[pic] ACKNOWLEDGEMENT I feel great pleasure in presenting this summer training project in the hands of my mentor Mr. Manish Rajput. It is really a great opportunity given by him to me. This research work is combined effort of many hearts, hands and brains. First of all I would like to thank God who showered his blessing in every step of this profile and has given me this opportunity to conduct this industrial profiling. I am immensely grateful to Vishal mega mart Jalandhar-II for providing me this opportunity for bringing out my talent.
Now my grateful thanks to my Mentor and Course Co-ordinator Mr. Manish Rajput who helped me a lot and guided me in every step related to this project. I also want to thank my teachers, Staff Member and friends for their valuable advice and guidance who helped me to complete this project successfully. MUKESH RANA MBA (RETAIL MANAGEMENT) P R E F A C E:- This Summer Training Project has been prepared as a part of my course curriculum. As the topic is “A study of Price gap analysis on Non-Food department & Consumer behavior analysis of Vishal Mega Mart”.
I found this project very interesting and educative. By working in Vishal Mega Mart I gained knowledge about all aspects and operations of a retail organization and got a practical aspect of working in an organization. With the growing popularity of retail sector, most of the people are involving in this sector. Before entering in this sector one should know the correct scene of retail sector and have an overview of how this market operates etc.
This project is carried out to translate the theoretical knowledge of the subjects in to the practical field work. Keeping these things in mind, it is the matter of great privilege and satisfaction for me to place this report before the readers. The report is prepared in very simple language using very systematic research methodology. And I hope this will give light upon the subject. I have tried my best to make an objective appraisal of all available data and draw conclusion on that basis. MUKESH RANA MBA (RETAIL MANAGEMENT) D E C L A R A T I O N
I Mukesh Rana Student of MBA (Retail Management) IIIrd Semester, Lovely School Of management declare that the project on “A study of Price gap analysis on Non-Food department & Consumer behavior analysis of Vishal Mega Mart” is the result of my own efforts and it is based on data collected and guidance given to me. I have prepared it as a part of my course curriculum. This report is correct to best of my knowledge and so far has not been published anywhere else. MUKESH RANA MBA (RETAIL MANAGEMENT) INTRODUCTION OF INDIAN RETAIL INDUSTRY
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around 11 per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. But because of the heavy initial investments required, break even is difficult to achieve and many of these players have not tasted success so far. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India as seen in Sprawling shopping centers, multi-storied malls and huge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. Retailing is the final step in the distribution of merchandise – the last link in the Supply Chain – connecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure.
A retailer, typically, is someone who does not affect any significant change in the product execs breaking the bulk. He/She are also the final stock point who makes products or services available to the consumer whenever require. Hence, the value proposition a retailer offers to a consumer is easy availabilities of the desired product in the desired sizes at the desired times. In the developed countries, the retail industry has developed into a full-fledged industry where more than three-fourths of the total retail trade is done by the organized sector. Huge retail chains like Wal-Mart, Carrefour Group, Sears, K-Mart, McDonalds, etc. ave now replaced the individual small stores. Large retail formats, with high quality ambiance and courteous. EVOLUTION OF THE INDIAN RETAIL SECTOR Back to the emergence of Kirana stores and mom-and-pop stores. These stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in the 1980s resulting in the change of retailing. The first few companies to come up with retail chains were in textile sector, for example, Bombay Dyeing, S Kumar’s, Raymond’s, etc.
Later Titan launched retail showrooms in the organized retail sector. With the passage of time new entrants moved on from manufacturing to pure retailing. Retail outlets such as Food world in FMCG, Planet M and Music world in Music, Crossword in books entered the market before 1995. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the supply chain management, distribution channels, technology, back-end operations, etc. his would finally lead to more of consolidation, mergers and acquisitions and huge investments. THE IMPORTANT 3 V’s IN THE RETAIL INDUSTRY. 1. VALUE, 2. VARIETY & 3. VOLUME. CHARACTERISTICS OF RETAIL INDUSTRY:- DECLINE IN SMALL STORES It is observed that small independently owned stores are gradually loosing their foothold in the market place. These stores are generally called “Mom and Pop” stores and they offer limited merchandise to the consumer. These stores are facing stiff competition from the large departmental stores or superstores and in this process they are closing down their shutters.
In many locations the arrival of a superstore has forced nearby independents out of business. In the book selling business Barnes & Noble superstore or Borders Books and music usually puts smaller bookstores out of business. This is a major characteristic prevailing worldwide. But it is also true that many small independent outlets still thrive by knowing their customers better and providing them with more personalized service. INTERNET AND E-COMMERCE Internet the ubiquitous medium has opened a new avenue in front of the Retailers. It has offered an opportunity to the consumers to shop from the home.
