pakiza & vishal comparison 1-1-final

7/30/2019 Pakiza & Vishal Comparison 1-1-FINAL

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

In this project I have done Comparative Study of Brand Image of Retail Stores in

Indore City. For this a survey of 100 respondents was conducted.

A brand is a name, sign, symbol, slogan or anything that is used to identify and

distinguish a specificproduct, service, orbusiness. A legally protected brand name is

called a proprietary name.

Concepts

Brand is the image of the product in the market. Some people distinguish the

psychological aspect of a brand from the experiential aspect. The experiential aspect

consists of the sum of all points of contact with the brand and is known as the brand

experience. The psychological aspect, sometimes referred to as the brand image, is a

symbolic construct created within the minds of people and consists of all the informationand expectations associated with a product or service.

People engaged in branding seek to develop or align the expectations behind the brand

experience, creating the impression that a brand associated with a product or service has

certain qualities or characteristics that make it special or unique. A brand is therefore one

of the most valuable elements in an advertising theme, as it demonstrates what the brand

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owner is able to offer in the marketplace. The art of creating and maintaining a brand is

calledbrand management. Orientation of the whole organization towards its brand is

calledbrand orientation.

Careful brand management seeks to make the product or services relevant to the target

audience. Therefore cleverly crafted advertising campaigns can be highly successful in

convincing consumers to pay remarkably high prices for products which are inherently

extremely cheap to make. This concept, known as creating value, essentially consists of

manipulating the projected image of the product so that the consumer sees the product as

being worth the amount that the advertiser wants him/her to see, rather than a more

logical valuation that comprises an aggregate of the cost of raw materials, plus the cost of

manufacture, plus the cost of distribution. Modern value-creation branding-and-

advertising campaigns are highly successful at inducing consumers to pay, for example,

50 dollars for a T-shirt that cost a mere 50 cents to make, or 5 dollars for a box of

breakfast cereal that contains a few cents' worth of wheat.

Brands should be seen as more than the difference between the actual cost of a product

and its selling price - they represent the sum of all valuable qualities of a product to the

consumer. There are many intangibles involved in business, intangibles left wholly from

the income statement and balance sheet which determine how a business is perceived.

The learned skill of a knowledge worker, the type of metal working, the type of stitch: all

may be without an 'accounting cost' but for those who truly know the product, for it is

these people the company should wish to find and keep, the difference is incomparable.

Failing to recognize these assets that a business, any business, can create and maintain

will set an enterprise at a serious disadvantage.

A brand which is widely known in the marketplace acquires brand recognition. When

brand recognition builds up to a point where a brand enjoys a critical mass of positive

sentiment in the marketplace, it is said to have achieved brand franchise. One goal in

brand recognition is the identification of a brand without the name of the company

present. For example, Disney has been successful at branding with their particular script

font (originally created for Walt Disney's "signature" logo), which it used in the logo

forgo.com.

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Consumers may look on branding as an important value added aspect of products or

services, as it often serves to denote a certain attractive quality or characteristic (see

alsobrand promise). From the perspective of brand owners, branded products or services

also command higher prices. Where two products resemble each other, but one of the

products has no associated branding (such as a generic, store-branded product), people

may often select the more expensive branded product on the basis of the quality of the

brand or the reputation of the brand owner.

Brand Awareness

Brand awareness refers to customers' ability to recall and recognize the brand under

different conditions and link to the brand name, logo, and jingles and so on to certain

associations in memory. It helps the customers to understand to which product or service

category the particular brand belongs to and what products and services are sold under the

brand name. It also ensures that customers know which of their needs are satisfied by the

brand through its products. (Keller)

Brand Salience

Brand salience measures the awareness of the brand."To what extent is the brand top-of-

mind and easily recalled or recognized? What types of cues or reminders are necessary?"

(Keller)

How do customers remember?

The tendency of a brand to be thought of in a buying situation is known as brand

salience. Brand salience is the propensity for a brand to be noticed and/or thought of in

buying situations and the higher the brand salience the higher its markets penetration

and therefore its market share. Salience refers not to what customers think about brands

but to which ones they think about.

Brands which come to mind on an unaided basis are likely to be the brands in a

customers consideration set and thus have a higher probability of being purchased.

Advertising weight and brand salience are cues to customers indicating which brands are

popular, and customers have a tendency to buy popular brands. Also, an increase in the

salience of one brand can actually inhibit recall of other brands, including brands that

otherwise would be candidates for purchase.

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It is widely acknowledged that buyers do not see their brand as being any different from

other brands that are available. They buy a particular brand because they are more aware

of it, not because it is more distinctive, or has a point of difference. We now know that all

decisions made by humans involve memory processes to a greater or lesser extent.

Incoming information from the external environment travels by the sensory memory into

the short-term (or working) memory (STM) but if it is not acted upon in a very short time

the brain simply discards it.

