Mini Project Report

On

“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART: - A

COMPARATIVE STUDY”

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

2014-201

Submitted by,

Sawan Gupta

Roll: no:

Batch : 2021-

Submitted to,

Asst. Professor

Dayanand Academy of Management Studies

Affiliated to AKTU, Lucknow
 “MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

PREFACE

A man can become perfect with perfect knowledge and experience. As a student of business management,
we have studied many theories in the classroom but any professional degree is incomplete without practical
knowledge of the concerned field. And the same case is with management studies, management is
incomplete without knowing practical application of theories studied. I have experienced and understood
the practical importance of these theories on this training. More books and theoretical knowledge can’t
help you in any field whether it is management or technical. Only thing that can help you is practical
knowledge. This development day provides a golden opportunity to the students for getting a perfect
knowledge and experience. I come to know how the management of the company is actually being done.
How decisions are made? How do people behave and decide what to purchase? As a part of my learning in
management field and requirement of MBA program, I have been given an opportunity to grab practical
knowledge in the area of marketing and I had selected -MART AND VISHAL MEGA MART:
- A COMPARATIVE STUDY”.
I have made my best efforts to get knowledge and experience. During the day, I had collected necessary
information, and I present all the necessary information to understand well.

Sawan Gupta

2
 ACKNOWLEDGEMENT

A research studies cannot be completed without the guidance, inspiration and cooperation from
the various quarter. This study also is the imprints of many persons.

I would like to express my gratitude

to Ms Stuti Jain, my project guide for his kind mentorship and guidance in assisting me with my
project. His academic inputs provided me insights that were invaluable for completing this
project.

I wish to express my deep gratitude and sincere thanks to “V-MART and VISHAL MEGA
MART ” for providing me their precious time to collect various kinds of information.

Sawan Gupta
 Index
S. NO. TOPIC PAGE NO.
1. COVER PAGE
2. PREFACE
3. ACKNOWLEDGEMENT
5. SUPERVISOR CERTIFICATE
6. INDEX
7. INTRODUCTION ABOUT THE 8
INDUSTRY

7.1BRIEF PROFILE OF THE 9-16

V-MART
7.2 VISION AND MISSION 17
7.3 ORGANIZATIONAL CHART 18
7.4. DETAILS OF V-MART 19-20
PRODUCT
7.5. CORPORATE STRATEGY AS 21
REGARDS TO MARKETING
7.6 MARKETING STRATEGY OF V- 22-25
MART
7.7 SALES PROMOTION 26-29
TECHNIQUES ADOPTED BY V-
MART
7.8 SWOT ANALYSIS 30-31
7.9 OVERVIEW OF VISHAL MEGA 32-34
MART
7.10 MANAGEMENT ANIZATION 35-36
STRUCTURE
 7.11 VISHAL PRODUCTS 37

7.12 VISION AND MISSION 38-42

7.13 PRODUCTS OF VISHAL 43-48
MEGA
MART
7.14 MARKETING STRATEGY 49-52
OF
VISHAL MEGA MART
7.15 SALES PROMOTION 53-54
TECHNIQUES
ADOPTED BY VISHAL
MEGA MART
7.16 SWOT ANALYSIS 55-56
7.17 E - COMMERCE 57-59
8. CHAPTER 2 60
8. RESEARCH METHODOLOGY 61-63
8.1 OBJECTIVE OF RESEARCH 64
8.2 RESEACH METHODOLOGY 65

9. CHAPTER 3 66
9.1 DATA 67-75
ANALYSIS/INTERPRETATION.
9.2.FINDINGS. 76
9.3. CONCLUSION 77
9.4 SUGGESTIONS. 78
9.5 LIMITATIONS. 79
10. BIBLIOGRAPHY 80

11. ANNEXURE 81-83

 INTRODUCTION ABOUT THE INDUSTRY

With revolutionary changes taking place in the worldwide economy and the growing
importance of 24/7 operation of the business, the retail sector has been undergoing a
paradigm shift across the world.
The world of today has turned into a global village; consumerism is having a huge impact on
the contemporary retail business, and technological advancements have created
opportunities as well as several challenges for the retail industry. With the advent of the
internet, the growth in the retail industry has been impressive due to the benefits of the
economies of scale and also the expansion of business across the geographical boundaries at
B2B (Business to Business) and B2C (Business to Consumer) levels.
Several studies have proven that the Indian Retail Market is one of the top emerging markets
in the world. For Indian Economy, the retail sector is one of the pillars, which contributes
towards a growth rate of approximately 10% of the total GDP and towards the total
employment around 8%. According to the latest studies, Indian retail market is ranked
amongst the top 5 retail markets worldwide estimated around 600 Billion US Dollars.
Indian Retail industry is expected to have a bright future and offers numerous opportunities
for progress and growth. According to GRDI reports, some favorable factors which support
the growth of retail business are: rise in fashion loving and brand conscious young
population, extensive urbanization, and expansion of opportunities for new investment in
retail sector.
As per the report of FICCI (2011), a positive trend in the Indian retail sector can be
attributed to a sharp rise in the Middle-Income segment and growth in domestic
consumption. Moreover, studies suggest that with changes in the consumer buying
preferences, demographics composition and increasing preference for mall culture, there has
been a transition from the traditional retail formats to a more organized form of retailing, as
a result of which the Indian Retail market is expected to witness an optimistic trend in future
as well.
The retail sector in Indian context can be subdivided into Organized and Unorganized retail
sectors. Organized retailing constitutes licensed retailers registered under sales and income
tax, involved in carrying out their day-to-day trading functions. This may include large
hypermarkets, large-scale owned retail ventures owned privately or the retail chains as well.
On the other hand, unorganized retailing comprises of a sizeable proportion of small retailers
operating their own Kirana, paan, beedi shops, general stores, chemists, hawkers, etc. In
developed economies, organized retail enjoys a predominant share of around nearly 75-80%
as against traditional retailing, while in developing economies; unorganized sector enjoys a
predominant share in the retail market.
The retail sector in India is highly fragmented or distributed. Unorganized retail constitutes a
significant share of over 90%, while the organized retail segment is just in a start up stage
and has witnessed an impressive growth over last few years. Retail in India originated with
the Mom and Pop Stores and Kirana Stores, which used to cater to the requirements of the
local population. Over a period, the government encouraged rural retail and provided
support for establishing Khadi & Village industries.
During 1980’s, the retail scene in India changed further with the opening up of the economy,
as a result of which leading retail chains in textile sector were established like Raymond’s, S
Kumar’s and Bombay Dyeing. Subsequently, Titan launched its retail showroom, and the
organized retailing started strengthening its grip in the Indian market.
By 1995, major retail outlets such as Food World, Music World, and Planet M, Crossword
entered the Indian retail market. Large retail formats and stores like shopping malls,
hypermarkets and supermarkets came into operation for providing best of the class
experience to the customers. The retail sector evolution witnessed improvements in the
distribution set up, supply chain management, technological innovations, back end
operational support and excellence and increase in business alliances in the form of
collaborative ventures, mergers, acquisitions, joint ventures, etc.
Major players in the retail industry like Tata Group, Future Group, Bharti, and Reliance, etc.
have stepped forward with aggressive and ambitious investment plans in the retail sector as
a part of their business expansion strategy across various verticals. Moreover, with the
introduction of retail reforms by the Government of India which allows FDI

of 51% in multi brand stores in India, organized retail sector is expected to capture a major
share of the market in the upcoming future.
According to Assocham study, factors such as globalization and liberalization of
economies, increase in the purchasing power of the consumers, changing lifestyle and
infrastructural developments, have revolutionized the Indian retail market. Studies reveal
that organized retail market which was just at 7% of the total retail market share in 2011-12,
is expected to attain a total share of over 10% across the retail sector by 2016-17. The
estimated growth rate of traditional retail is expected to be around 5% while for organized
retail it is expected to be around 25% by 2020.
Food & Grocery is the major contributor in the entire retail market in India with a total
contribution of almost around 60% of the total retail sector in 2012. This is followed by
Clothing (8%) and Telecom & Mobile (6%) and many others. In organized retailing,
Apparels is the major contributor which accounted for a total contribution of 33% in 2012 to
the retail industry followed by food and grocery (11%). Though, the share of Food &
Grocery segment in organized retailing has shown an impressive growth since last few
years. E Commerce and E Tailing in recent years have redefined the retail landscape and
offer a lot of opportunities to various stakeholders.
Challenges Faced by the Indian Retail Sector

Even though the retail sector in India has a lot to offer regarding opportunities and prospects
of business growth, still it is susceptible to various impediments/bottlenecks which may
slow down the pace of growth. Several challenges such as infrastructural limitations, rigid or
stringent regulations, political uncertainties, etc, may restrict the growth prospects and pose
a lot of hurdles. Some of the major challenges which Indian retail industry is faced with are:

 Competing with the international standards

 Indian retail industry is exposed to several systemic inefficiencies and problems with the
supply chain framework.
 Indian retail outlets operate in a constrained space of below 500 sq. ft., which is too small
as per the international retail outlet space standards.
 Growth in the retail industry has given rise to real estate related problems with increasing
requirements for setting up hypermarkets and supermarkets across various locations in large
scale.
 Problems related to the shortage or lack of availability of trained or skilled manpower.
 Frauds in the form of thefts, vendor frauds or administrative loopholes in the retail
industry, are a major cause of worry and this has posed several challenges before the
management.
 Infrastructural and logistics related issues.
 INTRODUCTION
ABOUT THE
ORGNIZATION
SELECTED FOR
THE STUDY
 “MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

7.1 BRIEF PROFILE OF COMPANY

V-MART PVT LTD

V-MART
Type Hypermarket

Founde 2002
d
Maide Ahmedabad
n store
Industr Retail
y
Produc Apparels, Non Apparels,
ts
Department, Grocery store

Key LALIT AGARWAL,

People
Madan Agarwal,
Hemant Agarwal

Punchl ‘Sabse sasta,Sabse Acha’

ine
Retail 8.20 Thousand Sq Mtr
Space
Advant tier II & tier III cities
age

Currently 108 outlets

9
 “MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

V-Mart is a complete family fashion store that provides its customers true value for their
money.

V-MART offer V-MART customers a great shopping experience each time they visit V- Mart
store by offering a vast range of products under one roof. Maintaining high standards in
quality and design, V-Mart offers fashion garments at down-to-earth prices and over a period
of time has emerged as the destination of choice for bargain hunters and the fashionable alike.
V- MART primarily operate in tier II & tier III cities with the chain of “Value Retail”
departmental stores. V-MART stores cater to the needs of the entire family altogether by
offering apparels, general merchandise and kirana goods.
“Price Less Fashion” is the main motto
through which we believe in providing the latest trends to the upwardly mobile Indians at the
best possible price.

10
 V- MART have 108 stores across 91 cities in 12 states and
union territories,with a total retail area of 8.63 Lac sq.ft (7.74 Thousand Sq Mtr.).V-MART
stores are located in prime states/cities such as Bihar, Chandigarh, Gujarat, Haryana, Jammu
and Kashmir, Madhya Pradesh, New Delhi, Punjab, Rajasthan, Uttarakhand and Uttar
Pradesh. V-MART are among the pioneers in setting up modern ambiance stores or large retail
malls across various small towns and cities like including Sultanpur, Ujjain, Motihari, Faizabad
and more.
i. ORIGIN OF V-MART
First incorporated as Varin Commercial Private Limited
under the Companies Act in 2002 in West Bengal. Then in 2003, we opened V-MART
maiden store in Ahmadabad (Gujarat).
In the Year 2004 we have opened V-MART first store in capital city, New Delhi.
Further in 2006 V-MART have crossed 1 lac sq.ft. retail space and subsequently renamed to
V-Mart Retail Private Limited.
In the year of 2008, V-MART hit the base by registering V-Mart Retail as a public limited
entity and also crossed the turnover of 1,000 million Rs. As the time passes by we took the
shape of a renowned family brand that caters the needs of whole family by offering high
quality retail products.
Along with growing customers, we achieved a turnover of over Rs 2,000 million in 2011-12 In
the Year 2012 V-MART have crossed the retail space of 5 lac Sq. Ft.
2013 - V-Mart Retail Ltd has opened a new store located at F.D.R.A Plaza, Opp. Sanjay
Cinema, Malipur Road, Shahzadpur, Akbarpur, Uttar Pradesh. -V Mart Retail has opened 86th
Store at Jhansi, Uttar Pradesh. -V Mart Retail has opened 65th Store at Varansi, Uttar Pradesh.
-V Mart Retail Opening its 84th Store at Fatehpur, Uttar Pradesh.
2014 -V Mart Retail has Opened 92nd Store at Patna City, Bihar. V-Mart Retail has
opened 97th Store at Ranchi, Jharkhand.
 V-MART Business Verticals

V- MART business can be classified in three business verticals:

(i) Apparels,
(ii) General Merchandise, and
(iii) Kirana Bazaar.
V-MART stores are “Mini Hyper Stores” retailing apparels, general merchandise as well as
kirana and “Family Fashion Stores” which are focused on apparels and general merchandise.
V-MART business verticals are further divided as follows:
 V-MART apparels business vertical includes the following
divisions: apparels and accessories for :
 men,
 women,
 boys
 girls
 infants.

V- MART general merchandise business vertical includes the following divisions: Non-
Apparels and Home Mart. The Non-Apparel division has the following segments:
 footwear
 books
 stationery
 toys
 games
 purses
 clutches
 fashion jewellery
 bags
 luggage.

The Home Mart division consists of the following segments :

 home furnishing,
 kitchenware,
 crockery
 gifts and novelties.

V-MART Kirana Bazaar business vertical, includes the following segments:

 FMCG products,
 Packaged food items,
 Beauty and
 Personal care,
 Home care
V-MART business is based on the primary concept of “value retailing” and guided by V-
MART principles “Sabse Sasta Sabse Accha” and “Price Less Fashion”, following which v-
mart aim to provide the latest fashion trends in apparels and non apparels to the entire family
with an added focus on demands of the youth and Young Families. As a complete family
departmental store, we also retail a wide range of products at affordable prices through V-
MART Kirana Bazaar vertical.V-MART source its products, including private labels, directly
from the regions where such products are widely
available or manufactured, to minimize V-MART procurement costs and offer quality
products at such costs. V-MART
strong sourcing capability is backed by an efficient logistics network, which is supported by
strong IT
infrastructure, systems and processes, thus enabling us in achieving V-MART concept of
“value retailing”.
 V-MART journey over
the years

2 002 • Incorporated as Varin Commercial

Private Limited

2 003 • Opened its maiden store in the state

of Gujarat

• Opened its maiden store

2 004 inNew Delhi
• Changed name from Varin Commercial Private Limited to
2 006 V- Mart RetailPrivate Limited.
• Crossed an aggregateof 100,000 square feet ofretail space.

• Converted into a public limited company.

2 008 • Investment in Equity Shares by Naman Finance, a part of the

Aditya Birla Group.
• Investment by DB Corp Limited

2 011 • Achieved a turnover of over H2,000 million inFiscal 2011.

• Declared a dividend of 4 per cent for Fiscal 2011.

• Declared a dividend of 4 per cent for fiscal 2012.

2 012 • Stores extended to more than 50 cities. 153,252 ESOPs
were granted under the V-Mart ESOP Scheme 2012.
• Crossed 500,000 square feet in retail space.
• Pre-IPO placement of 12,50,000 Equity Shares.

2 013 • Public Issue of 44,96,000 Equity Shares.

• Public issue oversubscribed 1.2 times.
• Attracted marquee institutional and HNI investors. Declared
dividend of 10 per cent.
• Opened 23 new stores in FY 13-14 with the retail space of 1.90
lac square feet.

2 014 • Strengthened supply chain, capability building and investment in

infrastructure.
• Footfall increased by 31.58%, from 115.29 lac to 151.70 lac in
2013-14
VISION /MISSION OF COMPANY

Vision statement of V-MART

“Create value and make our ecosystem proud”

To uphold and contribute to the realization of a sustainable society by balancing our business
activities with nature using the resources we have in making a real and sustainable difference.
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.

Mission statement of V-MART

• Care for customer aspirations

• Discover and nurture talent

• Sustain ethical growth

• Harness vendor relationships

We shall deliver everything, everywhere, every time for

every Consumer in the most profitable manner.
DETAILS OF V-MART PRODUCT
 OVERVIEW OF VISHAL MEGA MART

V I S H A L

VALUE INCREASE SHIPPING HYPERMARKET AFFORDABLE LOW PRICE

PUNCHLINE:-

ABOUT THE ORGANISATION

Vishal Retail Ltd, is one of the leading player in the Indian retail industry, is a lead the way in
discount retailing and is focused on tier II and III cities in the country. It has a strong presence
in manufacturing and retailing of readymade garments (apparels) retailing of non-apparels and
a large variety of FMCG products. Vishal Mega Mart is India’s largest Fashion-led
hypermarket chain with a footprint of over 175 stores, cumulative trading area in excess of 3
million square feet, in over 110 cities and towns across India.

Vishal is sharply focused at the needs of consumers in Apparel, General Merchandise, Grocery
and Personal Care in Tier-1, Tier-2 and Tier-3 cities and towns and is dedicated to offer the best
value and choice to its millions of customers.

