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A RESARCH PROJECT REPORT ON
STUDY ON CONSUMER
PERCEPTION RETAILINGORGANIZING IN INDIA
Submitted towards the partial fulfillment of requirement of Maha Maya Technical
University, Noida for the award of degree of Master of Business Administration
(MBA).
Session (2011-2012)
SUBMITTED TO: SUBMITTED BY:
Mr. ALQAMAR SIR WASEEM ASGAR ROLL NO. 1059370111
MBA IV Semester
VINAYAK VIDHYAPEETHMODIPURAM MEERUT
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PREFACE
We are lucky that, we got the opportunity for making the project report on Study on
Consumer Perception Retailing Organizing in India. For this study we visited the Malls,
Hyper Markets and Departmental Stores and in Meerut and Noida and talk to various
unorganized retailers (Kirana stores) to study the problems defined. This report is written
account of what we learnt and experienced during the survey. We wish, those going
through it will not only find it readable but also get as useful Information. The main
limitation of our experience was that as the above said organized retails industry is reserved
with corporate formalities, we had faced a little bit difficulties to fill the questionnaire
completely.
Retailing is emerging as a sunrise industry in India and its presently the largest employer
after agriculture. In the year 2004, the size of Indian organized retail industry was Rs
28,000 Crores, which was only 3% of the total retailing market.
The sunrise of the organized retailers in India creates a major turn in the retail industry.
Top major organized retail players are increasing their market share day by day. Their mainfocus is based on FMCG and consumer durables. With modernization, Indian culture is
aping the western dressing sense and lifestyle and these techniques is promoting by the
Retailers and by this they are generating a remarkable revenue from the Indian consumers.
ACKNOWLEDGEMENT
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First of all we would like to thank MR. ALQAMAR (Faculty Member) for giving us the
opportunity to do the project on comparative study on Study on Consumer Perception Retailing
Organizing in India. Her extended views on the Indian Retail Industry help us with assistance,support and council without, which this project would not have been materialized.
We would also like to express our special thanks to all the Staffs of the Vishal Mega Mart, Big
Bazaar, Life Style and Pantaloon Retails and also the various owners of Kirana Stores for their
excellent support and co-ordination without which this study could not be fulfilled.
Thanks
WASEEM ASGAR
EXECUTIVE SUMMARY
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Retail industry is moving to new heights today. It is growing more than ever before.
Unorganized retail has dominated the industry always. Still organized retail in our country
contributes only 4%of the total retail industry. But now some drastic changes are being
seen in the todays retail industry. Now the organized retail is growing rapidly and it is
estimated to be 11%of the total retail market by 2011.
The topic for project was COMPETITOR ANALYSIS OF RETAIL INDIA LTD. My
major objective of this project was to understand the working of the company and also to
understand formulation, implementation of strategies of this company in order to cope up
with the dynamic changes in the industry. The project report also tells the response of the
customers towards the strategies adopted by the company.
The project required data collection via consumer survey on the basis of a random sample.
A store survey (limited to own store) was also undergone.Before starting with the analysis and reports, I have included in the project all the activities
that I conducted and helped execute at the store. Over the period of Seven Week there were
a number of such activities, which gave me an overall understanding of marketing activities
and responsibilities at the store.
INDEX
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CONTENTS PAGE NO
Acknowledgement
Preface 5
Todays Retail in India 6 -14
Key Points of Indian Organized Retail Industry 15 -16Formats in Indian Organized Retail Sector 17 - 18
Top Major Retail Players in India 19
Objectives of the Study 20
PHASE-I
Scope of the Study 22
Research Methodology 23 - 24
Research problem and its relevance 25
Name of the Stores 26
Vishal Mega Mart 27 - 37
Big Bazaar 38 - 48
Lifestyle 49- 64
Limitations of the Study 65
Questionnaire 66 72
PHASE-II
Great India Place 73 - 77
INTRODUCTION
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Comprised of organized and traditional retail formats, Indian Retail market is estimated to
be worth US$ 511 billion, and is poised to grow to US$ 833 billion by 2013. The organized
retail that currently accounts for less than 5 per cent of the total retail market is expected to
register a compound annual growth rate (CAGR) of 40 per cent and swell to US$ 107
billion by 2013.
A report by global consultancy firm, AT Kearney said "The consumer spending in India
has increased by an impressive 75 per cent in the last four years and will quadruple in the
next 20 years." Moreover, India recently topped the Nielsen Global Consumer Confidence
study, conducted by Nielsen, a market research company. The biannual report revealed that
Indians are "the most optimistic lot globally who think that their country will be out of the
economic recession in the next twelve months."
However the size of Organized Retail in India will exceed US$22bn mark from current
level of about US$4bn with its space requirement touching over 220mn sq. ft., by 2010,
according to The Associated Chambers of Commerce and Industry of India
(ASSOCHAM). In a Paper brought out by ASSOCHAM on `Retail Scenario in India and
Its Related Issues, it has been stated that approx. 40mn sq. ft. is currently generating a
business of about US$4bn in organized retail.
Indias vast middle-class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets and India provides for the ideal
locations. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and
smaller malls, roughly 600 new malls are coming up in other metropolis and large
townships in which less than 35% of retail business is going to be transacted.
It is seen that over 1000 malls are in the pipelines for smaller townships in which the retail
sector is projected to grow at over 60% because of ample availability of land and increased
purchasing power of the folks living in those areas because of increased economic
activities. Naturally, the large players will prefer to go there and put up their shops by
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sourcing their supplies from the places convenient to them.
Some of the key areas in which retail boom will prevail in towns beyond metros and even
large cities will include food items, FMCG products, grocery, sportswear, outerwear,
tailored clothing, eyewear, watches, footwear and accessories and the like. The retail
business that will pre-dominantly stay with malls put up in metros and large cities will
include apparel, pharmaceuticals, luxury goods and consumer durables.
Changes should be brought about in Agricultural Produce Marketing Committee (APMC)
Act (a key contributor to the large number of intermediaries) such as the introduction of
contract farming and allowing direct procurement from farmers by retail owners so that a
direct chain is established between the user and farmers for their equal benefits. It also
highlights, pointing out that even in the case of non-agricultural products such as apparel,FMCG and general merchandise, the situation is far from ideal.
The key cause for inefficiency is the poor integration between the retailer and supplier.
None of the retailers, in view of ASSOCHAM has so far an automated system for
information exchange with their suppliers. In developed countries, retailers practice Vendor
Management Inventory (VMI) systems, where the supplier has access to the point of sales
data of the retailer and plans automatic replenishments responding to the stocks available at
the retailer.
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Consumer Behavior and Retailing Decisions
Consumer behavior refers to the mental and emotional process and the observable behavior
of consumers during searching, purchasing and post consumption of a product or service.
Consumer behavior involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, sociopsychology,
anthropology and economics. It also tries to assess the influence on the consumer from
groups such as family, friends, reference groups and society in general. Buyer behavior has
two aspects: the final purchase activity visible to any observer and the detailed or short
decision process that may involve the interplay of a number of complex variables not
visible to anyone.
Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors:
Social Factors
Psychological Factors
Personal Factors.
A. Social Factors
Social factors refer to forces that other people exert and which affect consumers purchase
behavior. These social factors can include culture and subculture, roles and family, social
class and reference groups.
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B. Psychological Factors
These are internal to an individual and generate forces within that influence her/his
purchase behavior. The major forces include motives, perception, learning, attitude andpersonality.
C. Personal Factors
These include those aspects that are unique to a person and influence purchase behavior.
These factors include demographic factors, lifestyle, and situational factors.
