Beruflich Dokumente
Kultur Dokumente
On
Submitted To: -
Submitted By:-
Controller of Examination
Vivek Gupta
M.D. University,
Semester-4th
Rohtak
PREFACE
ACKNOWLEDGEMENT
I wish to express my sincere esteemed thanks to our institution, which provided me this most
awaited opportunity of undergoing training in the corporate world.
Along with the institution I also want to express my gratitude to my faculty members who
help me with their immense knowledge and their experience.
Last but not least I want to express my immense heartly thanks to all the personalities who
have been instrumental in making this project on MARKETING STRATEGIES OF BIG
BAZAR & VISHAL MEGA MART possible and successful.
INDEX
CONTENT
PAGE NO.
CHAPTER-1
Introduction of the Project
CHAPTER-2
Objective, Scope & Limitations of the Study
29
CHAPTER-3
Research Methodology
37
CHAPTER-4
Data collection & Analysis
42
CHAPTER-5
Findings of the study
66
CHAPTER-6
Conclusion
71
Suggestion
72
Appendix
Bibliography
73
Questionnaire
76
Introduction of
the Project
The size of retail industry in an economy depends on many factors and the level of consumer
spending is the most important among these factors. The retail sector in India has grown by
leaps and bounds in the last five years. The reason behind this growth has been the synergy of
many propellants. However the growth is not always genuine as there are exaggerations as
well. But these exaggerations also have benefits since they given a feel of growing
competition all around. Secondly the present situation is just a depiction of nascent stage. The
future of the trajectory may not be as steep as it is now or may be even slope downward.
'What will be the future size of the retail industry' is the mind boggling question. Another
moot point that will gain importance in due time concerns the future of the unorganized retail
market which constitute a significant proportion of the whole industry. The retail stores have
proved to be a vantage point for the customers. This implies that the small farmers who used
to sell their product in the sabji-mandis and on roadsides are going to lose a significant
market share as they can't employ the two profit maximizers-economies of scale and
economies of scope.
7
Retail
Sector's
India
USA
China
Brazil
in GDP (in %)
10
10
8
6
share
As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is
a sunrise industry in India and the prospect for growth is simply huge. There are many factors
that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of
them can be listed as follows:
Rise in the purchasing power of Indians- the rise in the per capita income in the last
few years has been magnificent. This has led to the generation of insatiable wants of
the upper and middle class. The demand of new as well as second hand durables has
risen throughout the country thus providing the incentive for taking up retailing.
Favorable to farmers- retailing has helped in removing the middlemen and has thus
enhanced the remuneration to farmers. This is a new revolution in the agricultural
sector in India and will go a long way in amending the condition of agriculture, a
major concern among policy makers.
Use of credit- a typical Indian is most conversant with using credit cards than carrying
money. These have led to a shift of the consumer base towards supermarkets and
make the payments in the form of credit.
Comfortable Atmosphere- a visit to a retail store appears to be more soothing for the
generation-Y. People and kids prefer to shop in an air conditioned a tech savvy
manner.
The retail industry is the second largest employer in India. It currently employs about
7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent
statement salaries ought not to be legislated is a welcome move as most of the
organized retail is in private hands. However only about 4.6% of the total retail trade
is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major
and minor players desperately need to work hard in this direction so that next time the
figures look more decent. The government must also make an attempt to ameliorate
the situation as political instability and infrastructure namely power and roads are the
major roadblocks in the path of smooth functioning of the market.
specializing in clothes gradually came down. The organized retail sector in Japan couldn't
perform at its full efficiency because of collapse of the 'bubble economy' in the early 90s.
The distribution sector bridges the gap between the producer and consumer and thus forms a
crucial link. Distribution of retail in India has multiple dimensions. Its uniformity is difficult
to decide and easy to argue. Distribution in any sector is usually measured by the reach of its
products to people. But in case of the retail sector in India it also implies the dispersion
among the organized and unorganized spheres. The question of distribution hovers mainly
around the intentions of private players to reach out to the less rich people. But the point that
has caught the public eye recently is the ambiguous mood of the beneficiaries and the
chauvinist government that produces civil service.
the credit card and mortgage market has been growing by more than 30%.
