VISHAL MEGA MART(RETAIL)

INTRODUCTION OF INDIAN RETAIL INDUSTRIES:

In the background of high consumerism and income of the urban consumers, in recent year there
are a number of companies have expressed their interest towards retail sector outlets. As a result
numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big
bazaar, Vishal Mega Mart, Reliance Fresh are the best known examples of retail sector outlets in
India.
Retailing is the interface between the producer and the individual consumer buying for personal
consumption. This excludes direct interface between the manufacturer and institutional buyers
such as the government and other bulk customers. A retailer is one who stocks the producers
goods and is involved in the act of selling it to the individual consumer, at a margin of profit. As
such, retailing is the last link that connects the individual consumer with the manufacturing and
distribution chain. Some of the key features of retailing include:

Selling directly to customers with out having any intermediaries

Selling in smaller units / quantities, breaking the bulk
Present in neighborhood or in the location which is quite convenient to the customers.
Very high in numbers
Recognized by their service levels
Fitting any size and or location

It is assumed that due to the entry of a number of retail outlets in the urban and semi urban areas,
the mindset of the existing customers have undergone drastic changes. Besides it is also reported
that the traditional retailing such an age old Grocery shops have directly faced competition with
the organized retailing sector. In some parts of the country, it is reported that the traditional
retails are resisting the entry of organized shopping malls. For instance the traditional retails of
Bhubaneswar with the active support of the consumers at large didnt allow reliance Fresh to
start outlet initially.
The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per cent of
the countrys GDP and around 8 per cent of the employment. India has themost unorganized retail
market in the world. Most retailers of the unorganized retailmarket have their shop in the front
and house at the back. The Retail Industry in India istoday amongst the fastest growing industries
with several players entering the market.Currently, the organized retail sector accounts for only 2

per cent indicating a huge potential market opportunity. India is being seen as most attractive
market by retailinvestors from all over the world. Retail is clearly the sector that is poised to
show thehighest growth in the next five years. The sector i s set for a revolution, as both
the present players and new entrants are gearing up to explore the market. The present size of the
organized retailing sector is approximately 3% and is expected to grow to 25-30% bythe year
2010. There are about 300 new malls, 1500 supermarkets and 325 departmentalstores currently
under construction. Many players are coming up with huge investments,due to which the present
12 million mom-and-pop shops and kirana stores fear losingtheir business. Most predictions say
that the sector might reach to US$ 400-600 billion bythe year 2010.Global retail giants such as
Wal-Mart, Tesco, Germany's Metro AG and many others areready to enter the retail markets. The
rising
demands
of
branded
products
and
increase
in purchasing power have lured these companies to enter the market. Modern retaildevelopment
in India is focused on the cities like Mumbai, Pune, Ahmedabad, Delhi andthe National Capital
Region, Chennai, Banglore, Hyderabad, Kolkata. The leading Indianretailers are Bata India Ltd,
Big Bazaar, Crossword, Vishal Mega Mart., Food Bazaar,Globus Stores Pvt. Ltd., Liberty shoes
Ltd., Music World Entertainment Ltd., PantaloonRetail India Ltd., Shoppers Stop, Subhiksha,
Titan Industries etc

RECENT TRENDS

Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
India is rated the fifth most attractive emerging retail market: a potential goldmine.
Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade) makes
up 3 percent or US$ 6.4 billion
As per a report by KPMG the annual growth of department stores is estimated at 24%
Ranked second in a Global Retail Development Index of 30 developing countries drawn
up by AT Kearney.

RETAILING IN INDIA: THE PRESENT SCENARIO

The present value of the Indian retail market is estimated by the India Retail Report to be
around Rs. 12,00,000 crore($270 billion) and the annual growth rate is 5.7 percent. Retail
market for food and grocery with a worth of Rs. 7, 43,900 crore is the largest of the different
types of retail industries present in India. Furthermore around 15 million retail outlets help
India win the crown of having the highest retail outlet density in the world. The contribution
of retail sector to GDP has been manifested below:

Country Retail Sector's share

in GDP (in %)
India 10
USA 10
China 8
Brazil 6
As can be clearly seen, retailing in India is superior to those of its contenders. Retail sector is
a sunrise industry in India and the prospect for growth is simply huge. There are many factors
that have stimulated the rise of the shopping centers and multiplex-malls in a jiffy. Some of
them can be listed as follows:

 RISE IN THE PURCHASING POWER OF INDIANSThe rise in the per capita income in the last few years has been magnificent. This has led to the
generation of insatiable wants of the upper and middle class. The demand of new as well as
second hand durables has risen throughout the country thus providing the incentive for taking up
retailing.

