Vishal Mega Mart

RESEARCH
PROJECT REPORT
ON

CUSTOMER SATISFACTION
AT

IN PARTIAL FULLFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted By:

Submitted To:

Name: VIPIN KUMAR Name: prof. K.TARA SHANKAR

VISB/PGDM/09/00031 Designation: HOD (PGDM)

1| Page
 Vishal Mega Mart

VIDYA INTERNATIONAL SCHOOL OF BUSINESS

MEERUT

DELARATION

I do hereby declare that the project entitled

“CUSTOMER SATISFACTION” a bonafide record of

the work done by me at“ VISHAL MEGHA

MART”towards the partial fulfillment of requirement

for POST GRADUATE DIPLOMA IN MANAGEMENT

under the supervision and guidance of Dr.GAURAV

2| Page
 Vishal Mega Mart

JOSHI(Faculty Guide) and this project report have

not been submitted anywhere else previously for

award of any Degree/Diploma /Fellowship.

Vipin kumar

EXECUTIVE SUMMARY

The project is about business development strategy of

Vishal Retail in near future as a part of expansion plan

being adopted by the company. This is about all the

operations performed in the Vishal Mega Mart. Retail

industry is booming all around the globe at a very fast

pace. Vishal Retail is a known and strong competitor in

the retail industry since

23 years. When we talk about Indian market, the demands

of every thing which you can find in every retail store are

increasing every year. Indians are famous for their

traditions and festivals and exchanging gifts with friends

2| Page
 Vishal Mega Mart

and relatives is a part of it.

This project report is the study of various activities and

strategies of Vishal Mega Mart and relates it to the

theoretical aspects within the scope of our subjects. It also

helps us in understanding the functioning that took place

with in an organization from different perspectives. A

questionnaire has been drafted, to try and understand the

psyche of the VISHAL MEGA MART customers to know their

needs and expectations which can be further utilized by

the company to gain a competitive edge over their

competitors. It also helps us in understanding the different

technologies being used by VRPL.

ACKNOWLEDGEMENT

Words often fail to express one’s inner feelings of

gratitude and indebtedness to one’s benefactors, but then

it is only the readily available medium through which the

undersigned can express his sincere thanks to all those

who are associated with the work in one way or the

other. Nothing concrete can be achieved without an

optimal combination of inspiration and perspiration. No

2| Page
 Vishal Mega Mart

work can be accomplished without taking the guidance of

the experts. It is only the critiques from ingenious

intellectuals that helped transform a product into a quality

product.

Project work is never the work of an individual. It is more

of a combination of use, suggestions and contributions

and work involving many individuals. This project also

bears the impact of many people. First and foremost I

would like to gratefully acknowledge and express my

sincere gratitude towards Dr.Gaurav Joshi , my faculty

guide who always helped and provided guidance during

the course of my project. I would like to extend my

earnest thanks for her assistance in the course of my

project. The learning during the project was immense &

invaluable.

Vipin kumar

TABEL OF CONTENTS

S. NO. CONTENTS PAGE NO.

1| Page
 Vishal Mega Mart

I Cover page / Title page 1

II Declaration 2
III Executive summary 3
IV Acknowledgement 4
V About retail sector 7-12
1 Company profile 13-19
2 Marketing Management 20-25
3 Operations Management 26-35
4 Management Technology 36-39
5 MIS 40-42
6 HRM 43-47
7 e-commerce 48
8 Organisation Structure 49
9 Swot Analysis 55-56
10 Project title 57
II Objective 58
I2 Limitations 59
I3 Research Methodology 60
I4 Data Analysis 61-71
I5 Conclusion 7
2
I6 Recommendation 7
3

1| Page
 Vishal Mega Mart

I7 Bibliography 7
4
I8 Annexures(Questionnaire) 7
5

2| Page
 Vishal Mega Mart

TABEL OF FIGURES

S. NO. FIGURES TITLE & NO. PAGE NO.

1 (1.1)SEX RATIO 62
2 ( 2.1)AGE GROUP 63
3 (3.1)EXITES FOR 64
SHOPPING

4 (4.1)FREQUENCY 65
OF VISIT

5 (5.1)TYPE OF VISIT 66
6 (6.1)AMOUNT SPENDED BY 67
CUSTOMER

7 (7.1)ITEM USUALLU PURCHASED 68

8 (8.1)SATISFACTION WITH PRODUCT 69
QUALITY

9 (9.1)PROBLEMS FACED BY 70
CUSTOMERS

1
(10.1)OVERALL SHOPPING 71
EXPERIENCE

3| Page
 Vishal Mega Mart

ABOUT RETAIL SECTOR

The Retail Sector is the largest sector in India after agriculture, accounting for
over 10 per cent of the country’s GDP and around 8 per cent of the employment.
India has the most unorganized retail market in the world. Most retailers of the
unorganized retail market have their shop in the front and house at the back. The
Retail Industry in India is today amongst the fastest growing industries with
several players entering the market. Currently, the organized retail sector accounts
for only 2 per cent indicating a huge potential market opportunity. India is being
seen as most attractive market by retail investors from all over the world. Retail is
clearly the sector that is poised to show the highest growth in the next five
years. The sector is set for a revolution, as both the present players and new
entrants are gearing up to explore the market. The present size of the organized
retailing sector is approximately 3% and is expected to grow to 25-30% by the
year 2010. There are about 300 new malls, 1500 supermarkets and 325
departmental stores currently under construction. Many players are coming up
with huge investments, due to which the present 12 million mom-and-pop shops
and kirana stores fear losing their business. Most predictions say that the sector
might reach to US$ 400-600 billion by the year 2010.

. The rising demands of branded products and increase in purchasing power have
lured these companies to enter the market. Modern retail development in India is
4| Page
 Vishal Mega Mart

focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National
Capital Region, Chennai, Banglore, Hyderabad, Kolkata. The leading Indian
retailers are Bata India Ltd, Big Bazaar, Crossword, Vishal Mega Mart., Food
Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment
Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries etc.

