Download - Big bazzar
Project report on retail industry.
On
Comparative analysis of
Submitted to: Submitted by:
Miss Rama Mam Guddan Rani
CONTENTS
Executive Summary
Overviews of industry
Retail meaning
Industry structure
Company profile
Objective of study
Area under field research
Facts under study in different formats
Some international and Indian retailers
Research methodology
Conclusions
Questionnaires
Suggestions
Limitations
Bibliography
EXECUTIVE SUMMARY
India is a undergoing a retail revolution from the
unorganized to the organized sector. There are now modern
retail formate such as – hypermarket, supermarket and malls.
several international companies such as Wal-Mart, Carrefour and
Tesco are planning their entry and establishment into the Indian
market while several domestic companies are setting up their
retail setups, exclusive showrooms and large formate stores such
as Reliance, Vishal, Tata and the whole concept of shopping has
altered in terms of formate and consumer buying behavior,
ushering in a revolution in shopping in India.
These trends indicate that retailing, as an industry has come
into its own. According to a study by confederation of Indian
industry organized retail sales in India were a mere Rs.135 billion
in 2012 but today with over 15 million outlets that provide
employment to over 74 million people (7%of the population) the
size of the retail industry stands at USD 350 billion and it is
expected to grow a compounded 30% over the next 5 years.
Retailing is an important infrastructure perquisite for
modernizing India and can facilitate rapid economic growth .
Modernization of all retail services would enable efficient
delivery of goods and value added services to the consumer
making a high contribution to the gross domestic product.
This project focus on taking an in depth analysis of retail
scenario and consumer trends as they are emerging and identify
the various retailing models that would work, in the Indian retail
market. The analysis is done by looking at global retail trends vis-
à-vis the ones in India . The Current state of Indian retail industry
characteristics and economics drivers of change, to understand
the consumer buying behavior and what it fore tails about the
nature of the industry . To predict the kind of retail models that
would work in India besides analyzing the existing ones , the
attempt has been to predict to product potentially promising
formats.
Introduction
Retail consists of the sale of goods or merchandise from a fixed
location, such as a department store, boutique or kiosk, or by
mail, in small or individual lots for direct consumption by the
purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In
commerce, a "retailer" buys goods or products in large quantities
from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores. Retailers
are at the end of the supply chain. Manufacturing marketers see
the process of retailing as a necessary part of their overall
distribution strategy. The term "retailer" is also applied where a
service provider services the needs of a large number of
individuals, such as a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or
no houses or in a shopping mall. Shopping streets may be for
pedestrians only.
Sometimes a shopping street has a partial or full roof to protect
customers from precipitation. Online retailing, a type of electronic
commerce used for business-to-consumer (B2C) transactions and
mail order, are forms of non-shop retailing.
Shopping generally refers to the act of buying products.
Sometimes this is done to obtain necessities such as food and
clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just
looking, not buying) and browsing and does not always result in a
purchase.
RETAIL MEANING Retail involves the sale of goods from a single point (malls,
markets, department stores etc) directly to the consumer in
small quantities for his end use. In a layman‘s language,
retailing is nothing but transaction of goods between the seller
and the end user as a single unit (piece) or in small quantities to
satisfy the needs of the individual and for his direct consumption.
Example- Prashant wanted to purchase a mobile handset. He
went to the nearby store and purchased one for himself.
In the above case, Prashant is the buyer who went to a fixed
location (in this case the nearby store). He purchased a mobile
handset (Quantity - One) to be used by him. An example of retail.
The retailers purchase goods in bulk quantities (huge numbers)
to be sold to the end-users either directly from the manufacturers
or through a wholesaler.
ManufacturersWholesalerRetailer
Customer/End consumer
Manufacturers –
Manufacturers are the ones who are involved in production of
goods with the help of machines, labours and raw materials.
Wholesaler -
The wholesaler is the one who purchases the goods from the
manufacturers and sells to the retailers in large numbers but at a
lower price. A wholesaler never sells goods directly to the end
users.
Retailer –
A retailer comes at the end of the supply chain who sells the
products in small quantities to the end users as per their
requirement and need.
The end user goes to the retailer to buy the goods (products) in
small quantities
INDUSTRY STRUCTURE The organizational structure of a retail store will vary by the size
and type of the business. Most tasks involved with operating a
retail business will be the same. However, small or independent
retail stores may combine many sectors together under one
division, while larger stores create various divisions for each
particular function along with many layers of management.
For example, the small specialty shop may have all of its
employees under one category called Store Operations. A large
department store may have a complete staff consisting of a
manager, assistant manager and sales associates for its Sporting
Goods department, Home and Garden, Bed and Bath, and each
additional department.
In order to define the store's organization, start by specifying all
tasks that need to be performed. Then divide those
responsibilities among various individuals or channels. Group
and classify each task into a job with a title and description. The
final step is to develop an organizational chart.
Retailing Structure
The following is a brief outline of some of the divisions in a retail
organization.
Owner/CEO or President
Store Operations: Management, Cashier, Sales, Receiving, Loss
Prevention
Marketing: Visual Displays, Public Relations,
Promotions Merchandising: Planning, Buying, Inventory Control
Human Relations: Personnel, Training
Finance: Accounting, Credit
Technology: Information Technology
As the store grows and the retail business evolves, the dynamics
of the organization's structure will change too. Therefore it is
paramount to redesign the store's organizational chart to support
the decision-making, collaboration and leadership capabilities
that are essential during and after a growth period.
COMPANY PROFILE
Introduction of Vishal Retail ltd
Vishal retail Ltd is the largest market retail chain in India with
more than 175 stores in 24 states & 104 cities across India.
Retailing, in commerce, consists of buying goods or products in
large quantities from manufacturers or importers, either directly
or through a wholesaler, & then selling individual items or small
quantities to the general public or end user customers, usually in
a shop, also called stores. Retailers are at the end of supply chain
that link manufacturers, wholesalers, other suppliers and the
final consumers. Marketers see retailing as a part of their overall
distribution strategy. Manufactured goods are worthless until
they pass through acid test of retail distribution .
