TERM PAPER- RETAIL MANAGEMENT

CUSTOMER SATISFACTION TOWARDS DMART RETAIL

SAHID HUSSAIN

ROLL NO 2114500534
PROGRAM BACHELOR OF BUSINESS ADMINISTRATION- (BBA)
SEMESTER II
COURSE NAME TERM PAPER
COURSE CODE DBB1206
 EXECUTIVE SUMMARY

Retailing is the business of selling goods and services to individuals for personal, family, or
household consumption. While retailing can be defined as any sale to the final client (from
vehicles to apparel to restaurant meals), we often concentrate on businesses that sell
"merchandise mainly without transformation, while giving services adjunct to the sale of
merchandise." The retail business is at a crossroads today. On the one hand, retail sales are at
a record high.

In India, the retail industry is now thriving. It is regarded as equally capable as the IT industry.
D-MART is a well-known retail company in India. It is well-known for its inexpensive prices
and high-quality items. It has branches throughout India. Retailing is one of the operations in
the marketing chain that aids the distribution function. Initially, it was thought to be just another
step in the marketing chain, with the function assumed to be evident. As global rivalry rose,
differentiation became increasingly challenging. Consumer purchasing power increased as the
economy became more market-oriented.
Wal-Mart has surpassed ExxonMobil, General Motors, and other manufacturing behemoths in
terms of global sales. Retail productivity is increasing as a result of new technologies. There
are numerous options to launch a new retail venture or work for an existing one—as well as to
become a franchisee. Global retailing opportunities abound. Retailers, on the other hand,
confront several hurdles. Many customers dislike shopping or do not have enough time for it.
Some areas have too many stores, and retailers frequently encourage one another to decrease
prices (and low profit margins). At a time when more retailers provide self-service and
automated solutions, customer service standards are high. At the same time, many shops are
still confused what to do with the Web; they are unsure how much emphasis to place on image
enhancement, consumer information and feedback, and sales transactions. Retail is the sale of
items to end customers for use and consumption rather than resale. The retail transaction is the
final link in the supply chain. Manufacturers sell huge volumes of their products to merchants,
who then sell tiny quantities to customers. A customer who wishes to buy a product for personal
use would likely do it at a retail store or through another retail marketing channel. Thus,
retailing refers to the sale of modest amounts of goods or commodities to final consumers.
 INTRODUCTION- ABOUT TOPIC

Retailing is an essential area to study because of its economic significance, distribution

functions, and link with enterprises that provide goods and services to retailers for resale or
use. It includes all commercial activities involved in providing goods and services to consumers
for personal, family, or household use; it includes every sale to ultimate consumer ranging from
cars to clothing to restaurant meals to movie tickets. Retail is the final stage in the distribution
chain. Retail management refers to the many operations that assist customers in obtaining the
desired merchandise from retail businesses for their end use. Retail management encompasses
all of the steps required to lure customers into the store and meet their purchasing needs. Retail
management saves time and guarantees that customers find the merchandise they want and
come home satisfied. Retail management is the proper management of all the operations
required to make products or services available to clients from vendors for personal or family
consumption.
It manages all business activities such as raising finance, purchasing items and services,
installing accounting and management information systems for control activities, managing
warehouses and distribution, producing new products, and marketing. Retail management is
the process of overseeing all of these activities in a store. Customer satisfaction is described as
an indicator of how satisfied customers are with a company's products, services, and
capabilities. Customer satisfaction data, such as surveys and ratings, can assist a firm in
determining how to enhance or adjust its products and services.
Avenue super marts ltd, doing business as Dmart, is an Indian hypermarket company launched
in 2002 by Radhakishandamani, with its first outlet in Powai's Hiranandani gardens. It had 196
outlets in 72 cities in 11 Indian states as of 31 December 2019, including Maharashtra, Andhra
Pradesh, Telangana, Gujarat, Madhya Pradesh, Chhattisgarh, Rajasthan National Capital
Region, Tamil Nadu, Karnataka, Uttar Pradesh, Daman, and Punjab. DMart is a one-stop
grocery chain that seeks to provide clients with a comprehensive selection of basic home and
personal products under one roof. Each DMart location stocks home utility products such as
food, toiletries, beauty products, clothing, kitchenware, bed and bath linen, home appliances,
and more at low prices that our customers value. Our primary goal is to provide clients with
high-quality products at a reasonable price.
 OBJECTIVES OF STUDY
Retailing can be defined as the final phase in the distribution of goods for consumption by end
users. Retailing is in charge of connecting ultimate consumer demand with the supplies of
various marketers. Retailing is a highly competitive industry, and its appeal stems from its
capacity to give consumers with easier access to a wide range of items, freedom of choice, and
a variety of services. The Indian retail landscape is peppered with traditional market places
known as bazaars or hats, which contain several small and large businesses offering various or
similar items. New retailers frequently join the market with low pricing, margins, and social
standing.