But salient information that is important and received on a regular basis through different

channels is passed to the long-term memory (LTM) where it can be stored for many

years. Memories are stored or filed via connections between new and existing memories

in the different parts of the memory. They are laid down in a framework making some

memories easier to access than others. Recall is the process by which an individual

reconstructs the stimulus itself from memory, removed from the physicalitys of that

reality.

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SECTOR PROFILE

The Indian Retail Industry is the largest among all the industries, accounting for over 10

per cent of the countrys GDP and around 8 per cent of the employment. The Retail

Industry in India has come forth as one of the most dynamic and fast paced industries

with several players entering the market. But all of them have not break even with other

companies and compete with them. The Retail Industries is gradually inching its way

towards becoming the next boom industry.

The total concept and idea of shopping has undergone an attention drawing change in

term of format and consumer buying behavior, ushering in a revolution in shopping in

India. Modern retailing has entered into the Retail market in India as is observed in theform of bustling shopping, entertainment and food all under one roof. A large young

working population with medium age of 24 years, nuclear families in urban areas, along

with increasing working women population and emerging opportunities in the services

sector are going to be the key factors in the growth of the organized Retail sector in India.

The growth pattern in organized retailing and in the consumption made by the Indian

population will follow a rising graph helping the newer businessmen to enter the Indian

Retail Industry. In India the vast middle class and its almost untapped retail Industry are

the key attractive forces for the global retail giants waiting to enter into newer market,

which in turn will help the Indian Retail Industry to grow faster. Indian retail is expected

to grow 25 per cent annually. Modern retail in India could be worth US$175-200 billion

by 2016. The Food Retail in India dominates the shopping basket. The Mobile phone

Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per

cent per year. The Future of the Indian Retail Industry looks promising with the growing

of the market, with the government policies becoming more favorable and the emerging

technologies facilitating operations.

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ORIGIN OF RETAIL SECTOR

Early Trade:

When man started to cultivate and harvest the land, he would occasionally find himself

with a surplus of goods. Once the needs of his family and local community were met, he

would attempt to trade his goods for different goods produced elsewhere. Thus markets

were formed. These early efforts to swap goods developed into more formal gatherings.

When a producer who had a surplus could not find another producer with suitable

products to swap, he may have allowed others to owe him goods. Thus early credit terms

would have been developed. This would have led to symbolic representations of such

debts in the form of valuable items (such as gemstones or beads), and eventually money.

HOW RETAIL DEVELOPED:

Peddlers and Producers:

The Retail Trade is rooted in two groups, the peddlers and producers. Peddlers tended to

be opportunistic in their choice of stock and customer. They would purchase any goods

that they thought they could sell for a profit. Producers were interested in selling goods

that they had produced.

General Store:

This division continues to this day with some shops specializing in specific areas,

reflecting their origins as outlets for producers (such as Pacific Concord of Hong Kong),

and others providing a broad mix, known as General Store (such as Casey's in the

Midwest of the U.S.A.).

Although specialist shops are still with us, over time, the general store has increasingly

taken on specialist products. Customers have found this to be more convenient than

having to visit many shops - thus the term "Convenience Store" has also been applied to

these shops. As the popularity of general stores has grown, so has their size. This

combined with the advent of Self-Service has lead to the Supermarket, or Superstore.

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Early Markets:

Over time, producers would have seen value in deliberately over-producing in order to

profit from selling these goods. Merchants would also have begun to appear. They would

travel from village to village, purchasing these goods and selling them for a profit. Over

time, both producers and merchants would regularly take their goods to one selling place

in the centre of the community. Thus, regular markets appeared. The First Shop:

Eventually, markets would become permanent fixtures i.e. shops. These shops along with

the logistics required to get the goods to them were, the start of the Retail Trade.

The Birth of Distance Retailing:

Defined as sales of goods between two distant parties where the deliverer has no direct

interest in the transaction, the earliest instances of distance retailing probably coincided

with the first regular delivery or postal services. Such services would have started in

earnest once man had learned how to ride a camel, horse etc.

When individuals or groups left their community and settled elsewhere, some missed

foodstuffs and other goods that were only available in their birthplace. They arranged for

some of these goods to be sent to them. Others in their newly adopted community

enjoyed these goods and demand grew. Similarly, new settlers discovered goods in their

new surroundings that they dispatched back to their birthplace, and once again, demand

grew. This soon turned into a regular trade. Although such trading routes expanded

mainly through the growth of traveling salesmen and then wholesalers, there were still

instances where individuals purchased goods at long distance for their own use. A second

reason that distance selling increased was through war. As armies marched through

territories, they laid down communication lines stretching from their home base to the

front. As well as garnering goods from whichever locality they found themselves in, they

would have also taken advantage of the lines of communication to order goods from

home.

Origins of Retail

It is likely that, as markets became more permanent fixtures they evolved into shops.

Although advantageous in many respects, this removed the mobility that a peddler or

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traveling merchant may still have enjoyed. For some shopkeepers, it made sense to obtain

extra stock and open up another shop, most probably operated by another family member.

