1

Summer training
At
Adani retail

Finding out brand value Of Adani superstore

and Hyper market
Through market survey

Submitted By :

Kapil Tyagi
Mohseen Vohra
Yagnesh Bhengaliya
Paresh Goswami
Dharmesh Rkshiya
 2

Preface

Retailing is being considered as an important part of Indian economy at present Indian

retail industry generates revenue around 123 000 crores according to CII and it
employees around 7% of Indian population

Retailing is poised for boom time flowing from a surging domestic consumption
demand and consumerism. Organized retail is around 3 % of total retail and is
spreading to smaller town in all parts of the country. Over the past year the stock of
some companies operating in this sector has moved up four times.

The retail sector has driven by better delivery model and by selection of proper
location catering to every class of customer. The size of the organized segment is
around 30000 crores .According to the report of union ministry of commerce &
industry the retail sector has being growing at 7% per annum ( based on 1999-
2002figure) .However
The sector remains fragmented and the neighborhood kirana store still dominates the
scene . As neighborhood kirana store still dominates the scene . as much as 98 % of
the outlet
World 100 largest retailing company generates around 2 trillions in annual revenue
which is a to bigger figure to ignore. Even Indian government is thinking of raising the
limit for disinvestment in Indian retail sector up to 49 % which will be sufficient to
attract investment in range of around 64 billion US dollar by the year 2009-10

Retailing is an important field to study because of its impact on the economy, its
function in distribution and its relation with firms selling goods and service to
retailers for there resale or use and another reason for studying the retail segment is
this that it offers an good carrier opportunity .
 3

Acknowledgement
A good teacher is like a candle –
It consumes itself to light the way for others.

And that’s what my mentor did for me, In spite of having his too much
busy schedule. It was not at all possible without the constant encouragement and
motivation provided by all my mentors. So, I take this opportunity to acknowledge the
help, the boost and the encouragement; I received in abundance from various
authorities during the entire course of project development.

My enthusiasm and “green” finger was aptly led by my college teachers

who were always be with me. It was their help, cooperation and guidance that proved
to be a major force in driving me towards my goal. Without them, completion of this
project would have remained an unachieved dream.

The creative inputs from the entire staff were responsible in completion
of the project. Especially Mr. Manish Krishnan sir and our special thanks to Mrs.
Sonia madam , was generous, thoughtful and cooperative in the matters pertaining
to the project.

Lastly but definitely not the least, I really appreciate his tremendous co-
operation and timely help during my summer project. I am extremely privileged to
work under the guidance of such mentors who have played an utmost role not only in
radiating a sense of achievement within me on completion of the project, but also in
shaping me up as finished products ready to take on the challenges thrown up in
future.

KAPIL TYAGI
MOHSEEN VOHRA
YAGNES BHENGALYA
 4

PARESH GOSWAMI
DHARMESH RAKESHYA

INDEX

CONTENT PAGE NO

1 About the company 3

2 Important mile stone 5

3 Retail overview 7

4 Present scenario 11

5 FDI in retail 14

6 Challenge for modern retailing 15

7 Different form of retailing in INDIA 16

8 Challenges of retailing in INDIA 18

9 lists of major player in INDIA 22

10 Retail as employment generator 23

11 Threat From increase in FDI in INDIA 24

12 Stages of development in retail 28

13 Identifying and understanding customer 30

14 Importance of location to retailer 32

15 Research methodology 35

16 Interpretation from market survey sample 36

 5

ABOUT COMPANY

ADANI RETAIL LIMITED (Formerly B2C India Limited) is one of the companies among the
ADANI GROUP which is promoted with an intention to foray into retailing marketing
business with an immediate objective of setting up a chain of retail outlets in line
with the core competence of Trading and Infrastructure of Adani Group.

Adani Retail Limited is into the business of Organized Retailing, the sector which has
tremendous potential and is growing with very rapid pace. Looking into the current
scenario, ARL also plans to have the B2B model to be plugged in the existing offering.

The vision of the Adani Retail Limited is . . .

“To establish ARL as the premier multi-locational retailer of wide ranging family
products, and develop and provide quality product range to have satisfied
customer base and thus contribute positively to the community and environment
with recognizing profitability is essential for the future success.”

Quality, Service, Convenience, Satisfaction and Assured Benefits are the Backbone of
the Adani Retail Limited. ARL currently have 15000+ SKUs, with the major categories
of FMCG, Household goods and Appliances, Apparels, Gifts & Articles, Luggage &
related items and catering 5,10,000+ families across the state of Gujarat.

ADANI RETAIL LIMITED is the largest supermarket chain of the Western India. At
present Adani Retail operates in 9 Cities across the State of Gujarat with the chain of
47 stores. ARL is having 27 stores in Ahmedabad, 10 stores in Baroda, 3 in Surat, 2 in
Rajkot, one each in Anand, Gandhinagar, Mundra, Nadiad & Navsari. ARL operates
through the format of Neighborhood Store, Supermarket Store, and Hypermarket
Store. ARL plans to continue its journey to reach total 19 cities with the store
strength of 60+ in the state of Gujarat. ARL also plans to expand its operation in the
neighboring states of Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh.

At present Adani retail is a 150 crore company and according to Adani retail MD
Devang Desai company is eying an target of achieving a sales figure of 500 crore
through its expansion plan , it has plans of setting up 15 additional outlets in other
parts of Gujarat by the end of ‘06.
 6

Lists of companies floated by ADANI GROUP

• Adani export limited

• Gujarat Adani energy limited

• Adani wilmar limited

• Gujarat adani port limited

• Mudra sez

• Adani retail limited

• I call India limited

IMPORTANT MILE STONE

 7

1988 • Started as partnership firm

• Entrepreneurial vision
• Limited capital, infrastructure
• One market, one business focus
• Customer centric approach
• Global aspirations
• Passion, hard work, will to succeed

• Overall value creation as mantra

1993 • "Star Trading House"

• Conversion in to a Public Limited Company

1994 • “Super Star Trading House”

• IPO @ Rs.150/share. Over subscribed 25 times

1996 • 1 : 1 Bonus

1998 • Mundra Port Operational

• Coal business commenced

• Sales touches USD 608 Mn

1999 • Subsidiary in UAE

• 1 : 1 Bonus

2000 • Castor Exports

• Rice Exports

• Sales touches USD 640 Mn.

2001 • Edible Oil Refinery

• Wheat Exports
• Rice Imports

• “Golden Super Star Trading House”

2002 • Subsidiary in Singapore

2004 • Awarded “Five Star Export House” status

• Sales Turnover crosses USD 2 Billion

 8

ADANI RETAIL HEAD OFFICE ADDRESS AND CONTACT NUMBER :

ADANI GROUP
"Adani House",
Near Mithakhali Circle,
Navarangpura,
Ahmedabad - 380 009
Gujarat, India

Phone : +91-79-26565555 / 25555555

Fax : +91-79-26565500 / 26555500
E-Mail : info@adanigroup.com

Retail : overview

Retailing encompasses the business activity involve in selling goods and service
to consumer for their personal ,family or household use .it indicate every sale to the
final consumer ranging from care to apparel to meal to restaurant to theater ticket
.retailing is the last stage in the distribution process

Retailing today is at important crossroad. On one hand sales are at their

highest point in history. Wal –mart is now leading company in the world in terms of
sales –ahead of Exxon Mobil, general motors and other manufacturing giants. New
technologies are improving retail productivity. there are lots of opportunity to start a
retail business –or work for an existing one –and to become a franchisee but there are
problems also customer service expectation are high at time when more retailer offer
self service and automated system at the same time many retailer remain unsure
what to do with the web they are still grappling with the emphasis to place on image
enhancement, customer information and feedback and sales transaction

There are many issue that retailer must resolve ‘how can we best serve our
customer while earning a fair profit how can we stand out in a highly competitive
world where consumer have so many choice? How can we grow our business while
retaining a core of loyal customer? our point of view ; retail decision makers can best
address these questions by full understanding and applying the basic principle of
retailing in a well systematic and fully focused strategy
 9

Reasons for studying the retailing

Retailing is an important field to study because of its impact on the economy its
function in distribution and its relation with firms selling goods and service to
retailers for there resale or use
A fourth factor for student of retailing is the broad range of career opportunity
World 100 largest retailing company generates around 2 trillions in annual revenue
which is a to bigger figure to ignore

Typical channel of distribution

Final
Manufacturer Wholesaler Retail
Consume
er
r

Retailing is the last stage a channel of distribution all of the business and
people involved in physical movement and transfer of ownership of goods and service
from producer to consumer. A typical distribution channel is shown in above figure
.retailer often act as the contact between manufacturers and the wholesaler and the
consumer many manufacturers would like to make one basic type of item and sell
there entire inventory to as few buyers as possible, but usually wants to choose from
a variety of goods and services and purchase a limited quantity. Retailer collect and
assortment from various sources buy in large quantity and sell in small amount .this
the sorting process.

Another job for is communicating both with consumers and with manufacturers
and wholesaler shoppers learn about the availability and characteristic of goods and
service stores are sells , and so on from retailers ads sales people , and display .
manufacturers and whose sellers are informed by there retailers with regard to sales
forecast , delivery delays , customer complains defective items , inventory turn over
and more .many goods and services have being modified due to retailers feed back
 10

For small suppliers, retailers can provide assistance by transporting storing

marking advertising and prepaying for product. Small retailer may need the same type
of help from those suppliers. The functions performed by the retailer effect the
percentage of each sells rupees the need they over cost profit

Retailer also complete transaction with customer. This means having

convenient location, filling order promptly and accurately and processing credits
purchases some retailers also provide customer services such as gift raping, delivery
and installation. to make themselves to even more appealing , many firm now engage
in musty channel retailing where by retailers sell to consumers through multiple
retailer format most large retailers operates both physical stores and web site to
make shopping easier and to accommodate consumer desire

the special characteristic of retailing

there are three type of factor which tend to differentiate retailing from other type of
business
 11

Small average sales Impulse purchase

Retailers

Strategy

Popularity of store

First reason: the average amount of sales transaction for retailer is much less than
manufacture
the average sales transaction per shopping trip is well under $100 for departmental
stores, specialist stores and super market this low amount create a need to tightly
control the cost associated with transaction (such as credit verification, sales personal
and begging): to maximize the number of customer draw to retailers which may place
more emphasis on more ads and special promotion and to increase impulse sales by
more aggressive selling.

