Ravi project

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Ravi project

  1. 1. Introduction-Retail in IndiaRetailing is the largest private sector in India and second to agriculture interm of providing employment to people. India today has perhaps the highestretail outlet density with approximately 12 million retail outlets. The retailindustry in the country is broadly divided into the organized andunorganized sectors. The total market in 2005 stood at $225 billion,accounting for about 11% of the countrys gross domestic product (GDP). Ofthis total market, the organized sector accounted for $ 8 billion of the totalrevenues. That represents only 3.5% share of this market. According to ATKearney, the organized retailing industry is expected to cross $23 billionrevenue mark by 2010.its share as represented in urban scenario is projectedto be 12 to 20%. Growing at more than 30%, the organized sector is drivingthe retail growth in India and contributes significantly to the growth of theeconomy. This economic growth comes primarily from increased consumerspending. Retail is currently the biggest industry in the world with sales of$7.2 trillion. Every 10th billionaire in the world is a retailer. 25 of the top 50Fortune 500 companies are in retail.The retail market in India is the second largest untapped market after China.According to a survey by A T Kearney, the size of the retail industry in Indiais pegged at Rs 400,000 crore, and is expected to double to Rs 800,000 croreby 2006. The biggest challenge for Indian retailing lies in the nature of thesector, which is highly fragmented and unstructured. A T Kearney estimatesthat the organized retail market is Rs 20,000 crore, while K S A Technopak,values it at Rs 5,000 crore. By 2005, A T Kearney predicts an eight-foldincrease in organized retail while KSA Technopak estimates a six-fold 1
  2. 2. growth. The difference in these projections is attributed to their divergentdefinitions of ‘organized retailing’. While India’s retailing format hashitherto been basic at best, change is in the air. Over the past few years,there has been a proliferation of organized sector players entering orexpanding their presence in the retail market. A number of large businessgroups such as Tata, RPG, Rahejas and Piramal have set up malls and builtbusinesses within retail.This includes the Rs 190 crore (McKinsey estimate) FoodWorld, India’sleading supermarket chain. Other supermarket chains like Trinetra, Nilgiris,Apna Bazar and Subhiksha are rapidly establishing themselves. 2
  3. 3. Dia. 3.1 Organized Retail In IndiaThe apparel sector has seen the emergence of stores like Pantaloons apartfrom company owned exclusive stores. Names like Shopper’s Stop,Lifestyle, Westside etc., have gained prominence in the lifestyle and fashionsegments, and chains like Archies, Musicworld and Crossword cater to thebooks and music market. Even sectors like consumer durables have seen theemergence of organized retailers like Viveks (in Chennai) andJainsonsUrban markets are more attractive given the higher disposableincomes of the urban population. The increasing attractiveness of the sectoris raising interest from a number of global retailers. McKinsey predicts thatglobal companies such as Tesco, Kingfisher, Metro, Carrefour, and Aholdare exploring entry options, even as names like Benetton and Lifestyle havealready built a presence in India. Even though the retail sector in India hasbeen growing rapidly, there is still a long way to go. Firstly, organizedretailers face steep regulatory and infrastructural barriers. Real estate accessis complicated and complex, as is the tax system. In addition, thecompetition from the unorganized sector is formidable. As in any otherindustry, unorganized retailers enjoy higher margins due to loweroperational costs. Organized retailers must counter the convenience of ahop-skip-and jump access of the small, neighborhood stores. These Indianversions of the mom and-pop store have some traditional advantages thatmake them formidable opponents for modern trade – establishedrelationships with local consumers, easy credit terms, quick and easyacquisition of products in line with customer preferences and home delivery. 3
  4. 4. The past few years have seen the spending power of the middle classincreasing exponentially. Shopping for anything – from cars to cutlery,groceries to personal accessories is now a fun thing for the family to dotogether. Malls have become the alternative hangout and are growing in theirpopularity as the preferred venue for holiday and evening outings. The newbrand of consumer has arrived – ‘the recreational shopper’. The RetailIndustry in India is at the crossroads. India is ushering in a revolution in theretailing industry. This is attributed to the huge sum of money being pouredin real estate, modern logistic and the creation of new brands. While theopportunity is large the rate and quantum of growth is uncertain. As retailershope that shopping becomes the sport of choice (perhaps even displacing theold favorite – cricket), some might well say that the retail boom is only justbeginning.Historical Evolution for retail in India Modern Formats/ Historic/Rural Traditional/Pervasive Government International Reach Reach Supported Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khaki Stores Cooperatives Convenience Stores Mom and Pop/ Kiranas W eekly Markets Village Fairs Melas Neighborhood Shopping Source of Availability/ Low Stores/Convenience Experience/Efficiency Entertainment Costs / Distribution 4
  5. 5. Dia. 3.6 Historical Evolutions for Retail in India Sources: - ICICI presentation Different Retail Format Used in IndiaHypermarketsThe hypermarket format is most suitable and appealing to the Indianconsumer. Very large - over 40,000 sq. ft. The largest retailers operating inthis format are Pantaloon Retail with Big Bazaar, RPG Enterprises withGiant (now Spencer’s) and Tata Trent’s Star India Bazaar hypermarkets.Most retailers are likely to continue expanding in the larger Indian cities andselect tier-two cities with potential for growth. Some of the trends in thehypermarket format are a rapid growth in revenue led by volumes, andexpansion in both large and medium cities.SupermarketSelf-service stores - Approx. 4,000 to 20,000 sq. ft. in size, with a strongfocus on food and personal care. Supermarkets take the form of a one-stop-shop, catering to the consumers need for choice and variety. Clientele ofsupermarkets consist mostly of affluent Indians who are not too price-sensitive, prefer convenience, hygiene and the attractive atmosphere. Largeplayers operating through these formats include Food Bazaars fromPantaloon Retail, RPG’s Food world supermarkets, Trinethra supermarketand Nilgiris.Discount stores 5
  6. 6. If we stripped down supermarkets, offering basic range of grocery productstypically at great discounts. They run extremely cost-efficient operations byreducing the complexity of inventory, and offering a basic ambience. Themost prominent discount grocery chains are Subiksha (leader) and MarginFree Markets.Cash And CarryUsually - 70,000 to 100,000 sq. ft. stores that sell products to members,comprising retailers and institutions. The key added value is a wide range ofproducts under one roof, at wholesale pricesNeighborhood StoreTraditional stores that provide basic offerings, fixed prices, zero usage oftechnology, and little or no ambience. These are either dying out, orrepositioning themselves, on the basis of convenience and quality. 6
