Scope of Retail Industry in Tinsukia with a view of Customer Satisfaction and Service provided by Organized Retail Sector.

Project Report Submitted to (University of Pune or SIBAR)

In Partial Fulfillment of Requirement for the Award of

MMM

By

Mr. Nirmal Maheshwari

Under the guidance of

Prof. Snehal Galande

Sinhgad Institute of Business Administration and Research

2010-2012

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CERTIFICATE
This is to certify that the Project Report titled Scope of Retail Industry in Tinsukia with a view of Customer Satisfaction and Services provided by the Organized Retail Sector; which is being submitted here with for the award of Master Of Marketing Management, Pune is the result of the original research work completed by Nirmal Maheshwari under my supervision and guidance and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.

Project guide name Snehal Galande

Prof. Avdhoot Pol Director

Date:-

Place: - PUNE

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Declaration

I, the undersigned, hereby declare that the Project Report titled Scope of Retail Industry in Tinsukia with a view of Customer Satisfaction and Services provided by the Organized Retail Sector. written and submitted by me to (the University of Pune or SIBAR), in partial fulfillment of the requirement for the award of MMM degree is my original work and the conclusions drawn therein are based on the material collected by myself.

Place: - PUNE Date:

Signature: Nirmal Maheshwari

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ACKNOWLEDGEMENT It is a matter of Great Pleasure for me in submitting the project report on Scope of Retail Industry in Tinsukia with a view of Customer Satisfaction and Services provided by the Organized Retail Sector For the fulfillment of the requirement of my course from SIBAR PUNE. I am thankful to and owe a deep dept. gratitude to all those who have helped me in preparing this report. Words seem to be inadequate to express my sincere thanks to Miss Snehal Galande for his valuable guidance, constructive criticism, untiring efforts and immense encouragement during the entire course of the study due to which my efforts have been rewarded. I am highly obliged to those who had helped me to procure primary data to complete my project. Also not to be forgotten are the Lecturers of MMM who contributed their ideas and suggestions. I want to thank all who have supported me and gave their timely guidance. Last but not least I am very grateful to all those who helped me in one-way or the other way at every stage of my work.

NIRMAL MAHESHWARI

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EXECUTIVE SUMMARY OF THE PROJECT

I would like to make you well-known with my project Scope of Retail Industry in Tinsukia with a view of Customer Satisfaction and Services provided by the Organized Retail Sector with the help of executive summary. The objective of my research is to check the potential in the Tinsukia market for the enlargement of organized retail sector. Organized retail sector is the upcoming fashion of retail purchasing and it is mounting hurriedly in India. India locates itself at the 5th rank in the retail industry in whole world. Retail is the most imperative thing is to forecast where customers are moving and to be in front of it. Gone are the days when enterprise believed strongly rather wrongly that if they manufacture a product, customer would time up routinely for it. This view worked well in past, but today customer satisfaction is viewed as an integral part of total quality. In my research I have included a mixture of various key factors that persuades the retail market as well as the satisfaction of the consumers. I do faced some stumbling block while completing my project like; lack of time, lack of money etc. Company Background& Industry Overview: In this segment, I bring forth details about the Big Bazar, Vishal Mega Mart. I would also speak about the various aspects of the company as to how it grew in the hearts and minds of the masses in India and how it is trying to build an image of its own offshore as well. In the introductory chapter, I have considered about the retail industry in India. I have also told about challenges facing the Indian organized retail sector and the profile of the company like Big Bazar, Vishal Mega Mart. I have also focused up on the study that which company product mainly uses by customer. With all data analysis and interpretation I have recommend some key issues where two Giant players Big Bazaar an Vishal Mega Mart of Retail Industry have to work on.

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TABLE OF CONTENTS

1. Introduction 2. Objectives 3. Methodology 4. Company Profile 5. Literature survey 6. Data presentation and Interpretation 7. Conclusions 8. Limitations / future scope 9. Recommendations 10. Bibliography 11. Annexure

2 4 6 11 18 23 40 42 44 46 48

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LIST OF FIGURES Sr. no.

1

Particulars
Size & Position of retail industry in the current Scenario- Bar Chart Current Size & Future growth of Organized Retail in India- Bar Chart Choice of Organized retail organization- Pie Chart Income level of the respondents- Pie Chart Visits of the respondentsPie Chart Fulfillment of needs- Pie Chart Economical- Pie Chart Recommendations of retail organizations by respondents- Pie Chart Cheated or not- Pie Chart Satisfaction- Pie Chart Better organized retail organization in TinsukiaPie Chart Rating- Pie Chart Comparison between Organized retail & Unorganized retail organization- Pie Chart Need of any other Organized retail organization in TinsukiaPie Chart Further improvement- Pie Chart

Page no.

3 4 5 6 7 8

9 10 11

12 13

14

15

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List of Tables
Sr. no. 1 2 3 4 5 6 7 8 Particulars Global retail industry: an overview Percentage of Organized Retail Choice of Organized retail organization Income level respondents of the Page no.