The Vishal brand is known for great modern style for men,
women and children. Vishal offers high level fashion styling. Since
1986, our name has been synonymous with quality, value and
fashion integrity. We offer an unparalleled collection of clothes
for the entire family. Each garment is hand selected for quality
and contemporary styling. Vishal manufactures majority of its
own garments and out sources some under its direct quality
supervision. This enables us to offer the lowest possible and most
reasonable price.
Vishal Mega Mart stores offer affordable family fashion at prices
to suit every pocket.
The outlet retails Garments, Footwear, Home Furnishing,
Household, Food & Non-Food Products, Ladies Accessories,
Lifestyle, Hardware, Car Accessories, Techno &
Electricals,Utensils, Sports & Fitness, Stationery, Toys & Games,
Travel Accessories, Furniture, Sanitary Ware, Crockery,
Consumer Durables, FMCG, etc. in almost all price ranges.
What started as a humble one store enterprise in 1986 in Kolkata
(erstwhile, Calcutta) is today a conglomerate encompassing 183
showrooms in 24 states / 110 cities .India‘s first hyper-market
has also been opened for the Indian consumer by Vishal. Situated
in the national capital Delhi this store boasts of the single largest
collection of goods and commodities sold under one roof in India.
Vishal is one of fastest growing retailing groups in India. Its
outlets cater to almost all price ranges. The showrooms have over
70,000 products range which fulfills all your household needs,
and can be catered to under one roof. It is covering about 29, 90,
146 ssq. ft. in 24 states across India. Each store gives you
international quality goods and prices hard to match. The cost
benefits that is derived from the large central purchase of goods
and services is passed on to the consumer.
Vishal mart has been fortunate in having very eminent and honest
men of vision and great talent as Board of Directors and
Executives. The ever increasing profit figures of the Vishal depict
the efficiency of the management. Discount and several other
developments in and around the organized retail trade (the 3% of
the total retail trade) indicate the changing dynamics of the sector
and the way the business will take shape in the years to come. For
Ram Chandra Agarwal, MD, Vishal Mega mart, the discount war is
just a component of the overall evolution process initiated by
retailers. ―We are concentrating on buying in volumes through
cash purchase which give us an edge. Ultimately, the convenience,
value and variety given to customers will make a difference, he‖
says. Be it managing a supply chain, grappling with hundreds of
suppliers or handling store inventory — the modern retail
industry is a big affair.
Then follow other aspects like positioning of the brand with apt
pricing, packaging and retail experience, understanding the
customers, dealing with partners such as suppliers, mall
developers and franchisees. However, the biggest challenge is
saving bucks either through margins or rentals, so that there is
profit even after the discounts. Though it reads as a complete
win-win situation, it is surely a tough target to be achieved.
―Though organized retail is at its nascent stage, once the brands
are established, the FMCGs will have to deliver to their
expectations. Moreover, if these FMCGs buckle up with retailers,
the country will see a slew of private labels coming in, says‖
Sahni. He adds ―These private labels will gradually end up
carving a niche for themselves even in the unexplored territories,
including rural India.
Minimal advertising or promotional costs will further increase
the margins. The Retailer‘s Association of India (RAI), an‖
association of retailers like Pantaloons, Piramyd, Shoppers‘ Stop,
Subhiksha Trading, Food World Supermarkets, Hyper city Retail,
Reliance Petro Marketing, etc, has now asked all Indian FMCG
companies to follow a July 1 deadline for bar-coding their
products. At present about 25% of Indian companies do not carry
barcodes on their products. Industry experts insist that bar-
coding is just one of the upgrades that Indian FMCG companies
need to do to cater to the demands of an organized retail
scenario.
Products available a Vishal mega mart:
Apparel and Accessories for Men, Women and Children,
Sarees, Linens,
Baby Accessories,
Cosmetics,
Crockery,
Dress Materials Suiting & Shirting,
Electrical Accessories, Electronics,
Footwear,
Toys, Home Textiles, Home Needs, Home Decor,
Household Appliances, Household Plastics, Utensils &
Utilities
FUNCTIONAL DEPARTMENTS OF
VISHAL RETAIL LTD
The store operations are divided into various operations which
are carried out by the respective functional departments.
ADMINISTRATION DEPARTMENT
Admin department is divided into following sections:
1. Security services: The security personnel are under contract
basis. They are security staff working for vishal Retail India Ltd.
The complete store security and movement tracking are under
their control.
2. House Keeping: Their main duty is to look after the cleanliness
and overall hygiene of the store. The admin manager creates
checklists for the cleaning schedules and the team members work
in accordance to those checklists. Checklists include cleaning the
floor, lifts, escalators, staircase, window panes, various shelves
and display racks, AC ducts, Glass walls, trolleys, baskets, parking
areas etc.
3. Packers: Proper packing of the sold goods is required before
handing it over to the customer. Helpers to the cashiers are
appointed to do this job. Packing the food items, items to be
handled with care and other items all separately is their job.
4. Loaders: Few people are appointed to load and unload
merchandise from trucks and cautiously transfer them to the
desired location in the store.
5. Standard operation and procedures: In this section various registers
are maintained
A] Key movement register- The various store keys are
maintained by different staff members. These people have
to make entries in their register regarding the keys they
carry.
B] Staff Value declaration register- Every staff member while
entering the store has to declare the amount of cash with
him/her. This is done to minimize thefts within the store.
C] Customer Footfall Report: This register is updated every
hour. The total number of customers that entered the
store in that hour are counted and noted down in this
register.
D] Staff Purchase Register- Entries are made in this register
regarding the purchases made by the staff members in
the stor
6] Staff Grooming Register- Entries regarding the appearance,
personal hygiene, presenting self and dress code of the team
members is made. A long checklist regarding staff grooming is
referred to make these entries.
MAINTENANCE AND FACILITIES DEPARTMENT
The functions of this department are
1) To check the functioning of various items like Escalators, AC‘s,
Frozen section, Lighting equipment‘s etc. In case of their
malfunctioning, repairs have to be carried out as soon as possible
to ensure proper store operation.
2) To check and note the opening and closing electricity meter
readings and prepare a monthly statement.
3) Ensure safe and consistent power supply at the store.
