INTRODUCTION
BY: MUKESH RANA
Page 1
EXECUTIVE SUMMARY The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent of the country’s GDP and around 11 per cent of the employment. As an MBA (Retail Management) student I have done my summer internship in retail store Vishal mega mart, Model house, Jalandhar-II. During my training I have done price gap analysis between Vishal mega mart, Reliance fresh & V-Mart on non-food category. After that Consumer perception about Vishal mega mart, Model house, Jalandhar-II. According to analysis I observe that customer of the Vishal mega mart; Jalandhar-II is not fully satisfied with their services. Because of less variety, assortment, poor services & unprofessional employees behavior.
VISHAL MEGA MART, Jalandhar-II is situated little bit outside the main Jalandhar city in, Basti sheikh, Model House. This store total area is 10000 sqft. Total sales area is 8500 sqft. & 1500 sqft. D.C. (distribution channel) area. So its small format retail outlet. And they are targeting mainly local middle class people. Its daily average sale is near about 80000 to 100000 Rs.
INTRODUCTION OF INDIAN RETAIL I NDUSTRY Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around 11 per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve 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 emerging technologies are facilitating operations. Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in Sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof.
BY: MUKESH RANA
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EVOLUTION OF THE IND IAN RETAIL SECTOR Back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymond’s, etc. Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. THE IMPORTANT 3 V's IN THE RETAIL INDUSTRY.
1. VALUE, 2. VARIETY & 3. VOLUME.
SIZE OF INDIAN RETAIL MARKET India's retail sector is estimated to touch us$ 2018, with a
833 billion by 2013 an
compoun d annual growth rate (cagr) of
d us$ 1.3 trillion by
10% - which is quite lucrati
ve. Al
these estimations are due to the fact that the consumer spending has seen a rise of around 75%, in the past four years. The organized indian retail market is slated to grow at a cagr of 40%, touching us$ 107 billion by 2013. 5% of the indian retail market is occu pie d by the organi zed ret ail sec tor , whi ch is all slate d to wit nes s the major ity number of large format malls and branded retail stores. The increase in the number of such malls would be first seen in south india, followed by north, west and the east over the coming two years. Another latest research shows that more than 100 malls spanning a space of
over 30 millio
n sq feet is estim ated to open
in india between 2009 and 2010
BY: MUKESH RANA
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end. Investment in the organized retail market would be around us$ 503.2 million in 2009. This could go
further up to us$ 1.26 billion in the
next four to five years, at a cagr
of 40%. India has emerged as the third most attractive market destination for apparel retailers over the years. In india, apparel is the second largest retail category and will have a 1215% growth rate every year. Apparel, food and retai l secto r in india. with developm
The indian
retai l market has
ents taking place not
iii cities in india are also on the
grocery is expected to lead the organized been witnessi
only in major cities and
ng exponen tial growth
metro s but tier -ii and tier -
focus.
GROWTH OF RETAIL IN INDIA:Organized Share of retail sector is expected to increase to 8-9 percent in 2010-11 from 6 percent in 2008. The Indian retailing market, it is a very fast growing sector. One reason that can be attributed to this rapid entry of the foreign retail giants is that the Western Countries have reached a point of saturation in their retail sector. Another reason as already mentioned earlier is the change in the tastes and preferences or the psychographic of the consumers that is bent in their favour. Although the retail sector in India contributes to about 10% in the GDP, it is the most underdeveloped sector in terms of investments that are made in this sector. The organized sector is growing at 25-30 % per annum. Developed market in US, Taiwan, Malaysia is still a dream to the Indian retail market. They have registered a growth of 50% per annum.
BY: MUKESH RANA
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GROWTH DRIVER S IN INDIA FOR RET AIL SECTOR
Liberalization of the Indian economy
Increase in spending Percapita Income.
Rising incomes and improvements in infrastructure are enlarging consumer markets and
accelerating the convergence of consumer tastes.
Introduction of dual income families also helps in the growth of retail sector.
Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.
Consumer preference for shopping in new environs.
Technology-savvy/Youth population.
Foreign companies' attraction to India is the billion-plus population.
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.
BY: MUKESH RANA
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FUTURE OF RETAIL IN INDIA:India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. The greater availabi lity of personal credit and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo enormous growth over the forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramati c, rapid shift from small independent retailers to large, modern outlets. consumer electronic sales at US$ 29.86 billion in 2010, with over the counter pharmaceutical sales at US$ 3.28 billion. The latter is predicted to be the fastest growing retail sub-sector and BMI forecasts that sales will reach US$ 6.18 billion by 2014, an increase of 88.5 per cent. China and India are predicted to account for almost 91 per cent of regional retail sales in 2010 and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2010-2014 is estimated by BMI at 72.2 per cent, an annual average of 14 per cent. India should experience the most rapid rate of growth in the region, followed by China. For India, its forecast market share of 13.9 per cent in 2010 is expected to increase to 14.3 per cent by 2014.
CHALLENGES OF RETAILING IN INDIA
The first challenge facing the organized retail sector is the competition from unorganized sector.
In retail sector, Automatic approval is not allowed for foreign investment.
BY: MUKESH RANA
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Taxation, which favors small retail businesses.