5| Page
 Vishal Mega Mart

MODERN RETAIL STRUCTURE

It includes :-

Malls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre

Stage (Noida) etc

Discount Stores like Brand Factory, Loot, M&B Factory,

Subhiksha, Big Apple, and Reliance Fresh.

Department Stores like Shoppers Stop, Big Shop, and

Pantaloons. Hypermarkets/ Supermarkets like Big Bazaar,

Vishal Mega Mart. Convenience Stores like Spencer’s Daily,

Tru Mart, Choupal, More.

Multi Brand Outlets like Globus.

CURRENT SCENARIO

A glimpse of the international retail-

• 47 global fortune companies & 25 of Asia's top 200

companies are retailers

• Dominated by developed countries US, EU & Japan

constitute 80% of world retail sales.

6| Page
 Vishal Mega Mart

• Biggest player in India is Pantaloon Retail India Limited.

7| Page
 Vishal Mega Mart

PERCENTAGE OF ORGANIZED RETAIL

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India - 3%

Road Ahead; Plans of Large Retailers

8| Page
 Vishal Mega Mart

• Reliance Retail: Investing Rs.30, 000 crore ($6.67

billion) in setting up multiple retail formats with
expected sales of Rs.90, 000 crore-plus ($20 billion)
by 2009-10.

• Pantaloon Retail: Plans to occupy 10 mn sq.ft retail

space and achieve Rs.12, 000 crore-plus ($2.5 bn)
sales by 2010.

• RPG: Planning IPO will have 450-plus Music World,

50-plus Spencer's Hyper covering 4 mn sq.ft by
2010.

• LIFESTYLE: Investing Rs.400 crore-plus ($90

mn) in next five years on Max Hypermarkets &
value retail stores, home and lifestyle centers.

• Raheja's: It Operates Shoppers Stop, Crossword,

Inorbit Mall, and 'Home Stop' formats. Will operate
55 Hypercity hypermarkets with US$100 million sales
across India by 2015.

• Piramyd Retail: Aiming to occupy 1.75-million sq.ft

retail space through 150 stores in next five years.

• TATA (Trent Ltd.): Trent to open 27 more stores

across its retail formats adding 1 mn sq.ft of space in
the next 12 DLF malls. Titan industries to add 50-plus
Titan and Tanishq stores in 2010.
9| Page
 Vishal Mega Mart

GROWTH OF RETAIL SECTOR

The following are the reasons for growth of retail sector

in India- Increase in disposable income of consumers,
Increase in consuming desire, Low share of organized
retailing. Purchasing power of Indian urban consumer is
growing and branded merchandise in categories like
Apparels, Accessories, Food, and even Jewellery, are
slowly becoming lifestyle products. Retailers are taking
benefit of this growth and accordingly are aiming to
expand. Indian retail is expanding at a fast pace. India's
retail industry, which is currently valued at nearly $350
billion, is expected to double in size by 2015. The Indian
Retail Industry is gradually moving ahead towards
becoming the next boom industry.

Modern Large-Format retail, efficiently connects the

producers and the consumers and is helpful to both in
the long run. In India there is a huge wastage of fresh
fruits and vegetables.In this scenario, the Large-
Format Retail provides all important infrastructures to
carry the farm produce to the consumers with lesser
wastage. In this way the farmers get better returns and
the consumer better quality and price.
10 | P a g e
 Vishal Mega Mart

KEY TRENDS

The existing players like Big Bazaar, Shoppers' Stop, Piramyd,

and Vishal Mega Mart are expanding to smaller towns and
cities. Many other business houses are planning to enter the
retail sector either on their own or through partnerships. New
entrants like Bharti pvt ltd and Wal-Mart are going to enter the
market soon. Even rural areas will provide a huge opportunity
to be explored.

11 | P a g e
 Vishal Mega Mart

12 | P a g e
 Vishal Mega Mart
COMPANY PROFILE

“VISHAL RETAIL PVT. LTD”

HISTORY

What started as a humble one store enterprise in 1986

in Kolkata (erstwhile, Calcutta) is today a conglomerate
encompassing around 183 showrooms in 110 cities / 24
states. India’s first hyper-market has also been opened
for the Indian consumer by Vishal. Situated in the
national capital Delhi this store boasts of the singe
largest collection of goods and commodities sold under
one roof in India.

VRPL was incorporated on July 23, 2001 under the

Companies Act, 1956 as Vishal Retail Private Limited.
VRPL was converted to a public limited company on
February 20, 2006. At the time of incorporation, the
registered office of VRPL was situated at 4, R. N.
Mukherjee Road, Kolkata 700 001. Subsequently
VRPL’s registered office was shifted to 54/4C, Strand
Road, Kolkata 700 006 on August 1, 2001 and on
February 14 2004, VRPL’s registered office was shifted
to Mouza Kuch Pukur, P.S. Bhangore, 24
Paragnas (South), West Bengal. On December 29,
2005, VRPL’s registered office was shifted to RZ-A-95 &
13 | P a g e
 Vishal Mega Mart

96, Road No. 4, Street No. 9, Mahipalpur Extension, New

Delhi 110 037, which is the present registered office of
the Company. The fresh certificate of incorporation
consequent on change of name was granted to our
Company on February 20, 2006 by the Registrar of
Companies, West Bengal.

With a business purchase agreement dated November

23, 2001 executed between VRPL and Mr. Ram Chandra
Agarwal (carrying on proprietorship

business in the name of M/s The Vishal Garments) and

Mrs. Uma Agarwal (carrying on proprietorship business
in the name of M/s Vishal Garments), VRPL acquired the
business of “M/s The Vishal Garments” and “M/s Vishal
Garments”, and the said businesses were transferred
to VRPL as a going concern with effect from December
15, 2001.

With a business purchase agreement executed

between VRPL and M/s Vishal Fashions

Private Limited, they acquired the business of

manufacturing of readymade garments as a going concern
with effect from March 31, 2003. VRPL went into backward
integration by acquiring a manufacturing unit for readymade garments.

