A research project report on comparative study of vishal megamart and its competitors
Research Project Report On “Comparative Study of Vishal Megamart at Lucknow and its Competitors” SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW ACADEMIC YEAR 2008-2010Under Guidance of: Submitted By:
Table of ContentsPART I Executive summary Introduction to Retail Industry Company’s Profile Overview Products offered by the company SWOT Analysis Visual MerchandisingPART II Objectives of the study Research methodology Reseach Design Questionnaire Analysis Suggetions Limitations Bibliography
Introduction of Indian Retail Industries:Retail is India’s largest industry, accounting for over 10 per centof the country’s GDP and around eight per cent of theemployment. Retail industry in India is at the crossroads. It hasemerged as one of the most dynamic and fast paced industrieswith several players entering the market. But because of theheavy initial investments required, break even is difficult toachieve and many of these players have not tasted success so far.However, the future is promising; the market is growing,government policies are becoming more favorable and emergingtechnologies are facilitating operations. Retailing in India isgradually inching its way toward becoming the next boomindustry. The whole concept of shopping has altered in terms offormat and consumer buying behavior, ushering in a revolution inshopping in India. Modern retail has entered India as seen inSprawling shopping centers, multi-storied malls and hugecomplexes offer shopping, entertainment and food all under oneroof. The Indian retailing sector is at an inflexion point where thegrowth of organized retailing and growth in the consumption bythe Indian population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in itsdemographics. A large young working population with medianage of 24 years, nuclear families in urban areas, along withincreasing working-women population and emergingopportunities in the services sector are going to be the keygrowth drivers of the organized retail sector in India.Retailing is the final step in the distribution of merchandise - thelast link in the Supply Chain - connecting the bulk producers ofcommodities to the final consumers. Retailing covers diverseproducts such as foot apparels, consumer goods, financialservices and leisure.A retailer, typically, is someone who does not effect anysignificant change in the product execs breaking the bulk. He/She are also the final stock point who makes products or servicesavailable to the consumer whenever require. Hence, the valueproposition a retailer offers to a consumer is easy availabilities ofthe desired product in the desired sizes at the desired times.In the developed countries, the retail industry has developedinto a full-fledged industry where more than three-fourths of thetotal retail trade is done by the organized sector. Huge retailchains like Wal-Mart, Carr four Group, Sears, K-Mart,McDonalds, etc. have now replaced the individual small stores.Large retail formats, with high quality ambiance and courteous.
Retailing is the interface between the producer and the individualconsumer buying for personal consumption. This excludes directinterface between the manufacturer and institutional buyers suchas the government and other bulk customers. A retailer is onewho stocks the producer’s goods and is involved in the act ofselling it to the individual consumer, at a margin of profit. AsSuch, retailing is the last link that connects the individualconsumer with the manufacturing and distribution chain.Retailing is more than selling goods:Retailing consists of the sale of goods or merchandise, from afixed location such as a department store or kiosk, in small orindividual lots for direct consumption by the purchaser.Retailing is a well recognized business function whichcompromisesmaking available desired product in the desired quantity atthe desired time. This creates a time, place and form utilityfor the consumer. The success of retailing is highly dependenton an efficient supply chain management. A well-developedsupply chain reduces wastages and transaction cost therebyreducing the cost of inventories to be maintained by theproducers and the traders. A reduction in the cost ofinventory management leads to a reduction in the final priceto the consumer.
Retailing has been identified as a thrust area for promotion oftextiles, processed foods, agricultural and horticulturalproduce. Retail Sector can be divided into organized andunorganized sectors:Unorganized Retail:Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and inefficient upstreamprocesses, lack of modern technology, inadequate funding andabsence of skilled manpower. Therefore, there is a need topromote organized retailing.Unorganized Retail:Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and inefficient upstreamprocesses, lack of modern technology, inadequate funding andabsence of skilled manpower. Therefore, there is a need topromote organized retailing.
Evaluation of Organized Retailing:American mass retailing began in the late 1800s withMontgomery Ward marketing its products through generalmerchandise mail order catalogs, which was very effective at thattime for reaching a largely rural society.In the 1940s, the population began its movement to the suburbs asthe economy shifted from an agricultural base to an industrializednation. The first shopping center was opened, which wouldeventually be a significant factor in the decline of downtownRetailing in the 1960s and 70s. JC Penney and Sears began theirnational mass retailing expansion, and the use of credit cards asMajor retail chains began.The 1950s witnessed the reaffirmation of the traditional family.The first planned mall and franchised food restaurant opened. Aspeople continued to flock to the suburbs, the downtown areasbegan to decline. Larger suburban malls were created andanchored by traditional downtown department store merchants.Freeways were expanded and the sales of private automobilesgrew, giving the consumer a wider accessible area in which toshop. Discounters were born, Korvetta being one of the firsts.The 1960s witnessed the growth of enclosed shopping centers,with department stores anchors and specialty retail chains. Thebaby boomers were teenagers at this point, leading to the growth
of juniors-oriented stores and vendors. Women became targetsnot just as mothers or wives as they entered the workforce andconsumers became more demanding in their expectation ofquality and service.In the 1970s, promotional pricing started to pick up thedepartment stores as off-price retailer emerged. The growth ofretail space slowed, as sales increase came at the expense ofcompetition, not of market growth. This competitive market ledto the under performance of several retailers as gross marginsexperienced downtown pressure from increased competition.Retailers in large upscale markets recognized the time shortagecreated by dual-career families and began to offer more servicesto assist in saving time.The 1980s witnessed the growth of off price retailing as adistinct, enduring retail format. Retailers began to drop low profitlines. Acquisitions and mergers were actively utilized as growthstrategies, private brands were redeveloped to enhanceuniqueness and margins and offshore sourcing was developed tocompensate for marginsBroadly the organized retail sector can be divided into twosegments, In-Store Retailers, who operate fixed point-of-salelocations, located and designed to attract a high volume of walk-in customers, and the non-store retailers, who reach out to thecustomers at their homes or offices.
It was only in the year 2000 that the economists put a figure to it:Rs.400,000crore (1crore = 10 million) which is expected todevelop to around Rs.800,000crore by the year 2005 – an annualincrease of 20 per cent. Retailing in India is unorganized withpoor supply chain management perspective. According to a recentsurvey by some of the retail consulting bodies, an overwhelmingproportion of the Rs.400,000crore retail markets areUNORGANISED. In fact, only a Rs. 20,000crore segment of themarket is organized. As much as 96 per cent of the 5 million-plusoutlets are smaller than 500 square feet area. This means thatIndia per capita retailing space is about 2 square feet (comparedto 16 square feet in the United States). Indias per capita retailingspace is thus the lowest in the world (source: KSA Technopak (I)Pvt Ltd, the India operation of the US-based Kurt SalmonAssociates).Currently the retail landscape is filled with Supermarket chainswith over 1000 outlets all over the country to increase to around5000 by the 2005. The success of a couple of hyper mart’sindicating the evolution of hypermarkets in the country prominentamong them is Giant, Metro, Big Bazaar models. While theaverage bill value at a supermarket is in the range of Rs.300 perbill, the average bill amount at a Hypermarket is in the range ofRs.750-1000, indicating that the model is in tune with the globalmodels where the average spend is increasing with the shoppingexperience.
