THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

NEW DELHI

THESIS ON

A STUDY OF CUSTOMER PERCEPTION STUDY WITH RESPECT TO VISHAL MEGA MART SUBMITTED TO:

Prof. sumanta sharma

prof. vijay kumar boddu

Under the guidance of:

mr. mukesh jindal

SUBMITTED BY:

ALUMNI ID NUMBER:

Batch:ABSTRACT

Retailing is the business where an organization directly sells its products and services to an end consumer and this is for his personal use. By definition whenever an organization be it a manufacturing or a whole seller sells directly to the end consumer it is actually operating in the Retail space. This industry has traveled a long way from a humble beginning to a situation where worldwide Retail sales is more than $ 7 Trillion .

Retailing has played a vital role worldwide in increasing productivity across a wide range of consumer goods and services. The impact can be best felt in countries like USA ,UK ,Mexico ,Thailand and more recently in China. Economies of countries like Singapore , Hong Kong and Malaysia are also heavily boosted by the Retail Industry.

It is a changing Industry and old traditional ways of doing business has lost relevance nowadays. It is an Industry which is heavily dependent on consumer spending . In this ecosystem consumers play the most important role. As a result of this, Retailers are continuously challenging themselves to find out ways and means of identifying customers need . They are busy in devising new strategies to have an atomic level understanding of consumer demand.

Signatory Page

TO WHOMESOEVER IT MAY CONCERN

This is to confirm that_____________, student of IIPM, NEW DELHI, is doing a live project(Thesis) on the topic A study of Customer Perception Study With Respect to Vishal Mega Mart under my guidance and that the work being done by the candidate is original and is of the standard expected by an MBA student.

May god bless her with all success in her career.

Warm regards

topic approval LetterTOPIC: A study of Customer Perception Study With Respect to Vishal Mega MartINTRODUCTION

My topic is customer perception on strategy followed by Vishal Mega Mart for brand building. To make a good brand image a company need to make a good strategy and all aspects of business that affected by that strategy. As we all know customer is the king of the market the have the right to go anywhere. A customer thinks very differently that called consumer behavior. A customer wants to get the full value of their money whatever he buys he wants full satisfaction from that product and if the company succeeds to satisfy their customer then the company can easily make their brand image.

RESEARCH OBJECTIVE

1. Understanding the process by which merchandise buyers make their decisions and the degree to which their decisions are optimal

2. To understand the role of private labels and their impact on retail sales and profitability.

3. Brand positioning of Vishal Mega Mart.

4. To find the brand personality of Vishal Mega Mart and its impact on both merchandise and overall store image across market segment.

5. To compare the sales and profitability of branded and non-branded products at Vishal.

6. To study the consumer purchasing behaviour.

7. To identify the buying motivation and concerned factors while consumers to select merchandise at vishal Mega Mart.

8. To study and analyze the customer perception about FMCG Products.9. To know the effect on sales after advent of organized retailing.10. To know the level of customer satisfaction visiting Vishal Retail shops.11. To study the changing trends in branded retail industry.12. To analyse the key aspects of apparel branding and retailing.13. To study the targeting segmenting and positioning in the apparel retail industry.HYPOTHESIS

Customer Perception can be changed over the period of time provided with the good marketing and customer service approach.

Customer perception impact to the balance sheet of the firm.

RESEARCH METHODOLOGY

This include both primary as well as secondary research

PRIMARY RESEARCH: -

I will collect the data from the customer who is visiting to the store.

SECONDARY RESEARCH: -

I will collect the Secondary data from the Internet, Book and Journal.

Tool Used:

Bar Graph , Pie Diagram

Sampling Method:

Random Sampling chosen by the gathering of data ( I will collect the data from 100 individual customer)

Target Audience:

Dealers, Distributors & Marketing manager of the firm

SCOPE OF THE WORK

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016.

JUSTIFICATION OF THE CHOOSING TOPIC Today, the role of the distributor as an intermediary has morphed into that of a 'disintermediary'. A distributor plays a virtual role, an almost invisible part of a smooth supply chain. Third-party logistics providers help ship goods from one part of the globe to another in a day, while a more customer-centric distribution chain enables direct ordering and tracking of orders over the Internet. The use of databases, communication systems and the foremost advanced software are crucial to any supply chain management system. Optimal management of a supply chain results in revenue enhancement through high customer satisfaction and repeat sales. Web enabling a supply chain helps connect an enterprise to all its trading partners taking away all the weak links existing within it. AcknowledgementIt is well-established fact that behind every achievement lays an unfathomable sea of gratitude to those who have extended their support and without whom the project would never have come into existence.

I express my gratitude to IIPM, New Delhi for providing me an opportunity to work on this thesis as a part of the curriculum.

Also, I express my gratitude to Prof. Sumanta Sharma and Prof. Vijay Kumar Boddu on the completion of my project.

ContentAbstractiiSignatory pageiiiTopic approval letterivAcknowledgmentv

Approved thesis synopsisviiIntroduction 1

Company profile25

literature review41

research methodology57

finding and analysis59

CONCLUSION71recommendation73

Bibliography75

annexure questionnaire76

INTRODUCTION

Global Retailing

The top 200 Retailers alone contribute for 30% of worldwide demand. Retail sales is generally driven by peoples ability (disposable income) and willingness (consumer confidence) to buy goods and services. Money spent on household consumption worldwide has increased by 68% between 1980 and 2003. The leader has unquestionably been the USA where some two-thirds or $ 6.6 trillions out of the $ 10 trillions American economy is consumer spending. Consumers are spending around $ 3 trillions on discretionary products and services. Retail turnover in the European Union is around Euros 2000 billion and the average growth in this sector seems to be following an upward trend. The Asian economies (excluding Japan) are expected to grow at 6% consistently till 2005-06. Positive forces at work in Retail consumer markets today include high rates of personal expenditures, low interest rates, low unemployment and very low inflation. Negative factors that impact retail sales involve weakening consumer confidence.

Top Retailers of the World:

Rank Country of Origin Name of Company Formats

1 US Wal -Mart Discount, Hyper market,

Supermarket, Superstore, Warehouse

2 France Carrefour Cash& Carry , Convenience, Discount, Hypermarket, Supermarket

3NetherlandRoyal Ahold Cash and Carry

4 US Home Depot DIY, Specialty

5 US Kroger Convenience, Discount, Specialty, Supermarket, Warehouse

6 Germany Metro AG Cash& Carry, Department, DIY, Hypermarket, Specialty, Superstore

7 US Target Department, Discount

8 US Albertsons Drug, Supermarket,

Warehouse

9 US Kmart Discount, Superstore

10 US Sears Department, Mail Order, Specialty

Type of Retailers:

Retail Organizations have shown great variety and different format of stores are coming up quite rapidly. Generally Retailers can be of six types.

1. Specialty Store

This stores are characterized by narrow product lines but with deep assortments such as Apparel Stores , Sporting goods store, Furniture store ,Florist and Book store. Under this also there could be specializations like limited line store ( eg. Mens clothing store) and Super specialty store (eg. Mens custom shirt store ). Example of such stores are Athletes foot ,Tall men.

2. Departmental Store

Several Product Lines typically clothing ,home furnishing and household goods with each line operated as a separate department managed by specialist buyers and merchandisers Examples Sears, JC Penny , Nordstrom.

3. Supermarkets

Relatively large ,low cost ,low margin high volume ,self service operation which is designed to cater total needs for food, laundry, household maintenance products .Supermarkets earn an average profit of only 1 percent on sales. Example : Safeway, Kroger.