This would recover business from peddlers and create new business and the greater

volume would allow the shopkeeper to strike a better deal with suppliers. Thus the retail

chain would have started. Its thought that this process would have started in china over

2200 years ago with a chain of shops owned by a trader called Lo Kass.

The First Self-Service Store:

This all changed in 1915 when Albert Gerard opened the Groceteria in Los Angeles, the

first documented self-service store. This was soon followed a year later by the Piggly

Wiggly self-service store, founded by Clarence Saunders in Tennessee in the U.S.

Growth:

This new type of shopping was more efficient and many customers preferred it. Although

personal service stores remain to this day, this new concept started a rapid growth of self-

service stores in the United States. Other countries were slow to take up the idea, but

there has been a steady rise in the global amount of self-service stores ever since.

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Efficiency

These entrepreneurs noticed that their staff had to spend a great deal of time taking

grocery orders from customers. The groceries were stacked on shelves allowing

customers to walk around and browse, collecting their shopping in a basket that was

supplied. The shopkeeper would only need to tot up the final bill at the end of the process

and transfer the goods from the basket to the customer and receive payment.

From Family Business to Formal Structure:

Although retail chains would have been mostly run by families, as some chains grew,

they would have needed to employ people from outside of their family. This was a

limiting factor as there would have been a limit to the amount of trusted non family

members available to help run the chain. Another, even more definite limiting factor was

the distance the furthest shop would have been from the original shop. The greater the

distance, the more time and effort would have been needed to effectively manage outpost

shops and to service them with goods. There was, therefore, a natural barrier to

expansion. That was the case until transport and communications became faster and more

reliable. When this happened towards the end of the 19th century, chains became much

bigger and more widespread. Many of these businesses became more structured and

formalized, leading to the retail chain that we see today.

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DIVISION OF RETAIL SECTOR IN INDIA

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RETAILING FORMATS IN INDIA

Malls:

The largest form of organized retailing today. Located mainly in metro cities, in

proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 and above. They lend

an ideal shopping experience with an amalgamation of product, services and

entertainment, all under a common roof. Examples include Shopper Stop Pyramid,

Pantaloon.

Department Stores:

Department Stores are expected to take over the apparel business from exclusive brand

showrooms. Among these, the biggest success is K Rahejas Shopper Stop, which started

in Mumbai and now has more than seven large stores(over 30,000 sq,ft ) across India and

even has its own in store brand clothes called Stop!.

Specialty Store:

Chain such as the Bangalore based kids Kemp, the Mumbai books retailer Crossword,

RPGs Music World and the Times Groups music chain Planet M, are focusing on

specific market segments have established themselves strongly in their sectors.

Hypermarket/Supermarket

Large self service outlets, catering to varied shopper needs are termed as Supermarkets.

These are located in or near residential high streets. These stores today contribute to 30 %

of all the food & grocery organized retail sales. Super Market can further be classified in

to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large Super Market ranging

from 3,500 sq ft to 5,000 sq ft having a strong focus on food & grocery and personal

sales.

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Discount Stores:

As the name suggests, discount stores or factory outlets, offer discounts on the MRP

through selling in bulk reaching economies of scale or excess stock left over at the

season. The product category can range from a variety of perishable/ non perishable

goods.

Convenience Stores:

These are relatively small stores 400-2,000 sq. feet located near residential areas. They

stock a limited range of high-turnover convenience products and are usually open for

extended periods during the day, seven days a week. Prices are slightly higher due to the

convenience premium.

Department Stores:

Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs.

Further classified into localized departments such as clothing, toys, home, groceries, etc.

MBOs:

Multi Brand outlets, also known as Category Killers, offer several brands across a single

product category. These usually do well in busy market places and Metros.

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COMPANY PROFILE OF PAKIZA RETAIL

Pakiza Retail Projects we were founded in 1975, at the dawn of an age where in the

retailing was not so developed in the whole central India. Over the year we expanded our

horizons to serve masses, corporate, institutions and cream genre of the society and

beyond.

Pakiza (A multibrand Reasonable Priced Departmental Store) located at Indore, presently

running 4 departmental stores in 1, 60,000 sq. ft. of total area. We as Pakiza are known

for One Stop Solution for Apparel, textile, FMCG & other households products. In the

last year we have achieved sales target and are planning to grow it by 20%, in forthcoming years. Pakiza Textile Pvt. Ltd. Is owned and operated by family, who devotes

their full time in this business only and are quite sensitive towards Owners Commitment.

Our Mission is to give the discriminating shopper what they are looking for, whether it is

Economy, Comfort or Style, in an atmosphere that is comfortable, exciting and satisfying.

In Indore, we currently circle our customers with value-added products and service

through 4 (Four) retail business units first at Santha Bazaar, 2nd at Regal Square, MG

Road and 3rd shopping complex at AB Road & 4th showroom complex in freeganj

Ujjain. The 1st retail outlet is a 15000 sq. ft. showroom catering to mostly masses, rural

and customer of old city area, 2nd outlet at MG Road is 45000 Sq. Ft. departmental store

catering to higher and highere middle class of new city area, where as the new mall with

90000 Sq. Ft. caters the need of modern township. Each of these businesses is dedicated

to providing out customers with the highest-quality, most effective products, variety,

prices and services.

