vishal mega mart 1 pdf

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Vishal Mega Mart

PROJECT REPORT ON

CUSTOMER

SATISFACTIONAT

PUNJAB NATIONAL BANKSubmitted to Punjab Technica Uni!e"#it$ in %a"tia

&u&iment o& the "e'ui"ement &o" the a(a"d o&

BAC)ELOR OF BUSINESS A*MINISTRATION

SUBMITTED TO:-SUBMITTED BY :-

P"o&+*I,AKAR JOS)I Mu#h-oo" Ah+ Bhat

.) +O +* IN MANA/EMENT0B+B+A1 2#t SEM

ROLL NO314256778624

ST. Solidier Management andTechnical Institute

JalandharPunjab.


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INDEX

Acknowledgement 3

Executive Summary 4

Objective ! "imitation #

$etail%Introduction &

'om(any Overview )*+$,"- buine )3

Domain Area

.inancial /anagement )4

/arketing /anagement 0)

O(eration /anagement 01

/2I' 3&

uman $eource 4)

E%commerce 4&

$oad aead #*

.inding o5 te tudy #)

'oncluion 6S7'7$8 #3

9ibliogra(y ##

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ACKN!"#$%#M#NT!ords o&ten &ail to e'(ress one)s inner &eelings o& gratitude and indebtedness to

one)s bene&actors* but then it is onl+ the readil+ a,ailable medium through -hich the

undersigned can e'(ress his sincere thans to all those -ho are associated -ith the

-or in one -a+ or the other. Nothing concrete can be achie,ed -ithout an o(timal

combination o& ins(iration and (ers(iration. No -or can be accom(lished -ithout

taing the guidance o& the e'(erts. It is onl+ the criti/ues &rom ingenious intellectuals

that hel(ed trans&orm a (roduct into a /ualit+ (roduct.

Project -or is ne,er the -or o& an indi,idual. It is more o& a combination o& use*

suggestions and contributions and -or in,ol,ing man+ indi,iduals. This (roject

also bears the im(act o& man+ (eo(le. 0irst and &oremost I -ould lie to grate&ull+

acno-ledge and e'(ress m+ sincere gratitude to-ards11111111111* m+ &acult+

guide -ho al-a+s hel(ed and (ro,ided guidance during the course o& m+ (roject.

I -ould lie to e'tend m+ earnest thans &or her assistance in the course o& m+

(roject. The learning during the (roject -as immense in,aluable.

I shall be &ailing in m+ duties i& I do not e'(ress m+ gratitude to other &acult+

members and dear &riends &or their use&ul hel( at ,arious stages o& this (roject.

99999999999

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=J#CTIV#S89>. To stud+ the di&&erent so&t-are or Technologies used b+ Vishal 6etail.

2. To stud+ the &inancial health o& the organi:ation in the current scenario and

itsstoc.

3. To stud+ the selection and recruitment (rocess o& the em(lo+ees and also

toanal+sis the training and de,elo(ment method o& the com(an+.


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Vishal Mega Mart

,IS)AL RETAIL P,T+ LT*+ )ISTORB@ in Kolata Ferst-hile*

CalcuttaG is toda+ a conglomerate encom(assing around >B3 sho-rooms in >>

cities 2< states. India)s &irst h+(er9maret has also been o(ened &or the Indian

consumer b+ Vishal. Situated in the national ca(ital $elhi this store boasts o& the

singe largest collection o& goods and commodities sold under one roo& in India.

V6P" -as incor(orated on Jul+ 23* 2> under the Com(anies Act* >?@ as Vishal

6etail Pri,ate "imited. V6P" -as con,erted to a (ublic limited com(an+ on 0ebruar+ 2*

2@. At the time o& incor(oration* the registered o&&ice o& V6P" -as situated at . Subse/uentl+ V6P")s registered o&&ice -as shi&ted to

? and on 0ebruar+ >< 2


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going concern -ith e&&ect &rom March 3>* 23. V6P" -ent into bac-ard

integration b+ ac/uiring a manu&acturing unit &or read+made garments.

*ETAILS OF *IRECTORS31

M"+ Ram Chand"a A=a"(a* H. ;e started the business

under the name o& LVishal %arment -ith a small store at * "al =a:aar Street*

Kolata. Mr. Agar-al has made e&&orts &or the de,elo(ment o& the ,alue retailing

industr+ in India and is -ell no-n &or his business acumen.

M"#+ Uma A=a"(a* 33 +ears* is an e'ecuti,e $irector o& V6P". She holds a

bachelor)sdegree in arts. Mrs. Agar-al has more than H +ears o& e'(erience in

the retail industr+. She has been associated -ith accounts de(artment o& V6P".

M"+ Su"end"a Kuma" A=a"(a*


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,RPL PROMOTERS AN* /ROUP COMPANIES31

The &ollo-ing indi,iduals are the Promoters o& the Com(an+8

aG. Mr. 6am Chandra Agar-al

bG. Mrs. 5ma Agar-al and

cG. Mr. Surendra Kumar Agar-al.

The &ollo-ing com(anies are the Promoters o& the Com(an+8

aG. 5nicon Mareting Pri,ate "imited

bG. 6icon Commodities Pri,ate "imited and

cG. Vishal !ater !orld Pri,ate "imited.

The com(an+ has during the +ear 2B* established its &i,e ne- com(anies b+

the name o& V6" 0oods "td.* V6" Mo,ers "td.* V6" Consumer %oods "td.* V6"

0ashions "td. V6" In&rastructure "td.* none o& the com(anies ha,e

commenced business o(erations during the +ear.