Low prices are usually the product of some novel cost-cutting strategies, and they quickly
attract competition. These companies try to expand their consumer base and boost their sales
over time. Their operations and facilities grow in size and cost. They may relocate to better
upmarket locations, begin carrying higher quality products, or add services, eventually
emerging as a high-cost service business. By this point, newer competitors with cheap prices,
low margins, and low status have emerged, and these competitors will go through the same
evolutionary process. The wheel continues to turn, and department stores, supermarkets, and
mass merchandisers have all gone through this cycle. From the customer's perspective, the
merchant serves him by supplying the things he requires in the appropriate assortment, at the
required location and at the required time. A retailer's role, from an economic standpoint, is to
deliver genuine added value or utility to the customer. This is presented from four different
views.

1. Gaining an understanding of the retail industry

2. To investigate client satisfaction with D-items. Mart's

3. To assess the level of client satisfaction while purchasing at D-mart.

 REVIEW OF LITERATURE

Retail management refers to the many operations that assist customers in obtaining the desired
merchandise from retail businesses for their end use. Retail management encompasses all of
the steps required to lure customers into the store and meet their purchasing needs. Retail
management makes shopping enjoyable and guarantees that customers leave the store smiling.
In other words, retail management makes it easy for customers to shop. "Retailing encompasses
all operations involved in selling goods or services to ultimate consumers for personal, non-
commercial consumption." Retailing is the business activity of selling items and services to
people for personal, family, or home consumption. Every transaction to the ultimate consumer
is included.

Retailing Provides Career Opportunities Although common entry-level retail roles for a
postsecondary graduate include retail management trainee, department/sales manager, and
assistant buyer, it is often difficult to categorize retail career prospects due to their abundance.
The majority of large retail enterprises can be classified as "small cities." As a result, these
retailers provide job opportunities in nearly every facet of business, including purchasing, store
operations, accounting, financial management, human resources, advertising, public relations,
marketing research, and so on. The continual change that a retail executive must understand
and manage is what makes retailing so exciting. The rising prominence of nonstory retailing is
one of the sectors of retailing that is currently undergoing fast transformation. the emphasis on
customer pleasure and the use of technology in all aspects of selling These developments bring
with them both opportunities and challenges. Need for Retail Management - Why is retail
management necessary? On his wife's birthday, Peter decided to give her a lovely watch. He
went to a local store to look at some choices. It took the shop over an hour to locate the
timepieces. This infuriated Peter, and he resolved never to return to the store. - This is an
example of poor management. You just cannot afford to keep the consumer waiting for too
long. To eliminate unwanted searching, the items should be carefully sorted. Retail
management saves time and guarantees that customers find the merchandise they want and
come home satisfied. The retail industry has changed dramatically during the last decade, from
made-to-order to ready-to-wear, from counter sales to self-service, with an emphasis on value
addition and cost reduction. Retail is improving inventory management through systems,
resulting in faster turnover, more profitability, and rapidly changing client preferences for a
diverse range of goods and services.