Developed supply chain and integrated IT management is absent in retail sector.
Lack of trained work force.
Low skill level for retailing management.
Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low
margins.
Organized retail sector has to pay huge taxes, which is negligible for small retail business.
ORGANIZED RETAIL IN INDIA:The Indian organized retail industry is valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Retail Market India today is the second fastest growing economy of the world after China. Indian economy will grow larger than Britain's by 2022, Japan by 2032 and by 2050 will become the second largest economy of the world after China. Indian market has become the most lucrative market for retail investment in the world. Some of the factors which have contributed to the growth of organized retail in India are: increase in the purchasing power of Indians, rapid urbanization, increase in the number of working women, large number of working young population. Today people look for better quality product at cheap rate, better service, better ambience for shopping and better shopping experience. Organized retail promises to provide all these. The Industry The various formats of organized retail are: Hypermarkets: They store products of multiple brands comprising food items and non-food items. Supermarkets: These are self service stores selling food and personal care products. E.g.: Departmental stores: Retails branded goods in non-food categories. E.g.: Shoppers Stop. Specialty Chains: These stores focus on a branded product or a product category. E.g.: Bata Convenience stores: These are small self service outlet located in crowded urban area. Malls: A huge enclosures which
BY: MUKESH RANA
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has different retail formats. e.g.: Nucleus Key players in organized retail are: Pantaloon Retail: It was started by Kishore Biyani- India's largest retailer. The various formats of pantaloon retail are: Pantaloons, Big Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: Food World, Music World, Health & Glow, Spencer's Tata Retail (known as TRENT): Its various formats are: CromaWestsideStar India Bazaar K Raheja Corp. Group: Shoppers' Stop, Hyper city, Crossword, InOrbit Mall Reliance Retail Job Opportunities: Retail accounts for 8% employment in the country. In the next 2 years the sector is set to provide 2.5 lakh job opportunities.
UNORGANIZED RETAIL IN INDIA Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and inefficient upstream processes, lack of modern technology, inadequate funding and absence of skilled manpower. Therefore, there is a need to promote organized retailing. Facing stiff competition from corporate retail outlets, hawkers and small shopkeepers are not only witnessing decline in business but also increased harassment and eviction drives. The 400 hawkers and 100 shopkeepers surveyed across five cities by India FDI Watch and Action Aid, about 85% of them said their business was on a slide. Competition (from corporate retail outlet) was the number one reason cited by the respondents for the decline of their business. Shopkeepers have increased their work hours to compete with big retailers. About 60% of hawkers and 64% of shopkeepers are working 10-12 hours per day, while 24% worked for 13 hours or more. Incidents of extortion and eviction have also increased because of the entry of big retailers, the study pointed out. 45% of those surveyed said the levels of harassment and/or evictions had increased recently.6%said it was a cause of decline in business. India FDI Watch also slammed a think-tank’s report that says the organized and unorganized sectors can co-exist. Just because organized retail might grow nationwide does not mean that it will grow and coexist with unorganized retail especially given the anti-competitive practices that corporate retailers are already employing.
BY: MUKESH RANA
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COMPANY PROFILE
BY: MUKESH RANA
Page 9
VISHAL MEGA MART
V
I
VALUE INCREASE
S S HIPP ING
H
A
L
HY PE RMARKET A FFORDAB LE L OW PRIC E
PUNCHLINE:Vishal Retail Ltd, is one of the leading player in the Indian retail industry, is a lead the way in discount retailing and is focused on tier II and III cities in the country. It has a strong presence in manufacturing and retailing of readymade garments (apparels) retailing of non-apparels and a large variety of FMCG products. The company has pan-India presence with 108 mid-sized hypermarket format stores as on April 28, 2008 covering about 2.3mn sq ft retail space area. Vishal is supported by strong manufacturing set-up in Gurgaon, Dehradun and Manesar with a capacity of 5,000 garment pieces per day in each unit. It also has 27 warehouses located in 8 key cities in India covering over 1.1mn sq ft area. Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompass ing 117 showrooms in 75 cities / 20 states. India’s first hyper-mar ket has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the single largest collection of goods and commodities sold under one roof in India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic leadership of Mr. Ram Chandra Agarwal. The group had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53 million for fiscal
BY: MUKESH RANA
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2007. The turnove r of the company for 09-10 was 1105 crore. The grou p’s prime focus is on retaili ng. The Vishal stores offer affordable family fashion at prices to suit every pocket.
THE FOUNDERS:-
Mr.RamchandraAgarwal
Mrs.UmaAgarwal
Mr. Surendra Agarwal
BY: MUKESH RANA
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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
:
Men’s Shirts, T-Shirts, Under Garments.