4. Convenience Store

These are the stores which are relatively small in size and they are located near residential area , normally remains open seven days a week and carrying a limited line of high turnover convenience products at slightly high prices. Many have added take away sandwiches , coffee and pastries. Example : 7-Eleven ,Circle K

5. Discount Stores

Standard merchandise sold at lower prices with lower margin but higher volumes. Actual discount stores regularly sell merchandise at lower prices and offer mostly national brands. In Discount retailing , Discount specialty retailing is also present eg. discount electronic store or discount book store Example : Wal- Mart (all purpose discount store) , Kmart . Specialty : Crown Bookstore.

6. Off Price Retailers.

Merchandise bought at less than regular wholesale prices and sold at less than retail prices. Often left over goods , irregulars obtained at reduced prices from manufacturers and other retailers.

Factory outlets are owned and operated by manufacturers and they normally carry manufacturers surplus ,discontinued and irregular goods. Example : Mikasa (Dinnerware ) and Dexter(Shoes).

Characteristics of Retail Industry:

The spectrum of Retail Industry is quite wide in nature. Retail serves consumers through a small grocery store to a huge departmental store. Retail Industry is heavily dependent on consumer spending. In fact 2/3 of US GDP is coming from Retail business. Retail is the second largest industry in US. It has employed 23 Million people . During economic slow down consumer spending decreases and it poses threat to the Retail industry. Consumers confidence is one of the key drivers of the industry.

Decline in Small Stores

It is observed that small independently owned stores are gradually loosing their foothold in the market place. These stores are generally called Mom and Pop stores and they offer limited merchandise to the consumer. These store are facing stiff competition from the large departmental stores or superstores and in this process they are closing down their shutters. In many locations the arrival of a superstore has forced nearby independents out of business. In the book selling business Barnes & Noble superstore or Borders Books and music usually puts smaller bookstores out of business. This is a major characteristic prevailing worldwide. But it is also true that many small independent outlets still thrive by knowing their customers better and providing them with more personalized service.

Internet and E-Commerce

Internet the ubiquitous medium has opened a new avenue in front of the Retailers. It has offered an opportunity to the consumers to shop from the home. As it stands today overall Retail sales through internet may not be that significant but gradually it is gaining popularity amongst consumers. Amazon.com is the company which is very successful in this E commerce domain.

Repositioning of Departmental Stores

The appeal of big departmental store is in the wane and they are trying to reposition themselves. They are repositioning their product lines to survive in this highly competitive market eg. A departmental stores which is supplying general merchandise to the consumer is changing themselves to a giant apparel store.

Rise in Discount stores

Supremacy of Discount store is also one of the distinct characteristics of Retail Industry today. Discount stores offer money back guarantee, every day low price etc to lure customers. They also provide floor help and easy access to the merchandise to facilitate the consumer. Wal- Mart the worlds largest Retailer comes under this category of Retail store.

Category Killers

There are Retailers who actually concentrate on one particular product category and grab a lions share of that market and outperform their competitors. They are called Category Killers. Toys R Us (Toy market ), Home Depot (Home Improvement) , Staples (Office Supplies) are the examples of such Retailers who have grabbed a major market share in that product category and they have forced a reduction in the number of players in that product segment. This is also a distinct trend observed in the current Retail market. Ten years back there were number of players in the toy market and no one was controlling more than 5% of market share but now the number of players has come down to six and Toys R Us is enjoying 20% market share.

Direct Marketing

With the advancement of technology Retailers have found another sales channel through which they can reach the consumer and this is direct marketing. Direct marketing has their root in direct mail and catalog marketing (Lands End and LL Bean). It includes telemarketing, television direct response marketing. (Home shopping network, QVC) . Although an overwhelming majority of goods and services is sold through stores, non store Retailing is also growing at a faster rate. Direct selling is $9 Billion industry with around 600 companies selling door to door. Avon ,Electrolux ,Southwestern company ,Tupperware and Mary key cosmetics are the examples who have adopted this strategy successfully.

Demographic Changes

Retail industry is impacted by the demographic changes. As a result of this change taste of the consumer is undergoing a change and it creates a demand for certain products. World wide Retailers are keeping a close watch on this change and they are trying to realign themselves with this change.

Mergers and Acquisitions

Retailers who want to dominate the market place have adopted the strategy of mergers and acquisitions. This is also one of the distinct trends in Global Retail Industry today. Instead of achieving an organic growth Retailers can grow significantly with the help of mergers and acquisitions. This helps them to occupy more shelf space in the market place. As the volume increases they are establishing better control over their suppliers and they are reducing the procurement cost and in that way they are boosting their profitability. This is driven by the economic growth factors, size ,revenue pattern and the customer demand. Sears and Lands End merger is one of the significant mergers which has happened in recent times. Another important example would be Nikes acquisition of Hurley, a well known surfing brand. This has helped Nike to enter in to a new market segment.

Operational Issues:

In order to survive in this Industry, which is driven by the consumer demand Retailers need to successfully counter the operational issues. If the Retailers fail to diagnose and address those operational issues their existence will be jeopardized.

Supply Chain Management and Logistics

The process of getting goods to the customer has been traditionally known as Physical Distribution. Physical Distribution starts at the factory and it ends at the store. Nowadays the definition of Physical distribution is expanded and a broader concept has come which is Supply Chain Management. Ideally Supply Chain Management encompasses the material flow from suppliers suppliers to the final destination. Retailers need to have a grip on that whole chain in order to control the procurement and delivery cost. This will help them to choose the right supplier for the merchandise. Retailers need to come out of the constricted view about the supply chain which is viewing the market as a point to point destination, instead they need to consider the holistic picture which is a part of Market Logistics. Market Logistics involves physical flow of materials from point of origin to the point where it meets the customers requirement.

This Demand Chain orientation can help them to cut down the procurement cost to a great extent. IKEA the global furniture retailing giant has successfully addressed this issue and they are able to sell quality furniture at a much lower cost than his competitors.

Pricing

In Retailing environment pricing has become a burning issue to the retailers. Customers expectation from a Retail store has become very high and customers are looking for more and more bargain prices. This situation can be referred as Price drought . Price deflation is taking hold in the Retail environment and any reduction in volume is complicating the scenario further. This trend is quite evident in Apparel and Consumer goods market. Pricing seems to be a key positioning factor and must be decided in relation to the target market , Assortment mix and competition. Strategic pricing has become an important strategic tool to the retailers. Airlines Industry started this strategic pricing technique where the underlying philosophy is not all consumers want a particular product at the same time and the degree of demand will also vary. With this idea in mind different consumers are charged different prices for the same product or service. Retailers need to adopt the right pricing tactics in this environment of fierce competition. Retail stores markdown the price for some items to attract people, this is called traffic building. They also run storewide reduction sell. It is observed that a shoe Retail outlet sells 50% of the product at normal mark up , 25% of the product at 40% mark up and remaining 25% at cost. Some Retailers have done away with sales pricing and they are resorting to everyday low price (EDLP). It leads to lower advertising cost , greater pricing stability and higher Retail profits. Wal- Mart uses this kind of pricing strategy.

Sales Channels

Design of sales channel is also a key operational issue in todays Retail industry. Technology has become one indispensable business component and Retailers need to make use of this successfully. Retailer needs to come out from the mindset of traditional store retailing and they need to use all available channels to reach a wider consumer community. Amongst Non store Retail channels Internet and E commerce is gradually gaining popularity. Consumers do not need to come to store for buying goods or service they can do that over a click of a button from their drawing room. Retailers need to derive benefit from that . Marketing through call centre or catalogue marketing is also an emerging trend . Retailers need to choose sales channels carefully and need to use all those channels effectively to acquire more customer centricity. Ultimate objective here is to offer a consumer a tailor made shopping experience and to provide more easy access to his product and service offering.