Second reason:
 12

Final consumer makes many unplanned or impulse purchases

Surveys shows that a large percentage of consumers do not look at ads before
shopping do not prepare shopping list and make fully unplanned purchase. this
behavior indicate the value of in- store display attractive store layout and well
organized stores catalogs and web sites because so many purchase are unplanned the
retailers ability to forecast budget , order merchandised and have sufficient personnel
selling

Third reason
Retailer customer usually visits a store , even though mail, phone and web sales have
increased
Despite the in roads made by non store retailing , more retail transaction are still
conducted in stores – and will continue in the near future . Many people like to shop
in person : want to touch , smell and try on product ; like to browse for unplanned
purchase : fell more comfortable taking purchase home with them rather than waiting
for home delivery . This store based shopping orientation has implication for retailer :
they must work to attract shoppers to there store and consider such factors as store
location ,transportation , store house , proximity of competitor , product selection
parking and ads .

Present Scenario in India

As the corporate – the Piramals, the Tatas, the Rahejas, ITC, S.Kumar’s, RPG
Enterprises, and mega retailers- Crosswords, Shopper’s Stop, and Pantaloons race to
revolutionize the retailing sector, retail as an industry in India is coming alive. Retail
sales in India amounted to about Rs.7400 billion in 2002, expanded at an average
annual rate of 7% during 1999-2002.

With the upturn in economic growth during 2003, retail sales are also expected
to expand at a higher pace of nearly 10%. Across the country, retail sales in real terms
are predicted to rise more rapidly than consumer expenditure during 2003-08. The
forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with
7.1% for consumer expenditure. Modernization of the Indian retail sector will be
 13

reflected in rapid growth in sales of supermarkets, departmental stores and hyper

marts.Sales from these large-format stores are to expand at growth rates ranging
from 24% to 49% per year during 2003-2008, according to a latest report by Euro
monitor International, a leading provider of global consumer-market intelligence.

A. T. Kearney Inc. places India 1st on a global retail development index. The
country has the highest per capita outlets in the world - 5.5 outlets per 1000
population. Around 7% of the population in India is engaged in retailing, as compared
to 20% in the USA. In a developing country like India, a large chunk of consumer
expenditure is on basic necessities, especially food-related items. Hence, it is not
surprising that food, beverages and tobacco accounted for as much as 71% of retail
sales in 2002. The share of food related items had, however, declined over the review
period, down from 73% in 1999. This is not unexpected, because with income growth,
Indians, like consumers elsewhere, have started spending more on non-food items
compared with food products. Sales through supermarkets and department stores are
small compared with overall retail sales. Nevertheless, their sales have grown much
more rapidly, at almost a triple rate (about 30% per year during the review period).

This high acceleration in sales through modern retail formats is expected to

continue during the next few years, with the rapid growth in numbers of such outlets
due to consumer demand and business potential.The factors responsible for the
development of the retail sector in India can be broadly summarized as follows:

• Rising incomes and improvements in infrastructure are enlarging consumer markets

and accelerating the convergence of consumer tastes. Looking at income
classification, the National Council of Applied Economic Research (NCAER) classified
approximately 50% of the Indian population as low income in 1994- 95; this is
expected to decline to 17.8% by 2006-07.

• Liberalization of the Indian economy which has led to the opening up of the market
for consumer goods has helped the MNC brands like Kellogg , Unilever, Nestle, etc. to
make significant inroads into the vast consumer market by offering a wide range of
choices to the Indian consumers.

• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

• The internet revolution is making the Indian consumer more accessible to the
growing influences of domestic and foreign retail chains.

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

products for local markets. About 47% of India’s population is under the age of 20; and
this will increase to 55% by 2015. This young population, which is technology-savvy,
 14

watch more than 50 TV satellite channels, and display the highest propensity to
spend, will immensely contribute to the growth of the retail sector in the country.

As India continues to get strongly integrated with the world economy riding the
waves of globalization, the retail sector is bound to take big leaps in the years to
come. The Indian retail sector is estimated to have a market size of about $ 180
billion; but the organized sector represents only 2% share of this market. Most of the
organized retailing in the country has just started recently, and has been
concentrated mainly in the metro cities. India is the last large Asian economy to
liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold
through the super markets and departmental stores.

A similar phenomenon has swept through all other Asian countries. Organized
retailing in India has a huge scope because of the vast market and the growing
consciousness of the consumer about product quality and services. A study conducted
by Fitch, expects the organized retail industry to continue to grow rapidly, especially
through increased levels of penetration in larger towns and metros and Also as it
begins to spread to smaller cities and B class towns. Fuelling this growth is the growth
in development of the retail-specific properties and malls. According to the estimates
available with Fitch, close to 25mn sq. ft. of retail space is being developed and
will be available for occupation over the next 36-48 months.

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

A McKinsey report on India says organized retailing would increase the efficiency and
productivity of entire gamut of economic activities, and would help in achieving
higher GDP growth. At 6%, the share of employment of retail in India is low, even
when compared to Brazil (14%), and Poland (12%).

According to a study on the food and grocery retail market by KSA Technopak,
the country’s overall retail sales now account for 44 per cent of its GDP. Food retail
sales make up for close to 63 per cent of total retail sales. In absolute terms, food
retail sales have grown from Rs 3,81,000 crores in 1996, to Rs 7,03,900 crores in 2001.
And, just for the record, non-food retail sales have grown from Rs 2,22,400 crores in
1996, to Rs 4,19,000 crores in 2001.

Besides, the food and grocery sector now accounts for 14 per cent of total
organized retail, after clothing and textiles (at 36 per cent) and watches and
jewellery (at 17 per cent).
 15

Food and grocery retail offers the biggest opportunity for growth, provided
levels of investment are high, says the KSA study.

The study further analyses that last year, for the first time in five years, retail
shares of grocery dropped, even though in terms of absolute value, the shares
remained stable. KSA Technopak attributes this to an international trend — even as
total consumer expenditure rises, grocery shares slip at the cost of lifestyle-related
expenses.

Also, most food retail players have been region-specific as far as geographical
presence is concerned. Take the RPG Group’s Food World, Nilgiris, Margin Free, Giant,
Varkey’s and Subhiksha, all of which are more or less spread in the Southern region;
Sabka Bazaar has a presence only in and around Delhi; names such as Haiko and
Radhakrishna Food land are Mumbai-centric; while Adani is Ahmedabad-centric.

Industry representatives say spreading presence across cities is a tough call. As

Singhal points out, “Organized food and grocery retailing chains going national
requires significant investments. Retailing within this sector is not just about the
front-end, but involves complex supply chain and logistics issues as well.”

Take Food World, which came in first in the food and grocery retailing sector.
The chain has no plans to venture beyond the Southern region just yet. “Our current
plan is to focus on the Southern markets and achieve saturation. Maybe by 2005, we
could look at the other regions, but there are no firm plans as yet,” says Pillai. Food
World has a current sales figure of Rs 350 crores. Subhiksha too is gung-ho about the
future of the discount chain. Says Subramanian, “We deliver significant price value to
the customer. We want to be the principal store of purchase for at least 40 per cent
of all consumers living within 500-750 meters of the store, that is, within walking
distance.”
Meanwhile, the RPG group plans to take its new formats such as Giant
Hypermarkets national over the next three years. Grocery is a large component of this
format, but not the only one.

Elaborating on the hurdles of going pan-Indian, Pillai observes: “Fundamentally,

the way a basic grocery retailing model works is that the high set-up costs in terms of
setting up buying/ distribution infrastructure is gradually amortized over a larger
number of stores. The back-end costs without distribution centre costs, or what in
retail jargon is called retail administration costs, should stabilize at around 2.5 per
cent to 3 per cent of sales.”
 16

Pillai says the obstacles of looking at a pan-India model for grocery are several.
Given the federal nature of the country, the weak infrastructure and the major
variances in eating habits in different parts of the country, one will have to replicate
the retail administration costs for at least each region and therefore the gestation
period of the project becomes huge. “Of course, if one can get a model in place
where the upfront store revenues scale very rapidly, then it is possible. Therefore, if
one is to attempt a pan-Indian grocery foray, it will have to be in the hypermarket
format with its attendant investment numbers and risk profile,” he adds.

Adds Arif Sheikh, President, Sabka Bazaar (owned and promoted by Home
Stores India Ltd): “While margins in the food and grocery business are only about 15
per cent, supply chain management costs are very steep. Therefore, it is difficult for
food retail chains to go national.” Sabka Bazaar currently has 19 outlets in and around
Delhi, and there are no immediate plans to spread wing.

Sheikh presents another argument. According to him, there is so much

potential to extract from individual regions, that players are in no tearing hurry to
spread out. He cites a recent IMRB study, according to which in the six major metros,
Delhi has the highest per capita consumption of food and grocery, among
supermarkets. Chennai, the Mecca of retailing, comes at fourth place. “This shows
the high potential the sector presents. Chennai has some five supermarkets, and each
of these are doing well for themselves. So there is enough scope to expand even in
one single city.”

Sabka Bazaar is now generating sales of Rs 11 crores from its 19 stores, says Sheikh.

Pantaloon Retail (India) Ltd, which operates two types of retail formats, made
its maiden foray in food and grocery retailing in the North late last month. Big Bazaar,
Pantaloon group’s discount store chain, has taken off to a roaring start in Delhi, says a
company official. The Pantaloon Big Bazaar in Delhi is the sixth for the group, and the
first in North India. According to a Pantaloon official, existing Big Bazaar stores in
cities such as Hyderabad, Bangalore and Mumbai attract footfalls of 20,000 to 25,000
per day, more so during weekends.

While Big Bazaar is essentially a discount store retailing product categories

ranging from food and grocery to apparel to footwear to home and interior products,
food and grocery retailing forms a significant part of the chain’s business. “Typically,
while food and grocery retailing does well at the beginning of the month, the apparel
sector sees maximum off take during festivals,” points out a Pantaloon Big Bazaar
official. The Pantaloon group is now gearing up to open its next Big Bazaar in Nagpur
within a few months time.
 17

Of course, this is the tip of the iceberg, and KSA Technopak’s projections will
well give a shot in the arm to the industry. Given that organized retail has been
registering growth rates of approximately 40 per cent over the last three years, it is
expected to grow to about Rs 35,000 crores in 2005, and close to Rs 70,000 crores in
2010.

And as an industry analyst elaborates, “Some years down the line, food and
grocery stores will become dominating trade partners for the food industry, which, in
turn, will be forced to offer special discounts and trade terms for them to get the
shelf space in such stores. Also, once established, in-store label brands will become a
real threat to the industry as manufacturers will have to compete with the store label
brands which are generally very price-competitive.”

