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Research Project Report On

Marketing Strategies of Vishal Mega mart

SUBMITTE TO PU!E U!IVERSIT" In Partial Fulfillment of Requirements For the Award of Requirement of Masters of B#siness $%ministration B" &$UR$V T"$&I MMM' II Roll !o(' )* PRO+E,T &UI E M$!IS-$ .$! E $,$ EMI, "E$R )/0/')/0) SI!-&$ I!STITUTE O1 BUSI!ESS $ MI!ISTR$TIO! 2 RESE$R,3O! -4$5 PU!E' 67

PRE1$,E
A man can become perfect with a perfect knowledge and experience. As a student of business management, we ha e studied man! theories in the classroom but an! professional degree is incomplete without practical knowledge of concerned field. And the same case is with management studies, management is incomplete without knowing practical application of theories studied. I ha e experienced and understood the practical importance of these theories on this training. "ore books and theoretical knowledge can#t help !ou in an! field whether it is management or technical. $nl! thing can help !ou is practical knowledge. %his de elopment da! pro ides a golden opportunit! to the students for getting a perfect knowledge and experience. I come to know how the management of compan! is actuall! being done. &ow decisions are made' &ow people beha e and decide what to purchase' As a part of m! learning in management field and requirement of """ program, I ha e been gi en an opportunit! to grab practical knowledge in the area of marketing and I had selected VIS-$. ME&$M$RT8 I ha e made m! best efforts to get knowledge and experience. (uring the da!, I had collected necessar! information, and I present all the necessar! information to understand well.

$,3!O4.E EME!TS %he pro*ect work is pursued as a part of """ curriculum at Pune +ni ersit! Pune. I would greatl! re*oice to express emphaticall! with profound sense of gratitude and highest eneration, m! sincere thanks to Pro,"anisha -ande for gi ing me guidance for this Pro*ect. %he pro*ect is undertaken as training at .ishal "ega,"art. %he pro*ect is done under expert super ision and guidance of Mr8 $shish 3#mar 9/tore "anager, .ishal "ega,"art0. I am thankful for him. I am short of words to express m! respect 1 honor to m! parents and famil! members 1 friend who showered their blessings, affection, encouragement, 1 inspiration, without which this report would not ha e been finali2e. I also express m! sincere thanks to m! friends who helped me differentl! in the completion of m! work. -ast but not least, I also thank all those people whom I met at .ishal "ega,"art during m! internship and helped me to accomplish m! assignments in the most efficient and effecti e manner.

E,.$R$TIO! I,4A+RA. %5A4I, hereb! declare that the pro*ect report on M$R3ETI!& STR$TE&IES O1 VIS-$. ME&$ M$RT is a result of m! own work and m! indebtedness to other work publications, if an!, ha e been dul! acknowledged.

Place6 Pune (ate6 )17897)818

/ignature 4A+RA. %5A4I

E:E,UTIVE SUMM$R" ;A comparati e stud! of effecti eness of different promotional strategies <schemes0 with reference to ishal mega mart= All this information has collected regarding the pro*ect through primar! and secondar! data. %his report highlights on the understanding the marketing strategies of ishal mega mart and their effect on sales of the products. From the questionnaire 1 the data collected from net 1 other resources and find market potential of big ba2aar. %he limitation of this thesis is sample si2e. %he sample si2e for this thesis is onl! 188 respondents. %he methodolog! adopted b! me for this thesis is to conduct a sur e!. I ha e prepared questionnaire for the sur e!. %he ob*ecti e of this thesis is understood marketing strategies of ishal mega mart and its effect on the sales of its ser ices and products. %he finding of the thesis is that customer is interested in products and ser ices gi en b! .ishal "ega "art 1 gi e different t!pe of promotional acti it! for the effecti e market potential.

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,O!TE!TS
S8!O8 08 )8 <8 68 *8 ,O!TE!TS Preface $ckno;le%gement eclaration E=ec#ti>e S#mmar? ,hapter 08 Intro%#ction Introduction of Indian Retail Industr! $b*ecti e of the /tud! -imitations of the /tud! /cope of the /tud! ,hapter )8 Research Meatho%olog? ,ompan? Profile Vision Marketing Strateg? ,hapter<8 8 ata collections an% $nal?sis S;ot $nal?sis B#estionare ,hapter68 1in%ings Findings P$&E !O8 ) < 6 * 7 0) 0<'06 0* 0@')/ )0 )* <A 6*'6A 6* 6A @/ @/'@)

,hapter *8 ,oncl#sion an% S#ggestion ?onclusion /uggection

@< @6 @*

,hapter @8 BiCliograph?

,hapter('08 I!TRO U,TIO!

Intro%#ction of In%ian Retail In%#stries( In the background of high consumerism and income of the urban consumers, in recent !ear there are a number of companies ha e expressed their interest towards retail sector outlets. As a result A

numbers of shopping malls ha e started their operations in metro and urban areas. Pantaloon, big ba2aar, .ishal "ega "art, Reliance Fresh are the best known examples of retail sector outlets in India. Retailing is the interface between the producer and the indi idual consumer bu!ing for personal consumption. %his excludes direct interface between the manufacturer and institutional bu!ers such as the go ernment and other bulk customers. A retailer is one who stocks the producer#s goods and is in ol ed in the act of selling it to the indi idual consumer, at a margin of profit. As such, retailing is the last link that connects the indi idual consumer with the manufacturing and distribution chain. /ome of the ke! features of retailing include6 /elling directl! to customers with out ha ing an! intermediaries /elling in smaller units 7 quantities, breaking the bulk Present in neighborhood or in the location which is quite con enient to the customers. .er! high in numbers Recogni2ed b! their ser ice le els Fitting an! si2e and or location

It is assumed that due to the entr! of a number of retail outlets in the urban and semi urban areas, the mindset of the existing customers ha e undergone drastic changes. Besides it is also reported that the traditional retailing such an age old 4rocer! shops ha e directl! faced competition with the organi2ed retailing sector. In some parts of the countr!, it is reported that the traditional retails are resisting the entr! of organi2ed shopping malls. For instance the traditional retails of Bhubaneswar with the acti e support of the consumers at large didn#t allow reliance Fresh to start outlet initiall!. RE,E!T TRE! S Retailing in India is witnessing a huge re amping exercise as can be seen in the graph India is rated the fifth most attracti e emerging retail market6 a potential goldmine. Cstimated to be +/D )88 billion, of which organi2ed retailing <i.e. modern trade0 makes up 3 percent or +/D @.: billion As per a report b! EP"4 the annual growth of department stores is estimated at ):F Ranked second in a 4lobal Retail (e elopment Index of 38 de eloping countries drawn up b! A% Eearne!.

