Cente For Management Development STD. Apes Project report on retail industry. On Comparative analysis of Lao ‘Submitted o: Submited bys Ravindma Arya sir ‘Chandan Kumar Singh Proff: CMD. PGDM (2! year) Modinagar, Ghaziabad Contre for management developmentCONTENTS, SN Topic Page no. 7 Executive Summary z z ‘Oveniews of industry 3 3 Retail meaning +s 7 Industry structars 6 3 ‘Company profile 72 6 ‘Objective oF study, wo 7 “Area under Feld research aT 8 Frac understudy in different formats 3133 9 ‘Some intemational and Indian retailers 3s 10 ‘Research methodology, 4954 ii Conclusions 35 a Questionnaires 36-6 5 Suggestions 6 cr imitations o 15 Bibliography %Executive Summary Inia is xlergoing # retail revolution from the unorganized to the organized sector, There are now modem retail formate such as ~hypermarket, supermarket ard mails, several international ‘companies such as Wal-Mart, Carrefour and Tesco are planning their entry and establishment into the Indian market while several domestic companies are setting up their retail setups, .¢ showrooms and large formate stores such as Reliance, Vishal;Tata and the whole ‘concept of shopping has altered in tems of formate and consumer buying behavior, ushering in ‘revolution in shopping in India \These trends indicates that retailing, as an industry has come into its own . According toa study by confederation of Indian industry organized retail sales in India were a mere RS.135 billion in 2012 but today with over 15 million outlets that provide employment to over 74 million people ay (P%of the population) the size ofthe retail industry stands at USD 350 billion to grow a compounded 30% over themext 5 years. is expected Retailing isan important infrastructure perquisite for modemizing India and can facilitate rapid ‘economic growth . Modemnization of all real sewvices would enable efficient delivery of goods and value added services to the consumer making a high contribution to the gross domestic product, This project fbeus on taking an in depth analysis of retail seenario and consumer trends as they are emerging and identify the various retailing models that would work, inthe Indian retail market. The analysis is done by looking at global retail trends vis-i-vis the ones in india The Carrent state of Indianretail industry charac understand the consumer buying behavior and what it foretils about the nature ofthe industry ‘To predict the kind of retail models that would work in India besides analyzing the existing ones «the attempt has been to predict to product potentially promising formats. sties and economics drivers of ehansIntroduction Retail consisis of the sale of goods or merchandise fom a fixed location, such as 8 department store, boutique or Kiosk, or by mail, in small or individu lots for direst consumption by the purchaser. Retailing may inelude subordinated services, such as delivery. Purchasers may be individuals or businesses In commerce, 2 "retailer buys go0ds or produets in lrge quantities ffom manufacturers or importers, either directly or through a wholesaler, and then sells smaller ‘quantities to the end-user, Retail establishments are often ealled shops or stores, Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary pat of their overall listribution strategy. The term “retailer is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power Shops may be on residential streets, shopping streets with few or no houses or in a shopping ‘mall. Shopping streets may be for pedestrians only. Some nes a shopping street has a partial or ull roof to protect customers from precipitation, Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products, Sometimes this is done to obtain ncessities such as food and clothing; sometimes it is done asa ree ional activity Recreational shopping often involves window shopping Gust looking, not buying) and browsing, and does not always result in a purchaseRetail Meaning Retail involves the sale of goods from a single point (malls, markets, department stores etc) dircetly to the consumer in small quantities for his end use. Ina layman's language, retailing is nothing but transaction of goods between the seller and the end user asa single unit (piece) or in small quantities to satisfy the needs of the individual and for his direct consumption. Example- Prashant wanted to purchase a mobile handset. He went tothe nearby store and purchased one for himself, Inthe above case, Prashat is the buyer who went to a fixed location (in this case the nearby store). He purchased a mobile handset (Quantity ~ One) to be used by him. An example of retail ‘The retailers purchase goods in bulk quantities (huge numbers) tobe sold to the end-users either directly from the manufacturers oF through a wholesaler ‘The Supply chain Manufacturers rmeriEnd‘+ Manufacturers - Manufacturers are the ones who are involved in production of goods with the help of machines, labour and raw materials. + Wholesaler The wholesaler is the one who purchases the gooes from the manufacturers and sells to the retailers in lange numbers but ata lower price. A wholesaler never sells goods direeily to the end users. ‘+ Retailer ~ A retailer comes atthe end of the supply chain who sells the products in small quant the end users as per their requirement and need. The end user goes o the retailer to buy the goods (products) in small quantities to satisfy his needs andl demands, The complete process is also called as Shopping,Industry structure ‘The organizational structure of a retail store will vary by the size and type of the business. Most tasks involved with operating a retail business will be the same. However, small or independent retail stores may combine many sectors together under one division, while larger stores create verious divisions for eack particular function along with many layers of management. For example, the small specialty shop may have all of ts employees under one category called Store Operations. A large department store may have a complete sta consisting of a manager, assistant manager and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each additional department, Inorder to define the store's