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Project report on retail management .

  1. 1. Project report on retail industry. On Comparative analysis of Submitted to: Submitted by: Ravindra Arya sir Chandan Kumar Singh PGDM (2nd year) Proff. CMD Modinagar, Ghaziabad Centre for management development 1
  2. 2. CONTENTS S.No. 1 Topic Page no. Executive Summary 2 2 Overviews of industry 3 3 Retail meaning 4 Industry structure 6 5 Company profile 7-29 6 Objective of study 30 7 Area under field research 8 Facts under study in different formats 31-33 9 Some international and Indian retailers 34-48 10 Research methodology 49-54 11 Conclusions 55 12 Questionnaires 56-64 13 Suggestions 65 14 Limitations 64 Bibliography 66 15 4-5 31 2
  3. 3. Executive Summary India is a undergoing a retail revolution from the unorganized to the organized sector. There are now modern retail formate such as – hypermarket, supermarket and malls. several international companies such as Wal-Mart, Carrefour and Tesco are planning their entry and establishment into the Indian market while several domestic companies are setting up their retail setups, exclusive showrooms and large formate stores such as Reliance, Vishal,Tata and the whole concept of shopping has altered in terms of formate and consumer buying behavior , ushering in a revolution in shopping in India. These trends indicates that retailing, as an industry has come into its own . According to a study by confederation of Indian industry organized retail sales in India were a mere Rs.135 billion in 2012 but today with over 15 million outlets that provide employment to over 74 million people (7%of the population) the size of the retail industry stands at USD 350 billion and it is expected to grow a compounded 30% over the next 5 years. Retailing is an important infrastructure perquisite for modernizing India and can facilitate rapid economic growth . Modernization of all retail services would enable efficient delivery of goods and value added services to the consumer making a high contribution to the gross domestic product. This project focus on taking an in depth analysis of retail scenario and consumer trends as they are emerging and identify the various retailing models that would work, in the Indian retail market. The analysis is done by looking at global retail trends vis-à-vis the ones in India . The Current state of Indianretail industry characteristics and economics drivers of change, to understand the consumer buying behavior and what it foretails about the nature of the industry . To predict the kind of retail models that would work in India besides analyzing the existing ones , the attempt has been to predict to product potentially promising formats. 3
  4. 4. Introduction Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. 4
  5. 5. Retail Meaning Retail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use. In a layman‘s language, retailing is nothing but transaction of goods between the seller and the end user as a single unit (piece) or in small quantities to satisfy the needs of the individual and for his direct consumption. Example- Prashant wanted to purchase a mobile handset. He went to the nearby store and purchased one for himself. In the above case, Prashat is the buyer who went to a fixed location (in this case the nearby store). He purchased a mobile handset (Quantity - One) to be used by him. An example of retail. The retailers purchase goods in bulk quantities (huge numbers) to be sold to the end-users either directly from the manufacturers or through a wholesaler. The Supply chain Manufacturers Wholesaler Retailer Customer/End consumer 5
  6. 6.  Manufacturers - Manufacturers are the ones who are involved in production of goods with the help of machines, labour and raw materials.  Wholesaler - The wholesaler is the one who purchases the goods from the manufacturers and sells to the retailers in large numbers but at a lower price. A wholesaler never sells goods directly to the end users.  Retailer - A retailer comes at the end of the supply chain who sells the products in small quantities to the end users as per their requirement and need. The end user goes to the retailer to buy the goods (products) in small quantities to satisfy his needs and demands. The complete process is also called as Shopping. 6
  7. 7. Industry structure The organizational structure of a retail store will vary by the size and type of the business. Most tasks involved with operating a retail business will be the same. However, small or independent retail stores may combine many sectors together under one division, while larger stores create various divisions for each particular function along with many layers of management. For example, the small specialty shop may have all of its employees under one category called Store Operations. A large department store may have a complete staff consisting of a manager, assistant manager and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each additional department. In order to define the store's organization, start by specifying all tasks that need to be performed. Then divide those responsibilities among various individuals or channels. Group and classify each task into a job with a title and description. The final step is to develop an organizational chart. Retailing Structure The following is a brief outline of some of the divisions in a retail organization. Owner/CEO or President Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention Marketing: Visual Displays, Public Relations, Promotions Merchandising: Planning, Buying, Inventory Control Human Relations: Personnel, Training Finance: Accounting, Credit Technology: Information Technology As the store grows and the retail business evolves, the dynamics of the organization's structure will change too. Therefore it is paramount to redesign the store's organizational chart to support the decision-making, collaboration and leadership capabilities that are essential during and after a growth period. 7