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MILESTONES

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PAKIZA GROUP

We are founded in 1975, at the dawn of an age where in the retailing was not so

developed in the whole central India. Over the year we expanded our horizons to servemasses, corporate, institutions and cream genre of the society and beyond.

Pakiza (A multiband Reasonable Priced Departmental Store) located at Indore, presently

running 3 departmental stores in 1, 50,000 sq. ft. of total area. We as Pakiza are known

for One Stop Solution for Apparel, textile, FMCG & other households products. In the

last fiscal year we have achieved the sales of .. And are planning to grow it by

20%, in this current year Pakiza Textile Pvt. Ltd. Is owned and operated by family, who

devotes their full time in this business only and are quite sensitive towards Owners

Commitment.

Our Mission is to give the discriminating shopper what they are looking for, whether it is

Economy, Comfort or Style, in an atmosphere that is comfortable, exciting and satisfying.

In Indore, we currently circle our customers with value-added products and service

through 3 (Three) retail business units first at Santha Bazaar, 2nd at Regal Square, MG

Road and 3rd shopping complex at AB Road & 4th showroom complex in freeganj

Ujjain. The 1st retail outlet is a 15000 sq. ft. showroom catering to mostly masses, rural

and customer of old city area, 2nd outlet at MG Road is 45000 Sq. Ft. departmental store

catering to higher and higher middle class of new city area, where as the new mall with

90000 Sq. Ft. caters the need of modern township. Each of these businesses is dedicated

to providing out customers with the highest-quality, most effective products, variety,

prices and services.

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LOYALTY SCHEMES

Becoming a Pakiza loyalty club (PLC) Member is very easy

Shop for Rs. 2000/- and just fill the application form

Tear away the temporary card and keep with you.

Start scanning the card right away at cash counters to earn PLC points.

Remember to use the temporary card every time you shop in any pakiza store.

After purchase of Rs. 5000/- You will receive an attractive personalized

permanent Membership card.

Continue shopping with your permanent card and replace your temporary card.

How to earn and Redeem PLC Points.

For every Rs. 100/- that you spend at any pakiza showroom you earn minimum 1

PLC points ( Refer PLC Points Slab chart )

Value of the points earned depends on various slob of your shopping.

You can redeem your points at 3rd stage.

Simply fill up redemption form at any of our CRM desk and you will receive

redemption voucher within 7 days.

You can redeem your vouchers at any pakiza store against shopping only.

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PLC Points Slab:-

Shop for Rs. Type of Card

Value of points

other than

FMCG

Value of Points on

FMCG

Stage- 1

2,000 Temporary Card 40 20

Stage- 2

5,000 Permanent card 200 50

Stage- 3


Stage- 4


Stage- 5


The above chart states that the value of points in increases as your shopping

increases (for other than FMCG) while it remains constant for FMCG.

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Benefits at a glance to the permanent card holders in addition

to points

Abroad air

tickets

Free two air tickets for the member shopped above Rs. 50,000/-

( Under Yearly Lucky draw )

Free Dinner Free Dinner for the members shopped above Rs. 5000/- (For four

persons). (Under monthly lucky draw).

Movie Tickets Free Movie tickets for permanent members shopped above Rs.

2000/- (Two tickets). (Under weekly lucky draw.)

Surprise Gift Surprise Gift to the permanent members. (Highest Purchase on

weekly basis.)

Taxi Fare Free one way auto rickshaw fare to the members. ( for full day )

Music CD Free Music CD with permanent card worth Rs. 60/-

Discount on

special occasions

If any member makes purchase on special Occasion i.e. Birthday /

Anniversary will get special discount of 10% ( Up to Rs. 1000/- )

Members Day Special days for the members of club to take benefits of any

schemes or discount offers provided by pakiza to all other

customers.

Free Points on

Add-on Cards

Member will get 20 points for an add-on card as the add-on card

member achieve Rs.2000/-

Modes of

Information

Members will be intimated about the schemes and offers

permeably through SMS / E-MAIL / MAILER

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PRODUCTS

Men's Wear

Ladies Wear

Western Wear

Kid's Wear

Dress Material

Suiting-Shirtings

Sarees

Under Garments

Knit Wear

FMCG

Accessories

Footwear

Home Furnishing

Jewellery

Bags

Personal Care

Men's Boutique

Sports

Rainy Item

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SHOP IN SHOP CONCEPT

The shop-in-shop concept incorporates independent shops within the shop, offering a

range of products, brands and services, many of which are exclusive in the region.

The shop-in-shop concept is a contract granting the right to operate a subsidiary business

within the premises. India is going through a revolution in the Retail industry. A product

of this is the growth of international standard Departmental Stores. Many such chains are

opening shop in the coming years.

