Research Project Report

On
Marketing Strategies of Vishal Mega mart

SUBMITTED TO
PUNE UNIVERSITY
In Partial Fulfillment of Requirements
For the Award of Requirement of
Masters of Business Administration
BY
GAURAV TYAGI
MMM- II
Roll No:- 25
PROJECT GUIDE
MANISHA LANDE
ACADEMIC YEAR 2010-2012
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH
KONDHWA, PUNE- 48

PREFACE
A man can become perfect with a perfect knowledge and experience. As a student of
business management, we have studied many theories in the classroom but any
professional degree is incomplete without practical knowledge of concerned field.
And the same case is with management studies, management is incomplete without
knowing practical application of theories studied. I have experienced and understood
the practical importance of these theories on this training. More books and theoretical
knowledge cant help you in any field whether it is management or technical. Only thing
can help you is practical knowledge.
This development day provides a golden opportunity to the students for getting a perfect
knowledge and experience.
I come to know how the management of company is actually being done. How decisions
are made? How people behave and decide what to purchase?
As a part of my learning in management field and requirement of MMM program, I have
been given an opportunity to grab practical knowledge in the area of marketing and I
had selected VISHAL MEGAMART. I have made my best efforts to get knowledge
and experience. During the day, I had collected necessary information, and I present all
the necessary information to understand well.

ACKNOWLEDEMENTS
The project work is pursued as a part of MMM curriculum at Pune University Pune. I would
greatly rejoice to express emphatically with profound sense of gratitude and highest
veneration, my sincere thanks to Pro-Manisha Lande for giving me guidance for this Project.

The project is undertaken as training at Vishal Mega-Mart. The project is done under
expert supervision and guidance of Mr. Ashish Kumar (Store Manager, Vishal MegaMart). I am thankful for him.
I am short of words to express my respect & honor to my parents and family members &
friend who showered their blessings, affection, encouragement, & inspiration, without
which this report would not have been finalize.
I also express my sincere thanks to my friends who helped me differently in the
completion of my work.
Last but not least, I also thank all those people whom I met at Vishal Mega-Mart during
my internship and helped me to accomplish my assignments in the most efficient and
effective manner.

DECLARATION
I,GAURAV TYAGI, hereby declare that the project report on MARKETING
STRATEGIES OF VISHAL MEGA MART is a result of my own work and my
indebtedness to other work publications, if any, have been duly acknowledged.

Place: Pune

Signature

Date: 21/09/2010
GAURAV TYAGI

EXECUTIVE SUMMARY
A comparative study of effectiveness of different promotional strategies (schemes)
with reference to vishal mega mart
All this information has collected regarding the project through primary and secondary

data.
This report highlights on the understanding the marketing strategies of vishal
mega mart and their effect on sales of the products.
From the questionnaire & the data collected from net & other resources and find market
potential of big bazaar.
The limitation of this thesis is sample size. The sample size for this thesis is only 100
respondents. The methodology adopted by me for this thesis is to conduct a survey. I have
prepared questionnaire for the survey. The objective of this thesis is understood marketing
strategies of vishal mega mart and its effect on the sales of its services and products.
The finding of the thesis is that customer is interested in products and services given by Vishal
Mega Mart & give different type of promotional activity for the effective market potential.

CONTENTS
S.NO.

CONTENTS

PAGE
NO.

1.

Preface

2.

Acknowledgement

3.
4.
5.

Declaration
Executive Summary
Chapter 1. Introduction
Introduction of Indian Retail Industry
Objective of the Study
Limitations of the Study
Scope of the Study

4
5

Chapter 2. Research Meathodology

16-20

Company Profile

8
12
13-14
15

21

Vision
Marketing Strategy
Chapter3. . Data collections and Analysis
Swot Analysis
Questionare

25
37
45-47
45
47

Chapter4. Findings
Findings

60
60-62

Chapter 5. Conclusion and Suggestion

Conclusion
Suggection

63
64

Chapter 6. Bibliography

65

Chapter:-1.
INTRODUCTION

Introduction of Indian Retail Industries:

In 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
7

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:

1
2
3
4
5
6

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
1 Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
2 India is rated the fifth most attractive emerging retail market: a potential goldmine.
3 Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
4 As per a report by KPMG the annual growth of department stores is estimated at 24%
5 Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India Retail Report to be
around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail
8

market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the
different types of retail industries present in India. Furthermore around 15 million
retail outlets help India win the crown of having the highest retail outlet density in
the world. The contribution of retail sector to GDP has been manifested below:
Country Retail Sector's
share in GDP (in %)
India 10
USA 10
China 8
Brazil 6
As can be clearly seen, retailing in India is superior to those of its contenders. Retail
sector is a sunrise industry in India and the prospect for growth is simply huge.
There are many factors that have stimulated the rise of the shopping centers and
multiplex-malls in a jiffy. Some of them can be listed as follows:

Rise in the purchasing power of IndiansThe rise in the per capita income in the last few years has been magnificent. This has led to the
generation of insatiable wants of the upper and middle class. The demand of new as well as
9

second hand durables has risen throughout the country thus providing the incentive for
taking up retailing.
Favorable to farmers- retailing has helped in removing the middlemen and
has thus enhanced the remuneration to farmers. This is a new revolution in
the agricultural sector in India and will go a long way in amending the
condition of agriculture, a major concern among policy makers.
Use of credit- a typical Indian is most conversant with using credit cards than
carrying money. These have led to a shift of the consumer base towards
supermarkets and make the payments in the form of credit.
Comfortable Atmosphere- a visit to a retail store appears to be more soothing for
the generation-Y. People and kids prefer to shop in an air conditioned a tech savvy
manner. The retail industry is the second largest employer in India. It currently employs
about 7 percent of the total labor force in India. Finance Minister P. Chidambaram's
recent statement salaries ought not to be legislated is a welcome move as most of the
organized retail is in private hands. However only about 4.6% of the total retail trade is in
organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major and
minor players desperately need to work hard in this direction so that next time the figures
look more decent. The government must also make an attempt to ameliorate the
situation as political instability and infrastructure namely power and roads are the

major roadblocks in the path of smooth functioning of the market.