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Consumer decision-making process generally involves five stages:
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
Post purchase Actions
Consumer Attribute affecting choice of format between organized and unorganized Retail
Retail outlet selection and brand selection:
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There are three fundamental patterns, which a consumer can follow and they
Could be:
(I) Brand first, retail outlet second
(ii) Retail outlet first, brand second
(iii) Brand and retail outlet simultaneously.
A consumer wanting to buy a car may collect information on brands and purchase it from a
retail outlet based on his perception of price offered or after sales service provided by the
outlet (typically, search for information on brands is followed by retail outlet selection in
durables). In certain product categories, especially where `category killers' exist, consumers
may think of the retail outlet initially and then the brands (television, refrigerator and audio
products retailed through outlets like Vivek and Co. in the South, could be an example).
One more dimension may be to compare brands in the evoked set at retail outlets which
also exist in an evoked set of their own. This is highly possible, especially in the Indian
context where dealers develop a social relationship with consumers, especially in semi-
urban and rural areas. Primary research could be used to discover the specific sequence
involved in a situation of this kind. A `brand first' dimension may need feature-based
advertising and a retail outlet first dimension may require a set of point-of-purchase
(POP) materials and special training to sales personnel to recognize the needs ofconsumers.
Brand first and outlet second: The brand was probably thought of by the
consumers because-
(i) The consumers may not have developed a relationship with any retailer which is strong
enough to get into the `evoked retail set' or
(ii) The brand has got into the evoked set because of advertising or positive word of mouth.Local advertising with the mention of brand names which have already got into the evoked
set would enable consumers to be pulled to the outlet. Primary research may be required
to identify the brands in the evoked set.
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Organized vs Unorganized Retail:
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In the developed economies, organized retail is in the range of 75-80 per cent of total retail,
whereas in developing economies, the unorganized sector dominates the retail business.
The share of organized retail varies widely from just one per cent in Pakistan and 4 per cent
in India to 36 per cent in Brazil and 55 per cent in Malaysia (Table 2.2). Modern retail
formats, such as hypermarkets, superstores, supermarkets, discount and convenience stores
are widely present in the developed world, whereas such forms of retail outlets have only
just begun to spread to developing countries in recent years. In developing countries, the
retailing business continues to be dominated by family-run neighbourhood shops and open
markets. As a consequence, wholesalers and distributors who carry products from
industrial suppliers and agricultural producers to the independent family-owned shops and
open markets remain a critical part of the supply chain in these countries.
Table Share of Organized Retail in Selected Countries, 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail
(%)
USA 2,983 85
Japan 1,182 66China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source: Planet Retail and Technopak Advisers Pvt. Ltd
Key Points of Indian Organized Retail Industry
1. Potential to be the third largest economy in terms of GDP in next few years.
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2. It ranks high amongst the top 10 FDI destinations of the world.
3. Fastest growing tourist market in Asia.
4. World Bank states, India to be worlds second largest economy after China by the year
2050.
5. Stable and investor friendly Central Government at the helm of affairs.
6. Introduction of Value Added Tax or VAT and tax reforms.
7. High degree of professionalism and corporate ethics.
8. Excellent Investment opportunities in Indian retail sector and in allied sectors; sure and
high returns on investments.
9. To invest US $130 billion for the development of infrastructure, by year 2010.
10. Bullish stock markets.
11. Hordes of foreign investors are thronging in to invest in Indian retail markets.
12. Highly educated English speaking young workforce.
13. Vibrant and multi cultured cities.
14. Huge opportunity exists, especially in semi-rural and rural areas.
15. Till date the second largest employer after agriculture sector, for the huge semi-skilled
Indian population.
16. Offers highest shop density in the whole world.
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17. Having almost 1,20,000 shops, across the length and breadth of the country.
Formats in Indian Organized Retail Sector
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1. Supermarkets: A supermarket, also called a grocery store is a self-servicestore offering
a wide variety offood and household merchandise, organized into departments. It is larger
in size and has a wider selection than a traditional grocery store and it is smaller than a
hypermarket orsuperstore.
2. Hypermarkets: A hypermarket is a superstore which combines a supermarket and a
department store. The result is a very largeretail facility which carries an enormous range
of products under one roof, including full lines of groceries and general merchandise. In
theory, hypermarkets allow customers to satisfy all their routine weekly shopping needs in
one trip.
3. Department Stores: A department store is a retail establishment which specializes insatisfying a wide range of the consumer's personal and residential durable goods product
needs; and at the same time offering the consumer a choice multiple merchandise lines, at
variable price points, in all product categories. Department stores usually sell products
including apparel, furniture, appliances, electronics, and additionally select other lines of
products such aspaint, hardware, toiletries, cosmetics, photographic equipment, jewelery,
toys, and sporting goods. Certain department stores are further classified as discount
department stores. Discount department stores commonly have central customercheckout
areas, generally in the front area of the store. Department stores are usually part of a retail
chain of many stores situated around a country or several countries.
4. Shopping malls: A shopping mall or shopping centre is a building or set of buildings
which contain retail units, with interconnecting walkways enabling visitors to easily walk
from unit to unit.
5. Specialty Chains: A Specialty Chains is numbers stores which are specialized in a
specific range of merchandise and related items. Most stores have an extensive width and
depth of stock in the item that they specify in and provide high levels of service and
expertise. They differ from department storesand supermarkets which carry a wide range
of merchandise.
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http://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Checkouthttp://en.wikipedia.org/wiki/Checkouthttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Retail_unithttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Self-servicehttp://en.wikipedia.org/wiki/Retailing#Retail_typeshttp://en.wikipedia.org/wiki/Foodhttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Superstorehttp://en.wikipedia.org/wiki/Big-box_storehttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Retailinghttp://en.wikipedia.org/wiki/Grocery_storehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Merchandise#Product_linehttp://en.wikipedia.org/wiki/Apparelhttp://en.wikipedia.org/wiki/Furniturehttp://en.wikipedia.org/wiki/Appliancehttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Painthttp://en.wikipedia.org/wiki/Hardwarehttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Jeweleryhttp://en.wikipedia.org/wiki/Toyhttp://en.wikipedia.org/wiki/Sporting_goodshttp://en.wikipedia.org/wiki/Checkouthttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Retail_chainhttp://en.wikipedia.org/wiki/Retail_unithttp://en.wikipedia.org/wiki/Walkwayhttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Supermarket -
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TOP MAJOR RETAIL PLAYERS
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Retailer Existing formats Brand NamesNo.of
Stores
Total Retail
Space
(000 sq ft)
Pantaloon RetailIndian Ltd
Department store Pantaloon 13 1,948
Hypermarket Big Bazaar 450 5000
Seamless Malls Central 12 1200
RPG Retail
Hyper markets Spencers 400 6000
Music Stores Music world 225 230
books Stores Books and Beyonds
Shoppers StopLtd.
Department stores Shoppers Stop 20 1000
Books & Music Stores Crosswords 33 N/A
Home furnishing Home Stop N/A N/A
Landmark Group(Based in Dubai)
Department Stores Lifestyle 8 370
Trent India Ltd
Department Stores West side 19 350
Hypermarkets Star India Bazaar 1 N/A
Books & Music Stores Land Mark 4 N/A
Vishal Group Hyper markets Vishal Mega Mart 183 13,45
OBJECTIVES OF THE STUDY
Phase-I
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This project is based on the comparative study of Indian Retail Industry on the basis of
three parameters:
(a) Customer Flows.(b)Revenue per Customer.
(c) Stock of the Store.
Objective:
Know the customer flow and revenue generated by the stock from the each department in
the organized retail sector within a closer view.
