INTRODUCTION OF THE TOPIC

V2 Retail Limited is a retail company. The Company is engaged in the business of retail sales of

garments, textiles, accessories and consumer durables products in India. The Company carries on the

business as trader, dealer, agent, distributor, consignor, consignee, retailer, job work, scourer,

spinner, weaver, finisher, dyer, tailor and draper, and cutter of garments. It is also engaged in the

import and export of all garments of men, women and children. The Company is also engaged in the

business of retailing of products, such as apparels and household goods. The Company offers a

portfolio of products, including apparel and non-apparel. It sells ready-made and other consumer

goods, such as footwear, toys, games, handbags, cosmetics, home furnishing, decor product and

sports items. It has 27 stores in India, out of which four are in Delhi- National Capital Region, 11 in

Bihar, six in Uttar Pradesh, two in Odisha, and one each in Uttarakhand, Jharkhand, Karnataka and

Assam.

V2 Retail Ltd is one of fastest growing retailing groups in India. The company offers a portfolio of

products, including apparel, non-apparel and fast moving consumer goods. The company sells

readymade apparels, household merchandise, and other consumer goods like footwear, watches,

toys, toiletries, grocery items, sports items, crockery, novelties and gifts. The company's subsidiaries

include VRL Foods Ltd, VRL Movers Ltd, VRL Consumers Goods Ltd, VRL Fashions Ltd and

VRL Infrastructure Ltd. Vishal Retail Ltd offer affordable family fashion at prices to suit every

pocket. Their outlets cater to almost all price ranges. The showrooms have over 70,000 products

range which fulfills all household needs. The cost benefit that is derived from the large central

purchase of goods and services is passed on to the consumer. Vishal Retail Ltd was incorporated on

July 23, 2001 as Vishal Retail Private Ltd. In November 2001, the company acquired the

proprietorship firm Vishal Garments & The Vishal Garments. In the year 2002, they opened their
first store in Delhi. In the year 2003, the company acquired the manufacturing facilities from Vishal

Fashions Private Ltd and V2 Apparels as a going concern and set up a manufacturing unit in

Gurgaon. In the year 2004, the company started their largest store at New Delhi having an area of

80,000 sq ft. The company was converted to a public company on February 20, 2006. During the

year 2006-07, the company opened up three new stores at Patna in Bihar, Karnal in Haryana and

Dahisar in Maharashtra. During the year 2007-08, the company established five new companies,

namely VRL Foods Ltd, VRL Movers Ltd, VRL Consumer Goods Ltd, VRL Fashions Ltd and VRL

Infrastructure Ltd for diversifying the business operations. Also, they set up their manufacturing

units at Manesar and Dehradun, with production capacities of 1.5 million pieces each per annum.

With this, the company is having three manufacturing facilities with total installed capacity of 4.5

million pieces per annum. During the year, the company added 52 new stores, out of which 34 were

in Tier-III cities, two in Tier-II cities and 16 in a Tier-I city. Also, they added 9 warehouses with an

area of 581,640 sq ft, taking the total number of warehouses to 29 spread across 1.1 million sq ft of

space. Also, they added a fleet of 40 trucks taking the total number of trucks in the fleet to 98. As on

March 9, 2009, the company had 182 stores spread across India. In March 2008, the company

entered into a an agreement with Hindustan Petroleum Corporation Ltd, in which Hindustan

Petroleum Corporation Ltd will provide space to the company for either Retail store or Warehousing

at their mutually selected retail outlets. The company opened two such stores on a trial basis and had

plans to increase it to 20-25 stores. The company plans to open nine new formats two categories in

apparel, fashion mart and separate formats for menswear and women's wear, restaurant & consumer

durable as well. They are intending to open new stores through franchisee model to minimize the

companies cost in opening up stores and minimize the risk. The company is also working in the

feasibility of launching the convenience model (small formats through franchisee). These stores

would have a size of about 800-2000 sq ft.

V2 Retail offers an unparalleled retail mix combined with value and variety to its shoppers. This

fashion avenue gives an extraordinary experience with an embracing portfolio of product offerings.

V2 retail believes in offering complete Value for money to the shoppers through its large Variety of

Smart, Trendy, Fashionable apparels across categories under one roof.

Our presence in 17 states of India with 77 high fashionable Operational stores, make us stand

amongst the pioneers in setting up unique precincts with modern ambience retail chain. We

dedicatedly lead the significant shopping experience to various small towns and cities like Patna,

Sagar, Itanagar, Varanasi and many more.

Marketing is the art of creating, satisfying customers by meeting the needs of customers and by

creating value satisfaction for them. As Peter Drucker says “the essence of marketing is that the

entire business has to be seen from the point given of the customer”. However, customers face a vast

array of product and brand choices prices, supplies and to understand the needs and preferences of

the customers it becomes imperative for us to carry out research together information.

We believe that customers estimate which offer will deliver the most value to them and which will

deliver and maximize value, within the bounds of research costs and limited knowledge, mobility,

and income they form an expectation of value and act on it. Whether or not the offer lives up to the

value expectation affects both purchase and repurchase probability.

The purpose of any Marketing research is to provide information at a specific time on customer,

trade, competition and the future brands, so as to enable marketers to formulate successful strategies

in their quest for customers mind share and market share.

The research helps the marketers to find out the attributes and variable that influence the customers

behavior towards a given product offering and it shapes the attitudes of the customers favorably

towards a specific product, thus by analyzing these undertones the researcher can find out the levels

of customer satisfaction, and the results of the marketing research can help the marketers to analyze

the weak spots in their marketing strategies and can reformulate their strategies so that they can

satisfy their customers and maximize their brand loyalty and profitability.
COMPANY PROFILE

“Future is thinking beyond horizon” & in order to keep its pace with the modern retail, V2 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, convenios as well as specialty
stores and inspiring local retailers to grow along with the big names. The group has tied up with

HPCL to open corner stores at their petrol pumps and in addition to the above V2 has come up with

an institute to train manpower for the service industry. As of December 1, 2010, it operates 172

retail stores, including two stores which are operated by their franchisees. These 172 stores are

spread over about 24,00,000 square feet and are located in24 states across India. In its efforts to

strengthen their supply chain, it has set up seven regional distributions centers and an apparel

manufacturing plant. Today V2 Retail Limited, Flagship Company of V2 Group, engaged in Hyper

Market stores with an average area of 25,000 to 30,000 sq. ft. According to Mr. Ram Chandra

Agarwal, CMD, V2 Retail Limited, the group owes its origin to a small 50 sq ft shop in Kolkata's

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 Calcutta's Esplanade area in 1997, under the banner of Vishal Garments. He was

involved in all the aspects of the business: right from sourcing the garments to interacting with

customers. And this led to his greatest finding “The V2 Group.”After identifying the immense

market in fashion garment for the masses, He moved to Delhi in 2001 and opened his first store in

Delhi’s Rajouri Garden by the name of V2 Mega Mart (The jewel in V2 Group’s crown) and then

there was no looking back for Mr. Ram Chandra Agarwal. At present, in addition to garments, V2

Mega Mart stores retail the entire range of household products, FMCG and electronic goods. V2

prices are roughly 15 to 20 per cent less than other mass market garment labels. Mr. Ram Chandra

Agarwal, CMD, V2 Retail Limited believes that the shopping habits of Indians are changing due to

income,higher aspirations, relative increase in the younger population, & the change in attitudes

towards shopping. The emphasis has changed from price consideration to design, quality and trendy.

Age is also a major factor that affects the spending decisions of an individual. Consumer spending is

an important factor that affects the economic growth and development in a country. As a trend,
consumer is more educated. He has access to all reforms taking place through various arrays of

communication. He is becoming a “value shopper” everyday. Keeping this in mind, the group is

now looking for franchisees to join hands with Vishal and grow under common banner.

This partnership will help mall retailers to survive the onslaught of organized retail as it will

enhance their competitiveness. Small stores can avail of the benefits on account of the economies of

scale, a key advantage for big retailers. As per the plans, Vishal Retail will completely take over the

Supply chain of its franchise &  provide them with technology, new practices, visual merchandising

skill & special promotional schemes, besides its brand and customer base.

Some of the Franchisee exclusive business categories are:

 Mens Fashion

 Ladies and Kids

 Footwear 

 Toys and Games

 Home – General

 Convenience (FMCG)

 CDIT

 Watches

 Mobile
It follows the concept of value retail in India. In other words, their business approach

is to sell quality goods at reasonable prices by either manufacturing them self

or directly procuring from manufacturers (primarily from small and medium size vendors and

manufacturers). It end eavour to facilitate one-stop-shop convenience for their customers and to

cater to the needs of the entire family. It believes this concept has helped them grow to their current

size within a short time frame of their years. Mr. Ram Chandra Agarwal has been ranked as

the 28th most pitiful person in the Indian retail industry. In order to reduce costs and take

advantage of economies of scale it has embarked on backward integration of their products. Their

apparel manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain,

it has set up seven regional distribution centres located around Kolkata, Thane (Maharashtra), Jaipur

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.