  7. 7. Table 3.1 Different Retail Format and value position Current Trends in Indian Retailing Industry• Rising income levels, education and a global exposure have contributed to the evolution of the Indian middle class purchasing and shopping habits are maturing as a result.• Current organized retail is small and fragmented with players not being able to reap economies of scale.• Retailing through formats such as supermarkets, hypermarkets, department stores and other specialty chains are increasing. Leading industrial houses in the country are investing in the sector. This 7
  8. 8. includes Food world, Shopper’s Stop, Crossroads, Globus, Pyramid and other such outlets.Dia. 3.7 Four Axis for Retail Scale up Sources: FICCI• Retailing through non-traditional channels such as Fuel Stations, Direct Selling and Home Shopping Television is on the rise.• FDI in retail trading is not encouraged in any form. However, a few foreign retail names appearing in the market are in the nature of franchisee.• Foreign retail chains like Marks & Spencer have already established their operations in the growing Indian market. Several companies including Metro, Tesco, and Carrefour are exploring entry options. Benetton and Lifestyle are already in the business in India. 8
  9. 9. Opportunities • Organized retail is a lucrative proposition for a player who can bring in best practices from around the world, leverage economies of scale and reap these benefits through retail operations in India. • India has a large middle class of 350 million and an educated workforce to handle various critical functions like merchandising, sales promotion, inventory management, purchasing and marketing. • India also possesses IT skills in the area of supply chain management, database management and inventory management • A number of drivers are aiding the growth of the industry such as enhanced levels of income and increasing purchasing power, entry of foreign retailers and reforms in real estate markets. Given these developments the organised retailing sector is poised for significant growth in the country.Customer Is a King OR Queen Dia.3.8 Customer is a king or queenFuture of Retail Industry in India 9
  10. 10. Over 70% of the urban population is estimated to reside in Class Icities (population of over one million) and rest of them mostly stays in classII cities. This is largely as a result of increased employment opportunities incities as well as a preference among the younger generation to move awayfrom agriculture. Population by age group one of the important demographictrends in recent times is the changing age profile. India is increasingly beingacknowledged as a “young” nation, with about 35% of its population lessthan 14 years of age. The median age of India’s population is 24 years. Dia. 3.9 Organized Retailing –Market SizeSource: FICCIYouth are generally early adopters of most modern products and concepts.Given the higher aspirations and “willingness to change” of the younger age 10
  11. 11. group, India’s age profile offers high market potential for consumer goods.However, in the long term, this factor represents a challenge as rapidlygrowing numbers of ageing consumers will have more discretionary incomebut will spend less on goods and more on healthcare and other services aswell as saving for retirement. Set out below is the forecast of the age profileover the next 12 years. Table. 3.2 Population ProjectionPOPULATIONPopulation estimated at 1,055 million (2003) is growing by 1.7% this year.Growing is a key trend in the country, with rural growth averaging to 17.9%and urban 30.7% for the period 1991 to 2001.Statistics with regard to population growth and the rural split are setoutbelow. 11
  12. 12. Source: - KSA Technopack Dia. 1.10 Indian Consumer Market Wholesale Part of Retailing in India 12
  13. 13. Dia: 15.1 Traditional and Mostly followed Supply chain modelIndia followed by retailer and manufacturer • Supplier-driven product development process. • Push / pipeline model. • One-way info flow of information from supplier to retailer 13
  14. 14. Dia: 15.2 New Form of supply chain in place to be in Future Manufacturer Telephony Infrastructure Direct Marketing Web Infrastructure Transportation Overnight Delivery Distributors Retailers Infomediary and Outsourced Service ProvidersIn new globalize world this is going to happen in retail and manufacturerrelationships. So there will be a backward integration also in supply chainin coming future with help of internet and technology.• 2-way real-time information flow• Networking model provides immediate sales feedback up and down the supply chain.• Fully informed supply through all phases of product life cycle 14
  15. 15. Visual Merchandising (VM) is the art of presentation, which puts themerchandise in focus. It educates the customers, creates desire andfinally augments the selling process. This is an area where the Indiantextile and clothing industry, particularly, the SMEs lack adequateknowledge and expertise. This inadequacy is best reflected in poorpresentation/display and communication in various national andinternational exhibitions. Therefore this Programme has beenconceived to fill this gap. VM helps in: educating the customers aboutthe product/service in an effective and creative way. establishing acreative medium to present merchandise in 3D environment, therebyenabling long lasting impact and recall value. setting the companyapart in an exclusive position. establishing linkage between fashion, 15
  16. 16. product design and marketing by keeping the product in prime focus.combining the creative, technical and operational aspects of a productand the business. drawing the attention of the customer to enable himto take purchase decision within shortest possible time, and thusaugmenting the selling process.STATUS OF VISUAL MERCHANDISING IN INDIA: Unlike thewestern countries, whereVM receives highest priority in commercial planning of a product, theIndian industry’s understanding and practice of the concept of VMis inadequate. With phasing out of quantitative restrictions after theyear 2004, the textile industry will have to compete purely on thecompetitive edge of the products and VM will be a helpful tool inprojecting the uniqueness of the products and thereby increasing themarket access and sales. It is high time that the Indian textile andclothing industry, therefore, understands and adopts the scientific andprofessional system of VM rather than the traditional practices ofdisplay of products and communication. 16
  17. 17. 17
  18. 18. About Vishal Mega MartRam Agarwal started Vishal Mega Mart in Kolkata in 1986, in a 100sq ft shop in Lal Bazaar. It was a struggle in the beginning, but withintwo years his store had taken off, and today Vishal Mega Mart hasbranches all over the country.With a turnover of Rs 89 crore (Rs 890 million), Vishal Mega Mart hasbeen one of the pioneers of bargain retailing in India, and now it isdiversifying to become an all-purpose departmental store.In the beginningHis family had a business in Calcutta (now Kolkata) when he wasgrowing up, but he wanted to do something different, so he got a jobinstead. However, by 1984, he got bored and decided to startsomething by myself.At that time, especially in Calcutta, there werent really any retailstores. People would buy fabric and get their clothes stitched. He wasone of the first people to put forward the idea of a large departmentalstyle retail store that early on.Financial worriesHe started with around Rs 100,000, for which he had to take out aloan as well as dip into some family savings. This went into rentingtheir workspace, which was an office and a workshop rolled in one, 18
