PROJECT REPORT

ON

“CONSUMER PREFERENCE TOWARDS ORGANIZED &

UNORGANIZED RETAIL STORES”

Submitted To:

COLLEGE OF MANAGEMENT AND COMPUTER

APPLICATION, MORADABAD

In Partial Fulfillment of the Requirement of the Degree of

Bachelor of Business Administration (BBA)

SESSION: 2008-2011
Department of Management
TEERTHANKER MAHAVEER UNIVERSITY
DELHI ROAD, MORADABAD

Project Guide: Project Incharge:

Dr. Chanchal Chawla Abhinav Srivastava
Submitted By: &
ACKNOWLEDGEMENT
ANUBHA JAIN Avinash Rajkumar
B.B.A. V Semester (Course Co-ordinator, B.B.A.)
Roll No. R081211024
It gives me immense pleasure and privilege to acknowledge my deepest

sense of gratitude towards all those who helped me in the successful

execution of this project.

I would like to thanks Chairman Sir Shri Suresh Jain, Group Vice

Chairman Mr. Manish Jain, Executive Director Prof. Dr. A.K. Garg for

their able guidance. I also extend my gratitude towards the H.O.D. Mr. M.P.

Singh and my course co-ordinator Mr. Abhinav Srivastava who entrusted

me for the completion of this project. I am highly indebted to my project

guide Dr. Chanchal Chawla whose constructive counseling and able

guidance helped me immensely in bringing out this project in the present

form. And lastly the entire faculty member & the entire Lab staff for

providing me this opportunity and expose me to industrial culture.

The acknowledgement would be incomplete without thanking my family

and friend who were a big support throughout.

ANUBHA JAIN

EXECUTIVE SUMMARY
 After going thick on the thing now time is to make complete picture

Organized Retail Stores are the market leader in the field of Retailing. These

stores has been very successful in its strategy of upgrading the consumer in

the mobile business segment. Organized stores has made sure that it makes

its consumers move up the product chain by introducing same products to

the new customers. Mostly respondents prefer Branded Product. Many

respondents are buying products by brand name. Fewer respondents are

purchase once in a month, Mostly respondents are usually visit these stores,

some respondents purchase this brand by Friends and some respondents are

preference of brand by brand name

Customer satisfaction, a business term, is a measure of how products and

services supplied by these stores meet or surpass customer expectation. It is

seen as a key performance indicator within business and is part of the four of

a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has

become a key element of business strategy.

Contents
1. Introduction

2. Company Profile

3. Importance & Scope

4. Research Objectives

5. Hypothesis

6. Research Methodology

7. Data Analysis

8. Findings

9. Suggestions

10. Limitations

11.Bibliography

12.Annexure

What IS RETAIL?
 Introduction

Retail 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.[1] 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 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. The term "retailer" is

also applied where a service provider services the needs of a large number of

individuals, such as a public utility, like electric power.

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.
Shopping generally refers to the act of buying products. Sometimes this is

done to obtain necessities such as food and clothing; sometimes it is done as

a recreational activity. Recreational shopping often involves window

shopping (just looking, not buying) and browsing and does not always result

in a purchase.

Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and

many others are ready to enter the retail markets. The rising demand of

branded products and increase in purchasing power has lured these

companies to enter the market.

The Apple Store retail location on the Magnificent Mile in Chicago.

The world's only Garmin retail location is located on the Magnificent Mile

in Chicago.

Retail comes from the French word retailer, which refers to "cutting off my

hands, 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, off my toes paring".2] Like

the French, the word retail in both Dutch and German (detailhandel and

Einzelhandel respectively), also refers to the sale of small quantities of

items.

Company’s Profile

Reliance retail

Reliance Retail

It’s time for the Reliance Retail juggernaut to unleash three more specialty

formats on unsuspecting masses. They’ll all be under the Home umbrella-

and the venture could even be called Reliance Home-with separate for-mats

for furniture, furnishing and kitchen equipment. That will be yet another
launch of yet another specialty format from RRL, in yet another category.

Consider the rollout-which Ronak would rather term a “cloudburst,”-so far:

Hypermarkets, Reliance Town Centres, supermarkets, convenience

stores, specialty stores (digital, health and wellness, apparel, etc.), rural

business hubs; in categories like food & grocery, consumer durables &

electronics, auto care and lifestyle. The big bang of course has been in foods

& grocery, where RRL has 572 Reliance Fresh stores across 59 cities.

And there’s the biggest store in India, the hypermart that’s branded

Reliance Mart (there are three of them so far), in Ahmedabad, spread over

165,000 sq. ft. That it still has ample empty spaces is another matter, but the

quest for size scale is typical of the Ambani strategy of creating capacities

not based on today’s demand conditions but what will play out in future.

Ronak hasn’t had much time to breathe easy-the 30 minutes he spent with

this writer at the Bombay Gymkhana may have been the only moments of

respite in a longtime, sandwiched as he is between meetings of the various

teams (of the Footprint Stores, the Digital Stores, Wellness Stores). Over

the past five weeks, and the coming seven, Ronak has had, and will have, his

hands full putting in place some more hypermarts. By the July the

hypermarts will be spread over 1 million sq. ft. Currently, RRL is

spread over 3.5 million sq. ft (105 million sq. ft being hogged by the 572
Reliance Fresh Stores selling fruits & vegetables)-all done over the past

17 months, which has company officials boasting that this is the fastest

rollout n such a scale in the world. “In categories like garments and lifestyle,

and to a certain extent consumer durables, (organized retail) has made

significant progress. But in foods and grocery, the biggest market, the action

has yet to play out,” says Ronak, who is also on the board of RRL.

At the Reliance group, the various heads of the retail ventures function as

stand-alone entrepreneurs, who’ve crafted their own business plans, got the

ventures financed by the group, and who now have to deliver results. The

common thread running through these various forays is a burning desire to

provide quality products and services at the best prices, and in the most

convenient setting. For this purpose, Reliance is also attempting to create an

efficient global supply chain in an effort to add more value. “We have seen

significant progress at the shop-keeping end of organised retail. But the

competitive edge will lie with those who are successful in creating an

efficient supply chain. The big lacuna today is in logistics and distribution,

which also makes it a significant opportunity,” ..

One of the many significant shifts in strategy at Reliance over the past year

has been the eagerness to strike joint ventures. And that’s best manifested in

the retail thrust. RRL has joint ventures with Marks & Spencer (for

clothing and home ware),

Raheja’s
Raheja Corp is a success story spanned across decades and continues to

achieve higher targets relentlessly for quality performance and service in

diverse fields of real realty business, hospitality sector and retailing outfits.

The group has made an impact on the supply side of the modern day living.

A style that has been the dream of new class of consumers, a style

encompassing the whole range of consumption pattern of the young and the

upcoming consumers that has become synonym with the brand K Raheja

Corp.

The group has pioneered the trend of setting world class hotels and

convention centers across the country with enhanced facilities to meet the

business and leisure needs of the international and domestic traveler.

The higher standards set by the group in its pursuit to position India on par

with the developed economies of the world and with a vision to be and

remain at the commanding height of Real Estate Business.

Retailing in India is up for transition. It has broken the safe and

claustrophobic space of an eggshell and rearing to grow into a giant that will

match the retailing practices of the west.

K Raheja Corp are the pioneers in organized retail by taking a first

giant step to successfully establish a retail store know as "Shopper's Stop"

The group is expanding its retail chains across the country on the back of the

vast experience it gathered from feedbacks and keen observance of people's

taste keeping in tune with its culture, customs, traditions and income.

Crossword, Inorbit Mall & Hyper City have set new bench marks on

the basis of information and adaptation of worldwide changes, innovations

and new techniques in

1991 Shopper’s Stopretailing practices.

2000 Crossword – Book Store

2004 Inorbit Mall

2006 Hypercity

2008 Inorbit Vashi

RPG Group
Company’s in Retail Sector:

Spencer’s Retail

Spencer's Retail Limited is one of India's largest and fastest growing multi-

format retailer with 220 stores, including 30 large format stores across 35

cities in India. Spencer's focuses on verticals like fresh fruit and vegetables,

food and grocery, personal care, garments and fashion accessories, home and

office essentials, electrical and electronics. Established in 1996, Spencer's

has become a popular destination for shoppers in India with hypermarkets

and convenient stores catering to various shopping needs of its large

consumer base.