Further, it has focussed on developing a cost and time efficient distribution and logistics

network, which currently comprises seven distribution center sand a fleet of trucks for

transportation.“Retailing is an engine for taking merchandise to the end-users. There is

a lot of opportunity in this sector for us since demand of the potential consumers are not being met

under the existing facilities. Therein lies the road to success.” says Mr. R C Agarwal.
Mr. Ram Chandra Agarwal, Chairman & Managing Director

He holds a bachelor’s degree in commerce from St. Xavier’s College, Kolkata. Mr. Agarwal has

more than 20 years of experience in the retail industry and has been with VRPL since their inception

in 1997.
 

Mrs. Uma Agarwal, Executive Director

She holds a bachelor’s degree in arts. Mrs. Agarwal has more than 7 years of experience in there

retail industry. She has been associated with accounts department of VRPL. 

Mr. Surendra Kumar Agarwal, Executive Director

He holds a bachelor’s degree in commerce . Mr. Agarwal has more than 17 years of experience in the retail industry. He

has been associated with store development and management at various locations of VRPL.

Mr. Bharat Jain, Independent Director

He holds bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather garments

and accessories and has more than 23 years of work experience. Mr. Jain joined VRPL board on

may 8, 2006.

 Mr. Rakesh Agarwal, Independent Director

He holds a master’s degree in commerce. Mr. Agarwal is currently engaged in roto-moulding

industry has more than 20 years of work experience. Mr. Agarwal joined VRPL Board on October

31, 2006.

OUR PROMOTERS AND GROUP COMPANIES Our Promoters

The following individuals are the Promoters of our Company. (a) Mr. Ram Chandra Agarwal; (b).

Mrs. Uma Agarwal and (c). Mr. Surendra Kumar Agarwal.

VISION STATEMANT

We share the vision and belief that our customers and stakeholders shall be served only by

creating & executing future scenarios in the consumption space  leading  to  economic development

Because of increasing number of nuclear families, working women, greater work pressure and

greater commuting time, convenience has become a priority for Indian customers. They

wantever thing under one roof for easy access and multiplicity of choice. The growth &development

of organized retailing is driven by two main factors – lower prices and benefits the customer can’t

resist. India is rapidly involving into a competitive market place with potential target consumers in

the niche middle class segments. The market trend indicates tremendous growth opportunities.

MISSION STATEMENT
We shall deliver Everything, everywhere, every time for every Indian Consumer in the most

profitable manner.

VRPL’s BUSINESS:-

VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL

acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s

Vishal Apparels .Subsequently, with evolution of retail industry in India and change

in consumer aspirations, VRPL diversified their portfolio of offerings to include other retail

goods. Currently, VRPL sell ready-made apparels and a wide range of household merchandise and

other consumer goods such as footwear, toys, watches, toiletries, grocery items, sports

items, crockery, home furnishing,  beverages, drinks, gift and novelties. VRPL follow the

concept of value retail in India. In other words, VRPL’s business approach is to sell quality goods at

reasonable prices by either manufacturing themselves or directly procuring from manufacturers

(primarily from small and medium size vendors and manufacturers). VRPL endeavor to facilitate

one-stop-shop convenience for their customers and to cater to the needs of the entire family. VRPL

believe this concept has helped them grow to their current size within a 25.

(a). Unicon Marketing Private Limited; (b). Ricon Commodities Private Limited; and (c). Vishal

Water World Private Limited .In addition, the following HUFs are the Promoters of our Company:

(a). Mr. Ram Chandra Agarwal (HUF).

Name of Shareholders & Number of Shares % of shareholding

1. Unicon Marketing Private Limited 315,000 49.532. Ricon Commodities Private Limited 300,000

47.173. Mr. Ram Chandra Agarwal 12,010 1.894. Mrs. Uma Agarwal 9,010 1.42

Total 636,020 100.00 

short time frame of 10 years .In order to reduce costs and take advantage of economies of scale

VRPL have embarked on backward integration of their products. VRPL’s apparel manufacturing
plant is located at Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up

distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), 

Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have

focused on developing a cost and time efficient distribution and

logisticsnetwork, which currently comprises seven distribution centers and a fleet of trucks for trans

portation

VRPL (V2 Retail private ltd.) Business Processes

VRPL’s business process can be summarized as below:

Establishment of Stores:

  Selection of location

In selecting location for a new store, VRPL start by identifying the city/town. VRPL

target primarily cities/towns which may be classified as Tier II or Tier III cities. In

this regard, analysis of the demography, literacy levels, nature of occupation and

income levels. Within a city/town, VRPL target locations with good infrastructural facilities

such as easy accessibility, provision for water, electricity, parking, security and other

basic amenities. VRPL prefer to locate their stores in areas where real estate is

available at reasonable prices. The efforts of  VRPL’s retail business are targeted towards

families having total income which can be classified under the “lower middle” and “middle” income

groups. Accordingly, VRPL plan their strategy to search for areas within cities where such

customers are domiciled in large numbers and make efforts to locate themselves within the

customers.VRPL believe that adoption of standard formats for their stores has led to their brandestab

lishment and identification among their customers and will increase their base of loyal

customers. In pursuance of this, they have adopted standard parameters for store
planning and establishment. For ensuring standardized formats of their stores, VRPL

consider various factors, such as internal and external décor and colour schemes,

allocation of store space, stock mix and pricing and accounting methods.

Insurance

VRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz, RoyalSundaram a

nd IFFCO-TOKIO for their existing stores, distribution centers, manufacturing facilities and trucks.

VRPL insurance policies include comprehensive coverage for electronic equipment, fire and special

perils and burglary. Further, VRPL has filed a claim of Rs. 22.50million on account of fire in their

store at Meerut as on July 7, 2006. In this regard, they have received Rs. 7.50 million as an interim

payment.

Factories

VRPL’s existing manufacturing facilities are located at Plot No. 224, Phase 1 Udyog Vihar,

Gurgaon, for which they have leasehold interest until May 4, 2009. In addition, VRPL have recently

acquired freehold interest in relation to a land admeasuring 7.24 acres in

Dehradun,Uttaranchal, where they are exploring the possibilities for establishment of another manuf

acturing facility.

Other Properties

VRPL have recently acquired freehold interest in relation to a land admeasuring 82,830 square feet

in Hubli, Dharwad.

Merchandise Planning
VRPL’s merchandise planning is based on the concept of category management rather than

traditional brand management practices.

Apparels and Non Apparels

Under category management for, say, apparels, VRPL create and cater to products across length and

breadth of a category at different price points, fabrics, designs, shapes, seasons, colors and

sizes. VRPL formulate annual merchandising plan for each division of merchandise taking into

consideration factors such as past sales data, regional customer tastes and preferences, number

of stores (established and proposed),likely fashion and trends, inhouse production resources,vendor 

management and price. Each division is further divided into major categories (for instance, men’s

apparel as a division is further divided into three major categories, namely, upper, lowers and sports

and ethnic wear). These major categories are in turn segregated into various subcategories. For

example, men’s upper as a major category would be further divided into several sub-categories such

as formal shirts, casual shirts, party wear etc. Each sub-category consists of pre-defined SKUs,

which are classified on the basis of price point, brand, style, pattern and

size.VRPL draw annual sales projections for different SKUs &, accordingly, ascertain their sourcing

requirements. Based on such information and lead time estimates for supplies, purchase orders with

delivery schedules are issued. The inventory position for each SKU is reviewed

fortnightly taking into account the actual sales and variations from the budgeted plans. Regular visits

to the stores are made by the category merchandising team to identify the slow-moving-SKUs and

explore the options to expeditiously dispose of them. For certain non apparel categories, their

merchandise planning and scheduling also depends on introduction of new products and schemes by

the vendors. For instance, if a branded home appliance manufacturer replaces a product with a new
version, then their planning for the product would need to be reviewed based on the acceptability of

the new version.

In-house Manufacturing 

VRPL benefit from backward integration and in-house manufacturing of part of the

apparel products sold in their stores. Through their manufacturing capabilities, VRPL

is able to attain relative independence from intermediaries with a competitive

advantage in terms of value and cost. VRPL use their manufacturing strengths to focus on

enhancing product knowledge and their experiences from manufacturing enable them to negotiate

better terms from the vendors and job workers.

VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The

manufacturing plant is well-equipped with fully automatic machines for fusing, buttoning,

embroidery and welt pocket-making operations. The factory has a capacity to manufacture 5,000

pieces per day. The plant was commissioned in 2004 and achieved a capacity utilization of 80%. It

has 450 machines and is operated by 500 workers. Further, VRPL are exploring the possibilities for

establishment of another manufacturing facility, for the purposes of which they have acquired

certain portions of land admeasuring 7.24 acres in Dehradun, Uttaranchal. In addition to in-house

manufacturing, they have outsourced some parts of the manufacturing to “job workers” who work in

their factory premises. VRPL undertake quality control measures by way of random sampling to

ensure the pre-determined quality standards are met. To verify that the quantity of

supplies is as per the order, they undertake count-check for every receipt of the goods.

