THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
NEW DELHI
THESIS ON
A STUDY OF CUSTOMER PERCEPTION STUDY WITH RESPECT TO VISHAL MEGA
MART SUBMITTED TO:
Prof. sumanta sharma
prof. vijay kumar boddu
Under the guidance of:
mr. mukesh jindal
SUBMITTED BY:
ALUMNI ID NUMBER:
Batch:ABSTRACT
Retailing is the business where an organization directly sells
its products and services to an end consumer and this is for his
personal use. By definition whenever an organization be it a
manufacturing or a whole seller sells directly to the end consumer
it is actually operating in the Retail space. This industry has
traveled a long way from a humble beginning to a situation where
worldwide Retail sales is more than $ 7 Trillion .
Retailing has played a vital role worldwide in increasing
productivity across a wide range of consumer goods and services.
The impact can be best felt in countries like USA ,UK ,Mexico
,Thailand and more recently in China. Economies of countries like
Singapore , Hong Kong and Malaysia are also heavily boosted by the
Retail Industry.
It is a changing Industry and old traditional ways of doing
business has lost relevance nowadays. It is an Industry which is
heavily dependent on consumer spending . In this ecosystem
consumers play the most important role. As a result of this,
Retailers are continuously challenging themselves to find out ways
and means of identifying customers need . They are busy in devising
new strategies to have an atomic level understanding of consumer
demand.
Signatory Page
TO WHOMESOEVER IT MAY CONCERN
This is to confirm that_____________, student of IIPM, NEW
DELHI, is doing a live project(Thesis) on the topic A study of
Customer Perception Study With Respect to Vishal Mega Mart under my
guidance and that the work being done by the candidate is original
and is of the standard expected by an MBA student.
May god bless her with all success in her career.
Warm regards
topic approval LetterTOPIC: A study of Customer Perception Study
With Respect to Vishal Mega MartINTRODUCTION
My topic is customer perception on strategy followed by Vishal
Mega Mart for brand building. To make a good brand image a company
need to make a good strategy and all aspects of business that
affected by that strategy. As we all know customer is the king of
the market the have the right to go anywhere. A customer thinks
very differently that called consumer behavior. A customer wants to
get the full value of their money whatever he buys he wants full
satisfaction from that product and if the company succeeds to
satisfy their customer then the company can easily make their brand
image.
RESEARCH OBJECTIVE
1. Understanding the process by which merchandise buyers make
their decisions and the degree to which their decisions are
optimal
2. To understand the role of private labels and their impact on
retail sales and profitability.
3. Brand positioning of Vishal Mega Mart.
4. To find the brand personality of Vishal Mega Mart and its
impact on both merchandise and overall store image across market
segment.
5. To compare the sales and profitability of branded and
non-branded products at Vishal.
6. To study the consumer purchasing behaviour.
7. To identify the buying motivation and concerned factors while
consumers to select merchandise at vishal Mega Mart.
8. To study and analyze the customer perception about FMCG
Products.9. To know the effect on sales after advent of organized
retailing.10. To know the level of customer satisfaction visiting
Vishal Retail shops.11. To study the changing trends in branded
retail industry.12. To analyse the key aspects of apparel branding
and retailing.13. To study the targeting segmenting and positioning
in the apparel retail industry.HYPOTHESIS
Customer Perception can be changed over the period of time
provided with the good marketing and customer service approach.
Customer perception impact to the balance sheet of the firm.
RESEARCH METHODOLOGY
This include both primary as well as secondary research
PRIMARY RESEARCH: -
I will collect the data from the customer who is visiting to the
store.
SECONDARY RESEARCH: -
I will collect the Secondary data from the Internet, Book and
Journal.
Tool Used:
Bar Graph , Pie Diagram
Sampling Method:
Random Sampling chosen by the gathering of data ( I will collect
the data from 100 individual customer)
Target Audience:
Dealers, Distributors & Marketing manager of the firm
SCOPE OF THE WORK
Retail is India's largest industry. It accounts for over 10 per
cent of the India's GDP and around 8 per cent of the employment.
Retail sector is one of India's fastest growing sectors with a 5
per cent compounded annual growth rate. India's huge middle class
base and its untapped retail industry are key attractions for
global retail giants planning to enter newer markets. Driven by
changing lifestyles, strong income growth and favorable demographic
patterns, Indian retail is expected to grow 25 per cent annually.
It is expected that retail in India could be worth US$ 175-200
billion by 2016.
JUSTIFICATION OF THE CHOOSING TOPIC Today, the role of the
distributor as an intermediary has morphed into that of a
'disintermediary'. A distributor plays a virtual role, an almost
invisible part of a smooth supply chain. Third-party logistics
providers help ship goods from one part of the globe to another in
a day, while a more customer-centric distribution chain enables
direct ordering and tracking of orders over the Internet. The use
of databases, communication systems and the foremost advanced
software are crucial to any supply chain management system. Optimal
management of a supply chain results in revenue enhancement through
high customer satisfaction and repeat sales. Web enabling a supply
chain helps connect an enterprise to all its trading partners
taking away all the weak links existing within it.
AcknowledgementIt is well-established fact that behind every
achievement lays an unfathomable sea of gratitude to those who have
extended their support and without whom the project would never
have come into existence.
I express my gratitude to IIPM, New Delhi for providing me an
opportunity to work on this thesis as a part of the curriculum.
Also, I express my gratitude to Prof. Sumanta Sharma and Prof.
Vijay Kumar Boddu on the completion of my project.
ContentAbstractiiSignatory pageiiiTopic approval
letterivAcknowledgmentv
Approved thesis synopsisviiIntroduction 1
Company profile25
literature review41
research methodology57
finding and analysis59
CONCLUSION71recommendation73
Bibliography75
annexure questionnaire76
INTRODUCTION
Global Retailing
The top 200 Retailers alone contribute for 30% of worldwide
demand. Retail sales is generally driven by peoples ability
(disposable income) and willingness (consumer confidence) to buy
goods and services. Money spent on household consumption worldwide
has increased by 68% between 1980 and 2003. The leader has
unquestionably been the USA where some two-thirds or $ 6.6
trillions out of the $ 10 trillions American economy is consumer
spending. Consumers are spending around $ 3 trillions on
discretionary products and services. Retail turnover in the
European Union is around Euros 2000 billion and the average growth
in this sector seems to be following an upward trend. The Asian
economies (excluding Japan) are expected to grow at 6% consistently
till 2005-06. Positive forces at work in Retail consumer markets
today include high rates of personal expenditures, low interest
rates, low unemployment and very low inflation. Negative factors
that impact retail sales involve weakening consumer confidence.
Top Retailers of the World:
Rank Country of Origin Name of Company Formats
1 US Wal -Mart Discount, Hyper market,
Supermarket, Superstore, Warehouse
2 France Carrefour Cash& Carry , Convenience, Discount,
Hypermarket, Supermarket
3NetherlandRoyal Ahold Cash and Carry
4 US Home Depot DIY, Specialty
5 US Kroger Convenience, Discount, Specialty, Supermarket,
Warehouse
6 Germany Metro AG Cash& Carry, Department, DIY,
Hypermarket, Specialty, Superstore
7 US Target Department, Discount
8 US Albertsons Drug, Supermarket,
Warehouse
9 US Kmart Discount, Superstore
10 US Sears Department, Mail Order, Specialty
Type of Retailers:
Retail Organizations have shown great variety and different
format of stores are coming up quite rapidly. Generally Retailers
can be of six types.
1. Specialty Store
This stores are characterized by narrow product lines but with
deep assortments such as Apparel Stores , Sporting goods store,
Furniture store ,Florist and Book store. Under this also there
could be specializations like limited line store ( eg. Mens
clothing store) and Super specialty store (eg. Mens custom shirt
store ). Example of such stores are Athletes foot ,Tall men.
2. Departmental Store
Several Product Lines typically clothing ,home furnishing and
household goods with each line operated as a separate department
managed by specialist buyers and merchandisers Examples Sears, JC
Penny , Nordstrom.
3. Supermarkets
Relatively large ,low cost ,low margin high volume ,self service
operation which is designed to cater total needs for food, laundry,
household maintenance products .Supermarkets earn an average profit
of only 1 percent on sales. Example : Safeway, Kroger.
4. Convenience Store
These are the stores which are relatively small in size and they
are located near residential area , normally remains open seven
days a week and carrying a limited line of high turnover
convenience products at slightly high prices. Many have added take
away sandwiches , coffee and pastries. Example : 7-Eleven ,Circle
K
5. Discount Stores
Standard merchandise sold at lower prices with lower margin but
higher volumes. Actual discount stores regularly sell merchandise
at lower prices and offer mostly national brands. In Discount
retailing , Discount specialty retailing is also present eg.
discount electronic store or discount book store Example : Wal-
Mart (all purpose discount store) , Kmart . Specialty : Crown
Bookstore.