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,RPL># BUSINESS31

V6P" started as a retailer o& read+9made a((arels in Kolata in 2>. In 23*

V6P" ac/uired the manu&acturing &acilities &rom Vishal 0ashions Pri,ate "imited

and Ms Vishal A((arels. Subse/uentl+* -ith e,olution o& retail industr+ in India

and change in consumer as(irations* V6P" di,ersi&ied their (ort&olio o& o&&erings

to include other retail goods. Currentl+* V6P" sell read+9made a((arels and a

-ide range o& household merchandise and other consumer goods such as

&oot-ear* to+s* -atches* toiletries* grocer+ items* s(orts items* crocer+* home

&urnishing* be,erages* drins* gi&t and no,elties.

V6P" &ollo- the conce(t o& ,alue retail in India. In other -ords* V6P")s business a((roach is

to sell /ualit+ goods at reasonable (rices b+ either manu&acturing themsel,es or directl+

(rocuring &rom manu&acturers F(rimaril+ &rom small and medium si:e ,endors and

manu&acturersG. V6P" endea,or to &acilitate one9sto(9sho( con,enience &or their customers

and to cater to the needs o& the entire &amil+. V6P" belie,e this conce(t has hel(ed them

gro- to their current si:e -ithin a short time &rame o& B +ears.

In order to reduce costs and tae ad,antage o& economies o& scale V6P" ha,e

embared on bac-ard integration o& their (roducts. V6P")s a((arel manu&acturing(lant is located at %urgaon* ;ar+ana. 0or ensuring e&&icienc+ in su((l+ chain* V6P"

ha,e set u( se,en regional distribution centers located around Kolata F!est

=engalG* Thane FMaharashtraG* Jai(ur F6ajasthanG* %ha:iabad F5ttar PradeshG*

"udhiana FPunjabG* %urgaon F;ar+anaG and $elhi. 0urther* V6P" ha,e &ocused on

de,elo(ing a cost and time e&&icient distribution and logistics net-or* -hich currentl+

com(rises se,en distribution centers and a &leet o& trucs &or trans(ortation.

V6P" achie,ed total sales o& 6s. >?.3> cr &or &iscal 2B* as o((osed to a

turno,er o& 6s.@2.@? cr &or &iscal 2H and 6s. 2BB.


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Vishal Mega Mart

Cash and =an =alance 2.< 2.2 B.@ >B ?.>H


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Total Current Assets 22.3> 3.@ [email protected]? 2@3.


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Pre&erence $i,idend . . . . .#/uit+ $i,idend . . . . .Cor(orate $i,idend Ta' . . . . .

Pe" #ha"e data .annuaied0

Shares in issue FlahsG >2. >@ >B3.2? 223.JJEa"nin= Pe" Sha"e .R#0 6+78 8+65 B+@2 27+A4 24+25#/uit+ $i,idend FG . . . . .=oo Value F6sG >.JJ 2.


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,i#ha Retai Ltd+ Stoc-31

=S#8 ?32B@H O NS#8 VIS;A"6#T O ISIN8 IN#


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(ro(osed ca(ital in&usion* dela+ in sanction o& -oring ca(ital limits and higher

li/uidit+ ris.

The com(an+ had a net debt* net o& cash and other li/uid assets* o& 6s H@? crore

on $ecember 3>* 2B. The com(an+* being charged an a,erage interest rate o&

>3 (er cent* is negotiating -ith lenders to reduce the cost o& the debt* as its

interest outgo is e'(ected to nearl+ tri(le this +ear. LIncreasing interest (a+ment

on our balance sheet is a cause &or concern and there is (ressure* Agar-al said.

Vishal 6etail is e'(ected to (a+ interest o& nearl+ 6s > crore in 07 as

against 6s 3B crore in 07B.

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Vishal Mega Mart

M A 6 K # T I N % M A N A % # M # N T

OBJECTI,E311 To unde"#tand the di&&e"ent ma"-etin= #t"ate=ie# bein= &oo(ed b$

,i#ha Me=a Ma"t+

2 To ea"n thei" ma"-etin= mi+

Mareting hel( to de&ine the business &or the customerEs interests* not +our o-n. It is

the (rocess o& learning -hat customers -ant or need and determining ho- to satis&+

those -ants or needs. It is also used to con&irm -hether the customer reacted to a

mareting (rogram as e'(ected. The bene&its o& maret research include8

"earning -ho +our customers are and -hat the+ -ant.

"earning ho- to reach +our customers and ho- &re/uentl+ +ou should tr+

to communicate -ith them.

"earning -hich ad,ertising a((eals are most e&&ecti,e and -hich ones get

no res(onse.

"earning the relati,e success o& di&&erent mareting strategies* thus

im(ro,ing return on in,estment.

"earning ho- not to re(eat +our mistaes.

Vishal Mega Mart has been the (ioneer o& retail re,olution. Its &irst &ight -as

against local QKirana) stores. The tas -as to change the mindset o& consumer to

bring about changes in their sho((ing (atterns. It -anted (eo(le to do bul

sho((ing &or their monthl+ rationinstead o& going to the sho( each -ee.

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Vishal Mega Mart

MA6K#TIN% ST6AT#%7 0 VIS;A" M#%A MA6T

Product

Vishal Mega Mart o&&ers a -ide range o& (roducts -hich starts &rom a((arels to &ooditems* &oot-ear to home &urnishing* crocer+ to s(ort items* child care (roducts to to+s*

-atches* drins etc. There are man+ in house brands (romoted b+ Vishal Mega Mart. In

(ursuance o& their business (lan to di,ersi&+ their (ort&olio o& o&&erings* 0MC% (roducts

(la+ a e+ role. 0MC% (roducts are usuall+ meant to &ul&ill the dail+ needs o& consumers

and there&ore* V6P" belie,e retailing o& 0MC% (roducts -ill bring customers to their

stores on a &re/uent basis and this ma+ in9turn lead to consum(tion o& their a((arels.

V6P" ha,e a number o& (ri,ate labels &or a((arels such as e((lin* Paranoia* Chlorine*

Kitaan Studio* 0amenne* 0leurier !omen and 6oseau.

