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Research Project Report

On
“Marketing Strategies of Vishal Mega mart”

SUBMITTED TO
PUNE UNIVERSITY

In Partial Fulfillment of Requirements


For the Award of Requirement of
Masters of Business Administration

BY
GAURAV TYAGI

MMM- II
Roll No:- 25

PROJECT GUIDE
MANISHA LANDE

ACADEMIC YEAR 2010-2012

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH


KONDHWA, PUNE- 48

1
PREFACE

A man can become perfect with a perfect knowledge and experience. As a student of business
management, we have studied many theories in the classroom but any professional degree is
incomplete without practical knowledge of concerned field.
And the same case is with management studies, management is incomplete without knowing
practical application of theories studied. I have experienced and understood the practical
importance of these theories on this training. More books and theoretical knowledge can’t help
you in any field whether it is management or technical. Only thing can help you is practical
knowledge.
This development day provides a golden opportunity to the students for getting a perfect
knowledge and experience.
I come to know how the management of company is actually being done. How decisions are
made? How people behave and decide what to purchase?
As a part of my learning in management field and requirement of MMM program, I have been
given an opportunity to grab practical knowledge in the area of marketing and I had selected
“VISHAL MEGAMART”. I have made my best efforts to get knowledge and experience.
During the day, I had collected necessary information, and I present all the necessary information
to understand well.

2
ACKNOWLEDEMENTS

The project work is pursued as a part of MMM curriculum at Pune University Pune. I would
greatly rejoice to express emphatically with profound sense of gratitude and highest veneration,
my sincere thanks to Pro-Manisha Lande for giving me guidance for this Project.

The project is undertaken as training at Vishal Mega-Mart. The project is done under expert
supervision and guidance of Mr. Ashish Kumar (Store Manager, Vishal Mega-Mart). I am
thankful for him.

I am short of words to express my respect & honor to my parents and family members & friend
who showered their blessings, affection, encouragement, & inspiration, without which this report
would not have been finalize.
I also express my sincere thanks to my friends who helped me differently in the completion of
my work.

Last but not least, I also thank all those people whom I met at Vishal Mega-Mart during my
internship and helped me to accomplish my assignments in the most efficient and effective
manner.

3
DECLARATION

I,GAURAV TYAGI, hereby declare that the project report on “MARKETING


STRATEGIES OF VISHAL MEGA MART” is a result of my own work and my
indebtedness to other work publications, if any, have been duly acknowledged.

Place: Pune Signature


Date: 21/09/2010
GAURAV TYAGI

4
EXECUTIVE SUMMARY

“A comparative study of effectiveness of different promotional strategies (schemes) with


reference to vishal mega mart”
All this information has collected regarding the project through primary and secondary
data.
This report highlights on the understanding the marketing strategies of vishal mega mart
and their effect on sales of the products.
From the questionnaire & the data collected from net & other resources and find market potential
of big bazaar.
The limitation of this thesis is sample size. The sample size for this thesis is only 100
respondents. The methodology adopted by me for this thesis is to conduct a survey. I have
prepared questionnaire for the survey. The objective of this thesis is understood marketing
strategies of vishal mega mart and its effect on the sales of its services and products.
The finding of the thesis is that customer is interested in products and services given by Vishal
Mega Mart & give different type of promotional activity for the effective market potential.

5
CONTENTS

S.NO. CONTENTS PAGE


NO.
1. Preface 2
2. Acknowledgement 3
3. Declaration 4
4. Executive Summary 5
5. Chapter 1. Introduction
Introduction of Indian Retail Industry 8
Objective of the Study 12
Limitations of the Study 13-14
Scope of the Study 15
Chapter 2. Research Meathodology 16-20

Company Profile 21
Vision 25
Marketing Strategy 37
Chapter3. . Data collections and Analysis 45-47
Swot Analysis 45
Questionare 47

Chapter4. Findings 60
Findings 60-62

Chapter 5. Conclusion and Suggestion


Conclusion 63
Suggection 64

65
Chapter 6. Bibliography

6
Chapter:-1.
INTRODUCTION

Introduction of Indian Retail Industries:

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
7
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.

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail Report to be
around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail

8
market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different
types of retail industries present in India. Furthermore around 15 million retail outlets help
India win the crown of having the highest retail outlet density in the world. The contribution
of retail sector to GDP has been manifested below:

Country Retail Sector's share


in GDP (in %)
India 10
USA 10
China 8
Brazil 6
As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is
a sunrise industry in India and the prospect for growth is simply huge. There are many factors
that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of
them can be listed as follows:

Rise in the purchasing power of Indians-


The rise in the per capita income in the last few years has been magnificent. This has led to the
generation of insatiable wants of the upper and middle class. The demand of new as well as

9
second hand durables has risen throughout the country thus providing the incentive for taking up
retailing.

Favorable to farmers- retailing has helped in removing the middlemen and has thus
enhanced the remuneration to farmers. This is a new revolution in the agricultural
sector in India and will go a long way in amending the condition of agriculture, a
major concern among policy makers.

Use of credit- a typical Indian is most conversant with using credit cards than carrying
money. These have led to a shift of the consumer base towards supermarkets and
make the payments in the form of credit.

Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the
generation-Y. People and kids prefer to shop in an air conditioned a tech savvy
manner. The retail industry is the second largest employer in India. It currently employs about
7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent
statement “salaries ought not to be legislated” is a welcome move as most of the
organized retail is in private hands. However only about 4.6% of the total retail trade
is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major
and minor players desperately need to work hard in this direction so that next time the
figures look more decent. The government must also make an attempt to ameliorate
the situation as political instability and infrastructure namely power and roads are the
major roadblocks in the path of smooth functioning of the market.