  19. 19. and hiring the three people he had working for him. They sourced alltheir material from Calcutta itself, and stitched their garments in-house.It took two years for them to really take off -- until then it was acontinuous learning process for him, since he was relativelyinexperienced in running a business. He had to learn various tricksalong the way, especially in terms of selling. They set up their firstshop in 1986, and by 1990, they had four showrooms in Calcutta.The first big outlet was set up in the popular Esplanade area in 1997.The thing that really made a difference was, around 1988, he had thebrainwave of introducing sales. That idea really took off -- they wouldbuy in bulk at discounted rates, and sell at really low prices. Theytook temporary shops and put up sales -- theyd get lines goingaround the corner!Expanding salesThe first shop they opened outside of Calcutta was in Bhubaneshwar,and today they are present in cities like Jaipur, Indore, Hyderabadand Pune. They set up their first Delhi shop in 2002 -- now they haveseven.He owe all his success to the fact that he has managed to reallydifferentiate his product: they offer pure value for money. They dobusiness at a low margin, by cutting the middle-man -- and thats whythey clicked. Theyre probably the only players in India who purchasewith cash, and buy directly from the manufacturer. They started with a 19
  20. 20. price point of Rs 125 on average, and today this has only increasedto Rs 250, pretty reasonable by todays standards. They even doformalwear within this range.The inspirationHe got the inspiration to diversify his stores when he went abroad.Big retailers like Sears or Walmart cater to absolutely everything. InIndia we dont have their equivalent here. While it is emerging now inIndia, there is still nothing like an organised retail sector.In the beginning of 2004, they started to branch out into furnishings,cosmetics and other fast-moving consumer goods. They now have a1,50,000 sq ft hypermarket in New Delhis Mathura Road.At this point, it is a little tough to manage this kind of expansion,especially with all the different varieties it brings -- you have to keepyour fingers in several pies at once which is a bit of a juggling act --but if you can manage this sector, there is no doubt that you will beking of retail in India.Hope for the futureThey hope to reach Rs 5,000 crore (Rs 50 billion) by 2010. This is asobering thought, given that when he first started, they were makingsales of around Rs 200 a day! Their expansion plans are still ontarget, theyre planning more stores in Delhi and the big metros. Hethink the main reason for his success is that he was in the right placeat the right time, and he realised that the middle classes were a vast 20
  21. 21. untapped resource. Middle class wanted to spend their money, butthey also wanted bargains, and this is exactly what he gave them.The VISHAL Group: What started as a humble one store enterprise in1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing49 showrooms in 37 cities. India’s first hyper-market has also been openedfor the Indian consumer by Vishal. Situated in the national capital Delhi thisstore boasts of the singe largest collection of goods and commodities soldunder one roof in India. The Group has a turnover of Rs 150 crore for 2004-05. Under thedynamic leadership of Mr. Ram Chandra Agarwal the group is expectingto touch the turnover of Rs 300 crore by the end of March 2006 and Rs650 crore for the period 2006-07.The group’s prime focus is on retailing. The Vishal stores offer affordablefamily fashion at prices to suit every pocket.The group’s philosophy is integration and towards this end has initiatedbackward integration in the field of high fashion by setting up a state of theart manufacturing facility to support its retail endeavors.Vishal is one of fastest growing retailing groups in India. Its outlets cater toalmost all price ranges. The showrooms have over 70,00 products rangewhich fulfills all your household needs, and can be catered to under oneroof. It is covering more than 11 Lacs of sq. ft. in retail space and more than5 Lacs sq.ft. under construction. Each store gives you international quality 21
  22. 22. goods and prices hard to match. The cost benefit that is derived from thelarge central purchase of goods and services is passed on to the consumer.The Founders: Mr.Ramchandra Aggarwal Mrs.Uma Aggarwal Mr.Surendra Aggarwal 22
  23. 23. Introduction to the Research topicVishal Retail Ltd is one of the leading retail houses in India. As of January25, 2007, they operated 48 retail stores of Vishal Mega Mart spread over1,150,000 square feet across 37 cities in 17 states. In their efforts tostrengthen their supply chain, they have set up seven regional distributioncenters and an apparel manufacturing plant.They started as a retailer of ready-made apparels in Kolkata in 2001. In2003, they acquired the manufacturing facilities from Vishal FashionsPrivate Limited and M/s Vishal Apparels. Subsequently, with evolution ofretail industry in India and change in consumer aspirations, they diversifiedtheir portfolio of offerings to include other retail goods. Currently, they sellready-made apparels and a wide range of household merchandise and otherconsumer goods such as footwear, toys, watches, toiletries, grocery items,sports items, crockery, gift and novelties.They follow the concept of value retail in India. In other words, theirbusiness approach is to sell quality goods at reasonable prices by eithermanufacturing themselves or directly procuring from manufacturers(primarily from small and medium size vendors and manufacturers). Theyendeavour to facilitate one-stop-shop convenience for their customers and tocater to the needs of the entire family. They believe this concept has helpedthem grow to their current size within a short time frame of four years. 23
  24. 24. Why chosen Vishal Mega Mart as the research subject We all know that Retail is one of the fastest growing sectors in Indiaand in the time to come it is expected to grow manifold. Hence this is thesector which has immense opportunities not only for working professionalsbut for the freshers, new to the corporate world, too. We have chosen retailsector as we are eyeing the same to enter into, after successful completion ofour MBA programme because of the already mentioned reason. Further wehave chosen Vishal Mega Mart as our research subject because it is thebiggest and only specimen of organized retail in general merchandise inDehradun till date, though there are more than one organized food retailerslike Mc Donalds, Pizza Hut and Narula’s operating in the city. 24