Vishal offers clearly differentiated value to customers in the following product categories:

 Fashion: Fresh, trendy and affordable fashion comprising latest Apparel, Footwear & Lifestyle
accessories collection across Men’s, Women’s & Kid’s.

 General Merchandise: Catering to all the household needs such as Kitchen-ware, Home
Furnishings, Luggage & Travel Accessories, Home/Kitchen Appliances, Toys & Sports etc. at
best prices
 Grocery and Household Needs: Catering to all daily needs with an extensive Grocery & Staples,
Packed Food, Branded Personal Care and Household Needs products

Vishal started as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today
a conglomerate encompassing 117 showrooms in 75 cities / 20 states. India’s first hyper- market
has also been opened for the Indian consumer by Vishal. Situated in the national capital Delhi
this store boasts of the single largest collection of goods and commodities sold under one roof in
India. The group had a turnover of Rs. 1463.12 million for fiscal 2005, under the dynamic
leadership of Mr. Ram Chandra Agarwal. The group had of turnover Rs 2884.43 million for
fiscal 2006 and Rs. 6026.53 million for fiscal 2007. The turnover of the company for 09-10 was
Rs.1105 crore. The group’s prime focus is on retailing. The Vishal stores offer affordable family
fashion at prices to suit every pocket.

CORPORATE PROFILE

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more than 700 imported
machines that have a capacity to manufacturer 150000 pieces a month. The factory occupies
80000 sq ft of covered space. The Vishal group indirectly gives employment to more than a 1000
people. These people work in Ancillaries that supply finished goods to the company. Vishal’s 10
ware houses cater to 51 showrooms in 39 cities. It is covering about 1282000 sq. ft. in 18 states
across India. Our loyalty programmes gives the Indian consumer of being rewarded every time
he/she makes a purchase at any of its stores anywhere in the country. Consumers can make
purchases at any store and accumulate points at a central level. These points are redeemable at
any of our stores. One can accumulate points even when a purchase is made while traveling and
can redeem points at any store. So no matter where you are in India you can partake the
our loyalty programme.

Some of the key features of retailing include:

 Selling directly to customers without having any intermediaries

 Selling in smaller units / quantities, breaking the bulk
 Present in neighborhood or in the location which is quite convenient to the customers.
 Very high in numbers
 Recognized by their service levels
 Fitting any size and or location
It is assumed that due to the entry of a number of retail outlets in the urban and semi urban
areas, the mindset of the existing customers have undergone drastic changes. Besides it is also
reported that the traditional retailing such an age old Grocery shops face direct competition
with the organized retailing sector. In some parts of the country, it is reported that the
traditional retails are resisting the entry of organized shopping malls. For instance the
traditional retails of Bhubaneswar with the active support of the consumers at large didn’t
allow reliance Fresh to start outlet initially.

THE FOUNDERS:-

Mr. Ramchandra Mrs. Uma Mr. Surendra

Agarwal Agarwal Agarwal

Mr. Ram Chandra Agarwal, Chairman & Managing Director

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

Mrs. Uma Agarwal, Executive Director

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

Mr. Surendra Kumar Agarwal, Executive Director

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

VISHAL Apparels Brand

Vishal Mega Mart is one of India’s fastest growing retail chains.. The chain currently has 172
company stores in 24 states / 110 cities in India. The Vishal brand is known for great modern
style for men, women and children. Vishal offers high level fashion styling. Since 1986, our name
has been synonymous with quality, value and fashion integrity. We offer an unparalleled
collection of clothes for the entire family. Each garment is hand selected for quality and
contemporary styling. Vishal manufactures majority of its own garments and out sources some
under its direct quality supervision. This enables us to offer the lowest possible and most
reasonable prices. Our goal is to provide a range of fashion wear to suit every pocket. Our
product mix represents the most current fashion trends in tops, bottoms, formals and
accessories for men, women and kids. Our courteous staff will ensure that consumers get a
perfect fit.

THE POPULAR BRANDS OF VISHAL MEGA MART ARE:-

Zeppelin : Mens Shirts & Trousers

Fizzy Babe : Ladies & Kids Girls

Kitaan Studio : Mens Shirts & Trousers

Jasmine : Ladies & Kids Girls

Blues & Khakis : Mens Trousers

Zero Degree : Kids Boys

Paranoia : Mens Shirts & T-Shirts

Soil : Mens Shirts

Chlorine : Mens Shirts

Massa Bay : Mens Trousers & Bermudas

Fume : Men’s Shirts, T-Shirts, Under Garments

 VISION AND MISSION

MISSION STATEMENT:-

We shall deliver everything, everywhere, every time for every Consumer in the most profitable
manner.

VISION STATEMENT:-

We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development.
 MANAGEMENT OF TECHNOLOGY, INNOVATION AND CHANGE

Technology is important to cut costs, improve efficiency, providing value to customers and
increasing the customer experience. IT solutions help in synchronizing activities across various
verticals such as procurement of inventory. Securities from both external and internal threats
are also important when the scale of the operations increases. Most of their critical functions
such as Supply Chain, Operations, Finance & Accounts, and Customer Loyalty Program &
Human Resources are linked through a computer network. This has enabled them to reduce
their time to market and respond to the changing customer requirements. This has also helped
them reduce their costs of operations through both, reduction in wastages and missed
opportunities as well as a consequent reduction of the overall costs of operations.

VRPL are focused on acquisition and implementation of advanced information technology

systems, processes and business applications in order to handle all store operations including
inventory management and billing. VRPL office processes are also computerized which support
procurement, supply chain logistics, distribution centers management and inventory control. All
the locations are connected through company-wide virtual network connection which helps to
efficiently manage their network of outlets throughout the country.

VRPL believe that their business requires efficient management and storage of data and
information to utilise for business analysis, research and forecast. Based on VRPL’s existing
information technology systems, they are able to generate detailed daily reports covering the
various aspects of their business such as division wise sales per store, inventory movement and
position at stores and distribution centers and generation of purchase and delivery orders.

In August 2005, VRPL had entered into a software end-user license agreement with Systems,
Applications and Products in Data Processing Private Limited (“SAP India”) for grant of a non-
exclusive and perpetual license to VRPL to use the SAP software, documentation and other
information related thereto. SAP for Retail provides an integrated technology platform for
retailers and a one point solution for supporting and managing different business models such
as owned stores, franchise stores, shop n shop concepts. Strong business decision and analytical
capabilities have enabled retailers of all sizes the power to make the right decisions quickly and
profitably.
Beginning with a computerized cash memo, to use FoxPro for operations & accounting and,
implementation of a complete ERP from JDA (J. D. Armstrong Software Group), they have
gradually extended the Use of technology in their various areas of operations. In order to
increase the speed and traceability to the supply chain management Vishal Mega Mart
introduces Bar Code Technology. Bar code is tried and tested technology—the “no-brainer”
choice for identifying items in the supply chain. Yes, it does have short comings in that applying
it means that everything has to be in line of sight because light is used to capture and read the
bar code. But as goods are handled either by humans or machines, the goods are always visible,
as are their labels—labeling standards mean that it is virtually impossible to not see the label
and its bar code. This means that some form of scanner is used—the range of available
technology is broad—either by an operator wielding a hand-held device or by a machine-
mounted or fixed-position scanner.

Beyond the bar code is RFID (radio frequency identification) where a chip within a tag carries
information and is read using radio waves. Vishal Mega Mart uses the latest technology to
improve its performance Quality as well as Quantity Wise. Bar code scanners are very
sophisticated devices these days. Functionality and reliability is extremely important. Vishal
Mega Mart also uses CCTV to monitor its stores. Various CCTV’s are being installed in a store,
with a room where the entire functioning taking place in a store can be monitored by a human
operator.

VRPL have partly implemented their information technology set up and are currently in the
midst of completing the process of upgrading their information technology set up and have
entered into an agreement dated September 6, 2005 with Tata Consultancy Services Limited for
providing information technology services including implementation of more advanced ERP
applications such as SAP, rendering services inter alia for management information system on
reports related to stock management, receipt processing, picking and packing, project systems,
merchandise assortment management, pricing and promotion, sales, controlling and financial
accounting.
 Management Information Systems (MIS)

They have strong MIS capabilities that make use of their technological investments to generate
valuable insight for them and help them in improving their operations, as well as in enhancing
their speed of response to what the customers want. They are thus able to monitor their
performance on a day-to-day basis, across stores, departments and product categories and
compare the same with other stores as well as across periods. This helps them take corrective
action on a timely basis, and optimize their stock. They are currently using Business Objects to
analyze data related to the buying trends of their loyalty customers.

Following are the table which shows the different software used by the organization in the
organization activities, for customer transaction & for employees working in the organization.