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Vishal Mega Mart

Promotion

Ad,ertising has (la+ed a crucial role in building o& the brand. Vishal Mega Mart

ad,ertisements are mainl+ seen in (rint media i.e. ne-s(a(ers* Tele,ision -ith Tina

Pareh as there in ad,ertisement* and sometime road9side bill9boards. V6P")s categor+

management s+stem is used to (lan (romotional schemes. The+ launch (romotional

schemes -eel+. A(art &rom general sales (romotion* the categor+ manager &ormulates

(romotional (lans &or Qslo- mo,ers). In addition* to (romote sales* the+ &ocus on la+out

o& the stores and (ositioning* (resentation and dis(la+ o& merchandise* in order to

a((eal to the customer. In addition* V6P" ha,e introduced* in association -ith S=I

Cards Pa+ment Ser,ices Pri,ate "imited* a co9branded credit card. V6P")s (ro(ose to

continuousl+ undertae such initiati,es to increase the satis&action o& their customers.

Some o& the &eatures o& the co9branded card include 6s 2? discount ,oucher on signing

u( &or the card and a (rocess b+ -hich the cardholder earns &i,e re-ard (oints on e,er+

6s > s(ent. A cardholder accumulates (oints on the basis o& (urchases made and the

(oints accumulated can be redeemed &or gi&ts or (urchases. In Se(tember 2?* V6P"

entered into a long term ad,ertising agreement -ith =ennett* Coleman Com(an+

"imited FLBCCLG. 5nder the agreement* the+ are entitled to &i'ed discounts &or their

ad,ertisement in (rint (ublications o& =CC" &or a (eriod o& &i,e +ears &rom the date o& the

agreement. In addition* =CC" -ould also act as a &acilitator &or other (rint and non9(rintmedia o& the Times %rou( i.e. internet* radio and tele,ision or an+ other ne- medium

launched during the tenanc+ o& the agreement. As a (art consideration* V6P" had

issued >*@H*@? #/uit+ Shares o& 6s. > each and 3B Pre&erence Shares o& 6s.

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Vishal Mega Mart

Strong understanding of te !"alue retail# segment

V6P")s business (lan in,ol,es im(lementation o& the conce(t o& the Q,alue retailing)*

targeting the middle and lo-er middle income grou(s* -hich constitute majorit+ o&

the (o(ulation in India. V6P" intend to (ro,ide /ualit+ (roducts at com(etiti,e (rices.

V6P" sell a ,ast range o& merchandise across a((arels and accessories* 0MC%

(roducts* &ood (roducts and consumer durables. V6P")s em(hasis has been to

ma'imi:e the ,alue that the customers deri,e in s(ending on goods bought in their

stores. V6P" endea,or to continuousl+ reduce their costs through a ,ariet+ o&

measures* such as* in9house (roduction o& a((arels* (rocurement o& goods directl+

&rom the small and medium si:e ,endors and manu&acturers* e&&icient logistics and

distribution s+stems along -ith customi:ed (roduct mi' at their stores de(ending on

the regional customer beha,ior and (re&erences. Central to their ,alue retail strateg+

is to (ass on the bene&its o& cost reduction measures to their customers.

Strong and efficient logistics and distri$ution net%or

V6P")s distribution and logistics net-or com(rises se,en distribution centers. =esides*

V6P" ha,e their o-n &leet o& 3> trucs* -hich hel(s V6P" to trans(ort and deli,er their

(roducts in a cost and time e&&icient manner. V6P" belie,e that their distribution and

logistics set u( is -ell net-ored and allo-s them to &ul&ill the store re/uisition -ithinshort time (eriod o& generation and recei(t o& order* -hich has hel(ed V6P" to o(timi:e

in9store a,ailabilit+ o& merchandise and minimi:e trans(ortation costs. Their strong

distribution and logistics net-or has enabled them to dis(ense -ith the re/uirement o&

a dedicated storage s(ace at e,er+ store* -hich is an industr+ (ractice* and instead

undertae (eriodical re(lenishment o& de(leted stoc. $ue to ado(tion o& an e&&icient

racing s+stem* the+ are able to bene&it &rom o(timum utili:ation o& the s(ace allocated

&or dis(la+ in their stores. This (ro,ides them assistance in maintaining a lo- -oring

ca(ital re/uirement and less carr+ing cost.

2?


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Vishal Mega Mart

Poor11111

26+ Are +ou satis&ied -ith the /ualit+ o& the (roducts o&&ered b+ Vishal Mega

Mart7es1111 No11111 Some-hat satis&ied11111

22+ $o +ou e,er &ace an+ (roblem at Vishal Mega Mart

=illing Problems11111 ;ea,+ 6ush11111

Personnel)s lac o& no-ledge1111 ut o& stoc (roducts1111

No (roblems &aced1111111

28+ ;o- -ould +ou rate +our o,erall e'(erience in this retail outlet F6ate on

a > (oint scaleG111111111111111

27+ An+ com(laints89

11111111111111111111111111111111111111111111111111111111111111111111

11111111111111111111111111111111111111111111111111111111111111111111

11111111111111111111111111111111111111111111111111111111

25+ An+ suggestions89

11111111111111111111111111111111111111111111111111111111111111111111

11111111111111111111111111111111111111111111111111111111111111111111

11111111111111111111111111111111111111111111

2H


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Vishal Mega Mart

P # 6 AT I N S M A N A % # M # N T

OBJECTI,E311 To #tud$ the in!ento"$ mana=ementD t"an#%o"tation# #$#tem and

o=i#tic# o& ,i#ha Me=a Ma"t+

2 To unde"#tand the %"oce## o& %ant ocation and a$out o& the com%an$+

'(PL Business Processes:-

V6P")s business (rocess can be summari:ed as belo-8

Esta$lisment of Stores

Selection of location

In selecting location &or a ne- store* V6P" start b+ identi&+ing the cit+to-n. V6P"