organization, start by specifying all sks that need to be performed. ‘Then divide those responsibilities among various individuals or channels. Group and classify each task intoa job with a ttle and description. The final step is to develop an organizational char Retailing Structure The following is brief cutline Of some Of the divisions in a retail ofganization. ‘Owner/CEO or President Store Operations: Management, Cashier, Sales, Receiving, Loss Prevention Marketing: Visual Displays, Public Relations, Promotions Merchandising: Planning, Buying, Inventory Control Human Relations: Personnel, Training Finance: Accounting, Credit ‘Technology: information Technology ‘As the store grows andthe retail business evolves, the dynamics ofthe organization's structure will change too, Therefore itis paramount to redesign the store's organizational chart to support the decision-making, collaboration and leadership capabilities that are essential during and after ‘a growth period,Company profile Introduction of Vishal Retail Itd VISHAL Diao Wav as Vishal retail Ld isthe largest market retail chain in India with more than 175 stores in 24 states & 104 cities acrossindia, Retailing, in Eommerce, consists of buying goods or products in large ‘quantities from manufacturers oF importers, either directly or through a wholesaler, & then selling individual itsms or small quaaitis to the general publi or end user customers, usualy in 4a shop, also called stores, Retailers are at the end of supply chain that link manuftctures, wholessers, other suppliers and the final consumers, Marketers see retailing as a part of their ‘overall distritution stratezy. Manuféctured goods are worthless until they pass through acid test of retail distribution ‘The Vishal brand is known. for great modem style for men, women and children, Vishal offers high level fashion styling, Sine: 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 manvfactures majority of its own garments and cut sources some under its direet quality supervision. This ‘enables us to offer the lowest possible and most reasonable price. Vishal Mega Mart stores offer affordable family fashion at prices to suit every pocket, ‘The outlet retails Garments, Footwear, Home Fumishing, Household, Food & Non-Food Products, Ladies Accessories, Lifestyle, Hardware, Car Accessories, Techno & FlectrcalsUtensils, Sports & Fitness, Stationery, Toys & Games, Travel Accessories, Furniture, Sanitary Ware, Crockery, Consumer Durables, FMCG, etc. in almost all price ranges. ‘What sirted as a humble one store enterprise in 1986 in Kolkata (erstwhile, Calcutta) is today a ‘conglomerate encompassing 183 showrooms in 24 states / 110 cites India’s first hyper-maret 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 Inia, Vishal is one of fistest growing resiling groups in India, Its outlets eater to almost all price ranges. The showrooms have over 70,000 products range which fulfillsll your household needs, and ean be eatered to under ove root It is covering about 29, 90,146 sq, fin 24 states across India, Each store gives you intemational quality goods and prices hard to match, The cost benefits that is derived ftom the large central purchase of goods and services is passed on tothe consumer Vishal mart has been fortunate in having very eminent and honest men of vision and ‘reat talent as Board of Directors and Executives, The ever increasing profit figures ofthe Vishal depict the effcieney of the management. Discount and sever other developments in and around the organized retail trade (the 3% of the total retail trade) indieate the changing dynamics ofthe sector andthe way the business will ake shape in the years to come, For Ram Chandra Agarwal, MD, Vishal Mega mar, the discount war i just a component of the overall evolution process initiated by retailers. “We are concentrating on buying in volumes through eash purchase which sive us an edge. Ultimately, the convenience, value and variety given to customers will make @ wa supply chain, gay hendlng store inventory — the moder retail industry isa big affair. Then follow other aspects like positioning ofthe brand with api pricing, packaging and retail experience, understanding the customers, dealing with partners such as difference,” he says. Be it man 12 with hundreds of suppliers or ‘suppliers, mall developers and franchisees, However, ihe biggest challenge is saving bucks either through margins or rentals, so that there i profit even after the discounts. Though it reads as a ‘complete win-win situation, ved. is surely a tough target o be achi“Though org: ized retail is at its nascent stage, once the brands are established, the FMCG will if these FMCGs buckle up with retailers, the country will sce a slew of private labels coming in,” says Sahni. He adds, “These private labels have to deliver to their expeciations. Moreover, he for themselves ev will gradually end wp carving in the unexplored territories, including rural India imal adve iz oF promotionsl cos’s will further increase the margins." The Retailer's Assocation of India (RAD, an association of retalers lke Pantaloons, Piramyd, Shoppers’ Stop, Subhisha Trading, Food World Supermarkets, Hyper city Retail, Reliance Petro Marketing, et, hiss now asked all Indian FMCG eompanies t9 follow a July 1 deadline for barcoding their products. At present about 25% of Indian companies do not carry barcodés on their products. Industry experts insist that barcoding is just one of the upgrades that Indian FMCG companies need todo to cater othe demands of an organized real Seenario. Products available Vishal mega mart: Apparel and Accessories for Men, Women and CI ren, Sarees, Linens, Baby Accesories, Coumeties, Crockery Dress Materials Suting & Shining, Electrical Accessories, Electronics, Footwear, Toys, Home Textiles, Home Needs, Home Decor, Household Appliances, Household Plastics, Utensils & UtilitiesFUNCTIONAL DEPARTMENTS OF VISHAL RETAIL LTD, ‘The store operations are divided into various operations which are carsied out by the respective fmetional departments ADMINISTRATION ARTMENT. Admin department is divided into following sections: 1. Security se es: The security