6. Off Price Retailers.
Merchandise bought at less than regular wholesale prices and
sold at less than retail prices. Often left over goods , irregulars
obtained at reduced prices from manufacturers and other
retailers.
Factory outlets are owned and operated by manufacturers and they
normally carry manufacturers surplus ,discontinued and irregular
goods. Example : Mikasa (Dinnerware ) and Dexter(Shoes).
Characteristics of Retail Industry:
The spectrum of Retail Industry is quite wide in nature. Retail
serves consumers through a small grocery store to a huge
departmental store. Retail Industry is heavily dependent on
consumer spending. In fact 2/3 of US GDP is coming from Retail
business. Retail is the second largest industry in US. It has
employed 23 Million people . During economic slow down consumer
spending decreases and it poses threat to the Retail industry.
Consumers confidence is one of the key drivers of the industry.
Decline in Small Stores
It is observed that small independently owned stores are
gradually loosing their foothold in the market place. These stores
are generally called Mom and Pop stores and they offer limited
merchandise to the consumer. These store are facing stiff
competition from the large departmental stores or superstores and
in this process they are closing down their shutters. In many
locations the arrival of a superstore has forced nearby
independents out of business. In the book selling business Barnes
& Noble superstore or Borders Books and music usually puts
smaller bookstores out of business. This is a major characteristic
prevailing worldwide. But it is also true that many small
independent outlets still thrive by knowing their customers better
and providing them with more personalized service.
Internet and E-Commerce
Internet the ubiquitous medium has opened a new avenue in front
of the Retailers. It has offered an opportunity to the consumers to
shop from the home. As it stands today overall Retail sales through
internet may not be that significant but gradually it is gaining
popularity amongst consumers. Amazon.com is the company which is
very successful in this E commerce domain.
Repositioning of Departmental Stores
The appeal of big departmental store is in the wane and they are
trying to reposition themselves. They are repositioning their
product lines to survive in this highly competitive market eg. A
departmental stores which is supplying general merchandise to the
consumer is changing themselves to a giant apparel store.
Rise in Discount stores
Supremacy of Discount store is also one of the distinct
characteristics of Retail Industry today. Discount stores offer
money back guarantee, every day low price etc to lure customers.
They also provide floor help and easy access to the merchandise to
facilitate the consumer. Wal- Mart the worlds largest Retailer
comes under this category of Retail store.
Category Killers
There are Retailers who actually concentrate on one particular
product category and grab a lions share of that market and
outperform their competitors. They are called Category Killers.
Toys R Us (Toy market ), Home Depot (Home Improvement) , Staples
(Office Supplies) are the examples of such Retailers who have
grabbed a major market share in that product category and they have
forced a reduction in the number of players in that product
segment. This is also a distinct trend observed in the current
Retail market. Ten years back there were number of players in the
toy market and no one was controlling more than 5% of market share
but now the number of players has come down to six and Toys R Us is
enjoying 20% market share.
Direct Marketing
With the advancement of technology Retailers have found another
sales channel through which they can reach the consumer and this is
direct marketing. Direct marketing has their root in direct mail
and catalog marketing (Lands End and LL Bean). It includes
telemarketing, television direct response marketing. (Home shopping
network, QVC) . Although an overwhelming majority of goods and
services is sold through stores, non store Retailing is also
growing at a faster rate. Direct selling is $9 Billion industry
with around 600 companies selling door to door. Avon ,Electrolux
,Southwestern company ,Tupperware and Mary key cosmetics are the
examples who have adopted this strategy successfully.
Demographic Changes
Retail industry is impacted by the demographic changes. As a
result of this change taste of the consumer is undergoing a change
and it creates a demand for certain products. World wide Retailers
are keeping a close watch on this change and they are trying to
realign themselves with this change.
Mergers and Acquisitions
Retailers who want to dominate the market place have adopted the
strategy of mergers and acquisitions. This is also one of the
distinct trends in Global Retail Industry today. Instead of
achieving an organic growth Retailers can grow significantly with
the help of mergers and acquisitions. This helps them to occupy
more shelf space in the market place. As the volume increases they
are establishing better control over their suppliers and they are
reducing the procurement cost and in that way they are boosting
their profitability. This is driven by the economic growth factors,
size ,revenue pattern and the customer demand. Sears and Lands End
merger is one of the significant mergers which has happened in
recent times. Another important example would be Nikes acquisition
of Hurley, a well known surfing brand. This has helped Nike to
enter in to a new market segment.
Operational Issues:
In order to survive in this Industry, which is driven by the
consumer demand Retailers need to successfully counter the
operational issues. If the Retailers fail to diagnose and address
those operational issues their existence will be jeopardized.
Supply Chain Management and Logistics
The process of getting goods to the customer has been
traditionally known as Physical Distribution. Physical Distribution
starts at the factory and it ends at the store. Nowadays the
definition of Physical distribution is expanded and a broader
concept has come which is Supply Chain Management. Ideally Supply
Chain Management encompasses the material flow from suppliers
suppliers to the final destination. Retailers need to have a grip
on that whole chain in order to control the procurement and
delivery cost. This will help them to choose the right supplier for
the merchandise. Retailers need to come out of the constricted view
about the supply chain which is viewing the market as a point to
point destination, instead they need to consider the holistic
picture which is a part of Market Logistics. Market Logistics
involves physical flow of materials from point of origin to the
point where it meets the customers requirement.
This Demand Chain orientation can help them to cut down the
procurement cost to a great extent. IKEA the global furniture
retailing giant has successfully addressed this issue and they are
able to sell quality furniture at a much lower cost than his
competitors.
Pricing
In Retailing environment pricing has become a burning issue to
the retailers. Customers expectation from a Retail store has become
very high and customers are looking for more and more bargain
prices. This situation can be referred as Price drought . Price
deflation is taking hold in the Retail environment and any
reduction in volume is complicating the scenario further. This
trend is quite evident in Apparel and Consumer goods market.
Pricing seems to be a key positioning factor and must be decided in
relation to the target market , Assortment mix and competition.
Strategic pricing has become an important strategic tool to the
retailers. Airlines Industry started this strategic pricing
technique where the underlying philosophy is not all consumers want
a particular product at the same time and the degree of demand will
also vary. With this idea in mind different consumers are charged
different prices for the same product or service. Retailers need to
adopt the right pricing tactics in this environment of fierce
competition. Retail stores markdown the price for some items to
attract people, this is called traffic building. They also run
storewide reduction sell. It is observed that a shoe Retail outlet
sells 50% of the product at normal mark up , 25% of the product at
40% mark up and remaining 25% at cost. Some Retailers have done
away with sales pricing and they are resorting to everyday low
price (EDLP). It leads to lower advertising cost , greater pricing
stability and higher Retail profits. Wal- Mart uses this kind of
pricing strategy.
Sales Channels
Design of sales channel is also a key operational issue in
todays Retail industry. Technology has become one indispensable
business component and Retailers need to make use of this
successfully. Retailer needs to come out from the mindset of
traditional store retailing and they need to use all available
channels to reach a wider consumer community. Amongst Non store
Retail channels Internet and E commerce is gradually gaining
popularity. Consumers do not need to come to store for buying goods
or service they can do that over a click of a button from their
drawing room. Retailers need to derive benefit from that .
Marketing through call centre or catalogue marketing is also an
emerging trend . Retailers need to choose sales channels carefully
and need to use all those channels effectively to acquire more
customer centricity. Ultimate objective here is to offer a consumer
a tailor made shopping experience and to provide more easy access
to his product and service offering.
Strategies in Retail:
A business firm can not travel in an unplanned way . To
encounter the business challenges in a highly competitive
environment and to find out a sustainable growth road map Retailers
need to realize the importance of strategic planning. Strategic
planning can be viewed as a stream of decisions and activities
which lead to Effective business strategies which help the
organization to fulfill its objectives. Retail landscape is
changing rapidly and in this changing economic environment
Retailers need to find out the right strategy which will help them
to cope up with this environment and empowers them to take right
decisions for the future. Adopting correct strategy will help the
Retailers to optimize their resources and also it will give an edge
over its competitors. Margin and Turnover are the two important
parameters of Retail Industry and the Retail operations can be
classified into four groups/quadrants.
i) High Margin and High Turnover eg. a convenience food
store
ii) Low Margin and High Turnover eg. a discount store
iii) Low Margin Low Turnover i.e .a dying business
iv) High Margin Low Turnover eg. an up market specialty
store.