PHASE-II
Determine various shops and classify them into the Retail formats.
Objective:
Know the retail formats and what are the difference between those categories.
PHASE-III
Analyze the threats and challenges to unorganized retailers in the current scenario ofcompetitive market.
Objective:
Understand the sector of unorganized retails, find out the challenges faced by them and
determine what the measures are taken by these retailers to survive in this current scenario.
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PHASE-I
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SCOPE OF THE STUDY
The scope of my study restricts itself to analyze the organized retailers profitability
drivers on the basis of Garments, Gifts, Cards and Music Department where as in the recent
trend its seen that the key players in this Industry are more emphasizing on the Garments,
Personal Grooming, Home furnishings, Life style and Footwear Departments in their
Stores.
RESEARCH METHODOLOGY
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This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to
present comprehensive analysis of four major organized retailers. The data had been used
to cover various aspects like inter-departmental customer flows, revenue per customer and
value of the stock in the various departments. In collecting requisite data and information
regarding the topic selected, we went to the Vishal Mega Mart, Life Style, and Big Bazaar
of New Delhi and Noida and collected the data.
Research design:
The study is based on descriptive research design because the data were collected to reveal
accurate descriptions of variables related to the decisions being faced, without
demonstrating that some relationship exists between variables. For the purpose of present
study a related sample of stores were selected on the basis of convenience.
Sample Size and Design:
A sample of 3 stores was taken on the basis of convenience.
Research Period:Research work is only carried for 2 months.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were close ended with Ordinal-polytomous response scale.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
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Primary Source: The primary data comprises information survey of
Comparative Study on Profitability Drivers of Indias Retail Industry. The
data has been collected directly from respondent with the help of structured
questionnaires.
Secondary Source: The secondary data was collected from internet and
references from Library and various journals on retail industry.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The
technique that we have used is bar graphs, pie charts, with MS-EXCEL and SPSS.
RESEARCH PROBLEM AND ITS
RELEVANCE
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RESEARCH PROBLEM:
Determine the profitability drivers on the basis of:
Customer flows.
Revenue per Customer.
Stocks value of the store.
RELEVANCE OF THE RESEARCH:
Understand the value of Indian organized retail Industry on the basis of how customer flow
generates the revenue related to its value of stock and analyze the ways to improve each of
three dimensions.
Name of the Stores
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The study is being conducted on:
(i) Vishal Mega Mart, Garh road.
(ii) Big Bazaar, PVS.
(iii) Lifestyle International, Garh road.
(iv) Various unorganized retailers in Meerut.
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VISHAL MEGA MART
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What started as a humble one store enterprise in 1986 in Kolkata is today a conglomerate
encompassing 183 showrooms in 110 cities / 24 states. Indias first hyper-market has also
been opened for the Indian consumer by Vishal. Situated in the national capital Delhi this
store boasts of the singe largest collection of goods and commodities sold under one roof inIndia.
The groups philosophy is integration and towards this end has initiated backward
integration in the field of high fashion by setting up a state of the art manufacturing facility
to support its retail endeavors.
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all priceranges. The showrooms have over 70,000 products range which fulfills all your household
needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24
states across India. Each store gives you international quality goods and prices hard to
match. The cost benefit that is derived from the large central purchase of goods and
services is passed on to the consumer.
There are three classes of consumers the lower class is restricted only to unorganized retail,
upper class consumers are limited and scattered. According to the Vishal Retailing
Strategy, they are targeting middle class as it is the largest consumer base in India and can
be sold off then in large volumes because with the increasing purchasing power the middle
class is shifting towards organized retail.
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 a turnover of Rs 2884.43
million for fiscal 2006 and Rs. 6026.53 million for fiscal 2007.
ANALYSIS OF THE STUDY
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Types of Customer:
There are three types of consumer in the Indian retail market. Vishal mega mart is a firm
believer of that the Middle class and upper middle class are the potential customer in their
product categories.
Here we are analyzing which income level of customers are generally tend to purchase the
products department wise:
PERCENTAGE OF TYPES OF CUSTOMER DEPARTMENT WISE
TYPES OF CUSTOMER
GARMENT
SECTION
GIFTS
SECTION
MUSIC
SECTION
CARDS
SECTION
HIGH GRADE INCOME LEVEL 10 40 60 0MEDIUM GRADE INCOME
LEVEL 60 50 30 50AVERAGE GDARE INCOME
LEVEL 30 10 10 50
From the above details its found that the customer flows in the garment section is relatively
high rather than the other sections. The focus customer group is basically medium level
income group of customers.
Flow of customers in different departments:
28
0%
20%
40%
60%
80%
100%
G A R M E N T
SECTION
GIFTS
SECTION
MUSIC
SECTION
C A R D S
SECTION
T YP E S O F C U S T O
A V E RA G E G DA RE IN CO M E L
M E D IU M G R A D E IN C O M E L E
H IG H G R A D E IN C O M E L E V E
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Here we have analyzed the flow of customers per day basis. For this reason we have
studied customer flows on an average of high customer flow days.
Inter-Department Customer FlowDEPARTMENT Number of Customer
GARMENTS DEPARTMENT 900
GIFTS DEPARTMENT 250
CARDS DEPARTMENT 100
MUSIC DEPARTMENT 300
From the above figures its executed that flow of customer in garment departments is
relatively higher than the others departments. To determine the above study we have
considered the customers who are spending their money on purchase of products of the
above said departments. Its revealed at the time of study that they have 10 cash counters
and they are making bills of more than 280 bills per day per counter on the above said
days.
Value of Stock in the different departments:
We have chosen 4 departments from Vishal Mega Mart and estimated the valuation of
average stock with the assumption details provided by the branch operation stuffs.
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Inter-department Customer Flow
900
250
100
300
0 100 200 300 400 500 600 700 800 900 1000
GARMENTS
DEPARTMENT
GIFTS DEPARTMENT
CARDS DEPARTMENT
MUSIC DEPARTMENT
Number of Customer
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VALUE OF THE STOCK
DEPARTMENT (Rs)
GARMENTS DEPARTMENT 10340000
GIFTS DEPARTMENT 250000
CARDS DEPARTMENT 75000
MUSIC DEPARTMENT 200000
Value of the stock in the Garments Departments:
The garment section is divided into Men, women and kids section. The value of the stock
in the garments department is relatively much higher than the others departments. The
value of stock in winter season jumps to 18 to 20 crore and its 3times higher than others
season as normally they are maintaining a stock of 6 crore in the others time.
Value of the stock of the others departments:
30
0
50000
100000
150000
200000
250000
300000
GIFTS DEPARTMENT CARDS DEPARTMENT MUSIC DEPARTMENT
Value of Stock
10340000
525000
Garment Deapartment
others department
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The value of the stock of the others departments are relatively lower than garments
departments.
The stock maintained in the gifts section, basically maintained for the high and medium
level income customers.
In the cards department the stock increases at the time of Christmas an New year eve as its
a seasonal business according to the Vishal Mega Mart.
Music department is consisting of Music, movie and game CD & DVDs. Its found that
the stock of game CD & DVDs is higher than the others.
Revenue generated by the different departments:
To find out the profitability drivers we have compared the revenue generated by different
departments on the basis of 2004-05 to 2011-12. For this study we have considered average
revenue of a high customer flow day by the all income level customers.
DEPARTMENT 2004-05 2011-12GARMENTS DEPARTMENT 50000 180000GIFTS DEPARTMENT 5000 10000CARDS DEPARTMENT 2000 1800MUSIC DEPARTMENT 1800 5000
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TOTAL 58800 196800
From the above study its revealed that at the time of inception of the organized retail in
India in the year of 2004-05, only the high grade and upper medium grade income level
customers were tends to go to the retails. So the maximum portion of revenues generated
from these two groups only.
