Vishal Mega Mart

RESEARCH

PROJECT REPORTON

CUSTOMER SATISFACTIONAT

IN PARTIAL FULLFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

Submitted By : Submitted To:

Name: VIPIN KUMAR Name: prof. K.TARA SHANKAR

VISB/PGDM/09/00031 Designation: HOD (PGDM)

VIDYA INTERNATIONAL SCHOOL OF BUSINESS

MEERUT

1 | P a g e DELARATION

Vishal Mega Mart

I do hereby declare that the project entitled

“CUSTOMER SATISFACTION” a bonafide record of the work done

by me at“ VISHAL MEGHA MART” towards the partial fulfillment

of requirement for POST GRADUATE DIPLOMA IN MANAGEMENT

under the supervision and guidance of Dr.GAURAV JOSHI(Faculty

Guide) and this project report have not been submitted

anywhere else previously for award of any Degree/Diploma

/Fellowship.

Vipin kumar

2 | P a g eEXECUTIVE SUMMARY

Vishal Mega Mart

The project is about business development strategy of Vishal Retail in

near future as a part of expansion plan being adopted by the company.

This is about all the operations performed in the Vishal Mega Mart.

Retail industry is booming all around the globe at a very fast pace. Vishal

Retail is a known and strong competitor in the retail industry since

23 years. When we talk about Indian market, the demands of every thing

which you can find in every retail store are increasing every year. Indians

are famous for their traditions and festivals and exchanging gifts with

friends and relatives is a part of it.

This project report is the study of various activities and strategies of

Vishal Mega Mart and relates it to the theoretical aspects within the

scope of our subjects. It also helps us in understanding the functioning

that took place with in an organization from different perspectives. A

questionnaire has been drafted, to try and understand the psyche of the

VISHAL MEGA MART customers to know their needs and expectations

which can be further utilized by the company to gain a competitive edge

over their competitors. It also helps us in understanding the different

technologies being used by VRPL.

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ACKNOWLEDGEMENT

Vishal Mega MartWords often fail to express one’s inner feelings of gratitude and

indebtedness to one’s benefactors, but then it is only the readily

available medium through which the undersigned can express his

sincere thanks to all those who are associated with the work in one

way or the other. Nothing concrete can be achieved without an

optimal combination of inspiration and perspiration. No work can be

accomplished without taking the guidance of the experts. It is only

the critiques from ingenious intellectuals that helped transform a

product into a quality product.

Project work is never the work of an individual. It is more of a

combination of use, suggestions and contributions and work involving

many individuals. This project also bears the impact of many people.

First and foremost I would like to gratefully acknowledge and express

my sincere gratitude towards Dr.Gaurav Joshi , my faculty guide who

always helped and provided guidance during the course of my project. I

would like to extend my earnest thanks for her assistance in the course

of my project. The learning during the project was immense &

invaluable.

Vipin kumar

4 | P a g e TABEL OF CONTENTS

Vishal Mega Mart

S. NO. CONTENTS PAGE NO.

Cover page / Title page 1Declaration 2Executive summary 3Acknowledgement 4About retail sector 7-12

1 Company profile 13-192 Marketing Management 20-253 Operations Management 26-354 Management Technology 36-395 MIS 40-426 HRM 43-477 e-commerce 488 Organisation Structure 499 Swot Analysis 55-56

Project title 57Objective 58Limitations 59Research Methodology 60Data Analysis 61-71Conclusion 7

2Recommendation 7

3Bibliography 7

4Annexures(Questionnaire) 7

5

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II

III

I

IV

V

10

II

I2

I3

I4

I5

I6

I7

I8

Vishal Mega Mart

S. NO. FIGURES TITLE & NO. PAGE NO.

1 (1.1)SEX RATIO 622 ( 2.1)AGE GROUP 633 (3.1)EXITES FOR

SHOPPING64

4 (4.1)FREQUENCY OF VISIT

65

5 (5.1)TYPE OF VISIT 666 (6.1)AMOUNT SPENDED BY

CUSTOMER67

7 (7.1)ITEM USUALLU PURCHASED 688 (8.1)SATISFACTION WITH PRODUCT

QUALITY69

9 (9.1)PROBLEMS FACED BY CUSTOMERS

70

(10.1)OVERALL SHOPPING EXPERIENCE

71

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TABEL OF FIGURES

10

Vishal Mega Mart

The Retail Sector is the largest sector in India after agriculture, accounting for

over 10 per cent of the country’s GDP and around 8 per cent of the employment.

India has the most unorganized retail market in the world. Most retailers of the

unorganized retail market have their shop in the front and house at the back. The

Retail Industry in India is today amongst the fastest growing industries with

several players entering the market. Currently, the organized retail sector accounts

for only 2 per cent indicating a huge potential market opportunity. India is being

seen as most attractive market by retail investors from all over the world. Retail is

clearly the sector that is poised to show the highest growth in the next five

years. The sector is set for a revolution, as both the present players and new

entrants are gearing up to explore the market. The present size of the organized

retailing sector is approximately 3% and is expected to grow to 25-30% by the

year 2010. There are about 300 new malls, 1500 supermarkets and 325

departmental stores currently under construction. Many players are coming up

with huge investments, due to which the present 12 million mom-and-pop shops

and kirana stores fear losing their business. Most predictions say that the sector

might reach to US$ 400-600 billion by the year 2010.

. The rising demands of branded products and increase in purchasing power have

lured these companies to enter the market. Modern retail development in India is

focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National

Capital Region, Chennai, Banglore, Hyderabad, Kolkata. The leading Indian

retailers are Bata India Ltd, Big Bazaar, Crossword, Vishal Mega Mart., Food

Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment

Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries etc.

7 | P a g e

ABOUT RETAIL SECTOR

Vishal Mega Mart

I t include s : -

Ma ll s like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida) etc

D i s count S tores like Brand Factory, Loot, M&B Factory, Subhiksha, Big Apple, and Reliance Fresh.

D epartment Stores like Shoppers Stop, Big Shop, and Pantaloons.

H ypermarket s / S u permarkets like Big Bazaar, Vishal Mega Mart.

C onven i ence S tores like Spencer’s Daily, Tru Mart, Choupal, More.

Mu l ti Brand Outlets like Globus.

A glimp s e o f the inte r national r etai l -

47 global fortune companies & 25 of Asia's top 200 companies are retailers

Dominated by developed countries US, EU & Japan constitute 80% of world retail sales.

Biggest player in India is Pantaloon Retail India Limited.

8 | P a g e

MODERN RETAIL STRUCTURE

CURRENT SCENARIO

Vishal Mega Mart

USA - 85%

Taiwan - 81%

Malaysia - 55%

Thailand - 40%

Brazil - 36%

Indonesia - 30%

Poland - 20%

China - 20%

India - 3%9 | P a g e

PERCENTAGE OF ORGANIZED RETAIL

Vishal Mega Mart

•

Reliance Retail: Investing Rs.30, 000 crore ($6.67 billion) in setting up multiple retail formats with expected sales of Rs.90, 000 crore-plus ($20 billion) by 2009-10.

• Pantaloon Retail: Plans to occupy 10 mn sq.ft retail space and achieve Rs.12, 000 crore-plus ($2.5 bn) sales by 2010.

• RPG: Planning IPO will have 450-plus Music World, 50-plus Spencer's Hyper covering 4 mn sq.ft by 2010.