Visits of the respondents Fulfillment of needs Economical Recommendations of retail organizations by respondents Cheated or not Satisfaction Better organized retail organization in Tinsukia Rating Comparison between Organized retail & Unorganized retail organizations Need of any other Organized retail organization in Tinsukia Further improvement

9 10 11 12 13

14

15

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Chapter 1 INTRODUCTION

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Tinsukia is a border area of upper Assam and the economy of this town is booming up very fast. As the people of Tinsukia are from different background they are engaged in different activities. As the economy of this town has boomed up to a large scale as compared to many other districts of Assam, new sectors, new companies are moving towards this place in a good pace. Like u can find almost 10 to 12 banks or more in Tinsukia. The living standards of the public of this region are also increasing at a good rate. They are trying to get the standards of other big cities. With the increasing need for various products the organized retail sector entered into this town. At present there are two big players of retails industry are providing their services to the public of this town. The first organized retail organization who came into this town was Vishal Mega Mart in the year 2008. After that in the year of 2009 Big Bazar also joined the market of Tinsukia and increased the competition for the already established Vishal Mega Mart. But on the whole these two big organizations are hitting very badly to the unorganized retail sectors business.

Retail

Retail comes from the French word retaillier which refers to cutting off, clip and divide in terms of tailoring(1365). It first was recorded as a noun with the meaning of a sale in small quantities in 1433(French). Its literal meaning for retail was to cut off, shred, paring. Like the French, the word retail is both Dutch and German (Detailhandel and Einzelhandel respectively) also refer to sale of small quantities of items. In simple terms, it implies a firsthand transaction with customer.

Retailing
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities
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from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing.

Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by customers at prices that are competitive and affordable. Retailing involves a direct interface with the customers and the coordination of business activities from the stage of a product offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.

Retail pricing
The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not clearly displayed, there can be price discrimination, where the sale price is dependent upon who the customer is. For example, a customer may have to pay more if the seller determines that he or she is willing and/or able to. Another example would be the practice of discounting for youths, students, or senior citizens.

Retailer

The term retailer means a merchant who sells goods at retail, a retail sales company or salesman.
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Customer Service and Satisfaction

According to the book Discovery-Based Retail, customer service is the "sum of acts and elements that allow consumers to receive what they need or desire from your retail establishment." It is important for a sales associate to greet the customer and make himself available to help the customer find whatever he needs. When a customer enters the store, it is important that the sales associate does everything in his power to make the customer feel welcomed, important, and make sure he leave the store satisfied. Giving the customer full, undivided attention and helping him find what he is looking for will contribute to the customer's satisfaction.

HISTORY OF RETAILING
Retail chain stores in the United States expanded in the early 1900s, but A&P grocery, Woolworths and sears Roebuck had their origins in the late 1800s. in the early 1900s, mailorder companies began taking retail business from local store, which tended to be expensive and offer limited selection. Department stores also expanded during this period, taking business from small specialty shops. In 1929, North Carolina and Indiana taxed chain store (defined as a second store owned by a single owner), and other states followed. The first shops in the modern sense used to deal with just one type of article, and usually adjoined the producer (baker, tailor, cobbler). In the 19th century, in franc, areades wewe invented, which were a street of several different shops, roofed over counters, each dealing with a different kind of article was invented; it was called a departmental store. One of the novelties of the department store was the introduction of fixed prices, making haggling unnecessary and browsing more enjoyable. This is commonly considered the birth of consumerism. In cities, these were multi-storey buildings which pioneered the escalator. In the 1920s the first supermarket opened in the United States, heralding in a new era of retail: self service. Around the same time the first shopping mall was constructed which incorporated elements from both the arcade and the department store. A mall consists of several department stores linked by arcades (many of whose shops are owned by the same firm under different names). The design was perfected by the Austrian architect Victor Gruen.

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GLOBAL RETAIL INDUSTRY: AN OVERVIEW

Retailing in developed countries is a big business and better organized than what in India. According to a report published by McKinsey & Co. along with the Confederation of the Indian Industry the global retail business is worth staggering US $ 7 trillion. The service sector accounts for a large share of GDP in most developed economies. And the retail sector forms a very strong component of the Wall-Mart Carrefour The Home Depot, Inc Tesco Metro The Co. Target Corporation Costco Wholesale Corporation Sears Holdings Corporation Schwarz Unternehmens Treuhand KG (Source: Deloitte Touche Tomahatsu) as on 10/3/08 Germany 10 52.4 12% US 9 53.0 8% US 8 59.0 11.6% US 7 59.5 8.3% UK Germany Kroger US 4 5 6 80.0 74.9 66.1 12.5% 4% 5.7% US France US 1 2 3 Top 10 Retail Companies Country of Origin Rank 2006 Retail CAGR 2001-