Retail business needs to formulate the suitable strategy after
considering its strengths and weaknesses. Hence SWOT analysis will
be an effective tool in determining the correct strategy for the
particular category of retail business.
IT in Retail:
Information Technology has become a key business driver in
todays world. Retailers are also trying to reap in the benefits of
the technology. Thus technology has become a critical and
competitive tool for surviving in the business. Retailers are using
software systems to manage and plan their inventory , to reduce the
procurement costs , electronic ordering , electronic fund transfer
, e mail communication and for many other things. IT is poised to
take a much bigger role in Retail Industry however the high
implementation cost of IT projects has restricted many Retailers to
go for proper IT solution. IT growth areas in Retail are mentioned
below.
Supply Chain Management:
Supply chain is one of the focus areas for the Retailers and
immense opportunity of business process improvement and scope of
technological empowerment is there in this area. In todays tough
economic climate customers have become price sensitive and there is
a price draught in the market . Retailers are struggling to control
the cost and in this environment effective Supply Chain Management
can act as a big contributor. It helps them to integrate with their
suppliers and through collaborative planning retailers can reduce
the cost. SCM solutions will enable Retailers to track their
inventory movement from suppliers premises to the point of sale. It
gives a better visibility in the area of demand planning,
forecasting and inventory management. Worlds largest Retailer Wal
Mart has adopted a state of the art SCM system which not only
tracks the inventory but also it increases the efficiency of the
process. Wal Mart has also introduced the Radio Frequency
Identification (RFID) of merchandise.
CRM
CRM continues to be a growth area for IT in Retail sector.
Advancement in this field helps to maintain sophisticated customer
database and systems that can maximize multi channel returns. This
helps the retailers to understand the customers demand pattern and
enables them to offer a tailor made shopping experience.
Internet
Internet has unfolded lot of opportunities to the Retailers.
Retailers can do business over internet. It can also be used as a
communication medium. Successful Retail community uses internet
technology for reliable communication between Retailers , customers
and suppliers.
Business Intelligence
Business Intelligence is an effective analytical tool which
helps the Retailers to understand the eco system of retail business
. It helps the business community to take mission critical business
decisions which will help them to navigate in the right direction.
In todays world Retailers equipped with such data mining or data
warehousing tool can have the micro level understanding of customer
demand.
Retail scenario in India:
Overview :
Economic liberalization has brought about distinct changes in
the life of urban people in India. A higher income group middle
class is emerging in the Indian society. Demographic changes have
also made palpable changes in social culture and lifestyle . In
this environment Indian Retail Industry is witnessing rapid growth
. AT Kearney has ranked India as fifth in terms of Retail
attractiveness. The industry has got tremendous potential but it
also requires sufficient capital flow. Current Foreign Direct
Investment policy of Indian Government does not allow any foreign
direct investment in this sector however different global retail
players are seriously eying this market.
Industry Characteristics :
Indian Retail Industry is the largest employer after Agriculture
(around 8% of the population) and it has the highest outlet density
in the world however this industry is still in a very nascent
stage. The whole market is mostly unorganized and it is dominated
by fragmented Kirana stores. A poor, supply chain and backward
integration has weakened the whole process. Organized corporate
retailers contribute only a negligible percentage of the overall
retail business. Organized and trained Retail workforce is not
available in India and the overall skill level is low mainly
because of the low maturity level of the Industry.
Business Opportunities
However India can unveil significant business opportunity to the
Retailers. Indian retail sector is estimated to have a total market
size of $ 180 Billion. A McKinsey report on India says organized
retailing would increase the efficiency and productivity of entire
gamut of economic activities, and would help in achieving higher
GDP growth. The factors responsible for the development of the
Retail sector in India can be broadly summarized as follows:
1. Rising incomes and improvements in infrastructure are
enlarging consumer markets and accelerating the convergence of
consumer tastes. Looking at income classification, the National
Council of Applied Economic Research (NCAER) classified
approximately 50% of the Indian population as low income in
1994-95; this is expected to decline to 17.8% by 2006-07.
2. Liberalization of the Indian economy which has led to the
opening up of the market for consumer goods has helped the MNC
brands like Kellogs, Unilever, Nestle, etc. to make significant
inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers.
3. Shift in consumer demand to foreign brands like McDonalds,
Sony, Panasonic, etc.
Major Retail Players in India:
Retailer Current Turn Over in Rs. Crore
Pantaloon 700
RPG550
Shopper Stop400
Life style230
Westside120
Ebony85
Piramyd72
COMPANY PROFILE
It started as a humble one store enterprise in 1986 in
Kolkata(erstwhile, Calcutta) is today a conglomerate encompassing
132 showrooms in 81 cities / 20 states. Indias first hyper-market
has also been opened for the Indian consumer by Vishal. Situated in
the national capital Delhi this store boasts of the singe largest
collection of goods and commodities sold under one roof in India.
The group had a turnover of Rs. 1463.12 million for fiscal 2005,
under the dynamic leadership of Mr.Ram Chandra Aggarwal . The group
had of turnover Rs 2884.43 million for fiscal 2006 and Rs. 6026.53
million for fiscal 2007 The groups prime focus is on retailing. The
Vishal stores offer affordable family fashion at prices to suit
every pocket. The groups philosophy is integration and towards this
end has initiated backward integration in the field of high fashion
by setting up a state of the art manufacturing facility to support
its retail endeavors. 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 2059292 lac sq. ft. in 18 state 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.
INFRASTRUCTURE
Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This
factory has more than 700 imported machines that have a capacity to
manufacturer 150000 pieces a month. The factory occupies 80000 sq
ft of covered space. The Vishal group indirectly gives employment
to more than a 1000 people. These people work in ancillaries that
supply finished goods to the company. They have 10 warehouses that
cater to 132 showrooms in 20 states/81 cities. It is covering about
2059292 sq. ft. .in 20 state across India.
S W O T A N A L Y S I S
Some of the strengths and weaknesses of Vishal Mega Mart are
outlined below.
STRENGTHS:
i) Understanding of the value retail segmentii) Supply chain
managementiii) Logistics and distribution networkiv) Geographical
spreadv) Identifying new locationsvi) Private labelsvii)
Information technology systemsviii) Experienced and skilled
management team WEAKNESSES:
i) Slow performance of the Stores
ii) Advent of Category Killers.
OPPORTUNITIES:
i) Increasing penetration in the country by leveraging our
supply chain, distribution and logistics network
ii) Emphasis on Backward Integration
iii) Expansion of FMCG
iv) Procurement from low-cost production centres outside
India
v) Increasing customer satisfaction and our base of loyal
customers
vi) Continue to upgrade information technology systems and
processes
vii) Continue to train employees and seek entrepreneurship from
employees
THREATS:
i) Demise of Independent small stores
ii) Demographic Changes
P R O D U C T S
FOODMART Beverage
Cooked Indian
Cooked Chinese
Drinks
Fruits & Vegetables
B R A N D S
Vishal Mega Mart is one of Indias fastest growing retail chains.
The chain currently has 132 company stores in 20 states / 81 cities
in India. The Vishal brand is known for great modern style for men,
women and children. Vishal offers high level fashion styling. Since
1986, their name has been synonymous with quality, value and
fashion integrity. They 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 them to offer the lowest possible and most reasonable
prices. Their goal is to provide a range of fashion wear to suit
every pocket. Their product mix represents the most current fashion
trends in tops, bottoms, formals and accessories for men, women and
kids. Their courteous staff will ensure that consumers get a
perfect fit.
The Popular Brands of Vishal Mega Mart are:
Zeppelin
: Mens Shirts & Trousers
Fizzy Babe : Ladies & Kids Girls
Kitaan Studio : Mens Shirts & Trousers
Jasmine
: Ladies & Kids Girls
Blues & Khakis : Mens Trousers
Zero Degree : Kids Boys
Paranoia
: Mens Shirts & T-Shirts
Soil
: Mens Shirts
Chlorine
: Mens Shirts
Massa Bay : Mens Trousers & Bermudas
Fume
: Mens Shirts, T-Shirts, UnderGarments.
Q U A L I T Y C O N T R O L
The dedicated professional Quality Control team of Vishal Mega
Mart ensures the quality of products. Their quality checks start
with basic cloth and accessories and end with doing a full
inspection of the finished items. They believe that Quality Control
is the key to success. Their goal is to give the customer with the
best quality and value for his money.