BY: MUKESH RANA
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VISHAL MEGA MART:PRODUCTS
FOODMART • • • • •
Beverage Cooked Indian Cooked Chinese Drinks Fruits & Vegetables
FOOTWARE
Boys
Girls
Shoes
Slippers
Sandals
Sandals
Ladies
Men’s
Shoes
Shoes
Slippers
Slippers
HOUSEHOLD
Acrylic Ware Dinner Set Glass Ware Home Aids Floor Wiper Sanitary Brush Cup
Copper Jug Thermo Ware Pressure Cooker Cooker Pressure Pan Tiffin
Steel Cake Server Porcelain Non Stick Handi Dosa Tawa Cup & Saucer
BY: MUKESH RANA
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General Plastic Goods Coffee Mug Bucket Lemon Set
Electrical App. Chopper Microwave Oven Container
LADIES ACCESSORIES
PersonalItems Cap(LCA) Socks(Las)
Bone China Soup Set Dessert Set etc.
NailPolish Necklace Ring
Cosmetics Lip Gloss
LIFESTYLE
Time Zone
Opticals
Gifts & Novelties
Ladies WristWatch Watch Mens Wrist Mens Accessories Belts Wallets
Ladies SunGlass Glass Mens Sun Electric & Electronics Battery(ABT) Calculator(EEC)
Flower Vase Key Chain Perfume/Deo Spray Deo
GARMENTS MEN
Upper ShirtCasual Shirt Formal Ethnic & Sports
Suits Night
Lower Jeans(MP) Cotton- Trouser(MPC) Winter Wear
Suit(WMC)
T-Shirts
Blazer (WMB)
Dupatta
Windcheater
Sherwani
Jacket
BY: MUKESH RANA
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LADIES
Upper
Lower
Kurta
PantsJeans
SkirtTop
Ethnic
Nighty
Capri
WinterWear
Jackets
Lancha
Stawl
Sharara
Blazer
Salwar Suit
Track Suit
BOYS Lower Sets
Winter Wear
Jeans
Night Suit
Bermudas
Baba Suit
Blazer
Jacket
Upper
Ethnic
BY: MUKESH RANA
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ShirtFormal
Kurta-Pyjama
T-Shirt
Sherwani
GIRLS Lower
Hot Pant
Winter Wear
Hipster Set
Skirt
Jacket
Upper
Ethnic
Tops (GWT) Frock (GFK)
Sharara Lancha
INFANTS
Garments
Accessories
Hot Pant
Bed Sheet
Frock
Under Garments
Baba Suit
Socks
Winter Wear
BY: MUKESH RANA
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Sweater Pull Over
HOME FURNISHING
DrawingRoom DoorMat
Bedroom BedSheet
Carpet
Pillows
Curtains
Pillow Cover
Kitchen
Bathroom
Apron
Bath Mats
Kitchen Napkin
Towel Gift Sets
SPORTS & FITNESS
Indoor games
Outdoor games
Basket Ball
Cricket Bat
T.T. Bat
Football
Boxing Kit
Lawn Tennis
Swimming Costumes
Tennis Racket
Water Ball
Tennis Ball
Fitness Equip.
BY: MUKESH RANA
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Personal Gym
STATIONERY
School
Office
Paper Mart
Exam Board
Office File
Diary
Clay
Punching Machine
File
Party Stuff Balloons Ribbons
TOYS & GAMES
Soft Toys Musical Toys Non-Musical
Dolls
Cycle & Scooters
Barbie Doll
Cycles
Other Dolls
Scooters
Board Games
Infant Toys
Video Games
Wooden Blocks
Teether
T.V. Video
Puzzles
Swing Hand
Game
BY: MUKESH RANA
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TRAVEL ACCESSORIES
Luggages
Portfolio Bags
Suitcase
Shoulder- Bags
Pouch & Cases
Executive -Bag
Waist Pouch
School Bags
MISSION STATEMENT:We shall deliver everything, everywhere, every time for every Consumer in the most profitable manner.
VISION STATEMANT:We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
OBJECTIVES BY: MUKESH RANA
Page 19
& LIMITATIONS
OBJECTIVES:1.
Proper understanding and analysis of VISHAL MEGA MART
2.
To know the pricing strategy of others retail outlets like- Reliance fresh, V-Mart & comparison with
Vishal Mega Mart. 3.
Conduct a survey on a sample selected from the customers of VISHAL MEGA MART and to obtain
their opinions. 4.
To know the strategy to make a customer retention.
BY: MUKESH RANA
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5.
To analyze a compa rative study between the satisfaction level of VIS HAL MEGA MART, V-Mart
& Reliance fresh. 6.
To know the steps that VISHAL MEGA MART adopted to make a good relationship with its
customers. 7.
To evaluate the recent trends of Indian retail industry in order to come out with prospects for India’s
one of leading retail chains- Vishal mega mart. 8.
At the same time to know the people perceptions towards Vishal mega mart.
9.
To know the consumer’s expectations from Vishal mega mart.
10. To come out with conclusions & suggestions based on the analysis & interpretation of the data.
LIMITATION:Although it would have been nice to conduct a perfect research study, but this study is conducted under certain limitations, which were faced while doing this research. So it is highly recommended to consider these limitations while going through the project study.
These limitations are as follows 1. LIMITATION OF DATA
The statistical data regarding the city was not available to us on secondary source of data and to generate such data on the primary source was a task, which cannot be achieved in such a short time.
BY: MUKESH RANA
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2. LIMITATION OF TIME The limitation of time was another constraint in the study as the study had to be conducted in few months therefore many aspects have been left unexplored. Locating the target customers is very time consuming. Research period is not just much enough to know fully about the Price strategies & consumers perception about Vishal mega mart, Jalandhar-II.