personnel are under contract basis. They are security staf working for vishal Retail India Ltd. The complete store security and movement tracking are under their control House Keeping: Their main duty is to look after the cleanliness and overall hygiene of the store. The admin manager creates checklists for the cleaning schedules and the team members work in accordance to those checklists, Checklists include cleaning the floor, JiNs, escalawrs, staircase, window panes, various shelves and display racks, AC ducts, Glass walls, trolleys, baskets, parking areas ete, 3. Packers: Proper packing of the sold goods is required before handing it over to the customer. Helpers to the cashiers are appointed to do this job. Packing the focd items, ‘tems to be handled with eare and other items oll separately is their job. 4. Loaders: Few people are appointed to load and unload merchandise from trucks and cautiously transfer them to the desired location in the store ;ndard operation and procedures: In this section various registers are maintained- A] Key movement register- The various store keys are maintained by different staff ‘members. These people have to make entries in their register regarding the keys they camry, 'B] Staff Value declaration register- Every stafT member while entering the store has todeclare the amount of cash with hinvher. This is done to minimize thefts within theC] Customer Footfall Report: This register is updated every hour. The total number fof customers that entered the store in that hour are counted and noted down in this 1D] Staff Purchase Register- Entries are made inthis register regarding the purchases ‘male by the siaff_ members in the store. 6] Staff Grooming Register- Entries regarding the appearance, personal hygiene, presenting self and dress code of the team members is made, A long checklist regarding staff grooming is referred to make these entiigs, MAINTENANCE AND FACILITIES DEPARTMENT ‘The functions of this department are- 1) To check the functioning of various items like Escalators, AC's, Frozen section, equipment’ te In ease oftheir malfunctioning, repairs have tobe carried out as soon as possible to censure proper store operation 2) To check and note the opening and closing electricity meter readings and prepare a ‘monthly statement 3) Ensure safeand consistent power supply atthe store 7), DEPARTMENT. ‘The software used on Retail Enterprise Manager(REM). In this all the information concerning the product like, name, category barcode number, MRP, discount rate, ret price ete are stored. Day opening and day closing are the important activities in REM, where REM will allow the users to start transactions for the day and freeze all document transactions made for the day respectively. All the ineremental stock balances will be loaded into REM at the day opening activity. The sales and collection data will be posted (o the staging server forthe Sap at the day closing activity. 25. Share with us - Customer feed back 6. In-store communication. transferring telephone calls 7.Free gifts 8.Sale of gift vouchers 9. Home delivery for food Store 10, Home delivery for electronies and furniture PRODUCT CLASSIFICATIONS Products andl services fll into 1wo broad classes based on the type of customers that use them: 1. Consumer products 2, Industrial products 1. Consumer products : Consumer products are products and services bought by final ‘consumers for personal consumption: Marketers usually classify these produets and services further based on how consumers go about buying them, Consumer products include convenience products, shopping products, speciality products, and unsought products. These products differ in the ways consumers buy them and therefore in how they are marketed, Convenience Products : are consumer products and services that 1 customer usually buys frequently, immediately, and with a miaimum of comparison and buying effort. Examples lude soap, candy, newspapers, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers red them,Shopping Products: are less-frequently-purchased consumer products and services. that customers compare carefully on suitability, quality, price, and style. When buying shopping products and services consumers spend much time and effort in gathering information and ‘making comparisons, Examples include furniture, clothing, used ears, major appliances, and hotel and airline services. shopping products marketers usually bute their products through fever outlets but provide deeper sales support to help customers in ther comparison efforts. Specialy Productare consumer products and services with unique characteristics or brand identification for which a signticant group of buyers is willing to make a special purchase effort, Example include specific brands and types of cars, high priced photographic equipment, designer clothes, and services of medical or legal specialists, A Lamborghini automobile, for example, is a specialty products because buyers are usually willing fo travel great distances to buy one, Buyers normally do not compare specially products, They invest only the time needed to reach dealer's ‘carrying the wanted products. 2. Industrial Products-Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought, If the same consumer buys the ‘same lawn mower for use ina landscaping business, the lawn mower isan industrial product. ‘The thre groups of industrial products and services include ‘Materials and parts, Capital items, and ‘Supplies and services,Material consist of farm products (wheat, cotton, livestock, fruits, vegetable) ete, and nat produets (fish, lumber ‘component materials (iron, yarn, cement, wires) a of 1d component arts small motors, tires, ude petroleum, iron ore). Manufactured materials and parts consi castings. Marketing strategies for various product: 1, Convenience Products: Price:convenience products are usually low priced goods, Distribution/Placethe distribution is widespread and the products are mide to be available Convenient locations are also very essential the promotion activities are usually mass promotion by the producer. 