O P E R A T I O N S B L U E P R I N T
STORE OPENING
Objective:
To open the store:
1. In presence of the authorized personnel.
2. To prepare floor for customer readiness.
CRITICAL ANALYSIS OF VISHAL MEGA MART SUCCESS
In the display of products and visual merchandising standards,
thus providing a common frame of reference to the customer no
matter where they shop. To provide an environment for the customer
which is both interesting and easy to shop, which in turn promotes
and encourages multiple and repeat spending. Provide guidelines on
how to launch a promotion and how to launch sale; press conference;
product launches + Events to be added.
Merchandising principles:
Merchandise on display reflects a good availability of product
and sizes. Merchandise on display at the front of the departments
and in focal areas should reflect the stores and company image and
branding strategy. Where the product is bought in more than one
color-way, the full color range and styles (where possible) is on
offer to the customer. No Kimballs, swing tickets or tags are
visible to the eye where possible these should be concealed inside
the product or behind the product display. No packaging elements
such as stuffing, cardboard slips etc are on display. All lights
are properly focused/ angled on the intended display. Ensure that
no lights are out of working order and that the correct bulb color
/ light emitting shade is being used e.g bright white light etc.
All signage (POPs) being used is correct for the fixture and
display intended. All promotions are highlighted with the correct
price and type of promotion. Except during sale, merchandise is
laid out according to the same end use within the floor layout
set-up. This rule can be broken to create areas of cross
merchandising. This is normally best suited where two products are
bought together. Such adjacencies are where a formal shoe is bought
with a pair of formal pants for example, but it can be as simple as
a pair of socks or handbag etc. This is known as co-ordinated
fashion accessorizing. Depending on the shape and size of the store
the fixtures are placed at 90 degrees (perpendicular) to the walls.
Should the fixtures be required to be angled at 45 degrees to
accommodate customer flow, this will be conveyed and decided by HO.
No out of stock signage will be used and in the case where a
particular style is sold out, a duplicate style or a style which is
already on display should be used to fill the space. All displays
should make use of intermittent use of acrylic display stands to
create excitement and highlight a particular style of shoe. Shelf
talkers draw attention to a particular product such as a special
price, new line or arrival, a promotion, end of range, best seller
etc. A fine balance should be achieved in display between not
over-displaying the shelf where the display becomes too busy and
cluttered. This will leave the customer confused with too many
decisions to make. Also care should be taken not to leave the shelf
under displayed this will leave the customer frustrated for lack of
choice. Hanger disciplines should always be maintained. This means
that no empty hangers on the sales floor, that the straight arm has
a full size curve on display, and that the hanger has the correct
size indicator for the shoe on display. All POP signage must be
placed inside an acrylic sleeve / sign holder. Always ensure that
the thematic and lifestyle posters on display are the latest / most
recent and up to date, and in line with the marketing calendar
dates and promotions. No shelf edge labels are to be used. Most the
times there will only be One Facing product on display and no more
than Two Deep at any given time unless displayed on a peg hook with
a full size curve. Departments, products and brands should be
proportionately displayed according to the sales performance of the
merchandise. In other words the space allocated to a particular
department, product or brand should be in direct proportion to the
contribution of the sale of the product to the rest of the
store/brand/department etc. Sales performance can be analyzed using
margins, sales qty, sales value, clearances, contribution, sales
per square feet etc. Comparison of like for like; actuals vs
projected; and comparison of seasons + sale periods of previous
years. Types of fixtures and where it can be found:
1. Feature tables, nested tables, two and three tier
tables.Normally found as a lead into a department or entry to the
store to create an element of interest and bring the customers
attention to the latest newest styles and fashion or new
promotions.
2. Floor and wall GondolasGondolas are normally used to house
bulk displays and are more suited to Hypermarkets and Supermarkets
(high volume trading). Gondolas can hold a full size curve of
merchandise by hanging or using shelving.
3. Slotted wall bays with shelves, (or slat walls with slats and
pegs).All wall space is premium display area. The perimeter walls
should house the best, newest and most popular brands and styles.
The wall bay is normally highlighted with the brand signage and
sometimes a mood poster. Slat walls are ideal for accessories.
4. Feature wallsThese are found in-between the normal slotted
bay / shelved wall and acts as a break or breathing space from one
sub department to the next. These areas are normally housed quite
light in stocks and have the very latest designs and fashion to
highlight to the customer in order to get the customers attention
due to the price point or styling of the shoe/bag.
5. Hot spots, primary focal areasThese are found at junctions
where two departments meet, or an area of high traffic flow such as
a column, a feature wall or a main walk-way. Hot spots normally
have a strong visual presence such as in apparel where a mannequin
is on display. This can be achieved in footwear by creating a
focused area such as a range of ladies casual boots all brought
together in one compact space. Mixing of brands is acceptable when
done in this instance only.
6. Secondary focal areasThese areas are used primarily for end
of sale periods, end of range lines, older stocks and less popular
merchandise or broken ranges. Care should be taken to move older
stocks to these areas when new stocks arrive in the store. End of
ranges is the last of the best sellers and should be signaged
accordingly.
Window layout:
Window displays must always show the newest and latest trends
(except of course when on sale). Windows should be changed
regularly at least once a week and preferably twice weekly if new
arrivals and promotions provide enough variety. The latest posters
and promotions must be kept on display for the period stipulated
only. Pricing should always be prominent and easily identifiable.
Run a story or a theme in the window ensuring that the products are
available in the store do not haphazardly place different items and
lifestyles. A focused window could be a display of kids shoes for
back to school. Or a summer holiday window promoting mens sandals.
Or sports window promoting the various types of running shoes on
offer in the store etc etc.Sale, promotions and pricing:
Promotions will be advised by H/O through the Promotional Advice
document. This document will give detail on the promotion start
dates, end dates, what type of product will be on promotion, what
type and quantity of POPs to use and where, the layout and
positioning of the promo, and specific selling instructions.
Promotions will occur on a weekly / monthly basis depending on the
need and requirement. Once the promotional advice arrives the store
person responsible (CSA /DM) should check on stock and promotional
material arrival dates and qualities are correct. If the stock and
promotion material does not arrive on time, it should be followed
up with the category and marketing team at HO. The promotion should
launch on the specified time and date no sooner or later. Launch
the promotion either the evening before the launch after store
closure, or the same day a couple of hours before the store opens.
Stock levels during the promotion must be carefully monitored and
re-orders requested or placed if available. All staff should be
aware of the promo in the store and know the offer and pricing of
the promotions. Promotions should always be placed in a position of
prominence. Promotions should be placed on nested tables at the
front of a department, on hot spots, focal areas, (gondola ends).
The promotions can be run on perimeter walls as well in the case of
large promos such as the launch of sale etc. Always use signage to
highlight a sale and promotion. There should be high visibility of
both signage and stock when on promotion. Shelf talkers, banners,
posters, in strategic positions put in both acrylic sleeves and
clip poster holders to be used or back lit light boxes. Only use
danglers during sales or promotions to avoid too much clutter and
follow the strict guidelines from marketing on placement positions
+ quantity + standard sizing. Ensure the correct prices are used to
promote the product. This need to be double checked against the
price promotion list / price look up file / markdown report. All
new products arriving at the store should be checked that they are
carrying the correct barcode label and price. This can be cross
checked by scanning the article at the time of receiving as well as
at the POS to be sure of the latest pricing for the item. (this is
done in the price look up file menu). Once the promo ends, and if
the promotion is not to be re-launched or run again the promotional
material should be destroyed. If the promo is to be re-run the
promo material should be kept safe till the next promo launch date.
Stores to advise before a new promo if they need extras or
resending new quantities. At the end of the promo if there is stock
left over ensure that it is worked back into the floor stock. If
the promo has sold old out before time or the promo has ended place
regular stocks as per the plan-o-gram back in position. Stores will
be notified of sales well in advance and this will be according to
the marketing and promotional calendar. Sale markdown price look up
file (price report) can be downloaded by stores a couple of days
prior to the sale / promo launch so that the store can ready itself
and prepare for the sale launch. Once the staff receives the
markdown schedule / price report they will identify the stock in
their department and isolate the stock to prepare the stocks for
the sale. If the markdown is a seasonal markdown and the volumes of
stock are high, the marking down and moving of products should be
done on the floor after the store is closed but before the launch.
Temporary price changes should be indicated via a printed shelf
talker. This can be indicated either as a percentage-off the price
such as 20% off, or it can be a price indicator such as Now Only
Rs299. A swing ticket which gives the was/now price should also be
attached to the product. The was/now ticket will be handwritten
with the old price and the new price. This procedure is done for
all temporary markdowns. Where there is a permanent markdown, the
new price should be indicated using a Meto gun label and stuck to
the swing tag taking care not to conceal any detail on the barcode.