Components of Retail Sector

The major components of the retail sector are:

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Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables, Apparel,
Footwear and leather, Watches, Jewellery, and Health and Beauty
The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per
cent of the organised retail pie, followed by food and grocery, which accounts for 11 percent
of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of
Commerce and Industry (FICCI), among these, the food and grocery is expected to witness
the fastest growth followed by clothing as the second-fastest growing segment.

Objectives of the study

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• To understand the different marketing strategies being followed by Vishal Mega
Mart.
• To learn their marketing mix.

Marketing help to define the business for the customer's interests, not your own. It is the process
of learning what customers want or need and determining how to satisfy those wants or needs. It
is also used to confirm whether the customer reacted to a marketing program as expected. The
benefits of market research include:
 Learning who your customers are and what they want.
 Learning how to reach your customers and how frequently you should try to
communicate with them.
 Learning which advertising appeals are most effective and which ones get no response.
 Learning the relative success of different marketing strategies, thus improving return on
investment.
 Learning how not to repeat your mistakes.

LIMITATION OF THE STUDY

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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.

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. Research
period is not just much enough to know fully about the strategies & consumers
perception

3. INHIBITIONS OF THE 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.

4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA


The research has been conducted for the Vishal mega mart(Shastri Nagar Garh
Road,Meerut) but not all their retail outlet have been covered therefore it has been
mentioned that the research has been conducted in a limited area.

5. THE SAMPLE SIZE IS SMALL


The sample size taken for this thesis is small; it may not actually represent the whole
population. The data collected were totally depending on the respondent’s views,
perception, behavior, psychology related to particular scheme which could base in nature

13
These limitations were very common and yet we came across these with a positive note
and the subsequent chapters in this report shall explain the rationality behind the
structural compilation.

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Scope of study

This project gave me great exposure to the customer’s perception to the marketing strategies
adopted by the Vishal mega mart because it includes the service offered by them. The study also
identifies the attitudes and preference of the consumers. The study also focused on Media
through which the product reaches the consumers This project helped me in knowing the market
practically.

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RESEARCH METHODOLOGY

Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic and a
replicable process, which identifies and defines problems, within specified boundaries. It
employs well-designed method to collect the data and analyses the results. It disseminates the
findings to contribute to generalize able knowledge. The characteristics of research presented
below will be examined in greater details later are:

 Systematic problem solving which identifies variables and tests relationships between
them,
 Collecting, organizing and evaluating data.
 Logical, so procedures can be duplicated or understood by others
 Empirical, so decisions are based on data collected
 Reductive, so it investigates a small sample which can be generalized to a larger
population
 Replicable, so others may test the findings by repeating it.
 Discovering new facts or verify and test old facts.
 Developing new scientific tools, concepts and theories, this would facilitate to take
decision.

For the proper analysis of data simple statistical techniques such as percentage were use. It helps
in making more generalization from the data available. The data which was collected from a
sample of population was assumed to be representing entire population was interest.
Demographic factors like age, income and educational background was used for the
classification purpose.

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2.1 Research Design:
It was important to collect detailed information on various aspects for effective analysis.
Research design can be of three forms:

• Descriptive Research: It is conducted to ascertain certain magnitudes and to provide an


accurate snapshot of some aspect of the market environment. For example: Determining
the size of the market, market share, availability of distributors, sales analysis, studies of
consumer attitude etc.
• Exploratory Research: This is used when one is seeking insight into the general nature
of a problem, the possible decision alternatives, and relevant variables that need to be
considered. Little prior knowledge is required. Research methods are highly flexible,
unstructured and qualitative. For example: What new product should be developed, what
should be the positioning of our product, etc.
• Causal Research: Causal studies are designed to determine whether one or more
variables cause or determine the value of other variables. It is an evidence of relationships
of variables. For example: Whether decrease in price will lead to an increase in the sales
of a product, or whether the presence of a sales person will help in increasing the sales in
a retail outlet, etc.
• These three types can be viewed as cumulative. The research design adopted for project
research is Causal Research.
• Once the researcher has decided the ‘Research Design’, the next job is of data collection.
For data to be useful, our observation needs to be organized so that we can get some
patterns and come to logical conclusions.

Depending upon the sources utilized, whether the data has come from actual observations
or from records that are kept for normal purposes, statistical data can be classified into two
categories:

2.2 Primary Data

2.3 Secondary Data

17
2.2 Primary Data:

It is one, which is collected by the investigator himself for the purpose of specific inquiry
or study. Such data is original in character and is generated by surveys conducted by individuals
or research institutions.

It can be obtained by:

° Communication
° Observation
° Questionnaire

2.3 Secondary Data:

When an investigator uses the data, which has already been collected by others such data is
called secondary data. This data is primary for the agency that collects it and becomes secondary
data for someone else who uses this data for his own purpose.

It can be obtained by:

° Company’s web
° Journals
° Reports
° Newspapers
° Government Publications
° Publication of professional and research organization.

The research methodology involves the following major steps namely-


2.3.1 Defining data source
2.3.2 Research approach

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2.3.1 Defining data source:
In the project, both primary and secondary data were used for the research process.
Secondary data are data that were collected for another purpose and already exist somewhere.
In this project the secondary data are collected from internet, newspapers and text materials.
This constitutes the chief material on the basis of which research work is carried out.
Primary data are data freshly gathered for specific purpose or specific project purpose. It is
obtained by study specifically designed to fulfill the data of the problem in hand. Primary
data are original in character. Primary data was collected in two ways: - Observation research
and surveys.