As it stands today overall Retail sales through internet may not be that significant but gradually it is gaining popularity amongst consumers. Amazon. com is the company which is very successful in this E commerce domain. REPOSITIONING OF DEPARTMENTAL STORES The appeal of big departmental store is in the wane and they are trying to reposition themselves. They are repositioning their product lines to survive in this highly competitive market eg. A departmental store which is supplying general merchandise to the consumer is changing them to a giant apparel store.
RISE IN DISCOUNT STORES Supremacy of Discount store is also one of the distinct characteristics of Retail Industry today. Discount stores offer money back guarantee, every day low price (EDLP) etc to lure customers. They also provide floor help and easy access to the merchandise to facilitate the consumer. Wal- Mart the world’s largest Retailer comes under this category of Retail store. CATEGORY KILLERS There are Retailers who actually concentrate on one particular product category and grab a lion’s share of that market and outperform their competitors.
They are called Category Killers. Toys R Us (Toy market ), Home Depot (Home Improvement) , Staples (Office Supplies) are the examples of such Retailers who have grabbed a major market share in that product category and they have forced a reduction in the number of players in that product segment. This is also a distinct trend observed in the current Retail market. Ten years back there were number of players in the toy market and no one was controlling more than 5% of market share but now the number of players has come down to six and Toys R Us is enjoying 20% market share.
DIRECT MARKETING With the advancement of technology Retailers have found another sales channel through which they can reach the consumer and this is direct marketing. Direct marketing has their root in direct mail and catalog marketing (Land’s End and LL Bean). It includes telemarketing, television direct response marketing. (Home shopping network, QVC). Although an overwhelming majority of goods and services is sold through stores, non store Retailing is also growing at a faster rate. Direct selling is $9 Billion industry with around 600 companies selling door to door.
Avon, Electrolux, Southwestern Company, Tupperware and Mary key cosmetics are the examples who have adopted this strategy successfully. DEMOGRAPHIC CHANGES Retail industry is impacted by the demographic changes. As a result of this change taste of the consumer is undergoing a change and it creates a demand for certain products. Worldwide Retailers are keeping a close watch on this change and they are trying to realign themselves with this change. MERGERS AND ACQUISITIONS Retailers who want to dominate the market place have adopted the strategy of mergers and acquisitions.
This is also one of the distinct trends in Global Retail Industry today. Instead of achieving an organic growth Retailers can grow significantly with the help of mergers and acquisitions. This helps them to occupy more shelf space in the market place. As the volume increases they are establishing better control over their suppliers and they are reducing the procurement cost and in that way they are boosting their profitability. This is driven by the economic growth factors, size, revenue pattern and the customer demand. Sears and Land’s End merger is one of the significant mergers which have happened in recent times.
Another important example would be Nikes acquisition of Hurley, a well known surfing brand. This has helped Nike to enter in to a new market segment. CHARACTERISTICS ? It offers direct interaction. ? Sale volume is comparatively large in quantities. ? Customer service. ? Sales promotions are offered at this point only. ? Different forms. ? Location and layout are critical factors. ? More employment opportunities. TYPE OF RETAILERS:- Retail Organizations have shown great variety and different format of stores are coming up quite rapidly. Generally Retailers can be of six types. 1) SPECIALTY STORE
This stores are characterized by narrow product lines but with deep assortments such as Apparel Stores, Sporting goods store, Furniture store, Florist and Book store. Under this also there could be specializations like limited line store ( eg. Men’s clothing store) and Super specialty store (eg. Men’s custom shirt store). Example of such stores are Athlete’s foot ,Tall men. 2) DEPARTMENTAL STORE Several Product Lines –typically clothing ,home furnishing and household goods with each line operated as a separate department managed by specialist buyers and merchandisers Examples Sears, JC Penny , Nordstrom. ) SUPERMARKETS Relatively large ,low cost ,low margin high volume ,self service operation which is designed to cater total needs for food, laundry, household maintenance products . Supermarkets earn an average profit of only 1 percent on sales. Example : Safeway, Kroger. 4) CONVENIENCE STORE These are the stores which are relatively small in size and they are located near residential area , normally remains open seven days a week and carrying a limited line of high turnover convenience products at slightly high prices. Many have added take away sandwiches , coffee and pastries.
Example : 7-Eleven ,Circle K 5) DISCOUNT STORES Standard merchandise sold at lower prices with lower margin but higher volumes. Actual discount stores regularly sell merchandise at lower prices and offer mostly national brands. In Discount retailing , Discount specialty retailing is also present eg. discount electronic store or discount book store Example : Wal- Mart (all purpose discount store) , Kmart . Specialty : Crown Bookstore. 6) OFF PRICE RETAILERS. Merchandise bought at less than regular wholesale prices and sold at less than retail prices.
