MANAGEMENT THESIS

EFFECT OF VISHAL MEGA MART ON TRADITIONAL RETAILING OF BERHAMPUR

Under the guidance: Presented By Dr.R.K.Panda Debi Prasad Paik

Enroll No.7NBBH047

CONTENTACKNOWLEDGEMENT

CHAPTER- 1 INTRODUCTION

Objectives

Limitation

Methodology

CHAPTER- 2 COMPANY PROFILE

Vishal Mega Mart in Berhampur

CHAPTER -3 CUSTOMER SATISFACTIONS IN VISHAL MEGA MART COMPARED TO

GENERAL KIRANA STORE

CHAPTER- 4 CONCLUDING REMARKS

REFERENCE

ACKNOWLEDGEMENT

To bring out this project a successful one I have received help from various sources. Firstly I acknowledge my wholehearted thanks to my principal Mr. Manmohan Sahu.

It gives us a great pleasure to express my sincere and deepest sense of gratitude to Dr.R.K.Panda, for suggesting the topic of this project, his ready and able guidance throughout the course of this management thesis. I am greatly indebted to him for his constructive and helpful suggestion from time to time during the progress of this management thesis and without which this project would never have been completed.

I also thankful to those personal who gave their valuable time in giving us the necessary data and we also thankful to ICFAI NATIONAL COLLEGE ,Berhampur to make the project successful.

Mr.Debi Prasad Paik

Chapter-1

iNtrODuction

In the background of high consumerism and income of the urban consumers, in recent year there are a number of companies have expressed their interest towards retail sector outlets. As a result numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big bazaar, Vishal Mega Mart, Reliance Fresh are the best known

examples of retail sector outlets in India.

Retailing is the interface between the producer and the individual consumer buying for personal consumption. This excludes direct interface between the manufacturer and institutional buyers such as the government and other bulk customers. A retailer is one who stocks the producer’s goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. Some of the key features of retailing include

Selling directly to customers with out having any intermediaries Selling in smaller units / quantities, breaking the bulk Present in neighborhood or in the location which is quite convenient to the

customers. Very high in numbers Recognized by their service levels Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas, the mindset of the existing customers have undergone drastic changes. Besides it is also reported that the traditional retailing such an age old Grocery shops have directly faced competition with the organized retailing sector. In some parts of the country, it is reported that the traditional retails are resisting the entry of organized shopping malls. For instance the traditional retails of Bhubaneswar with the active support of the consumers at large didn’t allow reliance Fresh to start outlet initially.

RECENT TRENDS Retailing in India is witnessing a huge revamping exercise as can be seen in the graph India is rated the fifth most attractive emerging retail market: a potential goldmine. Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes

up 3 percent or US$ 6.4 billion As per a report by KPMG the annual growth of department stores is estimated at 24% Ranked second in a Global Retail Development Index of 30 developing countries drawn

up by AT Kearney.

RETAIL SALES IN INDIA

GROWTH FACTOR FOR INDIAN ORGANIZED RETAIL INDUSTRYIndia's economy is booming, due to so many economic reforms.the rise in the working population which is young and reduction of the unemployment rate.pay- packets which are hefty, and having a huge package of salary package.more nuclear families in urban areasrise in the number of working womenmore disposable income and customer aspirationwestern influenced life style is adopted by all the people. growth in expenditure for luxury items increases.

GROWTH OF RETAIL INDUSTRY:

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.

Reason for the growth of retail industry is

Existing Indian middle classes with an increased purchasing power Rise of upcoming business sectors like the IT and engineering firms Change in the taste and attitude of the Indians Effect of globalization Heavy influx of FDI in the retail sectors in India

TYPES OF RETAILThe retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.

Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Retailing Formats in IndiaMalls

The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Vishal Mega Mart, India bulls, Pantaloon.

Specialty Store

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors.

Discount Stores

As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable good

Department Stores

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, Vishal Mega Mart and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes.

Hyper Markets / Super Markets

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.

Convenience Stores

These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.

MBO’s

Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.

