Research Project Report On

“Comparative Study of Vishal Megamart at“Comparative Study of Vishal Megamart at

Lucknow and its Competitors”Lucknow and its Competitors”

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

UTTAR PRADESH TECHNICAL UNIVERSITY, LUCKNOW

ACADEMIC YEAR 2008-2010

Under Guidance of: Submitted By:

Ms. Purnima Bhalla Sheetal

Professor Roll No. 0814370041

IMSEC Ghaziabad

Table of Contents

PART I

Executive summary

Introduction to Retail Industry

Company’s Profile

Overview

Products offered by the company

SWOT Analysis

Visual Merchandising

PART II

Objectives of the study

Research methodology

Reseach Design

Questionnaire Analysis

Suggetions

Limitations

Bibliography

INTRODUCTION TO

RETAIL INDUSTRY

.

Introduction of Indian Retail Industries:

Retail is India’s largest industry, accounting for over 10 per cent

of the country’s 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 final consumers. 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. 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 four Group, Sears, K-Mart,

McDonalds, etc. have now replaced the individual small stores.

Large retail formats, with high quality ambiance and courteous.

Retailing is the interface between the producer and the 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 producer’s 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

compromises

making 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, 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 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 entered the workforce and

consumers became more demanding in their expectation of

quality and service.

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 markets

are 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. The success of a couple of hyper mart’s

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.

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 there were traditional family owned retail

chains in South India such as Nilgiri’s 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 pace of 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 stores to 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 kirana stores. On an average a supermarket stocks

up to 5000 SKU’s against few hundreds stocked at an average

kirana stores.

In the organized retail industry, the gestation periods are long,

institutional funding 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 retail chains, 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; 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 most existing 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 least each 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.

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

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, Raymond’s, S Kumar’s, 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 Family’s 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 .Purchasing power 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 to recognize 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:

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 to transition 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 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.

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 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, Mini Metros 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 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

Shopping

Malls

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.

Department

al Stores

20,000-

50,000

Single Vertical.

Apparel

Stores

20,000-

25,000

Multi-branded single

verticals, focusing on

high-end customers.

Specialty

format

2,000-5,000 Multi-branded, single

vertical on specific

needs of customers.

Exclusive

formats

500-5,000 Owned/Franchised

single product.

COMPANY PROFILE

Introduction of Vishal Retail Ltd.:

Vishal Retail Ltd , a leading player in the Indian retail

industry, is a pioneer in 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. India’s

first hyper-market has also been opened for the Indian

consumer by Vishal. Situated in the national capital Delhi

this store boasts of the 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 group’s prime focus is on retailing. The Vishal stores

offer affordable family fashion at prices to suit every pocket.

The group’s philosophy is integration and towards this end

has initiated backward integration in the field of high fashion

by setting up a state of the art manufacturing facility to

support its retail endeavors.

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 and services are passed on to the

consumer.

The Founders

Mr. Ramchandra Agarwal Mrs. Uma Agarwal

Mr. Surendra Agarwal

Investment Rational:

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 company’s 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 company’s 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 company’s 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 company’s second store in Surat

spreading across an area of 38,000 Sq. Ft (Approx).

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.

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 the

lowest 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

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 in

dealing 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 our

perspectives and snapshots of organized retailing, as it would exit in 2010.

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

Major Competitors of Vishal Megamart

in Lucknow City:

1. BIG-BAZAR

Type 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 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 etailing 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.

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 your

family. 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 -- that’s 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

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 Club brings to you an opportunity to save in bulk

as 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 Club will 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 a

retailer looking for wholesale offers then the Big Bazaar Wholesale Club is

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.

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 to

be 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 buying

decisions

2-FUTURE BAZAAR :

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

subsidiary of Pantaloon Retail (India) Limited.

As part of India’s 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

of products 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 crores

Pantaloon 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

Manufacturer’s warranties on all products

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

applicable products carry the original manufacturer’s 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 work

with 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 India’s

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

contact us in person, if required.

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.

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

company’s continuing expansion plans aim to help Shoppers’ Stop meet the

challenges of the retail industry in an even better manner than it does today.

Vision & Values Of Shoppers’ Stop

Vision

To 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 fair

Milestones-

Year & Events:

1991 Launched first Shoppers’ Stop store selling men’s wear at Andheri

(Mumbai)

1992 Ladies apparel section added Children and non - apparel accessories

sections 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 Shopper’s 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 India’s only member to the Intercontinental

Group 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 India’s 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

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 men’s outerwear for India exclusively.

Three stores launched taking the total number of stores to 13 (Mulund,

Mumbai, Gurgaon and Kolkata)

2004 Fourteenth, fifteenth and sixteenth stores launched in February 2004

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

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

Received Superbrand status for 2003 and 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 of

Rs.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

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

Crossword’s existing franchisees.

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

49,000 sq. ft. on a single floor with displays of bedrooms, living rooms, 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 Shopper’s Stop Limited has forays into airport retailing through a joint

venture with The Nuance Group AG of Switzerland, which is the world’s

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.

