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MANAGEMENT THESIS

EFFECT OF VISHAL MEGA MART ON


TRADITIONAL RETAILING OF BERHAMPUR

Under the guidance: Presented By


Dr.R.K.Panda Debi Prasad
Paik
Enroll
No.7NBBH047
CONTENT
ACKNOWLEDGEMENT

CHAPTER- 1 INTRODUCTION

Objectives

Limitation

Methodology

CHAPTER- 2 COMPANY PROFILE

Vishal Mega Mart in Berhampur

CHAPTER -3 CUSTOMER SATISFACTIONS IN VISHAL MEGA


MART COMPARED TO

GENERAL KIRANA STORE

CHAPTER- 4 CONCLUDING REMARKS

REFERENCE
ACKNOWLEDGEMENT
To bring out this project a successful one I have received help from various
sources. Firstly I acknowledge my wholehearted thanks to my principal Mr.
Manmohan Sahu.

It gives us a great pleasure to express my sincere and deepest sense of


gratitude to Dr.R.K.Panda, for suggesting the topic of this project, his ready
and able guidance throughout the course of this management thesis. I am
greatly indebted to him for his constructive and helpful suggestion from time
to time during the progress of this management thesis and without which
this project would never have been completed.

I also thankful to those personal who gave their valuable time in


giving us the necessary data and we also thankful to ICFAI NATIONAL
COLLEGE ,Berhampur to make the project successful.

Mr.Debi Prasad Paik


Chapter-1
iNtrODuction

In 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 producer’s 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 didn’t 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.

MBO’s

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.
Objectives

The purpose of the present study is to accomplish the following objectives :

 Proper understanding and analysis of VISHAL MEGA MART

 Conduct a survey on a sample selected from the customers of VISHAL


MEGA MART and to derive their opinions.

 To know the strategy to make a customer retention.

 To analyze a comparative study between the satisfaction level of VISHAL


MEGA MART and GENERAL KIRANA STORE.

 To know the steps that VISHAL MEGA MART adopted to make a good
relationship with its customers.
Limitation

Though the present study aims to achieve the objectives that cited above in full
earnestness and accuracy, it may be hampered due to certain limitations. Some of
the limitations of this study may be summarized as follows.

 Locating the target customers is very time consuming.

 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 be partial or refuse to cooperate.

 Respondents may not be interested to give the data.


Methodology

The objective of the study was accomplished by conducting a systematic market research.
Market research is the systematic design, collecting, analysis, and reporting of data and
findings that are relevant to different marketing situations facing the company. The
marketing research process adopted in the present study consisted of the following stages:

 Collection and sources of data: market research requires two kinds of data, i e,
primary data and secondary data. Being a firm in the retail sector, data gathering
involved the usage of both primary and secondary data though there was an
extensive usage of primary data. Well structured questionnaires were prepared for
the customers. There were personal interview surveys mostly in-road side surveys.
The questionnaire contained both open ended and close ended questions. Here,
open ended questions were more useful a it was an exploratory research that was
conducted wherein the main objective was to get an insight into how people think
rather than measuring how many people think in a particular way. Secondary data
was collected from various journals, and websites.

 A sample of 50 customers were selected for this survey. Primary data were
collected by asking questionnaires by directly interacting with the customers.

 8 people were taken as a sample in each week and the survey was conducted for 6
weeks therefore a sample of 50 people were collected.

 The sample collection was done randomly among the customers who are coming
to the store for purchase.
CHAPTER- 2
company profile
“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 Delhi’s Rajouri Garden by the name of Vishal Mega Mart (The
jewel in Vishal Group’s 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 company’s 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
vishal mega mart in berhampur
Date of Inception- 5th November 2007

Location- Plot No.1176, 1177, R. C Church Road Behrampur


Orissa.

Vishal mega mart is one of the best retail outlet of India and 4th in Orissa open
its new branch in Berhampur on 5th November 2007 withan aim of high profit
with providing good and quality products to its customers in Berhampur and to
earn more profit. Each store gives international quality goods. Berhampur is a
good market place in south Orissa. People from different corners of south
Orissa are coming for shopping to Berhampur.