VRPL’s manufacturing team works closely with their design team to understand trends,
develop products, value engineer and finally create season wise collection that cater to

regional tastes.

Purchasing 

Purchasing or vendor management assumes critical importance in retail business where one has to

deal with multiple products. VRPL have in place a vendor management system, under which they

identify vendors all over the country and overseas and seek to develop alliances and arrangements

with them. They regularly interact with the vendors and share information such that the vendors

remain familiar with their goals and targets. It has been their strategy to procure goods from small

and medium sized vendors and manufacturers, which they believe has led to reduction in the cost of

goods they sell and increase in their profitability. Upon ascertaining the

procurements needs based on each SKU, VRPL explore the various options for sourcing the

products. They continuously strive to procure goods from the place of origin to reduce the costs and

control the quality. For identifying the vendors, VRPL assess the various possible options on factors

such as capacity, credibility in the market, quality awareness and experience. After identifying the

vendors for the goods, VRPL place purchase orders based on their SKU-wise plan, estimated lead

time of each vendor and quantity to be procured from each vendor.

VRPL follow a policy of ‘payment on delivery’ to negotiate better prices with the vendors and in

certain cases they also release payments in advance. To ensure quality of supplies, VRPL

check quality by way of random sampling at the time of receipt of the goods. To verify that the

quantity of supplies is as ordered, they undertake count-check for every receipt of the goods. For

FMCG products, VRPL procure from large as well as small and medium size manufacturers. For

procurement from the large manufacturers or their distributors, they endeavor to enter into formal

arrangements for supply of products to all VRPL stores, such that they are able to derive fixed

margins from sales of such products, irrespective of the locations. Under these agreements, they
benefit from special discretionary discounts and offers directly from the manufacturers or their

distributors.

V2 Retail Apparels Brand

V2 Mega Mart is one of India’s fastest growing retail chains.. The chain currently has172company

stores in24states / 110 cities in India. The Vishal brand is known for great modern style for men,

women and children. Vishal offers high level fashion styling. Since 1986, our name has been

synonymous with quality, value and fashion integrity. We offer an unparalleled collection of clothes

selected for quality and contemporary styling. Vishal manufactures majority of its owngarments and

out sources some under its direct quality supervision. This enables us to offer the lowest possible

and most reasonable prices. Our goal is to provide a range of fashion wear to suit every pocket. Our

product mix represents the most current fashion trends in tops, bottoms, formals and accessories for

men, women and kids. Our courteous staff will ensure that consumers get a perfect fit. Popular

Brands are: 

Zeppelin :Mens Shirts & Trousers

Fizzy Babe: Ladies & Kids Girls

Kitaa Studio: Mens Shirts & Trousers

Jasmine: Ladies & Kids Girls

Blues &Khakis : Mens Trousers Zero Degree : Kids Boys

Paranoia: Mens Shirts & T-Shirts
Soil: Mens Shirts

Chlorine: Mens Shirts

Massa Bay: Mens Trousers &Bermudas

Fume: Mens Shirts, T-Shirts, Under Garments. 

Apparel Manufacture

The basic raw materials required for the manufacturing process of apparels includes fabrics

andaccessories. VRPL merchandising teams source fabrics from local manufacturers in India

depending upon their production plan. VRPL also source fabrics from the place of origin. VRPL

source various other components and accessories from vendors in various parts of the country and

also import them from China.

Inventory Management, Distribution Network and Logistics

VRPL’s distribution network and logistics encompasses all activities to ensure that goods are

dispatched in right quantities and at right time to reach stores with sufficient time in hand

to promptly cater to customer demands and optimization of inventory position. They have built a

system to monitor the inventory position on a real-time basis at each store, under which a stock

requisition or delivery order is generated when pre-determined stock or re-order levels are reached.

The re-order levels for stores are determined based on factors such as display levels, lead time for

replenishment and average daily sales. VRPL review these re-order levels on continuous basis to

factor in variances in demand based on seasons, trends and promotional

schemes.VRPL have seven distribution centers over  approximately  385,033  square  feet.  These

distribution  center are located  around Kolkata (West Bengal), Thane (Maharashtra), Jaipur

(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and

Mahipalpur (New Delhi). VRPL have clearly demarcated the stores which will be serviced  by  each

distribution centre. The reorder levels for distribution centers are ascertained on the basis of factors

like average daily sales of all the stores services, lead time for replenishment and buffer stock, which

caters to both the existing and proposed stores to be fed. As for the stores, they regularly review

these re-order levels. VRPL’s distribution centers and stores are connected through company-wide

virtual network connection through broadband which helps to efficiently manage their network of

stores and distribution centers throughout the country. They primarily utilise their own vehicles to

transport the inventory to their stores from the distribution centers. In addition, VRPL use

the services of logistic solution providers including low cost transport service providers in order to

deliver products on time to VRPL stores and optimize transportation costs. Distribution centers

operations have been stream lined through the standardisation of racking system, layouts and

implementation  of automatic  replenishment system. Under arrangements with some of their

merchandise manufacturers, they receive payment on account of display of their products.

Product Categories

HOME FURNISHING

Drawing Room, Bedroom, Door ,Mat ,Bed Sheet, Carpet, Pillows, Curtains ,Pillow Cover ,Apron

Bath, Mats Kitchen, Napkin ,Towel, Gift Sets.

FOOTWEAR
 Boys Girls

Shoes ,Slippers, Sandals

Ladies Mens

Shoes ,Slippers, Sandals

MENS ACCESSORIES

UpperLowerShirt ,Casual Jeans(MP),Shirt Formal, Cotton Trouser(MPC),Ethnic & Sports ,Winter 

Wear, Night Suits, Suit(WMC),TShirts,Blazer(WMB),Windcheater(WMW),Sherwani,Jacket.

LADIES ACCESSORIES Upper Lower Kurta, Pants ,Jeans, Skirt ,Top, Capri

Ethnic, Winter Wear, Nighty ,Jackets ,Lancha ,Stawl ,Sharara Blazer ,Salwar ,Suit ,Track Suit.

HOUSEHOLD
Dinner Set, Jug,Cake ,Server ,Home Aids ,Pressure Cooker, Non Stick Floor, Wiper ,CookerHandi,

Sanitary ,Brush, Pressure Pan ,Dosa Tawa,General Plastic, GoodsElectrical App,Bone China.Coffee, 

Mug ,Chopper,Soup Set,Bucket,Microwave Oven, Dessert Set,Glass Ware ,Thermo Ware ,Porcelain

Cup, Tiffin Cup, & Saucer .

LIFESTYLE

Time Zone Opticals Gifts & Novelties, Ladies Wrist Watch, Ladies Sun Glass, Flower Vase,

Mens Wrist Watch, Mens Sun Glass, Key Chain, Mens Accessories ,Electric & Electronics Items

,Perfume/Deo, Belts ,Battery(ABT),Spray ,Wallets, Calculator(EEC).

TOYS & GAMES

Soft Toys, Dolls ,Cycles & Scooters, Musical Toys, Barbie Doll Cycles, Non-Musical

Other Dolls Scooters, Board ,Games Infant Toys ,Video Games, Wooden, Blocks Teether

,T.V. Video Game, Puzzles ,Swing ,Hand Video Game.

MARKETING ANALYSIS SUMMARY

Marketing help to define the business for the customer's interests, not your own. It is the process of

learning what customers want or need and determining how to satisfy those wants or needs. It is

also used to confirm whether the customer reacted to a marketing program as

expected.

The benefits of market research include:

 Learning who your customers are and what they want.

 Learning how to reach your customers and how frequently you  should  try  to communicate

with them.

 Learning which advertising appeals are most effective and which ones get no response.

 Learning the relative success of different marketing strategies, thus improving return on

investment.

 Learning how not to repeat your mistakes. Vishal Mega Mart has been the pioneer of retail

revolution. Its first fight was against local ‘Kirana’ stores. The task was to change the

mindset of consumer to bring about changes in their shopping patterns. It wanted people to

do bulk shopping for their monthly.

MARKETING STRATEGY OF V2 RETAIL PVT. LTD.

  Product 
V2 Mart offers a wide range of products which starts from apparels to food items, footwear to home

furnishing, crockery to sport items, child care products to toys, watches, drinks etc. There are many

in house brands promoted by Vishal Mega Mart. In pursuance of their  business plan to diversify

their portfolio of offerings, FMCG products play a key role. FMCG products are usually meant to

fulfill the daily needs of consumers and therefore, VRPL believe retailing of FMCG products will

bring customers to their stores on a frequent basis and this mayin-turn lead to consumption of their

apparels. VRPL have a number of private labels for apparels such as Zepplin, Paranoia, Chlorine,

V2 Megamart sold over 300,000 pairs of jeans, 50,000 DVD-players  and  25,000 microwave-ovens.