Operations

Spencer's has retail footage of approximately 1 million square feet and over

220 Spencer's stores in 35 cities. The company operates through the

following formats:

• The Spencer's Hyper stores are destination stores, of more than 15,000

sq. ft in size. They offer everything under one roof. The merchandise
 ranges from fruits & vegetables, processed foods, groceries, meat,

chicken, fish, bakery, chilled and frozen foods, garments and fashion

accessories, consumer electronics & electrical products, home decor

and needs, office stationeries, soft toys. On an average, a Spencer's

hyper stocks 70,000 SKUs across 35,000 items.

• The Spencer's stores are neighborhood stores ranging from 1500 less

than 15000 sq. ft. These stores stock the necessary range and

assortment in fruit and vegetables, FMCG food and non-food, staples

and frozen foods and cater to the daily and weekly top-up shopping

needs of the consumer.

Au Bon Pain
Spencer’s Retail Limited, has tied up with Au Bon Pain, the Boston-based
fast casual dining and bakery café chain with more than 200 outlets in the

USA, South Korea, Taiwan and Thailand. A joint venture has been formed

between Spencer’s Retail Limited and Varin Narula which would be the

Master Franchisee of Au Bon Pain in India. Varin is the Director &

Promoter of Au Bon Pain, Thailand. The outlets will offer the choicest of

healthy and nutritious food, bakery products and beverages in a relaxed and

casual environment.

Beverly Hills Polo Club

Spencer’s, has signed an exclusive tie-up with the renowned apparel brand

Beverly Hills Polo Club. Beverly Hills Polo Club® evokes casual, relaxed

yet affluent and elegant Southern Californian lifestyle. It presents product

categories in-tune with its image viz, T-Shirts, polo’s, sweat shirt & sweat

pants, causal shirt & trousers, denims, winterwear, eyewear and watches for

men and women. Formal shirts & trousers are an added category in the

menswear segment. It is strategically developed by Spencer’s for the Indian

market with fine product attributes that makes fashion, affordable.

Pantaloon Retail (India) Limited,

It is a large Indian retailer, which is part of the Future Group, and operates

multiple retail formats in both the value and lifestyle segment of the Indian

consumer market. Headquartered in Mumbai, the company has over 1,000

stores across 71 cities in India and employs over 30,000 people [1], and as of

2010, it was the country's largest listed retailer by market capitalization and

revenue.

With effect from 1 January 2010 the company separated its discount store

business, which includes the Big Bazaar hypermarket and the Food Bazaar

supermarket businesses, into Future Value Retail Ltd., its wholly-owned

subsidiary, so that the company may be listed independently [2][3].

The company’s brands include Pantaloons, a chain of fashion outlets, Big

Bazaar, a hypermarket chain and Food Bazaar, a supermarket chain. Some

of the company's other regional brands include, Depot, Shoe Factory, Brand

Factory, Blue Sky, all, Top 10 and Star and Sitara.

A subsidiary company, Home Solutions Retail (India) Limited, operates

Home Town, a large-format home solutions store, Collection i, selling home

furniture products and E-Zone focused on catering to the consumer

electronics segment.
Lines of Business

The company is present across several lines of business which have various

formats (stores) plywood, The Dollar Store (JV)

• Fashion - Pantaloons, Central, aLL, Brand Factory, Blue Sky, Top 10,

Fashion Station, Big Bazaar, Lee Cooper (JV)

• General Merchandise - Big Bazaar, Shoe Factory, Navras, Electronics

Bazaar, Furniture Bazaar, KB'S FAIR PRICE

• Electronics - eZone, Electronic Bazzaar, STAPLES (JV)

• Home Improvement - Home Town

• Furniture - Collection i, Furniture Bazaar, Home Bazaar

• E-tailing (Online Shopping) - www.futurebazaar.com

• Books & Music - Depot

• Leisure & Entertainment - Bowling Co., F123

• Wellness - Star & Sitara, Tulsi

• Telecom & IT - Gen M, M Bazaar, M-Port, ConvergeM, Future

Axiom

• Consumer Durables - Koryo, Sensei, IPAQ

• Service - E Care, H Care , Design & Service

 • Malls - Central (Bangalore, Hyderabad, Pune, Mumbai, Vadodara,

Gurgaon, Indore, Ahmedabad)

• Investment & Savings - Insurance: ULIP, Pension, Endowment etc.

Stock Information

• Listed on: Bombay Stock Exchange

• Stock Code: BOM:523574

Company Timeline

• 1987 Company incorporated as Manz Wear Private Limited. Launch

of Pantaloons trouser, India’s first formal trouser brand.

• 1992 Initial public offer (IPO) was made in the month of May.

• 1997 Pantaloons – India’s family store launched in Kolkata.

• 2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first

hypermarket chain launched.

• 2002 Food Bazaar, the supermarket chain is launched.

• 2007 Future Group crosses $1 billion turnover mark

 Importance and scope of retailing

While there is a lot of debate going on the impact of organized retailing on

unorganized sector, there is little we know of how it will impact our

economy in general. Common sense says that perhaps it will help the

economy (every better looking thing is good for the economy. Swanky Call

centers that brought outsourcing to us helped in fueling the feel good factor..

Same is for IT/BT companies.So similar should be the case with these

retailers)

Surprisingly there are not enough reasons to contest this belief. No matter

what communists say or Mayawati does in UP, or what short term glitches

we witness on Sensex or in US economy, organized retailing is here to stay

and grow at a breathtaking place.

So when it is so, I tried to look at it form a holistic point of view and no

matter how much I desist to say this but yeah, I ultimately ended up with a

PEST analysis.Here are the main points from that(I might post the complete

version sometime later but before that I myself want to refine this and

include the reaction that I get..if any :))

Political
Even though the government is yet to give the sector an Industry status and

we see aggressive political protests, some aspects of the Government’s

policy have been favourable on other fronts. For example- let’s take Delhi,

NCR and Mumbai. In Mumbai, the Government is releasing unused textile

mill land for retail development. In Delhi & NCR, the Government has

released large tracts of land for retail development. Overall in politics, those

in opposition will always oppose..so is there any point in talking about this?

Anyway main points to look out for are :

1. Decision on FDI

2. Government’s stand for foreign players

Economical

Although the organized retail sector constitutes only 4-5% of the USD 350

billion Indian retail market, it is expected to grow 400%- from USD 12-15

billion currently, to over USD 30.0 billion by 2010. There is hectic activity

in the sector in terms of expansion, entry of international brands and retailers

as well as focus on technology, operations and processes. All these present a

tremendous opportunity in this new high growth industry. A large portion

related to economic impact has already been covered in the previous sections
The important thing is that the growth of this sector will create a totally new

demand in our economy. Households across India are now exposed to

products and services they had never seen before, the tempting value

proposition and an inviting atmosphere is making them purchase these

items. Without the new stores the same money would have been sitting idle

in some bank lockers. But now the money is out in market, helping the

manufacturers to come out with new and innovative products. A great

aggregation is also taking place now.. you can go and buy as much low

quantities that you want, and the systems assist you in this because no one is

bothered.

Imagine what happened in the Shampoo sachet market in India, prior to

the entry of Velvet which later transformed the industry landscape ..no

one was catering to the huge demand of affordable hair care solution. And

today sachets hold 76% of the total shampoo market in India.. that means

at least 60% more demand generation.

There is no doubt in my mind that we are seeing something similar in the

case of organized retailers though the extent of this demand expansion and

its wholesomeness can be debatable.

Social

There has been a demographic shift in India, emergence of a larger middle

and upper middle classes and the substantial increase in disposable income

has changed the nature of shopping in India from need based to lifestyle

dictated. In addition to this, facilities like credit friendliness, availability of

cheap finance and a drop in interest rates have changed consumer markets.

Organized retail increases the efficiencies in the agriculture sector by

removing intermediaries in the food chain; as a result, farmers are getting

better prices for their produce. The private retail players can actually

introduce new technology, seeds, and thus encourage farmers to improve

their productivity.

Unorganized retail is feeling the heat of the emergence of the organized

retail due to the changing trends of the Indian consumers. Antagonist lobby

claims, “In the last four years, an estimated two crore traders have been

rendered jobless due to the opening of big shopping malls in the country”.

However there is no evidence of a decline in overall employment in the

unorganized sector as a result of the entry of organized retailers. According

to the ICRIER survey, the unorganized sector witnessed a closure rate of

4.2% of which only 1.7% closures were attributed to competition from

modern retail.