MERCHANDISE SOLD IN VISHAL MEGA MART BERHAMPUR:


Popular Brands of Vishal Mega Mart are:

Fizzy BabeLadies & Kids


Zeppelin : Mens Shirts & Trousers
: Girls
Kitaan Ladies & Kids
Mens Shirts & Trousers Jasmine :
Studio : Girls
Blues & Zero
Mens Trousers Kids Boys
Khakis : Degree :
Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts
Massa Bay Mens Trousers &
Chlorine : Mens Shirts
: Bermudas

Garments

Men Woman girls


Boys

Food Mart

Chinese & Indian Food Food &


Beverages

Home Furnishing

Covers Drawing room furnishing


Bath Furnishing Kitchen Furnishing

Bed room furnishing


House Hold
Cleaning aids Plastic aids
Gifts &novelties Thermo ware

Appliances
Kitchen Aids

Product Categories
- HOME FURNISHING
Drawing Room Bedroom
Door Mat Bed Sheet
Carpet Pillows
Curtains Pillow Cover
Kitchen Bathroom
Apron Bath Mats
Kitchen Napkin Towel Gift Sets
SPORTS & FITNESS
INDOOR
OUTDOOR GAMES
GAMES
Basket Ball Cricket Bat
T.T. Bat Football
Boxing Kit Lawn Tennis
Swimming
Tennis Racket
Costumes
Water Ball Tennis Ball
Fitness Equip.
Personal Gym
- FOOTWEAR
BOYS GIRLS
Shoes Slippers
Sandals Sandals
LADIES MENS
Shoes Shoes
Slippers Slippers

MENS
Upper Lower
Shirt Casual Jeans(MP)
Shirt Formal Cotton Trouser(MPC)
Ethnic &
Winter Wear
Sports
Night Suits Suit(WMC)
T-Shirts Blazer(WMB)
Dupatta Windcheater(WMW)
Sherwani Jacket
LADIES ACCESSORIES
Upper Lower
Kurta Pants Jeans
Skirt Top Capri
Ethnic Winter Wear
Nighty Jackets
Lancha Stawl
Sharara Blazer
Salwar Suit Track Suit
INFANTS
Garments Accessories
Hot Pant Bed Sheet
Frock Under Garments
Baba Suit Socks
Winter Wear
Sweater
Pull Over
- WOMEN
Sarees Personal Items
Fancy(SRF) Cap(LCA)
Synthetics Socks(Las)
Banarsi
Jewellery Cosmetics
Necklace LIp Gloss
Ring Nail Polish
KIDS BOYS
Lower Sets Winter Wear
Jeans Night Suit Suit
Bermudas Baba Suit Blazer
Dungries Jacket
Upper Ethnic
Shirt Kurta-
Formal Pyjama
T-Shirt Sherwani
KIDS GIRLS
Lower Sets Winter Wear
Hot Pant Night Suit Hipster Set
Skirt Capri Set Blazer
Dungries Jacket
Upper Ethnic
Tops(GWT) Sharara
Frock(GFK) Lancha
TRAVEL ACCESSORIES
Luggages Portfolio Bags
Suitcase Shoulder Bags
Executive Bag
School Bags
Pouch & Cases
Waist Pouch
Vanity Cases
- HOUSEHOLD

Dinner Set Jug Cake Server


Home Aids Pressure Non Stick
Cooker
Floor Wiper Cooker Handi
Sanitary Brush Pressure Pan Dosa Tawa
General Electrical Bone China
Plastic Goods App.
Coffee Mug Chopper Soup Set
Microwave
Bucket Dessert Set
Oven
Glass Ware Thermo Ware Porcelain
Cup Tiffin Cup & Saucer
L$emon Set Container
LIFESTYLE
Gifts &
Time Zone Opticals
Novelties
Ladies Wrist Ladies Sun
Flower Vase
Watch Glass
Mens Wrist Mens Sun
Key Chain
Watch Glass
Mens Electric & Perfume/Deo
Accessories Electronics
Items
Belts Battery(ABT) Spray
Calculator(EEC
Wallets Deo
)
TOYS & GAMES
Cycles &
Soft Toys Dolls
Scooters
Musical Toys Barbie Doll Cycles
Non-Musical Other Dolls Scooters
Board Infant Video Games
Games Toys
Wooden T.V. Video
Teether
Blocks Game
Hand Video
Puzzles Swing
Game