Components of Retail Sector

The major components of the retail sector are:
10

Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables,
Apparel, Footwear and leather, Watches, Jewellery, and Health and Beauty
The anatomy of the retail market has shown that the clothing and textiles
constitutes 39 per cent of the organised retail pie, followed by food and grocery,
which accounts for 11 percent of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of
Commerce and Industry (FICCI), among these, the food and grocery is expected to witness
the fastest growth followed by clothing as the second-fastest growing segment.

Objectives of the study

11

1 To understand the different marketing strategies being followed by Vishal

Mega Mart.
2 To learn their marketing mix.
Marketing help to define the business for the customer's interests, not your own. It is the
process of learning what customers want or need and determining how to satisfy those
wants or needs. It is also used to confirm whether the customer reacted to a marketing
program as expected. The benefits of market research include:
Learning who your customers are and what they want.
Learning how to reach your customers and how frequently you should try to
communicate with them.
Learning which advertising appeals are most effective and which ones get no response.
Learning the relative success of different marketing strategies, thus improving return on

investment.
Learning how not to repeat your mistakes.

LIMITATION OF THE STUDY

12

Although it would have been nice to conduct a perfect research study, but this study is
conducted under certain limitations, which were faced while doing this research. So it is
highly recommended to consider these limitations while going through the project study.
These limitations are as follows
1. LIMITATION OF DATA
The statistical data regarding the city was not available to us on secondary
source of data and to generate such data on the primary source was a task,
which cannot be achieved in such a short time.
2.

LIMITATION OF TIME
The limitation of time was another constraint in the study as the study had to be
conducted in few months therefore many aspects have been left unexplored.
Research period is not just much enough to know fully about the strategies &
consumers perception
3. INHIBITIONS OF THE RESPONDENTS
The respondents did not reply the question with precision as they were busy with their
own work or they were not interested in taking part in such a research. Employees
sometimes feel hesitated while telling about their view about their marketing strategies.

4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA

The research has been conducted for the Vishal mega mart(Shastri Nagar Garh
Road,Meerut) but not all their retail outlet have been covered therefore it has
been mentioned that the research has been conducted in a limited area.
5. THE SAMPLE SIZE IS SMALL
The sample size taken for this thesis is small; it may not actually represent the whole
population. The data collected were totally depending on the respondents views, perception,
behavior, psychology related to particular scheme which could base in nature

13

These limitations were very common and yet we came across these with a
positive note and the subsequent chapters in this report shall explain the
rationality behind the structural compilation.

14

Scope of study
This project gave me great exposure to the customers perception to the marketing
strategies adopted by the Vishal mega mart because it includes the service offered by
them. The study also identifies the attitudes and preference of the consumers. The
study also focused on Media through which the product reaches the consumers This
project helped me in knowing the market practically.

15

RESEARCH METHODOLOGY
Definition of Research
The word research is derived from the Latin word meaning to know. It is a systematic and
a replicable process, which identifies and defines problems, within specified boundaries.
It employs well-designed method to collect the data and analyses the results. It
disseminates the findings to contribute to generalize able knowledge. The characteristics
of research presented below will be examined in greater details later are:

Systematic problem solving which identifies variables and tests relationships

between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by
others Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a
larger population
Replicable, so others may test the findings by repeating
it. Discovering new facts or verify and test old facts.

Developing new scientific tools, concepts and theories, this would facilitate to
take decision.
For the proper analysis of data simple statistical techniques such as percentage were
use. It helps in making more generalization from the data available. The data which was
collected from a sample of population was assumed to be representing entire population
was interest. Demographic factors like age, income and educational background was
used for the classification purpose.

16

2.1 Research Design:

It was important to collect detailed information on various aspects for effective
analysis. Research design can be of three forms:
1 Descriptive Research: It is conducted to ascertain certain magnitudes and to
provide an accurate snapshot of some aspect of the market environment. For
example: Determining the size of the market, market share, availability of
distributors, sales analysis, studies of consumer attitude etc.
2 Exploratory Research: This is used when one is seeking insight into the general
nature of a problem, the possible decision alternatives, and relevant variables
that need to be considered. Little prior knowledge is required. Research methods
are highly flexible, unstructured and qualitative. For example: What new product
should be developed, what should be the positioning of our product, etc.
3 Causal Research: Causal studies are designed to determine whether one or
more variables cause or determine the value of other variables. It is an evidence
of relationships of variables. For example: Whether decrease in price will lead to
an increase in the sales of a product, or whether the presence of a sales person
will help in increasing the sales in a retail outlet, etc.
4 These three types can be viewed as cumulative. The research design adopted
for project research is Causal Research.
5 Once the researcher has decided the Research Design, the next job is of data
collection. For data to be useful, our observation needs to be organized so that
we can get some patterns and come to logical conclusions.

Depending upon the sources utilized, whether the data has come from actual
observations or from records that are kept for normal purposes, statistical data can be
classified into two categories:
2.2 Primary Data
2.3 Secondary Data
17

2.2 Primary Data:

It is one, which is collected by the investigator himself for the purpose of specific
inquiry or study. Such data is original in character and is generated by surveys
conducted by individuals or research institutions.
It can be obtained by:
1 Communication
2 Observation
3 Questionnaire
2.3 Secondary Data:
When an investigator uses the data, which has already been collected by others
such data is called secondary data. This data is primary for the agency that collects it
and becomes secondary data for someone else who uses this data for his own purpose.
It can be obtained by:
1 Companys web
2 Journals
3 Reports
4 Newspapers
5 Government Publications
6 Publication of professional and research organization.
The research methodology involves the following major steps namely2.3.1 Defining data source
2.3.2 Research approach
18

2.3.1 Defining data source:

In the project, both primary and secondary data were used for the research process.
Secondary data are data that were collected for another purpose and already exist somewhere.
In this project the secondary data are collected from internet, newspapers and text materials.
This constitutes the chief material on the basis of which research work is carried out.