target (rimaril+ citiesto-ns -hich ma+ be classi&ied as Tier II or Tier III cities. In this

regard* an anal+sis o& the demogra(h+* literac+ le,els* nature o& occu(ation and

income le,els. !ithin a cit+to-n* V6P" target locations -ith good in&rastructural&acilities such as eas+ accessibilit+* (ro,ision &or -ater* electricit+* (aring* securit+

and other basic amenities. V6P" (re&er to locate their stores in areas -here real

estate is a,ailable at reasonable (rices. The e&&orts o& V6P")s retail business are

targeted to-ards &amilies ha,ing total income -hich can be classi&ied under the

Llo-er middle and Lmiddle income grou(s. Accordingl+* V6P" (lan their strateg+ to

search &or areas -ithin cities -here such customers are domiciled in large numbers

and mae e&&orts to locate themsel,es -ithin the reach o& such customers.

V6P" belie,e that ado(tion o& standard &ormats &or their stores has led to their brand

establishment and identi&ication among their customers and -ill increase their base o&

lo+al customers. In (ursuance o& this* the+ ha,e ado(ted standard (arameters &or store

(lanning and establishment. 0or ensuring standardi:ed &ormats o& their stores* V6P"

consider ,arious &actors* such as internal and e'ternal dcor and colour schemes*

2B


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Vishal Mega Mart

allocation o& store s(ace* stoc mi' and (ricing and accounting methods.

Insurance

V6P" maintain com(rehensi,e insurance co,erage -ith Tata AI%* =ajaj Allian:*

6o+al Sundaram and I00C9TKI &or their e'isting stores* distribution centers*

manu&acturing &acilities and trucs. V6P" insurance (olicies include com(rehensi,e

co,erage &or electronic e/ui(ment* &ire and s(ecial (erils and burglar+.

0urther* V6P" has &iled a claim o& 6s. 22.? million on account o& &ire in their

store at Meerut as on Jul+ H* 2@. In this regard* the+ ha,e recei,ed 6s. H.?

million as an interim (a+ment.

)actories

V6P")s e'isting manu&acturing &acilities are located at Plot No. 22

5d+og Vihar* %urgaon* &or -hich the+ ha,e leasehold interest until Ma+


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Vishal Mega Mart

&ashion and trends* in9house (roduction resources* ,endor management and (rice.

#ach di,ision is &urther di,ided into major categories F&or instance* men)s a((arel as

a di,ision is &urther di,ided into three major categories* namel+* u((er* lo-ers and

s(orts and ethnic -earG. These major categories are in turn segregated into ,arious

subcategories. 0or e'am(le* men)s u((er as a major categor+ -ould be &urther

di,ided into se,eral sub9categories such as &ormal shirts* casual shirts* (art+ -ear

etc. #ach sub9categor+ consists o& (re9de&ined SK5s* -hich are classi&ied on the

basis o& (rice (oint* brand* st+le* (attern and si:e.

V6P" dra- annual sales (rojections &or di&&erent SK5s and* accordingl+*

ascertain their sourcing re/uirements. =ased on such in&ormation and lead time

estimates &or su((lies* (urchase orders -ith deli,er+ schedules are issued. The

in,entor+ (osition &or each SK5 is re,ie-ed &ortnightl+ taing into account theactual sales and ,ariations &rom the budgeted (lans. 6egular ,isits to the stores

are made b+ the categor+ merchandising team to identi&+ the slo-9mo,ing9SK5s

and e'(lore the o(tions to e'(editiousl+ dis(ose o& them.

0or certain non a((arel categories* their merchandise (lanning and scheduling

also de(ends on introduction o& ne- (roducts and schemes b+ the ,endors. 0or

instance* i& a branded home a((liance manu&acturer re(laces a (roduct -ith a

ne- ,ersion* then their (lanning &or the (roduct -ould need to be re,ie-ed

based on the acce(tabilit+ o& the ne- ,ersion.

In-ouse Manufacturing

V6P" bene&it &rom bac-ard integration and in9house manu&acturing o& (art o& the

a((arel (roducts sold in their stores. Through their manu&acturing ca(abilities* V6P"

is able to attain relati,e inde(endence &rom intermediaries -ith a com(etiti,e

ad,antage in terms o& ,alue and cost. V6P" use their manu&acturing strengths to

&ocus on enhancing (roduct no-ledge and their e'(eriences &rom manu&acturing

enable them to negotiate better terms &rom the ,endors and job -orers.

V6P" currentl+ ha,e an a((arels manu&acturing (lant at %urgaon* ;ar+ana. The

manu&acturing (lant is -ell9e/ui((ed -ith &ull+ automatic machines &or &using* buttoning*

embroider+ and -elt (ocet9maing o(erations. The &actor+ has a ca(acit+ to

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-ith the ,endors and in certain cases the+ also release (a+ments in ad,ance. To

ensure /ualit+ o& su((lies* V6P" chec /ualit+ b+ -a+ o& random sam(ling at the

time o& recei(t o& the goods. To ,eri&+ that the /uantit+ o& su((lies is as ordered* the+

undertae count9chec &or e,er+ recei(t o& the goods. 0or 0MC% (roducts* V6P"

(rocure &rom large as -ell as small and medium si:e manu&acturers. 0or

(rocurement &rom the large manu&acturers or their distributors* the+ endea,or to

enter into &ormal arrangements &or su((l+ o& (roducts to all V6P" stores* such that

the+ are able to deri,e &i'ed margins &rom sales o& such (roducts* irres(ecti,e o& the

locations. 5nder these agreements* the+ bene&it &rom s(ecial discretionar+ discounts

and o&&ers directl+ &rom the manu&acturers or their distributors.