14 | P a g e
 Vishal Mega Mart

The Founders

Mr. Ramchandra Aggarwal Mrs. Uma Aggarwal Mr. Surendra Aggarwal

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory

has more
than 700 imported machines that have a capacity to manufacturer
150000 pieces a month. The factory occupies 80000 sq ft of
covered space. The Vishal group indirectly gives employment to
more than a 1000 people. These people work in ancillaries that
supply finished goods to the company.
Our 10 warehouses cater to 46 showrooms in 34 cities. These
have a covered space of 11,00,000 sq ft. By the end of March
2007 we will expand our outlets to 61 companies owned outlets
and many franchise operations.
15 | P a g e
 Vishal Mega Mart

16 | P a g e
 Vishal Mega Mart

DETAILS OF DIRECTORS

Mr. Ram Chandra Agarwal, 43 years, is VRPL’s Chairman and 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. He
started the business under the name of “Vishal Garment” with a small store
at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the
development of the value retailing industry in India and is well known for
his business acumen.

Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. 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, 46 years, is an executive Director of

VRPL. 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, 45 years, is an independent Director of VRPL. 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, 44 years, is an independent Director of VRPL. 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.

17 | P a g e
 Vishal Mega Mart

VRPL PROMOTERS AND GROUP COMPANIES

The following individuals are the Promoters of the Company:

a). Mr. Ram Chandra Agarwal;

b). Mrs. Uma Agarwal; and

c). Mr. Surendra Kumar Agarwal.

The following companies are the Promoters of the Company:

a). Unicon Marketing Private Limited;

b). Ricon Commodities Private Limited; and

c). Vishal Water World Private Limited.

• The company has during the year 2008, established its five new

companies by the name of VRL Foods Ltd., VRL Movers Ltd.,

VRL Consumer Goods Ltd., VRL Fashions Ltd. & VRL

Infrastructure Ltd., none of the companies have commenced

business operations during the year.

18 | P a g e
 Vishal Mega Mart

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 short time frame of 8 years.
In order to reduce costs and take advantage of economies of
scale VRPL have embarked on backward integration of their

|Page

1
 Vishal Mega Mart

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 achieved total sales of Rs. 1005.31 cr for fiscal 2008,

as opposed to a turnover of Rs.602.65 cr for fiscal 2007 and
Rs. 288.46 million for fiscal 2006. During the same period
VRPL’s profit after tax was Rs. 40.64 cr, Rs.25.07 cr
and Rs. 12.39 cr, respectively.

|Page
 Vishal Mega Mart

19

|Page
 Vishal Mega Mart

MARKETING MANAGEMENT

OBJECTIVE:-
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.
Vishal Mega Mart has been the pioneer of retail
revolution. Its first fight was against local ‘Kirana’
|Page

20
 Vishal Mega Mart

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.

|Page
 Vishal Mega Mart

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
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.

21
|Page
 Vishal Mega Mart

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 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.

2
2 |Page
 Vishal Mega Mart

Place:

Vishal Mega Mart stores are located in 110 cities with more than
180 outlets. Vishal Mega Mart has presence in almost all the major
Indian cities. They are aggressive on their expansion plans. VRPL
intend to increase their penetration in the country by setting up new
stores in cities where they already have presence, as also entering into
new areas in the country. In particular, they intend to focus on
expansion in Tier II and Tier III cities. VRPL target locations
with good infrastructural facilities such as easy accessibility,
provision for water, electricity, parking, security and other basic
amenities.

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 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.
2
3 VRPL’s propose to continuously undertake such initiatives to increase
|Page
 Vishal Mega Mart

the satisfaction of their customers. Some of the features of the co-

branded card include Rs 250 discount voucher on signing up for the
card and a process by which the cardholder earns five reward points
on every Rs 100 spent. A cardholder accumulates points on the basis of
purchases made and the points accumulated can be redeemed for gifts
or purchases. In September 2005, VRPL entered into a long term
advertising agreement with Bennett, Coleman & Company Limited
(“BCCL”). Under the agreement, they are entitled to fixed discounts
for their advertisement in print publications of BCCL for a period of
five years from the date of the agreement.

Strong understanding of the ‘value retail’

segment
VRPL’s business plan involves implementation of the concept of the
‘value retailing’, targeting the middle and lower middle income groups,
which constitute majority of the population in India. VRPL intend to
provide quality products at competitive prices. VRPL sell a vast
range of merchandise across apparels and accessories, FMCG products,
food products and consumer durables. VRPL’s emphasis has been to
maximize the value that the customers derive in spending on goods
bought in their stores. VRPL endeavor to continuously reduce their costs
through a variety of measures, such as, in-house production of apparels,
procurement of goods directly from the small and medium size vendors
and manufacturers, efficient logistics and distribution systems along
with customized product mix at their stores depending on the regional
customer behavior and preferences. Central to their value retail
2
4
strategy is to pass on the benefits of cost reduction measures to

|Page
 Vishal Mega Mart

their customers.

Strong and efficient logistics and distribution

network

VRPL’s distribution and logistics network comprises seven distribution

centers. Besides, VRPL have their own fleet of 31 trucks, which helps
VRPL to transport and deliver their products in a cost and time efficient
manner. VRPL believe that their distribution and logistics set up is well
networked and allows them to fulfill the store requisition within short
time period of generation and receipt of order, which has helped VRPL
to optimize in-store availability of merchandise and minimize
transportation costs. Their strong distribution and logistics network has
enabled them to dispense with the requirement of a dedicated storage
space at every store, which is an industry practice, and instead
undertake periodical replenishment of depleted stock. Due to adoption
of an efficient racking system, they are able to benefit from optimum
utilization of the space allocated for display in their stores. This
provides them assistance in maintaining a low working capital
requirement and less carrying cost.

2
5

|Page
 Vishal Mega Mart

OPERATIONS MANAGEME
NT

OBJECTIVE:-
➢ To study the inventory management, transportations system
and logistics of Vishal Mega Mart.
➢ To understand the process of plant location and layout of the
company.