Primary data are data freshly gathered for specific purpose or specific project
purpose. It is obtained by study specifically designed to fulfill the data of the problem
in hand. Primary data are original in character. Primary data was collected in two
ways: - Observation research and surveys.
2.3.2 Research Approach:
In the project primary data was collected through observation research, surveys
and secondary data from internet, books and text materials. In observation research,
fresh data was collected by observing the relevant parameter of research. Basically
secondary data was used for evaluating the performance of stock market.
2.4 Sample Design:
For carrying out any research or study on any subject it is very difficult to cover
even 10% of the total population. Therefore the sample size has to be decided for a
meaningful conclusion. For designing the sample size, it was thought proper to cover a
very small percentage of population in various age groups.
The method used for sample technique was non probability convenience sampling method. This
method is used because it is known previously as to whether a particular person will be asked to
fill the questionnaire. Convenient sampling is used because only those people will be asked to
fill the questionnaires that were easily accessible and available to the researcher.

Considering the constraints, it was decided to conduct the study based on sample size
of 200 people in specific age groups. Scientific method is not adopted in this study
because of financial constraints and also because of lack of time; also the basic aim of
doing the research is academic, hence most convenient way is selected
2.4.1 Sample Size:
19

I conducted approximately 200 samples during my research.

2.4.2 Sampling Method:
I used random sampling method for my research. Where, I have selected the persons
randomly for research work.
2.5 Method of data collection:
The next step is together the requisite data. There are two types of data collection
method primary data and secondary data
2.5.1 Instrument for data collection:
I have used the questionnaire method in sample survey. If one wishes to find what people
think or know, the logical procedure is to ask them. This has lead marketing researchers to
use the questionnaire technique for collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were asked
to answer the questions in the questionnaire. The questionnaires were structured nondisguised questionnaire because the questions, which the questionnaire contained,
were arranged in a specific order besides every question asked was logical for the
study; no question can be termed as irrelevant.
The questionnaire, were non-disguised because the questionnaire were constructed so
that the objective is clear to the respondent. The respondents were aware of the
objective. They knew why they asked to fill the questionnaire.
2.7 Data-analysis techniques:
The study conducted is a conclusive descriptive statistical study; the researcher comes to
the decision which is precise and rational. The study is conclusive because after doing the
study the researcher comes to a conclusion regarding the position of the brand in the minds
of respondents of different firms groups. The study is statistical because throughout the
study all the similar samples are selected and group together. All the similar responses are
taken together as one and their percentages are calculated.
20

Thus, this, conclusive descriptive statistical study is the best study for this purpose as it
provides the necessary information which is utilize to arrive at a concrete decision.

COMPANY PROFILE
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.
As of December 1, 2010, it operates 172 retail stores, including two stores which are
operated by their franchisees. These 172 stores are spread over about 24,00,000square
feet and are located in 24 states across India. In its efforts to strengthen thier supply chain,
it has set up seven regional distributions centres and an apparel manufacturing plant.
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.
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.
21

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 customer 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

It follows the concept of value retail in India. In other words, their business approach is
to sell quality goods at reasonable prices by either manufacturing themself or directly
procuring from manufacturers (primarily from small and medium size vendors and
manufacturers). It endeavour to facilitate one-stop-shop convenience for their customers
and to cater to the needs of the entire family. It
believes this concept has helped them grow to thier current size within a short time
frame of their years. Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful
person in the Indian retail industry.
In order to reduce costs and take advantage of economies of scale it has embarked on
backward integration of their products. Thier apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, it has set up seven regional
distribution centres located around Kolkata, Thane (Maharashtra), Jaipur (Rajasthan),
Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, it
has focussed on developing a cost and time efficient distribution and logistics network,
which currently comprises seven distribution centers and a fleet of trucks for transportation.
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

22

15

Board of Directors:

2
3

Mr. Ram Chandra Agarwal, Chairman & Managing Director

He holds a bachelors degree in commerce from St. Xaviers College,Kolkata. Mr.
Agarwal has more than 20 years of experience in the retail industry and has been with
VRPL since their inception in 1997.

Mrs. Uma Agarwal, Executive Director

She holds a bachelors degree in arts. Mrs. Agarwal has more than 7 years of experience
in the retail industry. She has been associated with accounts department of VRPL.

Mr. Surendra Kumar Agarwal, Executive Director

. . He holds a bachelors degree in commerce. Mr. Agarwal has more than 17 years of
experience in the retail industry. He has been associated with store development and
management at various locations of VRPL.

Mr. Bharat Jain, Independent Director

He holds bachelors degree in commerce. Mr. Jain is engaged in the business of
leather garments and accessories and has more than 23 years of work experience.
Mr. Jain joined VRPL Board on May 8, 2006.
Mr. Rakesh Aggarwal, Independent Director
He holds a masters degree in commerce. Mr. Aggarwal is currently engaged in rotomoulding industry has more than 20 years of work experience. Mr. Aggarwal joined
VRPL Board on October 31, 2006.

OUR PROMOTERS AND GROUP COMPANIES

Our Promoters
The following individuals are the Promoters of our Company:
a). Mr. Ram Chandra Agarwal;
b). Mrs. Uma Agarwal; and

24

c). Mr. Surendra Kumar Agarwal.

a). Unicon Marketing Private Limited;
b). Ricon Commodities Private Limited; and
c). Vishal Water World Private Limited.

In addition, the following HUFs are the Promoters of our

Company: a). Mr. Ram Chandra Agarwal (HUF)

by

Name of Shareholders & Number of Shares % of shareholding

1. Unicon Marketing Private Limited 315,000 49.53

2. Ricon Commodities Private Limited 300,000 47.17
3. Mr. Ram Chandra Agarwal 12,010 1.89
4. Mrs. Uma Agarwal 9,010 1.42
Total 636,020 100.00

and
the

items,

sports

furnishing,

items,

beverages,

crockery,
drinks,

home

gift

and

novelties.
VRPL follow the concept of value retail in India. In
other words, VRPLs business approach is to sell
quality goods at reasonable prices by either
manufacturing themselves or directly procuring
from manufacturers (primarily from small and
medium size vendors and manufacturers). VRPL
endeavor to facilitate one-stop-shop convenience

VRPL started as a retailer

for their customers and to cater to the needs of

of ready-made apparels

the entire family. VRPL believe this concept has

in Kolkata in 2001. In

helped them grow to their current size within a

2003, VRPL acquired the

manufacturing
from

facilities

Vishal

Fashions

Private Limited and M/s

Vishal

Apparels.