1. “JDA ERP” software

Functional Area:

 Merchandising Buying,
 product ordering, Receipt
 confirmation, Stock
 transfer, Inventory
 Management, Sales
 Merchandise event

Comments: JDA is one of the leading ERP systems used by many retailers for multiple business
models in regards to retailing. The system is fully integrated and takes care of the supply chain
from a manufacturer to the end customer by using back-end and front-end systems like MMS
(Merchandise Management System) & WinDSS (Windows Distributed Stores Systems).

2. “Oracle Financial” software

Functional Area:

 Financial Accounting
 Comments: Completely integrated with their retail ERP- MMS, allows them to get online
integrated financials.

3. “RAMCO HRMS” software

Functional Area:

 Human Resources.
Comments: Their system supports Personnel Management, Payroll Management, Employee
Benefits Management, Training Management and Executive Information.

4. “WMS” software
Functional Area:

 Distribution and Logistics.

Comments: WMS enable the space planning and also integrated SKU location which
enable faster picking and putting of merchandising.

5. “Arthur Planning” software

Functional Area:

 Merchandising Planning.
Comments: An integrated planning and decision making tool.

6. “Microsoft Exchange” software

Functional Area:

 Internal/External communication.
Comments: Enterprise wide mailing solution.
PRODUCTS OF VISHAL MEGA MART

PRODUCTS

 FOODMART
Beverage

Cooked Indian

Cooked Chinese

Drinks

Fruits & Vegetables

 FOOTWARE
Boys Girls

Shoes Slippers

Sandals Sandals

Ladies Men’s

Shoes Shoes

Slippers Slippers
 HOUSEHOLD
Acrylic Ware Copper Steel
Dinner Set Jug Cake Server
Glass Ware Thermo Ware Porcelain
Home Aids Pressure Cooker Non Stick
Floor Wiper Cooker Handi
Sanitary Brush Pressure Pan Dosa Tawa
Cup Tiffin Cup & Saucer
General Plastic Electrical App. Bone China
Goods
Coffee Mug Chopper Soup Set
Bucket Microwave Oven Dessert Set
Lemon Set Container

 LADIES ACCESSORIES
Personal Items Nail Polish Cosmetics

Cap(LCA) Necklace Lip Gloss

Socks(Las) Ring

 LIFESTYLE
Time Zone Opticals Gifts & Novelties

Ladies Wrist Ladies Sun Glass Flower Vase

Watch
Mens Wrist Watch Mens Sun Glass Key Chain

Mens Accessories Electric & Electronics Perfume/Deo

Belts Battery(ABT) Spray

Wallets Calculator(EEC) Deo

 GARMENTS
MEN

Upper Lower

Shirt Casual Jeans(MP)

Shirt Formal Cotton- Trouser(MPC)

Ethnic & Sports Winter Wear

Night Suits Suit(WMC)

T-Shirts Blazer (WMB)

Dupatta Windcheater

Sherwani Jacket

LADIES

Upper Lower

Kurta Pants Jeans

Skirt Top Capri

Ethnic Winter Wear

Nighty Jackets Track Suit

Lancha Stawl Salwar Suit

Sharara Blazer
BOYS
“MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

Upper Ethic
Shirt Formal Kurta Pyjama

T-shirt Sherwani
Lower Sets Winter Wear

Jeans Night Suit

Bermudas Baba Suit

Blazer Jacket

GIRLS

Lower Winter Wear

Hot Pant Hipster Set

Skirt Jacket

Upper Ethnic

Tops (GWT) Sharara Frock (GFK) Lancha

INFANTS

Garments Accessories

Hot Pant Bed Sheet

Frock Under Garments

Baba Suit Socks

34
 “MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

 HOME FURNISHING
Drawing Room Bedroom

Door Mat Bed Sheet

Carpet Pillows

Curtains Pillow Cover

Kitchen Bathroom

Apron Bath Mats

Kitchen Napkin Towel Gift Sets

 SPORTS & FITNESS

Indoor games Outdoor games

Basket Ball Cricket Bat

T.T. Bat Football

Boxing Kit Lawn Tennis

Swimming Costumes Tennis Racket

Water Ball Tennis Ball

Fitness Equipment. Personal Gym

 STATIONERY
Paper Mart Exam Board Office File

Diary Clay Punching Machine

Party Stuff Balloons Ribbons

35
 TOYS & GAMES
Soft Toys Dolls Cycle & Scooters

Musical Toys Barbie Doll Cycles

Non-Musical Other Dolls Scooters

Board Games Infant Toys Video Games

Wooden Blocks Teether T.V. Video

Puzzles Swing hand Game

 TRAVEL ACCESSORIES
Luggages Portfolio Bags

Suitcase Shoulder- Bags

Pouch & Cases Executive -Bag

Waist Pouch School Bags

BRIEF INTRODUCTION OF DEPARTMENT
OF ORGANIZATION UNDER STUDY
 CORPORATE STRATEGY OF V-MART REGARDS TO
MARKETING
PROMOTION STRATEGIES

Sales promotion and advertisements are the two promotional strategies which V-MART
adopts. Prices of every goods are shown during any promotion session to aware the customer
about the market price and V-MART offered prices

Some of the examples of the sales promotion adopted by V-MART are:

 Price-off offer:

 Discounts offer

 Offer on bulk purchase

 Buy 2 get 1 free offers.

 Festive offers.
MARKETING STRATEGY OF V-MART

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

 Learning who your customers are and what they want.

 Learning how to reach your customers and how frequently you should try to communicate
with them.
 Learning which advertising appeals are most effective and which ones get no response.
 Learning the relative success of different marketing strategies, thus improving return on
investment.
 Learning how not to repeat your mistakes.
V- Mart has been the pioneer of retail revolution. Its first fight was against local ‘Kirana’
stores. The task was to change the mindset of consumer to bring about changes in their shopping
patterns. It wanted people to do bulk shopping for their monthly ration instead of going to the
shop each week.

The various marketing strategies adopted by V-Mart are:

 Regional cluster based expansion and penetration

(a) Enhancing brand visibility
(b) Understanding customer preferences
(c) Better utilization of human resources
(d) Effective implementation of marketing activities
 PROMOTIONAL EVENTS –Free eye checkup ,blood donation campaign.
 Dedicated focus towards increasing same store sales growth.
 Cross promotion through “Intelligent Marketing”
 Increase in customer loyalty.
 Continue to invest in IT infrastructure.
 Foray into e-commerce and start our online retail portal.
 Continue to provide training to our employees and invest in human capital.
 Hiring people with disability by joining hand with SARTAK.

The various marketing strategies adopted by V- Mart are:

Product
V- Mart offers a wide range of products which starts from apparels to food items, footwear to
home furnishing, , child care products to toys, watches, drinks etc. In pursuance of their
business plan to diversify their portfolio of offerings, FMCG products play a key role. FMCG
products are usually meant to fulfill the daily needs of consumers and therefore, V- Mart believe
retailing of FMCG products will bring customers to their stores on a frequent basis and this
mayin-turn lead to consumption of their apparels. V-Mart have a number of labels for apparels
such as

Price
V- Mart promises its consumers the lowest available price. The concept of psychologic-al
discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. V- Mart also caters on Special
Event Pricing (Close to Diwali, Christmas, and New Year etc.). Selling combo- packs and
offering discount to customers. The combo-packs add value to customer. Through Bundling,
they also reduced the price of the products. The efforts of V-Mart retail business are targeted
towards families having total income which can be classified under the “lower middle” and
“middle” income groups. V-Mart follow uniform pricing policy across their stores in respect of
private labels and non-branded products sold by them. This enhances brand loyalty,
encourages customer confidence and results in operational convenience. In relation to the
other products, the prices may vary between stores on account of state-specific taxation and
vendor policies.
Place
V-Mart stores are located in 92 cities in 108 outlets. V-MART has presence in almost all the
major Indian cities. They are aggressive on their expansion plans. V-MART Retail targets cities
with urban population of 1 million people or above or can be classified as Tier-2 and Tier-3
cities. In Tier-1 cities, the company opens retail outlets on the outskirts, rather than the prime
area. Its target market includes people with middle income and lower income levels. This
enables the company to overcome competition to some extent due to its first mover advantage
(as competitors have relatively less space in tier-2 and tier-3 cities) and helps to lower rental
cost. As at 3Q FY08, 78% of the company’s 82 stores are in Tier-2 and Tier-3 cities. The
company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1 cities at 80:20.