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

|Page
2
 Vishal Mega Mart

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.

Insurace:
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.

2
Factories:
7
|Page
 Vishal Mega Mart

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.

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
|Page

2
 Vishal Mega Mart

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.

|Page
 Vishal Mega Mart

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:
2
9
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 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
|Page
 Vishal Mega Mart

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
3 is as per the order, they undertake count-check for every
0
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

|Page
 Vishal Mega Mart

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. VRPL follow a policy of ‘payment on
3
1 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

|Page

3
 Vishal Mega Mart

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.
Since most of the arrangements with the large
manufacturers or their distributors are for supplies across
the country, they facilitate VRPL to expeditiously launch
new stores, as VRPL do not have to identify local sources
for supplies of the FMCG products. Such arrangements
also help VRPL in standardizing the promotional schemes
across all VRPL stores.
For some of the FMCG products, such as staples and food
grains, they purchase in bulk and break them down into
smaller packages for sales. Further, based on their
assessment of regional tastes and preferences, VRPL
purchases some products locally from small and medium
size vendors.

Inventory Management,Distribution Network

and Logistics:

|Page
 Vishal Mega Mart

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.
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.
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

|Page
3
3
 Vishal Mega Mart

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

|Page

3
 Vishal Mega Mart

implementation of automatic replenishment system.

Under arrangements with some of their merchandise
manufacturers, they receive payment on account of
display of their products.

Franchise and Other Arrangements:

VRPL have franchise arrangements for three of their

stores at Agra, Gwalior and Lucknow. Under the
franchise agreements, the franchisee operates the
stores. The expenditure for establishing the stores and
holding the inventory is incurred by the franchisees
subject to an assurance from their Company that there
would be a minimum payment of commission towards
the estimated operational expenses incurred by the
franchisee. The sales registered in such stores are
accounted for in their books and, as a consideration,
VRPL pay a fixed commission on sales to the franchisees.

In addition, VRPL have entered into commission or joint

venture arrangements for one store each in
Bhubaneswar and Siliguri with the owners or lessees of
the immovable properties where such stores are
located. For the Siliguri store, VRPL operate the store
and are obligated to pay a commission of 2% of the net
|Page

3
 Vishal Mega Mart

sales per month from the store, subject to a minimum of

Rs. 224,000 per month, subject to certain escalation
provisions. Under the joint venture arrangement for
VRPL Bhubaneswar store, VRPL operate the store and
are obligated to pay commission of 2% on total monthly
turnover of the store and fixed commission of Rs.
113,300 per month subject to certain escalation
provisions.

|Page
 Vishal Mega Mart

MANAGEMENT& TECHNO
LOGY,

I N N O V A T I O N & C H
A N G E

OBJECTIVE:-
➢ To study the different software’s or
technology being used by the Vishal
Mega Mart.

Technology is important to cut costs, improve efficiency,

providing value to customers and increasing the
customer experience. IT solutions help in synchronizing
activities across various verticals such as procurement
of inventory. Securities from both external and internal
threats are also important when the scale of the
operations increases. Most of their critical functions
such as Supply Chain, Operations, Finance &
Accounts, and Customer Loyalty Program & Human
Resources are linked through a computer network. This
has enabled them to reduce their time to market
and respond to the changing customer requirements.
This has also helped them reduce their costs of
operations through both, reduction in wastages and
|Page
 Vishal Mega Mart

missed opportunities as well as a consequent reduction

of the overall costs of operations.
VRPL are focused on acquisition and
implementation of advanced information technology
systems, processes and business applications in order
3 to handle all store operations including inventory
6
management and billing. VRPL office processes are also
computerized which support procurement, supply
chain logistics, distribution centers management and
inventory control. All the locations are connected
through company- wide virtual network connection
which helps to efficiently manage their network of
outlets throughout the country.
VRPL believe that their business requires efficient
management and storage of data and information to
utilise for business analysis, research and forecast.
Based on VRPL’s existing information technology
systems, they are able to generate detailed daily reports
covering the various aspects of their business such as
division wise sales per store, inventory movement and
position at stores and distribution centers and
generation of purchase and delivery orders.

In August 2005, VRPL had entered into a software end-

user license agreement with Systems, Applications and

|Page

3
 Vishal Mega Mart

Products in Data Processing Private Limited (“SAP

India”) for grant of a non-exclusive and perpetual
license to VRPL to use the SAP software, documentation
and other information related thereto. SAP for Retail
provides an integrated technology platform for retailers
and a one point solution for supporting and managing
different business models such as owned stores,
franchise stores, shop n shop concepts. Strong business
decision and analytical capabilities have enabled
retailers of all sizes the power to make the right
decisions quickly and profitably.
Beginning with a computerized cash memo, to use
FoxPro for operations & accounting and, implementation
of a complete ERP from JDA (J. D. Armstrong Software
Group), they have gradually extended the Use of
technology in their various areas of operations. In order
to increase the speed and traceability to the supply
chain management Vishal Mega Mart introduces Bar
Code Technology. Bar code is tried and tested
technology— the “no-brainer” choice for identifying
items in the supply chain. Yes, it does have short
comings in that applying it means that everything has
to be in line of sight because light is used to capture
and read the bar code. But as goods are handled either
by humans or machines, the goods are always visible,

|Page
 Vishal Mega Mart

as are their labels—labeling standards mean that it is

virtually impossible to not see the label and its bar code.
This means that some form of scanner is used—the
range of available technology is broad—either by an
operator wielding a hand-held device or by a machine-
mounted or fixed-position scanner.

