CHAPTER 1 INTRODUCTION

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 specific product, service, or business. 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 information and 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 2

owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand 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-andadvertising 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 for go.com.

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 also brand 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-ofmind 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. 4

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.

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 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 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.

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.

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 8

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 selfservice 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.

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 forth coming 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 serve masses, 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:Value of points Value of Points on other than FMCG FMCG

Shop for Rs.

Type of Card

Stage- 1 2,000 Stage- 2 5,000 Stage- 3 10,000 Stage- 4 20,000 Stage- 5 50,000

Temporary Card

40

20

Permanent card

200

50

Permanent card

600

100

Permanent card

1600

200

Permanent card

5000

500

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 Dinner
Free two air tickets for the member shopped above Rs. 50,000/( Under Yearly Lucky draw ) 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 Music CD Discount on special occasions Members Day

Free one way auto rickshaw fare to the members. ( for full day ) Free Music CD with permanent card worth Rs. 60/If any member makes purchase on special Occasion i.e. Birthday / Anniversary will get special discount of 10% ( Up to Rs. 1000/- ) 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 Modes of Information

Member will get 20 points for an add-on card as the add-on card member achieve Rs.2000/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 SIS Partner will pay the salary for the staff required at its counter The Sales Person will be provided by the Outlet Owner

The Sales force required may also be shared as:

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The Sales Person will be provided by the Outlet Owner, but salaries will be paid by the SIS Partner. Stocks Replacement and replenishing of stocks will be responsibility of SIS Partner.

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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 the company 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 25

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 procure FMCG and apparels from low-cost production centers located outside India. Towards this objective, VRPLs propose to increase their procurement of finished and semi-finished goods from China and thereby realize economies of scale and pass on the benefits so accrued to their customers.

Place
Vishal Mega Mart stores are located in 110 cities with more than 180 outlets. Vishal Mega Mart has presence in almost all the major Indian cities. They are aggressive on their expansion plans. VRPL intend to increase their penetration in the country by setting up new stores in cities where they already have presence, as also entering into new areas in the country. In particular, they intend to focus on expansion in Tier II and Tier III cities. VRPL target locations with good infrastructural facilities such as easy accessibility, provision for water, electricity, parking, security and other basic amenities. 27

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 of the agreement. As a part consideration, VRPL had issued 1,670,605 Equity Shares of Rs. 10 each and 384,190 Preference Shares of Rs. 146 each amounting to an aggregate of Rs. 300 million.

Strong understanding of the value retail segment

VRPLs business 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 28

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 theoretical

To get the Practical Interface of Industry by applying 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 AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009. As per a study 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 by 2010. With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail sector is clocking an annual growth rate of 30 per cent. It is projected to grow to US$ 700 billion by 2010, according to a report by global consultancy Northbridge 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 the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market has moved up to 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. Foreign direct investment (FDI) inflows as on September 2009, in single-brand retail trading, stood at approximately US$ 47.43 million, according to the Department of Industrial Policy and Promotion (DIPP). India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion 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 the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organized retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013.

The organized retail sector, which currently accounts for around 5 per cent of the Indian retail market, is all set to witness maximum number of large format malls and branded retail 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 the retail sector with their huge growth potential. Further, this sector is expected to invest around US$ 503.2 million in retail technology service solutions in the current financial 33

year. This could go further up to US$ 1.26 billion in the next four to five years, at a CAGR of 40 per cent. Moreover, many new apparel brands such as Zara, the fashion label owned by Inditex SA of Spain, UK garment chain Top shop, the Marc Ecko clothing line promoted by the US entrepreneur of the same name and the Japanese casual wear 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 quarter compared 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 new facts 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 has led 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.

38

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

39

SAMPLE SIZE
The method used for sample technique was non probability convenience sampling method. This method was used because it was not know previously as to whether a particular person will be asked to fill the questionnaire. Convenient sampling is used because only those people were asked to fill the questionnaires that were easily accessible and available to the researcher. 100 customers.

