CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION TO RESEARCH TOPIC

Value and satisfaction are at the very heart of modern marketing thinking Marketing
is indeed an ancient art; it has been practised in one form or the other, since the days
of Adam and Eve. Today, it has become the most vital function in the worlds of
business.
Marketing, more than any other business function, deals with customers.
Understanding, creating, communicating, and delivering customer and practice.
Marketing is the delivery of customer satisfaction at a profit.

Marketing management is a functional area of business management. it plays a vital

role in developing strategies, plans and programs for each market segment in order
to satisfy the customer wants.

Marketing management represents marketing concept in action. In other words, it

refers to the pre-plan demand management under customer oriented marketing
philosophy. In simple words, marketing management is the management of
marketing activities that is to involve planning, implementation and control of
marketing programmes included in the process of marketing.

Martin Zober has described marketing management as follows:

“Marketing management is the use of interdisciplinary sciences in the coordinative

effort of planning, organizing, and controlling activities that direct the flow of goods
and services from producer and to customers. So that they are fully satisfied and the
objectives of the enterprise are achieved”.

Marketing management has historically been identified with tasks and personnel
dealing with the customer market. It has the task of influencing the level, timing and
composition of demand in a way that will help the organization achieving its
objective marketing management is essentially demand management.

2
Market: The word ‘Market’ is derived from the Latin word ‘marcatus’, which
means merchandise, trade or a place where business is conducted. In ordinary
language the term market means a place where goods are bought and sold.

The concept exchange and relationships lead to the concept of market. A market is a
set of actual and potential buyers of a product. Thus buyers share a particular need
or want that can be satisfied through exchanges and relationship. The size of the
market depends on the number of people who exhibit the need, have resources to
engage to exchange, and are willing to offer these resources in exchange for what
they want.

The retail industry is one of the biggest employers in the country. Retailers sell
goods and products to consumers. There are many different kinds of retailers,
including department stores, specialty stores, discounters, catalogs, Internet sites,
independent stores, chain restaurants and grocery stores. Retailers have a real need
for employees who have good people skills.

Many salespersons work evenings, weekends, and long hours from Thanksgiving
through the beginning of January, during sales, and in other peak retail periods.

The retail trade sector comprises establishments primarily engaged in retailing

merchandise, generally without transformation, and rendering services incidental to
the sale of merchandise.

The retailing process is the final step in the distribution of merchandise; retailers are
therefore organized to sell merchandise in small quantities to the general public.
This sector comprises two main types of retailers, that is, store and non-store
retailers. Their main characteristics are described below.

Store Retailers

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Store retailers operate fixed point-of-sale locations, located and designed to attract a
high volume of walk-in customers. In general, retail stores have extensive displays
of merchandise and use mass-media advertising to attract customers. They typically
sell merchandise to the general public for personal or household consumption, but
some also serve business and institutional clients. These include establishments such
as office supplies stores, computer and software stores, gasoline stations, building
material dealers, plumbing supplies stores and electrical supplies stores.
In addition to selling merchandise, some types of store retailers are also engaged in
the provision of after-sales services, such as repair and installation. For example,
new automobile dealers, electronic and appliance stores and musical instrument and
supplies stores often provide repair services, while floor covering stores and window
treatment stores often provide installation services. As a general rule, establishments
engaged in retailing merchandise and providing after sales services are classified in
this sector.
Catalogue sales showrooms, gasoline service stations, and mobile home dealers are
treated as store retailers.

Non-Store Retailers

Non-store retailers, like store retailers, are organized to serve the general public, but
their retailing methods differ. The establishments of this sub-sector reach customers
and market merchandise with methods such as, the broadcasting of infomercials, the
broadcasting and publishing of direct-response advertising, the publishing of
traditional and electronic catalogues, door-to-door solicitation, in-home
demonstration, temporary displaying of merchandise (stalls) and distribution by
vending machines.
The methods of transaction and delivery of merchandise vary by type of non-store
retailers. For example, non-store retailers that reach their customers using
information technologies can receive payment at the time of purchase or at the time
of delivery, and the delivery of the merchandise may be done by the retailer or by a
third party, such as the post office or a courier. In contrast, non-store retailers that
reach their customers by door-to-door solicitation, in-home demonstration,

4
temporary displaying of merchandise (stalls) and vending machines typically receive
payment and deliver the merchandise to the customer at the time of the purchase.

The non-store retailer’s sub-sector also includes establishments engaged in the home
delivery of products. This includes home heating oil dealers and newspaper delivery
companies.

Retail Employment: The retail industry accounts for about 11.6 percent of U.S.
employment. Annual retail employment averaged 15.3 million people in 2005.
Retail unemployment was 5.4 percent compared to 5.1 percent overall. Employment
of non supervisory workers in retail averaged 13.0 million in 2005. Non supervisory
retail employees averaged 30.6 hours a week during 2005 with average hourly
earnings of $12.36. Ten year employment projections expect retail to increase 11.0
percent, versus 14.8 percent overall.

Challenges for retail include operating on razor-thin margins, the retail industry is
challenged by static domestic markets, a volatile economic scenario, a need to
globalize and exploit unfamiliar segment, the need to achieve critical mass, rapid
consumer demand shifts, supply chain coordination, and relentless competition.

Retailers are looking for innovative ways of responding to evolving markets,

competitive pricing, new product rollouts, and changing consumer tastes. Existing
retail technology is fragmented, with limited integration between storefront and
corporate systems and even less between the enterprise and its supply chain partners.
Aging platforms are proving inflexible, expensive to maintain, difficult to integrate
and dependent on a shrinking base of experienced support talent.

Retailers worldwide are opting for IT services outsourcing, which enables them to
focus their attention on core functions and business operations, adding value to their
business by freeing up valuable resources and reducing costs.

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1.2 SUBJECT BACKGROUND OF THE TOPIC

The Current Retail Context

As differentiation between retail chains decrease and the need for convenience and
value-added services increases, customers have become more discerning and
demanding but less loyal than before. One retailer's customer today is a potential
customer for all other chains, formats and channels tomorrow.

To create sustainable advantage over competition, retailers are trying to enhance

their product offerings, service levels and pricing models. To prevent value erosion
and to protect margins, retailers are trying to reduce their cost-to-serve per customer
and thereby ensure that the total cost of ownership of a customer over time is
reduced. Managing promotional spends is another critical area for retailers to focus
and target customers more effectively and efficiently.

Generating above 10% of the Gross Domestic Production, Indian retail industry is
the largest source of employment, after agriculture, in the country. Enormous
opportunities exist in this sector.

Driven by the changing lifestyles and strong income growth, retail industry in India
is expected to record an impressive growth in the next five years. Growth in this
sector will be further supported by the favorable demographic patterns. Growing
consumer credit will also help boost consumer demand.

As shopping malls are becoming increasingly common in metropolitan cities, and

the announced development plans project at least 150 new shopping malls by 2008.
Number of departmental stores is growing at an annual 24%. Supermarkets have
been taking a growing share of general food and grocery trade during the past two
decades.