- STATIONARY
School Office Paper
Mart
Exam Board Office File Diary
Punching
Clay File
Machine
Party Stuff
Balloons
Ribbons
FOOD MART
FOOD & BEVERAGES
Snacks
Drinks
CHAPTER - 3
IMPACT OF VISHAL MEGA MART ON TRADITIONAL RETAILING OF
BERHAMPUR

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.

Here is a comparative study of the satisfaction level of customers of Vishal Mega Mart over the
general kirana store. Basing upon various parameters the data has been collected and analysed.

TABLE:1 DISTRIBUTION OF INCOME CATEGORY ACCORDING TO


AGE GROUP

INCOME 20-30 30-40 40-50 >50 TOTAL PERCENTEGE


CATEGORY YRS YRS YRS YRS OF INCOME
CATEGORY

50,000-1,00,000 0 01 02 0 03 06%

1,00,000- 02 02 01 0 05 10%
1,50,000

1,50,000- 08 06 02 0 16 32%
2,00,000

2,00,000- 06 05 04 02 17 34%
2,50,000

2,50,000- 05 03 01 0 09 18%
3,00,000

TOTAL 24 14 10 02 50

PERCENTAGE 48% 28% 20% 4%


OF AGE
GROUP
OBSERVATION:- Analysis of the data presented in table reveals that maximum no of
customers visiting to the Vishal Mega Mart are under the Age group of 20-30 years
which has a highest percentage of 48% followed by 30-40 yrs which has 28%, and 40-50
years which has 20%.

Analysis basing upon the income group reveals that the purchase behavior of customers
increases as the disposable income of customers increases. That’s why the customers
income category falling with in 2,50,000 -3,00,000 are the highest purchasers having
34% of contribution, followed by 2,00,000-2,50,000 income group which has a 32% of
contribution and 1,50,000-2,00,000 income group(18%).

TABLE -2 OCCUPATION DISTRIBUTION IN VISHAL AND


GENERAL KIRANA STORE

OCCUPATIO IN VISHAL % GENERAL %


N MEGA MART KIRANA
STORE
BUSINESS 07 14% 17 34%

GOVT 08 16% 9 18%


EMPLOYEE

PRIVATE 15 30% 10 20%


COMPANY
EMPLOYEE

STUDENT 20 40% 14 28%

TOTAL 50 100% 50 100%

OBSERVATION: TABLE 2 shows that mostly young students and


private employees are visiting vishal mega mart in more no. Students
are visiting Vishal Mega Mart more in no which about 40% of the total
sample followed by private company employees having 30% . but
businessmen are visiting kirana stores more in no which is about 34%
followed by students which is about 28% which shows that younger
generation is more attracted towards this mall concept of retailing than
the traditional retailing store
TABLE -3 EDUCATION DISTRIBUTION IN VISHAL AND GENERAL
KIRANA STORE
EDUCATI IN GENERAL
ON VISHAL
% KIRANA
%
MEGA STORE
MART

1-10TH 4 8% 12 24%

10TH -> +2 9 18% 13 26%

GRADUATI 16 32% 15 30%


ON

POST 21 42% 10 20%


GRADUATI
ON

TOTAL 50 100% 50 100%

OBSERVATION: mostly the youngsters which are avg and highly


qualified are visiting the malls more frequently than local kirana
stores which shows that they are more status conscious and malls
provide them a friendly environment among the friend group.

TABLE -4 GENDER DISTRIBUTION IN VISHAL AND GENERAL


KIRANA STORE
.
Gend IN VISHAL % GENERAL %
er MEGA MART KIRANA
STORE
M 23 46% 36 72%

F 27 54% 14 28%

total 50 100% 50 100%

OBSERVATION: table 4 shows that female to male ratio is high in


Vishal mega mart than in general kirana store, that is more female
members are coming to vishal mega mart than general kirana store
because they are feeling more secure and convenient in retail stores
rather than general kirana stores.