We present the results from another survey below in order to strengthen our findings.
Number
of
stores
India
Japan
USA
The above table reinforces our view that India has done a great job in retailing. One
noteworthy point here is that Japan in spite of being one of the most densely populated
countries has fared poorly than India. But this euphoria loses its charm if we compare the
percentage of organized retail in the total value generated by the retailing sector.
According to international standards, a
retail store is nominated as organized only
when it features more than 10 employees.
The above chart clearly portrays the
miserable condition of India's organized
retail A forecast of 40% annual growth in
the organized retail sector seems sound.
The number of shopping malls in India
has grown from 1 in 2001 to 100 in 2005
but still more effort is needed to turn the
predictions into reality.
Studies have further showed that non-urban areas account for only about 15% of organized
retailing So it is high time that the retail industries pay importance to diversification and
reach out to non-urban markets. If they remain confined to the metropolis then they will soon
hit a ceiling and will be able to grow no more. But at the same time they must realize that the
rustic people are sceptic about the urbane lifestyle habits. The mega retail players will have to
drop their policy of full extraction of consumer surplus and will have to employ the local
11
people to overcome the myth that entry of a branded retail will displace the millions of
traders, shopkeepers and hawkers. Protests must be welcomed and meetings encouraged
making
life
saner.
Retail markets in Germany, South Africa and many other countries allow 100% foreign
investment in retail. This has helped in setting up of cash and in creating wholesale markets.
However, in India, only 51% FDI is allowed in single-brand retail and that too with prior
approval. In case of multi-brand retail, FDI is completely prohibited. This is a perfect
beginning but foreign investment should be gradually liberalized to modernize farming and
help farmers scale up. Moreover, restricting FDI for protecting mom-and-pop stores seems
unjustifiable since Tata, Reliance and Bharti have already made a foray in the sector.
However, according to the survey conducted by KPMG for Federation of Indian Chamber of
Commerce and Industry (FICCI), among these, the food and grocery is expected to witness
the fastest growth followed by clothing as the second-fastest growing segment.
Marketing Strategies
13
Strategies based on market dominance - In this scheme, firms are classified based on
their market share or dominance of an industry. Typically there are four types of
market dominance strategies:
Leader
Challenger
Follower
Nicher
Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength
refers to the firms sustainable competitive advantage. The generic strategy
framework (porter 1984) comprises two alternatives each with two alternative scopes.
These are Differentiation and low-cost leadership each with a dimension of Focusbroad or narrow.
o
Product differentiation
14
Market segmentation
Innovation strategies - This deals with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
Pioneers
Close followers
Late followers
Growth strategies - In this scheme we ask the question, How should the firm grow?.
There are a number of different ways of answering that question, but the most
common gives four answers:
o
Horizontal integration
Vertical integration
Diversification
Intensification
15
The retail sector in India can be divided into two major categories:
1) Organized
2) Unorganized
16
RELIANCE RETAIL LTD has launched its much-awaited hypermarket format (which also
Reliance Fresh and the consumer electronics concept mega store Reliance Digital, the
hypermarket is the third retail format launched by Reliance Retail.
Spread across 165,000 square feet of shopping area, Reliance Mart will provide the shoppers
a never-before-experienced shopping delight. The hypermarket will carry a range of over
95,000 products catering to the entire family. Shoppers will have the option to choose from a
wide array of products in every category ranging from fresh produce, food & grocery, home
care products, apparel and accessories, non-food FMCG products, consumer durables and IT,
automotive accessories, lifestyle products, footwear and much more.
Commenting on the launch, Shri. Mukesh Ambani, Chairman and Managing Director,
Reliance Industries Ltd, said: Organized retail has the potential to trigger socio-economic
transformation on an unprecedented scale in our country and will bring about enormous spinoff benefits to the Indian economy and its various constituents.
The launch of Reliance Mart is yet another step by Reliance Retail towards providing
international shopping experience to all our customers at unmatched affordability, guaranteed
quality and choice of products and services. Reliance Mart marks the achievement of another
milestone in our effort to unleash a retail revolution in India. Shri Ambani added.