  8. 8. Company profile Introduction of Vishal Retail ltd Vishal retail Ltd is the largest market retail chain in India with more than 175 stores in 24 states & 104 cities acrossIndia. Retailing, in commerce, consists of buying goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, & then selling individual items or small quantities to the general public or end user customers, usually in a shop, also called stores. Retailers are at the end of supply chain that link manufacturers, wholesalers, other suppliers and the final consumers. Marketers see retailing as a part of their overall distribution strategy. Manufactured goods are worthless until they pass through acid test of retail distribution . The Vishal brand is known for great modern style for men, women and children. Vishal offers high level fashion styling. Since 1986, our name has been synonymous with quality, value and fashion integrity. We offer an unparalleled collection of clothes for the entire family. Each garment is hand selected for quality and contemporary styling. Vishal manufactures majority of its own garments and out sources some under its direct quality supervision. This enables us to offer the lowest possible and most reasonable price. Vishal Mega Mart stores offer affordable family fashion at prices to suit every pocket. The outlet retails Garments, Footwear, Home Furnishing, Household, Food & Non-Food Products, Ladies Accessories, Lifestyle, Hardware, Car Accessories, Techno & Electricals, 8
  9. 9. Utensils, Sports & Fitness, Stationery, Toys & Games, Travel Accessories, Furniture, Sanitary Ware, Crockery, Consumer Durables, FMCG, etc. in almost all price ranges. What started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a conglomerate encompassing 183 showrooms in 24 states / 110 cities .India‘s first hyper-market has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this store boasts of the single largest collection of goods and commodities sold under one roof in India. Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 29, 90, 146 ssq. ft. in 24 states across India. Each store gives you international quality goods and prices hard to match. The cost benefits that is derived from the large central purchase of goods and services is passed on to the consumer . Vishal mart has been fortunate in having very eminent and honest men of vision and great talent as Board of Directors and Executives. The ever increasing profit figures of the Vishal depict the efficiency of the management. Discount and several other developments in and around the organized retail trade (the 3% of the total retail trade) indicate the changing dynamics of the sector and the way the business will take shape in the years to come. For Ram Chandra Agarwal, MD, Vishal Mega mart, the discount war is just a component of the overall evolution process initiated by retailers. ―We are concentrating on buying in volumes through cash purchase which give us an edge. Ultimately, the convenience, value and variety given to customers will make a difference,‖ he says. Be it managing a supply chain, grappling with hundreds of suppliers or handling store inventory — the modern retail industry is a big affair. Then follow other aspects like positioning of the brand with apt pricing, packaging and retail experience, understanding the customers, dealing with partners such as suppliers, mall developers and franchisees. However, the biggest challenge is saving bucks either through margins or rentals, so that there is profit even after the discounts. Though it reads as a complete win-win situation, it is surely a tough target to be achieved. 9
  10. 10. ―Though organized retail is at its nascent stage, once the brands are established, the FMCGs will have to deliver to their expectations. Moreover, if these FMCGs buckle up with retailers, the country will see a slew of private labels coming in,‖ says Sahni. He adds, ―These private labels will gradually end up carving a niche for themselves even in the unexplored territories, including rural India. Minimal advertising or promotional costs will further increase the margins.‖ The Retailer‘s Association of India (RAI), an association of retailers like Pantaloons, Piramyd, Shoppers‘ Stop, Subhiksha Trading, Food World Supermarkets, Hyper city Retail, Reliance Petro Marketing, etc, has now asked all Indian FMCG companies to follow a July 1 deadline for barcoding their products. At present about 25% of Indian companies do not carry barcodes on their products. Industry experts insist that barcoding is just one of the upgrades that Indian FMCG companies need to do to cater to the demands of an organized retail scenario. Products available a Vishal mega mart: Apparel and Accessories for Men, Women and Children, Sarees, Linens, Baby Accessories, Cosmetics, Crockery, Dress Materials Suiting & Shirting, Electrical Accessories, Electronics, Footwear, Toys, Home Textiles, Home Needs, Home Decor, Household Appliances, Household Plastics, Utensils & Utilities 10
  11. 11. FUNCTIONAL DEPARTMENTS OF VISHAL RETAIL LTD The store operations are divided into various operations which are carried out by the respective functional departments. ADMINISTRATION DEPARTMENT Admin department is divided into following sections: 1. Security services: The security personnel are under contract basis. They are security staff working for vishal Retail India Ltd. The complete store security and movement tracking are under their control. 2. House Keeping: Their main duty is to look after the cleanliness and overall hygiene of the store. The admin manager creates checklists for the cleaning schedules and the team members work in accordance to those checklists. Checklists include cleaning the floor, lifts, escalators, staircase, window panes, various shelves and display racks, AC ducts, Glass walls, trolleys, baskets, parking areas etc. 3. Packers: Proper packing of the sold goods is required before handing it over to the customer. Helpers to the cashiers are appointed to do this job. Packing the food items, items to be handled with care and other items all separately is their job. 4. Loaders: Few people are appointed to load and unload merchandise from trucks and cautiously transfer them to the desired location in the store. 5. Standard operation and procedures: In this section various registers are maintainedA] Key movement register- The various store keys are maintained by different staff members. These people have to make entries in their register regarding the keys they carry. B] Staff Value declaration register- Every staff member while entering the store has to declare the amount of cash with him/her. This is done to minimize thefts within the store. 11