In the case of garments, gifts and music departments as the stock is increased, the revenueis also increased with the market demand study of the year of 2004-05 to
2011-12. and also its seen that the product category in the gifts and music department is
relatively changing with the increasing demand of new innovated products.
A measurable changes found in the cards department is that the revenues as well as the
stock is decreasing day by day because of changing customer preferences towards
information technology enabled services like SMS, MMS & E-mails.
32
50000
180000
500010000 20001800 18005000
58800
196800
0
50000
100000
150000
200000
GARMENTS
DEPARTMENT
GIFTS
DEPARTMENT
CARDS
DEPARTMENT
MUSIC
DEPARTMENT
TOTAL
2004-052011-12
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FACTS AND FINDINGS
From the above analysis its found that the average customers in the all departments are the
Middle Grade income level customers as Vishal is mainly focusing in this segment of
customers.
Garment Department
Overview:
Product lines and the quality of the products in the Garment Section are basically for the
medium and average grade income level people and price range in this section is averagely
lies between Rs.250 to 600.
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Findings:
In the garment section we have found that products categories are not focusing the high
grade income level customers as the brand consciousness not presents in the floors. The
high grade income level people are very conscious about the brand that they are using.Basically they are very conscious about the brand rather than the quality which isnt
present in this department.
Suggestions:
Vishal is strategically targeting the middle class customer but there is also a rash of high
grade income level customers in their stores. They should focus on this aspect that they can
turn this mob into potential customer by introducing a various range of high class products
in the garment department.
Gifts Department
Overview:
Product lines and the quality of the products in the Gifts Section are basically for the high
and medium grade income level people and price range in this section is averagely lies
between Rs.500 to 800.
Findings:
In the gifts section we have found that stock of gift items is very low and also products
categories are not focusing to low grade income level customers and the gifts department is
referred to high class products.
Suggestions:
They should focus on this aspect by introducing more stocks and also a lower price range
products in the gifts section so that they can also generate revenue from lower grade
income level customers.
Music Department
Overview:
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Music section consist of Music CDs, Game CDs & DVDs and also Movie DVDs.
Product lines and the quality of the products in the Music Section are basically for the high
and medium grade income level people and price range in this section is averagely lies
between Rs.150 to 500.
Findings:
In the Music section we have found that they are mainly focusing on the Game CDs and
DVDs and also the price range is also high. Again the collection of game cd and dvds is
considerable but in the case of Indian Music CDs the stock level is not also upto the
customers satisfactory level.
Suggestions:
Vishal should concentrate on that the music industry is passing through a high competitivemarket with piracy world so the price range should be such as the customer feel free to buy
original cds. Another point is that there should be a balance between the stock of their
product lines in the music department.
Cards Department
Overview:
In the Indian scenario cards are not very popular and a seasonal business according to the
floor managers and management of the store. Also the demand is decreasing day by day
with the increase of ITES.
Findings:
In Vishals prospect we have found that its a seasonal business and they only give an
emphasized focus at the time of Christmas Day and New Year. Also the high grade income
level people tends to go specialized cards stores so only a few numbers of middle and
average income level customers who come to others departments sometimes seek for the
cards.
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Suggestions:
Though the demand of cards decreasing day by day but there are also some others events
rather than the 25th & and 31st eve. So a step can be taken by introducing low range of cards
attached with the gifts section to greet the wishes all the time.
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BIG BAZAAR
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer marker.Headquartered in Mumbai (Bombay), the company operates over 8 million square feet of
retail space, has over 475 stores across 40 cities in India and employs over 18,000 people.
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The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar,
a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look,
touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and
quality and Central, a chain of seamless destination malls. Some of its other formats
include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, ALL, Top 10,
Bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a
large-format home solutions store, selling home furniture products and E-Zone focused on
catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the
US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year
2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship
company of Future Group, a business group catering to the entire Indian consumption
space.
ANALYSIS OF THE STUDY
Types of Customer:
In the Indian Retail Scenario Big Bazaar has a great success to create a revaluation.
Basically they have differentiated their customers on the basis of needs of customers rather
than their income level. Later on we will analyze these aspects. Here we are analyzing
which income level of customers are generally tend to purchase the products in Big Bazaar
department wise:
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From the above details its found that the in the Garment section they are targeting the
middle and average level of customers. They are not promoting any major brands and they
have their own brand towards the major brands in garments industry. Flow of high level of
customers in music section is better than the others departments. Generally upper medium
and medium class and also a good percentage of average income level customer visits their
all departments.
Flow of customers in different departments:
Here we have analyzed the flow of customers per day basis. For this reason we have
studied customer flows on an average of high customer flow days.
Inter-Department Customer Flow
DEPARTMENT Number of Customer
GARMENTS DEPARTMENT 1600GIFTS DEPARTMENT 600CARDS DEPARTMENT 250
MUSIC DEPARTMENT 800
PERCENTAGE OF CUSTOMER FLOWS DEPARTMENT WISE
TYPES OF CUSTOMER
GARMENT
SECTION
GIFTS
SECTION
MUSIC
SECTION CARDS SECTION
HIGH GRADE INCOME LEVEL 10% 15% 50% 7%MEDIUM GRADE INCOME
LEVEL 50% 55% 40% 53%AVERAGE GDARE INCOME
LEVEL 40% 30% 10% 40%
39
0%
20%
40%
60%
80%
100%
GARMENT
SECTION
GIFTS
SECTION
MUSIC
SECTION
CARDS
SECTION
TYPES OF CUSTOMER DEPARTMENT WISE
AVERAGE GDARE INCOME LEVEL
MEDIUM GRADE INCOME LEVELHIGH GRADE INCOME LEVEL
0 200 400 600 800 1000 1200 1400 1600
GARMENTS DEPARTMENT
GIFTS DEPARTMENT
CARDS DEPARTMENT
MUSIC DEPARTMENT
INTER-DEPARTMENT CUSTOMER FLOW
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With the study of customer flow in Big Bazaar on an average of high customer flow day
we came to know that its basically lies between 2000-2500 customers per day. Here weare taking the customers who are generating revenues for these departments.
From the above figures its executed that flow of customer in garment departments is
relatively higher than the others departments. One significant difference is noted from the
others retail is that they have placed their music department at the front of cash counters
and introduced low range of music cds and game dvds for the all category customers
which increased customer the flow in the music department.
Value of Stock in the different departments:
We have chosen 4 departments from Vishal Mega Mart and estimated the valuation of
average stock with the assumption details provided by the branch operation stuffs.
VALUE OF THE STOCKDEPARTMENT (Rs)
GARMENTS DEPARTMENT 163000000GIFTS DEPARTMENT 7500000
CARDS DEPARTMENT 150000MUSIC DEPARTMENT 580000
Value of the stock in the Garments Department:
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The garment section is divided into Men, women and kids section. They have also a
discount section only for the garments. In this section they are selling the old or rejected
stocks of major brands at a 40-50 percent discount rate. The value of stock in garment is
being overflowed at the time of winter season. Winter garments are costlier than the others
seasons and tends to double the value of stock. Normally they are maintain a stock value of
16.3 to 17 crore value of stock bus it increase at the time winter to more than 40 crore.
Value of the stock of the others departments:
41
163000000
8230000
Garment Deapartment others department
7500000
150000580000
0
2000000
4000000
6000000
8000000
1
VALUE OF STOCK IN THE OTHERS DEPARTMENTS
GIFTS DEPARTMENT CARDS DEPARTMENT MUSIC DEPARTMENT
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In some big retails its seen that they are including some cookery, home furnishings and life
style products in their gifts section. Big bazaar is maintaining a low stock but more product
categories in their gifts section and generating remarkable revenue from this.Stock of music department is overflowed with low price products. Their stock have a
potential to earn revenue from all categories as prices of products in this department lies
between Rs. 30 to Rs.400 approximately.