• LIFESTYLE: Investing Rs.400 crore-plus ($90 mn) in next five years on Max Hypermarkets & value retail stores, home and lifestyle centers.

• Raheja's: It Operates Shoppers Stop, Crossword, Inorbit Mall, and 'Home Stop' formats. Will operate 55 Hypercity hypermarkets with US$100 million sales across India by 2015.

• Piramyd Retail: Aiming to occupy 1.75-million sq.ft retail space through 150 stores in next five years.

• TATA (Trent Ltd.): Trent to open 27 more stores across its retail formats adding 1 mn sq.ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan and Tanishq stores in 2010.

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Road Ahead; Plans of Large Retailers

Vishal Mega Mart

The following are the reasons for growth of retail sector in India-

Increase in disposable income of consumers, Increase in consuming

desire, Low share of organized retailing. Purchasing power of Indian

urban consumer is growing and branded merchandise in categories

like Apparels, Accessories, Food, and even Jewellery, are slowly

becoming lifestyle products. Retailers are taking benefit of this

growth and accordingly are aiming to expand. Indian retail is

expanding at a fast pace. India's retail industry, which is currently

valued at nearly $350 billion, is expected to double in size by 2015.

The Indian Retail Industry is gradually moving ahead towards

becoming the next boom industry.

Modern Large-Format retail, efficiently connects the producers and

the consumers and is helpful to both in the long run. In India there is a

huge wastage of fresh fruits and vegetables.In this scenario, the

Large-Format Retail provides all important infrastructures to carry

the farm produce to the consumers with lesser wastage. In this way

the farmers get better returns and the consumer better quality and

price.

11 | P a g e

GROWTH OF RETAIL SECTOR

Vishal Mega Mart

The existing players like Big Bazaar, Shoppers' Stop, Piramyd,

and Vishal Mega Mart are expanding to smaller towns and

cities. Many other business houses are planning to enter the

retail sector either on their own or through partnerships. New

entrants like Bharti pvt ltd and Wal-Mart are going to enter the

market soon. Even rural areas will provide a huge opportunity

to be explored.

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KEY TRENDS

Vishal Mega Mart

What started as a humble one store enterprise in 1986 in Kolkata

(erstwhile, Calcutta) is today a conglomerate encompassing around

183 showrooms in 110 cities / 24 states. India’s first hyper-market has

also been opened for the Indian consumer by Vishal. Situated in the

national capital Delhi this store boasts of the singe largest collection of

goods and commodities sold under one roof in India.

VRPL was incorporated on July 23, 2001 under the Companies Act,

1956 as Vishal Retail Private Limited. VRPL was converted to a public

limited company on February 20, 2006. At the time of incorporation,

the registered office of VRPL was situated at 4, R. N. Mukherjee Road,

Kolkata 700 001. Subsequently VRPL’s registered office was shifted

to 54/4C, Strand Road, Kolkata 700 006 on August 1, 2001 and on

February 14 2004, VRPL’s registered office was shifted to Mouza

Kuch Pukur, P.S. Bhangore, 24

Paragnas (South), West Bengal. On December 29, 2005, VRPL’s

registered office was shifted to RZ-A-95 & 96, Road No. 4, Street No.

9, Mahipalpur Extension, New Delhi 110 037, which is the present

registered office of the Company. The fresh certificate of incorporation

13 | P a g e

“VISHAL RETAIL PVT. LTD” HISTORY

COMPANY PROFILE

Vishal Mega Martconsequent on change of name was granted to our Company on

February 20, 2006 by the Registrar of Companies, West Bengal.

With a business purchase agreement dated November 23, 2001

executed between VRPL and Mr. Ram Chandra Agarwal (carrying on

proprietorship

business in the name of M/s The Vishal Garments) and Mrs. Uma

Agarwal (carrying on proprietorship business in the name of M/s

Vishal Garments), VRPL acquired the business of “M/s The Vishal

Garments” and “M/s Vishal Garments”, and the said businesses

were transferred to VRPL as a going concern with effect from

December 15, 2001.

With a business purchase agreement executed between VRPL and

M/s Vishal Fashions

Private Limited, they acquired the business of manufacturing of

readymade garments as a going concern with effect from March 31,

2003. VRPL went into backward integration by acquiring a

manufacturing unit for readymade garments.

14 | P a g e

Vishal Mega Mart

 

 

Mr. Ramchandra Aggarwal Mrs. Uma Aggarwal Mr. Surendra Aggarwal

Vishal Retail Ltd. has a factory in Gurgaon, Haryana. This factory has more

than 700 imported machines that have a capacity to manufacturer 150000 pieces a month. The factory occupies 80000 sq ft of covered space. The Vishal group indirectly gives employment to more than a 1000 people. These people work in ancillaries that supply finished goods to the company.

Our 10 warehouses cater to 46 showrooms in 34 cities. These have a covered space of 11,00,000 sq ft. By the end of March 2007 we will expand our outlets to 61 companies owned outlets and many franchise operations.

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The Founders

Vishal Mega Mart

Mr. Ram Chandra Agarwal, 43 years, is VRPL’s Chairman and Managing Director. He holds a bachelor’s degree in commerce from St. Xavier’s College, Kolkata. Mr. Agarwal has more than 20 years of experience in the retail industry and has been with VRPL since their inception in 1997. He started the business under the name of “Vishal Garment” with a small store at 9, Lal Bazaar Street, Kolkata. Mr. Agarwal has made efforts for the development of the value retailing industry in India and is well known for his business acumen.

Mrs. Uma Agarwal, 33 years, is an executive Director of VRPL. She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of experience in the retail industry. She has been associated with accounts department of VRPL.

Mr. Surendra Kumar Agarwal, 46 years, is an executive Director of VRPL. He holds a bachelor’s degree in commerce. Mr. Agarwal has more than 17 years of experience in the retail industry. He has been associated with store development and management at various locations of VRPL.

Mr. Bharat Jain, 45 years, is an independent Director of VRPL. He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather garments and accessories and has more than 23 years of work experience. Mr. Jain joined VRPL Board on May 8, 2006.

Mr. Rakesh Aggarwal, 44 years, is an independent Director of VRPL. He holds a master’s degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding industry has more than 20 years of work experience. Mr. Aggarwal joined VRPL Board on October 31, 2006.

16 | P a g e

DETAILS OF DIRECTORS

Vishal Mega Mart

T he fo ll o w i ng i nd i v i dua l s are t he Pro m o t ers of t he Co m pany:

a). Mr. Ram Chandra Agarwal;

b). Mrs. Uma Agarwal; and

c). Mr. Surendra Kumar Agarwal.

T he fo ll o w i ng co m pan i es are t he P ro m o t ers of t he Co m pany:

a). Unicon Marketing Private Limited;

b). Ricon Commodities Private Limited; and

c). Vishal Water World Private Limited.

The company has during the year 2008, established its five new

companies by the name of VRL Foods Ltd., VRL Movers Ltd.,

VRL Consumer Goods Ltd., VRL Fashions Ltd. & VRL

Infrastructure Ltd., none of the companies have commenced

business operations during the year.

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VRPL PROMOTERS AND GROUP COMPANIES

Vishal Mega Mart

VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In

2003, VRPL acquired the manufacturing facilities from Vishal Fashions

Private Limited and M/s Vishal Apparels. Subsequently, with evolution of

retail industry in India and change in consumer aspirations, VRPL diversified

their portfolio of offerings to include other retail goods. Currently, VRPL sell

ready-made apparels and a wide range of household merchandise and

other consumer goods such as footwear, toys, watches, toiletries,

grocery items, sports items, crockery, home furnishing, beverages, drinks,

gift and novelties.