Replicating the success stories of names such as Sainsbury and Tesco may still be a
distant dream for Indian food and grocery retailers, but at least the winds are blowing
in the direction of growth.

FDI in retail
The government has made a beginning in opening up the retail sector to foreign
direct investment by allowing a maximum of 51 per cent in single brand retail stores
. Global giants such as Wal-mart Tesco are waiting in the wing to enter the Indian
retail market and this will take the organized sector to higher level in customer
service .

India displaced displace Russia to move from second place to first in the 2005
Global retail investment index released by AT Kearney recently . the index is a study
of retail investment among 30 emerging market across the globe . This indicates that
the country is the most attractive destination for retail investment . Players such as
Wal-Mart , Tesco and Carrefour will be willing to enter retailing in India through joint
venture with local player At the same time they will bring the best practice in
 18

retailing in all areas and this will lead to more choice for the consumer and customer
satisfaction

However , some Indian retailing are demanding a level field playing field and
are uncomfortable with the haste with which FDI in retail is being planned .This
means that they will prefer allowing local retailers to scale mass before allowing
foreign retailers At the present rate of growth of organized retail this will not take
too mush time .

A recent report commissioned on the behalf of ministry of consumer affaire has

advocated opening of the retail sector to FDI with player like Wal-Mart allowing to
own up to 49 % of the retail venture in a time frame of three to five years .

Challenges for modern retails:

The Indian retail industry is in process of addressing a few challenges to growth .

The Indian consumer especially in the tire two and tire three town is still
undergoing a change in mentality and has some way before he get used to the
organized retail segment fully . The conversion factor ( number of buyer vis-à-vis the
total visitor –known in retail parlance as footfalls – who visits these stores ) is
relatively low at 50-60 per cent .

The touch and feel factor has been important for the Indian consumer who
wants to know about the merchandise completely before buying . This has to
 19

gradually change and the consumer should be willing to experiment now .A majority
of Indian consumer still prefer to pay cash for there purchase and will use their
credit card only absolutely necessary . This however is changing with the new
generation . However , credit card usage is still lower than in developed economies .
Coupled with this is the competition from traditional store .

The majority of food and food product are retailed through neighborhood
kirana stores .These focus on dry food product in the absence of infrastructure for
cold storage .

Abundant supply of trained manpower is a constraint for the organized sector .

The retailer association of India (RAI) has over last one year been organizing training
program for personnel at all level to address this shortage of trained manpower .This
will however remains a challenge for organized retailer in the medium term given the
fact that this poised for rapid growth Various agencies have made different estimate
of the size of the organized market in 2010.The one thing is common among these
estimate is that the industry will be big in 2010 ( estimates at 10 per cent of total
retail by 2010 ) .The status of the industry will depend a lot o external factors such as
government regulation and real estate price , beside activities of the retail and
demand of the customer : some factor that will propel this growth will be

Increase invest : Newer chain will come in and present player will increase
their penetration in the cities and towns by 2006 the estimated player would have
reached saturation level in metropolitan cities and will shift the focus to other class 1
cities by 2010 there will be little difference between the metros and next 20 cities
( the present million plus cities) .A recent ICRIER report says that if the sector is
opened for FDI , investment in the modern retail sector will receive a boost and will
fuel drastic improvement I customer service too.

Persistent of regional difference : Although a few player will be able to form

pan- Indian retail supply chains , some sub – sector such as the food and grocery
retail are unlike to have many dominated national player .For example , food retailing
in Chennai ,Kolkata and Chandigarh is vastly different from each other in terms of
shopping habit and consumer taste many such difference will remain , Retailer who
develop different merchandise mix model for achieving a pan – India presence will
emerge as national player .Other will remain as retailer with regional strengths

Technology : As the industry is poised to grow and see its boom time ahead
however this will depend on logistic support and other environmental factor such as
governmental (both domestic and foreign ) availability of skilled manpower and
introduction of modern processing and technology in the retail trade .Availability of
quality real estate is another importance factor for retailing to take off in a big way .
in practical terms , this means that all the malls being planned should be available for
 20

retailer to exploit .This along with more brand appearing I retail landscape will
enable retailing to achieve a growth rate of 30 per cent in the next five year

Different Forms of Retailing : In INDIA

• Hypermarts

• Large supermarkets, typically (3,500 - 5,000 sq. ft)

• Mini supermarkets, typically (1,000 - 2,000 sq. ft)

• Convenience store, typically (7,50 - 1,000 sq. ft)

• Discount/shopping list grocer

• Traditional retailers trying to reinvent by introducing self-service formats as well

as value-added services such as credit, free home delivery etc.
 21

The Indian retail sector can be broadly classified into:

a) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector.
Traditional types of retailers, who operate small single-outlet businesses mainly
using family labor, dominate this sector .In comparison, super markets account for
a small proportion of food sales in India. However the growth rate of super market
sales has being significant in recent years because greater numbers of higher
income Indians prefer to shop at super markets due to higher standards of hygiene
and attractive ambience.

b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health
and beauty products .Here also small, single-outlet retailers dominate the market
.However in recent years, a few retail chains specializing in these products have
come into the market. Although these retail chains account for only a small share
of the total market , their business is expected to grow significantly in the future
due tothe growing quality consciousness of buyers for these products .

c) CLOTHING & FOOTWEAR

Numerous clothing and footwear shops in shopping centers and markets operate
all over India. Traditional outlets stock a limited range of cheap and popular items;
in contrast, modern clothing and footwear stores have modern products and
attractive displays to lure customers. However, with rapid urbanization, and
changing patterns of consumer tastes and preferences, it is unlikely that the
traditional outlets will survive the test of time.

d) HOME FURNITURE & HOUSEHOLD GOODS

 22

Small retailers again dominate this sector. Despite the large size of this market,
very few large and modern retailers have established specialized stores for these
products. However there is considerable potential for the entry or expansion of
specialized retail chains in the country.

e) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign
companies during the post liberalization period. A greater variety of consumer
electronic items and household appliances became available to the Indian
customer. Intense competition among companies to sell their brands provided a
strong impetus to the growth for retailers doing business in this sector.

f) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have

encouraged consumer expenditure on leisure and personal goods in the country.
There are specialized retailers for each category of products (books, music
products, etc.) in this sector. Another prominent feature of this sector is
popularity
of franchising agreements between established manufacturers and retailers.

Malls In India

Over the last 2-3 years, the Indian consumer market has seen a significant
growth in the number of modern-day shopping centers, popularly known as ‘malls’.
There is an increased demand for quality retail space from a varied segment of large-
format retailers and brands, which include food and apparel chains, consumer
durables and multiplex operators.

Shopping-centre development has attracted real-estate developers and

corporate houses across cities in India. As a result, from just 3 malls in 2000, India is
all set to have over 220 malls by 2005. Today, the expected demand for quality retail
space in 2006 is estimated to be around 40 million square feet. While previously it
was the large, organised retailers – with their modern, up-market outlets, and direct
 23

consumer interface- who had been a key factor driving the growth of organised retail
in the country, now it is the malls which are playing the role.

Factors such as availability of physical space, population densities, city

planning, and socio-economic parameters have driven the Indian market to evolve, to
a certain extent, its own definition of a ‘mall’. For example, while a mall in USA is
400,000 to 1 million sq.ft. in size, an Indian version can be anywhere between 80,000
sq.ft. and 500,000 sq.ft. By 2005, total mall space in the 6 cities of Mumbai,
Bangalore, Hyderabad, Chennai, Kolkata, and National Capital Region (Delhi, Noida,
Gurgaon) is expected to increase to over 21.1 million sq. ft. Compared to other big
cities, Kolkata and Hyderabad are relatively new entrants in the mall segment, but
are witnessing quick growth. Smaller cities like Pune, Ahmedabad, Lucknow,
Ludhiana, Jaipur, Chandigarh and Indore, are also expected to see a formidable
growth in the growth of malls in the near future. But malls in India need to have a
clear positioning through the development of differential product assortment and
differential pricing, in order to compete effectively in a growing mall market.
Segmentationin malls, like up-market malls, mid-market malls, etc. , proper planning,
correct identification of needs, quality products at lower prices, the right store mix,
and the right timing, would ensure the success of the ‘mall revolution’ in India.

Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly
flourishing industry, retailing needs to cross the following hurdles:

• Automatic approval is not allowed for foreign investment in retail.

• Regulations restricting real estate purchases, and cumbersome local laws.
• Taxation, which favours small retail businesses.
• Absence of developed supply chain and integrated IT management.
 24

• Lack of trained work force.

• Low skill level for retailing management.
• Intrinsic complexity of retailing – rapid price changes, constant threat of product
obsolescence and low margins.

The retailers in India have to learn both the art and science of retailing by
closely following how retailers in other parts of the world are organizing, managing,
and coping up with new challenges in an ever-changing marketplace. Indian retailers
must use innovative retail formats to enhance shopping experience, and try to
understand the regional variations in consumer attitudes to retailing. Retail marketing
efforts have to improve in the country - advertising, promotions, and campaigns to
attract customers; building loyalty by identifying regular shoppers and offering
benefits to them; efficiently managing high-value customers; and monitoring
customer needs constantly, are some of the aspects which Indian retailers need to
focus upon on a more pro-active basis.

Despite the presence of the basic ingredients required for growth of the retail
industry in India , it still faces substantial hurdles that will retard and inhibit its
growth in the future. One of the key impediments is the lack of FDI status. This has
largely limited capital investments in supply chain infrastructure, which is a key for
development and growth of food retail ingand has also constrained access to world-
class retail practices. Multiplicity and complexity of taxes, lack of proper
infrastructure and relatively high cost of real estate are the other impediments to the
growth of retailing. While the industry and the government are trying to remove many
of these hurdles, some of the roadblocks will remain and will continue to affect the
smooth growth of this industry.