Promotion
Advertising has played a crucial role in building of the brand. V-Mart advertisements
are mainly seen in print media i.e. newspapers, Television with in advertisement, and
sometime road-side
billboards.Mart category management system is used to plan promotional schemes. They laun
ch promotional schemes weekly. Apart from general sales promotion, the category manager fo
rmulates promotional plans for ‘slow movers’. In addition, to promote sales, they focus on
layout of the stores and positioning, presentation and display of merchandise, in order to appeal
to the customer

People
V- Mart Retail has been established by Mr. LALIT AGARWAL, a first generation
entrepreneur.. The salient features of staff of VM are : Monthly,weekly & daily sales targets
are communicated to the staff & efforts are made to consistently achieve the set targets.-
Employees are motivated to think out-of-the-box. Retail sector is in growth stage,so staffs is
empowered to take innovative steps.-Multiple counters for payment, staff at store to keep
baggage and security guards at every gate, makes for a customer-friendly atmosphere. VM
motivates & retains store staff & maintains a positive work environment. -Well-dressed staff
improves the overall appearance of store.

Process
VM adopted the business model to run their activities smoothly. This process includes four steps
as follows: Manufacturing Capacity; Strong Logistics; Products; Retailing The goods' dispatch
and purchasing area has certain salient features which include: --Multiple counters with trolleys
to carry the items purchased.-Proper display / posters of the place like (Kids Wear, Grocery,
and Stationary etc.Three Layer Security Checks.-No. Of Parallel Billing Counter -Retail
Exchange Software Solution – PRIL-Integrated With SAP & ERP

Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system
and available facilities.-Infrastructure-Stand Alone Commercial Building-Clean, Air-
conditioned outlet-Equipment – computer, BCR, Desk etc State of Art.
 SWOT ANALYSIS

Strength:

 High Brand Equity in evolving retails markets.

 POP to increase the purchase.
 One stop shop for variety of products, increasing customer time and available choices.
 Understanding of the ‘value retail’ segment.
 Garment sector of the V-Mart is much more superior to other retail stores.
 It segments on middle and lower middle income groups.
Weakness:
 Unable to meet store opening target so far.
 Falling revenue per square feet.
 Employees behavior is not professional.
 Daily customers footfall is very less around 200 to 300 average.
 Inexperienced and unskilled management team except managers.
 Supply chain management is quite slow.
 No brand awareness for the product.
 Lack of proper extraction of work from staff.
 Need to include more assortment & varieties of the same item.
 Need to provide more offers/ discounts on FMCG in comparison of Big bazaar, Reliance
Fresh, Easyday & Vishal Mega mart.
 Need to improve store layout according to customer facility.

Opportunity:
 Increasing customer satisfaction and our base of loyal customers
 Emphasis on Backward Integration.
 Expansion of FMCG.
 Continue to upgrade information technology systems and processes
 Continue to train employees and seek entrepreneurship from employees.
 To increase the customer satisfaction by providing different variety of products.

Threat:
 Global big players planning to foray into market.
 Government policies are not well-defined in India.
 Unorganized retail market of India.
 Independent small stores.
 Demographic Changes.
 Vishal Mega Mart, Reliance fresh, Easy day & Big-Bazaar.
 Overseas group entering the market.
 Increased competition in the domestic market.
 “MARKETING STRATEGY OF V-MART AND VISHAL MEGA MART :- A COMPARATIVE STUDY”

MARKETING STRATEGY OF VISHAL MEGA MART

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

 Learning who your customers are and what they want.

 Learning how to reach your customers and how frequently you should try to communicate
with them.
 Learning which advertising appeals are most effective and which ones get no response.
 Learning the relative success of different marketing strategies, thus improving return on
investment.
 Learning how not to repeat your mistakes.
Vishal Mega Mart has been the pioneer of retail revolution. Its first fight was against local
‘Kirana’ stores. The task was to change the mindset of consumer to bring about changes in their
shopping patterns. It wanted people to do bulk shopping for their monthly ration instead of
going to the shop each week.

The various marketing strategies adopted by Vishal Mega Mart are:

Product
Vishal Mega Mart offers a wide range of products which starts from apparels to food items,
footwear to home furnishing, crockery to sport items, child care products to toys, watches,
drinks etc. There are many in house brands promoted by Vishal Mega Mart. In pursuance of
their business plan to diversify their portfolio of offerings, FMCG products play a key role.
FMCG products are usually meant to fulfill the daily needs of consumers and therefore, VRPL
believe retailing of FMCG products will bring customers to their stores on a frequent basis
and this mayin-turn lead to consumption of their apparels. VRPL have a number of private
labels for apparels such as Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier
Women and Roseau.

45
 Price
Vishal Mega Mart promises its consumers the lowest available price. The concept of psycholog
ic-al discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart also caters
on Special Event Pricing (Close to Diwali, Christmas, and New Year etc.). Selling combo- packs
and offering discount to customers. The combo-packs add value to customer. Through
Bundling, they also reduced the price of the products. The efforts of VRPL’s retail business are
targeted towards families having total income which can be classified under the “lower middle”
and “middle” income groups. VRPL follow uniform pricing policy across their stores in respect
of private labels and non-branded products sold by them.
This enhances brand loyalty, encourages customer confidence and results in operational
convenience. In relation to the other products, the prices may vary between stores on account of
state-specific taxation and vendor policies.

Place
Vishal Mega-mart stores are located in 129 cities with 172 outlets. VMM has presence in almost
all the major Indian cities. They are aggressive on their expansion plans. Vishal Retail targets
cities with urban population of 1 million people or above or can be classified as Tier-2 and Tier-
3 cities. In Tier-1 cities, the company opens retail outlets on the outskirts, rather than the prime
area. Its target market includes people with middle income and lower income levels. This
enables the company to overcome competition to some extent due to its first mover advantage
(as competitors have relatively less space in tier-2 and tier-3 cities) and helps to
lower rental cost. As at 3Q FY08, 78% of the company’s 82 stores are in Tier-2 and Tier-3
cities. The company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1 cities at 80:20.
Promotion
Advertising has played a crucial role in building of the brand. Vishal Mega Mart advertisements
are mainly seen in print media i.e. newspapers, Television with Tina Parekh as there inadverti
sement, and sometime road-side bill-boards.
VRPL’s category management system is used to plan promotional schemes. They launch prom
otional schemes weekly. Apart from general sales promotion, the category manager formulates
promotional plans for ‘slow movers’. In addition, to promote sales, they focus on layout of the
stores and positioning, presentation and display of merchandise, in order to appeal to the
customer. In addition, VRPL have introduced, in association with SBI Cards & Payment
Services Private Limited, a co-branded credit card. VRPL’s propose
to continuously undertake such initiatives to increase the satisfaction of their customers. Vishal
Mega-mart started many new and innovative cross-sell and up-sell strategies in Indian retail
market. The various promotion techniques used at VMM include:-5 Din Ki Maha Bachat-2 din
Ki Maha Loot-Dhan-teras Dhamaal-Great Savings-Vishal Mega Mart Gift Voucher Rs. 1000.-
25% Off On All Items – Every Month-Discount Offers At Various Festive occasions-Grand
Winter Sale – 50% & 60% discount for 2 days-Paise Bachao Aandolan – 9 Din Ki Maha Loot-
Vishal Reward Plus: Consumers can make purchases at any store and accumulate points at a
central level. These points are redeemable at any of our stores.-Cross category promotions are
now catching up where discounts are being offered on grocery purchases, redeemable
against purchase of apparel and household products

People
Vishal Retail has been established by Mr. Ram Chandra Agarwal, a first generation
entrepreneur. He has been instrumental in expanding the business from an apparel store in
Kolkata to 82 value retail stores with pan- India presence. The salient features of staff of VMM
are : Monthly,weekly & daily sales targets are communicated to the staff & efforts are made to
consistently achieve the set targets.-Employees are motivated to think out-of-the-box. Retail
sector is in growth stage,so staffs is empowered to take innovative steps.-Multiple
counters for payment, staff at store to keep baggage and security guards at every gate, makes
for a customer-friendly atmosphere. VMM motivates & retains store staff & maintains a
positive work environment. -Well-dressed staff improves the overall appearance of store.-
Strong Recruitment Cell, 2,509 employees joined in 2009.-8500 employee Strength.

Process
VMM adopted the business model as shown in (Figure-9) to run their activities smoothly. This
process includes four steps as follows: Manufacturing Capacity; Strong Logistics; Products;
Retailing The goods' dispatch and purchasing area has certain salient features which include:
--Multiple counters with trolleys to carry the items purchased.-Proper display / posters of the
place like (Kids Wear, Grocery, and Stationary etc.).-Home delivery counters to be started
soon.-Three Layer Security Checks.-No. Of Parallel Billing Counter -Retail Exchange Software
Solution – PRIL-Integrated With SAP & ERP

Physical Evidence
It deals with the final deliverable or the display of written facts. This includes the current system
and available facilities.-Infrastructure-Stand Alone Commercial Building-Clean, Air-
conditioned outlet-Equipment – computer, BCR, Desk etc State of Art.
SWOT ANALYSIS

Strength:

 High Brand Equity in evolving retails markets.