sales (US 2006 $ million) 345.0 97.9 90.8 11.1% 2.3% 11.1%

service sector. In short, as long as the people need to buy, retail generates employment. Globally, customer retailing centric is with a an

emphasis on innovation in products, services. With total sales of US $ 7 trillion, retailing is the worlds largest private industry, ahead of engineering and finance. Retail has played a major role world over in increasing processes, and

productivity across a wide range of consumer goods and services. The impact can be best seen in the countries like U.S.A., U.K., Thailand and more recently

china. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are
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also heavily assisted by the retail sector. Retail is the second largest industry in the US both in the no. of establishments and no. of employees. Wal-Mart is the Worlds largest retailer. Wal-Mart has become the most successful retail brand in the world due to its ability ti leverage size, market clout, and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500 companies in the world.

GROWTH OF RETAILING
Retailing is one of the pillars of the economy in India and accounts for 35% of GDP. The retail industry is divided into organized and unorganized sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. In India, a shopkeeper of such kind of shops is usually known as a dukandar. Most Indian shopping takes place in open markets and millions of independent grocery shops called kirana. Organized retail such supermarkets accounts for just 4% of the market as of 2008. An increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. The organized retail market is growing at 35 percent annually while growth of unorganized retail sector is pegged at 6 percent. The Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and it is valued at about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years. India has topped the A.T. Kearneys annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail
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investment. The Indian economy has registered a growth of 8% for 2007. The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country. With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011, India will need additional retail space of 700,000,000 sq ft (65,000,000 m2) as compared to today. Current projections on construction point to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving a gap of 500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of US$1518 billion. According to the Icrier report, the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.

Leading Indian Retailers

Bata India Ltd, Big Bazaar, Crossword, Ebony Retail Holdings Ltd., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries, Reliance Retail Ltd, Wal-Mart Stores, Trent and the new entrants penetrating the market soon will include Carrefour, Tesco, Boots Group, etc.

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Major Retailers in India Pantaloon

Pantaloon is one of the biggest retailers in India with more than 450 stores across the country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located across the country. It's growing at an enviable pace and is expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket Big Bazaar. It has the following retail segments:
y y y y y y y y

Food & Grocery: Big Bazaar, Food Bazaar Home Solutions: Hometown, Furniture Bazaar, Collection-i Consumer Electronics: e-zone Shoes: Shoe Factory Books, Music & Gifts: Depot Health & Beauty Care: Star, Sitara E-tailing: Futurebazaar.com Entertainment: Bowling Co.

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book and music retailer in India Landmark in 2005. Trent owns over 4 lakh sq. ft retail space across the country.

RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it came into food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the pharmacy and beauty care outlets Health & Glow.

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Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in other segments of retail. It will invest Rs. 8000-9000 crores by 2010

Current Scenario
A glimpse of the International Retail One of the world's largest industries exceeding US$ 9 trillion 47 global fortune companies & 25 of Asia's top 200 companies are retailers Dominated by developed countries US, EU & Japan constitute 80% of world retail sales. Biggest player in India is Pantaloon Retail India Limited.

Percentage of Organized Retail

USA Taiwan Malaysia Thailand Brazil Indonesia Poland China India 85% 81% 55% 40% 36% 30% 20% 20% 3%

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Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of categories.
y

Mom-and-pop stores: they are family owned business catering to small sections; they are individually handled retail outlets and have a personal touch.

Departmental stores: are general retail merchandisers offering quality products and services.

Convenience stores: are located in residential areas with slightly higher prices goods due to the convenience offered.

Shopping malls: the biggest form of retail in India, malls offers customers a mix of all types of products and services including entertainment and food under a single roof.

y y y

E-trailers: are retailers providing online buying and selling of products and services. Discount stores: these are factory outlets that give discount on the MRP. Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks and other small items can be bought via vending machine.

Category killers: small specialty stores that offer a variety of categories. They are known as category killers as they focus on specific categories, such as electronics and sporting goods. This is also known as Multi Brand Outlets or MBO's.

Specialty stores: are retail chains dealing in specific categories and provide deep assortment. Mumbai's Crossword Book Store and RPG's Music World are a couple of examples.

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Retail Sector poised for phenomenal growth

The Indian Retail Sector, currently the fifth largest in the world, is poised for phenomenal growth in the coming years ORGANISED RETAIL EXPECTED TO GROW 35-40% CAGR

Size & Position in the current Scenario

Current Size & Future growth of Organized Retail in India

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Objective of the study

The main objectives behind the project are such as:  To know the scope of organized retail sector in Tinsukia. To find out the area where mega mart like Big Bazaar and Vishal Mega Mart can enjoy competitive advantages.

 To make a comparative analysis of retailing process.

 To judge the satisfaction level of the customers and retail outlets.