The strategy works for both business partners, as for the Departmental Stores, they get an

expert operator to run the section, and as for another, it gives an opportunity to

communicate the brand values through direct interaction with the consumers, apart from

getting the advantage of high footfalls already being achieved by the Departmental Stores

because of their own popularity.

Revenue Sharing

The Shop-in-shop concept can be managed as per the consent of the business partners.

Any or all terms & conditions mutually agreed upon can be decided so that both the

parties feel comfortable.

Few examples are:

Revenue sharing

Rental

Partly Revenue Partly Rental

Minimum Guaranteed Amount or percentage of Revenue, whichever is higher.

Responsibility Sharing

The Sales force required may also be shared as:

SIS Partner will pay the salary for the staff required at its counter

The Sales Person will be provided by the Outlet Owner

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COMPANY PROFILE VISHAL MEGA MART

The glory of Vishal Groups success is the ascent it has come to accomplish in the field

of manufacturing and retailing of readymade garments. The credit for this radiance goes

to its dynamic of directors Mr. Ram Chandra Agarwal & Mrs. Uma Agarwal who have

transformed their foresightedness into an unending saga of growth. Identifying the

immense market in fashion garment for the masses the Group has actually established

benchmarks that many others are inspired to follow. Not resting on its laurels, the Group

is busy identifying new avenues of growth and its companies are busy implementing the

expansion plans to cash in on emerging potentials in the changing business environment

of modern Indias enterprise.

The jewel in Vishal Groups crown is its flagship company Vishal Retail Ltd. a company

engaged in Hyper market stores with an average area of 25,000 to 30,000 sq. ft. through

an impressive chain of 172 fully integrated stores in spread over the area of more than

24,00,000 sq. ft. in around 110 cities across India in 24 states. The turnover of thecompany for 09-10 was 1105 Crore. Maintaining the highest standards in quality and

design, these stores have come to offer the finest fashion garments at down-to-earth price

structure. A fact that is better visible in the constant flow of shoppers all through the year.

Under the title of Vishal Mega Mart these stores have emerged as the regular haunts for

the bargain-hunters and fashion enthusiasts alike.

The saga of Vishal Group dates back to 2001 when its directors foresaw the emerging

potentials in the retail industry which is indeed the largest sector in the global economy.

Imbibing its innovative concepts and techniques the Group identified the vast scope of

growth in retailing for the common man. Its stores have gained an enviable prominence

as being the ideal store for the common man where an extensive variety and quality is

offered at a very, very reasonable price structure. The Groups expertise in the field of

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retail marketing over the years and its focus on regions, cities and exact customer

preferences have earned the Group an undisputed leadership status to Vishal Group.

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MARKETING MIX OF VISHAL MEGA MART

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

Mart also caters on Special Event Pricing (Close to Diwali, Christmas, and 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 procureFMCG 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.

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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 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 ofthe 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.

Strong understanding of the value retail segment

VRPLsbusiness plan involves implementation of the concept of the value retailing,targeting the middle and lower middle income groups, which constitute majority of the

population in India. VRPL intend to provide quality products at competitive prices.

VRPL sell a vast range of merchandise across apparels and accessories, FMCG products,

food products and consumer durables. VRPLs emphasis has been to maximize the value

that the customers derive in spending on goods bought in their stores. VRPL endeavor to

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continuously reduce their costs through a variety of measures, such as, in-house

production of apparels, procurement of goods directly from the small and medium size

vendors and manufacturers, efficient logistics and distribution systems along with

customized product mix at their stores depending on the regional customer behavior and

preferences. Central to their value retail strategy is to pass on the benefits of cost

reduction measures to their customers.

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OBJECTIVES OF THE STUDY

To analysis retail store image of Pakiza & Vishal mega mart.

To compare retail store image Pakiza & Vishal mega mart.

To understand retail industry in Indore.

To understand the buying behaviour of the customers.

Competitive Business Environment

To get the Practical Interface of Industry by applying theoretical

Concepts.

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RATIONALE OF THE STUDY

In the present era many people are going to retail stores. There are following points which

justify for the study:-

This study is being conducted for the compare retail store image of Pakiza, Vishal

mega mart.

What is the feedback of customer of Pakiza and Vishal mega mart?

This study will beneficial for who wants to purchase the products from retail

stores.

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CHAPTER 2

LITERATURE REVIEW

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LITERATURE REVIEW

The Indian retail market, which is the fifth largest retail destination globally, has been

ranked as the most attractive emerging market for investment in the retail sector by ATKearney's eighth annual Global Retail Development Index (GRDI), in 2009. As per astudy conducted by the Indian Council for Research on International Economic Relations(ICRIER), the retail sector is expected to contribute to 22 per cent of India's GDP by2010. With rising consumer demand and greater disposable income, the US$ 400 billionIndian retail sector is clocking an annual growth rate of 30 per cent. It is projected togrow to US$ 700 billion by 2010, according to a report by global consultancyNorthbridge Capital.