2.3.2 Research Approach:


In the project primary data was collected through observation research, surveys and
secondary data from internet, books and text materials. In observation research, fresh data was
collected by observing the relevant parameter of research. Basically secondary data was used for
evaluating the performance of stock market.

2.4 Sample Design:


For carrying out any research or study on any subject it is very difficult to cover even
10% of the total population. Therefore the sample size has to be decided for a meaningful
conclusion. For designing the sample size, it was thought proper to cover a very small percentage
of population in various age groups.
The method used for sample technique was non probability convenience sampling method. This
method is used because it is known previously as to whether a particular person will be asked to
fill the questionnaire. Convenient sampling is used because only those people will be asked to fill
the questionnaires that were easily accessible and available to the researcher.
Considering the constraints, it was decided to conduct the study based on sample size of 200
people in specific age groups. Scientific method is not adopted in this study because of financial
constraints and also because of lack of time; also the basic aim of doing the research is academic,
hence most convenient way is selected

2.4.1 Sample Size:

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I conducted approximately 200 samples during my research.

2.4.2 Sampling Method:


I used random sampling method for my research. Where, I have selected the persons randomly
for research work.

2.5 Method of data collection:


The next step is together the requisite data. There are two types of data collection method –
primary data and secondary data

2.5.1 Instrument for data collection:


I have used the questionnaire method in sample survey. If one wishes to find what people think
or know, the logical procedure is to ask them. This has lead marketing researchers to use the
questionnaire technique for collecting data more than any other method.
In this method questionnaire were distributed to the respondents and they were asked to answer
the questions in the questionnaire. The questionnaires were structured non-disguised
questionnaire because the questions, which the questionnaire contained, were arranged in a
specific order besides every question asked was logical for the study; no question can be termed
as irrelevant.

The questionnaire, were non-disguised because the questionnaire were constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew
why they asked to fill the questionnaire.

2.7 Data-analysis techniques:


The study conducted is a conclusive descriptive statistical study; the researcher comes to the
decision which is precise and rational. The study is conclusive because after doing the study the
researcher comes to a conclusion regarding the position of the brand in the minds of respondents
of different firms groups. The study is statistical because throughout the study all the similar
samples are selected and group together. All the similar responses are taken together as one and
their percentages are calculated.

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Thus, this, conclusive descriptive statistical study is the best study for this purpose as it provides
the necessary information which is utilize to arrive at a concrete decision.

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.
As of December 1, 2010, it operates 172 retail stores, including two stores which are operated by
their franchisees. These 172 stores are spread over about 24,00,000square feet and are located in
24 states across India. In its efforts to strengthen thier supply chain, it has set up seven regional
distributions centres and an apparel manufacturing plant.
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.
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.

21
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 customer 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

It follows the concept of value retail in India. In other words, their business approach is to sell
quality goods at reasonable prices by either manufacturing themself or directly procuring from
manufacturers (primarily from small and medium size vendors and manufacturers). It endeavour
to facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire
family. It

believes this concept has helped them grow to thier current size within a short time frame of their
years. Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the Indian
retail industry.

In order to reduce costs and take advantage of economies of scale it has embarked on backward
integration of their products. Thier apparel manufacturing plant is located at Gurgaon, Haryana.
For ensuring efficiency in supply chain, it has set up seven regional distribution centres located
around Kolkata, Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana
(Punjab), Gurgaon (Haryana) and Delhi. Further, it has focussed on developing a cost and time
efficient distribution and logistics network, which currently comprises seven distribution centers
and a fleet of trucks for transportation.

“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

22
15
Board of Directors:

23
Mr. Ram Chandra Agarwal, Chairman & Managing Director
He holds a bachelor’s degree in commerce from St. Xavier’s College,Kolkata. Mr. Agarwal
has more than 20 years of experience in the retail industry and has been with VRPL since their
inception in 1997.

Mrs. Uma Agarwal, Executive Director


She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of experience in the
retail industry. She has been associated with accounts department of VRPL.

Mr. Surendra Kumar Agarwal, Executive Director


. . He holds a bachelor’s degree in commerce. Mr. Agarwal has more than 17 years of
experience in the retail industry. He has been associated with store development and
management at various locations of VRPL.

Mr. Bharat Jain, Independent Director


He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather
garments and accessories and has more than 23 years of work experience. Mr. Jain joined
VRPL Board on May 8, 2006.

Mr. Rakesh Aggarwal, Independent Director


He holds a master’s degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding
industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on
October 31, 2006.

OUR PROMOTERS AND GROUP COMPANIES

Our Promoters

The following individuals are the Promoters of our Company: 24


a). Mr. Ram Chandra Agarwal;
b). Mrs. Uma Agarwal; and
c). Mr. Surendra Kumar Agarwal.
The following companies are the Promoters of our Company:
a). Unicon Marketing Private Limited;
b). Ricon Commodities Private Limited; and
c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our Company:


a). Mr. Ram Chandra Agarwal (HUF)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

Name of Shareholders
Because & Number
of increasing ofof
number Shares %families,
nuclear of shareholding
working women, greater work pressure
and
1. greaterMarketing
Unicon commuting time, Limited
Private convenience has 49.53
315,000 become a priority for Indian customers. They want
2. Ricon
ever Commodities
thing under onePrivate Limited
roof for easy300,000
access 47.17
and multiplicity of choice. The growth and
3. Mr. Ram Chandra Agarwal 12,010 1.89
development
4. of organized
Mrs. Uma Agarwal 9,010retailing
1.42 is driven by two main factors – lower prices and benefits the
Total 636,020
customer can’t resist. India is rapidly involving 100.00
into a competitive market place with potential
target consumers in the niche middle class segments. The market trend indicates tremendous
growth opportunities.