TABLE -5 AGE DISTRIBUTION IN VISHAL AND GENERAL


KIRANA STORE

AGE IN VISHAL GENERAL


MEGA MART
% KIRANA STORE
%
1-10 4 8% 3 6%

10-20 9 18% 4 8%

20-30 23 46% 10 20%

30-40 13 26% 14 28%

40-50 5 10% 19 38%

TOTAL 50 100% 50 100%

OBSERVATION: Table 5 shows that mostly people of age group 20-


30 are coming vishal mega mart frequently and age gp of 40-50 are
coming general store frequently.

TABLE-6 DISTRIBUTION OF CUSTOMERS ON THE BASIS OF TIME


SPENT TO PURCHASE

TIME SPENT IN
MINUTE
IN VISHAL
MEGA MART
% GENERAL
KIRANA
%
STORE

0-30 3 6% 30 60%

30-60 22 44% 20 40%

60-90 13 26%

90-120 8 16%
120-150 4 8%

150-180

Total 50 50

OBSERVATION: table 6 shows that more percentage of people spending 30-60


minutes time in vishal mega mart which is about 44% of the sample but more percentage
of people spending only 0-30 minutes in general kirana store. This is due to the
availability of enough space or aisles for the customers to wander around the retail store
and spend some idle time. Here most of the retail stores are not only for purchasing the
goods but for giving refreshment to the customers that’s why they are spending more
time in retail store which increases the sale of the retail store.

TABLE -7 EXPENDITURE WISE DISTRIBUTION OF CUSTOMER IN


VISHAL MEGA MART & GENERAL KIRANA STORE

EXPENDIT VISHAL GENERAL


URE MEGA
% KIRANA
%
CLASS MART STORE

0-500 6 12% 27 54%

500-1000 11 22% 14 28%

1000- 19 38% 9 18%


1500

1500- 14 28%
2000

TOTAL 50 100% 50 100%

OBSERVATION:- Table 7 shows that about 38% of people are purchasing in


between 1000 – 1500 Rs, in vishal mega mart and 54% of people are purchasing in
between Rs.0-500 in general kirana store, which shows that purchase capacity increases
in retail stores due to many factors like availability of wide range of products which suits
to the purchase capacity of the customer. Wide distribution of products also increases the
impulse buying behavior of the customer.
TABLE -8 DISTRIBUTION OF CUSTOMERS ON THE BASIS OF
ITEMS PURCHASED
ITEMS NO OF CUSTOMERS NO OF CUSTOMERS
PURCHASED PURCHASED FROM PURCHASED FROM
VISHAL MEGA MART GENERAL KIRANA STORE
(OUT OF 50 (OUT OF 50
CUSTOMERS) CUSTOMERS)

Rice 20 30

Dal 20 20

Spices 15 15

Detergents 20 20

Soaps 30 20

Toothpaste 20 10

Shampoo 25 10

Refined oil 15 10

Sugar 15 20

Tea 20 10

Health drinks 20 10

Milk Powder 10 --

Mosquito coil 10 --

Biscuit 15 10

Papad 20 10

Pickle 20 5

Plastic accessories 25 --

Home ware 20 --

OBSERVATION: from this table it is clear that in kirana stores only the
necessary items such as rice, dal, edible oil, spices, wheat flour are mainly
purchased by the customers but in Vishal Mega Mart not only the necessary
itmes but the luxury items like cosmetics, electronic items, and life style
items and apparels are also sold in good quantity. This gives the customer a
convenient place where he can buy every kind of things under one roof.