3. INHIBITIONS OF T HE RESPONDENTS The respondents did not reply the question with precision as they were busy with their own work or they were not interested in taking part in such a research. Employees sometimes feel hesitated while telling about their view about their marketing strategies.
Other Limitations are:4. Sample size is limited due to the limited period allocated for the survey.
Getting accurate responses from the respondents due to their inherent problem is difficult. They may
5.
be partial or refuse to cooperate. 6.
Respondents may not be interested to give the data.
7.
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
8.
in many occasions. 9. The staff of the Vishal only provides/ communicates the merits of its products. 10.
Secondary data is not available of Vishal mega mart, Jalandhar-II.
BY: MUKESH RANA
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BY: MUKESH RANA
Page 23
SCOPE OF STUDY
SCOPE OF STUDY This project gave us great exposure to the customer’s perception toward Vishal mega mart, Model House, Jalandhar-II. The study also identifies the attitudes and preference of the consumers. The study also
BY: MUKESH RANA
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identifies that customers are satisfy with the services of Vishal mega mart, Model House, Jalandhar-II or their expectation from Vishal mega mart. This study also identifies the price gap of the different-different outlets like V-mart, Jalandhar & Reliance Fresh, Model house, Jalandhar.
BY: MUKESH RANA
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY :-
BY: MUKESH RANA
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Research Methodology is a way to systematically solve the research problem. When we talk to research methodology we not only talk of research methods but also consider the logic behind the method we use in the context of our research results are capable of being evaluated either by researcher himself or by other. The purpose of this section is to describe the methodology carried out to complete the work. The methodology plays a dominant role in any research work. The effectiveness of any research work depends upon the correctness and effectiveness of the research methodology. This section deals with research design used, data collection, methods used and sampling methods used.
MY RESEARCH DESIGN I have chosen descriptive research design for my study because I am interested in knowing the consumer perception about Vishal mega mart, Jalandhar-II. To accomplish the predefined objectives of the research, descriptive research design is used to collect the require information from the sources.
TYPE OF RESEARCH (DESCRIPTIVE RESEARCH) The main goal of this research is to describe the data and
characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate.
TYPE OF DATA 1. PRIMARY DATA
The primary data is that which details we collect from the market and also used first time in the
research. So in this research we collect data very first time from customers which are totally fresh. 2.
SECONDARY DATA SOURCE Companies Broachers Companies Website Internet.
BY: MUKESH RANA
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Magazines, journals, pamphlets, advertisements, newspapers & articles etc. Websites like scribd.com & proquest.umi.com. The purpose of using the secondary data is to increase the accuracy of analysis.
DETAILS OF RESEARCH :-
METHOD USED
SURVEY METHOD
Dataused: Instrument used: Sampslieze: Data Analysis Tools: Type Of survey:
BothPrimary&Secondary Structured Questionnaire 100 column, bar & area charts Interview
BY: MUKESH RANA
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ANALYSIS
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PRICE GAP ANALYSIS (NON FOOD ITEMS):-
PRICE GAP BETWEEN VISHAL MEGA MAR T, RELIAN CE FRESH & VMART:Sr.No. ITEMS 1
VIM
2
PANTEENE TIDE
3
VISHAL
V.MART
RELIANCE FRESH
64
63.7
60
199
190
174
220
210
199
66
55.4
53.9
85
85
70
129
120
120
72
72
64
COLGATE (FRESH 5
ENERGY) VATIKA
6
HEAD & SHOULDER
7
PRIL
4
Mean:The simple mathematical average of two or more numbers. Through to this calculation we can know the average price gap between Vishal Mega Mart, Model House, Jalandhar-II, V-mart, Jalandhar & Reliance Fresh, Model House, and Jalandhar.
NOTE:On below analysis of V-Mart & Reliance Fresh prices comparing with Vishal Mega Mart, Model house, Jalandhar-II by default. That is why I didn’t mention the name of Vishal Mega Mart store.
BY: MUKESH RANA
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ITEM NO. 01 (VIM-BAR):-
VIM-BAR
DIFFERENCE 0.3
V-MART
4
RELIANCE FRESH
∑X =
TOTAL
4.03
MEAN= ∑X÷n MEAN=4.3÷2= 2.015 ANS. ANAYSIS: This observation shows that VIM-BAR price gap is 2.015. Reliance Fresh is selling Vim-Bar 60 Rs. This is cheapest rate as compare Vishal mega mart & reliance fresh.
ITEM NO. 02 (PANTEENE)
PANTEENE
DIFFERENCE 9
V-MART
25
RELIANCE FRESH
∑X = 34
TOTAL
MEAN= ∑X÷n MEAN=34÷2= 17 ANS. BY: MUKESH RANA
Page 31
ANALYSIS: This observation shows that Panteene Shampoo price gap is 17 Rs. But this is not good symbol for Vishal mega mart because other stores selling same product cheapest price. Vishal mega mart selling Panteene Shampoo 199 Rs., Reliance Fresh 174 Rs & V-Mart 190. This shows that there is immense price difference between all stores. And bad thing is this Vishal is that store who is selling very costly as compare other competitors.