The surge of refonns contributes to our digital economy in various ways. The traditional
economy has shifted. Now that the digital economy is stimulating higher levels of GDP, the
stock market has crossed 18,000 points on the Sensex, which is a memorable voyage in the
Indian stock markets. The high dose of refonns, positive press, and consumer exploitation by
multinational corporations. In India, organized retailing accounts for less than 1% of the
market, compared to 80% in the United States, 40% in Thailand, and 20% in China. According
to some estimates, there are over 200 retail mall projects under construction or in the planning
stages across 25 cities. Most commodities' existing supply chain in India is extremely
inefficient, relying on outmoded warehousing, logistics, and transportation technology.
Furthermore, the ever-present intermediary exacerbates the situation. India was now a member
of the global economy, and the economy was fueled by middle-class consumerism. Finally, the
assumption was that huge multinational corporations were set to invest in large shopping malls,
as the Indian market is now regarded as the world's fastest expanding retail market. 2007
(Sridhar). According to a survey conducted by A.T. Kearney, the unorganized sector accounts
for the vast majority of the Rs. 4,00,000 crore Indian retail industry. In reality, only rs. 20,000
crores of market segments are organized. Because of the country's enormous number of
businesses (nearly 12 million in 2003), India has been dubbed "the nation of shopkeepers."
Approximately 78% of these are modest family businesses that rely solely on household labor.
Even among retail businesses that hire staff, the majority employ fewer than three people.
"Cross Roads," India's first true shopping mall replete with food courts, amusement facilities,
and ample parking space, opened in Mumbai in 1999. According to media reports, Walmart
and Bharani Enterprises have formed a partnership, and this venture is significant in the Indian
retail management sector. According to their agreement, BHARATI will manage the front end
of the business while Wal-Mart will manage the supply chain. Reliance industry also formed
partnerships with Tesco in the United Kingdom and Carrefour in France. It intends to invest
5.6 billion dollars in 4,000 stores in 1,500 Indian towns. According to a Financial Express
report dated 4-10-07, A V Birla has declared an investment of Rs.8,000 crores in retail via
supermarkets and hypermarkets and currently has 16 additional locations in Pune. 7 outlets in
Mumbai. According to this survey, Delhi is a retailer's dream because it is a hotbed of retail
consumption, with an annual household consumption expenditure of Rs.9511 crores.

In the study, Fornell (1992) discovered that customer satisfaction increases customer loyalty,
decreases customer churn, lowers the costs of failed marketing, indicates customer price
sensitivity, creates new customers, improves the effect of advertising, lowers the cost of
operations, and finally improves the reputation. Hamburg and Koschate (2004) investigated the
impact of perceived fairness and customer satisfaction on repurchase intention following a
price rise. According to the study's findings, perceived fairness has a favorable impact on
repurchase intention, although satisfaction moderates this association. Martenson (2007)
investigated the effect of corporate store image on customer satisfaction and store loyalty in
supermarket retailing and concluded that the store's brand image is an essential factor in
customer satisfaction. Customers are satisfied when retailers understand and respond to their
needs According to Zielke (2008), value for money, price level, and special offers are both
satisfiers and dissatisfiers; price perceptibility, price process ability, and price fairness are only
dissatisfiers; and price advertising and products in the upper price range are indifferent criteria.

Fonseca (2009) stated, using a novel technique and a new conceptual model of customer
satisfaction, that in order to estimate the global customer satisfaction measure, one needs appeal
to methodologies that recognize satisfaction as a latent variable that may be measured using
numerous indications. Iniesta-Bonillo and Sánchez-Fernández (2009) investigated the
relationship between consumer satisfaction and economic value. They proposed an operational
instrument to quantify the economic worth of retailers using appropriate strategies to create
and deliver value to customers. Torben et al. (2011) discovered that the level of satisfaction
among customers with various shops cannot be explained solely by matching expectations with
items and services, but may also be based on the customer's mental explanation.

According to Dr. Girish K. Nair and Harish K. Nair (2013), "the customer perception of retail
service quality is a crucial component for both developing and current retailers in the market."
According to the study, consumer perception of service quality is influenced by a variety of
characteristics, including personal interaction and physical aspects, which are dimensions on
which customer perception remains consistent and shared by the majority of customers. As a
result, retail stores must devise their own tactics in order to retain clients over time.
 SWOT ANALYSIS- RETAIL MANAGEMENT

STRENGTH

A prime location is critical to the growth and productivity of any organization. If your retail
store is located in a busy area where people come and leave all the time. Naturally, the sale of
such retail stores would be significantly higher, increasing the income and revenue stream.
Along with the primary site of your store, the display and well-lit area would draw clients'
attention. They would come to your store even if they didn't have to buy anything. If they enjoy
it, they will return time and again. Foot traffic is just one form of random person visiting your
store, and some of them would buy anything there. Along with the traditional manner of sale,
the store uses its reputation and client reviews/testimonies as a marketing technique to persuade
consumers to purchase your goods or service. The store's large letters, flashy colors, and
attractive slogans increase sales.
If the sales team and the owner cultivate a positive and cordial professional relationship with
clients, they will be able to compel them to make repetitive purchases. It entails sending them
a newsletter with information on the most recent offer and promotional bargains However,
informing consumers about your offerings in a timely manner will increase purchases. If the
retail store has an effective relationship with its supply chain, they will ensure that products
and services are available at the store on time. It would be differentiating factors, giving the
store a distinct competitive advantage. Customers would be assured that the goods or service
is available in the store.