Subsequently,

with

evolution of retail industry

in India and change in
consumer
VRPL

aspirations,

diversified

their

portfolio of offerings to
include other retail goods.
Currently,

VRPL

sell

ready-made apparels and

a

wide

range

household
and

of

merchandise

other

consumer

goods such as footwear,

toys, watches, toiletries,
grocery
items,

items,

sports

crockery,

home

furnishing,

beverages,

short time frame of 10 years.

In order to reduce costs and take advantage of economies of scale VRPL have
embarked on backward integration of their products. VRPLs apparel manufacturing
plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL
have set up seven regional distribution centers located around Kolkata (West Bengal),
Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana
(Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have focused on developing a
cost and time efficient distribution and logistics network, which currently comprises
seven distribution centers and a fleet of trucks for transportation.
VRPL Business Processes:VRPLs business process can be summarized as below:
Establishment of Stores:
Selection of location
In selecting location for a new store, VRPL start by identifying the city/town. VRPL target
primarily cities/towns which may be classified as Tier II or Tier III cities. In this regard, an
analysis of the demography, literacy levels, nature of occupation and income levels. Within a
city/town, VRPL target locations with good infrastructural facilities such as easy accessibility,
provision for water, electricity, parking, security and other basic amenities. VRPL prefer to locate
their stores in areas where real estate is available at reasonable prices. The efforts of VRPLs
retail business are targeted towards families having total income which can be classified under
the lower middle and middle income groups. Accordingly, VRPL plan their strategy to search
for areas within cities where such customers are domiciled in large numbers and make efforts to
locate themselves within the reach of such customers.

VRPL believe that adoption of standard formats for their stores has led to their brand
establishment and identification among their customers and will increase their base of
loyal customers. In pursuance of this, they have adopted standard parameters for store
planning and establishment. For ensuring standardized formats
of their stores, VRPL consider various factors, such as internal and external dcor and
colour schemes, allocation of store space, stock mix and pricing and accounting methods.
26

Insurance
VRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz, Royal
Sundaram

and

IFFCO-TOKIO

for

their

existing

stores,

distribution

centers,

manufacturing facilities and trucks. VRPL insurance policies include comprehensive

coverage for electronic equipment, fire and special perils and burglary. Further, VRPL
has filed a claim of Rs. 22.50 million on account of fire in their store at Meerut as on July
7, 2006. In this regard, they have received Rs. 7.50 million as an interim payment.
Factories
VRPLs existing manufacturing facilities are located at Plot No. 224, Phase 1 Udyog
Vihar, Gurgaon, for which they have leasehold interest until May 4, 2009. In addition,
VRPL have recently acquired freehold interest in relation to a land admeasuring 7.24
acres in Dehradun, Uttaranchal, where they are exploring the possibilities for
establishment of another manufacturing facility.
Other Properties
VRPL have recently acquired freehold interest in relation to a land admeasuring 82,830
square feet in Hubli, Dharwad.
Merchandise Planning
VRPLs merchandise planning is based on the concept of category management rather
than traditional brand management practices.

27

Apparels and Non Apparels

Under category management for, say, apparels, VRPL create and cater to products across
length and breadth of a category at different price points, fabrics, designs, shapes, seasons,
colors and sizes. VRPL formulate annual merchandising plan for each division of
merchandise taking into consideration factors such as past sales data, regional customer
tastes and preferences, number of stores (established and proposed), likely fashion and
trends, in-house production resources, vendor management and price. Each division is
further divided into major categories (for instance, mens apparel as a division is further
divided into three major categories, namely, upper, lowers and sports and ethnic wear).
These major categories are in turn segregated into various subcategories. For example,
mens upper as a major category would be further divided into several sub-categories such
as formal shirts, casual shirts, party wear etc. Each sub-category consists of pre-defined
SKUs, which are classified on the basis of price point, brand, style, pattern and size.
VRPL draw annual sales projections for different SKUs and, accordingly, ascertain their
sourcing requirements. Based on such information and lead time estimates for supplies,
purchase orders with delivery schedules are issued. The inventory position for each SKU is
reviewed fortnightly taking into account the actual sales and variations from the budgeted
plans. Regular visits to the stores are made by the category merchandising team to identify
the slow-moving-SKUs and explore the options to expeditiously dispose of them.
For certain non apparel categories, their merchandise planning and scheduling also depends on
introduction of new products and schemes by the vendors. For instance, if a branded home
appliance manufacturer replaces a product with a new version, then their planning for the
product would need to be reviewed based on the acceptability of the new version.

In-house Manufacturing
VRPL benefit from backward integration and in-house manufacturing of part of the apparel products
sold in their stores. Through their manufacturing capabilities, VRPL is able to attain relative
independence from intermediaries with a competitive advantage in terms of value and cost. VRPL
use their manufacturing strengths to focus on enhancing product knowledge and their experiences
from manufacturing enable them to negotiate better terms from the vendors and job
28

workers.
VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The manufacturing
plant is well-equipped with fully automatic machines for fusing, buttoning, embroidery and welt
pocket-making operations. The factory has a capacity to manufacture 5,000 pieces per day. The
plant was commissioned in 2004 and achieved a capacity utilization of 80%. It has 450
machines and is operated by 500 workers. Further, VRPL are exploring the possibilities for
establishment of another manufacturing facility, for the purposes of which they have acquired
certain portions of land admeasuring 7.24 acres in Dehradun, Uttaranchal.

In addition to in-house manufacturing, they have outsourced some parts of the

manufacturing to job workers who work in their factory premises. VRPL undertake
quality control measures by way of random sampling to ensure the pre-determined
quality standards are met. To verify that the quantity of supplies is as per the order, they
undertake count-check for every receipt of the goods.
VRPLs manufacturing team works closely with their design team to understand trends, develop
products, value engineer and finally create season wise collection that cater to regional tastes.