Berhampur is an important town in the Southern part of Orissa. Most of the business transactions of Southern Orissa concentrate in berhampur. It is found that the traditional retail stores are scattered around different clusters of the city such as Bada Bazar, Vapur Bazar,Annapurna Market . In last two a couple of organized retails have entered into the city for the purpose of grabbing the market opportunities prevailing in the city. The organized retails mostly include Kokata Bazar(Urban Bank road), Vishal Mega Mart(Churh Road) and The World(Giri Road).

In this background, present study is modest attempt to understand the impact of Vishal Mega mart on traditional Retailing.

Vishal Mega Mart,

Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier III cities by the end of 2009.

Traditional retailing

traditional retailing or we can say the unorganized retailing are the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Objectives

The purpose of the present study is to accomplish the following objectives :

Proper understanding and analysis of VISHAL MEGA MART

Conduct a survey on a sample selected from the customers of VISHAL MEGA MART and to derive their opinions.

To know the strategy to make a customer retention.

To analyze a comparative study between the satisfaction level of VISHAL MEGA MART and GENERAL KIRANA STORE.

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.

Locating the target customers is very time consuming.

Sample size is limited due to the limited period allocated for the survey.

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.

Methodology

The objective of the study was accomplished by conducting a systematic market research. Market research is the systematic design, collecting, analysis, and reporting of data and findings that are relevant to different marketing situations facing the company. The marketing research process adopted in the present study consisted of the following stages:

Collection and sources of data: market research requires two kinds of data, i e, primary data and secondary data. Being a firm in the retail sector, data gathering involved the usage of both primary and secondary data though there was an extensive usage of primary data. Well structured questionnaires were prepared for the customers. There were personal interview surveys mostly in-road side surveys. The questionnaire contained both open ended and close ended questions. Here, open ended questions were more useful a it was an exploratory research that was conducted wherein the main objective was to get an insight into how people think rather than measuring how many people think in a particular way. Secondary data was collected from various journals, and websites.

A sample of 50 customers were selected for this survey. Primary data were collected by asking questionnaires by directly interacting with the customers.

8 people were taken as a sample in each week and the survey was conducted for 6 weeks therefore a sample of 50 people were collected.

The sample collection was done randomly among the customers who are coming to the store for purchase.

CHAPTER- 2

company profile

“Future is thinking beyond horizon” & in order to keep its pace with the modern retail, Vishal Retail Limited is spreading its wings. Instead of resting on its laurels the Group are busy identifying new avenues of growth by venturing in other formats like cash & carry, convenios as well as specialty stores and inspiring local retailers to grow along with the big names. The group has tied up with HPCL to open corner stores at their petrol pumps and in addition to the above Vishal has come up with an institute to train manpower for the service industry.

Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 100 fully integrated stores in spread of more than the area of around 22, 00,000 sq. ft. in 69 cities across India & has a plan to cross total retail area of 35 lakh sq. ft. in tier II and tier III cities by the end of 2009.

According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling readymade garments. In tune with the pulse of the market, he envisioned a mega store that would sell garments at prices none other could match. . The first big store opened in Calcutta's Esplanade area in 1997, under the banner of Vishal Garments. He was involved in all the aspects of the business: right from sourcing the garments to interacting with customers. And this led to his greatest finding “The Vishal Group.”

After identifying the immense market in fashion garment for the masses, He moved to Delhi in 2001 and opened his first store in Delhi’s Rajouri Garden by the name of Vishal Mega Mart (The jewel in Vishal Group’s crown) and then there was no looking back for Mr. Ram Chandra Agarwal. At present, in addition to garments, Vishal Mega Mart stores retail the entire range of household products, FMCG and electronic goods. Vishal's prices are roughly 15 to 20 per cent less than other mass market garment labels.

Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that the shopping habits of Indians are changing due to their growing disposable income, higher aspirations, relative increase in the younger population, and the change in attitudes towards shopping. The emphasis has changed from price consideration to design, quality and trendy. Age is also a major factor that affects the spending decisions of an individual. Consumer spending is an important factor that affects the economic growth and development in a country. As a trend, consumer is more educated. He has access to all reforms taking place through various arrays of communication. He is becoming a “value shopper” everyday.

Keeping this in mind, the group is now looking for franchisees to join hands with Vishal and grow under common banner. This partnership will help small retailers to survive the onslaught of organized retail as it will enhance their competitiveness. Small stores can avail of the benefits on account of the economies of scale, a key advantage for big retailers. As per the plans, Vishal Retail will completely take over the supply chain of its franchisees and provide them with technology, new practices, visual merchandising skill and special promotional schemes, besides its brand and costumer base.