Often left over goods, irregulars obtained at reduced prices from manufacturers and other retailers. Factory outlets are owned and operated by manufacturers and they normally carry manufacturer’s surplus, discontinued and irregular goods. Example: Mikasa (Dinnerware) and Dexter (Shoes). GROWTH OF RETAIL SECTOR IN INDIA:- Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments has been encouraging in the Growth of Retail Companies in India.
The prospects of both the sectors are mutually dependent on each other. Retail, one of Indian largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market. Accounting for over 10 per cent of the countries GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry. REASON FOR THE GROWTH OF RETAIL INDUSTRY IS:- 1. Existing Indian middle classes with an increased purchasing power 2. Rise of upcoming business sectors like the IT and engineering firms . Change in the taste and attitude of the Indians 4. Effect of globalization 5. Heavy influx of FDI in the retail sectors in India. GROWTH DRIVERS IN INDIA FOR RETAIL SECTOR ? Liberalization of the Indian economy ? Increase in spending Percapita Income. ? Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. ? Introduction of dual income families also helps in the growth of retail sector. ? Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. ? Consumer preference for shopping in new environs Technology-savvy/Youth. ? Foreign companies’ attraction to India is the billion-plus population. ORGANIZED RETAIL IN INDIA:- Indian organized retail industry is valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Retail Market India today is the second fastest growing economy of the world after China. Indian economy will grow larger than Britain’s by 2022; Japan by 2032 and by 2050 will become the second largest economy of the world after China. Indian market has become the most lucrative market for retail investment in the world.
Some of the factors which have contributed to the growth of organized retail in India are: increase in the purchasing power of Indians, rapid urbanization, increase in the number of working women, large number of working young population. Today people look for better quality product at cheap rate, better service, better ambience for shopping and better shopping experience. Organized retail promises to provide all these. The Industry The various formats of organized retail are: Hypermarkets: They store products of multiple brands comprising food items and non-food items.
Supermarkets: These are self service stores selling food and personal care products. E. g. : Vishal Mega Mart. Departmental stores: Retails branded goods in non-food categories. E. g. : Shoppers Stop. Specialty Chains: These stores focus on a branded product or a product category. E. g. : Bata Convenience stores: These are small self service outlet located in crowded urban area. Malls: A huge enclosures which has different retail formats. e. g. : Nucleus Key players in organized retail are: Pantaloon Retail: It was started by Kishore Biyani- India’s largest retailer.
The various formats of pantaloon retail are: Pantaloons, Big Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats are: Food World, Music World, Health & Glow, Spencer’s Tata Retail (known as TRENT): Its various formats are: Croma West side Star India Bazaar K-Raheja Corp. Group: Shoppers’ Stop, Hyper-city, Crossword, In Orbit Mall Reliance Retail Job Opportunities: Retail accounts for 8% employment in the country. In the next 2 years the sector is set to provide 2. 5 lakh job opportunities.
The types of jobs available in retail are: Retail sales, Store management, Stock management, Supply chain management, warehousing and operations. In organized retail the front liners like shop floor executives, sales executives etc are in great demand. The front liners have to directly communicate with the customers. The other jobs are for store managers, store planners, cashiers, stockists, logistics, operations, distribution, marketing, finance, HR, IT etc. Good communication skill, high interpersonal skills, convincing power, positive attitude and ability to handle stress is a prerequisite for these jobs.
Fresh graduates who want to make career in retail can easily fill these jobs. Stock planners, Operations, logistics, cashiers have to deal with the numbers daily. Besides having good communication skills they also require numerical and analytical ability. Bharti retail is planning to invest $2. 5bn by 2015 which will create employment opportunity for 60,000 people. Bharti Resources, a learning and development solutions subsidiary of Bharti Group, has tied-up with Global Retail School (GRS) to groom graduates and undergraduates in retail management and other sectors.
They will provide 3-month and 6-month certificate courses for Rs 30,000 and Rs 15,000 respectively in Retail Sales and Marketing, Retail Visual Merchandising and Space Planning, Retail Supply Chain Management, for creating frontend manpower professionals. Indeed it is a fact that organized retail in India is all set to grow at a stupendous pace. UNORGANISED RETAIL SECTOR:- With the unorganized retail sector set to touch $496 billion mark in 2011-12, small and medium enterprises (SMEs) in the sector can hope for a better future.
According to a recently conducted survey by Delhi-based Indian Council for Research on International Economic Relations (ICRIER), the unorganized retail sector is projected to grow at about 10% per annum in the coming years. The growing unorganized retail market is expected to encourage new small scale players to venture into this space and carve a niche for themselves. The study by ICRIER also indicates that despite the impressive growth of the organized sector, the unorganized sector, mostly dominated by SMEs, will continue to remain pertinent across the country.