7) I.T. DEPARTMENT
The software used on Retail Enterprise Manager(REM). In this all
the information concerning the product like, name, category
barcode number, MRP, discount rate, net price etc are stored. Day
opening and day closing are the important activities in REM,
where REM will allow the users to start transactions for the day
and freeze all document transactions made for the day
respectively. All the incremental stock balances will be loaded
into REM at the day opening activity. The sales and collection data
will be posted to the staging server for the Sap at the day closing
activity.
DEPARTMENT STORES
Vishal mart operates in a four floored building and the 2 floors
are divided into various sections called Department Stores.
The various department stores are:
1. Food Store
2. Wellness,
3. Customer Service Desk,
4. Plastics - Utensils - Crockery Department,
5. General Merchandise,
6. Mobile Store
7. Apparels,
8. New Business Development,
9. Electronic Store
10.Furniture Store .
CUSTOMER SERVICE DESK(CSD)
Customer service means meeting or exceeding the customer‘s
expectations and needs. Customer Service is not a one time
activity, it should reflect in each and every activity. Be it the
facilities, layout of the store, communication and interaction or
the company policies, all affect the customer service.
CSD has been formed to take care of customer needs and
problems. CSD also provides various services like
1. Alterations with respect to apparels
2. Exchanges of merchandise
3. Gift wrappings
4. Baggage counters for safe deposit of customer baggage.
5. Share with us - Customer feed back
6. In-store communication- transferring telephone calls
7. Free gifts
8. Sale of gift vouchers
9. Home delivery for food Store
10. Home delivery for electronics and furniture
PRODUCT CLASSIFICATIONS
Products and services fall into two broad classes based on the
type of customers that use them:
1. Consumer products
2. Industrial products
1. Consumer products:
Consumer products are products and services bought by final
consumers for personal consumption: Marketers usually classify
these products and services further based on how consumers go
about buying them. Consumer products include convenience
products, shopping products, specialty products, and unsought
products. These products differ in the ways consumers buy them
and therefore in how they are marketed.
a) Convenience Products : are consumer products and services that
the customer usually buys frequently, immediately, and with a
minimum of comparison and buying effort. Examples include
soap, candy, newspapers, and fast food. Convenience products
are usually low priced, and marketers place them in many
locations to make them readily available when customers need
them.
b) Shopping Products: are less-frequently-purchased consumer
products and services that customers compare carefully on
suitability, quality, price, and style. When buying shopping
products and services consumers spend much time and effort
in gathering information and making comparisons, Examples
include furniture, clothing, used cars, major appliances, and
hotel and airline services, shopping products marketers
usually distribute their products through fewer outlets but
provide deeper sales support to help customers in their
comparison efforts.
c) Specialty Products: are consumer products and services with
unique characteristics or brand identification for which a
significant group of buyers is willing to make a special
purchase effort, Example include specific brands and types of
cars, high priced photographic equipment, designer clothes,
and services of medical or legal specialists. A Lamborghini
automobile, for example, is a specialty product because buyers
are usually willing to travel great distances to buy one.
2. Industrial Products:
Industrial products are those purchased for further processing or
for use in conducting a business. Thus, the distinction between a
consumer product and an industrial product is based on the
purpose for which the product is bought. If the same consumer
buys the same lawn mower for use in a landscaping business, the
lawn mower is an industrial product.
The three groups of industrial products and services include
Materials and parts,
Capital items, and
Supplies and services,
Material consist of farm products (wheat, cotton, livestock, fruits,
vegetable) etc., and natural products (fish, lumber, crude
petroleum, iron ore). Manufactured materials and parts consist of
component materials (iron, yarn, cement, wires) and component
parts small motors, tires, castings.
Marketing strategies for various
products:
1. Convenience Products:
Price: convenience products are usually low priced goods.
Distribution/Place: the distribution is widespread and the
products are made to be available easily. Convenient locations are
also very essential.
Promotion: the promotion activities are usually mass promotion
by the producer.
Examples: toothpaste, magazines.
2. Shopping Products:
Price: shopping products are usually high priced goods.
Distribution/Place: the distribution is selective and there are
fewer outlets.
Promotion: the promotion activities are usually advertising and
personal selling by both producer and resellers.
Examples: televisions, furniture.
3. Specialty Products:
Price: specialty products are usually high priced goods.
Distribution/Place: the distribution is exclusive and there are
fewer outlets per market area.
Promotion: the promotion activities are more carefully targeted
these activities are carried on by both producer and resellers.
Examples: Rolex watches, fine crystal.
CONSUMER BEHAVIOUR TOWARDS VARIOUS
PRODUCTS
1. Convenience Products:
These products are frequently purchased by the consumer as
they are required for daily use. There is very little planning
involved and there are very little comparisons between similar or
subsidiary products. The shopping efforts are also very low and
the customer does not involve himself while shopping.
2. Shopping Products:
These products are purchased less frequently as they are usually
durables. There is a lot of planning involved while shopping and
shopping efforts are also high. There is a lot of comparison
between brands, price, quality, style etc. and the consumer may
postpone the purchase to get a better product.
3. Specialty Products:
These products have strong brand preference and brand loyalty.
There are special shopping efforts made by the customer to get
these products. There is low comparison of brands and there is
low price sensitivity.
DEPARTMENT STORES
Vishal mega mart operates in a building and they are divided into
various sections called Department Stores. The various
department stores are: .
1. Food Mart
2. Plastics - Unsils - Crockery Department,
3. Mobile Mart
4. Apparel
5. Electronic Mart
6. Furniture Mart
BIG BAZAAR
Key Facts
Year of Launch: - 2001
No of Stores: -214
No of Cities with presence: - 90
A total retail space covered:- 16 million sq.ft.
Core Value Model: - Customer Connectivityexperimenting with
products and servicesSavingsLowest Price
Focus of Marketing Initiatives: - Engage the customers by
adapting to local cultureFocus on the lowest price guarantee in all
the campaigns
Key Driver of Footfall:- Large Product Mix
Growth rate:- 19%-22%
For the last 12 years Big Bazaar is the brand associated with
value for money and convenience. Launched in the year 2001,
Brand Big Bazaar wanted to bring affordability, variety and
hygiene within the reach of the common man. The big Bazaar
growth story is an ideal example of the expansion of the
hypermarket format in the Indian subcontinent.
Today, Big Bazaar provides a platform for over 15,000 small,
medium and large producers and manufacturers to sell their
products to Indian consumers.