Some of the Franchisee exclusive business categories are

Mens Fashion Ladies and Kids Footwear Toys and Games Home – General Convenience (FMCG) CDIT Watches Mobile

The Group also has a plan to raise around Rs 200 crore through preferrential issue in the next few months to fund the company’s expansion plan. Mr. R C Agarwal said “Rs 100 crore corpus raised through the initial public offering had already been utilized and more money was required to push the expansion plans further.”

The group has registered a consistent growth over the years. It recorded a whopping turnover of more than Rs.600 crores in 2006-07 as opposed to a turnover of Rs 288 Crore for 2005- 2006. This ascent has inspired the Group to chalk out an ambitious expansion program, with expansion and growth plans being implemented on different dimensions.

“Retailing is an engine for taking merchandise to the end-users. There is a lot of opportunity in this sector for us since demand of the potential consumers are not being met under the existing facilities. Therein lies the road to success.” says Mr. R C Agarwal

vishal mega mart in berhampur

Date of Inception- 5th November 2007

Location- Plot No.1176, 1177, R. C Church Road Behrampur Orissa.

Vishal mega mart is one of the best retail outlet of India and 4th in Orissa open its new branch in Berhampur on 5th November 2007 withan aim of high profit with providing good and quality products to its customers in Berhampur and to earn more profit. Each store gives international quality goods. Berhampur is a good market place in south Orissa. People from different corners of south Orissa are coming for shopping to Berhampur.

MERCHANDISE SOLD IN VISHAL MEGA MART BERHAMPUR:

Popular Brands of Vishal Mega Mart are:

Zeppelin : Mens Shirts & Trousers Fizzy Babe : Ladies & Kids GirlsKitaan Studio : Mens Shirts & Trousers Jasmine : Ladies & Kids GirlsBlues & Khakis :

Mens Trousers Zero Degree : Kids Boys

Paranoia : Mens Shirts & T-Shirts Soil : Mens Shirts

Chlorine : Mens Shirts Massa Bay :Mens Trousers & Bermudas

Garments

Men Woman girls Boys

Food Mart

Chinese & Indian Food Food & Beverages

Home Furnishing

Covers Drawing room furnishing Bath Furnishing Kitchen Furnishing

Bed room furnishingHouse Hold

Cleaning aids Plastic aids Gifts &novelties Thermo ware

Appliances Kitchen Aids

Product Categories

- HOME FURNISHING

Drawing Room BedroomDoor Mat Bed Sheet Carpet PillowsCurtains Pillow Cover Kitchen BathroomApron Bath Mats Kitchen Napkin Towel Gift Sets

SPORTS & FITNESS

INDOOR GAMES OUTDOOR GAMES Basket Ball Cricket Bat T.T. Bat FootballBoxing Kit Lawn Tennis Swimming Costumes Tennis RacketWater Ball Tennis Ball Fitness Equip. Personal Gym

- FOOTWEAR

BOYS GIRLSShoes SlippersSandals SandalsLADIES MENSShoes ShoesSlippers Slippers

MENS

Upper LowerShirt Casual Jeans(MP)Shirt Formal Cotton Trouser(MPC)Ethnic & Sports Winter Wear Night Suits Suit(WMC)T-Shirts Blazer(WMB)Dupatta Windcheater(WMW)Sherwani Jacket

LADIES ACCESSORIES

Upper LowerKurta Pants Jeans Skirt Top CapriEthnic Winter Wear Nighty Jackets

Lancha StawlSharara BlazerSalwar Suit Track Suit

INFANTS

Garments AccessoriesHot Pant Bed Sheet Frock Under Garments Baba Suit SocksWinter Wear SweaterPull Over

- WOMEN

Sarees Personal Items Fancy(SRF) Cap(LCA)Synthetics Socks(Las)BanarsiJewellery CosmeticsNecklace LIp Gloss Ring Nail Polish

KIDS BOYS

Lower Sets Winter Wear Jeans Night Suit SuitBermudas Baba Suit BlazerDungries JacketUpper EthnicShirt Formal Kurta- Pyjama T-Shirt Sherwani