In all, the fashion, electronics and travel segments made up about 70% of sales. Last year, these

categories made up only about 60%.

  Price

V2 Mega Mart promises its consumers the lowest available price. The  concept  of   psychological

discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega Mart also caters on

Special Event Pricing (Close to Diwali, Christmas, New Year etc.). Selling combo- packs and

offering discount to customers. The combo-packs add value to customer. Through Bundling, they

also reduced the price of the products. In addition to VRPL’s strategy to continue.

procurement of goods from small and medium size vendors and manufacturers which leads to cost

efficiencies, VRPL intend to procure FMCG and apparels from low-cost production centers located

outside India. Towards this objective, VRPL’s propose to increase their procurement of finished

and semi-finished goods from China and thereby realize economies of scale and pass on the benefits

so accrued to their customers. The efforts of VRPL’s retail business are targeted towards families

having total income which can be classified under the “lower middle” and “middle” income groups.

VRPL follow uniform pricing policy across their stores in respect of private labels and non-branded
productssoldbythem.Thisenhances brand loyalty, encourages customer confidence and results in op

erational convenience. Inrelation to the other products, the prices may vary between stores on

account of state-specific taxation and vendor policies.

 Place

V2 Mega-mart stores are located in 129 cities with 172 outlets. VMM has presence in almost all the

major Indian cities. They are aggressive on their expansion plans. V2 Retail targets cities with urban

population of 1 million people or above or can be classified as Tier-2 and Tier-3 cities. In Tier-1

cities, the company opens retail outlets on the outskirts, rather than the prime area. Its target market

includes people with middle income and lower income levels. This enables the company to

overcome competition to some extent due to its first mover advantage (as competitors have

relatively less space in tier-2 and tier-3 cities) and helps to lower rental cost. As at 3Q FY08, 78% of

the company’s 82 stores are in Tier-2 andTier-3 cities. The company plans to maintain the ratio of

Tier-2 and Tier-3 to Tier-1 cities at80:20.

Promotion

Advertising has played a crucial role in building of the brand. V2 Mega Mart

advertisementsare mainly seen in print media i.e. newspapers, Television with Tina Parekh as there

advertisement,andsometimeroadsidebillboards.VRPL’s category management system is used to plan 

promotional schemes. They launch promotional schemes weekly. Apart from general sales promotio

n, the  category manager.
formulates promotional plans for ‘slow movers’. In addition, to promote sales, they

focus on layout of the stores and positioning, presentation and display of merchandise, in order to

appeal to the customer. In addition, VRPL have introduced, in association with SBI

Cards & Payment Services Private Limited, a co-branded credit card. VRPL’s propose

to continuously under take such initiatives to increase the satisfaction of their customers. 2

Mega-mart started many new and innovative cross-sell and up-sell strategies in

Indian retail market. The various promotion techniques used at VMM include:-5 Din Ki Maha

Bachat-2 din Ki Maha Loot-Dhan-teras Dhamaal-Great Savings-Vishal Mega Mart Gift Voucher Rs.

1000.-25% Off On All Items – Every Month-Discount Offers At Various Festive occasions-Grand

Winter Sale – 50% & 60% discount for 2 days- Paise Bachao Aandolan – 9 Din Ki Maha Loot-V2

Reward Plus: Consumers can make purchases at any store and accumulate points at a

central level. These points are redeemable at any of our stores.-Cross category promotions are

now catching up where discounts are being offered on grocery  purchases, redeemable

against purchase of apparel and household products.

  People

V2 Retail has been established by Mr. Ram Chandra Agarwal, a first generation entrepreneur. He

has been instrumental in expanding the business from an apparel store in Kolkata to 82 value retail

stores with pan- India presence. The management team has a pool of talented professionals with

right mix of working experience. Professionals are one of the key assets for any organization.

The salient features of staff of VMM are: --Monthly, weekly & daily sales targets are

communicated to the staff & efforts are made to consistently achieve the set targets.-

Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so

staff is empowered to take innovative steps.-Multiple counters for payment, staff at store to keep

baggage and security guards at every gate, makes for a customer-friendly atmosphere.-VMM

motivates & retains store staff & maintains a positive work environment.

Process

VMM adopted the business model to run their activities smoothly. This process includes four steps

as follows: Manufacturing Capacity; Strong Logistics; Products; Retailing The goods' dispatch and

purchasing area has certain salient features which include: --Multiple counters with trolleys to carry

the items purchased.-Proper display / posters of the place like (Kids Wear, Grocery, and Stationary

etc.).-Home delivery counters to be started soon.-Three Layer Security Checks.-No. of Parallel

Billing Counter -Retail Exchange Software Solution – PRIL-Integrated With SAP & ERP.

Physical Evidence

It deals with the final deliverable or the display of written facts. This includes the current system and

available facilities.-Infrastructure – Stand Alone Commercial Building-Clean, Air-conditioned

outlet-Equipment – computer, BCR, Desk etc State of Art.

 Customer Satisfaction

Definition of Customer Satisfaction

Kotler (1997) defines customer satisfaction as follows:

Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a

Product’s perceived performance (or outcome) in relation to his or her expectations.

Brown (1992) defines customer satisfaction as:

The state in which customer needs, wants and expectations throughout the product or service's life

are met or exceeded resulting in repeat purchase, loyalty and favorable worth-of mouth.

According to Jones and Sasser (1995), four basic elements affect customer satisfaction.

They are: The basic elements of the product or service, basic support services, a recovery process for

counteracting bad experiences, and extraordinary service. There are many definitions of the key

elements of the services, but this one is considered appropriate in the context of care or after sales

services.

Satisfaction is a function of perceived performance and expectation. If the performance matches the

expectations the customer is satisfied. If the performance exceeds the expectation the customer is

highly satisfied and delighted. If the performance does not match the expectations the customer is

dissatisfied. Satisfaction is a person’s feelings of pleasure of disappointment resulting for comparing

a products perceived performance (out-come) in relation t his/her expectation. The link between

customer satisfaction and customer loyalty is proportional. Suppose customer satisfaction is rated on
a scale from 1– 5. At a very low levels of customer satisfaction.

Level-1, customers are likely to abandon.

Level-2 to 4, customers are fairly satisfied but still find tit easy to switch when a better offer comes

along.

Level-5, the customer is very likely to repurchase an even spread good word of mouth about the

company.

Customers are very likely to repurchaseLEVEL5

Customers are fairly satisfied LEVEL 2-4

Low level of customer satisfaction LEVEL 1

The key to generating high customer loyalty is to deliver high customer value. A company’s value

proposition is much more than it’s positioning on a single attribute. Most of the successful

companies are raising expectations and delivering performances to match. These companies are

aiming for TCS – Total Customer Satisfaction. Customer satisfaction is both a goal and a marketing

tool. Companies that achieve high customer satisfaction ratings make sure that their target market is

known.

After sales support management system is apart of ERP Enterprise Resource Planning solution

dealing with the support module after the sales of product. It creates an advanced environment to the

organization, which are in to technical support after sales

e.g. Companies offering electronic goods and motor vehicles etc.

Measuring customer satisfaction

Organizations need to retain existing customers while targeting non-customers;. Measuring

customer satisfaction provides an indication of how successful the organization is at providing

products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction

will vary from person to person and product/service to product/service. The state of satisfaction

depends on a number of both psychological and physical variables which correlate with satisfaction

behaviors such as return and recommend rate. The level of satisfaction can also vary depending on

other factors the customer, such as other products against which the customer can compare the

organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered

SERVQUAL which provides the basis for the measurement of customer satisfaction with a service

by using the gap between the customer's expectation of performance and their perceived experience

of performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in

nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by

Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a

single measurement of performance relative to expectation.

The usual measures of customer satisfaction involve a survey with a set of statements using a Likert

Technique or scale. The customer is asked to evaluate each statement in terms of their perception

and expectation of performance of the service being measured.

Methodologies

American Customer Satisfaction Index (ACSI) is a scientific standard of customer satisfaction.

Academic research has shown that the national ACSI score is a strong predictor of Gross Domestic
Product (GDP) growth, and an even stronger predictor of Personal Consumption Expenditure (PCE)

growth. On the microeconomic level, research has shown that ACSI data predicts stock market

performance, both for market indices and for individually traded companies. Increasing ACSI scores

has been shown to predict loyalty, word-of-mouth recommendations, and purchase behavior. The

ACSI measures customer satisfaction annually for more than 200 companies in 43 industries and 10

economic sectors. In addition to quarterly reports, the ACSI methodology can be applied to private

sector companies and government agencies in order to improve loyalty and purchase intent. Two

companies have been licensed to apply the methodology of the ACSI for both the private and public

sector: CFI Group, Inc. applies the methodology of the ACSI offline, and Foresee Results applies

the ACSI to websites and other online initiatives. ASCI scores have also been calculated by

independent researchers, for example, for the mobile phones sector.