In a more recent move Future Group merged its largest business
unit, Future Value Retail, which houses Big Bazaar and Food
Bazaar, with Pantaloons Retail, a listed company that runs the
group‘s smaller retail operations. This move is expected to reduce
operating costs and restore investor confidence
(www.economictimes.indiatimes.com).
But what remains same is the target audience of the brand ―the
value seeking middle class man, with ―Kanjoosi as his shopping‖
ethos .‖
Price is the main value proposition for Big Bazaar. Prices are
usually 5 to 60 percent lower than the market price.
The Average Size of Big Bazaar store is 50,000 sqft and the Big
Bazaar family center is 80,000-120,000 sq. ft.
Stocks 3,000 to 4,000 SKUs (stock-keeping units) of merchandise
Food and groceries account for 40% of Big Bazaar‘s revenue,
whereas fashion and apparel make up for about 30% of the
overall revenue. The remaining 30% comes from the other units
such as electronics.
MARKETING STRATEGY
3-C Theory
According to Kishore Biryani‘s 3-C theory, Change and
Confidence among the entire population is leading to rise in
Consumption, through better employment and income which in
turn is creating value to the agricultural products across the
country.[3] Big Bazaar has divided India into three segments:
India one: Consuming class which includes upper middle and
lower middle class (14% of India's population).
India two: Serving class which includes people like drivers,
household helps, office peons, liftmen, washer men, etc. (55% of
India's population) and
India three: Struggling class (remaining 31% of India's
population).
Schemes and innovations
WEDNESDAY BAZAAR:
The concept of Wednesday Bazaar was promoted as
‗HafteKaSabseSasta Din‘ (Cheapest Day of the Week). Initiated in
January 2007, the idea behind this scheme was to draw
customers to stores on Wednesdays, the day when consumer
presence is usually less. According to the chain, the aim of the
concept was ‗to give homemakers the power to save the most‘.
MAHABACHAT:
The concept of ‗MahaBachat‘ (Mega Saving) was introduced in
the year 2006 as a single day campaign with attractive
promotional offers across the company outlets. Over the years,
the concept has grown to become a six-day biannual campaign.
During this campaign, attractive offers are given in all the value
formats including Big Bazaar, Food Bazaar, Electronic Bazaar and
Furniture Bazaar.
THE GREAT EXCHANGE OFFER:
Introduced on February 12, 2009, ‗The Great Exchange Offer‘
allows customers to exchange their old goods for Big Bazaar
coupons. The coupons can be redeemed later for buying brand
new goods from Big Bazaar outlets across the nation.
Advertising campaigns and marketing initiatives
After completing ten years of operation in India Big Bazaar India
revamped its logo and appeal with a new brand campaign ―Naye
India Ka Bazaar”
The inspiration for the new ad campaign comes from an ancient
Jain custom of ‗Michchami Dukkadam‘, which translates into
colloquial language as ‗Bhool-chook maaf‘ or ‗Please forgive me if
I have offended you knowingly or inadvertently.
. In view of the increasing competition in the retail market, Big
Bazaar has introduced certain steps to keep itself updated and
continue promoting the brand.
On the occasion of successful completion of 10 years in the
Indian retail industry (in 2011) Big Bazaar came up with a new
logo for the company with a new tag line that says: ‗Naye India Ka
Bazaar‘ (Market for New India). This replaces the earlier tag line:
‗IsseSastaAurKahinNahin‘ (Nothing is Cheaper than Here).
ADVERTISING INITIATIVES
Big Bazaar has recently launched a 360-degree promotion drive
covering the three prime media, television, print and social
media, to mark the launch of the new logo. The entire media
campaign was developed by Mudra Communications.
The band also roped in Cricket Player M. S. Dhoni and Sin as their
Brand Ambassadors in year 2009
Big Bazaar is portrayed as a value store and visual
merchandising is purposely not done according to International
standards. Stores are designed to accommodate heavy crowds
and has organized kind of ―Chaos and ―Chaotic‖
Layout Storefocusses on using attractive drop down banners and‖
price synagogues.
Another concepts used in Big Bazaar stores are ―Bin Baskets‖
install near the cash counters where any kind of product can be
placed be it cosmetics of mobiles. These Bin Baskets accounts for
nearly 1%-2% of average store sales .
Best store campaigning has also moved focus to Furniture and
electronic items. Television stars SakshiTanwar and Ram Kapoor
were ropped in to promote Big Bazaar Stylish Home contest in
2013
. BIG BAZAAR – HOME CONTEST
Big Bazar claims to improve focus on customer experience and
make stores more friendly for senior citizens, pregnant women
and mothers. Stores across the country will also be rolling out
signature community initiatives like ‗Annasantharpane‘ and
‗Protsahan‘
Big Bazaar store study
Different levels of the store :
Level 1:
Departments with their Products:
a) Depot:
1) General books
2) Office stationary
3) Children stationary
4) Film VCD‘s & DVD
b) NBD (New Business Development) :
1) Watches
2) Fashion Jewelry
3) Sunglasses
4) Auto accessories
5) Car audio systems
c) Gold Bazaar:
Navaras Gold Jewelry (This is the separate unit not related to Big Bazaar
they share profits on percentage basis)
d) Mobile Bazaar:
1) All kinds of Handsets ranging from Rs 1000 to !8000 of different
companies
2) Mobile accessories
3) Codeless phones & land line phones
e) Star Sitara:
1) Cosmetics
2) Fragrances
3) Herbals
f) Shringar:
1) Bangles
2) Jewelry sets
3) Bracelets
4) Hair Accessories
5) Bidies
6) Chins Plastics, Utensils, Crockery (PUC)
g) Plastics:
1) Buckets
2) Casseroles
3) Containers
4) Boxes
5) Flasks
6) Bowls
7) Jugs & sippers
8) Bottles & Mugs
h) Utensils:
1) Plates, Bowls, Glasses
2) Non stick Cookware‘s
3) Kitchen tools
4) Tiffin Boxes
5) i) Crockery
1) Crockery cutlery
2) Table Materials / Napkins
3) Casseroles
4) Dinner sets
5) Wine, Juice Glasses