VRPL follow the concept of value retail in India. In other words, VRPL’s

business approach is to sell quality goods at reasonable prices by either

manufacturing themselves or directly procuring from manufacturers

(primarily from small and medium size vendors and manufacturers). VRPL

endeavor to facilitate one-stop-shop convenience for their customers and

to cater to the needs of the entire family. VRPL believe this concept has

helped them grow to their current size within a short time frame of 8 years.

In order to reduce costs and take advantage of economies of scale VRPL

have embarked on backward integration of their products. VRPL’s apparel

manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency

in supply chain, VRPL have set up seven regional distribution centers

located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur

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VRPL’s BUSINESS

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Vishal Mega Mart

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon

(Haryana) and Delhi. Further, VRPL have focused on developing a cost

and time efficient distribution and logistics network, which currently

comprises seven distribution centers and a fleet of trucks for

transportation.

VRPL achieved total sales of Rs. 1005.31 cr for fiscal 2008, as opposed to a

turnover of Rs.602.65 cr for fiscal 2007 and Rs. 288.46 million for fiscal

2006. During the same period VRPL’s profit after tax was Rs. 40.64 cr,

Rs.25.07 cr and Rs. 12.39 cr, respectively.

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Vishal Mega Mart

M A R K E T I N G M A N A G E M E N T

O BJE C T IV E:-

To understand the different marketing strategies being followed by VishalMega Mart.

To learn their marketing mix.

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

> Learning who your customers are and what they want.

> Learning how to reach your customers and how frequently

you should try to communicate with them.

> Learning which advertising appeals are most effective and

which ones get no response.

> Learning the relative success of different marketing strategies,

thus improving return on investment.

> Learning how not to repeat your mistakes.

Vishal Mega Mart has been the pioneer of retail revolution. Its first

fight was against local ‘Kirana’ stores. The task was to change the

mindset of consumer to bring about changes in their shopping

patterns. It wanted people to do bulk shopping for their monthly

ration instead of going to the shop each week.

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Vishal Mega Mart

P r oduct:

Vishal Mega Mart offers a wide range of products which starts from

apparels to food items, footwear to home furnishing, crockery to sport

items, child care products to toys, watches, drinks etc. There are many

in house brands promoted by Vishal Mega Mart. In pursuance of their

business plan to diversify their portfolio of offerings, FMCG products

play a key role. FMCG products are usually meant to fulfill the daily

needs of consumers and therefore, VRPL believe retailing of FMCG

products will bring customers to their stores on a frequent basis and this

may in-turn lead to consumption of their apparels. VRPL have a

number of private labels for apparels such as Zepplin, Paranoia,

Chlorine, Kitaan Studio, Famenne, Fleurier Women and Roseau.

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MARKETING STRATEGY OF VISHAL MEGA MART

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Vishal Mega Mart

P r ice:

Vishal Mega Mart promises its consumers the lowest available price.

The concept of psychological discounting (Rs. 99, Rs. 49, etc.) is used

as promotional tool. Vishal Mega Mart also caters on Special Event

Pricing (Close to Diwali, Christmas, New Year etc.). Selling combo-

packs and offering discount to customers. The combo-packs add value

to customer. Through Bundling, they also reduced the price of the

products. In addition to VRPL’s strategy to continue procurement of

goods from small and medium size vendors and manufacturers which

leads to cost efficiencies, VRPL intend to procure FMCG and apparels

from low-cost production centers located outside India. Towards this

objective, VRPL’s propose to increase their procurement of finished

and semi-finished goods from China and thereby realize economies of

scale and pass on the benefits so accrued to their customers. The efforts

of VRPL’s retail business are targeted towards families having total

income which can be classified under the “lower middle” and “middle”

income groups. VRPL follow uniform pricing policy across their

stores in respect of private labels and non-branded products sold by

them. This enhances brand loyalty, encourages customer confidence

and results in operational convenience. In relation to the other

products, the prices may vary between stores on account of state-

specific taxation and vendor policies.

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Vishal Mega Mart

P lace:

Vishal Mega Mart stores are located in 110 cities with more than

180 outlets. Vishal Mega Mart has presence in almost all the major

Indian cities. They are aggressive on their expansion plans. VRPL

intend to increase their penetration in the country by setting up new

stores in cities where they already have presence, as also entering into

new areas in the country. In particular, they intend to focus on

expansion in Tier II and Tier III cities. VRPL target locations

with good infrastructural facilities such as easy accessibility,

provision for water, electricity, parking, security and other basic

amenities.

P r omotion:

Advertising has played a crucial role in building of the brand. Vishal

Mega Mart advertisements are mainly seen in print media i.e.

newspapers, Television with Tina Parekh as there in advertisement, and

sometime road-side bill-boards. VRPL’s category management system

is used to plan promotional schemes. They launch promotional

schemes weekly. Apart from general sales promotion, the category

manager formulates promotional plans for ‘slow movers’. In addition,

to promote sales, they focus on layout of the stores and positioning,

presentation and display of merchandise, in order to appeal to the

customer. In addition, VRPL have introduced, in association with SBI

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Vishal Mega MartCards & Payment Services Private Limited, a co-branded credit card.

VRPL’s propose to continuously undertake such initiatives to increase

the satisfaction of their customers. Some of the features of the co-

branded card include Rs 250 discount voucher on signing up for the

card and a process by which the cardholder earns five reward points

on every Rs 100 spent. A cardholder accumulates points on the basis of

purchases made and the points accumulated can be redeemed for gifts

or purchases. In September 2005, VRPL entered into a long term

advertising agreement with Bennett, Coleman & Company Limited

(“BCCL”). Under the agreement, they are entitled to fixed discounts

for their advertisement in print publications of BCCL for a period of

five years from the date of the agreement.

St r ong unde rs tanding o f the ‘ value r etail’ s egment

VRPL’s business plan involves implementation of the concept of the

‘value retailing’, targeting the middle and lower middle income groups,

which constitute majority of the population in India. VRPL intend to

provide quality products at competitive prices. VRPL sell a vast

range of merchandise across apparels and accessories, FMCG products,

food products and consumer durables. VRPL’s emphasis has been to

maximize the value that the customers derive in spending on goods

bought in their stores. VRPL endeavor to continuously reduce their costs

through a variety of measures, such as, in-house production of apparels,

procurement of goods directly from the small and medium size vendors

and manufacturers, efficient logistics and distribution systems along

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Vishal Mega Martwith customized product mix at their stores depending on the regional

customer behavior and preferences. Central to their value retail

strategy is to pass on the benefits of cost reduction measures to

their customers.

VRPL’s distribution and logistics network comprises seven distribution

centers. Besides, VRPL have their own fleet of 31 trucks, which helps

VRPL to transport and deliver their products in a cost and time efficient

manner. VRPL believe that their distribution and logistics set up is well

networked and allows them to fulfill the store requisition within short

time period of generation and receipt of order, which has helped VRPL

to optimize in-store availability of merchandise and minimize

transportation costs. Their strong distribution and logistics network has

enabled them to dispense with the requirement of a dedicated storage

space at every store, which is an industry practice, and instead

undertake periodical replenishment of depleted stock. Due to adoption

of an efficient racking system, they are able to benefit from optimum

utilization of the space allocated for display in their stores. This

provides them assistance in maintaining a low working capital

requirement and less carrying cost.