Retailing in In%ia( the present scenario %he present alue of the Indian retail market is estimated b! the India Retail Report to be around Rs. 1),88,888 crore<D)A8 billion0 and the annual growth rate is >.A percent. Retail G

market for food and grocer! with a worth of Rs. A, :3,988 crore is the largest of the different t!pes of retail industries present in India. Furthermore around 1> million retail outlets help India win the crown of ha ing the highest retail outlet densit! in the world. %he contribution of retail sector to 4(P has been manifested below6 ,o#ntr? Retail SectorDs share in & P 9in EF In%ia 0/ +/A 18 ?hina G Bra2il @ As can be clearl! seen, retailing in India is superior to those of its contenders. Retail sector is a sunrise industr! in India and the prospect for growth is simpl! huge. %here are man! factors that ha e stimulated the rise of the shopping centers and multiplex,malls in a *iff!. /ome of them can be listed as follows6

Rise in the p#rchasing po;er of In%ians' %he rise in the per capita income in the last few !ears has been magnificent. %his has led to the generation of insatiable wants of the upper and middle class. %he demand of new as well as

second hand durables has risen throughout the countr! thus pro iding the incenti e for taking up retailing. 1a>oraCle to farmers, retailing has helped in remo ing the middlemen and has thus enhanced the remuneration to farmers. %his is a new re olution in the agricultural sector in India and will go a long wa! in amending the condition of agriculture, a ma*or concern among polic! makers. Use of cre%it, a t!pical Indian is most con ersant with using credit cards than carr!ing mone!. %hese ha e led to a shift of the consumer base towards supermarkets and make the pa!ments in the form of credit. ,omfortaCle $tmosphere' a isit to a retail store appears to be more soothing for the generation,5. People and kids prefer to shop in an air conditioned a tech sa ! manner. %he retail industr! is the second largest emplo!er in India. It currentl! emplo!s about A percent of the total labor force in India. Finance "inister P. ?hidambaramHs recent statement ;salaries ought not to be legislated= is a welcome mo e as most of the organi2ed retail is in pri ate hands. &owe er onl! about :.@F of the total retail trade is in organi2ed sector. It generates about Rs.>>, 888 crore <D1).: billion0. %he ma*or and minor pla!ers desperatel! need to work hard in this direction so that next time the figures look more decent. %he go ernment must also make an attempt to ameliorate the situation as political instabilit! and infrastructure namel! power and roads are the ma*or roadblocks in the path of smooth functioning of the market.

,omponents of Retail Sector %he ma*or components of the retail sector are6 18

Food and 4rocer!, Fast "o ing ?onsumer 4oods <F"?4s0, ?onsumer (urables, Apparel, Footwear and leather, Iatches, Jeweller!, and &ealth and Beaut! %he anatom! of the retail market has shown that the clothing and textiles constitutes 39 per cent of the organised retail pie, followed b! food and grocer!, which accounts for 11 percent of the total retail market.

&owe er, according to the sur e! conducted b! EP"4 for Federation of Indian ?hamber of ?ommerce and Industr! <FI??I0, among these, the food and grocer! is expected to witness the fastest growth followed b! clothing as the second,fastest growing segment.

OCjecti>es of the st#%?

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To #n%erstan% the %ifferent marketing strategies Ceing follo;e% C? Vishal Mega Mart8 To learn their marketing mi=8

"arketing help to define the business for the customerHs interests, not !our own. It is the process of learning what customers want or need and determining how to satisf! those wants or needs. It is also used to confirm whether the customer reacted to a marketing program as expected. %he benefits of market research include6 -earning who !our customers are and what the! want. -earning how to reach !our customers and how frequentl! !ou should tr! to communicate with them. -earning which ad ertising appeals are most effecti e and which ones get no response. -earning the relati e success of different marketing strategies, thus impro ing return on in estment. -earning how not to repeat !our mistakes.

.IMIT$TIO! O1 T-E STU "


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Although it would ha e been nice to conduct a perfect research stud!, but this stud! is conducted under certain limitations, which were faced while doing this research. /o it is highl! recommended to consider these limitations while going through the pro*ect stud!. %hese limitations are as follows 08 .IMIT$TIO! O1 $T$ %he statistical data regarding the cit! was not a ailable to us on secondar! source of data and to generate such data on the primar! source was a task, which cannot be achie ed in such a short time. )8 .IMIT$TIO! O1 TIME %he limitation of time was another constraint in the stud! as the stud! had to be conducted in few months therefore man! aspects ha e been left unexplored. Research period is not *ust much enough to know full! about the strategies 1 consumers perception <8 I!-IBITIO!S O1 T-E RESPO! E!TS %he respondents did not repl! the question with precision as the! were bus! with their own work or the! were not interested in taking part in such a research. Cmplo!ees sometimes feel hesitated while telling about their iew about their marketing strategies. 68 RESE$R,- -$S BEE! ,O! U,TE I! $ .IMITE $RE$ %he research has been conducted for the .ishal mega mart</hastri Kagar 4arh Road,"eerut0 but not all their retail outlet ha e been co ered therefore it has been mentioned that the research has been conducted in a limited area. *8 T-E S$MP.E SIGE IS SM$.. %he sample si2e taken for this thesis is smallL it ma! not actuall! represent the population. %he data collected were totall! depending on the respondent#s whole iews,

perception, beha ior, ps!cholog! related to particular scheme which could base in nature

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%hese limitations were er! common and !et we came across these with a positi e note and the subsequent chapters in this report shall explain the rationalit! behind the structural compilation.

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Scope of st#%?
%his pro*ect ga e me great exposure to the customer#s perception to the marketing strategies adopted b! the .ishal mega mart because it includes the ser ice offered b! them. %he stud! also identifies the attitudes and preference of the consumers. %he stud! also focused on "edia through which the product reaches the consumers %his pro*ect helped me in knowing the market practicall!.

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RESE$R,- MET-O O.O&"


efinition of Research %he word research is deri ed from the -atin word meaning to know. It is a s!stematic and a replicable process, which identifies and defines problems, within specified boundaries. It emplo!s well,designed method to collect the data and anal!ses the results. It disseminates the findings to contribute to generali2e able knowledge. %he characteristics of research presented below will be examined in greater details later are6 /!stematic problem sol ing which identifies ariables and tests relationships between them, ?ollecting, organi2ing and e aluating data. -ogical, so procedures can be duplicated or understood b! others Cmpirical, so decisions are based on data collected Reducti e, so it in estigates a small sample which can be generali2ed to a larger population Replicable, so others ma! test the findings b! repeating it. (isco ering new facts or erif! and test old facts. (e eloping new scientific tools, concepts and theories, this would facilitate to take decision. For the proper anal!sis of data simple statistical techniques such as percentage were use. It helps in making more generali2ation from the data a ailable. %he data which was collected from a sample of population was assumed to be representing entire population was interest. (emographic factors like age, income and educational background was used for the classification purpose.

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)80 Research esign( It was important to collect detailed information on arious aspects for effecti e anal!sis. Research design can be of three forms6

escripti>e Research( It is conducted to ascertain certain magnitudes and to pro ide an accurate snapshot of some aspect of the market en ironment. For example6 (etermining the si2e of the market, market share, a ailabilit! of distributors, sales anal!sis, studies of consumer attitude etc.

E=plorator? Research6 %his is used when one is seeking insight into the general nature of a problem, the possible decision alternati es, and rele ant ariables that need to be considered. -ittle prior knowledge is required. Research methods are highl! flexible, unstructured and qualitati e. For example6 Ihat new product should be de eloped, what should be the positioning of our product, etc.

,a#sal Research6 ?ausal studies are designed to determine whether one or more ariables cause or determine the alue of other ariables. It is an e idence of relationships of ariables. For example6 Ihether decrease in price will lead to an increase in the sales of a product, or whether the presence of a sales person will help in increasing the sales in a retail outlet, etc.

%hese three t!pes can be iewed as cumulati e. %he research design adopted for pro*ect research is ,a#sal Research8 $nce the researcher has decided the MResearch (esign#, the next *ob is of data collection. For data to be useful, our obser ation needs to be organi2ed so that we can get some patterns and come to logical conclusions.