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RESEARCH METHODOLOGY OF THE STUDY

The study is based on exploratory research. For the study, personal interview was conducted with people who visited Big Bazaar and Vishal Mega Mart at least once. For collection of information a small questionnaire covering important parameters of retailing and filled up through face to face interview to the simple size of 60 people. The secondary data about retailing have been collected from different books, journals and by visiting the websites. The collected data have been analyzed by using some statistical techniques like diagrams, graphs to draw the conclusion and make it easily under stable to the users.

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Chapter 2 Literature Review And Company Background

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Review of Literature
Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects. According to the Icrier report, the retail business in India is estimated to grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganized retail sector is expected to grow at about 10% per annum with sales expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12 According to management consulting firm Technopak Advisor Pvt. Ltd., the Retail Business in India is currently at the point of inflection. Rapid change with investments to the tune of US $ 25 billion is being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size; it is valued at about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years.

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RETAILING IN TINSUKIA
Retailing in Tinsukia has a long history. The town which is located in eastern part of the state developed as one of industrial town. With the development of the township organized retailing stated by the indigenous people and some migrated people of the other part of the country to supply essentials to the local people and people engaged in tea and oil industry. Now, the town has two huge stores of such big mage store: Big Bazaar and Vishal Mega Mart.

BIG BAZAAR, TINSUKIA

Big Bazaar is a chain of departmental stores in India, currently with 100 outlets. It is owned by the Pantaloon Retail India Ltd., Future Group. It works on the same economy model as Wal-Mart and has considerable success in many Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Big Bazaar scores over other stores, is its value for money propositions for the Indian consumers. Type Founded Headquarters Industry Products Store Manager Owner Parent Punch-line Subsidiary of Pantaloons Group January 18, 2009 Mumbai, India Retail Departmental store, Grocery store Ansuman Mishya Kishore Biyani Pantaloons Group Is se sasta aur kahi nahin

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At Big Bazaar, we will definitely get the best products at the best prices- that are what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and other general merchandise including home furnishing, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete our shopping experience. Big Bazaar, at Tinsukia, is located at about 24000 sq. feet area. It is a two storey block with underground parking facility for vehicles. It has proved a boon for the society and the city. It has captured a huge market because of its several nice features like Quality, Service, Price Range, Huge Product Range, etc. Presently there are 54 staffs are working full time with their full efficiency and providing the store with huge output. The sales have increased a lot. Staffs get remuneration of minimum Rs. 3,500 as the new staff joining as a trainee. And as the time gets passed the salary gets increased from level to level. Employees have two shifts of working. One from 9.30 am to 7.30 pm and the other at 10.30 am to 9.00 pm. Out of the seven days, employee can take a holiday of one day (excluding Saturday and Sunday) every week. On Saturday and Sunday, employees have to work for full day as maximum number of customers visit on those days. Big Bazaar, as opened on January 18, 2009, has helped a lot in the development of the area. It is located at Rangagora Road at the Aditya Commercial Complex. The complex is not exactly not located in the market. But after the opening of Big Bazaar, the area has developed a lot. Transportation Facility has increased. After its opening, the area is one of the busy areas of the Tinsukia Town. At Big Bazaar, customers can pay through their credit card, debit card, cash, etc. but credit facility is not available. It provides home delivery of the items ordered through telephone. On delivery payment is accepted only through cash. It also accepts the goods and products returned within 7 days in the condition as it was sold. Big Bazaar in lien of customer support, offers various exiting offers to the customers. These offers are really valuable for both the Big Bazaar and the people in general. Due to various lucrative offers, customer gets attracted and purchase goods. And on the other hand the sales of the store increase. These offers are really beneficial for the customer.
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The product range of Big Bazaar, Tinsukia is as follows:  Apparel y y y  Cameras  Computers  Electronics y y y Accessories Audio & video MP3 Mens wear Accessories Womens wear

 Bags & luggage

 Gift vouchers  Health & fitness y y  Jewellery  Memory & storage  Movies y y y  Watches  Home kitchen y y y y y Barware Home Appliances Home Linen Kitchen Appliances Tools & Hardware
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Personal Care Infant Care

Hindi English Regional

 Toys & Games

Kitchen Ware       Cookware Kitchen Utilities Serve Ware Storage & Containers Microwave ware Pressure Cooker

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VISHAL MEGA MART, TINSUKIA

Founded Industry Products Manager Owner Punch-line 2007 Retail Departmental store, Grocery store Kapil Saikia Ram Chandra Agarwal Save More, Spend Less