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Strong and efficient logistics and distribution network

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Vishal Mega Mart

O P E R A T I O N S M A N A G E M E N T

O BJE C T IV E:- To study the inventory management, transportations system

and logistics of Vishal Mega Mart.

To understand the process of plant location and layout of the company.

VR P L B u s ine s s P r oce ss e s : - VRPL’s business process can be summarized as below:

Establishment of Stores

Se l ec ti on of l oca ti on

In selecting location for a new store, VRPL start by identifying the

city/town. VRPL target primarily cities/towns which may be classified

as Tier II or Tier III cities. In this regard, an analysis of the

demography, literacy levels, nature of occupation and income levels.

Within a city/town, VRPL target locations with good infrastructural

facilities such as easy accessibility, provision for water, electricity,

parking, security and other basic amenities. VRPL prefer to locate their

stores in areas where real estate is available at reasonable prices. The

efforts of VRPL’s retail business are targeted towards families having

total income which can be classified under the “lower middle” and

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Vishal Mega Mart“middle” income groups. Accordingly, VRPL plan their strategy to

search for areas within cities where such customers are domiciled in

large numbers and make efforts to locate themselves within the reach of

such customers.

VRPL believe that adoption of standard formats for their stores has led

to their brand establishment and identification among their customers

and will increase their base of loyal customers. In pursuance of this,

they have adopted standard parameters for store planning and

establishment. For ensuring standardized formats of their stores, VRPL

consider various factors, such as internal and external décor and

colour schemes, allocation of store space, stock mix and pricing and

accounting methods.

I n s u r ace: VRPL maintain comprehensive insurance coverage with Tata AIG,

Bajaj Allianz, Royal Sundaram and IFFCO-TOKIO for their

existing stores distribution centers, manufacturing facilities and trucks.

VRPL insurance policies include comprehensive coverage for

electronic equipment, fire and special perils and burglary.

Further, VRPL has filed a claim of Rs. 22.50 million on account of fire

in their store at Meerut as on July 7, 2006. In this regard, they have

received Rs. 7.50 million as an interim payment.

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Vishal Mega Mart

Fac t o r i es: VRPL’s existing manufacturing facilities are located at Plot No. 224,

Phase 1 Udyog Vihar, Gurgaon, for which they have leasehold interest

until May 4, 2009. In addition, VRPL have recently acquired freehold

interest in relation to a land admeasuring 7.24 acres in Dehradun,

Uttaranchal, where they are exploring the possibilities for

establishment of another manufacturing facility.

O ther P ropert i es: VRPL have recently acquired freehold interest in relation to a land

admeasuring 82,830 square feet in Hubli, Dharwad.

Merchand i se P l ann i ng:

VRPL’s merchandise planning is based on the concept of category

management rather than traditional brand management

practices.

Appa r e l s and N o n Appa r e l s: Under category management for, say, apparels, VRPL create and cater

to products across length and breadth of a category at different

price points, fabrics, designs, shapes, seasons, colors and sizes.

VRPL formulate annual merchandising plan for each division of

merchandise taking into consideration factors such as past sales

data, regional customer tastes and preferences, number of stores

(established and proposed), likely fashion and trends, in-house | P a g e

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Vishal Mega Martproduction resources, vendor management and price. Each division is

further divided into major categories (for instance, men’s apparel as a

division is further divided into three major categories, namely, upper,

lowers and sports and ethnic wear). These major categories are in turn

segregated into various subcategories. For example, men’s upper as a

major category would be further divided into several sub- categories

such as formal shirts, casual shirts, party wear etc. Each sub-category

consists of pre-defined SKUs, which are classified on the basis of price

point, brand, style, pattern and size.

VRPL draw annual sales projections for different SKUs and,

accordingly, ascertain their sourcing requirements. Based on such

information and lead time estimates for supplies, purchase orders with

delivery schedules are issued. The inventory position for each SKU is

reviewed fortnightly taking into account the actual sales and variations

from the budgeted plans. Regular visits to the stores are made by the

category merchandising team to identify the slow-moving-SKUs and

explore the options to expeditiously dispose of them.

For certain non apparel categories, their merchandise planning and

scheduling also depends on introduction of new products and schemes

by the vendors. For instance, if a branded home appliance

manufacturer replaces a product with a new version, then their

planning for the product would need to be reviewed based on the

acceptability of the new version.

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Vishal Mega Mart

I n- h ou s e M a n ufac t u r i ng:

VRPL benefit from backward integration and in-house manufacturing

of part of the apparel products sold in their stores. Through their

manufacturing capabilities, VRPL is able to attain relative independence

from intermediaries with a competitive advantage in terms of value and

cost. VRPL use their manufacturing strengths to focus on enhancing

product knowledge and their experiences from manufacturing enable

them to negotiate better terms from the vendors and job workers.

VRPL currently have an apparels manufacturing plant at Gurgaon,

Haryana. The manufacturing plant is well-equipped with fully

automatic machines for fusing, buttoning, embroidery and welt

pocket-making operations. The factory has a capacity to manufacture

5,000 pieces per day. The plant was commissioned in 2004 and

achieved a capacity utilization of 80%. It has 450 machines and is

operated by 500 workers. Further, VRPL are exploring the possibilities

for establishment of another manufacturing facility, for the purposes of

which they have acquired certain portions of land admeasuring 7.24

acres in Dehradun, Uttaranchal.

In addition to in-house manufacturing, they have outsourced some

parts of the manufacturing to “job workers” who work in their factory

premises. VRPL undertake quality control measures by way of

random sampling to ensure the pre-determined quality standards

are met. To verify that the quantity of supplies is as per the order, they

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Vishal Mega Martundertake count-check for every receipt of the goods.

VRPL’s manufacturing team works closely with their design team to

understand trends, develop products, value engineer and finally create

season wise collection that cater to regional tastes.

P u r cha s i ng: Purchasing or vendor management assumes critical importance in retail

business where one has to deal with multiple products. VRPL have

in place a vendor management system, under which they identify

vendors all over the country and overseas and seek to develop alliances

and arrangements with them. They regularly interact with the vendors

and share information such that the vendors remain familiar with their

goals and targets. It has been their strategy to procure goods from

small and medium sized vendors and manufacturers, which they

believe has led to reduction in the cost of goods they sell and increase

in their profitability.

Upon ascertaining the procurements needs based on each SKU,

VRPL explore the various options for sourcing the products. They

continuously strive to procure goods from the place of origin to

reduce the costs and control the quality. For identifying the vendors,

VRPL assess the various possible options on factors such as capacity,

credibility in the market, quality awareness and experience.

After identifying the vendors for the goods, VRPL place purchase orders

based on their SKU-wise plan, estimated lead time of each vendor and

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Vishal Mega Martquantity to be procured from each vendor. VRPL follow a policy of

‘payment on delivery’ to negotiate better prices with the vendors and

in certain cases they also release payments in advance. To ensure quality

of supplies, VRPL check quality by way of random sampling at the

time of receipt of the goods. To verify that the quantity of supplies is as

ordered, they undertake count-check for every receipt of the goods.

For FMCG products, VRPL procure from large as well as small and

medium size manufacturers. For procurement from the large

manufacturers or their distributors, they endeavor to enter into formal

arrangements for supply of products to all VRPL stores, such that they

are able to derive fixed margins from sales of such products,

irrespective of the locations. Under these agreements, they benefit from

special discretionary discounts and offers directly from the

manufacturers or their distributors.