Impact of Organized Retail:Organized retailing is spreading and making its presence felt indifferent parts of the country. The trend in grocery retailing,however, has been slightly different with a growth concentrationin the South. Though there were traditional family owned retailchains in South India such as Nilgiri’s as early as 1905, the retailrevolution happened with the RPG group starting the Food worldchain of food retail outlets in South India with focus on Chennai,Hyderabad and Bangalore markets, preliminarily. The experimenthas reaped rich dividends and the group is now foraying intoother territories as well. Owing to the success of Food worldmodel of RPG group, several new models such as Trinethra,Subhiksha, Margin Free and others have made their foray intothis sector albeit at regional levels. Today the food retail sectorin India is about Rupees Ten Lakh Crores (USD 200 billions) ofwhich the organized food retail segment is about 1 per cent andincreasing at a pace of over 20% y-o-y. To be successful in foodretailing in India essentially means to draw away shoppers from,the roadside hawkers and kirana stores to supermarkets. Thistransition can be achieved to some extent through pricing, so thesuccess of a food retailer depends on how best he understandsand squeezes his supply chain. The other major factor is that ofconvenience shopping which the supermarket has the edge overthe traditional kirana stores. On an average a supermarket stocksup to 5000 SKU’s against few hundreds stocked at an averagekirana stores.
In the organized retail industry, the gestation periods are long,institutional funding is difficult, and there is none or littleGovernment support. But the belief among top retailer chains inthe country is that the industry will see large investments comingonce the current ban on foreign direct investment is lifted. Butthat could be two-three years away. Food and grocery retailing isa tough business in India with margins being very low, andconsumers not dissatisfied with existing shops where they buy.For example,The next-door grocery shopkeeper is smart and delivers goodcustomer service, though not value.As of now, while Chennai has about five organized food andgrocery retail chains, other big cities such as Delhi, Bangalore,and Mumbai average only two-three such chains. Almost all foodretail players have been region-specific as far as geographicalpresence is concerned in the country. To illustrate with examples,the RPG Groups Food World, Nilgiris, Margin Free, Giant,Varkeys and Subhiksha, all of which are more or less spread inthe Southern region; Sabka Bazaar has a presence only in andaround Delhi; names such as Haiko and Radhakrishna Food landare Mumbai-centric; while Adani is Ahmedabad-centric. Industrytopography in India is such that spreading presence across citiesis a tough call. As pointed out by many experts, organized foodand grocery retailing chains going national requires significantinvestments. Retailing within this sector is not just about thefront-end, but involves complex supply chain and logistics issuesas well.
The trend and mindset of the present retailer chains in India canbe best understood by studying Food World as an example, whichcame in first in the food and grocery retailing sector. The chainhas no plans to venture beyond the Southern region just yet.Current plans are to focus on the Southern markets and achievesaturation. The intention is that by 2005, they could look at theother regions. Subhiksha, a Chennai based discount chain, toowants to be the principal store of purchase for at least 40 per centof all consumers living within 500-750 meters of the store, thatis, within walking distance. This makes the point very clear thatthe strategy among most existing retail chains of various formatsis to completely saturate the markets where they are alreadyestablished players and then move on to virtually untouched areaswhere the challenge of sourcing resources and extending theirsupply chain model to best suit the size and expanse of themarket would be a challenging task.It can be explained that the obstacles of looking at a pan-Indiamodel for grocery are several. Given the federal nature of thecountry, the weak infrastructure and the major variances in eatinghabits in different parts of the country, one will have to replicatethe retail administration costs for at least each region andtherefore the gestation period of the project becomes huge.However, if a model is in place where the upfront store revenuesscale very rapidly, then it is possible. Therefore, if one is toattempt a pan-Indian grocery foray, it will have to be in thehypermarket format with its attendant investment numbers andrisk profile.
If a close look is taken at the nature of the Indian Retail Markets,it can be seen that there is so much potential to extract fromindividual regions that players are in no tearing hurry to spreadout. Based on a recent study by a renowned governmentinstitution in India, in the six major metros, Delhi has the highestper capita consumption of food and grocery, among supermarkets.Chennai, “the Mecca of retailing”, comes at fourth place. Thisshows the high potential the sector presents. Chennai has somefive supermarket chains, and each of these is doing well forthemselves. So there is enough scope to expand even in onesingle city in India.Sabka Bazaar, a supermarket chain restricted to Delhi alone, isnow generating sales of about Rs.11 crore from its 19 storeswhich best illustrates the potential of each individual city. Thisexplains the reason for delay in intentions of retailers to spreadfar and wide.Benefits of Retailing:Retailing is good for national economies where it has positiveinfluence on influence on inflation and product availability. It
also creates fortunes for its owners and is a tremendous source ofemployment.INDIA has been virtually the only developing country in theworld that has been extremely slow in adopting this organizedpattern of retailing. • Better quality products • Employment opportunities • Better social infrastructure • Enhanced foreign exchange • Benefit to tourism • Better showcase for exports • Better realization of taxesIndian Retail Scenario:
Retailers in India have to experiment with formatsmaintaining scalability in terms of segments, along withdeepening penetration levels.Traditionally Indian Retail can be traced back from WeeklyMarkets, Melas, and Village Fairs in Small towns and villages toKirana stores, PDS outlets, Khaki Bhandaar, co-operative storesin Urban cities. The wave of retail began with various textilemanufactures like Bombay Dyeing, Raymond’s, S Kumar’s, andGrasim foraying into selling the product through their outlets andcompetition among FMCG players driving the forces towardsretailing. The evolution of retailing lead to an emergence ofvarious formats like Shopping malls, Super-marts, Hyper-marts,Departmental Stores, Apparel Stores, etc. catering to majority allsectors of society providing the all-important 3Vs – Value,Variety and Volume.India is the country having the most unorganized retail market.Traditionally it is a Family’s livelihood, with their shop in thefront and house at the back, while they run the Retail business.More than 99% retailers function in less than 500 square feet ofshopping space. Global retail consultants KSA Technopak, haveestimated that organized retailing in India is expected to touch Rs35,000 crore in the year 2005-06. The Indian retail sector isestimated at around Rs900,000 crore, of which the organizedsector accounts for a Mere 2 per cent indicating a huge potentialmarket opportunity that is lying in the waiting for the consumer-savvy organized retailer .Purchasing power of Indian urban
consumer is growing and branded merchandise in categories likeApparels, Cosmetics, Shoes, Watches, Beverages, Food and evenJewellery, are slowly becoming lifestyle products that are widelyaccepted by the urban Indian consumer. Indian retailers need toadvantage of this growth and aiming to grow, diversify andintroduce new formats have to pay more attention to the brandbuilding process. The emphasis here is on retail as a brandrather than retailers selling brands.The focus should be on branding the retail business itself. Intheir preparation to face Fierce competitive pressure, Indianretailers must come to recognize the value of building their ownstores as brands to reinforce their marketing positioning, tocommunicate quality as well as value for money. Sustainablecompetitive advantage will be depended on translating corevalues combining products, image and reputation into a coherentretail brand strategy.Growth of Organized Retail in IndianCities:
Organized Share of retail sector is expected to increaseto 8-9 percent in 2010-11 from 6 percent in 2008.The Retail sector contributes to around 36 percent of GDP inIndia and is largest employment generator. The sector isdominated by small-scattered unorganized regional players, largeplayers contributing to meager 10 percent of the total pie.Organized retail is at its nascent phase wherein the largeorganized retail groups are having aggressive expansion plans topenetrate the Metros and Tier I cities and establish themselvesamongst rural masses of Tier I and Tier II cities. There lies a challenge for retailers to experiment with newvalue formats along with developing customer loyalties. Sincethere will be demographic shift in population growth,urbanization and migration due to transition in urban householdgrowth and income distribution. The total retail market in the top67 cities in India in 2006 was Rs. 2.55 trillion, which is expectedto increase to Rs. 3.91 trillion in 2011.American mass retailing began in the late 1800s withMontgomery Ward marketing its products through generalmerchandise mail order catalogs, which was very effective at thattime for reaching a largely rural society.In the 1940s, the population began its movement to the suburbs asthe economy shifted from an agricultural base to an industrialized
nation. The first shopping center was opened, which wouldeventually be a significant factor in the decline of downtownRetailing in the 1960s and 70s. JC Penney and Sears began theirnational mass retailing expansion, and the use of credit cards asMajor retail chains began.The 1950s witnessed the reaffirmation of the traditional family.The first planned mall and franchised food restaurant opened. Aspeople continued to flock to the suburbs, the downtown areasbegan to decline. Larger suburban malls were created andanchored by traditional downtown department store merchants.Freeways were expanded and the sales of private automobilesgrew, giving the consumer a wider accessible area in which toshop.The 1960s witnessed the growth of enclosed shopping centers,with department stores anchors and specialty retail chains. Thebaby boomers were teenagers at this point, leading to the growthof juniors-oriented stores and vendors. Women became targetsnot just as mothers or wives as they entered the workforce andconsumers became more demanding in their expectation ofquality and service.According to CRISIL, around 87 percent of the retail opportunitycomes from top 25 cities compromising Metro Delhi, Mumbai,Calcutta, Mini Metros Hyderabad, Chennai, Bangalore, MiniMetros Ahmedabad and Pune, Tier I cities of Kanpur , Nagpur,
Surat and Ludhiana, Tier II cities Coimbatore, Chandigarh,Lucknow, Kochi, Jaipur and Tier III cities Vadodara, Vizag,Indore, Vijaywada, Thiruvananthpuram, Bhopal, Nashik andMadurai.Organized retail has been established in Metros and Tier 1cities, other cities having negligible level of penetration.Old Retail Formats:O Kiranas:
These are food and non-food neighborhood counter stores, alsocalled ‘mom and pop stores’ in western countries. These are bigchunks forming the segregated and unorganized retail segment.These are family-owned and- run retail-outlets picking the goodsfrom wholesalers totaling to around 12 million stores acrossIndia.I Mandis:These are the largest chunk of unorganized retail catering tourban and rural masses. Mandis are physically located at differentregions to enhance convenient shopping. The sellers bring acrossvarious products like eatables, vegetables and fruits, pulses,cereals, spices etc. The most prominent of them are sabzi mandisfound in most of the localities across India.f Village Haats:This form is operating in rural areas where buyers and sellersgather once in a week or month from nearby villages and smalltowns to cater their livelihood and leisure needs. These haats area source of entertainment and socialization among ruralmasses.
Push Cart Vendors:The are categories of vendors roaming from door to door invarious localities selling fruits, vegetables, and other eatables,from which mostly housewives makes purchases that too oncredit. Upcoming Retail Formats
Modern Area (sq. ft) Points of DifferentiationFormatsShopping 60,000-7,00,00 Multi-format, multi-Malls 0 product, multi-brands & Catering lifestyle needs.Hyper marts 50,000-70,000 Multi-verticals.Super marts 5,000-10,000 Single vertical.Departmental 20,000-50,000 Single Vertical.StoresApparel Stores 20,000-25,000 Multi-branded single verticals, focusing on high-end customers.Specialty 2,000-5,000 Multi-branded, singleformat vertical on specific needs of customers.Exclusive 500-5,000 Owned/Franchised singleformats product.
COMPANY PROFILEIntroduction of Vishal Retail Ltd.:Vishal Retail Ltd, a leading player in the Indian retailindustry, is a pioneer in discount retailing and is focused ontier II and III cities in the country. It has a strong presence in
manufacturing and retailing of readymade garments(apparels); retailing of non-apparels and a large variety ofFMCG products. The company has pan-India presence with108 mid-sized hypermarket format stores as on April 28, 2008covering about 2.3mn sq ft retail space area. Vishal issupported by strong manufacturing set-up in Gurgaon,Dehradun and Manesar with a capacity of 5,000 garmentpieces per day in each unit. It also has 29 warehouses locatedin 8 key cities in India covering over 1.1mn sq ft area.Vishal started as a humble one store enterprise in 1986 inKolkata (erstwhile, Calcutta) is today a conglomerateencompassing 117 showrooms in 75 cities / 20 states. India’sfirst hyper-market has also been opened for the Indianconsumer by Vishal. Situated in the national capital Delhi thisstore boasts of the singe largest collection of goods andcommodities sold under one roof in IndiaThe group had a turnover of Rs. 1463.12 million for fiscal2005, under the dynamic leadership of Mr. Ram ChandraAgarwal. The group had of turnover Rs 2884.43 million forfiscal 2006 and Rs. 6026.53 million for fiscal 2007.
The group’s prime focus is on retailing. The Vishal storesoffer affordable family fashion at prices to suit every pocket.The group’s philosophy is integration and towards this endhas initiated backward integration in the field of high fashionby setting up a state of the art manufacturing facility tosupport its retail endeavors.Company Background:Vishal Retail was incorporated on July 23, 2001 as VishalRetail Private Limited as a retailer of ready-made apparels inKolkata in 2001. The company has acquired the business of
M/s The Vishal Garments and M/s Vishal Garments in2001. In 2003, the company has acquired the manufacturingfacilities from Vishal Fashions Private Limited and M/sVishal Apparels.Vishal is one of fastest growing retailing groups in India. Itsoutlets cater to almost all price ranges. The showrooms haveover 70,000 products range which fulfills all your householdneeds, and can be catered to under one roof. It is coveringabout 2059292 lac sq. ft. in 18 states across India. Each storegives you international quality goods and prices hard tomatch. The cost benefits that are derived from the largecentral purchase of goods and services are passed on to theconsumer. The Founders
Mr. Ramchandra Agarwal Mrs. Uma Agarwal Mr. Surendra AgarwalInvestment Rational:Vishal Retail sells ready-made apparels (including its ownbrands) and wide range of household merchandise and other
consumer goods such as footwear, toys, watches, toiletries,grocery items, sports items, crockery, gift and novelties.Vishal is value Retail Company catering to middle and lowermiddle income groups.As Apparel segment contributes 63 percent; it has plans tofocus more on FMCG.To reduce cost, Vishal does in-house production of apparels,Procurement of goods directly procurement of goods from thesmall and medium size vendors and manufacturers.Efficient Logistics and distribution system along withcustomized product mix at stores depending on the regionalcustomer behavior and preferences.Plans of penetrating deeper into Tier 1 and Tier 2 cities tobank upon early mover advantage, where organized retail isyet to make a significant mark, which will help establish andbuild customer loyalty prior to other players.Higher margins of around 5-6 percent in private labels whichaccount for 10 percent of sales in FY07.Future Prospective:Vishal Retail Ltd has declared that the company has opened fournew Showrooms at different localities.
The company has opened a store at Shree Ram Palace, Main DelhiRoad, Meerut. This is the company’s second store in Meerutspreading across an area of 3,600 Sq. ft. (Approx).The company opened a store at Nauchandi Garh Road, Meerutcommonly called Dreemz, Opp. Samrat Heavens, Meerut. This isthe company’s third store in Meerut covering up an area of12,000 Sq. ft.The company has opened a showroom at Enclave, Near BSNLOffice, Ranipur More, Haridwar. This is the company’s first storein Haridwar spreading across an area of 9,545 Sq. ft. (Approx).The company opened its store at Arcade, Plot No. 56-58, DumasRoad, Piplad, Surat. This is company’s second store in Suratspreading across an area of 38,000 Sq. Ft (Approx).Vishal Retail Limited is an India-based retail company. It wasestablished in 1986. It was formerly called Vishal Retail PrivateLimited and changed its name to Vishal Retail Limited in 2006.The company is based in New Delhi, India.As of August 8, 2007, the company operated 53 retail stores,including two stores that are operated by its franchisees. It sellsreadymade clothes, and a variety of household merchandise andother consumer goods, including toys, footwear, toiletries, sportsitems, watches, grocery items, crockery, novelties and gifts.Today, the stock is hovering around Rs 724 on the Bombay StockExchange. Vishal Retail has seen a 52-week high of 812 and lowof Rs 423.