(epending upon the sources utili2ed, whether the data has come from actual obser ations or from records that are kept for normal purposes, statistical data can be classified into two categories6 ).) Primar! (ata ).3 /econdar! (ata 1A

)8) Primar? ata( It is one, which is collected b! the in estigator himself for the purpose of specific inquir! or stud!. /uch data is original in character and is generated b! sur e!s conducted b! indi iduals or research institutions. It can be obtained b!6 ?ommunication $bser ation Nuestionnaire

)8< Secon%ar? ata( Ihen an in estigator uses the data, which has alread! been collected b! others such data is called secondar! data. %his data is primar! for the agenc! that collects it and becomes secondar! data for someone else who uses this data for his own purpose. It can be obtained b!6 ?ompan!#s web Journals Reports Kewspapers 4o ernment Publications Publication of professional and research organi2ation.

%he research methodolog! in ol es the following ma*or steps namel!, ).3.1 (efining data source ).3.) Research approach

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)8<80 efining %ata so#rce( In the pro*ect, both primar! and secondar! data were used for the research process. /econdar! data are data that were collected for another purpose and alread! exist somewhere. In this pro*ect the secondar! data are collected from internet, newspapers and text materials. %his constitutes the chief material on the basis of which research work is carried out. Primar! data are data freshl! gathered for specific purpose or specific pro*ect purpose. It is obtained b! stud! specificall! designed to fulfill the data of the problem in hand. Primar! data are original in character. Primar! data was collected in two wa!s6 , $bser ation research and sur e!s. )8<8) Research $pproach( In the pro*ect primar! data was collected through obser ation research, sur e!s and secondar! data from internet, books and text materials. In obser ation research, fresh data was collected b! obser ing the rele ant parameter of research. Basicall! secondar! data was used for e aluating the performance of stock market. )86 Sample esign( For carr!ing out an! research or stud! on an! sub*ect it is er! difficult to co er e en 18F of the total population. %herefore the sample si2e has to be decided for a meaningful conclusion. For designing the sample si2e, it was thought proper to co er a er! small percentage of population in arious age groups. %he method used for sample technique was non probabilit! con enience sampling method. %his method is used because it is known pre iousl! as to whether a particular person will be asked to fill the questionnaire. ?on enient sampling is used because onl! those people will be asked to fill the questionnaires that were easil! accessible and a ailable to the researcher. ?onsidering the constraints, it was decided to conduct the stud! based on sample si2e of )88 people in specific age groups. /cientific method is not adopted in this stud! because of financial constraints and also because of lack of timeL also the basic aim of doing the research is academic, hence most con enient wa! is selected )8680 Sample SiHe( 19

I conducted approximatel! )88 samples during m! research. )868) Sampling Metho%( I used random sampling method for m! research. Ihere, I ha e selected the persons randoml! for research work. )8* Metho% of %ata collection( %he next step is together the requisite data. %here are two t!pes of data collection method O primar! data and secondar! data )8*80 Instr#ment for %ata collection( I ha e used the questionnaire method in sample sur e!. If one wishes to find what people think or know, the logical procedure is to ask them. %his has lead marketing researchers to use the questionnaire technique for collecting data more than an! other method. In this method questionnaire were distributed to the respondents and the! were asked to answer the questions in the questionnaire. %he questionnaires were structured non,disguised questionnaire because the questions, which the questionnaire contained, were arranged in a specific order besides e er! question asked was logical for the stud!L no question can be termed as irrele ant. %he questionnaire, were non,disguised because the questionnaire were constructed so that the ob*ecti e is clear to the respondent. %he respondents were aware of the ob*ecti e. %he! knew wh! the! asked to fill the questionnaire. )8A ata'anal?sis techniI#es( %he stud! conducted is a conclusi e descripti e statistical stud!L the researcher comes to the decision which is precise and rational. %he stud! is conclusi e because after doing the stud! the researcher comes to a conclusion regarding the position of the brand in the minds of respondents of different firms groups. %he stud! is statistical because throughout the stud! all the similar samples are selected and group together. All the similar responses are taken together as one and their percentages are calculated. )8

%hus, this, conclusi e descripti e statistical stud! is the best stud! for this purpose as it pro ides the necessar! information which is utili2e to arri e at a concrete decision.

,OMP$!" PRO1I.E ;Future is thinking be!ond hori2on= 1 in order to keep its pace with the modern retail, .ishal Retail -imited is spreading its wings. Instead of resting on its laurels the 4roup are bus! identif!ing new a enues of growth b! enturing in other formats like cash 1 carr!, con enios as well as specialt! stores and inspiring local retailers to grow along with the big names. %he group has tied up with &P?- to open corner stores at their petrol pumps and in addition to the abo e .ishal has come up with an institute to train manpower for the ser ice industr!. As of (ecember 1, )818, it operates 1A) retail stores, including two stores which are operated b! their franchisees. %hese 1A) stores are spread o er about ):,88,888square feet and are located in ): states across India. In its efforts to strengthen thier suppl! chain, it has set up se en regional distributions centres and an apparel manufacturing plant. %oda! .ishal Retail -imited, Flagship ?ompan! of .ishal 4roup, engaged in &!per "arket stores with an a erage area of )>,888 to 38,888 sq. ft. According to "r. Ram ?handra Agarwal, ?"(, .ishal Retail -imited, the group owes its origin to a small >8 sq ft shop in EolkataHs -al Ba2aar that started selling read!made garments. In tune with the pulse of the market, he en isioned a mega store that would sell garments at prices none other could match. . %he first big store opened in ?alcuttaHs Csplanade area in 199A, under the banner of .ishal 4arments. &e was in ol ed in all the aspects of the business6 right from sourcing the garments to interacting with customers. And this led to his greatest finding ;%he .ishal 4roup.= After identif!ing the immense market in fashion garment for the masses, &e mo ed to (elhi in )881 and opened his first store in (elhi#s Ra*ouri 4arden b! the name of .ishal "ega "art <%he *ewel in .ishal 4roup#s crown0 and then there was no looking back for "r. Ram ?handra Agarwal. At present, in addition to garments, .ishal "ega "art stores retail the entire range of household products, F"?4 and electronic goods. .ishalHs prices are roughl! 1> to )8 per cent less than other mass market garment labels. "r. Ram ?handra Agarwal, ?"(, .ishal Retail -imited belie es that the shopping habits of Indians are changing due to their growing disposable income, higher aspirations, relati e increase in the !ounger population, and the change in attitudes towards shopping. %he emphasis has changed from price consideration to design, qualit! and trend!. Age is also a ma*or factor that affects the spending decisions of an indi idual. ?onsumer spending is an important factor that affects the economic growth and de elopment in a countr!. As a trend, consumer is more educated. &e has access to all reforms taking place through arious arra!s of communication. &e is becoming a ; alue shopper= e er!da!. )1

Eeeping this in mind, the group is now looking for franchisees to *oin hands with .ishal and grow under common banner. %his partnership will help small retailers to sur i e the onslaught of organi2ed retail as it will enhance their competiti eness. /mall stores can a ail of the benefits on account of the economies of scale, a ke! ad antage for big retailers. As per the plans, .ishal Retail will completel! take o er the suppl! chain of its franchisees and pro ide them with technolog!, new practices, isual merchandising skill and special promotional schemes, besides its brand and customer base. Some of the 1ranchisee e=cl#si>e C#siness categories are( "ens Fashion -adies and Eids Footwear %o!s and 4ames &ome O 4eneral ?on enience <F"?40 ?(I% Iatches "obile