Reliance Mart offers some unique services to the shoppers like tailoring, shoe repair, watch
repair, a photo shop, gift services and laundry services, all within the store. The store also
houses its own fresh bakery, serving hot, off-the-oven bread and bread products throughout
the day and local savouries, an ice-cream train for the kids, a chakki, ready-made batter and
loose tea and pickle for the housewives.
Sparsh in Mens and Womens Formal / Casual and Ethnic wear, DNM- X in the jeans
category for men and women, Panda for kids clothing and Grip in the luggage section.
The footwear category will carry Zig in formal wear. Hi Attitude for semi -formal,
Tosco for party wear and Monza for the sports enthusiast. There are many products that
will be exclusively available in Reliance Mart stores only.
Reliance Mart, with 61 check-out counters has for the first time in India introduced the
Mobile POS system for faster check outs. This is aimed at reducing customer wait-time. The
store planning, atmospherics and layout has been designed specifically to provide a
complete solution to the customer. Reliance Mart will remain open from 10:00 a.m. to
10:00 p.m., seven days a week. The store has over 400 highly skilled and trained customer
sales representatives. Reliance Mart will continue to offer all its customers Reliance One, a
common membership and loyalty program across all its formats, which follows the
philosophy of Earn Anywhere, Spend Anywhere. Reliance Mart will also provide easy and
attractive finance options, including 0% financing for your purchases on select products.
Reliance Retail plans to have a pan-India presence by opening over 30 Reliance Mart
hypermarkets this year and over 500 by the end of 2010.
Services Offered
It offers some unique services to the shoppers like tailoring, shoe repair, watch repair, a photo
shop, gifting services and laundry services all within the store under one roof and also it has
its own bakery shop.
Big Bazar will also provide easy and attractive finance options, including zero per cent
financing for the purchases on select products. Big Bazar will continue to offer all its
customers Reliance One, a common membership and loyalty programme across all its
formats, which follows the philosophy of 'Earn Anywhere, Spend Anywhere'.
19
Future Plans
The next two hypermarkets are to be opened in Jamnagar in Gujarat and in the NCR by next
month with plans to open 30 such marts by the year. Raghu Pillai, President and CEO
(operations and strategy), Reliance Industries Limited (RIL) said the company is planning to
set up 500 hypermarkets across 784 towns by 2010.
Strategy
The hypermarket would be selling the products on EDLP (every day low price) basis at prices
15-20 percent lower than market prices.
In order to grow faster and better in local markets with higher margins, it has focused largely
on local brands instead of national brands or private labels. Local brands include Induben
Khakrawalas Namkeens, Lijjat Papad, Wagh Bakri and Madhur (spices brand). This is
in addition to 100 private labels that Reliance plans to display. Companys Sources says that
the share of regional brands in the hyper marts would be over 10%.
Strengths
Keeping local brands at the outlets is more profitable and also makes the supply chain more
efficient. Being a bulk purchaser, Big Bazar can offer products at very low prices. Also taking
into consideration the local brands, the products at the outlets would be easily acceptable by
the customers. And there would be comparatively less efforts needed by the marketer to
explain the product to the consumers.
Weaknesses
In some cases, few regional brands strongly liked by the consumers offer lower margins than
that offered by the national brands. It has to face a tough competition by big shopping malls
i.e. Big Bazaar, Spencer Hyper, Vishal Mega Mart and the upcoming Wall Mart.
20
Zeppelin :
Mens Shirts & Trousers
Kitaan Studio : Mens Shirts & Trousers
Fizzy Babe :
Jasmine :
Paranoia :
Soil :
Chlorine :
Mens Shirts
Massa Bay :
Mens Shirts
Mens Trousers &
Bermudas
Product
Vishal Mega Mart offers a wide range of products which starts from apparels to food items,
footwear to home furnishing, crockery to sport items, child care products to toys, watches,
drinks etc. There are many in house brands promoted by Vishal Mega Mart. In pursuance of
their business plan to diversify their portfolio of offerings, FMCG products play a key role.
Price
Vishal Mega Mart promises its consumers the lowest available price. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega
21
Mart also caters on Special Event Pricing (Close to Diwali, Christmas, New Year etc.).
