Introduction and Contents

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PART- I

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INTRODUCTION TO RETAIL INDUSTRY

Introduction of Indian Retail Industries:

Retail is Indias largest industry, accounting for over 10 per cent of the

countrys GDP and around eight per cent of the employment. Retail industry

in India is at the crossroads. It has emerged as one of the most dynamic and

fast paced industries with several players entering the market. But because of

the heavy initial investments required, break even is difficult to achieve and

many of these players have not tasted success so far. However, the future is

promising; the market is growing, government policies are becoming more

favorable and emerging technologies are facilitating operations. Retailing in

India is gradually inching its way toward becoming the next boom industry.

The whole concept of shopping has altered in terms of format and consumer

buying behavior, ushering in a revolution in shopping in India. Modern retail

has entered India as seen in

Sprawling shopping centers, multi-storied malls and huge complexes offer

shopping, entertainment and food all under one roof. The Indian retailing

sector is at an inflexion point where the growth of organized retailing and

growth in the consumption by the Indian population is going to take a higher

growth trajectory.

The Indian population is witnessing a significant change in its demographics.

A large young working population with median age of 24 years, nuclear

families in urban areas, along with increasing working-women population

and emerging opportunities in the services sector are going to be the key

growth drivers of the organized retail sector in India.

Retailing is the final step in the distribution of merchandise - the last link in

the Supply Chain - connecting the bulk producers of commodities to the finalconsumers. Retailing covers diverse products such as foot apparels,

consumer goods, financial services and leisure.

A retailer, typically, is someone who does not effect any significant change

in the product execs breaking the bulk. He/ She are also the final stock point

who makes products or services available to the consumer whenever require.

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Hence, the value proposition a retailer offers to a consumer is easy

availabilities of the desired product in the desired sizes at the desired times.

In the developed countries, the retail industry has developed into a full-

fledged industry where more than three-fourths of the total retail trade is

done by the organized sector. Huge retail chains like Wal-Mart, Carr fourGroup, Sears, K-Mart, McDonalds, etc. have now replaced the individual

small stores. Large retail formats, with high quality ambiance and

courteous.

Retailing is the interface between the producer and the 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.

Retailing is more than selling goods:

Retailing consists of the sale of goods or merchandise, from a fixed location

such as a department store or kiosk, in small or individual lots for direct

consumption by the purchaser. Retailing is a well recognized business

function which compromisesmaking available desired product in the desired quantity at the desired time.

This creates a time, place and form utility for the consumer. The success of

retailing is highly dependent on an efficient supply chain management. A

well-developed supply chain reduces wastages and transaction cost thereby

reducing the cost of inventories to be maintained by the producers and the

traders. A reduction in the cost of inventory management leads to a reduction

in the final price to the consumer.

Retailing has been identified as a thrust area for promotion of textiles,

processed foods, agricultural and horticultural produce. Retail Sector can be

divided into organized and unorganized sectors:

Unorganized Retail:

Unorganized retailing is characterized by a distorted real-estate market, poor

infrastructure and inefficient upstream processes, lack of modern technology,

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inadequate funding and absence of skilled manpower. Therefore, there is a

need to promote organized retailing.

Unorganized Retail:

Unorganized retailing is characterized by a distorted real-estate market, poor

infrastructure and inefficient upstream processes, lack of modern technology,

inadequate funding and absence of skilled manpower. Therefore, there is a

need to promote organized retailing.

Evaluation of Organized Retailing:

American mass retailing began in the late 1800s with Montgomery Ward

marketing its products through general merchandise mail order catalogs,

which was very effective at that time for reaching a largely rural society.

In the 1940s, the population began its movement to the suburbs as the

economy shifted from an agricultural base to an industrialized nation. The

first shopping center was opened, which would eventually be a significant

factor in the decline of downtown Retailing in the 1960s and 70s. JC Penney

and Sears began their national mass retailing expansion, and the use of credit

cards as Major retail chains began.

The 1950s witnessed the reaffirmation of the traditional family. The first

planned mall and franchised food restaurant opened. As people continued to

flock to the suburbs, the downtown areas began to decline. Larger suburban

malls were created and anchored by traditional downtown department store

merchants. Freeways were expanded and the sales of private automobiles

grew, giving the consumer a wider accessible area in which to shop.

Discounters were born, Korvetta being one of the firsts.

The 1960s witnessed the growth of enclosed shopping centers, with

department stores anchors and specialty retail chains. The baby boomerswere teenagers at this point, leading to the growth of juniors-oriented stores

and vendors. Women became targets not just as mothers or wives as they

entered the workforce and consumers became more demanding in their

expectation of quality and service.

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In the 1970s, promotional pricing started to pick up the department stores as

off-price retailer emerged. The growth of retail space slowed, as sales

increase came at the expense of competition, not of market growth. This

competitive market led to the under performance of several retailers as gross

margins experienced downtown pressure from increased competition.

Retailers in large upscale markets recognized the time shortage created by

dual-career families and began to offer more services to assist in saving time.

The 1980s witnessed the growth of off price retailing as a distinct, enduring

retail format. Retailers began to drop low profit lines. Acquisitions and

mergers were actively utilized as growth strategies, private brands were

redeveloped to enhance uniqueness and margins and offshore sourcing was

developed to compensate for margins

Broadly the organized retail sector can be divided into two segments, In-Store Retailers, who operate fixed point-of-sale locations, located and

designed to attract a high volume of walk-in customers, and the non-store

retailers, who reach out to the customers at their homes or offices.

It was only in the year 2000 that the economists put a figure to it:

Rs.400,000crore (1crore = 10 million) which is expected to develop to

around Rs.800,000crore by the year 2005 an annual increase of 20 per cent.

Retailing in India is unorganized with poor supply chain management

perspective. According to a recent survey by some of the retail consulting

bodies, an overwhelming proportion of the Rs.400,000crore retail marketsare UNORGANISED. In fact, only a Rs. 20,000crore segment of the market

is organized. As much as 96 per cent of the 5 million-plus outlets are smaller

than 500 square feet area. This means that India per capita retailing space is

about 2 square feet (compared to 16 square feet in the United States). India's

per capita retailing space is thus the lowest in the world (source: KSA

Technopak (I) Pvt Ltd, the India operation of the US-based Kurt Salmon

Associates).

Currently the retail landscape is filled with Supermarket chains with over

1000 outlets all over the country to increase to around 5000 by the 2005. Thesuccess of a couple of hyper marts indicating the evolution of hypermarkets

in the country prominent among them is Giant, Metro, Big Bazaar models.

While the average bill value at a supermarket is in the range of Rs.300 per

bill, the average bill amount at a Hypermarket is in the range of Rs.750-

1000, indicating that the model is in tune with the global models where the

average spend is increasing with the shopping experience.

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Impact of Organized Retail:

Organized retailing is spreading and making its presence felt in different

parts of the country. The trend in grocery retailing, however, has been

slightly different with a growth concentration in the South. Though therewere traditional family owned retail chains in South India such as Nilgiris as

early as 1905, the retail revolution happened with the RPG group starting the

Food world chain of food retail outlets in South India with focus on Chennai,

Hyderabad and Bangalore markets, preliminarily. The experiment has reaped

rich dividends and the group is now foraying into other territories as well.

Owing to the success of Food world model of RPG group, several new

models such as Trinethra, Subhiksha, Margin Free and others have made

their foray into this sector albeit at regional levels. Today the food retail

sector in India is about Rupees Ten Lakh Crores (USD 200 billions) of which

the organized food retail segment is about 1 per cent and increasing at a paceof over 20% y-o-y. To be successful in food retailing in India essentially

means to draw away shoppers from, the roadside hawkers and kirana storesto supermarkets. This transition can be achieved to some extent through

pricing, so the success of a food retailer depends on how best he understands

and squeezes his supply chain. The other major factor is that of convenience

shopping which the supermarket has the edge over the traditional kiranastores. On an average a supermarket stocks up to 5000 SKUs against few

hundreds stocked at an average kirana stores.