It follows the concept of alue retail in India. In other words, their business approach is to sell qualit! goods at reasonable prices b! either manufacturing themself or directl! procuring from manufacturers <primaril! from small and medium si2e endors and manufacturers0. It endea our to facilitate one,stop,shop con enience for their customers and to cater to the needs of the entire famil!. It belie es this concept has helped them grow to thier current si2e within a short time frame of their !ears. "r. Ram ?handra Agarwal has been ranked as the )Gth most pitiful person in the Indian retail industr!. In order to reduce costs and take ad antage of economies of scale it has embarked on backward integration of their products. %hier apparel manufacturing plant is located at 4urgaon, &ar!ana. For ensuring efficienc! in suppl! chain, it has set up se en regional distribution centres located around Eolkata, %hane <"aharashtra0, Jaipur <Ra*asthan0, 4ha2iabad <+ttar Pradesh0, -udhiana <Pun*ab0, 4urgaon <&ar!ana0 and (elhi. Further, it has focussed on de eloping a cost and time efficient distribution and logistics network, which currentl! comprises se en distribution centers and a fleet of trucks for transportation. ;Retailing is an engine for taking merchandise to the end,users. %here is a lot of opportunit! in this sector for us since demand of the potential consumers are not being met under the existing facilities. %herein lies the road to success.= sa!s "r. R ? Agarwal

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Boar% of irectors(

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Mr8 Ram ,han%ra $gar;al5 ,hairman 2 Managing irector &e holds a bachelor#s degree in commerce from /t. Pa ier#s ?ollege,Eolkata. "r. Agarwal has more than )8 !ears of experience in the retail industr! and has been with .RP- since their inception in 199A.

Mrs8 Uma $gar;al, E=ec#ti>e irector /he holds a bachelor#s degree in arts. "rs. Agarwal has more than A !ears of experience in the retail industr!. /he has been associated with accounts department of .RP-. Mr8 S#ren%ra 3#mar $gar;al, E=ec#ti>e irector . . &e holds a bachelor#s degree in commerce. "r. Agarwal has more than 1A !ears of experience in the retail industr!. &e has been associated with store de elopment and management at arious locations of .RP-.

Mr8 Bharat +ain5 In%epen%ent irector &e holds bachelor#s degree in commerce. "r. Jain is engaged in the business of leather garments and accessories and has more than )3 !ears of work experience. "r. Jain *oined .RP- Board on "a! G, )88@. Mr8 Rakesh $ggar;al5 In%epen%ent irector &e holds a master#s degree in commerce. "r. Aggarwal is currentl! engaged in roto,moulding industr! has more than )8 !ears of work experience. "r. Aggarwal *oined .RP- Board on $ctober 31, )88@.

OUR PROMOTERS $! &ROUP ,OMP$!IES O#r Promoters %he following indi iduals are the Promoters of our ?ompan!6 a0. "r. Ram ?handra AgarwalL b0. "rs. +ma AgarwalL and c0. "r. /urendra Eumar Agarwal. ):

%he following companies are the Promoters of our ?ompan!6 a0. +nicon "arketing Pri ate -imitedL b0. Ricon ?ommodities Pri ate -imitedL and c0. .ishal Iater Iorld Pri ate -imited. In addition, the following &+Fs are the Promoters of our ?ompan!6 a0. "r. Ram ?handra Agarwal <&+F0VISIO! ST$TEM$!T( Ie share the ision and belief that our customers and stakeholders shall be ser ed onl! b! creating and executing future scenarios in the consumption space leading to economic de elopment !ame of Sharehol%ers 2 !#mCer ofof Shares Efamilies, of sharehol%ing Because of increasing number nuclear working women, greater work pressure and greater commuting con enience has :9.>3 become a priorit! for Indian customers. %he! want 1. +nicon "arketing Pritime, ate -imited 31>,888 ). ?ommodities ate for -imited e Ricon er thing under onePri roof eas!388,888 access :A.1A and multiplicit! of choice. %he growth and 3. "r. Ram ?handra Agarwal 1),818 1.G9 de"rs. elopment of organi2ed retailing :. +ma Agarwal 9,818 1.:) is dri en b! two main factors O lower prices and benefits the Total 0//8// e market place with potential customer can#t resist. India is rapidl! in ol ing @<@5/)/ into a competiti target consumers in the niche middle class segments. %he market trend indicates tremendous growth opportunities.

MISSIO! ST$TEME!T( Ie shall deli er C er!thing, e er!where, e er!time for e er! Indian ?onsumer in the most profitable manner. VRP.Js BUSI!ESS(' .RP- started as a retailer of read!,made apparels in Eolkata in )881. In )883, .RP- acquired the manufacturing facilities from .ishal Fashions Pri ate -imited and "7s .ishal Apparels. /ubsequentl!, with e olution of retail industr! in India and change in consumer aspirations, .RP- di ersified their portfolio of offerings to include other retail goods. ?urrentl!, .RP- sell read!,made apparels and a wide range of household merchandise and other consumer goods such as footwear, to!s, watches, toiletries, grocer! items, sports items, crocker!, home furnishing, be erages, drinks, gift and no elties. .RP- follow the concept of alue retail in India. In other words, .RP-#s business approach is to sell qualit! goods at reasonable prices b! either manufacturing themsel es or directl! procuring from manufacturers <primaril! from small and medium si2e endors and manufacturers0. .RPendea or to facilitate one,stop,shop con enience for their customers and to cater to the needs of the entire famil!. .RP- belie e this concept has helped them grow to their current si2e within a )>

short time frame of 18 !ears. In order to reduce costs and take ad antage of economies of scale .RP- ha e embarked on backward integration of their products. .RP-#s apparel manufacturing plant is located at 4urgaon, &ar!ana. For ensuring efficienc! in suppl! chain, .RP- ha e set up se en regional distribution centers located around Eolkata <Iest Bengal0, %hane <"aharashtra0, Jaipur <Ra*asthan0, 4ha2iabad <+ttar Pradesh0, -udhiana <Pun*ab0, 4urgaon <&ar!ana0 and (elhi. Further, .RP- ha e focused on de eloping a cost and time efficient distribution and logistics network, which currentl! comprises se en distribution centers and a fleet of trucks for transportation. VRPL Business Processes:.RP-#s business process can be summari2ed as below6 EstaClishment of Stores( Selection of location In selecting location for a new store, .RP- start b! identif!ing the cit!7town. .RP- target primaril! cities7towns which ma! be classified as %ier II or %ier III cities. In this regard, an anal!sis of the demograph!, literac! le els, nature of occupation and income le els. Iithin a cit!7town, .RP- target locations with good infrastructural facilities such as eas! accessibilit!, pro ision for water, electricit!, parking, securit! and other basic amenities. .RP- prefer to locate their stores in areas where real estate is a ailable at reasonable prices. %he efforts of .RP-#s retail business are targeted towards families ha ing total income which can be classified under the ;lower middle= and ;middle= income groups. Accordingl!, .RP- plan their strateg! to search for areas within cities where such customers are domiciled in large numbers and make efforts to locate themsel es within the reach of such customers. .RP- belie e that adoption of standard formats for their stores has led to their brand establishment and identification among their customers and will increase their base of lo!al customers. In pursuance of this, the! ha e adopted standard parameters for store planning and establishment. For ensuring standardi2ed formats of their stores, .RP- consider arious factors, such as internal and external dQcor and colour schemes, allocation of store space, stock mix and pricing and accounting methods. )@

Insurance .RP- maintain comprehensi e insurance co erage with %ata AI4, Ba*a* Allian2, Ro!al /undaram and IFF?$,%$EI$ for their existing stores, distribution centers, manufacturing facilities and trucks. .RP- insurance policies include comprehensi e co erage for electronic equipment, fire and special perils and burglar!. Further, .RP- has filed a claim of Rs. )).>8 million on account of fire in their store at "eerut as on Jul! A, )88@. In this regard, the! ha e recei ed Rs. A.>8 million as an interim pa!ment. Factories .RP-#s existing manufacturing facilities are located at Plot Ko. )):, Phase 1 +d!og .ihar, 4urgaon, for which the! ha e leasehold interest until "a! :, )889. In addition, .RP- ha e recentl! acquired freehold interest in relation to a land admeasuring A.): acres in (ehradun, +ttaranchal, where the! are exploring the possibilities for establishment of another manufacturing facilit!. Other Properties .RP- ha e recentl! acquired freehold interest in relation to a land admeasuring G),G38 square feet in &ubli, (harwad. Merchan%ise Planning .RP-#s merchandise planning is based on the concept of categor! management rather than traditional brand management practices.