Even though ever-increasing shopping malls and branded retail outlets are making it difficult for small retail stores to survive, these outlets have continued to maintain their stronghold in the domestic market. The high retail growth predicted by industry experts and research firms has further prompted SMEs in the sector to embark on their expansion plans, and take advantage of the projected boom. Some of the unorganized retail players have already begun implementing their capacity building strategies in order to reap maximum benefits from the growth.
A large number of ‘mom-n-pop’ stores and ‘Kirana’ stores are planning to put into effect new strategies to gain a significant share of the market and beat competition from the organized players. Despite the growth predicted for the unorganized sector, there is a need for small players to focus on developing innovative formats and introducing smart pricing policies to capitalize on the sector’s growth. These stores should look for ways to create an efficient retail environment and come up with attractive promotional campaigns with the help of smart marketing tools to gain an edge over branded retail stores.
FUNCTIONS OF A RETAILER Retailers provide important functions that increase the value of the products and services they sell to consumers and facilitate the distribution of those products and services for those who produce them. These functions are.. 1) PROVIDING AN ASSORTMENT OF PRODUCTS AND SERVICES:–MOST consumers are well aware of the product assortments retailers’ offer. 2) BREAKING BULK – To reduce transportation costs, manufacturers and wholesalers ship cases / cartons to retailers. This is called breaking bulk. It is cost effective for both manufacturers and consumers. ) HOLDING INVENTORY: – A major function of retailers is to keep inventory that is already broken into user – friendly sizes so that products will be available when consumers want them. 4) PROVIDING SERVICES:– ? Retailers provide services that make it easier for customers to buy and use products. ? They offer credit so consumers can have a product now and pay for it later. ? They display products so consumers can see and test them before buying. ? Some retailers have salespeople on hand to answer questions and provide additional information about products. ) INCREASING THE VALUE OF PRODUCTS AND SERVICES – By providing assortments, breaking bulk, holding inventory, and providing services, retailers increase the value consumers receive from their products and services. OBJECTIVES:- 1. Proper understanding and analysis of VISHAL MEGA MART 2. Conduct a survey on a sample selected from the customers of VISHAL MEGA MART and to obtain their opinions. 3. To know the strategy to make a customer retention. 4. To analyze a comparative study between the satisfaction level of VISHAL MEGA MART, V-Mart & Reliance fresh. 5.
To know the steps that VISHAL MEGA MART adopted to make a good relationship with its customers LIMITATION:- Though the present study aims to achieve the objectives that cited above in full earnestness and accuracy, it may be hampered due to certain limitations. Some of the limitations of this study may be summarized as follows. 1. Locating the target customers is very time consuming. 2. Sample size is limited due to the limited period allocated for the survey. 3. Getting accurate responses from the respondents due to their inherent problem is difficult. They may be partial or refuse to cooperate. . Respondents may not be interested to give the data. 5. Sometime respondents are not taking interest in such type of surveys therefore there is chance that they might be giving wrong information. 6. The respondents are free from all barriers so he/she can give his/her opinion which may not be true in many occasions. 7. The staff of the Vishal only provides/ communicates the merits of its products. VISHAL MEGA MART Vishal Mega Mart is one of India’s fastest growing retail chains. The chain currently has 132 company stores in 20 states / 81 cities in India.
The Vishal brand is known for great modern style for men, women and children. Vishal offers high level fashion styling. Since 1986, their name has been synonymous with quality, value and fashion integrity. They offer an unparalleled collection of clothes for the entire family. Each garment is hand selected for quality and contemporary styling. Vishal manufactures majority of its own garments and out sources some under its direct quality supervision. This enables them to offer the lowest possible and most reasonable prices. Their goal is to provide a range of fashion wear to suit every pocket.
Their product mix represents the most current fashion trends in tops, bottoms, formals and accessories for men, women and kids. Their courteous staff will ensure that consumers get a perfect fit. The Popular Brands of Vishal Mega Mart are:- | Zeppelin : Mens Shirts & Trousers | | Fizzy Babe : Ladies & Kids Girls | | Kitaan Studio : Mens Shirts & Trousers | Jasmine : Ladies & Kids Girls | | Blues & Khakis : Mens Trousers | | Zero Degree : Kids Boys | | Paranoia : Mens Shirts & T-Shirts | | Soil : Mens Shirts | | Chlorine : Mens Shirts | | Massa Bay : Mens Trousers & Bermudas | | Fume : Men’s Shirts, T-Shirts, Under Garments. | VISHAL MEGA MART:- P R O D U C T S ? FOODMART |Beverage | |Cooked Indian | |Cooked Chinese | |Drinks | |Fruits & Vegetables | ? FOOTWARE Boys Girls Shoes Slippers Sandals Sandals LadiesMen’s Shoes Shoes Slippers Slippers ? HOUSEHOLD Acrylic Ware Copper Steel | |Dinner Set Jug Cake Server | |Glass Ware Thermo Ware Porcelain | |Home Aids Pressure Cooker Non Stick | |Floor Wiper Cooker Handi | |Sanitary Brush Pressure Pan Dosa Tawa | |Cup Tiffin Cup & Saucer | |General Plastic Goods Electrical App.