I have used Percentage Analysis in my research

40

CHAPTER 4 RESULT

41

DATA ANALYSIS & INTERPRETATION

STRONG DISAGR LY EE DISAGR EE Price is the major factor which 0 0 influences you to switch over other retail brands. QUESTION NO.1 NEUTR AL 5 AGREE STRONG LY AGREE 75

20

S TRONGL DIS Y AGREE

DIS AGREE

NEUTRAL

AGREE

S TRONGL AGR Y EE

S TRONGL Y DIS AGREE 0% DIS AGREE 0% NEUTRAL 5% AGREE 20%

S TRONGL Y AGREE 75 %

Interpretation: 75% of respondents strongly agree that price is the major factor which influences customer

42

QUESTION NO.2

Retail chain control prices.

SR T ONG D AG E LY IS R E

STRONG DISAGR LY EE DISAGR EE 0 9

D AG E IS R E NE R UT AL AG E RE

NEUTR AL 11

AGREE

STRONG LY AGREE 16

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SR T ONG AG E LY R E

SR T ONG AG E LY R E 16% SR T ONG D AG E LY IS R E 0% D AG E IS R E 9% AG E RE 64%

NE R UT AL 11%

Interpretation: 64% respondents agree that retail chain control prices.

43

QUESTION NO.3

Price in retail chain is important

STRONG DISAGR LY EE DISAGR EE 1 3

NEUTR AL 36

AGREE

STRONG LY AGREE 17

43

44

S ONGL DIS TR Y AGR EE

D AGR IS EE

NEUTR AL

AG EE R

S ONGL AGR TR Y EE

S TRONGL AGREE Y 17%

S TRONGL DIS Y AGREE 1% DIS AGREE 3%

AGREE 43%

NEUTRAL 36%

Interpretation: 43% respondents agree that price in retail chain is important, while 36% respondent are neutral.

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QUESTION NO.4

Higher the price, quality of goods.

higher

STRONG DISAGR LY EE DISAGR EE the 4 6

D AGR E IS E NE R UT AL AGR E E

NEUTR AL 17

AGREE

STRON GLY AGREE 13

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SR T ONGL D AGR E Y IS E

SR T ONGL AGR E Y E

S R NG DIS T O LY AGR E E 4% S R N YAGR E T O GL E 13% DIS AGR E E 6% N UT AL E R 17%

AGR E E 60%

58% respondents agree that higher the price, higher the quality of goods.

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STRONG DISAGR LY EE DISAGR EE Lower the price, lower the quality 0 11 of goods.
SR T ONG D AG E LY IS R E D AG E IS R E NE R UT AL

QUESTION NO.5

NEUTR AL 22

AGR EE 43

STRONG LY AGREE 24

AG E RE

SR T ONG AG E LY R E

SR T ONG D AG E LY IS R E 0% SR T ONG AG E LY R E 24% D AG E IS R E 11% NE R UT AL 22%

AG E RE 43%

Interpretation: 43% respondents agree that lower the price, lower the quality of goods.

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QUESTION NO.6

Lower the price, quality of goods.

higher

STRONG DISAGR LY EE DISAGRE E the 46 30 D AGR IS EE NEUTR AL

NEUTR AL 10

AGR EE 14

STRONG LY AGREE 0

S ONGL D AGR TR Y IS EE

AG EE R

S ONGLYAG EE TR R

NE R UT AL 10%

LY R E AG E S R R E T ONG AG E 0% 14% SR T ONG D AG E LY IS R E 46%

D AG E IS R E 30%

Interpretation: 46% respondents strongly disagree that lower the price, higher the quality of goods.

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STRONG DISAGR LY EE DISAGR EE Price perception has a significant 0 6 impact on consumer satisfaction.

QUESTION NO.7

NEUTR AL 19

AGR EE 56

STRONG LY AGREE 19

S RONGL DIS T Y AGREE

DIS AGRE E

NE RAL UT

AGRE E

S RONGL AGRE T Y E

D AG E IS R E 6% SR T ONG D AG E LY IS R E 0% SR T ONG AG E LY R E 19%

NE R UT AL 19%

AG E RE 56%

Interpretation: 56% respondents agree that price perception has a significant impact on consumer satisfaction.