Beyond the bar code is RFID (radio frequency

identification) where a chip within a tag carries
information and is read using radio waves. Vishal Mega
Mart uses the latest technology to improve its
performance Quality as well as Quantity Wise. Bar
code scanners are very sophisticated devices these
days. Functionality and reliability is extremely important.
3
8
Vishal Mega Mart also uses CCTV to monitor its stores.
Various CCTV’s are being installed in a store, with a
room where the entire functioning taking place in a store
can be monitored by a human operator.
VRPL have partly implemented their information
technology set up and are currently in the midst of
completing the process of upgrading their information
technology set up and have entered into an
agreement dated September 6, 2005 with Tata
Consultancy Services Limited for providing
information technology services including

|Page

3
 Vishal Mega Mart

implementation of more advanced ERP applications

such as SAP, rendering services inter alia for
management information system on reports related to
stock management, receipt processing, picking and
packing, project systems, merchandise assortment
management, pricing and promotion, sales, controlling
and financial accounting.

|Page
 Vishal Mega Mart

Management Information Systems

(MIS)

They have strong MIS capabilities that make use of their

technological investments to generate valuable insight
for them and help them in improving their operations, as
well as in enhancing their speed of response to what the
customers want. They are thus able to monitor their
performance on a day-to-day basis, across stores,
departments and product categories and compare the
same with other stores as well as across periods. This
helps them take corrective action on a timely basis, and
optimize their stock. They are currently using Business
Objects to analyze data related to the buying trends
of their loyalty customers.

. Following are the table which shows the different

software used by the organization in the
organization activities, for customer transaction &
for employees working in the organization.

|Page
 Vishal Mega Mart

4 1. “JDA ERP” software

0
Fun ction al Area:
> Merchandising Buy ing,
> pro duct ordering, Receipt
> confirmation, Stock
> transfer, Inv ent ory
> Management, Sales
> Merchandise event

Comm en ts:
JDA is one of the leading ERP systems
used by many retailers for multiple
Busine ss models in regards to retailing.
The system is fully inte grate d and takes
care of the Su pply chain fro m a
manu factu rer to the end customer by
using b ack- end and fro nt -end systems like
MMS (Merchandise Management Sy stem) &
WinDSS (Windows Distribute d St or es
Systems).

2. “Oracle Fi nancial” software

Fun ction al Area:

> Financ ial Acc ount ing

Comm en ts:

Complete ly inte grate d with the ir retail

ERP- MMS, allows themto get online
|Page
 Vishal Mega Mart

inte grate d financ ials.

4 3. “RAMCO HRMS ” software

1

Fun ction al Area:

> Hum an Resources.

Comm en ts:
The ir system suppor ts Personne l
Management, Payroll Management,
Employee Bene fits Management, Tr aining
Management and Execut ive Information.

4. “WMS ” software

Fun ction al Area:

> Di stribut ion and Logistics.

Comm en ts :
WMS enable the space plann ing and also
inte grate d SKU location wh ich enable faste r
picking and putt ing of merchandising.

5. “Ar thu r Pla nn ing” software

Fun ction al Area:

>Merchandising Plann ing.

Comm en ts:
An inte grate d plann ing and decision making
tool.

6. “Microsoft Exchange” software

Fun ction al Area:

|Page
 Vishal Mega Mart

➢ Inte rnal/Exte rnal comm un ication.

Comm en ts: Ente rprise wide maili ng solut ion.

4
2

|Page
 Vishal Mega Mart

HUMAN RESOURCE
S MANAGEMENT

OBJECTIVES:
-

. To study how the company manages its

human resource.
To try and understand the recruitment
and selection process, various training
and development programmes for its
employees.

. To understand the management

organization system.

Human Resource Management (HRM) means employing

people, developing their resources, utilizing maintaining
and compensating their services in tune with the job and
organizational requirement. The industry needs skilled
manpower to fit the diverse roles at the front-end and
back-end of the new and complex retail formats. It is
estimated that over 2.5 million jobs will be created in the
sector by 2010.
The complexity of the operations requires trained

|Page
 Vishal Mega Mart

personnel. The modern formats requires to handle

administration,public relations,advertising,store
management, sourcing, and merchandising and
information management.

4
3 The Company places a huge emphasis on fostering a
culture of innovation and enterprise that allows people
within the Company to realise human beings' infinite
potential. The Company continues to increasingly focus
on internal growth and development of its associates,
cutting across levels and functions, through focused
developmental efforts and growth opportunities. For the
year under review, the Company has provided 66 hours
of training per associate. Apart from regular training in
skills enhancement and customer engagement, the
Company also emphasizes on building a sense of pride,
belonging and self-confidence among its employees
working at the stores.
It has been able to employ innovative strategies to
attract talent from other industries. Their human
resource policies are targeted at creating an engaged
and motivated work force. They have a fairly young
team with the average age of the organization being 26
years as on January 31, 2008. Managing a young team

|Page

4
 Vishal Mega Mart

engaged in a service intensive business with largely

repetitive work is one of the challenges that they face.
Their human resource policies are aimed towards
creating a skilled and motivated work force. VRPL have
around 7000 employees both employed in their stores as
well as in their manufacturing units and other facilities,
as on September 30, 2006. They provide a conducive
work atmosphere and opportunities for their employees
to learn and grow.

|Page
 Vishal Mega Mart

Compensation and Performance Based

Incentives:

VRPL’s compensation policy is performance based and

they believe it is competitive with industry standards in
India. VRPL endeavor to recognize talent and potential in
their employees and encourage them to take additional
responsibilities. Based on performance, VRPL calibrate
their employees and reward loyalty by preferring in-
house promotions. Their compensation policy reflects
their continuing efforts to build a world class
performance driven culture. They benchmark ourselves
on compensation externally through consultants
biannually, and aspire to be on the upper quartile of
their target segment, comprising of FMCG companies
and other retail companies and are currently at the 75
percentile.
Variable pay is an important component of total
compensation, with all their associates covered under
their Profit Linked Reward Scheme (PLRS), linking
individual performance and Company profitability. Their
part-time and full-time employees are eligible for PLRS.
Almost 60% of Customer Care Associates earned PLRS in
the year ended March 31, 2007. They also have
|Page

4
 Vishal Mega Mart

Employee Stock Option Plans (ESOPs).

|Page
 Vishal Mega Mart

Training:

VRPL encourage their employees to be enterprising and

expect them to ‘learn on the job’ and contribute
constructively to their business, either through ideas,
personal networks or effective knowledge management.
In essence, they train their employees to become next
generation entrepreneurs, who can effectively lead the
growth of their business. Their corporate objective is to
provide every associate with an average of 5 man
days of training per annum through internal and
external resources.
All senior management members are required to
contribute 30 hours per annum towards training.