Since most of the arrangements with the large manufacturers or their

distributors are for supplies across the country, they facilitate VRPL to

expeditiously launch new stores, as VRPL do not have to identify local

sources for supplies of the FMCG products. Such arrangements also

help VRPL in standardizing the promotional schemes across all VRPL

stores.

For some of the FMCG products, such as staples and food grains, they

purchase in bulk and break them down into smaller packages for sales.

Further, based on their assessment of regional tastes and preferences,

VRPL purchases some products locally from small and medium size

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Vishal Mega Martvendors.

I nven t o r y M anage m en t , D i s t r i bu ti on N e t wo r k a nd L og i s ti cs:

VRPL’s distribution network and logistics encompasses all activities to

ensure that goods are dispatched in right quantities and at right time to

reach stores with sufficient time in hand to promptly cater to customer

demands and optimization of inventory position.

A pparel Manu f ac t ure:

The basic raw materials required for the manufacturing process of

apparels includes fabrics and accessories. VRPL merchandising teams

source fabrics from local manufacturers in India depending upon their

production plan. VRPL also source fabrics from the place of origin.

VRPL source various other components and accessories from vendors

in various parts of the country and also import them from China.

They have built a system to monitor the inventory position on a real-

time basis at each store, under which a stock requisition or delivery

order is generated when pre-determined stock or re-order levels are

reached. The re-order levels for stores are determined based on

factors such as display levels, lead time for replenishment and average

daily sales. VRPL review these re-order levels on continuous basis to

factor in variances in demand based on seasons, trends and

promotional schemes.

VRPL have seven distribution centers over approximately 385,033

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Vishal Mega Martsquare feet. These distribution centers are located around Kolkata

(West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad

(Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and

Mahipalpur (New Delhi). VRPL have clearly demarcated the stores

which will be serviced by each distribution centre. The reorder levels

for distribution centers are ascertained on the basis of factors like

average daily sales of all the stores services, lead time for

replenishment and buffer stock, which caters to both the existing and

proposed stores to be fed. As for the stores, they regularly review

these re-order levels.

VRPL’s distribution centers and stores are connected through

company-wide virtual network connection through broadband which

helps to efficiently manage their network of stores and distribution

centers throughout the country.

They primarily utilise their own vehicles to transport the inventory

to their stores from the distribution centers. In addition, VRPL use the

services of logistic solution providers including low cost transport

service providers in order to deliver products on time to VRPL stores

and optimize transportation costs. Distribution centers operations

have been streamlined through the standardisation of racking system,

layouts and implementation of automatic replenishment system.

Under arrangements with some of their merchandise

manufacturers, they receive payment on account of display of their

products.

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Vishal Mega Mart

F ranch i se and O t her A rrange m en t s:

VRPL have franchise arrangements for three of their stores at Agra,

Gwalior and Lucknow. Under the franchise agreements, the franchisee

operates the stores. The expenditure for establishing the stores and

holding the inventory is incurred by the franchisees subject to an

assurance from their Company that there would be a minimum

payment of commission towards the estimated operational expenses

incurred by the franchisee. The sales registered in such stores are

accounted for in their books and, as a consideration, VRPL pay a fixed

commission on sales to the franchisees.

In addition, VRPL have entered into commission or joint venture

arrangements for one store each in Bhubaneswar and Siliguri with the

owners or lessees of the immovable properties where such stores are

located. For the Siliguri store, VRPL operate the store and are

obligated to pay a commission of 2% of the net sales per month from

the store, subject to a minimum of Rs. 224,000 per month, subject to

certain escalation provisions. Under the joint venture arrangement for

VRPL Bhubaneswar store, VRPL operate the store and are obligated to

pay commission of 2% on total monthly turnover of the store and

fixed commission of Rs. 113,300 per month subject to certain

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Vishal Mega Mart

M A N A G E M E N T & T E C H N O L O G Y ,

I N N O V A T I O N & C H A N G E

O BJE C T IV E:-

To study the different software’s or technology being used by the Vishal Mega Mart.

Technology is important to cut costs, improve efficiency, providing

value to customers and increasing the customer experience. IT

solutions help in synchronizing activities across various verticals such

as procurement of inventory. Securities from both external and

internal threats are also important when the scale of the operations

increases. Most of their critical functions such as Supply Chain,

Operations, Finance & Accounts, and Customer Loyalty Program &

Human Resources are linked through a computer network. This has

enabled them to reduce their time to market and respond to the

changing customer requirements. This has also helped them

reduce their costs of operations through both, reduction in wastages

and missed opportunities as well as a consequent reduction of the

overall costs of operations.

VRPL are focused on acquisition and implementation of

advanced information technology systems, processes and business

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Vishal Mega Martapplications in order to handle all store operations including

inventory management and billing. VRPL office processes are also

computerized which support procurement, supply chain logistics,

distribution centers management and inventory control. All the

locations are connected through company- wide virtual network

connection which helps to efficiently manage their network of

outlets throughout the country.

VRPL believe that their business requires efficient management and

storage of data and information to utilise for business analysis,

research and forecast. Based on VRPL’s existing information

technology systems, they are able to generate detailed daily reports

covering the various aspects of their business such as division wise

sales per store, inventory movement and position at stores and

distribution centers and generation of purchase and delivery orders.

In August 2005, VRPL had entered into a software end-user license

agreement with Systems, Applications and Products in Data

Processing Private Limited (“SAP India”) for grant of a non-exclusive

and perpetual license to VRPL to use the SAP software, documentation

and other information related thereto. SAP for Retail provides an

integrated technology platform for retailers and a one point solution

for supporting and managing different business models such as owned

stores, franchise stores, shop n shop concepts. Strong business

decision and analytical capabilities have enabled retailers of all sizes

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Vishal Mega Martthe power to make the right decisions quickly and profitably.

Beginning with a computerized cash memo, to use FoxPro for

operations & accounting and, implementation of a complete ERP from

JDA (J. D. Armstrong Software Group), they have gradually extended

the Use of technology in their various areas of operations. In order to

increase the speed and traceability to the supply chain management

Vishal Mega Mart introduces Bar Code Technology. Bar code is tried

and tested technology— the “no-brainer” choice for identifying items

in the supply chain. Yes, it does have short comings in that applying it

means that everything has to be in line of sight because light is used

to capture and read the bar code. But as goods are handled either by

humans or machines, the goods are always visible, as are their labels

—labeling standards mean that it is virtually impossible to not see the

label and its bar code. This means that some form of scanner is used

—the range of available technology is broad—either by an operator

wielding a hand-held device or by a machine-mounted or fixed-

position scanner.

Beyond the bar code is RFID (radio frequency identification) where a

chip within a tag carries information and is read using radio waves.

Vishal Mega Mart uses the latest technology to improve its

performance Quality as well as Quantity Wise. Bar code scanners

are very sophisticated devices these days. Functionality and reliability

is extremely important. Vishal Mega Mart also uses CCTV to monitor

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Vishal Mega Martits stores. Various CCTV’s are being installed in a store, with a room

where the entire functioning taking place in a store can be monitored

by a human operator.

VRPL have partly implemented their information technology set up

and are currently in the midst of completing the process of upgrading

their information technology set up and have entered into an

agreement dated September 6, 2005 with Tata Consultancy

Services Limited for providing information technology services

including implementation of more advanced ERP applications such

as SAP, rendering services inter alia for management information

system on reports related to stock management, receipt processing,

picking and packing, project systems, merchandise assortment

management, pricing and promotion, sales, controlling and financial

accounting.