2. Shopping Products: Price: shopping products are usually high priced goss. Distribution/Place: the distribution is selective and there are fewer outlets, Promotion: the promotion activities are usually advertising and personal selling by both producer and resellers. Examples: televisions, furniture 3. Specialty Products: Price: specialty products are usually high priced goods Distribution/Place: the distribution is exclu veand there are fewer outlets per market area, Promotion: the promotion activities are more carefully targeted these oetivites are carried on by both producer and resellers, Examples: Rolex watehes, fine crystalCONSUMER BEHAVIOUR TOWARDS VARIOUS PRODUCTS 1, Convenience Products: ‘These products are frequently purchased by the consumer as they are required for daily use ‘There is very litte planning involved and there are very little comparisons bet subs lary products. The shopping efforts are also very low and the eustomer does not involve himself white shopping. 2. Shopping Products: ‘These products are purchased less frequently as they are usually durables. There is a lot of plunning involved while shopping and shopping efforts are also high. There is a lot of comparison between brands, price, quality, style ete, and the consumer may postpone the purchase to get better produc 3. Specialty Products: ‘These products have strong brand preference and brand loyalty. There are special shopping ‘efforts made by the custemer to got these products. There is low comparison of brands and there is low price sens ivity. DEPARTMENT STORES Vishal mega mart operates in a building and they are divided into various sections called Department Sores. ‘The various department sors ae: 1. Food Mart 2. Plastics = Unsils - Crockery Deparment 3. Mobile Mart 4. Apne 5. Electronic Mart 6.Furiture Martig bazaar Key Facts Year of Launch: ~ 2001 No of Stores:-214 No of Cities with presence: - 90 A total retail space covered: 16 willion sq.ft Core Value Model: ~ Customer Comectivityexperimenting with products and servicesSavingsLowest Price Focus of Marketing Initiatives: - Engage the customers by adaping to local cultureFocus on the lowest price guarantee in all the campaigns Key Driver of Foorfall- Large Prodvct Mix Growth rate: 19%22% For the last 12 years Big Bazaar isthe brand a: Launched in the year 2001, Brand Big Bazaar wanted to bring affordability, varity and hygiene ‘within the reach of the common man. The big Bazaar growth story is an ideal example of the ‘expansion ofthe hypermarket format in the Indian subcontinent ied with value for money and convenience, ‘Today, Big Bazaar provides platform for over 15,000 small, medium and large producers and ‘manufacturers o sell their products to Indian consumers Ina more recent move Future Group merged whi largest business unit, Future Value Retail, houses Big Bazaar and Food Bazaar, with Pantaloons Retail, a listed company that runs the group’s smaller retail operations. This move is expected to reduce operating costs and restore investor confidence (www.cconomictimes indiatimes.com), But what remains same isthe target audience of the brand “the value seeking middle class man, with “Kanjoosi” as his shopping ethos”. Price is the main value proposition for Big Bazaar, Prices are usually 5 10 60 percent lower than the market price.‘©The Average Size of Big Bazaar store is 50,000 sqft and tl 80,000-120,000 sq. f Big Bazaar family center is ‘© Stocks 3,000 to 4,000 SKUs (stock-keeping units) of merchandise ‘© Food and groceries account for 40% of Big Bazaar’s revenue, whereas fashion and apparel make up for about 30% of the overall revenue, The remaining 30% comes from the other units such as electronics, Marketing Strategy EC Theory, According to Kishore Biryani’s 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption, through better employment and income which in turn is creating value to the agricultural products across the country,(3] Big Bazaar bas divided India ino three segments: India one: Consuming class which includes upper mide and lower middle class (14% population). of Indis's India two: Serving class which includes people like drivers, household helps, office peons, liftmen, washer men, ete. (53% of India's population) and India thre: Sirugating class (remaining 31% of India's population). Schemes and innovations » Wednesday Bazaar: ‘The concept of Wednesday Bazaar was promoted as ‘HafteKaSabseSasia Din’ (Cheapest Day of | the Week). Initiated in January 2007, the idea behind thi seneme was to draw customers 10 stores on Wednesdays, the day when consumer presence is usually less. According to the chain, the aim of the concept was ‘to give homemakers the power to save the most’. MahaBachat: “The concept of “MshaBachat" (Mega Saving) was introduced in the year 2006 as a single day ‘campaign with attractive promotional offers across the company outlets. Over the years, the ‘concept has grown to become a six-day biannual campaign, During this campaign, attractive 19‘offers are given in all the value formats including Big Buzacr, Food and Furniture Bazaar, Electronic Bazaar > The Great Exchange Offer: Introduced on Februsry 12, 2009, *The Great Exchange Offer’ allows customers to exchange their old goods for Big Buzaar coupons, The coupons can be redeemed later for buying brand new goods from Big Bazaar outlets across the nation. Advertising campaigns and marketing initiative: Afler completing ten years of eperation in India Big Buzaar India revamped ils logo and appeal with a new brand eampaign “Naye India Ka Bazaar” Big Bazaar Old logo Tn Is se sasta aur accha kahin nahi! New Logo BIG BAZAAR NAYE INDIA KA BAZAAR‘The inspiration for the new ad campsign comes from an ancient Jain custom of *Michchami Dukkadam’, which translates into colloquia! language as “Bhool-chook maf” or ‘Please forgive ime if Thave offended you knowingly or imdvertently’ In view of the increasing compstition in the retail market, Big Bazaar has introduced certain steps to keep itself updated and continue promoting the brand. ‘On the occasion of successful completion of 10 years in the Indian retail industry (in 2011) Big azaar came up with a new logo forthe company with a new tag line that says: “Naye India