  12. 12. C] Customer Footfall Report: This register is updated every hour. The total number of customers that entered the store in that hour are counted and noted down in this register. D] Staff Purchase Register- Entries are made in this register regarding the purchases made by the staff members in the store. 6] Staff Grooming Register- Entries regarding the appearance, personal hygiene, presenting self and dress code of the team members is made. A long checklist regarding staff grooming is referred to make these entries. MAINTENANCE AND FACILITIES DEPARTMENT The functions of this department are1) To check the functioning of various items like Escalators, AC‘s, Frozen section, Lighting equipment‘s etc. In case of their malfunctioning, repairs have to be carried out as soon as possible to ensure proper store operation. 2) To check and note the opening and closing electricity meter readings and prepare a monthly statement. 3) Ensure safe and consistent power supply at the store. 7) I.T. DEPARTMENT The software used on Retail Enterprise Manager(REM). In this all the information concerning the product like, name, category barcode number, MRP, discount rate, net price etc are stored. Day opening and day closing are the important activities in REM, where REM will allow the users to start transactions for the day and freeze all document transactions made for the day respectively. All the incremental stock balances will be loaded into REM at the day opening activity. The sales and collection data will be posted to the staging server for the Sap at the day closing activity. 12
  13. 13. DEPARTMENT STORES Vishal mart operates in a four floored building and the 2 floors are divided into various sections called Department Stores. The various department stores are: 1. Food Store 2. Wellness, 3. Customer Service Desk, 4. Plastics - Utensils - Crockery Department, 5. General Merchandise, 6. Mobile Store 7. Apparels, 8. New Business Development, 9. Electronic Store 10.Furniture Store . CUSTOMER SERVICE DESK(CSD) Customer service means meeting or exceeding the customer‘s expectations and needs. Customer Service is not a one time activity, it should reflect in each and every activity. Be it the facilities, layout of the store, communication and interaction or the company policies, all affect the customer service. CSD has been formed to take care of customer needs and problems. CSD also provides various services like 1. Alterations with respect to apparels 2. Exchanges of merchandise 3. Gift wrappings 4. Baggage counters for safe deposit of customer baggage. 13
  14. 14. 5. Share with us - Customer feed back 6. In-store communication- transferring telephone calls 7. Free gifts 8. Sale of gift vouchers 9. Home delivery for food Store 10. Home delivery for electronics and furniture PRODUCT CLASSIFICATIONS Products and services fall into two broad classes based on the type of customers that use them: 1. Consumer products 2. Industrial products 1. Consumer products : Consumer products are products and services bought by final consumers for personal consumption: Marketers usually classify these products and services further based on how consumers go about buying them. Consumer products include convenience products, shopping products, speciality products, and unsought products. These products differ in the ways consumers buy them and therefore in how they are marketed. Convenience Products : are consumer products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. Examples include soap, candy, newspapers, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers need them. 14
  15. 15. Shopping Products: are less-frequently-purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. When buying shopping products and services consumers spend much time and effort in gathering information and making comparisons, Examples include furniture, clothing, used cars, major appliances, and hotel and airline services, shopping products marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts. Speciality Products:are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort, Example include specific brands and types of cars, high priced photographic equipment, designer clothes, and services of medical or legal specialists. A Lamborghini automobile, for example, is a specialty products because buyers are usually willing to travel great distances to buy one. Buyers normally do not compare specially products. They invest only the time needed to reach dealer's carrying the wanted products. 2. Industrial Products:Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product. The three groups of industrial products and services include Materials and parts, Capital items, and Supplies and services, 15
  16. 16. Material consist of farm products (wheat, cotton, livestock, fruits, vegetable) etc., and natural products (fish, lumber, crude petroleum, iron ore). Manufactured materials and parts consist of component materials (iron, yarn, cement, wires) and component parts small motors, tires, castings. Marketing strategies for various products: 1. Convenience Products: Price:convenience products are usually low priced goods. Distribution/Place:the distribution is widespread and the products are made to be available easily. Convenient locations are also very essential. Promotion: the promotion activities are usually mass promotion by the producer. Examples: toothpaste, magazines. 2. Shopping Products: Price: shopping products are usually high priced goods. Distribution/Place: the distribution is selective and there are fewer outlets. Promotion: the promotion activities are usually advertising and personal selling by both producer and resellers. Examples: televisions, furniture. 3. Specialty Products: Price: specialty products are usually high priced goods. Distribution/Place: the distribution is exclusive and there are fewer outlets per market area. Promotion: the promotion activities are more carefully targeted these activities are carried on by both producer and resellers. Examples: Rolex watches, fine crystal. 16
  17. 17. CONSUMER BEHAVIOUR TOWARDS VARIOUS PRODUCTS 1. Convenience Products: These products are frequently purchased by the consumer as they are required for daily use. There is very little planning involved and there are very little comparisons between similar or subsidiary products. The shopping efforts are also very low and the customer does not involve himself while shopping. 2. Shopping Products: These products are purchased less frequently as they are usually durables. There is a lot of planning involved while shopping and shopping efforts are also high. There is a lot of comparison between brands, price, quality, style etc. and the consumer may postpone the purchase to get a better product. 3. Specialty Products: These products have strong brand preference and brand loyalty. There are special shopping efforts made by the customer to get these products. There is low comparison of brands and there is low price sensitivity. DEPARTMENT STORES Vishal mega mart operates in a building and they are divided into various sections called Department Stores. The various department stores are: 1. Food Mart 2. Plastics - Unsils - Crockery Department, 3. Mobile Mart 4. Apparel 5. Electronic Mart 6. Furniture Mart 17