Large retailers like Wal-Mart can never impact small kirana stores in India.

This is largely due to India’s socio-cultural heterogeneity and consumer

choice. The consumer wants small retail. The ‘kirana’ store and the paan

shop are seen as part of community life. Anyway it’s a long discussion and

deserves a separate post in itself

Technological
With increasing competition, slimmer profit margins and diminished

returns-cost cutting at every point of value chain has become important.

Today’s global retail business strategies utilize technology. Ecommerce,

Customer Relationship Management (CRM) software, Enterprise Resource

Planning (ERP) and Point of Sale (POS) systems are all vital to retail

businesses. Using these technologies retailers can actually gain key insights

to further gain market share and increase revenue

Indian retailer would feel the need for technology only when he wants to

grow beyond a certain point. This is one of the reasons why the traditional

grocery is here to stay, with 90% of sales in India done through them

Objectives of the Study

Objective of the Study:
· To know the consumer satisfaction.

· Financial performance in Retail industry.

· Market performance.

· Market position.

· Economic and the industry environment.

· Cost saving initiatives.

· To find out the satisfaction level of people.

· To find out the awareness level of customer.

· To find the satisfaction amongst the customers

Retail in Urban & Rural Areas

Key Trends in Urban India:

*Retailing in India is witnessing a huge revamping exercise.

* Estimated to be US$ 200 billion, of which organized retailing (i.e. modern

trade) makes up 3 percent or US $6.4billion.

* India is rated the fifth most attractive emerging retail market: a potential

goldmine

*Ranked second in a Global Retail Development Index of 30 developing

countries drawn up by AT Kearney.

* India is rated the fifth most attractive emerging retail market: a potential

goldmine

* Food and apparel retailing key drivers of growth.

* Organized retailing in India has been largely an urban phenomenon with

affluent classes and growing number of double-income households.

Key Trends in Rural India:

* Rural markets emerging as a huge opportunity for retailers reflected in the

share of the rural market across most categories of consumption

* ITC is experimenting with retailing through its e-Choupal and Choupal

Sagar – rural hypermarkets.

Types of retail outlets

San Juan de Dios Market in Guadalajara, Jalisco Inside a supermarket in

Russia

A market place is a location where goods and services are exchanged.

The traditional market square is a city square where traders set up stalls and

buyers browse the merchandise. This kind of market is very old, and

countless such markets are still in operation around the whole world.
In some parts of the world, the retail business is still dominated by small

family-run stores, but this market is increasingly being taken over by large

retail chains.

Retail is usually classified by type of products as follows:

• Food products

• Hard goods ("hard line retailers") - appliances, electronics, furniture,

sporting goods, etc.

• Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing strategy:

• Department stores - very large stores offering a huge assortment of

"soft" and "hard goods; often bear a resemblance to a collection of

specialty stores. A retailer of such store carries variety of categories

and has broad assortment at average price. They offer considerable

customer service.

• Discount stores - tend to offer a wide array of products and services,

but they compete mainly on price offers extensive assortment of

 merchandise at affordable and cut-rate prices. Normally retailers sell

less fashion-oriented brands. However the service is inadequate.;

• General merchandise store - a hybrid between a department store and

discount store;

• Supermarkets - sell mostly food products;

• Warehouse stores - warehouses that offer low-cost, often high-

quantity goods piled on pallets or steel shelves; warehouse clubs

charge a membership fee;

• Variety stores or "dollar stores" - these offer extremely low-cost

goods, with limited selection;

• Demographic - retailers that aim at one particular segment (e.g., high-

end retailers focusing on wealthy individuals).

• Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and

operated by individuals. The range of products are very selective and

few in numbers. These stores are seen in local community often are

family-run businesses. The square feet area of the store depends on

the store holder.

• Specialty Stores: A typical specialty store gives attention to a

particular category and provides high level of service to the

customers. A pet store that specializes in selling dog food would be

 regarded as a specialty store. However, branded stores also come

under this format. For example if a customer visits a Reebok or Gap

store then they find just Reebok and Gap products in the respective

stores.

• Convenience Stores: is essentially found in residential areas. They

provide limited amount of merchandise at more than average prices

with a speedy checkout. This store is ideal for emergency and

immediate purchases.

• Hypermarkets: provides variety and huge volumes of exclusive

merchandise at low margins. The operating cost is comparatively less

than other retail formats. A classic example is the Metro™ in

Bangalore.

• Supermarkets: is a self service store consisting mainly of grocery and

limited products on non food items. They may adopt a Hi-Lo or an

EDLP strategy for pricing. The supermarkets can be anywhere

between 20,000-40,000 square feet. Example: SPAR™ supermarket.

• Malls: has a range of retail shops at a single outlet. They endow with

products, food and entertainment under a roof. Example: Sigma mall

and Garuda mall in Bangalore, Express Avenue in Chennai.

• Category Killers or Category Specialist: By supplying wide

assortment in a single category for lower prices a retailer can "kill"

that category for other retailers. For few categories, such as

electronics, the products are displayed at the centre of the store and

sales person will be available to address customer queries and give

suggestions when required. Other retail format stores are forced to

reduce the prices if a category specialist retail store is present in the

vicinity. For example: Pai Electronics™ store in Bangalore, Tata

Croma.

• E-tailers: The customer can shop and order through internet and the

merchandise are dropped at the customer's doorstep. Here the retailers

use drop shipping technique. They accept the payment for the product

but the customer receives the product directly from the manufacturer

or a wholesaler. This format is ideal for customers who do not want to

travel to retail stores and are interested in home shopping. However it

is important for the customer to be wary about defective products and

non secure credit card transaction. Example: Amazon and EBay.

• Vending Machines: This is an automated piece of equipment wherein

customers can drop in the money in machine and acquire the products.

For example: Soft drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high

end", depending on what income level they target.

Other types of retail store include:

• Automated Retail stores are self service, robotic kiosks located in

airports, malls and grocery stores. The stores accept credit cards and

are usually open 24/7. Examples include Zoom Shops and Red box.

• Big-box stores encompass larger department, discount, general

merchandise, and warehouse stores.

• Convenience store - a small store often with extended hours, stocking

everyday or roadside items;

• General store - a store which sells most goods needed, typically in a

rural area;

Retailers can opt for a format as each provides different retail mix to its

customers based on their customer demographics, lifestyle and purchase

behavior. A good format will lend a hand to display products well and entice

the target customers to spawn sales.

A food vendor in India

Adidas store in Tel Aviv, Israel

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 which 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 citizen

Transfer mechanism

There are several ways in which consumers can receive goods from a

retailer:

• Counter service, where goods are out of reach of buyers and must be

obtained from the seller. This type of retail is common for small

expensive items (e.g. jewelry) and controlled items like medicine and

liquor. It was common before the 1900s in the United States and is

more common in certain countries.

• Delivery (commerce), where goods are shipped directly to consumer's

homes or workplaces. Mail order from a printed catalog was invented

in 1744 and was common in the late 19th and early 20th centuries.

Ordering by telephone is now common, either from a catalog,

 newspaper, television advertisement or a local restaurant menu, for

immediate service (especially for pizza delivery). Direct marketing,

including telemarketing and television shopping channels, are also

used to generate telephone orders. Online shopping started gaining

significant market share in developed countries in the 2000s.

• Door-to-door sales, where the salesperson sometimes travels with the

goods for sale.

• Self-service, where goods may be handled and examined prior to

purchase, has become more common since the 1920s.

Second hand retail

Some shops sell second-hand goods. In the case of a nonprofit shop, the

public donates goods to the shop to be sold. In give-away shops goods can

be taken for free.

Another form is the pawnshop, in which goods are sold that was used as

collateral for loans. There are also "consignment" shops, which are where a

person can place an item in a store and if it sells, the person gives the shop

owner a percentage of the sale price. The advantage of selling an item this

way is that the established shop gives the item exposure to more potential

buyers.
Customer service

According to the book Discovery-Based Retail,[3] 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.

Retail Sales

US Retail Sales 1992-2010

The Retail Sales report is published every month. It is a measure of

consumer spending, an important indicator of the US GDP. Retail firms

provide data on the dollar value of their retail sales and inventories. A

sample of 12,000 firms is included in the final survey and 5,000 in the

advanced one. The advanced estimated data is based on a subsample from

the US CB complete retail & food services sample.[4]

It has been published by the US Census Bureau since 1951.