  25. 25. Review of LiteratureThe study of consumer store-choice or patronage behavior has been animportant area of research in retailing for many decades. The decision on thechoice of store has been modeled in different ways in the literature. Some ofthe studies have taken the household as a rational decision making unit,(Becker, 1965; Goldman and Johansson, 1978; Bawa and Ghosh, 1999).Similarly, Bell, Ho and Tang, (1998) in their work on store choice foundevidence that each shopper is more likely to visit the store with the lowesttotal shopping cost.Some of the researchers (Bell, Ho and Tang, 2001) have worked on theshoppers perceived utility and the store image in making the store choice.Research also exists on how store environment cues influence consumersstore choice decision criteria, such as perceived merchandise value andshopping experience (Baker, Parasuraman, Grewal, and Voss, 2002).Store choice has also been seen in the context of the risk reduction strategiesof the shoppers (Mitchel and McGoldrick, 1996; Mitchell and Harris,2005). In addition work on store choice has also been done on the role ofsituational factors (Wu, Petroshius, and Newell, 2004) and the task-storeattribute relationship (Kenhove, Wule, and Waterschoot, 1999) found tobe dependent on the timing of shopping trips, with consumers visitingsmaller local store for short "fill-in trips and larger store for regularshopping trips (Kahn and Schmittlein, 1989).Most of the studies in store choice have however pointed out the primacy ofstore location (Arnold, Oum and Tigert, 1983; Freymann, 2002) and price 25
  26. 26. (Bell, Ho and Tang, 2001; Freymann, 2002; Arnold, Oum and Tigert,1983) as the key drivers of store choice. Lastly Bell and Lattin (1998)found a systematic relationship between a households shopping behaviorand store preference, especially in the context of choice of a formatThe most common technique employed in the methodologies of the majorityof research work involved in store image measurement has been by askingconsumers to rate particular outlets on pre-defined scales. Thus, the semanticdifferential scaling used by Osgood et al. (1957) has subsequently beenwidely employed. Five or seven point bi-polar scales have been the mostcommon (e.g. McDougall and Fry, 1974; Golden et al., 1987; and Cassill etal., 1993), but Hansen and Deutscher (1977) used staple scales ranging fromzero to ten. Others, such as James et al. (1976) have utilized attitudinalscaling techniques when evaluating attributes for a particular store (e.g.‘very good’ or ‘very bad’), with total scores indicating how well a storefilled consumer expectations overall. Cassill et al. (1993) made someattempt to summarise these ratings of individual attributes by using factoranalysis. They found that consumers choose to patronise individualdepartment stores for clothing purchases when a combination of factors werepresent: the stocking of particular brands; the presence of national and ownbranded products; and where garments offered functional value rather thanfashion appeal. Two problems characterise the majority of previous studiesof store image. First, the dimensions on which consumers are asked to rateparticular outlets have largely been predetermined by the researcher, andhave not emanated from the respondents themselves. Second, many studieshave treated attributes of store image as if they are all equally important,which need not necessarily be the case. surprising, therefore, that researchers 26
  27. 27. have striven consistently to provide an improved understanding of storeimage (Martineau, 1958; Kunkel and Berry, 1968; Lindquist, 1974; InMartineau’s (1958) paper, it was suggested that retail outlets had, so far ascustomers wereconcerned, a ‘personality’ composed of functional andpsychological attributes. It can be concluded from this early work on storeimage that findings from one sector are not, necessarily, broadly applicable.It is not surprising, therefore, that Davies (1992) concluded that store imageis likely to be situation specific, varying according to the purpose of eachconsumer purchase. Osman (1993) has attempted to relate these two factors,by proposing that consumer attitudes to store choice are affected by the storerating on each of the contributing attributes.This is therefore, a critical area for further research work, as often managershave been shown to perceive their own retail image differently from that oftheir customers (McLure and Ryans, 1968).The studies on store choice have mostly dealt with individual choices andthe studies have investigated the drivers of store choice taking individuals asthe samples (mostly housewives). Little research exists, which analyses theshopping behavior with a family or household as a unit. Researchers havefound that, store choice and shopping trip timing decisions tend to differ forindividuals and households as a result of personal differences, householdcomposition, and activity patterns (Leszczyc and Timmermans, 1997; Kimand Park, 1997). Similarly work has been done on household demographicvariables (Leszczyc, Sinha, and Timmermans, 2000; Bawa and Ghosh,1999) and relating them to the shopping behaviour of the household, the triptiming (Kahn and Schmittlein, 1989) and the store choice (Kau andEhrenberg, 1984). However, as compared to the work on the product and 27
  28. 28. service choices by the families/households, the work on store choice is quiteless and covers few dimensions.The existing research supports that household size has a positive effect onthe likelihood of a shopping trip (Leszczyc, Sinha, and Timmermans,2000). Similarly Bawa and Ghosh, (1999), found that the size of the familywas positively associated with the frequency of shopping trips and thebasket size.The household composition, will also affect the shopping basket, it has beensuggested that for a given household size, the presence of children in thehousehold is likely to lower expenditures relative to an all-adult householddue to differences in consumption rates for children and adults (Prais andHouthakker, 1971; Benus, Kmenta and Shapiro, 1976; McClements,1977; Muelbauer, 1980). In addition, the presence of children is likely toresult in a more diverse basket size, with higher chances of stock outs andgreater impulse purchases. Thus the presence of children will inducebaskets, with larger baskets in terms of categories, but smaller baskets interms of size. 28
  29. 29. Hypothesis FormulationEvery test of significance begins with a null hypothesis (H0 ). H0 representsa theory that has been put forward, either because it is believed to be true orbecause it is to be used as a basis for argument, but has not been proved.The very first step in the formulation of hypothesis is to formulate twohypotheses instead of one in such a way that if one is accepted then the otheris rejected or vice versa. The other one is called as alternative hypothesis(Ha ). It is a statement of what a statistical hypothesis test is set up toestablish.In our study we have formed a number of hypotheses:H01: More buying intention of customers is independent of gender.H02: More buying intention of customers is independent of age.H03: Unique shopping experience of customers is independent of gender.H04: Unique shopping experience of customers is independent of age.H05: Customer’s opinion of products being trendy and of latest style isindependent of gender.H06: Customer’s opinion of products being trendy and of latest style isindependent of age. 29
  30. 30. Objectives of study1. To study the shopping behavior of customers coming to Vishal Mega Mart.2. To study the consumer perception and attitude towards Vishal Mega Mart as a brand.3. To study the effectiveness of visual merchandising in Vishal Mega Mart.4. To study the perception of customers about products and services offered by Vishal Mega Mart.5. To study the perception of customers of the prices of products and services offered by Vishal Mega Mart.6. To study the customer perception about the promotional strategies of Vishal Mega Mart. 30