 State-of-art infrastructure of Big Bazaar outlets.
 POP to increase the purchase.
 One stop shop for variety of products, increasing customer time and available choices.
 Understanding of the ‘value retail’ segment.
 Garment sector of the Vishal is much more superior to other retail stores.
 It segments on middle and lower middle income groups.
 Weakness:
 Unable to meet store opening target so far.
 Falling revenue per square feet.
 Employees behavior is not professional.
 Daily customers footfall is very less around 200 to 300 average.
 Inexperienced and unskilled management team except managers.
 Supply chain management is quite slow.
 No brand awareness for the product.
 Lack of proper extraction of work from staff.
 Need to include more assortment & varieties of the same item.
 Need to provide more offers/ discounts on FMCG in comparison of Big bazaar, Reliance
Fresh, Easyday & V-Mart.
 Need to improve store layout according to customer facility.

Opportunity:
 Increasing customer satisfaction and our base of loyal customers
 Emphasis on Backward Integration.
 Expansion of FMCG.
 Continue to upgrade information technology systems and processes
 Continue to train employees and seek entrepreneurship from employees.
 To increase the customer satisfaction by providing different variety of products.

Threat:
 Global big players planning to foray into market.
 Government policies are not well-defined in India.
 Unorganized retail market of India.
 Independent small stores.
 Demographic Changes.
 V-Mart, Reliance fresh, Easy day & Big-Bazaar.
 Overseas group entering the market.
 Increased competition in the domestic market.
 Literature Review
Several studies on apparel retail sector and usage of promotions are reported in the context of
developed markets. A brief overview is presented below:Indian organized retail industry is
poised for growth. Apparel sector in particular has a great opportunity with alignment of
Indian economy to globalised markets. With the widespread   use   of   sales   promotions-  
short   term   activities   which   provide   material inducements to consumers and trade it
becomes imperative for managers to understand such practices and understand challenges.  
India as an Apparel Retail sector has grown to accommodate and use sales promotion as an
important tool to push sales and more importantly create brand loyal customers.Retailers like
Lifestyle, for instance, has a loyalty programme called `The Inner Circle',while Pantaloons
offers a  `Green Card'  Rewards programmes, Westside has  `ClubWest' to woo the
customers.

Marketers use price oriented promotions such as coupons, rebates and price deals to increase
sales and market share, to entice trial, and to encourage brand switching. Gupta(198 8) 
suggests that  84% of  the sales increases due to promotion come from brand switching.  

Loyalty or continuity programs such as frequent user programs and shoppers' cards,which
reward consumers' repeat purchasing of a particular brand or at a particular outlet,have their
greatest value encouraging consumers with divided loyalty to purchase a given brand (Shimp
2000)

The   Indian   retail   industry   is   undergoing   major   revolutions.   Retailing   in   India  

isgradually becoming the next boom industry. The consumer buying patterns and behavior
are changing steadily. The growth of India's retail sector is not only limited to urban areas but
also growing in rural areas. In the next five years, it is expected that India's retail industry
will expand more than 80%. (Supriya Pal, 2008)

With the advent of modern format retailers and the growth of plastic cards, affluent
urbanIndian women are shopping like never before. They spend mornings browsing in stores
looking for deals or latest styles. It’s here that the role of sales promotion becomes
prominent.Indian shoppers are deal hungry and rely heavily on price deals, off the shelf
discounts and gift vouchers. In  the large urban centers, apparel retailers,  like Shoppers
Stop,Westside and Pantaloon have popularized loyalty cards, gift vouchers and price
deals.This sales promotion can be categorized as the new form of promotional activity which
the Indian Apparel industry is offering and making the best out of it. Shoppers stop for
instance has over 60% of its revenues from its “First citizen” card holders who are entitled
for various discounts and loyalty points.
This   highlights   the   importance   of   sales   promotions   and   Apparel   retailers   need  
to understand the critical role of sales promotions. Attractive promotions induces purchase
acceleration,   stockpiling   and   brand   switching   on   the   part   of   a   consumer   which
substantially reduces retailers financial and inventory risk and consumer’s psychological risk

Many studies  have been done in  the past to  analyze sales promotions and relative consumer
buying behavior

1. Kincade, Doris H.; Woodard, Ginger A.; Park, Haesun (2002) studied   Buyer–seller
relationships for promotional  support in the apparel sector which is critical for success.The
purpose of the study was to define promotional support categories offered to apparel retailers
by manufacturers, to identify the retailer's perceptions of the offering   frequency   and  
importance   of   the   promotional   support

2. Liu, Yuping, (2007) found out the Long-Term Impact of Loyalty Programs onConsumer
Purchase Behavior and Loyalty. The study found out that consumers27
who were heavy buyers at the beginning of a loyalty program were most likely to claim their
qualified rewards

3. An   Investigation  of  Consumer  Response  to   Sales   Promotions   in  

DevelopingMarkets: A Three-Country Analysis. Journal of Advertising Research | May
01,1998 | L., Lenard C.; Alden Huff Dana studied consumers' attitudes towards the use   of  
coupons   (a   price-oriented   promotion)   and   sweepstakes   (a   non-price promotion).  
The  models   were  designed   specifically  for   developing   or   newly industrialized
countries with collectivist cultures and were tested with consumers samples   from   Taiwan,  
Thailand,   and   Malaysia.   The   study   suggested   thatMarketing managers use price-
oriented promotions such as coupons, rebates, and price discounts to increase sales and
market share, entice trial, and encourage brand switching. Also the use of Non-price
promotions such as sweepstakes,frequent   user   dubs,   and   premiums   add   excitement  
and   value   to   brands   and encourage brand loyalty

In view of above research studies, the emergence of sales promotions in Indian retail segment
needs to be identified. This research will look into the aspect of sales promotional   activities
in   Indian   Apparel   Retail   segment.   Also   this   study   will encompass the promotional
strategies of major retail brands like Westside, Lifestyleand Shopper Stop among others. The
effectiveness of these sales promotion activities will be studied w.r.t increasing
sales/revenues as well as creating and building brand loyal customers.

retail sector probably is the most important sector of economy because it has to do directly
with consumer. It includes all stores, from kiosks and small groceries to supermarket chains
and shopping malls that sell products and services to final consumer for personal and
household use. The aim of this paper is to make an investigation of retail sector and its
business type. To gather the data, second resources has been used. A deeply scanning of
literature has been performed. According to the investigation, the retailing sector generally is
organized in two main groups: the retailing within the store and retailing out of the store.
Retailing within the store is classified according to different characteristics, but the most
important types of classification are those based on the form of the ownership, merchandise
and price. According to the ownership-based classification, the most important types are
independent stores, chain stores, franchising and leased department stores. According to the
merchandise-based classification the most important types of retailing are department stores,
supermarkets, specialty stores, convenient stores, superstores and retailer services. According
to the price-based classification, the most important types of retailing are discount stores,
factory outlets, category killers, off-price stores, warehouse clubs and hypermarkets.
According to the place-based classification the most important type of retailing are shopping
centers. The most important types of retailing out of the store are direct selling, direct
marketing and automatic vending machines selling.
Rama Venkatachalam  and Arwah Madan(2012) in their have highlighted on level of prices ,
quality of fresh groceries & availability of exotic fruits and vegetables, display & cleanliness
and hygiene, home delivery & credit facility provided by both the organized and unorganized
retailer. Change in customer preference has been noticed while shopping fresh grocery from
unorganized or organized retailers. The author has also mentioned that organized retailing is
doing the right things to sustain, survive and grow. 
 
According to Ms. Monika Talreja and Dr. Dhiraj Jain (2013) both modern and traditional
retailers will co-exist in India for some time to come, as both of them have their own
competitive advantages. The Kirana stores have a low- cost structure, location advantage, and
customer familiarity whereas organized retail offers a mixture of product width and depth
and a better shoppingexperience. Organized retailing is becoming a destination shop for
buying fresh fruit and vegetable.
 
Naganathan Venkatesh (2013) in his paper has mentioned overall forecast from different
researches have stated that retail growth will grow 15 to 20 percent over the next five years,
based on strong fundamentals of macroeconomic conditions of india and its younger
population rising disposable incomes and rapid urbanization. Key success factor for foreign
retail investors are the younger population of india’s who are under the age of 25, a huge
potential market is waiting to explore and the internet accessibility is also a key factor where
from rural to urban city everyone has the easy access to the internet. As many as 121 million
Indians have internet access, and more than half of them access the web via their mobile
phones.
 