The Kano model is a theory of product development and customer satisfaction developed in the

1980s by Professor Noriaki Kano that classifies customer preferences into five categories:

Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight

into the product attributes which are perceived to be important to customers. Kano also produced a

methodology for mapping consumer responses to questionnaires onto his model.

SERVQUAL or RATER is a service-quality framework that has been incorporated into customer-

satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the

gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for its top-box

approach and automotive industry rankings. J.D. Power and Associates' marketing research consists

primarily of consumer surveys and is publicly known for the value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well. These include A.T.

Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence

framework and which helps define a company’s status against eight critically identified dimensions.

For Business to Business (B2B) surveys there is the Info Quest box. This has been used

internationally since 1989 on more than 110,000 surveys (Nov '09) with an average response rate of

72.74%. The box is targeted at "the most important" customers and avoids the need for a blanket

survey.
Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer satisfaction.

The International Customer Service Institute (TICSI) has released The International Customer

Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering

excellence in the management of customer service, whilst at the same time providing recognition of

success through a 3rd Party registration scheme. TICSS focuses an organization’s attention on

delivering increased customer satisfaction by helping the organization through a Service Quality

Model.

TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services,

as well as performance measurement. The implementation of a customer service standard should

lead to higher levels of customer satisfaction, which in turn influences customer retention and

customer loyalty.

The functional features include:

 Customer complaints tracking

 Service engineers information tracking

 Job scheduling for the complaints

 Spares management
  Online support

 Reports

Customer complaints tracking

Complaint is the start point of any technical support system. With out a client request the technical

support is not initiated. Complaint tracking is done as follows

 Client may come down or make a phone call or complaint online

 The client is validated. The client may have an annual maintenance contract or may have a

product in warranty or of warranty.

 The intensity of the complaint is to be estimated to allocate resources.

 Expected service type has to be finalized. It may be online assistance indoor or onsite

assistance.

Service Engineers information tracking:

Information about the engineers is inevitable in job scheduling. Information about the engineers has

to be added, deleted or modified in the database. It may contain the following: the name, id of the

engineer; the skill set of the manager; the status of the engineer.
Job scheduling for the complaints:

Job scheduling means sequencing the request to its intensity, assignment of a service engineer and

creating a job card. It is done to optimize the technical resources and to render the best service to the

customer. Minor problem are processed by technicians requests are handled by the expert team.

The job card includes the following:

The compliant id, the assigned engineer id, the data and time of service, the spare details, no. of man

hours required etc.

 The spare part name and serial number

 The available quantity of each spare part

 The prize, warranty and other specifications

 The supplier information.

Online support:

The service is done online also. The client may visit the website to obtain basic support information

about the product and FAQ. He can chat with the service engineer on phone or online.

Report:

The report reflects the current status of the system. The reports that can be generated are as follows:
  Customer request report status of the system. The reports that can be requests.

 Service engineer report provides the information about the skills and strengths of the support

team.

 Job scheduling report states the allotment of engineers to jobs.

 Spares report discloses the availability of all the shapes in the system.

 Receipts and payments report gives information about the cash flow in the system.

 Bills generation.

Customer satisfaction tracking:

Customer satisfaction is the key concept to dictate the future of the organization. In order to

maximize the customer satisfaction along with quick response and efficient service some other

activities are to be performed.

They may be as follows:

 Reception of the customer with hospitality.

 Entertaining environment to the customer.

 Providing guidance about the usage and maintenance of the product.

 Offering gift and discounts.

Operationalisation of Customer Satisfaction

As customer needs and expectations are changing all the time, this will lead to a situation whereby

customers keep setting ever higher standards, and therefore to achieve perfection is impossible.

Markets should be seen as a group of individual companies, and each of them must be treated

individually with different requirements, experiences, commitments, and relationships.

Implementing customer satisfaction philosophy means identifying customers, then identifying their

needs and expectations and finally, measuring their perceptions. Knowing the needs of the customer

makes it easier to anticipate the ideal set of products and services. A major flaw for all the

companies has proved to be their inability to understand other ways that customers can be satisfied.
By implementing direct and continuous employee contacts with the customers, the customers'

requirements and expectations can be determined. This employee-customer connection additionally

conveys the message that the company cares about their customers.

Customer needs can be determined through marketing research, customer interviews, reading

customer concerns, or involving customers in the design of services and service deliveries. In order

to decide if the service can be provided at a profit, it is necessary to link value equation to the

strategic service vision. Working together with both supplier and customer can increase profitability

by expanding margin potential.

A customer satisfaction study should begin by asking about the factors affecting customer

satisfaction, how important those factors are for the whole, and the level of customer satisfaction. A

problem with customer satisfaction surveys (Naumann, 1994) is that a poor customer satisfaction

programme yields vague data and raises customer expectations. If customer expectations are raised

and a company's performance remains the same, the customer's overall satisfaction will decrease.

Business Definition for: After-sales Service

Customer support following the purchase of a product or service. In some cases, after-sales service

can be almost as important as the initial purchase. The manufacturer, retailer, or service provider

determines what is included in any warranty (or guarantee) package. This will include the duration

of the warranty traditionally one year from the date of purchase, but increasingly two or more year’s

maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response.

In the case of a service provider, after-sales service might include additional training or helpdesk
availability. Of equal importance is the customer's perception of the degree of willingness with

which a supplier deals with a question or complaint, speed of response, and action taken.

After Sales Excellence

After Sales Excellence is a key driver for customer satisfaction and loyalty but also a very important

source of revenues and profits throughout a vehicle lifecycle. Our after sales experts support our

clients in all relevant areas of after sales service to improve the internal cost base, the retail

attractiveness as well as customer satisfaction. Our results are measurable - significant

improvements on key indicators such as warranty costs, service quality, and fixed first visit rate.

Supply Chain Excellence

Our Supply Chain Excellence service enables you to realize substantial improvements in your

supply chain performance in terms of cost, efficiency, lead times, demand management, customer

service and working capital requirements. We measure, improve and qualify supply chain

organizations and processes and support our clients by identifying and rapidly implementing cost

and efficiency savings in the entire supply chain. This can be achieved with the comprehensive,

cross-functional redesign of all logistics processes leveraging the entire supply chain including

customers and suppliers. With our proven Integrated Supply Chain Excellence Audit we quickly

identify gaps to proven best practices and benchmarks within, and beyond, the Automotive Industry.

Value Chain Design

Constantly reviewing the companies’ value chain in a rapidly evolving environment; deriving

required core competencies and partnerships is a key management responsibility. We help our

clients design their value chain in terms of a global engineering footprint, production and service

network, thereby improving efficiency and customer satisfaction in alignment with corporate

strategy.

Customer Contacts and Relationships

In all cases, the supplier had been involved with the customer since the beginning of the network

building. It is difficult to distinguish whether some of the changes in customer-supplier relationship

were due to the duration of the relationship between the two parties and whether some of the

changes were caused by changes in the customer's needs resulting from the customer's new position

in the network life cycle curve. For the results of this research, that question in terms of the

underlying factors has not addressed, but for future studies, it would be relevant to clarify which of

these two factors is the more significant or in fact, whether they can be distinguished.

Relation of the Care to Customer Satisfaction

Innis and La Londe (1994) discovered that several customer satisfaction variables significantly

affect a customer's total customer satisfaction. Customer service attributes received high ratings for

the importance of customer satisfaction. Attributes for physical distribution of customer service

were rated higher than many marketing attributes.

Most Important Services

Barsky (1995) proposed that what is important for one customer may not be important for another.

Barsky proposes this in the area of priority marketing, and the idea was applied to different services

in general. When a buyer considers closer integration with a supplier, they may consider that it will

most likely limit the number of potential suppliers and fear that the partner may take advantage of

this by increasing prices or delivering poorer quality or poorer service. Interlocking with the supplier

can limit the opportunity to acquire innovations if the supplier lacks the capability of being a

leading- edge supplier. Research has shown that there are frequently differences between the views

of the supplier's management on customer value and the customers' views on what they say they

value. This was studied in the present study as well.

Every business conducted for the purpose of selling or offering for sale; any good, wares and

merchandise, other than as a part of “wholesale business” to the final consumer can be defined as

retail business.

Retail is the second largest business in the United States both in number of establishments and the

number of employees. The US retail industry generates $ 3.8 trillion in retail sales annually ($ 4.2

trillion if food service sales are included), approximately $11,993 per capita. The retail sector is also

one of the largest worldwide.

Wal-Mart is the world’s largest retailer and the world’s largest company with more than $ 312

billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and

more than 400,000 internationally. The second largest retailer in the world is finances Carrefour.
What Is Retailing?