  31. 31. Scope and ImportanceThough Vishal Mega Mart operates in 37 cities with 49 showrooms, thestudy is restricted to the Dehradun region because of the time, cost andaccessibility constraints.The study is important because it gives insight into the customer’sperception towards organized retailing and gives an idea of customer’soverall shopping behavior. It is important to Vishal Mega Mart because itreveals the strong and weak points of the store. Thus it gives an opportunityto the store to recognize and improve upon its weak points and convert itsstrong areas into strategic advantage. Till date Vishal Mega Mart is the onlyplayer in organized general merchandising and thus is enjoying the benefitsof monopoly. But in the time to come many big players like Big Bazaar,Reliance etc. are also planning to enter Dehradun. Thus the report can beuseful to these new entrants also, as it provides a clue about the customerbehavior. 31
  32. 32. Research MethodologyResearch methodology is a way to the systematic solution of a researchproblem. It focuses on the various steps adopted in studying the researchproblem along with the logic behind using them.Research DesignResearch design is the conceptual structure within which research isconducted. A research design specifies the methods and procedures forconducting a particular study.Research type Our research is both Exploratory as well as Descriptive. Explorativebecause it focuses on the discovery of ideas and uses secondary data andDescriptive because it also focuses on the characteristics of certain group ofcustomers such as age, sex, income etc.-UniverseAll the items under consideration in any field of inquiry constitute a‘universe’. In our case it is the population of Dehradun city.-DurationThe research work has been completed within the time limit specified by theManagement i.e. two months.Sample DesignA sample design is a definite plan determined before any data are actuallycollected for obtaining a sample from a given population. In our case wehave used systematic sampling. We stood at the exit of Vishal Mega Martand tapped every fifth customer. 32
  33. 33. -Sample unitStudents, businessmen, servicemen, working women, house wives.-Sampling technique Sampling technique is the technique or method by which the informationis collected. We have used well defined questioneres to collect the data.Further we have also used the interview technique wherever we felt that therespondents were not literate enough to answer the questions by themselves.Interviews were taken in accordance with the questioneres.-sample sizeInitially we had 150 as the size of our research sample but responses of 7respondents out of these 150 were found to be unfit to be included in thesample so sample size got reduced to 143.Data CollectionThere are two types of data: primary and secondary.Primary data is the data that have been observed and recorded by theresearchers for the first time to their knowledge.Secondary data is the data that is not gathered for the immediate study athand but for some other purposes.In our study we have used both types of data. Primary data has beencollected with the help of questioneres and interviews whereas secondarydata has been collected from various books and the websites.Statistical tools used-Measures of central tendency-Chi-square test-Simple pie and bar diagrams 33
  34. 34. AnalysisDemographic analysis1) Age 1-less than 20 2-greater than equal to 20 and less than equal to 35 3-greater than 35It can very easily be depicted from the graph that in our sample there are i. only 7% people who are less than 20 years of age ii. 45% people belong to the age group of ‘greater than equal to 20 and less than equal to 35’ iii. 48% people are greater than 35 years of age 34
  35. 35. 2) Income 1) Income<5000 2) 5000<=Income<10000 3) 10000<=Income<20000 4) 20000<=Income<30000 5) Income>30000It can very easily be depicted from the graph that in our sample i. 24% respondents have income less than Rs5000 ii. 17% respondents have income between Rs5000 and Rs10000iii. 36% respondents have income between Rs10000 and Rs20000iv. 19% respondents have income between Rs20000 and Rs30000 v. 0nly 4% respondents have income more than Rs30000 35
  36. 36. 3) Expenditure 1) Expenditure<1000 2) 1000<=Expenditure<2000 3) 2000<=Expenditure<3000 4) 3000<=Expenditure<5000 5) Expenditure>5000It can very easily be depicted from the graph that in our sample i. 19% respondents have monthly expenditure less than Rs1000 ii. 21% respondents have monthly expenditure between Rs1000 and Rs2000 iii. 20% respondents have monthly expenditure between Rs2000 and Rs3000 iv. 19% respondents have monthly expenditure between Rs3000 and Rs5000 v. 21% respondents have monthly expenditure greater than Rs5000 36
  37. 37. 4) Gender 1) Female 2) Male 1 40% 1 2 2 60% 1 100%It can very easily be depicted from the graph that in our sample there are40% females and 60% males. 37
  38. 38. Shopping Behavior I. I have started coming for shopping with my family now Shopping with family 66 70 Strongly agree 60 agree 50 38 40 Neither agree nor disagree 30 21 Disagree 20 15 10 3 Strongly Disagree 0II. When I buy from VMM, I buy more than what I plan 38
  39. 39. III. I have stopped visiting the old shop I used to visit 39
  40. 40. Consumer perception and attitude towards VMM as a brandIV. VMM offer a unique shopping experience Unique shopping experience 100 93 Strongly agree 80 Agree 60 Neither agree nor disagree 40 29 Disagree 20 8 9 4 Strongly disagree 0 V. Rate your shopping satisfaction level at VMM on the scale of 1-10(1 being poor and 10 being outstanding) 40
  41. 41. VI. Rate efficiency at billing counters of VMM on the scale of 1-10VII. Rate layout of VMM on the scale of 1-10 41
  42. 42. VIII. I will definitely come again to VMM for shopping IX. Rate following sections of VMM on the scale of 1-5(1 being poor and 5 being outstanding) a) Grocery/Canned food 42
  43. 43. b) Apparel Apparel 6570 5360 150 240 330 4 1320 9 5 310 0 c) Kids Kids 627060 150 240 31 3 2630 19 420 5 510 0 43
  44. 44. d) Footwear Foot wear70 61 5460 150 240 330 4 12 1420 510 1 0 e) Household 44
  45. 45. f) Restaurant Restaurant 50 475040 1 230 3 1620 4 8 510 0 0 g) Overall 45
  46. 46. Perception about Products and servicesX. Rate quality of products at VMM on the scale of 1-10XI. Rate product variety at VMM on the scale of 1-10 46
  47. 47. XII. Products offered at VMM are trendy and of latest styleXIII. The way products are displayed makes me buy more than what I plan 47
  48. 48. PriceXIV. Keeping the quality of products in mind, most of products at VMM are expensiveXV. Rate your satisfaction level regarding prices of products at VMM on the scale of 1-10 48
  49. 49. XVI. I visit VMM because of less price or discounts offered 49
  50. 50. Promotion XVII. The discounts offers at VMM are usually temptingXVIII. I am generally aware of all offers at VMM 50
  51. 51. XIX. Rate your satisfaction regarding the clarity of signages carrying information about offers and discounts inside VMM on the scale of 1-10XX. I come to VMM because I find advertisements of VMM effective 51
  52. 52. XXI. Rate the following influencing factors on the scale of 1-5 which make you visit VMM a) Discount b) Ambience 52
  53. 53. c) A good time pass destination Time pass destination60 5150 140 2 23 330 16 420 6 510 1 0 d) Self selection facility 53