Selling combo-packs and offering discount to customers. The combo-packs add value to
customer. Through Bundling, they also reduced the price of the products. In addition to
VRPLs strategy to continue procurement of goods from small and medium size vendors and
manufacturers which leads to cost efficiencies, VRPL intend to procure FMCG and apparels
from low-cost production centers located outside India. Towards this objective, VRPLs
propose to increase their procurement of finished and semi-finished goods from China and
thereby realize economies of scale and pass on the benefits so accrued to their customers.
Place
Vishal Mega Mart stores are located in 110 cities with more than 180 outlets. Vishal Mega
Mart has presence in almost all the major Indian cities. They are aggressive on their
expansion plans. VRPL intend to increase their penetration in the country by setting up new
stores in cities where they already have presence, as also entering into new areas in the
country. In particular, they intend to focus on expansion in Tier II and Tier III cities. VRPL
target locations with good infrastructural facilities such as easy accessibility, provision for
water, electricity, parking, security and other basic amenities.
Promotion
Advertising has played a crucial role in building of the brand. Vishal Mega Mart
advertisements are mainly seen in print media i.e. newspapers, Television with Tina Parekh as
there in advertisement, and sometime road-side bill-boards. VRPLs category management
system is used to plan promotional schemes. They launch promotional schemes weekly. Apart
from general sales promotion, the category manager formulates promotional plans for slow
movers. In addition, to promote sales, they focus on layout of the stores and positioning,
presentation and display of merchandise, in order to appeal to the customer. In addition,
VRPL have introduced, in association with SBI Cards & Payment Services Private Limited, a
co-branded credit card. VRPLs propose to continuously undertake such initiatives to increase
the satisfaction of their customers. Some of the features of the co-branded card include Rs
250 discount voucher on signing up for the card and a process by which the cardholder earns
five reward points on every Rs 100 spent. A cardholder accumulates points on the basis of
22
purchases made and the points accumulated can be redeemed for gifts or purchases. In
September 2005, VRPL entered into a long term advertising agreement with Bennett,
Coleman & Company Limited (BCCL). Under the agreement, they are entitled to fixed
discounts for their advertisement in print publications of BCCL for a period of five years
from the date of the agreement. As a part consideration, VRPL had issued 1,670,605 Equity
Shares of Rs. 10 each and 384,190 Preference Shares of Rs. 146 each amounting to an
aggregate of Rs. 300 million.
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.
24
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 Delhis Rajouri Garden by the name of Vishal Mega
Mart (The jewel in Vishal Groups 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
25
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.
The Group also has a plan to raise around Rs 200 crore through preferential issue in the next
few months to fund the companys 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.700 crores in 2008-09 as opposed to a turnover of Rs 550
Crore for 2007- 2008. 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
Product Categories
- HOME FURNISHING
Drawing Room
Door Mat
Carpet
Curtains
Kitchen
Apron
Kitchen Napkin
Bedroom
Bed Sheet
Pillows
Pillow Cover
Bathroom
Bath Mats
Towel Gift Sets
27
FOOTWEAR
BOYS
Shoes
Sandals
LADIES
Shoes
Slippers
GIRLS
Slippers
Sandals
MENS
Shoes
Slippers
MENS
Upper
Shirt Casual
Shirt Formal
Ethnic & Sports
Night Suits
T-Shirts
Dupatta
Sherwani
Lower
Jeans(MP)
Cotton Trouser(MPC)
Winter Wear
Suit(WMC)
Blazer(WMB)
Windcheater(WMW)
Jacket
LADIES ACCESSORIES
Upper
Kurta
Skirt Top
Ethnic
Nighty
Lancha
Sharara
Salwar Suit
Lower
Pants Jeans
Capri
Winter Wear
Jackets
Stawl
Blazer
Track Suit
INFANTS
Garments
Hot Pant
Frock
Baba Suit
Accessories
Bed Sheet
Under Garments
Socks
WOMEN
Sarees
Fancy(SRF)
Synthetics
Banarsi
Jewellery
Necklace
Ring
Personal Items
Cap(LCA)
Socks(Las)
Cosmetics
LIp Gloss
Nail Polish
KIDS BOYS
Lower
Jeans
Bermudas
Sets
Night Suit
Baba Suit
Winter Wear
Suit
Blazer
28
Dungries
Upper
Shirt Formal
T-Shirt
Jacket
Ethnic
Kurta- Pyjama
Sherwani
KIDS GIRLS
Lower
Hot Pant
Skirt
Dungries
Upper
Tops(GWT)
Frock(GFK)
Sets
Night Suit
Capri Set
Winter Wear
Hipster Set
Blazer
Jacket
Ethnic
Sharara
Lancha
HOUSEHOLD
Dinner Set
Home Aids
Floor Wiper
Sanitary Brush
General Plastic Goods
Coffee Mug
Bucket
Glass Ware
Cup
L$emon Set
Jug
Pressure Cooker
Cooker
Pressure Pan
Electrical App.