Revenue generated by the different departments:
To find out the profitability drivers we have compared the revenue generated by different
departments on the basis of 2004-05 to 2011-12. For this study we have considered average
revenue of a high customer flow day by the all income level customers.
REVENUE PER DEPARTMENT 2004-05 2011-12
GARMENTS DEPARTMENT 90000 300000
GIFTS DEPARTMENT 42000 180000
CARDS DEPARTMENT 2000 1800
MUSIC DEPARTMENT 19000 40000
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TOTAL 153000 521800
From the above study its revealed that at the time of inception of the organized retail in India in
the year of 2004-05, only the high grade and upper medium grade income level customers were
tends to go to the retails. So the maximum portion of revenues generated from these two groups
only in the year of 2004-05.
The change in revenue of garment department and in gifts department from the year 2004-05 to
2011-12 is significant because Big Bazaar is shifted products towards the own manufacturedbrands and they became successful to establish their own brands in the garment retail industry.
A measurable changes found in the cards department is that the revenues as well as the stock is
decreasing day by day because of changing customer preferences towards information
technology enabled services like SMS, MMS & E-mails.
FACTS AND FINDINGS
From the above analysis its found that the average customers in the all departments are the
all income level people in Big Bazaar. Meanwhile their main customer base is upper
middle, middle and average level income level customers.
43
0
100000
200000
300000
400000
500000
600000
GARMENTS
DEPARTMENT
GIFTS
DEPARTMENT
CARDS
DEPARTMENT
MUSIC
DEPARTMENT
TOTAL
2004-05
2011-12
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Garment Department
Overview:
In Garment department the products are mainly their own brands an price ranges lies
between Rs.99 to Rs.800 averagely which is very reasonable for the middle class,
average and also low level income group peoples. The stock in this section is fair to satisfy
its customer needs and attracts window shoppers to become a potential customer.
Findings:
The main facts that we have found in the garment section is that Big Bazaar mainly
focusing on the low range of products with their own brands. All the times they are giving
special discounts on all the garments products. They have adopted tricks like Buy 2 get
3, Buy 3 get 5 which looks like as if you buy 2 will get more 3 but the actual fact is that
if you buy 2 products will get 1 free as total you will get 3. Its a very strategic and
attractive offer specially adopted by Big Bazaar. They have also a section named LOOT
MART in the garments department. In this section they are selling the branded high-class
garments at a high discount rate of 50 to 60 percent.
Suggestions:
After discussing all the profit factors it can be suggest that as they have a good high income
level customer flow in the others departments like in the furniture and grocery department
they can introduce a wider range of branded products in the garment section as this income
is conscious about the brand that they are using.
Gifts Department
Overview:
Gifts department is consisting of various product categories from home furnishing products
to personal using products. According to Big Bazaar now a days no one can define which
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section should be referred as a gifts section. Customer preference is changing day by day
with the increased product categories.
Findings:
In Big Bazaar we have found that they are also referring home furnishing products,
personal care and low range electronic products as gift products and basically it depends on
the customers need and choice. The whole gift section is able to satisfy the all level of
income groups as they have a large collection of product categories but with a limited stock
of same products. A noted strategy is taken in the gifts department is that they are selling a
large varieties of products with a limited stock which helps them to implement a good
stock turnover ratio and generating good revenue from this department.
Suggestions:
Big Bazaar can focus on the stocks of the gifts though the stock of varieties is remarkable
but within the same category the stock is not appreciatable.
Music Department
Overview:
Music section consist of Music CDs, Game CD & DVDs and also Movie DVDs.
Findings:
Big Bazaar has introduced very low range CD & DVDs like Meyerbeer music and movie
CD-DVDs and price range lies in between Rs.30 to 100. Basically they are gaining a
competitive business at the age of piracy products in this industry. Also they have a very
good collection in games CD-DVDs category at a low price range of Rs.100 to 200
whereas if anyone go to the open market the average price range is Rs.300 to 400 for the
copyright product.
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Suggestions:
In the music its found that the collection of movie CDs and educational CDs is low than
the music and games CDs. They are emphasizing on the low price mp3 and game CDs
where as there is also a demand for educational and movies CD-DVDs.
Cards Department
Overview:
In the Indian scenario cards are not very popular and a seasonal business according to the
floor managers and management of the store. Also the demand is decreasing day by day
with the increase of information technology enable services.
Findings:
We have found that its a seasonal business and they only give focus at the time of
Christmas Day and New Year. Also the high grade income level people tends to go
specialized cards stores so only a few numbers of middle and average income level
customers who come to others departments sometimes seek for the cards.
Suggestions:
Though the demand of cards decreasing day by day but there are also some others events
rather than the 25th & and 31st eve. So a step can be taken by introducing low range of cards
attached with the gifts section to greet the wishes all the time.
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LIFESTYLE
Lifestyle International (P) Ltd is part of the Landmark Group, a Dubai based retail
chain. With over 30 years experience in retailing, the Group has become one of the
foremost retailers in the Gulf.
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Positioned as a trendy, youthful and vibrant brand that offers customers a wide variety of
merchandise at an exceptional value for money, Lifestyle India began operations in 1999
with its first store in Chennai.
Currently there are 14 Lifestyle stores, 7 Home Centre stores and 1 Baby Shop store across
Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Mumbai, Pune, New Delhi, Noida
and Gurgaon.
Today Lifestyle offers a truly international shopping experience, a fact borne by numerous
accolades.
Business World IMRB Most Respected Company Awards survey rated Lifestyle as the
Most Respected Company in the Retail Sector in 2003 and 2004
ICICI KSA Technopak Award for Retail Excellence in 2005
Reid & Taylor Retailer of the Year award in 2006
Lycra Images Fashion Award for the Most Admired Large Format Retailer of the
Year in 2006
Images Retail Most Admired Retailer of the Year Department Store in 2008.
ANALYSIS OF THE STUDY
Types of Customer:
Lifestyle International is a major player in the Indian organized retail industry. The have a
good customer base in the high class level income group. Mainly they focusing on the
Men-Women-Kids Apparel, gifts and also in the home furnishing products. They donthave any music, cards or cookery departments.
TYPES OF TARGET CUSTOMER
HIGH GRADE INCOME LEVEL 75%
MEDIUM GRADE INCOME LEVEL 20%
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AVERAGE GDARE INCOME LEVEL 5%
From the above analysis its revealed that though a very few numbers of low grade income
level customers are visiting the garment section but in the gifts section we have found that
the products are unreachable for the average level income groups.
Flow of customers in different departments:
Here we have analyzed the flow of customers per day basis. For this reason we have
studied customer flows on an average of high customer flow days.
Inter-Department Customer Flow
DEPARTMENT Number of Customer
GARMENTS DEPARTMENT 1100
GIFTS DEPARTMENT 600
50
0%
20%
40%
60%
80%
100%
GARMENT SECTION GIFTS SECTION
AVERAGE GDARE INCOME LEVEL
MEDIUM GRADE INCOME LEVEL
HIGH GRADE INCOME LEVEL
Inter-department Customer Flow
1100
600
0 200 400 600 800 1000 1200
GARMENTS
DEPARTMENT
GIFTS DEPARTMENT
Number of Customer
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In lifestyle we have found that the average customer flow lies between 1200 to 1500 on an
average high customer flow day.