  18. 18. Big bazaar Key Facts Year of Launch: - 2001 No of Stores: -214 No of Cities with presence: - 90 A total retail space covered:- 16 million sq.ft. Core Value Model: - Customer Connectivityexperimenting with products and servicesSavingsLowest Price Focus of Marketing Initiatives: - Engage the customers by adapting to local cultureFocus on the lowest price guarantee in all the campaigns Key Driver of Footfall:- Large Product Mix Growth rate:- 19%-22% For the last 12 years Big Bazaar is the brand associated with value for money and convenience. Launched in the year 2001, Brand Big Bazaar wanted to bring affordability, variety and hygiene within the reach of the common man. The big Bazaar growth story is an ideal example of the expansion of the hypermarket format in the Indian subcontinent. Today, Big Bazaar provides a platform for over 15,000 small, medium and large producers and manufacturers to sell their products to Indian consumers. In a more recent move Future Group merged its largest business unit, Future Value Retail, which houses Big Bazaar and Food Bazaar, with Pantaloons Retail, a listed company that runs the group‘s smaller retail operations. This move is expected to reduce operating costs and restore investor confidence ( But what remains same is the target audience of the brand ―the value seeking middle class man, with ―Kanjoosi‖ as his shopping ethos‖. Price is the main value proposition for Big Bazaar. Prices are usually 5 to 60 percent lower than the market price. 18
  19. 19. The Average Size of Big Bazaar store is 50,000 sqft and the Big Bazaar family center is 80,000-120,000 sq. ft. Stocks 3,000 to 4,000 SKUs (stock-keeping units) of merchandise Food and groceries account for 40% of Big Bazaar‘s revenue, whereas fashion and apparel make up for about 30% of the overall revenue. The remaining 30% comes from the other units such as electronics. Marketing Strategy 3-C Theory According to Kishore Biryani‘s 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country.[3] Big Bazaar has divided India into three segments: India one: Consuming class which includes upper middle and lower middle class (14% of India's population). India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, etc. (55% of India's population) and India three: Struggling class (remaining 31% of India's population). Schemes and innovations  Wednesday Bazaar: The concept of Wednesday Bazaar was promoted as ‗HafteKaSabseSasta Din‘ (Cheapest Day of the Week). Initiated in January 2007, the idea behind this scheme was to draw customers to stores on Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of the concept was ‗to give homemakers the power to save the most‘. MahaBachat: The concept of ‗MahaBachat‘ (Mega Saving) was introduced in the year 2006 as a single day campaign with attractive promotional offers across the company outlets. Over the years, the concept has grown to become a six-day biannual campaign. During this campaign, attractive 19
  20. 20. offers are given in all the value formats including Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.  The Great Exchange Offer: Introduced on February 12, 2009, ‗The Great Exchange Offer‘ allows customers to exchange their old goods for Big Bazaar coupons. The coupons can be redeemed later for buying brand new goods from Big Bazaar outlets across the nation. Advertising campaigns and marketing initiatives After completing ten years of operation in India Big Bazaar India revamped its logo and appeal with a new brand campaign ―Naye India Ka Bazaar‖ Big Bazaar Old logo New Logo 20
  21. 21. The inspiration for the new ad campaign comes from an ancient Jain custom of ‗Michchami Dukkadam‘, which translates into colloquial language as ‗Bhool-chook maaf‘ or ‗Please forgive me if I have offended you knowingly or inadvertently‘. In view of the increasing competition in the retail market, Big Bazaar has introduced certain steps to keep itself updated and continue promoting the brand. On the occasion of successful completion of 10 years in the Indian retail industry (in 2011) Big Bazaar came up with a new logo for the company with a new tag line that says: ‗Naye India Ka Bazaar‘ (Market for New India). This replaces the earlier tag line: ‗IsseSastaAurKahinNahin‘ (Nothing is Cheaper than Here). Advertising initiatives Big Bazaar has recently launched a 360-degree promotion drive covering the three prime media, television, print and social media, to mark the launch of the new logo. The entire media campaign was developed by Mudra Communications. The band also roped in Cricket Player M. S. Dhoni and Sin as their Brand Ambassadors in year 2009 Big Bazaar is portrayed as a value store and visual merchandising is purposely not done according to International standards. Stores are designed to accommodate heavy crowds and has organized kind of ―Chaos‖ and ―Chaotic Layout‖Storefocusses on using attractive drop down banners and price synagogues. Another concepts used in Big Bazaar stores are ―Bin Baskets‖ install near the cash counters where any kind of product can be placed be it cosmetics of mobiles. These Bin Baskets accounts for nearly 1%-2% of average store sales . Best store campaigning has also moved focus to Furniture and electronic items. Television stars SakshiTanwar and Ram Kapoor were ropped in to promote Big Bazaar Stylish Home contest in 2013. Big Bazaar – Home Contest Big Bazar claims to improve focus on customer experience and make stores more friendly for senior citizens, pregnant women and mothers. Stores across the country will also be rolling out signature community initiatives like ‗Annasantharpane‘ and ‗Protsahan‘ 21
  22. 22. Big Bazaar store study Different levels of the store : Level 1: Departments with their Products: a) Depot: 1) General books 2) Office stationary 3) Children stationary 4) Film VCD‘s & DVD b) NBD (New Business Development) 1) Watches 2) Fashion Jewelry 3) Sunglasses 4) Auto accessories 5) Car audio systems c) Gold Bazaar: Navaras Gold Jewelry (This is the separate unit not related to Big Bazaar they share profits on percentage basis) d) Mobile Bazaar: 1) All kinds of Handsets ranging from Rs 1000 to !8000 of different companies 2) Mobile accessories 3) Codeless phones & land line phones 22
  23. 23. e) Star Sitara: 1) Cosmetics 2) Fragrances 3) Herbals 4) Pharmaceuticals f) Shringar: 1) Bangles 2) Jewelry sets 3) Bracelets 4) Hair Accessories 5) Bidies 6) Chins Plastics, Utensils, Crockery (PUC) g) Plastics: 1) Buckets 2) Casseroles 3) Containers 4) Boxes 5) Flasks 6) Bowls 7) Jugs & sippers 8) Bottles & Mugs h) Utensils: 1) Plates, Bowls, Glasses 2) Non stick Cookware‘s 3) Kitchen tools 4) Tiffin Boxes 23