Bone China | |Coffee Mug Chopper Soup Set | |Bucket Microwave Oven Dessert Set | |Lemon Set Container etc. | ? LADIES ACCESSORIES | Personal Items | Nail Polish |Cosmetics | |Cap(LCA) |Necklace |Lip Gloss | |Socks(Las) |Ring | | ? LIFESTYLE Time Zone Opticals Gifts & Novelties | |Ladies Wrist Watch Ladies Sun Glass Flower Vase | |Mens Wrist Watch Mens Sun Glass Key Chain | |Mens Accessories Electric & Electronics Perfume/Deo | |Belts Battery(ABT) Spray | |Wallets Calculator(EEC) Deo | GARMENTS MEN |Upper |Lower | |Shirt Casual |Jeans(MP) | |Shirt Formal |Cotton- Trouser(MPC) | Ethnic & Sports Winter Wear Night Suits Suit(WMC) T-Shirts Blazer (WMB) Dupatta Windcheater Sherwani Jacket | LADIES | Upper | Lower | |Kurta | Pants Jeans | |Skirt Top | Capri | Ethnic Winter Wear Nighty Jackets Lancha Stawl Sharara Blazer Salwar Suit Track Suit BOYS Lower Sets Winter Wear Jeans Night Suit Bermudas Baba Suit Blazer Jacket Upper Ethnic Shirt FormalKurta- Pyjama T-Shirt Sherwani GIRLS Lower Winter Wear Hot Pant Hipster Set Skirt Jacket Upper Ethnic Tops (GWT) Sharara Frock (GFK) Lancha |INFANTS | Garments Accessories Hot Pant Bed Sheet Frock Under Garments
Baba Suit Socks |Winter Wear | |Sweater | |Pull Over | HOME FURNISHING Drawing RoomBedroom Door MatBed Sheet CarpetPillows CurtainsPillow Cover Kitchen Bathroom Apron Bath Mats Kitchen Napkin Towel Gift Sets ? SPORTS & FITNESS Indoor games Outdoor games Basket Ball Cricket Bat T. T. Bat Football Boxing Kit Lawn Tennis Swimming Costumes Tennis Racket Water Ball Tennis Ball Fitness Equip. Personal Gym ? STATIONERY School Office Paper Mart
Exam Board Office File Diary Clay Punching Machine File Party Stuff Balloons Ribbons ? TOYS & GAMES Soft Toys Dolls Cycle & Scooters Musical Toys Barbie Doll Cycles Non-Musical Other Dolls Scooters Board Games Infant Toys Video Games Wooden Blocks Teether T. V. Video PuzzlesSwing Hand Game ? TRAVEL ACCESSORIES Luggages Portfolio Bags Suitcase Shoulder- Bags Pouch & Cases Executive -Bag Waist Pouch School Bags MISSION STATEMENT:- We shall deliver everything, everywhere, every time for every Indian Consumer in the most profitable manner. VISION STATEMANT:-
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. FACTORS AFFECTING MODERN RETAIL 1. CHANGING CONSUMER TASTE & BEHAVIOUR. 2. INCOME OF THE BUYER. 3. STRONG ECONOMY. 4. MARKET GROWTH. 5. MARKET OPPURTUNITIES. 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: 1. Social Factors 2. Psychological Factors 3. 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. 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 and personality. 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. S W O T A N A L Y S I S Some of the strengths and weaknesses of Vishal Mega Mart are outlined below. 1. STRENGTHS:- ? Understanding of the ‘value retail’ segment ? Supply chain management ? Logistics and distribution network ? Geographical spread ? Identifying new locations ? Private labels ? Information technology systems Experienced and skilled management team. ? We can encash brand image of Vishal Retail Ltd. to sell its new product. ? It sells product at cheaper prices. ? Garment sector of the Vishal is much more superior to other retail stores. ? It offers wide range of products under one roof. ? It provides good after-sale service. ? It is the only store in Modal Town,Jalandhar-II where you can exchange the goods after purchase. (On selected items). ? The Vishal Mega Mart is situated at the big market place. ? It segments on middle and lower middle income groups, which constitute majority of the population in India. ? It has well design store & well organized store. 2.