If there is a change to the article detail or where a product has a
damaged or lost barcode a new replacement barcode / swing ticket
will be required to be printed and attached to the item. Any old
barcodes removed / replaced by a new barcode should be stapled to
the price change report and handed in to the admin manager for
filing and checking. The shelf talkers can be put on top of floor
gondolas / fixtures, attached to the shelf edge or displayed on top
of the shelf itself / display stands Sale items will be displayed
within the sub department / brand area and will be by price point
within a particular brick. Sale when launched will take priority
and will be up front in the store /department. When the store is on
sale, all temporary signage should be removed from the floor and
only Sale signs should be visible or on display. As sale stock
levels decrease and during further reductions and final clearances
the sale will be moved to a secondary position. The signage must be
changed during further reductions and final clearance to reflect
accordingly. Once sales ends the signage must be taken down and the
floor returned to a steady state of normal trade. This will involve
putting all full priced products in its proper positions according
to the most recent plan-o-gram or layout. Where the stores stock
levels are exceptionally low stock should be spread out evenly but
where it is not possible to make an adequate display management may
take a decision to remove one or two fixtures from the floor and
spread out the floor fixtures. This is the exception to the rule of
course. All brands running promotions will supply approved
promotional material / signage for the category, and it must be to
our size and specification.PROCESS DESCRIPTION The front/back
office door of the store has to be opened by the designated
management one hour before the store opening time for the
customers, in the presence of the security personnel.
Only the designated manager / management team can open the
store. No other person will be allowed to open the store, unless
otherwise sanctioned.
The schedule for executives of the store needs to be drawn two
weeks in advance, the schedule needs to be made and be available
with the Security and all concerned. A copy of this list is to be
pasted in the Security Area outside the Staff Entrance. In case any
change is to be made in the schedule, it needs to be sanctioned by
the Store head.
The designated owner or the business manager opening the store
has to check the locks for the security seal and for any tampering
(attempts to break the lock). In case the seal is secure, the lock
is opened. If it is found tampered, the lock must be opened in the
presence of the security personnel and the store, safe, merchandise
and valuables checked for theft. This must be reported to the
Territory Head immediately for follow-up.
Once the front/back door is opened, the back office lights have
to be switched on.
The Security Officer and the designated manager sign on the
Store Opening Register (Refer to the table below)
DateTimeNameRemarksSignature
Operations
Security 1
Security 2
The Security Officer and the designated manager carry out the
check as per the checklist mentioned in the Store Opening Security
Checklist (Refer to the table below)
Daily Store Opening Security Checklist:
ParticularsRemarks
Checkpoint
Staff Entrance (if applicable)
Customer Entrance
Emergency Exit
Generator Room (if applicable)
Security / server Room (if applicable)
Cash Counter
Back Store Entrance (if applicable)
Miscellaneous
Disarming of Security System
Fire Extinguishers in Position
Water taps check / Toilet
Emergency PA System Check
Safe
Admin office
Gift voucher cupboard etc
Stock on floor
If they find any abnormality as per their Checklist, it is noted
on the Remarks Columns
He has to switch on the lights and the AC of the server
room.
He has to then switch on the UPS machines, the server and
monitor and Do Start of Day + print reports.
Action + file reports.
When the above activity is taking place, no other computer can
be switched on.
The department owner along with the security personnel has to
check the seal on the safe, where the previous day's cash is
deposited, for any disturbance or tampering. (not applicable for
time delay safes).
All Employees while entering will swipe their identity cards in
the machine and enter the attendance register. All the CSAs /
support staff have to report for work, half an hour (approx) before
the store opening.
The designated department owner/store manager has to then take a
round of the store and thoroughly check the store for any
disturbances. He/she also has to check for any damages regards to
racks, signages, coffee table, chairs/tables, shopping bags,
trolleys etc. that might need repairing or replacement.
Replenishment, filling up, department / plan-o-gram changes,
promotions for the day, windows etc need to be made / implemented
before opening.
The security has to prepare the following checklist as part and
parcel of his duty performance
TASK - SecurityPERFORMED
Store Opening. Lock/seal check of the back office door &
front door.
Check to ensure No smoking is permitted in store premises
Checking of all CSAs entering and exiting the store.
Checking of goods entering into the store (goods meant for
exchange, merchandise, non trading goods, capex items, etc)
Checking of goods exiting the store (purchase returns, etc)
Responsible for all customer belongings deposited at the baggage
counter. (if applicable)
Security to check sales floor + BOH for people hiding in the
store; items kept behind by someone which may constitute a threat
or risk to store + staff security.
START OF DAY PROCEDURES
Objective:
To ensure all administrative procedures run and are implemented
before store opens:
Procedure must be done by administrative manager or store
management
Must be done before store opens
PROCESS DESCRIPTION
The main administrative terminal must be opened and start of day
is run
This ensures that the system is reset for the new trading day
and all reports for the previous day are run and printed.
Reports to be generated
The following store reports must be run before the store
opens:
Previous days sales report
Previous days over / under rings
Banking totals and bank deposit slips
Over / Under banking totals
Sensitive transactions report and gift vouchers
reconciliation
Price discrepancy report and new updated price file
Petty cash totals
Salaries report paid by store for casuals / contractors
Stock report across all departments (closing and opening stock
on hand)
Loyalty card members report
Repairs / Lay-byes report
Branch expense and profit report
Markdown file (if applicable) and price report
Action to be taken
All manual transactions from the previous day must be captured,
before start of day but ideally before store closure the evening
before. (Manual transactions; 2x persons involved + managers
authority)
Cash count reconciliation and float check to be done
Any stock counts done and adjustments made accordingly and
recorded
All markdowns whether temporary or permanent are required to be
action-ed and price changes implemented.
New price signages in place as per above
All sensitive transaction dockets must be cross checked against
the report for authenticity and management authorization
Stock requests, stock shortages or over-stocks to be action-ed
accordingly
All RTMs, including manufacturer faults and product recalls to
be action-ed
All received stock to be entered into the system and IBTs
transferred or acknowledged what ever may be the case.
Store turnover, sales associates targets, to be captured in the
store ops file/daily enclosure.
Store and staff targets issued
Store staffing schedule checked in accordance with the staff
roster and available budgets.
Branch expense report generated and checked for variances to
budget
Basic Store Opening procedures:
Complete banking for previous day
Issue floats to cashiers
Replenish floor from BOH. Ensure all styles on display. All size
curves represented.
Check promotions for the day and staff understanding
Check prices, and update or change where necessary
Stock rotation if necessary
Clean fixtures / departments
Ensure all POS have bags, till rolls etc
Implement new promotions and displays
Update all signages
Analyze sales and stock reports
Issue sales targets
Check adequate staffing. Check dress code.
Conduct any relevant in store training before opening
Receive stock from DC
Return RTMs to vendor
Conduct Stock counts on specified days
Check lights are working and correctly positioned
Complete any bulk RTMs / customer complaints
STORE READYING PROCESS
Objective:
To ensure all systems at the premises are in a working condition
before store opening for the customer.
Process:
The housekeeping has to start work one-hour before the store
opens. Housekeeping Checklist must be signed by the store
manager.
TASK - Housekeeping9.00 AM1.00 PM5.00 PM
Check PointCheck PointCheck Point
123451234512345
Door Mats, Door Handles & Door Cleaned. Ladies/ mens toilet,
front door, back door etc
Mopping of Floors
Emptying/ Cleaning of dustbins
Cleaning of cash counters
Cleaning of Baggage Counter
AC ducts grills cleaned
Dusting/ Checking of Cob webs at corners and ceilings
Spraying freshners
Fire Exits Cleaned
Cleaning and Drying Toilets
Cleaning of Staff Room
Wiping down of all surfaces + glass
Empty shoe boxes/unused required to be thrown away
Task performed by: Name and Store Manager's Signature:
The maintenance department has to cover all the checks required,
half an hour before the store opening, to ensure that the store is
ready for opening. TASK Maintenance TeamPERFORMED (Twice a day)
Checking the Glass (sliding ) Door or roller shutter is
working
Checking of all lights daily.
Checking PA System volume
Checking of lighting, fused lamps and change.
Checking of Air Conditioning system. To switch on the same, 20
minutes before the store opens. To check the temperature levels in
the store, every two hours, to ensure that the air conditioning is
functioning in its optimum capacity maintained at approx 22*c.
Checking the music system & speakers.
Checking for water leakage on ceiling, walls, taps &
flush.
Checking whether the flush in the toilet is functioning
right.
Checking whether the wheels of the trolleys are smooth and
working.
Query POS Table Cleanliness
Checking the EPBAX phone system.
Checking whether the telephones are changed from the night
answering mode to the day mode.