In the organized retail industry, the gestation periods are long, institutionalfunding is difficult, and there is none or little Government support. But the

belief among top retailer chains in the country is that the industry will see

large investments coming once the current ban on foreign direct investment

is lifted. But that could be two-three years away. Food and grocery retailing

is a tough business in India with margins being very low, and consumers not

dissatisfied with existing shops where they buy. For example,

The next-door grocery shopkeeper is smart and delivers good customer

service, though not value.

As of now, while Chennai has about five organized food and grocery retailchains, other big cities such as Delhi, Bangalore, and Mumbai average only

two-three such chains. Almost all food retail players have been region-

specific as far as geographical presence is concerned in the country. To

illustrate with examples, the RPG Group's Food World, Nilgiris, Margin

Free, Giant, Varkey's and Subhiksha, all of which are more or less spread in

the Southern region; Sabka Bazaar has a presence only in and around Delhi;

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names such as Haiko and Radhakrishna Food land are Mumbai-centric;

while Adani is Ahmedabad-centric. Industry topography in India is such that

spreading presence across cities is a tough call. As pointed out by many

experts, organized food and grocery retailing chains going national requires

significant investments. Retailing within this sector is not just about the

front-end, but involves complex supply chain and logistics issues as well.

The trend and mindset of the present retailer chains in India can be best

understood by studying Food World as an example, which came in first in

the food and grocery retailing sector. The chain has no plans to venture

beyond the Southern region just yet. Current plans are to focus on the

Southern markets and achieve saturation. The intention is that by 2005, they

could look at the other regions. Subhiksha, a Chennai based discount chain,

too wants to be the principal store of purchase for at least 40 per cent of all

consumers living within 500-750 meters of the store, that is, within walking

distance. This makes the point very clear that the strategy among mostexisting retail chains of various formats is to completely saturate the markets

where they are already established players and then move on to virtually

untouched areas where the challenge of sourcing resources and extending

their supply chain model to best suit the size and expanse of the market

would be a challenging task.

It can be explained that the obstacles of looking at a pan-India model for

grocery are several. Given the federal nature of the country, the weak

infrastructure and the major variances in eating habits in different parts of the

country, one will have to replicate the retail administration costs for at leasteach region and therefore the gestation period of the project becomes huge.

However, if a model is in place where the upfront store revenues scale very

rapidly, then it is possible. Therefore, if one is to attempt a pan-Indian

grocery foray, it will have to be in the hypermarket format with its attendant

investment numbers and risk profile.

If a close look is taken at the nature of the Indian Retail Markets, it can be

seen that there is so much potential to extract from individual regions that

players are in no tearing hurry to spread out. Based on a recent study by a

renowned government institution in India, in the six major metros, Delhi has

the highest per capita consumption of food and grocery, among

supermarkets. Chennai, the Mecca of retailing, comes at fourth place. This

shows the high potential the sector presents. Chennai has some five

supermarket chains, and each of these is doing well for themselves. So there

is enough scope to expand even in one single city in India.

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Sabka Bazaar, a supermarket chain restricted to Delhi alone, is now

generating sales of about Rs.11 crore from its 19 stores which best illustrates

the potential of each individual city. This explains the reason for delay in

intentions of retailers to spread far and wide.

Benefits of Retailing:

Retailing is good for national economies where it has positive influence on

influence on inflation and product availability. It also creates fortunes for its

owners and is a tremendous source of employment.

INDIA has been virtually the only developing country in the world that has

been extremely slow in adopting this organized pattern of retailing.

Better quality products

Employment opportunities

Better social infrastructure

Enhanced foreign exchange

Benefit to tourism

Better showcase for exports

Better realization of taxes

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Indian Retail Scenario:

Retailers in India have to experiment with formats maintaining

scalability in terms of segments, along with deepening penetration levels.

Traditionally Indian Retail can be traced back from Weekly Markets, Melas,

and Village Fairs in Small towns and villages to Kirana stores, PDS outlets,

Khaki Bhandaar, co-operative stores in Urban cities. The wave of retail

began with various textile manufactures like Bombay Dyeing, Raymonds, S

Kumars, and Grasim foraying into selling the product through their outlets

and competition among FMCG players driving the forces towards retailing.

The evolution of retailing lead to an emergence of various formats like

Shopping malls, Super-marts, Hyper-marts, Departmental Stores, Apparel

Stores, etc. catering to majority all sectors of society providing the all-

important 3Vs Value, Variety and Volume.

India is the country having the most unorganized retail market. Traditionally

it is a Familys livelihood, with their shop in the front and house at the back,

while they run the Retail business. More than 99% retailers function in less

than 500 square feet of shopping space. Global retail consultants KSA

Technopak, have estimated that organized retailing in India is expected to

touch Rs 35,000 crore in the year 2005-06. The Indian retail sector is

estimated at around Rs900,000 crore, of which the organized sector accounts

for a Mere 2 per cent indicating a huge potential market opportunity that is

lying in the waiting for the consumer-savvy organized retailer .Purchasingpower of Indian urban consumer is growing and branded merchandise in

categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and

even Jewellery, are slowly becoming lifestyle products that are widely

accepted by the urban Indian consumer. Indian retailers need to advantage of

this growth and aiming to grow, diversify and introduce new formats have to

pay more attention to the brand building process. The emphasis here is on

retail as a brand rather than retailers selling brands.

The focus should be on branding the retail business itself. In their

preparation to face Fierce competitive pressure, Indian retailers must come torecognize the value of building their own stores as brands to reinforce their

marketing positioning, to communicate quality as well as value for money.

Sustainable competitive advantage will be depended on translating core

values combining products, image and reputation into a coherent retail brand

strategy.

Growth of Organized Retail in Indian Cities:

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Organized Share of retail sector is expected to increase to 8-9 percent in

2010-11 from 6 percent in 2008.

The Retail sector contributes to around 36 percent of GDP in India and is

largest employment generator. The sector is dominated by small-scattered

unorganized regional players, large players contributing to meager 10

percent of the total pie. Organized retail is at its nascent phase wherein the

large organized retail groups are having aggressive expansion plans to

penetrate the Metros and Tier I cities and establish themselves amongst rural

masses of Tier I and Tier II cities.

There lies a challenge for retailers to experiment with new value

formats along with developing customer loyalties. Since there will be

demographic shift in population growth, urbanization and migration due totransition in urban household growth and income distribution. The total retail

market in the top 67 cities in India in 2006 was Rs. 2.55 trillion, which is

expected to increase to Rs. 3.91 trillion in 2011.

American mass retailing began in the late 1800s with Montgomery Ward

marketing its products through general merchandise mail order catalogs,

which was very effective at that time for reaching a largely rural society.

In the 1940s, the population began its movement to the suburbs as the

economy shifted from an agricultural base to an industrialized nation. The

first shopping center was opened, which would eventually be a significantfactor in the decline of downtown Retailing in the 1960s and 70s. JC Penney

and Sears began their national mass retailing expansion, and the use of credit

cards as Major retail chains began.

The 1950s witnessed the reaffirmation of the traditional family. The first

planned mall and franchised food restaurant opened. As people continued to

flock to the suburbs, the downtown areas began to decline. Larger suburban

malls were created and anchored by traditional downtown department store

merchants. Freeways were expanded and the sales of private automobiles

grew, giving the consumer a wider accessible area in which to shop.

The 1960s witnessed the growth of enclosed shopping centers, with

department stores anchors and specialty retail chains. The baby boomers

were teenagers at this point, leading to the growth of juniors-oriented stores

and vendors. Women became targets not just as mothers or wives as they

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entered the workforce and consumers became more demanding in their

expectation of quality and service.