Purchasing
Purchasing or vendor management assumes critical importance in retail business where one
has to deal with multiple products. VRPL have in place a vendor management system, under
which they identify vendors all over the country and overseas and seek to develop alliances and
arrangements with them. They regularly interact with the vendors and share information such
that the vendors remain familiar with their goals and targets. It has been their strategy to
procure goods from small and medium sized vendors and manufacturers, which they believe
has led to reduction in the cost of goods they sell and increase in their profitability.

Upon ascertaining the procurements needs based on each SKU, VRPL explore the
various options for sourcing the products. They continuously strive to procure goods
from the place of origin to reduce the costs and control the quality. For identifying the
vendors, VRPL assess the various possible options on factors such as capacity,
credibility in the market, quality awareness and experience.
After identifying the vendors for the goods, VRPL place purchase orders based on their SKUwise plan, estimated lead time of each vendor and quantity to be procured from each vendor.
29

VRPL follow a policy of payment on delivery to negotiate better prices with the vendors and
in certain cases they also release payments in advance. To ensure quality of supplies,
VRPL check quality by way of random sampling at the time of receipt of the goods. To verify
that the quantity of supplies is as ordered, they undertake count-check for every receipt of
the goods. For FMCG products, VRPL procure from large as well as small and medium size
manufacturers. For procurement from the large manufacturers or their distributors,
they endeavor to enter into formal arrangements for supply of products to all

VRPL stores, such that they are able to derive fixed margins from sales of such products,
irrespective of the locations. Under these agreements, they benefit from special
discretionary discounts and offers directly from the manufacturers or their distributors.

30

VISHAL Apparels Brand

Vishal Mega Mart is one of Indias fastest growing retail chains.. The
chain currently has 172 company stores in 24 states / 110 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, our name has been synonymous with quality, value and
fashion integrity. We offer an unparalleled collection of clothes for the entire family. Each
garment is hand selected for quality and contemporary styling. Vishal manufactures
majority of its own garments and out sources some under its direct quality supervision.
This enables us to offer the lowest possible and most reasonable prices.
Our goal is to provide a range of fashion wear to suit every pocket. Our product mix
represents the most current fashion trends in tops, bottoms, formals and accessories for
men, women and kids. Our courteous staff will ensure that consumers get a perfect fit.

Popular Brands are:

Zeppelin :
Mens Shirts & Trousers
Kitaan Studio : Mens Shirts & Trousers
Blues & Khakis : Mens Trousers
Paranoia :
Mens Shirts & T-Shirts

Fizzy Babe :
Jasmine :
Zero Degree :
Soil :

Chlorine :

Mens Shirts

Massa Bay :

Fume :

Mens
Shirts,
UnderGarments.

T-Shirts,

Ladies & Kids Girls

Ladies & Kids Girls
Kids Boys
Mens Shirts
Mens
Trousers
Bermudas

&

Apparel Manufacture
The basic raw materials required for the manufacturing process of apparels includes
fabrics and accessories. VRPL merchandising teams source fabrics from local
manufacturers in India depending upon their production plan. VRPL also source fabrics
from the place of origin. VRPL source various other components and accessories from
vendors in various parts of the country and also import them from China.
31

Inventory Management, Distribution Network and Logistics

VRPLs distribution network and logistics encompasses all activities to ensure that goods
are dispatched in right quantities and at right time to reach stores with sufficient time in hand
to promptly cater to customer demands and optimization of inventory position.

They have built a system to monitor the inventory position on a real-time basis at each
store, under which a stock requisition or delivery order is generated when predetermined stock or re-order levels are reached. The re-order levels for stores are
determined based on factors such as display levels, lead time for replenishment and
average daily sales. VRPL review these re-order levels on continuous basis to factor in
variances in demand based on seasons, trends and promotional schemes.
VRPL have seven distribution centers over approximately 385,033 square feet. These
distribution centers are located around Kolkata (West Bengal), Thane (Maharashtra),
Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana)
and Mahipalpur (New Delhi). VRPL have clearly demarcated the stores which will be
serviced by each distribution centre. The reorder levels for distribution centers are
ascertained on the basis of factors like average daily sales of all the stores services,
lead time for replenishment and buffer stock, which caters to both the existing and
proposed stores to be fed. As for the stores, they regularly review these re-order levels.
VRPLs distribution centers and stores are connected through company-wide virtual
network connection through broadband which helps to efficiently manage their network
of stores and distribution centers throughout the country.
They primarily utilise their own vehicles to transport the inventory to their stores from the
distribution centers. In addition, VRPL use the services of logistic solution providers
including low cost transport service providers in order to deliver products on time to
VRPL stores and optimize transportation costs. Distribution centers operations have
been streamlined through the standardisation of racking system, layouts and
implementation of automatic replenishment system.
Under arrangements with some of their merchandise manufacturers, they receive
payment on account of display of their products.
32

Product Categories

- HOME FURNISHING
Drawing Room Bedroom
Door Mat Bed Sheet
Carpet
Pillows
Curtains
Pillow Cover
Kitchen
Bathroom
Apron
Bath Mats
Kitchen Napkin
Towel Gift Sets
FOOTWEAR
BOYS
Shoes
Sandals
LADIES
Shoes
Slippers

GIRLS
Slippers
Sandals
MENS
Shoes
Slippers

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
Lancha Stawl
Sharara Blazer
Salwar Suit
Track Suit
3
3

INFANTS
Garments
Accessories
Hot Pant Bed Sheet
Frock
Under Garments
Baba Suit Socks
WOMEN
Sarees Personal Items
Fancy(SRF)
Cap(LCA)
Synthetics
Socks(Las)
Banarsi
Jewellery
Cosmetics
Necklace LIp Gloss
Ring
Nail Polish
KIDS BOYS
Lower
Jeans
Bermudas
Dungries
Upper
Shirt Formal
T-Shirt
KIDS GIRLS
Lower
Hot Pant
Skirt
Dungries
Upper
Tops(GWT)
Frock(GFK)