Retailing is all the activities involved in selling goods and services directly to final consumers for

their personal non business use.

The word retail is derived from the French word retailer, meaning to cut a piece off or to break bulk.

A retailer buys goods or products in large quantities from manufacturers or importers, either directly

or through a wholesaler, and then sells individual items or small quantities to the general public or

end user customers, usually in a shop, also called a store. Retailers are at the end of the supply chain.

Marketers see retailing as a part of their overall distribution strategy.

TYPES OF RETAILING

Retailing can be classified under two heads:

 Store Retailing

 Non- Store Retailing

Store Retailing

Retail stores come in a variety of shapes and sizes, and new retail types keep emerging.

They can be classified by one or more of several characteristics:

 Amount of service

 Product line

 Relative prices

 Control of outlets

 Type of store cluster

 Amount of service:

Different products require different amounts of services and customer service preferences vary.

Self service retailers:

Customers are willing to perform their own “Locate – Compare - Select” process to save money.

Today self service is the basis of all discount operations, and typically is used by sellers of
convenience goods (such as super markets) and nationally branded; fast moving shopping goods

(such as catalog showrooms).

Limited service retailers:

Retailers such as Sears and J.C Penrey, provide more sales assistance because they carry more

shopping goods about which consumers need information. Their increased operating costs result in

higher prices.

Full service retailers:

Like specialty stores and first class department stores, have sales people to assist customers in every

phase of the shopping process. Full service stores usually carry more specialty goods for which

customers like to be waited on. They provide more liberal return policies, various credit plans, free

delivery, home servicing and extras such as lounges and restaurants.

 Product line:

Retailers can also be classified by the depth and breadth of their product assortments. The depth of a

product assortment refers to the number of different versions of each product that are offered for

sale. The breadth of the assortment refers to the number of different products that the store carries.

Specialty stores carry a narrow product line with a deep assortment within that line. Examples

include; stores selling sporting goods, books, furniture, electronics, flowers or toys. Today specialty

stores are flourishing due to the increasing use of market segmentation, market targeting and product

specialization.
A department store carries a wide variety of product lines. Each line is operated as a separate

department managed by specialist buyers and merchandisers.

Super markets are large, low – cost, low – margin, high – volume, Self – service stores that carry a

wide variety of food, laundry and household products.

Convenience stores are small stores that carry a limited line of high turnover convenience goods.

These stores located near residential areas and remain open long hours, seven days a week.

Convenience stores much charge high prices to make up for higher operating costs and lower sales

volume. But, they satisfy an important consumer need.

Super stores, combination stores and hyper markets are all larger than the conventional super

market. Many leading chains are moving towards super stores because their wider assortment allows

prices to be 5-6 % higher than conventional super markets. Combination stores are combined food

and drug stores. Examples are A & P’s family marts and Wal Marts - super centers. Hyper markets

combine discount, super market and warehouse retailing, and operate like a warehouse.

 Relative prices:

Retailers can also be classified by the prices they charge. Most retailers charge regular prices and

offer normal quality goods and services at a higher price. Retailers that feature low prices include:

Discount stores sell standard merchandise at lower prices by accepting lower margins and selling

higher volume. Occasional discounts or specials do not make a store a discount store. A true

discount store regularly sells its merchandises at lower prices, offering mostly national brands, not

inferior goods.
  Control of outlets:

About 80 % of all retail stores are independents accounting for 2/3 of retail sales. Other forms of

ownerships include the corporate chain, the voluntary chain and retailer cooperative, the franchise

organization, and the merchandising conglomerate.

The chain store is one of the most important retail developments of this century. Corporate chains

appear in all types of retailing, but they are strongest in department, variety, food, drug, shoe, and

women’s clothing stores. The size of corporate chains allows them to buy in large quantities at lower

prices, and chains gain promotional economies because their advertising costs are spread out over

many stores and over a large sales volume.

The voluntary chain is a wholesaler - sponsored group of independent retailers that engage in

group buying and common merchandising.

The retailer cooperative is a group of independent retailers that set – up a jointly owned central

wholesale operation and conduct joint merchandising and promotion efforts.

A franchise is a contractual association between a manufacturer, wholesaler, or service organization

(the franchiser) and independent business people (the franchisees) who buy the right to own and

operate one or more units in the franchise system.

Merchandising conglomerates are corporations that combine several different retailing forms

under central ownership and share some distribution and management functions. Examples include:

Dayton – Hudson and J.C Penney.

  Types of store cluster:

More stores today cluster together to increase their customer pulling power and to give consumers

the convenience of one stop shopping.

Central business districts: A central business district comprises of banks, departed stores, specialty

stores, and movie theatres.

A shopping center is a group of retail business planned, developed, owned and managed as a unit.

Non – Store Retailing

Although most goods and services are sold through stores, Non – store retailing has been growing

much faster than store retailing.

Traditional store retailers are facing increasing sales competition from catalogs, direct mail,

telephone, home TV shopping shows, on – line computer shopping services, home and office parties

and direct retailing approaches.

Non – store retailing includes; direct marketing, direct selling and automatic vending.

EXECUTIVE SUMMARY

Retailing is the final step in the distribution of merchandise- the last in the Supply Chain –

connecting the bulk producers of commodities to the final consumers. Retailing covers diverse

products such as foot apparels, consumer goods, financial services and leisure. The organized retail

sector has grown to 6% by 2010 and touch a retail business of $ 17 billion as against its current
growth level of 3%, which at present is estimated to be $ 6 billion. As India moves towards the

service oriented economy, a rise in this percentage is expected. The number of retail outlets is

growing at about 8.5% annually in the urban areas and in towns with population between 1 lakh to 1

million; the growth rate is about 4.5%. Organized retailing is witnessing a wave of players entering

the industry. These players are experimenting with various retail formats. Yet, Indian retailing has

still not been able to come up with many successful formats that can be scaled up and applied across

India. Some of the notable exceptions like Big Bazaar, Reliance Retail & Vishal Mega Mart who

scaled their format across the country.

The research project is undertaken with a view to analyze the method trends in buying behavior of

consumers towards Organized FMCG Retail Outlets. The aim is to understand the effect of

increasing income levels of consumers on the organized retail industry. To understand the consumer

Psychology, Attitude and Browsing behavior. To study the existing customers suggestions and to

recommend valuable suggestions & recommendations.

LITERATURE REVIEW
Retail is India’s largest industry. It accounts for over 10 percent of the India’s GDP and around eight

percent of the employment. Retail sector is one of India’s fastest growing sectors with a 5 percent

compounded annual growth rate. India’s huge middle class base and its untapped retail industry are

key attractions for global retail giants planning to enter newer markets. Driven by changing

lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to

grow 25 percent annually. It is expected that retail in India could be worth US $ 175-200 billion by

2016.

As the nature of the study is survey. Nature of the data is primary by Questionnaire to customers.

The same study particularly in Mumbai location and for the same retail outlet is difficult to find.

General information related to catchment analysis and retail stores are available but are not

appropriate to mention all those information here.

Theoretical concept is taken from the different books as mention in the references. The other

information is taken from the different sources as mentioned in references.

The Organized retail industry in India had not evolved till the early 1990’s. Until then, the industry

was dominated by the Un- Organized sector. It was a seller’s market, with a limited number of

brands, and little choice available to customers. Lack of trained manpower, tax laws and government

regulations all discouraged the growth of organized retailing in India during that period. Lack of

consumer awareness and restrictions over entry of foreign players into the sector also contributed to

the delay in the growth of organized retailing.

Foundation for Organized retail in India was laid by Kishore Biyani of Pantaloon Retails India

Limited (PRIL). Following Pantaloon’s successful venture a host of Indian business giants such as

Reliance, Bharti, Birla and Others are now entering into retail sector.
A number of factors are driving India’s retail market. These include: increase in the young working

population, hefty pay-packets, nuclear families in urban areas, increasing working women

population, increase in disposable income and customer aspiration, increase in expenditure for

luxury items, and low share of organized retailing. India’s retail boom is manifested in sprawling

shopping centers, multiplex- malls and huge complexes that offer shopping entertainment and food

all under one roof.

But there is a flip side to the boom in the retail sector. It si feared that the entry of global business

giants into organized retail would make redundant the neighbored Kirana stores resulting in

dislocation in traditional economic structure. Also, the growth path for organized retail in India is

not hurdle free. The taxation system still favors ’small retail business.

A perfect model for retail is still in evolutionary stage. Procurement is very vital cog in the retail

wheel. The retailer has to fight issues like fragmented sourcing, unpredictable availability, unsorted

food provisions and daily fluctuating prices as against consumer expectations of round-the-year

steady prices, sorted and cleaned food and fresh stock at all times.