Factors Affecting Retailing in India:Various factors affect retailing in India. However, if one were to Single outthe single biggest different in the development of organized retailing inIndia, it would undoubtly be the cost of real estate. The high cost of realestate in India, in spite of the fact that the per capital income is one of thelowest in the world, makes the country a land of contradictions. In fact soexorbitant is the cost of property in almost every town of India that it makesthe very concept of organized retailing nonviable. Obsolete rental laws havecompounded the situation even further and unless immediate and serioussteps are initiated in this direction it would be fairly long before the benefitsof this concept reach the public at large.The rampant corruption &poor implantations of taxation laws also permit amajority of the unorganized retail fraternity with substantially large turnoverto avoid paying full taxes.There are no single factors but numerous factors which have preventedorganized retailing from taking off as it should have in India. Some of theleading factors that have restricted this growth are as follows. • High real estate costs • Obsolete rental laws
• Lack of finance options• High interest costs• Unplanned cities• Rampant corruption• Exorbitant electricity costs
VISION 2010:The past 2-3 years have seen a number of developments in the retailingbusiness in India. The entries of corporate houses like RPG, Tatas andPiramals have increased the capital availability in the market. Bigger playerslike Shoppers Stop are in a position to take advantage of their sizes indealing with the manufacturers. Despite a slowdown in the economy,customer queues at the stores are not decreasing. Retail sector is bound togrow in the coming years. But how much and in what direction are thequestions that need to be evaluated. Various agencies have made differentestimates of the size of organized market in 2010. The one thing in commonamongst these estimates is that the Indian organized Retailing industry willbe very big in 2010. The status of the industry will depend a lot on externalfactors like Government regulations and real estate prices, besides activitiesof the retailers and demands of the customers. Based on our analysis ofpresent trends, and development of retailing elsewhere, we present ourperspectives and snapshots of organized retailing, as it would exit in 2010.
Major Players of Retailing in India:Retailer Current Format New Formats. Experimenting WithShoppers Department Store Quasi-mallStopEbony Department Store Quasi-mall, smaller outlets, adding food retailCrossword Large bookstore Corner shopsPyramid Department Store Quasi-mall, food retailPantaloon Own brand store HypermarketSubhiksha Supermarket Considering moving to self serviceVitan Supermarket Suburban discount storeFood Food supermarket Hypermarket, Food world expressworldGlobus Department Store Small fashion storesBombay Aggregation of KiranasBazaarE-food Aggregation of KiranasmartMetro Cash and carryMajor Competitors of Vishal Megamartin Lucknow City:1. BIG-BAZAR
Type Subsidiary of Pantaloon GroupFounded 2001Headquarters Mumbai, IndiaIndustry RetailParent Pantaloon GroupOwner Kishore BiyaniSlogan Is se sasta aur accha kahi nahinBig Bazaar is a chain of shopping malls in India currently with 29 outlets,owned by the Pantaloon Group. It works on same the economy model asWal-Mart and has had considerable success in many Indian cities and smalltowns. The idea was pioneered by entrepreneur Kishore Biyani, the head ofPantaloon Retail India Ltd.COMPANY PROFILE OF BIG-BAZAR:Pantaloon Retail (India) Limited, is Indias leading retail company withpresence across multiple lines of businesses. The company owns andmanages multiple retail formats that cater to a wide cross-section of theIndian society and is able to capture almost the entire consumption basket of
the Indian consumer. Headquartered in Mumbai ( Bombay), the companyoperates through 4 million square feet of retail space, has over 140 storesacross 32 cities in India and employs over 14,000 people. The companyregistered a turnover of Rs 2019 crore for FY 2005-06.Pantaloon Retail forayed into modern retail in 1997 with the launching offashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar,a hypermarket chain that combines the look and feel of Indian bazaars, withaspects of modern retail, like choice, convenience and hygiene. This wasfollowed by Food Bazaar, food and grocery chain and launch Central, a firstof its kind seamless mall located in the heart of major Indian cities. Some ofits other formats include, Collection i (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), aLL(fashion apparel for plus-size individuals), Shoe Factory (footwear) and BlueSky (fashion accessories). It has recently launched its etailing venture,The groups subsidiary companies include, Home Solutions Retail India Ltd,Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.The group also has joint venture companies with a number of partnersincluding French retailer Etam group, Lee Cooper, Manipal Healthcare,Talwalkars, Gini & Jony and Liberty Shoes. Planet Retail, a group company
owns the franchisee of international brands like Marks & Spencer,Debenhams, Next and Guess in India.Pantaloon Retail (India) Limited, is Indias leading retail company withpresence across multiple lines of businesses. The company owns andmanages multiple retail formats that cater to a wide cross-section of theIndian society and is able to capture almost the entire consumption basket ofthe Indian consumer. Headquartered in Mumbai ( Bombay), the companyoperates through 4 million square feet of retail space, has over 140 storesacross 32 cities in India and employs over 14,000 people. The companyregistered a turnover of Rs 2019 crore for FY 2005-06.Pantaloon Retail forayed into modern retail in 1997 with the launching offashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar,a hypermarket chain that combines the look and feel of Indian bazaars, withaspects of modern retail, like choice, convenience and hygiene. This wasfollowed by Food Bazaar, food and grocery chain and launch Central, a firstof its kind seamless mall located in the heart of major Indian cities. Some ofits other formats include, Collection i (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), aLL(fashion apparel for plus-size individuals), Shoe Factory (footwear) and BlueSky (fashion accessories). It has recently launched its retailing venture,
The groups subsidiary companies include, Home Solutions Retail India Ltd,Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.The group also has joint venture companies with a number of partnersincluding French retailer Etam group, Lee Cooper, Manipal Healthcare,Talwalkars, Gini & Jony and Liberty Shoes. Planet Retail, a group companyowns the franchisee of international brands like Marks & Spencer,Debenhams, Next and Guess in India.Big Bazaar is not just another hypermarket. It caters to every need of yourfamily. Where Big Bazaar scores over other stores is its value for moneyproposition for the Indian customers. At Big Bazaar, you will definitely getthe best products at the best prices -- that’s what we guarantee. With the everincreasing array of private labels, it has opened the doors into the world offashion and general merchandise including home furnishings, utensils,crockery, cutlery, sports goods and much more at prices that will surpriseyou. And this is just the beginning. Big Bazaar plans to add much more tocomplete your shopping experience.BIG BAZAAR WHOLESALE CLUB:The Big Bazaar Wholesale Club brings to you an opportunity to save in bulkas you buy in bulk. In line with the Big Bazaar tradition of providing best
deals at best prices, the Big Bazaar Wholesale Club provides you bulk dealsat wholesale prices.An extension of Big Bazaar, the Big Bazaar Wholesale Club offers multi-packs and bulk packs of a select range of merchandise at wholesale prices.The merchandise categories range from Food & FMCG to Home Linen andmany more. You will not find any merchandise being sold loose/single unit(except fresh) at a Big Bazaar Wholesale Club.A typical Big Bazaar Wholesale Club is located adjacent to a Big Bazaar inthe form of a separate section. The look and feel of a wholesale market isevident in the stores from the stacking styles and use of a lot of hand writtensignages by chalks on black slates.Taking care of your savings, the Big Bazaar Wholesale Club will ensure thatthe more you buy, the more you save. If you enjoy shopping at wholesalemarkets for your entire family, or you have a huge circle of friends whowould like to get together for their monthly shopping needs or if you are aretailer looking for wholesale offers then the Big Bazaar Wholesale Club isthe place to shop at.