  24. 24. 5) i) Crockery 1) Crockery cutlery 2) Table Materials / Napkins 3) Casseroles 4) Dinner sets 5) Wine, Juice Glasses j) Luggage: 1) Travel bags 2) Trolleys 3) Bags: Schools, Collage Ladies purse 4) Suitcase Level 2 a) Ladies Department:(SKD) 1) Sarees 2) Dress materials 3) Under garments 4) Nightwear‘s 5) Western wear‘s b) Men’s Department: 1) Formals (Shirts & Pants) 2) Casuals (Shirts & pants) 3) Party wears 4) Jeans T-Shirts 5) Others Accessories (Lungi Dhoti etc) 6) Fabrics (Cut pieces) 7) Suits & Blazers 8) Levi‘s Signature garments 24
  25. 25. Level 3 a) Furniture Department: 1) Dining Table 2) Bedroom Accessories 3) Hall accessories (Sofa sets, Chairs, Computer table etc) 4) Mattresses b) Footwear Bazaar : 1) Sports Shoes 2) Formal Shoes 3) Casual Shoes 4) Mens Sandals 5) ladies Sandals 6) Ladies Casuals 7) Ladies Chappel 8) Ladies fancy Sleepers 9) ladies Sports shoes c) Home Décor: 1) Flower vase 2) Artificial Flowers 3) Religious gifts 4) Candle stand 5) Umbrellas 6) Photo Frames 7) Assorted color Stones 8) Frame Paintings 9) Water falls (artificial) 10) Birthday items 25
  26. 26. d) Home line: 1) bed sheets, Pillows , bed spreads 2) Towels, Yellow dust 3) Razai , Carpets, Cushion covers 4) Chair bags e) Toys Dept: 1) Soft toys 2) Educational toys 3) Board games, Action figures 4) Dolls Kids department f) Boys section: 1) T-Shirts, Trousers, jeans 2) Cotton shirts, Cargo, Codraw 3) Ethic wears 4) Co ordinates 5) Rain cotes g)Girls Section: 1) Ethic wears 2) Co- ordinates 3) Cotton frocks 4) Western wears 26
  27. 27. h) Infants: 1) Jhablas 2) Vests 3) Bibs feedings 4) Bed items 5) Baba suits 6) Frocks Level 4 a) Beverages: 1) Soft drinks 2) Mineral water 3) Juices 4) Health drinks 5) Frozen items b) Confectionaries: All kinds of Chocolates & Confectionaries c) Fruits & Vegetables: d) Staples Dept: 1) Dal, Rice, Atta, Rava items 2) Oil‘s, Masala items 3) Dry fruits 4) Spicy items 5) Ready meals 6) Breakfast cereals 27
  28. 28. e) Process Dept: 1) Health drinks 2) Ready to eat 3) Corn flaks, Chips 4) Instant mixes 5) Soups, Bread items, pickle 6) Spreads Non-food Dept f) Home care: 1) Phenyl, Detergents 2) Dish wash, Tissue papers, Scratch 3) Shoe cases, Fresh wrap, g) Personal care: 1) Soaps, tooth paste, Shampoo 2) Deodorants, Body spry 3) Baby food, Talcum powder 4) Men‘s apparel Level 5 Electronic Bazaar: 1) Televisions 2) Sound System 3) Refrigerators 4) Washing machines 5) Microwave 6) Rice cookers 7) Juicers 8) Irons, Mixers & Grinders 28
  29. 29. Organization Structure of the store Departmental Managers: There are 2 departments and 8 assistant department managers in this store like Electronic dept., Depot dept., NBD dept., Mobile Bazaar Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men‘s Dept, Furniture Dept, Footwear Dept, and Home Décor Dept. Each department will be assigned with targets which has to be achieved within the assigned period that may be of Daily, Weekly, monthly and yearly. Each department has a department Manager & Assist DM. Their job is concerned mainly with sales. They look after customer‘s orders delivery post sale service if any etc . All Dept managers ADM, Team members work under coordination & cooperation. Administration: Store administration comes under Store Manager its functions are store maintenance, House Keeping, Security etc. Information Technology: This department is responsible for the maintenance of the systems of the stores. All billing machines their functioning networking with the master machine etc. If there is any problem with the machine then this department comes into function. Cashing Dept: This department is responsible for the collection of sales amount ie cash sales, Credit sales, etc under this department all billing machines of the stores comes. The sales amount collected throughout the day by the cashier‘s has to be submitted to this department. 29
  30. 30. Marketing Executive: This dept is responsible for the marketing of the store in different different media like Television, Newspaper, and Holdings etc. the authorized person has to visit different companies and has to look after for tie-ups etc. Visual Merchandise: This department is responsible for the product arrangement at the store with respect to their nature. The basic function of this dept is it divides the store into some departments based on the nature of the product and within the department it decides how the products should be arranged by keeping in mind the customer should not suffer. HR Executive: Human Resource executive mainly look after employees mainly their problems. This department performs the functions like Recruitment, Selection, Training and development. CSD (Customer Service Desk): This is the separate unit, which is mainly focuses on customer service like if the customer find difficulty in finding any product, Customer complaints any replacement, Customer assistance etc. Cities where stores are located Agra ,Ahmedabad ,Allahabad ,Ambala,Asansol, Bangalore, Bhubaneswar, Chennai, Coimbatore, Palakkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon, Hyderabad, Indore, Hubli, Lucknow, Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot, Surat, Thane, Thiruvananthapuram,Udupi, Vishakhapatnam 30
  31. 31. Objectives of study  To know about the retail industry.  To know the awareness of the customers towards Vishal mega mart and Big bazaar.  To know whether the customers are satisfied with present service given by the Vishal mega mart and Big bazaar  Factors considering while purchasing retail products.  To know the effectiveness of the promotional activities done by Vishal mega mart and Big bazaar.  To know the strategy to make a customer retention. 31
  32. 32. Area Under Field Research We have taken VISHAL MEGA MART and BIG BAZAAR for research. Former is located in modinarar and later is located in kaushambhi. Both are present in Delhi-NCR regions but both are belongs from different area.Modinagar is a small city with less population and there is dense population in kaushambhi with metro connectivity. So the service area of both is different from each other. Factor under study in different format:  Store layout and division: Both VISHAL MEGA MART and BIG BAZAAR follow Z-line in their stores. Z-Line= z-line Designs has developed a retail gallery program in an effort to leverage the company's relationship with ―Maximum‖ magazine. Description of the gallery; Price range of items to be featured in the gallery; Agreement by two major retail chains to install the gallery in their stores. 32
  33. 33. Vishal mega mart layout First floor: 33