Since most o& the arrangements -ith the large manu&acturers or their distributors

are &or su((lies across the countr+* the+ &acilitate V6P" to e'(editiousl+ launchne- stores* as V6P" do not ha,e to identi&+ local sources &or su((lies o& the

0MC% (roducts. Such arrangements also hel( V6P" in standardi:ing the

(romotional schemes across all V6P" stores.

0or some o& the 0MC% (roducts* such as sta(les and &ood grains* the+ (urchase

in bul and brea them do-n into smaller (acages &or sales. 0urther* based on

their assessment o& regional tastes and (re&erences* V6P" (urchases some

(roducts locall+ &rom small and medium si:e ,endors.

*++arel Manufacture

The basic ra- materials re/uired &or the manu&acturing (rocess o& a((arels includes

&abrics and accessories. V6P" merchandising teams source &abrics &rom local

manu&acturers in India de(ending u(on their (roduction (lan. V6P" also source &abrics

&rom the (lace o& origin. V6P" source ,arious other com(onents and accessories &rom

,endors in ,arious (arts o& the countr+ and also im(ort them &rom China.

In"entor Management. Distri$ution ,et%or and Logistics

V6P")s distribution net-or and logistics encom(asses all acti,ities to ensure that goods

are dis(atched in right /uantities and at right time to reach stores -ith su&&icient time in

hand to (rom(tl+ cater to customer demands and o(timi:ation o& in,entor+ (osition.

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The+ ha,e built a s+stem to monitor the in,entor+ (osition on a real9time basis at

each store* under -hich a stoc re/uisition or deli,er+ order is generated -hen (re9

determined stoc or re9order le,els are reached. The re9order le,els &or stores are

determined based on &actors such as dis(la+ le,els* lead time &or re(lenishment and

a,erage dail+ sales. V6P" re,ie- these re9order le,els on continuous basis to &actor

in ,ariances in demand based on seasons* trends and (romotional schemes.

V6P" ha,e se,en distribution centers o,er a((ro'imatel+ 3B?*33 s/uare &eet. These

distribution centers are located around Kolata F!est =engalG* Thane FMaharashtraG*

Jai(ur F6ajasthanG* %ha:iabad F5ttar PradeshG* "udhiana FPunjabG* %urgaon F;ar+anaG

and Mahi(al(ur FNe- $elhiG. V6P" ha,e clearl+ demarcated the stores -hich -ill be

ser,iced b+ each distribution centre. The reorder le,els &or distribution centers are

ascertained on the basis o& &actors lie a,erage dail+ sales o& all the stores ser,ices*lead time &or re(lenishment and bu&&er stoc* -hich caters to both the e'isting and

(ro(osed stores to be &ed. As &or the stores* the+ regularl+ re,ie- these re9order le,els.

V6P")s distribution centers and stores are connected through com(an+9-ide

,irtual net-or connection through broadband -hich hel(s to e&&icientl+ manage

their net-or o& stores and distribution centers throughout the countr+.

The+ (rimaril+ utilise their o-n ,ehicles to trans(ort the in,entor+ to their stores &rom

the distribution centers. In addition* V6P" use the ser,ices o& logistic solution

(ro,iders including lo- cost trans(ort ser,ice (ro,iders in order to deli,er (roducts

on time to V6P" stores and o(timi:e trans(ortation costs. $istribution centers

o(erations ha,e been streamlined through the standardisation o& racing s+stem*

la+outs and im(lementation o& automatic re(lenishment s+stem.

5nder arrangements -ith some o& their merchandise manu&acturers* the+ recei,e

(a+ment on account o& dis(la+ o& their (roducts.

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Vishal Mega Mart

Internal /ontrols and /ost (eduction Measures:-

As a ,alue retail chain* V6P" em(hasi:e on reduction o& costs at ,arious stages

and le,els. In addition to reduction o& costs o& (rocurement and b+ -a+ o&o(timi:ation o& in,entor+* V6P" em(lo+ on the &ollo-ing measures to enhance

e&&iciencies and reduce o(erational and administrati,e costs8

Pilferage /ontrol

V6P" ha,e established three9la+er securit+ checs to control losses on account

o& (il&erages at their stores. At the &irst le,el* V6P" em(lo+ees screen the goods

being carried out o& the store b+ the customers. Pro&essional securit+ guards

o,ersee the screening (rocess. "astl+* V6P" ha,e de(lo+ed electronic sensors

to chec an+ (il&erages. In addition* all V6P" stores are co,ered b+ closed circuit

tele,ision monitoring.

(esource Utili0ation

V6P" belie,e in reducing o(erating and administrati,e costs b+ -a+ o& o(timum

utili:ation o& their human and other resources. 0or instance* the+ determine the

sta&&ing re/uirement on basis o& a matri' containing &actors such as store s(ace

and &oot&all intensit+. V6P" also train their em(lo+ees to assume cross9&unctional

res(onsibilities. As a measure &or o(timum utili:ation o& their s(ace resources*the+ ha,e ado(ted an e&&icient racing s+stem b+ de(lo+ing relati,el+ higher

racs to ma'imi:e the s(ace a,ailable in a store. The u((er slabs o& a rac are

utili:ed &or storage and the lo-er ones &or dis(la+. This hel(s V6P" in eliminating

the need o& dedicated storage s(aces is most o& V6P" stores.

Efficienc of Processes

V6P" belie,e in ado(ting (rocesses -hich are e&&icient. 0or instance* the+ ensure

that about a /uarter o& the sta&& at a ne- store is de(lo+ed b+ trans&erring &rom their

e'isting stores. This hel(s in ensuring that a ne- store is o(erated e&&icientl+ and

that the &reshl+ recruited sta&& recei,es on9the job training &rom the e'(erienced sta&&.