ITEM NO. 03 (TIDE)
TIDE(4kg) V-MART RELIANCE FRESH TOTAL
DIFFERENCE 10 21
∑X = 31
MEAN= ∑X÷n MEAN=31÷2= 15.50 ANS.
ANALYSIS:This observation shows that TIDE (4kg) price gap is 15.50 Rs. This is also big defferecial price. And there is also Vishal mega mart is costly store as compare others stores.
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ITEM NO. 04 (COLGATE WITH FRESH ENERGY):-
COLGATE WITH FRESH ENERGY
DIFFERENCE 0.6
V-MART
2.1
RELIANCE FRESH
∑X = 2.7
TOTAL
MEAN= ∑X÷n MEAN=2.7÷2= 1.35 ANS. ANALYSIS:This observation shows that Colgate with fresh energy product price gap is 1.35 Rs. This is quite good average as compare other stores.
ITEM NO. 05 (VATIKA SHAMPOO):-
VATIKASHAMPOO
DIFFERENCE
V-MART
0.00
RELIANCE FRESH
15
TOTAL
∑X = 15
MEAN= ∑X÷n MEAN=15÷2= 7.50 ANS. ANALYSIS:BY: MUKESH RANA
Page 33
This observation shows that Vishal mega mart & V-Mart stores selling Vatika Shampoo at same price. But Reliance fresh is giving 15 Rs less price as compare Vishal & V-Mart. But Vishal mega mart & VMart are selling vatika shampoo with gulabari free so price gap is not a big deal. And Price gap is 7.50.
ITEM NO. 06 (HEAD & SHOULDER):-
HEAD&SHOULDER
DIFFERENCE 9
V-MART RELIANCE FRESH
9
∑X = 18
TOTAL
MEAN= ∑X÷n MEAN=18÷2= 9 ANS. ANALYSIS:This observation shows that price gap is 9 Rs. V-Mart & Reliance Fresh are selling at same price 120 Rs. But bad thing is this Vishal mega mart is selling at Rs. 139. Which is costly as compare other stores..
ITEM NO. 06 (PRIL):-
PRIL V-MART RELIANCE FRESH TOTAL
DIFFERENCE 0.00 8
∑X = 8
MEAN= ∑X÷n BY: MUKESH RANA
Page 34
MEAN=8÷2= 4 ANS. ANALYSIS:This observation shows that price gap is 4 Rs. V-Mart & Vishal mega mart are selling at same
price 72 Rs. But bad thing is this Reliance Fresh is selling at Rs. 64.
QUESTIONNAIRE ANALYSIS BASED UPON CUSTOMER PERCEPTION
ABO ABOUT VISHAL MEGA MART , JALANDHAR-II. 1.
How often do you visit Vishal mega Mart.?
(a) Once [ ]
(b) twice [ ] (c) Thrice [ ] (d) More (please specify)………
Once
24
Twice
30
Thrice
16
More
30
Total
100
BY: MUKESH RANA
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ANALYSIS:The observation shows that 30 % of people out of 100 customers surveyed used to come in Vishal mega mart on twice & more than four times which shows that local customer in Vishal mega mart used to come so many times. Because many families used to come and purchase their home care products & so many things. And only 24 % & 16% prefer to go once & thrice time. Overall we can say that in Vishal mega mart is a family store. Where they can get everything whatever they want to purchase.
2.
How much money do you usually spend on Vishal Mega Mart in a month?
(a) 0 to 2000
[ ]
(b) 2000 to 5000
[ ]
(c) 5000 to 8000
[ ] (d) More than 8000 [ ].
o to 2000
42
2000 to 5000
36
5000 to 8000
14 8
More than 8000
BY: MUKESH RANA
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100
Total
ANALYSIS:42 % of people spend their money or mostly people used to spend their money (0 to 2000 Rs). And 36% customers spend 2000 to 5000 Rs. In Vishal mega mart which shows that people mostly spend their money up to 5000 Rs. 14% customer is there who spend 5000 to 8000 Rs. In Vishal Mega Mart store Model House Jalandhar-II.and 8% customer who spend more than 8000 Rs in Vishal store. The observation shows that Vishal mega mart, model house Jalandhar-II don’t have big customer in terms of money which is not good for them. Because Jalandhar, Model town is a neighbor town for Vishal. And model town is that area where very rich families are living. This is good opportunity for Vishal mega mart. If they want to increase their sale in high level or they want to make big or heavy customer in their store so they need to do so many things like keep better quality product, good display,
BY: MUKESH RANA
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better assortment & variety and make their employees professional & helpful in terms of service. Then they can make their sale bigger as compare before.
3.
With whom do you usually come with?
(a)
Alone
[ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify)…….
Alone
12
With Family
56
With Friends
28 4 100
Others Total
ANALYSIS:-
BY: MUKESH RANA
Page 38
The observation shows that 56 % of customer used to come with their family. And 28% customers are there who comes with friends. And there are so less customer who used to come alone & with others because it’s family store and young and one customer try to avoid coming in Vishal Mega Mart, Model house Jalandhar-II.