  34. 34. Big Bazaar layouts. First floor:- 34
  35. 35. Indian retailers 1. Reliance Retail Limited: Corporate office – Mumbai, Maharashtra | Establishment – 2006 | Business –Retail | Website – | Reliance retail limited was incorporated in 2006, a part of Reliance industries. The company has been rated among the best retail companies in India. It offers complete retail solutions such as food items, lifestyle, fashion, consumer electronics products, home decorative products etc. The company has a total of 1500 outlets in the country. 2. Pantaloons Retail Limited: Corporate office – Mumbai, Maharashtra | Establishment – 1997 | Business – Retail | Website – | It is a flagship company of Future group and one of the leading retail company in India. The company has more than 1000 outlets across the India and 35000 employees. Company‘s brands include Big Bazaar, food Bazaar Brand factory, Top 10 and Sitara. 35
  36. 36. 3.Provogue India Ltd: Corporate office – Mumbai, Maharashtra | Establishment – 1997 | Business – Retail and Manufacturing | Website – | It is a lifestyle and fashion company which was established in 1997. The company‘s offering include men‘s wear, women‘s wear, fashion accessories, apparel and numerous other products. It has over 250 stores all across the country and rated among the top most trusted brands in India by trust research committee in year 2011. 4. Shoppers Stop: Corporate office – Mumbai, Maharashtra | Establishment – 1991 | Business – Retail | Website – | Shoppers Stop is a well-known name in retail industry in India and ranked among the top retail brands in India. The company is operated and managed by K Rhea Corp Group and was incorporated in year 1991. It has total 61 stores in India and offers national and international brands of apparel, fashion and lifestyle. 36
  37. 37. 5.ITC –LRBD: Corporate office – Kolkata, West Bengal | Establishment – 1910 | Business – Retail | Website – | Lifestyle Retailing Business division is a premier clothing retail company in India branding through Wills Lifestyle and John players. The Company has a diversified range of business activities in FMCG, Hotels, Paper board, Packaging and Agriculture. 6 | Trent Ltd.: Corporate office – Mumbai, Maharashtra | Establishment – 1998 | Business – Retail | Website – | It is a fully owned Tata group company which was incorporated in 1998 operates under brand name of Westside, Star Bazaar, Fashion yatra and Landmark. The company offers Men‘s & women‘s footwear, cosmetics and fashion accessories from their retail store located in more than 30 cities in the country whereas Landmark store deals in book and music business. 37
  38. 38. 7. Vishal mega mart: Corporate office – Delhi | Establishment – 1986(Kolkata) Business – Manufacturing and Retail 8. Aditya Birla Retail: Corporate office – Mumbai, Maharashtra | Establishment – 2006 | Business – | Website – | Aditya Birla retail limited is a subsidiary of Aditya Birla group established in year 2006 which owns over 500 supermarkets and 15 hypermarkets. The company is rated as top 10 retail companies in India and received prestigious Master brand Award 2012 by World Brand congress in retail brand category. 38
  39. 39. 9.Titan Industries: Corporate office – Bengaluru, India | Establishment – 1984| Business – Jewellery and Watch retail| Website – | Titan is joint venture between Tata group and the Tamil Nadu Industries development corporation established in year 1984. Titan is dominating the Indian Watch Industry since then and become global international brand. Titan also has a great retail presence in jewellery business and its brand Tanishq is one amongst the top jewellery brand in India. 10. Kewel Kiran Clothing Limited: Corporate office – Mumbai, Maharashtra | Establishment – 1971 | Business – Clothing Retail | Website – | Kewel Kiran is a clothing manufacturing and retail company which was established in 1971. The company‘s major brands include killer, Lawman PG3, Integriti and Killer. It has more than 100 stores in India and it is a well known name in retail industry in India. 39
  40. 40. International retailers 1. Wal-Mart Stores, Inc. (U.S.) Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own over 50 percent of Walmart. It is also one of the world's most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. 40
  41. 41. 2. Carrefour S.A ( France) Carrefour S.A. is a French multinational retailer headquartered in Boulogne Billancourt, France, in Greater Paris. It is one of the largest hypermarket chains in the world (with 1,452 hypermarkets at the end of 2011), the second largest retail group in the world in terms of revenue (after Wal-Mart), and the third in profit (after Wal-Mart and Tesco[3][4]). Carrefour operates mainly in Europe, Argentina, Brazil, China, Dominican Republic, United Arab Emirates, Qatar and Saudi Arabia, but also has shops in North Africa and other parts of Asia, with most stores being of smaller size than hypermarket or even supermarket. Carrefour means "crossroads" and "public square" in French. 41
  42. 42. 3. Tesco PLC( U.K.) Merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the second-largest retailer in the world measured by profits (after Wal-Mart) and third-largest retailer in the world measured by revenues (after Walmart and Carrefour). It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republic of Ireland and Thailand. The company was founded in 1919 by Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads. The 1990s saw Tesco reposition itself, from its perception as a downmarket "pile 'em high, sell 'em cheap" retailer, to one which appeals across a wide social group, from its Tesco Value to its Tesco Finest ranges.This was successful, and saw the chain grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later. Tesco is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £24.4 billion as of 15 January 2012, the 15th-largest of any company with a primary listing on the London Stock Exchange. 42
  43. 43. 4. Metro AG(Germany) Metro Group, is a German global diversified retail and wholesale/cash and carry group based in Düsseldorf. It has the largest market share in its home market, and is one of the most globalised retail and wholesale corporations.[citation needed] It is the fifth-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour, Tesco and Kroger). It was established in 1964 by Otto Beisheim. 43