The organized business is expected to be 20 per cent of the total market by then. In 2008,the share of organized retail was 7.5 per cent or US$ 300 million of the total retail

market. A McKinsey report, 'The rise of Indian Consumer Market', estimates that theIndian consumer market is likely to grow four times by 2025. Commercial real estateservices company, CB Richard Ellis' findings state that India's retail market has moved upto the 39th most preferred retail destination in the world in 2009, up from 44 last year.India continues to be among the most attractive countries for global retailers. Foreigndirect investment (FDI) inflows as on September 2009, in single-brand retail trading,stood at approximately US$ 47.43 million, according to the Department of IndustrialPolicy and Promotion (DIPP).

India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a

democratic country with high growth rates, consumer spending has risen sharply as theyouth population (more than 33 percent of the country is below the age of 15) has seen asignificant increase in its disposable income. Consumer spending rose an impressive 75per cent in the past four years alone. Also, organized retail, which is pegged at aroundUS$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billionby 2013.

The organized retail sector, which currently accounts for around 5 per cent of the Indianretail market, is all set to witness maximum number of large format malls and brandedretail stores in South India, followed by North, West and the East in the next two years.Tier II cities like

Noida, Amritsar, Kochi and Gurgaon, are emerging as the favored destinations for theretail sector with their huge growth potential. Further, this sector is expected to investaround US$ 503.2 million in retail technology service solutions in the current financial

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year. This could go further up to US$ 1.26 billion in the next four to five years, at aCAGR of 40 per cent. Moreover, many new apparel brands such as Zara, the fashionlabel owned by Inditex SA of Spain, UK garment chain Top shop, the Marc Eckoclothing line promoted by the US entrepreneur of the same name and the Japanese casualwear brand Uniqlo are preparing to open outlets in India. Buoyed by improved consumer

spending, sales of listed retailers increased by 12 per cent in the September 2009 quartercompared with the same period in 2008.

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CHAPTER 3

METHODOLOGY

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RESEARCH METHODOLOGY

The word research methodology comes from the word advance learners dictionary

meaning of research as a careful investigation or inquiry specially through search for newfacts in any branch of knowledge for example some authors have defined research

methodology as systematized effort to gain new knowledge.

Research Methodology can consider research as movement, a movement from the known

to the unknown. The term Research methodology is an academic activity and as such the

term should be used in technical sense. According to Clifford Woody research comprises

defining and redefining problems, formulating hypothesis or suggested solutions,

collecting, organizing and evaluating data, making deduction and reaching conclusions

and then testing of the conclusion to determine whether they fit the in the formulating

hypothesis.

Research is thus an original contribution to the existing stock of knowledge making for its

advancement it is the pursuit of the truth with the help of the study, observations,

comparison and experiment.

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TYPES OF RESEARCH

The various types of research are:

Descriptive:Descriptive Research includes survey and fact finding enquiries of

different kinds. The major purpose of descriptive research is description of the

state of affairs as it exists at present. In social science and business research we

quite often use the term Ex-Post Factor research for descriptive research studies.

Analytical Research:According to analytical research the researcher has to

use facts or information already available and analyze these to make a critical

evaluation of the material.

Applied Research : Aims at findings a solution for an immediate problem

facing a society or an industrial/business organization.

Fundamental Research: Aims at mainly concerned with generalization and

with the formulation of a theory.

Quantitative Research :Quantitative Research is based on the measurement

of quality or amount. It is applicable to Phenomena that can be expressed in terms

of quality.

Qualitative Research : Qualitative Research is concerned on the

measurement qualitative phenomenon i.e. relating to or involving quality or kind.

For instant when we are interested in investigating the reasons for human

behavior.

The study conducted is a conclusive descriptive statistical study. Conclusive because after

conducting the study the researcher comes to a decision which is precise and rational.

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TOOLS OF ANALYSIS

To know the response. I have used the questionnaire method in sample survey. If one

wishes to find what people think or know, the logical procedure is to ask them. This hasled researchers to use the questionnaire technique for collecting data more than any other

method.

In this method questionnaire were distributed to the respondents and they were asked to

answer questions in the questionnaire. The questionnaires were structured non-disguised

questionnaire because the questions, which the questionnaire contained, were arranged in

a specific order besides every question asked was logical for the study, no question can be

termed as irrelevant.

The questionnaire, were non-disguised because the questionnaire were constructed so that

the objective is clear to the respondent. The respondents were aware of the objective.

They knew why they were asked to fill the questionnaire.

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DATA COLLECTION

PRIMARY DATA SOURCES

Through interaction with customers

SECONDARY DATA SOURCES:

Through internet, various official site of the company.

Through pamphlets and brochures of the company.

Journals & Magazine

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DATA ANALYSIS & INTERPRETATION

QUESTION NO.1 STRONGLY

DISAGREE

DISAGREE

NEUTRAL

AGREE STRONLY

AGRE

Price is the major factor whichinfluences you to switch overother retail brands.