4.
(a)
Do you come in Vishal Mega Mart?
Casual
[ ]
(b) Planed
[ ]
casual
40
planed
60 100
Total
ANALYSIS:BY: MUKESH RANA
Page 39
The observation shows that 60 % of customer come with planning in vishal.Because it’s family store so family make plan that when they have or should go for purchase in Vishal mega mart. And 40% customers are there who comes casually.
5.
What features you considers when you purchase in Vishal Mega Mart. please give the rank.
(A)
PRICE 58
GOOD
0
VERY GOOD
38
AVG. POOR
0
VERY POOR
4 100
TOTAL
BY: MUKESH RANA
Page 40
ANALYSIS:The observation shows that 58 % of customers think that price of Vishal mega mart is good & 38% think that it’s average price. But bad thing is that according to survey there is not even one customer who give very good rank for Vishal price as well as poor rank. But 4% customer is also there who give the rank very poor. This shows that its price is not reasonable.
(B)
PRODUCT QUALITY
GOOD VERY GOOD
36 2
AVG.
58
POOR
4
VERY POOR
0 100
TOTAL
BY: MUKESH RANA
Page 41
ANALYSIS:According to this analysis 58% customer think that its product quality is Average & 36% customer think that quality is good. Maximum no. of customer feels that its product quality is nice as per the requirement. 2% customers think that its product quality is very good as well as very poor. And 4% think that its poor quality product. Overall survey shows that its Vishal mega mart has nice product quality.
GOOD
(C )
VARIETY
16 0
VERY GOOD AVG.
60
POOR
22 2
VERY POOR
100
TOTAL
BY: MUKESH RANA
Page 42
ANALYSIS:Observation shows that 60% of customers are there who think that in Vishal mega mart variety of the product is Average & 22% customer think that variety is poor. 16% said that variety is good and 2% customer is also there who think that variety is very poor. So according to this survey I can say that if they wanted to increase their sale volume in future they need to maintain good variety of the product then they can increase their sale.
(A)
OFFER
GOOD
56
VERY GOOD
12
AVG.
28 4
POOR
0
VERY POOR
100
TOTAL
BY: MUKESH RANA
Page 43
ANALYSIS:Observation shows that whatever offers Vishal mega mart offer which is good. That is why 56% customers think that offer is quite good as compare other retail stores. and good thing is that there is not even one respondent who give very poor rank for Vishal mega mart offers. And 28% respondent think that its offers is Average.12% customer think that offer is very good & 4% think that poor. Overall I can say that its good result of this question or survey.
6.
How is the behavior of staff members of Vishal Mega Mart?
STAFF BEHAVIOR 34
GOOD
4
VERY GOOD AVG.
44
POOR
12 6
VERY POOR
100
TOTAL
BY: MUKESH RANA
Page 44
ANALYSIS:This observation is based upon Vishal mega mart Model house Jalandhar-II employees. It’s quite flabbergasted survey which show that behavior of the employee is not up to the mark or not professional. That is why 44% of respondent think that employee’s behavior is not professional. They are not well for their duty. 12% respondent think that poor staff behavior & 6% respondent think that Vishal mega mart Jalandhar-II employees behavior in terms of professional ( talking style with customer mainly in FMCG section) is very poor which is very bad for organization image. But some of the employees are very good that is why 4% customer gives them very good rank as compare other.
CUSTOMER P ERSONAL INFORMA TIONS:-
(A)
Address 92
In Jalandhar
BY: MUKESH RANA
Page 45
Outside Jalandhar
8
Total
0
ANALYSIS:This observation show that many no. of customer used to come in Vishal mega mart Jalandhar-II is local customer. 92% customer used to come from Jalandhar or nearby Jalandhar city.And 8% customer are hare they are not from Jalandhar or local city.
BY: MUKESH RANA
Page 46
(A)
A ge
18-25
32
26-30 31-35
30
36-40
8
41-50
8
>50
0
22
100
Total
ANALYSIS:Observation shows that 32% & 30% customers are young population between 18-25 & 26-30 age group who used to come in store approximately. 22% from 31-35 age group. 8% & 8% are 36-40 & 41-50 age group. And there is no customer who is more than 50 years old. So I can say that very young customer used to come in Vishal mega mart Jalandhar-II. This is good for store.
BY: MUKESH RANA
Page 47
(B)
Income
5000-10000
22
11000-20000 21000-30000
38 10
31000-40000
2
More than 40000
2 26
N.A.
100
Total
ANALYSIS:This observation shows us which category or class customers actually come in Vishal retail store. According to the survey I can say that maximum lower middle class customer used to come in Vishal retail store Jalandhar-II. 22% customers’ income is 5000-10000 Rs. 38% customers income is 1100020000 Rs. And 10% custom er income is 21000- 30000 Rs. And 2-2% customer income is 31000 -4000 Rs. & more than 40000 Rs. 26% customer is here who doesn’t have any income like studen t & children etc.
BY: MUKESH RANA
Page 48
(C)
QUALIFICATION
10th
10
12th
20
Graduate
44
P.G.