Checking Fire Exits; and fire extinguishes are in place +
working conditions
Other:
Task performed by: Name
Store Managers Signature:
Store Managers Checklist to be done before the store opens DAILY
STORE CHECK LIST Store Manager
DATE :-
Store Location :
DETAILS MoTueWedThFriSatSu
1.Signages & Communication
Outdoor signboard in good condition
Signages & Acrylics in place
Correct & concise signages in place
Is the latest communication up regarding events etc?
New & Noteworthy items are highlighted
Bestsellers are highlighted
Events & Promotion Posters are up
Are Section & Sub Section Signages in place?
Store Policies & Services backdrop in place
2.Maintenance Related
Are Glass surfaces clean?
Is the Floor clean?
Is the Ceiling clean?
Are the Toilets clean?
Are the A/Cs working and right temperature maintained?
Is the Music playing at right levels? Right type of music?(Only
CDs issued by H/O to be used.
Is the baggage counter maintained well? (if applicable)
3.Products
Are the Products properly merchandised?
Is the merchandise clean & surfaces clean where
required?
Are all sides seen by customers well presented?
Are depts correctly positioned / presented / as well as fixtures
etc
4.People
Are all the staff in uniform?
Are all the staff wearing Badges?
Are the grooming standards being maintained?
Are the attendance & statutory registers being
maintained?
Are the individual personnel files being maintained?
Is the shift schedule & monthly roster being maintained?
Are all the sections being adequately manned?
Regular training on product knowledge and service being
conducted?
Grooming standards of security
Greeting and communication of security
Vendor records kept + checked (ito concessionaire)
Check overtime schedule is correct
5.Lighting & Fixtures
Layout as per plan
Are all lights working and properly focused?
Are the floor display stools in good condition?
Are the fixtures as per plan?
6.Instore Services
Is the Customer complaint book being maintained?
What is the Status on Customer feedback forms?
Are repairs being followed up?
7. Store Consumables
Are all the following consumables available & as per std
requirements
POS Dockets
Gift Tags
Visiting Cards
Suggestion Cards
Carry Bags
Bills , till rolls / EFT slips etc
Wrapping Papers
Rewards enrolment form
Gift Vouchers & Envelopes
The CSAs have to report to work half-hour before the store
opening time TASK CSAs LISTPERFORMED
Shelves, racks and fixtures are dust free.
The items are dust free.
Items are neatly arranged in a logical format on the shelves as
per required layout display format.
All the items are in their respective sections/subsections.
All the Signages are in place.
New arrivals & Best selling items are placed up front
Merchandise displayed on the floor/shelves/fixtures is properly
arranged and tagged. Price tags + (security tags) correct and in
place.
Housekeeping in the section in place.
Monitor the levels of pilferage & shrinkage.
Shopping bags & (trolleys) are in place.
No cartons or merchandise bins lying on the floor or empties
Fixtures alignment are correct
The CSAs then proceed to ready the floor for selling to
customers. It is the responsibility of the designated
department/store manager to check against the checklist provided
for housekeeping and maintenance, whether all the activities listed
within have been carried out successfully. A register for the same
has to be maintained and the same has to be signed by the Business
Manager.
TASKS TO BE PERFORMED STORE MANAGEMENT / BMs /DMs
/Supervisors
Monitor the Reporting time of the CSAs.
Rescheduling of CSAs if any of them are absent from work.
Monitor the floor etiquette practiced by the CSAs
Grooming standards of CSAs
Overall Cleanliness standards in the store (housekeeping
maintenance). Check against the checklist and identify any
discrepancies.
Check the Visual merchandising in the store, Merchandising,
Product Availability + correctness.
Interacting with Customers and understanding their needs and
expectations.
Regularly analyze the customer feedback forms, and determine the
corrective course of action. It is critical to respond to customers
providing constructive feedback using a pre-formatted letter.
Sort out problems amongst CSAs. Staff in general.
Discuss Service Issues with CSAs and sort them out.
Monitor Walk-in's and conversion rates.
Create the daily sales report & mail it to the BM
Monitor competition on regular basis.
Initiate ideas & actions plans, to increase walk-ins,
conversion rates and the overall sales of the store.
Complete security check / audit list and all things attached to
it.
The security personnel have to sign the attendance register,
when they report to work as well as when they are leaving (this
would be critical as they are paid overtime for extra working
hours). If the security person has worked overtime, he has to enter
the reason for the same and the name of authorized personnel who
has approved the same, in the register.
The department owner has to ensure that all CSAs meticulously
follow the grooming standards
The designated department owner has to then switch on the POS
machines at the cash counter. If there is any problem, which can't
be sorted out, the department owner has to ensure that the required
help (IT) is called in to sort out the problem, and the system is
up & ready when the store opens to the customer. If the problem
cannot be sorted out, the billing has to be done manually, till the
system is corrected. Follow manual procedures, and capture in the
POs same day and before end of day if possible. Half-hour before
the store opens for the customers, the tea vending machine located
at the back-office has to be switched on. The same has to be
switched off after all the associates of the shift have served
themselves.
Twenty minutes before the store opens to the customers, the
lights and the Air Conditioning of the entire store has to be
switched on.
The designated department owner / Store Manager has to conduct a
morning meeting everyday, with all the customer service associates,
wherein the previous days sales figures, conversion rate, walk-ins
have to be discussed. If there are any customer complaints/specific
issues the same have to be discussed during this meeting. For the
associates coming in the second shift, they have to be addressed in
the evening by the department owner in charge of the second shift.
Designated days for specific identified training needs to also do.
It is critical for the store manager to conduct a meeting once a
week with all the associates of the store, including the back
office personnel. This meeting would essentially serve as a forum,
wherein all the associates can come together and voice out their
issues and problems, which have to be addressed and sorted out by
the manager.The store has to be neat, clean and in order, at the
time when it is opened to the customer.
LITRATURE REVIEWIn the background of high consumerism and income
of the urban consumers, in recent year there are a number of
companies have expressed their interest towards retail sector
outlets. As a result numbers of shopping malls have started their
operations in metro and urban areas. Pantaloon, big bazaar, Vishal
Mega Mart, Reliance Fresh are the best known examples of retail
sector outlets in India.Retailing is the interface between the
producer and the individual consumer buying for personal
consumption. This excludes direct interface between the
manufacturer and institutional buyers such as the government and
other bulk customers. A retailer is one who stocks the producers
goods and is involved in the act of selling it to the individual
consumer, at a margin of profit. As such, retailing is the last
link that connects the individual consumer with the manufacturing
and distribution chain. Some of the key features of retailing
include
Selling directly to customers with out having any
intermediaries
Selling in smaller units / quantities, breaking the bulk
Present in neighborhood or in the location which is quite
convenient to the customers.
Very high in numbers
Recognized by their service levels
Fitting any size and or location
It is assumed that due to the entry of a number of retail
outlets in the urban and semi urban areas, the mindset of the
existing customers have undergone drastic changes. Besides it is
also reported that the traditional retailing such an age old
Grocery shops have directly faced competition with the organized
retailing sector. In some parts of the country, it is reported that
the traditional retails are resisting the entry of organized
shopping malls. For instance the traditional retails of Bhubaneswar
with the active support of the consumers at large didnt allow
reliance Fresh to start outlet initially.
RECENT TRENDS
Retailing in India is witnessing a huge revamping exercise as
can be seen in the graph
India is rated the fifth most attractive emerging retail market:
a potential goldmine.
Estimated to be US$ 200 billion, of which organized retailing
(i.e. modern trade) makes up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores
is estimated at 24%
Ranked second in a Global Retail Development Index of 30
developing countries drawn up by AT Kearney. RETAIL SALES IN
INDIA
GROWTH FACTOR FOR INDIAN ORGANIZED RETAIL INDUSTRY
India's economy is booming, due to so many economic reforms.
the rise in the working population which is young and reduction
of the unemployment rate.
pay- packets which are hefty, and having a huge package of
salary package.
more nuclear families in urban areas
rise in the number of working women
more disposable income and customer aspiration
western influenced life style is adopted by all the people.
growth in expenditure for luxury items increases.
GROWTH OF RETAIL INDUSTRY:
Growth of Retail Companies in India exhibits the boom in the
retail industry in India over the years. The increase in the
purchasing power of the Indian middle classes and the influx of the
foreign investments has been encouraging in the Growth of Retail
Companies in India.