MISSION STATEMENT:

We shall deliver Everything, everywhere, everytime for every Indian Consumer in


the most profitable manner.

VRPL’s BUSINESS:-
VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired
the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels.
Subsequently, with evolution of retail industry in India and change in consumer aspirations,
VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell
ready-made apparels and a wide range of household merchandise and other consumer goods such
as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home furnishing,
beverages, drinks, gift and novelties.
VRPL follow the concept of value retail in India. In other words, VRPL’s business approach is to
sell quality goods at reasonable prices by either manufacturing themselves or directly procuring
from manufacturers (primarily from small and medium size vendors and manufacturers). VRPL
endeavor to facilitate one-stop-shop convenience for their customers and to cater to the needs of
the entire family. VRPL believe this concept has helped them grow to their current size within a

25
short time frame of 10 years.
In order to reduce costs and take advantage of economies of scale VRPL have embarked
on backward integration of their products. VRPL’s apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional
distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.
Further, VRPL have focused on developing a cost and time efficient distribution and logistics
network, which currently comprises seven distribution centers and a fleet of trucks for
transportation.

VRPL Business Processes:-


VRPL’s business process can be summarized as below:

Establishment of Stores:
 Selection of location
In selecting location for a new store, VRPL start by identifying the city/town. VRPL target
primarily cities/towns which may be classified as Tier II or Tier III cities. In this regard, an
analysis of the demography, literacy levels, nature of occupation and income levels. Within a
city/town, VRPL target locations with good infrastructural facilities such as easy accessibility,
provision for water, electricity, parking, security and other basic amenities. VRPL prefer to
locate their stores in areas where real estate is available at reasonable prices. The efforts of
VRPL’s retail business are targeted towards families having total income which can be classified
under the “lower middle” and “middle” income groups. Accordingly, VRPL plan their strategy to
search for areas within cities where such customers are domiciled in large numbers and make
efforts to locate themselves within the reach of such customers.
VRPL believe that adoption of standard formats for their stores has led to their brand
establishment and identification among their customers and will increase their base of loyal
customers. In pursuance of this, they have adopted standard parameters for store planning and
establishment. For ensuring standardized formats
of their stores, VRPL consider various factors, such as internal and external décor and colour
schemes, allocation of store space, stock mix and pricing and accounting methods.

26
 Insurance
VRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz, Royal
Sundaram and IFFCO-TOKIO for their existing stores, distribution centers, manufacturing
facilities and trucks. VRPL insurance policies include comprehensive coverage for electronic
equipment, fire and special perils and burglary. Further, VRPL has filed a claim of Rs. 22.50
million on account of fire in their store at Meerut as on July 7, 2006. In this regard, they have
received Rs. 7.50 million as an interim payment.
 Factories
VRPL’s existing manufacturing facilities are located at Plot No. 224, Phase 1 Udyog Vihar,
Gurgaon, for which they have leasehold interest until May 4, 2009. In addition, VRPL have
recently acquired freehold interest in relation to a land admeasuring 7.24 acres in Dehradun,
Uttaranchal, where they are exploring the possibilities for establishment of another
manufacturing facility.
 Other Properties
VRPL have recently acquired freehold interest in relation to a land admeasuring 82,830 square
feet in Hubli, Dharwad.
 Merchandise Planning
VRPL’s merchandise planning is based on the concept of category management rather than
traditional brand management practices.

27
Apparels and Non Apparels

Under category management for, say, apparels, VRPL create and cater to products across length
and breadth of a category at different price points, fabrics, designs, shapes, seasons, colors and
sizes. VRPL formulate annual merchandising plan for each division of merchandise taking into
consideration factors such as past sales data, regional customer tastes and preferences, number of
stores (established and proposed), likely fashion and trends, in-house production resources,
vendor management and price. Each division is further divided into major categories (for
instance, men’s apparel as a division is further divided into three major categories, namely,
upper, lowers and sports and ethnic wear). These major categories are in turn segregated into
various subcategories. For example, men’s upper as a major category would be further divided
into several sub-categories such as formal shirts, casual shirts, party wear etc. Each sub-category
consists of pre-defined SKUs, which are classified on the basis of price point, brand, style,
pattern and size.
VRPL draw annual sales projections for different SKUs and, accordingly, ascertain their
sourcing requirements. Based on such information and lead time estimates for supplies, purchase
orders with delivery schedules are issued. The inventory position for each SKU is reviewed
fortnightly taking into account the actual sales and variations from the budgeted plans. Regular
visits to the stores are made by the category merchandising team to identify the slow-moving-
SKUs and explore the options to expeditiously dispose of them.
For certain non apparel categories, their merchandise planning and scheduling also depends on
introduction of new products and schemes by the vendors. For instance, if a branded home
appliance manufacturer replaces a product with a new version, then their planning for the product
would need to be reviewed based on the acceptability of the new version.

In-house Manufacturing
VRPL benefit from backward integration and in-house manufacturing of part of the apparel
products sold in their stores. Through their manufacturing capabilities, VRPL is able to attain
relative independence from intermediaries with a competitive advantage in terms of value and
cost. VRPL use their manufacturing strengths to focus on enhancing product knowledge and their
experiences from manufacturing enable them to negotiate better terms from the vendors and job

28
workers.
VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The manufacturing
plant is well-equipped with fully automatic machines for fusing, buttoning, embroidery and welt
pocket-making operations. The factory has a capacity to manufacture 5,000 pieces per day. The
plant was commissioned in 2004 and achieved a capacity utilization of 80%. It has 450 machines
and is operated by 500 workers. Further, VRPL are exploring the possibilities for establishment
of another manufacturing facility, for the purposes of which they have acquired certain portions
of land admeasuring 7.24 acres in Dehradun, Uttaranchal.
In addition to in-house manufacturing, they have outsourced some parts of the manufacturing to
“job workers” who work in their factory premises. VRPL undertake quality control measures by
way of random sampling to ensure the pre-determined quality standards are met. To verify that
the quantity of supplies is as per the order, they undertake count-check for every receipt of the
goods.
VRPL’s manufacturing team works closely with their design team to understand trends, develop
products, value engineer and finally create season wise collection that cater to regional tastes.