To shop at the Big Bazaar Wholesale Club, you just need to enroll yourselfas a member of the club. If you possess an Anmol card or an ICICI-BigBazaar card then you are automatically enrolled as a member of the BigBazaar Wholesale Club.So buy more as you save more or save more as you buy more at the BigBazaar Wholesale Club.Sales Promotion Strategies By Big Bazaar:
The greatest opportunity for new business is always the existing customerbase. Big Bazaar totally focuses on this policy.Using creative and innovative customer communication is far more likely tobe remembered than the "same old stuff" everyone does.One of your products/services? Making sure they are aware of your fullrange of capabilities can be a simple way to get new orders.Even the most dedicated sales person may not call at the appropriate time. Aplanned approach to customer communication will be most effective.Customers like to be appreciated, its human nature. So look carefully at howyou can motivate your customers and build their trust.If you are notpromoting your products or services you can be sure your competitors are.Look at things you can leverage to generate customer interest and buyingdecisions2-FUTURE BAZAAR :
FUTURE BAZAAR is owned and operated by Future Bazaar India Ltd., asubsidiary of Pantaloon Retail (India) Limited.As part of India’s largest retail chain, we enjoy the benefits of buying in bulkfor the entire group and keep our margins low, so you get a great range ofproducts at great prices. We pass these benefits on to you, so our prices arethe lowest we can make – every day.About our parent company:Pantaloon Retail (India) Limited led by Kishore Biyani is the countryslargest retailer. It owns and operates multiple retail formats includingPantaloons, Big Bazaar, Food Bazaar, Central, E-Zone, Fashion Station,Depot and many others. Headquartered in Mumbai, Pantaloon Retail is listedon BSE and NSE with a turnover of Rs 2,018 croresPantaloon Retail was selected as the Best of Best Retailers in Asia by RetailAsia-Pacific Big Bazaar was awarded the CNBC-Awaaz Consumer Awardsin 2006 and the Readers Digest Platinum Brand Award 2006.The Future Bazaar promiseManufacturer’s warranties on all productsFuture Bazaar sells only original products from authorized dealers; so allapplicable products carry the original manufacturer’s warranty. To service
any product purchased at Future Bazaar, please visit the authorized servicecenter of the manufacturer. The invoice accompanying the product is yourwarranty document, so please preserve it.Guaranteed Delivery:We guarantee to deliver the exact product you selected, without defects. Incase you have received a different product, or if the product was damaged intransit, please contact us within the stipulated time period and we will ensurethat we replace it or refund you for it.Please note that delivery times vary according to products. Although wedeliver goods within the committed time period, but there could beoccasional delays. We will contact you, in case deliveries are expected to getdelayed.Real Customer Support:Our customer support is manned by real employees, not computers orcontract call centre personnel. Be assured that when you call us that you aretalking to someone who can take decisions and resolve your problems.Secure Payments:
We are committed to ensuring that no payment misuse happens, so we workwith banks and payment gateways to ensure that your information isprotected. Payments are protected both by us and by the policies of yourbank, and the chances of fraud in these channels are actually very low.FutureBazaar openly publishes its office addresses and is part of India’slargest retail company with a presence all over India – so you know how tocontact us in person, if required.Product range of Big Bazaar:
1-Apparel and Accessories for Men, Women and Children2-Baby Accessories3-Cosmetics.4-Crockery.5-Dress Materials Suiting & Shirting.6-Electrical Accessories.7-Electronics.8-Footwear Toys.9-Home Textiles.10-Home Needs.11-Household Appliances.12-Household Plastics.13Hardware.14-Home Decor Luggage.15-Linens.16-Sarees.17-Stationery.18-Utensils & Utilities.2. SHOPPERS’ STOP:
The foundation of Shoppers Stop was laid on October 27, 1991 by the K.Raheja Corp. group of companies. Being amongst Indias biggest hospitalityand real estate players, the Group crossed yet another milestone with itslifestyle venture - Shoppers Stop.From its inception, Shoppers Stop has progressed from being a single brandshop to becoming a Fashion & Lifestyle store for the family. Today,Shoppers Stop is a household name, known for its superior quality products,services and above all, for providing a complete shopping experience.With an immense amount of expertise and credibility, Shoppers’ Stop hasbecome the highest benchmark for the Indian retail industry. In fact, thecompany’s continuing expansion plans aim to help Shoppers’ Stop meet thechallenges of the retail industry in an even better manner than it does today.Vision & Values Of Shoppers’ StopVision
To be a global retailer in India and maintain its No. 1 position in the Indianmarket in the Department Store category.ValuesThe following are the values that help us in achieving our mission andvision: • We shall not take what is not ours. • The Obligation to dissent (against a viewpoint that is not acceptable). • We shall have an environment conducive to openness. • We shall believe in innovation. • We shall have an environment conducive to development. • We shall have the willingness to apologise and/or forgive. • We shall respect our customers rights.
• The value of trust • We shall be fairMilestones-Year & Events:1991 Launched first Shoppers’ Stop store selling men’s wear at Andheri(Mumbai)1992 Ladies apparel section added Children and non - apparel accessoriessections addedDisney carnival organized, with official Disney characters (Mickey,Minnie, Donald and Goofy) participating, In House Retail ManagementTrainee Programme started1994 First Citizens Loyalty programme launched1995 Second store opened (Bangalore)
1996 Festival of Britain celebrated in association with the CommercialDepartment of the British Consulate1997 Shopper’s Stop as a body corporate was incorporated on June 16.Festival of Indian tradition and culture, ‘Parikrama’, launched Co-brandedcredit card launched for FCC members in partnership with HSBC.1998 Third store opened (Hyderabad), the then largest with 72,287 sq. ft ofretail area SSL co-opted as India’s only member to the IntercontinentalGroup of Department Stores (IDGS)1999 Implemented JDA Retail ERP (a global leader in retail ERP packages)Fourth and Fifth stores launched (Jaipur & Delhi)2000 Sixth & Seventh stores opened (Chennai & Chembur,Mumbai) Placedequity with external investors to raise Rs 600 mnAcquired Crossword, one of India’s leading book retailing chain, fromIndia Book House in partnership with ICICI Trusteeship Services Limited(A/c ICICI Emerging Sectors Fund)2001 Implemented Warehousing Module of JDA, Auto Replenishment andAuto Purchase Order system and business to business connectivity
Eight and Ninth store launched (Pune & Bandra, Mumbai)Profit Linked Reward System (PLRS) introduced for all employees2002 Tenth store opened (Kandivali, Mumbai)2003 Received various industry awards from CMAI (including BestRetailer of the Year) and from Nasscom (Best IT Practice in RetailCategory)Signed Austin Reed licence for men’s outerwear for India exclusively.Three stores launched taking the total number of stores to 13 (Mulund,Mumbai, Gurgaon and Kolkata)2004 Fourteenth, fifteenth and sixteenth stores launched in February 2004(Malad, Mumbai), June 2004 (Salt Lake City, Kolkatta) and October 2004(Bangeratta Bangalore) respectively taking total retail area to 752,848 sq ft.Received Superbrand status for 2003 and 2004Received Images Retail award for the “Most favoured retail destination ofthe year” – September, 2004.Received the “Organization With Innovative HR Practices” award at theHR Excellence Awards organized by Mid - Day, Big Break & Daks –November 2004.