TABLE -9 DISTRIBUTION OF MEAN PRICE OF THE ITEMS


BETWEEN VISHAL MEGA MART & GENERAL KIRANA STORE

ITEMS MEAN PRICE IN MEAN PRICE IN


VISHAL MEGAMART GENERAL KIRANA
STORE
Rice 25 20
Dal 40 40
Spices 21 (BRANDED ITEMS) 20(LOCAL BRANDS)
Detergents Surf excel-1kg-140/- Same but without
offers.
Ariel-1kg-116/-

With offer.
Soaps 16/- 16/-
Toothpaste 500gm- 56/- 500gm- 56/-
Shampoo 200ml-70/- with free 200ml -70/- but with out
gift free gifts
Refined oil 95/- but vishal price 95/-
76/-
Sugar 22/- 22/-
Tea 500gm-50/- but with 500gm-50/-
free 100 gm biscuit
pack.
Health 1 kg -220/- 1 kg -220/-
drinks
Milk Powder 1kg-210/- 1 kg-225/-
Mosquito Liquid-72/- but Vishal Liquid-72/-
repellent price -67/-
Biscuit 1 pack -10/- 2 pack for 1 pack -10/-
15/-

TABLE-10 MEAN QUANTITY PURCHASE FOR ALL ITEMS.

ITEMS QUANTITY PURCHASED QUANTITY


IN VISHAL MEGA MART PURCHASED IN
GENERAL KIRANA
STORE

Rice 2kg 4 kg

Dal 2 kg 2kg

Spices 300 gm 100 gm

Detergents 3kg 1 kg

Soaps 4 no 2no

Toothpaste 250 gm 250 gm

Shampoo 200ml 50 ml

Refined oil 1lt 1lt

Sugar 2 kg 1kg

Tea 500 gm 250 gm

Health 1kg 500 gm


drinks

Milk 1kg 500 gm


Powder

Mosquito 1 pack 1pack


coil

Biscuit 500 gm 100 gm

Papad 250 gm 250gm

Pickle 500 gm 200 gm


OBSERVATION: due to presence of wide variety of merchandise and presence of
merchandise which suits every pocket increases the customer buying behavior.

TABLE-11 ITEM WISE MEAN EXPENDITURE AT VISHAL MEGA


MART AND GENERAL KIRANA STORE.

ITEM Mean Mean


EXPENDITURE IN EXPENDITURE IN
VISHAL MEGA GENERAL STORE
MART

Rice 86/- 138/-

Dal 49/- 98/-

Spices 50/- 20/-

Detergents 116/- 32/-

Soaps 64/- 48/-

Toothpaste 56/- 56/-

Shampoo 75/- 30/-

Refined oil 190/- 80/-

Sugar 44/- 22/-

Tea 100/- 42/-

Health 220/- 115/-


drinks

Milk Powder 210/- 115/-

Mosquito 36/- 18/-


coil

Biscuit 50/- 20/-


Plastic 100/- --
accessories

Home ware 200/- --

OBSERVATION: in this table we have seen that mean expenditure on the


merchandise is more in Vishal Mega Mart than general kirana store because of the
reason of some of the promotional activities like Every day Low Price(EDLP), offers,
discounts, coupons, annual clearance sale in which the customer gets the
merchandise or goods in lesser price in compared to the other general shops.

TABLE-12 VARIETIES AVAILABLE AT VISHAL MEGA MART

ITEMS NO OF VARIETIES NO OF VARIETIES


PRESENT IN VISHAL PRESENT IN GENERAL
MEGA MART KIRANA STORE

Rice 5 2

Dal 4 2

Spices 4 (branded) 2 (branded),local brands-4

Detergents 6 3

Soaps 10 6

Toothpaste 5 4

Shampoo 6 3

Refined oil 5 3

Sugar 2 1

Tea 4 3

Health 6 3
drinks

Milk Powder 4 2

Mosquito 3 2
coil

Biscuit 6 4

Papad 4 2(BRANDED),REST ARE


LOCAL

Pickle 3(BRANDED) 3(BRANDED),3(UNBRANDE


D)

Plastic 2 --
accessories

Home ware 4 --

OBSERVATION: Table 12 shows that there are more no of


varities of items are present in Vishal mega mart than
general Kirana store.