Ke Bazaar’ (Market for New India), This replaces the earlier tag line: “IsseSastaAurKahinNahin’ (Nothing is Cheaper than Here}. Advertising Big Baraar has recently launched a 360- 4) 5) ') Crockery Crockery cutlery Table Materials / Napkins Casseroles Dinner sets Wine, Juice Glasses D) Luggage: » 2) 2 4) Travel bags Trolleys Bags: Schools, Collage Ladies purse Suitease Level a) Ladies Department:(SKD) » 2 3) ” » Sarees Dress materials Under garments Nightwear’s Western wear's, b) Men's Department: » 2 » 4 3) 6 ” 8) Formals (Shirts & Pants) Casuals (Shirts & pants) Party wears Jeans T-Shins Others Accessories (Lungi Dioti et) Fabrics (Cut pieces) Suits & Blazers Levi's Signature garments,level3 8) Furniture Department 1) Dining Table 2) Bedroom Accessories 3) Hall accessories (Sofa sets, Chairs, Computer table ete) 4) Mattresses b) Footwear Baza 1) Sports Shoes, 2), Formal Shoes 3) Casual Shoes 4) Mens Sandals 5) ladies Sandals 6) Ladies Casuals 7) Ladies Chappet 8) Ladies faney Sleepers 9) ladies Sports shoes ©) Home Déwor: 1) Flower vase 2) Ant 3) Religious gifts 4) Candle stand 5) Umbrellas 1 Flowers 6) Photo Frames 7). Assorted color Stones 8) Frame Paintings 9) Water falls (artificial) 10) Birthday items«@) Home tine: 1) bod sheets, Pillows , bed spreads 2) Towels, Yellow dust 3) Razai, Carpets, Cushion covers 4) Chairbags ©) Toys Dept 1) Soft toys 2) Educational toys 3) Board games, Action figures 4) Dolls Kids department 1 Boys section: 1) T-Shirts, Trousers, jeans 2) Cotton shins, Cargo, Codraw 3) Ethic wears 4) Co ordinates 5) Rain cotes s9Girls Sect 1) thie wears 26 3) Cotton frocks 4) Western wears‘hy Infants: 1) Sables 2) Vests 3) Bibs feedings 4) Bed items 5) Baba 6) Frocks Level 4 4) Beverages: 1) Soft deinks 2) Mineral water 3) uices 4) Health drinks 5) Frozen items ) Canfectionaries: All kinds of Chocolates & Confeetionaries ©) Eeults & Vegetables: 4) Staples Dept: 1) Dal, Rice, Atta, Rava items 2) Oil"s, Masala items 3) Dry fruits 4) Spicy: 5) Ready meals 6) Breakfast cereals©) Brosess Dent: 1) Heath drinks 2) Ready to cat 3) Com Maks, Chips 4) Instan mixes, 5) Soups, Bread items, pickle 6) Spreads Non-food Dept 9 Home care: 1) Phenyl, Detergents 2) Dish wash, Tissue papers, Serateh 3) Shoe cases, Fresh wrap, +g) Personal care: 1), Soaps, tooth paste, Shampoo 2) Deodorants, Body spry 3) Baby food, Talcum powder 44) Men’s apparel Level Electronic Bazaar: 1) Televisions 2) Sound Systein 3) Refrigerators 4) Washing machines 5) Microwave 6) Rive cookers 7) luicers 8) Irons, Mixers & GrindersOrganization Structure of the store Departmental Managers: Thereare 2 depariments and 8 assistant department managers in this store li Electronic Adept, Depot dept, NBD dept, Mobile Bazaar Dept, Star sitar Dept, PUC Dept, Ladies Dept, Men’s Dept, Furniture Dept, Footwear Dept, and Home Décor Dept. Each ‘department will be assigned with targets which has to be achieved within the assigned period that may be of Daily, Weekly, monthly and yearly, Each department has a department Manager & Assist DM. Theit job is concerned mainly with sales. They look after customer's onders delivery post sale service if any ete. AI Dept managers ADM, Team members work under coordination & cocperation, Administration: Store administration comes under Store Manager its functions are store maintenance, House Keeping, Security ete, Information Technology: ‘This department is responsible for the maintenance of the systems of the stores. All billing ‘machines their functioning networking with the master machine ete, If there is any problem ‘with the machine then this department comes into function. Cashing Dept: This department is responsible for the collection of sales amount i cash sales, Credit sales, ete under this department all billing machines of the stores comes. The sales amount collected throughout the day by the cashier's has to be submitted t0 this departmentMarketing Executive: This dept is responsible for the marketing of the ore in different different media like the authorized person has to visit different Television, Newspaper, and Holdings companies ned has to look afer for tie-ups ete Visual Merenandis This department is responsible forthe product arrangement at the store with respect to their nature. The basie Function of this dept is it divides the store into some departments based on the nature of the product and within the departiient it decides how the products should be arranged by Keeping in mind the customer should not suffer HR Executive: Human Resource executive mainly look after employees mainly their problems, This department performs the functions like Recruitment, Selection, Training and development (Customer Service Desk) This is the separate unit, which is mainly focuses on customer service like ifthe customer find difficulty in finding any product, Customer complaints ary replacement, Customer assist Cities where stores are located Agra ,Ahmedabed Allahabad ,Ambals,Asansol, Bangalore, Bhubaneswar, Chenrai, Coimbatore, Palskkad, Kolkata, Delhi, Durgapur, Ghaziabad, Gurgaon, Hyderabad, Indore, Hubli, Lucknow, Kenpur, Mangalore, Mumbai, Nagpur, Nasik, Panipat, Pune, Rajkot, Surat, Thane, Thiruvanantiapuram,Udapi, VishakhapatnamObjectives of study To know about the retail indusny. 4 To know the awareness ofthe customers towards Vishal mega mart and Big bazaar 4 To know whether the customers are satisfied with present service given By the Vishal mega ‘mart and Big bazaar Factors considering while purchasing retail products. To know the effectiveness of the promotional activities done by Vishal mega mart and Big bazaar. 4 To know the strategy to make « customer retention,We have taken VISHAL MEGA MART and BIG BAZAAR for research, Fomer is located ‘modinarar and later is located in kaushambhi Both are present in Delhi-NCR regions but both are belongs from different area. Medinagar isa small city with less population and there is dense population in kaushambhi with metro ‘connectivity. So the service area of both is different from each other. Factor under study in different format: Store layout and division: > Both VISHAL MEGA MART and BIG BAZAAR follow Z-line in their stores. Z-Line= Jine Designs has developed a retail gallery prosram in an effort to leverage the ‘company’s relationship with “Maximum” magazine. Description of the gallery: Price range of items to be featured in the sement by two majorretail e stores. 