)A

$pparels an% !on $pparels


+nder categor! management for, sa!, apparels, .RP- create and cater to products across length and breadth of a categor! at different price points, fabrics, designs, shapes, seasons, colors and si2es. .RP- formulate annual merchandising plan for each di ision of merchandise taking into consideration factors such as past sales data, regional customer tastes and preferences, number of stores <established and proposed0, likel! fashion and trends, in,house production resources, endor management and price. Cach di ision is further di ided into ma*or categories <for instance, men#s apparel as a di ision is further di ided into three ma*or categories, namel!, upper, lowers and sports and ethnic wear0. %hese ma*or categories are in turn segregated into arious subcategories. For example, men#s upper as a ma*or categor! would be further di ided into se eral sub,categories such as formal shirts, casual shirts, part! wear etc. Cach sub,categor! consists of pre,defined /E+s, which are classified on the basis of price point, brand, st!le, pattern and si2e. .RP- draw annual sales pro*ections for different /E+s and, accordingl!, ascertain their sourcing requirements. Based on such information and lead time estimates for supplies, purchase orders with deli er! schedules are issued. %he in entor! position for each /E+ is re iewed fortnightl! taking into account the actual sales and ariations from the budgeted plans. Regular isits to the stores are made b! the categor! merchandising team to identif! the slow,mo ing, /E+s and explore the options to expeditiousl! dispose of them. For certain non apparel categories, their merchandise planning and scheduling also depends on introduction of new products and schemes b! the endors. For instance, if a branded home appliance manufacturer replaces a product with a new ersion, then their planning for the product would need to be re iewed based on the acceptabilit! of the new ersion. In-house Manufacturing .RP- benefit from backward integration and in,house manufacturing of part of the apparel products sold in their stores. %hrough their manufacturing capabilities, .RP- is able to attain relati e independence from intermediaries with a competiti e ad antage in terms of alue and cost. .RP- use their manufacturing strengths to focus on enhancing product knowledge and their experiences from manufacturing enable them to negotiate better terms from the endors and *ob )G

workers. .RP- currentl! ha e an apparels manufacturing plant at 4urgaon, &ar!ana. %he manufacturing plant is well,equipped with full! automatic machines for fusing, buttoning, embroider! and welt pocket,making operations. %he factor! has a capacit! to manufacture >,888 pieces per da!. %he plant was commissioned in )88: and achie ed a capacit! utili2ation of G8F. It has :>8 machines and is operated b! >88 workers. Further, .RP- are exploring the possibilities for establishment of another manufacturing facilit!, for the purposes of which the! ha e acquired certain portions of land admeasuring A.): acres in (ehradun, +ttaranchal. In addition to in,house manufacturing, the! ha e outsourced some parts of the manufacturing to ;*ob workers= who work in their factor! premises. .RP- undertake qualit! control measures b! wa! of random sampling to ensure the pre,determined qualit! standards are met. %o erif! that the quantit! of supplies is as per the order, the! undertake count,check for e er! receipt of the goods. .RP-#s manufacturing team works closel! with their design team to understand trends, de elop products, alue engineer and finall! create season wise collection that cater to regional tastes. Purchasing Purchasing or endor management assumes critical importance in retail business where one has to deal with multiple products. .RP- ha e in place a endor management s!stem, under which the! identif! endors all o er the countr! and o erseas and seek to de elop alliances and arrangements with them. %he! regularl! interact with the endors and share information such that the endors remain familiar with their goals and targets. It has been their strateg! to procure goods from small and medium si2ed endors and manufacturers, which the! belie e has led to reduction in the cost of goods the! sell and increase in their profitabilit!. +pon ascertaining the procurements needs based on each /E+, .RP- explore the arious options for sourcing the products. %he! continuousl! stri e to procure goods from the place of origin to reduce the costs and control the qualit!. For identif!ing the endors, .RP- assess the arious possible options on factors such as capacit!, credibilit! in the market, qualit! awareness and experience. After identif!ing the endors for the goods, .RP- place purchase orders based on their /E+, wise plan, estimated lead time of each endor and quantit! to be procured from each endor. )9

.RP- follow a polic! of Mpa!ment on deli er!# to negotiate better prices with the endors and in certain cases the! also release pa!ments in ad ance. %o ensure qualit! of supplies, .RP- check qualit! b! wa! of random sampling at the time of receipt of the goods. %o erif! that the quantit! of supplies is as ordered, the! undertake count,check for e er! receipt of the goods. For F"?4 products, .RP- procure from large as well as small and medium si2e manufacturers. For procurement from the large manufacturers or their distributors, the! endea or to enter into formal arrangements for suppl! of products to all .RP- stores, such that the! are able to deri e fixed margins from sales of such products, irrespecti e of the locations. +nder these agreements, the! benefit from special discretionar! discounts and offers directl! from the manufacturers or their distributors.

38

VIS-$. $pparels Bran%

.ishal "ega "art is one of India#s fastest growing retail chains.. %he chain currentl! has 0A) compan! stores in )6 states 7 118 cities in India. %he .ishal brand is known for great modern st!le for men, women and children. .ishal offers high le el fashion st!ling. /ince 19G@, our name has been s!non!mous with qualit!, alue and fashion integrit!. Ie offer an unparalleled collection of clothes for the entire famil!. Cach garment is hand selected for qualit! and contemporar! st!ling. .ishal manufactures ma*orit! of its own garments and out sources some under its direct qualit! super ision. %his enables us to offer the lowest possible and most reasonable prices. $ur goal is to pro ide a range of fashion wear to suit e er! pocket. $ur product mix represents the most current fashion trends in tops, bottoms, formals and accessories for men, women and kids. $ur courteous staff will ensure that consumers get a perfect fit.

Popular Brands are6 Reppelin 6 Eitaan /tudio 6 Blues 1 Ehakis 6 Paranoia 6 ?hlorine 6 Fume 6 "ens /hirts 1 %rousers "ens /hirts 1 %rousers "ens %rousers "ens /hirts 1 %,/hirts "ens /hirts "ens /hirts, +nder4arments. Fi22! Babe 6 Jasmine 6 Rero (egree 6 /oil 6 "assa Ba! 6 %,/hirts, -adies 1 Eids 4irls -adies 1 Eids 4irls Eids Bo!s "ens /hirts "ens %rousers Bermudas

$pparel Man#fact#re %he basic raw materials required for the manufacturing process of apparels includes fabrics and accessories. .RP- merchandising teams source fabrics from local manufacturers in India depending upon their production plan. .RP- also source fabrics from the place of origin. .RPsource arious other components and accessories from endors in arious parts of the countr! and also import them from ?hina. 31