Sets
Night Suit
Baba Suit

Winter Wear
Suit
Blazer
Jacket

Ethnic
Kurta- Pyjama
Sherwani

Sets
Night Suit
Capri Set

Winter Wear
Hipster Set
Blazer
Jacket

Ethnic
Sharara
Lancha

HOUSEHOLD
Dinner Set
Jug
Home Aids
Pressure Cooker
Floor Wiper
Cooker
Sanitary Brush
Pressure Pan
General Plastic Goods Electrical App.
Coffee Mug
Chopper
Bucket
Microwave Oven
Glass Ware
Thermo Ware
Cup
Tiffin

Cake Server
Non Stick
Handi
Dosa Tawa
Bone China
Soup Set
Dessert Set
Porcelain
Cup & Saucer
3
4

L$emon Set
LIFESTYLE
Time Zone
Ladies Wrist Watch
Mens Wrist Watch
Mens Accessories
Belts
Wallets

Container
Opticals
Gifts & Novelties
Ladies Sun Glass
Flower Vase
Mens Sun Glass
Key Chain
Electric & ElectronicsPerfume/Deo
Items
Battery(ABT)
Calculator(EEC)

Spray
Deo

TOYS & GAMES

Soft Toys

Dolls

Cycles & Scooters

Musical Toys
Non-Musical
Board Games
Wooden Blocks
Puzzles

Barbie Doll
Other Dolls
Infant Toys
Teether
Swing

Cycles
Scooters
Video Games
T.V. Video Game
Hand Video Game

FOOD MART
FOOD & BEVERAGES
Snacks
Drinks

MARKETING ANALYSIS SUMMARY

Marketing help to define the business for the customer's interests, not your own. It is the process of
learning what customers want or need and determining how to satisfy those wants or needs. It is
also used to confirm whether the customer reacted to a marketing program as expected. The
35

benefits of market research include:

Learning who your customers are and what they want.
Learning how to reach your customers and how frequently you should try to
communicate with them.
Learning which advertising appeals are most effective and which ones get no response.
Learning the relative success of different marketing strategies, thus improving return on

investment.
Learning how not to repeat your mistakes.
Vishal Mega Mart has been the pioneer of retail revolution. Its first fight was against
local Kirana stores. The task was to change the mindset of consumer to bring about
changes in their shopping patterns. It wanted people to do bulk shopping for their
monthly ration instead of going to the shop each week.

MARKETING STRATEGY OF VISHAL MEGA MART

Product
Vishal Mega Mart offers a wide range of products which starts from apparels to food items, footwear
to home furnishing, crockery to sport items, child care products to toys, watches, drinks etc. There
are many in house brands promoted by Vishal Mega Mart. In pursuance of their
36

business plan to diversify their portfolio of offerings, FMCG products play a key role. FMCG
products are usually meant to fulfill the daily needs of consumers and therefore, VRPL believe
retailing of FMCG products will bring customers to their stores on a frequent basis and this may
in-turn lead to consumption of their apparels. VRPL have a number of private labels for apparels
such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier Women and Roseau.

. Vishal Mega-mart sold over 300,000 pairs of jeans, 50,000 DVD-players and 25,000
microwave-ovens. In all, the fashion,
electronics and travel segments made up about 70% of sales. Last year, these
categories made up only about 60%.

Price
Vishal Mega Mart promises its consumers the lowest available price. The concept of psychological
discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart also caters on
Special Event Pricing (Close to Diwali, Christmas, New Year etc.). Selling combo-packs and offering
discount to customers. The combo-packs add value to customer. Through Bundling, they also
reduced the price of the products. In addition to VRPLs strategy to continue
37

procurement of goods from small and medium size vendors and manufacturers which
leads to cost efficiencies, VRPL intend to procure FMCG and apparels from
low-cost production centers located outside India. Towards this objective, VRPLs propose to
increase their procurement of finished and semi-finished goods from China and thereby
realize economies of scale and pass on the benefits so accrued to their customers. The
efforts of VRPLs retail business are targeted towards families having total income which
can be classified under the lower middle and middle income groups. VRPL follow uniform
pricing policy across their stores in respect of private labels and non-branded products sold
by them. This enhances brand loyalty, encourages customer confidence and results in
operational convenience. In relation to the other products, the prices may vary between
stores on account of state-specific taxation and vendor policies.

Place
Vishal Mega-mart stores are located in 129 cities with 172 outlets. VMM has presence
in almost all the major Indian cities. They are aggressive on their expansion plans.
Vishal Retail targets cities with urban population of 1 million people or above or can be
classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens retail outlets on
the outskirts, rather than the prime area. Its target market includes people with middle
income and lower income levels. This enables the company to overcome competition to
some extent due to its first mover advantage (as competitors have relatively less space
in tier-2 and tier-3 cities) and helps to lower rental cost. As at 3Q FY08, 78% of the
companys 82 stores are in Tier-2 and Tier-3 cities.The company plans to maintain the
ratio of Tier-2 and Tier-3 to Tier-1 cities at 80:20.
Promotion
Advertising has played a crucial role in building of the brand. Vishal Mega Mart
advertisements are mainly seen in print media i.e. newspapers, Television with Tina
Parekh as there in advertisement, and sometime road-side bill-boards.
VRPLs category management system is used to plan promotional schemes. They launch
promotional schemes weekly. Apart from general sales promotion, the category manager
38

formulates promotional plans for slow movers. In addition, to promote sales, they focus on
layout of the stores and positioning, presentation and display of merchandise, in order to
appeal to the customer. In addition, VRPL have introduced, in association with SBI Cards &
Payment Services Private Limited, a co-branded credit card. VRPLs propose to
continuously undertake such initiatives to increase the satisfaction of their customers.