Retail scene in India

With organized retail in India pegged at Rs 25,000 crore (Rs 250 billion) --

out of a total of Rs 800,000 crore (Rs 8,000 billion -- and a double digit

growth rate, marketing companies are setting up shops to provide

differentiated services to clients. Till now sales people were the link between

the retailer and the producer. But sales personnel are busy selling a product

and do not have a fair idea of what retailing is about. The focus is to

priorities retail. That is, not only to sell a product to a consumer but to get

the consumer to interact with the product. Gone are the days when retailing

meant mere availability of a product. With competition becoming stiffer

companies are looking at 'experiential' marketing. Also the lack of proper

metrics to measure marketing spends is a serious issue.

In today's swiftly changing business environment, there is no option but to

be in the know - to be constantly on the move, keeping tabs on the shifting

trends in the market place and maneuvering your strategy to stay on top. The

retail arena today is very different - the opportunities are incredible but

exploiting them is extremely tough.

Super smart shoppers know all the rules of the game. They can instantly

sense a good buy and lap it up or sniff out a bad product and dismiss it.

Their expectations are tough to meet but for retailers aiming to make a big

sale, there is not much of a choice but to find ways to win customers over

and keep them permanently happy.

In an environment, which is still restrictive in many ways and lacks adequate

infrastructure, this becomes a formidable task. So how are Indian retailers

coping up and how long will it be before organised retail becomes the

primary way of selling.

As the corporate – the Piramals, the Tatas, the Rahejas, ITC, S.Kumar's,

RPG Enterprises, and mega retailers- Crosswords, Shopper's Stop, and

Pantaloons race to revolutionize the retailing sector, retail as an industry in

India is coming alive. Retail sales in India amounted to about Rs.7400

billion in 2002, expanded at an average annual rate of 7% during 1999-2002.

With the upturn in economic growth during 2003, retail sales are also

expected to expand at a higher pace of nearly 10%. Across the country, retail

sales in real terms are predicted to rise more rapidly than consumer

expenditure during 2003-08. The forecast growth in real retail sales during

2003- 2008 is 8.3% per year, compared with 7.1% for consumer

expenditure. Modernization of the Indian retail sector will be reflected in

rapid growth in sales of supermarkets, departmental stores and hyper marts.

Sales from these large-format stores are to expand at growth rates ranging

from 24% to 49% per year during 2003-2008, according to a latest report by

Euro monitor International, a leading provider of global consumer-market

intelligence.

A. T. Kearney Inc. places India 6th on a global retail development index.

The country has the highest per capita outlets in the world - 5.5 outlets per

1000 population. Around 7% of the population in India is engaged in

retailing, as compared to 20% in the USA.

In a developing country like India, a large chunk of consumer expenditure is

on basic necessities, especially food-related items. Hence, it is not surprising

that food, beverages and tobacco accounted for as much as 71% of retail

sales in 2002. The share of food related items had, however, declined over
the review period, down from 73% in 1999. This is not unexpected, because

with income growth, Indians, like consumers elsewhere, have started

spending more on non-food items compared with food products. Sales

through supermarkets and department stores are small compared with overall

retail sales. Nevertheless, their sales have grown much more rapidly, at

almost a triple rate (about 30% per year during the review period). This high

acceleration in sales through modern retail formats is expected to continue

during the next few years, with the rapid growth in numbers of such outlets

due to consumer demand and business potential.

The factors responsible for the development of the retail sector in India can

be broadly summarized as follows:-

* Rising incomes and improvements in infrastructure are enlarging

consumer markets and accelerating the convergence of consumer tastes.

* Looking at income classification, the National Council of Applied

Economic Research (NCAER) classified approximately 50% of the Indian

population as low income in 1994-95; this is expected to decline to 17.8%

by 2006-07.
* Liberalization of the Indian economy which has led to the opening up of

the market for consumer goods has helped the MNC brands like Kellogg's,

Unilever, Nestle, etc. to make significant inroads into the vast consumer

market by offering a wide range of choices to the Indian consumers.

* Shift in consumer demand to foreign brands like McDonalds, Sony,

Panasonic, etc.

The Internet revolution is making the Indian consumer more accessible to

the growing influences of domestic and foreign retail chains. Reach of

satellite T.V. channels is helping in creating awareness about global

products for local markets. About 47% of India's population is under the age

of 20; and this will increase to 55% by 2015. This young population, which

is technology-savvy, watch more than 50 TV satellite channels, and display

the highest propensity to spend, will immensely contribute to the growth of

the retail sector in the country. As India continues to get strongly integrated

with the world economy riding the waves of globalization, the retail sector is

bound to take big leaps in the years to come.

The Indian retail sector is estimated to have a market size of about $ 180

billion; but the organised sector represents only 2% share of this market.

Most of the organised retailing in the country has just started recently, and
has been concentrated mainly in the metro cities. India is the last large Asian

economy to liberalize its retail sector. In Thailand, more than 40% of all

consumer goods are sold through the super markets and departmental stores.

A similar phenomenon has swept through all other Asian countries.

Organised retailing in India has a huge scope because of the vast market and

the growing consciousness of the Consumer about product quality and

services.

A study conducted by Fitch, expects the organized retail industry to continue

to grow rapidly, especially through increased levels of penetration in larger

towns and metros and also as it begins to spread to smaller cities and B class

towns. Fuelling this growth is the growth in development of the retail-

specific properties and malls. According to the estimates available with

Fitch, close to 25mn sq. ft. of retail space is being developed and will be

available for occupation over the next 36-48 months. Fitch expects

organized retail to capture 15%-20% market share by 2010.

A McKinsey report on India says organised retailing would increase the

efficiency and productivity of entire gamut of economic activities, and

would help in achieving higher GDP growth. At 6%, the share of

employment of retail in India is low, even when compared to Brazil (14%),

and Poland (12%).

Current Status of Retail Marketing in India

Winds of change sweeping through Retail Industry.

What is it that has made the Piramals, the Tatas, the Rahejas, ITC and

scores of others take a plunge into mega retailing? Why is market research,

space management, ERP, promotions etc now a necessary tool in this

industry?

Retail Economics in India

Traditionally retailing has not been a structurally organized industry in India.

Organized retail network was seen only in fabrics, with large mills building

their own exclusive stores e.g. Raymond's, Bombay Dyeing etc.

Currently there are about 5130000 retail outlets selling about Rs4790bn

worth of products. Retail universe in India comprises large, medium general

stores, chemists and pan-bidi (apart from accessories stores). Of these –

thanks to unemployment, the number of pan-bidi outlets are steadily rising.

On account of the fragmented nature of Indian retail industry the inhabitants

to stores ratio in India is about 150:1, i.e. there is a store catering to every

150 people. This ratio varies from country to country. In china the ratio is

similar to that of India where as incase of more developed countries the ratio

would be higher. For instance in Europe the inhabitant to stores ratio is

2000:1.As markets mature, consumer expectations rise it would be a

necessity for small retailers to come together and form innovative and strong

supply chain that will cut through distribution and increase margins.

Turnaround time

In last couple of years this industry has made agile move from its nascent

stages. Organized retailing started picking up in Southern India. Availability

of land at prime locations coupled with cheaper real estate prices (compared

to Mumbai & Delhi) made it possible to have multi stored shopping

complexes here. It took two years of recession to get this concept of

shopping to major cities like Mumbai & Delhi. Recession brought property

prices down in these cities. It was during this period of industry slump that

big business houses took notice of the potential in retailing. A classic

example being- Lakme Ltd. The company after selling off its cosmetic

division to HLL, made an aggressive foray into retailing. Its retail chain

branded 'Westside' already comprises 4 stores- one each in Bangalore,

Hyderabad, Chennai and Mumbai. A cash hoard of Rs107bn will enable

Lakme to roll out stores aggressively.

What makes it attractive?

Today the number of smaller retailers ($500pa) has shot up from 40% in

1990 to 54% in 1996, whereas the number of large stores (turnover of

$3000pa) increased from 2.8% to 6.5%. Thus though large retailers are

growing the smaller outlets are growing even faster. However changing

shopping attitudes of an average customer will make future growth

increasingly difficult for unorganized retail sector.

Currently in India, organized retailing accounts for 6% of the industry

turnover, comprising value-added foods (Rs770bn), music & entertainment

(Rs40bn), colour cosmetics (Rs12bn) etc. By 2005 organized retailing will

account for 20% the total retailing industry turnover (Rs8300bn).