18
Diploma
6
other
2 100
Total
ANALYSIS:BY: MUKESH RANA
Page 49
Basis of this observation we come to know that which kinds of customer actually come in store. According to this survey we come to know that maximum no of customers is Graduate 44% who used to come in Vishal Jalandhar-II. 18% is post graduate, 20% 12 th & 10% metrics pass customers. Overall we can say that in Vishal mega mart Jalandhar-II maximum no. of customer used to come is literate. This is good for them. Because they understand the organized retail concept..
BY: MUKESH RANA
Page 50
LITER ATURE REVIEW
BY: MUKESH RANA
Page 51
LITERATURE REV IEW
ARTICLE NO. 01 DISCOUNTS MALL LOCAL STORES Knight Ridder Tribune Business News. Washington: Jul 29, 2009. pg. 1
ABSTRACT (SUMMARY) An ET survey on the retail market shows that retail chains such as Big Bazaar and Vishal Mega Mart are offering attractive schemes and selling products at cheaper rates. For instance a kg of bottled Maggi tomato ketchup costs Rs 74 at Big Bazaar as against a maximum retail price of Rs 84, which a mom-andpop store would charge. Also one can buy a two litre bottle of Sprite for Rs 38 at Vishal Mega Mart instead of paying a market price of Rs 42 at a local store.
ARTICLES NO. 02 VISHAL RETAIL TO EXPAND TO 5 CITIES Business line. Chennai: Jun 24, 2009. pg. 1
ABSTRACT (SUMMARY) The company inaugurated its first mall in [Pune], its first in the western region. Mr Ramchandra Agarwal, Managing Director, said the company would expand to cities such as Chandigarh, Ghaziabad, Patiala, Surat and Meerut. Located at the KPCT Towers building at Fatima Nagar, the Vishal Mega Mart will give Pune an experience of the latest in the world of fashion and trends.
BY: MUKESH RANA
Page 52
The 22,000-square-feet second floor has supermarket, music stores, household items, home appliances, car accessories, stationery, travel accessories, footwear, hardware accessories and electrical appliances.
ARTICLES NO. 03 VISHAL RETAIL SETS UP SHOP IN MUMBAI
Knight Ridder Tribune Business News. Washington: Jul 21, 2010. pg. 1 ABSTRACT (SUMMARY) Vishal's prices are roughly 15 to 20 percent less than other mass market garment labels. Vishal Mega Mart promises to deliver all the shopping needs of the customers in Mumbai. The store has been designed and planned to give a unique shopping experience to all its customers. The company aims at offering the customers a portfolio of products at bargain prices.
BY: MUKESH RANA
Page 53
SWOT ANALYSIS
BY: MUKESH RANA
Page 54
S WO T ANALY SI S
(based on above analysis)
Some of the strengths and weaknesses of Vishal Mega Mart, Model House, and Jalandhar-II are outlined below. Most of the weaknesses & strengths has been given by customers through to questionnaire..
1. STRENGTHS:
Understanding of the ‘value retail’ segment
Logistics and distribution network.
Model Town is neighbor town. And Model town is the richest area in the Jalandhar.
New or best locations
Private labels
It sells product at cheaper prices also with discount.
Garment sector of the Vishal is much more superior to other retail stores.
It offers wide range of products under one roof.
It is the only store in Modal house, Jalandhar-II where you can exchange the goods after
purchase.
2.
(On selected items).
The Vishal Mega Mart is situated at the good market place Model house.
It segments on middle and lower middle income groups.
WEAKNESSES:BY: MUKESH RANA
Page 55
Lack of parking space because parking area is not clean & there has been so many things
kept on that area which is not require.
Slow performance of the Stores.
Employees behavior is not professional.
Lack of cleanness in the store.
Daily customers footfall is very less around 200 to 300 average.
Inexperienced and unskilled management team except managers.
Supply chain management is quite slow.
Information technology systems are not working properly like- CCTV. CEMERAS, PRINTERS & SCANERS etc.
Layout of the Vishal mega mart, Model house Jalandhar-II is quite average.
Lighting system in not good. Because many lights are not working in the stores.
In Vishal Jalandhar-II store A.C. sound is very noisily inside the store. Which irritate the
customers..
Music system is not good. Because there has been playing two-2 songs at the same time. This
makes noise in the store.
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 assortment & varieties of the same item.
BY: MUKESH RANA
Page 56
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, Reliance Fresh, Easyday & V-Mart.
Need to improve store layout according to customer facility.
People are not so modern in Model house, Basti Chowk, Jalandhar-II.
3. OPPORTUNITIES:
Increasing penetration in the Jalandhar city by leveraging their supply chain, distribution and
logistics network
Emphasis on Backward Integration.
Expansion of FMCG.
Increasing customer satisfaction and our base of loyal customers
Continue to upgrade information technology systems and processes
Continue to train employees and seek entrepreneurship from employees.
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.
BY: MUKESH RANA
Page 57
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.
4. THREATS:
Independent small stores.
Demographic Changes.
V-Mart, Reliance fresh, Easy day & Big-Bazaar.
Overseas group entering the market.
Increased competition in the domestic market.
Basti Chowk is hooligan & gangster area. Where is very difficult to run any kinds of retail
store.