Purchasing
Purchasing or vendor management assumes critical importance in retail business where one has
to deal with multiple products. VRPL have in place a vendor management system, under which
they identify vendors all over the country and overseas and seek to develop alliances and
arrangements with them. They regularly interact with the vendors and share information such
that the vendors remain familiar with their goals and targets. It has been their strategy to procure
goods from small and medium sized vendors and manufacturers, which they believe has led to
reduction in the cost of goods they sell and increase in their profitability.
Upon ascertaining the procurements needs based on each SKU, VRPL explore the various
options for sourcing the products. They continuously strive to procure goods from the place of
origin to reduce the costs and control the quality. For identifying the vendors, VRPL assess the
various possible options on factors such as capacity, credibility in the market, quality awareness
and experience.
After identifying the vendors for the goods, VRPL place purchase orders based on their SKU-
wise plan, estimated lead time of each vendor and quantity to be procured from each vendor.

29
VRPL follow a policy of ‘payment on delivery’ to negotiate better prices with the vendors and in
certain cases they also release payments in advance. To ensure quality of supplies, VRPL check
quality by way of random sampling at the time of receipt of the goods. To verify that the quantity
of supplies is as ordered, they undertake count-check for every receipt of the goods. For FMCG
products, VRPL procure from large as well as small and medium size
manufacturers. For procurement from the large manufacturers or their distributors,
they endeavor to enter into formal arrangements for supply of products to all

VRPL stores, such that they are able to derive fixed margins from sales of such products,
irrespective of the locations. Under these agreements, they benefit from special discretionary
discounts and offers directly from the manufacturers or their distributors.

30
VISHAL Apparels Brand

Vishal Mega Mart is one of India’s fastest growing retail chains.. The
chain currently has 172 company stores in 24 states / 110 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, our name has been synonymous with quality, value and fashion integrity.
We 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 us to offer the
lowest possible and most reasonable prices.

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

Popular Brands 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
Mens Trousers &
Chlorine : Mens Shirts Massa Bay :
Bermudas
Mens Shirts, T-Shirts,
Fume :
UnderGarments.

Apparel Manufacture

The basic raw materials required for the manufacturing process of apparels includes fabrics and
accessories. VRPL merchandising teams source fabrics from local manufacturers in India
depending upon their production plan. VRPL also source fabrics from the place of origin. VRPL
source various other components and accessories from vendors in various parts of the country
and also import them from China.

31
Inventory Management, Distribution Network and Logistics
VRPL’s distribution network and logistics encompasses all activities to ensure that goods are
dispatched in right quantities and at right time to reach stores with sufficient time in hand to
promptly cater to customer demands and optimization of inventory position.
They have built a system to monitor the inventory position on a real-time basis at each store,
under which a stock requisition or delivery order is generated when pre-determined stock or re-
order levels are reached. The re-order levels for stores are

determined based on factors such as display levels, lead time for replenishment and average daily
sales. VRPL review these re-order levels on continuous basis to factor in variances in demand
based on seasons, trends and promotional schemes.
VRPL have seven distribution centers over approximately 385,033 square feet. These
distribution centers are located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Mahipalpur
(New Delhi). VRPL have clearly demarcated the stores which will be serviced by each
distribution centre. The reorder levels for distribution centers are ascertained on the basis of
factors like average daily sales of all the stores services, lead time for replenishment and buffer
stock, which caters to both the existing and proposed stores to be fed. As for the stores, they
regularly review these re-order levels.
VRPL’s distribution centers and stores are connected through company-wide virtual network
connection through broadband which helps to efficiently manage their network of stores and
distribution centers throughout the country.
They primarily utilise their own vehicles to transport the inventory to their stores from the
distribution centers. In addition, VRPL use the services of logistic solution providers including
low cost transport service providers in order to deliver products on time to VRPL stores and
optimize transportation costs. Distribution centers operations have been streamlined through the
standardisation of racking system, layouts and implementation of automatic replenishment
system.
Under arrangements with some of their merchandise manufacturers, they receive payment on
account of display of their products.

32
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

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 & Sports Winter Wear
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

33
INFANTS
Garments Accessories
Hot Pant Bed Sheet
Frock Under Garments
Baba Suit Socks
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 Formal Kurta- 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

HOUSEHOLD
Dinner Set Jug Cake Server
Home Aids Pressure Cooker Non Stick
Floor Wiper Cooker Handi
Sanitary Brush Pressure Pan Dosa Tawa
General Plastic Goods Electrical App. Bone China
Coffee Mug Chopper Soup Set
Bucket Microwave Oven Dessert Set
Glass Ware Thermo Ware Porcelain
Cup Tiffin Cup & Saucer

34
L$emon Set Container
LIFESTYLE
Time Zone Opticals Gifts & Novelties
Ladies Wrist Watch Ladies Sun Glass Flower Vase
Mens Wrist Watch Mens Sun Glass Key Chain
Mens Accessories Electric & ElectronicsPerfume/Deo
Items
Belts Battery(ABT) Spray
Wallets Calculator(EEC) Deo