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

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consumer buying behavior, ushering in a revolution in shopping in India. Modern
retail has entered India as seen in sprawling shopping centers, multi-storeyed 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.

The mall's glistening exterior seems to capture the exuberance of India's economic
boom. Inside, however, except for a busy restaurant and supermarket, business is
sluggish, and many shops are slathered with signs proclaiming SALE.
Organized retailers in India are trying out a variety of formats, ranging from
discount stores to supermarket to hypermarkets to specialty chains. However, of late,
most players appear to be gravitating towards the hypermarket format.

Some feel a combination of cash-and-carry and neighborhood stores, as in a hub-

and-spokes model can be a good bet. Says one retail analyst, nascent markets like
India need a lot of room for experimentation on part of the retailers. Ergo, there are
no cut-and-dried solutions when it comes to fixing on the right retail format.

Finally, while in the first flush of the retail boom, the elimination of traditional
intermediaries may bring windfall gains (as well as bring welcome and much-
needed relief to the producers), this source will increasingly dry out as competition
intensifies and margins come under pressure a few years down the line.

What would set the survivors apart from those who are forced to sell out (or go
belly-up) will be differentiators like location, value-added services (convenience),
private labels and customer loyalty programmes, other than price. The last, a result
of retailer-manufacturer tie-ups, state-of-the-art supply chain infrastructure, global

7
sourcing and scale will be a key factor. And, if experience in other markets is
anything to go by, an uncanny ability to read shifting trends.

1.3 NEED OF THE STUDY

Retailing is a low-margin, high-volume, commodity business where profitability

gets strained as competition intensifies. And if wrong choices are made regarding
the location or the formatting of the store, woe betide the retailer. The catches are
many and to make it big, a retailer would have to negotiate all the tricky turns most
of the time. Given the number of players getting into the fray today, this clearly
means a winnowing out of the weaker retail players. What's more, that time could be
sooner rather than later, maybe just three or four years down the line.

That's not so surprising, industry insiders even say, pointing out that a large number
of the new entrants may not be committed to retailing in the long term. While some
almost certainly are looking to act as silent partners for foreign players, others may
be more willing to look at an exit option a few years down the line.

Forum has been rated as one of the best malls in the country, now with the entry of
other malls in Bangalore, Forum has been challenged in its position to remain at the
top. The present research would identify whether Forum Mall has the competitive
advantage over other malls in Bangalore.

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 CHAPTER 2

RESEARCH DESIGN

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2.1 INTRODUCTION

The Malls in retail industry in India collectively generate 90 crores revenue a

year. Some players have managed to cut through consumer resistance with innovation,
pricing and aggressive marketing. The competition level in the Mall industry is very high
now. Many brands are fighting in the market for maximum share. They have to bring out
a lot of differentiation among them. The major duty of the marketer is to know the
reasons for preferring particular Mall by the consumers.

2.2 REVIEW OF LITERATURE

The Competitive Advantage Report includes questions in four key areas,

Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the
customer should be invited to participate in the survey. Setting realistic expectations
during the sales process is a vital component of making happy customers. How a
company sets and meets product and service expectations plays a pivotal role in
fashioning customer opinions. For this report, how a company meets or exceeds
expectations is measured in three important areas: product/service, support, and price.
These three areas will be used to factor a score for the Expectations category. The results
of the three questions will be used to factor an overall expectations score.
The Purchase Decision category gives us a better understanding of how the customer
perceives the purchase process. Two key areas for questions include an open ended
question on why they purchased and a ratings question on their experience. The rating
Question data will be used for the analysis of Purchase Decision category. The open
ended responses from the “Why” questions will be used for product strengths analysis.
The results of the purchase experience question will be used for the overall Purchase
perception analysis. Customer service is one of the most important differentiations a
company can have. For this report, customers will rate a company in three key areas:
customer service, timeliness for problem resolution, and expertise. These three areas will
be used to factor a score for the Customer Service category.

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PURPOSE OF LITERATURE REVIEW

Literature review is one of the prime parts of every project. The very basic purpose of the
literature review is to gain insight on the theoretical background of the research problem.
It helps the researcher to gain strong Theoretical basis of the problem under study and
also help to explore whether any one has done research on the related issue. That’s why
literature review helps one to find out the path of problem solving. In this regards the
very basic purpose of the literature review in this project is same as mentioned

2.3 PROBLEM STATEMENT

Forum has been rated as one of the best malls in the country, now with the entry of other
malls in Bangalore, Forum has been challenged in its position to remain at the top. The
present research would identify whether Forum Mall has the competitive advantage over
other malls in Bangalore.

2.4 OBJECTIVES

The principle objective of the present research study is to analyze the competitive
advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore.
The specific objective of the study are :-
1. To identify the competitive advantage of Forum in the retail industry in terms of
• Promotional activities
• Brand value
• Customer perception
• Brand offerings
2. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma
Mall, Eva Mall.

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2.5 RESEARCH METHODOLOGY

POPULATION

The population in this present study consists of the regular visitors in the mall during
the last 15 days.

SAMPLE AND SAMPLING TECHNIQUE

The sample taken is 100 and the sampling technique used here is convenient
sampling..

SOURCES OF DATA

Secondary and primary data would be collected for the study. After identifying
and defining the research problem and determining specific information required
solving the problem the researcher will look for the type and sources of data which
may yield the desired results

Secondary data: Secondary data is available in the form of company records, trade
publications, company reports, Daily Newspaper, Textbook, Various Websites and
libraries.

Primary data: Primary data is collected by framing questionnaires. The questionnaire

contained questions which are both open-ended and closed-ended.

2.6 SCOPE

The study conducted would help in understanding and analyzing the various aspects
in the retail industry. It would indicate that global supply chain development shall
also be a key success factor, the retailers who are able to provide high quality

12
products at the most competitive prices will be the winners. Finally, the Indian
retailers will have to brace themselves for increased competition on a global level.

2.7 LIMITATIONS

1. The study is time-bound (1 month)

2. The research is conducted only in Bangalore
3. The sample taken is limited as it is a research and not a census.

CHAPTER SCHEME

1. Introduction

2. Research Methodology

3. Profile of the Industry and Company

4. Analysis of the Data Collected

5. Findings, Suggestions and Conclusion

Bibliography

Appendix

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 CHAPTER 3

PROFILE OF INDUSTRY & COMPANY

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3.1 RETAIL INDUSTRY

After leading the IT bandwagon, India is poised to grow as a Retail hub. It is imperative
to sustain the modernization of the retail sector and dispel the myth that the game is big
Vs small or traditional Vs modern or organized Vs unorganized or local Vs foreign .
What is needed is to create an appropriate environment to propel retail where all benefit,
he said.

India's huge population, he said, has the potential for mammoth consumption if given the
power of spending and that is only possible through large scale development generating
employment which is already happening with retail as the driving force.