Reason for the growth of retail industry is
Existing Indian middle classes with an increased purchasing
power
Rise of upcoming business sectors like the IT and engineering
firms
Change in the taste and attitude of the Indians
Effect of globalization
Heavy influx of FDI in the retail sectors in India
TYPES OF RETAIL
The retail industry is divided into organized and unorganized
sectors. Organized retailing refers to trading activities
undertaken by licensed retailers, that is, those who are registered
for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, and also the privately owned large
retail businesses. Unorganized retailing, on the other hand, refers
to the traditional formats of low-cost retailing, for example, the
local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Retailing Formats in India
Malls
The largest form of organized retailing today. Located mainly in
metro cities, in proximity to urban outskirts. Ranges from 60,000
sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping
experience with an amalgamation of product, service and
entertainment, all under a common roof. Examples include Shoppers
Stop, Vishal Mega Mart, India bulls, Pantaloon.
Specialty Store
Chains such as the Bangalore based Kids Kemp, the Mumbai books
retailer Crossword, RPG's Music World and the Times Group's music
chain Planet M, are focusing on specific market segments and have
established themselves strongly in their sectors.
Discount Stores
As the name suggests, discount stores or factory outlets, offer
discounts on the MRP through selling in bulk reaching economies of
scale or excess stock left over at the season. The product category
can range from a variety of perishable/ non perishable good
Department Stores
Large stores ranging from 20000-50000 sq. ft, catering to a
variety of consumer needs. Further classified into localized
departments such as clothing, toys, home, groceries, etc.
Departmental Stores are expected to take over the apparel business
from exclusive brand showrooms. Among these, the biggest success is
K Raheja's Shoppers Stop, Vishal Mega Mart and now has more than
seven large stores (over 30,000 sq. ft) across India and even has
its own in store brand for clothes.
Hyper Markets / Super Markets
Large self service outlets, catering to varied shopper needs are
termed as Supermarkets. These are located in or near residential
high streets. These stores today contribute to 30% of all food
& grocery organized retail sales. Super Markets can further be
classified in to mini supermarkets typically 1,000 sq ft to 2,000
sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000
sq ft. having a strong focus on food & grocery and personal
sales.
Convenience Stores
These are relatively small stores 400-2,000 sq. feet located
near residential areas. They stock a limited range of high-turnover
convenience products and are usually open for extended periods
during the day, seven days a week. Prices are slightly higher due
to the convenience premium.
MBOs
Multi Brand outlets, also known as Category Killers, offer
several brands across a single product category. These usually do
well in busy market places and Metros. Berhampur is an important
town in the Southern part of Orissa. Most of the business
transactions of Southern Orissa concentrate in berhampur. It is
found that the traditional retail stores are scattered around
different clusters of the city such as Bada Bazar, Vapur
Bazar,Annapurna Market . In last two a couple of organized retails
have entered into the city for the purpose of grabbing the market
opportunities prevailing in the city. The organized retails mostly
include Kokata Bazar(Urban Bank road), Vishal Mega Mart(Churh Road)
and The World(Giri Road).
In this background, present study is modest attempt to
understand the impact of Vishal Mega mart on traditional
Retailing.
Vishal Mega Mart,
Today Vishal Retail Limited, Flagship Company of Vishal Group,
engaged in Hyper Market stores with an average area of 25,000 to
30,000 sq. ft. through an impressive chain of more than 100 fully
integrated stores in spread of more than the area of around 22,
00,000 sq. ft. in 69 cities across India & has a plan to cross
total retail area of 35 lakh sq. ft. in tier II and tier III cities
by the end of 2009.
Traditional retailing
traditional retailing or we can say the unorganized retailing
are the traditional formats of low-cost retailing, for example, the
local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc.
Future is thinking beyond horizon & in order to keep its
pace with the modern retail, Vishal Retail Limited is spreading its
wings. Instead of resting on its laurels the Group are busy
identifying new avenues of growth by venturing in other formats
like cash & carry, convenios as well as specialty stores and
inspiring local retailers to grow along with the big names. The
group has tied up with HPCL to open corner stores at their petrol
pumps and in addition to the above Vishal has come up with an
institute to train manpower for the service industry.
Today Vishal Retail Limited, Flagship Company of Vishal Group,
engaged in Hyper Market stores with an average area of 25,000 to
30,000 sq. ft. through an impressive chain of more than 100 fully
integrated stores in spread of more than the area of around 22,
00,000 sq. ft. in 69 cities across India & has a plan to cross
total retail area of 35 lakh sq. ft. in tier II and tier III cities
by the end of 2009.
According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail
Limited, the group owes its origin to a small 50 sq ft shop in
Kolkata's Lal Bazaar that started selling readymade garments. In
tune with the pulse of the market, he envisioned a mega store that
would sell garments at prices none other could match. . The first
big store opened in Calcutta's Esplanade area in 1997, under the
banner of Vishal Garments. He was involved in all the aspects of
the business: right from sourcing the garments to interacting with
customers. And this led to his greatest finding The Vishal
Group.
After identifying the immense market in fashion garment for the
masses, He moved to Delhi in 2001 and opened his first store in
Delhis Rajouri Garden by the name of Vishal Mega Mart (The jewel in
Vishal Groups crown) and then there was no looking back for Mr. Ram
Chandra Agarwal. At present, in addition to garments, Vishal Mega
Mart stores retail the entire range of household products, FMCG and
electronic goods. Vishal's prices are roughly 15 to 20 per cent
less than other mass market garment labels.
Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes
that the shopping habits of Indians are changing due to their
growing disposable income, higher aspirations, relative increase in
the younger population, and the change in attitudes towards
shopping. The emphasis has changed from price consideration to
design, quality and trendy. Age is also a major factor that affects
the spending decisions of an individual. Consumer spending is an
important factor that affects the economic growth and development
in a country. As a trend, consumer is more educated. He has access
to all reforms taking place through various arrays of
communication. He is becoming a value shopper everyday. Keeping
this in mind, the group is now looking for franchisees to join
hands with Vishal and grow under common banner. This partnership
will help small retailers to survive the onslaught of organized
retail as it will enhance their competitiveness. Small stores can
avail of the benefits on account of the economies of scale, a key
advantage for big retailers. As per the plans, Vishal Retail will
completely take over the supply chain of its franchisees and
provide them with technology, new practices, visual merchandising
skill and special promotional schemes, besides its brand and
costumer base.
Some of the Franchisee exclusive business categories are
Mens Fashion
Ladies and Kids
Footwear
Toys and Games
Home General
Convenience (FMCG)
CDIT
Watches
Mobile
The Group also has a plan to raise around Rs 200 crore through
preferrential issue in the next few months to fund the companys
expansion plan. Mr. R C Agarwal said Rs 100 crore corpus raised
through the initial public offering had already been utilized and
more money was required to push the expansion plans further.
The group has registered a consistent growth over the years. It
recorded a whopping turnover of more than Rs.600 crores in 2006-07
as opposed to a turnover of Rs 288 Crore for 2005- 2006. This
ascent has inspired the Group to chalk out an ambitious expansion
program, with expansion and growth plans being implemented on
different dimensions. Retailing is an engine for taking merchandise
to the end-users. There is a lot of opportunity in this sector for
us since demand of the potential consumers are not being met under
the existing facilities. Therein lies the road to success. says Mr.
R C Agarwal
RESEARCH METHODOLOGY
RESEARCH OBJECTIVE
Understanding the process by which merchandise buyers make their
decisions and the degree to which their decisions are optimal
To understand the role of private labels and their impact on
retail sales and profitability.
Brand positioning of Vishal Mega Mart.
To find the brand personality of Vishal Mega Mart and its impact
on both merchandise and overall store image across market
segment.
To compare the sales and profitability of branded and
non-branded products at Vishal.
To study the consumer purchasing behaviour.
To identify the buying motivation and concerned factors while
consumers to select merchandise at vishal Mega Mart.
To study and analyze the customer perception about FMCG
Products. To know the effect on sales after advent of organized
retailing. To know the level of customer satisfaction visiting
Vishal Retail shops. To study the changing trends in branded retail
industry. To analyse the key aspects of apparel branding and
retailing. To study the targeting segmenting and positioning in the
apparel retail industry.HYPOTHESIS
Customer Perception can be changed over the period of time
provided with the good marketing and customer service approach.
Customer perception impact to the balance sheet of the firm.
RESEARCH METHODOLOGY
This include both primary as well as secondary research
PRIMARY RESEARCH: -
I will collect the data from the customer who is visiting to the
store.
SECONDARY RESEARCH: -
I will collect the Secondary data from the Internet, Book and
Journal.
Tool Used:
Bar Graph , Pie Diagram
Sampling Method:
Random Sampling chosen by the gathering of data ( I will collect
the data from 100 individual customer)
Target Audience:
Dealers, Distributors & Marketing manager of the firm
SCOPE OF THE WORK
Retail is India's largest industry. It accounts for over 10 per
cent of the India's GDP and around 8 per cent of the employment.