KIDS GIRLS

Lower Sets Winter Wear Hot Pant Night Suit Hipster Set Skirt Capri Set BlazerDungries JacketUpper EthnicTops(GWT) ShararaFrock(GFK) Lancha

TRAVEL ACCESSORIES

Luggages Portfolio Bags Suitcase Shoulder Bags

Executive Bag School Bags

Pouch & CasesWaist Pouch Vanity Cases

- HOUSEHOLD

Dinner Set Jug Cake Server Home Aids Pressure Cooker Non Stick Floor Wiper Cooker Handi Sanitary Brush Pressure Pan Dosa Tawa General Plastic Goods

Electrical App. Bone China

Coffee Mug Chopper Soup Set Bucket Microwave Oven Dessert Set Glass Ware Thermo Ware PorcelainCup Tiffin Cup & SaucerL$emon Set Container

LIFESTYLE

Time Zone Opticals Gifts & NoveltiesLadies Wrist WatchLadies Sun Glass Flower Vase Mens Wrist Watch Mens Sun Glass Key Chain Mens Accessories Electric &

Electronics Items Perfume/Deo

Belts Battery(ABT) Spray Wallets Calculator(EEC) Deo

TOYS & GAMES

Soft Toys Dolls Cycles & Scooters

Musical Toys Barbie Doll CyclesNon-Musical Other Dolls ScootersBoard Games Infant Toys Video Games Wooden Blocks Teether T.V. Video GamePuzzles Swing Hand Video Game

- STATIONARY

School Office Paper Mart Exam Board Office File Diary

ClayPunching Machine

File

Party Stuff BalloonsRibbons

FOOD MART

FOOD & BEVERAGESSnacksDrinks

CHAPTER - 3

IMPACT OF VISHAL MEGA MART ON TRADITIONAL RETAILING OF BERHAMPUR

The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.

Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Here is a comparative study of the satisfaction level of customers of Vishal Mega Mart over the general kirana store. Basing upon various parameters the data has been collected and analysed.

TABLE:1 DISTRIBUTION OF INCOME CATEGORY ACCORDING TO AGE GROUP

INCOME CATEGORY

20-30 YRS

30-40 YRS

40-50 YRS

>50 YRS TOTAL PERCENTEGE OF INCOME CATEGORY

50,000-1,00,000 0 01 02 0 03 06%

1,00,000-1,50,000

02 02 01 0 05 10%

1,50,000-2,00,000

08 06 02 0 16 32%

2,00,000-2,50,000

06 05 04 02 17 34%

2,50,000-3,00,000

05 03 01 0 09 18%

TOTAL 24 14 10 02 50

PERCENTAGE OF AGE GROUP

48% 28% 20% 4%

OBSERVATION:- Analysis of the data presented in table reveals that maximum no of customers visiting to the Vishal Mega Mart are under the Age group of 20-30 years which has a highest percentage of 48% followed by 30-40 yrs which has 28%, and 40-50 years which has 20%.

Analysis basing upon the income group reveals that the purchase behavior of customers increases as the disposable income of customers increases. That’s why the customers income category falling with in 2,50,000 -3,00,000 are the highest purchasers having 34% of contribution, followed by 2,00,000-2,50,000 income group which has a 32% of contribution and 1,50,000-2,00,000 income group(18%).

TABLE -2 OCCUPATION DISTRIBUTION IN VISHAL AND GENERAL KIRANA STORE

OCCUPATION IN VISHAL MEGA MART

% GENERAL KIRANA STORE

%

BUSINESS 07 14% 17 34%

GOVT EMPLOYEE

08 16% 9 18%

PRIVATE COMPANY EMPLOYEE

15 30% 10 20%

STUDENT 20 40% 14 28%

TOTAL 50 100% 50 100%

OBSERVATION: TABLE 2 shows that mostly young students and private employees are visiting vishal mega mart in more no. Students are visiting Vishal Mega Mart more in no

which about 40% of the total sample followed by private company employees having 30% . but businessmen are visiting kirana stores more in no which is about 34% followed by students which is about 28% which shows that younger generation is more attracted towards this mall concept of retailing than the traditional retailing store

TABLE -3 EDUCATION DISTRIBUTION IN VISHAL AND GENERAL KIRANA STORE

EDUCATION IN VISHAL MEGA MART

% GENERAL KIRANA STORE

%

1-10TH 4 8% 12 24%

10TH -> +2 9 18% 13 26%

GRADUATION 16 32% 15 30%

POST GRADUATION

21 42% 10 20%

TOTAL 50 100% 50 100%

OBSERVATION: mostly the youngsters which are avg and highly qualified are visiting the malls more frequently than local kirana stores which shows that they are more status conscious and malls provide them a friendly environment among the friend group.