According to IMAGES India Retail Report 2007, of the Rs.12,00,000 crores retail
market, food & grocery retail is by far the single largest block estimated to be worth a
whopping Rs.7,43,900 crores, but more than 99 per cent of this market is dominated by
the neighborhood kirana stores.

But unlike the experiences in most other countries, growth of Indian retail is not going to
be a staggered and time-taking process: India has already shown the world how quick it
can adapt to hi-tech products and services and will again set a record of sorts in setting up
world class retail formats across the country in record time. In the next five years India
should have retail entities strong enough to compete with the best in the world

At present, India's retail sector is largely unorganized, with about 15 million tiny outlets
catering to consumer needs across the country – it employs the second-largest number of
people after agriculture. Organized retail is now focused primarily on the 300 million
urban "middle classes'' and an additional 200 million rural rich, who form a consumer
market worth more than US$100 billion. So, there is enough ground for the modern and
the traditional formats to co-exist.

India's economic growth story consists three important things:

15
One - that here is a society in which the fruits of development are more evenly spread, in
which democracy is more real and palpable to the mass of the population, which makes
for a stable social environment that is attractive and reassuring;

Two - that India is an enormous market, of which you are seeing only the tip of the
iceberg;

Three - the tremendous resilience of India: we survived the zooming oil prices, the
fluctuating dollar and global recession, with barely a hiccup.

The Indian economy is integrating with the world, and yet it simultaneously has its own
dynamics, which cushion global shocks as in no other country. India had kept the retail
sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small
storeowners and only allows 51 per cent foreign investment in single-brand retail with
prior government permission. FDI is also allowed in the wholesale business. Single-brand
retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their
own. Metro is already operating through the cash-and-carry wholesale mode. .

“To understand the reasoning and implications of such moves it was vital to size up the
entire retail market in various segments and consumption levels across product categories
with share of the organized segment and it was just the right time for India Retail Forum
to take the initiative of researching the scope of retail businesses in India”

Till, couple of years back the Indian organized retail market was either dominated by the
apparel brand stores or regional retail chains. There was no Pan-India retail chain on the
line of developed economies and the organized retail in India contributes roughly 3.5 ñ 4
per cent of the total Indian retail, which is very small compared to the developing
economies like Thailand, Brazil and so on. ICICI Property Services and Technopak
estimate that the total real estate required by the upcoming organized retail chains will be
in the range of 500 million square feet, out of which 250 mn sq ft should be contributed
by the shopping malls. However, as per the current plans of real estate developers, only
143-mn sq ft of mall space is being planned over the next five years and this leaves the
retail industry with a shortage of more than 40 per cent. Developers are now more attuned
to the demand by both domestic and foreign companies, where tenants are driving on
16
improvement in the quality of commercial real estate development. The success of retail
real estate business depends on the developer’s ability to recognize and respond to the
changing consumer and market trends. As the competition in the market is intense, mall
developers, in a bid to offer distinctive value propositions are planning specialty malls.
These malls have a higher conversion rate as consumers go there with specific
requirements. A number of malls are being developed as a part of a large residential
development, driven by the concept of providing a total quality lifestyle with residential,
retail and office space as a part of integrated development. The retail component helps
boost the property values of the overall development and the available catchments from
the residential component aid in marketing the mall. With so much action in the shopping
mall space, there is always a debate going on about the implication on the existing retail
real estate. The study shows that high streets being in operation for long have assured
footfalls of the target segment and in fact, most of the retailers experience much higher
space productivity in a high street shop than a regular mall. However, the speedy
development of ill-conceived and poorly planned malls has and will continue to lead to
lower profits for mall owners and retailers. India has also seen many foreign developers
as well as investors coming in the last year to get a foothold in the lucrative real estate
market. Many Indian developers have also raised funds from the global investors or are
planning to raise capital from the capital market. Mall management has been a major
challenge for India’s shopping mall owners, who until recently have mostly developed
properties and then sold it to investors who further lease it out to the retailers. This has
resulted in unplanned and uncontrolled developments of the malls and may lead to
eventual loss of rental values. The mall owners and developers need to consider the
importance of controlling and managing their malls in order to maximize the value on
their investments. The right mix of tenants would lead to maximizing the market value of
the mall. India is getting into an interesting phase as far as retail and real estate is
concerned and we will see more and more and world class shopping ambience being
created by developer.

With new shopping-malls having become operational in many cities across India, it is
interesting to observe how the shopping-behavior of consumers in the vicinity of these
malls has changed and thereby draw some lessons that could be of some use to the

17
developers of hundreds of new malls that are currently under planning or construction
across India.

It is still not too long ago that the operators of a particular new shopping-mall at Mumbai
had to contemplate restricting entries of visitors by imposing conditions that such entry
was limited to those having mobile phones or credit cards a.k.a., the income tax
department's one in six criterion for filing a tax return.

Rentals, rather than going down with more malls coming up, started moving up even as
the quality of services within the malls started deteriorating.

In this context, therefore, it is somewhat surprising that questions are already being
asked, albeit in whispers, whether shopping-malls can survive and operate profitably in
India.

Many tenants lament about the low percentage of conversions from those who walk
through the portals of these malls, and casual observers routinely find shopping-bags
missing in the hands of the supposed shoppers visiting these malls as an indicator that the
initial euphoria about shopping in the malls is already on the wane and that consumers
are reverting to their traditional shopping-destinations.

There are some myths and some realities about these observations. It is, indeed, true that
many Indian retailer tenants in the shopping-malls have now become familiar with terms
such as footfalls, conversions, average transaction value, and repeat customers.

However, it is also true that for many of these tenants, it has been their first expansion
beyond their traditional high street locations and hence, they have expectations born more
out of hype than by any real experience.

There is no reason to believe that it should be any different in a shopping-mall, which, in

any case, is fundamentally no different from a traditional shopping-high street, except
that a mall has a more modern and compact structure, in most cases a single roof.

Local retailer tenants who move into a new mall for the first time should not expect any
customer loyalty being built up overnight.
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Mall developers also have to create distinctive identities for their specific malls, much
like the identities that have developed over time for major shopping-high streets in
various cities in the country.

Their work is not done just when the mall has been commissioned! As for the would-be
retailer tenants, it is important to realize that merely moving into a mall does not
guarantee business for them.

They have to work as hard to draw consumers to their own stores once the latter have
entered the mall, and then have the right value proposition for them to get converted into
customers, and then become repeat customers.

The final, obvious, conclusion is that mall developers have to invest in getting a better
understanding about the retail business, while retailers have to get a better understanding
about the dynamics of operating at a new location.

India's vast middle class and its almost untapped retail industry are key attractions for
global retail giants wanting to enter newer markets. Driven by changing lifestyles, strong
income growth and favorable demographic patterns, Indian retail is expected to grow 25
per cent annually.