V6P" belie,e in continuall+ re,ie-ing and re9engineering ,arious o(erational and

administrati,e (rocesses to mae them both more e&&icient and cost e&&ecti,e.

3


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Vishal Mega Mart

M A N A % # M # N T 0 T # C ; N " % 7 *

I N N VAT I N C ; A N % #

OBJECTI,E31

1 To #tud$ the di&&e"ent #o&t(a"e># o" technoo=$ bein= u#ed b$ the

,i#ha Me=a Ma"t+

Technolog+ is im(ortant to cut costs* im(ro,e e&&icienc+* (ro,iding ,alue to customers

and increasing the customer e'(erience. IT solutions hel( in s+nchroni:ing acti,ities

across ,arious ,erticals such as (rocurement o& in,entor+. Securities &rom both e'ternal

and internal threats are also im(ortant -hen the scale o& the o(erations increases. Most

o& their critical &unctions such as Su((l+ Chain* (erations* 0inance Accounts* and

Customer "o+alt+ Program ;uman 6esources are lined through a com(uter net-or.

This has enabled them to reduce their time to maret and res(ond to the changing

customer re/uirements. This has also hel(ed them reduce their costs o& o(erations

through both* reduction in -astages and missed o((ortunities as -ell as a conse/uentreduction o& the o,erall costs o& o(erations.

V6P" are &ocused on ac/uisition and im(lementation o& ad,anced in&ormation

technolog+ s+stems* (rocesses and business a((lications in order to handle all

store o(erations including in,entor+ management and billing. V6P" o&&ice

(rocesses are also com(uteri:ed -hich su((ort (rocurement* su((l+ chain

logistics* distribution centers management and in,entor+ control. All the locations

are connected through com(an+9-ide ,irtual net-or connection -hich hel(s to

e&&icientl+ manage their net-or o& outlets throughout the countr+.

V6P" belie,e that their business re/uires e&&icient management and storage o& data and

in&ormation to utilise &or business anal+sis* research and &orecast. =ased on V6P")s

e'isting in&ormation technolog+ s+stems* the+ are able to generate detailed dail+ re(orts

co,ering the ,arious as(ects o& their business such as di,ision -ise sales (er store*

in,entor+ mo,ement and (osition at stores and distribution centers and generation o&

3@


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Vishal Mega Mart

(urchase and deli,er+ orders.

In August 2?* V6P" had entered into a so&t-are end9user license agreement -ith

S+stems* A((lications and Products in $ata Processing Pri,ate "imited FLSAP IndiaG &or

grant o& a non9e'clusi,e and (er(etual license to V6P" to use the SAP so&t-are*

documentation and other in&ormation related thereto. SAP &or 6etail (ro,ides an

integrated technolog+ (lat&orm &or retailers and a one (oint solution &or su((orting and

managing di&&erent business models such as o-ned stores* &ranchise stores* sho( n

sho( conce(ts. Strong business decision and anal+tical ca(abilities ha,e enabled

retailers o& all si:es the (o-er to mae the right decisions /uicl+ and (ro&itabl+.

=eginning -ith a com(uteri:ed cash memo* to use 0o'Pro &or o(erations accounting and*

im(lementation o& a com(lete #6P &rom J$A FJ. $. Armstrong So&t-are %rou(G* the+ ha,egraduall+ e'tended the 5se o& technolog+ in their ,arious areas o& o(erations. In order to

increase the s(eed and traceabilit+ to the su((l+ chain management Vishal Mega Mart

introduces Ba" Code Technoo=$. =ar code is tried and tested technolog+U the Lno9

brainer choice &or identi&+ing items in the su((l+ chain. 7es* it does ha,e short comings in

that a((l+ing it means that e,er+thing has to be in line o& sight because light is used to

ca(ture and read the bar code. =ut as goods are handled either b+ humans or machines* the

goods are al-a+s ,isible* as are their labelsUlabeling standards mean that it is ,irtuall+

im(ossible to not see the label and its bar code. This means that some &orm o& scanner is

usedUthe range o& a,ailable technolog+ is broadUeither b+ an o(erator -ielding a hand9

held de,ice or b+ a machine9mounted or &i'ed9(osition scanner.

=e+ond the bar code is RFI* ."adio &"e'uenc$ identi&ication0-here a chi( -ithin a

tag carries in&ormation and is read using radio -a,es. Vishal Mega Mart uses the

latest technolog+ to im(ro,e its (er&ormance ualit+ as -ell as uantit+ !ise. =ar

code scanners are ,er+ so(histicated de,ices these da+s. 0unctionalit+ and reliabilit+

is e'tremel+ im(ortant. Vishal Mega Mart also uses CCTV to monitor its stores.

Various CCTV)s are being installed in a store* -ith a room -here the entire

&unctioning taing (lace in a store can be monitored b+ a human o(erator.

V6P" ha,e (artl+ im(lemented their in&ormation technolog+ set u( and are currentl+ in

the midst o& com(leting the (rocess o& u(grading their in&ormation technolog+ set u( and

3H


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Vishal Mega Mart

ha,e entered into an agreement dated Se(tember @* 2? -ith Tata Con#utanc$

Se"!ice# Limited &or (ro,iding in&ormation technolog+ ser,ices including

im(lementation o& more ad,anced #6P a((lications such as SAP* rendering ser,ices

inter alia &or management in&ormation s+stem on re(orts related to stoc management*

recei(t (rocessing* (icing and (acing* (roject s+stems* merchandise assortment

management* (ricing and (romotion* sales* controlling and &inancial accounting.