Trained human resources for retail is another big challenge. The talent base is limited and with the

entry of big giants there is a cat fight among them to retain this talent. This has resulted in big salary

hikes at the level of upper and middle management and thereby eroding the profit margin of the

business.

But retail offers tremendous for the growth of Indian economy. If all the above challenges are

tackled prudently there is great potential that retail may offer employment opportunities to millions

living in small town and cities and in the process distributing the benefits of economic and resulting

in equitable growth.
 PROBLEMS OF THE STUDY

 The main research problem is that company does not know how its customers evaluate its

service, as no customer satisfaction survey has been conducted before.

 Therefore the research problem is to find out how people see Gant Stores and the service

provides it.
 OBJECTIVES OF THE STUDY

 To study about the customer level of ‘Satisfaction’ towards V2 products.

 To understand the needs of the customer

 To assess the attitude of consumers’ towards V2 products.

 To study about the customer segmentation of V2 products.

 To identify the current V2 products scenario in Ghazipur city.

SCOPE OF THE STUDY

 My study was conducted in Ghazipur city for collecting information.

 The scope of project work is to get the opinions from respondents on the issues mentioned

earlier.
 It is limited to the cities of Ghazipur and is confined to the urban areas as the respondents are

the subscribers of V2 Retail ltd. services is one form or the other.

IMPORTANCE OF THE STUDY

 products & services, has led to a constant but increasing need to conduct marketing research.

 This research is an insight into the mind of the consumer, with the help of which the

organizations will become aware of their pitfalls and in turn can also make improvements in

the product regarding the level of satisfaction of the consumers towards their offerings in the

market place.

 The basic need of this project is to know the “Satisfaction” amongst the respondents, with

regard to “V2 Retail” services and its product.

 It helps companies to know the customer views and make appropriate changes in their

strategies to reach out to customers in a better way.

RESEARCH METHODOLOGY

Survey project report is a common language refers to a search of knowledge .survey project reports

scientific & systematic search for pertinent information on a specific topic, infect research is an art

of scientific investigation. Research Methodology is a scientific way to solve survey project report
problem. It may be understood as a science of studying how survey project report is don’t

scientifically. In it we study various steps that are generally adopted by researchers in studying their

research problem. It is necessary for researchers to know not only know research method techniques

but also technology.

The scope of Research Methodology is wider than that of research methods.

The survey project report problem consists of series of closely related activities. At times, the first

step determines the native of the last step to be undertaken. Why a research has been defined, what

data has been collected and what a particular methods have been adopted and a host of similar other

questions are usually answered when we talk of research methodology concerning a research

problem or study.

A. RESEARCH DESIGN:

A research design is defined, as the specification of methods and procedures for acquiring the

Information needed. It is a plant or organizing framework for doing the study and collecting the

data. Designing a research plan requires decisions all the data sources, research approaches,

Research instruments, sampling plan and contact methods.

Research design is mainly of following types:

1. Exploratory research.

2. Descriptive studies
1. EXPLORATORY RESEARCH:

The major purposes of exploratory studies are the identification of problems, the more precise

Formulation of problems and the formulations of new alternative courses of action. The design of

exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

2. DESCRIPTIVE STUDY

Descriptive research in contrast to exploratory research is marked by the prior formulation of

specific research Questions. The investigator already knows a substantial amount about the research

problem.

Perhaps as a Result of an exploratory study, before the project is initiated. Descriptive research is

also characterized by a Preplanned and structured design.

I have used descriptive research for my survey

B.DATA COLLECTION METHOD

PRIMARY SECONDARY

Published Sources Unpublished Sources

Direct personal Interview
 Indirect personal Interview

Information from correspondents Govt. publication

Mailed questionnaire Report Committees

&Commissions

Question filled by enumerators Private Publication

1. PRIMARY DATA: These data are collected first time as original data. The data is recorded as

observed or encountered. Essentially they are raw materials. They may be combined, totaled but

they have not extensively been statistically processed. For example, data obtained by the peoples.

Questionnaire

2. SECONDARY DATA

Secondary data consists of figures, which are collected a first hand in order to satisfy the purpose of

a particular statistical inquiry. But re-used in other inquiry.

Sources of Secondary Data:

Following are the main sources of secondary data: .

1. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish their own data,

e.g. Indian Journal of economics, economist, Economic Times.

2. Unpublished Data: Data may be obtained from several companies, organizations, working in

the same areas.

My survey report is based on Primary data& Secondary data collection method

C. SAMPLING

Sampling Design: The convenience sampling is done because any probability sampling procedure

would require detailed information about the universe, which is not easily available further, it being

an exploratory research.

Sample Procedure: In this study “judgmental sampling procedure is used. Judgmental sampling is

preferred because of some limitation and the complexity of the random sampling. Area sampling is

used in combination with convenience sampling so as to collect the data from different regions of

the city and to increase reliability.

Methods of the Sampling:

1. Probability Sampling

It is also known as random sampling. Here, every item of the universe has an equal chance or

probability of being chosen for sample.

Probability sampling may be taken inform of:

(a) Simple Random Sampling

A simple random sample gives each member of the population an equal chance of being

chosen.  It is not a haphazard sample as some people think!  One way of achieving a simple random

sample is to number each element in the sampling frame (e.g. give everyone on the Electoral register

a number) and then use random numbers to select the required sample.

Random numbers can be obtained using your calculator, a spread sheet, printed tables of

random numbers, or by the more traditional methods of drawing slips of paper from a hat, tossing

coins or rolling dice.

Sampling Method: simple random sampling.

Sampling Size: The sampling size of the study is 50 individual.

Area of study: The study is exclusively done in the area of marketing. It is a process requiring care,

sophistication, experience, business judgment, and imagination for which there can be no

mechanical substitutes.

Data is collected from various individual through personal interaction. Specific questionnaire is

prepared for colleting data. Data is collected with mere interaction and formal discussion with

different respondents and we collect data in Ghazipur and face to face contact with the persons

from whom then formation is to be obtained (known as informants).

DATA ANALYSIS AND INTERPRETATION

1) How did you come to know that about V2 products?

 Electronics MEDIA
Print Media
Road shows
Hoardings

Figure 1: Knowing about the product

INTERPRETATION

From the above table it can be show 30% of the respondents came to know about V2 products from

hoardings while 28% of the respondents came to know from print media and electronic media was

assumed by 22% of the respondents. A small significant 20% of the respondents replied that road

shows have helped them in understanding V2 products.

2) Which department you prefer to shop at V2 Retail?

Type of service No. of respondents Percentage

FMCGS and Groceries 12 24%
Clothing and Home Fashion 15 30%
Luggage and Stationery 13 26%
Electronics 10 20%
Total 50 100%
 FMCGS and Groceries
Clothing and Home Fashion
Luggage and Stationery
Electronics

Figure 2: Kind of service

INTERPRETATION

From the above table it can be seen that 24% of them are using FMCGS and Groceries, while 30%

are using Clothing and Home fashion, 26% are using Luggage and Stationery and the remaining

20% are using Electronics services.

3) What is the reason for choosing these service?

No. of respondents Percentage

Less price 8 16%
Quality service 25 50%
Brand image 10 20%
Offers 7 14%
Total 50 100%
 Less price
Quality service
Brand image
Offers

Figure 3 : Reason for choosing the service:

INTERPRETATION

From the above table it is shown that 16% of the respondents are choosing the service from less

price and 50%respondents are choosing the citing quality of service as the factor. While 20% cited

brand image as the reason for choosing the service. As far as Offer is concerned only 14% of the

respondents have quoted it as the reason for choosing this service.

4) Which department gives the best offers?

No. of respondents Percentage

Food Bazaar 8 16%
Clothing and Home 25 50%
Fashion
Luggage and 10 20%
Stationery
Electronics 7 14%
Total 100 100%
 Food Bazaar
Clothing and Home Fashion
Luggage and Stationery
Electronics

Figure 4: Preferring for this service:

INTERPRETATION

In today’s busy world convenience seems to be the most overriding factor while preferring a cellular

service. It is clear that 50% of the respondents have preferred this service due to Clothing and Home

Fashion, making it convenient to use it. On the other hand 20% have Luggage and Stationery of the

service, while 16% of the respondents have given food bazaar as their choice. While a 14% of the

said Electronics as the reason for preferring the service.

5) Are you satisfied with the quality of service being provided?

No. of respondents Percentage

Yes 40 80%
No 4 8%
To some extent 1 2%
Can’t say 5 10%
Total 50 100%
 Yes
No
To some extent
Can't say

Figure 5: Satisfaction l with the quality of service

INTERPRETATION:

From the above table it is clear that 80% of the respondents are satisfied with the quality of service

while a significant number i.e., 10% of the respondents couldn’t say anything and 8% of the

respondents replied they are not satisfied with the quality of service.

6) Have you faced any problem at the time of purchase & usage?