j) Luggage:
1) Travel bags
2) Trolleys
3) Bags: Schools, Collage Ladies purse
4) Suitcase
Level 2
a) Ladies Department:(SKD)
1) Sarees
2) Dress materials
3) Under garments
4) Nightwear‘s
5) Western wear‘
b) Men’s Department:
1) Formals (Shirts & Pants)
2) Casuals (Shirts & pants)
3) Party wears
4) Jeans T-Shirts
5) Others Accessories (Lungi Dhoti etc)
6) Fabrics (Cut pieces)
7) Suits & Blazers
8) Levi‘s Signature garments
Level 3
a) Furniture Department:
1) Dining Table
2) Bedroom Accessories
3) Hall accessories (Sofa sets, Chairs, Computer table etc)
4) Mattresses
b) Footwear Bazaar :
1) Sports Shoes
2) Formal Shoes
3) Casual Shoes
4) Mens Sandals
5) ladies Sandals
6) Ladies Casuals
7) Ladies Chappel
8) Ladies fancy Sleepers
9) ladies Sports shoes
c) Home Décor:
1) Flower vase
2) Artificial Flowers
3) Religious gifts
4) Candle stand
5) Umbrellas
6) Photo Frames
7) Assorted color Stones
8) Frame Paintings
9) Water falls (artificial)
10) Birthday items
d) Home line:
1) bed sheets, Pillows , bed spreads
2) Towels, Yellow dust
3) Razai , Carpets, Cushion covers
4) Chair bags
e) Toys Dept:
1) Soft toys
2) Educational toys
3) Board games, Action figures
4) Dolls Kids department
f) Boys section:
1) T-Shirts, Trousers, jeans
2) Cotton shirts, Cargo, Codraw
3) Ethic wears
4) Co ordinates
5) Rain cotes
g)Girls Section:
1) Ethic wears
2) Co- ordinates
3) Cotton frocks
4) Western wears
h) Infants:
1) Jhablas
2) Vests
3) Bibs feedings
4) Bed items
5) Baba suits
6) Frocks
Level 4
a) Beverages:
1) Soft drinks
2) Mineral water
3) Juices
4) Health drinks
5) Frozen items
b) Confectionaries:
All kinds of Chocolates & Confectionaries
c) Fruits & Vegetables:
d) Staples Dept:
1) Dal, Rice, Atta, Rava items
2) Oil‘s, Masala items
3) Dry fruits
4) Spicy items
5) Ready meals
6) Breakfast cereal
e) Process Dept:
1) Health drinks
2) Ready to eat
3) Corn flaks, Chips
4) Instant mixes
5) Soups, Bread items, pickle
6) Spreads Non-food Dept
f) Home care:
1) Phenyl, Detergents .
2) Dish wash, Tissue papers, Scratch
3) Shoe cases, Fresh wrap,
g) Personal care:
1) Soaps, tooth paste, Shampoo
2) Deodorants, Body spry
3) Baby food, Talcum powder
4) Men‘s apparel Level
5 Electronic Bazaar:
1) Televisions
2) Sound System
3) Refrigerators
4) Washing machines
5) Microwav
6) Rice cookers
7) Juicers
Organization Structure of the store
Departmental Managers:
There are 2 departments and 8 assistant department managers in
this store like Electronic dept., Depot dept., NBD dept., Mobile
Bazaar Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men‘s Dept,
Furniture Dept, Footwear Dept, and Home Décor Dept. Each
department will be assigned with targets which has to be
achieved within the assigned period that may be of Daily, Weekly,
monthly and yearly.
Each department has a department Manager & Assist DM. Their
job is concerned mainly with sales. They look after customer‘s
orders delivery post sale service if any etc . All Dept managers
ADM, Team members work under coordination & cooperation.
Administration:
Store administration comes under Store Manager its functions are
store maintenance, House Keeping, Security etc.
Information Technology:
This department is responsible for the maintenance of the
systems of the stores. All billing machines their functioning
networking with the master machine etc. If there is any problem
with the machine then this department comes into function.
Cashing Dept:
This department is responsible for the collection of sales amount
ie cash sales, Credit sales, etc under this department all billing
machines of the stores comes. The sales amount collected
throughout the day by the cashier‘s has to be submitted to this
department.
Marketing Executive:
This dept is responsible for the marketing of the store in different
different media like Television, Newspaper, and Holdings etc. the
authorized person has to visit different companies and has to look
after for tie-ups etc. Visual Merchandise: This department is
responsible for the product arrangement at the store with respect
to their nature. The basic function of this dept is it divides the
store into some departments based on the nature of the product
and within the department it decides how the products should be
arranged by keeping in mind the customer should not suffer.
HR Executive:
Human Resource executive mainly look after employees mainly
their problems. This department performs the functions like
Recruitment, Selection, Training and development.
CSD (Customer Service Desk):
This is the separate unit, which is mainly focuses on customer
service like if the customer find difficulty in finding any product,
Customer complaints any replacement, Customer assistance etc.
Cities where stores are located :
Agra ,Ahmedabad ,Allahabad ,Ambala,Asansol, Bangalore,
Bhubaneswar, Chennai, Coimbatore, Palakkad, Kolkata, Delhi,
Durgapur, Ghaziabad, Gurgaon, Hyderabad, Indore, Hubli,
Lucknow, Kanpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat,
Pune, Rajkot, Surat, Thane, Thiruvananthapuram,Udupi,
Vishakhapatnam
OBJECTIVES OF STUDY
To know about the retail industry.
To know the awareness of the customers towards Vishal
mega mart and Big bazaar.
To know whether the customers are satisfied with present
service given by the Vishal mega mart and Big bazaar.
Factors considering while purchasing retail products.
To know the effectiveness of the promotional activities done
by Vishal mega mart and Big bazaar.
To know the strategy to make a customer retention.
Area Under Field Research
We have taken VISHAL MEGA MART and BIG BAZAAR for
research. Former is located in modinarar and later is located in
kaushambhi.
Both are present in Delhi-NCR regions but both are belongs from
different area.Modinagar is a small city with less population and
there is dense population in kaushambhi with metro connectivity.
So the service area of both is different from each other.
Factor under study in different format:
Store layout and division:-
Both VISHAL MEGA MART and BIG BAZAAR follow Z-line in their
stores.