Shopper’s 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.

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 two

Executive 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 Listing

Agreement 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 SHOPPER’S STOP

Men’s:

Austin Reed Van Heusen Arrow Louis Philippe Indigo Nation Scullers Zodiac Excallibur Allen Solly Black Berry’s Shapes Easies Park Avenue VF Stop Satya paul Givo Theme Giovani Life Fried Water Mufti Tuscan Verve Weekender Tantra Spykar

Women's:

Aliza Donatein Expozay Black Berry’s Allen Solly Free Look Wills Sport Weekender Union Bay One Indian Earth Life Tangle Upper Class Vibe Kraus Biba Ishvarah Indifeel Urban Trio Affairs Rang Kashish Haute Curry Sanna Raviver Rocky S Jeans Triumph Enamor Vanity 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

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.

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 and heavy 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.

Home Decor Luggage.

Linens.

Sarees.

Stationery.

Products Offered by Vishal Megamart:

HOME FURNISHING:

Drawing Room BedroomDoor Mat Bed Sheet Carpet PillowsCurtains Pillow Cover Kitchen BathroomApron Bath Mats Kitchen Napkin Towel Gift Sets

FOOD MART :

FOOD & BEVERAGES

SPORTS & FITNESS:

INDOOR GAMES

OUTDOOR GAMES

Basket Ball Cricket Bat T.T. Bat FootballBoxing Kit Lawn Tennis Swimming Costumes

Tennis Racket

Water Ball Tennis Ball Fitness Equip.

FOOTWEAR:

BOYS GIRLSShoes SlippersSandals SandalsLADIES MENSShoes ShoesSlippers Slippers

TELEMART:

Communication Mobile Accessories Mobile Mobile Batteries

Mobile Charger Mobile Dori

MENS:

Upper LowerShirt 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 LowerKurta Pants Jeans Skirt Top CapriEthnic Winter Wear Nighty JacketsLancha Stawl

Sharara Blazer

Salwar Suit Track Suit

INFANTS:

Garments AccessoriesHot Pant Bed Sheet

Frock Under Garments

Baba Suit SocksWinter Wear SweaterPull Over

WOMEN:

Sarees Personal Items Fancy(SRF) Cap(LCA)Synthetics Socks(Las)BanarsiJewellery CosmeticsNecklace LIp Gloss Ring Nail Polish

KIDS BOYS :

Lower Sets Winter Wear Jeans Night Suit SuitBermudas Baba Suit BlazerDungries JacketUpper EthnicShirt Formal Kurta- Pyjama T-Shirt Sherwani

KIDS GIRLS :

Lower SetsHot Pant Night Suit Skirt Capri Set DungriesUpper EthnicTops(GWT ShararaFrock(GFK) Lancha

TRAVEL ACCESSORIES :

Luggages Portfolio Bags Suitcase Shoulder Bags Pouch & Cases Executive Bag Waist Pouch School BagsVanity Cases

HOUSEHOLD :

Acrylic Ware Copper SteelDinner Set mug Cake Server

Home Aids Pressure Cooker

Non Stick

Floor Wiper Cooker Handi Sanitary Brush Pressure Pan Dosa Tawa General Plastic Goods

Electrical App.

Bone China

Coffee Mug Chopper Soup Set

BucketMicrowave

Oven Dessert Set

Glass Ware Thermo Ware PorcelainCup Tiffin Cup & SaucerLemon Set Container

LIFESTYLE :

Time Zone OpticalsGifts &

NoveltiesLadies Wrist Watch

Ladies Sun Glass

Flower Vase

Mens Wrist Watch

Mens Sun Glass Key Chain

Mens Accessories

Electric & Electronics Items

Perfume/Deo

Belts Battery (ABT) Spray Wallets Calculator Deo

TOYS & GAMES :

Soft Toys DollsCycles &

ScootersMusical Toys Barbie Doll CyclesNon-Musical Other Dolls ScootersBoard Games Infant

Toys Video Games

Wooden Blocks

TeetherT.V. Video

Game

Puzzles SwingHand Video

Game

 STATIONARY :

School Office Paper Mart Exam Board Office File Diary

ClayPunching

Machine File

Party Stuff    BalloonsRibbons

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.

WEAKNESSES:

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

Need to incorporate many new features as per customer requirement.

Lack of proper extraction of work from staff.

Need to include more varieties of the same item.

Need to provide more offers/ discounts on FMCG. Here the perception of the people is quite low, because from my consumer behavior survey I have found out that most of respondents think that Vishal Mega Mart is not providing good offers/discounts on FMCG in comparison of Big bazaar.

Need to improve store layout according to customer facility.

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

OPPORTUNITIES:

No other big competitor in that area.

To increase the customer satisfaction by providing different variety of products.

Z-line (Manufacturing unit of Vishal) if we create the brand image of it. It will get additional sales in the future.

Coming era is of knowledge and information if we sell our manufacturing unit product through internet so we can create its brand image + additional sales in future.