Future is thinking beyond horizons and in order to keep its pace with the modern retail, Vishal Retail Limited is spreading its wings. Instead of resting on its laurels the group are busy identifying new avenues of growth by venturing in other formats like cash & carry, as well as specialty stores and inspiring local retailers to grow along with its big names. Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hypermarket stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of more than 172 fully integrated stores in spread of more than the area of 24,00,000 sq.ft. in 110 cities across India in 24 states. The turnover of the company for 09-10 was 1105 crore. According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group owes its origin o a small 50 sq.ft. shop in Kolkatas Lal Bazaar that started selling readymade garments. In tune with the pulse of the market, he envisioned a mega store that would sell garments at prices none other could match. The first big store opened in Calcuttas Esplanade area in 1997, under the banner of Vishal Garments. He has involved in all aspects of the business: right from sourcing the garments to interacting with customers. And this led to his greatest findings The Vishal Group After identifying the immense market in fashion garments for the masses, he moved to Delhi in 2001 and opened his first store in Delhis Rajouri Garden by the name of Vishal Mega Mart (The jewels in Vishal Groups crown) and then there was no looking back for Mr. Ram Chandra Agarwala. At present, in addition to garments, Vishal Mega Mart stores retail the entire range of
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household products, FMCG and electronics goods. Vishals prices are roughly 15 to 20 percent less than other mass market garment labels. Vishal, at Tinsukia, is located at about 15,000 sq. ft. area. It is a two storey block with parking facility for vehicles in the front. It has captured a huge market because of its several nice features like Quality, Service, Low Prices, Huge Product Range, etc. Presently there are 70 employees working full time with their full efficiency and proving the store with huge output. The sale has increased a lot. Employees get remuneration of Rs. 3100. The salary is credited into their respective bank accounts directly every month. And as the time gets passed the salary increases based on the experiences and the productivity of the employee. The sub-employees appointed under the employees get salary of Rs. 2600 in cash. Employees have two shift of working. One from 9.00 am to 6.30 pm and the other at 1.30 pm to 9.00 pm. Out of the seven days, employees can take a holiday of one day (excluding Saturday and Sunday) every week. On Saturday and Sunday, employees have to work for full day from 9.00am to 9.00 pm as maximum number of customers visit on these days. Vishal has helped a lot more in the further development of the area. It is located at G.N.B. Road. The complex is located in the market area. Earlier there was slow flow of traffic in this area. But after its opening, the area is one of the busiest areas of the Tinsukia town. Moreover, it also connects to the national Highway No.37. At Vishal customers can pay through their credit card, debit card, cash, etc. but credit facility is not available. It provides home delivery of the items ordered through telephone. On delivery, payment is accepted only through cash. It also accepts the goods and products returned within 7 days in the condition as it was sold. Vishal, in lien of customer support, offers various exiting offers to the customers. These offers are really valuable for both the Vishal and the people in general. Due to various lucrative offers, customer gets attracted and purchase goods. And on the other hand the sales of the store increase. These offers are really beneficial for the customer.

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The product range of Vishal, Tinsukia is as follows:  Garments y y y y y Men Ladies Boys Girls Infants

 Home Furnishing y y y y y  Foodmart y y y y y Beverage Cooked Indian Cooked Chinese Drinks Fruits & Vegetables Bedroom Drawing Room Kitchen Bathroom Covers

 Household, etc. y y y y y Thermoware Cleaning Aids Plastic Aids Kitchen Wares Appliances, etc

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Chapter 3 Data presentation and Interpretation

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1. Which Organized retail organization you choose for purchases in Tinsukia?

VISHAL MEGA MART 15

BIG BAZAAR

BOTH

NONE

17

22

10% 25% VISHAL MEGA MART BIG BAZAAR 36.67% BOTH NONE 28.33%

Figure 1-Choice of organized retail organization

Interpretation and Analysis In Tinsukia two big players playing in the field of organized retail; namely Big Bazaar and Vishal Mega Mart. When I interviewed and collected data with the help of questionnaire I found that 25% of the people like to visit only Vishal Mega Mart where as 28% people like to visit Big Bazaar only. But a big part wants to visit both these organized retail sector players and people who wants to visit both the retail outlets consists nearly 37% of the surveyed population, and at the same time 10% of the surveyed population dont want to purchase goods from these retail outlets. This interpretation suggests that the scope of organized retail sector in Tinsukia is very attractive because in a very short span of time both the retail outlets are getting good number of customers and that is 90% of the people want to visit these organizations.
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2. What is your income level?

Below 10000 23

10000 to 20000 16

20000 to 30000 12

30000 and above 9

15% 38.33% 20% Below 10000 10000 to 20000 20000 to 30000 26.67% 30000 and above

Figure 2-Income level

Interpretation and Analysis The next question of my questionnaire was related to the income level of the people who visit these retail organizations. I found that the people who visit these retail organizations belong to medium families. I found out that nearly 38% of the customers of these retail organizations are having a monthly income of Rupees 10000 or less than that, whereas nearly 27% of the surveyed populations belong to a class who earn between Rupees 10000 to 20000. The percentage of those people whose income is more than Rupees 20000 comprises only 35% of the surveyed population and if we once again divide this group then I found that only 15% customers earn 30000 and above and 20% of the customers have a income between Rupees 20000 to 30000.