According to CRISIL, around 87 percent of the retail opportunity comes

from top 25 cities compromising Metro Delhi, Mumbai, Calcutta, MiniMetros Hyderabad, Chennai, Bangalore, Mini Metros Ahmedabad and Pune,

Tier I cities of Kanpur , Nagpur, Surat and Ludhiana, Tier II cities

Coimbatore, Chandigarh, Lucknow, Kochi, Jaipur and Tier III cities

Vadodara, Vizag, Indore, Vijaywada, Thiruvananthpuram, Bhopal, Nashik

and Madurai.

Organized retail has been established in Metros and Tier 1 cities, other

cities having negligible level of penetration.

Old Retail Formats:

Kiranas:

These are food and non-food neighborhood counter stores, also called mom

and pop stores in western countries. These are big chunks forming the

segregated and unorganized retail segment. These are family-owned and- run

retail-outlets picking the goods from wholesalers totaling to around 12

million stores across India.

Mandis:

These are the largest chunk of unorganized retail catering to urban and rural

masses. Mandis are physically located at different regions to enhance

convenient shopping. The sellers bring across various products like eatables,

vegetables and fruits, pulses, cereals, spices etc. The most prominent of them

are sabzi mandis found in most of the localities across India.

Village Haats:

This form is operating in rural areas where buyers and sellers gather once in

a week or month from nearby villages and small towns to cater their

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livelihood and leisure needs. These haats are a source of entertainment and

socialization among rural masses.

Push Cart Vendors:

The are categories of vendors roaming from door to door in various localities

selling fruits, vegetables, and other eatables, from which mostly housewives

makes purchases that too on credit.

Upcoming Retail Formats

Modern Formats Area (sq. ft) Points of Differentiation

ShoppingMalls

60,000-7,00,000

Multi-format, multi-product,multi-brands &Catering lifestyle needs.

Hyper marts 50,000-70,000

Multi-verticals.

Super marts 5,000-10,000 Single vertical.

Departmental

Stores

20,000-50,000 Single Vertical.

ApparelStores

20,000-25,000 Multi-branded singleverticals, focusing onhigh-end customers.

Specialtyformat

2,000-5,000 Multi-branded, single verticalon specific needs of customers.

Exclusiveformats

500-5,000 Owned/Franchised singleproduct.

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COMPANY PROFILE

Introduction of Vishal Retail Ltd.:

Vishal Retail Ltd, a leading player in the Indian retail industry, is a pioneerin discount retailing and is focused on tier II and III cities in the country. It

has a strong presence in manufacturing and retailing of readymade garments

(apparels); retailing of non-apparels and a large variety of FMCG products.

The company has pan-India presence with 108 mid-sized hypermarket

format stores as on April 28, 2008 covering about 2.3mn sq ft retail space

area. Vishal is supported by strong manufacturing set-up in Gurgaon,

Dehradun and Manesar with a capacity of 5,000 garment pieces per day in

each unit. It also has 29 warehouses located in 8 key cities in India covering

over 1.1mn sq ft area.

Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile,

Calcutta) is today a conglomerate encompassing 117 showrooms in 75

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 Agarwal. 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 initiatedbackward integration in the field of high fashion by setting up a state of the

art manufacturing facility to support its retail endeavors.

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Company Background:

Vishal Retail was incorporated on July 23, 2001 as Vishal Retail Private

Limited as a retailer of ready-made apparels in Kolkata in 2001. The

company has acquired the business of 'M/s The Vishal Garments' and 'M/s

Vishal Garments' in 2001. In 2003, the company has acquired the

manufacturing facilities from Vishal Fashions Private Limited and M/s

Vishal Apparels.

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 states across India. Each store

gives you international quality goods and prices hard to match. The cost

benefits that are derived from the large central purchase of goods andservices are passed on to the consumer.

Mr. Ramchandra Agarwal Mrs. Uma Agarwal

Investment Rational:

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Vishal Retail sells ready-made apparels (including its own

brands) and wide range of household merchandise and other

consumer goods such as footwear, toys, watches, toiletries, grocery items,

sports items, crockery, gift and novelties.

Vishal is value Retail Company catering to middle and lower

middle income groups.

As Apparel segment contributes 63 percent; it has plans to

focus more on FMCG.

To reduce cost, Vishal does in-house production of apparels,

Procurement of goods directly procurement of goods from the

small and medium size vendors and manufacturers.

Efficient Logistics and distribution system along with

customized product mix at stores depending on the regional

customer behavior and preferences.Plans of penetrating deeper into Tier 1 and Tier 2 cities to bank upon early

mover advantage, where organized retail is yet to make a significant mark,

which will help establish and build customer loyalty prior to other players.

Higher margins of around 5-6 percent in private labels which account for 10

percent of sales in FY07.

Future Prospective:

Vishal Retail Ltd has declared that the company has opened four new

Showrooms at different localities.

The company has opened a store at Shree Ram Palace, Main Delhi Road,

Meerut. This is the companys second store in Meerut spreading across an

area of 3,600 Sq. ft. (Approx).

The company opened a store at Nauchandi Garh Road, Meerut commonly

called Dreemz, Opp. Samrat Heavens, Meerut. This is the companys third

store in Meerut covering up an area of 12,000 Sq. ft.

The company has opened a showroom at Enclave, Near BSNL Office,Ranipur More, Haridwar. This is the companys first store in Haridwar

spreading across an area of 9,545 Sq. ft. (Approx).

The company opened its store at Arcade, Plot No. 56-58, Dumas Road,

Piplad, Surat. This is companys second store in Surat spreading across an

area of 38,000 Sq. Ft (Approx).

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Vishal Retail Limited is an India-based retail company. It was established in

1986. It was formerly called Vishal Retail Private Limited and changed its

name to Vishal Retail Limited in 2006.

The company is based in New Delhi, India.

As of August 8, 2007, the company operated 53 retail stores, including two

stores that are operated by its franchisees. It sells readymade clothes, and a

variety of household merchandise and other consumer goods, including toys,

footwear, toiletries, sports items, watches, grocery items, crockery, novelties

and gifts.Today, the stock is hovering around Rs 724 on the Bombay Stock Exchange.

Vishal Retail has seen a 52-week high of 812 and low of Rs 423.

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Factors Affecting Retailing in India:

Various factors affect retailing in India. However, if one were to Single out

the single biggest different in the development of organized retailing in

India, it would undoubtly be the cost of real estate. The high cost of real

estate in India, in spite of the fact that the per capital income is one of thelowest in the world, makes the country a land of contradictions. In fact so

exorbitant is the cost of property in almost every town of India that it makes

the very concept of organized retailing nonviable. Obsolete rental laws have

compounded the situation even further and unless immediate and serious

steps are initiated in this direction it would be fairly long before the benefits

of this concept reach the public at large.

The rampant corruption &poor implantations of taxation laws also permit a

majority of the unorganized retail fraternity with substantially large turnover

to avoid paying full taxes.

There are no single factors but numerous factors which have prevented

organized retailing from taking off as it should have in India. Some of the

leading factors that have restricted this growth are as follows.

High real estate costs

Obsolete rental laws

Lack of finance options

High interest costs

Unplanned cities

Rampant corruption

Exorbitant electricity costs

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VISION 2010:

The past 2-3 years have seen a number of developments in the retailing

business in India. The entries of corporate houses like RPG, Tatas and

Piramals have increased the capital availability in the market. Bigger players

like Shoppers Stop are in a position to take advantage of their sizes indealing with the manufacturers. Despite a slowdown in the economy,

customer queues at the stores are not decreasing. Retail sector is bound to

grow in the coming years. But how much and in what direction are the

questions that need to be evaluated. Various agencies have made different

estimates of the size of organized market in 2010. The one thing in common

amongst these estimates is that the Indian organized Retailing industry will

be very big in 2010. The status of the industry will depend a lot on external

factors like Government regulations and real estate prices, besides activities

of the retailers and demands of the customers. Based on our analysis of

present trends, and development of retailing elsewhere, we present ourperspectives and snapshots of organized retailing, as it would exit in 2010.