Strategies in Retail:

A business firm can not travel in an unplanned way . To encounter the business challenges in a highly competitive environment and to find out a sustainable growth road map Retailers need to realize the importance of strategic planning. Strategic planning can be viewed as a stream of decisions and activities which lead to Effective business strategies which help the organization to fulfill its objectives. Retail landscape is changing rapidly and in this changing economic environment Retailers need to find out the right strategy which will help them to cope up with this environment and empowers them to take right decisions for the future. Adopting correct strategy will help the Retailers to optimize their resources and also it will give an edge over its competitors. Margin and Turnover are the two important parameters of Retail Industry and the Retail operations can be classified into four groups/quadrants.

i) High Margin and High Turnover eg. a convenience food store

ii) Low Margin and High Turnover eg. a discount store

iii) Low Margin Low Turnover i.e .a dying business

iv) High Margin Low Turnover eg. an up market specialty store.

Retail business needs to formulate the suitable strategy after considering its strengths and weaknesses. Hence SWOT analysis will be an effective tool in determining the correct strategy for the particular category of retail business.

IT in Retail:

Information Technology has become a key business driver in todays world. Retailers are also trying to reap in the benefits of the technology. Thus technology has become a critical and competitive tool for surviving in the business. Retailers are using software systems to manage and plan their inventory , to reduce the procurement costs , electronic ordering , electronic fund transfer , e mail communication and for many other things. IT is poised to take a much bigger role in Retail Industry however the high implementation cost of IT projects has restricted many Retailers to go for proper IT solution. IT growth areas in Retail are mentioned below.

Supply Chain Management:

Supply chain is one of the focus areas for the Retailers and immense opportunity of business process improvement and scope of technological empowerment is there in this area. In todays tough economic climate customers have become price sensitive and there is a price draught in the market . Retailers are struggling to control the cost and in this environment effective Supply Chain Management can act as a big contributor. It helps them to integrate with their suppliers and through collaborative planning retailers can reduce the cost. SCM solutions will enable Retailers to track their inventory movement from suppliers premises to the point of sale. It gives a better visibility in the area of demand planning, forecasting and inventory management. Worlds largest Retailer Wal Mart has adopted a state of the art SCM system which not only tracks the inventory but also it increases the efficiency of the process. Wal Mart has also introduced the Radio Frequency Identification (RFID) of merchandise.

CRM

CRM continues to be a growth area for IT in Retail sector. Advancement in this field helps to maintain sophisticated customer database and systems that can maximize multi channel returns. This helps the retailers to understand the customers demand pattern and enables them to offer a tailor made shopping experience.

Internet

Internet has unfolded lot of opportunities to the Retailers. Retailers can do business over internet. It can also be used as a communication medium. Successful Retail community uses internet technology for reliable communication between Retailers , customers and suppliers.

Business Intelligence

Business Intelligence is an effective analytical tool which helps the Retailers to understand the eco system of retail business . It helps the business community to take mission critical business decisions which will help them to navigate in the right direction. In todays world Retailers equipped with such data mining or data warehousing tool can have the micro level understanding of customer demand.

Retail scenario in India:

Overview :

Economic liberalization has brought about distinct changes in the life of urban people in India. A higher income group middle class is emerging in the Indian society. Demographic changes have also made palpable changes in social culture and lifestyle . In this environment Indian Retail Industry is witnessing rapid growth . AT Kearney has ranked India as fifth in terms of Retail attractiveness. The industry has got tremendous potential but it also requires sufficient capital flow. Current Foreign Direct Investment policy of Indian Government does not allow any foreign direct investment in this sector however different global retail players are seriously eying this market.

Industry Characteristics :

Indian Retail Industry is the largest employer after Agriculture (around 8% of the population) and it has the highest outlet density in the world however this industry is still in a very nascent stage. The whole market is mostly unorganized and it is dominated by fragmented Kirana stores. A poor, supply chain and backward integration has weakened the whole process. Organized corporate retailers contribute only a negligible percentage of the overall retail business. Organized and trained Retail workforce is not available in India and the overall skill level is low mainly because of the low maturity level of the Industry.

Business Opportunities

However India can unveil significant business opportunity to the Retailers. Indian retail sector is estimated to have a total market size of $ 180 Billion. A McKinsey report on India says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. The factors responsible for the development of the Retail sector in India can be broadly summarized as follows:

1. Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 1994-95; this is expected to decline to 17.8% by 2006-07.

2. Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers.

3. Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

Major Retail Players in India:

Retailer Current Turn Over in Rs. Crore

Pantaloon 700

RPG550

Shopper Stop400

Life style230

Westside120

Ebony85

Piramyd72

COMPANY PROFILE

It started as a humble one store enterprise in 1986 in Kolkata(erstwhile, Calcutta) is today a conglomerate encompassing 132 showrooms in 81 cities / 20 states. Indias first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the singe largest collection of goods and commodities sold under one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr.Ram Chandra Aggarwal . The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007 The groups prime focus is on 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 in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 2059292 lac sq. ft. in 18 state across India. Each store gives you international quality goods and prices hard to match. The cost benefits that is derived from the large central purchase of goods and services is passed on to the consumer.

INFRASTRUCTURE

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700 imported machines that have a capacity to manufacturer 150000 pieces a month. The factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives employment to more than a 1000 people. These people work in ancillaries that supply finished goods to the company. They have 10 warehouses that cater to 132 showrooms in 20 states/81 cities. It is covering about 2059292 sq. ft. .in 20 state across India.

S W O T A N A L Y S I S

Some of the strengths and weaknesses of Vishal Mega Mart are outlined below.

STRENGTHS:

i) Understanding of the value retail segmentii) Supply chain managementiii) Logistics and distribution networkiv) Geographical spreadv) Identifying new locationsvi) Private labelsvii) Information technology systemsviii) Experienced and skilled management team WEAKNESSES:

i) Slow performance of the Stores

ii) Advent of Category Killers.

OPPORTUNITIES:

i) Increasing penetration in the country by leveraging our supply chain, distribution and logistics network

ii) Emphasis on Backward Integration

iii) Expansion of FMCG

iv) Procurement from low-cost production centres outside India

v) Increasing customer satisfaction and our base of loyal customers

vi) Continue to upgrade information technology systems and processes

vii) Continue to train employees and seek entrepreneurship from employees

THREATS:

i) Demise of Independent small stores

ii) Demographic Changes

P R O D U C T S

FOODMART Beverage

Cooked Indian

Cooked Chinese

Drinks

Fruits & Vegetables

B R A N D S

Vishal Mega Mart is one of Indias fastest growing retail chains. The chain currently has 132 company stores in 20 states / 81 cities in India. The Vishal brand is known for great modern style for men, women and children. Vishal offers high level fashion styling. Since 1986, their name has been synonymous with quality, value and fashion integrity. They offer an unparalleled collection of clothes for the entire family. Each garment is hand selected for quality and contemporary styling. Vishal manufactures majority of its own garments and out sources some under its direct quality supervision. This enables them to offer the lowest possible and most reasonable prices. Their goal is to provide a range of fashion wear to suit every pocket. Their product mix represents the most current fashion trends in tops, bottoms, formals and accessories for men, women and kids. Their courteous staff will ensure that consumers get a perfect fit.

The Popular Brands of Vishal Mega Mart are:

Zeppelin

: Mens Shirts & Trousers

Fizzy Babe : Ladies & Kids Girls

Kitaan Studio : Mens Shirts & Trousers

Jasmine

: Ladies & Kids Girls

Blues & Khakis : Mens Trousers

Zero Degree : Kids Boys

Paranoia

: Mens Shirts & T-Shirts

Soil

: Mens Shirts

Chlorine

: Mens Shirts

Massa Bay : Mens Trousers & Bermudas

Fume

: Mens Shirts, T-Shirts, UnderGarments.