Vishal Mega-mart started many new and innovative cross-sell and up-sell strategies in
Indian retail market. The various promotion techniques used at VMM include:
-5 Din Ki Maha Bachat
-2 din Ki Maha Loot
-Dhan-teras Dhamaal
-Great Savings
-Vishal Mega Mart Gift Voucher Rs. 1000.
-25% Off On All Items Every Month
-Discount Offers At Various Festive occasions
-Grand Winter Sale 50% & 60% discount for 2 days
-Paise Bachao Aandolan 9 Din Ki Maha Loot

-Vishal Reward Plus: Consumers can make purchases at any store and accumulate
points at a central level. These points are redeemable at any of our stores.
-Cross category promotions are now catching up where discounts are being offered on
grocery purchases, redeemable against purchase of apparel and household products

People
Vishal Retail has been established by Mr. Ram Chandra Agarwal, a first generation
entrepreneur. He has been
instrumental in expanding the business from an apparel store in Kolkata to 82 value
retail stores with pan- India
presence. The management team has a pool of talented professionals with right mix of
working experience.
Professionals are one of the key assets for any organization. The salient features of
staff of VMM are: -Monthly, weekly & daily sales targets are communicated to the staff & efforts are made
to consistently achieve the set
targets.
-Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so
staff is empowered to take
innovative steps.
-Multiple counters for payment, staff at store to keep baggage and security guards at
every gate, makes for a
customer-friendly atmosphere.
-VMM motivates & retains store staff & maintains a positive work environment.
39

-Well-dressed staff improves the overall appearance of

store. -Strong Recruitment Cell, 2,509 employees
joined in 2009. -8500 employee Strength.
Due to intense competition, the requirement of skilled manpower is increasing. At the
same time, the availability of
skilled manpower is declining and attrition rates are increasing throughout the industry.
We foresee an increase in the
employee cost going forward (Figure 7) due to companys efforts to attract and retain
the employees. Although
employee cost is increasing; still the companys motive is to retain the valuable
employees in the company

Process
VMM adopted the business model as shown in (Figure-9) to run their activities
smoothly. This process includes four steps as follows:
Manufacturing Capacity; Strong Logistics; Products; Retailing
The goods' dispatch and purchasing area has certain salient features which
include: - -Multiple counters with trolleys to carry the items purchased.
-Proper display / posters of the place like (Kids Wear, Grocery, and
Stationary etc.). -Home delivery counters to be started soon.
-Three Layer Security Checks.
-No. of Parallel Billing Counter
-Retail Exchange Software Solution
PRIL -Integrated With SAP & ERP
Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current
system and available facilities.
-Infrastructure Stand Alone Commercial
Building -Clean, Air-conditioned outlet
-Equipment computer, BCR, Desk etc State of Art
Management Organization Structure

40

Year---- Milestone
4
1

2001-- Incorporated as Vishal Retail Private Limited acquired the proprietorship firm
Vishal Garments & the Vishal Garments opened first store outside Kolkata.
2002-- Opened first Store in Delhi
2003 --Acquired Vishal Apparels, a manufacturing unit. Set up a manufacturing unit in
Gurgaon. 2004--Started thier largest store of at Mathura Road, New Delhi having an
area of 80,000 square feet nominated for the Images Retail Awards 2004
2006--Thier Company was converted into a public limited company 103 implementation
of production and retail module of SAP Broadband connectivity with each and every
location Increased thier presence to an aggregate of 17 States.
2007-- Increase in number of stores to 50 spread across in 18 States

42

Data Collection
And
Analysis

SWOT ANALYSIS
4
3

Strength:

4
4

1- High Brand Equity in evolving retails markets

2- State-of-art infrastructure of Big Bazaar outlets
3- POP to increase the purchase
4- One stop shop for variety of products, increasing customer time and available choices
Weakness :
1- Unable to meet store opening target so far
2- Falling revenue per square feet
Opportunity :
1- Organized retail is just 4.15%of total pie of Indian retail market
2- Evolving Customer preferences in recent years.
Threat :
1- Competitors, global big players planning to foray into market
2- Government policies are not well-defined in India
3- Unorganized retail market of India

1. How do you know about Vishal MegaMart?

45

T.V.

Hoardings

Newspaper

Friends

Net

T.V
70

Hoardings
40

10%

Newspaper
50

10%

25%

Friends
20

35%
20%

Net
20

T,V
Hordings
Newspaper
Friends
Net

2. How often you visit to Vishal MegaMart?

Within a week

Within 2 week

Within a month

Above 1 month
4

Within a week
70

Within 2 week
40

27.
17.5%

35%
20%

Within a month
35

Above 1 month
55

Within a week
Within 2 week
Within a month
Above 1 month

3. What excites you most for shopping at Vishal Mega Mart?

Discount

Buy one get one free

Cash back

Free gift

Discount
76

Buy one get one free Cash back

62
38

Free gift
24
47

Discount

12%
19%

Buy one get one free

Cash back

38%

31%

Free gift

4. What do you usually buy from Vishal Mega Mart?

FMCG products
Apparels

Child care & Toys

Electronic goods

All products

48

FMCG
products
45

Child
toys
20

care & Appareals

60

Electronic
goods
20

All product
55

35
30
25
20

IN %

15
10
5
0
FMCG

Child care

Appareals Electronic All

product

products

& toys

goods

5. Are you satisfied with the quality of the products offered by Vishal Mega
Mart? Yes No
Its ok
49

Yes
114

No
48

Its ok
38

60
50
40
30

Data In %

20
10
0
Yes

No

Its ok

6. How is your shopping experience at Vishal Mega Mart?

Very Satisfactory
Average

Satisfactory

Unsatisfactory

Poor
5
0

Very
satisfactory
40

Satisfactory

Average

Unsatisfactory

Poor

50

72

22

16

60
50
40
30

Data in %

20
10
0
Very

Satisfactory

Average

Unsatisfactory

Poor

Satisfactory

7. Do you want to changes in Vishal Mega-Mart?

Yes

No
51

Yes
96

No
104

52%

9. What changes you want?

Better services
Better products

52

Better packaging
Home delivery

48%

Yes
NO

45

25

60

70

35
30
25
20
15

Data in %

10
5
0 Better

Better

Better

service packaging product

Home
delivery

10. According to you which promotional activity is

effective?
Road show

Campaign

Sampling

Premiums

Any other
5
3

Road show
40

Campaign
76

Sampling
30

Premiums
24

Any other
30

40
35
30
25
20
Data in %

15
10
5
0

Road Campaign SamplingPremiumsAny other

show

11. What you think about sales promotion strategy of company?

Best

Good
54

Average

Not good

\
Best
46

Good
56

Average
78

Not good
20

40
35
30
25
20

Data in %

15
10
5
0
Best

Good

Average

Not good

12. Does sales promotion strategies beneficial for sales?

Yes No
5
5

Yes
146

No
54

27%
Yes

73%

No

13. At what percent sales promotion strategy is useful for increasing sales
5
6

Up to 10%

20-30%

30-40%

More than 40%

Up to 10%

20-30%

30-40%

75

58

40

More than 40%

27

5
7

Findings

Findings

1. The choice of a store location has a profound effect on the entire business life of a retail
58

operation. A bad choice may all but guarantee failure, a good choice, and success.