TOYS & GAMES

Soft Toys Dolls Cycles & Scooters


Musical Toys Barbie Doll Cycles
Non-Musical Other Dolls Scooters
Board Games Infant Toys Video Games
Wooden Blocks Teether T.V. Video Game
Puzzles Swing Hand Video Game

FOOD MART
FOOD & BEVERAGES
Snacks
Drinks

M A R K E T I N G A N A LY S I S S U M M A RY

Marketing help to define the business for the customer's interests, not your own. It is the process
of learning what customers want or need and determining how to satisfy those wants or needs. It
is also used to confirm whether the customer reacted to a marketing program as expected. The

35
benefits of market research include:
 Learning who your customers are and what they want.
 Learning how to reach your customers and how frequently you should try to
communicate with them.
 Learning which advertising appeals are most effective and which ones get no response.
 Learning the relative success of different marketing strategies, thus improving return on
investment.
 Learning how not to repeat your mistakes.
Vishal Mega Mart has been the pioneer of retail revolution. Its first fight was against local
‘Kirana’ stores. The task was to change the mindset of consumer to bring about changes in their
shopping patterns. It wanted people to do bulk shopping for their monthly ration instead of going
to the shop each week.

MARKETING STRATEGY OF VISHAL MEGA MART

Product
Vishal Mega Mart offers a wide range of products which starts from apparels to food items,
footwear to home furnishing, crockery to sport items, child care products to toys, watches, drinks
etc. There are many in house brands promoted by Vishal Mega Mart. In pursuance of their
36
business plan to diversify their portfolio of offerings, FMCG products play a key role. FMCG
products are usually meant to fulfill the daily needs of consumers and therefore, VRPL believe
retailing of FMCG products will bring customers to their stores on a frequent basis and this may
in-turn lead to consumption of their apparels. VRPL have a number of private labels for apparels
such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier Women and Roseau.
. Vishal Mega-mart sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000
microwave-ovens. In all, the fashion,
electronics and travel segments made up about 70% of sales. Last year, these categories made up
only about 60%.

Price
Vishal Mega Mart promises its consumers the lowest available price. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart
also caters on Special Event Pricing (Close to Diwali, Christmas, New Year etc.). Selling combo-
packs and offering discount to customers. The combo-packs add value to customer. Through
Bundling, they also reduced the price of the products. In addition to VRPL’s strategy to continue
37
procurement of goods from small and medium size vendors and manufacturers which leads to
cost efficiencies, VRPL intend to procure FMCG and apparels from
low-cost production centers located outside India. Towards this objective, VRPL’s propose to
increase their procurement of finished and semi-finished goods from China and thereby realize
economies of scale and pass on the benefits so accrued to their customers. The efforts of VRPL’s
retail business are targeted towards families having total income which can be classified under
the “lower middle” and “middle” income groups. VRPL follow uniform pricing policy across
their stores in respect of private labels and non-branded products sold by them. This enhances
brand loyalty, encourages customer confidence and results in operational convenience. In
relation to the other products, the prices may vary between stores on account of state-specific
taxation and vendor policies.

Place
Vishal Mega-mart stores are located in 129 cities with 172 outlets. VMM has presence in almost
all the major Indian cities. They are aggressive on their expansion plans.
Vishal Retail targets cities with urban population of 1 million people or above or can be
classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens retail outlets on the
outskirts, rather than the prime area. Its target market includes people with middle income and
lower income levels. This enables the company to overcome competition to some extent due to
its first mover advantage (as competitors have relatively less space in tier-2 and tier-3 cities) and
helps to lower rental cost. As at 3Q FY08, 78% of the company’s 82 stores are in Tier-2 and
Tier-3 cities.The company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1 cities at
80:20.

Promotion
Advertising has played a crucial role in building of the brand. Vishal Mega Mart advertisements
are mainly seen in print media i.e. newspapers, Television with Tina Parekh as there in
advertisement, and sometime road-side bill-boards.
VRPL’s category management system is used to plan promotional schemes. They launch
promotional schemes weekly. Apart from general sales promotion, the category manager

38
formulates promotional plans for ‘slow movers’. In addition, to promote sales, they focus on
layout of the stores and positioning, presentation and display of merchandise, in order to appeal
to the customer. In addition, VRPL have introduced, in association with SBI Cards & Payment
Services Private Limited, a co-branded credit card. VRPL’s propose to continuously undertake
such initiatives to increase the satisfaction of their customers.
Vishal Mega-mart started many new and innovative cross-sell and up-sell strategies in Indian
retail market. The various promotion techniques used at VMM include:
-5 Din Ki Maha Bachat
-2 din Ki Maha Loot
-Dhan-teras Dhamaal
-Great Savings
-Vishal Mega Mart Gift Voucher Rs. 1000.
-25% Off On All Items – Every Month
-Discount Offers At Various Festive occasions
-Grand Winter Sale – 50% & 60% discount for 2 days
-Paise Bachao Aandolan – 9 Din Ki Maha Loot
-Vishal Reward Plus: Consumers can make purchases at any store and accumulate points at a
central level. These points are redeemable at any of our stores.
-Cross category promotions are now catching up where discounts are being offered on grocery
purchases, redeemable against purchase of apparel and household products

People

Vishal Retail has been established by Mr. Ram Chandra Agarwal, a first generation entrepreneur.
He has been
instrumental in expanding the business from an apparel store in Kolkata to 82 value retail stores
with pan- India
presence. The management team has a pool of talented professionals with right mix of working
experience.
Professionals are one of the key assets for any organization. The salient features of staff of VMM
are: -
-Monthly, weekly & daily sales targets are communicated to the staff & efforts are made to
consistently achieve the set
targets.
-Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff is
empowered to take
innovative steps.
-Multiple counters for payment, staff at store to keep baggage and security guards at every gate,
makes for a
customer-friendly atmosphere.
-VMM motivates & retains store staff & maintains a positive work environment.