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Vishal Mega Mart

Manageme nt I nformati on Syst ems (MI S)

They have strong MIS capabilities that make use of their technological

investments to generate valuable insight for them and help them in

improving their operations, as well as in enhancing their speed of

response to what the customers want. They are thus able to monitor

their performance on a day-to-day basis, across stores, departments

and product categories and compare the same with other stores as

well as across periods. This helps them take corrective action on a

timely basis, and optimize their stock. They are currently using

Business Objects to analyze data related to the buying trends of

their loyalty customers.

. Following are the table which shows the different software

used by the organization in the organization activities, for

customer transaction & for employees working in the

organization.

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Vishal Mega Mart1. “JD A ERP” software

F un c t i on al A r e a :

> Merchandising Buying,> product ordering, Receipt> confirmation, Stock

> transfer, Inventory > Management, Sales > Merchandise event

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

2. “Oracle Financial” software

Functional Area:

> Financial Accounting

C o mm en t s :

Completely integrated with their retail ERP- MMS, allows them to get online integrated financials.

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Vishal Mega Mart3. “RAMCO HRMS” software

Functional Area:> Human Resources.

C o mm en t s : Their system supports Personnel Management, Payroll Management, Employee Benefits Management, Training Management and Executive Information.

4. “WMS” software

Functional Area:

> Distribution and Logistics.

C o mm en ts : WMS enable the space planning and also integrated SKU location which enable faster picking and putting of merchandising.

5. “Arthur Planning” softwar e

Functional Area:>Merchandising Planning.

C o mm en t s : An integrated planning and decision making tool.

6. “Micros oft Exchang e” software

Functional Area:

Internal/External communication.

C o mm en t s : Enterprise wide mailing solution.

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Vishal Mega Mart

H U M A N R E S O U R C E S M A N A G E M E N T

O BJE C T IV E S:-

. To study how the company manages its human resource.

To try and understand the recruitment and selection

process, various training and development programmes

for its employees.

. To understand the management organization system.

Human Resource Management (HRM) means employing people,

developing their resources, utilizing maintaining and compensating

their services in tune with the job and organizational requirement. The

industry needs skilled manpower to fit the diverse roles at the front-

end and back-end of the new and complex retail formats. It is

estimated that over 2.5 million jobs will be created in the sector by

2010.

The complexity of the operations requires trained personnel. The

modern formats requires to handle administration,public

relations,advertising,store management, sourcing, and

merchandising and information management.

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Vishal Mega Mart

The Company places a huge emphasis on fostering a culture of

innovation and enterprise that allows people within the Company to

realise human beings' infinite potential. The Company continues to

increasingly focus on internal growth and development of its

associates, cutting across levels and functions, through focused

developmental efforts and growth opportunities. For the year under

review, the Company has provided 66 hours of training per associate.

Apart from regular training in skills enhancement and customer

engagement, the Company also emphasizes on building a sense of

pride, belonging and self-confidence among its employees working at

the stores.

It has been able to employ innovative strategies to attract talent from

other industries. Their human resource policies are targeted at

creating an engaged and motivated work force. They have a fairly

young team with the average age of the organization being 26 years

as on January 31, 2008. Managing a young team engaged in a service

intensive business with largely repetitive work is one of the challenges

that they face. Their human resource policies are aimed towards

creating a skilled and motivated work force. VRPL have around 7000

employees both employed in their stores as well as in their

manufacturing units and other facilities, as on September 30,

2006. They provide a conducive work atmosphere and opportunities

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Vishal Mega Martfor their employees to learn and grow.

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Vishal Mega Mart

Co mp e n s a t ion a n d P er f o r m a n c e B a se d I n c e nt ives:

VRPL’s compensation policy is performance based and they believe

it is competitive with industry standards in India. VRPL endeavor to

recognize talent and potential in their employees and encourage them

to take additional responsibilities. Based on performance, VRPL

calibrate their employees and reward loyalty by preferring in-house

promotions. Their compensation policy reflects their continuing efforts

to build a world class performance driven culture. They benchmark

ourselves on compensation externally through consultants biannually,

and aspire to be on the upper quartile of their target segment,

comprising of FMCG companies and other retail companies and are

currently at the 75 percentile.

Variable pay is an important component of total compensation, with

all their associates covered under their Profit Linked Reward

Scheme (PLRS), linking individual performance and Company

profitability. Their part-time and full-time employees are eligible for

PLRS. Almost 60% of Customer Care Associates earned PLRS in the

year ended March 31, 2007. They also have Employee Stock Option

Plans (ESOPs).

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Vishal Mega Mart

Tr ai n i n g:

VRPL encourage their employees to be enterprising and expect them

to ‘learn on the job’ and contribute constructively to their business,

either through ideas, personal networks or effective knowledge

management. In essence, they train their employees to become next

generation entrepreneurs, who can effectively lead the growth of their

business. Their corporate objective is to provide every associate

with an average of 5 man days of training per annum through

internal and external resources.

All senior management members are required to contribute 30 hours

per annum towards training.

R e c r u i tm e n t & S e l e c t ion:

For posts of team members the following rounds takes place:-

1. Psychometric tests,Behavioral Intelligence Test,Logical thinking and Comprehension Test.

2. Application blank.

3. Personal Interview, Operations Interview, Regional Manager Interview.

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Vishal Mega Mart

For A rea M anager:

1. Collection & review of curriculum vitae

2. Personal interview with Regional HR Manager

3. Personal interview with GM- HR

The salient features of Vishal MegaMart staff are: -

1. Well-trained staff, the staff employed by Vishal Mega Mart is well-suited for modern retail.

2. Well-dressed staff improves the overall appearance of store.

3. Employees are motivated to think out-of-the-box. Retail sector is

in growth stage, so staff is empowered to take innovative steps.

4. Multiple counters for billing, staff at store to keep baggage

and security guards at every gate, makes for a customer-

friendly atmosphere.

5. The employees are motivated to work efficiently and

effectively towards the achievement of organizational goal

by satisfying their personal needs.

6. The employees were given bonus and gifts during the festivals like diwali, etc.

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Vishal Mega Mart

E - C O M M E R C E

O BJE C T IV E S:-

To study the different steps taken by VRPL in relation

with online shopping. To try and understand the

importance of Vishal Mega Mart website.

The uses of computers and internet have been expanding significantly

over the years. Presently internet has been used widely as a means of

communication, as a potential source of information, as a means of

entertainment and many more. With in few years after existence of

internet, business men realized the possibilities of using internet as a

medium of business. This idea kick started the first online business

ventures. Modern technology has been developed to the extent that

even shopping made possible over the internet. The process of

shopping done over the internet is called online shopping.

Both products and services can be purchased by online shopping. Online shopping is used for business to business transactions or business to customer transactions with applications of electronic commerce (ECommerce). Vishal Mega Mart is soon launching its online shopping website this summer named as w ww .v i s ha lm ega m a r t .com which promises to be a boon for its customers.

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Vishal Mega Mart

Manage m ent Orga n iza t ion S t ruc t ure

R.C.Agarwal Chairman &

Managing Director

Board of Directors

Category HeadsS.K.Agarwal Whole-time

Director

MerchandiseHead Heads - Zonal

Head-Supply Chain

Management

Head- Retail

Chief OperatingOfficer

Head – Legal & Secretarial Head – IT

Head-Admin & HR Head-Finance, Accounts & MIS

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Vishal Mega Mart

VRPL has its own site named as ww w . vi s h al m e ga m a r t . n e t .

