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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:

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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)



CARDS DEPARTMENT 75000


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.

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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.


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.




Inter-Department Customer Flow

DEPARTMENT Number of Customer

GARMENTS DEPARTMENT 1600GIFTS DEPARTMENT 600CARDS DEPARTMENT 250


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.


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.


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.

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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.


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.




Inter-Department Customer Flow

DEPARTMENT Number of Customer



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 THE STOCK

DEPARTMENT (Rs)



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 PER DEPARTMENT In 2011-12(Rs.)


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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.

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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


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


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


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.

59

0

100000

200000

300000

400000

500000

600000


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


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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http://www.rpggroup.com/http://www.rpggroup.com/


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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

Final Waseem

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