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3. How frequently you visit these retail organizations? Once in a week 15 Twice in a week 6 Frequently 10 Occasionally 29

25% 48.33% 10% Once in a Week Twice in a Week Frequently 16.67% Occasionally

Figure 3- Visits

Interpretation and Analysis Nearly 25% of the surveyed population prefers to visit these organized retail organizations once in a week and 10% of the sample size wants to purchase twice in a week, whereas nearly 17% of the surveyed persons want to visit these organized retail organizations more frequently. But the biggest portion of the surveyed population want to spend their valuable money in these outlets occasionally, and this group of people comprises nearly 48% strength of the sample size.

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4. Do you think these organizations fulfill all your needs? Yes 26 No 22 Cant say 12

20% 43.33% Yes No 36.66% Can't Say

Figure 4- Fulfillment of needs

Interpretation and Analysis In my next question I tried to find out what people feel about these retail organizations like, are these organizations able to fulfill all needs of the customers or not? In reply to my question nearly 43% people responded in positive manner and according to them these organized retail organizations are providing all the stuffs they want. But nearly 37% of the people think in opposite side of the above group and according to them even though these retail organizations are providing a lot of varieties in their store but still all those varieties are not fulfilling all the wants of the customers. And 20% of the people said that they dont want to react on this question.

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5. Do you think organizations are economical? Yes 24 No 28 Cant say 8

13.33% 40% Yes No 46.66% Can't say

Figure 5-Economical

Interpretation and Analysis Another question of my questionnaire collected data on the economical aspect of the organized retail sector. In return to this hurdle (question) 40% of the sample size reacted in a positive manner for organized retail sector and according to them they save money by purchasing at these organized retail sector or on these organizations. While nearly 47% people do not support organized retail sector and according to them organized retail sector is not an economical option to purchase, whereas 13% people of the sample size contradict both the above views and according to them both organized and unorganized retail sector charge in same manner and they cant comment that which is a good option for purchase.

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6. Do you recommend these retail organizations to your friends and relatives for their purchase? Yes 38 No 22

36.66%

Yes 63.33% No

Figure 6-Recommendation of retail organization

Interpretation and Analysis I found out that nearly 2/3 of the surveyed population recommend these retail organizations to their family members, friends, and other relatives for their purchase but nearly 37% of sample size, after experiencing the services and products of these organizations dont want that his or her relatives, friends or family members visit these organized retail organizations for their further purchases, this group is more happier with the unorganized sector of retailing industry.

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7. Have you ever cheated with the products of these retail organizations? Yes 15 No 35 Cant Say 10

10

15

Yes No Can't say 35

Figure 7-Cheated or not

Interpretation and analysis In return to my question which asked that have they ever feel cheated with products of these retail organizations? A group of 25% of the surveyed population replied yes and they said products are not of a satisfactory level. While nearly 58% people believe that these retail organizations never let them feel as cheated. And approximately 17% of the sample size was unable to or dont want react to this question.

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8. Are you satisfied with the services provided by these organizations? Yes 35 No 17 Cant say 8

13.33%

28.33% 58.33%

Yes No Can't say

Figure 8-Satisfaction

Interpretation and analysis To this question they replied very strongly in favour of these organized retail outlets. Out of the total sample size nearly 58% are fully satisfied with the overall performance of organized retail sectors services in Tinsukia, whereas 28% of the sample size contradicts the above view and according to them the goods and services provided by these organized retail sectors players are good but not of a satisfactory level. And there was a portion of 13% of the people who neither believe in yes nor want to go with a no.

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9. Which retail organization in Tinsukia is better? VISHAL MEGA MART 20 BIG BAZAAR 24 NONE 16

26.67%

VISHAL MEGA MART 33.33% BIG BAZAAAR NONE

40%

Figure 9-Better retail organization in Tinsukia

Interpretation and analysis The next question of my questionnaire was related to comparing the existing players of organized retail sector in Tinsukia. 20 people of the sample size which comprises nearly 33% of the pie chart went for Vishal Mega Mart and 40% of the surveyed population believes that Big Bazaar is a better option to purchase as compare to the Vishal Mega Mart, where as nearly 27% of the sample size thinks that both outlets are not good.

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10. Rate the services provided by these retail organizations? Very Bad 5 Poor 10 Fair 24 Good 18 Excellent 3

5% 30%

8.33% 16.67% VERY BAD POOR FAIR GOOD 40% EXCELLENT

Figure 10-Rating

Interpretation and analysis The next question dealt with the rating to these retail organizations on basis of their overall performance. There were five options, nearly 8% of the sample size rated these organizations as VERY BAD; approximately 17% of the surveyed population went for the next option which was POOR, whereas 40% of the population believes that these organized retail sector players deserve a rating FAIR. The next option was GOOD and 30% of the total surveyed population went for this option. And only 5% of the sample size believes that these organized retail sector players are EXCELLENT.