Big business houses today are in a position to provide Indian masses with

shopping satisfaction, entertainment, quality product, polite salesperson,

product information and discounts. Though margins currently are low due to

high property cost and poor infrastructure, this is the only business where

one buys in credit and sells for cash.

Further the number of households earning more than Rs150000 per annum

amounts to 30mn today and is expected to grow to 80mn by

2007.Additionally financial institutions are encouraging such ventures.

ICICI has recently sanctioned term loans to Vivek & co, a mega-retailer, in

Chennai to meet their expansion plans. Very shortly the market will also

witness IPO's for some of these Retail Ventures.

Proven success

In early 90's, K. Raheja Group started a mega Apparels stores in Mumbai-

'Shoppers Stop'. Initially, the group was averse to start outlets at South

Mumbai for various reasons like low walk-ins, space constraints, narrowed

target audience etc. However the success of Crossroads, an ardent rival, has

prompted them to start one at South Mumbai in near future. The group has

more of such stores, one each at Bangalore, Hyderabad and Jaipur. Within

seven years of operations it has a yearly turnover of Rs1.30bn. The group

has plans of opening about 20 mega apparel stores in next 2 years. For this

the company plans to sell 25.1% stake for Rs559mn to Singapore based

investor Warburg Pincus. The success story of Shoppers Stop has convinced

other business houses to take a leap.

Retailing, considered a sunrise industry today after InfoTech, is the most

happening industry with almost all the big players vying for a share of the

coveted pie. Buoyed by a strong increase in private consumption (see

graph), retailing is one industry that is waiting to explode.

Source: KSA Technopack

Today however, organised retailing is less than 2 per cent of the retailing

industry in India, that is, about Rs 5,000 crore.(see table ) Therefore, there is

no real retail revolution in India; the industry is still in the stages of infancy.

Share of Organised Retail

1999 2002 2005

Total Retail (US $ Bn) 150 180 225

Organized Retail (US $ Bn) 1.1 3.3 7

% Share of Organized Retail 0.70% 1.80% 3.20%

Organized retailing is bound to grow tremendously provided the right

marketing strategies are adopted. Retail businesses have broken rank and

seem poised to surge ahead with renewed vigour, optimism, confidence and

capability.
 Organized Retailing in India

According to Euro Monitor International, a leading provider of global

consumer market intelligence, sales from large format stores (supermarkets

and hypermarkets) is expected to increase by 30% in 2005. In the year 2002,

food-related items accounted for nearly 71% of retail sales in India.

However, it was interesting to note that there had been a decline in the

purchase of food-related items. These had earlier registered a 73% sale in

1999. In recent years, there has been higher spending on non-food items.

The main factors for this change are:

• Rising incomes and a consequent increase in disposable incomes (Refer

Exhibit VI for household income across India).

• Better infrastructure.

• Rise in consumer awareness.

• Consumer keenness to buy branded products.

• Consumer desire to purchase quality products and services...

 Organized retail

Organized sector refers to the sectors undertaken by licensed retailers, that

is, those who are registered for sales tax, income tax, etc. These include the

corporate retail formats of the exclusive brand outlets, hypermarkets,

supermarkets, departmental stores and shopping malls.

Growth of Organized retail in India

Indian organized retail market is growing at a fast pace due to the

boom in the India retail industry. In 2005, the retail industry in India

amounted to Rs 10,000 billion accounting for about 10% to the country's

GDP. The organized retail market in India out of this total market accounted
for Rs 350 billion which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs

1000 billion by 2010. Traditionally the retail industry in India was largely

unorganized, comprising of drug stores, medium, and small grocery stores.

Most of the organized retailing in India have started recently and is

concentrating mainly in metropolitan cities.

The growth in the Indian organized retail market is mainly due to the

change in the consumer’s behavior. This change has come in the consumer

due to increased income, changing lifestyles, and patterns of demography

which are favorable. Now the consumer wants to shop at a place where he

can get food, entertainment, and shopping all under one roof. This has given

Indian organized retail market a major boost.

Retail market in the organized sector in India is growing can be seen

from the fact that 1500 supermarkets, 325 departmental stores, and 300 new

malls are being built. Many Indian companies are entering the Indian retail

market which is giving Indian organized retail market a boost. One such

company is the Reliance Industries Limited. It plans to invest US$ 6 billion

in the Indian retail market by opening 1000 hypermarkets and 1500

supermarkets.

Pantaloons is another Indian company which plans to increase its

retail space to 30 million square feet with an investment of US$ 1 billion.

Bharti Telecoms an Indian company is in talks with Tesco a global giant for

a £ 750 million joint venture. A number of global retail giants such as

Walmart, Carrefour, and Metro AG are also planning to set up shop in India.

Indian organized retail market will definitely grow as a result of all this

investments.

Indian organized retail market is increasing and for this growth to

continue the Indian retailers as well as government must make a combined

effort.

Entry of Large Business Houses

Organized retailing in India started picking up in South India in cities like

Chennai and Hyderabad, where real estate at prime locations was available

at cheaper rates than in cities like Mumbai and Delhi. In the early 1990s,

leading Indian business houses started taking a keen interest in the retailing

sector...

Pantaloon Retail India Limited (PRIL)

Headed by Kishore Biyani (Biyani), Pantaloon Retail India Limited (PRIL)

is one of the leading retail outlets in India. The retail chains which are a part
of PRIL include Pantaloons, Big Bazaar, Food Bazaar, Gold Bazaar and the

Central Mall.

PRIL was incorporated in October 1987 as Manz Wear Private Limited. It

became a public limited company in September 1991. The company sold

products under the Bare, Pantaloons and John Miller brand names. The first

menswear Pantaloons Shoppe outlet was set up in 1993...

RPG Group
The Rama Prasad Goenka or RPG Group registered a turnover of Rs. 84

billion in the fiscal 2004-05. The group has more than 20 companies in

seven different industries - Power, Tyres, Retail, Transmission,

Entertainment, Technology and the Specialties sectors (Refer Exhibit XIII

for contribution of business sectors to Group’sturnover)...

Tata Group
The Tata group is one of India's largest business houses. In 2005, the group

owned 93 companies in seven business sectors, namely information systems

and communications; engineering; materials; services; energy; consumer

products; and chemicals, and employs nearly 220,000 people.

In 1997, the Tata's sold their Lakme business to Hindustan Lever Limited

(HLL) . The group started its retail business in 1998 with the purchase of the
Littlewoods retail stores, originally owned by a UK-based firm, in

Bangalore...

Raheja Group

The K. Raheja group of companies is among India's largest real estate

players. They launched Shopper's Stop way back in October 1991. This was

the first mega apparel retail outlet to be established in India. Shoppers' Stop

is projected as a Fashion & Lifestyle store for the family. From a single store

in 1991, Shopper's Stop has today grown into a 16 store retail chain in major

metropolitan cities across India...

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.

Indian unorganized retail sector

India is the only one country having the highest shop density in the world,

with 11 outlets per 1000 people (12 million retail shops for about 209

million households). Rather we can see the democratic scenario in Indian

Retail (because of low level of centralization, low capital input and due to a

good number of self organized retail).

India started its Retail Journey since ancient time.

In Ancient India there was a concept of weekly HAAT, where all the buyers

& sellers gather in a big market for bartering. It takes a pretty long times to

& step to shape the modern retail. In between these two concepts (i.e.

between ancient retail concept & the modern one there exist modern kirana/

mom and pop shops or Baniya ki Dukan.

Still it is predominating in India

So the Indian retail industry is divided into two sectors- organized and

unorganized.
 Unorganized retailing

Unorganized sector on the other hand, refers to the traditional formats of

low-cost retailing, for example, hand cart and pavement vendors, & mobile

vendors, the local kirana shops, owner manned general stores, paan/beedi

shops, convenience stores, hardware shop at the corner of your street selling

everything from bathroom fittings to paints and small construction tools; or

the slightly more organized medical store and a host of other small retail

businesses in apparel, electronics, food etc.

Characteristics of unorganized retail

Small-store (kirana) retailing has been one of the easiest ways to generate

self-employment, as it requires limited investment in land, capital and

labour. It is generally family run business, lack of standardization and the

retailers who are running this store they are lacking of education, experience

and exposure. This is one of the reason why productivity of this sector is

approximately 4% that of the U.S. retail industry.

Unorganized retail sector is still predominating over organized sector in

India, unorganized retail sector constituting 98% (twelve million) of total

trade, while organized trade accounts only for 2%.