Q U A L I T Y C O N T R O L

The dedicated professional Quality Control team of Vishal Mega Mart ensures the quality of products. Their quality checks start with basic cloth and accessories and end with doing a full inspection of the finished items. They believe that Quality Control is the key to success. Their goal is to give the customer with the best quality and value for his money.

O P E R A T I O N S B L U E P R I N T

STORE OPENING

Objective:

To open the store:

1. In presence of the authorized personnel.

2. To prepare floor for customer readiness.

CRITICAL ANALYSIS OF VISHAL MEGA MART SUCCESS

In the display of products and visual merchandising standards, thus providing a common frame of reference to the customer no matter where they shop. To provide an environment for the customer which is both interesting and easy to shop, which in turn promotes and encourages multiple and repeat spending. Provide guidelines on how to launch a promotion and how to launch sale; press conference; product launches + Events to be added.

Merchandising principles:

Merchandise on display reflects a good availability of product and sizes. Merchandise on display at the front of the departments and in focal areas should reflect the stores and company image and branding strategy. Where the product is bought in more than one color-way, the full color range and styles (where possible) is on offer to the customer. No Kimballs, swing tickets or tags are visible to the eye where possible these should be concealed inside the product or behind the product display. No packaging elements such as stuffing, cardboard slips etc are on display. All lights are properly focused/ angled on the intended display. Ensure that no lights are out of working order and that the correct bulb color / light emitting shade is being used e.g bright white light etc. All signage (POPs) being used is correct for the fixture and display intended. All promotions are highlighted with the correct price and type of promotion. Except during sale, merchandise is laid out according to the same end use within the floor layout set-up. This rule can be broken to create areas of cross merchandising. This is normally best suited where two products are bought together. Such adjacencies are where a formal shoe is bought with a pair of formal pants for example, but it can be as simple as a pair of socks or handbag etc. This is known as co-ordinated fashion accessorizing. Depending on the shape and size of the store the fixtures are placed at 90 degrees (perpendicular) to the walls. Should the fixtures be required to be angled at 45 degrees to accommodate customer flow, this will be conveyed and decided by HO. No out of stock signage will be used and in the case where a particular style is sold out, a duplicate style or a style which is already on display should be used to fill the space. All displays should make use of intermittent use of acrylic display stands to create excitement and highlight a particular style of shoe. Shelf talkers draw attention to a particular product such as a special price, new line or arrival, a promotion, end of range, best seller etc. A fine balance should be achieved in display between not over-displaying the shelf where the display becomes too busy and cluttered. This will leave the customer confused with too many decisions to make. Also care should be taken not to leave the shelf under displayed this will leave the customer frustrated for lack of choice. Hanger disciplines should always be maintained. This means that no empty hangers on the sales floor, that the straight arm has a full size curve on display, and that the hanger has the correct size indicator for the shoe on display. All POP signage must be placed inside an acrylic sleeve / sign holder. Always ensure that the thematic and lifestyle posters on display are the latest / most recent and up to date, and in line with the marketing calendar dates and promotions. No shelf edge labels are to be used. Most the times there will only be One Facing product on display and no more than Two Deep at any given time unless displayed on a peg hook with a full size curve. Departments, products and brands should be proportionately displayed according to the sales performance of the merchandise. In other words the space allocated to a particular department, product or brand should be in direct proportion to the contribution of the sale of the product to the rest of the store/brand/department etc. Sales performance can be analyzed using margins, sales qty, sales value, clearances, contribution, sales per square feet etc. Comparison of like for like; actuals vs projected; and comparison of seasons + sale periods of previous years. Types of fixtures and where it can be found:

1. Feature tables, nested tables, two and three tier tables.Normally found as a lead into a department or entry to the store to create an element of interest and bring the customers attention to the latest newest styles and fashion or new promotions.

2. Floor and wall GondolasGondolas are normally used to house bulk displays and are more suited to Hypermarkets and Supermarkets (high volume trading). Gondolas can hold a full size curve of merchandise by hanging or using shelving.

3. Slotted wall bays with shelves, (or slat walls with slats and pegs).All wall space is premium display area. The perimeter walls should house the best, newest and most popular brands and styles. The wall bay is normally highlighted with the brand signage and sometimes a mood poster. Slat walls are ideal for accessories.

4. Feature wallsThese are found in-between the normal slotted bay / shelved wall and acts as a break or breathing space from one sub department to the next. These areas are normally housed quite light in stocks and have the very latest designs and fashion to highlight to the customer in order to get the customers attention due to the price point or styling of the shoe/bag.

5. Hot spots, primary focal areasThese are found at junctions where two departments meet, or an area of high traffic flow such as a column, a feature wall or a main walk-way. Hot spots normally have a strong visual presence such as in apparel where a mannequin is on display. This can be achieved in footwear by creating a focused area such as a range of ladies casual boots all brought together in one compact space. Mixing of brands is acceptable when done in this instance only.

6. Secondary focal areasThese areas are used primarily for end of sale periods, end of range lines, older stocks and less popular merchandise or broken ranges. Care should be taken to move older stocks to these areas when new stocks arrive in the store. End of ranges is the last of the best sellers and should be signaged accordingly.

Window layout:

Window displays must always show the newest and latest trends (except of course when on sale). Windows should be changed regularly at least once a week and preferably twice weekly if new arrivals and promotions provide enough variety. The latest posters and promotions must be kept on display for the period stipulated only. Pricing should always be prominent and easily identifiable. Run a story or a theme in the window ensuring that the products are available in the store do not haphazardly place different items and lifestyles. A focused window could be a display of kids shoes for back to school. Or a summer holiday window promoting mens sandals. Or sports window promoting the various types of running shoes on offer in the store etc etc.Sale, promotions and pricing:

Promotions will be advised by H/O through the Promotional Advice document. This document will give detail on the promotion start dates, end dates, what type of product will be on promotion, what type and quantity of POPs to use and where, the layout and positioning of the promo, and specific selling instructions. Promotions will occur on a weekly / monthly basis depending on the need and requirement. Once the promotional advice arrives the store person responsible (CSA /DM) should check on stock and promotional material arrival dates and qualities are correct. If the stock and promotion material does not arrive on time, it should be followed up with the category and marketing team at HO. The promotion should launch on the specified time and date no sooner or later. Launch the promotion either the evening before the launch after store closure, or the same day a couple of hours before the store opens. Stock levels during the promotion must be carefully monitored and re-orders requested or placed if available. All staff should be aware of the promo in the store and know the offer and pricing of the promotions. Promotions should always be placed in a position of prominence. Promotions should be placed on nested tables at the front of a department, on hot spots, focal areas, (gondola ends). The promotions can be run on perimeter walls as well in the case of large promos such as the launch of sale etc. Always use signage to highlight a sale and promotion. There should be high visibility of both signage and stock when on promotion. Shelf talkers, banners, posters, in strategic positions put in both acrylic sleeves and clip poster holders to be used or back lit light boxes. Only use danglers during sales or promotions to avoid too much clutter and follow the strict guidelines from marketing on placement positions + quantity + standard sizing. Ensure the correct prices are used to promote the product. This need to be double checked against the price promotion list / price look up file / markdown report. All new products arriving at the store should be checked that they are carrying the correct barcode label and price. This can be cross checked by scanning the article at the time of receiving as well as at the POS to be sure of the latest pricing for the item. (this is done in the price look up file menu). Once the promo ends, and if the promotion is not to be re-launched or run again the promotional material should be destroyed. If the promo is to be re-run the promo material should be kept safe till the next promo launch date. Stores to advise before a new promo if they need extras or resending new quantities. At the end of the promo if there is stock left over ensure that it is worked back into the floor stock. If the promo has sold old out before time or the promo has ended place regular stocks as per the plan-o-gram back in position. Stores will be notified of sales well in advance and this will be according to the marketing and promotional calendar. Sale markdown price look up file (price report) can be downloaded by stores a couple of days prior to the sale / promo launch so that the store can ready itself and prepare for the sale launch. Once the staff receives the markdown schedule / price report they will identify the stock in their department and isolate the stock to prepare the stocks for the sale. If the markdown is a seasonal markdown and the volumes of stock are high, the marking down and moving of products should be done on the floor after the store is closed but before the launch. Temporary price changes should be indicated via a printed shelf talker. This can be indicated either as a percentage-off the price such as 20% off, or it can be a price indicator such as Now Only Rs299. A swing ticket which gives the was/now price should also be attached to the product. The was/now ticket will be handwritten with the old price and the new price. This procedure is done for all temporary markdowns. Where there is a permanent markdown, the new price should be indicated using a Meto gun label and stuck to the swing tag taking care not to conceal any detail on the barcode. If there is a change to the article detail or where a product has a damaged or lost barcode a new replacement barcode / swing ticket will be required to be printed and attached to the item. Any old barcodes removed / replaced by a new barcode should be stapled to the price change report and handed in to the admin manager for filing and checking. The shelf talkers can be put on top of floor gondolas / fixtures, attached to the shelf edge or displayed on top of the shelf itself / display stands Sale items will be displayed within the sub department / brand area and will be by price point within a particular brick. Sale when launched will take priority and will be up front in the store /department. When the store is on sale, all temporary signage should be removed from the floor and only Sale signs should be visible or on display. As sale stock levels decrease and during further reductions and final clearances the sale will be moved to a secondary position. The signage must be changed during further reductions and final clearance to reflect accordingly. Once sales ends the signage must be taken down and the floor returned to a steady state of normal trade. This will involve putting all full priced products in its proper positions according to the most recent plan-o-gram or layout. Where the stores stock levels are exceptionally low stock should be spread out evenly but where it is not possible to make an adequate display management may take a decision to remove one or two fixtures from the floor and spread out the floor fixtures. This is the exception to the rule of course. All brands running promotions will supply approved promotional material / signage for the category, and it must be to our size and specification.PROCESS DESCRIPTION The front/back office door of the store has to be opened by the designated management one hour before the store opening time for the customers, in the presence of the security personnel.

Only the designated manager / management team can open the store. No other person will be allowed to open the store, unless otherwise sanctioned.

The schedule for executives of the store needs to be drawn two weeks in advance, the schedule needs to be made and be available with the Security and all concerned. A copy of this list is to be pasted in the Security Area outside the Staff Entrance. In case any change is to be made in the schedule, it needs to be sanctioned by the Store head.

The designated owner or the business manager opening the store has to check the locks for the security seal and for any tampering (attempts to break the lock). In case the seal is secure, the lock is opened. If it is found tampered, the lock must be opened in the presence of the security personnel and the store, safe, merchandise and valuables checked for theft. This must be reported to the Territory Head immediately for follow-up.

Once the front/back door is opened, the back office lights have to be switched on.

The Security Officer and the designated manager sign on the Store Opening Register (Refer to the table below)

DateTimeNameRemarksSignature

Operations

Security 1

Security 2

The Security Officer and the designated manager carry out the check as per the checklist mentioned in the Store Opening Security Checklist (Refer to the table below)

Daily Store Opening Security Checklist:

ParticularsRemarks

Checkpoint

Staff Entrance (if applicable)

Customer Entrance

Emergency Exit

Generator Room (if applicable)

Security / server Room (if applicable)

Cash Counter

Back Store Entrance (if applicable)

Miscellaneous

Disarming of Security System

Fire Extinguishers in Position

Water taps check / Toilet

Emergency PA System Check

Safe

Admin office

Gift voucher cupboard etc

Stock on floor

If they find any abnormality as per their Checklist, it is noted on the Remarks Columns

He has to switch on the lights and the AC of the server room.

He has to then switch on the UPS machines, the server and monitor and Do Start of Day + print reports.

Action + file reports.

When the above activity is taking place, no other computer can be switched on.

The department owner along with the security personnel has to check the seal on the safe, where the previous day's cash is deposited, for any disturbance or tampering. (not applicable for time delay safes).

All Employees while entering will swipe their identity cards in the machine and enter the attendance register. All the CSAs / support staff have to report for work, half an hour (approx) before the store opening.

The designated department owner/store manager has to then take a round of the store and thoroughly check the store for any disturbances. He/she also has to check for any damages regards to racks, signages, coffee table, chairs/tables, shopping bags, trolleys etc. that might need repairing or replacement. Replenishment, filling up, department / plan-o-gram changes, promotions for the day, windows etc need to be made / implemented before opening.

The security has to prepare the following checklist as part and parcel of his duty performance

TASK - SecurityPERFORMED

Store Opening. Lock/seal check of the back office door & front door.

Check to ensure No smoking is permitted in store premises

Checking of all CSAs entering and exiting the store.

Checking of goods entering into the store (goods meant for exchange, merchandise, non trading goods, capex items, etc)

Checking of goods exiting the store (purchase returns, etc)

Responsible for all customer belongings deposited at the baggage counter. (if applicable)

Security to check sales floor + BOH for people hiding in the store; items kept behind by someone which may constitute a threat or risk to store + staff security.

START OF DAY PROCEDURES

Objective:

To ensure all administrative procedures run and are implemented before store opens:

Procedure must be done by administrative manager or store management

Must be done before store opens

PROCESS DESCRIPTION

The main administrative terminal must be opened and start of day is run

This ensures that the system is reset for the new trading day and all reports for the previous day are run and printed.

Reports to be generated

The following store reports must be run before the store opens:

Previous days sales report

Previous days over / under rings

Banking totals and bank deposit slips

Over / Under banking totals

Sensitive transactions report and gift vouchers reconciliation

Price discrepancy report and new updated price file

Petty cash totals

Salaries report paid by store for casuals / contractors

Stock report across all departments (closing and opening stock on hand)

Loyalty card members report

Repairs / Lay-byes report

Branch expense and profit report

Markdown file (if applicable) and price report

Action to be taken

All manual transactions from the previous day must be captured, before start of day but ideally before store closure the evening before. (Manual transactions; 2x persons involved + managers authority)

Cash count reconciliation and float check to be done

Any stock counts done and adjustments made accordingly and recorded

All markdowns whether temporary or permanent are required to be action-ed and price changes implemented.

New price signages in place as per above

All sensitive transaction dockets must be cross checked against the report for authenticity and management authorization

Stock requests, stock shortages or over-stocks to be action-ed accordingly

All RTMs, including manufacturer faults and product recalls to be action-ed

All received stock to be entered into the system and IBTs transferred or acknowledged what ever may be the case.

Store turnover, sales associates targets, to be captured in the store ops file/daily enclosure.

Store and staff targets issued

Store staffing schedule checked in accordance with the staff roster and available budgets.

Branch expense report generated and checked for variances to budget

Basic Store Opening procedures:

Complete banking for previous day

Issue floats to cashiers

Replenish floor from BOH. Ensure all styles on display. All size curves represented.

Check promotions for the day and staff understanding

Check prices, and update or change where necessary

Stock rotation if necessary

Clean fixtures / departments

Ensure all POS have bags, till rolls etc

Implement new promotions and displays

Update all signages

Analyze sales and stock reports

Issue sales targets

Check adequate staffing. Check dress code.

Conduct any relevant in store training before opening

Receive stock from DC

Return RTMs to vendor

Conduct Stock counts on specified days

Check lights are working and correctly positioned

Complete any bulk RTMs / customer complaints

STORE READYING PROCESS

Objective:

To ensure all systems at the premises are in a working condition before store opening for the customer.