Vishalmegamart.net is concerned about the safety and security of their

website and customers. Accordingly, they have put a number of

technological protections in place to ensure that their transaction

process is extremely safe and that their customers' information is

secure. They provide a large amount of information to their customers,

suppliers through their website. This information includes their stores in

different areas, cities with correct address and contact no’s, products being

offered by them, career opportunities, enquiry, supplier’s zone etc.

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Vishal Mega Mart

Vishal Mega Mart also provides opportunities to

its customers by collaborating with s h o pp i n g . i nd ia t i m es.c om

and with s h o pp i n g .re d i ff .c o m .

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Vishal Mega MartHow to Shop

Firstly, you have to register yourself with the shopping.indiatimes.com & shopping.rediff.com. Place your order through following these 7 quick and easy steps:

1. Find the Items You Want to buy.

2. Add the Items to Your Shopping Bag

3. Proceed to Checkout

4. Sign In/Create a New Account/Choose guest checkout

5. Enter a Shipping Address

6. Provide Payment Information and authorization

7. View or print your Order Acknowledgment and check your Order status.

H ere are a few i mportant act i on po i nts t hat you s h o u l d bear i n m i nd:-

1. Keep your PC updated with the latest anti-virus / anti-spy ware software.

2. Install a personal firewall on your PC to protect your account.

3. Keep your PC updated with the latest security patches and, most importantly,

4. Do not click on links or open attachments in unknown or unsolicited (spam) emails.

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Vishal Mega Mart

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Products Available At Vishal Mega Mart

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Vishal Mega Mart

Vishal Mega Mart inks pact with SBI for co-branded card

SBI Card announced the launch of its co-branded card in association with retail chain Vishal Mega Mart to tap the booming organized retail market.

``SBI Vishal Mega Mart Card is one of the best co-branded credit card that offers reward points and other benefits to frequent shoppers and would be free for those who spend above Rs 7,500 per annum,'' SBI Card CEO, Mr Roopam Asthana, said.

``By partnering with the SBI Card, we are not just offering customers a convenient payment mechanism but a unique consumer loyalty programme that rewards them every time they shop,'' Vishal Retail Managing Director, Mr Ram Chandra Agarwal, said.

Some of the features of the co-branded card include Rs 250 discount voucher on signing up for the card and a process by which the cardholder earns five reward points on every Rs 100 spent.

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Vishal Mega Mart

SWOT Analysis of Vishal Mega Mart

Strengths : Prime location Large floor space allowing for better visual merchandising Large area also allows to stock a large variety of products under

one roof Financial backing Highly trained and motivated sales force. Brand equity Large scale operations in various cities throughout the country

allows them to reap the benefits of "economies of scale"

Weaknesses: Large scale of operations sometimes acts as a barrier to

personalized customer relations Large scale operations lead to reduced flexibility by increasing

the amount of overheads and a huge commitment in terms of fixed costs

A large organization structure leads to delayed decisions. This can prove fatal for a business in the dynamic fashion industry. Vishal Mega Mart has a centralized purchasing department in Delhi, this fact sometimes results in delayed decisions in adapting to changing market trends.

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Vishal Mega Mart

Opportunity : Apart from the metro cities, cities like Ahmedabad, Pune,

Lucknow, Indore and Coimbatore have shown substantial retail presence. These markets are expected to show exponential growth in the next few years. Thus Shoppers Stop has the opportunity to explore new markets.

According to the Consumer Outlook study, consumers are generally satisfied with the service that organized retailers extend to them. More importantly, they are increasingly regarding these organized retailers as providing 'value-for-money', These findings indicate that large retailers will capture most of the higher consumer spending.

Increasing penetration of the Internet into Indian homes has provided Vishal Mega Mart to break the geographical barriers and to increase their customer base. The entry into online retailing, would, in fact, expand the product categories available to the consumer. The choices open to the consumer would not be restricted to those available in Vishal Mega Mart.

Threat:

The time when retailers had to worry about competition only from their peers down the street has come to an end, Vishal Mega Mart is now facing increased competition in the form of international retail chains that are making a beeline towards the highly potential Indian markets. Moreover many big Indian business houses are also trying a space in the Indian retail scene.

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Vishal Mega Mart

PROJECT TITLE

“CUSTOMER SATISFACTION”

AT

VISHAL MEGAMART

In Meerut City

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Vishal Mega Mart

OBJECTIVE

1. To find out customers satisfaction level at VISHAL MEGA MART Meerut city store.

2. To study the different software or Technologies used by Vishal Retail.

3. To study the selection and recruitment process of the

employees and also to analysis the training and

development method of the company.

4. To Understand the Marketing Strategies being adopted by the company.

5. To know the production process and plant location and layout of the company.

6. To understand the scope of e-commerce in the context of modern business.

7. Finally to relate the above findings so as to get a comprehensive picture of where the retail store is today and where it is headed .

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Vishal Mega Mart

LIMITATIONS

1. Time available for the project being very short, in-depth

study could not be done.

2. The officials interviewed did not give the detailed

information on recruitment and selection policies to

maintain confidentiality.

3. Sample size during the survey could not be taken higher due

to time constraint.

4. Financial information could not be attained due to the

policies of the company.

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Vishal Mega Mart

RESERCH MEHODOLOGY

1.The research includes the study which was descriptive innature.

The study includes two methods-(a)PRIMARY(b)SECONDARY

(a) PRIMARY DATA: Includes the following ways-· Observation· Survey

Here we include the primary method of survey

Research Instruments-QUESTIONNAIRE

· Area of Survey-VISHAL MEGA MART RETAIL OUTLET ,MEERUT CITY

Sampling plan- · Sampling size- 100

· Sampling procedure-Random sampling· Sampling method- customers survey

SECONDARY DATA:

Annual reports of the company, various records being

available at office premises, Audited annual reports, Web

site of the company

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Vishal Mega Mart

AN OVERVIEW

The total sample for the survey was 100 .The response was as follows:-

1.GENDER RATIO :

Gender No. Of Respondents

Male 42Female 58

42%

58%

Male Female

INTERPRETATION:

In the survey conducted among 100 people, 42 respondents were male & 58 were female.

The study clearly shows that the sample taken were most of them were Female.

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(1.1) Pie chart Representation of SEX RATIO

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Vishal Mega Mart2. AGE GROUP :

AGE GROUP No. Of Respondents15-25 2225-35 6735-45 7

40 and Above 4

15-25 25-35 35-45 above 400

10

20

30

40

50

60

70

22

67

7 4

Interpretation:

From the above bar graph it is clear that Vishal Mega Mart caters to the needs of younger part of consumers that is between 15-25 yrs & 25-35 yrs.

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(2.1) Graphical Representation of AGE GROUP

Different age groups in years

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Vishal Mega Mart

3. Most Exites for shopping at Vishal Mega Mart :

Different Exites No. of Respondants

Promotional offers 12Variety of products 6Price of Products 78

Any Other 4

Promotional of -fers variety of

products Price of products Any Other

01020304050607080

126

78

4

Interpretation:

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(3.1) Graphical Representation of

MOST EXITES FOR SHOPPING AT VMM

No.of respondants

From the above data 78% customers mostly visit vishal mega mart due to reasonable price of products,where as 12% due to promotional offers,6% due to variety of products and rest 4% visit due to any other reasons.