Fitch believes that while the market share of organized retail will grow and
become significant in the next decade, this growth would, however, not be at the
same rapid pace as in other emerging markets. Organized retailing in India is gaining
wider acceptance. The development of the organized retail sector, during the last
decade, has begun to change the face of retailing, especially, in the major metros of
the country. Experiences in the developed and developing countries prove that
performance of organized retail is strongly linked to the performance of the economy
as a whole. This is mainly on account of the reach and penetration of this business
and its scientific approach in dealing with customers and their needs. In spite of the
positive prospects of this industry, Indian retailing faces some major hurdles (see
Table 1), which have stymied its growth. Early signs of organized retail were visible
even in the 1970s when Nilgiris (food), Viveks (consumer durables) and Nallis (sarees)
started their operations. However, as a result of the roadblocks (mentioned in Table
1), the industry remained in a rudimentary stage. While these retailers gave the
necessary ambience to customers, little effort was made to introduce world-class
customer care practices and improve operating efficiencies. Moreover, most of these
modern developments were restricted to south India, which is still regarded as a
‘Mecca of Indian Retail
 25

Factors Description Implications

Barriers to FDI not permitted in pure Absence of global players

FDI retailing Limited exposure to best
Franchisee arrangement practices
allowed

Lack of Government does not Restricted availability of

Industry recognize the finance
Status industry Restricts growth and scaling
up

Structural Lack of urbanization Lack of awareness of Indian

Impediments Poor transportation consumers
infrastructure Restricted retail growth
Consumer habit of buying Growth of small, one-store
fresh foods formats, with
Administered pricing unmatchable cost structure
Wastage of almost 20%-25% of
farm produce

High Cost of Pro-tenant rent laws Difficult to find good real

Real Non-availability of estate in terms of
Estate government land, location and size
zoning restrictions High land cost owing to
Lack of clear ownership titles, constrained supply
high stamp duty (10 %) Disorganized nature of
transactions

Supply Chain Several segments like food Limited product range

Bottlenecks and apparel Makes scaling up difficult
reserved for SSIs High cost and complexity of
Distribution, logistics sourcing & planning
constraints – Lack of value addition and
restrictions of purchase and increase in costs by
movement of almost 15%
food grains, absence of cold
chain
infrastructure
Long intermediation chain

Complex Differential sales tax rates Added cost and complexity of

Taxation across states distribution
System Multi-point octroi Cost advantage for smaller
Sales tax avoidance by smaller stores through tax
stores evasion

Multiple Stringent labor laws governing Limits flexibility in operations

Legislations hours of Irritant value in establishing
work, minimum wage payments chain operations;
Multiple licenses/clearances adds to overall costs
required
 26

Customer Local consumptionLeads

habits
to product proliferation
Preferences Need for variety Need to stock larger number
Cultural issues of SKUs at store
level
Increases complexity in
sourcing & planning
Increases the cost of store
management

Availability of Highly educated class does Lack of trained personnel

Talent not consider Higher trial and error in
retailing a profession of choice managing retail
Lack of proper training operations
Increase in personnel costs

Manufacturers No increase in margins Manufacturers refuse to dis-

Backlash intermediate and
pass on intermediary margins to
retailers

Different key players in Indian retail segment

Retailer segment covered

pantaloon retail (I) ltd value and life style retailing
BATA India ltd footwear
Big Bazaar Value retailing –food and grocery
Star India Value retailing –food and grocery
PRG retail value and life style retailing
Shoppers stop lifestyle retailing
Adani super/hypermarket value retailing - food and grocery
Lifestyle international lifestyle retailing
 27

Vivek ltd consumer electronics

Trent ltd value and lifestyle retailing
Adani super/hypermarket value retailing - food and grocery
Subhiksha trading discounting retailing – food and grocery
Margin Free discounting retailing – food and grocery
Trinethra value retailing – food and grocery
Nilgiris value retailing – food and grocery
Raymond’s ltd lifestyle retailing
Pyramid merchandised & Retail ltd value and lifestyle retailing
Vijay sales consumer electronics
Globus Stores lifestyle retailing
Nalli Specialty saree retailing
Ebony lifestyle retailing
ITC – lifestyle retail and business division lifestyle retailing
Madura garment apparel brand retailing
Arvind brands apparel brand retailing
Levis strauss India apparel brand retailing
Times retail (planet M music retailing
Barista coffee beverages retailing
Café coffee day coffee beverages retailing
Macdonald’s food service retailing
Pizza hut food service retailing
Crossroad food servicing retailing
In –orbit mall retailing
Forum mall mall retailing
Spencer plaza mall retailing
Nirmal lifestyle mall retailing

Retail as an Employment Generator

The retail sector can generate huge employment opportunities, and can lead to
job-led economic growth. In most major economies, ‘services’ form the largest sector
for creating employment. US alone have over 12% of its employable workforce
engaged in the retail sector.

The retail sector in India employs nearly 21 million people, accounting for
roughly 6.7% of the total employment. However, employment in organised retailing is
still very low, because of the small share of organised retail business in the total
Indian retail trade. The share of organised retailing in India, at around 2%, is
 28

abysmally low, compared to 80% in the USA, 40% in Thailand, or 20% in China, thus
leaving the huge market potential largely untapped.

A modern retail/retail services sector has the potential of creating over 2

million new (direct) jobs within the next 6 years in the country (assuming only 8-10%
share of organised retailing), according to Arvind Singhal, CMD, KSA Technopak. Retail
can create as many new jobs as the BPO/ITeS sector in India.

A strong retail front-end can also provide the necessary fillip to agriculture &
food processing, handicrafts, and small & medium manufacturing enterprises,
creating millions of new jobs indirectly. Through it’s strong linkages with sectors like
tourism and hospitality, retail has the potential of creating jobs in these sectors also.

Though the Planning Commission has identified retail as a prospective

employment generator, in order to strengthen the multiplier effect of the growth
in organised retailing upon the overall employment situation, a pro-active
governmental support mechanism needs to evolve for nurturing the sector. Issues like
FDI in retail, allocation of government-controlled land on more favorable terms,
strong political and bureaucratic leadership, etc., need to be addressed adequately.

Threat from increase in FDI in India

Foreign direct investment (FDI) in retail sector in India is a big issue these days.
A great debate is going on in the country whether to allow FDI in retailing or not. The
Left is vehemently opposed to any proposal to allow FDI in retail sector. Let us ponder
over the need for FDI in retailing.
One of the fundamental facts is that the circle of economic activity cannot be
completed until what is produced reaches the consumer. Hence, efficient distribution
and retailing are very important.
Presently, retail trade in India is highly unorganized and inefficient. The entry
of the organized sector in retail trade is capable of mitigating the huge waste
 29

involved in the current system. It would simultaneously lead to better prices for the
producers and lower prices for the consumers.

The latest measures are part of a program of privatisation, deregulation and

restructuring that began in 1991. Over the last decade and a half, successive
governments have opened up transportation, telecommunication, food processing,
electrical equipment, software, hotel and tourism, financial services, non-financial
services, metals and other industries to foreign investment.

Commerce and Industry Minister Kamal Nath announced the changes before
flying to the World Economic Forum conference in Davos in late January where Indian
business and government officials touted for increased foreign investment. Nath told
the leaders of the world’s richest corporations that India was seeking to increase its
FDI to $US10 billion by 2006-2007, up from the $6.5 billion invested in 2005.

Nath tried to play down the effects of the latest changes on the poor,claiming
that the opening of the retail sector was “limited” and would leave existing small
retailers unaffected. But any change is going to have a devastating impact on an
economic sector that employs 7 percent of the workforce or about 40 million people
and supports as many as 200 million people.

Partly due to poor infrastructure, India’s retail economy is backward by world

standards. Approximately 98 percent of those employed in retail are in what is
categorized as the unorganized sector—businesses that are small, unlicensed and do
not pay tax. The sector is far less developed than in most major countries in Asia.
China’s organized retail sector is 20 percent of the total, while the proportion is 50
percent in Malaysia and 40 percent in Thailand.

Retail activities such as door-to-door selling, street carts and market stalls,
act as a last resort for the unemployed, given the lack of jobs in manufacturing and
agriculture. Many in the retail trade are living below the poverty line. A report
published in December 2004 by the Centre for Policy Alternatives (CPAS) entitled “FDI
in India’s Retail Sector: More Bad than Good” stated that retailing is “probably the
primary form of disguised unemployment/underemployment in the country”.

The report continued: “Given the already over-crowded agricultural sector,

and the stagnating manufacturing sector, and the hard nature and relatively low
wages of jobs in both, many million Indians are virtually forced into the services
sector. Here, given the lack of opportunities, it is almost a natural decision for an
individual to set up a small shop or store, depending on his or her means or capital.
And thus a retailer is born, seemingly out of circumstance rather than choice.”

Commenting on the likely impact of foreign competition, the CPAS report

stated: “India has 35 towns each with a population over 1 million. If Wal-Mart were to
open an average Wal-Mart store in each of these cities and they reached the average
Wal-Mart performance per store—we are looking at a turnover of over 80,330 million
 30

rupees [$1.82 billion] with only 10,195 employees. Extrapolating this with the average
trend in India, it would mean displacing about 432,000 persons.”

The report added that if large retailers were to obtain 20 percent of the
retail trade “this would mean a turnover of 800 billion rupees [$18 billion] on today’s
basis. This would mean an employment of just 43,540 persons displacing nearly eight
million persons employed in the unorganized retail sector.”

Unlike export-orientated investors, foreign retailers such as Wal-Mart,

Carrefour SA of France and Metro AG of Germany, which have been lobbying the
government to open up the sector, will seek to dominate the domestic Indian market.
Their success as well as those of Indian retail chains will be at the expense of small
traders. Large retailers also threaten the livelihoods of small farmers and
manufacturers. Through their buying power they can force down prices. In addition,
retail chains will often want to deal with bigger and more efficient suppliers rather
than small producers.

A 2004 paper by Andrew Shepard, an economist with the UN Food and

Agriculture Organization, confirmed that large supermarkets often push small farmers
out of business. “Farmers experience many problems in supplying supermarkets in
Asia and in some cases this has already been reflected in the fairly rapid declines in
the numbers involved as companies tend to delist suppliers who do not come up to
expectations in terms of volume, quality and delivery,” he stated.

The paper cited, among other examples, the development of the Giant retail
chain in Malaysia which slashed the number of vegetable suppliers from 200 in 2001 to
just 30 in 2003.

In a decision that will have devastating consequences for some of the poorest
sections of Indian society, the Indian cabinet approved the opening up of the
country’s retail and other sectors of the economy to foreign investment.

Although the Indian government hails foreign investment as an economic

boon, the growth has largely benefitted the wealthy to the detriment of large
sections of workers, small business and farmers. The opening up of the Indian
economy and deregulation has resulted in substantial public sector job cuts, the
destruction of industries, land seizures and cuts to food and fuel subsidies.

There are approximately 40 million people and 11 million outlets in India’s

retail sector. Many of these are marginal businesses—small shops and stalls, street
vendors and hawkers—which will be destroyed by competition from large retail outlets
and chains. Many people, who have no alternate source of income or work, will be
left completely destitute.

The government decision on January 24 allows up to 51 percent foreign direct

investment (FDI) in “single brand” retail stores. Nike, Nokia or Levi can establish
 31

stores, but multi-brand retailers such as Wal-Mart and Carrefour are excluded, for
now.