Process:

The housekeeping has to start work one-hour before the store opens. Housekeeping Checklist must be signed by the store manager.

TASK - Housekeeping9.00 AM1.00 PM5.00 PM

Check PointCheck PointCheck Point

123451234512345

Door Mats, Door Handles & Door Cleaned. Ladies/ mens toilet, front door, back door etc

Mopping of Floors

Emptying/ Cleaning of dustbins

Cleaning of cash counters

Cleaning of Baggage Counter

AC ducts grills cleaned

Dusting/ Checking of Cob webs at corners and ceilings

Spraying freshners

Fire Exits Cleaned

Cleaning and Drying Toilets

Cleaning of Staff Room

Wiping down of all surfaces + glass

Empty shoe boxes/unused required to be thrown away

Task performed by: Name and Store Manager's Signature:

The maintenance department has to cover all the checks required, half an hour before the store opening, to ensure that the store is ready for opening. TASK Maintenance TeamPERFORMED (Twice a day)

Checking the Glass (sliding ) Door or roller shutter is working

Checking of all lights daily.

Checking PA System volume

Checking of lighting, fused lamps and change.

Checking of Air Conditioning system. To switch on the same, 20 minutes before the store opens. To check the temperature levels in the store, every two hours, to ensure that the air conditioning is functioning in its optimum capacity maintained at approx 22*c.

Checking the music system & speakers.

Checking for water leakage on ceiling, walls, taps & flush.

Checking whether the flush in the toilet is functioning right.

Checking whether the wheels of the trolleys are smooth and working.

Query POS Table Cleanliness

Checking the EPBAX phone system.

Checking whether the telephones are changed from the night answering mode to the day mode.

Checking Fire Exits; and fire extinguishes are in place + working conditions

Other:

Task performed by: Name

Store Managers Signature:

Store Managers Checklist to be done before the store opens DAILY STORE CHECK LIST Store Manager

DATE :-

Store Location :

DETAILS MoTueWedThFriSatSu

1.Signages & Communication

Outdoor signboard in good condition

Signages & Acrylics in place

Correct & concise signages in place

Is the latest communication up regarding events etc?

New & Noteworthy items are highlighted

Bestsellers are highlighted

Events & Promotion Posters are up

Are Section & Sub Section Signages in place?

Store Policies & Services backdrop in place

2.Maintenance Related

Are Glass surfaces clean?

Is the Floor clean?

Is the Ceiling clean?

Are the Toilets clean?

Are the A/Cs working and right temperature maintained?

Is the Music playing at right levels? Right type of music?(Only CDs issued by H/O to be used.

Is the baggage counter maintained well? (if applicable)

3.Products

Are the Products properly merchandised?

Is the merchandise clean & surfaces clean where required?

Are all sides seen by customers well presented?

Are depts correctly positioned / presented / as well as fixtures etc

4.People

Are all the staff in uniform?

Are all the staff wearing Badges?

Are the grooming standards being maintained?

Are the attendance & statutory registers being maintained?

Are the individual personnel files being maintained?

Is the shift schedule & monthly roster being maintained?

Are all the sections being adequately manned?

Regular training on product knowledge and service being conducted?

Grooming standards of security

Greeting and communication of security

Vendor records kept + checked (ito concessionaire)

Check overtime schedule is correct

5.Lighting & Fixtures

Layout as per plan

Are all lights working and properly focused?

Are the floor display stools in good condition?

Are the fixtures as per plan?

6.Instore Services

Is the Customer complaint book being maintained?

What is the Status on Customer feedback forms?

Are repairs being followed up?

7. Store Consumables

Are all the following consumables available & as per std requirements

POS Dockets

Gift Tags

Visiting Cards

Suggestion Cards

Carry Bags

Bills , till rolls / EFT slips etc

Wrapping Papers

Rewards enrolment form

Gift Vouchers & Envelopes

The CSAs have to report to work half-hour before the store opening time TASK CSAs LISTPERFORMED

Shelves, racks and fixtures are dust free.

The items are dust free.

Items are neatly arranged in a logical format on the shelves as per required layout display format.

All the items are in their respective sections/subsections.

All the Signages are in place.

New arrivals & Best selling items are placed up front

Merchandise displayed on the floor/shelves/fixtures is properly arranged and tagged. Price tags + (security tags) correct and in place.

Housekeeping in the section in place.

Monitor the levels of pilferage & shrinkage.

Shopping bags & (trolleys) are in place.

No cartons or merchandise bins lying on the floor or empties

Fixtures alignment are correct

The CSAs then proceed to ready the floor for selling to customers. It is the responsibility of the designated department/store manager to check against the checklist provided for housekeeping and maintenance, whether all the activities listed within have been carried out successfully. A register for the same has to be maintained and the same has to be signed by the Business Manager.

TASKS TO BE PERFORMED STORE MANAGEMENT / BMs /DMs /Supervisors

Monitor the Reporting time of the CSAs.

Rescheduling of CSAs if any of them are absent from work.

Monitor the floor etiquette practiced by the CSAs

Grooming standards of CSAs

Overall Cleanliness standards in the store (housekeeping maintenance). Check against the checklist and identify any discrepancies.

Check the Visual merchandising in the store, Merchandising, Product Availability + correctness.

Interacting with Customers and understanding their needs and expectations.

Regularly analyze the customer feedback forms, and determine the corrective course of action. It is critical to respond to customers providing constructive feedback using a pre-formatted letter.

Sort out problems amongst CSAs. Staff in general.

Discuss Service Issues with CSAs and sort them out.

Monitor Walk-in's and conversion rates.

Create the daily sales report & mail it to the BM

Monitor competition on regular basis.

Initiate ideas & actions plans, to increase walk-ins, conversion rates and the overall sales of the store.

Complete security check / audit list and all things attached to it.

The security personnel have to sign the attendance register, when they report to work as well as when they are leaving (this would be critical as they are paid overtime for extra working hours). If the security person has worked overtime, he has to enter the reason for the same and the name of authorized personnel who has approved the same, in the register.

The department owner has to ensure that all CSAs meticulously follow the grooming standards

The designated department owner has to then switch on the POS machines at the cash counter. If there is any problem, which can't be sorted out, the department owner has to ensure that the required help (IT) is called in to sort out the problem, and the system is up & ready when the store opens to the customer. If the problem cannot be sorted out, the billing has to be done manually, till the system is corrected. Follow manual procedures, and capture in the POs same day and before end of day if possible. Half-hour before the store opens for the customers, the tea vending machine located at the back-office has to be switched on. The same has to be switched off after all the associates of the shift have served themselves.

Twenty minutes before the store opens to the customers, the lights and the Air Conditioning of the entire store has to be switched on.

The designated department owner / Store Manager has to conduct a morning meeting everyday, with all the customer service associates, wherein the previous days sales figures, conversion rate, walk-ins have to be discussed. If there are any customer complaints/specific issues the same have to be discussed during this meeting. For the associates coming in the second shift, they have to be addressed in the evening by the department owner in charge of the second shift. Designated days for specific identified training needs to also do. It is critical for the store manager to conduct a meeting once a week with all the associates of the store, including the back office personnel. This meeting would essentially serve as a forum, wherein all the associates can come together and voice out their issues and problems, which have to be addressed and sorted out by the manager.The store has to be neat, clean and in order, at the time when it is opened to the customer.

LITRATURE REVIEWIn the background of high consumerism and income of the urban consumers, in recent year there are a number of companies have expressed their interest towards retail sector outlets. As a result numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big bazaar, Vishal Mega Mart, Reliance Fresh are the best known examples of retail sector outlets in India.Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producers goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. Some of the key features of retailing include

Selling directly to customers with out having any intermediaries

Selling in smaller units / quantities, breaking the bulk

Present in neighborhood or in the location which is quite convenient to the customers.