The reasons might be-

1. In smaller towns and urban areas, there are many families who are

traditionally using these kirana shops/ 'mom and pop' stores offering a wide

range of merchandise mix. Generally these kirana shops are the family

business of these small retailers which they are running for more than one

generation.

2. These kirana shops are having their own efficient management system and

with this they are efficiently fulfilling the needs of the customer. This is one

of the good reasons why the customer doesn’t want to change their old loyal

kirana shop.

3. A large number of working class in India is working as daily wage basis,

at the end of the day when they get their wage, they come to this small retail

shop to purchase wheat flour, rice etc for their supper. For them this the only

place to have those food items because purchase quantity is so small that no

big retail store would entertain this.

4. Similarly there is another consumer class who are the seasonal worker.

During their unemployment period they use to purchase from this kirana

store in credit and when they get their salary they clear their dues. Now this

type of credit facility is not available in corporate retail store, so this kirana

stores are the only place for them to fulfill their needs.

5. Another reason might be the proximity of the store. It is the convenience

store for the customer. In every corner the street an unorganized retail shop

can be found that is hardly a walking distance from the customer’s house.

Many times customers prefer to shop from the nearby kirana shop rather

than to drive a long distance organized retail stores.

6. This unorganized stores are having n number of options to cut their costs.

They incur little to no real-estate costs because they generally operate from

their residences.

Their labour cost is also low because the family members work in the store.

Also they use cheap child labour at very low rates.

As they are operating from their home so they can pay for their utilities at

residential rates.Even they cannot pay their tax properly.

Currently the value of the retail market is estimated at around $ 270 billion

with a growth rate of 5.7 per cent per annum according to the Indian retail

report which creates a big threat for the small unorganized retailers.

The well established organized retail sector in India are Pantaloon Retail,

Shoppers’ Stop, Spencers, HyperCITY, Lifestyle, Subhiksha & newly

emerging Reliance etc.

Over 20,000 new retail outlets are expected to open within this segment.

Major corporate retail like Wal-Mart and have started to try and take over

the Indian retail sector.

But in India the unorganized retail is a source foods and other necessities of

millions of Indians , major link between rural and urban societies. Not only

that it is also act like a convenience store for the customer offering right

product at right time at right place. In a country with large numbers of

people, and high levels of poverty, this model of retail democracy is the

most appropriate.

So these unorganized retail sector need to be promoted so that they can

organize & supply food to Indian consumer.

Now the question is how to promote this sector-

The suggestions might be-

(a) Establishment of Retailer co-operatives among retailers which is highly

required for the sustenance of the unorganized retail sector

(b) Merger

and buy-out of weak retailers by a stronger one that would give a new

horizon to the small retailer

(c) Setting up of franchisee organization may also help in strengthening the

position of the retailers. The franchiser can exert a tremendous control over

the way retailing is done.

(d) There must be good network connection between retail organizations, the

suppliers and other channel members to use compatible technology so that

they can build strong distribution set-up to satisfy the customers.

(e) Setting up of more and more non-store retailing centers would also

ensure a strong retailing organization. Non-store retailing makes

implementation of modern principles easier and less costly.

 (d) Moreover there must be a change in the mindset of the unorganized

retailer. They have to understand the pulse of the trend. They have to

understand, come forward & lead this change management then only this

Some of the organized stores

Vishal mega marts

The glory of Vishal Group’s 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 India’s enterprise.

The jewel in Vishal Group’s 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.

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 Group’s expertise in the field of 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.

The Founders

Mr.Ramchandra
Mrs. Uma Agarwal
Agarwal

Big Bazar
Big Bazaar is a chain of hypermarket in India, which caters to every

family’s needs and requirements. This retail store is a subsidiary of Future

group, Pantaloons Retail India Ltd. and is an answer to the United States’

Wal-Mart. Big Bazaar has released the doors for the fashion world, general

merchandise like sports goods, cutlery, crockery, utensils, and home

furnishings etc. at best economical prices.

Big Bazaar group offers more than 100 stores all over the country with an

amalgamation of Indian bazaars’ feel and touch with a convenience and

choice of the modern retail facilities. The retail format of the Big Bazaar

group includes Aadhar, Rural & Home-Town retail chain, Ezone home-

improvement chain, sportswear retailer, depot and music chain is few among

others.
History of Big Bazaar

The worldwide country chain, Big Bazaar, is formed by CEO of Future

Group, Mr. Kishore Biyani. The group do not promises more than what it

delivers. Their basic attraction associated with reasonable prices is their

Unique Selling Price.

Though, the products Big Bazaar stores stocks might not be advanced, but

the customers are assured to avail the worth of the money spent by them. In

2001, the group opened its first store on the VIP Road, Calcutta, which was

the primary departmental store offering regulated services of parking, steel

vessels, apparel, electronics etc under the one roof at the competitive prices.

Big Bazaar has become a massive hit with lower middle-class and middle

class people as a major client base.

At present, the Future Group comprises various formats and brands like

Pantaloons, F123, Copper Chimney, Etam, Staples, One Mobile, Urbana,

Brand Factory, LootMart, HomeTown and Central. The Big Bazaar has

several stores located all over the India, among that Chennai, Hyderabad,

Ahmedabad, Bangalore, Kolkata, Pune, Mumbai and Delhi is those metro

cities where the stores of Big Bazaars are located.

Facilities offered by Big Bazaar

• Online shopping: Big Bazaar has an official website,

FutureBazaar.com, which is one of the most favorite sites among

people of India for online shopping. FutureBazaar is an online

business venture of Future Group, which sells an assortment of

products such as fashion, which includes merchandise for men and

women, mobile accessories, mobile handsets and electronics like

home theatres, video cameras, digital camera, LCD TVs, kitchen

appliances and many more.

• Discounts: “Hfte ka sabse sasta din was introduced by the Big Bazaar,

wherein extra and special discounts were offered on Wednesday every

week, to attract the potential buyers into their store.

• Security check: At each exit of Big Bazaar, they use alarm systems or

Electronic Article Surveillance system, which detects the products

that has attached tags or not.

"Kirana Stores Vs Organized Retail"

Small stores, also called kirana stores, will continue to grow alongside

organized retail, but at a slower rate, and it might be a decade before such

store owners lose business to the big retailers, providing an ample window

for India to help make the smaller players part of the transition in retailing,

But in the recent times it is said that kirana stores are joining together to

combat the organized retail stores, so this will be going on all the time like

who is better, but right now the kirana stores are happy at the moment with

crisis going on people are coming back to kirana stores. India is currently the

twelfth largest consumer market in the world. According to a study by

McKinsey Global Institute, India is likely to join the premier league of the

world’s consumer markets by 2025, improving its position to the fifth.

But this growth is not going to happen is smooth way. Any change always

comes up with some friction, and Indian retail sector is and will be

witnessing the same friction.

Indian retail sector is still in its nascent form if we consider its full potential.

While most of the developed market of US and Europe and also some SE

Asian emerging market economies have reaped the benefits of modern retail,

India has not yet entered into advanced phase of modern retail forms.

Tug of war: organized vs. unorganized sector

Future of retail sector in India is swerving- on one side organized retail is

marching into life of urban consumers, while on the other our own

neighborhood ‘kirana stores’ are resisting fiercely with their existing strong

foothold. India today is at the crossroads with regard to the retail sector. A

shift between organized and unorganized retail sector is evident, which has

led to a number of speculations on the fate of Indian retail sector.

Unorganized sector cannot be ignored

In any newspaper or television channel, we find hordes of news about

happening in organized retail sectors, which is indeed fairly real situation.

While the role of organized retail sector in growth of economy cannot be

denied, but one thing is also of extreme importance that unorganized retail

format is a support to a large chunk of population- providing direct

employment to 39,500,000 individuals. So there is no way that government

or anyone can discount these foundation stone of Indian economy.

Changing landscape of Indian consumerism

The face of Indian consumerism is changing: not Indian consumerism is

evolving from “Bajaj Scooter family man” to “Bajaj Pulsar trendy

youngster”. This changing consumer’s taste and lifestyle, somewhere

automatically give some advantage to organized sector. This makes

imperative for unorganized retail sector to restructure itself in order to

withstand the increasing competition and to meet consumer expectations by

moving with trends. What they can do and what they are doing, some o these

issues will be discussed in future parts of article.

Role of government
As in other countries, government policy can and should play an important

role in modernizing the unorganized sector and improve its competitiveness.