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STRONG DISAGR LY EE DISAGRE E Shopping at retail store is a 0 1 status symbol these days. S ONGL D AGR TR Y IS EE D AGR IS EE NEUTR AL AGR EE

QUESTION NO.8

NEUTR AL 9

AGR EE 77

STRONG LY AGREE 13

S ONGL AGR TR Y EE
SR N T O GLYAGR E E 13% SR N T O GLYD AGR E IS E 0% D AGR E IS E 1% NE R UT AL 9%

AGR E E 77%

Interpretation: 77% respondents agree that shopping at retail store is a status symbol these days.

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STRONG DISAGR LY EE DISAGR EE Prices in retail store tempt me to 2 10 purchase more than required. S ONGLYD AG EE TR IS R D AGR IS EE NEUTR AL

QUESTION NO.9

NEUTR AL 9

AGR EE 67

STRONG LY AGREE 12

AGR EE

S ONGLYAG EE TR R

S O GL A EE TR N Y GR 1% 2 A EE GR 6 7% S O GL TR N Y DIS GR A EE 2% DIS GR A EE 1 0% N EUTR L A 9%

Interpretation: 67% respondents agree that prices in retail store tempt me to purchase more than required.

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STRONG DISAGR LY EE DISAGR EE Prices at organized retail store 1 2 are consumer satisfactory
S NGL DIS GREE TRO Y A
NEUTRAL 3% DIS AGREE 2% S TRONGL DIS Y AGREE 1% S TRONGL AGREE Y 11 %

QUESTION NO.10

NEUTR AL 3

AGR EE 83

STRONG LY AGREE 11

DIS GREE A

NEUTRA L

A GREE

S NGLYA TRO GREE

AGREE 83%

Interpretation: 83% respondents agree that prices at organized retail store are consumer satisfactory.

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Age group Age groups 25yrs- 35 36 yrs yrs 45yrs 67

2 yrs 3 y 5 - 5 rs 3 yrs- 4 yrs 6 5

46 55 yrs 6
a bove 5 yrs 5

above 55 yrs 4

23
4 5 yrs 6 5 3 y - 4 yrs 6 rs 5

4 5 yrs 6 5 a bove 5 yrs 5

2 yrs- 3 yrs 5 5

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

53

Education qualification Education Illiterate qualificati on Observati ons 0 School UG PG Others

46

54

Illitera te

S hool c

UG

P G

Profes iona C s l ours e

Others P rofes iona C s l ours e Others

Illitera te

P G

S hool c

UG

Interpretation: 54% respondents are PG 46% respondents are UG.

54

Occupation Occupation Observations

House wife Students Salaried person Business man Professionals Supervisor Managerial pensioner

37 42 12 0 6 2 0 1

H ouse wife Business m n a Ma g l na eria

S tudents P rofessiona ls pensioner

S la a riedperson S upervisor

pens ioner, 1 Ma g l , 0 na eria S uperv or, 2 is

H e w , 37 ous ife

Profes iona , 6 s ls B ines m n , 0 us s a S la a riedpers 12 on, S tudents , 42

55

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

57

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 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 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..

58

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.

59

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

60

CHAPTER- 6 BIBLIOGRAPHY

61

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

63

WEBBLOGRAPHY
www.vishalmegamart.com www.ril.com www.ibef.org www.moneycontrol.com www.fiber2fashion.com

64

CHAPTER - 8 QUESTIONNAIR

65

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

1 2 3 4 5 6 7 8 9 10 11 12

Question Price is the major factor which influences you to switch over other retail brands. Retail chain control prices. Price in retail chain is important Higher the price, higher the quality of goods. Lower the price, lower the quality of goods. Lower the price, higher the quality of goods. Price perception has a significant impact on consumer satisfaction. Shopping at retail store is a status symbol these days. Prices in retail store tempt me to purchase more than required Prices at organized retail store are consumer satisfactory Discounts in retail stores are important, I look for the benefit of the product for 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.25,000 c) Rs.25,001- Rs.35,000 d) Rs.35,001-Rs.45,000 e) Above Rs. 45,000

67

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.

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