Sanjay Manocha and Anoop Pandey (2012) has discussed modern retailing is not threat to
independent mom and pop stores as most of the consumers said that they never stopped
visiting Kirana store. Organized retailing is beneficial for India because it’s not alarming to
create conflict with unorganized stores but reshaping unorganized stores into nascent
organized stores. The author has also discussed the growth of modern retailing in india which
is not at a very fast pace.
 
Lakshmi Narayana k, Ajata Shathru Samal and P Nagaraja rao (2013) in their study
unorganized retailers in the vicinity of organized retailers are heavily affected in terms of
profit and volume. The factors which are attracting the customers towards unorganized
retailers are location convenience, goodwill, credit facility, bargaining, loose items,
convenient timings, and home delivery. 
 
Mitul Deliya, Bhavesh Parmar and Dr. K. K. Patel (2012) has focused in their study titled
impact of organized retailers on unorganized retailers, the finding suggest that there is a
decrease in no. Of footfalls of the customer visiting unorganized retail due to emergence of
more organized retailers .another finding of the paper suggest that majority of middle class is
buying from unorganized retailers.
According to Dr. Seema S. Shenoy, Dr. Sequeira and Dr. Devaraj, K. (2013) India as a
business opportunity for global retailers. The development of Indian retail has been discussed
in the paper. The organized sector current situation has been also concluded as growing at a
frenzied pace. From a simple activity of selling in small markets to a more sophisticated task
of bidding on-line, retailing has showcased several successful forms and facets. India has
been discussed as a young nation having 60% population within 35 years and a huge market. 
Sivaraman P. (2010) in his paper has the impact of organized retailing on unorganized
retailing has been focused. According to the author there are few important factors which are
measured by customers while shopping from any retail outlet like assortment of  the products
shop proximity , brand choices, price, store ambience, credit availability, store image, and
complements.  
M. Hameedunissa (2013) in his paper consumer psychology towards supermarkets has
focused how people’s thoughts, beliefs and perception influence consumer behavior. The role
of consumers psychology has been discussed in this paper that how it affects a consumer
towards buying from any outlet. 
Indian retail market opening more doors (Deloitte report) organized retail, which constitutes
8 per cent of the total retail market, will grow much faster than traditional retail. It is
expected to gain a higher share in the growing pie of the retail market in India. Various
estimates put the share of organized retail as 20 per cent by 2020. 
According to R.K. Srivastava (2013) retail in India and retail in South Africa has been
compared in the study. The finding suggests that branding of the retail store is actively
followed in South Africa but in India retailers perceives it as a part of business. Security
system on purchase & prevention of theft is good in South Africa than Indian system and it
has to be developed as a prime concern. The segmentation strategy for both the countries
retailers are somewhat matching which are on the basis of income and age
According to PWC report (2012) the driving forces for Indian retail industry are, higher
incomes driving the purchase of essential and non-essential products, evolving consumption
patterns of Indian customers, new technology and lifestyle trends creating replacement
Demand increase in rural income as well as urbanization, increase in easy access to credit
and consumer awareness, growth of modern trade format across urban, tier i, tier ii and tier iii
cities and towns and rapid urbanization and growing trend towards nuclear families
 Research Methodology

Meaning of Research

Redman and Mory define research as a “systemized effort to gain new knowledge.”
Some people consider research as a movement, a movement from the known to the
unknown.
Research is an academic activity and as such the term should be used in a technical
sense. According to Clifford Woody, research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis.

Objectives of Research

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden
and which has not been discovered as yet. Though each research study has it’s own
specific purpose but the research objectives can be listed into a number of broad
categories, as following

1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies with
this object in view are termed as exploratory or formularize research studies.
2. To portray accurately the characteristics of a particular individual, situation or a group.
Studies with this object in view are known as descriptive research studies.
3. To determine the frequency with which something occurs or with which it is
associated with something else. Studies with this object in view are known as
diagnostic research studies.
4. To test a hypothesis of a casual relationship between variables. Such studies are
known as hypothesis-testing research studies.
Method of data collection used in the research is PRIMARY DATA collection method

 Primary Data - QUESTIONNAIRE.

 Sample Size - 100
 Sample profile - Customer of V-MART and
Vishal Mega Mart (nakkhas branch) .
 Sampling technique - Simple random sampling.
 Research design - Descriptive research.
This research is conducted into an
issue or problem where there are few or no earlier studies to refer. The focus is on gaining
insights and familarity for later investigation. Here data is often quantitative and statistics
applied. It is used to identify and obtain information on a particular problem or issue.
Finally, casual or predictive research seeks to explain what is happening in a particular
situation.
In my project I have also used descriptive research for
secondary data because the main goal of this type of research is to describe the data and
characteristics about what is being studied and descriptive research is mainly done when a
researcher wants to gain a better understanding of a topic It is quantitative and uses surveys
and panels and also the use of probability sampling.

Secondary data-

 www.vmart.co.in ,
 www.myvishal.com
 Newspaper,
 journals.
 Research Design

A).Mode of data Collection

Information was collected through both primary and secondary sources.

Secondary Data: Any data, which have been gathered earlier for some other
purpose, are secondary data in the hands of researcher.
The data collected for this project has been taken from the secondary source.

Sources of secondary data are:-

 Internet
 Magazines
 Publications
 Newspapers
 Broachers

Secondary data-
 www.vmart.co.in ,
 www.myvishal.com
 Newspaper,
 journals.
Research Tool Used

Quantitative Research Method

Quantitative methods involve the collection and analysis of objective data, often in
numerical form. The research design is determined prior to the start of data collection and
is not flexible. The research process, interventions and data collection tools (e.g.
questionnaires) are standardized to minimize or control possible bias.  provides an
overview of quantitative data collection strategies.

Qualitative Research Method

Qualitative research is generally used to explore values, attitudes, opinions,

feelings and behaviours of individuals and understand how these affect the
individuals in question. Researchers using qualitative methods are concerned
with individuals’ perceptions of specific topics, issues or situations and the
meanings they assign to their lives. This kind of research is important for
generating theory, developing policy, improving educational practice, justifying
change for a particular practice, and illuminating social issues. It may also be
used to explain the results of a previous quantitative study or to prepare for the
development of a quantitative study.
Data analysis
Q1. Which retail market comes to your mind when you think of shopping ?

V-MART 34
VISHAL MEGA MART 43
OTHER 23

5
0
%
4 43%
5
%
4
0
%
34%
3
5
%
3
0
%
2 23%
5
%
2
0
%
1
5
%
1
0
%
5
%
0
% V-MART VISHAL MEGA MART OTHER

As per this study suggested that Vishal Mega Mart is still has market leadership in India because
43% of the people say they prefer Vishal Mega Mart.34% of the people say they prefer v-mart
for shopping while 23% people say they prefer other retail outlet for good shopping experience.
Q2. Which retail store do you use at present?

V-MART 34
VISHAL MEGA MART 43
OTHER 23

5
0
%
4 43%
5
%
4
0
%
34%
3
5
%
3
0
%
2 23%
5
%
2
0
%
1
5
%
1
0
%
5
%
0
% V-MART VISHAL MEGA MART OTHER

As per this study suggested that 43% people are using vishal mega mart and 34% people people
say they use v-mart retail outlet for shopping while 23% people say they prefer other outlets for
shopping
 Q3. Which mode has motivated your purchase for the particular brand?

a) Newspaper b) Television
b) Family and friends d) Others
Newspaper 33
television 26
Family and friends 19
others 22

22%
33%
newspaper
television
family and friends

19% other

26%

As per this study suggested that 33% of people are aware of the outlet from the newspaper,26%
people are aware from television,19%people are aware of different promotional activities from
the family and friends and 19% people said that they are motivated to purchase from the outlet
from other outlets.
Q4. Are you satisfied with the current purchase?

Fully Satisfied Somewhat Satisfied Not Satisfied

Fully Satisfied Somewhat Satisfied Not Satisfied

57 33 10

Sales
fully satisfied somewhat satisfied not satisfied

10%

33%
57%

As per this study suggested that 57% people are satisfied with there purchase where 33% of
people are not fully satisfied with there purchase and 10% of people are not satisfied with there
purchase.
Q5. From Which retail store you purchase in future and why?

V-MART 33

Vishal Mega Mart 54

other 13

V-MART VISHAL MM OTHER

13%
33%

54%

As per the study suggested that 54% of people will go with Vishal mega mart in future and 33%
of people will go with V-mart and 13% of people prefer other outlets in future.
Q.6. In the following scale how do you rate V-MART and Vishal Mega Mart on following
parameters? (1=excellent,2=v. good,3=good,4=average,5=poor)

Brands excellent V good averag poor

good e
1 V- 40 12 26 20 2
MART
VIS
2 HA 52 18 21 8 1
L
MM

60

50

40

30

20

10

EXCELLENT VGOOD GOOD AVERAGE

POOR
V-MART VISHAL MEGA MART
40 52
12 18
26 21
2 3
20 8

As per the study suggested that people are more satisfied with the vishal mega mart retail
outlet then V-mart.
Q.7.What you liked about that showroom?