39
-Well-dressed staff improves the overall appearance of store.
-Strong Recruitment Cell, 2,509 employees joined in 2009.
-8500 employee Strength.
Due to intense competition, the requirement of skilled manpower is increasing. At the same time,
the availability of
skilled manpower is declining and attrition rates are increasing throughout the industry. We
foresee an increase in the
employee cost going forward (Figure 7) due to company’s efforts to attract and retain the
employees. Although
employee cost is increasing; still the company’s motive is to retain the valuable employees in the
company

Process
VMM adopted the business model as shown in (Figure-9) to run their activities smoothly. This
process includes four steps as follows:
Manufacturing Capacity; Strong Logistics; Products; Retailing
The goods' dispatch and purchasing area has certain salient features which include: -
-Multiple counters with trolleys to carry the items purchased.
-Proper display / posters of the place like (Kids Wear, Grocery, and Stationary etc.).
-Home delivery counters to be started soon.
-Three Layer Security Checks.
-No. of Parallel Billing Counter
-Retail Exchange Software Solution – PRIL
-Integrated With SAP & ERP

Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system
and available facilities.
-Infrastructure – Stand Alone Commercial Building
-Clean, Air-conditioned outlet
-Equipment – computer, BCR, Desk etc State of Art

Management Organization Structure

40
Year---- Milestone

41
2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm Vishal
Garments & the Vishal Garments opened first store outside Kolkata.
2002-- Opened first Store in Delhi
2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit in Gurgaon.
2004--Started thier largest store of at Mathura Road, New Delhi having an area of 80,000 square
feet nominated for the Images Retail Awards’ 2004
2006--Thier Company was converted into a public limited company 103 implementation of
production and retail module of SAP Broadband connectivity with each and every location
Increased thier presence to an aggregate of 17 States.
2007-- Increase in number of stores to 50 spread across in 18 States

42
Data Collection
And
Analysis

SWOT ANALYSIS

43
Strength:

44
− High Brand Equity in evolving retails markets
− State-of-art infrastructure of Big Bazaar outlets
− POP to increase the purchase
− One stop shop for variety of products, increasing customer time and available choices

Weakness:

− Unable to meet store opening target so far


− Falling revenue per square feet

Opportunity:

− Organized retail is just 4.15%of total pie of Indian retail market


− Evolving Customer preferences in recent years.

Threat:

− Competitors, global big players planning to foray into market


− Government policies are not well-defined in India
− Unorganized retail market of India

1. How do you know about Vishal MegaMart?

45
T.V. Hoardings
Newspaper Friends
Net

T.V Hoardings Newspaper Friends Net


70 40 50 20 20

10% 10%
T,V
35%
Hordings
25%
20% Newspaper
Friends
Net

2. How often you visit to Vishal MegaMart?


Within a week Within 2 week
Within a month Above 1 month
46
Within a week Within 2 week Within a month Above 1 month
70 40 35 55

27. Within a week


17.5% 35% Within 2 week
20% Within a month
Above 1 month

3. What excites you most for shopping at Vishal Mega Mart?


Discount Buy one get one free
Cash back Free gift

Discount Buy one get one free Cash back Free gift
76 62 38 24
47
Discount
12%
Buy one get one
free
19% 38% Cashback

Free gift
31%

4. What do you usually buy from Vishal Mega Mart?


FMCG products Child care & Toys
Apparels Electronic goods
All products

48
FMCG Child care & Appareals Electronic All product
products toys goods
45 20 60 20 55

35
30
25
20
IN %
15
10
5
0
FMCG Child care Appareals Electronic All product
products & toys goods

5. Are you satisfied with the quality of the products offered by Vishal Mega Mart?
Yes No
It’s ok

49
Yes No It’s ok
114 48 38

60

50

40

30
Data In %
20

10

0
Yes No Itsok

6. How is your shopping experience at Vishal Mega Mart?


Very Satisfactory Satisfactory
Average Unsatisfactory
Poor

50
Very Satisfactory Average Unsatisfactory Poor
satisfactory
40 50 72 22 16

60
50
40
30 Datain%
20
10
0
Very Satisfactory Average Unsatisfactory Poor
Satisfactory

7. Do you want to changes in Vishal Mega-Mart?

Yes No

51
Yes No
96 104

48% Yes
52%
NO

9. What changes you want?

Better services Better packaging


Better products Home delivery

52
Better service Better packaging Better products Home delivery
45 25 60 70

35
30
25
20
15 Datain%
10
5
0
Better Better Better Home
service packaging product delivery