VARIABLES TO MEASURE SATISFACTION


TABLE -13 SATISFACTION WITH PRICE IN VISHAL MEGA MART IN
COMPARED TO GENERAL KIRANA STORE
SATISFAC NO OF PERCENTA NO OF PERCENT
TION PERSONS PERSONS IN
WITH VISHAL
GE % GENERAL
AGE %
PRICE MEGA MART KIRANA STORE

HIGH 07 14% 03 06%


SATISFACTI
ON

SATISFIED 28 56% 16 32%

LESS 15 30% 26 52%


SATISFIED

UNSATISFIE 00 00% 05 10%


D

TOTAL 50 100 50 100

OBSERVATION: Table 13 shows that 70% of people are satisfied with the
price of VMM where as only 38% of people are satisfied with the price of
kirana store.
SATISFACTION WITH QUALITY in VISHAL
TABLE 14
MEGA MART IN COMPARED TO GENERAL KIRANA
STORE

SATISFACTION NO OF PERCENTAGE NO OF
WITH QUALITY PERSONS in % PERSO %
VMM NS IN
G.K.S.

HIGH 05 10% 07 14%


SATISFACTION

SATISFIED 37 74% 12 24%

LESS SATISFIED 08 16% 24 48%

UNSATISFIED 07 14%

TOTAL 50 50

OBSERVATION :TABLE 14 Shows that 74% of people are


satisfied with the quality of the products of Vishal mega
Mart where only 48% of people are satisfied with the
quality of kirana store.

TABLE 15 : IS VMM BETTER THAN GENERAL KIRANA STORE


OPINION NO OF
PERSON
%
YES 36 72%

MANAGEAB 14 28%
LE

NO 00 00

TOTAL 50

OBSERVATION: TABLE 15 Shows that 72% of people are interested


to purchase in such malls followed by 28% of people saying its
manageable , perhaps this group is trying to convert themselves from
traditional to organized shopper.

TABLE -16: REASON OF SUPERIORITY OF MALL


REASONS OF NO OF
SATISFACTION PERSON %
NEWLY OPEN 10 20%

CHEAP PRICE 25 50%

ALL ITEMS 10 20%


AVAILABLE UNDER
ONE ROOF

SHOPPING IN BIG 05 10%


MALLS AS A STATUS
SYMBOL

TOTAL 50

OBSERVATION 16 The reason for growing likeness of the mall concept or retail store
has great many reasons like 20% of the people sited that due to new opening the curiosity
of buying or purchasing ina new and advanced environment attracts many customers. It is
also obvious that due to introduction of this store the retail company may offer some
discounts ad other advantages which also attracts the customers.

25% of the customers have felt that the prices in Vishal Mega Mart is quite lower that
other general grocery stores and that’s why they are attracted towards this retail store.

10% of the customers have said that purchasing in Vishal mega mart is less time taking
because thay don’t have to wander here and there for different kinds of things and all the
goods are there under one roof.

5% of the customers said that considers buying in retail stores like Vishal Mega Mart is a
status Zsymbol for them.

So there are great many reasons for buying thingdsin Vishal Mega Mart.
CHAPTER -4
CONCLUDING REMARKS
KEYFINDINGS:

1 :Analysis of the data presented in table reveals that maximum no of customers visiting
to the Vishal Mega Mart are under the Age group of 20-30 years which has a highest
percentage of 48% followed by 30-40 yrs which has 28%, and 40-50 years which has
20%.

Analysis basing upon the income group reveals that the purchase behavior of customers
increases as the disposable income of customers increases. That’s why the customers
income category falling with in 2,50,000 -3,00,000 are the highest purchasers having
34% of contribution, followed by 2,00,000-2,50,000 income group which has a 32% of
contribution and 1,50,000-2,00,000 income group(18%).

2 :shows that mostly young students and private employees are visiting vishal mega mart
in more no. Students are visiting Vishal Mega Mart more in no which is about 40% of the
total sample followed by private company employees having 30% . but businessmen are
visiting kirana stores more in no which is about 34% followed by students which is about
28% which shows that younger generation is more attracted towards this mall concept of
retailing than the traditional retailing stores.

3: mostly the youngsters which are avg and highly qualified are visiting the malls more
frequently than local kirana stores which shows that they are more status conscious and
malls provide them a friendly environment among the friend group.