2. Choosing a retail location is, at best, a risky undertaking. Considering the

consequences of choosing a location that proves to be unsuitable, it pays to get
as much assistance as possible. According to a survey more than 60% of the
customer prefers to shop in a retail store which is easily accessible to them.
3. Advertising plays a very important role in achieving growth for any retail company.
This is evident from the fact that Advertising by Retail Industry registered a rise of 12
percent during January - May 2007 over January - May 2006.

4. The right location, trained manpower, software assistance, product with a distinct
differentiation, a strong value proposition, efficient supply chain management - these are
the factors that influence the success of a retail outlet. With competition in this segment
increasing, differentiation and a strong value proposition assume significance. Retail
chains are realizing that they cannot be another me-too store. The differentiation today
among the 5-6 retail chains has come through private labels, which in some cases
account for as much as 70 per cent of the total merchandise in the outlet.

5. Variety offered by any retail store is of very much important to attract all type of customers in
the stores. A large variety of products caters to each segment of customers.

6. Shopping experience within a store also has a great impact on selecting a

product from a particular retail store. Overall ambience includes infrastructure
facilities provided by the store such as air conditioners, lighting etc.
7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to any
company's success: Companys image, the product and services company sells and
consumer behavior. The Importance of Pricing their Products' will give them an insight
into developing appropriate costing methods and the impact of getting it wrong in today's
competitive creative market. This topic should be of interest to anyone who is unsure if
they are getting it right. Remember the difference between over or under-pricing their
work can mean a very short future for any business. Approximately 60% customers think
that Price is the most important factor while they go for shopping in a retail stores

8. Quality in everyday life and business, engineering and manufacturing has a pragmatic
interpretation as the non-inferiority, superiority or usefulness of something. This is the
most common interpretation of the term. The quality of a product or service refers to the
59

perception of the degree to which the product or service meets the customer's
expectations. Quality has no specific meaning unless related to a specific function
and/or object. Quality is a perceptual, conditional and somewhat subjective attribute.
And in addition to that, more than 90% of customers place quality as the most
important factor than anything else in the list to shop in a retail store.

9. More than 70% of customers place variety as an important factor to shop in a

particular retail store.
10. Brands name bears an important role while shopping of any type of goods. So
building a brand for a retail store is important as 80% of customer still prefer to
buy branded clothes in the retail store instead of local or unbranded clothes.

60

Conclusion
&
Suggestions

Conclusion
Given the developments and prospects, the Indian retail sector is in its nascent stage of evolution.
While there are obstacles, there are clear opportunities in modern retailing in India. There are
61

many lessons that India can take from other countries, which have moved along the
path of retail evolution. The retail sector has proved to be of immense significant from
macro-economic point of view. The sectors capability to give strong growth momentum
by creating multiplier effects on other sectors is not in dispute. It is now necessary to
cautiously expand and develop the sector, as the government, at present, has done by
permitting partial FDI in the sector. Given the scope, the retail sector is certainly
expected to fetch the long-term economic benefits for the country.
The convenience and personalized service offered by the unorganized sector holds its
future in good stead for the future. Organized retail of late has seen a tremendous boom
and is attracting more people to the malls.
What is to be seen is how organized retail can duplicate the same level of personalized
customer service levels offered by the unorganized sector to have a higher conversion ratio.
The target audience for both the organized and unorganized retail formats remains
relatively the same. When shopping in malls, people value the experience related to the trip
the most and return most frequently for the same. Besides, while enjoying the experience
they seem to buy high ticket and items of conspicuous consumption most frequently.

Gaining and maintaining consumer preference is a battle that is never really won.
Continued and consistent branding initiatives that reinforce the consumers purchase
decision will, over time, land the product in consumer preference sets. Attaining and
sustaining preference is an important step on the road to gaining brand loyalty

Suggestions
1. Include more trained sales person to help customers in the store while shopping.
2. Improve quality of the products especially clothes.
3. Play good songs or soothing music in the store rather than cheap filmy songs.
62

4. Customer care service can be introduced

5. More branded products can be displayed in the store as people still prefer
branded clothes than offered by local vendors.
6. Constant reminder of discounts through pamphlets, speakers inside the store for
inducing consumers for impulse buying.
7. Add more cosmetic products as its having a huge market of consumers attached to it.
8. Display of product should be improved so that the product is easily visible to the
consumers.
9. Proper advertisement in press and outdoor to make Vishal Mega Mart should be
visible in the eyes of consumers.
10. Should have parking spaces in front of every store.
11. Hire more salesgirls as in ladies section its very difficult for both the consumers
and salesman to interact with each other.
12. Regular training to sales person to improve there overall performance.
13. Customization of clothing should be given an important consideration.
14. Proper packaging and provide contrast labelling in displays of product.
15. Should apply electronic supply chain management for better inventory management.
16. Proper power back up as air conditioners are not working to their full capacity at
many stores.
17. Proper placements of Gondola in the stores as space between them are very less.
18. Proper display in the gondola and top most rack of the gondola should be used
for storing of inventory rather than display of product.
19. Should provide more festival schemes and at proper time.
20. Should use psychological pricing-more discounts by increasing the price
21. Proper display of cutlery items
22. Clothes should be in sync with fashion.

Bibliography
Books referred:
63

Retailing Management
Pradhan, Swapna

Retail Management A Strategic Approach

Berman, Barry & Evans, Joel R.

The Art Of Retailing

Websites:
www.google.com
www.wikipedia.com
www.vishalmegamart.com

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