The main products categories in Lifestyle basically the garments and home furnishing
products related to gifts items. We have found that in the case of garments department
customer flow is 1100 per day basis and in the case of gifts departments its 500 to 600 per
day basis. Its noted that the gifts department consists of exclusive products.
Value of Stock in the different departments:
VALUE OF THE STOCK
DEPARTMENT (Rs)
GARMENTS DEPARTMENT 760000000
GIFTS DEPARTMENT 50500000
51760000000
50500000
GARMENTS DEPARTMENT GIFTS DEPARTMENT
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The garment section is divided into Men, women and kids section as well as lifestyle
accessories and shoe wears. They have all the major brands like Blackberry, Louis Phillips,
Lee Coopers, Van Hausen, Parx, Lee for in the men category, Melanga, Code, Ginger in
the women category and for the kids section they have brands like Bossini, Benetton,
Orchestra, Juniors, Teeny Tiny, Artex etc.
The garments section includes:1. Watch section for the brands like Fast track, Zodiac, Hugo-boss, Nautica, Marie
Claire, Casio, Guess, GC, Kenneth Cole, Aspen, Skagen, Levis, Adidas etc.
2. Sunglass section for the brands like Ferrari, Mojo, Mont blanc, Scott,, Guess etc.
3. Fashion accessories for the brands like Tribal Zone, Sarah, Fire Fly, Adrika,
Earrings, Necklace, Bracelet, Anklet, Bangles, Hair Clips, Bra Straps, Scrunges,
Mens Jewelry, Kids Fashion.
All these product ranges are exclusively for the High grade income level customers.
The gifts section is consisting of high class home furnishings and personal grooming
products. They are introducing it by the name of Home Centre. Its a one-stop
destination for furniture, home ware and home furnishings that enterprises elegance, luxury
and individuality. Home Centre houses a wide range of contemporary and classic furniture,
linen as well as other home accessories, thus providing customers a high range products.
Revenue generated by the different departments:
REVENUE PER DEPARTMENT In 2011-12(Rs.)
GARMENTS DEPARTMENT 4000000
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GIFTS DEPARTMENT 1000000
TOTAL 5000000
The average revenue earned per customer basis is more Rs.6000. Comparison of revenue
generated by the each departments is taken into consideration on an average of high
customer flow days.
FACTS AND FINDINGSFrom the above analysis its found that the average customers in the all departments are
basically high grade income level customers. All the products ranges in the both
departments significantly refer to premium customers.
Garment Department
Overview:
In Garment department the products are mainly the major international readymade brands
and price ranges lies between Rs.800 to Rs.2000 averagely which is meant for a few
Indians customers.
53
0
1000000
2000000
3000000
4000000
5000000
GARMENTS
DEPARTMENT
GIFTS
DEPARTMENT
TOTAL
Revenue in 2011-12 Department
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Findings:
The products exclusively for a certain income level customers. Maximum products are
unreachable for the medium and average income level peoples. Whatever the stock is quite
efficient to satisfy their potential customers.
Suggestions:
They are focusing a very few Indian customers and the most of the Indian consumers cant
afford this price ranges. So if they want to increase their market share in the Indian retail
Industry they should introduce such product ranges also which can be affordable for the
medium level income groups and the main customer in the retail industry lies within it.
Gifts Department
Overview:
Gifts department is consisting of various product categories from home furnishing products
to personal grooming products.
Findings:
In the Lifestyle we have found a wider range of glass made and metal products which are
exclusive and also the quality isnt up to the price levels. Whatever, the stock is sufficient
to satisfy its customers but the price range is found very high as a gift product in this
department.
Suggestions:
Again the Indian retail industry is targeting the medium level income group people as its
increasing day by day but the products in the Lifestyle store is meant only for the high class
consumers which is very low in population in India. Also an important point is noted that
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though the volume is sufficient but the varieties in product categories as a gift arent
sufficient.
COMPARITIVE ANALYSIS OF THE STORES
On the basis of customer flows:
We have considered the average of the high customer flow days.Flow of Customer per Day
Store Name No. of Customer
Vishal Mega Mart 1600
Life Style 1200
Big Bazaar 2300
55
0
500
1000
1500
2000
2500
Number of
Customer
Vishal Mega Mart Life Style Big Bazaar
Name of the Store
No. of Customer
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Vishal Mega Mart: From the study its revealed that the average customer flow is mediumgrade income level customers and average grade income level customers.
Life Style: The customer flows in this store is basically refers to the high and upper
medium income level customers.
Big Bazaar: They are focusing on the all income level customers but it depends on the
departments wise also.
On the basis of stock value:
Comparison of stock value
Store Name Garments Dept Gifts Dept Cards Dept Music Dept
Vishal Mega Mart 65000000 250000 77500 175000
Life Style 735000000 55000000Big Bazaar 163000000 7500000 150000 575000
Garments Department:The value of stock depends on the season. At the time of winter season it increases up to 2
to 3times than the other seasons as the price of winter garments is relatively higher than
springs-summer collection.
56
0
100000000
200000000
300000000
400000000
500000000
600000000
700000000
800000000
Vishal Mega Mart Life Style Big Bazaar
Garments Dept
Garments Dept
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Vishal Mega Mart: The product in the garment section isnt exclusive and meant for the
medium to average grade income level customers. Also they arent focusing on major
brands in the garment industry. All the products are unbranded and semi branded and dont
attracts the high grade level income groups. However brand consciousness not present but
the stock volume is able to met customer satisfaction.
Life Style: All the major brand players are maintaining their stocks in garments section as
their main focus is on the Apparel products. Product ranges is very high and meant for the
high class consumers.
A high brand consciousness helping them to generate remarkable revenue with a high stock
turnover ratio and smiling face of customers.
Big Bazaar: They have their own brands in the garments department with a reasonable
price for the upper medium, medium and average class income groups. Though brand
conscious people will think at the time purchasing but customer are satisfied with the stock
and as well as quality related to price.
Gifts Department:
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0
10000000
20000000
30000000
40000000
50000000
60000000
Vishal Mega Mart Life Style Big Bazaar
Gifts Dept
Gifts Dept
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Vishal Mega Mart: They are not focusing on the gifts stock for the result customer flow
and revenue from this section is very low and no point is gaining for the customer
satisfactory level.
Life Style: A very large investment in the gifts section is found at the time of study. They
are basically emphasizing on introduction of personal grooming products and home
furnishing products in the gifts section. This department is solely for the upper class
consumers and customer satisfactory level is remarkable.
Big Bazaar: A wider range of products is found in gifts section for the all income levelpeople. Though the variety in the product categories is high but the volume of stock in the
same product is low. However customers are happy with the large number of collection of
gifts items.
Cards Department:
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0
20000
40000
60000
80000
100000
120000
140000
160000
Vishal Mega Mart Life Style Big Bazaar
Cards Dept
Cards Dept
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Vishal Mega Mart: Stock in this department is taken care as relatively low and its
considered as a seasonal business.
Big Bazaar: Stock in this department is taken care as relatively low and its considered as
a seasonal business.
Music Department:
Vishal Mega Mart: Music department is consisting of music, movies and games CD-
DVDs. The stock of game CD-DVDs is higher than the others and price range is
relatively not for the medium and average income groups though they are focusing on this
income group only and a result they failed to satisfy their customer needs.
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0
100000
200000
300000
400000
500000
600000
Vishal Mega Mart Life Style Big Bazaar
Music Dept
Music Dept
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Big Bazaar: Their music department is also consisting of music, movies and games CD-
DVDs and they have maintained a good balance between the stock level in all the
categories. And also a remarkable change is noted that they selling very low range products
within this copyright product categories. They customer satisfaction level is high with the
fulfillment of their needs.