Chopper
Microwave Oven
Thermo Ware
Tiffin
Container
Cake Server
Non Stick
Handi
Dosa Tawa
Bone China
Soup Set
Dessert Set
Porcelain
Cup & Saucer
Time Zone
Ladies Wrist Watch
Mens Wrist Watch
Mens Accessories
Opticals
Ladies Sun Glass
Mens Sun Glass
Electric & Electronics
Belts
Wallets
Items
Battery(ABT)
Calculator(EEC)
Spray
Deo
LIFESTYLE
Dolls
Musical Toys
Non-Musical
Board Games
Wooden Blocks
Puzzles
Barbie Doll
Other Dolls
Infant Toys
Teether
Swing
Cycles
Scooters
Video Games
T.V. Video Game
Hand Video Game
29
FOOD MART
FOOD & BEVERAGES
Snacks
Drinks
30
OBJECTIVE
Objectives of Study
1.
2.
3.
4.
To Study the promotional strategies of BIG BAZAR & VISHAL MEGA MART.
To study the challenges and future prospects of BIG BAZAR & VISHAL MEGA MART.
To study the different Brand offerings by BIG BAZAR & VISHAL MEGA MART.
To study the distribution strategies of BIG BAZAR & VISHAL MEGA MART.
31
Scope
32
Scope of study
This project gave us great exposure to the customers perception to the marketing strategies
adopted by the Big Bazar & Vishal mega mart because it includes the service offered by
them. The study also identifies the attitudes and preference of the consumers. The study also
focused on Media through which the product reaches the consumers This project helped us in
knowing the market practically.
33
34
LIMITATION OF THE
STUDY
LIMITATION
Although it would have been nice to conduct a perfect research study, but this study is
conducted under certain limitations, which were faced while doing this research. So it is
highly recommended to consider these limitations while going through the project study.
These limitations are as follows
1. LIMITATION OF DATA
35
The statistical data regarding the city was not available to us on secondary source of
data and to generate such data on the primary source was a task, which cannot be
achieved in such a short time.
2. LIMITATION OF TIME
The limitation of time was another constraint in the study as the study had to be
conducted in few months therefore many aspects have been left unexplored.
Research period is not just much enough to know fully about the strategies &
consumers perception
3. INHIBITIONS OF THE RESPONDENTS
The respondents did not reply the question with precision as they were busy with their
own work or they were not interested in taking part in such a research. Employees
sometimes feel hesitated while telling about their view about their marketing
strategies.
4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED AREA
The research has been conducted for the Vishal mega mart(sec-31.fbd) & reliance
mart(Crown Interiors Mall, Faridabad) but not all their retail outlet have been covered
therefore it has been mentioned that the research has been conducted in a limited area.
These limitations were very common and yet we came across these with a positive note and
the subsequent chapters in this report shall explain the rationality behind the structural
compilation.
36
37
RESEARCH
METHODOLOGY
Research Methodology
Research Methodology is a way to systematically solve the research problem. When we talk
to research methodology we not only talk of research methods but also consider the logic
38
behind the method we use in the context of our research results are capable of being
evaluated either by researcher himself or by other.
The purpose of this section is to describe the methodology carried out to complete the work.
The methodology plays a dominant role in any research work. The effectiveness of any
research work depends upon the correctness and effectiveness of the research methodology.
This section deals with research design used, data collection, methods used and sampling
methods used.
Research design
A research design specifies the methods and procedures for conducting a particular research.
According to Ker linger Research design is a plan, structure and strategy of investigation
conceived so as to obtain answers to research questions and have to control variance.