The efficiency of organized sector in retailing is manifested in some of the

newer supermarkets in urban/metropolitan India- the produce is cleaner, fresher, well
packed, and often cheaper than the local shopkeeper.
This is possible because of the far more efficient distribution system which
organised retail chains are employing, by cutting layers of middlemen.
There are other benefits too of transforming retail sector into an organized
sector. Firstly, a number of new jobs will be created, far better paid than the
underage Labour working in the local shops. Secondly, circulation of black money and
tax evasion will be curbed, as big employers, as distinct from owner-managed chains,
will have to keep proper records. Thirdly, the benefits to the producer and consumer
through better prices, and through lesser wastage throwing up exportable surpluses,
will also benefit the economy as a whole.
Thus one can see that allowing foreign direct investment in retailing is beneficial to
all the stakeholders involved.
The Indian retail sector is witnessing tremendous growth with the changing
demographics and an increase in the quality of life of urban people. At this moment,
it is still premature to say that the Indian retail market will replicate the success
stories of names such as Walt-Mart Stores, Sainsbury and Tesco but at least the winds
are blowing in the direction of growth. In this report, the Indian retail industry has
been analyzed taking into perspective the growth of the Indian economy and the
sustainability of this sector in this scenario. PEST and porter’s Five Forces Analysis
have been employed to present a clear picture of the functioning of the retail sector.
The factors that are driving revolutionary changes in the retail sector have also been
analyzed. The business model that works perfectly in the Indian scenario has been

assessed and the mechanics of this business evaluated. Further, various segment of
the retail industry have been individually evaluated. The competition among the
retailers within this industry is also a major focus of this report.

The Indian retail segment is one of the largest in the world but has a long way to go
as far as organized retailing is concerned. A joint report by McKinsey and the
Confederation of Indian Industry (CII) has pegged the Indian retail market at $180
billion. The market, according to the report, is growing at a steady rate of 11-12
percent and accounts for around 10 percent of the country’s GDP. Most retail
customers today use Bradma-based Cash-Track register machines or the Casio cash
register. Being completely unorganized, no data capture is being done. But with smart
cards and credit cards finding huge acceptance with the populace, the need for retail

applications is coming in. Most of the larger stores have completed setting up their
back-end systems. So they are ready for VersaPOS, which will handle their front-end
operations.
 32

We have identified two levels in the retail segment where we see huge growth
opportunities—shops like Akbarally’s and Shopper’s Stop which have branches across
the country and small chain stores found in most metros are our key target segments.
Our product can also be used in standalone stores with large operations. Most of the
shoes and apparel stores in the country, especially in the smaller towns and cities,
belong to this category. VersaPOS is scalable across tiers. Products may be moved
between departments, categories, or any other criteria, with a click of a button.

In a decision that will have devastating consequences for some of the poorest sections
of Indian society, the Indian cabinet last month approved the opening up of the
country’s retail and other sectors of the economy to foreign investment.

Stages of development in retail industry

Market attractiveness usually follows the same consistent pattern all over the world .
Markets progress through four stages as they evolve from an emerging to a mature
market, usually over the course of 5 to 10 years . This model is particularly useful as
executives plan their market-specific strategies, giving them insight into timing and
allowing for better strategic decision-making. The four stages are:

Opening. An opening market is one that is just entering the GRDI or is just outside
the top 30 markets. At this stage, retailers should be monitoring the market and
performing high-level assessments. They should also begin planning their entry
strategies and send task-force teams in, if necessary. Patience is key, as entering too
early can lead to failure. India in the late 1990s is a good example of a country in the
opening stage, while in 2006, Kazakhstan is the country to watch.
 33

Peaking. A peaking market is developing quickly and is ready for modern retail. At
this stage, retailers should enter the market through sourcing offices, local
representation and new stores. Current peaking markets include Ukraine, India and
Vietnam. Retailers that enter during this stage have the best chance for long-term
success. Wal-Mart and Carrefour’s success in China in the late 1990s and early 2000s
illustrates the importance of committing to a promising high-growth market at the
right time. Today, Wal-Mart and Tesco are adopting the same strategy in India—testing
the market conditions before diving in. Looking ahead to 2011, don’t be surprised if
Wal-Mart and Tesco are among the top three international retailers in India.

Declining. The declining stage is when the market is still big and growing, but the
space for new entrants is becoming tighter—and retailers must act quickly. China is a
good example. Wal-Mart, Tesco and Carrefour have established their presence in the
primary hubs, and are now focusing on tier-two cities. Retailers entering a declining
market have limited time to explore, and their margin for error is thin. In general,
they must play by established rules and be prepared to deal with more competition
from other international retailers.

Closing. The window of opportunity is closing fast. The share of modern retail is very
high, reaching 40 to 60 percent. Most Eastern European markets, including the Czech
Republic and Poland, are in this phase. Though the opportunity is closing, retailers
can enter with new formats such as discount models, or non-food formats such as
consumer electronics and apparel.

A window of opportunity lasts about 5 to 10 years before a market enters the

closing phase and reaches saturation levels close to developed markets. India, for
example, was in the opening stage in 1995, entered the peaking stage in 2003 and
reached the number 1 rank in 2005. We expect India to remain in the peaking stage
for two to three years and then begin to move into the declining stage. While wave 2
formats such as discount stores could succeed in later stages, the ability to earn
significant market share and profits is limited and competition is fierce.

However, there are two exceptions to this rule . First, markets that join a
regional or economic community, such as the World Trade Organization or the
European Union, tend to develop more quickly. Retailers often rush to a market just
before it joins such groups to take advantage of the benefits membership will
eventually provide—and saturate the market in the process. For example, recent
entrants in the European Union—Latvia, Lithuania, Slovakia, Bulgaria and Hungary—
have moved from the peaking stage to the declining stage far more swiftly than have
other emerging markets.

Entering a market in the declining or closing stages inherently means increased

international competition, but choosing the right entry format in the right window of
opportunity could provide sizeable market opportunities. Metro launched several cash
and carry outlet stores in Ukraine, which is in the early part of the declining stage;
Lidl is opening a series of discount store in Latvia, which is in the closing stage.
 34

In these final stages, seasoned consumers enjoy a broad variety of shopping

experiences. Although no format is off-limits, targeting the best one becomes riskier.
When modern retailers saturate a market, a new entrant must have very specific
plays. Tesco, for example, is making a highly publicized move into the United States—
a very mature market—with a very specific format.

Identifying and understanding consumer

The quality of a retail depends on how well a firm identify and understand its
customer and form its strategy mix to appeal to them . This entails identifying
consumer characteristic , need and attitude : recognizing how people make decisions
and than devising the proper market plan .It also means studying the environmental
factor that affect purchase decision
each consumer segment has its own value equation and shops accordingly
.Understanding what drives different group is critical to creating an experience and
product offering satisfy their individual value equation
retailer must examine consumer on different level to identify and understand there
targeted market and generate relevant ,actionable business strategy .Firm aiming to
understand the whole consumer picture first obtain demographic information and
then delve into question designed to uncover purchase behavior derive . The retailer
 35

can transform target consumer need into true competitive advantage and it can begin
to create deep and profitable long term relationships .

1 Demographic are objective , quantifiable , easily identifiable and measurable

population data it can be divided as

Market size – how many people are in the potential target market ?

1 Demographic are objective , quantifiable , easily identifiable and measurable

population data it can be divided as
Market size – how many people are in the potential target market ?
Gender – is the potential market more male or female or are equal in proportion ?
Age – what are the prime age group to which the firm want to appeal?
Household size – What is the average household size of potential customer ?
Marital and family status – are potential consumer single or married ? do families
have children ?

2 Life-style 3 Need and

desire
 36

4 shopping attitude
1 demographics Retail and behavior
Shoppers

6 environmental factor
5 Retailers action

Income –is the potential target market lower income middle income or upper income
Retail sales – what is the retail sales forecast for the particular area?
Where people live – how large is the trading area from which potential customer can
be drawn ?
Occupation – in which industry and occupation are people in the area working ? are
they professional , office worker or of some other designation ?
Education – are potential customer college educated ?
Ethnical/racial background – does the potential targeted market covers a distinctive
racial or ethnic group ?

2 Life style are the way in which individual consumer and families live and spend and

money . Consumer life style are based on social and psychological factor and
influenced by demographic , a retailer should first have knowledge of consumer life
style concept and then determine the life style attribute of its own targeted group
.Factors which have significant influence upon consumers life style are

1 a culture
2 social class
3 reference group
4 the family life cycle
5 personality
6 class consciousness
 37

7 attitude
8 perceived risk

The impact of perceived risk on consumer

Type of perceived risk

1 functional
2 physical.
3 financial
4 psychological
5 time

consumer

Factor effecting perceived risk

1 product newness
2 consumer’s budget Outcome
3 number of alternative 1 purchase new product
4 social visibility 2 stick with old brands
5 amount of information available 3 talk to friends
6 time available to shop 4 seek more information
7 urgency of need 5 non purchase
8 price of product

A retailer can develop a life style profile of its targeted market by answering these
question and then use the answer in developing its
Strategy Culture - what values norms are most important to the potential
target market Social class – are potential consumer lower middle or upper class ?
are they socially mobile Reference group – to whom do the people look for
purchase advise Family life cycle- in what stage of the cycle are the bulk of the
 38

customer Time utilization - how do people spend time ? how do they view there
shopping time ? Class conscious are potential customer status conscious how does
this effects purchase ?

Attitude – how does the potential customer feel abut the retailer and its offering in
terms of specific components ?
Importance of purchase .– how important are the goods /service offered to potential
customer

Consumers need and desire

When developing a targeted market profile , a retailer should identify key consumer
need and desire .From a retailers perspective need are a persons basic shopping
requirement consistent with his or her present demographic and life style desires are
discretionary shopping goals that have an impact on attitude and behavior .
Consider this “ consumer today spend proportionately less on basic necessities such
as clothing and shelter that they did 25 30 or 50 years ago but they spend more on
discretionary purchase that are motivated by emotions and desires .They are
particularly strong spender on desire as opposed to need – categories such as gifts
entertainment and personal care product .