WEAKNESSES

Not specific denotes that the retail outlet is not concentrated on a single product or service
category. Customers can purchase a variety of products and services from the store. However,
we live in a world of specialization and specialty marketing, and the consumer market is
moving away from broad offers. The organization benefits greatly from its experienced and
competent employees. They have the potential to boost the company's sales, growth, and
productivity. Employees at the company's retail store lack the necessary experience to
appropriately deal with clients and generate sales. As a result, the company's conversion rate
and overall sales have decreased significantly. The brand name speaks for you and assures
clients that the store is trustworthy and offers high-quality products. Customers will be hesitant
to trust your offerings and try anything if your retail store is new and does not have a well-
known brand name. As a result, it will take time and consistency for clients to trust your
products and services. The size of the store is important in addition to the brand name and
reputation. If the storage space is limited and can only accommodate a few people, the rest of
the people will travel to other shops and stores nearby.
OPPURTUNITIES

If your store is only targeting a young audience aged 18 to 25, male or female, you are targeting
a relatively small market niche. Consider providing a wide range of items and services to your
clients. The diversity and breadth of your product line would improve your market influence,
attracting more customers and driving them to your store. The epidemic has affected e-
commerce and internet buying trends. Businesses and companies with an e-commerce store
saw a significant increase in sales. If the retail store works on developing an e-commerce
business and promoting it on social media, it will greatly increase sales. Another advantage of
an e-commerce store is that it allows the retail store to grow. Geographic expansion would be
a significant benefit, as you could sell your products/services everywhere in the world from a
single location. You should also explore opening similar types of retail businesses in other
cities where market saturation is minimal. It's a step-by-step procedure that would boost sales
and profitability. Backward integration is the acquisition of a supply chain or a manufacturer
in order to stabilize a company's market position. Many successful businesses use the backward
integration technique because it allows them to obtain control of the supply chain and ensure
that the product is always available in the shop.

THREATS

There is no doubt that excellent position points provide benefits to any organization, but the
expense of prime location is very significant. Relocating your business to a new site will cost
you a lot of money, and it does not guarantee that your business will make the same profit as
competitors. If the store does not produce a profit, your entire investment will be lost. The
store's profit margin has been significantly reduced as the rental cost has risen in recent years.
The store owner has no choice but to pay it, since if he does not, other businesses will be eager
to pay for the same location. It implies that the store deals with a variety of currencies, and here
is where the role of the exchange rate comes into play. Different currency exchange rates on
different days would have a significant impact on your profitability. The changing market
trends and customer preferences are another unpredictable aspect. For example, you've made a
large investment and stocked your business with a product that people either don't desire or
that is out of style. Your purchase and investment in the store would be a huge loss.
 DISCUSSION/PRACTICAL IMPLICATION

Retail management is the business of selling goods or services to customers. This tutorial will
teach you to several aspects of the retail industry, including retail marketing, space
management, and retail operations. It also covers visual merchandising, the retail marketing
mix, and e-commerce. According to the findings, among 100 respondents, 9% have not referred
Dmart to others and 91% have suggested DMART to others. According to the graph above, the
majority of respondents would suggest Dmart to friends.

17% of respondents believe that their shopping experience will impact their decision to visit
D-Mart, while 30% believe that the price of a product will influence their decision. The display
in a D-Mart had no effect on the buying decision. D-Mart has a good product selection,
according to 68% of customers. The respondents agree that D-Mart products are good value
for money. Respondents are pleased with the availability of contemporary and cutting-edge
fashion products. • For crowd management, 47% of respondents are satisfied out of 100. D-
ambiance Mart's has a 71% neutral rating. The billing system is user-friendly, and the consumer
is pleased. 58% are pleased with the helpfulness of the staff. 92% believe the parking system
is satisfactory. 91% are pleased with the overall service offered by the store. 91% of people
would recommend D-Mart shopping to others.