The retail road ahead

The Indian retail market is estimated at US$ 350 billion. But organized retail is estimated
at only US$ 8 billion. However, the opportunity is huge--by 2010, organized retail is
expected to grow to US$ 22 billion. With the growth of organized retailing estimated at
40 per cent (CAGR) over the next few years, Indian retailing is clearly at a tipping point.
India is currently the ninth largest retail market in the world. And it is names of small
towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the
rankings soon.

Moving up the evolutionary ladder won't be easy for India's retailers. Especially given the
large number of potential spoilers. Availability of quality retail space will be a key

19
determinant for the growth of the sector. With most Indian cities undergoing rapid
urbanization, spiraling rental costs has most retailers worried already.

Hitherto, most retailers have preferred to go in for long-term leases. But with real estate
prices in most top tier cities hitting the roof in the past two years, lease rental increases
are making business unviable for organized retail.

According to PricewaterhouseCoopers (PWC), the current average lease rentals across

some of the top cities range from Rs 88 per sq feet per month to as high as Rs 120 per sq
ft per month. On an average, lease rentals account for 7-8% of the revenue and 40-45% of
the non-material cost for retailers. Unless these prices stabilize, most retail businesses
could end up taking much longer than originally planned to break even.

Foreign retailers have shown that managing operations innovatively can provide a
significant competitive advantage to retailers. Wal-Mart, for instance, leverages IT to
track supply chain processes like cross-docking very effectively. Similarly, Tesco
requires lean production techniques of its suppliers and has high-reliability delivery
systems in place such as 'milk-runs'.

The other key metric -- stock availability -- is telling too: Where global retailers achieve
more than 95% availability of all stock-keeping units on the retail shelves, their Indian
counterparts cut a rather poor figure at 5-15%.There are other areas that retailers would
have to master -- such as reaping economies in procurement and transportation, bulk
storage, trend forecasting to minimize inventory levels -- before they can truly claim to
have arrived. There are various retail formats currently in use in India. These include
hyper and supermarkets, convenience stores, department stores and specialty chains.
Among these formats a notable trend has been the development of integrated retail-cum-
entertainment centers and malls as opposed to stand-alone developments.

About 25 million square feet of organized retail space is expected to come up across the
country by 2005. Mumbai and Delhi rank amongst the top two cities in India for
organized retail growth. Although, the emergence of the organized retail outlets has
predominantly been an urban phenomenon, in the next couple of years, organized

20
retailers will to enter semi-urban areas in India, where disposable income is also fast
increasing.

Retailing is not yet officially recognized as an industry. India does not allow 100 percent
foreign direct investment (FDI) in the retailing sector. There have been discussions
between the government and the industry on opening up the retail sector to FDI, and at
least allow 26 percent foreign equity initially, but a decision has not yet been taken. A
case is being made to the Government of India by officials of some global majors to
allow FDI in retail trading of low-volume, high-value products.

Though 100 percent FDI is not allowed, it is still possible for the foreign retailers to
enter the Indian market through three channels - franchise agreements, cash and carry
wholesale trading, and strategic license agreements.

With tariffs on imported consumer items gradually being aligned to meet prescribed
WTO norms and reduction of import restrictions, the retailing sector will get a major
boost. To attract and sustain the interest of international retailers, India still has quite a
way to go by way of reforming the real estate laws, restructuring the tax structure, and
allowing FDI in the retail sector.

The growing consuming class coupled with the entry and expansion of organized sector
players in the recent years has set the pace for corporate investment in retail business. It
has seen the emergence of supermarkets, huge department stores and shopping malls.
Large-format supermarkets are coming up including centrally air-conditioned malls. The
retailers have started looking at new business formats, business planning and expansion.

However, the sector faces several challenges. Property and real estate issues, capital
availability, legal framework, human resources, supply chain development and
management, and logistics are amongst the prominent ones. The foremost challenge
facing the organized retail industry in India is competition from the unorganized sector.

21
Traditional retailing (12 million outlets) has been established in India (as elsewhere in the
world) for centuries. It is a low cost structure, mostly owner-operated, has negligible real
estate and labor costs and little or no taxes to pay. Consumer familiarity that runs from
generation to generation is a big advantage for the traditional retailing sector.

In contrast, players in the organized sector have big expenses to meet, and yet have to
keep prices low enough to be able to compete with the traditional sector. High costs for
the organized sector arises from: higher labor costs, social security to employees, high
quality real estate, much bigger premises, comfort facilities such as air-conditioning,
back-up power supply, taxes etc. Organized retailing also has to cope with the middle
class psychology that the bigger and brighter a sales outlet, the more expensive it will be.

Despite these difficulties, investor interest in this sector is growing. Also, with tariffs on
imported consumer items gradually being aligned to meet prescribed WTO norms and
reduction of import restrictions, the retailing sector will get a major boost.

Competition

The figures for the Indian retail business, when compared to developed markets, look
small. But in the Indian context they are attractive enough to invite investors' attention.
Some of the largest Indian corporate houses such as the Tatas, Rahejas, and Goenkas
have entered the retailing sector. In addition, the last decade has seen many retail startups
such as Pantaloon, Shoppers' Stop, and Ebony entering the organized retail fray.
Although some have fallen by the way side, a significant number of new retail businesses
have surged ahead of the pack and are now aiming to become nation wide chains.

Current retailing formats such as street carts, pavement shops, kirana stores (mom and
pop stores), public distribution system, kiosks, weekly markets etc. are unique to India
and have been in existence for a long time.

A major contrast to these formats is the emergence of modern large-scale formats such as
supermarkets, specialty stores, chain stores, department stores, hypermarkets, factory

22
outlets and discounters. In addition to these formats, the emergence of malls has
transformed the retailing environment in India and is expected to push organized retailing
into the fast track.

A unique distinction in the mall development in India is that Indian malls have a
combination of high value outlets, as well as mass brands, while in comparison malls
overseas either cater to the mass category or are the boutique type. If a city like Mumbai
is examined, there are three types of malls in existence in Mumbai.

Though malls are on route to be the kings of organized retail in the future, their
sustainability is debatable. It will eventually come down to what value proposition a mall
manager can provide versus the competition to increase footfalls into the mall. Given the
number of retail malls coming up around the country, only the one that satisfies the
Indian consumers' need for value-for-money proposition will survive.

Of course, there is a perception that the offerings of these spacious, plush and up scale
stores will be high priced. To counter those apprehensions, stores have started offering
budget-pricing schemes, offers and sales to attract that price sensitive customer. Unlike
the early days of organized retailing in India, people of all strata of society are now
walking into these stores.

Market Access

The Global Retail Development Index (GRDI), developed by AT Kearney has ranked
India fifth in a global ranking of emerging destinations in the retail sector for food and
general merchandise retailers who have international expansion plans. Since Foreign
Direct Investment is not allowed or encouraged, India remains only a potential attractive
destination for investments.

Retailing is one of the few sectors of the Indian economy that is closed to Foreign Direct
Investment (FDI). One of the major arguments against allowing FDI is that the advent of
large retailers will cause the demise of the mom and pop stores.