4: table 4 shows that female to male ratio is high in Vishal mega mart than in general
kirana store, that is more female members are coming to vishal mega mart than general
kirana store because they are feeling more secure and convenient in retail stores rather
than general kirana stores.

5: Table 5 shows that mostly people of age group 20-30 are coming vishal mega mart
frequently and age gp of 10-20 are coming general store frequently.

6: table 6 shows that more percentage of people spending 30-60 minutes time in vishal
mega mart which is about 44% of the sample but more percentage of people spending
only 0-30 minutes in general kirana store. This is due to the availability of enough space
or aisles for the customers to wander around the retail store and spend some idle time.
Here most of the retail stores are not only for purchasing the goods but for giving
refreshment to the customers that’s why they are spending more time in retail store which
increases the sale of the retail store.

7:- Table 7 shows that about 38% of people are purchasing in between 1000 – 1500 Rs,
in vishal mega mart and 54% of people are purchasing in between Rs.0-500 in general
kirana store, which shows that purchase capacity increases in retail stores due to many
factors like availability of wide range of products which suits to the purchase capacity of
the customer. Wide distribution of products also increases the impulse buying behavior of
the customer.

8: from this table it is clear that in kirana stores only the necessary items such as rice,
dal, edible oil, spices, wheat flour are mainly purchased by the customers but in Vishal
Mega Mart not only the necessary itmes but the luxury items like cosmetics, electronic
items, and life style items and apparels are also sold in good quantity. This gives the
customer a convenient place where he can buy every kind of things under one roof.

10: due to presence of wide variety of merchandise and presence of merchandise which
suits every pocket increases the customer buying behavior.

11: in this table we have seen that mean expenditure on the merchandise is more in
Vishal Mega Mart than general kirana store because of the reason of some of the
promotional activities like Every day Low Price(EDLP), offers, discounts, coupons,
annual clearance sale in which the customer gets the merchandise or goods in lesser price
in compared to the other general shops.

12: Table 12 shows that there are more no of varities of items are present in Vishal mega
mart than general Kirana store.

13: Table 13 shows that 70% of people are satisfied with the price of VMM where as
only 38% of people are satisfied with thwe price of kirana store.

14:TABLE 14 Shows that 74% of people are satisfied with the quality of the products of
Vishal mega Mart where only 48% of people are satisfied with the quality of kirana store.

15: TABLE 15 Shows that 72% of people are interested to purchase in such malls
followed by 28% of people saying its manageable , perhaps this group is trying to convert
themselves from traditional to organized shopper.

16: The reason for growing likeness of the mall concept or retail store has great many
reasons like 20% of the people sited that due to new opening the curiosity of buying or
purchasing ina new and advanced environment attracts many customers. It is also
obvious that due to introduction of this store the retail company may offer some discounts
ad other advantages which also attracts the customers.

25% of the customers have felt that the prices in Vishal Mega Mart is quite lower that
other general grocery stores and that’s why they are attracted towards this retail store.

10% of the customers have said that purchasing in Vishal mega mart is less time taking
because thay don’t have to wander here and there for different kinds of things and all the
goods are there under one roof.

5% of the customers said that considers buying in retail stores like Vishal Mega Mart is a
status symbol for them.

So there are great many reasons for buying thingdsin Vishal Mega Mart.
SUGGESTIONS:
1- As the customers are coming from the distant places some kind of refreshment like
restaurants, cafes should be there to get relax.

2- Customers are buying in a bulk quantity so they definitely needs a trolly to carry
the goods to the billing counter ,though the trollies are there in Vishal Mega Mart
but the continuity of floor is interrupted due to numerous upstairs in a single floor
which reduces the utility of trollies in Berhampur Vishal Mega Mart. We can
increase the purchase capacity of customers by providing trollies for excess goods
those they are not able to carry.
reference
To make my project a successful one I have taken help from various
sources, such as direct interaction journals and web sites. The books I
have referred are

• Retail management (ICFAI).

The web sites I have referred for different information are

• www.vishalmegamart.com

• www.indianretailindustry.com

The previous thesis I have referred of

• Mr. Nalinikanta Padhi “A study on customer satisfaction with


reference to VISHAL MEGA MART in Berhampur.

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