TABLE -4 GENDER DISTRIBUTION IN VISHAL AND GENERAL KIRANA STORE

.Gender IN VISHAL MEGA

MART% GENERAL

KIRANA STORE%

M 23 46% 36 72%

F 27 54% 14 28%

total 50 100% 50 100%

OBSERVATION: table 4 shows that female to male ratio is high in Vishal mega mart than in general kirana store, that is more female members are coming to vishal mega mart than general kirana store because they are feeling more secure and convenient in retail stores rather than general kirana stores.

TABLE -5 AGE DISTRIBUTION IN VISHAL AND GENERAL KIRANA STORE

AGE IN VISHAL MEGA MART

% GENERAL KIRANA STORE

%

1-10 4 8% 3 6%

10-20 9 18% 4 8%

20-30 23 46% 10 20%

30-40 13 26% 14 28%

40-50 5 10% 19 38%

TOTAL 50 100% 50 100%

OBSERVATION: Table 5 shows that mostly people of age group 20-30 are coming vishal mega mart frequently and age gp of 40-50 are coming general store frequently.

TABLE-6 DISTRIBUTION OF CUSTOMERS ON THE BASIS OF TIME SPENT TO PURCHASE

TIME SPENT IN MINUTE

IN VISHAL MEGA MART

% GENERAL KIRANA STORE

%

0-30 3 6% 30 60%

30-60 22 44% 20 40%

60-90 13 26%

90-120 8 16%

120-150 4 8%

150-180

Total 50 50

OBSERVATION: table 6 shows that more percentage of people spending 30-60 minutes time in vishal mega mart which is about 44% of the sample but more percentage of people spending only 0-30 minutes in general kirana store. This is due to the availability of enough space or aisles for the customers to wander around the retail store and spend some idle time. Here most of the retail stores are not only for purchasing the goods but for giving refreshment to the customers that’s why they are spending more time in retail store which increases the sale of the retail store.

TABLE -7 EXPENDITURE WISE DISTRIBUTION OF CUSTOMER IN VISHAL MEGA MART & GENERAL KIRANA STORE

EXPENDITURE CLASS

VISHAL MEGA MART

% GENERAL KIRANA STORE

%

0-500 6 12% 27 54%

500-1000 11 22% 14 28%

1000-1500 19 38% 9 18%

1500-2000 14 28%

TOTAL 50 100% 50 100%

OBSERVATION:- Table 7 shows that about 38% of people are purchasing in between 1000 – 1500 Rs, in vishal mega mart and 54% of people are purchasing in between Rs.0-500 in general kirana store, which shows that purchase capacity increases in retail stores due to many factors like availability of wide range of products which suits to the purchase capacity of the customer. Wide distribution of products also increases the impulse buying behavior of the customer.

TABLE -8 DISTRIBUTION OF CUSTOMERS ON THE BASIS OF ITEMS PURCHASED

ITEMS PURCHASED NO OF CUSTOMERS PURCHASED FROM VISHAL MEGA MART

(OUT OF 50 CUSTOMERS)

NO OF CUSTOMERS PURCHASED FROM GENERAL KIRANA STORE

(OUT OF 50 CUSTOMERS)

Rice 20 30

Dal 20 20

Spices 15 15

Detergents 20 20

Soaps 30 20

Toothpaste 20 10

Shampoo 25 10

Refined oil 15 10

Sugar 15 20

Tea 20 10

Health drinks 20 10

Milk Powder 10 --

Mosquito coil 10 --

Biscuit 15 10

Papad 20 10

Pickle 20 5

Plastic accessories 25 --

Home ware 20 --

OBSERVATION: from this table it is clear that in kirana stores only the necessary items such as rice, dal, edible oil, spices, wheat flour are mainly purchased by the customers but in Vishal

Mega Mart not only the necessary itmes but the luxury items like cosmetics, electronic items, and life style items and apparels are also sold in good quantity. This gives the customer a convenient place where he can buy every kind of things under one roof.