Recruitment & Selection:

For posts of team members the following rounds

takes place:-

1. Psychometric tests,Behavioral Intelligence

Test,Logical thinking and Comprehension
Test.

2. Application blank.

|Page
 Vishal Mega Mart

3. Personal Interview, Operations Interview, Regional

Manager Interview.

4
6 For Area Manager:

1. Collection & review of curriculum vitae

2. Personal interview with Regional HR Manager
3. Personal interview with GM- HR

The salient features of Vishal MegaMart staff

are: -

1. Well-trained staff, the staff employed by Vishal

Mega Mart is well-suited for modern retail.
2. Well-dressed staff improves the overall appearance
of store.
3. Employees are motivated to think out-of-the-box.
Retail sector is in growth stage, so staff is
empowered to take innovative steps.
4. Multiple counters for billing, staff at store to
keep baggage and security guards at every
gate, makes for a customer-friendly atmosphere.
5. The employees are motivated to work
efficiently and effectively towards the
achievement of organizational goal by satisfying
their personal needs.

|Page
 Vishal Mega Mart

6. The employees were given bonus and gifts

during the festivals like diwali, etc.

4
7

|Page
 Vishal Mega Mart

E-COMMERCE

OBJECTIVES:-

➢ To study the different steps taken by VRPL in relation

with online shopping. To try and understand the
importance of Vishal Mega Mart website.

The uses of computers and internet have been expanding significantly

over the years. Presently internet has been used widely as a means of
communication, as a potential source of information, as a means of
entertainment and many more. With in few years after existence of
internet, business men realized the possibilities of using internet as a
medium of business. This idea kick started the first online business
ventures. Modern technology has been developed to the extent that
even shopping made possible over the internet. The process of
shopping done over the internet is called online shopping.
Both products and services can be purchased by online shopping.
Online shopping is used for business to business transactions or
business to customer transactions with applications of electronic
commerce (ECommerce). Vishal Mega Mart is soon launching its
online shopping website this summer named as
www.vishalmegamart.com which promises to be a boon for its
customers.

4
8 |Page
 Vishal Mega Mart

Management Organization Structure

R.C.Agarwal
Chairman &
Managing Director

Board of Directors

S.K.Agarwal
Category Heads Whole-time
Director

H
Merchandise
Heads - Zonal e
Head
a
d
-
S
u
|Page
 Vishal Mega Mart
pply Chain
Management

Head- Retail

Chief Operating
Officer

Head – Legal &

Secretarial Head – IT

Head-Admin & HR Head-Finance,

Accounts & MIS

VRPL has its own site named as

www.vishalmegamart.net.
4
9

|Page
 Vishal Mega Mart

Vishalmegamart.net is concerned about the safety and

security of their website and customers. Accordingly, they
have put a number of technological protections in place to
ensure that their transaction process is extremely safe
and that their customers' information is secure. They
provide a large amount of information to their customers,
suppliers through their website. This information includes
their stores in different areas, cities with correct address and
contact no’s, products being offered by them, career
opportunities, enquiry, supplier’s zone etc.

• Vishal Mega Martalso provides opportunities to

5 |Page
0
 Vishal Mega Mart

its customers by collaborating with

shopping.indiatimes.com and with shopping.rediff.com.

5
1 |Page
 Vishal Mega Mart

How to Shop

Firstly, you have to register yourself with the shopping.indiatimes.com

& shopping.rediff.com. Place your order through following these 7 quick and
easy steps:

1. Find the Items You Want to buy.

2. Add the Items to Your Shopping Bag

3. Proceed to Checkout

4. Sign In/Create a New Account/Choose guest checkout

5. Enter a Shipping Address

6. Provide Payment Information and authorization

7. View or print your Order Acknowledgment and check your Order

status.

Here are a few important action points that you should bear in mind:-

1. Keep your PC updated with the latest anti-virus / anti-spy ware

software.

2. Install a personal firewall on your PC to protect your account.

3. Keep your PC updated with the latest security patches and, most
importantly,

4. Do not click on links or open attachments in unknown or

unsolicited (spam) emails.

5 Products Available At Vishal Mega Mart

2 |Page
 Vishal Mega Mart

5
3
|Page
 Vishal Mega Mart

|Page
 Vishal Mega Mart

Vishal Mega Mart inks pact with SBI for co-branded

card
SBI Card announced the launch of its co-branded card in
association with retail chain Vishal Mega Mart to tap the
booming organized retail market.
``SBI Vishal Mega Mart Card is one of the best co-branded
credit card that offers reward points and other benefits to
frequent shoppers and would be free for those who spend
above Rs 7,500 per annum,'' SBI Card CEO, Mr Roopam
Asthana, said.

``By partnering with the SBI Card, we are not just offering
customers a convenient payment mechanism but a
unique consumer loyalty programme that rewards them
every time they shop,'' Vishal Retail Managing Director,
Mr Ram Chandra Agarwal, said.
Some of the features of the co-branded card
include Rs 250 discount voucher on signing up for

|Page
 Vishal Mega Mart

the card and a process by which the cardholder

earns five reward points on every Rs 100 spent.