23
However, those in favor of allowing FDI argue that there are obvious benefits of
permitting FDI in retail - it will boost a key growth sector of the economy, create
employment, benefit consumers with the increase in the retailer efficiency and
competitiveness, and introduce best practices and access to world-class technologies.
Despite the perceived benefits of permitting FDI into the retail trade sector, reticence still
persists amongst policy makers.

Strategic License Agreements: Mango, a well-known apparel brand, has used this route to
enter into India as it is said to be the easiest alternative for global retailers. A strategic
License Agreement involves the signing of a joint venture agreement with a domestic
retailer. Although global retailers are using the above routes as an alternative to FDI,
major chambers and associations are sparing no effort to make the government
understand the opportunities FDI in this sector will bring in for the economy. It will be a
while before the government realizes that FDI will not only boost the retail scenario but
will also attract FDI in various upstream activities such as food processing and
packaging. In this scenario, global retailers will be unable to enter into India till the
government decides to open its shores to foreign investment. However, in addition to the
routes mentioned above it is important to note that non-resident Indians can invest in the
real estate development sector. Therefore, it is possible for foreign property developers to
tie up with NRIs to invest in property development in India.

Retailers are faced with the enormous challenges of globalization, regulation, growing
costs, and demanding customers. In addition to these changing market conditions, there
are now multiple channels to reach customers. All of this increases the need for flexibility
and agility in the business applications. However, at a time when competition is keenly
interested in buzzwords like agility and adaptability, businesses are confronted with
systems seemingly built of steel and cement. Businesses are stuck with applications
which were developed as though things would never change. These applications become
more expensive and cumbersome each time organizations tweak them to fit new business
imperatives. Unfortunately, this leads to less materialization of automation because
systems require constant human intervention and IT development. All too often, the
alignment of technology with business objectives gets bogged down by integration
problems and progresses no further than the white board.
24
Embracing emerging technologies to enhance the overall experience of the customers and
improve efficiency within the organization. These pressures are forcing retailers to
rethink their overall strategies. Current legacy systems—either in store or at the corporate
headquarters—were designed and implemented many years back, and retailing has
moved on since then. These legacy solutions tend to be uni-functional. For example
check-out systems remain single-purpose devices, and even though new point-of-service
(POS) solutions offer inventory management, price optimization, and customer
management some retailers are still only using POS devices to check-out the customer.

In addition, current retail solutions are built as separate siloed systems. Brick-and-mortar
retail channel runs independently from the e-commerce channel, which runs
independently of the catalog base-order management system, and so on. However,
customers are increasingly using the stores to touch and feel the products but ordering the
products from e-commerce sites. As broadband availability becomes pervasive, the
distinction between different channels is blurring. Customers are expecting the same
experience irrespective of how they shop. They expect their preferences and customer
information to be carried between the channels and expect to accrue loyalty points across
all channels.

3.2 COMPANY PROFILE - The Forum

BACKGROUND
The Prestige Group, who is the leading property developer of Bangalore, is promoting
this Project. The Group has completed over 5 million square foot of space and has
delivered over a 100 projects. The Group also has over five decades of experience in
retailing and represents leading brands in Bangalore. This unique combination of real
estate experience and retail expertise gives the Group the technical competence and the
conceptual sensitivity to design, build and manage an integrated only for lease and not
for sale SHOPPING MALL that offers complementary experiences.
The Project design incorporates market research, product profile and mall customer
psychology inputs from international property and mall management consultants from
USA and Hong Kong through CB Richard Ellis and Jones Lang LaSalle. Following thru
on these inputs the Project design process proceeded as follows:
25
 1. The target customer was profiled to be between 15 and 40, of the ‘now-
generation’ and in the middle / upper middle class segment.
2. The experiences that the target customer group would seek and which
should be offered were identified to be:

• Retail
• Food & Beverage
• Entertainment, and
• A multiplex
3. The total space that should be allocated for each experience was identified.
E.g., Retail 38%
4. Within each experience, the trade mix that must be present to provide
prospective customers with a comprehensive offering was determined.
E.g., Apparel 36%
5. For each trade mix the constituent trade category was identified. E.g.,
Men’s Formal 17%.
6. For trade category a wish list of constituents was drawn up. E.g.,
Raymond’s, Louis Philippe.
The resultant offering to the consumer would thus be focused and capable of making the
SHOPPING MALL a destination.
The Project is comprised of 650,000 sft of built area in four- and – a – half acres of land.
Of the total area, 350,000 sft is the people space and 300, 000 sft for parking around 800
vehicles. The highlights of the project are:
• Consumer focus design.
• Complementary experience / product offering.
• Only for lease.
• Presence of only ‘top-of-mind’ recall brands.
• 11 – Screen multiplex.
• Parking for around 1000 vehicles.
• Mall promotion and management by promoter.
• Operational by mid 2003.

26
The Project is unique, relevant and contemporary in concept, positioning and success
potential.

LOCATION
The property is located at 21. Hosur Road, Koramangala, Bangalore. It is within four and
a half kilometers from Brigade Road, which marks the Central Business District.
The property gains access from two main roads and has a frontage of over 350 ft.
The catchments area of the project includes prime residential areas of
Koramangala, Jayanagar, Richmond Town, BTM layout and Indiranagar. The
location is part of the IT corridor. The travel time from the CBD is within 10
minutes. Several colleges [Jyothi Nivas College, Christ College, St. John’s
Medical College], software [Lucent Technologies] / commercial [Mico] offices,
stores [Big Bazaar, Globus, Raheja Arcade], eat-outs [Pizza Corner] are located
within a radius of 1 km, but no organized ‘brand’ retailing is in the vicinity.

NEED FOR THE PROJECT

Consistent with the faster pace of life, time has become a commodity: to be conserved
and wisely spent. It is in acknowledging this new value for time that marketers
worldwide recognized the convergence of shopping and entertainment and the emergence
of family entertainment centers as the premier destination of all spenders of leisure time.
Shopping and entertainment are today complementary expectations for shoppers and
entertainment seekers. All current platforms of shopping and entertainment in Bangalore
– whether in high streets, shopping complexes, cinema theaters, video parlors or
restaurants – are in mutually exclusive locations. This places limits upon the customers
potential to maximize time….. and it is in response to this, that this project has been
conceived.
International property consultants have the following to say:
• 83% of entrepreneur retailers contacted are planning expansion – CB Richard
Ellis

27
 • Bangalore is right on top of new expansion list of most brand managers – CB
Richard Ellis
• Shopping Malls and cinema are currently the most attractive leisure destinations –
CB Richard Ellis
• Bangalore is one of the four best markets in the country having a high level of
retail maturity – Jones Lang LaSalle
• Organized retailing in India is set to increase five fold from US $ 1.2 billion in
2000 to US $ 7.6 billion in 2005 – Kurt Salmon Associates
This Project’s offering is thus supported by strong research fundamentals.