2hal mega mart layoutIndian retailers 1. Reliance Retail Limitec Corporate office ~ Mumbai, Maharashtra | Establishment ~ 2006 Business Re il | Website wwwril.com | Reliance retail limited was incorporated in 2006, a part of Reliance industries. The company has been fod among the best retail companies in India. It offers complete retail solutions such as food items, lifestyle, fashion, consumer electronics products, home decorative products ete. The company his a toal of 1500 outlets in the country. 2. Pantaloons Retail Limited: BIGBAZAAR NAYEIINDIA KA BAZAAR Corporate office ~ Mumbai, Maharashtra | Establishment ~ 1997 | Business — Retail] Website - www:pantaloonsfashien.com | It is a Nagship company of Future group and one of the leading retail company in India The company has mere than 1000 outlets across the India and 35000 employees. Company's brands inelude Big Bazaar, food Bazaar Brand tory, Top 10 and Sitara, 33.Provogue India Ltd: Corporate office ~ Mumbai, Maharashtra | Establishment ~ 1997 Business ~ Retail and Manufucturing | Website — www provogue.com | It is lifestyle and fashion company which was established in 1997. The company’s offering include men’s wear, women’s wear, fashion Bécessories, apparel and. numerous other produets. Ithas over 250 stores all across the country anil rated among the Yop most trusted brands in india by trust research committee in year 2011 4. Shoppers Stop: Corporate office - Mumbai, Maharashtra | Establishment ~ 1991 | Dusiness ~ Retail] Website — www.shopperssop.com | Shoppets Sop isa welhknown name in etal industry in india and ranked among the top retail brands in India, The company is operated and managed by K Rhea Corp Group and_ ‘vas incorporated in year 1991. It has ftal 61 stores in India and offers national and ‘international brands of apparel, fashion and lifestyle 365.ITC -LRBD: yH WILLS Corporate office — Kolkata, West Bengal | Establishment ~ 1910, Business ~ Retail] Wetsite ~ www.iteporta.com | Lifestyle Retailing Business division is a premier clothing retail company in India branding dough Wills Lifes and John players, The Company has a diversified range oF business activites in FMCG, Hotel, Paperboard, Packaging and Agricuture. 6 | Trent Ltd STAR *Bazaar* Corporate office - Mumbai, Maharashtra | Establish Business ~ Ri 1998 | Website — www:mywestside.com | Iti a fully owned Tata group company which was incomporated in 1998 operates under brand name of Westside, Star Bazaar, Fashion yatra and Landmark. The company offers Men's & women's footwear, cosmetics and fashien accessories from their retil located in more than 30 cities in the country whereas Landmark store deals in book and. music business 77. Vishal mega mart: , Shires Corporate office ~ Delhi | Establishment ~ |986(Kolkata) Business ~ Manufacturing and Retail 8. Aditya Birla Retail: Corporate office Mumbai, Maharashtra | Establishment ~ 2006 | Business — | Website ~ www.adityabirla.com | Aditya Birla retail limited isa subsidiary of Aditya Birla group established in year 2006 which owns over 500 supermarkets and 15 hypermarkets, The company is rated 2s top 10 ‘etail companies in India and received prestigious Master brand Award 2012 by Wocld ‘Brand congress in etal brand category.9.Titan Industries: © TITAN ee ata mt anne Titan is joint venture between Tata group and the Tamil Nadu Industries development corporation established in year 1984, Titan is dominating the Indian Watch Indusiry since then and become global intemational brand. Titan also has 2 great retail presence in jewellery business and its brand Tanisha is one amongst the top jewellery brand in Ini 10, Kewel Kiran Clothing Limited: =.= So Corporate offige~Murnbai, Maharashtra | Establishment ~ 1971 | Business ~ Clothing Retail | Website ~ www-kewalkiran.com | Kewel Kiran is a clothing manufacturing and retail company which was established in 1971. The company’s major brands include killer, Lawman PG3, Integriti and Killer. It wall known name in retail industry in India, has more than 100 stores in India and it isInternational retailers 4. Wal-Mart Stores, Inc. (U.S.) Walmart > l= Walmart is an American multinational retail corporation that funs chains of large discount Ldcpartment stores and warchowse stoces. The company is the world’s second largest public corporation, according to the Fortune Global $00 list 2013, the biggest private employer in the World with over two million employees, and is the largest retailer in the world. Walmart romains « family-owned business, asthe company is controlled by the Walton family, who own over S0 percent of Walmart Its also one of the world's most valuable companies ‘The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Wal-Mart is also the largest grocery retailer in the United States. n 2009, it generated 51 pereent ofits USS258 billion sales in the U.S. from grocery b Italso owas and ‘operates the Sam's Club retail warehouses in North America,2. Carrefour S.A (France) Carrefour (@& Carrefour S.A. is a French multinational retailer headquartered in Boulogne Billancourr, France, in Greater Paris. tis one ofthe largest hypermarket chains in the world (with 1,452 hhypermarketsat the end of 2011), the second largest retail group in the world in temns of revenue {after Wal-Mart, and the third in profit (after Wal-Mart and Tesco{3]{4)). Carrefour operates ‘mainly in Europe, Argentina, Brazil, Ching, Dominican Republic, United Arab Emirates, Qatar ‘and Saudi Arabia, but also has shops in North Aiica and other parts of Asia, with most sores ‘being of smaller size than hypermarket or even supermarket. Carrefour means "erossroad” and "public square" in French, a3. Tesco PLC Merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. Itis the second-largest retailer in the world measured by profits (after Wal-Mart) and third-largest ‘retailer in the world measured by revenues (after Walmart and Carrefour). It has