Inventory Management, Distri ution !et"or# an$ Logistics .RP-#s distribution network and logistics encompasses all acti ities to ensure that goods are dispatched in right quantities and at right time to reach stores with sufficient time in hand to promptl! cater to customer demands and optimi2ation of in entor! position. %he! ha e built a s!stem to monitor the in entor! position on a real,time basis at each store, under which a stock requisition or deli er! order is generated when pre,determined stock or re, order le els are reached. %he re,order le els for stores are determined based on factors such as displa! le els, lead time for replenishment and a erage dail! sales. .RP- re iew these re,order le els on continuous basis to factor in ariances in demand based on seasons, trends and promotional schemes. .RP- ha e se en distribution centers o er approximatel! 3G>,833 square feet. %hese distribution centers are located around Eolkata <Iest Bengal0, %hane <"aharashtra0, Jaipur <Ra*asthan0, 4ha2iabad <+ttar Pradesh0, -udhiana <Pun*ab0, 4urgaon <&ar!ana0 and "ahipalpur <Kew (elhi0. .RP- ha e clearl! demarcated the stores which will be ser iced b! each distribution centre. %he reorder le els for distribution centers are ascertained on the basis of factors like a erage dail! sales of all the stores ser ices, lead time for replenishment and buffer stock, which caters to both the existing and proposed stores to be fed. As for the stores, the! regularl! re iew these re,order le els. .RP-#s distribution centers and stores are connected through compan!,wide irtual network connection through broadband which helps to efficientl! manage their network of stores and distribution centers throughout the countr!. %he! primaril! utilise their own ehicles to transport the in entor! to their stores from the distribution centers. In addition, .RP- use the ser ices of logistic solution pro iders including low cost transport ser ice pro iders in order to deli er products on time to .RP- stores and optimi2e transportation costs. (istribution centers operations ha e been streamlined through the standardisation of racking s!stem, la!outs and implementation of automatic replenishment s!stem. +nder arrangements with some of their merchandise manufacturers, the! recei e pa!ment on account of displa! of their products.

3)

Pro$uct %ategories

' -OME 1UR!IS-I!& ra;ing Room (oor "at ?arpet ?urtains 3itchen Apron Eitchen Kapkin 1OOT4E$R BO"S /hoes /andals .$ IES /hoes /lippers ME!S Upper /hirt ?asual /hirt Formal Ethnic 2 Sports Kight /uits %,/hirts (upatta /herwani .o;er Jeans<"P0 ?otton %rouser<"P?0 4inter 4ear /uit<I"?0 Bla2er<I"B0 Iindcheater<I"I0 Jacket &IR.S /lippers /andals ME!S /hoes /lippers Be%room Bed /heet Pillows Pillow ?o er Bathroom Bath "ats %owel 4ift /ets

.$ IES $,,ESSORIES Upper Eurta /kirt %op Ethnic Kight! -ancha /harara /alwar /uit .o;er Pants Jeans ?apri 4inter 4ear Jackets /tawl Bla2er %rack /uit 33

I!1$!TS &arments &ot Pant Frock Baba /uit 4OME! Sarees Fanc!</RF0 /!nthetics Banarsi +e;eller? Kecklace Ring 3I S BO"S .o;er Jeans Bermudas (ungries Upper /hirt Formal %,/hirt 3I S &IR.S .o;er &ot Pant /kirt (ungries Upper %ops<4I%0 Frock<4FE0 Sets Kight /uit ?apri /et Ethnic /harara -ancha 4inter 4ear &ipster /et Bla2er Jacket Sets Kight /uit Baba /uit Ethnic Eurta, P!*ama /herwani 4inter 4ear /uit Bla2er Jacket Personal Items ?ap<-?A0 /ocks<-as0 ,osmetics -Ip 4loss Kail Polish $ccessories Bed /heet +nder 4arments /ocks

-OUSE-O. (inner /et -ome $i%s Floor Iiper /anitar! Brush &eneral Plastic &oo%s ?offee "ug Bucket &lass 4are ?up Jug Press#re ,ooker ?ooker Pressure Pan Electrical $pp8 ?hopper "icrowa e $ en Thermo 4are %iffin ?ake /er er !on Stick &andi (osa %awa Bone ,hina /oup /et (essert /et Porcelain ?up 1 /aucer 3:

-Demon /et .I1EST".E Time Gone -adies Irist Iatch "ens Irist Iatch Mens $ccessories Belts Iallets

?ontainer Opticals &ifts 2 !o>elties -adies /un 4lass Flower .ase "ens /un 4lass Ee! ?hain Electric 2 ElectronicsPerf#meK eo Items Batter!<AB%0 ?alculator<CC?0 /pra! (eo

TO"S 2 &$MES Soft To?s "usical %o!s Kon,"usical Boar% &ames Iooden Blocks Pu22les olls Barbie (oll $ther (olls Infant To?s %eether /wing ,?cles 2 Scooters ?!cles /cooters Vi%eo &ames %... .ideo 4ame &and .ideo 4ame

1OO M$RT 1OO 2 BEVER$&ES /nacks (rinks

M $ R 3 E T I ! & $ ! $ ." S I S S U M M $ R"

"arketing help to define the business for the customerHs interests, not !our own. It is the process of learning what customers want or need and determining how to satisf! those wants or needs. It is also used to confirm whether the customer reacted to a marketing program as expected. %he 3>

benefits of market research include6 -earning who !our customers are and what the! want. -earning how to reach !our customers and how frequentl! !ou should tr! to communicate with them. -earning which ad ertising appeals are most effecti e and which ones get no response. -earning the relati e success of different marketing strategies, thus impro ing return on in estment. -earning how not to repeat !our mistakes. .ishal "ega "art has been the pioneer of retail re olution. Its first fight was against local MEirana# stores. %he task was to change the mindset of consumer to bring about changes in their shopping patterns. It wanted people to do bulk shopping for their monthl! ration instead of going to the shop each week.

M$R3ETI!& STR$TE&" O1 VIS-$. ME&$ M$RT Pro$uct .ishal "ega "art offers a wide range of products which starts from apparels to food items, footwear to home furnishing, crocker! to sport items, child care products to to!s, watches, drinks etc. %here are man! in house brands promoted b! .ishal "ega "art. In pursuance of their 3@

business plan to di ersif! their portfolio of offerings, F"?4 products pla! a ke! role. F"?4 products are usuall! meant to fulfill the dail! needs of consumers and therefore, .RP- belie e retailing of F"?4 products will bring customers to their stores on a frequent basis and this ma! in,turn lead to consumption of their apparels. .RP- ha e a number of pri ate labels for apparels such as Repplin, Paranoia, ?hlorine, Eitaan /tudio, Famenne, Fleurier Iomen and Roseau. . .ishal "ega,mart sold o er 388,888 pairs of *eans, >8,888 (.(,pla!ers and )>,888 microwa e,o ens. In all, the fashion, electronics and tra el segments made up about A8F of sales. -ast !ear, these categories made up onl! about @8F.

Price .ishal "ega "art promises its consumers the lowest a ailable price. %he concept of ps!chological discounting <Rs. 99, Rs. :9, etc.0 is used as promotional tool. .ishal "ega "art also caters on /pecial C ent Pricing <?lose to (iwali, ?hristmas, Kew 5ear etc.0. /elling combo, packs and offering discount to customers. %he combo,packs add alue to customer. %hrough Bundling, the! also reduced the price of the products. In addition to .RP-#s strateg! to continue 3A

procurement of goods from small and medium si2e endors and manufacturers which leads to cost efficiencies, .RP- intend to procure F"?4 and apparels from low,cost production centers located outside India. %owards this ob*ecti e, .RP-#s propose to increase their procurement of finished and semi,finished goods from ?hina and thereb! reali2e economies of scale and pass on the benefits so accrued to their customers. %he efforts of .RP-#s retail business are targeted towards families ha ing total income which can be classified under the ;lower middle= and ;middle= income groups. .RP- follow uniform pricing polic! across their stores in respect of pri ate labels and non,branded products sold b! them. %his enhances brand lo!alt!, encourages customer confidence and results in operational con enience. In relation to the other products, the prices ma! ar! between stores on account of state,specific taxation and endor policies.