PROJECT COMPONENTS
The principle ideation behind the Mall is to offer:
• A Brand optimizing presence
• A synergistic environment, and
• A potential for 300 minutes of ‘shopper-tainment’
Consistent with this ideation and supported by the researched findings of international
property consultants, the Project has the following components:
• Two levels of retail space. Each level is about 85000 SFT.
• One level of food courts, play stations and entertainment
• One level of cinema housing an 11 – screen multiplex, with 2150 seats.
All the components are scheduled to be commissioned simultaneously and would be
supported by:
• 100 % power back up
• Intelligent computerized car parking system for 1000 vehicles
• Centralized air conditioning
• Indoor air quality management system.
• Professional Mall management for services and Mall promotion
• Joint exclusive marketing mandate to CB Richard Ellis and Jones Lang LaSalle.

28
ENVIRONMENTAL ASPECTS

The Project is located in an area designated for commercial use in terms of the
Comprehensive Development Plan of the Bangalore Development Authority. Its
immediate neighborhood is consistent with the planned activity. Provisions for water
treatment and sewage treatment have been incorporated into the Project planning.

PRESENT STATUS

1. The Mall is full fledged functional from February 2004.

2. All designing has been completed.
3. Leasing program with all Tenants is complete.
4. Commitments received for 100% of space.

SL# CATEGORY AREA OCCUPIED IN IN PERCENTAGE

SFT
1 ANCHORS 81458 23.27
2 FOODCOURT 29008 8.32
3 F&B 27742 7.96
4 BRANDED STORES 98882 28.76
5 NON BRANDED 5508 1.57
6 MULTIPLEX 104875 30.08
347473 100.00
PARTICIPATING BRANDS INCLUDE:

LEVEL 0

• MC DONALD
• ARCHIES
• REEBOK
• CARBON
• ZODIAC
• TITAN
• HSBC
29
 • HEALTH & GLOW
• FX CURRENCY
• CAFÉ COFFEE DAY
• LEVIS
• ADIDAS
• METRO
• ARROW
• NIKE
• KFC
• FAB MART
• RELIANCE WEB STORE
• BENETTON
• PLANET FASHION
• TOMMY HILFIGER
• WEEKENDER KIDS
• PEPE
• PROLINE
• WESTSIDE

LEVEL 1

• ISIS
• MUSTARD
• CHAI
• SWAROVSKI
• SF JEANS
• WILLIAM PENN
• JOCKEY
• GREEN HILLS
• COOKIE MAN

30
 • PETER ENGLAND
• PROVOGUE
• SAMSONITE
• MOCHI
• SCULLERS
• PIZZA HUT
• RAYMONDS
• MASPAR
• AFFINITY
• FFARNA
• LEE
• WRANGLER
• LANDMARK
• LUSH
• MILANO
• ETHOS
• KHADDAR

LEVEL 2

• BOSE
• AFTON
• WHIZZ
• SWEET WORLD
• MODEL ART
• KALMANE
• SONODYNE
• SANGEETHA
• APPLE
• AMOEBA

31
 • NIK NISH
• FEATHERLITE
• TRANSIT

LEVEL 3

• PVR CINEMAS
• BASKIN ROBBINS
• BODY CRAFT - NAIL BAR

LEVEL 4

• PVR CINEMAS
• DECCAN DREAMS

The Bangalore-based real estate developers Prestige Group took root way back in 1956 in
the avatar of a retail store, Prestige Fashions, that bartered in custom tailoring and
retailing ready-to-wear garments. It was in 1985-86 that the company forayed into real
estate development with the construction of Prestige Court in KH Road, Bangalore.

Over the years, the Prestige Group has played a major role in changing the skyline of
Bangalore and is fast emerging as one of the leading developers of South India. So far
Prestige Constructions has completed over 120 projects, encompassing more than 10
million sq. ft. of commercial and residential area.

In the residential segment, Prestige has undertaken projects such as Prestige Kensington
Gardens, Prestige Wellington Park, and Prestige Shantiniketan. The group is also
developing United Breweries' real estate venture, UB City. Prestige has also made a mark
by developing high-quality commercial projects like Prestige Nebula and Prestige
Technology Park.

32
In an effort to cash in on the retail boom in the country, the Prestige Group has planned to
develop over 7 malls in South India at an investment of Rs. 2500 crore. The group's
Forum Mall in Bangalore, an entertainment-cum-retail complex, includes 11 theatre
multiplexes with food, bowling and shopping facilities.

Besides being an ISO 9001:2000 certified company, the Prestige Group has also received
the Crisil DA1 rating for its commitment to excellence.

Beginning with a retail store and growing to become one of the most trusted names in
real estate- the Prestige Group has come a long way.

It was one man's dream, his grit and foresight that laid the firm foundations of Prestige,
way back in 1956. Mr. Razack Sattar - the visionary who glimpsed what others would
comprehend many years later and the founder of what is today the Prestige Group of
Companies. The grand old man of retailing, endowed with unmatched business acumen,
sowed the seeds of high quality retailing in Bangalore with Prestige Fashions on
Commercial Street. Having started with custom tailoring and retailing ready-to-wear
garments, the company today scores skylines with innumerable impressive constructions.
A success story truly made possible by the founder's progeny - Irfan, Rezwan, Noaman
and Anjum, the group has been groomed into great leaders who continue to uphold the
Prestige vision.

Spreading the falcon's wings

We moved into the sphere of property development with Prestige Court (KH Road,
Bangalore) in 1985-86. The last decade saw the Prestige Group strengthening its pillars
of trust, quality and credibility, thereby leaving an indelible mark on the skyline of
Bangalore and its people, as one of the leading developers of South India. And as the
scorecard proudly reads today - over 120 developments completed, encompassing more
than 10 million sq.ft. of commercial and residential area - it's proof that there's no looking
back for Prestige. Several developments in the pipeline include noted developments like
UB cITy, Prestige Shantiniketan as well as the Prestige Technology Park. What's more,
we are also planning to spread out into other cities - with plans of a mall in Hyderabad, a
residential development in Cochin, a technology park in Chennai and villas in Goa.
33
Strengthening our promise

Today, as a real estate development company honoured with people's trust and credited
with transforming the skyline of Bangalore, we at Prestige constantly strive for
perfection. The ultimate aim is to exceed your expectations. A proof of our efforts - we
are the only builders to get a reaffirmation of the Crisil DA1 rating; we have also become
an ISO 9001:2000 certified company. We are also the only builders in Bangalore whose
software and residential facilities have won the reputed FIABCI award.

At present, our Rs. 300 crore construction conglomerate is spearheaded by Irfan Razack
and ably supported by Rezwan Razack. Noaman Razack, the youngest of the three
brothers, looks after the retailing business. Faiz Rezwan, the son of Rezwan Razack has
recently joined the board as a director and is already proving to be an asset to the
company.