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MAJOR COMPETITORS OF VISHAL MEGAMART

Major Players of Retailing in India:

Retailer Current Format New Formats. Experimenting With

Shoppers'

Stop

Department Store Quasi-mall

Ebony Department Store Quasi-mall, smaller outlets, adding food

retail

Crossword Large bookstore Corner shops

Pyramid Department Store Quasi-mall, food retail

Pantaloon Own brand store Hypermarket

Subhiksha Supermarket Considering moving to self service

Vitan Supermarket Suburban discount store

Food

world

Food supermarket Hypermarket, Food world express

Globus Department Store Small fashion stores

Bombay

Bazaar

Aggregation of Kiranas

E-food

mart

Aggregation of Kiranas

Metro Cash and carry

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Major Competitors of Vishal Megamart in

Lucknow City:

1. BIG-BAZARType Subsidiary of Pantaloon Group

Founded 2001

Headquarters Mumbai, India

Industry Retail

Parent Pantaloon Group

Owner Kishore Biyani

Slogan Is se sasta aur accha kahi nahin

Big Bazaar is a chain of shopping malls in India currently with 29 outlets,

owned by the Pantaloon Group. It works on same the economy model as

Wal-Mart and has had considerable success in many Indian cities and small

towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of

Pantaloon Retail India Ltd.

COMPANY PROFILE OF BIG-BAZAR:

Pantaloon Retail (India) Limited, is India's leading retail company with

presence across multiple lines of businesses. The company owns and

manages multiple retail formats that cater to a wide cross-section of the

Indian society and is able to capture almost the entire consumption basket of

the Indian consumer. Headquartered in Mumbai ( Bombay), the company

operates through 4 million square feet of retail space, has over 140 stores

across 32 cities in India and employs over 14,000 people. The company

registered a turnover of Rs 2019 crore for FY 2005-06.

Pantaloon Retail forayed into modern retail in 1997 with the launching of

fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar,

a hypermarket chain that combines the look and feel of Indian bazaars, with

aspects of modern retail, like choice, convenience and hygiene. This wasfollowed by Food Bazaar, food and grocery chain and launch Central, a first

of its kind seamless mall located in the heart of major Indian cities. Some of

it's other formats include, Collection i (home improvement products), E-

Zone (consumer electronics), Depot (books, music, gifts and stationary), aLL

(fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue

Sky (fashion accessories). It has recently launched its etailing venture,

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The group's subsidiary companies include, Home Solutions Retail India Ltd,

Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.

The group also has joint venture companies with a number of partners

including French retailer Etam group, Lee Cooper, Manipal Healthcare,

Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company

owns the franchisee of international brands like Marks & Spencer,

Debenhams, Next and Guess in India.

Pantaloon Retail (India) Limited, is India's leading retail company with

presence across multiple lines of businesses. The company owns and

manages multiple retail formats that cater to a wide cross-section of the

Indian society and is able to capture almost the entire consumption basket of

the Indian consumer. Headquartered in Mumbai ( Bombay), the company

operates through 4 million square feet of retail space, has over 140 stores

across 32 cities in India and employs over 14,000 people. The company

registered a turnover of Rs 2019 crore for FY 2005-06.Pantaloon Retail forayed into modern retail in 1997 with the launching of

fashion retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar,

a hypermarket chain that combines the look and feel of Indian bazaars, with

aspects of modern retail, like choice, convenience and hygiene. This was

followed by Food Bazaar, food and grocery chain and launch Central, a first

of its kind seamless mall located in the heart of major Indian cities. Some of

it's other formats include, Collection i (home improvement products), E-

Zone (consumer electronics), Depot (books, music, gifts and stationary), aLL

(fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue

Sky (fashion accessories). It has recently launched its retailing venture,

The group's subsidiary companies include, Home Solutions Retail India Ltd,

Pantaloon Industries Ltd, Galaxy Entertainment and Indus League Clothing.

The group also has joint venture companies with a number of partners

including French retailer Etam group, Lee Cooper, Manipal Healthcare,

Talwalkar's, Gini & Jony and Liberty Shoes. Planet Retail, a group company

owns the franchisee of international brands like Marks & Spencer,

Debenhams, Next and Guess in India.

Big Bazaar is not just another hypermarket. It caters to every need of yourfamily. Where Big Bazaar scores over other stores is its value for money

proposition for the Indian customers. At Big Bazaar, you will definitely get

the best products at the best prices -- thats what we guarantee. With the ever

increasing array of private labels, it has opened the doors into the world of

fashion and general merchandise including home furnishings, utensils,

crockery, cutlery, sports goods and much more at prices that will surprise

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you. And this is just the beginning. Big Bazaar plans to add much more to

complete your shopping experience.

BIG BAZAAR WHOLESALE CLUB:

The Big Bazaar Wholesale Clubbrings to you an opportunity to save in bulkas you buy in bulk. In line with the Big Bazaar tradition of providing best

deals at best prices, the Big Bazaar Wholesale Club provides you bulk deals

at wholesale prices.

An extension of Big Bazaar, the Big Bazaar Wholesale Club offers multi-

packs and bulk packs of a select range of merchandise at wholesale prices.

The merchandise categories range from Food & FMCG to Home Linen and

many more. You will not find any merchandise being sold loose/single unit

(except fresh) at a Big Bazaar Wholesale Club.

A typical Big Bazaar Wholesale Club is located adjacent to a Big Bazaar in

the form of a separate section. The look and feel of a wholesale market is

evident in the stores from the stacking styles and use of a lot of hand written

signages by chalks on black slates.

Taking care of your savings, the Big Bazaar Wholesale Clubwill ensure that

the more you buy, the more you save. If you enjoy shopping at wholesale

markets for your entire family, or you have a huge circle of friends who

would like to get together for their monthly shopping needs or if you are aretailer looking for wholesale offers then the Big Bazaar Wholesale Clubis

the place to shop at.

To shop at the Big Bazaar Wholesale Club, you just need to enroll yourself

as a member of the club. If you possess an Anmol card or an ICICI-Big

Bazaar card then you are automatically enrolled as a member of the Big

Bazaar Wholesale Club.

So buy more as you save more or save more as you buy more at the Big

Bazaar Wholesale Club.

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Sales Promotion Strategies By Big Bazaar:

The greatest opportunity for new business is always the existing customer

base. Big Bazaar totally focuses on this policy.

Using creative and innovative customer communication is far more likely tobe remembered than the "same old stuff" everyone does.

One of your products/services? Making sure they are aware of your full

range of capabilities can be a simple way to get new orders.

Even the most dedicated sales person may not call at the appropriate time. A

planned approach to customer communication will be most effective.

Customers like to be appreciated, its human nature. So look carefully at how

you can motivate your customers and build their trust.If you are not

promoting your products or services you can be sure your competitors are.

Look at things you can leverage to generate customer interest and buyingdecisions

2-FUTURE BAZAAR :

FUTURE BAZAAR is owned and operated by Future Bazaar India Ltd., a

subsidiary of Pantaloon Retail (India) Limited.

As part of Indias largest retail chain, we enjoy the benefits of buying in bulk

for the entire group and keep our margins low, so you get a great range ofproducts at great prices. We pass these benefits on to you, so our prices are

the lowest we can make every day.

About our parent company:

Pantaloon Retail (India) Limited led by Kishore Biyani is the country's

largest retailer. It owns and operates multiple retail formats including

Pantaloons, Big Bazaar, Food Bazaar, Central, E-Zone, Fashion Station,

Depot and many others. Headquartered in Mumbai, Pantaloon Retail is listed

on BSE and NSE with a turnover of Rs 2,018 croresPantaloon Retail was selected as the Best of Best Retailers in Asia by Retail

Asia-Pacific Big Bazaar was awarded the CNBC-Awaaz Consumer Awards

in 2006 and the Readers' Digest Platinum Brand Award 2006.