Received Top retailer 2004 India Bronze award given by Retail Asia-Pacific Top 500 awards.2005 Seventeenth store launched in April 2005 at Nucleus Mall, Pune.Eighteenth and Nineteenth stores launched in May 2005 at Dynamix Mall,Juhu Mumbai and at Bangalore.The Company makes an Initial Public Offer of 69,46,033 Equity Shares ofRs.10 each at a premium of Rs.228 per share aggregating to Rs. 1653.16million. The issue received overwhelming response with a subscription ofmore than 17 times.Twentieth Store launched at ‘Shipra Mall’, Ghaziabad, in June 2005.The Company acquired balance 49% of the Equity Share Capital ofCrossword Bookstores Limited from ICICI Emerging Sectors Fund, makingCrossword its Wholly Owned Subsidiary Company.2006 Launch of BRIO at Bangalore. BRIO is a stylish, new world ofgourmet coffee, specialty tea and delectable European bistro fare whichpromises to offer something which all the coffee connoisseurs across thecountry have never experienced beforeLaunch of mothercare at the Juhu & Bandra Stores. ‘mothercare’ is theleading specialist retailer for mothers-to-be and parents of young children,
offering the widest range of clothing, hardware and toys for the pre-schoolchild, in the UK internationally.Launch of HyperCITY at Mumbai. We made a foray into food and generalmerchandise retailing through Hypercity, our 124,000 sq. ft hypermarket.The product offering includes fresh fruits and vegetables, groceries,apparels, electronic appliances etc – all under one roof.Shoppers Stop Limited is appointed as “Master Franchisee” of CrosswordBookstores Limited for conducting the business of retail book stores underthe trademark “Crossword” at all existing stores (Crossword Owned Stores)wherever permissible and excluding stores which are operated byCrossword’s existing franchisees.Launch of the second HomeStop at Malad, Mumbai. The store is approx.49,000 sq. ft. on a single floor with displays of bedrooms, living rooms, amodular kitchen and centre podium to exhibit lifestyle displays in a liveatmosphere. The store has an array of brands in kitchenware and bed linenfrom India and abroad.Launch of our first store in the city of Nawabs, Lucknow. Measuringapprox. 53,000 sq. ft. spread over three floors, it is the anchor store of theE-City Fun Republic Mall at Gomti Nagar.
2007 Shopper’s Stop Limited has forays into airport retailing through a jointventure with The Nuance Group AG of Switzerland, which is the world’sleading airport retailer. The company bags concessions for retail operationsat the Terminal 1B – Departure of the Mumbai Domestic Airport and theGreenfield Bangalore International Airport for both domestic andinternational terminals.Shopper’s Stop Ltd. and Hypercity Retail India Pvt Ltd. sign a Memorandumof Understanding to enter into a franchise arrangement for the ARGOSformats of catalogue and internet retailing, with Home RetailCorporate Governance:The Company remains committed to the concept of good CorporateGovernance practices in all its activities to ensure the ultimate goal ofmaking the Company a value driven organization.Its philosophy on the code of Corporate Governance is: • To ensure adequate control systems to enable the Board to efficiently conduct the business and discharge its responsibilities to shareholders. • To ensure that the decision making process is fair and transparent. • To ensure fullest involvement and commitment of the management for maximization of shareholders value.
• To imbibe the corporate values in the employees and encourage them in their conduct. • To ensure the Company follows the globally recognized corporate governance practices.The Board of Directors consists of seven Non Executive Directors and twoExecutive Director viz; Managing Director & Executive Director & CEO ofthe Company. All key decisions are taken only after detailed deliberationsand discussions by the Board. The Board acts with autonomy andindependence in exercising strategic decision making process anddischarging its fiduciary responsibilities.The Board members are presented with all the relevant information on vitalmatters affecting the working of the Company as well as those which requiredeliberations at the highest level. It is ensured that the information, asrequired under Annexure I to the provisions of Clause 49 of the ListingAgreement is being made available to the Board Members.The size and composition of the Board conforms to the requirements of theCorporate Governance norms as stipulated under the provisions of theListing Agreement entered into with the Stock Exchanges.
The Audit Committee consists of only non-executive directors, with themajority being independent directors. Terms of Reference of the AuditCommittee are as per Section 292A of the Companies Act, 1956 and theguidelines as set out in the listing agreement entered with the StockExchanges.As per the recommendation of the Compensation /Remuneration Committee,the Board and the shareholders approves the remuneration payable to theManaging Director & Executive Director & CEO of the Company. TheCommittee also formulates the Employee Stock Option Plans (ESOP).BRAND DIRECTORY OF SHOPPER’S STOPMen’s: • Austin Reed • Van Heusen • Arrow • Louis Philippe • Indigo Nation • Scullers • Zodiac • Excallibur • Allen Solly • Black Berry’s • Shapes • Easies
• Park Avenue • VF • Stop • Satya paul • Givo • Theme • Giovani • Life • Fried Water • Mufti • Tuscan Verve • Weekender • Tantra • SpykarWomens: • Aliza Donatein • Expozay • Black Berry’s • Allen Solly • Free Look • Wills Sport • Weekender • Union Bay • One • Indian Earth • Life • Tangle • Upper Class • Vibe
• Kraus • Biba • Ishvarah • Indifeel • Urban Trio • Affairs • Rang • Kashish • Haute Curry • Sanna • Raviver • Rocky S Jeans • Triumph • Enamor • Vanity FairKids: • Stop • Little Kangaroo • Disney Babies • Kids Studio • Winnie the Pooh • Zero • Value M • Frills and Flowers • Weekender • Gini & Jony • Lee Youth • Free Look • Pepe • Bunny Kids
3- Globus Retail:About the Company:Strong, Competitive, Innovative, AdaptiveLaunched in January 1998, Globus is a part of the RajanRaheja group. The company opened its first store in 1999 atIndore followed by the launch of its second store in Chennai(T-Nagar). Soon to follow was another in Chennai located inAdyar. The flagship store in Mumbai was opened on 1stNovember 2001 followed by a swanky new outlet in New Delhiin South Extension Part-2.The sixth & seventh stores are in Bangalore in Koramangala &Richmond Road respectively. The Eighth store in Ghaziabad atShipra Mall followed by the ninth, tenth and eleventh inKalaghoda, Mumbai, Thane and Ghaziabad, twelfth store atKanpur and thirteenth store in Ahmedabad & fourteenth storein Lucknow.As of May 2008, Globus has opened its 24th Storein Nagpur and the journey continues.
Mission: Achieve customer delight by offering quality products and services through a process of continuous innovation and adaptation. Build a dynamic team of committed and passionate employees through sustained learning and grooming. Develop mutually beneficial relationships with our business partners. Employ cost-effective processes and thereby create a strong organization. Infrastructure:Globus Stores Pvt. Ltd. was formed to contribute in therevolution sweeping the retail industry. Globus promises to bringabout a perceptible change in the way apparel and lifestyleretailing has been carried so far.Towards this end, modern international technology has beenbrought in and heavy investments have been made in investingand acquiring the best, tried and tested processes and proceduresof operation. • Research & Design • Production & Merchandising • Marketing & Brand Development • Service • Human resources
Future:Globus combines state of art international informationtechnology, the highest quality human resources and sustainedfinancial commitment to realize the long term vision. We arerapidly expanding and the target is to have an additional 100fashion stores by the end of 2012.Product Ranges:Dress Materials Suiting & ShirtingElectrical Accessories.Electronics EquipmentsFootwear Toys.Home Textiles.Home Needs goods.Household Appliances.Household Plastics.Hardware.Home Decor Luggage.Linens.Sarees.Stationery.