There is a boom of retail in future according to current scenario. If Vishal creates brand image of its Z-line product, so it can give direct competition to the other branded products in future.

THREATS:

Big bazaar, Spencer, Reliance and Globus are the main competitors.

Overseas group entering the market.

Increased competition in the domestic market.

STRENGTHS OF COMPETITORS:

The Big Bazaar is situated at the Saharaganj mall , Lucknow. It has welled design store of 70,000sqft and well organized store.

The Spencer is situated at Nishalganj and different other public locations.

It segments all age groups and income groups.

Additional space for the display.

Competitors provide good salary to the staff.

Large number of staff working in the competitors’ organization.

It gets credit from MNC’s for the extended period of time.

Regular advertising in newspaper, radio, and TV for reminding the customers about its stock.

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

RESEARCH

METHODOLOGY

Research Methodology:

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 by

the researcher himself or by others.

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

which have already been passed through the 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 cannot

be 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, researchers sample a

population. Basha and Harter (1980) state that "a population 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 a sample (i.e. a small proportion) of the population

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. A

whole 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 asking

for 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

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 instrument and 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. In

the 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.

First of all you'll learn about the two major types 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.

Details Of Research:

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 .

Data collection methods

The Quantitative data collection methods, rely on random sampling and

structured data collection instruments that fit diverse experiences into

predetermined 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 data

gathering 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.

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 shopper’s stop

QUESTIONNAIRE ANALYSIS

QUESTIONNAIRE ANALYSIS:

Q1. How often do you visit the store?

a. Once in a week.

b. Twice in a week.

c. Once in a month.

d. Twice in a month.

e. Once in a year.

Result: From the survey it is concluded that maximum visit of respondents are twice in a month.

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

a. Food mart.b. Home ware.c. Household.d. Medimart.e. Kids.f. Jewel mart.

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

Q3- Are you satisfied with the customer service offered?

a. Good.b. Average.c. To an extent.d. Need to be improved.

Result: From the survey it is concluded that maximum number of respondents are assuming that the customer service offered here is average.

Q4- Main reason for coming to the store?

1. Value for money.

2. Discounts.

3. Product range offered.

4. Nearby.

5. Saving of time.

6. Other.

Result: From the survey it is concluded that maximum number of respondents are coming to the store because it is near to their home.

Q5- Distance covered while coming to the store?

a. 0-5 kms.

b. 5-10 kms.

c. 10-15 kms.

d. More than 15 kms.

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

Q7- Preferred timing of coming to the store?a. 10:00-11:59 a.m.

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

c. After 6:00p.m.

130

50

20

Evening after6:00p.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.

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. Making stalls in corporate melas like trade fair can help.

88%

12% YES

NO

Question No.9-

Apart from Vishal where do you shop for daily items?

a. Big bazaar.

b. Globus.

c. Shopper’s Stop.

d. Subiksha.

e. Local markets.

f. Other.

Result: As per responses about 120 respondents preferred local markets apart from Vishal.

Q10- What medium of advertisement do you respond to?

a. Magazine.b. T.V (local cable channel).c. Local newspaper.d. Radio.e. Relatives/ Friends.f. Visuals.g. Other.

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

respondents knows about Vishal through local newspaper.

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.

Result: As per responses about 75 respondents preferred discounts on F.M.C.G.

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

a. Average.

b. Very Good

c. Excellent

d. Can’t Say

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

SUGGESTIONS:

Company need to spend a lot on advertising and promotion to create brand image of its product.

Make frequent advertisements in both print and electronic media.

Making stalls in corporate melas like trade fair, maybe beneficial to create brand image of its product.

Need to provide additional offers and discounts as per customer requirements.

Need to include varieties of similar item.

Provide more discounts on FMCG.

Provide better customer service.

Maintained proper display to create impulse. (It is assumed that near about 70% sales comes from impulse marketing and if proper display is not maintained impulse cannot be created).

Better if we provide filtered information about Vishal.

C onclusion:

After completing this research we come to know that Only Big Bazaar is

ahead of Vishal Stop because of its prime Location and higher product

range. Shoppers’ Stop is new in Lucknow as compared to Vishal Megamart

and it is slowly covering its market. But there are few areas where these

malls needs amendments and these suggestions are mentioned in these

malls. Advertising is an important factor of getting sales promotion and

Vishal Megamart is ahead of Shoppers’ Stop in that case, but Product

Quality of Shoppers’ Stop is better than Big Bazaar. Product Range of

Shoppers’ Stop is better than that of Big Bazaar.

Overall Vishal Megamart is ahead of Stopers’ Stop and Globus Retail, but just little behind to Big-Bazaar.

LIMITATIONS OF THE STUDY:

Sometime respondents are not taking interest in such

type of surveys therefore there is chance that they might

be giving wrong information.

The respondents are free from all barriers so he/she can

give his/her opinion which may not be true in many

occasions.

The staff of the Vishal only provides/ communicates the

merits of its products.