TABLE -9 DISTRIBUTION OF MEAN PRICE OF THE ITEMS BETWEEN VISHAL MEGA MART & GENERAL KIRANA STORE

ITEMS MEAN PRICE IN VISHAL MEGAMART

MEAN PRICE IN GENERAL KIRANA STORE

Rice 25 20

Dal 40 40

Spices 21 (BRANDED ITEMS) 20(LOCAL BRANDS)

Detergents Surf excel-1kg-140/-

Ariel-1kg-116/-

With offer.

Same but without offers.

Soaps 16/- 16/-

Toothpaste 500gm- 56/- 500gm- 56/-

Shampoo 200ml-70/- with free gift 200ml -70/- but with out free gifts

Refined oil 95/- but vishal price 76/- 95/-

Sugar 22/- 22/-

Tea 500gm-50/- but with free 100 gm biscuit pack.

500gm-50/-

Health drinks 1 kg -220/- 1 kg -220/-

Milk Powder 1kg-210/- 1 kg-225/-

Mosquito Liquid-72/- but Vishal price - Liquid-72/-

repellent 67/-

Biscuit 1 pack -10/- 2 pack for 15/- 1 pack -10/-

TABLE-10 MEAN QUANTITY PURCHASE FOR ALL ITEMS.

ITEMS QUANTITY PURCHASED IN VISHAL MEGA MART

QUANTITY PURCHASED IN GENERAL KIRANA STORE

Rice 2kg 4 kg

Dal 2 kg 2kg

Spices 300 gm 100 gm

Detergents 3kg 1 kg

Soaps 4 no 2no

Toothpaste 250 gm 250 gm

Shampoo 200ml 50 ml

Refined oil 1lt 1lt

Sugar 2 kg 1kg

Tea 500 gm 250 gm

Health drinks 1kg 500 gm

Milk Powder 1kg 500 gm

Mosquito coil 1 pack 1pack

Biscuit 500 gm 100 gm

Papad 250 gm 250gm

Pickle 500 gm 200 gm

OBSERVATION: due to presence of wide variety of merchandise and presence of merchandise which suits every pocket increases the customer buying behavior.

TABLE-11 ITEM WISE MEAN EXPENDITURE AT VISHAL MEGA MART AND GENERAL KIRANA STORE.

ITEM Mean EXPENDITURE IN VISHAL MEGA MART

Mean EXPENDITURE IN GENERAL STORE

Rice 86/- 138/-

Dal 49/- 98/-

Spices 50/- 20/-

Detergents 116/- 32/-

Soaps 64/- 48/-

Toothpaste 56/- 56/-

Shampoo 75/- 30/-

Refined oil 190/- 80/-

Sugar 44/- 22/-

Tea 100/- 42/-

Health drinks 220/- 115/-

Milk Powder 210/- 115/-

Mosquito coil 36/- 18/-

Biscuit 50/- 20/-

Plastic accessories

100/- --

Home ware 200/- --

OBSERVATION: in this table we have seen that mean expenditure on the merchandise is more in Vishal Mega Mart than general kirana store because of the reason of some of the promotional activities like Every day Low Price(EDLP), offers, discounts, coupons, annual clearance sale in which the customer gets the merchandise or goods in lesser price in compared to the other general shops.

TABLE-12 VARIETIES AVAILABLE AT VISHAL MEGA MART

ITEMS NO OF VARIETIES PRESENT IN VISHAL MEGA MART

NO OF VARIETIES PRESENT IN GENERAL KIRANA STORE

Rice 5 2

Dal 4 2

Spices 4 (branded) 2 (branded),local brands-4

Detergents 6 3

Soaps 10 6

Toothpaste 5 4

Shampoo 6 3

Refined oil 5 3

Sugar 2 1

Tea 4 3

Health drinks 6 3

Milk Powder 4 2

Mosquito coil 3 2

Biscuit 6 4

Papad 4 2(BRANDED),REST ARE LOCAL

Pickle 3(BRANDED) 3(BRANDED),3(UNBRANDED)

Plastic accessories

2 --

Home ware 4 --

OBSERVATION: Table 12 shows that there are more no of varities of items are present in Vishal mega mart than general Kirana store.