5
4
SWOT Analysis of Vishal Mega Mart
Strengths :
 Prime location
 Large floor space allowing for better visual
merchandising
 Large area also allows to stock a large variety of
products under one roof
 Financial backing
 Highly trained and motivated sales force.
 Brand equity
 Large scale operations in various cities throughout
the country allows them to reap the benefits of
"economies of scale"

Weaknesses:
 Large scale of operations sometimes acts as a
barrier to personalized customer relations
 Large scale operations lead to reduced flexibility
by increasing the amount of overheads and a huge
commitment in terms of fixed costs
 A large organization structure leads to delayed
decisions. This can prove fatal for a business in the
dynamic fashion industry. Vishal Mega Mart has a
centralized purchasing department in Delhi, this
fact sometimes results in delayed decisions in
adapting to changing market trends.
|Page
 Vishal Mega Mart

5 Opportunity :
5
 Apart from the metro cities, cities like Ahmedabad,
Pune, Lucknow, Indore and Coimbatore have shown
substantial retail presence. These markets are
expected to show exponential growth in the next few
years. Thus Shoppers Stop has the opportunity to
explore new markets.
 According to the Consumer Outlook study,
consumers are generally satisfied with the service
that organized retailers extend to them. More
importantly, they are increasingly regarding these
organized retailers as providing 'value-for-money',
These findings indicate that large retailers will
capture most of the higher consumer spending.
 Increasing penetration of the Internet into Indian
homes has provided Vishal Mega Mart to break the
geographical barriers and to increase their customer
base. The entry into online retailing, would, in fact,
expand the product categories available to the
consumer. The choices open to the consumer would
not be restricted to those available in Vishal Mega
Mart.

Threat:
The time when retailers had to worry about competition
only from their peers down the street has come to an
end, Vishal Mega Mart is now facing increased
competition in the form of international retail chains

|Page

5
 Vishal Mega Mart

that are making a beeline towards the highly potential

Indian markets. Moreover many big Indian business
houses are also trying a space in the Indian retail
scene.

|Page
 Vishal Mega Mart

PROJECT TITLE

“CUSTOMER SATISFACTION”
AT
VISHAL MEGAMART

In Meerut City

|Page
5
7
 Vishal Mega Mart

OBJECTIVE

1. To find out customers satisfaction level at VISHAL

MEGA MART Meerut city store.

2. To study the different software or Technologies

used by Vishal Retail.

3. To study the selection and recruitment process

of the employees and also to analysis the
training and development method of the
company.

4. To Understand the Marketing Strategies being

adopted by the company.

5. To know the production process and plant

location and layout of the company.

6. To understand the scope of e-commerce in the

context of modern business.

7. Finally to relate the above findings so as to

get a comprehensive picture of where the
retail store is today and where it is headed .

|Page
5
8
 Vishal Mega Mart

LIMITATIONS

1. Time available for the project being very short,

in-depth study could not be done.

2. The officials interviewed did not give the

detailed information on recruitment and
selection policies to maintain confidentiality.
3. Sample size during the survey could not be
taken higher due to time constraint.

4. Financial information could not be attained

due to the policies of the company.

5
9 |Page
 Vishal Mega Mart

RESERCH MEHODOLOGY
➢ 1.The research includes the study which was
descriptive in
nature.

The study includes two methods-

(a)PRIMARY
(b)SECONDARY

(a) PRIMARY DATA:

Includes the following ways-
· Observation
· Survey

Here we include the primary method of survey

Research Instruments-
QUESTIONNAIRE

· Area of Survey-
VISHAL MEGA MART RETAIL OUTLET ,MEERUT CITY

Sampling plan-
· Sampling size- 100
· Sampling procedure-Random sampling
· Sampling method- customers survey

SECONDARY DATA:

• Annual reports of the company, various records being

available at office premises, Audited annual reports, Web

|Page

6
0
 Vishal Mega Mart

site of the company

|Page
6
1
 Vishal Mega Mart

AN OVERVIEW

The total sample for the survey was 100 .The response was as follows:-

1.GENDER RATIO :

Gender No. Of Respondents

Male 42
Female 58

(1.1) Pie chart Representation of SEX RATIO

INTERPRETATION:
In the survey conducted among 100 people, 42 respondents were
male & 58 were female.

The study clearly shows that the sample taken were most of them
6 were Female.
2

2. AGE GROUP :

AGE GROUP No. Of Respondents

15-25 22
|Page
 Vishal Mega Mart

25-35 67
35-45 7
40 and Above 4

(2.1) Graphical Representation of AGE GROUP

Interpretation:

From the above bar graph it is clear that Vishal Mega Mart
caters to the needs of younger part of consumers that is
Different age
6 between 15-25 yrs & 25-35 yrs.
groups in
3
years

3. Most Exites for shopping at Vishal Mega Mart :

Different Exites No. of Respondants

Promotional offers 12

Variety of products 6

Price of Products 78

|Page
 Vishal Mega Mart

Any Other 4

(3.1) Graphical Representation of

MOST EXITES FOR SHOPPING AT VMM

Frequency Vishal Mega Mart

Once in two months 5

Once a month 46

No.of
Twice a month
responda 19
nts

Once a week or more 2

Your own pattern of visits. 28

Interpretation:

From the above data 78% customers mostly visit vishal

mega mart due to reasonable price of products,where as
12% due to promotional offers,6% due to variety of
4. FREQUENCY OF VISIT AT VMM:
products and rest 4% visit due to any other reasons.
64

|Page
 Vishal Mega Mart

(4.1) Graphical Representation of FREQUENCY OF VISIT

Interpretation:

The above diagram clearly shows that consumers visited the

retail store at least once a month. Otherwise they had their
own pattern of visits. This means that they do not have any
particular pattern to follow but they visited the retail store
according to their own choice.

65

5. WHEN YOU VISIT THE RETAIL OUTLET ,YOU GO…..

Type of Visit No. Of Respondents

Alone 5

With Family 23

With Friends 72

(5.1) Graphical Representation of Type of Visit

Interpretation:

|Page
 Vishal Mega Mart

The above graph shows that Consumers visited the retail

stores mostly with their friends. Then the second was with
their family members & then alone.

66

|Page
 Vishal Mega Mart

6. SPENDING BY THE CONSUMER:

Amount Of Money Spent. No. of Respondants

Less than 1000 38

1000- 3000 46
3000-4000 14
Above 4000 2

(6.1) Graphical Representation of Amount spended

by consumer

Interpretation:
when he or she visited Vishal Mega Mart the maximum
amout spend by the customer was between the slot of rs
1000-3000,where as amout less than rs 1000 lies second
place.