Retail sector is one of India's fastest growing sectors with a 5
per cent compounded annual growth rate. India's huge middle class
base and its untapped retail industry are key attractions for
global retail giants planning to enter newer markets. Driven by
changing lifestyles, strong income growth and favorable demographic
patterns, Indian retail is expected to grow 25 per cent annually.
It is expected that retail in India could be worth US$ 175-200
billion by 2016.
JUSTIFICATION OF THE CHOOSING TOPIC Today, the role of the
distributor as an intermediary has morphed into that of a
'disintermediary'. A distributor plays a virtual role, an almost
invisible part of a smooth supply chain. Third-party logistics
providers help ship goods from one part of the globe to another in
a day, while a more customer-centric distribution chain enables
direct ordering and tracking of orders over the Internet. The use
of databases, communication systems and the foremost advanced
software are crucial to any supply chain management system. Optimal
management of a supply chain results in revenue enhancement through
high customer satisfaction and repeat sales. Web enabling a supply
chain helps connect an enterprise to all its trading partners
taking away all the weak links existing within it. \
DATA ANALYSIS AND FINDING1. Are you visiting the store for the
first time?
PARTICULARSNO OF RESPONDANTS% OF RESPONDANTS
Yes147%
No18693%
TOTAL200100%
Inference:
According to the survey done, 93% of the customers say that they
have visited the store many times whereas rest 7% of the customers
say they are visiting the store for the first time.
2. How often do you visit SPENCERS?
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Once in a week4824%
Once in a fortnight5226%
Once in a month5628%
When ever need arises 4422%
TOTAL200100%
Inference :
According to the survey done, 28% of the customers say that they
visit the store once in every month ,26% say they visit once in
fortnight, 24% say that they visit the store once in a week and the
rest 22% says whenever need arises they visit the store.
3. To what extent were your complaints resolved at Spencers?
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Well7236%
Very well7236%
Cant say 4824%
Bad84%
TOTAL200100%
Inference:
According to the survey done, 36% of the customers say that
their complaints were solved very well same way 36% of the
customers say their complaints were resolved fair well, 24% of the
customers say they cant say anything about it and finally the rest
4% say it was bad and not satisfied with the store.
4. Ambient conditions such as temperature, noise, ventilation,
odour prevailing in premises
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor5427%
Poor4824%
Average5628%
Very good3216%
Excellent 105%
TOTAL200100%
Inference:
According to the survey done, 28% of the customers feel that the
ambient conditions in the store is average, 27% feel its very poor
, 24% of the respondents say it is poor whereas 16% of the
respondents feel it is very good and expect more and rest 5% say
the conditions provided is excellent and to keep going .
5. Physical layout of the various sections/ store?
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor105%
Poor3015%
Average7839%
Very good5829%
Excellent 2412%
TOTAL200100%
Inference:
According to the survey done, 39% of the respondents feel that
the physical layout of the store is average ,whereas 29% feel the
layout and physical structure of the store is very good and among
the rest respondents 15% of the total feel the layout of the store
is poor and 12% say its excellent the rest 5% of the crowd say its
very poor .
6. Cleanliness
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor2010%
Poor5829%
Average4824%
Very good5427%
Excellent 2010%
TOTAL200100%
Inference:
As per the survey done, 29% of the respondents feel the store is
not so clean and its poor where as 27% of the crowd believe that
store is very much clean an good to look ,24% of respondents view
towards cleanliness is average and 10% say its very poor and other
10% say its excellent and maintain the same .
7. Visually appealing signs and boards
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor147%
Poor3618%
Average7638%
Very good4020%
Excellent 3417%
TOTAL200100%
Inference:
As per the data collected believe 38% of the respondents say the
visually appealing signs and boards are up to mark mean to say its
average and 20% say its very good, 18% of the total respondents say
its very poor and 17% feel the signs and boards being displayed is
excellent rest 7% say its very poor .
8. Neat and professional appearance of employees
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor126%
Poor4824%
Average6030%
Very good6030%
Excellent 2010%
TOTAL200100%
Inference:
According to the survey done30% of the respondents say the
appearance of the employees is average , same way 30% say its very
good and 24% of the crowd believe the appearance is not up to the
mark and therefore poor and 10% of them say its excellent finally
the rest 6% say very poor .
9. Employees willingness to help customers
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor42%
Poor2211%
Average8844%
Very good5628%
Excellent 3015%
TOTAL200100%
Inference:
As shown in above graph among the total respondents 44% of the
respondents say the employees courtesy and willingness is average ,
28% of them say very good whereas 15% opinion is excellent , 11% of
the respondents say poor and rest 2% opinion is very poor .
10. Use of customers feedback to improve service standards
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor5025%
Poor3015%
Average6432%
Very good3819%
Excellent 189%
TOTAL200100%
Inference:
As per the above graph among the total respondents 32% of the
respondents say the use of customers feedback is average , 25% of
them say very poor whereas 19% opinion is very good , 15% of the
respondents say poor and rest 9% of the total believe feedback is
taken well and used up to mark .
11. Provision of reliable information
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor84%
Poor4221%
Average8643%
Very good5628%
Excellent 84%
TOTAL200100%
Inference:
According to the survey done, 43% of the customers feel that the
information provided is average , 28% feel its very good , 21% of
the respondents say it is poor whereas 4% of the respondents feel
it is very poor and rest 4% say the information provided is
excellent.
12. Diversity and range of goods of goods / services
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor2412%
Poor4623%
Average5628%
Very good4623%
Excellent 2814%
TOTAL200100%
Inference:
As per the survey done, 28% of the customers feel that the range
of goods available in the store is average, 23% feel its very good
, 23% of the respondents say it is poor whereas 14% of the
respondents feel it is excellent and expect more and rest 12% say
that the goods in the store is not up to the mark and very poor
.
13. Service innovation (offers, tie-ups, promotional
campaigns)
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor147%
Poor3618%
Average7638%
Very good5427%
Excellent 2010%
TOTAL200100%
Inference:
According to the survey done,38% of the customers feel that the
innovations offers and tie ups in the store is average, 27% feel
its very good, 18% of the respondents say it is poor whereas 10% of
the respondents feel it is excellent and expect more and rest 7%
say that innovations and tie ups is very poor .
14. Convenience of operating hours and days
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor63%
Poor4221%
Average5628%
Very good7638%
Excellent 2010%
TOTAL200100%
Inference:
According to the survey done, 38% of the customers feel that the
operating hours of the store is very good , 28% feel its average
,21% of the respondents say it is poor whereas 10% of the
respondents feel it is excellent and expect more and rest 3% say to
extent the operating schedule .
15. Safety and security
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor168%
Poor3618%
Average5025%
Very good5025%
Excellent 4824%
TOTAL200100%
Inference:
According to the survey done, 25% of the customers feel that the
store safety and security is very good,25% feel its average , 24%
of the respondents say it is excellent whereas 18% of the
respondents feel it is poor and expect more and rest 8% say the
security is very poor and improve on it .
16. Lifts /escalator services
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor3015%
Poor5025%
Average7035%
Very good3015%
Excellent 2010%
TOTAL200100%
Inference:
As per the survey done, 35% of the customers feel that lift
service provided in the store is average, 25% feel its poor and
dangerous, 15% of the respondents say it is very good whereas 15%
of the respondents feel it is very poor and expect more and rest
10% say the service provided is excellent and to keep going .
17. Rest room services
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor2010%
Poor3819%
Average6231%
Very good6030%
Excellent 2010%
TOTAL200100%
Inference:
According to the survey done, 31% of the customers feel that the
rest room in the store is average, 30% feel its very good and tidy
,19% of the respondents say it is poor whereas 10% of the
respondents feel it is very poor and expect more and rest 10% say
the rest room provided is excellent and to keep going .
18. Parking facilities
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor3015%
Poor6030%
Average8643%
Very good168%
Excellent 84%
TOTAL200100%
Inference:
According to the survey done, 43% of the customers feel that the
parking facilities in the store is average, 30% feel its poor , 15%
of the respondents say it is very poor whereas 8% of the
respondents feel it is very good and expect more and rest 4% say
the parking provided is excellent .
19. Customers services desk (csd)
PARTICULARS NO OF RESPONDANTS % OF RESPONDANTS
Very poor147%
Poor2211%
Average4020%
Very good6432%
Excellent 6030%
TOTAL200100%
Inference:
According to the survey done, 32% of the customers feel that the
customer service desk in the store is average, 30% feel its
excellent , 20% of the respondents say it is