My research design
I have chosen descriptive research design for my study because I am interested in knowing
the marketing strategies adopted by Big Bazar & Vishal mega mart
To accomplish the predefined objectives of the research, descriptive research design is used
to collect the require information from the sources. Its a fact finding approach generalizing a
cross sectional study of the present situation.
39
Sampling method
Specific sampling method was used to collect the data from the respondents because sample
size is large. Customers & employees of Big Bazar & Vishal mega mart were selected for the
survey.
Sampling unit
The data was collected from the Customers & employees by questionnaire and observation
method in the Big Bazar (Crown Interiors Mall) & Vishal mega mart (sec-31.faridabad)
Sample size
The data were collected from:
50 customers
50 employees
Data collection:
There are two major methods of data collection:
Primary data
Secondary data
Primary data collection is used when there is need for collecting first hand data. In such
cases, no adequate and usable data is available to the researcher.
Secondary data collection is used where adequate and usable data is available to researcher.
Primary data collection by one person may become secondary data for another.
In my research study I have used both primary as well as secondary data collection method.
For primary data observation method is used, and for secondary data the sources used are
books, journals, magazines and Internet.
Data analysis
40
All the recommendations in this project have been suggested keeping in mind the thorough
analysis of all the steps in recruitment process.
Data collection methods
The method used for the survey process is through questionnaire.
41
Data Collection
And
Analysis
42
CRM policy of Big Bazar can be divided into four major parts, namely;
1) Customer loyalty
2) Customer retention
3) Customer communication
4) Customer gratification
There exists a blanket customer relationship programme called the reliance one membership
programme for the purpose of maintaining customer loyalty. The membership programme is a
very simple one where a willing customer is required to fill a form giving personal
information and he gets a temporary card which will be made permanent after six months.
On each purchase of rs. 100 the customer gets one redeemable point on the production of
card at billing counter. The collected points can be redeemed in form of discounts on future
purchases on demand of the customer.
The customers also get the opportunity of availing four different kinds of insurance on the
payment of a nominal fee. For example a customer can get an accidental death insurance of rs
six lacs on the payment of rs. 400 only.
Other forms of insurances are disability, hospitalization and home insurances.
The members of reliance one get the opportunity of taking part and winning prizes by the
way of lucky draws on regular intervals.
Customer retention policy implementation is at the zonal level. Generally each state is
regarded as a zone and the offers and discounts in a zone are not available in other zones.
Such policy helps reliance retail to understand and capture the local markets better.
The products which show improvement due to offers and discounts on them are repeated with
these offers again so as to retain the sales of the customers who bought it the last time.
Also such the days best offers are constantly announced in the store making the regular
customers aware about them.
Maintaining a good store ambiance is also a part of customer retention policy of reliance
retail. Clean and hygienic environment with properly and well spaced products along with a
uniform color theme attracts the existing customers to the store again and again.
A fast billing system and good and easy grievance handling system which can be accessed
thru customer service desk and company website, ensures that customers feel satisfied with
the store management. Less harassment to customers means better customer retention.
43
Communication to existing customers takes the form of sms and e-mails, generally sent to
reliance one members. They get information about ongoing offers and also information and
latest news about their nearest stores and the company in general.
Another source of customer database is the information collected during the organizing of
special events in the stores. Customers participating in such events provide their contact
information which are also used in form of database for communication purposes.
Thank you and festive cards on special occasions are an innovative way of communicating
with the customers.
Trained salespersons make customer gratification very easy. A simple thank you with a smile
goes a long way for the store to keep the customers happy.
The special events organized by the stores across india are also a way to gratify the customers
by allowing them to play and win prizes.
Gift vouchers and discount coupons are an attraction for the customers and give them the feel
that the store cares about them and their money.
Local customers many a times make limited personal contacts with the store staff just like
that made at a kirana store and help the store to some extent to maintain a relationship with
the customers.
The implementation of the policies brings out certain limitations in them. Few major ones are
as follows
The personal contact numbers of reliance one members are open to tele marketing calls from
various marketers as they leak out of the reliance retails database, causing unnecessary
harassment to customers.