  44. 44. 5.The Kroger Co.( U.S.) Kroger Company is an American retailer founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It is the country's largest supermarket chain, second-largest U.S. general retailer by revenue, fifth-largest retailer in the world, according to Deloitte, and twenty-third largest Fortune 500 company in the world. As of February 2013, Kroger operates, either directly or through its subsidiaries, 2,424 stores. Kroger's headquarters are in downtown Cincinnati.It maintains markets in 31 states, with store formats that include supermarkets, superstores, department stores, convenience stores, and mall jewelry stores. Kroger-branded grocery stores are located throughout the Midwestern and Southern United States. Kroger also is parent to several "banner" chains, such as Ralphs in California. As of July 2013, Kroger was the second-largest retailer in the United States behind Walmart, based on 2012 retail sales. 44
  45. 45. 6.Costco Wholesale Corporation(U.S) it is the seventh largest retailer in the world and the largest membership warehouse club chain in the United States. Costco is headquartered in Issaquah, Washington, United States and was founded in 1976 in San Diego, CA with its first warehouse in Seattle. Founded by James (Jim) Sinegal and Jeffrey H. Brotman,Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. 45
  46. 46. 7. Schwarz UnternehmensTreuhand KG (Germany) LidlStiftung& Co. KG is a German global discount supermarket chain, based in Neckarsulm, Baden-Württemberg, Germany, that operates over 10,000 stores across Europe. It belongs to the holding company Schwarz Gruppe, which also owns the store chains Handelshof and hypermarket Kaufland. Lidl is the chief competitor of the similar German discount chain Aldi. The company was founded in the 1930s by a member of the Schwarz family, and was called Schwarz LebensmittelSortimentsgroßhandlung (Schwarz Assorted Wholesale Foods). Lidl has since its opening in 1973 established itself in over 20 countries throughout Europe. The name Lidl is the surname of a former business partner of Josef Schwarz's, Ludwig Lidl, a retired schoolteacher, and Josef's son Dieter Schwarz bought the rights to the name from him for 1,000 German Marks, as he could not use the name Schwarz Markt; schwarzmarkt means "black market". Lidl is part of the Schwarz Group, the fifth-largest retailer in the world with sales of $82.4 billion (2011). 46
  47. 47. 8. AldiEinkauf GmbH & Co. oHG (Germany) ALDI Einkauf GmbH &Companies, oHG, doing business as about this sound Aldi (help info) (German pronunciation: [aldiː], short for Albrecht Discount), is a global discount supermarket chain based in Germany. The chain is made of two separate groups, Aldi Nord (North, which operates as AldiMarkt), headquartered in Essen—and ALDI Süd (South, which operates as ALDI Süd), headquartered in Mülheiman der Ruhr.The two operate independently, each within specific areas. The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht. Karl Albrecht retains ownership of AldiSüd, and with a personal wealth of €17.2 billion, is the richest man in Germany, while the co-owners of ALDI Nord, Berthold and Theo Albrecht Jr., follow close behind at €16 billion. Dieter Schwarz, owner of Lidl and Kaufland came in third, with a fortune of €11.5 billion. 47
  48. 48. 9. Walgreen Co.( U.S.) The Walgreen is the largest drug retailing chain in the United States. As of December 11, 2013, the company operated 8,582 stores in all 50 states, the District of Columbia, Puerto Rico, and Guam. It was founded in Chicago, Illinois, in 1901. Walgreens headquarters are in the Chicago suburb of Deerfield, Illinois. 48
  49. 49. 10.The Home Depot, Inc.( U.S) The Home Depot is an American retailer of home improvement and construction products and services. It operates many big-box format stores across the United States.The company is headquartered at the Atlanta Store Support Center in Cobb County, Georgia, in Greater Atlanta. 49
  50. 50. Research methodology Details of Research: Method used: survey method Type of survey: Interview Instrument used: Questionnaire Sample size: 20 Data used: Both primary and secondary Defining the research problem: A researcher must find the problem and formulate it so that it becomes susceptible to research. Like a medical doctor, a researcher must examine all the symptoms (observed by him) concerning a problem before he can diagnose correctly. And therefore, I have also defined the research problem i.e. consumer satisfaction, structure of store division, consumer behavior etc. 50
  51. 51. Research methodology Research methodology is the way to systematically solve the research problem . it may be understood as a science of studying to how research is done scientifically .In it we study the various step that are generally adopted by a researcher in studying his research problem along with the logic behind them . In research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the content of our research study and explain why we are using a particular method and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Secondary data are those which have been collected by someone else and which have already been passed through the stastical process. There are several ways by which secondary data can be classified. Research approach: The research approach for the purpose is secondary research to collect the information. Research Instruments: I used direct observation data & survey as research instrument. Survey Method: The survey is a non-experimental, descriptive research method. Survey is used extensively in library and information science to asses‘ attitude and characteristics of a wide range of subjects, from the quality of user-system interfaces to library user reading habit. In a survey, researcher samples a population. 51
  52. 52. Types of survey: Survey can be classified into two broad categories:- 1. Questionnaire: -It is usually paper and pencil instruments that the respondent completes. 2. Interview:- It is completed by the interviewer based on the respondent says. Sometimes, it is hard to tell difference between a questionnaire and an interview.For instance, some people think that Questionnaires always ask short closed ended questions while interviews always ask broad open ended ones. But you see Questionnaires with open ended questions (although they do tend to be shorter then in interviews) and there will often be a series of closed ended questions asked in an interview Research design In this project use expletory research design and for data collection fill-up the questioner from the customer satisfaction, survey of the retail market and some information collect by interview of the customer as well as staff of VISHAL MEGAMART and BIG BAZAAR. Sampling: I used random sampling because from a finite population refers to that method of sample selection which gives each of possible sample of combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. Sample design: A sample design is a definite plan for obtaining a sample from a given population sample design may as well lay down the number of items to be to be included in the sample is the size of sample, (I) Types of universe The first step in developing any sample design is to clearly define the set of objects, technically called the universe to be studied. The universe is infinite as the number of customer is unlimited. 52