  54. 54. e) All items under one roof All items under one roof 57 60 51 1 2 40 25 3 20 4 4 6 5 0XXII. How would you rate the behavior of employees on the scale of 1-10 54
  55. 55. Chi-square tests 1) To test whether more buying intention of customers (variable 1) has any relation with gender (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square test Step 4: ComputationsMore Buying & Gender:-Table 1 Gender Yes No Total Male 50 13 63 Female 39 10 49 Total 89 23 112 55
  56. 56. O E (O-E) (O-E)^2 (O-E)^2/E 50 50.0625 -0.0625 3.9062 7.8027 39 38..9375 0.0625 3.9062 1.0032 13 12.9375 0.0625 3.9062 3.0193 10 10.0625 -0.0625 3.9062 3.8819 Total 15.7076Degree of freedom: (r-1)*(c-1) = (2-1)*(2-1) =1 Step 5: Decision Chi (calculated): 15.7076 Chi (tabulated) : 3.841 Since the calculated value is very much higher than thetabulated value at 1 degree of freedom and 95% confidence leveltherefore null hypothesis rejected i.e. more buying intention of customersdepends upon gender.2) To test whether more buying intention of customers (variable 1) has any relation with age (variable 2) 56
  57. 57. Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square test Step 4: ComputationsMore Buying &Age:- Age Yes No Total a 6 3 9 b 40 10 50 c 44 8 52 Total 90 21 111 O E (O-E)^2 (O-E)^2/E 6 7.2973 1.6829 0.2306 40 40.5405 02921 0.0072 44 42.1622 3.3775 0.0801 3 1.7027 1.6829 09884 10 9.4595 0.2921 0.0309 8 9.8378 3.3775 0.3433 57
  58. 58. Total 1.6805Degree of freedom: (r-1)*(c-1) = (3-1)*(2-1) =2 Step 5: Decision Chi (calculated): 1.6805 Chi (tabulated) : 5.991 Since the calculated value is much less than the tabulatedvalue at 2 degree of freedom and 95% confidence level therefore nullhypothesis accepted i.e. more buying intention of customers isindependent of age.3) To test whether unique shopping experience of customers (variable 1) has any relation with gender (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level 58
  59. 59. Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square test Step 4: ComputationsUnique Shopping & Gender:- Gender Yes No Total Male 57 8 65 Female 44 5 49 Total 101 13 114 O E (O-E)^2 (O-E)^2/E 57 57.5877 0.3454 0.00599 44 43.4123 0.3454 0.00796 8 7.4123 0.3454 0.0466 5 5.5877 0.3454 0.0618 Total 0.1224 Degree of freedom: (r-1)*(c-1) = (2-1)*(2-1) =1 Step 5: Decision 59
  60. 60. Chi (calculated): 0.1224 Chi (tabulated) : 3.8410 Since the calculated value is less than the tabulated value at1 degree of freedom and 95% confidence level therefore null hypothesisaccepted i.e. unique shopping experience of customers is independent ofgender.4) To test whether unique shopping experience of customers (variable 1) has any relation with age (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion 60
  61. 61. Applying Chi-square test Step 4: ComputationsUnique Shopping Experience & Age:- Age Yes No Total a 6 2 8 b 46 7 53 c 49 4 53 Total 101 13 114 O E (O-E)^2 (O-E)^2/E 6 7.0877 1.1831 0.1669 46 46.9561 0.9141 0.0195 49 46.9561 4.1775 0.0889 2 0.9123 1.1813 1.2968 7 6.0439 0.9141 0.1512 4 6.0439 4.1775 0.6912 Total 2.4145 Degree of freedom: (r-1)*(c-1) = (3-1)*(2-1) =2 Step 5: Decision 61
  62. 62. Chi (calculated): 2.4145 Chi (tabulated) : 5.991 Since the calculated value is much less than the tabulatedvalue at 2 degree of freedom and 95% confidence level therefore nullhypothesis accepted i.e. unique shopping experience of customers isindependent of age.5) To test whether customers of particular gender (variable 1) found the products of VMM trendy and of latest style (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square test Step 4: Computations 62
  63. 63. Gender Yes No TotalMale 44 18 62Female 24 10 34Total 68 28 96 O E (O-E)^2 (O-E)^2/E 44 43.9167 6.9389 1.5800 24 24.0833 6.9389 2.8812 18 18.0833 6.9389 3.8549 10 9.9167 6.9389 6.9389 Total 15.2550 Degree of freedom: (r-1)*(c-1) = (2-1)*(2-1) =1 Step 5: Decision Chi (calculated): 15.255 Chi (tabulated) : 3.8410 Since the calculated value is very much greater than the tabulated value at 1 degree of freedom and 95% confidence level 63
  64. 64. therefore null hypothesis rejected i.e. opinion that the products at Vishal Mega Mart are trendy and of latest style depends upon gender. 6) To test whether customers of particular age group (variable 1) found the products of VMM trendy and of latest style (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square testStep 4: ComputationsTable 2 Age Yes No Total a 4 2 6 b 29 107 39 c 34 14 48 Total 67 26 93 64
  65. 65. O E (O-E)^2 (O-E)^2/E 4 4.3226 0.1041 0.0241 29 28.0968 0.8158 0.0290 34 34.5806 0.3371 9.7481 2 1.6774 0.1041 0.0620 10 10.9032 0.8158 0.0748 14 13.4194 0.3371 0.0251 Total 9.9631Degree of freedom: (r-1)*(c-1) = (3-1)*(2-1) =2 Step 5: Decision Chi (calculated): 9.9631 Chi (tabulated) : 5.991 Since the calculated value is much greater than thetabulated value at 2 degree of freedom and 95% confidence leveltherefore null hypothesis rejected i.e. opinion that the products at VishalMega Mart are trendy and of latest style depends upon age. 65
  66. 66. 7) To test whether price (variable 1) has any relation with gender (variable 2) Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square testStep 4: Computations Gender Yes No Total Male 32 25 57 Female 31 13 44 Total 63 38 101 O E (O-E)^2 (O-E)^2/E 32 35.5544 12.6337 0.3553 66
  67. 67. 31 27.4455 12.6344 0.3553 25 21.4455 12.6344 0.5891 13 16.5544 12.6337 0.7631 Total 2.0631Degree of freedom: (r-1)*(c-1) = (2-1)*(2-1) =1Step 5: Decision Chi (calculated): 2.0631 Chi (tabulated) : 3.8410 Since the calculated value is less than the tabulated value at1 degree of freedom and 95% confidence level therefore null hypothesisaccepted i.e. price is independent of gender.8) To test whether price (variable 1) has any relation with 0 (variable) 67
  68. 68. Step 1: State the null and alternative hypotheses. H0 : variable 1 is independent of variable 2 Ha: variable 1 and variable 2 have a relationship Step 2: Significance level Significance level is 0.05 or 95% confidence level Step 3: Test criterion Applying Chi-square testStep 4: Computations Age Yes No Total a 3 3 6 b 30 17 47 c 30 18 48 Total 63 38 101 O E (O-E)^2 (O-E)^2/E 3 3.7425 0.5513 0.1473 68
  69. 69. 30 29.3168 0.4667 0.1592 3 2.2574 0.55145 0.2442 30 29.9405 3.54025 0.1182 17 17.6831 0.4666 0.0263 18 18.0594 3.5283 1.9537 Total 2.6489Degree of freedom: (r-1)*(c-1) = (3-1)*(2-1) =2 Step 5: Decision Chi (calculated): 2.6489 Chi (tabulated) : 5.991 Since the calculated value is less than the tabulated value at2 degree of freedom and 95% confidence level therefore null hypothesisaccepted i.e. price is independent of age. Rank Summary of different sectionsTable 3 Sections Ratings Grocery 500 Apparel 457 Kids 462 69
  70. 70. Footwear 357 Household 490 Restaurant 370 Overall 457 Rank summary of different promotional factorsTable 4 Factors Discount 487 Ambience 455 Time pass Destination 486 Self selection 562 Item under one roof 574 70
  71. 71. Rank summary of different influencing factorsTable 5 FactorsRating of shopping 975satisfactionRating billing counter 800efficiency 71
  72. 72. Rating of lay out at VMM 805Rating of product quality 1021Rating of product variety 844Rating of price satisfaction 825Rating of clarity of signages 834Rating of behavior of 1003employees 72