6
7

|Page
 Vishal Mega Mart

7. ITEM USUALLY PURCHASED FROM THE RETAIL

OUTLET:

Items Purchased Vishal Mega Mart

Apparels 69

Accessories 4

Utility 26

Foot ware 0

Electronic items 1

(7.1) Graphical Representation of

USUALLY BUY FROM THE OUTLET

Interpretation:
The above graph shows that customers spend their maximum amount on
purchasing Apparels than Utility items no one specially come for purchasing
foot ware.

6
8

|Page
 Vishal Mega Mart

8. SATISFACTION WITH PRODUCT QUALITY:

No. of Respondants

YES 24

NO 3
Some what satisfied 73

(8.1)Graphical Representation of
SATISFACTION WITH PRODUCT
QUALITY

Interpretation:
The above graph clearly shows that 24% customers satisfied with the
quality of products ,73% were satisfied some extent where as only 3%
were not satisfied with the quality of products they only purchase
product only due to reasonable price of product.

6
9

|Page
 Vishal Mega Mart

9.PROBLEMS FACED BY CUSTOMERS IF ANY:

No. of Respondants
Problems

Billing problem 4
Heavy rush 0
Out of Stock 26
Few varieties 51
No problem 23

(9.1)Graphical Representation of

PROBLEMS FACED BY CUSTOMERS

Interpretation:

The above graph indicates that the highest peak is of

the customers i.e. 51 facing problem from the less
varities of product ,where as 26 customers facing
problem from out of stock items,only 4 customers
facing billing problem ,where as no one facing
problem with heavy rush.
7
0

|Page
 Vishal Mega Mart

10: OVERALL SHOPPING EXPERIENCE:

No. Of Respondents
Very satisfactory 8
satisfactory 62
Average 28
Unsatisfactory 2

(10.1)Graphical Representation of

OVERALL SHOPPING EXPERIENCE

Interpretation:

Overall maximum number of customers i.e. 62 having

satisfied expirence in the outlet ,where as 28 customers
having average satisfaction level ,only 8 customers are
highly satisfied shopping expirence ,only 2 two customers
were unsatisfied shopping expirence and facing few
7
1
problems.

|Page
 Vishal Mega Mart

✔CONCLUSION

• The conclusion arises from the Research study having the sex
ratio of 58% female and 42% male ,78% customers visit retail
outlet due to reasonable price of products and they visit mostly
with their friends.

• Maximum customers comes in age group of 25-35 i.e. 22.They

often to visit retail outlet oncein a month number of customers
are maximum in this category i.e. 46% where as 28% customer
having their own pattern of visit.

• Maximum number of customers (46) spent their amount of rs

1000-3000 on purchasing Apparels than Utility items.

• 51% customers facing problem of less varities where as 23% of

customers having not facing any problem .

• Overall conclusion is that:

62% -SATISFIED

28% -AVERAGE

8% -VERY SATISFIED

➢ Where as only 2% were UNSATISFIED

7
2g e
|Pa
 Vishal Mega Mart

✔RECOMMENDATION
1. Customization of clothing should be given an important
consideration.
2. Proper packaging and provide contrast labeling in
displays of product.

3. Proper placements of Gondola in the stores as space

between them are very less.
4. Proper display in the gondola and top most rack of the
gondola should be used for storing of inventory rather
than display of product.
5. Should provide more festival schemes and at proper
time.
6. Should use psychological pricing-more discounts by
increasing the price
7. Proper display of cutlery items
8. Clothes should be in sync with fashion.

9.Customer experience should be enhanced by focusing on

all the four aspects: communication, store experience,
customer interaction and post purchase experience.

10.Retailers should manipulate their environment to create

a desired atmosphere. The social atmosphere, defined in
terms of the music played, lighting etc should be created in
such a way to soothe the customers.

11.Retail stores like Vishal Mega Mart caters to the needs of

the middle class of the segments .Hence they should now
start focusing on the other segments of the society.
|Page
 Vishal Mega Mart

7
3

BIBLIOGRAPHY

BOOKS:

RESEARCH METHODOLOGY by C. R.
Kothari

LINK:

• www.vishalmegamart.net

• www.imagesretail.com

• www.indiaretailbiz.com

• www.india-reports.com

• www.business.mapsofindia.com

• www.retailindustry.about.com

• www.scribd .com
|Page
 Vishal Mega Mart

7
4

ANNEXURES

QUETIONNAIRE

7
5

|Page
 Vishal Mega Mart

QUESTIONNAIRE

Dear Sir/Madam,

I am currently engaged in a study on “Customer satisfaction at Vishal

Mega Mart ”. In this connection I request you to read the following items carefully
& answer them .The answers you give will be held confidential & used purely for
academic purposes.

➢ Please tick ( √ ) of your choice inside the bracket.

➢ Please write in capital letters.

1) Gender :-

 Male  Female

2) Age:-

 15-25 years  25 – 35 years

 35 – 45 years  40 and above.

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

 Promotional offers  Variety of

Products
 Price of Products  Any Other

4) How frequent you visit at vishal mega mart?

 Once in two months  Once a

month

 Twice a month  Once a week or

more

|Page
 Vishal Mega Mart

 Your own pattern of visits.

7 5) When you visit the retail outlet, you go….

6
 Alone  With Family  With
Friends

6)
7)
How much do you usually spend while shopping in the retail outlet ?

 less than1000  1000-3000

 3000-4000  above 4000

7) What do you usually buy from Vishal Mega Mart ?

Apparels Accessories Utility Foot ware Electronics

8) Are you satisfied with the quality of the products offered by Vishal Mega Mart ?

 Yes  No  Some what satisfied

9) Do you ever face any from at Vishal Mega Mart ?

Billing Problem
Heavy Rush
Out of Stock Products
Less Varities
No problems faced

|Page
 Vishal Mega Mart

10) How is your Shopping Experience at Vishal Mega

Mart ?

 Very satisfactory  Satisfactory

 Average  Unsatisfactory

7
7

|Page
 Vishal Mega Mart

|Page