Place .ishal "ega,mart stores are located in 1)9 cities with 1A) outlets. ."" has presence in almost all the ma*or Indian cities. %he! are aggressi e on their expansion plans. .ishal Retail targets cities with urban population of 1 million people or abo e or can be classified as %ier,) and %ier,3 cities. In %ier,1 cities, the compan! opens retail outlets on the outskirts, rather than the prime area. Its target market includes people with middle income and lower income le els. %his enables the compan! to o ercome competition to some extent due to its first mo er ad antage <as competitors ha e relati el! less space in tier,) and tier,3 cities0 and helps to lower rental cost. As at 3N F58G, AGF of the compan!#s G) stores are in %ier,) and %ier,3 cities.%he compan! plans to maintain the ratio of %ier,) and %ier,3 to %ier,1 cities at G86)8. Promotion Ad ertising has pla!ed a crucial role in building of the brand. .ishal "ega "art ad ertisements are mainl! seen in print media i.e. newspapers, %ele ision with %ina Parekh as there in ad ertisement, and sometime road,side bill,boards. .RP-#s categor! management s!stem is used to plan promotional schemes. %he! launch promotional schemes weekl!. Apart from general sales promotion, the categor! manager 3G

formulates promotional plans for Mslow mo ers#. In addition, to promote sales, the! focus on la!out of the stores and positioning, presentation and displa! of merchandise, in order to appeal to the customer. In addition, .RP- ha e introduced, in association with /BI ?ards 1 Pa!ment /er ices Pri ate -imited, a co,branded credit card. .RP-#s propose to continuousl! undertake such initiati es to increase the satisfaction of their customers. .ishal "ega,mart started man! new and inno ati e cross,sell and up,sell strategies in Indian retail market. %he arious promotion techniques used at ."" include6 ,> (in Ei "aha Bachat ,) din Ei "aha -oot ,(han,teras (hamaal ,4reat /a ings ,.ishal "ega "art 4ift .oucher Rs. 1888. ,)>F $ff $n All Items O C er! "onth ,(iscount $ffers At .arious Festi e occasions ,4rand Iinter /ale O >8F 1 @8F discount for ) da!s ,Paise Bachao Aandolan O 9 (in Ei "aha -oot ,.ishal Reward Plus6 ?onsumers can make purchases at an! store and accumulate points at a central le el. %hese points are redeemable at an! of our stores. ,?ross categor! promotions are now catching up where discounts are being offered on grocer! purchases, redeemable against purchase of apparel and household products

Peo&le .ishal Retail has been established b! "r. Ram ?handra Agarwal, a first generation entrepreneur. &e has been instrumental in expanding the business from an apparel store in Eolkata to G) alue retail stores with pan, India presence. %he management team has a pool of talented professionals with right mix of working experience. Professionals are one of the ke! assets for an! organi2ation. %he salient features of staff of ."" are6 , ,"onthl!, weekl! 1 dail! sales targets are communicated to the staff 1 efforts are made to consistentl! achie e the set targets. ,Cmplo!ees are moti ated to think out,of,the,box. Retail sector is in growth stage, so staff is empowered to take inno ati e steps. ,"ultiple counters for pa!ment, staff at store to keep baggage and securit! guards at e er! gate, makes for a customer,friendl! atmosphere. ,."" moti ates 1 retains store staff 1 maintains a positi e work en ironment. 39

,Iell,dressed staff impro es the o erall appearance of store. ,/trong Recruitment ?ell, ),>89 emplo!ees *oined in )889. ,G>88 emplo!ee /trength. (ue to intense competition, the requirement of skilled manpower is increasing. At the same time, the a ailabilit! of skilled manpower is declining and attrition rates are increasing throughout the industr!. Ie foresee an increase in the emplo!ee cost going forward <Figure A0 due to compan!#s efforts to attract and retain the emplo!ees. Although emplo!ee cost is increasingL still the compan!#s moti e is to retain the aluable emplo!ees in the compan!

Process ."" adopted the business model as shown in <Figure,90 to run their acti ities smoothl!. %his process includes four steps as follows6 "anufacturing ?apacit!L /trong -ogisticsL ProductsL Retailing %he goodsH dispatch and purchasing area has certain salient features which include6 , ,"ultiple counters with trolle!s to carr! the items purchased. ,Proper displa! 7 posters of the place like <Eids Iear, 4rocer!, and /tationar! etc.0. ,&ome deli er! counters to be started soon. ,%hree -a!er /ecurit! ?hecks. ,Ko. of Parallel Billing ?ounter ,Retail Cxchange /oftware /olution O PRI,Integrated Iith /AP 1 CRP Physical 'vi$ence It deals with the final deli erable or the displa! of written facts. %his includes the current s!stem and a ailable facilities. ,Infrastructure O /tand Alone ?ommercial Building ,?lean, Air,conditioned outlet ,Cquipment O computer, B?R, (esk etc /tate of Art Management OrganiHation Str#ct#re

:8

"ear'''' Milestone

:1

)881,, Incorporated as .ishal Retail Pri ate -imited acquired the proprietorship firm .ishal 4arments 1 the .ishal 4arments opened first store outside Eolkata. )88),, $pened first /tore in (elhi )883 ,,Acquired .ishal Apparels, a manufacturing unit. /et up a manufacturing unit in 4urgaon. )88:,,/tarted thier largest store of at "athura Road, Kew (elhi ha ing an area of G8,888 square feet nominated for the Images Retail Awards# )88: )88@,,%hier ?ompan! was con erted into a public limited compan! 183 implementation of production and retail module of /AP Broadband connecti it! with each and e er! location Increased thier presence to an aggregate of 1A /tates. )88A,, Increase in number of stores to >8 spread across in 1G /tates

:)

Data Collection And Analysis

S()* +!+L,SIS

:3

Strength6 ::

&igh Brand Cquit! in e ol ing retails markets /tate,of,art infrastructure of Big Ba2aar outlets P$P to increase the purchase $ne stop shop for ariet! of products, increasing customer time and a ailable choices (ea#ness6 +nable to meet store opening target so far Falling re enue per square feet )&&ortunity( $rgani2ed retail is *ust :.1>Fof total pie of Indian retail market C ol ing ?ustomer preferences in recent !ears. *hreat( ?ompetitors, global big pla!ers planning to fora! into market 4o ernment policies are not well,defined in India +norgani2ed retail market of India

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@. &ow is !our shopping experience at .ishal "ega "art' .er! /atisfactor! A erage Poor >8 /atisfactor! +nsatisfactor!