On the basis of revenue:
Comparison of Revenues
Store Name 2004-05(Rs.) 2011-12(Rs.)Vishal Mega Mart 58500 196800
Life Style ----------- 5000000
Big Bazaar 160500 481500
60
0
1000000
2000000
3000000
4000000
5000000
Vishal Mega Mart Life Style Big Bazaar
Comparison of Revenues
2004-05(Rs.)
2011-12(Rs.)
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IN 2004-05:
At the time of sunrise of organized retail industry in India, the scenario was not been like
present days. At that time it was a very new concept of marketing for the Indian consumers.
Only the high class level and a few upper medium class income group customers were
visiting to those retail markets. The perception of middle and lower class peoples was that
these stores had over-valued their products and to some extent it was right also.
IN 2011-12:
Now a days shopping in the retail stores is a very common things. Peoples are habituated
to go into the retails in the weekends. Day by day the organized retailers are becoming
stronger to attract customers. Hyper- markets like Vishal mega mart, Big Bazaar, Hometown have the stock to fulfill all the needs of customers from alpine to elephant.
On the basis of Revenue per customer:
For the study of revenue per customer, we have taken the contribution of total customer
flow on the total revenue of the stores on an average of high customer flow days.
Revenue per customer basis
Store Name 2004-05(Rs) 2011-12(Rs)Vishal Mega Mart 450 1350
Life Style 6000
Big Bazaar 650 2100
61
0
10002000
3000
4000
5000
6000
Vishal Mega Mart Life StyleBig Bazaar
Comparison of Revenue per customer
2004-05
2011-12
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Vishal Mega Mart: Though the revenue per customer of the Vishal mega Mart increased
from 2004-05 to 2011-12 but the revenue per customer is significantly low than others. As
their main customer base is medium and average income group customers and also
customer flow is low so it generates significantly low revenue per customer.
Life Style: The customer flows in this store is basically refers to the high and upper
medium income level customers and though their customer flow is lower but their return on
investment is high so it helps to earn a high income per customer.
Big Bazaar: They are focusing on the all income level customers with a high customer
flows per day and have a base of brand consciousness amongst the customer whichs
helping them to increase their revenue per customer. Also there is a major contribution of
the others departments like grocery and vegetables department towards the per customer
revenue.
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Company Profile
RPG Enterprise
Type: - Private Conglomerate
Founded: - Mumbai, India (1979)
Founder(s):- RP Goenka
Headquarters: - Mumbai, India
Key People: - RP Goenka (Chairman Emeritus)
Harsh Goenka (Chairman)
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Sanjeev Goenka (Vice Chairman)
Industry: - Power, Retail, Tyres/Tires, Transmission,
Technology, Entertainment and other
Revenue: - US$3.25 billion
Employees: - 58000
Website: - www.rpggroup.com
RPG Enterprises:-
RPG Enterprises, established in 1979 by RP Goenka, is one of Indias fastest
growing business groups with a turnover touching Turnover of Rs. 13,500 cr. and initially
encompassed Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy India.
Currently, RP Goenka retains the title of Chairman Emeritus, while the chairmanship and
vice-chairman ship have been assumed by his sons Harish and Sanjeev Goenka
respectively.
The group has more than twenty companies managing diverse business interests in the
areas of Power, Tyre, Transmission, IT, Retail, Entertainment, Carbon Black, and
Specialty.
The conglomerates major companies, subsidiaries and affiliates are..
Power
CESC
Noida Power Company Limited
Tyres / Tires
CEAT
CEAT Srilanka
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Phillips Carbon Black
Harrisons Malayalam
Transmission
KEC International
RPG Transmission
Nitel
Technology
Zensar Technologies
RPG Cables RPG Life Sciences
Raychem RPG
Retail
Spencer's Retail
Music World
Books and Beyond RPG Cellucom
Entertainment
Saregama
Other
Spencer's Travel Services Spencer International Hotels
Wide-ranging businesses, growing returns and a reputation to reckon, makes working with
RPG an enriching experience. Where entrepreneurial skills are valued, excellence is the by-
word, and performance is a pre-requisite.
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Management
The RPG Management Board is the backbone of the conglomerate. Its members are
highly qualified professionals, well experienced in their respective fields.
Values
RPGs business ethics promote higher levels of excellence. The groups values of
Customer Sovereignty, People Orientation, Innovation & Entrepreneurship,
Transparency & Integrity and Passion for Superior Performance, Anticipation, Speed
and Flexibility propel it to perform and excel in all spheres of the business.
Quality
For RPG quality determines success. Continuous process improvements are carried
out to ensure complete satisfaction of customer and market requirements.
Beyond Business
RPG is a socially responsible organization; believing in giving back to the
community what it has gained from it. The group regularly contributes toward the
welfare of various social groups and is involved in promoting social activities in the
field of sports and arts.
History of RPG Group
The history of RPG began in 1820 when Ramdutt Goenka, from a small town in Rajasthan,
came to Calcutta to do business with the British East India Company. The following
milestones speak of his enterprising efforts, and the subsequent growth of the RPG group.
By the 1900s the Goenkas establish themselves in diverse business sectors like
banking, textiles, jute and tea.
Sir Hariram Goenka and Sir Badridas Goenka are conferred knighthood by the
British for outstanding contribution to business and the community.
In 1933, Sir Badridas Goenka becomes the first Indian to be appointed Chairman of
the Imperial Bank of India (now the State Bank of India).
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He is elected President of the Federation of Indian Chambers of Commerce and
Industry (FICCI) in 1945.
Keshav Prasad Goenka (son of Sir Badridas Goenka) continues the successful trait
of entrepreneurship.
In 1950 Goenkas acquire two British trading houses - Duncan Brothers and
Octavius Steel.
After successful acquisitions in the areas of tea, automobile, tyre, jute, cotton textile
and electric cables, Keshav Prasad Goenka retires in the 70s. His business is taken
over by his three sons.
One of the sons, Rama Prasad Goenka (better known as RP Goenka), starts RPG
Enterprises in 1979 with Phillips Carbon Black, Asian Cables, Agarpara Jute and
Murphy India.
The 80s see further acquisitions by the RPG group, the first being CEAT Tyres of
India in 1981. The group then went on to acquire KEC (1982); Searle India, now
RPG Life Sciences (1983); Dunlop (1984); HMV (1988); and finally CESC,
Harrisons Malayalam, Spencer & Co. and ICIM in 1989.
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LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of fact constraints were at play during the formulation
of this project. The main limitations are as follows:
Due to limitation of time only few retail stores are taken into consideration of thisstudy. So the sample of retailers was not enough to generalize the findings of the
study.
The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are less.
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Concern person from the organized retail stores were hesitant to disclose the true
facts as the data related to strategic secrets.
The chance of biased response cant be eliminated though all necessary steps were
taken to avoid the same.
RECOMMENDATIONS
1. Customers requirement of diversification of product offering should also be
taken in consideration.
2. The company should emphasize on private brands which are contributing the
most in its profits.
3. In accordance to the market situation in India (price-sensitivity) pantaloon can
reach to incredible heights by providing value to customers.
4. Pantaloon should more focus on tier-2 cities also like Chandigarh, pune, rather
than focusing on metro cities only.
5. Pantaloon should aggressively promote its new formats, like aLL and mela etc.
6. Pantaloon should focus on being first mover in developing innovative ideas for
serving customers.
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7. Some of the pantaloons products like men ethnic section are very different and
advantageous for it and it is suggested to keep focus on it.