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Vishal Mega Mart

4. FREQUENCY OF VISIT AT VMM:

Frequency Vishal Mega Mart

Once in two months 5Once a month 46

Twice a month 19

Once a week or more 2

Your own pattern of visits. 28

once in two

monthsonce a month twice a month once a week or

moreown pattern of

visit

05

101520253035404550

5

46

19

2

28

Interpretation:

The above diagram clearly shows that consumers visited the retail store at least once a month. Otherwise they had their own pattern of visits. This means that they do not have any particular pattern to follow but they visited the retail store according to their own choice.

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(4.1) Graphical Representation of FREQUENCY OF VISIT

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Vishal Mega Mart5. WHEN YOU VISIT THE RETAIL OUTLET ,YOU GO…..

Type of Visit No. Of RespondentsAlone 5

With Family 23

With Friends 72

Alone With Family With Friends0

1020304050607080

523

72

Interpretation:

The above graph shows that Consumers visited the retail stores mostly with their friends. Then the second was with their family members & then alone.

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(5.1) Graphical Representation of Type of Visit

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Vishal Mega Mart6. SPENDING BY THE CONSUMER:

Amount Of Money Spent. No. of Respondants

Less than 1000 38

1000- 3000 463000-4000 14

Above 4000 2

Less than 1000

1000- 3000

3000-4000

Above 4000

0 5 10 15 20 25 30 35 40 45 50

38

46

14

2

Interpretation:

when he or she visited Vishal Mega Mart the maximum amout spend by the customer was between the slot of rs 1000-3000,where as amout less than rs 1000 lies second place.

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(6.1) Graphical Representation of Amount spended by consumer

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7. ITEM USUALLY PURCHASED FROM THE RETAIL OUTLET:

Items Purchased Vishal Mega Mart

Apparels 69Accessories 4

Utility 26Foot ware 0

Electronic items 1

APPARELS ACCESSORIES UTILITY ELECTRONIC ITEMS

FOOT WARE0

10

20

30

40

50

60

70

80

69

4

26

1 0

Interpretation:

The above graph shows that customers spend their maximum amount on

purchasing Apparels than Utility items no one specially come for purchasing

foot ware.

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(7.1) Graphical Representation of

USUALLY BUY FROM THE OUTLET

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8. SATISFACTION WITH PRODUCT QUALITY:

No. of Respondants

YES 24

NO 3Some what satisfied 73

yes no some what satisfied0

10

20

30

40

50

60

70

80

24

3

73

Interpretation:

The above graph clearly shows that 24% customers satisfied with the quality of products ,73% were satisfied some extent where as only 3% were not satisfied with the quality of products they only purchase product only due to reasonable price of product. | P a g e

(8.1)Graphical Representation of

SATISFACTION WITH PRODUCT QUALITY

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Vishal Mega Mart9. PROBLEMS FACED BY CUSTOMERS IF ANY:

Problems No. of Respondants

Billing problem 4Heavy rush 0Out of Stock 26Few varieties 51No problem 23

Billing problem

Heavy rush

Out of stock

Few varities

No problem

0 10 20 30 40 50 60

4

0

26

51

23

Interpretation:

The above graph indicates that the highest peak is of the customers i.e. 51 facing problem from the less varities of product ,where as 26 customers facing problem from out of stock items,only 4 customers facing billing problem ,where as no one facing problem with heavy rush.

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(9.1)Graphical Representation of

PROBLEMS FACED BY CUSTOMERS

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10 : OVERALL SHOPPING EXPERIENCE:

No. Of Respondents

Very satisfactory 8satisfactory 62

Average 28

Unsatisfactory 2

Very satisfactory satisfactory average unsatisfactory0

10

20

30

40

50

60

70

8

62

28

2

Interpretation:

Overall maximum number of customers i.e. 62 having satisfied expirence in

the outlet ,where as 28 customers having average satisfaction level ,only 8

customers are highly satisfied shopping expirence ,only 2 two customers

were unsatisfied shopping expirence and facing few problems.

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(10.1)Graphical Representation of

OVERALL SHOPPING EXPERIENCE

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Vishal Mega Mart

CONCLUSION

The conclusion arises from the Research study having the sex ratio of 58% female and 42% male ,78% customers visit retail outlet due to reasonable price of products and they visit mostly with their friends.

Maximum customers comes in age group of 25-35 i.e. 22.They often to visit retail outlet oncein a month number of customers are maximum in this category i.e. 46% where as 28% customer having their own pattern of visit.

Maximum number of customers (46) spent their amount of rs 1000-3000 on purchasing Apparels than Utility items.

51% customers facing problem of less varities where as 23% of customers having not facing any problem .

Overall conclusion is that:

62% -SATISFIED

28% -AVERAGE

8% -VERY SATISFIED

Where as only 2% were UNSATISFIED

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RECOMMENDATION

1. Customization of clothing should be given an important consideration.

2. Proper packaging and provide contrast labeling in displays of product.

3. Proper placements of Gondola in the stores as space between them are very less.

4. Proper display in the gondola and top most rack of the gondola

should be used for storing of inventory rather than display of

product.

5. Should provide more festival schemes and at proper time.

6. Should use psychological pricing-more discounts by increasing the price

7. Proper display of cutlery items

8. Clothes should be in sync with fashion.

9.Customer experience should be enhanced by focusing on all the four

aspects: communication, store experience, customer interaction and post

purchase experience.

10.Retailers should manipulate their environment to create a desired

atmosphere. The social atmosphere, defined in terms of the music played,

lighting etc should be created in such a way to soothe the customers.

11.Retail stores like Vishal Mega Mart caters to the needs of the middle class of the segments .Hence they should now start focusing on the other segments of the society.

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BIBLIOGRAPHY

BOOKS:

RESEARCH METHODOLOGY by C. R. Kothari

LINK:

www.vishalmegamart.net

www.imagesretail.com

www.indiaretailbiz.com

www.india-reports.com

www.business.mapsofindia.com

www.retailindustry.about.com

www.scribd .com

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Vishal Mega Mart

ANNEXURES

QUETIONNAIRE

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QUESTIONNAIRE

Dear Sir/Madam,

I am currently engaged in a study on “Customer satisfaction at Vishal Mega Mart ”. In this connection I request you to read the following items carefully & answer them .The answers you give will be held confidential & used purely for academic purposes.

Please tick ( √ ) of your choice inside the bracket. Please write in capital letters.

1.) Gender :-

Male Female

2.) Age:-

15-25 years 25 – 35 years

35 – 45 years 40 and above.

3.) What excites you most for shopping at Vishal Mega Mart ?

Promotional offers Variety of Products Price of Products Any Other

4.) How frequent you visit at vishal mega mart?

Once in two months Once a month

Twice a month Once a week or more Your own pattern of visits.

5.) When you visit the retail outlet, you go….

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Alone With Family With Friends

6.) How much do you usually spend while shopping in the retail outlet ?7.)

less than1000 1000-3000

3000-4000 above 4000

7) What do you usually buy from Vishal Mega Mart ?

Apparels Accessories Utility Foot ware Electronics

8) Are you satisfied with the quality of the products offered by Vishal Mega Mart ?

Yes No Some what satisfied

9) Do you ever face any from at Vishal Mega Mart ?

Billing ProblemHeavy RushOut of Stock ProductsLess VaritiesNo problems faced

10) How is your Shopping Experience at Vishal Mega Mart ?

Very satisfactory Satisfactory

Average Unsatisfactory

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