Ver? satisfactor? 6/

Satisfactor? >8

$>erage A)

Unsatisfactor? ))

Poor 1@

3 0 5 0 2 0 3 0 2 0 1 0 0 Ver' 5 a tis(a $tor' 5 a tis(a $ tor' A era g e 6nsa tis(a $tor' 7oor # a tain%

A. (o !ou want to changes in .ishal "ega,"art' 5es Ko

>1

"es L@

!o 18:

5 2 %

2* %

4 es N8

9. Ihat changes !ou want' Better ser ices Better products Better packaging &ome deli er!

>)

Better ser>ice 6*

Better packaging )>

Better pro%#cts @8

-ome %eli>er? A8

35 30 25 20 15 10 5 0 &etter &etter &etter ser i$e p a$kag ing prod %$t H om e de.i er' # atain%

18. According to !ou which promotional acti it! is effecti e' Road show /ampling An! other ?ampaign Premiums

>3

Roa% sho; 6/

,ampaign A@

Sampling 38

Premi#ms ):

$n? other 38

20 35 30 25 20 15 10 5 0 9 oad s how ) am paig n5 am p.ing 7rem i%m sAn' other #ata in %

11. Ihat !ou think about sales promotion strateg! of compan!'

Best

4ood

>:

A erage

Kot good

S Best 6@ &oo% >@ $>erage AG !ot goo% )8

20 35 30 25 20 15 10 5 0 &es t -ood A erag e Not g ood #ata in %

1). (oes sales promotion strategies beneficial for sales' 5es Ko >>

"es 06@

!o >:

2!%
4 es No

! 3%

13. At what percent sales promotion strateg! is useful for increasing sales >@

+p to 18F 38,:8F

)8,38F "ore than :8F

Up to 0/E A*

)/'</E >G

</'6/E :8

More than 6/E )A

>A

Findings

1in%ings

08 %he choice of a store location has a profound effect on the entire business life of a retail >G

operation. A bad choice ma! all but guarantee failure, a good choice, and success. )8 ?hoosing a retail location is, at best, a risk! undertaking. ?onsidering the consequences of choosing a location that pro es to be unsuitable, it pa!s to get as much assistance as possible. According to a sur e! more than @8F of the customer prefers to shop in a retail store which is easil! accessible to them. <8 Ad ertising pla!s a er! important role in achie ing growth for an! retail compan!. %his is e ident from the fact that Ad ertising b! Retail Industr! registered a rise of 1) percent during Januar! , "a! )88A o er Januar! , "a! )88@. 68 %he right location, trained manpower, software assistance, product with a distinct differentiation, a strong alue proposition, efficient suppl! chain management , these are the factors that influence the success of a retail outlet. Iith competition in this segment increasing, differentiation and a strong alue proposition assume significance. Retail chains are reali2ing that the! cannot be another Mme,too# store. %he differentiation toda! among the >,@ retail chains has come through pri ate labels, which in some cases account for as much as A8 per cent of the total merchandise in the outlet. *8 .ariet! offered b! an! retail store is of er! much important to attract all t!pe of customers in the stores. A large ariet! of products caters to each segment of customers. @8 /hopping experience within a store also has a great impact on selecting a product from a particular retail store. $ erall ambience includes infrastructure facilities pro ided b! the store such as air conditioners, lighting etc. A8 Pricing is in fact a dramatic controller of at least 3 ke! strategic elements to an! compan!Hs success6 ?ompan!#s image, the product and ser ices compan! sells and consumer beha ior. %he Importance of Pricing their ProductsH will gi e them an insight into de eloping appropriate costing methods and the impact of getting it wrong in toda!Hs competiti e creati e market. %his topic should be of interest to an!one who is unsure if the! are getting it right. Remember the difference between o er or under,pricing their work can mean a er! short future for an! business. Approximatel! @8F customers think that Price is the most important factor while the! go for shopping in a retail stores 78 Nualit! in e er!da! life and business, engineering and manufacturing has a pragmatic interpretation as the non,inferiorit!, superiorit! or usefulness of something. %his is the most common interpretation of the term. %he qualit! of a product or ser ice refers to the >9

perception of the degree to which the product or ser ice meets the customerHs expectations. Nualit! has no specific meaning unless related to a specific function and7or ob*ect. Nualit! is a perceptual, conditional and somewhat sub*ecti e attribute. And in addition to that, more than 98F of customers place qualit! as the most important factor than an!thing else in the list to shop in a retail store. L8 "ore than A8F of customers place ariet! as an important factor to shop in a particular retail store. 0/8 Brands name bears an important role while shopping of an! t!pe of goods. /o building a brand for a retail store is important as G8F of customer still prefer to bu! branded clothes in the retail store instead of local or unbranded clothes.

@8

Conclusion & Suggestions

%onclusion
4i en the de elopments and prospects, the Indian retail sector is in its nascent stage of e olution. Ihile there are obstacles, there are clear opportunities in modern retailing in India. %here are @1

man! lessons that India can take from other countries, which ha e mo ed along the path of retail e olution. %he retail sector has pro ed to be of immense significant from macro,economic point of iew. %he sector#s capabilit! to gi e strong growth momentum b! creating multiplier effects on other sectors is not in dispute. It is now necessar! to cautiousl! expand and de elop the sector, as the go ernment, at present, has done b! permitting partial F(I in the sector. 4i en the scope, the retail sector is certainl! expected to fetch the long,term economic benefits for the countr!. %he con enience and personali2ed ser ice offered b! the unorgani2ed sector holds its future in good stead for the future. $rgani2ed retail of late has seen a tremendous boom and is attracting more people to the malls. Ihat is to be seen is how organi2ed retail can duplicate the same le el of personali2ed customer ser ice le els offered b! the unorgani2ed sector to ha e a higher con ersion ratio. %he target audience for both the organi2ed and unorgani2ed retail formats remains relati el! the same. Ihen shopping in malls, people alue the experience related to the trip the most and return most frequentl! for the same. Besides, while en*o!ing the experience the! seem to bu! high ticket and items of conspicuous consumption most frequentl!. 4aining and maintaining consumer preference is a battle that is ne er reall! won. ?ontinued and consistent branding initiati es that reinforce the consumer#s purchase decision will, o er time, land the product in consumer preference sets. Attaining and sustaining preference is an important step on the road to gaining brand lo!alt!

Suggestions 1. Include more trained sales person to help customers in the store while shopping. ). Impro e qualit! of the products especiall! clothes. 3. Pla! good songs or soothing music in the store rather than cheap film! songs. @)

:. ?ustomer care ser ice can be introduced >. "ore branded products can be displa!ed in the store as people still prefer branded clothes than offered b! local endors. @. ?onstant reminder of discounts through pamphlets, speakers inside the store for inducing consumers for impulse bu!ing. A. Add more cosmetic products as its ha ing a huge market of consumers attached to it. G. (ispla! of product should be impro ed so that the product is easil! consumers. 9. Proper ad ertisement in press and outdoor to make .ishal "ega "art should be isible in the e!es of consumers. 18. /hould ha e parking spaces in front of e er! store. 11. &ire more salesgirls as in ladies section its er! difficult for both the consumers and salesman to interact with each other. 1). Regular training to sales person to impro e there o erall performance. 13. ?ustomi2ation of clothing should be gi en an important consideration. 1:. Proper packaging and pro ide contrast labelling in displa!s of product. 1>. /hould appl! electronic suppl! chain management for better in entor! management. 1@. Proper power back up as air conditioners are not working to their full capacit! at man! stores. 1A. Proper placements of 4ondola in the stores as space between them are er! less. 1G. Proper displa! in the gondola and top most rack of the gondola should be used for storing of in entor! rather than displa! of product. 19. /hould pro ide more festi al schemes and at proper time. )8. /hould use ps!chological pricing,more discounts b! increasing the price )1. Proper displa! of cutler! items )). ?lothes should be in s!nc with fashion. isible to the

Bibliography
Books referre%(

@3

Retailing "anagement Pradhan, /wapna Retail "anagement O A /trategic Approach Berman, Barr! 1 C ans, Joel R. %he Art $f Retailing

4eCsites( www.google.com www.wikipedia.com www. ishalmegamart.com

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