Stopis better than Big Bazaar. Product Range of Shoppers’ Stop is
better than thatof Big Bazaar.Overall Vishal Megamart is ahead of Stopers’
Stop and Globus Retail,but just little behind to Big-Bazaar.
LIMITATIONS OF THE STUDY: Sometime respondents are not taking
interest in such type of surveys therefore there is chance that they might be
giving wrong information. The respondents are free from all barriers so
he/she can give his/her opinion which may not be true in many occasions.
The staff of the Vishal only provides/ communicates the merits of its products.
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