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11. Do you think the organized retail sector is better than the unorganized (local retailers) retail sector? Yes 30 No 19 Cant Say 11

18.33%

50% Yes 31.67% No Can't Say

Figure 11-comaprison between organized retail sector v/s unorganized retail sectors

Interpretation and Analysis 50% of the surveyed population believes that organized retail sector is better than the unorganized retail sector but nearly 32% of the sample size still relies on the local vendors and unorganized retailers. According to them it is better and safe to purchase from local vendors as compare to the organized retail sector players. While nearly 18% of the people dont want to react on this particular topic.

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12. Do you need any other retail organization in Tinsukia? Yes 27 No 22 Cant say 11

18.33% 45% Yes No 36.67% Can't say

Figure 12-Need of any other organized retail organization in Tinsukia

Interpretation and Analysis In my next question, which was asking to sample size about their view on some other retail outlets; like do they want any other organized retail sector player in Tinsukia or not? In reply to this 45% of the surveyed population want more organized retail outlet over there at Tinsukia, whereas nearly 37% people dont want any other new organized retail sector player in Tinsukia, because according to them all retail outlets are more or less same and the services and goods provided by all retail organizations are more or less of similar kind. And nearly 18% of the people wished not to comment.

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13. Do you want any further improvement in the services provided by these retail organizations? Yes 31 No 10 Cant say 19

31.67%

51.67%

Yes No

16.67%

Can't Say

Figure 13-Further improvement

Interpretation and Analysis The last question of my questionnaire was asking about the further improvement in the services and products of the organized retail sector. While in return to this question I found out that nearly 52% of the sample size want further improvement in the overall performance of these organized retail sector players in Tinsukia. According to them there is always a scope of further improvement in any field. But nearly 17% of the sample size is satisfied with the current scenario of these organized retail sector players, they dont see any further improvement in the operations of these retail organizations. And once again there were some people who wished not to react on this topic and this time this group comprises nearly 32% of the total sample size.

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Chapter 4 Findings, Suggestions and conclusion

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Findings and suggestion

1. In a sample size of 6o person, 54 person visit at least one of the organized retail sector organization for their purchase, and it means 90% of the population is aware about the existence of the those big players of organized retail industry. But still there is a scope in front of the big giants of retail industry to increase their customer list. By giving more lucrative offers and promotion of the store to some interior areas of the town they can increase their consumer.

2. The another big finding of this research is that, these organized retail outlets have more customers from lower income group, like 65% of the customers (according to the sample size) of these retail organizations have a monthly income of Rupees 20000 or less. So, these retail organizations should try to attract the higher class families to their stores too, because the higher income families have more money to spend or the need of higher income families are more because of their living standard as compared to the lower income families. The higher income group is still relied on their local vendor to whom they know very well and they feel safe to transact with them. If these retail organizations become able to get the attention of the higher income group then it will result in more sales and it will generate more revenue for retail organization.

3. 73% of the sample size visits these retail outlets once in a week or occasionally. If we take it separately we will find that 48% of the population visit these organizations occasionally and 25% of the population visit only once in a week. It means a large number of population purchase their daily amenities from local vendors which is a part of unorganized retail segment of retailing industry. The organized retail sector should pay attention on this burning issue. They should give more offers, good service etc. to increase the number of visits of customers to their stores. If these retail organizations want to excel in Tinsukia they have to get more customers at their stores.

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4. Only 5% of the people rated the overall performance of these retail organizations as Excellent, whereas 25% of the people gave Poor rating to the overall performance of the organized retail sector. Thus, in Tinsukia there is a big scope for improvement in the overall structure of organized retail sector. The organized retail segment of retailing industry should work hard to excel in Tinsukia. They must pay more attention over their products and services and staff behavior with the customers.

5. 25% of the sample size has been cheated by this organized retail sector in some manner. However there are nearly 58% people dont think in this manner and according to them these organization never cheat or these organization never shown any intention to cheat, but if these retail organization want to stabilize themselves completely in the Tinsukia market they have to solve the problems of the above 25% people, because if they will not satisfy their all customers it will affect their reputation as well as their business too. There were some cases of cheating like not accepting the defective goods as returns, selling some goods at a higher price as compare to the local vendors, the quality level has not been that good for many products, goods offered at a very less price but there was no good quality signs, false advertisements, cheated or making fool of customers by selling old fashioned goods etc. so these problems are alarming ones and organized retail sector should pay a immediate glance to it.

6. 50% of the population believes that the organized retail sector is better than unorganized retail sector (local Vendors). This statement shows a great support to the organized retail sector. This is because people accept that, it is the organized retail sector which helps them in accessing variety of products under one roof, at the same time nearly 43% of the surveyed population believes that the products provided by the organized retail sector is very cheaper than the products provided by the unorganized retail sector. This is a very good situation for the organized retail sector, and organized retail sector must try to make the most of these opportunities. When I interviewed some people I find

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out that many people like to go for organized retail sector because they see more transparency in their operations as compared to the local vendors. The scope for flourishing is very wide for the organized retail sector in Tinsukia. But before that they have to think for those people who are not satisfy with their services and try to satisfy them. Like Big Bazaar, Tinsukia is facing a problem that is, the Big Bazaar is not situated in the main market area of the Tinsukia town, and it is hampering the growth of Big Bazaar as well as the growth of organized retail sector in Tinsukia town. For reducing the affects of this problem Big Bazaar can do one thing that it can start its own transportation system which can generate revenue also. Thus the scope for developing is very wide but organized retail sector have pay attention on the areas limitation as well as they have to improve in their overall performance.