Products Offered by Vishal Megamart:HOME FURNISHING:
Drawing RoomBedroomDoor MatBed SheetCarpetPillowsCurtainsPillow CoverKitchenBathroomApronBath MatsKitchen NapkinTowel Gift Sets
We can encash brand image of Vishal Retail Ltd. to sell its new product. It sells product at cheaper prices. Garment sector of the Vishal is much more superior to other retail stores. It offers wide range of products under one roof. It provides good after-sale service. It is the only store in Lucknow where you can exchange the goods after purchase. (On selected items). The Vishal Mega Mart is situated at the big market place. It segments on middle and lower middle income groups, which constitute majority of the population in India. It has welled design store & well organized store.WEAKNESSES:
Absolutely no brand awareness for the product. (Z-Line). Need to incorporate many new features as per customer requirement. Lack of proper extraction of work from staff. Need to include more varieties of the same item. Need to provide more offers/ discounts on FMCG. Here the perception of the people is quite low, because from my consumer behavior survey I have found out that most of respondents think that Vishal Mega Mart is not providing good offers/discounts on FMCG in comparison of Big bazaar. Need to improve store layout according to customer facility. People are not so modern in Lucknow and their perceptions are quite advance.OPPORTUNITIES:
No other big competitor in that area. To increase the customer satisfaction by providing different variety of products. Z-line (Manufacturing unit of Vishal) if we create the brand image of it. It will get additional sales in the future. Coming era is of knowledge and information if we sell our manufacturing unit product through internet so we can create its brand image + additional sales in future. There is a boom of retail in future according to current scenario. If Vishal creates brand image of its Z-line product, so it can give direct competition to the other branded products in future.THREATS:
Big bazaar, Spencer, Reliance and Globus are the main competitors. Overseas group entering the market. Increased competition in the domestic market.
STRENGTHS OF COMPETITORS: The Big Bazaar is situated at the Saharaganj mall, Lucknow. It has welled design store of 70,000sqft and well organized store. The Spencer is situated at Nishalganj and different other public locations. It segments all age groups and income groups. Additional space for the display. Competitors provide good salary to the staff. Large number of staff working in the competitors’ organization. It gets credit from MNC’s for the extended period of time. Regular advertising in newspaper, radio, and TV for reminding the customers about its stock. Good space for parking of the competitors’ at different locations of the retail outlets.
Research Methodology:Research methodology is the way to systematically solve the researchproblem .It may be under stood as a science of studying to how research isdone scientifically. In it we study the various steps that are generally adoptedby a researcher in studying his research problem along with the logic behindthem.In research methodology we not only talk of the research methods but alsoconsider the logic behind the methods we use in the content of our researchstudy and explain why we are using a particular method and why we are notusing others so that research results are capable of being evaluated either bythe researcher himself or by others.Secondary data are those which have been collected by someone else andwhich have already been passed through the statistical process. There areseveral ways by which secondary data can be classified.
Survey Method:The survey is a non-experimental, descriptive research method. Surveys canbe useful when a researcher wants to collect data on phenomena that cannotbe directly observed (such as opinions on library services). Surveys are usedextensively in library and information science to assess attitudes andcharacteristics of a wide range of subjects, from the quality of user-systeminterfaces to library user reading habits. In a survey, researchers sample apopulation. Basha and Harter (1980) state that "a population is any set ofpersons or objects that possesses at least one common characteristic."Examples of populations that might be studied are 1) all 1999 graduates ofGSLIS at the University of Texas, or 2) all the users of UT GeneralLibraries. Since populations can be quite large, researchers directly questiononly a sample (i.e. a small proportion) of the population
Types of Surveys:Surveys can be divided into two broad categories: the questionnaire and theinterview. Questionnaires are usually paper-and-pencil instruments that therespondent completes. Interviews are completed by the interviewer based onthe respondent says. Sometimes, its hard to tell the difference between aquestionnaire and an interview. For instance, some people think thatquestionnaires always ask short closed-ended questions while interviewsalways ask broad open-ended ones. But you will see questionnaires withopen-ended questions (although they do tend to be shorter than in interviews)and there will often be a series of closed-ended questions asked in aninterview.Survey research has changed dramatically in the last ten years. We haveautomated telephone surveys that use random dialing methods. There arecomputerized kiosks in public places that allows people to ask for input. Awhole new variation of group interview has evolved as focus groupmethodology. Increasingly, survey research is tightly integrated with thedelivery of service. Your hotel room has a survey on the desk. Your waiterpresents a short customer satisfaction survey with your check. You get a callfor an interview several days after your last call to a computer company for
technical assistance. Youre asked to complete a short survey when you visita web site. Here, Ill describe the major types of questionnaires andinterviews, keeping in mind that technology is leading to rapid evolution ofmethods. Well discuss the relative advantages and disadvantages of thesedifferent survey types in Advantages and Disadvantages of Survey MethodsQuestionnaires:When most people think of questionnaires, they think of the mail survey. Allof us have, at one time or another, received a questionnaire in the mail. Thereare many advantages to mail surveys. They are relatively inexpensive toadminister. You can send the exact same instrument to a wide number ofpeople. They allow the respondent to fill it out at their own convenience. Butthere are some disadvantages as well. Response rates from mail surveys areoften very low. And, mail questionnaires are not the best vehicles for askingfor detailed written responses.A second type is the group administered questionnaire. A sample ofrespondents is brought together and asked to respond to a structuredsequence of questions. Traditionally, questionnaires were administered ingroup settings for convenience. The researcher could give the questionnaireto those who were present and be fairly sure that there would be a high
response rate. If the respondents were unclear about the meaning of aquestion they could ask for clarification. And, there were oftenorganizational settings where it was relatively easy to assemble the group (ina company or business, for instance).Whats the difference between a group administered questionnaire and agroup interview or focus group? In the group administered questionnaire,each respondent is handed an instrument and asked to complete it while inthe room. Each respondent completes an instrument. In the group interviewor focus group, the interviewer facilitates the session. People work as agroup, listening to each others comments and answering the questions.Someone takes notes for the entire group -- people dont complete aninterview individually.Survey Interviews:Interviews are a far more personal form of research than questionnaires. Inthe personal interview, the interviewer works directly with the respondent.Unlike with mail surveys, the interviewer has the opportunity to probe or askfollow-up questions. And, interviews are generally easier for the respondent,especially if what is sought is opinions or impressions. Interviews can bevery time consuming and they are resource intensive. The interviewer is
considered a part of the measurement instrument and interviewers have to bewell trained in how to respond to any contingency.Almost everyone is familiar with the telephone interview. Telephoneinterviews enable a researcher to gather information rapidly. Most of themajor public opinion polls that are reported were based on telephoneinterviews. Like personal interviews, they allow for some personal contactbetween the interviewer and the respondent. And, they allow the interviewerto ask follow-up questions. But they also have some major disadvantages.Many people dont have publicly-listed telephone numbers. Some dont havetelephones. People often dont like the intrusion of a call to their homes. And,telephone interviews have to be relatively short or people will feel imposedupon.Constructing the Survey:Constructing a survey instrument is an art in itself. There are numerous smalldecisions that must be made -- about content, wording, format, placement --that can have important consequences for your entire study. While theres noone perfect way to accomplish this job, we do have lots of advice to offerthat might increase your chances of developing a better final product.First of all youll learn about the two major types of surveys that exist, thequestionnaire and the interview and the different varieties of each. Then
youll see how to write questions for surveys. There are three areas involvedin writing a question: • determining the question content, scope and purpose • choosing the response format that you use for collecting information from the respondent • figuring out how to word the question to get at the issue of interestFinally, once you have your questions written, there is the issue of how bestto place them in your survey.Youll see that although there are many aspects of survey construction thatare just common sense, if you are not careful you can make critical errorsthat have dramatic effects on your results.
Details Of Research:Method Used: Survey methodType Of survey: InterviewInstrument used: QuestionnaireSample size: 200Data used: Both Primary & SecondaryData Collection:Data Collection is an important aspect of any type of research study.Inaccurate data collection can impact the results of a study and ultimatelylead to invalid results.Data collection methods for impact evaluation vary along a continuum. Atthe one end of this continuum are quantatative methods and at the other endof the continuum are Qualitative methods for data collection .