SCOPE FOR FURHTER STUDY

Further analysis can be done on the annual sales report to know the success rate of Dmart
Company, rather retail management is vast subject and the more you dive in the deeper it goes
and is deep. New methodologies and technological advancements are easing and shooting the
level of Retail Industry and when it comes to such advance levels of improvisation, it is must
needed that Retail Management should adopt new methodologies and must cope-up with the
technological advancements made in the Retail industry.
 CONCLUSION

D mart is a hypermarket since it sells a wide range of things such as clothing, groceries,
stationary, food items, electrical items, leather items, watches, jewelry, crockery, decorative
items, chocolates, and much more. It completes all socially stores of various products that
provide goods at a cheap rate all year. It has a wide consumer base, and according to the report,
the customers are pretty delighted with Dmart. Customers are also pleased with several services
such as complaint and return handling, packaging / gift wrapping, store information, personal
item safety, alteration, refreshment facilities, shopping carts, and the cost of these services.
Many services, however, fall short of consumers' expectations, such as parking, baby strollers,
fitting / trial room, human assistance in picking items, washrooms and drinking water, billing
facilities, retail environment, and warranties. It is possible to conclude that client happiness is
critical. Thus, while customer pleasure does not ensure customer repurchase, it does play a vital
role in ensuring client loyalty and retention. As a result, businesses should always endeavor to
ensure that their clients are completely satisfied.

Retail strategy is heavily reliant on data. Market research is responsible for acquiring and
analyzing data important to retailers. Market research must be conducted both before and after
the establishment of a retail store, according to the merchant. The information required at each
level varies greatly. In a world of increasing competition, research can help retailers satisfy
customers and thus build loyalty. The design of a strategy begins with consumer understanding
or a comprehension of consumer purchasing behavior. It is critical to understand not only what
consumers know about a product, but also what they do not know. Shopping is an activity that
almost everyone engages in on a regular basis. According to research, shoppers behave
differently based on the sort of shopping circumstance. They vary their information search
procedure according to the type of retailer and product. The purchasing function is critical in
commercial enterprises. Purchasing strategy in retail organizations is significantly more
interwoven with sales and marketing policy. Company policy is primarily focused on
increasing turnover and margin while decreasing working capital. Today's retail industry is
genuinely global.
 ANSWERS TO VIVA QUESTIONS

1. What prompt you to choose this topic?

Well, Retail management is a fascinating context and the market has evolved so extensively in
Retail sector that it hard to catch the track. I thought let me take this study and understand retail
management in depth, and took the Sub topic as. Employee satisfaction towards Dmart retail
because I really wanted to know the fact enclosed behind it. Well, retail management is an
intriguing setting, and the market has moved so rapidly in the retail industry that it is difficult
to keep up. I thought, let me take this study and grasp retail management in full.

2. How would you have connected objectives of your topic with the review of literature?

The objectives stated are well connected with the literature and content, I have elaborated.
Retailing may be understood as the final step in the distribution of merchandise for
consumption by the end consumers. Retailing is responsible for matching final consumer
demand with supplies of different marketers. Retailing is high intensity competition industry,
the reasons for its popularity lie in its ability to provide easier access to variety of products,
freedom of choice and many services to consumers. The Indian retail is dotted by traditionally
market place called bazaars or hats comprises of numerous small and large shops, selling
different or similar merchandise New retailers often enter the market place with low prices,
margins, and status.

3. What are the challenges you faced while conducting your term paper data collection?
Since it’s a very vast subject, it took me hard to pick my content in the beginning, I thought of
working on Retail management but could not figure out what should I take up as sub subject.
And one fine day when I was day out to get some grocery the idea of Dmart hit me and I though
let me work on this, then slowly my challenges started to diminish, my idea became clear and
was on the right path to find the content and really the work started with ease. Because it is
such a broad subject, it was difficult for me to choose my content at first was the biggest
challenge I took up.
4. How can you relate objectives of your study with conclusion through the SWOT analysis?

Objectives of my study are coherent and detailed well support of literature that has been
provided. Conclusion stands for my entire work. Retail Management is a broad subject and the
objective what we have taken of understanding the Retail industry, analyzing customer
satisfactions towards the products sold by D-Mart and analyzing the experience of and
satisfaction level of customers shopping at D-Mart has been closely taken care of while
detailing the literature. Since my subject is specific the SWOT analysis is done on the Retail
Industry as it was important to have a larger context and picture.

5. How would you bridge the gap in your term paper and industry practice

I am looking forward to having a hands-on approach throughout my next course of study; I

want to be a part of a Retail Store or industry and work closely with Retail workers to gain the
most out of my insights and fantastic experience.

END