10. According to you which promotional activity is effective?


Road show Campaign
Sampling Premiums
Any other

53
Road show Campaign Sampling Premiums Any other
40 76 30 24 30

40
35
30
25
20
15 Data in %

10
5
0
Road Campaign Sampling PremiumsAny other
show

11. What you think about sales promotion strategy of company?

Best Good

54
Average Not good

Best Good Average Not good


46 56 78 20

40
35
30
25
20
Data in %
15
10
5
0
Best Good Average Not good

12. Does sales promotion strategies beneficial for sales?

Yes No

55
Yes No
146 54

27%

Yes
No
73%

13. At what percent sales promotion strategy is useful for increasing sales

56
Up to 10% 20-30%

30-40% More than 40%

Up to 10% 20-30% 30-40% More than 40%

75 58 40 27

57
Findings

Findings

1. The choice of a store location has a profound effect on the entire business life of a retail

58
operation. A bad choice may all but guarantee failure, a good choice, and success.
2. Choosing a retail location is, at best, a risky undertaking. Considering the consequences
of choosing a location that proves to be unsuitable, it pays to get as much assistance as
possible. According to a survey more than 60% of the customer prefers to shop in a retail
store which is easily accessible to them.
3. Advertising plays a very important role in achieving growth for any retail company. This
is evident from the fact that Advertising by Retail Industry registered a rise of 12 percent
during January - May 2007 over January - May 2006.
4. The right location, trained manpower, software assistance, product with a distinct
differentiation, a strong value proposition, efficient supply chain management - these are
the factors that influence the success of a retail outlet. With competition in this segment
increasing, differentiation and a strong value proposition assume significance. Retail
chains are realizing that they cannot be another ‘me-too’ store. The differentiation today
among the 5-6 retail chains has come through private labels, which in some cases account
for as much as 70 per cent of the total merchandise in the outlet.
5. Variety offered by any retail store is of very much important to attract all type of
customers in the stores. A large variety of products caters to each segment of customers.
6. Shopping experience within a store also has a great impact on selecting a product from a
particular retail store. Overall ambience includes infrastructure facilities provided by the
store such as air conditioners, lighting etc.
7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to any
company's success: Company’s image, the product and services company sells and
consumer behavior. The Importance of Pricing their Products' will give them an insight
into developing appropriate costing methods and the impact of getting it wrong in today's
competitive creative market. This topic should be of interest to anyone who is unsure if
they are getting it right. Remember the difference between over or under-pricing their
work can mean a very short future for any business. Approximately 60% customers think
that Price is the most important factor while they go for shopping in a retail stores
8. Quality in everyday life and business, engineering and manufacturing has a pragmatic
interpretation as the non-inferiority, superiority or usefulness of something. This is the
most common interpretation of the term. The quality of a product or service refers to the

59
perception of the degree to which the product or service meets the customer's
expectations. Quality has no specific meaning unless related to a specific function and/or
object. Quality is a perceptual, conditional and somewhat subjective attribute. And in
addition to that, more than 90% of customers place quality as the most important factor
than anything else in the list to shop in a retail store.
9. More than 70% of customers place variety as an important factor to shop in a particular
retail store.
10. Brands name bears an important role while shopping of any type of goods. So building a
brand for a retail store is important as 80% of customer still prefer to buy branded clothes
in the retail store instead of local or unbranded clothes.

60
Conclusion
&
Suggestions

Conclusion

Given the developments and prospects, the Indian retail sector is in its nascent stage of evolution.
While there are obstacles, there are clear opportunities in modern retailing in India. There are

61
many lessons that India can take from other countries, which have moved along the path of retail
evolution. The retail sector has proved to be of immense significant from macro-economic point
of view. The sector’s capability to give strong growth momentum by creating multiplier effects
on other sectors is not in dispute. It is now necessary to cautiously expand and develop the
sector, as the government, at present, has done by permitting partial FDI in the sector. Given the
scope, the retail sector is certainly expected to fetch the long-term economic benefits for the
country.

The convenience and personalized service offered by the unorganized sector holds its future in
good stead for the future. Organized retail of late has seen a tremendous boom and is attracting
more people to the malls.

What is to be seen is how organized retail can duplicate the same level of personalized customer
service levels offered by the unorganized sector to have a higher conversion ratio.
The target audience for both the organized and unorganized retail formats remains relatively the
same. When shopping in malls, people value the experience related to the trip the most and return
most frequently for the same. Besides, while enjoying the experience they seem to buy high
ticket and items of conspicuous consumption most frequently.

Gaining and maintaining consumer preference is a battle that is never really won.
Continued and consistent branding initiatives that reinforce the consumer’s purchase decision
will, over time, land the product in consumer preference sets. Attaining and sustaining preference
is an important step on the road to gaining brand loyalty

Suggestions
1. Include more trained sales person to help customers in the store while shopping.
2. Improve quality of the products especially clothes.
3. Play good songs or soothing music in the store rather than cheap filmy songs.
62
4. Customer care service can be introduced
5. More branded products can be displayed in the store as people still prefer branded clothes
than offered by local vendors.
6. Constant reminder of discounts through pamphlets, speakers inside the store for inducing
consumers for impulse buying.
7. Add more cosmetic products as its having a huge market of consumers attached to it.
8. Display of product should be improved so that the product is easily visible to the
consumers.
9. Proper advertisement in press and outdoor to make Vishal Mega Mart should be visible in
the eyes of consumers.
10. Should have parking spaces in front of every store.
11. Hire more salesgirls as in ladies section its very difficult for both the consumers and
salesman to interact with each other.
12. Regular training to sales person to improve there overall performance.
13. Customization of clothing should be given an important consideration.
14. Proper packaging and provide contrast labelling in displays of product.
15. Should apply electronic supply chain management for better inventory management.
16. Proper power back up as air conditioners are not working to their full capacity at many
stores.
17. Proper placements of Gondola in the stores as space between them are very less.
18. Proper display in the gondola and top most rack of the gondola should be used for storing
of inventory rather than display of product.
19. Should provide more festival schemes and at proper time.
20. Should use psychological pricing-more discounts by increasing the price
21. Proper display of cutlery items
22. Clothes should be in sync with fashion.

Bibliography

Books referred:

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 Retailing Management
Pradhan, Swapna

 Retail Management – A Strategic Approach


Berman, Barry & Evans, Joel R.

 The Art Of Retailing

Websites:

 www.google.com

 www.wikipedia.com

 www.vishalmegamart.com

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