Particulars Brand V.Go Goo Aver Po V.P

s od d age or oor
V- 70 10 18 1 1
Mart
1. Reach of outlet Vi
sh 75 14 10 1 -
al
M
eg
a
M
ar
t
V- 55 22 19 4 -
Mart
Availability of Vi
2.
Designs sh 69 27 4 - -
al
M
eg
a
M
ar
t
V- 4 18 22 35 21
Mart
3. Parking area Vi
sh 34 47 18 1 -
al
M
eg
 a
M
ar
t
V- 29 31 32 8 -
Mart
Special
4. Vi
offers like
sh 55 33 11 1 -
discounts.
al
M
eg
a
M
ar
t
V- 64 16 20 - -
MAR
Behavior/helpfuln
T
5. Vi
ess Of staff
sh 70 16 14 - -
al
M
eg
a
M
ar
t
 80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0

VISHAL MEGA VISHAL MEGA

V-MART V-MART
MART 75 MART
v.good 70 14 v.good 55 69
good average poor 10 10 good 22 27
v.poor 18 1 average 19 4
1 1
poor 4
1
v.poor

Reach of outlet Availability of design

50 60
45
40 50
35
30 40
25
20 30
15
10
20
5
0
10

VISHAL MEGA 0 VISHAL MEGA

V-MART V-MART
MART MART 55
v.good 4 34 v.good 29 33
good average poor 18 47 good average poor v.poor 31 11
v.poor 22 18 32 1
35 1 8
21

Parking area special offers like discounts

 80
70
60
50
40
30
20
10
0
V-MART VISHAL MEGA MART
v.go 64 70
od
goo 16 16
d
aver 20 10
age
poo
r
v.po
or

Behaviour/helpfulness of staff

As per the study suggested that mostly customers of vishal mega mart are much more satisfied
with the different services provided to them where customer are not fully satisfied by the
services provided by V-mart like less parking area in comparision with parking space provided
by vishal mega mart.
Findings

 As per this study suggested that Vishal Mega Mart is still has market leadership in
LUCKNOW(nakkhas market) because 43% of the people say they prefer Vishal Mega
Mart.34% of the people say they prefer v-mart for shopping while 23% people say they prefer
other retail outlet for good shopping experience.
 As per this study suggested that 43% people are using vishal mega mart and 34% people say
they use v-mart retail outlet for shopping while 23% people say they prefer other outlets for
shopping.
 As per this study suggested that 33% of people are aware of the outlet from the newspaper,26%
people are aware from television,19%people are aware of different promotional activities from
the family and friends and 19% people said that they are motivated to purchase from the
outlet from other outlets.
 As per this study suggested that 57% people are satisfied with there purchase where 33% of
people are not fully satisfied with there purchase and 10% of people are not satisfied with there
purchase.
 As per the study suggested that people are more satisfied with the vishal mega mart retail outlet
then V-mart.
 As per the study suggested that 54% of people will go with Vishal mega mart in future and 33%
of people will go with V-mart and 13% of people prefer other outlets in future.
 As per the study suggested that mostly customers of vishal mega mart are much more satisfied
with the different services provided to them where customer are not fully satisfied by the
services provided by V-mart like less parking area in comparision with parking space provided
by vishal mega mart.
CONCLUSION

In the research we found that Indian retail industry is very complicated in nature because the
taste and preferences of the customers vary a lot in nature. The customers are very choosy in
nature; they are not ready to compromise with their requirements. The customers have lots of
option related to the choices. There are many competitors in the retail industry. So the sales
and promotion activity of the company is the only tool to attract the customers.

On the basis of different aspects of comparative analysis of both the

retail store V-Mart and Vishal Mega Mart it’s found that mostly above 50% of the people
prefer vishal mega mart due to availability of variety, ranges, design and many other
aspects.V-mart have different variety of products of different ranges for different age group
but is not able o develop good marketing image of there brand in customer mind.

But still the customers face some complaints such as:

 Low variety of products are available only and customization of products is not there.

 Prices are not mentioned at all places and at all products.

 Prices are not competitive as they are assumed to be higher when consumers are visiting
other retail outlets.

 Lack of space in the store while shopping and moving within a store.

 There is a long delay at the billing payment counter mainly because of less number of billing
machine.

 TO work effectively in the market and face the

challenges in the current marketing situation organization must have to adopt a very
efficient and good MARKETING STRATEGY.
 9.4 SUGGESTIONS AND RECOMMENDATIONS

 Company should try to increase publicity in and around 0-10 kms of V- Mart with the help of
different modes like local FM radio, print media, and posters especially when there are special
schemes for customers.

 V- Mart and Vishal Mega Mart should introduce various schemes periodically, say once in
forth nightly.

 It is suggested that the company should adopt aggressive marketing campaigning and
advertising during times of seasonal bulk items like wheat, oil, ghee, spices etc. and provide
fair discounts on bulk purchase.

 From the consumer perception evaluation of the store and services it is recommend that store
should maintain the quality level in each categories of product.

 Making stalls in corporate mela’s like trade fair, maybe beneficial to create brand image of its
product

 Company should provide regular training to their staff and aware him with the modern
technique of selling and customer dealing.

 A special discount may be given on purchases exceeding certain limits.

 There should be more number of billing machines at the billing counter..

 Constant reminder of discounts through pamphlets, speakers inside the store for inducing
consumers for impulse buying.

 Proper advertisement in press and outdoor to make V- Mart should be visible in the eyes of
consumers.

 Customer care service can be introduced.

 More branded products can be displayed in the store as people still prefer branded clothes
than offered by local vendors.

 Customization of clothing should be given an important consideration.

 Should provide more festival schemes and at proper time.

 9.5. LIMITATIONS OF THE STUDY

Although it would have been nice to conduct a perfect research study, but this study is
conducted under certain limitations, which were faced while doing this research. So it is highly
recommended to consider these limitations while going through the project study.

These limitations are as follows

 LIMITATION OF DATA

The statistical data regarding the city was not available to us on secondary source of data and
to generate such data on the primary source was a task, which cannot be achieved in such a
short time.

 LIMITATION OF TIME

The limitation of time was another constraint in the study as the study had to be conducted in
few months therefore many aspects have been left unexplored. Locating the target customers is
very time consuming. Research period is not just much enough to know fully about the Price
strategies & consumers perception about V-Mart.

 INHIBITIONS OF THE RESPONDENTS

The respondents did not reply the question with precision as they were busy with their own
work or they were not interested in taking part in such a research. Employees sometimes feel
hesitated while telling about their view about their marketing strategies.

Other Limitations are:-

 Sample size is limited due to the limited period allocated for the survey.

 Getting accurate responses from the respondents due to their inherent problem is difficult.
They may be partial or refuse to cooperate.

 Respondents may not be interested to give the data.

 Sometime respondents are not taking interest in such type of surveys therefore there is chance
that they might be giving wrong information.

 The respondents are free from all barriers so he/she can give his/her opinion which may not
be true in many occasions.
 10.BIBLIOGRAPHY

 V-Mart prospectus.

 Csr report, reviews.

 Journals etc.

 www.myvishal.com
 www.vmart.co.in
ANNEXURE
 QUESTIONNAIRE

Q1. Which retail market comes to your mind when you think of shopping ?

V-MART
VISHAL MEGA MART
OTHER

Q2. Which retail store do you use at present?

V-MART
VISHAL MEGA MART
OTHER

Q3. Which mode has motivated your purchase for the particular brand?

Newspaper
television
Family and friends
others

Q4. Are you satisfied with the current purchase?

Fully Satisfied Somewhat Satisfied Not Satisfied

Q5. From Which retail store you purchase in future and why?

A -V-MART B-VISHAL MEGA MART C-OTHER

 Q.6. In the following scale how do you rate V-MART and Vishal Mega Mart on following
parameters? (1=excellent,2=v. good,3=good,4=average,5=poor)

Brands excellent V good good average poor

1 V-MART

2 VISHAL
MM

Q.7.What you liked about that showroom?

Particulars Brands V.Goo Good Avera Poo V.Po

d ge r or
V-Mart
Reach of outlet
Vishal
MM
V-Mart
Availability of
Designs Vishal
MM
V-Mart
Parking area
Vishal
MM
Special V-Mart

offers like Vishal

discounts. MM
Behavior/helpfulnes V-
s MART
Vishal
Of staff mm