But question is what should be exact role of government. Should it go for

policies for protection of traditional retailers by restricting organized retail

or encourage organized retail to reap benefits that are generated by it? What

should be mechanism to promote or protect one or other? Can government

act only as a facilitator or enablers or both?

In the said context, it is imperative to develop a strategic roadmap for

unorganized retail form to be able to survive, compete and keep the

economy growing
 HYPOTHESIS

A hypothesis consists either of a suggested explanation for an

observable phenomenon or of a reasoned proposal predicting a possible

causal correlation among multiple phenomena. The term derives from the

Greek, hypotithenai meaning "to put under" or "to suppose." The scientific

method requires that one can test a scientific hypothesis. Scientists

generally base such hypotheses on previous observations or on extensions of

scientific theories. Even though the words "hypothesis" and "theory" are

often used synonymously in common and informal usage, a scientific

hypothesis is not the same as a scientific theory.

Hypothesis may be defined as a proposition or a set of proposition set

forth as an explanation for the occurrence of some specified group of

phenomenon either asserted merely as a provisional conjecture to guide

some investigation or accepted as highly probable in the light of established

facts. Quite often a research hypothesis is a predictive statement, capable of

being tested by scientific methods, that relates an independent variable to

some dependent variable.

NULL HYPOTHESIS

A null hypothesis is a hypothesis (within the context of statistical

hypothesis testing) that might be falsified on the basis of observed data. The

null hypothesis typically proposes a general or default position, such as that

there is no relationship between two quantities, or that there is no difference

between a treatment and the control. The term was originally coined by

English geneticist and statistician Ronald Fisher.

The null hypothesis (often denoted by H0) formally describes some aspect
of the statistical "behaviour" of a set of data.

The Null Hypothesis is of this project report is that customers are highly

satisfied.

ALTERNATE HYPOTHESIS

Alternative hypothesis is the "hypothesis that the restriction or set of

restrictions to be tested does NOT hold." Often denoted H1. Synonym for

'maintained hypothesis.' The Alternate Hypothesis of this project report is

that customers are not satisfied

 Research Methodology

The purpose of methodology is to describe the process involved in research

work. This includes the overall research design, data collection method, the

field survey and the analysis of data.

Research is a common parlance refresh to a search for knowledge. One can

also define research as a scientific & systematic search for pertinent

information on a specific topic.

In fact, research is an art of scientific investigation. The advance learner’s

dictionary of current English lay down the meaning research as a careful

investigation & inquiry specially search for new facts in any branch

knowledge.

Research Design

Research Design is the arrangement for conditioned for data collection &

analysis of data in a manner that aims to combined relevance to research

purpose with economy in procedure.

A research design is a master plan or model for the conduct of formal

investigation. It is blue print that is followed in completing study.

The research conducted by me is a descriptive research. This is descriptive

in nature because study is focused on fact investigation in a well structured

from and is based on primary data.

RESEARCH PLAN

· Type of study: For completing my study I have gone for sample study

because looking at

the size of population & the time limitation it was not convenient for me to

cover entire

population. Hence, I have gone for sample study rather than census study.

Sampling Plan

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure that researcher would

adopt in selecting items to be inched in the sample i.e. the size of sample.

Sampling plan is determined before data are collected.

Steps in Sampling

Sampling Frame:
The list of sampling units from which sample is taken is called sampling

frame.

SAMPLING SIZE:

Total sample size is 25.

SAMPLING PROCEDURE:

The selection of respondents were accordingly to be in a right place at a

right time and so the sampling were quite easy to measure, evaluate and co-

operative. It was a randomly area sampling method that attempts to obtain

the sample of convenient.

Q2. If organized then what type of organized stores?

A) Branded Showrooms

B) Malls
 OrganizedStores
00

Branded Showrooms
Malls
49%
51%

Q3. If Unorganized then what type of unorganized stores?

A) Kirana Shops

B) Small society shops

Q4.Do you think is there any price difference between products of organized
and unorganized stores?
 A) Yes

B) No

Q5. Do you think organized stores provide more facilities then unorganized
stores?
A) Yes
 B) No

FacilitiesProvided

Yes No

Q6. Do you find any quality difference between the products of both the
stores?
A) Yes

B) No
Q7) Do you think that the price difference is due to the extra facilities
provided by the organized stores?
A) Yes

B) No
Q8. Is the method of payment in organized stores is better then unorganized
stores?
A) Yes

B) No
Q9. Do the facilities provided by organized stores attract you?

A) Yes

B) No
Q10. Which store do you find more comfortable for shopping?
A) Organized

B) Unorganized
 Organized
Unorganized

Data Analysis

Organized retail in India poised to reach Rs.2000 billion mark employment

generation for 12 million people. Commerce and industry minister Kamal

Nath releases India Retail repot 2007; launches Indiaretailing.com

New Delhi, 9 th January 2007, Organised retail in India has the potential to

add over Rs 2,00,000 crore ($45 billion) business by the Year 2010

generating employment for some 2.5 million people in various retail

operations and over 10 million additional workforce in retail support

activities including contract production & processing, supply chain &

logistics, retail real estate development & management etc., said Mr. Kamal

Nath, Commerce & Industry Minister releasing the IMAGES India

Retail Report 2007 at a high powered industry and media meet at Udyog

Bhawan today

After leading the IT bandwagon, India is poised to grow as a Retail hub. It is

imperative to sustain the modernization of the retail sector and dispel the

myth that the game is big Vs small or traditional Vs modern or organized Vs

unorganized or local Vs foreign . What is needed is to create an appropriate

environment to propel retail where all benefit, he said.

India's huge population, he said, has the potential for mammoth consumption

if given the power of spending and that is only possible through large scale

development generating employment which is already happening with retail

as the driving force.

Talking about the key challenge areas for the retail growth Mr. Nath

expressed concern over escalating real estate cost, scarcity of skilled

workforce and structured supply of merchandise which he assured would be

tacked in co-operation with the retail industry and the support organizations.

Revealing key figures from the India Retail Report 2007, Amitabh Taneja,

Chief Convenor of India Retail Forum said that the organised sector

accounted for Rs. 55,000 crore ($12.4 billion) business at current prices in

the calendar year 2006 increasing its share to 4.6% of the total Indian Retail

Value that stood at Rs. 12,00,000 crore ($270 billion). Moving forward,

organized retailing is projected to grow at the rate of about 37 per cent in

2007 and 42 per cent in 2008.

“Going by the current growth trend and considering the fact that existing

prominent players in organised retail have stepped up their expansion drive

with Reliance announcing big plans and other Indian corporate houses too
evincing keenness on investing heavily in this sector as also the inking of the

joint-venture between the world's largest retailer Wal-Mart and Bharti – The

organised retail in India has indeed gained top speed and is now on the verge

of take-off, Taneja added.

According to IMAGES India Retail Report 2007, of the Rs.12,00,000 crore

retail market, food & grocery retail is by far the single largest block

estimated to be worth a whopping Rs.7,43,900 crore, but more than 99 per

cent of this market is dominated by the neighbourhood kirana stores.

Deliberating on the advantages of the organized retail, Mr Nath talked about

the increasing efficiencies in the agricultural sector by removing

intermediaries in the food supply chain. While urban customers benefit from
reduced prices of farm sector goods, rural farmers benefit by way of higher

returns for their produce.

With several States allowing retailers direct access to farm produce, there is

a new revolution taking shape in rural India. Farmers are cultivating crops as

per specifications and requirements of retail companies such as Reliance,

ITC, Godrej and many others. More than 2,000 small farmers, for instance,

are benefiting from such arrangements in Andhra Pradesh, he said.

Talking about the global perception about India, about its economic might

and potential in terms of market size, Mr. Kamal Nath said that there had

been a drastic change over the last few years. While the buoyant

manufacturing and services sectors had contributed in fuelling consumption

demand in urban as well as rural areas, the government on its part remained

committed to improving infrastructure and providing a congenial

environment for indigenous business modules to blossom and harness

domestic as well as foreign investment to optimum levels. Economic

prosperity also meant higher standards of living and higher consumption

levels, and only an efficient and organised Retail sector could ensure and

sustain this growing demand of the evolved consumer.

“But unlike the experiences in most other countries, growth of Indian retail

is not going to be a staggered and time-taking process: India has already

shown the world how quick it can adapt to hi-tech products and services and

will again set a record of sorts in setting up world class retail formats across

the country in record time. In the next five years India should have retail

entities strong enough to compete with the best in the world”, added Mr.