Data collection methodsThe Quantitative data collection methods, rely on random sampling andstructured data collection instruments that fit diverse experiences intopredetermined response categories. They produce results that are easy tosummarize, compare, and generalize. Quantitative research is concerned withtesting hypotheses derived from theory and/or being able to estimate the sizeof a phenomenon of interest. Depending on the research question,participants may be randomly assigned to different treatments. If this is notfeasible, the researcher may collect data on participant and situationalcharacteristics in order to statistically control for their influence on thedependent, or outcome, variable. If the intent is to generalize from theresearch participants to a larger population, the researcher will employprobability sampling to select participants. Typical quantitative datagathering strategies include: • Experiments/clinical trials. • Observing and recording well-defined events (e.g., counting the number of patients waiting in emergency at specified times of the day). • Obtaining relevant data from management information systems.
Primary Data Collection:The considerable and diverse array of primary data methods includes, e.g.,true experiments such as randomized controlled trials (RCTs) and othercontrolled trials; other prospective but uncontrolled trials; observationalstudies such as case-control, cross-sectional studies, and surveillance studies;and simpler designs such as case series and single case reports or anecdotes.These methods can be described and categorized in terms of multipleattributes or dimensions, such as whether they are prospective orretrospective, interventional or observational, controlled or uncontrolled, andother attributes noted below. Some of these methods have alternative names,and many studies employ nearly limitless combinations of these attributes • Primary data used in this project is mainly collected through questionnaire which has been taken with the help of sample size which has been taken and after that the entire data has been manipulated.
Secondary data:Secondary data originally collected for a different study, used again for anew research question. o Service District Statistics including basic client counts, attributes, demographics, social conditions and lots of program information (analogous to public schools and school teachers, who constitute some of the most accountable of public servants). o Other Social and Economic Indicators, Consumer Price Index, unemployment figures, inflation indicators, Income Figures, etc. o Resource Inventories and other needs assessments o Opinion Polls taken by others o Budgets • The secondary data used in this project is : through internet through books of retail company profiles of big bazaar and shopper’s stop
QUESTIONNAIRE ANALYSIS: Q1. How often do you visit the store? a. Once in a week. b. Twice in a week. c. Once in a month. d. Twice in a month. e. Once in a year.200 once in a week175150 twice in a week125 once in a100 88 month 75 twice in a 50 40 40 month 25 22 once in a year 10 0 Visit of respondents in the store Result: From the survey it is concluded that maximum visit of respondents are twice in a month.
Q2. Which section of the store does you like the most? a. Food mart. b. Home ware. c. Household. d. Medimart. e. Kids. f. Jewel mart.200 Foodmart175150 Homeware125 Household100 84 Medimart7550 48 Kids 4025 18 10 Jewelmart 0 0 Divisions Result: As per the responses about 84 respondents like the food mart section.
Q3- Are you satisfied with the customer service offered? a. Good. b. Average. c. To an extent. d. Need to be improved.200 Good175150 Average125100 84 To an extent75 6050 30 2625 Need to be improved. 0 Customer service offered Result: From the survey it is concluded that maximum number of respondents are assuming that the customer service offered here is average.
Q4- Main reason for coming to the store? 1. Value for money. 2. Discounts. 3. Product range offered. 4. Nearby. 5. Saving of time. 6. Other.200 Value for175 money Discounts150125 Product range offered100 Nearby75 70 45 Saving of time50 3525 20 27 Other 3 0 Reasons for coming to the store Result: From the survey it is concluded that maximum number of respondents are coming to the store because it is near to their home.
Q5- Distance covered while coming to the store? a. 0-5 kms. b. 5-10 kms. c. 10-15 kms. d. More than 15 kms.200 0-5 kms175150 5-10 kms125100 92 10-15 kms75 6550 30 More than 1525 13 kms 0 Distance preferred (in kms) Result: As per responses about 90 respondents stay 0-5 kms from the store.
Q7- Preferred timing of coming to the store? a. 10:00-11:59 a.m. b. 12:00-5:59 p.m. c. After 6:00p.m. Evening after 6:00p.m. 20 50 Afternoon 12:00- 5:59p.m. 130 Morning 10:00- 11:59amResult: As per responses about 110 respondents preferred tocome in store in the evening after 6:00 p.m.Question No.8-
Have you heard about Z-Line? a. Yes. b. No. YES 12% NO 88%There is absolutely no brand awareness for Z-line (Vishalmanufacturing unit product) Vishal Retail Ltd. must do measuresto promote its brand, make ads both in print and electronic media.Making stalls in corporate melas like trade fair can help. Question No.9-
Apart from Vishal where do you shop for daily items? a. Big bazaar. b. Globus. c. Shopper’s Stop. d. Subiksha. e. Local markets. f. Other.200 Big bazaar175150 Reliance125 120 Spencer100 Subiksha7550 42 Local markets25 10 14 5 9 Other. 0 Retail Stores Result: As per responses about 120 respondents preferred local markets apart from Vishal. Q10- What medium of advertisement do you respond to?
a. Magazine. b. T.V (local cable channel). c. Local newspaper. d. Radio. e. Relatives/ Friends. f. Visuals. g. Other.200 Magazine175 T.V.150125 Local newspaper100 94 Radio 75 50 45 Relatives/ 29 26 Friends 25 Visuals 6 0 0 0 Ways of informing about Other. VishalResult: From the survey it is concluded that maximum number ofrespondents knows about Vishal through local newspaper.Q11- What sort of services would you will like the most gorthe betterment of the different stores?
a. More variety. b. Discount on branded products. c. Discount on FMCG. d. Better Customer service.200 More variety175150125 Discount on Branded100 Products 78 Discount on 75 56 FMCG 50 36 30 25 Better customer 0 service. Suggestions Result: As per responses about 75 respondents preferred discounts on F.M.C.G. Q11- How much rating will you give to this store?
a. Average. b. Very Good c. Excellent d. Can’t Say rating of the retail store 14% 23% excellent very good average 29% cant say 34%Result: As per responses about 23% respondents said that itsrating is execellent.
SUGGESTIONS: Company need to spend a lot on advertising and promotion to create brand image of its product. Make frequent advertisements in both print and electronic media. Making stalls in corporate melas like trade fair, maybe beneficial to create brand image of its product. Need to provide additional offers and discounts as per customer requirements. Need to include varieties of similar item. Provide more discounts on FMCG. Provide better customer service. Maintained proper display to create impulse. (It is assumed that near about 70% sales comes from impulse marketing and if proper display is not maintained impulse cannot be created). Better if we provide filtered information about Vishal.
Conclusion:After completing this research we come to know that Only Big Bazaar isahead of Vishal Stop because of its prime Location and higher product range.Shoppers’ Stop is new in Lucknow as compared to Vishal Megamart and it isslowly covering its market. But there are few areas where these malls needsamendments and these suggestions are mentioned in these malls. Advertisingis an important factor of getting sales promotion and Vishal Megamart isahead of Shoppers’ Stop in that case, but Product Quality of Shoppers’ Stopis better than Big Bazaar. Product Range of Shoppers’ Stop is better than thatof Big Bazaar.Overall Vishal Megamart is ahead of Stopers’ Stop and Globus Retail,but just little behind to Big-Bazaar.
LIMITATIONS OF THE STUDY: Sometime respondents are not taking interest in such type of surveys therefore there is chance that they might be giving wrong information. The respondents are free from all barriers so he/she can give his/her opinion which may not be true in many occasions. The staff of the Vishal only provides/ communicates the merits of its products.