Chapter:-1

INTRODUCTION

Intr oduc ti on of Indian

Re tai l Industr ies :

In the background of high consumerism and income of the urban

consumers, in recent year there are a number of companies have
expressed their interest towards retail sector outlets. As a result
numbers of shopping malls have started their operations in metro and urban
areas. Pantaloon, big bazaar, Vishal Mega Mart, Reliance Fresh are the best
known examples of retail sector outlets in India. Retailing is the interface
between the producer and the individual consumer buying for personal
consumption. This excludes direct interface between the
manufacturer and institutional buyers such as the government and
other bulk customers. A retailer is one who stocks the producer’s
goods and is involved in the act of selling it to the individual consumer, at a
margin of profit. As such, retailing is the last link that connects the individual
consumer with the manufacturing and distribution chain. Some of the key
features of retailing include:

*Selling directly to customers without having any intermediaries

•Selling in smaller units / quantities, breaking the bulk
•Present in neighborhood or in the location which is quite convenient to the
customers.
•Very high in numbers
•Recognized by their service levels
•Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in

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

RECENT TRENDS

• Retailing in India is witnessing a huge revamping exercise as can

be seen in the graph
India is rated the fifth most attractive emerging retail market: a
potential goldmine.
• Estimated to be US$ 200 billion, of which organized retailing (i.e.
modern trade) makesup 3 percent or US$ 6.4 billion
• As per a report by KPMG the annual growth of department stores
is estimated at 24%
• Ranked second in a Global Retail Development Index of
30 developing countries drawn up by AT Kearney

Retailing in India: the present scenario

The present value of the Indian retail market is estimated by the India
Retail Report to be around Rs12,00,000 crore ($270 billion) and the
annual growth rate is 5.7 percent. Retail
market for food and grocery with a worth of Rs. 7, 43,900 crore is the
largest of the different types of retail industries present in India.
Furthermore around 15 million retail outlets help India win the crown
of having the highest retail outlet density in the world. The
contribution of retail sector to GDP has been manifested below:

Country Retail Sector's share in GDP (in %)India 10

USA 10China 8Brazil 6As can be clearly seen, retailing in India is
superior to those of its contenders. Retail sector isa sunrise industry in
India and the prospect for growth is simply huge. There are many
factors that have stimulated the rise of the shopping centers and
multiplex-malls in a jiffy. Some of them can be listed as follows:

Rise in the purchasing power of Indians-

The rise in the per capita income in the last few years has
been magnificent. This has led to the generation of insatiable
wants of the upper and middle class. The demand of new as
well as
second hand durables has risen throughout the country thus providing
the incentive for taking up retailing.

Favorable to farmers- retailing has helped in removing the middlemen

and has thus enhanced the remuneration to farmers. This is a new
revolution in the agricultural sector in India and will go a long way in
amending the condition of agriculture, a major concern among policy
maker Use of credit- a typical Indian is most conversant with using
credit cards than carrying money. These have led to a shift of the
consumer base towards supermarkets and make the payments in the
form of credit.

Comfortable Atmosphere-
a visit to a retail store appears to be more soothing for the generation-
Y. People and kids prefer to shop in an air conditioned a tech savvy
manner. The retail industry is the second largest employer in India. It
currently employs about7 percent of the total labor force in India.
Finance Minister P. Chidambaram's recent statement “salaries ought
not to be legislated” is a welcome move as most of the organized
retail is in private hands. How ever only about 4.6% of the
total retail trade is in organized sector. It generates about Rs.55,000
crore ($12.4 billion). The major and minor players desperately need
to work hard in this direction so that next time the figures look more
decent. The government must also make an attempt to ameliorate the
situation as political instability and infrastructure namely power and
roads are the major roadblocks in the path of smooth functioning of
the market.

Components of Retail Sector

The major components of the retail sector are:
Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer
Durables, Apparel, Footwear and leather, Watches, Jewellery and
Health and Beauty The anatomy of the retail market has shown that
the clothing and textiles constitutes 39 per cent of the organized
retail pie, followed by food and grocery, which accounts for 11
percent of the total retail market. However, according to the survey
conducted by KPMG for Federation of Indian Chamber of Commerce
and Industry (FICCI), among these, the food and grocery is expected
to witness the fastest growth followed by clothing as the second-

fastest growing segment.

Objectives of the study

•To understand the different marketing strategies being followed
by Vishal Mega Mart.

•To learn their marketing mix.

Marketing help to define the business for the customer's interests, not
your own. It is the process of learning what customers want or need
and determining how to satisfy those wants or needs. Itis also used
to confirm whether the customer reacted to a marketing
program as expected. The benefits of market research include:
Learning who your customers are and what they want.
L e a r n i n g h o w t o r e a c h y o u r c u s t o m e r s a n d
H o w f r e q u e n t l y y o u s h o u l d t r y t o communicate
with them
Learning which advertising appeals are most effective and which
ones get no response.
Learning the relative success of different marketing strategies, thus
improving return on investment.
Learning how not to repeat your mistake

LIMITATION OF THE STUDY

Although it would have been nice to conduct a perfect research study,
but this study is
conductedu n d e r c e r t a i n l i m i t a t i o n s , w h i c h w
ere faced while doing this research. So it
i s h i g h l y recommended to consider these limitations while
going through the project [Link] limitations are as follows

[Link] OF DATA
The statistical data regarding the city was not available to us on
secondary source of data and to generate such data on the primary
source was a task, which cannot be achieved in such a short time.
2 L I M I T A T I O N O F T I M E
The limitation of time was another constraint in the
s t u d y a s t h e s t u d y h a d t o b e conducted in few months
therefore many aspects have been left unexplored.
Research p e r i o d i s n o t j u s t m u c h e n o u g h t o k n o w f
u l l y a b o u t t h e s t r a t e g i e s & c o n s u m e r s perception

3. INHIBITIONS OF THE RESPONDENTS

The respondents did not reply the question with precision as
they were busy with their o w n w o r k o r t h e y w e r e n o t
interested in taking part in such a research. Employees
sometimes feel hesitated while telling about their view about their
marketing strategies.
4. RESEARCH HAS BEEN CONDUCTED IN A LIMITED
AREA
The research has been conducted for the Vishal m
e g a m a r t ( S h a s t r i N a g a r G a r h Road,Meerut) but not
all their retail outlet have been covered therefore it
h a s b e e n mentioned that the research has been conducted in a
limited area.
5. THE SAMPLE SIZE IS SMALL
The sample size taken for this thesis is small; it may not
actually represent
the whole p o p u l a t i o n . T h e d a t a c o l l e c t e d w e r e t o t a l l y d e
p e n d i n g o n t h e r e s p o n d e n t ’ s v i e w s , perception, behavior,
psychology related to particular scheme which could base in nature
These limitations were very common and yet we came across
these with a positive note a n d t h e s u b s e q u e n t
chapters in this report shall explain the rationality
b e h i n d t h e structural compilation.