VARIABLES TO MEASURE SATISFACTION

TABLE -13 SATISFACTION WITH PRICE IN VISHAL MEGA MART IN COMPARED TO GENERAL KIRANA STORE

SATISFACTION WITH PRICE

NO OF PERSONS VISHAL MEGA

MART

PERCENTAGE

%NO OF PERSONS IN GENERAL KIRANA

STORE

PERCENTAGE

%

HIGH SATISFACTION

07 14% 03 06%

SATISFIED 28 56% 16 32%

LESS SATISFIED

15 30% 26 52%

UNSATISFIED 00 00% 05 10%

TOTAL 50 100 50 100

OBSERVATION: Table 13 shows that 70% of people are satisfied with the price of VMM where as only 38% of people are satisfied with the price of kirana store.

TABLE 14 SATISFACTION WITH QUALITY in VISHAL MEGA MART IN COMPARED TO GENERAL KIRANA STORE

SATISFACTION WITH QUALITY

NO OF PERSONS in VMM

PERCENTAGE % NO OF PERSONS IN G.K.S.

%

HIGH SATISFACTION 05 10% 07 14%

SATISFIED 37 74% 12 24%

LESS SATISFIED 08 16% 24 48%

UNSATISFIED 07 14%

TOTAL 50 50

OBSERVATION :TABLE 14 Shows that 74% of people are satisfied with the quality of the products of Vishal mega Mart where only 48% of people are satisfied with the quality of kirana store.

TABLE 15 : IS VMM BETTER THAN GENERAL KIRANA STORE

OPINION NO OF PERSON %YES 36 72%

MANAGEABLE 14 28%

NO 00 00

TOTAL 50

OBSERVATION: TABLE 15 Shows that 72% of people are interested to purchase in such malls followed by 28% of people saying its manageable , perhaps this group is trying to convert themselves from traditional to organized shopper.

TABLE -16: REASON OF SUPERIORITY OF MALL

REASONS OF SATISFACTION NO OF PERSON %NEWLY OPEN 10 20%

CHEAP PRICE 25 50%

ALL ITEMS AVAILABLE UNDER ONE ROOF

10 20%

SHOPPING IN BIG MALLS AS 05 10%

A STATUS SYMBOL

TOTAL 50

OBSERVATION 16 The reason for growing likeness of the mall concept or retail store has great many reasons like 20% of the people sited that due to new opening the curiosity of buying or purchasing ina new and advanced environment attracts many customers. It is also obvious that due to introduction of this store the retail company may offer some discounts ad other advantages which also attracts the customers.

25% of the customers have felt that the prices in Vishal Mega Mart is quite lower that other general grocery stores and that’s why they are attracted towards this retail store.

10% of the customers have said that purchasing in Vishal mega mart is less time taking because thay don’t have to wander here and there for different kinds of things and all the goods are there under one roof.

5% of the customers said that considers buying in retail stores like Vishal Mega Mart is a status Zsymbol for them.

So there are great many reasons for buying thingdsin Vishal Mega Mart.

CHAPTER -4

CONCLUDING REMARKS

KEYFINDINGS:

1 :Analysis of the data presented in table reveals that maximum no of customers visiting to the Vishal Mega Mart are under the Age group of 20-30 years which has a highest percentage of 48% followed by 30-40 yrs which has 28%, and 40-50 years which has 20%.

Analysis basing upon the income group reveals that the purchase behavior of customers increases as the disposable income of customers increases. That’s why the customers income category falling with in 2,50,000 -3,00,000 are the highest purchasers having 34% of contribution, followed by 2,00,000-2,50,000 income group which has a 32% of contribution and 1,50,000-2,00,000 income group(18%).

2 :shows that mostly young students and private employees are visiting vishal mega mart in more no. Students are visiting Vishal Mega Mart more in no which is about 40% of the total sample followed by private company employees having 30% . but businessmen are visiting kirana stores more in no which is about 34% followed by students which is about 28% which shows that younger generation is more attracted towards this mall concept of retailing than the traditional retailing stores.