  73. 73. FindingsShopping behavior  It has been found that majority of the respondents i.e. more than 56% people have started coming for shopping with their families after Vishal Mega Mart started its operations in Dehradun.  More than 63% respondents agree that they buy more than planned when they buy from Vishal Mega Mart.  After the application of Chi-square test it has been found that more buying intention of customers depends upon the gender and after considering table 1 we can easily infer that this tendency is more in males than in females.  Further when we applied the same test to see whether more buying intention of customers varies with the age, it was found that more buying intention does not have any relation with the age.  65% respondents are of the opinion that they have not stopped visiting the old shop they used to visit before Vishal Mega Mart came to Dehradun. 73
  74. 74. Consumer perception and attitude towards VMM as a brand  Nearly 71% respondents believe that Vishal Mega Mart offers a unique shopping experience.  The application of Chi-square test suggests that all the respondents have a perception about unique shopping experience irrespective of gender i.e. unique shopping experience opinion, at Vishal Mega Mart does not depend whether a respondent is male or female.  The application of Chi-square test suggests that all the respondents have a perception about unique shopping experience irrespective of age also i.e. unique shopping experience opinion, at Vishal Mega Mart does not depend on the age group of the respondents.  Nearly 33% respondents have rated the shopping satisfaction level at Vishal Mega Mart as more than average.  Only 26% respondents have rated efficiency of billing counters at Vishal Mega Mart as average.  About 29% respondents believe that layout of Mega Mart is just average.  Approximately 73% respondents said they will definitely come again to Vishal Mega Mart, only negligible minority refused to revisit Vishal Mega Mart.  56% respondents have rated the grocery section of Vishal Mega Mart as outstanding.  45% respondents believe the apparel section is just fair enough or average.  43% respondents believe the kids section is just fair enough or average. 74
  75. 75.  More than half of the respondents i.e. 51% have rated the foot wear section of Vishal Mega Mart as poor.  Nearly 75% respondents believe that the house hold section of Vishal Mega Mart is above average.  Nearly 68% respondents have rated the restaurant of Vishal Mega Mart to be below average.  More than 61% respondents have rated the Vishal Mega Mart on overall basis to be average.Table 3 clearly shows the rank wise likeliness of the following sections: 1. Grocery 2. Households 3. Kids 4. Apparel, Overall 5. Restaurant 6. Footwear 75
  76. 76. Perception about Products and Services  More than 43% respondents have rated the quality of products at Vishal Mega Mart to be good enough.  38% respondents have rated the product variety available at Vishal Mega Mart to be above average.  Nearly 48% respondents agree that the products offered at Vishal Mega Mart are trendy and of latest style. Only 20% respondents believe them not to be trendy and of latest style while the rest kept num to the question.  Further the Chi-square test suggests that the opinion that the products at Vishal Mega Mart are trendy and of latest style does depend upon gender.  The Chi-square test is also indicating a relationship between age and opinion that the products at Vishal Mega Mart are trendy and of latest style. Further the table 2 shows that respondents with higher the age perceived the products more trendy and of latest style.  Majority of the respondents agree that the visual merchandising techniques practiced by Vishal Mega Mart make them buy more than what they initially plan. 76
  77. 77. Price  45% believe that keeping the quality of products in mind, most of the products at Vishal Mega Mart are expensive. Only 26% respondents believe them to be inexpensive while rest belongs to neither of the view.  The application of Chi-square test shows no relation between perception about price and gender i.e. male and female perceives the price similarly.  Similarly Chi-square test shows no relation between perception about price and age group i.e. members of all the age group perceive the price similarly.  32% respondents have rated the price satisfaction level of products at Vishal Mega Mart to be above average.  Majority of the respondents (55%) visit Vishal Mega Mart because of less price or discounts offered.Promotion  Nearly 43% respondents believe the discounts offered at Vishal Mega Mart to be tempting.  37% respondents believe that they are generally aware of all offers at Vishal Mega Mart whereas nearly equal number of respondents i.e.38% believe that they are not aware of the offers at Vishal Mega Mart. 77
  78. 78.  Nearly 50% of the people have appreciated clarity of signages at Vishal Mega Mart.  Only 36% respondents come to Vishal Mega Mart because they find advertisements of Vishal Mega Mart effective.32% respondents do not find the advertisement effective enough and thr rest are of no opinion.  Most of the respondents (51%) visit Vishal Mega Mart because of discounts offered.  36% respondents have rated ambience of Vishal Mega Mart as above average whereas 25% have rated it to be below average, and the rest are of no opinion.  36% respondents have rated Vishal Mega Mart as an average time pass destination.  Nearly half of the respondents i.e. 48% have rated the self selection facility at Vishal Mega Mart as good enough.  75% respondents visit Vishal Mega Mart because they find all items under one roof.  Majority of the respondents have rated the behavior of the employees of Vishal Mega Mart to be good enough.Table 4 clearly shows the rank wise likeliness of the following influencingfactors: 1. All items under one roof 2. Self selection facility 3. Discount 4. A good time pass destination 78
  79. 79. 5. AmbienceTable 5 clearly shows the rank wise likeliness of the following factors: 1. Product Quality 2. Behavior of Employees 3. Shopping satisfaction 4. Product variety 5. Clarity of signages 6. Price satisfaction 7. Layout of Vishal Mega Mart 8. Billing counter efficiency 79
  80. 80. 80
  81. 81. Limitations1) Many of the people were reluctant to give the information about theirincome expenditure and age.2) The Questionnaire was too lengthy and became time consuming.3) The length of the questionnaire added to the cost constraint also4) The sample size of the report is too small because of the time, costs andaccessibility constraints.5) Respondents were not aware of all the sections of the store.6) Some of the respondents were not literate enough to fill up thequestionnaire by themselves and thus needed to be guided. This became timeconsuming.7) Faced a bit of difficulty in getting permission from Vishal Mega Mart 81