No. of respondents percentage

Yes 5 10%
No 45 90%
Total 50 100%
 Yes
No

Figure 6: Facing of problems:

INTERPRETATION

The above table indicates that at the time of activation only 10% of the respondents have faced

problem with company, and 90% of the respondents have not face any problem.

7) How many times do you visit the organized retail outlets in a month ?

No. Of respondents Percentage

Once 20 40%
2-3 times 15 30%
3-4 times 10 20%
More than 5 5 10%
 times
Total 50 100%

Once
2-3 times
3-4 times
More than 5 times

Figure 7: Visit the organized retail outlets in a month

INTERPRETATION

40% of people visit the V2 Retail only once in a month because of time, convenience & monthly
budget. 30% of people said they visit 2-3 times in a month, 20% of people said they visit 3-4 times
in a month.10% of the sample size population visit more than 5 times in a month.

8) Who has influenced you, in purchase decision towards V2 Retail Product?

No. of respondents Percentage

Colleagues 10 20%
Friends 25 50%
Family members 12 24%
 Others 3 6%
Total 50 100%

Colleagues
Friends
Family members
Others

Figure 8: Influence on purchase decision:

INTERPRETATION

From the above table it is shown that 50% of the respondents were influenced by their friends, 20%

by their colleagues, 24% by their family members and 6% by others.

9) How do you feel about the pricing of V2 Retail services as compared with other?

No. Of respondents Percentage

Expensive 5 10%
Competitive 40 80%
 Can’t say 5 10%
Total 50 100%

Expensive
Competitive
Can't say

Figure 9: Pricing of HERITAG services:

INTERPRETATION

The feelings of customers of V2 about the pricing of the services is, 80% of them are satisfied and

feel the prices are comparable with others , 10% of them are said to be expensive and 10% of them

are not satisfied with the pricing of the company as they feel the prices are not competitive enough.

10) How choose to bills payment mode?

No. Of respondents Percentage

Net banking 4 8%
 Debit card 6 12%
Swipe card 10 20%
By cash 30 60%
Total 50 100%

Net banking
Debit card
Swipe card
By cash

Figure 10: bills payment mode

INTERPRETATION

The above table indicates that the 60% respondents choose to by cash payment ,20% choose to

swipe care for bill payment,12% choose to debit card and 8% pay the bill through net banking.

11) Are you satisfied with the payment of your bills?

No. of respondents Percentage

Yes 42 84%
 No 5 10%
To some extent 3 6%
Total 50 100%

Yes
No
To some extent

Figure 11: Satisfaction with payment

INTERPRETATION

With the above analysis, from the 100 respondents, only 84% are satisfied with the time given to

them for payment of bills, and the remaining 10% of respondents are not fully satisfied.

12) What is your Opinion on the service availability of Retail?

No. of respondents Percentage

Easily available 44 88%
 Not available 3 6%
To some extent 2 4%
Can’t say 1 2%
Total 50 100%

Easily available
Not available
To some extent
Can't say

Figure 12: Opinion on the service availability of retail

INTERPRETATION

The above table indicates that the V2 Retail services of retail services are easily available in urban

areas; this is clarified from 50 respondents surveyed.88% said that service available, 6% said that

service are not available and only 1 respondents can’t said.

13) Do you recommend these services to your friends, Colleagues & Family?

No. of respondents Percentage

Yes 30 60%
 No 15 30%
Can’t say 5 10%
Total 50 100%

Yes
No
Can't say

Figure 13: Recommendation of the service:

INTERPRETATION

It is clear that 60% of the respondents would recommend the service, while a significant 30% of the

respondents do not want to recommend the service to their friends, colleagues & family and 10% of

the respondents can’t say.

FINDINGS OF THE STUDY

 30% of the respondents came to know about V2 products from hoardings while 28% of the

respondents came to know from print media and electronic media was assumed by 22% of
 the respondents. A small significant 20% of the respondents replied that road shows have

helped them in understanding V2 products.

 From the above table it can be seen that 24% of them are using FMCGS and Groceries, while

30% are using Clothing and Home fashion, 26% are using Luggage and Stationery and the

remaining 20% are using Electronics services.

 From the above table it is shown that 16% of the respondents are choosing the service from

less price and 50%respondents are choosing the citing quality of service as the factor. While

20% cited brand image as the reason for choosing the service. As far as Offer is concerned

only 14% of the respondents have quoted it as the reason for choosing this service.

 In today’s busy world convenience seems to be the most overriding factor while preferring a

cellular service. It is clear that 50% of the respondents have preferred this service due to

Clothing and Home Fashion, making it convenient to use it. On the other hand 20% have

Luggage and Stationery of the service, while 16% of the respondents have given food bazaar

as their choice. While a 14% of the said Electronics as the reason for preferring the service.

 From the above table it is clear that 80% of the respondents are satisfied with the quality of

service while a significant number i.e., 10% of the respondents couldn’t say anything and 8%

of the respondents replied they are not satisfied with the quality of service.

 The above table indicates that at the time of activation only 10% of the respondents have

faced problem with company, and 90% of the respondents have not face any problem.

 40% of people visit the V2 Retail only once in a month because of time, convenience &

monthly budget. 30% of people said they visit 2-3 times in a month, 20% of people said they
 visit 3-4 times in a month.10% of the sample size population visit more than 5 times in a

month.

 From the above table it is shown that 50% of the respondents were influenced by their

friends, 20% by their colleagues, 24% by their family members and 6% by others.

 The feelings of customers of V2 about the pricing of the services is, 80% of them are

satisfied and feel the prices are comparable with others , 10% of them are said to be

expensive and 10% of them are not satisfied with the pricing of the company as they feel the

prices are not competitive enough.

 The above table indicates that the 60% respondents choose to by cash payment,20% choose

to swipe care for bill payment,12% choose to debit card and 8% pay the bill through net

banking.

 With the above analysis, from the 100 respondents, only 84% are satisfied with the time

given to them for payment of bills, and the remaining 10% of respondents are not fully

satisfied.

 The above table indicates that the V2 Retail services of retail services are easily available in

urban areas; this is clarified from 50 respondents surveyed.88% said that service available,

6% said that service are not available and only 1 respondents can’t said.

 It is clear that 60% of the respondents would recommend the service, while a significant 30%

of the respondents do not want to recommend the service to their friends, colleagues &family

and 10% of the respondents can’t say.

RECOMMENDATIONS
 V2 Retail should increase the coverage of its all services i.e. home fashion and stationery and

retail also, services by installing more at strategic points.

 The quality of the retail service needs to be improved in terms of clarity and connectivity.

 V2 Retail should vigorously promote its retail services as compared with the competition and

should concentrate on individual customers and non- commercial customers.

 V2 Retail should aggressively promote its offerings in various media and should concentrate

on hoardings and road shows and electronic media.

 Attractive schemes for owning the retail instruments should be launched to attract more

customers.

CONCLUSION

 The respondents are of V2 Retail, and they came know about the service from hoardings,

print media, primarily and through electronic media and road shows secondarily.
 The respondents are using V2 Retail since 1 year and below 1 year in most of the cases.

 The service provided by V2 Retail is used by majority of the respondents and the reason for

choosing it is the quality of the service, followed by brand image.

 Customer satisfaction of the respondents towards V2 Retail is high; however a significant

number of the respondents are dissatisfied with its services.

 In purchasing V2 Retail products family appear to be the prime motivators of the

respondents in making their purchase decisions, due to the special offers being targeted by

the company at this segment.

 The respondents are paying their bills at the company show rooms, and these are also on

delivery time.

 The respondents are desirous of having online bill payment service for convenience as its

saves their time, money and effort.

 The instruments being providing with billing service are being well received by the

respondents.

LIMITATIONS OF THE STUDY

 Time was the major constraint which prevented me to put in more effort.

 Some people left few questions unanswered.

  Some of the respondents were not ready to fill the questionnaire.

 Not all the respondents were cooperative thus it was difficult to convince them for filling up

the questionnaire.

 Some of the respondents might have filled up the questionnaire just for the sake of filling.

 This could have been biased or deviated my analysis.

 I made an extra effort in conducting the research but might have lacked somewhere because

of lack of expertise in conducting such survey based research.

BIBLIOGRAPHY

http://www.indianbusiness.nic.in/economy/retail.htm
http://www.financialexpress.com

http://www.Google.com

http://www.retailindustry.about.com/

http://hindubusinessline.com

http://www.magportal.com

http://www.v2retail.com

BOOKS REFERRED

1. George E. Belch & Michael A. Belch (2010) .Advertising & Promotion – An

Integrated Marketing Communications Perspective. 7th Edition.

2. Philip Kotler ,Kevin Lane Keller.(2006). Marketing Management. Pearson

Education.12thEdition.

3. Malhotra. N.K..(2006).Marketing Research: An Applied Orientation. Pearson

Education.4th edition.

4. Wells, Moriarty & Burnett .Advertising principles & practice.7thEdition. pg 59 – 88.