Very high in numbers

Recognized by their service levels

Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas, the mindset of the existing customers have undergone drastic changes. Besides it is also reported that the traditional retailing such an age old Grocery shops have directly faced competition with the organized retailing sector. In some parts of the country, it is reported that the traditional retails are resisting the entry of organized shopping malls. For instance the traditional retails of Bhubaneswar with the active support of the consumers at large didnt allow reliance Fresh to start outlet initially.

RECENT TRENDS

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph

India is rated the fifth most attractive emerging retail market: a potential goldmine.

Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes up 3 percent or US$ 6.4 billion

As per a report by KPMG the annual growth of department stores is estimated at 24%

Ranked second in a Global Retail Development Index of 30 developing countries drawn up by AT Kearney. RETAIL SALES IN INDIA

GROWTH FACTOR FOR INDIAN ORGANIZED RETAIL INDUSTRY

India's economy is booming, due to so many economic reforms.

the rise in the working population which is young and reduction of the unemployment rate.

pay- packets which are hefty, and having a huge package of salary package.

more nuclear families in urban areas

rise in the number of working women

more disposable income and customer aspiration

western influenced life style is adopted by all the people.

growth in expenditure for luxury items increases.

GROWTH OF RETAIL INDUSTRY:

Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments has been encouraging in the Growth of Retail Companies in India.

Reason for the growth of retail industry is

Existing Indian middle classes with an increased purchasing power

Rise of upcoming business sectors like the IT and engineering firms

Change in the taste and attitude of the Indians

Effect of globalization

Heavy influx of FDI in the retail sectors in India

TYPES OF RETAIL

The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Retailing Formats in India

Malls

The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Vishal Mega Mart, India bulls, Pantaloon.

Specialty Store

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable good

Department Stores

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, Vishal Mega Mart and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes.

Hyper Markets / Super Markets

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Convenience Stores

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

MBOs

Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros. Berhampur is an important town in the Southern part of Orissa. Most of the business transactions of Southern Orissa concentrate in berhampur. It is found that the traditional retail stores are scattered around different clusters of the city such as Bada Bazar, Vapur Bazar,Annapurna Market . In last two a couple of organized retails have entered into the city for the purpose of grabbing the market opportunities prevailing in the city. The organized retails mostly include Kokata Bazar(Urban Bank road), Vishal Mega Mart(Churh Road) and The World(Giri Road).

In this background, present study is modest attempt to understand the impact of Vishal Mega mart on traditional Retailing.

Vishal Mega Mart,

Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier III cities by the end of 2009.

Traditional retailing

traditional retailing or we can say the unorganized retailing are the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Future is thinking beyond horizon & in order to keep its pace with the modern retail, Vishal Retail Limited is spreading its wings. Instead of resting on its laurels the Group are busy identifying new avenues of growth by venturing in other formats like cash & carry, convenios as well as specialty stores and inspiring local retailers to grow along with the big names. The group has tied up with HPCL to open corner stores at their petrol pumps and in addition to the above Vishal has come up with an institute to train manpower for the service industry.

Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier III cities by the end of 2009.

According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling readymade garments. In tune with the pulse of the market, he envisioned a mega store that would sell garments at prices none other could match. . The first big store opened in Calcutta's Esplanade area in 1997, under the banner of Vishal Garments. He was involved in all the aspects of the business: right from sourcing the garments to interacting with customers. And this led to his greatest finding The Vishal Group.

After identifying the immense market in fashion garment for the masses, He moved to Delhi in 2001 and opened his first store in Delhis Rajouri Garden by the name of Vishal Mega Mart (The jewel in Vishal Groups crown) and then there was no looking back for Mr. Ram Chandra Agarwal. At present, in addition to garments, Vishal Mega Mart stores retail the entire range of household products, FMCG and electronic goods. Vishal's prices are roughly 15 to 20 per cent less than other mass market garment labels.

Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that the shopping habits of Indians are changing due to their growing disposable income, higher aspirations, relative increase in the younger population, and the change in attitudes towards shopping. The emphasis has changed from price consideration to design, quality and trendy. Age is also a major factor that affects the spending decisions of an individual. Consumer spending is an important factor that affects the economic growth and development in a country. As a trend, consumer is more educated. He has access to all reforms taking place through various arrays of communication. He is becoming a value shopper everyday. Keeping this in mind, the group is now looking for franchisees to join hands with Vishal and grow under common banner. This partnership will help small retailers to survive the onslaught of organized retail as it will enhance their competitiveness. Small stores can avail of the benefits on account of the economies of scale, a key advantage for big retailers. As per the plans, Vishal Retail will completely take over the supply chain of its franchisees and provide them with technology, new practices, visual merchandising skill and special promotional schemes, besides its brand and costumer base.

Some of the Franchisee exclusive business categories are

Mens Fashion

Ladies and Kids

Footwear

Toys and Games

Home General

Convenience (FMCG)

CDIT

Watches

Mobile

The Group also has a plan to raise around Rs 200 crore through preferrential issue in the next few months to fund the companys expansion plan. Mr. R C Agarwal said Rs 100 crore corpus raised through the initial public offering had already been utilized and more money was required to push the expansion plans further.

The group has registered a consistent growth over the years. It recorded a whopping turnover of more than Rs.600 crores in 2006-07 as opposed to a turnover of Rs 288 Crore for 2005- 2006. This ascent has inspired the Group to chalk out an ambitious expansion program, with expansion and growth plans being implemented on different dimensions. Retailing is an engine for taking merchandise to the end-users. There is a lot of opportunity in this sector for us since demand of the potential consumers are not being met under the existing facilities. Therein lies the road to success. says Mr. R C Agarwal

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE

Understanding the process by which merchandise buyers make their decisions and the degree to which their decisions are optimal

To understand the role of private labels and their impact on retail sales and profitability.

Brand positioning of Vishal Mega Mart.

To find the brand personality of Vishal Mega Mart and its impact on both merchandise and overall store image across market segment.

To compare the sales and profitability of branded and non-branded products at Vishal.

To study the consumer purchasing behaviour.

To identify the buying motivation and concerned factors while consumers to select merchandise at vishal Mega Mart.

To study and analyze the customer perception about FMCG Products. To know the effect on sales after advent of organized retailing. To know the level of customer satisfaction visiting Vishal Retail shops. To study the changing trends in branded retail industry. To analyse the key aspects of apparel branding and retailing. To study the targeting segmenting and positioning in the apparel retail industry.HYPOTHESIS

Customer Perception can be changed over the period of time provided with the good marketing and customer service approach.

Customer perception impact to the balance sheet of the firm.

RESEARCH METHODOLOGY

This include both primary as well as secondary research

PRIMARY RESEARCH: -

I will collect the data from the customer who is visiting to the store.

SECONDARY RESEARCH: -

I will collect the Secondary data from the Internet, Book and Journal.

Tool Used:

Bar Graph , Pie Diagram

Sampling Method:

Random Sampling chosen by the gathering of data ( I will collect the data from 100 individual customer)

Target Audience:

Dealers, Distributors & Marketing manager of the firm

SCOPE OF THE WORK

Retail is India's largest industry. It accounts for over 10 per cent of the India's GDP and around 8 per cent of the employment. Retail sector is one of India's fastest growing sectors with a 5 per cent compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25 per cent annually. It is expected that retail in India could be worth US$ 175-200 billion by 2016.