  82. 82. ConclusionVishal Mega Mart has only recently started its operations in Dehradun andone of the most prominent effects of its showroom is that people havestarted coming for shopping with their families now. People do feel uniqueshopping experience when they shop at Vishal Mega Mart. One strong pointof the store is that the ways products are displayed make people buy morethan what they plan initially i.e. visual merchandising techniques areeffectively followed to certain extent but these are not being followedextensively as people have rated ambience and layout to be poor. Sectionsmost popular among customers are grocery and household but customerscomplain of not much discount being offered in these sections. One of thereasons that people come to Vishal Mega Mart is that they find all itemsunder one roof. The other factors that attract customers most are discountsand self selection facility. Presently the store is enjoying the benefits of monopoly as it is theonly organized general merchandising store in Dehradun though there aremore than one organized food retailers like Mc Donalds, Pizza Hut andNarula’s operating in the city. But in the time to come many big players likeBig Bazaar, Reliance etc. are also planning to enter Dehradun. Thus the storeshould recognize and improve upon its weak areas. One of its weak areas islong waiting time at the billing counters. Further people have rated theadvertisement to be ineffective, inefficient and insufficient. The store shouldalso try and improve upon its quality and reduce costs as most of the people 82
  83. 83. are of the view that keeping the quality in mind the products offered atVishal Mega Mart are expensive. It is not attracting footfalls as a good timepass destination. On overall basis people find Vishal Mega Mart as average. 83
  84. 84. Recommendations1. The study reveals that usually males buy more than what they plan initially. Thus the store should maintain visual merchandising techniques in the men section and improve the same in the sections related to women.2. People find the waiting time in the que of the billing counters long, so the store should try and increase the number of billing counters. Further the employees training can increase the efficiency and decrease the waiting time.3. There is vast scope of improvement in the layout of the store.4. The sections that need attention are footwear, apparel and restaurant5. The study reveals that people who belong to high age group find the products of the store to be trendy and of latest style but the younger generation does not hold the same opinion. So the store should concentrate more on products related to younger generation.6. Most of the people visit the store because of the discounts offered and the store should try and make them more attractive.7. Further people feel that there is not much discount offered in the grocery section which is the most popular section. The store should try and increase the discount in this particular section then only it will be able to operate successfully in the competitive time to come.8. People are generally unaware of offers at Vishal Mega Mart because of poor advertising and promotional strategies. It should increase the number of adds in the print media and should also give adds in the local electronic media. 84
  85. 85. 9. Clarity of signages can be improved by increasing the number of signages and making them attractive.10. No. of footfalls can be increased by improving upon the ambience and the restaurant.11. Till date Vishal Mega Mart is the only player in organized general merchandising in Dehradun and thus is enjoying the benefits of monopoly. In the absence of competition people are finding it fair enough because there is no other such store so far with which its performance can be compared. But in the time to come many big players like Big Bazaar, Reliance etc. are also planning to enter Dehradun. Thus it should recognize and improve upon its weak areas and convert its strong areas into strategic advantage. 85
  86. 86. References1. Retail management by Chetan Bajaj.2. Marketing Management by Philip Kotler.3. Economic survey 2005-2006 by govt. of India.4. Marketing research by Malhotra5. Ministry of Agriculture Annual Report 2005-066. www.mpmandiboard.com7. www.pantaloon.com8. www.rpggroup.com9. www.ficci.com10. www.retailbiz.com11. www.fciweb.nic.in12. http://fcamin.nic.in13. www.indiatimes.com14. www.mckinseyquarterly.com15. www.atkearney.com16. www.retailyatra.com 86
  87. 87. AppendixObjective: To study the impact of Vishal Mega Mart on Buying behavior of customers in DehradunCity * QuestionnaireName ……………………………… Age: ……….Address…………………………………………… Contact no.………………………… ….………………………………………...Gender ……….. Occupation ……………………….Monthly Income (in Rs.)a. < 5000 b. 5000-10000 c. 10000-20000 d. 20000-30000 e. > 30000Total Monthly expenditure on shoppinga.< 1000b. 1000-2000 c.2000-3000 d. 3000-5000 e. >5000Shopping Behavior1) I have started coming for shopping with my family nowa) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree2) When I buy from VMM, I buy more than what I plana) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree3) I have stopped visiting the old shop I used to visita) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly DisagreeConsumer perception & attitude towards VMM as a brand4) Vishal Mega Mart offers a unique shopping experiencea) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree5) Rate your shopping satisfaction level at VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 106) Rate efficiency at billing counters of VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 107) Rate layout of VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 10 87 1 2 3 4 5 6 7 8 9 10
  88. 88. 8) I will definitely come again to VMM for shoppinga) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree9) Rate following sections of Vishal Mega Mart on a scale of 1 to 5 (1 being poor and 5 being Outstanding) a. Grocery/ 1 2 3 4 5 b. Apparel 1 2 3 4 5 Canned food c. Kids 1 2 3 4 5 d. Foot wear 1 2 3 4 5 e. House hold g. f. Others 1 2 3 4 5 1 2 3 4 5 h. Restaurant 1 2 3 4 5 i. Overall 1 2 3 4 5Perception about Products and services10) Rate quality of products at VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 1011)Rate product variety at VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 1012) Products offered at Vishal MM are trendy and of latest stylea) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree13) The way products are displayed makes me buy more than what I plana) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly DisagreePrice14) Keeping the quality of products in mind, most of products at VMM are expensivea) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree15) Rate your satisfaction level regarding prices of products at VMM on the scale of 1-10 1 2 3 4 5 6 7 8 9 1016) I visit VMM because of less price or discounts offereda) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree17) I generally buy those items which are offered with discountsa) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree 88
  89. 89. Promotions18) The discount offers at VMM are usually temptinga) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree19) I am generally aware of all offers at VMMa) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree 20) Rate your satisfaction level regarding the clarity of signages carrying information about offers anddiscounts inside VMM 1 2 3 4 5 6 7 8 9 1021) I come to VMM because I find advertisements of VMM effectivea) Strongly agree b) Agree c). Neither agree nor disagree d) Disagree e) Strongly Disagree22) Rate the following influencing factors on the scale of 1 to 5 (1 being least influential & 5 beingmost influential) which make you visit Vishal Mega Mart? b. Discount 1 2 3 4 5 d. Ambience 1 2 3 4 5 e. A good time pass destination 1 2 3 4 5 g. Self selection Facility 1 2 3 4 5 e. All items under one roof 1 2 3 4 523) How would you rate the behavior of employees on the scale of 1-10 1 2 3 4 5 6 7 8 9 10 89

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