stores in 14 ‘countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia, the Republi of Ireland and Thailand, ‘The company was founded in 1919 by Jack Cohen as a group of market stalls. The Tesco name fst appeared in 1924, after Cohen purchased a shipment oftea ftom'T. E, Stockwell and ‘combined those initials with the firsttwo letters of his surname, and the first Tesco store opened in 1929 in But Oak, Middlesex. His business expanded rapidly, and by 1939 he had over 100 ‘Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s ‘Tesco has ineceasingly diversified zeographically and into areas such as the retailing of books, clothing electronics, Furniture, petrol and software; financial services; telecoms and intemet services; DVD rental; and musie downloads. The 1990s saw Tesco repesition itself, from its perception asa downmarket "pile ‘em high, sell em cheap" retailer, to one which appeals across ‘a wide social group, from its Tesco Value fo its Tesco Finest ranges. This was suecessfil and ‘saw the chain grow from 500 stores in the mid-1990s w 2,500 stores fifteen years later. ‘Tesco is listed on the London Stock Exchange and is 2 constituent ofthe FTSE 100 Index. tt had A billionas of 15 January 2012, the 1Sth-lagest of ‘a market capitalisation of approximately ‘any company with a primary listing on the London Stock Exchange. 24. Metro AG(Germany) Cash & Carry Metro Group, is @ German global diversified retail and wholesale/eash and carry group based in Diisseldorf, [thas the largest marketshare its home market, and is one of the most globalised retail and wholesale corporations {citation needed} I isthe fith-largest retailer in the world measured by revenues (after Wal-Mart, Carrefour, Tesco and Kroger) It was established in 1964 by Otto Beisheim,S.The Kroger Co.( U.S.) Kroger Company is an American retailer founded by Bernard Kroger in 1883 in Cincinnati Oni Itis the couniry’s largest supermarket chain, second-largest U.S. general retailer by revenue, fifth-largest retailer inthe world, according to Deloitte, and twenty-third largest Fortune ‘500 company in the world. As of February 2013, Kroger operates, either directly or through its subs ries, 2.424 stores. Kroger’s headquarters are in downtown Cincinnati: th store formats thet ets in 31 states, Jude supermarkets, superstores, department stores, convenience stores, and mall jewelry stores. Kroger-branded grocery stores are located, throughout the Midwvester and Southern United States. Kroger also is parent to several "banner" chains, such as Ralphs in Califo As of July 2013, Kroger as the second-largest retailer in the United States behind Walmart, based on 2012 retail sales,DEPARTMENT STORES Vishal mart operates in a four loored building and the 2 floors are divided into various called Department Stores. ‘The various department stores are: |. Food Store 2. Wellness, 3. Customer Service Desk, 4. Plastics - Utensils - Crockery Department, '5.General Merchandise, (6. Mobile Store 7. Appacels, 8, New Business Development, 9, Eleetronie Store 10.Furniture Store CUSTOMER SERVICE DESK(CSD) e means meeting or exeaeing the customer's expectations and needs. Customer Costomer servi Service is nota One time activity, it should reflect in each and every activity, Be it the facilites, layout of the store, communication and interaction or the company policies, all affect the customer service. CSD has been formed to tke care of customer needs and problems. CSD also provides various services like = 1. Alterations with respeet to apparels 2. Exchanges of merchandise 3.Gift wrappings 4, Baggage counters for safe deposit of customer baggage.6.Costco Wholesale Corporation(U.S) itis the soventh largest retailer in the world and the largest membership warchouge elub chain in the United States. Costeo is headquartered in Issaquah, Washington, United States and was founded in 1976 in San Diego, CA with its frst warchouse in Seaitle, Founded by James (Jim) Sinegal and Jeffrey H. Brotman,Costco opened its first warehouse in Seattle, Washington, on September 15, 1983.Schwarz UnternehmensTreuhand KG (Germany) LidlStiftungs Co. KG is a German global discount supermarket chain, based in Neckarsul Baden-Warttemberg, Germany, that operates over 10,000 stores across Europe: It belongs to the holding company Schwarz Gruppe, which also owns the store chains Handelzhof and hypermarket Kaufland. Lidl is the chief competitor ofthe similar German discount chain Aldi, The compary wat founded in the 1930s by a member of the Schwarz family, and was called Sehwarz Lebersmittel- Sortimentsgrohandling (Schwarz Assorted Wholesale Foods). Lidl has since s opening in 1073 established itself in over 20 countries throughout 1 Lidl is the surname of 1 former business partner of Josef Schwatas, Ludwig Lidl, retired schoolteacher, and Joset's son Dieter Schwarz bought the rights tothe name from him for 1,000 German Marks, ashe could not use the name Schwarz Mar +hwarzmarkt means "black market il is part of the Schwarz Group, the fifth-largest retailer in the world with sales of $82.4 billion (2011).$8. AldiFinkauf GmbH & Co. oHG (Germany) ALDI Einkauf GmbH & Companies, oHG, doing business as about this sound Aldi (help info) (German pronunciation: faldi shott for Albrecht Discount, is global discount supennarket tain based in Germany. ‘The chain is made of two separate groups, Aldi Nord (North, which operates as AIKiMarkt), headquartered in Essen—and ALDI Sid (South, wi ch operates as ALDI Si), headquartered in Millheiman der Rubr-The two operate independently, each within specific areas ‘The individual groups were inally owned and managed by brothers Karl Albrecht and Theo Albrectt, Karl Albrecht retains ownership of AMStid, and with a personal wealth of €17.2 billion, isthe richest man in Germany, while the co-owners of ALDI Nord, Berthold and Theo Albrecht Jr, follow close behind at €16 billion, Di + Schwarz, owner of Lidl and Kaufland ‘came in third, with fortune of €11.5 billion9, Walgreen Co. U. ‘The Walgreen is the largest drug retailing chain in the United States. As of December 11,2013, the company operated 8,$82 stores in all 0 states, the District of Columbia, Puerto Rico, and Guam. t was founded in Chicago, Minois, in 1901. Walgreens headquarters are inthe Chicago suburb of Deerfield, tino.