3: mostly the youngsters which are avg and highly qualified are visiting the malls more frequently than local kirana stores which shows that they are more status conscious and malls provide them a friendly environment among the friend group.

4: table 4 shows that female to male ratio is high in Vishal mega mart than in general kirana store, that is more female members are coming to vishal mega mart than general kirana store because they are feeling more secure and convenient in retail stores rather than general kirana stores.

5: Table 5 shows that mostly people of age group 20-30 are coming vishal mega mart frequently and age gp of 10-20 are coming general store frequently.

6: table 6 shows that more percentage of people spending 30-60 minutes time in vishal mega mart which is about 44% of the sample but more percentage of people spending only 0-30 minutes in general kirana store. This is due to the availability of enough space or aisles for the customers to wander around the retail store and spend some idle time. Here most of the retail stores are not only for purchasing the goods but for giving refreshment to the customers that’s why they are spending more time in retail store which increases the sale of the retail store.

7:- Table 7 shows that about 38% of people are purchasing in between 1000 – 1500 Rs, in vishal mega mart and 54% of people are purchasing in between Rs.0-500 in general kirana store, which shows that purchase capacity increases in retail stores due to many factors like availability of wide range of products which suits to the purchase capacity of the customer. Wide distribution of products also increases the impulse buying behavior of the customer.

8: from this table it is clear that in kirana stores only the necessary items such as rice, dal, edible oil, spices, wheat flour are mainly purchased by the customers but in Vishal Mega Mart not only the necessary itmes but the luxury items like cosmetics, electronic items, and life style items and apparels are also sold in good quantity. This gives the customer a convenient place where he can buy every kind of things under one roof.

10: due to presence of wide variety of merchandise and presence of merchandise which suits every pocket increases the customer buying behavior.

11: in this table we have seen that mean expenditure on the merchandise is more in Vishal Mega Mart than general kirana store because of the reason of some of the promotional activities like Every day Low Price(EDLP), offers, discounts, coupons, annual clearance sale in which the customer gets the merchandise or goods in lesser price in compared to the other general shops.

12: Table 12 shows that there are more no of varities of items are present in Vishal mega mart than general Kirana store.

13: Table 13 shows that 70% of people are satisfied with the price of VMM where as only 38% of people are satisfied with thwe price of kirana store.

14:TABLE 14 Shows that 74% of people are satisfied with the quality of the products of Vishal mega Mart where only 48% of people are satisfied with the quality of kirana store.

15: TABLE 15 Shows that 72% of people are interested to purchase in such malls followed by 28% of people saying its manageable , perhaps this group is trying to convert themselves from traditional to organized shopper.

16: The reason for growing likeness of the mall concept or retail store has great many reasons like 20% of the people sited that due to new opening the curiosity of buying or purchasing ina new and advanced environment attracts many customers. It is also obvious that due to introduction of this store the retail company may offer some discounts ad other advantages which also attracts the customers.

25% of the customers have felt that the prices in Vishal Mega Mart is quite lower that other general grocery stores and that’s why they are attracted towards this retail store.

10% of the customers have said that purchasing in Vishal mega mart is less time taking because thay don’t have to wander here and there for different kinds of things and all the goods are there under one roof.

5% of the customers said that considers buying in retail stores like Vishal Mega Mart is a status symbol for them.

So there are great many reasons for buying thingdsin Vishal Mega Mart.

SUGGESTIONS:1- As the customers are coming from the distant places some kind of refreshment like

restaurants, cafes should be there to get relax.

2- Customers are buying in a bulk quantity so they definitely needs a trolly to carry the goods to the billing counter ,though the trollies are there in Vishal Mega Mart but the continuity of floor is interrupted due to numerous upstairs in a single floor which reduces the utility of trollies in Berhampur Vishal Mega Mart. We can increase the purchase capacity of customers by providing trollies for excess goods those they are not able to carry.

reference

To make my project a successful one I have taken help from various sources, such as direct interaction journals and web sites. The books I have referred are

Retail management (ICFAI).

The web sites I have referred for different information are

www.vishalmegamart.com

www.indianretailindustry.com

The previous thesis I have referred of

Mr. Nalinikanta Padhi “A study on customer satisfaction with reference to VISHAL MEGA MART in Berhampur.