34
 CHAPTER 4

DATA ANALYSIS & INTERPRETATION

35
ANALSIS OF DATA COLLECTED

“COMPETITIVE ADVANTAGE OF RETAIL INDUSTRY” – A study on Forum

Mall.

PROBLEM STATEMENT

Forum has been rated as one of the best malls in the country, now with the entry of other
malls in Bangalore; Forum has been challenged in its position to remain at the top. The
present research would identify whether Forum Mall has the competitive advantage over
other malls in Bangalore.

OBJECTIVES

The principle objective of the present research study is to analyze the competitive
advantage of the major retailing mall in the retail industry of the metropolitan, Bangalore.
The specific objective of the study are :-
3. To identify the competitive advantage of Forum in the retail industry in terms of
• Promotional activities
• Brand value
• Customer perception
• Brand offerings
4. To critically take up a comparative study of Forum Mall with Garuda Mall, Sigma
Mall, Eva Mall.

36
RESEARCH METHODOLOGY

POPULATION

The population in this present study consists of the regular visitors in the mall during
the last 15 days.

SAMPLE AND SAMPLING TECHNIQUE

The sample taken is 100 and the sampling technique used here is convenient
sampling.

SOURCES OF DATA

Secondary and primary data would be collected for the study. After identifying
and defining the research problem and determining specific information required
solving the problem the researcher will look for the type and sources of data which
may yield the desired results

Secondary data: Secondary data is available in the form of company records, trade
publications, company reports, Daily Newspaper, Textbook, Various Websites and
libraries.

Primary data: Primary data is collected by framing questionnaires. The questionnaire

contained questions which are both open-ended and closed-ended.

37
 Analysis of data collected

AGE OF THE RESPONDENTS

Table No. 1

AGE NO. OF RESPONDENTS % OF RESPONDENTS

24 24%

18-25
42 42%

25-40
19 19%

40-55
15 15%

ABOVE 55
100 100%

TOTAL

Interpretation:

The above table showing the age categories of the Mall visitors who participated in the
survey

38
 AGE OF RESPONDENTS

45
40
35
30
25
20
15
10
5
0
18-25
25-40 S1
40-55 RESPONDENTS
AGE >55

Analysis:

Above 40% of the respondents of the survey were between25-40 of age and second
most respondents were between18-25. There were only 15 respondents of above 55.

39
GENDER OF THE RESPONDENTS

Table No. 2
GENDER NO OF RESPONDENTS % OF RESPONDENTS

MALE 45 45%

FEMALE 55 55%

TOTAL 100 100%

Interpretation:

The above table showing the gender of the respondents those who
participated in the survey

40
 GENDER OF THE RESPONDENTS

M a le
F e m a le

Analysis
Above 55% of respondents of the survey were female customers and there were
only 45% male respondents.

41
OCCUPATION OF THE RESPONDENTS

Table No. 3

Occupation No of Respondents % of Respondents

Business 18 18%

Professional 14 14%

Employee 20 20%

Student 38 38%

Others 10 10%

Total 100 100%

Interpretation:

The above table showing the occupation of the Mall Visitors those who participated
in the survey and their percentage wise analysis

42
 Occupation of the Respodents

40

35

30
No of Respondents

25

20

15

10

0
Business Pfsnl Emplye Stdnt Others
Occupation

Analysis:

The majority of the Mall Visitors participated in the survey were students.
consisting of 38% and the employees consisted of 20%. And the Professionals
and Businessmen constitute only 32%.

43
FREQUENT MALL VISITOR

Table No. 4
Mall Visitor No. of Respondents %age of Respondents

Yes 89 89%

No 11 11%

Total 100 100%

Interpretation:
The above table showing that the number of respondents who frequently visit malls
during the survey.

44
 F R E Q U E N T V IS IT O R

YES
NO

Analysis
Around 90% of the respondents are frequent mall visitors as compared to the 10% of
those who don’t visit regularly.

45
HOW OFTEN DO YOU GO TO MALLS.

Table No.5
Frequency of visit Respondents %age of Respondents

Once a week 25 25%

Twice a week 53 53%

Thrice a week 22 22%

Total 100 100%

Interpretation
The above table shows the frequency of respondents visiting malls during the survey.

46
 F re q u e n c y o f v is it

60

50

40

R e sp o n d e n 30
ts

20

10

0
O nc e a w eek Tw ic e a w eek Thric e a w eek

Analysis
The majority of the respondents have been visiting malls twice a week as compared to the
other respondents.

47
REASON FOR MALL VISIT

Table No.6
Reason for Mall Visit Respondents %age of Respondents

Movies 12 12%

Shopping 29 29%

Food Court 2 2%

All 57 57%

Total 100 100%

Interpretation
The above table shows the reasons as to why respondents go to malls during the survey.

48
 R e a s o n fo r M a ll v is it

60

50

40
Respondents

30

20

10

0
M o vie s S h o p p in g F o o d C o u rt A ll

Analysis
It is seen that most of the respondents visit malls for all the aspects mentioned i.e.
movies, shopping and food court.

49
WHICH MALL DO YOU PREFER GOING TO

Table No.7
Mall Preference Respondents %age of Respondents

Forum 52 52%

Sigma 11 11%

Eva 6 6%

Garuda 31 31%

Total 100 100%

Interpretation
The above table shows the Mall preference by the respondents during the survey.

50
 M a ll P r e fe r e n c e b y R e s p o n d e n ts

F o ru m
S ig m a
E va
G a ru d a

Analysis
The analysis shows that most of the Respondents prefer going to Forum Mall.

51
SHOPPING ATTRIBUTES SOUGHT FROM A MALL

Table No.8
Shopping Attributes Respondents %age of Respondents

Ambience 23 23%

Stores 34 34%

Proximity 26 26%

Food courts 17 17%

Total 100 100%

Interpretation
The above table shows the shopping attributes that respondents look for while shopping
in a mall.

52
 S h o p p in g A ttr ib u te s in a M a ll

A m b ie n c e
S t o re s
P ro x im it y
F o o d c o u rt s

Analysis
The analysis shows that stores are the main attributes that respondents look for while
shopping in malls followed by proximity.

53
ARE YOU AWARE OF THE FORUM SHOPPING FESTIVAL HELD LAST
YEAR

Table No.9
Awareness Respondents %age of respondents

Yes 100 100%

No - -

Total 100 100%

Interpretation
The table shows that if the respondents were aware of the Forum Shopping Festival that
was held last year.

54
 A w a r e n e s s o f t h e F o r u m S h o p p in g F e s t iv a l

120

100

80
Respondents

60

40

20

0
Y es No

Analysis
The analysis shows that all of the respondents were aware of the Forum Shopping
Festival.

55
THE MALL OFFERING THE BEST MIX OF BRAND OUTLETS

Table No.10
Mall with right brand mix Respondents %age of Respondents

Forum 54 54%

Sigma 12 12%

Eva 9 9%

Garuda 25 25%

Total 100 100%

Interpretation
The table shows which mall offers the best mix of brands that the respondents prefer.