‘The Home Depot is an American retailer of home improvement and construction products and services, operates many big-box format stores across the United States. The company is headquartered at the Atlanta Store Support Centr in Cobb County, Georgia in Greater AtlantaResearch methodology Details of Research: Method used: survey method Type of survey: Interview Instrument used: Questionnaire Sample size: 20 Data used: Both primary and secondary Defining the research problem: A researcher must find the problem snd formiilae itso that t becomes susceptible 0 research, Like a medical docior, a esearcher must examine all the symptoms (observed by him) concerning a problem before he can diagnose cocrectly. ‘And therefore, have also defined the research problem i. consumer satisfaction, structure of store division, consumer behavior et.Res methodology Research methodology is the way to systematically solve the research problem. it may be understood asa science of studying to how research is done scientifically In it we study the various step that are generally adopted by a researcher in studying his research problem along withthe logic behind them Inresearch methodology we net only talk of the research methods but also consider the logic behind the methods we use in the content of our research study and explain why we are using 3 perticular method and why we are net using others so that research results are eapable of being ‘evaluated either by the researcher himself or by others, Secondary data are those which have been collected by someone else and which have already ‘boon passed through the stastial process. There are several ways by which secondary data can be classified, Research approach: ‘The research approach for the purpose is secondary research to collect the information, Research Instruments 1 sed direct observation data & survey as reseerch instrument Survey Method: ‘The survey isa non-experimenta, descriptive research method. Survey is used extensively in library and information seience to asces’anitude and characteristics of wide range of subjects, from the quality of user-system interfaces to library user reading habit, Ina survey, researcher Samples a population.Types of survey Survey can be classified into two broad categories 1. Questionnaire: completes. IL is usually paper and pencil instruments that the respondent 2. Interview:- is completed by the interviewer based on the respondent says. Sometimes, its hard to tll difference between s questionnaire and an interview.For instance, ‘some people think that Questionnaires always ask short closed ended questions while interviews always ask broad open ended ones, But you see Questionnaires with open ended questions {although they do tend to be shorter then in interviews) and there will often be a series of closed ceded questions asked in an interview Research design Inthis project use expletory research design and for dsta collection fillup the questioner from the customer satisfaction, survey of the retail market and some information collect by interview ‘ofthe customer as well as staffof VISHAL MEGAMART and. BIG BAZAAR, Sampling: ‘used random sampling because from # finite population refers to that method of sample selection which gives each of possible sample of combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. Sample design: A sample design ia definite plan for obtaining a sample from a given population sample design may a well ay down the number otems to beto be included inthe sample's the sizeof sample. @ Types of universe ‘The firs step in developing any sample design is to clearly define the set of objects, technically called the universe to be studied. The universe is infinite as the number of customer is unlimited. 2Gi) Sampling unit: decision bas to he taken concerning a sampling unit before selecting ‘sample. Sampling unit may be a geographical one such as state, district, village, ete, ora ‘construction unit such as house, Mla, ete, or it may bea social unit such as family, club,sshoo!, etc, ort may be an individual. The researcher will have to decide one or more of such units that hie has to select forhis study. (ii) Size of the samples {As the universe i infinite so the number of consumer will he limited, Hence sample size is of 20 ‘consumers belong to various level of society. Data collectioi Data is the key activity of marketing research. The design ofthe data collecting method is bockbone of research design. Data constitute the foundation of statistical analysis and interpretation. Hence the first step in statistieal work is to obtain data, Data is detained from two important sourees, namely: 1 Primary data 2. Secondary data Primary Dat Primary data are gathered from the specific purpose or for a specific research project, consists of ‘original information for the fulfillment of original objective, When the data are required for the particular study ean be found neither in the intemal record of the enterprise nor in published souree, in some cases it may become necessary to collect original dot, Primary data can be collected in four ways 1. Observation Focus 3. Survey 4. Experiment 3Secondary Data: Secondary data are the data, which already exists somewhere. Secondary date provide starting, point of research and after that the advantage of low cost and ready availability. Secondary data ‘can be divided into wo types: 1. Internal Dats 2. External Data When researcher use the data that has already been collected by other data is collecied is called Secondary Data, Secondary data can be obiained from journals ie. intemal sources report Government publications and books, professional bodies ete Ingernal data are reports andl memos generated within an organization to facilitate its operations. Extemal data are those specially produce for outside consumption. Soures from which Ihave taken the secondary data ae as under: 1. Direetobsewvation 2. VISHAL and BIG BAZAAR website 3. CR KOTHARI A, Survey and customer data &report as well as staff ofthe store