WEAKNESSES:- ? Slow performance of the Stores ? Advent of Category Killers. ? Absolutely no brand awareness for the product. (Z-Line). ? Need to incorporate many new features as per customer requirement. ? Lack of proper extraction of work from staff. ? Need to include more varieties of the same item. ? Need to provide more offers/ discounts on FMCG. Here the perception of the people is quite low, because from my consumer behavior survey I have found out that most of respondents think that Vishal Mega Mart is not providing good offers/discounts on FMCG in comparison of Big bazaar. ? Need to improve store layout according to customer facility. People are not so modern in Jalandhar and their perceptions are quite advance. 3. OPPORTUNITIES:- ? Increasing penetration in the country by leveraging our supply chain, distribution and logistics network ? Emphasis on Backward Integration ? Expansion of FMCG ? Procurement from low-cost production centres outside India ? Increasing customer satisfaction and our base of loyal customers ? Continue to upgrade information technology systems and processes ? Continue to train employees and seek entrepreneurship from employees. ? No other big competitor in that area. ? To increase the customer satisfaction by providing different variety of products. Z-line (Manufacturing unit of Vishal) if we create the brand image of it. It will get additional sales in the future. ? Coming era is of knowledge and information if we sell our manufacturing unit product through internet so we can create its brand image + additional sales in future. ? There is a boom of retail in future according to current scenario. If Vishal creates brand image of its Z-line product, so it can give direct competition to the other branded products in future. 4. THREATS:- ? Demise of Independent small stores ? Demographic Changes. ? Big bazaar, Spencer, Reliance and Globus are the main competitors. ? Overseas group entering the market. ? Increased competition in the domestic market.
RESEARCH METHODOLOGY Research methodology is the way to systematically solve the research problem . It may be under stood as a science of studying to how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. In research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the content of our research study and explain why we are using a particular method and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others.
Secondary data are those which have been collected by someone else and which have already been passed through the statistical process. There are several ways by which secondary data can be classified. SURVEY METHOD:- The survey is a non-experimental, descriptive research method. Surveys can be useful when a researcher wants to collect data on phenomena that cannot be directly observed (such as opinions on library services). Surveys are used extensively in library and information science to assess attitudes and characteristics of a wide range of subjects, from the quality of user-system interfaces to library user reading habits. In a survey, researchers sample a population.
Basha and Harter (1980) state that “a population is any set of persons or objects that possesses at least one common characteristic. ” Examples of populations that might be studied are 1) all 1999 graduates of GSLIS at the University of Texas, or 2) all the users of UT General Libraries. Since populations can be quite large, researchers directly question only a sample (i. e. a small proportion) of the population QUESTIONNAIRES:- When most people think of questionnaires, they think of the mail survey. All of us have, at one time or another, received a questionnaire in the mail. There are many advantages to mail surveys. They are relatively inexpensive to administer.
You can send the exact same instrument to a wide number of people. They allow the respondent to fill it out at their own convenience. But there are some disadvantages as well. Response rates from mail surveys are often very low. And, mail questionnaires are not the best vehicles for asking for detailed written responses. A second type is the group administered questionnaire. A sample of respondents is brought together and asked to respond to a structured sequence of questions. Traditionally, questionnaires were administered in group settings for convenience. The researcher could give the questionnaire to those who were present and be fairly sure that there would be a high response rate.
If the respondents were unclear about the meaning of a question they could ask for clarification. And, there were often organizational settings where it was relatively easy to assemble the group (in a company or business, for instance). What’s the difference between a group administered questionnaire and a group interview or focus group? In the group administered questionnaire, each respondent is handed an instrument and asked to complete it while in the room. Each respondent completes an instrument. In the group interview or focus group, the interviewer facilitates the session. People work as a group, listening to each other’s comments and answering the questions.
Someone takes notes for the entire group — people don’t complete an interview individually. SURVEY INTERVIEWS:- Interviews are a far more personal form of research than questionnaires. In the personal interview, the interviewer works directly with the respondent. Unlike with mail surveys, the interviewer has the opportunity to probe or ask follow-up questions. And, interviews are generally easier for the respondent, especially if what is sought is opinions or impressions. Interviews can be very time consuming and they are resource intensive. The interviewer is considered a part of the measurement instrument and interviewers have to be well trained in how to respond to any contingency.
Almost everyone is familiar with the telephone interview. Telephone interviews enable a researcher to gather information rapidly. Most of the major public opinion polls that are reported were based on telephone interviews. Like personal interviews, they allow for some personal contact between the interviewer and the respondent. And, they allow the interviewer to ask follow-up questions. But they also have some major disadvantages. Many people don’t have publicly-listed telephone numbers. Some don’t have telephones. People often don’t like the intrusion of a call to their homes. And, telephone interviews have to be relatively short or people will feel imposed upon.