Z-Line= z-line Designs has developed a retail gallery program in
an effort to leverage the company's relationship with
―Maximum magazine. Description of the gallery; Price range of‖
items to be featured in the gallery; Agreement by two major retail
chains to install the gallery in their stores.
Vishal mega mart layout
First floor:
Big Bazaar layouts:-
First floor:-
INDIAN RETAILERS
1. Reliance Retail Limited:
Corporate office – Mumbai, Maharashtra | Establishment – 2006 |
Business –Retail | Website – www.ril.com |
Reliance retail limited was incorporated in 2006, a part of
Reliance industries. The company has been rated among the best
retail companies in India. It offers complete retail solutions such
as food items, lifestyle, fashion, consumer electronics products,
home decorative products etc. The company has a total of 1500
outlets in the country.
2. Pantaloons Retail Limited:
Corporate office – Mumbai, Maharashtra | Establishment – 1997 |
Business – Retail | Website – www.pantaloonsfashion.com |
It is a flagship company of Future group and one of the leading
retail company in India. The company has more than 1000 outlets
across the India and 35000 employees. Company‘s brands include
Big Bazaar, food Bazaar Brand factory, Top 10 and Sitara.
3.Provogue India Ltd:
Corporate office – Mumbai, Maharashtra | Establishment – 1997 |
Business – Retail and Manufacturing | Website –
www.provogue.com |
It is a lifestyle and fashion company which was established in
1997. The company‘s offering include men‘s wear, women‘s wear,
fashion accessories, apparel and numerous other products. It has
over 250 stores all across the country and rated among the top
most trusted brands in India by trust research committee in year
2011.
4. Shoppers Stop:
Corporate office – Mumbai, Maharashtra | Establishment – 1991 |
Business – Retail | Website – www.shoppersstop.com |
Shoppers Stop is a well-known name in retail industry in India
and ranked among the top retail brands in India. The company is
operated and managed by K Rhea Corp Group and was
incorporated in year 1991. It has total 61 stores in India and
offers national and international brands of apparel, fashion and
lifestyle.
5.ITC –LRBD:
Corporate office – Kolkata, West Bengal | Establishment – 1910 |
Business – Retail | Website – www.itcportal.com |
Lifestyle Retailing Business division is a premier clothing retail
company in India branding through Wills Lifestyle and John
players. The Company has a diversified range of business
activities in FMCG, Hotels, Paper board, Packaging and
Agriculture.
6 | Trent Ltd.:
Corporate office – Mumbai, Maharashtra | Establishment – 1998 |
Business – Retail | Website – www.mywestside.com |
It is a fully owned Tata group company which was incorporated
in 1998 operates under brand name of Westside, Star Bazaar,
Fashion yatra and Landmark. The company offers Men‘s &
women‘s footwear, cosmetics and fashion accessories
7. Vishal mega mart:
Corporate office – Delhi | Establishment – 1986(Kolkata)
Business – Manufacturing and Retail
8. Aditya Birla Retail:
Corporate office –Mumbai, Maharashtra | Establishment – 2006 |
Business – | Website – www.adityabirla.com |
Aditya Birla retail limited is a subsidiary of Aditya Birla group
established in year 2006 which owns over 500 supermarkets and
15 hypermarkets. The company is rated as top 10 retail
companies in India and received prestigious Master brand Award
2012 by World Brand congress in retail brand category.
9.Titan Industries:
Corporate office – Bengaluru, India | Establishment – 1984|
Business – Jewellery and Watch retail| Website – titan.co.in |
Titan is joint venture between Tata group and the Tamil Nadu
Industries development corporation established in year 1984.
Titan is dominating the Indian Watch Industry since then and
become global international brand. Titan also has a great retail
presence in jewellery business and its brand Tanishq is one
amongst the top jewellery brand in India.
0. Kewel Kiran Clothing Limited:
Corporate office – Mumbai, Maharashtra | Establishment – 1971 |
Business – Clothing Retail | Website – www.kewalkiran.com |
Kewel Kiran is a clothing manufacturing and retail company
which was established in 1971. The company‘s major brands
include killer, Lawman PG3, Integriti and Killer. It has more than
100 stores in India and it is a well known name in retail industry
in India.
INTERNATIONAL RETAILERS
1. Wal-Mart Stores, Inc. (U.S.)
Walmart is an American multinational retail corporation that
runs chains of large discount department stores and warehouse
stores. The company is the world's second largest public
corporation, according to the Fortune Global 500 list in 2013, the
biggest private employer in the world with over two million
employees, and is the largest retailer in the world. Walmart
remains a family-owned business, as the company is controlled
by the Walton family, who own over 50 percent of Walmart. It is
also one of the world's most valuable companies. The company
was founded by Sam Walton in 1962, incorporated on October 31,
1969, and publicly traded on the New York Stock Exchange in
1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is
also the largest grocery retailer in the United States. In 2009, it
2. Carrefour S.A ( France)
Carrefour S.A. is a French multinational retailer headquartered in
Boulogne Billancourt, France, in Greater Paris. It is one of the
largest hypermarket chains in the world (with 1,452
hypermarkets at the end of 2011), the second largest retail group
in the world in terms of revenue (after Wal-Mart), and the third in
profit (after Wal-Mart and Tesco[3][4]). Carrefour operates
mainly in Europe, Argentina, Brazil, China, Dominican Republic,
United Arab Emirates, Qatar and Saudi Arabia, but also has shops
in North Africa and other parts of Asia, with most stores being of
smaller size than hypermarket or even supermarket. Carrefour
means "crossroads" and "public square" in French.
3. Tesco PLC( U.K.)
Merchandise retailer headquartered in Cheshunt, Hertfordshire,
England, United Kingdom. It is the second-largest retailer in the
world measured by profits (after Wal-Mart) and third-largest
retailer in the world measured by revenues (after Walmart and
Carrefour). It has stores in 14 countries across Asia, Europe and
North America and is the grocery market leader in the UK (where
it has a market share of around 30%), Malaysia, the Republic of
Ireland and Thailand. The company was founded in 1919 by Jack
Cohen as a group of market stalls. The Tesco name first appeared
in 1924, after Cohen purchased a shipment of tea from T. E.