Mana=ement In&o"mation S$#tem# .MIS0

The+ ha,e strong MIS ca(abilities that mae use o& their technological in,estments

to generate ,aluable insight &or them and hel( them in im(ro,ing their o(erations* as

-ell as in enhancing their s(eed o& res(onse to -hat the customers -ant. The+ are

thus able to monitor their (er&ormance on a da+9to9da+ basis* across stores*de(artments and (roduct categories and com(are the same -ith other stores as -ell

as across (eriods. This hel(s them tae correcti,e action on a timel+ basis* and

o(timi:e their stoc. The+ are currentl+ using =usiness bjects to anal+:e data

related to the bu+ing trends o& their lo+alt+ customers.

3B


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Vishal Mega Mart

0ollo-ing are the table -hich sho-s the di&&erent so&t-are used b+ the

organi:ation in the organi:ation acti,ities* &or customer transaction &or

em(lo+ees -oring in the organi:ation.

>. GJ*A ERPH #o&t(a"e+

Functiona A"ea3

Merchandising =u+ing*(roduct ordering* 6ecei(t

con&irmation* Stoctrans&er* In,entor+Management* Sales

Merchandise e,ent

Comment#3 J$A is one o& the leading #6P s+stems used b+ man+ retailers &ormulti(le=usiness models in regards to retailing. The s+stem is &ull+ integrated and taescare o&the Su((l+ chain &rom a manu&acturer to the end customer b+ using bac9endand &ront9end s+stems lie MMS FMerchandise Management S+stemG !in$SSF!indo-s $istributed Stores S+stemsG.

2. GO"ace FinanciaH #o&t(a"e+

Functiona A"ea3

0inancial Accounting

Comment#3 Com(letel+ integrated -ith their retail #6P9 MMS* allo-s them to

get online integrated &inancials.

3. GRAMCO )RMSH #o&t(a"e

Functiona A"ea3

;uman 6esources.

Comment#3 Their s+stem su((orts Personnel Management* Pa+rollManagement* #m(lo+ee =ene&its Management* Training Management and#'ecuti,e In&ormation.

3


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Vishal Mega Mart


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Vishal Mega Mart

+ears as on Januar+ 3>* 2B. Managing a +oung team engaged in a ser,ice intensi,e

business -ith largel+ re(etiti,e -or is one o& the challenges that the+ &ace. Their human

resource (olicies are aimed to-ards creating a silled and moti,ated -or &orce. V6P"

ha,e around H em(lo+ees both em(lo+ed in their stores as -ell as in their

manu&acturing units and other &acilities* as on Se(tember 3* 2@. The+ (ro,ide a

conduci,e -or atmos(here and o((ortunities &or their em(lo+ees to learn and gro-.

The &ollo-ing table (ro,ides a classi&ication o& V6P" em(lo+ees on the basis o&

their age and education.

A=e No+ o& Em%o$ee#

>B92< 33? and abo,e B32

Tota D74 Education

No+ o& Em%o$ee#

5nder %raduates


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Vishal Mega Mart

co,ered under their Pro&it "ined 6e-ard Scheme FP"6SG* lining indi,idual

(er&ormance and Com(an+ (ro&itabilit+. Their (art9time and &ull9time em(lo+ees are

eligible &or P"6S. Almost @ o& Customer Care Associates earned P"6S in the +ear

ended March 3>* 2H. The+ also ha,e #m(lo+ee Stoc (tion Plans F#SPsG.

T"ainin=

V6P" encourage their em(lo+ees to be enter(rising and e'(ect them to Qlearn on the

job) and contribute constructi,el+ to their business* either through ideas* (ersonal

net-ors or e&&ecti,e no-ledge management. In essence* the+ train their em(lo+ees to

become ne't generation entre(reneurs* -ho can e&&ecti,el+ lead the gro-th o& their

business. Their cor(orate objecti,e is to (ro,ide e,er+ associate -ith an a,erage o& ?

man da+s o& training (er annum through internal and e'ternal resources.

All senior management members are re/uired to contribute 3 hours (er annum

to-ards training.

Rec"uitment Seection

0or (osts o& team members the &ollo-ing rounds taes (lace9

2+ Ps+chometric tests* =eha,ioral Intelligence Test* "ogical thining and

Com(rehension Test.8+A((lication blan.

7+ Personal Inter,ie-* (erations Inter,ie-* 6egional Manager Inter,ie-.

0or Area Manager8

2+ Collection re,ie- o& curriculum ,itae

8+ Personal inter,ie- -ith 6egional ;6 Manager

7+ Personal inter,ie- -ith %M9 ;6

The salient &eatures o& Vishal Mega Mart sta&& are8 9

2+ !ell9trained sta&&* the sta&& em(lo+ed b+ Vishal Mega Mart is -ell9suited &or


45/58

+ The em(lo+ees -ere gi,en bonus and gi&ts during the &esti,als lie di-ali* etc.

.

2 Pantaloon Retail8 Plans to occu(+ > mn s/.&t retail s(ace and achie,e

6s.>2* crore9(lus FD2.? bnG sales b+ 2>.

3 RPG8 Planning IP -ill ha,e


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Vishal Mega Mart

Findin=#

1. The choice o& a store location has a (ro&ound e&&ect on the entire business

li&e o& a retail o(eration. A bad choice ma+ all but guarantee &ailure* a goodchoice* and success.

2. Choosing a retail location is* at best* a ris+ undertaing. Considering the

conse/uences o& choosing a location that (ro,es to be unsuitable* it (a+s to get

as much assistance as (ossible. According to a sur,e+ more than @ o& the

customer (re&ers to sho( in a retail store -hich is easil+ accessible to them.

3. Ad,ertising (la+s a ,er+ im(ortant role in achie,ing gro-th &or an+ retail

com(an+. This is e,ident &rom the &act that Ad,ertising b+ 6etail Industr+

registered a rise o& >2 (ercent during Januar+ 9 Ma+ 2H o,er Januar+ 9

Ma+ 2@.