CONSTRUCTING THE SURVEY:- Constructing a survey instrument is an art in itself. There are numerous small decisions that must be made — about content, wording, format, placement — that can have important consequences for your entire study. While there’s no one perfect way to accomplish this job, we do have lots of advice to offer that might increase your chances of developing a better final product. First of all you’ll learn about the two major types of surveys that exist, the questionnaire and the interview and the different varieties of each. Then you’ll see how to write questions for surveys. There are three areas involved in writing a question:- determining the question content, scope and purpose ? choosing the response format that you use for collecting information from the respondent ? figuring out how to word the question to get at the issue of interest Finally, once you have your questions written, there is the issue of how best to place them in your survey. You’ll see that although there are many aspects of survey construction that are just common sense, if you are not careful you can make critical errors that have dramatic effects on your results. DETAILS OF RESEARCH:- |Method Used Survey method | |Data sed: Both Primary & Secondary | |Instrument used: Questionnaire | |Sample size: 100 | |Type Of survey: Interview | DATA COLLECTION:- Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation vary along a continuum.
At the one end of this continuum are quantatative methods and at the other end of the continuum are Qualitative methods for data collection . DATA COLLECTION METHODS:- The Quantitative data collection methods rely on random sampling and structured data collection instruments that fit diverse experiences into predetermined response categories. They produce results that are easy to summarize, compare, and generalize. Quantitative research is concerned with testing hypotheses derived from theory and/or being able to estimate the size of a phenomenon of interest. Depending on the research question, participants may be randomly assigned to different treatments.
If this is not feasible, the researcher may collect data on participant and situational characteristics in order to statistically control for their influence on the dependent, or outcome, variable. If the intent is to generalize from the research participants to a larger population, the researcher will employ probability sampling to select participants. Typical quantitative data gathering strategies include: ? Experiments/clinical trials. ? Observing and recording well-defined events (e. g. , counting the number of patients waiting in emergency at specified times of the day). ? Obtaining relevant data from management information systems. PRIMARY DATA COLLECTION:- The considerable and diverse array of primary data methods includes, e. g. true experiments such as randomized controlled trials (RCTs) and other controlled trials; other prospective but uncontrolled trials; observational studies such as case-control, cross-sectional studies, and surveillance studies; and simpler designs such as case series and single case reports or anecdotes. These methods can be described and categorized in terms of multiple attributes or dimensions, such as whether they are prospective or retrospective, interventional or observational, controlled or uncontrolled, and other attributes noted below. Some of these methods have alternative names, and many studies employ nearly limitless combinations of these attributes |Primary data used in this project is mainly collected through questionnaire which has been taken with the help of sample size which has been | |taken and after that the entire data has been manipulated. | SECONDARY DATA:-
Secondary data originally collected for a different study, used again for a new research question. ? Service District Statistics including basic client counts, attributes, demographics, social conditions and lots of program information (analogous to public schools and school teachers, who constitute some of the most accountable of public servants). ? Other Social and Economic Indicators, Consumer Price Index, unemployment figures, inflation indicators, Income Figures, etc. ? Resource Inventories and other needs assessments ? Opinion Polls taken by others ? Budgets ? The secondary data used in this project is :- ? through internet ? through books of retail ? Company profiles of big bazaar and shopper’s stop. QUESTIONNAIRE
CONSUMER BEHAVIOR ABOUT VISHAL MEGA MART JALANDHAR-II. 1. How often do you visit Vishal mega Mart.? a) Once [ ] (b) twice [ ] (c) Thrice [ ] (d) More (please specify)……… 2. How much money do you usually spend on Vishal Mega Mart in a month? a) 0 to 2000 [ ] (b) 2000 to 5000 [ ] (c) 5000 to 8000 [ ] (d) More than 8000 [ ] 3. With whom do you usually come with? a) Alone [ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify)……. 4. Do you come in Vishal Mega Mart? a) Casual [ ] (b) Planed [ ] 5. What features you considers when you purchase in Vishal Mega Mart. lease give the rank. |ATTRIBUTES | SCOPE OF STUDY This project gave us great idea to the customer’s perception of the Vishal Mega Mart or its behavior adopted by the Vishal mega mart employees. The study also identifies the attitudes and preference of the consumers. The study also focused on Media through which the product reaches the consumers this project helped us in knowing the Vishal Mega Mart Model House Jalandhar-II market practically. QUESTIONNAIRE ANALYSIS:- 1. How often do you visit Vishal mega Mart.? b) Once [ ] (b) twice [ ] (c) Thrice [ ] (d) More (please specify)……… Once | |24 | |Twice | |30 | |Thrice | |16 | |More | |30 | [pic] ANALYSIS:- The observation shows that 30 % of people out of 100 people surveyed used to come in Vishal mega mart on twice & more than four times and only 24 % & 16% prefer to go once & thrice time. 2. How much money do you usually spend on Vishal Mega Mart in a month? b) 0 to 2000 [ ] (b) 2000 to 5000 [ ] (c) 5000 to 8000 [ ] (d) More than 8000 [ ]. o to 2000 |42 | |2000 to 5000 |36 | |5000 to 8000 |14 | |More than 8000 |8 | |Total |100 | [pic] ANALYSIS:- The observation shows that 42 % of people spend their money or mostly people used to spend their money (0 to 2000) Rs. & 36% people 2000 to 5000 Rs. which shows that people mostly spend their money upto 5000 Rs. 14% customer are there who spend 5000 to 8000 Rs. In Vishal Mega Mart store Model House Jalandhar-II. and 8% customer who spend more than 8000 Rs in Vishal store. This shows that in this store which customer used to come in Vishal they are not big valuable customer. 3. With whom do you usually come with? b) Alone [ ] (b) with friends [ ] (c) with family [ ] (d) other (plz specify)……. Alone |12 | |With Family |28 | |With Friends |56 | |Others |4 | |Total |100 | [pic] ANALYSIS:- The observation shows that 56 % of customer used to come with their friends & 28% customer are there who comes with their family.