The Future Bazaar promise

Manufacturers warranties on all products

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Future Bazaar sells only original products from authorized dealers; so all

applicable products carry the original manufacturers warranty. To service

any product purchased at Future Bazaar, please visit the authorized service

center of the manufacturer. The invoice accompanying the product is your

warranty document, so please preserve it.

Guaranteed Delivery:

We guarantee to deliver the exact product you selected, without defects. In

case you have received a different product, or if the product was damaged in

transit, please contact us within the stipulated time period and we will ensure

that we replace it or refund you for it.

Please note that delivery times vary according to products. Although we

deliver goods within the committed time period, but there could be

occasional delays. We will contact you, in case deliveries are expected to get

delayed.

Real Customer Support:Our customer support is manned by real employees, not computers or

contract call centre personnel. Be assured that when you call us that you are

talking to someone who can take decisions and resolve your problems.

Secure Payments:

We are committed to ensuring that no payment misuse happens, so we workwith banks and payment gateways to ensure that your information is

protected. Payments are protected both by us and by the policies of your

bank, and the chances of fraud in these channels are actually very low.

FutureBazaar openly publishes its office addresses and is part of Indias

largest retail company with a presence all over India so you know how to

contact us in person, if required.

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Product range of Big Bazaar:

1-Apparel and Accessories for Men, Women and Children

2-Baby Accessories

3-Cosmetics.

4-Crockery.5-Dress Materials Suiting & Shirting.

6-Electrical Accessories.

7-Electronics.

8-Footwear Toys.

9-Home Textiles.

10-Home Needs.

11-Household Appliances.

12-Household Plastics.

13Hardware.

14-Home Decor Luggage.

15-Linens.

16-Sarees.

17-Stationery.

18-Utensils & Utilities.

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2. SHOPPERS STOP:

The foundation of Shoppers' Stop was laid on October 27, 1991 by the K.

Raheja Corp. group of companies. Being amongst India's biggest hospitality

and real estate players, the Group crossed yet another milestone with its

lifestyle venture - Shoppers' Stop.

From its inception, Shoppers' Stop has progressed from being a single brand

shop to becoming a Fashion & Lifestyle store for the family. Today,

Shoppers' Stop is a household name, known for its superior quality products,

services and above all, for providing a complete shopping experience.

With an immense amount of expertise and credibility, Shoppers Stop has

become the highest benchmark for the Indian retail industry. In fact, the

companys continuing expansion plans aim to help Shoppers Stop meet thechallenges of the retail industry in an even better manner than it does today.

Vision & Values Of Shoppers Stop

VisionTo be a global retailer in India and maintain its No. 1 position in the Indian

market in the Department Store category.

Values

The following are the values that help us in achieving our mission and

vision:

We shall not take what is not ours.

The Obligation to dissent (against a viewpoint that is not acceptable).

We shall have an environment conducive to openness.

We shall believe in innovation. We shall have an environment conducive to development.

We shall have the willingness to apologise and/or forgive.

We shall respect our customers' rights.

The value of trust

We shall be fai

Milestones-

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Year & Events:

1991 Launched first Shoppers Stop store selling mens wear at Andheri

(Mumbai)

1992 Ladies apparel section added Children and non - apparel accessoriessections added

Disney carnival organized, with official Disney characters (Mickey,

Minnie, Donald and Goofy) participating, In House Retail Management

Trainee Programme started

1994 First Citizens Loyalty programme launched

1995 Second store opened (Bangalore)

1996 Festival of Britain celebrated in association with the Commercial

Department of the British Consulate

1997 Shoppers Stop as a body corporate was incorporated on June 16.

Festival of Indian tradition and culture, Parikrama, launched Co-branded

credit card launched for FCC members in partnership with HSBC.

1998 Third store opened (Hyderabad), the then largest with 72,287 sq. ft of

retail area SSL co-opted as Indias only member to the IntercontinentalGroup of Department Stores (IDGS)

1999 Implemented JDA Retail ERP (a global leader in retail ERP packages)

Fourth and Fifth stores launched (Jaipur & Delhi)

2000 Sixth & Seventh stores opened (Chennai & Chembur,Mumbai) Placed

equity with external investors to raise Rs 600 mn

Acquired Crossword, one of Indias leading book retailing chain, from

India Book House in partnership with ICICI Trusteeship Services Limited

(A/c ICICI Emerging Sectors Fund)

2001 Implemented Warehousing Module of JDA, Auto Replenishment and

Auto Purchase Order system and business to business connectivity

Eight and Ninth store launched (Pune & Bandra, Mumbai)

Profit Linked Reward System (PLRS) introduced for all employees

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2002 Tenth store opened (Kandivali, Mumbai)

2003 Received various industry awards from CMAI (including Best

Retailer of the Year) and from Nasscom (Best IT Practice in Retail

Category)

Signed Austin Reed licence for mens outerwear for India exclusively.Three stores launched taking the total number of stores to 13 (Mulund,

Mumbai, Gurgaon and Kolkata)

2004 Fourteenth, fifteenth and sixteenth stores launched in February 2004

(Malad, Mumbai), June 2004 (Salt Lake City, Kolkatta) and October 2004

(Bangeratta Bangalore) respectively taking total retail area to 752,848 sq ft.

Received Superbrand status for 2003 and 2004

Received Images Retail award for the Most favoured retail destination of

the year September, 2004.Received the Organization With Innovative HR Practices award at the

HR Excellence Awards organized by Mid - Day, Big Break & Daks

November 2004.

Received Top retailer 2004 India Bronze award given by Retail Asia-

Pacific Top 500 awards.

2005 Seventeenth store launched in April 2005 at Nucleus Mall, Pune.

Eighteenth and Nineteenth stores launched in May 2005 at Dynamix Mall,

Juhu Mumbai and at Bangalore.

The Company makes an Initial Public Offer of 69,46,033 Equity Shares ofRs.10 each at a premium of Rs.228 per share aggregating to Rs. 1653.16

million. The issue received overwhelming response with a subscription of

more than 17 times.

Twentieth Store launched at Shipra Mall, Ghaziabad, in June 2005.

The Company acquired balance 49% of the Equity Share Capital of

Crossword Bookstores Limited from ICICI Emerging Sectors Fund, making

Crossword its Wholly Owned Subsidiary Company.

2006 Launch of BRIO at Bangalore. BRIO is a stylish, new world of

gourmet coffee, specialty tea and delectable European bistro fare which

promises to offer something which all the coffee connoisseurs across the

country have never experienced before

Launch of mothercare at the Juhu & Bandra Stores. mothercare is the

leading specialist retailer for mothers-to-be and parents of young children,

offering the widest range of clothing, hardware and toys for the pre-school

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child, in the UK internationally.

Launch of HyperCITY at Mumbai. We made a foray into food and general

merchandise retailing through Hypercity, our 124,000 sq. ft hypermarket.

The product offering includes fresh fruits and vegetables, groceries,

apparels, electronic appliances etc all under one roof.

Shoppers Stop Limited is appointed as Master Franchisee of Crossword

Bookstores Limited for conducting the business of retail book stores under

the trademark Crossword at all existing stores (Crossword Owned Stores)

wherever permissible and excluding stores which are operated by

Crosswords existing franchisees.

Launch of the second HomeStop at Malad, Mumbai. The store is approx.

49,000 sq. ft. on a single floor with displays of bedrooms, living rooms, a

modular kitchen and centre podium to exhibit lifestyle displays in a live

atmosphere. The store has an array of brands in kitchenware and bed linen

from India and abroad.Launch of our first store in the city of Nawabs, Lucknow. Measuring

approx. 53,000 sq. ft. spread over three floors, it is the anchor store of the

E-City Fun Republic Mall at Gomti Nagar.