JUSTIFICATION OF THE CHOOSING TOPIC Today, the role of the distributor as an intermediary has morphed into that of a 'disintermediary'. A distributor plays a virtual role, an almost invisible part of a smooth supply chain. Third-party logistics providers help ship goods from one part of the globe to another in a day, while a more customer-centric distribution chain enables direct ordering and tracking of orders over the Internet. The use of databases, communication systems and the foremost advanced software are crucial to any supply chain management system. Optimal management of a supply chain results in revenue enhancement through high customer satisfaction and repeat sales. Web enabling a supply chain helps connect an enterprise to all its trading partners taking away all the weak links existing within it. \

DATA ANALYSIS AND FINDING1. Are you visiting the store for the first time?

PARTICULARSNO OF RESPONDANTS% OF RESPONDANTS

Yes147%

No18693%

TOTAL200100%

Inference:

According to the survey done, 93% of the customers say that they have visited the store many times whereas rest 7% of the customers say they are visiting the store for the first time.

2. How often do you visit SPENCERS?

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Once in a week4824%

Once in a fortnight5226%

Once in a month5628%

When ever need arises 4422%

TOTAL200100%

Inference :

According to the survey done, 28% of the customers say that they visit the store once in every month ,26% say they visit once in fortnight, 24% say that they visit the store once in a week and the rest 22% says whenever need arises they visit the store.

3. To what extent were your complaints resolved at Spencers?

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Well7236%

Very well7236%

Cant say 4824%

Bad84%

TOTAL200100%

Inference:

According to the survey done, 36% of the customers say that their complaints were solved very well same way 36% of the customers say their complaints were resolved fair well, 24% of the customers say they cant say anything about it and finally the rest 4% say it was bad and not satisfied with the store.

4. Ambient conditions such as temperature, noise, ventilation, odour prevailing in premises

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor5427%

Poor4824%

Average5628%

Very good3216%

Excellent 105%

TOTAL200100%

Inference:

According to the survey done, 28% of the customers feel that the ambient conditions in the store is average, 27% feel its very poor , 24% of the respondents say it is poor whereas 16% of the respondents feel it is very good and expect more and rest 5% say the conditions provided is excellent and to keep going .

5. Physical layout of the various sections/ store?

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor105%

Poor3015%

Average7839%

Very good5829%

Excellent 2412%

TOTAL200100%

Inference:

According to the survey done, 39% of the respondents feel that the physical layout of the store is average ,whereas 29% feel the layout and physical structure of the store is very good and among the rest respondents 15% of the total feel the layout of the store is poor and 12% say its excellent the rest 5% of the crowd say its very poor .

6. Cleanliness

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor2010%

Poor5829%

Average4824%

Very good5427%

Excellent 2010%

TOTAL200100%

Inference:

As per the survey done, 29% of the respondents feel the store is not so clean and its poor where as 27% of the crowd believe that store is very much clean an good to look ,24% of respondents view towards cleanliness is average and 10% say its very poor and other 10% say its excellent and maintain the same .

7. Visually appealing signs and boards

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor147%

Poor3618%

Average7638%

Very good4020%

Excellent 3417%

TOTAL200100%

Inference:

As per the data collected believe 38% of the respondents say the visually appealing signs and boards are up to mark mean to say its average and 20% say its very good, 18% of the total respondents say its very poor and 17% feel the signs and boards being displayed is excellent rest 7% say its very poor .

8. Neat and professional appearance of employees

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor126%

Poor4824%

Average6030%

Very good6030%

Excellent 2010%

TOTAL200100%

Inference:

According to the survey done30% of the respondents say the appearance of the employees is average , same way 30% say its very good and 24% of the crowd believe the appearance is not up to the mark and therefore poor and 10% of them say its excellent finally the rest 6% say very poor .

9. Employees willingness to help customers

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor42%

Poor2211%

Average8844%

Very good5628%

Excellent 3015%

TOTAL200100%

Inference:

As shown in above graph among the total respondents 44% of the respondents say the employees courtesy and willingness is average , 28% of them say very good whereas 15% opinion is excellent , 11% of the respondents say poor and rest 2% opinion is very poor .

10. Use of customers feedback to improve service standards

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor5025%

Poor3015%

Average6432%

Very good3819%

Excellent 189%

TOTAL200100%

Inference:

As per the above graph among the total respondents 32% of the respondents say the use of customers feedback is average , 25% of them say very poor whereas 19% opinion is very good , 15% of the respondents say poor and rest 9% of the total believe feedback is taken well and used up to mark .

11. Provision of reliable information

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor84%

Poor4221%

Average8643%

Very good5628%

Excellent 84%

TOTAL200100%

Inference:

According to the survey done, 43% of the customers feel that the information provided is average , 28% feel its very good , 21% of the respondents say it is poor whereas 4% of the respondents feel it is very poor and rest 4% say the information provided is excellent.

12. Diversity and range of goods of goods / services

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor2412%

Poor4623%

Average5628%

Very good4623%

Excellent 2814%

TOTAL200100%

Inference:

As per the survey done, 28% of the customers feel that the range of goods available in the store is average, 23% feel its very good , 23% of the respondents say it is poor whereas 14% of the respondents feel it is excellent and expect more and rest 12% say that the goods in the store is not up to the mark and very poor .

13. Service innovation (offers, tie-ups, promotional campaigns)

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor147%

Poor3618%

Average7638%

Very good5427%

Excellent 2010%

TOTAL200100%

Inference:

According to the survey done,38% of the customers feel that the innovations offers and tie ups in the store is average, 27% feel its very good, 18% of the respondents say it is poor whereas 10% of the respondents feel it is excellent and expect more and rest 7% say that innovations and tie ups is very poor .

14. Convenience of operating hours and days

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor63%

Poor4221%

Average5628%

Very good7638%

Excellent 2010%

TOTAL200100%

Inference:

According to the survey done, 38% of the customers feel that the operating hours of the store is very good , 28% feel its average ,21% of the respondents say it is poor whereas 10% of the respondents feel it is excellent and expect more and rest 3% say to extent the operating schedule .

15. Safety and security

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor168%

Poor3618%

Average5025%

Very good5025%

Excellent 4824%

TOTAL200100%

Inference:

According to the survey done, 25% of the customers feel that the store safety and security is very good,25% feel its average , 24% of the respondents say it is excellent whereas 18% of the respondents feel it is poor and expect more and rest 8% say the security is very poor and improve on it .

16. Lifts /escalator services

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor3015%

Poor5025%

Average7035%

Very good3015%

Excellent 2010%

TOTAL200100%

Inference:

As per the survey done, 35% of the customers feel that lift service provided in the store is average, 25% feel its poor and dangerous, 15% of the respondents say it is very good whereas 15% of the respondents feel it is very poor and expect more and rest 10% say the service provided is excellent and to keep going .

17. Rest room services

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor2010%

Poor3819%

Average6231%

Very good6030%

Excellent 2010%

TOTAL200100%

Inference:

According to the survey done, 31% of the customers feel that the rest room in the store is average, 30% feel its very good and tidy ,19% of the respondents say it is poor whereas 10% of the respondents feel it is very poor and expect more and rest 10% say the rest room provided is excellent and to keep going .

18. Parking facilities

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor3015%

Poor6030%

Average8643%

Very good168%

Excellent 84%

TOTAL200100%

Inference:

According to the survey done, 43% of the customers feel that the parking facilities in the store is average, 30% feel its poor , 15% of the respondents say it is very poor whereas 8% of the respondents feel it is very good and expect more and rest 4% say the parking provided is excellent .

19. Customers services desk (csd)

PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS

Very poor147%

Poor2211%

Average4020%

Very good6432%

Excellent 6030%

TOTAL200100%

Inference:

According to the survey done, 32% of the customers feel that the customer service desk in the store is average, 30% feel its excellent , 20% of the respondents say it is