7. One another sign which shows a great scope of development in Tinsukia town for the organized retail sector is that 45% of the surveyed population wants a new retail organization in Tinsukia.

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Conclusion
Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs, Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment. The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores. Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. This sector contributes 10% of India's GDP and the current growth rate is 8.5%. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and 325 departmental stores currently under construction. Many players are coming up with huge investments, due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by the year 2010. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.

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The market of Tinsukia is having a wide scope for the development of organized retail sector. After analyzing the various factors we can make a statement that the market of Tinsukia is at a growing phase and as we can see the various trends have shown positive results for the development of retail in the Tinsukia economy. There is a good opportunity for the existing as well as the other giant players of organized retail industry, as we have seen that more than 50% of the surveyed population is willing to have new entrants in the retail sector in Tinsukia. Whereas 50% of the sample size agreed that organized retail sector is far better than the unorganized retail sector which includes the local retailers. People are not fully satisfied with the services provided by organized retail sector, but if the industry takes it positively and try some more effort to satisfy public than organized retail sector can find a very strong market in Tinsukia. There are some other challenges, if tackled well than it can also improve their market in Tinsukia, like some people are not satisfied with product quality where as some are finding it costly at the other hand some people feel that these organized retail sector is serving public with a small variety of products. If the organized retail industry takes it optimistically and try to solve the problems than they can see a very good business in the next couple of years in the market of Tinsukia. At Tinsukia, retailing is gaining its importance slowly. Earlier there were no retail outlets and people were unaware about the Retailing Concept. As the two big giants started their outlets here, customers are now moving towards the malls. People get varieties in one store. They dont have move from store to store in the market. It has made purchasing a lot easier. It saves both time and money. Till now, though it has not been fully successful in Tinsukia but gradually it will occupy its importance.

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Limitations of the study

The main limitations of the study are:  The study is based on only the Tinsukia town.

 Due to the constraints of time and money the study is based only on 60 nos of sample which is comparatively a smaller sample size in consideration to the size of the population.

 The conclusions of the study have been drown on the basis of information divulge by the sample respondents. The information of the sample respondents can be influenced by the subjectivity.

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Challenges and Future scope for Indian retail industry

y y y y y y y y y

The tax structure in India favors small retail business Lack of adequate infrastructure facilities High cost of real estate Dissimilarity in consumer groups Restrictions in Foreign Direct Investment Shortage of retail study options Shortage of trained manpower Low retail management skill Cultural and regional differences are the biggest challenges in front of retailers in India which deters retailers from adopting a single retail format.

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Bibliography

BOOKS

y C.R.Kothari, Research Methodology, Vikas Publishing house Pvt.Ltd., 2007. y S.P.Kasande, Research Methodology, Nirali publications, 2004. Websites

y www.wiki.answers.com y www.wikipedia.org y www.bigbazartime.com

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Annexure Scope of Retail Industry in Tinsukia with a view of Customer satisfaction and services provided by organized Retail Sector

Questionnaire

NameOccupation-

e-mailPh no.

1. Which organized retail organization you choose for your purchases in Tinsukia? a) VISHAL MEGA MART 2. What is your income level? a) Below 10000 b) 10000 to 20000 c) 20000 to 30000 d) 30000 and above b) BIG BAZAR c) Both d) None

3. How frequently you visit these retail organizations? a) Once in a week b) Twice in a week c) Frequently d) Occasionally

4. Do you think these organizations fulfill all your needs? a) Yes b) No c) Cant say

5. Do you think these organizations are economical? a) Yes b) No c) Cant say

6. Do you recommend these retail organizations to your friends and relatives for their purchase? a) Yes b) No

7. Have you ever feel cheated with the products of these retail organizations? a) Yes b) No c) Cant say

P.T.O

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8. Are you satisfied with the services provided by these organizations? a) Yes b) No c) Cant say

9. Which retail organization in Tinsukia is better? a) VISHAL MEGAMART b) BIG BAZAR c) None

10. Rate the services provided by these retail organizations? a) Very bad b) Poor c) Fair d) Good e) Excellent

11. Do you think the organized retail sector is better than the unorganized (local retailers) retail sector? a) Yes b) No c) Cant say

If yes then why .. .. 12. Do you need any other retail organization in Tinsukia? a) Yes b) No c) Cant say

If yes then why 13. Do you want any further improvement in the services provided by these retail organizations? a) Yes b) No c) Cant say

If yes then why

THANK YOU for your valuable time

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