2007 Shoppers Stop Limited has forays into airport retailing through a joint

venture with The Nuance Group AG of Switzerland, which is the worlds

leading airport retailer. The company bags concessions for retail operations

at the Terminal 1B Departure of the Mumbai Domestic Airport and the

Greenfield Bangalore International Airport for both domestic and

international terminals.Shoppers Stop Ltd. and Hypercity Retail India Pvt Ltd. sign a Memorandum

of Understanding to enter into a franchise arrangement for the ARGOS

formats of catalogue and internet retailing, with Home Retail

Corporate Governance:

The Company remains committed to the concept of good Corporate

Governance practices in all its activities to ensure the ultimate goal of

making the Company a value driven organization.

Its philosophy on the code of Corporate Governance is:

To ensure adequate control systems to enable the Board to efficiently

conduct the business and discharge its responsibilities to shareholders.

To ensure that the decision making process is fair and transparent.

To ensure fullest involvement and commitment of the management for

maximization of shareholders value.

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To imbibe the corporate values in the employees and encourage them

in their conduct.

To ensure the Company follows the globally recognized corporate

governance practices.

The Board of Directors consists of seven Non Executive Directors and twoExecutive Director viz; Managing Director & Executive Director & CEO of

the Company. All key decisions are taken only after detailed deliberations

and discussions by the Board. The Board acts with autonomy and

independence in exercising strategic decision making process and

discharging its fiduciary responsibilities.

The Board members are presented with all the relevant information on vital

matters affecting the working of the Company as well as those which require

deliberations at the highest level. It is ensured that the information, as

required under Annexure I to the provisions of Clause 49 of the ListingAgreement is being made available to the Board Members.

The size and composition of the Board conforms to the requirements of the

Corporate Governance norms as stipulated under the provisions of the

Listing Agreement entered into with the Stock Exchanges.

The Audit Committee consists of only non-executive directors, with the

majority being independent directors. Terms of Reference of the Audit

Committee are as per Section 292A of the Companies Act, 1956 and the

guidelines as set out in the listing agreement entered with the Stock

Exchanges.

As per the recommendation of the Compensation /Remuneration Committee,

the Board and the shareholders approves the remuneration payable to the

Managing Director & Executive Director & CEO of the Company. The

Committee also formulates the Employee Stock Option Plans (ESOP).

BRAND DIRECTORY OF SHOPPERS STOP

Mens:

Austin Reed Van Heusen

Arrow

Louis Philippe

Indigo Nation

Scullers

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Zodiac

Excallibur

Allen Solly

Black Berrys

Shapes

Easies

Park Avenue

VF

Stop

Satya paul

Givo

Theme

Giovani

Life Fried Water

Mufti

Tuscan Verve

Weekender

Tantra

Spykar

Women's:

Aliza Donatein

Expozay

Black Berrys

Allen Solly

Free Look

Wills Sport

Weekender

Union Bay

One

Indian Earth

Life

Tangle

Upper Class

Vibe

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Kraus

Biba

Ishvarah

Indifeel

Urban Trio

Affairs

Rang

Kashish

Haute Curry

Sanna

Raviver

Rocky S Jeans

Triumph

Enamor Vanity Fair

Kids:

Stop

Little Kangaroo

Disney Babies

Kids' Studio

Winnie the Pooh Zero

Value M

Frills and Flowers

Weekender

Gini & Jony

Lee Youth

Free Look

Pepe

Bunny Kids

Kitten

Gini & Jony

Madigrass

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3- Globus Retail:

About the Company:

Strong, Competitive, Innovative, Adaptive

Launched in January 1998, Globus is a part of the Rajan Raheja group.

The company opened its first store in 1999 at Indore followed by the

launch of its second store in Chennai (T-Nagar). Soon to follow was

another in Chennai located in Adyar. The flagship store in Mumbai was

opened on 1st November 2001 followed by a swanky new outlet in New

Delhi in South Extension Part-2.

The sixth & seventh stores are in Bangalore in Koramangala & Richmond

Road respectively. The Eighth store in Ghaziabad at Shipra Mall followed

by the ninth, tenth and eleventh in Kalaghoda, Mumbai, Thane and

Ghaziabad, twelfth store at Kanpur and thirteenth store in Ahmedabad &fourteenth store in Lucknow.As of May 2008, Globus has opened its 24th

Store in Nagpur and the journey continues.

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Mission:

Achieve customer delight by offering quality products and services

through a process of continuous innovation and adaptation.

Build a dynamic team of committed and passionate employees through

sustained learning and grooming.

Develop mutually beneficial relationships with our business partners.

Employ cost-effective processes and thereby create a strong organization.

Infrastructure:

Globus Stores Pvt. Ltd. was formed to contribute in the revolution sweeping

the retail industry. Globus promises to bring about a perceptible change in

the way apparel and lifestyle retailing has been carried so far.

Towards this end, modern international technology has been brought in andheavy investments have been made in investing and acquiring the best, tried

and tested processes and procedures of operation.

Research & Design

Production & Merchandising

Marketing & Brand Development

Service

Human resources

Future:Globus combines state of art international information technology, the

highest quality human resources and sustained financial commitment to

realize the long term vision. We are rapidly expanding and the target is to

have an additional 100 fashion stores by the end of 2012.

Product Ranges:

Dress Materials Suiting & Shirting

Electrical Accessories.

Electronics Equipments

Footwear Toys.

Home Textiles.Home Needs goods.

Household Appliances.

Household Plastics.

Hardware.

Products Offered by Vishal Megamart:

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HOME FURNISHING:

Drawing Room BedroomDoor Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

FOOD MART:

FOOD &

BEVERAGES

SPORTS & FITNESS:

INDOORGAMES OUTDOOR GAMES

Basket Ball Cricket Bat

T.T. Bat Football

Boxing Kit Lawn Tennis

Swimming

CostumesTennis Racket

Water Ball Tennis Ball

Fitness Equip.

FOOTWEAR:

BOYS GIRLS

Shoes Slippers

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Sandals Sandals

LADIES MENS

Shoes Shoes

Slippers Slippers

TELEMART:

Communication Mobile Accessories

Mobile Mobile Batteries

Mobile Charger

Mobile Dori

MENS:

Upper Lower

Shirt Casual Jeans(MP)

Shirt Formal Cotton Trouser(MPC)

Ethnic & Sports Winter Wear

Night Suits Suit(WMC)

T-Shirts Blazer(WMB)Dupatta Windcheater(WMW)

Sherwani Jacket

LADIES ACCESSORIES:

Upper Lower

Kurta Pants Jeans

Skirt Top Capri

Ethnic Winter Wear

Nighty Jackets

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Lancha Stawl

Sharara Blazer

Salwar Suit Track Suit

INFANTS:

Garments Accessories

Hot Pant Bed Sheet

Frock Under Garments

Baba Suit Socks

Winter WearSweater

Pull Over

WOMEN:

Sarees Personal Items

Fancy(SRF) Cap(LCA)

Synthetics Socks(Las)Banarsi

Jewellery Cosmetics

Necklace LIp Gloss

Ring Nail Polish

KIDS BOYS:

Lower Sets Winter Wear

Jeans Night Suit Suit

Bermudas Baba Suit Blazer

Dungries Jacket

Upper Ethnic

Shirt Formal Kurta- Pyjama

T-Shirt Sherwani

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KIDS GIRLS:

Lower Sets

Hot Pant Night Suit

Skirt Capri Set

Dungries

Upper Ethnic

Tops(GWT Sharara

Frock(GFK) Lancha

TRAVEL ACCESSORIES:

Luggages Portfolio Bags

Suitcase Shoulder Bags

Pouch & Cases Executive Bag

Waist Pouch School Bags

Vanity Cases

HOUSEHOLD:

Acrylic Ware Copper Steel

Dinner Set Mug Cake Server

Home AidsPressure

CookerNon Stick

Floor Wiper Cooker HandiSanitary Brush Pressure Pan Dosa Tawa

General Plastic

Goods

Electrical

App.