Stockwell and combined those initials with the first two letters of
his surname, and the first Tesco store opened in 1929 in Burnt
Oak, Middlesex. His business expanded rapidly, and by 1939 he
had over 100 Tesco stores across the country. Originally a UK-
focused grocery retailer,
4. Metro AG(Germany)
Metro Group, is a German global diversified retail and
wholesale/cash and carry group based in Düsseldorf. It has the
largest market share in its home market, and is one of the most
globalised retail and wholesale corporations.[citation needed] It
is the fifth-largest retailer in the world measured by revenues
(after Wal-Mart, Carrefour, Tesco and Kroger). It was established
in 1964 by Otto Beisheim.
5.The Kroger Co.( U.S.)
Kroger Company is an American retailer founded by Bernard
Kroger in 1883 in Cincinnati, Ohio. It is the country's largest
supermarket chain, second-largest U.S. general retailer by
revenue, fifth-largest retailer in the world, according to Deloitte,
and twenty-third largest Fortune 500 company in the world. As of
February 2013, Kroger operates, either directly or through its
subsidiaries, 2,424 stores. Kroger's headquarters are in
downtown Cincinnati.It maintains markets in 31 states, with
store formats that include supermarkets, superstores,
department stores, convenience stores, and mall jewelry stores.
6.Costco Wholesale Corporation(U.S)
it is the seventh largest retailer in the world and the largest
membership warehouse club chain in the United States. Costco is
headquartered in Issaquah, Washington, United States and was
founded in 1976 in San Diego, CA with its first warehouse in
Seattle. Founded by James (Jim) Sinegal and Jeffrey H.
Brotman,Costco opened its first warehouse in Seattle,
Washington, on September 15, 1983.
7. Schwarz UnternehmensTreuhand KG (Germany)
LidlStiftung& Co. KG is a German global discount supermarket
chain, based in Neckarsulm, Baden-Württemberg, Germany, that
operates over 10,000 stores across Europe. It belongs to the
holding company Schwarz Gruppe, which also owns the store
chains Handelshof and hypermarket Kaufland. Lidl is the chief
competitor of the similar German discount chain Aldi. The
company was founded in the 1930s by a member of the Schwarz
family, and was called Schwarz
LebensmittelSortimentsgroßhandlung (Schwarz Assorted
Wholesale Foods). Lidl has since its opening in 1973 established
itself in over 20 countries throughout Europe. The name Lidl is
the surname of a former business partner of Josef Schwarz's,
Ludwig Lidl, a retired schoolteacher, and Josef's son Dieter
Schwarz bought.
8. AldiEinkauf GmbH & Co. oHG (Germany)
ALDI Einkauf GmbH &Companies, oHG, doing business as about
this sound Aldi (help info) (German pronunciation: [aldi ], shortː
for Albrecht Discount), is a global discount supermarket chain
based in Germany. The chain is made of two separate groups, Aldi
Nord (North, which operates as AldiMarkt), headquartered in
Essen—and ALDI Süd (South, which operates as ALDI Süd),
headquartered in Mülheiman der Ruhr.The two operate
independently, each within specific areas. The individual groups
were originally owned and managed by brothers Karl Albrecht
and Theo Albrecht. Karl Albrecht retains ownership of AldiSüd,
and with a personal wealth of €17.2 billion, is the richest man in
Germany, while the co-owners of ALDI Nord, Berthold and Theo
Albrecht Jr., follow close behind at €16 billion. Dieter Schwarz,
owner of Lidl and Kaufland came in third, with a fortune of €11.5
billion.
9. Walgreen Co.( U.S.)
The Walgreen is the largest drug retailing chain in the United States.
As of December 11, 2013, the company operated 8,582 stores in all
50 states, the District of Columbia, Puerto Rico, and Guam. It was
founded in Chicago, Illinois, in 1901. Walgreens headquarters are in
the Chicago suburb of Deerfield, Illinois.
RESEARCH METHODOLOGY
Details of Research:
Method used: survey method
Type of survey: Interview
Instrument used: Questionnaire
Sample size: 20
Data used: Both primary and secondary
Defining the research problem:
A researcher must find the problem and formulate it so that it
becomes susceptible to research. Like a medical doctor, a
researcher must examine all the symptoms (observed by him)
concerning a problem before he can diagnose correctly.
And therefore, I have also defined the research problem i.e.
consumer satisfaction, structure of store division, consumer
behavior etc.
Research methodology
Research methodology is the way to systematically solve the
research problem . it may be understood as a science of studying
to how research is done scientifically .In it we study the various
step that are generally adopted by a researcher in studying his
research problem along with the logic behind them .
In research methodology we not only talk of the research
methods but also consider the logic behind the methods we use in
the content of our research study and explain why we are using a
particular method and why we are not using others so that
research results are capable of being evaluated either by the
researcher himself or by others.
Secondary data are those which have been collected by someone
else and which have already been passed through the stastical
process. There are several ways by which secondary data can be
classified.
Research approach:
The research approach for the purpose is secondary research to
collect the information.
Research Instruments:
I used direct observation data & survey as research instrument.
Survey Method:
The survey is a non-experimental, descriptive research method.
Survey is used extensively in library and information science to
asses‘ attitude and characteristics of a wide range of subjects,
from the quality of user-system interfaces to library user reading
habit.
In a survey, researcher samples a population.
Types of survey:
Survey can be classified into two broad categories:-
1. Questionnaire: -
It is usually paper and pencil instruments that the respondent
completes.
2. Interview:-
It is completed by the interviewer based on the respondent says.
Sometimes, it is hard to tell difference between a questionnaire
and an interview. For instance, some people think that
Questionnaires always ask short closed ended questions while
interviews always ask broad open ended ones. But you see
Questionnaires with open ended questions (although they do
tend to be shorter then in interviews) and there will often be a
series of closed ended questions asked in an interview
Research design
In this project use expletory research design and for data
collection fill-up the questioner from the customer satisfaction,
survey of the retail market and some information collect by
interview of the customer as well as staff of VISHAL MEGAMART
and BIG BAZAAR.
Sampling:
I used random sampling because from a finite population refers
to that method of sample selection which gives each of possible
sample of combination an equal probability of being picked up
and each item in the entire population to have an equal chance of
being included in the sample.