  53. 53. (ii) Sampling unit:A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit may be a geographical one such as state, district, village, etc., or a construction unit such as house, flat, etc., or it may be a social unit such as family, club,school, etc., or it may be an individual. The researcher will have to decide one or more of such units that he has to select for his study. (iii) Size of the samples As the universe is infinite so the number of consumer will be limited. Hence sample size is of 20 consumers belong to various level of society. Data collection: Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data is detained from two important sources, namely: 1. Primary data 2. Secondary data Primary Data: Primary data are gathered from the specific purpose or for a specific research project, consists of original information for the fulfillment of original objective. When the data are required for the particular study can be found neither in the internal record of the enterprise nor in published source, in some cases it may become necessary to collect original data. Primary data can be collected in four ways:1. Observation 2. Focus 3. Survey 4. Experiment 53
  54. 54. Secondary Data: Secondary data are the data, which already exists somewhere. Secondary data provide starting point of research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types: 1. Internal Data 2. External Data When researcher use the data that has already been collected by other data is collected is called Secondary Data. Secondary data can be obtained from journals i.e. internal sources report. Government publications and books, professional bodies etc. Internal data are reports and memos generated within an organization to facilitate its operations. External data are those specially produce for outside consumption. Sources from which I have taken the secondary data are as under: 1. Direct observation 2. VISHAL and BIG BAZAAR website 3. 4. C.R KOTHARI Survey and customer data &report as well as staff of the store 54
  55. 55. Conclusion After completing this research we come to know that BIG BAZAAR is ahead of VISHALMEGAMART because of its prime location and higher product range. Advertising, consumer satisfaction is an important factor of getting sales promotion. Both haveconverseda large number of Indian retail market and have equal opportunities to spread its business in Indian market in upcoming times. After viewing the company‘s advertisement a significant proportion (40%) think of buying the company‘s product. 55
  56. 56. Questionnaires 1. 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 month e. Once in a year. Result : from the survey it is concluded that maximum visit of respondent are twice in a month. 56
  57. 57. Q2.Are you satisfied with the customer service offered? a. Good b. Average c. To an extent d. Need to be improved. Result: From the survey it is conducted that maximum number of respondent are assuming that the customer service offered here is average . 57
  58. 58. Q3. Main reason for coming to the store? a. Value of money b. Discount c. Product range offered d. Saving of time Result :From the the survey it is conducted that maximum number of respondents are coming to the store because it is near to their home. 58
  59. 59. Q4. Distance covered while coming to store? a. 0-5 kms. b. 5-10 kms. c. 10-15 kms. d. More than 15 kms. Result :As per responses about 90 respondents stay 0-5 kms. From the store. 59
  60. 60. Q5. What medium of advertisement do you respond to? a. Magazine b. TV (local channel ) c. Local news paper d. Radio e. Relative /friends f. Visuals Result : From the survey it is conducted that maximum number of respondents knows about the store through local newspaper. 60
  61. 61. 6.How much ratting will you give to this store? a. Average b. Very good c. Excellent d. Can‘t say Result :As per responses about 23% respondents said that its rating is excellent. 61
  62. 62. Q7.Which section of the store does you like the most? a. b. c. d. e. Food mart. Home ware. House hold. Kids. Jewel mart. Result : As per responses about 8 respondents like the house hold . 62
  63. 63. Q8.Where did you purchase before coming to this outlet a. Local Karana‘s shop b. food world c. Nilgiris d . Hyper Markets, specify e) Any other Q9.What is the amount of expenditure you spend in this store each time? a.Less than Rs. 1000 b. Rs. 1000 – Rs. 2000 c. Rs. 2000 – Rs. 3000 d. Rs. 3000 – Rs 4000 e. Rs. 4000 – Rs 5000 f. Rs. 5000 – Rs 6000 g. more than Rs. 6000 Q10. What can we do to make our store more appealing? 63
  64. 64. Limitation I will have to really upon the information get from secondary sources and given by respondents, which may not be fully true. This study will be limited to only area of Modinagar andKaushambi (Delhi-NCR) It is only for short period of time. The sample size is only 20 so the sample may not be truly representative of Modinagar population. 64
  65. 65. Suggestion Company need to spend a lot on advertising and promotion to create brand image of its product. Make frequent advertisement in both print and electronic media. Making stalls in corporate melas like trade fair, may be beneficial to create brand image of its product. Need to provide additional offer and discount as per customer requirements. Need to include varieties of similar item. Provide more discount on FMCG products. Provide better customer service . Maintain proper display to create impulse .(it is assume that near about 70%of sales comes from impulse marketing and if proper display is not maintained impulse can not be created). Better if we provide filtered information about VISHAL. 65
  66. 66. Bibliography Books: 1.Kotler and Lane Keller (2012), Marketing management, United states, Pearson education 2. Kothari (2004) ,Research methodology, New Delhi , Bangalore , Chennai , cochin , Guwahati , Hyderabad , Jalandhar , Kolkata , Lucknow , Mumbai ,& Ranchi , New Age International(p) Ltd 3. Dr.HarjitSingh (2009), Retail management, S. Chand& company ltd ONLINE RESOURCE 1. 2. 3. 4. 5. 66
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