Nath.

At present, he said, India's retail sector is largely unorganized, with about 15

million tiny outlets catering to consumer needs across the country – it

employs the second-largest number of people after agriculture. Organised

retail is now focused primarily on the 300 million urban "middle classes''

and an additional 200 million rural rich, who form a consumer market worth

more than US$100 billion. So, there is enough ground for the modern and

the traditional formats to co-exist.

Narrating India's economic growth story Mr. Nath highlighted three

important things:

One - that here is a society in which the fruits of development are more

evenly spread, in which democracy is more real and palpable to the mass of
the population, which makes for a stable social environment that is attractive

and reassuring;

Two - that India is an enormous market, of which you are seeing only the tip

of the iceberg;

And Three - the tremendous resilience of India: we survived the zooming oil

prices, the fluctuating dollar and global recession, with barely a hiccup.

The Indian economy is integrating with the world, and yet it simultaneously

has its own dynamics, which cushion global shocks as in no other country.

India had kept the retail sector largely closed to outsiders to safeguard the

livelihood of nearly 15 million small storeowners and only allows 51 per

cent foreign investment in single-brand retail with prior government

permission. FDI is also allowed in the wholesale business. Single-brand

retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate

now on their own. Metro is already operating through the cash-and-carry

wholesale mode.

The issue of Foreign Direct Investment (FDI) has been debated time

and again as the Indian Government has been under pressure to open up

further. The policy makers continue to explore areas where FDI can be

invited without hurting the interest of local retail community. Mr. Kamal
Nath confirmed that the Government is considering opening up of the retail

trading for select sectors such as electronic goods, stationery, sports goods,

and building equipment.

“To understand the reasoning and implications of such moves it was vital to

size up the entire retail market in various segments and consumption levels

across product categories with share of the organized segment and it was just

the right time for India Retail Forum to take the initiative of researching the

scope of retail businesses in India”, said R S Roy, Editorial Director, Images

India Retail report 2007.

Mr. Nath commended the pioneering efforts of the Images Group and India

Retail Forum in compiling and pooling together relevant yet highly scattered

and difficult to get information on this vital sector, which helps investors get

a better understanding of the unfolding scenario. India Retail Report 2007

will set benchmark figures on consumer spend, retail market size across key

categories and segments with scope and also performance of key players and

their expansion plans.

In his address Dr. Ajay K Dua, Secretary, Department of Industrial

Policy & promotion, Ministry of Commerce & Industry said, “The

growth of the Indian economy is now manifesting itself in the growing

purchasing power of its citizens. A ten to twelve per cent increase in the

economy's disposable income and a much higher one in urban areas is also

reflecting itself in the way goods and services are bought and sold”.

“There would be a real revolution in the Indian retail industry, if the changes

being witnessed in the metropolitan and other tier-one towns percolates to

all the 784 urban settlements, with populations above 50,000 persons. This is

likely to happen as the real estate prices in the large metropolitan towns are

increasingly becoming prohibitive and consequently giving distinct

advantage to those who are already in the business of retailing, viz., the

traditional mom & pop stores. Rural and semi-urban incomes are also

expectedly to grow much faster in future, once the agriculture growth rate

pushes up. Our civic laws concerning construction and property

development also need to be re-looked, as the earlier convenience-stores get

replaced by shopping malls and other formats of organized retail trade”, he

added.

Expressing concern over the consumption and mall development trend,

Editorial Director of this mega research of India retail research, R S Roy

called upon the entire retail fraternity, concerned Govt. departments and the

supporting organizations to work towards giving Indian retail - a face of

India. “India Brand Story can travel across the globe with 'Delhi Hat' type
shopping cum entertainment centre opening not only across India but all

over the world. Public private partnership can revitalize the formats like

Khadi Bhawans that runs one of the largest retail networks in the world, and

also govt. state run emporia,” he said.

As India emerges as one of the most potential markets for global brands and

retailers and retail reinvents the way modern Indians celebrate their spending

power, India that takes pride in its rich culture, heritage, art, craft and variety

of wares must capitalize on this ever escalating consumerism and channelise

the spending towards healthy consumption for overall development of the

country.

Initiated by India Retail Forum and Images F&R Research, world's some of

the top global research & consulting firms like AT Kearney, Ernst & Young,

PWC, Technopak, KPMG, ICICI, AC Nielsen-ORG Marg, Synovate,

Cushman & Wakefield etc. contributed for the India Retail Report 2007

research.

IMAGES India Retail report 2007 sizes up the entire retail market in various

segments and consumption levels across product categories with share of the

organized segment. Profiling formats and retailers therein, the study, full of

facts and figures, is expected to reveal many interesting facets of the Indian
retail industry that could open up newer avenues of business both for the

established players and the new comers as well.

A truly international presentation in a coffee table format, the IMAGES

India Retail Report 2007 also carries visionary thoughts of Shri Kamal Nath,

Dr. Ajay K Dua, and over 40 thought leaders from the retail industry

covering almost every aspect of retail business.

The occasion also saw the launch of a path breaking retail information

interface portal Indiaretailing.com by Mr. Kamal Nath.

“Indiaretailing.com has an ambitious philosophy personified by these

words: “The Home Page of the Indian Retailing Industry”.

Indiaretailing.com is being designed to be just that – with a 24/7 update and

news feed team that gets you the retail intelligence that affects your business

in every way,” said Pallav Moitra, Head of this revolutionary concept.

“In the evolution of Indian retail in-time information will be vital to keep the

industry and all its stakeholders abreast of the developments across. This

exceptional portal is also aimed at the retailing community around the globe,

giving a wide angle view and analysis of the business of Retail in India.

Alongside interactive features such as interviews, chats and business

development tools, it will also contain exclusive and investigative editorial

content that we can promise, no other media has access to”, he added.

Besides retail news feeds, indiaretailing.com will boast an exclusive

database of retailers, retail real estate developers, retail technology and

systems firms, retail finance outfits, store design and shop fit pros, human

resource sourcing and jobsite management, exclusive video interviews, live

coverage of retail events and many more.

The portal is expected to have around 200000 page views in the very first

month of operation and is strongly geared up to enjoy a very high and

filtered subscriber number. To begin with the subscription number for daily

News Letters is expected to reach over 25000 key people in the retail

industry.

Sources of Data Collection

Primary:

For my survey primary data have been used as a questionnaire to collect the

data.

SECONDARY:

The secondary data has been collected from the following modes:

· Books
· Data through internet sources.

Findings

In this study we had find out that in today’s world more then 50% of the

total population is interested in shopping from organized retail stores.

From the study we have concluded that consumers think that there is

quality as well as price differentiation between organized & unorganized

retail stores, & this differentiation is due to the extra facilities provided by

the organized retail stores.

Suggestions

*People should not attract towards the facilities provided by organized

stores.

* Sometimes the organized stores charge high prices, so consumer should be

aware.

*Consumers should also have there attention towards the quality of the

products.
 Limitations of the Study

· I will have to rely upon the information get from secondary sources and

given by respondents, which may not be fully true.

· This study will be limited to only some areas of Moradabad in Uttar

Pradesh.

· It is only for short period of time.

· Lack of professional approach since researcher is a student

· The sample size is only 25 so the sample may not be truly representative of

Moradabad’s population.
 Webliography

www.wikipideia.com

www.google.com

www.relianceindustry.com

www.vishalmegamarts.com

www.bigbazar.com

www.raheja.com
 Annxure

Q1. What type of retail stores you prefer?

A) Organized
B) Unorganized
C) Both

Q2. If organized then what type of organized stores?

C) Branded Showrooms

D) Malls

Q3. If Unorganized then what type of unorganized stores?

C) Kirana Shops

D) Small society shops

Q4.Do you think is there any price difference between products of organized
and unorganized stores?

C) Yes

D) No

Q5. Do you think organized stores provide more facilities then unorganized
stores?
C) Yes

D) No
Q6. Do you find any quality difference between the products of both the
stores?
C) Yes

D) No

Q7) Do you think that the price difference is due to the extra facilities
provided by the organized stores?
C) Yes

D) No
Q8. Is the method of payment in organized stores is better then unorganized
stores?
C) Yes

D) No

Q9. Do the facilities provided by organized stores attract you?

 C) Yes

D) No

Q10. Which store do you find more comfortable for shopping?

C) Organized

D) Unorganized