Bone China

Coffee Mug Chopper Soup Set

Bucket Microwave

Oven

Dessert Set

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Glass Ware Thermo Ware Porcelain

Cup Tiffin Cup & Saucer

Lemon Set Container

LIFESTYLE:

Time Zone OpticalsGifts &

Novelties

Ladies Wrist

Watch

Ladies Sun

GlassFlower Vase

Mens Wrist

WatchMens Sun Glass Key Chain

MensAccessories

Electric &Electronics

Items

Perfume/Deo

Belts Battery (ABT) Spray

Wallets Calculator Deo

TOYS & GAMES:

Soft Toys DollsCycles &

Scooters

Musical Toys Barbie Doll Cycles

Non-Musical Other Dolls Scooters

Board Games Infant

Toys

Video Games

Wooden

Blocks TeetherT.V. Video

Game

Puzzles SwingHand Video

Game

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STATIONARY:

School Office Paper Mart

Exam Board Office File Diary

Clay PunchingMachine

File

Party Stuff

Balloons

Ribbons

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SWOT ANALYSIS

STRENGTHS:

We can encash brand image of Vishal Retail Ltd. to sell its new

product.

It sells product at cheaper prices.

Garment sector of the Vishal is much more superior to other retail

stores.

It offers wide range of products under one roof.

It provides good after-sale service.

It is the only store in Lucknow where you can exchange the goods

after purchase. (On selected items).

The Vishal Mega Mart is situated at the big market place.

It segments on middle and lower middle income groups, which

constitute majority of the population in India.

It has welled design store & well organized store.

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WEAKNESSES:

Absolutely no brand awareness for the product. (Z-Line).

Need to incorporate many new features as per customer requirement.

Lack of proper extraction of work from staff.

Need to include more varieties of the same item.

Need to provide more offers/ discounts on FMCG. Here the perception

of the people is quite low, because from my consumer behavior survey

I have found out that most of respondents think that Vishal Mega Mart

is not providing good offers/discounts on FMCG in comparison of Big

bazaar.

Need to improve store layout according to customer facility.

People are not so modern in Lucknow and their perceptions are quite

advance.

OPPORTUNITIES:

No other big competitor in that area.

To increase the customer satisfaction by providing different variety

of products.

Z-line (Manufacturing unit of Vishal) if we create the brand image

of it. It will get additional sales in the future.

Coming era is of knowledge and information if we sell our

manufacturing unit product through internet so we can create its

brand image + additional sales in future.

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There is a boom of retail in future according to current scenario. If

Vishal creates brand image of its Z-line product, so it can give

direct competition to the other branded products in future.

THREATS:

Big bazaar, Spencer, Reliance and Globus are the main

competitors.

Overseas group entering the market.

Increased competition in the domestic market.

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STRENGTHS OF COMPETITORS:

The Big Bazaar is situated at the Saharaganj mall, Lucknow. It haswelled design store of70,000sqft and well organized store.

The Spencer is situated at Nishalganj and different other public

locations.

It segments all age groups and income groups.

Additional space for the display.

Competitors provide good salary to the staff.

Large number of staff working in the competitors organization.

It gets credit from MNCs for the extended period of time.

Regular advertising in newspaper, radio, and TV for reminding the

customers about its stock.

Good space for parking of the competitors at different locations of theretail outlets.

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RESEARCH METHODOLOGY

Research Methodology:

Research methodology is the way to systematically solve the research

problem .It may be under stood as a science of studying to how research is

done scientifically. In it we study the various steps 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 bythe researcher himself or by others.

Secondary data are those which have been collected by someone else and

which have already been passed through the statistical process. There are

several ways by which secondary data can be classified.

Survey Method:

The survey is a non-experimental, descriptive research method. Surveys can

be useful when a researcher wants to collect data on phenomena that cannotbe directly observed (such as opinions on library services). Surveys are used

extensively in library and information science to assess attitudes and

characteristics of a wide range of subjects, from the quality of user-system

interfaces to library user reading habits. In a survey, researcherssample a

population. Basha and Harter (1980) state that "apopulation is any set of

persons or objects that possesses at least one common characteristic."

Examples of populations that might be studied are 1) all 1999 graduates of

GSLIS at the University of Texas, or 2) all the users of UT General

Libraries. Since populations can be quite large, researchers directly question

only asample (i.e. a small proportion) of the population

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Types of Surveys:

Surveys can be divided into two broad categories: the questionnaire and the

interview. Questionnaires are usually paper-and-pencil instruments that the

respondent completes. Interviews are completed by the interviewer based on

the respondent says. Sometimes, it's hard to tell the 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 will see questionnaires with

open-ended questions (although they do tend to be shorter than in interviews)

and there will often be a series of closed-ended questions asked in an

interview.

Survey research has changed dramatically in the last ten years. We have

automated telephone surveys that use random dialing methods. There are

computerized kiosks in public places that allows people to ask for input. Awhole new variation of group interview has evolved as focus group

methodology. Increasingly, survey research is tightly integrated with the

delivery of service. Your hotel room has a survey on the desk. Your waiter

presents a short customer satisfaction survey with your check. You get a call

for an interview several days after your last call to a computer company for

technical assistance. You're asked to complete a short survey when you visit

a web site. Here, I'll describe the major types of questionnaires and

interviews, keeping in mind that technology is leading to rapid evolution of

methods. We'll discuss the relative advantages and disadvantages of these

different survey types in Advantages and Disadvantages of Survey Methods

Questionnaires:

When most people think of questionnaires, they think of the mail survey. All

of us have, at one time or another, received a questionnaire in the mail. There

are many advantages to mail surveys. They are relatively inexpensive to

administer. You can send the exact same instrument to a wide number of

people. They allow the respondent to fill it out at their own convenience. But

there are some disadvantages as well. Response rates from mail surveys are

often very low. And, mail questionnaires are not the best vehicles for askingfor detailed written responses.

A second type is the group administered questionnaire. A sample of

respondents is brought together and asked to respond to a structured

sequence of questions. Traditionally, questionnaires were administered in

group settings for convenience. The researcher could give the questionnaire

to those who were present and be fairly sure that there would be a high

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response rate. If the respondents were unclear about the meaning of a

question they could ask for clarification. And, there were often

organizational settings where it was relatively easy to assemble the group (in

a company or business, for instance).

What's the difference between a group administered questionnaire and a

group interview or focus group? In the group administered questionnaire,

each respondent is handed an instrumentand asked to complete it while in

the room. Each respondent completes an instrument. In the group interview

or focus group, the interviewer facilitates the session. People work as a

group, listening to each other's comments and answering the questions.

Someone takes notes for the entire group -- people don't complete an

interview individually.

Survey Interviews:

Interviews are a far more personal form of research than questionnaires. Inthe personal interview, the interviewer works directly with the respondent.

Unlike with mail surveys, the interviewer has the opportunity to probe or ask

follow-up questions. And, interviews are generally easier for the respondent,

especially if what is sought is opinions or impressions. Interviews can be

very time consuming and they are resource intensive. The interviewer is

considered a part of the measurement instrument and interviewers have to be

well trained in how to respond to any contingency.

Almost everyone is familiar with the telephone interview. Telephone

interviews enable a researcher to gather information rapidly. Most of the

major public opinion polls that are reported were based on telephone

interviews. Like personal interviews, they allow for some personal contact

between the interviewer and the respondent. And, they allow the interviewer

to ask follow-up questions. But they also have some major disadvantages.

Many people don't have publicly-listed telephone numbers. Some don't have

telephones. People often don't like the intrusion of a call to their homes. And,

telephone interviews have to be relatively short or people will feel imposed

upon.

Constructing the Survey:Constructing a survey instrument is an art in itself. There are numerous small

decisions that must be made -- about content, wording, format, placement --

that can have important consequences for your entire study. While there's no

one perfect way to accomplish this job, we do have lots of advice to offer

that might increase your chances of developing a better final product.