0 0 5 20 75

STRONGLY

DISAGREE

0%

DISAGREE

0%

NEUTRAL

5%

AGREE

20%

STRONGLY

AGREE

75%

STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

Interpretation:

75% of respondents strongly agree that price is the major factor

which influences customer

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DISAGR

EE

DISAGREE

NEUTRAL

AGREE STRONLY

AGRE

Retail chain control prices. 0 9 11 64 16

STRONGLY DISAGREE

0%

DISAGREE

9%

NEUTRAL

11%

AGREE64%

STRONGLY AGREE

16%


Interpretation:

64% respondents agree that retail chain control prices.

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STRONGLY DISAGREE

1%

DISAGREE

3%

NEUTRAL

36%AGREE

43%

STRONGLY AGREE

17%


Interpretation:

43% respondents agree that price in retail chain is important,

while 36% respondent are neutral.

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DISAGR

EE

DISAGREE

NEUTRAL

AGREE STRONGLY

AGREE

Higher the price, higher thequality of goods.

4 6 17 58 13

STRONGLY DISAGREE

4%

DISAGREE

6%

NEUTRAL

17%

AGREE

60%

STRONGLY AGREE

13%


58% respondents agree that higher the price, higher the quality

of goods.

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DISAGR

EE

DISAGREE

NEUTRAL

AGREE

STRONGLY

AGREE

Lower the price, lower the qualityof goods.

0 11 22 43 24

STRONGLY DISAGREE

0%

DISAGREE

11%

NEUTRAL22%

AGREE

43%

STRONGLY AGREE

24%


Interpretation:

43% respondents agree that lower the price, lower the quality of

goods.

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DISAGRE

E

DISAGREE

NEUTRAL

AGREE

STRONGLY

AGREE

Lower the price, higher thequality of goods.

46 30 10 14 0

STRONGLY DISAGREE

46%

DISAGREE

30%

NEUTRAL

10%

AGREE

14%

STRONGLY AGREE

0%


Interpretation:

46% respondents strongly disagree that lower the price, higher

the quality of goods.

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DISAGRE

E

DISAGREE

NEUTRAL

AGREE

STRONGLY

AGREE

Shopping at retail store is astatus symbol these days.

0 1 9 77 13

STRONGLY DISAGREE

0%

DISAGREE

1%

NEUTRAL

9%AGREE

77%

STRONGLY AGREE

13%


Interpretation:

77% respondents agree that shopping at retail store is a statussymbol these days.

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DISAGR

EE

DISAGREE

NEUTRAL

AGREE

STRONGLY

AGREE

Prices in retail store tempt me topurchase more than required.

2 10 9 67 12

STRONGLY

DISAGREE

2%

DISAGREE

10%NEUTRAL

9%

AGREE

67%

STRONGLY AGREE

12%


Interpretation:

67% respondents agree that prices in retail store tempt me to

purchase more than required.

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DISAGR

EE

DISAGREE

NEUTRAL

AGREE

STRONGLY

AGREE

Prices at organized retail storeare consumer satisfactory

1 2 3 83 11

STRONGLY DISAGREE

1%

DISAGREE

2%

NEUTRAL

3%

AGREE

83%

STRONGLY AGREE11%


Interpretation:

83% respondents agree that prices at organized retail store are

consumer satisfactory.

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Age group

Age groups 25yrs- 35

yrs

36 yrs -

45yrs

46 55

yrs

above 55

yrs

67 23 6 4

25yrs- 35 yrs

36 yrs - 45yrs46 55 yrs

above 55 yrs

25yrs- 35 yrs 36 yrs - 45yrs 46 55 yrs above 55 yrs

Interpretation:

67% respondents are of age group between 25yrs-3535yrs.

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Education qualification

Education

qualificati

on

IlliterateSchool UG PG Others

Observati

ons

0 0 46 54 0

School

UG

PG

Professional Course

Others

Illiterate

Illiterate School UG PG Professional Course Others

Interpretation:

54% respondents are PG

46% respondents are UG.

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FINDINGS & DISCUSSION

Most of the respondents are purchasing Products from Vishal Mega Mart because

of Price and Range as compared to Pakiza Retail is better than others.

Pricing of Vishal Mega Mart is better than Pakiza.

Range of Products available in Vishal Mega Mart is better than Pakiza Retail as

per the brand image.

Quality of Products as per the brand image is Vishal Mega Mart is better than

Pakiza Retail

Replacement Policy of Vishal Mega Mart is better than Pakiza Retail.

Ambience of Vishal Mega Mart is better than Pakiza Retail as said by the

respondents.

The respondents feel that promotional offers of Vishal Mega Mart are better then

pakiza retail.

Vishal Mega Mart is more satisfactory as compared to Pakiza Retail.