4. The right location* trained man(o-er* so&t-are assistance* (roduct -ith a

distinct di&&erentiation* a strong ,alue (ro(osition* e&&icient su((l+ chain

management 9 these are the &actors that in&luence the success o& a retail

outlet. !ith com(etition in this segment increasing* di&&erentiation and a

strong ,alue (ro(osition assume signi&icance. 6etail chains are reali:ing that

the+ cannot be another Qme9too) store. The di&&erentiation toda+ among the ?9@ retail chains has come through (ri,ate labels* -hich in some cases account

&or as much as H (er cent o& the total merchandise in the outlet.

5. Variet+ o&&ered b+ an+ retail store is o& ,er+ much im(ortant to attract all

t+(e o& customers in the stores. A large ,ariet+ o& (roducts caters to each

segment o& customers.

6. Sho((ing e'(erience -ithin a store also has a great im(act on selecting a

(roduct &rom a (articular retail store. ,erall ambience includes in&rastructure

&acilities (ro,ided b+ the store such as air conditioners* lighting etc.

7. Pricing is in &act a dramatic controller o& at least 3 e+ strategic elements to an+

com(an+Es success8 Com(an+)s image* the (roduct and ser,ices com(an+ sells

and consumer beha,ior. The Im(ortance o& Pricing their ProductsE -ill gi,e them

an insight into de,elo(ing a((ro(riate costing methods and the im(act o& getting

?2


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Vishal Mega Mart

it -rong in toda+Es com(etiti,e creati,e maret. This to(ic should be o&

interest to an+one -ho is unsure i& the+ are getting it right. 6emember the

di&&erence bet-een o,er or under9(ricing their -or can mean a ,er+ short

&uture &or an+ business. A((ro'imatel+ @ customers thin that Price is

the most im(ortant &actor -hile the+ go &or sho((ing in a retail stores

8. ualit+ in e,er+da+ li&e and business* engineering and manu&acturing has

a (ragmatic inter(retationas the non9in&eriorit+* su(eriorit+ or use&ulness

o& something. This is the most common inter(retation o& the term. The

/ualit+ o& a (roduct or ser,ice re&ers to the (erce(tion o& the degree to

-hich the (roduct or ser,ice meets the customerEs e'(ectations. ualit+

has no s(eci&ic meaning unless related to a s(eci&ic &unction andor object.

ualit+ is a (erce(tual* conditional and some-hat subjecti,e attribute. Andin addition to that* more than o& customers (lace /ualit+ as the most

im(ortant &actor than an+thing else in the list to sho( in a retail store.

9. More than H o& customers (lace ,ariet+ as an im(ortant &actor to sho(

in a (articular retail store.

10. =rands name bears an im(ortant role -hile sho((ing o& an+ t+(e o& goods. So

building a brand &or a retail store is im(ortant as B o& customer still (re&er to

bu+ branded clothes in the retail store instead o& local or unbranded clothes.

?

3
http://en.wikipedia.org/wiki/Pragmatism_(non-technical_usage)http://en.wikipedia.org/wiki/Pragmatism_(non-technical_usage)http://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Pragmatism_(non-technical_usage)http://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utility


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Vishal Mega Mart

Concu#ion

Su==e#tion#31

1. Include more trained sales (erson to hel( customers in the store -hile sho((ing.

2. Im(ro,e /ualit+ o& the (roducts es(eciall+ clothes.3. Pla+ good songs or soothing music in the store rather than chea( &ilm+ songs.

4. Customer care ser,ice can be introduced

5. More branded (roducts can be dis(la+ed in the store as (eo(le still (re&er

branded clothes than o&&ered b+ local ,enders.

6. Constant reminder o& discounts through (am(hlets* s(eaers inside the

store &or inducing consumers &or im(ulse bu+ing.

7. Add more cosmetic (roducts as its ha,ing a huge maret o& consumers

attached to it.

8. $is(la+ o& (roduct should be im(ro,ed so that the (roduct is easil+ ,isible

to the consumers.

9. Pro(er ad,ertisement in (ress and outdoor to mae Vishal Mega Mart

should be ,isible in the e+es o& consumers.

10. Should ha,e (aring s(aces in &ront o& e,er+ store.

11. ;ire more salesgirls as in ladies section its ,er+ di&&icult &or both the

consumers and salesman to interact -ith each other.

12. 6egular training to sales (erson to im(ro,e there o,erall (er&ormance.

Com%aint#3 1

1. "o- ,ariet+ o& (roduct a,ailable and customi:ation o& (roducts is not there.

2. Air conditioners are not (ro(erl+ -oring

3. Prices are not mentioned at all (laces and at all (roducts.

4. Prices are not com(etiti,e as the+ are assumed to be higher -hen

consumers are ,isiting other retail outlets.

5. %rocer+ items are not su&&icient and the+ are not at all a,ailable at man+ stores.

6. Clothing items o& -omen are (riced unreasonabl+

7. "ac o& s(ace in the store -hile sho((ing and mo,ing -ithin a store.

?


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Vishal Mega Mart

Recommendation3 1

1. Customi:ation o& clothing should be gi,en an im(ortant consideration.

2. Pro(er (acaging and (ro,ide contrast labeling in dis(la+s o& (roduct.3. Should a((l+ electronic su((l+ chain management &or better in,entor+

management.

4. Pro(er (o-er bac u( as air conditioners are not -oring to their &ull

ca(acit+ at man+ stores.

5. Pro(er (lacements o& %ondola in the stores as s(ace bet-een them are ,er+ less.

6. Pro(er dis(la+ in the gondola and to( most rac o& the gondola should be

used &or storing o& in,entor+ rather than dis(la+ o& (roduct.

7. Should (ro,ide more &esti,al schemes and at (ro(er time.

8. Should use (s+chological (ricing9more discounts b+ increasing the (rice

9. Pro(er dis(la+ o& cutler+ items

10. Clothes should be in s+nc -ith &ashion.

??


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Vishal Mega Mart

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