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First of all you'll learn about the two majortypes of surveys that exist, the

questionnaire and the interview and the different varieties of each. Then

you'll see how to write questions for surveys. There are three areas involved

in writing a question:

determining the question content, scope and purpose choosing the response format that you use for collecting information

from the respondent

figuring out how to word the question to get at the issue of interest

Finally, once you have your questions written, there is the issue of how best

to place them in your survey.

You'll see that although there are many aspects of survey construction that

are just common sense, if you are not careful you can make critical errors

that have dramatic effects on your results.

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Research Design:

Method Used: Survey method

Type Of survey: Interview

Instrument used: Questionnaire

Sample size: 200

Data used: Both Primary & Secondary

Data Collection:

Data Collection is an important aspect of any type of research study.

Inaccurate data collection can impact the results of a study and ultimately

lead to invalid results.

Data collection methods for impact evaluation vary along a continuum. At

the one end of this continuum are quantatative methods and at the other end

of the continuum are Qualitative methods for data collection .

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Data collection methods :

The Quantitative data collection methods, rely on random sampling and

structured data collection instruments that fit diverse experiences intopredetermined response categories. They produce results that are easy to

summarize, compare, and generalize. Quantitative research is concerned with

testing hypotheses derived from theory and/or being able to estimate the size

of a phenomenon of interest. Depending on the research question,

participants may be randomly assigned to different treatments. If this is not

feasible, the researcher may collect data on participant and situational

characteristics in order to statistically control for their influence on the

dependent, or outcome, variable. If the intent is to generalize from the

research participants to a larger population, the researcher will employ

probability sampling to select participants. Typical quantitative datagathering strategies include:

Experiments/clinical trials.

Observing and recording well-defined events (e.g., counting the

number of patients waiting in emergency at specified times of the

day).

Obtaining relevant data from management information systems.

Primary Data Collection:

The considerable and diverse array of primary data methods includes, e.g.,

true experiments such as randomized controlled trials (RCTs) and other

controlled trials; other prospective but uncontrolled trials; observational

studies such as case-control, cross-sectional studies, and surveillance studies;

and simpler designs such as case series and single case reports or anecdotes.

These methods can be described and categorized in terms of multiple

attributes or dimensions, such as whether they are prospective or

retrospective, interventional or observational, controlled or uncontrolled, and

other attributes noted below. Some of these methods have alternative names,and many studies employ nearly limitless combinations of these attributes

Primary data used in this project is mainly collected through

questionnaire which has been taken with the help of sample size

which has been taken and after that the entire data has been

manipulated.

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Secondary data:

Secondary data originally collected for a different study, used again for a

new research question.

o Service District Statistics including basic client counts,attributes, demographics, social conditions and lots of program

information (analogous to public schools and school teachers,

who constitute some of the most accountable of public

servants).

o Other Social and Economic Indicators, Consumer Price Index,

unemployment figures, inflation indicators, Income Figures, etc.

o Resource Inventories and other needs assessments

o Opinion Polls taken by others

o

Budgets

The secondary data used in this project is :

through internet

through books of retail

company profiles of big bazaar and shoppers stop

QUESTIONNAIRE ANALYSIS

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Q1. How often do you visit the store?

a. Once in a week.

b. Twice in a week.

c. Once in a month.

d. Twice in a month.

e. Once in a year.

52

40

22

40

88

100

25

50

75

100

125

150

175200

Visit of respondents in

the store

once in a week

twice in a week

once in amonth

twice in a

month

once in a year


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Result: From the survey it is concluded that maximum visit of respondents

are twice in a month.

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Q2. Which section of the store does you like the most?

a. Food mart.

b. Home ware.

c. Household.

d. Medimart.

e. Kids.

f. Jewel mart.

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Result:

As per the responses about 84 respondents like the food mart section.

55

84

1840

0

48

10

0

25

50

75

100

125

150175

200

Divisions

Foodmart

Homeware

Household

Medimart

Kids

Jewelmart


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Q3- Are you satisfied with the customer service offered?

a. Good.

b. Average.

c. To an extent.

d. Need to be improved.

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Result:

From the survey it is concluded that maximum number of

respondents are assuming that the customer service offered here isaverage.

57

30

84

26

60

0

25

50

75

100

125

150

175200

Customer service offered

Good

Average

To an extent

Need to be

improved.


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Q4- Main reason for coming to the store?

1. Value for money.

2. Discounts.

3. Product range offered.

4. Nearby.

5. Saving of time.

6. Other.

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Result: From the survey it is concluded that maximum number of

respondents are coming to the store because it is near to their home.

59

20 2735

70

45

30

25

50

75

100

125

150

175

200

Reasons for coming to the

store

Value formoney

Discounts

Product rangeofferedNearby

Saving of time

Other


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Q5- Distance covered while coming to the store?

a. 0-5 kms.

b. 5-10 kms.

c. 10-15 kms.

d. More than 15 kms.

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Result: As per responses about 90 respondents stay 0-5 kms from the store.

61

92

65

30

13

0

25

50

75

100

125

150

175

200

Distance preferred (in kms)

0-5 kms

5-10 kms

10-15 kms

More than 15kms


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Q7- Preferred timing of coming to the store?

a. 10:00-11:59 a.m.

b. 12:00-5:59 p.m.

c. After 6:00p.m.

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130

50

20

Evening after

6:00p.m.

Afternoon 12:00-

5:59p.m.

Morning 10:00-

11:59am

Result:

As per responses about 110 respondents preferred to come in store in

the evening after 6:00 p.m.

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Question No.8-

Have you heard about Z-Line?

a. Yes.

b. No.

There is absolutely no brand awareness for Z-line (Vishal

manufacturing unit product) Vishal Retail Ltd. must do measures to

promote its brand, make ads both in print and electronic media. Makingstalls in corporate melas like trade fair can help.

88%

12% YES

NO

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Q9- Apart from Vishal where do you shop for daily items?

a. Big bazaar.

b. Globus.

c. Shoppers Stop.

d. Subiksha.

e. Local markets.

f. Other.

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Result: As per responses about 120 respondents preferred local markets

apart from Vishal.

66

42

10 14 5

120

90

25

50

75

100

125

150

175

200

Retail Stores

Big bazaar

Reliance

Spencer

Subiksha

Local markets

Other.


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Q10- What medium of advertisement do you respond to?

a. Magazine.

b. T.V (local cable channel).

c. Local newspaper.

d. Radio.

e. Relatives/ Friends.

f. Visuals.

g. Other.

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Result: From the survey it is concluded that maximum number of

respondents knows about Vishal through local newspaper.

68

6 0

94

2945

26

00

25

50

75

100

125

150175

200

Ways of informing about

Vishal

Magazine

T.V.

Local newspaper

Radio

Relatives/FriendsVisuals

Other.


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Q11- What sort of services would you will like the most gor the

betterment of the different stores?

a. More variety.

b. Discount on branded products.

c. Discount on FMCG.

d. Better Customer service.

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Result: As per responses about 75 respondents preferred discounts on

F.M.C.G.

70

30

56

78

36

0

25

50

75

100

125

150175

200

Suggestions

More variety

Discount onBrandedProducts

Discount onFMCG

Bettercustomerservice.


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Q11- How much rating will you give to this store?

a. Average.

b. Very Good

c. Excellent

d. Cant Say

Result: As per responses about 23% respondents said that its rating is

execellent.

rating of the retail store

23%

34%

29%

14%

excellent

very good

average

can't say

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Findings of the Research Report:

People of Lucknow prefer Vishal Megamrt, more than the

Shoppers Stop & Globus Retail because of its prime location and

it is cost effectiveness, but it is just for behind the Big-Bazar.

Vishal Megamart is cheap as compared to the Shoppers stop

Vishal Megamart has greater product line than the Shoppers stop

and Globus Retail. Big Bazaar offers more schemes and offers than

the Vishal Megamart and Shoppers

Introduction and Contents

Documents