The customer communication policy is less followed in small towns and cities and is more
concentrated towards the metro cities.
There is a common crm policy for both reliance fresh and mart. This should not be the case as
both the stores offer different kinds of merchandize and generally attract different kinds of
customers.
Reliance retail generally delays the processing of permanent membership cards to those
customers who have not paid for such a card. Customers have been waiting for over three
months for their card. Those who have paid the nominal fee of rs. 50 get their permanent card
44
within 15 days but the rest who have optioned not to pay the fees do not receive the card until
too late.
Unmanned billing counters create long queues at the open counters. This creates impatiens in
the customers as they expect faster billing at the stores and do not want to stand with too
much of goods held in their hands while billing.
45
o Periodic Surveys: Its done on quarterly, its an overall survey done by the
future group authorities and CRM is a part of it.
o Customer Loss Rate :
o Mystery Shoppers: They pose as normal customers perform specific tasks
such as purchasing a product, asking questions, registering complaints or
behaving in a certain way and then provide detailed reports or
feedback about their experiences
o Monitor Competitive Performance
Complaint Handling Procedures:
46
Responding -- The response is made clear and appropriate. The customer must
understand the response, and the response must address the issues raised in the
customer's original complaint.
SWOT ANALYSIS
48
Strength:
49
Weakness:
Unable to meet store opening target so far
Falling revenue per square feet
Opportunity:
Organized retail is just 4.15%of total pie of Indian retail market
Evolving Customer preferences in recent years.
Threat:
Competitors, global big players planning to foray into market
Government policies are not well-defined in India
Unorganized retail market of India
RELIANCE MART
50
Strengths:
High quality,
latest in-style products,
international shopping experience
value for money pricing
loyal following
Own brand of merchandise, which is both trendy and individualistic.
new introductions every week
variety of designs and styles
exciting mix with a range extending from stylized clothes, footwear and accessories
for men, women and children to well-co-coordinated table linens, artefacts, home
Weakness:
OPPORTUNITIES:
51
They also have the opportunity to consider more overseas supplier which will actually
give them cost advantage, rather than suppliers available on a local level.
They also have the opportunity to maximize the use of available technology to
improve their functioning and to gain competitive advantage.
Threats:
If the unorganized retailers are put together, they are parallel to a large supermarket
with no or little overheads, high degree of flexibility in merchandise, display, prices
and turnover.
Shopping Culture: Shopping culture has not developed in India as yet. Even now
malls are just a place to hang around with family and friends and largely confined to
Window-shopping.
Competition from future group and various other retail stores which are growing
rapidly.
INDIAN CONSUMERISM
52
The lifestyle and profile of the Indian consumer is going through a rapid transformation. The
population of India is young, energetic and full of enthusiasm. 50% of the Indian
population is under the age of 25. There has been a transition from price consideration to
quality and design, as the focus of the customer has changed. The upper and middleclass population of today needs a feel good experience even if they have to spend a little
more for that. People are moving towards luxury and want to experiment with fashion
and technology. There is an increasing need of better apparels, cars, mobile phones and
consumer durables.
The food & grocery, clothing, consumer durables and books & music sectors are the major
retail sectors. However, unorganized small outlets largely control the sector. Hence there is
53
tremendous potential for the organized sector in various formats, such as hypermarkets,
supermarkets, specialty stores, category killers and discount chains.
ANALYSIS
54
Reliance mart
Vishal mega mart
Any other
The observation shows that 44 % of people out of 100 person surveyed prefer to go to Vishal
mega mart and only 38 % & 18% prefer to go Big Bazar & any other retail outlet
respectively.
Once in a month
Twice in a month
Thrice in a month
The observation shows that 42 % of people out of 100 person surveyed visits retail stores
once in a month and only 38 % & 20% visits the retail stores twice & thrice in a month
respectively.
0-2500 Rupees
2500-7500 Rupees
7500-12500 Rupees
Over 12500 Rupees
56
The observation shows that 52 % of people out of 100 people surveyed spend Rs 2500-7500
on shopping in a month. There are only 5% people who spend more then 12500 on shopping
out of 100 people surveyed.
57
The observation shows that 49 % of people out of 100 people surveyed spend 1-2 hours in
shopping mart and 30 % people spend -1 hour on shopping at retail store. There are only 9
% people who spend more than 2 hours at shopping mart.