Shopping attitude and behavior

Considerable research has been done on peoples attitude towards shopping . Such
attitude have a big impact on the way in which people act in a retail setting .Retailer
must strive to turn around some negative perception that now existed .Let us
highlight some recent research finding
Shopping enjoyment : in general people do not enjoy shopping as much as in the past
.when the international mass retailer Association asked shoppers what would make
them choose one retailer from the group of similar retailer situated near each other
the shopper said that the retailer with the best employee attitude ,the cleanest
retailer and the retailer that appears nicest inside
Why people buy or do not buy on a shopping trip : it is critical that for retailer to
determine why shopper leaves without making a purchase . is it price ?
1 cannot find an appealing style
2 cannot find the right size or item is out of stock
3 nothing fits
4 no sales help is available
5 cannot get in and out of the store
6 price are to high
7 in stores experience is stress full
 39

8 can not find a good value

9 store is not merchandised properly
10 seasonality is off

Types of consumer decision making

1 Extended decision making

2 limited decision making
3 routine decision making
Impulsive purchase and customer loyalty
Impulse purchase arises when consumer buy product and brand that has not planned
on buying before entering a store .
There are three type of impulse shopping :
1) completely unplanned – A consumer has no intention of making a purchase in goods
or service category before he or she comes into contact with retailer .
2) partially unplanned – A consumer intend t make a purchase in goods or service
category but has not chosen a brand or model before he or she comes in contact
with a retailer
3) unplanned substitution – A consumer intend to buy a specific brand of good or
service but change his mind about the brand after coming into contact with the
retailer

In studying impulsive buying , there are some of the consumer attitude and behavior
pattern that retailer should take into consideration .

• In store browsing is positively affected by the amount of time a person has

for shopping
• Some individuals are more predisposed toward making impulse purchase
than others
• Those who enjoy shopping are more appt to make in store purchase decision
Impulse purchase are greater if a person has discretionary income to
spend

When customer loyalty exist a person regularly patronize a particular

retailer that he she likes or trust . this lets a person reduce decision making because
he or she does not have to invest in learning about and
choosing the retailer format which to purchase . loyal customer tend to
be time conscious , like shopping locally do not often engaged in out
 40

shopping , and spend more per shopping trip

there are several environmental factors influencing shopping attitude and

behavior
• State of the economy
• Price war among retailer
• Emergence of new retail format
• Evolving societal norms and values
 41

The importance of location to retailer

In India almost 99 percent of retail sales is made at the store , the selection of
a store location is one of the most important significant strategic decision in
retailing
Location decision are complex , cost are quite high , there is little flexibility
once site is chosen , and location attributes have big impact on a strategy
A good location may let a retailer success even if its strategy is mediocre . On
the other hand , a poor location may be such a liability that even able retailer can
not overcome it.
The choice of a location require extensive decision making due to number of
criteria consideration , including population size and trait , the competitor ,
transportation access , parking availability , the nature of near by store , property
cost , the length of agreement , legal restriction and other legal consideration
A store location may necessity a sizable investment and a long –term
commitment . Even a retailer that minimize its investment by leasing can incur
large cost . Beside lease payment firm must spend on lighting , fixtures a
storefront or so on .
Due to its fixed nature , the investment , and the of the lease , store location is
the least flexible element of the strategy . A firm cannot easily move to another
site to convert to another format
A retailer that owns its store’s building and land may also find it to change the
location
Any retailer moving from one location to another faces three potential problems

1) some loyal customer and employee may be lost : greater the distance
between the old and new site greater the lose

2) A new site may not have the same traits as the original one

3) Stores fixtures and renovation at an old site usually cannot be

transferred to a new site ; there remaining value is lost if they have not
fully depreciate

Store location affects long and short run planning . In the long run the choice
of location influence the overall strategy . A retailer must be at site that is consistent
with its mission goals , and targeted market for an extended time . It also must
 42

regularly study and monitor the status of the location as to population trend ,
distance people travel to stores , and the competitors entry and exist- and adopt
accordingly .

Retailer should follow four steps in choosing a store location

1 evaluate alternate geographical ( trading ) area in terms of residents and existing

retailers .
2 determine whether to locate as an isolated store in an unplanned business district
or in a shopping center with the geographical areas .
3 select the general isolated stores , unplanned business district , or unplanned
shopping center location .
4 analyze alternative sites contained in the specific retail location type .

First step is trade area analysis

The first step in the choice of a retail store location is to describe and evaluate
alternative trading area and then decide on the most desirable one . a trading area is
“ a geographical area containing the customer of a particular firm or a group of firms
for specific goods or service”.
A thorough analysis of a trading area provides several benefits :
• Consumers demographic and socioeconomics are uncovered . For a new
store , the study of proposed trading area revels opportunity and the retail
strategy necessary to succeed. For an existing store , it can be determined
if the current strategy still matches consumer need .

• The focus of promotional activities is ascertained and the retailer can look
at media coverage pattern of proposed or existing location .If 95 percent of
customers lives within the 3 miles of a store , it would be inefficient to
advertise in a paper which a citywide audiences .

• A retailer learns whether the location of a proposed branch store will

service new customer or take business from its existing stores . Suppose a
supermarket chain has a store at Vijay crossing and thinks of having
another branch of it at Manav near helmet crossing in Ahmedabad which is
hardly at distance of two kilometer , with a trading area of two kilometer
it should consider setting up another branch which is at least at distance of
three kilometer from its Vijay crossing because it

reduces the possibility of trading area overlap trading area overlap means same
customer are served by both parties . The chain must find out the overall net sales
 43

if it add the proposed store ( total revised sales of existing stores + total sales of
new stores – total previous sales of existing stores)

Trading area of existing estimated trading area of

store new store

Trading area overlap

• Geographical weakness are highlighted .

• Other factors are reveled . The competition , financial institution ,

transportation , labor availability , suppliers location , legal restriction ,
and so on can each be learned from the trading area analysis .
 44

The size and shape of trading area

Each trading area has three part

The primary trading area encompasses of 50 to 80 percent of a stores customer . It is
the area close to the store and posses the highest density of the customer to
population and the highest per capital sales
The secondary trading area contains additional 15 to 25 percent of a stores
customer . It is located out side the primary area , and customer are more widely
dispersed .
The fringe trading area includes all the remaining customer , and they are mostly
widely dispersed

1 Store

2 primary trading
area

3 secondary trading
4 3 2 1 area

4 fringe trading area

In reality, trading areas do not usually follow such circular pattern. They adjust to the
physical environment. The size and shape of a trading area is influenced by store
type, store size, the location of competitor, housing pattern, travel time.

Two stores can have different trading area even if they are in the shopping centre.
Situated in one shopping centre could be a branch of an apparel chain, with a
distinctive image and people willing to travel up to 10 to 15 kilo meters. When one
store has a better assortment, promotes more, or creates a stronger image, it may
then become a destination store and generate a
 45

trading area much larger then that of a competitor with a “me too” appeal.

A parasite store does not create its own traffic and has no real trading area of its
own. This store depends on people who are drawn to the location for other reason. A
magazine stand in a hotel lobby and a snack bar in a shopping centre is a parasite
store.

The extend of a store’s or center’s trading area is affected by its own size. As a store
or center gets larger, its trading area usually increases, because store or center size
generally reflects the assortment of goods service. Yet trading area does not grow
proportionally with the store or center size. As rule super market trading area is
bigger than that of convenience store.
 46

SWOT analysis of Adani superstore and hypermarket

Strength of Adani retail

• One of the biggest strength of Adani superstore is this that it has got largest
number of retail outlet in the Ahmadabad. Due to that factor it can serve to the
larger customer base.

• They are among the first retailer in Ahmedabad who started retail business on
lager scale due to that they have the advantage of earlier entrant in the market

• There are only few big competitor for Adani superstore in Ahmedabad like Big
Bazaar and Star India , so if Adani want than it can strongly consolidate its
position .

• Another big advantage is this that they are serving around 5.1 lakh customer in
Gujarat only they have the opportunity to convert such an large customer base
into loyal customer base .

• They have really penetrated the small cities of Gujarat which other competitor
can not imitate due to there business model so Adani can really capture the small
city market before other thinks of entering into that market .

Weakness of Adani retail

• In our survey we found out its biggest limitation being this that customer feels
that they are not getting any value addition by visiting any superstore of Adani as
they are able to get by visiting Big Bazaar , at Big Bazaar they are able to enjoy
the time they are spending while they are shopping , most of the respondent
feels that above mentioned factor is missing completely in Adani store .

• They have limited them self to superstore only by doing that they have ignored
the hypermarket store model now they have started opening hypermarket in
Ahmedabad after Big Bazaar has made serious in roads into there customer
base

• They have lager customer base but they have failed to convert them into loyal
customer.

• Many customer have said that some time all range of product are not available at
Adani superstore .
 47

• They have opened hypermarket in Ahmedabad but its really not known to the
customer where they have opened so it should be marketed properly so that
customer knows about it I personally must say this that quality of cloths which is
available at Adani hypermarket at Methakali six road is better than quality of
cloths available at Big Bazaar or Star India

Opportunity of Adani superstore

• In India retail segment is fragmented so it can really move to other states before
other think of entering into that market as they are already thinking of moving into
another states like Maharashtra, Rajasthan, Madhya Pradesh and Chhattisgarh.

• They have strong presence in small cities of Gujarat like Anand , Nadiad so they
know the market situation at small cities of Gujarat so they can really capture the
market before any one does .

• They does not have strong presence in hypermarket model so they can enhance
there customer base by serving customer through different format

Threat for Adani retail

• One of the biggest threat for Adani retail is entry of big players like Reliance into
retail industry , people are eagerly waiting for it as it has being revealed that
Reliance would start its retail business form Ahmedabad .

• Most of the customer surveyed has responded that they are going to Adani
superstore because its near to there home otherwise they would have preferred
to go to another supermarket or hypermarket if they would have being situated
near there home the other places where they have shown preference for
purchase there grocery item is Big Bazaar or Star India which Adani should
seriously consider

• Still most of the respondent in our market survey has said that the rates at which
goods are available at local kirana store are same and some have even said that
they are able to get higher amount of discount at there local kirana stores so that
mentality they can change by making known to the customer that they are
offering discount which are higher than that of local kirana store
 48

Research Methodology

• Research Design: Exploratory Study

• Data Collection:

Sources of data:
• Primary Data Collection: The data, which is required for the
project is most of primary in nature, which was collected from
Ahmedabad.
• Secondary Data Collection: There are most of the data available
like analysis, database (trough internet ), and reports.

Instrument of Survey: Structured Questionnaire (Appendix-I)

• Location of data collection: S.A.L Hospital area , Vastrapur ,

Memnagar , shyamal crossing , Jodhpur crossing

Sampling Design:

• Sampling Size: 2500

.
 49

Research interpretation
Interpretation for sample collected from SAL hospital area

1) Place where people go for purchasing grocery items ?