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CHAPTER 5

CONCLUSION &

SUGGESTIONS

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CONCLUSION

The Indian Retail Industry is the largest among all the industries, accounting for over 10

per cent of the countrys GDP and around 8 per cent of the employment. The RetailIndustry in India has come forth as one of the most dynamic and fast paced industries

with several players entering the market. But all of them have not break even with other

companies and compete with them. The Retail Industries is gradually inching its way

towards becoming the next boom industry.

The total concept and idea of shopping has undergone an attention drawing change in

term of format and consumer buying behavior, ushering in a revolution in shopping in

India. Modern retailing has entered into the Retail market in India as is observed in the

form of bustling shopping, entertainment and food all under one roof. A large young

working population with medium age of 24 years, nuclear families in urban areas, along

with increasing working women population and emerging opportunities in the services

sector are going to be the key factors in the growth of the organized Retail sector in India.

The growth pattern in organized retailing and in the consumption made by the Indian

population will follow a rising graph helping the newer businessmen to enter the Indian

Retail Industry.

In this project I have compared prices of Retail Stores in Indore. For this a survey of 100

customers was conducted..

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SUGGESTIONS

Good Promotional offers must be included.

Improve quality of the products especially clothes..

Add more cosmetic products as its having a huge market of consumers attached to it.

Display of product should be improved so that the product is easily visible to the

consumers.

Proper advertisement in press and outdoor to make Vishal Mega Mart should be

visible in the eyes of consumers.

Regular training to sales person to improve there overall performance.

Customization of clothing should be given an important consideration.

Proper packaging and provide contrast labeling in displays of product.

Should apply electronic supply chain management for better inventory management.

Proper power back up as air conditioners are not working to their full capacity at

many stores.

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LIMITATIONS OF STUDY

Limitation of the present study can be summarized below :

The respondents were limited and cannot be treated as the whole population.

The respondents may be biased.

Time was the major constraint.

The accuracy of indications given by the respondents may not be consider adequate

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CHAPTER- 6

BIBLIOGRAPHY

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BIBLIOGRAPHY

Books:-

Kotler, Philip (2006): Marketing Management" Pearson Prentice Hall of India

Pvt. Ltd., New Delhi.

Saxena, Rajan (2007): Marketing Management Tata McGrow Hill Publishing

Company Ltd., New Delhi.

Malhotra Nares K.(2007): Marketing Research (an applied orientation) Pearson

Prentice Hall of India Pvt. Ltd., New Delhi.

Shankar Ravi (2008): Services Marketing, (the Indian Perspective) Excel Book,

New Delhi.

Nargundkar Rajendra (2008): Marketing Research Tata McGrow Hill Publishing

Company Ltd., New Delhi.

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CHAPTER-7

WEBBLOGRAPHY

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WEBBLOGRAPHY

www.vishalmegamart.com

www.ril.com

www.ibef.org

www.moneycontrol.com

www.fiber2fashion.com

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Questionnaire

I am a student of SAPIENT INSTITUTE OF MANAGEMENT STUDIES,

Indore and presently doing a project on comparative study of customer

preference towards prices in retail store.

1).Strongly Disagree 2).Disagree 3).Neutral 4).Agree 5).Strongly Agree

Question 1 2 3 4 5

1 Price is the major factor whichinfluences you to switch over otherretail brands.

2 Retail chain control prices.

3 Price in retail chain is important

4 Higher the price, higher the qualityof goods.

5 Lower the price, lower the quality ofgoods.

6 Lower the price, higher the qualityof goods.

7 Price perception has a significant

impact on consumer satisfaction.8 Shopping at retail store is a statussymbol these days.

9 Prices in retail store tempt me topurchase more than required

10 Prices at organized retail store areconsumer satisfactory

11 Discounts in retail stores areimportant,

12 I look for the benefit of the productfor the price I pay.

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Personal details:1. Name:

2. Age: a) 25yrs- 35 yrs b) 36 yrs - 45yrs c) 46 55 yrs d) above 55 yrs

3. Gender: a) Male b) Female

4. Educational Qualification: a) Illiterate b) School c) UG d) PG

e) Professional Course

f) Others

5. Occupation: a) House wife b) Students c) Salaried person d) Business man e) Professionals f) Supervisor g) Managerial h) pensioner

6. Income level:

a) Rs.5,000 Rs.15,000 b) Rs.15,001-Rs.25,000c) Rs.25,001- Rs.35,000 d) Rs.35,001-Rs.45,000e) Above Rs. 45,000

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A Study of Marketing Schemes of Pakiza and Vishal Retail Stores

Chapter1 Introduction: General discussion about Indian retail sector.

About Indore, retai bazaar of Indore.

Objectives

1. To study the marketing schemes of Pakiza and Vishal retail stores

2. To explore the reasons behind success of Pakiza and Vishal retail

stores.

Chapter 2: Research Mathodology

Literature Review

Primary and Secondary data are used.

Obeservation based study.,descriptive.

Chapter 3. Marketing schemes of Pakiza and Vishal retail stores

Chapter 4 Conclusion.

Success story

Significant contribution.

pakiza & vishal comparison 1-1-final

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