56
 M a lls w ith r ig h t m ix o f b r a n d s

G a ru d a

E va

S ig m a

F o ru m

0 10 20 30 40 50 60
R e s p o n d e n ts

Analysis

The analysis shows that the respondents favor Forum Mall in having the right mix of
brand outlets.

57
RATING OF THE MALLS

5-Excellent, 4-Very Good, 3-Good, 2-Poor, 1-Very Poor

Table No.11
Parameters Location Layout Entertainment Hygiene Parking Overall

Forum 5 4 4 4 4 4

Sigma 3 3 2 3 3 3

Eva 3 1 2 3 2 2

Garuda 5 3 3 3 3 3

Interpretation

The above table shows the ratings given by the respondents based on the parameters of
the Malls.

58
 M a ll R a tin g s

4 F o ru m
S igm a
Rating

3
E va
2 G a ru d a
1

0
L o c a tio n Lay out E n te rta in m e n t H y g ie n e P a rk in g
P a ra m e te rs

Analysis

The analysis shows that Forum has got the maximum ratings among the other malls in
contention in Bangalore.

59
INFERENCE FROM THE DATA ANALYIS

From the data analysis I can say that my objectives have been proved right i.e. Forum has
a competitive advantage in terms of
• Promotional activities
• Brand value
• Customer perception
• Brand offerings

Also from the comparative study it can be concluded that Forum does have competitive
advantage when compared to the other malls.

60
 CHAPTER 5

FINDINGS, SUGGESTIONS & CONCLUSION

61
 FINDINGS

The old prophecy that once a customer is a customer has become a myth in the
present day competitive world. Brand image no longer works a magic with the consumer.
So to hold the customer to the brand and attract new consumers the company must come
up with strategies that is efficient and competent along with its marketing activities that
help in market visibility.

After analyzing the response of the respondent through questionnaire and observation the
following were found in the study.

1) Majority of the customers visit Forum to watch movies, visit Landmark,

McDonald’s, Transit and Westside.
2) Most of the respondents felt that there is a need for space to keep their
luggage.
3) Most of the respondents are influenced to come to the malls due to friends,
relatives and word of mouth.
4) Some respondents felt that Forum should go for advertisements.
5) Some of the respondents (Corporate Clients) felt that the price paid to
Forum for their promotional activities is not satisfactory.
6) Some of the respondents (Retail Showrooms at the Mall) felt that the rent
paid to Forum is not satisfactory.
7) It is found that Forum Mall has the largest parking space (3, 00,000 sq.ft)
when compared to other Malls in Bangalore city.
8) Quality service and product is the motto that Forum inculcates to all its
stores.

62
 SUGGESTIONS

No product or a service can completely satisfy the customers. Satisfaction is the state of
mind of each and every customer which is termed as a black box for any organization or
for a manufacturer, it is also highly an impossible task. Therefore suggestions must be
given on the basis of research work. A few important suggestions regarding The Forum
Mall are the following.

1) The mall must have a suggestion box for the staff & all the suggestions must be
reviewed & the best of them must be rewarded.
2) The customers must be provided with a space for keeping their luggage.
3) The Mall must have coin box (telephone) that works at all levels.
4) For the appraisal of the staff, the management should implement some points
system, where in who ever gets more points should be awarded once in six
months.
5) Motivational activities should be conducted for the staff.
6) Experts should be invited for guest lectures to the employees to update their skills
and knowledge.
7) The brands which are not performing well in the Mall should be removed and
replaced with other brands for better performance.
8) Identifying the staff with executive talents for developing them to occupy
managerial positions.
9) Frequent organizing of carnivals, sponsoring events should be arranged, so that
customer foot falls will be more.
10) They could promote art and cultural activities which could help conserving the
heritage and it could attract customers

63
 CONCLUSION

A careful study has been done to understand the behavior of customers through
questionnaires, observation and through proper guidance of respective faculties.

The study which lasted for one month has provided information to understand the
buying behavior, and what are the factors which influence buying in the malls is
studied in order to apply various activities for promotion in order to bring the crowds.
Thus the project leads with all the details of origin of malls and their developments in
future is given brief.

The study is restricted to the four malls namely Forum, Sigma, Eva, Garuda, and the
facts clearly show that people go with intense as well as impulse behavior. It also
determines that opinion leaders play an important role while they have to be attracted
most because they influence buying.

The foremost point to understand the customer was through customer care, which
helps to know what customers want, and what type they are.
The features at Forum are exceptional from other Malls and attract the potential
customers.
The study shows the satisfaction levels who visit to malls and what sort of future it
has, as a retail industry

64
 BIBLIOGRAPHY

TEXTBOOKS REFERRED

RETAIL MARKETING - MALCOLM SULLIVAN & DENNIS ADCOCK

RETAIL MARKETING - GIBSON G VEDMANI

PRINCIPLES OF MARKETING - PHILIP KOTLER

MAGAZINES
BUSINESS TODAY
BUSINESS WORLD
BUSINESS STANDARD

NEWSPAPER REFERRED
ECONOMICS TIMES
HINDU BUSINESS LINE
THE TIMES OF INDIA
BUSINESS STANDARD

WEB SITE REFERRED

www.theforumexperience.com
www.prestigeconstructions.com
www.retailworld.com
www.indiainfoline.com
www.businessworldindia.com

65
 ANNEXURE

QUESTIONNAIRE

Dear customer,
.
I M CALVIN VARGHESE final year MBA student of the Kristu Jayanti College of
Management and Technology doing a project work on “Competitive advantage in retail
industry-A study on Forum Mall” for my academic purpose. I request you to kindly fill
this questionnaire.

Thanking you,

Sincerely yours,

1. Name:-

2. Age:- 18-25 25-40 40-55 >55

3. Sex Male Female

4. Occupation:-
Business Professional Employee

Student Others

5. Are you a frequent visitor to malls?

Yes No

6. How often do you go to the malls?

66
 Once a week Twice a week Thrice a week

7. Why do you go to malls?

Movies Shopping Food court All

8. Which mall do you prefer to go to the most?

Forum Sigma Eva Garuda

9. What do you look for most while shopping in a mall?

Ambience Stores Proximity Food courts

10. Are you aware of the Forum Shopping Festival that was held last year?

Yes No

11. Which Mall offers you the right mix of brand outlets?

Forum Sigma Eva Garuda

12. Please rate the malls on the following.

FORUM MALL
Parameters Excellant Very Good Good Poor Very Poor
Location
Layout
Entertainment
Hygiene
Parking

EVA MALL
Parameters Excellant Very Good Good Poor Very Poor

67
Location
Layout
Entertainment
Hygiene
Parking

SIGMA MALL
Parameters Excellant Very Good Good Poor Very Poor
Location
Layout
Entertainment
Hygiene
Parking

GARUDA MALL
Parameters Excellant Very Good Good Poor Very Poor
Location
Layout
Entertainment
Hygiene
Parking

Thank you for devoting your time I am truly grateful.

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