Kirana store 120

Adani 71
Big Bazaar 80
Star India 50

place where people go for purchasing

grocery item

50
120 kirana store
Adani
Big bazaar
80
Star Indai
71

in this question people were asked where they usually go for purchasing
there grocery items and people said that they are still very much
comfortable purchasing goods of there day to day requirement from local
kirana store and out of the total respondent who visits supermarket or
hypermarket around 50 % said that they go there without any intention of
purchasing any thing , they purchase decision is being taken on the spot
after seeing the good, mostly this type of behavior has being shown by
people who are visiting Big bazaar and visit there only in two or three
month ,people have shown preference for visiting Big Bazaar even
considering the fact that its around more than eight kilometer on average
 50

from my prospective area of survey . Mostly people are going there for
having fun. In my area there were two supermarket of Adani one near drive
in cinema and another deep inside Memnagar , even from this area people
were very keen to visit Star India mostly from upper middle class, another
very noticeable factor was this that people who are of local origin has
shown preference for purchasing grocery items directly from grocery market
at Kalupur according to them they are getting same quality with lower price
from kalupur .

2) How frequently they go for shopping ?

Week 15
Fortnight 32
In a month 65
In two or three month 35

how frequently they go for shopping

35 15
week
32
fortnight
in a month
in two - three month
65

In this question majority of people have said that they visit hypermarket
only on special occasion or once in two or three month ,people have shown
tendency to visit supermarket weekly and fortnight only when its near there
home other wise they are visiting supermarket in a month for purchasing
there whole month quota of grocery items
 51

3) place where people like to shop ?

Big Bazaar 37
Adani 15
Star India 15

place where they like to shop

22%

Big Bazaar
Adani
56% Star Indai
22%

In this question people were asked to rank Adani , Big Bazaar and Star India
in order of there preference and most of the respondent who are visiting
any one out of these , more than that of 50 percent have shown preference
for visiting Big Bazaar followed equally by Adani and Star India here people
have respondent keeping in mind “ where they enjoy shopping the most “.

4) Asked whether they would like to avail service like home delivery ?

Yes 53
No 24
 52

would like to puchase goods through home

delivery

31%

yes
no

69%

Majority of respondent when they were asked whether they would like to
avail service like home delivery and majority of respondent said yes they
would like to avail this service but most people have said that they will
purchase it only if cost are not more than there cost of visiting that place
and all the benefit such as discount and offers should be available on home

delivery also and still around 31 percent of people would like to see and
feel the product before making any purchase decision and they are not
confident that product quality might not be similar to what is mentioned

5) How many people go to supermarket or hypermarket without any intention of

purchasing any thing ?

Yes 48
No 50

want to have fun while shopping

49% yes

51% no
 53

In this question only those people have given positive answer who are going
there in two or three month time and take purchasing decis0069on on the
spot and usually go there on holiday or special occasion

6) According to customer who offers the most numbers of schemes and offers ?

Big Bazaar 34
Adani 12
Star India 16

where they think more schemes are availble

26%
Big Bazaar
Adani
55% Star India
19%

In this question people were asked to respond where they find most no of
attractive schemes and people have unanimously said that its Big Bazaar
which offers the most of schemes and offers

7) How many people said that location was an important factor in considering which
supermarket or hypermarket to visit ?

Yes 86
No 12
 54

locationas an important factor

12%

yes
no

88%

in this question people were asked whether they consider location as an important
factor while deciding from which place to purchase most of the people said that yes
location is an important factor the other who said that location is not an important
factor where those who said that they don’t mine going a little distance if they are
getting quality products

8) How many people said product availability and product quality was an important
factor for visiting superstore and hypermarket ?

Yes 93
No 5

quality and availablity as important factor

5%

yes
no

95%
 55

In this question people where asked whether they consider product

availability and product quality as an important factor about majority of
person said there main reason of going to superstore and hypermarket was
this that they are getting every thing of there household requirement under
one roof its time saving and important thing you can select and compare
prouduct your self and and you can compare various offer which are
available there which is something missing in kirana store where you get
scheme only if you have knowledge about it or shop owner tells you about
the scheme available

1) From where do customers, generally, buy groceries?

Memnagar:-

12% 0%

35%
20%

6%
27%

Near by kirana store Adani’s supermarket Adani’s hypermarket

Big Bazaar Star India Bazaar Other

The above chart states that, the Memnagar area is yet to be totally covered by
supermarkets. People still prefers to buy groceries and daily necessities from nearby
Kirana Store. At the same time Adani’s supermarket plays a major role in fulfilling
daily needs of costumers, as Adani’s supermarket has covered 27% market which is
higher then other organized retail players in city. It is because of Adani’s
neighborhood market store strategy.
 56

Jodhpur:-

0%
27%
35%

16%
22% 0%

Near by kirana store Adani’s supermarket Adani’s hypermarket

Big Bazaar Star India Bazaar Other

Jodhpur Area, this chart indicates Star India Bazaar is dominating the market
with 35% in this area; it is because of location factor. Though Big Bazaar is some what
far away from this area still Big Bazaar is able to attract customers. When it comes to
Adani’s it has only 16%. Till today, Near by Kirana Store is there with notable market
share, because of home delivery system (according to one of the respondent.)

Vastrapur:-

0%
27%
35%

10% 28%
0%

Near by kirana store Adani’s supermarket Adani’s hypermarket

Big Bazaar Star India Bazaar Other

Most of the respondents regularly buy grocery from near by kirana store as well as
supermarket like star bazaar and adani’s supermarket. But according to my analysis
they prefer to buy star bazaar most. If they buy in bulk, prefer star bazaar and adani’s
 57

supermarket, if they buy in retail or temporary shopping they prefer kirana store.
Some respondent prefer supermarket most, they enjoy shopping and also want to take
shopping experience. Big bazaar is far away from these areas so they can’t regularly
go there.

2) How many times do you visit the following SM/HM?

Memnagar:-

Weekly
Forthnightly

0%
20% 0%
24%
0%
49%

80% 27%

Monthaly Once in 3 Months

0%
24% 25%
0%
22%

6% 51%

72%
Big bazaar Star bazaar Adani’s Others
The above charts tell about customer’s visit to particular super/hyper market. Here
we can see that Adani’s is the highest gainer in terms of frequency, because customers
visit weekly with 80%, and monthly with 72% at Memnagar area. In general Adani’s is
successful to attract customers at store particularly at this area.

Jodhpur:-
Forthnightly
Weekly

0% 0%
10% 20%
28%

15%
65%
62%
Once in
Monthaly
3 Months

0% 0% 20%
28%

57%
23%

10% 62%

Big bazaar Star bazaar Adani’s Others

Star India Bazaar is the highest Frequency gainer in Jodhpur area. People
prefer to visit Star India Bazaar weekly. They do visit Big Bazaar monthly with highest
62%. Adani’s is also attracting footstep with 65%, but this is only in fortnightly and 57%
at once in three months.
Vastrapur:-

Weekly Forthnightly

4% 6%
0%

34% 40%

50%

66%

Monthaly Once in 3 Months

10% 15% 17%

40%

23%
30%
20%
45%
Big bazaar Star bazaar Adani’s Others

The number of times they visit to the supermarket and hypermarket: Rare
respondents who go weekly to SM/HM. The people who go weekly, most of them
prefer to go star bazaar, because of different vegetables are available in star bazaar,
very less people go to adani’s supermarket and there is not a single respondent who
go big bazaar weekly.
The people who go fortnight, they prefer to go star bazaar most, while the
number of people who go to adani’s supermarket is less than star bazaar. The people
who prefer to go monthly buy in bulk from supermarket hypermarket. So the
percentage of people who go to star bazaar is higher than adani’s and other stores.
Respondents are higher than earlier who go once in a month in big bazaar but they are
lesser than star bazaar and adani’s supermarket. Many people bring yearly grocery
from there native, so there is no matter to buy these things from SH/SM. Some people
also visit other places once in three month, the places like pyramid, patidar,
pantaloons, V mart, relief road and etc.
3) Which product do you regularly buy from SM/HM?

Memnagar:-

90 95
100 86
90 81
80
Percentages

70 61 60 56
60 54
50 43
40 34
26
30
20 5
10
0
ry

ap n c e

es
ts

ap ys
ils
ve e

ry

es
s
s

its
ge
ic

ic

en
na

ce

nc
ns

To
tri
cu

et
/ju

ia
ra

io

m
ro

ile

ia
te
m
s

pl
k

ct
Bi

ar

pl
G

U
rin

To
os
fe

G
Be
D

C
on

e
he
C

om
itc

H
K
Products

These Bars show the customer’s purchase habit from Super/Hyper market.
Customers purchase more of Drinking juice and Grocery from Super/Hyper market
during visit. While Beverages, Toiletries also in most customers’ purchase list.

Jodhpur:-

95 93
100 86
90 76
Percentages

80 65
70 61 58
60 49
50
40 28
30 15 15
20 9
10
0
e

es
y

ts
e

s
s
ry

ls
s

ys
ts

nc
r
ge
ic

e
ic
na

nc
en
si
ce
i

tri

To
cu

ia
et
/ju

n
a

tio

ia
m
ile
ro

te

pl
m
er

is
k

pl
ar
ec

ap
G
rin

U
To
B

os
ev

ap
G
f
D

C
on
B

e
he
C

om

Products
itc

H
K
 What do customers generally buy from SM/HM; this is the chart that indicates
customers’ buying pattern. They mostly buy Toiletries, Grocery & Biscuits. They also
prefer to buy Drink/juice, Confectionaries, and Cosmetics from SM/HM. But when it
comes to Beverages, Utensils, Kitchen appliances and Home appliances they buy less
it from there.

Vastrapur:-

100 90
90 83
Percentages

76 75
80 65
70 54
60 50 47
50 43
40 24 26
30
20 5
10
0

ce

es
y
e

ts
s
s
s

ry

ls
ts

s
r
ic

ge

ic

e
na

nc
an
oy
en
si
ce
ui

tri
et
/ju

n
a

tio

ia
i
c

T
m
ile

pl
ro

te
m
er

is
k

pl
ap
ar
ec
rin

U
To
B

os
ev

ap
G
f
D

C
on

n
B

e
he
C

om
Products
itc

H
K

The customer who regularly buys from kirana stores, they do not go to SH/SM
and these questions are only for those who regularly buy from supermarket and
hypermarket. The people who want one stop shopping they prefer to buy from
supermarket and hypermarket. Many respondents who buy item like garments buy
from pantaloons, pyramid, V mart and home appliances like electronic item home
decorated item buy from exclusive show rooms and companies retail outlets or
factory outlets of the company.
4) Please mention the factor that you consider important while shopping at SM/HM?