KEY FINDINGS
Products availability in Vishal mega mart is not up to the mark. Especially in grocery section.
Noisy and unpleasant environment is irritates customer. Air conditioning is not so good.
Discounts and offers doing well in the store.
Product display and signage is average.
BY: MUKESH RANA
Page 58
Quality in products is average.
Location of Vishal mega mart is good.
Parking facility in Vishal mega mart is not good.
Cleanliness and hygiene maintained in the store is not up to mark.
Security of Vishal mega mart is not up to mark.
Some Employees of Vishal mega mart is not providing proper knowledge to customers and some
employees do not attend the customers.
Need to improve music system in proper manner.
SUGGESTIONS:
Company need to spend a lot on advertising and promotion to create brand image of its product
(Z-LINE).
Make frequent advertisements in both print and electronic media.
Making stalls in corporate mela’s 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.
BY: MUKESH RANA
Page 59
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 Mega Mart.
Customer facility should always be under watch.
Store should provide free home delivery facility.
Company should ensure that quality and quantity of the commodity is accurate.
Company should provide regular training to their staff and aware him with the modern technique of
selling and customer dealing.
To be improved the parking facility.
Need to include varieties of similar item.
Provide more discounts on FMCG.
Music which creates a environment should be soft and play only one music in the store.
Cleanness and hygiene should be maintained regularly.
Display is very important in store so display should be improved.
Proper signage should be there so that customer can locate the products easily.
Proper packaging and provide contrast labeling in displays of product.
There is a long delay at the billing payment counter mainly because of less number of billing
machines.
BY: MUKESH RANA
Page 60
CONCLUSION:After completing this research I come to know that Vishal Mega mart is ahead of Easy Day Jalandhar-II and Reliance fresh, Jalandhar-II & V-Mart Retail in terms of sales. Only Big Bazaar & Easy Day Jalandhar-I is ahead of Vishal Mega Mart because of its prime Location and higher product range. . But there are few areas where Vishal, Jalandhar-II malls needs amendments and these suggestions are mentioned in these malls. Advertising is an important factor of getting sales promotion.
ANNEXURES:SAMPLE OF QUESTIONNAIRE
CONSUMER BEHAVIOR ABOUT VISHAL MEGA MART JAL ANDHAR-II. BY: MUKESH RANA
Page 61
1.
How often do you visit Vishal mega Mart.?
(b) Once [ ]
2.
How much money do you usually spend on Vishal Mega Mart in a month?
(b) 0 to 2000
3.
(b) 2000 to 5000
[ ]
(c) 5000 to 8000
[ ] (d) More than 8000 [ ]
[ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify)…….
Do you come in Vishal Mega Mart?
(b) Casual
5.
[ ]
With whom do you usually come with?
(b) Alone
4.
(b) twice [ ] (c) Thrice [ ] (d) More (please specify)………
[ ]
(b) Planed
[ ]
What features you considers when you purchase in Vishal Mega Mart. please give the rank.
ATTRIBUTES
VERYGOOD
GOOD
AVERAGE
POOR
VERYPOOR
PRICE PRODUCT QUALITY VARITY OFFERS
6.
How is the behavior of staff members of Vishal Mega Mart?
VERYGOOD
GOOD
AVERAGE
POOR
BY: MUKESH RANA
VERYPOOR
Page 62
7.
Give your suggestion.
____________________________________________________________________________________________ _____________________________________________________________
CUSTOMER PERSONAL INFORMATIONS:-
8.
1.
-
Name:
2.
Address: -
3.
Phone No.
4.
Age (in year):-
18-25 5.
. .
26-30 3 1-35
36-40
41-50
>50
Income
5000-10000
6.
.
11000-20000
21000-30000
31000-40000
>41000
Qualification
(a) 10th [ ]
(b) 12th [ ]
SURVEYOR NAME:
(c) Grad.
[ ]
(d) PG. [ ]
(e) Diploma
[ ]
(f) Other………
DATE:
BY: MUKESH RANA
TIME:
Page 63
BIBILIOGRAPHY
BOOKS REFERRED:
Retailing Management Pradhan, Swapna
The Art Of Retailing Lamba, A.J.
ARTICLES REFERENCES
Knight Ridder Tribune Business News. Washington: Jul 29, 2009. pg. 1
Business line. Chennai: Jun 24, 2009. pg. 1
Knight Ridder Tribune Business News. Washington: Jul 21, 2010. pg. 1
WEB SIDES REFERENCES. i. http://www.slideshare.net/guestd48fe7/indian-retail 3040432?src=related_normal&rel=874927 2.
http://www.scribd.com/doc/29021600/Vishal-Megamart-and-Its-Competitors
3.
http://www.scribd.com/doc/28559629/vishal-megamart
4.
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-
industry-its-growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-andopportunities7.asp 5.
http://business.mapsofindia.com/india-retail-industry/indian-organized-retail-market.html
BY: MUKESH RANA
Page 64
6.
http://blogs.expressindia.com/showblogdetails.php?contentid=306131
7.
http://www.scribd.com/doc/22140379/Pushpesh-Report
BY: MUKESH RANA
Page 65