Alone
With 1 person
2-4 people
More than 4 people
58
The observation shows that 51 % of people out of 100 people surveyed goes along with 2-4
person for shopping & there are only 4 % people who goes for shopping along with more
than four persons...
Q6) Please rate the following, according to your personal choice, for both Big Bazar & Vishal
mega mart.
59
Questions
Reliance mart
Accessories
Household
Lifestyle
Questions
Reliance mart
60
Accessories
Household
Lifestyle
Questions
Reliance mart
61
Behaviour
Manners
1
2
Helpfulness
Service
Questions
Reliance mart
62
Promotional offers
Variety of products
Questions
Reliance mart
Billing Problems
1
2
3
63
Heavy Rush
2
Personnels lack of
knowledge
Questions
Reliance mart
Products
1
2
3
64
People
Ambience
1
2
65
Findings
Findings
1. The choice of a store location has a profound effect on the entire business life of a
retail operation. A bad choice may all but guarantee failure, a good choice, and
success.
2. Choosing a retail location is, at best, a risky undertaking. Considering the
66
68
Conclusion
&
Suggestions
Conclusion
Given the developments and prospects, the Indian retail sector is in its nascent stage of
evolution. While there are obstacles, there are clear opportunities in modern retailing in India.
There are many lessons that India can take from other countries, which have moved along the
path of retail evolution. The retail sector has proved to be of immense significant from
macro-economic point of view. The sectors capability to give strong growth momentum by
69
creating multiplier effects on other sectors is not in dispute. It is now necessary to cautiously
expand and develop the sector, as the government, at present, has done by permitting partial
FDI in the sector. Given the scope, the retail sector is certainly expected to fetch the longterm economic benefits for the country.
The convenience and personalized service offered by the unorganized sector holds its future
in good stead for the future. Organized retail of late has seen a tremendous boom and is
attracting more people to the malls.
What is to be seen is how organized retail can duplicate the same level of personalized
customer service levels offered by the unorganized sector to have a higher conversion ratio.
The target audience for both the organized and unorganized retail formats remains relatively
the same. When shopping in malls, people value the experience related to the trip the most
and return most frequently for the same. Besides, while enjoying the experience they seem to
buy high ticket and items of conspicuous consumption most frequently.
Gaining and maintaining consumer preference is a battle that is never really won.
Continued and consistent branding initiatives that reinforce the consumers purchase decision
will, over time, land the product in consumer preference sets. Attaining and sustaining
preference is an important step on the road to gaining brand loyalty
Suggestions
1. Include more trained sales person to help customers in the store while shopping.
2. Improve quality of the products especially clothes.
3. Play good songs or soothing music in the store rather than cheap filmy songs.
4. Customer care service can be introduced
5. More branded products can be displayed in the store as people still prefer branded
70
71
Bibliography
BIBILIOGRAPHY
Books referred:
72
Retailing Management
Pradhan, Swapna
Websites:
www.google.com
www.wikipedia.com
www.vishalmegamart.com
www.reliancemart.com
www.indianretailindustry.com
73
QUESTIONNAIRE
QUESTIONNAIRE
Dear Sir/Madam,
74
Name:
Age:
Profession:
Sex:
Q1) What Retail chain do you usually go to?
Reliance mart
Vishal mega mart
Any other
Once in a month
Twice in a month
Thrice in a month
0-2500 Rupees
2500-7500 Rupees
7500-12500 Rupees
Over 12500 Rupees
Alone
75
With 1 person
2-4 people
More than 4 people
Q6) Please rate the following, according to your personal choice, for both Big Bazar & Vishal
mega mart.
Questions
Reliance mart
Accessories
Household
Lifestyle
Questions
Reliance mart
Accessories
Household
1
2
76
Lifestyle
Questions
Reliance mart
Behaviour
Manners
Helpfulness
Service
Questions
Reliance mart
Promotional offers
Variety of products
1
2
77
Questions
Reliance mart
Billing Problems
Heavy Rush
1
2
Personnels lack of
knowledge
Questions
Reliance mart
Products
1
2
78
People
Ambience
1
2
79