8. Every possible effort should be made to avoid shrinkage at the store level.
9. Pantaloon must do a good job of managing their inventory levels, personnel
needs, and style/fashion trends to ensure they will not lose their consumers business
during up and down periods.
10. The company should also focus on demographic shifts that will help it to alter
its strategies in accordance to the changing strategies.
CONCLUSION
Competition in retail industry is getting tough day-by-day. By seeing more growth
prospects in this industry many Indian and foreign companies are entering into it. To
survive and grow in this competitive industry the company has to differentiate itself among
its competitors. Companies will have to look once more at its strategies in order to become
successful. Customer centric approach is required to be applied because ignorance to
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customer needs will lead the company to nowhere. A deep study of the environment
supposed to be done. Due to large no. of competitors the company should try to be first
mover in some particular segments and reactive actions should also be taken care of. An
eagle eye should be kept on Government restrictions, demographic movements, and
competitors strategy because these factors affect a companys ability to serve its targeted
customers. Intelligent analysis of internal and external factors and making changes thereon
can take the company to incredible heights.
BIBLIOGRAPHY
BOOKS
Marketing Management by Philip Kotler
Strategic Management by Ireland, Hoskisson, Hitt
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Competitive Advantage by michael e. porter
Strategic Marketing Planning by Collin Gilligon
WEBSITES
http://www.pantaloon.info
http://www.pantaloon.com
http://www.futuregroup.com
http://www.retail.com
NEWSPAPERS
Times Of India
JOURNALS
Business Today
ANNEXURE
QUESTIONNAIRE:
Q1.How often do you shop from organized retail?
A. Once in a week
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B. Once in a fortnight
C. Once in a month
D. Occasionally
E. Rarely
Q2.According to you which is the most happening [famous] store?
A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop
Q3.Which store has most affordable clothes?
A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop
Q4.Do you have membership with any store among the following?
A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop
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Q5.You hears/see ads/promotions about:
A. Pantaloon
B. Lifestyle
C. Westside
D. Globus
E. Shoppers stop
Q6.From where do you come to know about it?
A. FriendsB. Family
C. Media
D. Pamphlets
E. Others.
Q7.Best thing about the store that motivates you to shop in any retail store :
A. Affordable price range
B. Collection.
C. Customer service
D. Additional benefits (schemes, loyalty programmes etc.)
E. Brand loyalty
Q8.From how long are you shopping here in pantaloon?
A. From few weeks.
B. From last few months.
C. From a year ago.
D. From years ago.
E. Dont remember.
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Q9.Do you get adequate shopping options here in pantaloon?
A. Yes
B. No
Q10.Please rate pantaloon, Shoppers Stop, Westside, lifestyle, Globus on points below:
A. Price range
B. Customer service
C. Benefits
D. Additional benefits
Q11.What more are you looking for from pantaloon?
1. Affordable prices.
2. Complete collection.
3. Better customer services.
4. Some more shopping benefits.
(i) Yes (ii) No
Questionnaire filled up by :Designation :Age :Working here for :Date & Time :Place :
(Be sure that all the details will be kept in safe and will not be disclosed or used on any
others purpose)
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Thanking for your valuable time and support.
THE GREAT INDIA PLACE
Formats of the stores in the Great India Place:
SRL NO NAME OF THE STORE TYPE OF THE STORE
GROUND FLOOR
1 GLOBUS SPECIALITY CHAIN2 LIFE STYLE DEPARTMENTAL STORE3 BOSSINI SHOP4 METRO SHOES SPECIALITY CHAIN5 WOODLAND SPECIALITY CHAIN6 TANABANA SHOP7 BOMBEY SELECTION SHOP8 M & B FOOTWARE SPECIALITY CHAIN9 NAKSHATRA SPECIALITY CHAIN
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10 MARKS & SPENCER DEPARTMENTAL STORE11 LEVIS FLAGSHOP SPECIALITY CHAIN12 GIOVANI SHOP13 SHOPPERS STOP DEPARTMENTAL STORE14 PANTALOONS DEPARTMENTAL STORE
15 INDIGO NATION SPECIALITY CHAIN16 LILLIPUT SPECIALITY CHAIN17 WILLS LIFESTYLE DEPARTMENTAL STORE18 KAZO SHOP19 COSTA COFFEE SPECIALITY CHAIN20 KFC SPECIALITY CHAIN21 PIZZA HUT SPECIALITY CHAIN22 ZARDARI SHOP23 DIMENSION SHOP24 KILOL SHOP
25 KALPANA SAREES SPECIALITY CHAIN26 MEENA BAJAR DEPARTMENTAL STORE27 ZODIAC SPECIALITY CHAIN28 REEBOK SPECIALITY CHAIN29 BG's SPECIALITY CHAIN30 ARCHIES SPECIALITY CHAIN31 WORLD OF TITAN SPECIALITY CHAIN32 HOME TOWN HYPER MARKET33 BIG BAZAAR HYPER MARKET
FIRST FLOOR
34 MONTE CARLO SPECIALITY CHAIN35 REID & TAYLOR SPECIALITY CHAIN36 PALL MALL SHOP37 CAF COFFE DAY SPECIALITY CHAIN38 RAYMOND SPECIALITY CHAIN39 SAMSONITE SPECIALITY CHAIN40 SHOPPERS STOP DEPARTMENTAL STORE41 VEN HEAUSEN SPECIALITY CHAIN42 ADIDAS SPECIALITY CHAIN
43 SPYKAR SPECIALITY CHAIN44 REEBOK SPECIALITY CHAIN45 LEE SPECIALITY CHAIN46 NIKE SPECIALITY CHAIN47 GLOBUS SHOP48 PUMA SPECIALITY CHAIN49 MOUSTACHE SPECIALITY CHAIN
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50 GILI WORLD SPECIALITY CHAIN51 BLACKBERRY SPECIALITY CHAIN52 RITU KUMAR SPECIALITY CHAIN53 HIMALAYA OPTICAL SPECIALITY CHAIN54 LACOSTE SPECIALITY CHAIN
55 KODAK EXPRESS SPECIALITY CHAIN
2ND FLOOR
56 ME 'n' MOM SPECIALITY CHAIN57 CASIO SPECIALITY CHAIN58 CARLTON LONDON SPECIALITY CHAIN59 KITTEN SHOES SHOP60 CATMOSS SHOP61 OCTMOSS SHOP62 OCTAVE SHOP
63 MAX LIFESTYLE SPECIALITY CHAIN64 GKB OPTICAL SPECIALITY CHAIN65 PEPE JEANS LONDON SPECIALITY CHAIN66 ODYSSEY SPECIALITY CHAIN67 BOSE SPECIALITY CHAIN68 STEPPING STONE SPECIALITY CHAIN69 VIVID SPECIALITY CHAIN70 ZEST SHOP71 INDIGO SPECIALITY CHAIN72 SHAW BROTHERS SHOP
THIRD FLOOR
73 HOOP SHOP74 BARISTA SPECIALITY CHAIN75 BOWLING CO SPECIALITY CHAIN76 YATRA SPECIALITY CHAIN77 STREET FOOD OF INDIA SPECIALITY CHAIN78 NIRULA's SHOP79 TANDOORI VILLAGE SHOP80 YO CHINA SPECIALITY CHAIN81 SAGAR RATNA SHOP
82 SANRIO SHOP83 ICE CURE SHOP84 BIG CINEMAS SPECIALITY CHAIN85 MUSIC LAND SPECIALITY CHAIN86 MASAKALI SHOP87 MY DOLLER STORE SPECIALITY CHAIN88 JUMBO ELEVTRONIC SHOP
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89 STAPLES SPECIALITY CHAIN90 FIT & ACTIVE GYM SHOP
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