Sample design:
A sample design is a definite plan for obtaining a sample from a
given population sample design may as well lay down the number
of items to be to be included in the sample is the size of sample,
(I) Types of universe
The first step in developing any sample design is to clearly define
the set of objects, technically called the universe to be studied.
The universe is infinite as the number of customer is unlimited.
(ii) Sampling unit:
A decision has to be taken concerning a sampling unit before
selecting sample. Sampling unit may be a geographical one such
as state, district, village, etc., or a construction unit such as house,
flat, etc., or it may be a social unit such as family, club, school, etc.,
or it may be an individual. The researcher will have to decide one
or more of such units that he has to select for his study.
(iii) Size of the samples
As the universe is infinite so the number of consumer will be
limited. Hence sample size is of 20 consumers belong to various
level of society.
Data collection:
Data is the key activity of marketing research. The design of the
data collecting method is backbone of research design. Data
constitute the foundation of statistical analysis and
interpretation. Hence the first step in statistical work is to obtain
data.
Data is detained from two important sources, namely:
1. Primary data
2. Secondary data
Primary Data:
Primary data are gathered from the specific purpose or for a
specific research project, consists of original information for the
fulfillment of original objective.
When the data are required for the particular study can be found
neither in the internal record of the enterprise nor in published
source, in some cases may it become necessary to collect original
data.
Primary data can be collected in four ways:
1. Observation
2. Focus
3. Survey.
4. Experiment
Secondary Data:
Secondary data are the data, which already exists somewhere.
Secondary data provide starting point of research and after that
the advantage of low cost and ready availability.
Secondary data can be divided into two types:
1. Internal Data
2. External Data
when researcher use the data that has already been collected by
other data is collected is called Secondary Data. Secondary data
can be obtained from journals i.e. internal sources report.
Government publications and books, professional bodies etc.
Internal data are reports and memos generated within an
organization to facilitate its operations. External data are those
specially produce for outside consumption.
Sources from which I have taken the secondary data are as
under:
1. Direct observation
2. VISHAL and BIG BAZAAR website
3. C.R KOTHARI
4. Survey and customer data &report as well as staff of the store =
CONCLUSION
After completing this research we come to know that BIG
BAZAAR is ahead of VISHALMEGAMART because of its
prime location and higher product range.
Advertising, consumer satisfaction is an important factor of
getting sales promotion.
Both have conversed a large number of Indian retail
markets and have equal opportunities to spread its
business in Indian market in upcoming times.
After viewing the company‘s advertisement a significant
proportion (40%) think of buying the company‘s product.
QUESTIONNAIRES
1 How often do you visit the store?
a. Once in a week
b. Twice in a week.
c. Once in a month
d. twice in month
e. Once in a year.
Result : from the survey it is concluded that maximum visit of
respondent are twice in a month.
Q2.Are you satisfied with the customer service offered?
a. Good
b. Average
c. To an extent
d. Need to be improved.
Result: From the survey it is conducted that maximum number of
respondent are assuming that the customer service offered here
is average .
Q3. Main reason for coming to the store?
a. Value of money
b. Discount
c. Product range offered
d. Saving of time
Result :From the survey it is conducted that maximum number of
respondents are coming to the store because it is near to their
home
Q4. Distance covered while coming to store?
a. 0-5 kms.
b. 5-10 kms.
c. 10-15 kms.
d. More than 15 kms.
Result : As per responses about 90 respondents stay 0-5 kms.
From the store
Q5. What medium of advertisement do you respond to?
a. Magazine
b. TV (local channel )
c. Local news paper
d. Radio
e. Relative /friends
f. Visuals
Result : From the survey it is conducted that maximum number
of respondents knows about the store through local newspaper.
6.How much ratting will you give to this store?
a. Average
b. Very good
c. Excellent
d. Can‘t say
Result :As per responses about 23% respondents said that its
rating is excellent
Q7.Which section of the store does you like the most?
a.Food mart.
b.Home ware.
c.House hold.
d Kids.
e. Jewel mart
Result : As per responses about 8 respondents like the house hold
Q8.Where did you purchase before coming to this outlet
a. Local Karana‘s shop
b. food world
c. Nilgiris
d . Hyper Markets, specify
e) Any other
Q9.What is the amount of expenditure you spend in this store
each time?
a.Less than Rs. 1000
b. Rs. 1000 – Rs. 2000
c. Rs. 2000 – Rs. 3000
d. Rs. 3000 – Rs 4000
e. Rs. 4000 – Rs 5000
f. Rs. 5000 – Rs 6000
g. more than Rs. 6000.
LIMITATION
I will have to really upon the information get from secondary
sources and given by respondents, which may not be fully true.
This study will be limited to only area of Modinagar and
Kaushambi (Delhi-NCR) It is only for short period of time. The
sample size is only 20 so the sample may not be truly
representative of Modinagar population
SUGGESTION
Company need to spend a lot on advertising and promotion to
create brand image of its product. Make frequent advertisement
in both print and electronic media. Making stalls in corporate
melas like trade fair, may be beneficial to create brand image of
its product. Need to provide additional offer and discount as per
customer requirements. Need to include varieties of similar item.
Provide more discount on FMCG products. Provide better
customer service . Maintain proper display to create impulse .(it
is assume that near about 70%of sales comes from impulse
marketing and if proper display is not maintained impulse can
not be created). Better if we provide filtered information about
VISHAL.
BIBLIOGRAPHY
Books: 1.Kotler and Lane Keller (2012), Marketing management,
United states, Pearson education
2. Kothari (2004) ,Research methodology, New Delhi , Bangalore ,
Chennai , cochin , Guwahati , Hyderabad , Jalandhar , Kolkata ,
Lucknow , Mumbai ,& Ranchi , New Age International(p) Ltd
3. Dr.HarjitSingh (2009), Retail management, S. Chand& company
ltd ONLINE RESOURCE
1.https://plus.google.com/112112887113928597005/about?
gl=in&hl=en
2.http://economictimes.indiatimes.com/vishal-retail-ltd/stocks/
companyid-15509.cms
3. http://info.shine.com/company/Vishal-Retail-Ltd/1794.aspx
4. http://info.shine.com/company/Vishal-Retail-Ltd/1794.aspx
5. http://en.wikipedia.org/wiki/Big_Bazaar