Memnagar:-

Location Product variety

7% 5% 0%
7%
7% 3% 1%
0%

81%

89%
Very imp Imp Average Not very imp Not at all imp

Products available
Service quality

5% 3%0%
8% 5% 0%
10%

55%
30%

84%

Price
Product quality

7% 0%
12%
7% 0%

19% 62%

93%

Schemes

8%
16%
43%

21%
12%
 Ease of shopping

Offered

8% 4%

18%
12%

38% 55%
21%
15%

17% 12%
Very imp Imp Average Not very imp Not at all imp

Added service (like home delivery)

22% 18%

10%
23%

27%

These indicate the Offers and Added Services like home delivery to customers is less
significant. While other parameters like Location, Product availability, Quality, Variety
are most influencing to the customers. Service, Price, Scheme, Ease of shopping all
these is immaterial to the customers at the Memnagar area.
Jodhpur:-

Location Product
quality

21% 0%
7% 0%
13%

79% 80%
Products Product
available variety

0% 4% 0%
16% 14%

82%
84%

Very imp Imp Average Not very imp Not at all imp
 Service Offered
quality

4% 3%
6% 0% 11%

43% 46%

51% 36%

Ease of
shopping

Price
5% 5%
12% 35%

4% 5% 3%
43%

15%
Very imp Imp Average Not very imp Not at all imp

Added service
73% (like home delivery)
Schemes

9%
10%
2% 2% 42%
13%
38%
12%

37%

35%

People are more sensitive to Location of store, Quality, Price, Variety and
Availability of Products because majority of people said that it is very important. They
also want more Offers, Schemes and better Service Quality.
Vast rapur:-
Location
Product
quality

10% 4%0% 7% 3%0%

23%
63% 90%

Product
variety
Products
available
5% 5% 0%
15%

3%0%
15%

75%

53%
29% Very imp Imp Average Not very imp Not at all imp

Service Price
quality

8% 2% 2%
0%
10% 5% 0%

25%
60%
88%
 Schemes Ease of
shopping

8% 4%
6%
12%
18%

52%
19% 53%
18%
10%

Very imp Imp Average Not very imp Not at all imp

Offered
Added service
(like home delivery)

12%

40% 22% 18%

21%

10% 23%
17% 10%
27%

Factors like location, service quality, product availability, product quality, product
variety gives average response to all of them. But on the basis of standard response of
the respondents, product quality is very important factor, while they give same and
average preference to location and product availability, some respondents gave less
important to product variety and service quality. Most of the respondents want to give
same preference to all these factors, they don’t want to trade off. Another factors
like price, schemes, offered, ease to shop and added service like home delivery. Price
is very important factor for all the respondents, on the basis of this factor they decide
to buy or not. Schemes and offered also important, most of the people who prefer to
buy in festivals like diwali, holy, 26th January, 15th august, also take benefit of
schemes like monsoon dhamaka and summer offer. Some people also want to take
home delivery when they buy in bulk.

5) Please rank following SM/HM on overall parameters

Memnagar:-
 100 0 0
5 0
90 17
80
70
60
78 95
50
40 83
30
20
10 17
0 5
0
Rank-1 Rank-2 Rank-3

Big bazaar Adani’s hyper/super market Star India Bazaar Other

Customers have given this indication on the question of Ranking on overall

criteria of Super/Hyper market. They said that Big Bazar is dominating the market on
organized retail segment because 83% said so. As well Adani’s is into the Second
position in the market with 78% customers’ view.

Jodhpur:-

100 3
90 15
80
70
60 95
50 95
40 83
30
20
0
10
13
0 3
Rank-1 Rank-2 Rank-3
Big bazaar Adani’s hyper/super market Star India Bazaar Other
 After checking all the parameters, customers said that Star India Bazaar is
Numero Uno in the Jodhpur Area. While, Big Bazaar and Adani’s is on 2nd and 3rd rank
respectively.

Vastrapur:-

100 0 0
8
90
48
80 44
70
60
72
50 22
40 30
30 27
20
10 26 20
13
0
Rank-1 Rank-2 Rank-3

Big bazaar Adani’s hyper/super market Star India Bazaar Other

On the basis of their shopping experience, the percentage of people who gave
first rank to star bazaar is higher than the people of adani’s, while most of the people
who gave second rank to adani’s supermarket. The people who gave first rank to
adani’s, they live around the superstore. The respondents who gave third rank to big
bazaar are most and they gave last preference to other like kirana store and other
show rooms.

6) Which SM/HM do you think has the best of the followings?

Memnagar: - based on parameters

 Accessible location
Best product quality

0%
0%
35% 39% 35% 35%

30%
26%

Wide product range

Variety

0%
0%
39% 41% 35% 34%

31%
20%

Big bazaar Star India Adani’s SM/HM Other

Service quality Price

0%
0%
33% 34%
36% 36%

28%
33%
 Attractive Fun for shoppers
schemes

0%
0%
34% 38%
32%
38%

28%

30% Big bazaar Star India Adani’s SM/HM Other

With 39% people feel that Big Bazaar has best accessible location, while 35%
feel that Adani’s has good location. As far as product quality and varieties are
concerned, people feel Big Bazaar and Adani’s dominating the market. Big Bazaar is
dominating the market when it comes to wide product range, and Adani’s is on second
position.Service quality and price is almost equal at all supermarkets. Big Bazaar is
offering good schemes and people have fun over there.

Memnagar: - based on Super/Hyper market

Big bazaar Star India

12% 10%
13% 12% 7%
12% 13%
13% 13%

12% 16%
14% 14%
15%
12% 12%
 Adani’s SM/HM

13% 12%
13% 12%

14% 13%
10% 13%

Accessible location Wide product range Best product quality

Variety Service quality Price
Attractive schemes Fun for shoppers

Customers prefer Big Bazaar because of Price, Accessible Location, and

attractive Schemes. At Star Bazaar, they are getting Service Quality, Price, Variety.
At Adani’s, they are getting Price, Accessible Location.

Jodhpur: - based on parameters

Accessible Best product

location quality

0%
0% 17%
32% 33%

41%

35%
42%

Variety
Wide product
range
0%
20%

42%
0%
30%
36%

38%

Big bazaar Star India Adani’s SM/HM Other

34%
 Service Attractive
quality schemes

0% 0%
23%
33% 31%
39%

36% 38%

Price Fun for

shoppers

0%
27%
37% 0%
25%
38%

36% 37%

Big bazaar Star India Adani’s SM/HM Other

Adani’s has accessible location after Star Bazaar. They are also offering wide
quality products, but having fewer varieties in each segment. Service, Price and
Attractive Schemes is what, where Adani’s are lacking

Jodhpur: - based on Super/Hyper market

Big bazaar
Star India

14% 6% 13% 14%

13%
13% 11%
14%

12% 12% 12%

12% 13%
14%
16%
11%
 Adani’s SM/HM

11% 17%
10%
13%

12%

14% 14%
9%

Accessible location Wide product range Best product quality

Variety Service quality Price
Attractive schemes Fun for shoppers

]
Star India Bazaar is on Number 1, because of accessible location, attractive
schemes and fun for shoppers. At the same time Big Bazaar is having more variety
then others. While at Adani they are best suitable for neighborhood store because it
has highest percentage at accessible location and also for service Quality.

Vastrapur: - based on parameters

Accessible
location
Best product
quality

0%
34% 31% 0%
31% 33%

35%
36%

Wide product Variety

range

0%
31%
0% 35%
29%
36%

34%

Big bazaar Star India Adani’s SM/HM Other

35%
 Service Attractive
quality schemes

0%
0%
32% 33%
31%
37%

35%
32%

Price Fun for

shoppers

0%
33% 0%
33%
31% 36%

33%
34%

Big bazaar Star India Adani’s SM/HM Other

All these SH/SM have accessible location but star bazaar and adani’s are leader
compare with other for this area. Star India bazaar and big bazaar are aggressive in
wide product range. Most of the respondents prefer adani for best product quality and
service quality. Most of the responses are favoring star bazaar for variety of product.
They gave response for price factor on the basis of percentage of discount they get,
they gave same preference to the SH/SM, they believe that kirana store provide
cheaper than any other. Big bazaar and star bazaar are aggressive to offer different
schemes, while Adani’s get less response for attractive schemes; just because of lack
of awareness. The people of Vastrapur are enjoying shopping in shopping mall so they
prefer star bazaar most, second preference they gave to big bazaar.
Vastrapur: - based on Super/Hyper
market
Adani’s
SM/HM

13% 14% Star India

12% 11%

12% 13% 13%

13%
13% 12% 12% 12%

Accessible location Wide product range Best product quality

Variety Service quality Price 12% 13%
Attractive schemes Fun for shoppers 13% 12%
Big bazaar

15% 11%

12%
13%

12%
12%
12% 13%
Questioner for market survey

1) You regularly buy your grocery from

Near by kirana store_________

Adani’s supermarket_________
Adani’s hypermarket_________
Big Bazaar_________________
Star India Bazaar____________
Other (please specify )________

2) How many times do you visit the following SM/HM?

SM/HM WEEKLY FORTNIGHT 3 TIMES MONTHLY

IN A
MONTH
Big
bazaar
Star
Bazaar
Adani’s
Others

3) Which product do you regularly buy from SM/HM?

Drink/juice_________
Beverages__________
Biscuits____________
Confectionary_______
Grocery____________
Cosmetics__________
Toiletries__________
Utensils ___________
Garments __________
Toys ______________
Kitchen appliances____
Home appliances_____
4) Please mention the factor that you consider important while
shopping in SM/HM?
Factors Very Imp Average Not very Not at
imp imp all imp
Location 1 2 3 4 5

Products 1 2 3 4 5
available
Product 1 2 3 4 5
quality
Product 1 2 3 4 5
variety
Service 1 2 3 4 5
quality
Price 1 2 3 4 5

Schemes 1 2 3 4 5

Offered 1 2 3 4 5

Ease of 1 2 3 4 5
shopping
Added 1 2 3 4 5
service
(like
home
delivery)

5) Please rank following SM/HM on overall parameters

Big bazaar _______________

Star India bazaar _________
Adani’s hypermarket/super market__________
Other (please specify) ______________

6) Which superstore /hyper market do you think has the best of the
followings?

Super Big Star Adani’s Other (please

market bazaar India SM/HM specify)
Accessible
location

78
Wide
product
range
Best
product
quality
Variety

Service
quality

Price

Attractive
schemes
Fun for
shoppers

79