And there are so less customer who used to come alone & with others because it’s family store and young and one customer try to avoid to come in Vishal Mega Mart. 4. Do you come in Vishal Mega Mart? b) Casual [ ] (b) Planed [ ] |casual |40 | |planed |60 | |Total |100 | [pic] ANALYSIS:- 5. What features you considers when you purchase in Vishal Mega Mart. please give the rank. Price | |good |58 | |Very Good |0 | |Avg. |38 | |Poor |0 | |very Poor |4 | |Total |100 | [pic] ANALYSIS:- Product Quality | |good |36 | |Very Good |2 | |Avg. |58 | |Poor |4 | |very Poor |0 | |Total |100 | [pic] ANALYSIS:- Variety | |good |16 | |Very Good |0 | |Avg. |60 | |Poor |22 | |very Poor |2 | |Total |100 | [pic] ANALYSIS:- Offer | |good |56 | |Very Good |12 | |Avg. |28 | |Poor |4 | |very Poor |0 | |Total |100 | [pic] ANALYSIS:- 6. How is the behavior of staff members of Vishal Mega Mart? Staff Behavior | |good |42 | |Very Good |4 | |Avg. |40 | |Poor |12 | |very Poor |2 | |Total |100 | [pic] ANALYSIS:- 7. CUSTOMER PERSONAL INFORMATIONS:- Address | |In Jalandhar |92 | |Outside Jalandhar |8 | |Total |0 | [pic] ANALYSIS:- | Age | |18-25 |32 | |26-30 |30 |31-35 |22 | |36-40 |8 | |41-50 |8 | |>50 |0 | |Total |100 | [pic] ANALYSIS:- Income | |5000-10000 |22 | |11000-20000 |38 | |21000-30000 |10 | |31000-40000 |2 | |More than 40000 |2 | |N. A. |26 | |Total |100 | [pic] ANALYSIS:- | Qualification | |10th |10 | |12th |20 | |Graduate |44 | |P. G. 18 | |Diploma |6 | |other |2 | |Total |100 | [pic] ANALYSIS:- CHALLENGES OF RETAILING IN INDIA ? The first challenge facing the organized retail sector is the competition from unorganized sector. ? In retail sector, Automatic approval is not allowed for foreign investment. ? Taxation, which favors small retail businesses. Developed supply chain and integrated IT management is absent in retail sector. ? Lack of trained work force. ? Low skill level for retailing management. ? Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low margins. ? Organized retail sector has to pay huge taxes, which is negligible for small retail business. EMPLOYMENT OPPORTUNITIES IN RETAIL SECTOR IN INDIA India’s retail industry is the second largest sector, after agriculture, which provides employment. According to Associated Chambers of Commerce and Industry of India (ASSOCHAM), the retail sector will create 50,000 jobs in next few years. SUGGESTIONS:- Company need to spend a lot on advertising and promotion to create brand image of its product. ? Make frequent advertisements in both print and electronic media. ? Making stalls in corporate melas like trade fair, maybe beneficial to create brand image of its product ? Need to provide additional offers and discounts as per customer requirements. ? Need to include varieties of similar item. ? Provide more discounts on FMCG. ? Provide better customer service. ? Maintained proper display to create impulse. (It is assumed that near about 70% sales comes from impulse marketing and if proper display is not maintained impulse cannot be created). ? Better if we provide filtered information about Vishal Mega Mart. CONCLUSION:-
After completing this research we come to know that Only Big Bazaar is ahead of Vishal Stop because of its prime Location and higher product range. Shoppers’ Stop is new in Jalandhar as compared to Vishal Mega mart and it is slowly covering its market. But there are few areas where these malls needs amendments and these suggestions are mentioned in these malls. Advertising is an important factor of getting sales promotion and Vishal Mega mart is ahead of Shoppers’ Stop in that case, but Product Quality of Shoppers’ Stop is better than Big Bazaar. Product Range of Shoppers’ Stop is better than that of Big Bazaar. Overall Vishal Mega mart is ahead of Easy Day and Reliance fresh & V-Mart Retail, but just little behind to Big-Bazaar.