FAVORABLE TO FARMERS- retailing has helped in removing the middlemen and has thus
enhanced the remuneration to farmers. This is a new revolution in the agricultural
sector in India and will go a long way in amending the condition of agriculture, a
major concern among policy makers.

USE OF CREDIT- a typical Indian is most conversant with using credit cards than carrying
money. These have led to a shift of the consumer base towards supermarkets and
make the payments in the form of credit.

COMFORTABLE ATMOSPHERE- a visit to a retail store appears to be more soothing for the
generation-Y. People and kids prefer to shop in an air conditioned a tech savvy
manner. The retail industry is the second largest employer in India. It currently employs about
7 percent of the total labor force in India. Finance Minister P. Chidambaram's recent
statement salaries ought not to be legislated is a welcome move as most of the
organized retail is in private hands. However only about 4.6% of the total retail trade
is in organized sector. It generates about Rs.55, 000 crore ($12.4 billion). The major
and minor players desperately need to work hard in this direction so that next time the
figures look more decent. The government must also make an attempt to ameliorate
the situation as political instability and infrastructure namely power and roads are the
major roadblocks in the path of smooth functioning of the market.

 COMPONENTS OF RETAIL SECTOR

The major components of the retail sector are:

Food and Grocery, Fast Moving Consumer Goods (FMCGs), Consumer Durables, Apparel,
Footwear and leather, Watches, Jewellery, and Health and Beauty
The anatomy of the retail market has shown that the clothing and textiles constitutes 39 per
cent of the organised retail pie, followed by food and grocery, which accounts for 11 percent
of the total retail market.

However, according to the survey conducted by KPMG for Federation of Indian Chamber of
Commerce and Industry (FICCI), among these, the food and grocery is expected to witness
the fastest growth followed by clothing as the second-fastest growing segment.

In the background of high consumerism and income of the urban consumers, in recent year, a
number of companies have expressed their interest towards retail sector outlets. As a result,
numbers of shopping malls have started their operations in metro and urban areas. Pantaloon, big
bazaar, Vishal Mega Mart, Reliance Fresh are the best known examples of retail sector outlets in

India. Retailing is the interface between the producer and the individual consumer buying for
personal consumption. This excludes direct interface between the manufacturer and institutional
buyers such as the government and other bulk customers. A retailer is one who stocks the
producers goods and is involved in the act of selling it to the individual consumer, at a margin of
profit. As such, retailing is the last link that connects the individual consumer with the
manufacturing and distribution chain. Some of the key features of retailing include: -Selling
directly to customers without having any intermediaries -Selling in smaller units / quantities,
breaking the bulk -Present in neighborhood or in the location which is quite convenient to the
customers. -Very high in numbers -Recognized by their service levels -Fitting any size and or
location The objective of this article is to study the Marketing Mix and Shareholding pattern of
Vishal Mega-Mart, a renowned name in Retail Industry of India. Keywords: Retail,
Consumerism, Manufacturing, Individual, Selling, Marketing-Mix, Shareholding. 1. Introduction
Last few years India has witnesses radical changes in the developing of shopping centers leaving
behind the traditional high street shops. Indian real estate developers picked up models from the
west, changed them to suit the Indian context to arrive at a rapidly growing number of homegrown malls. Indigenous factors such as availability of physical space, population densities and
city planning and socio economic parameters have contributed to this mall surge in the Indian
www.sciedu.ca/jms Journal of Management and Strategy Vol. 1, No. 1; December 2010
Published by Sciedu Press 111 market. Although the primary purpose of a mall is to cater to the
retail requirements of its clientele; entertainment and food courts are sometimes attached to
provide a complete shopping, eating and entertainment experience. In India, the first operational
mall was opened in Mumbai in 1999. In the same year, Ansal Plaza was started in New Delhi.
Over the past six years, those first malls have grown into 6 million square feet of operational
shopping mall space in Mumbai, Delhi, Bangalore and Hyderabad. Big developers like Unitech,
DLF, TDI, Ansals. Omaxe and Parsvanath, Aerens and BPTP have already realized the potential
of these malls. To offer something new to the customers, developers have been experimenting
with different retail formats like specialty stores, hypermarket, convenience stores and
supermarket. New malls are coming up in tier II and tier III cities. Compared to the large cities,
organized retailing in small towns is growing at a staggering rate of 50 to 55 per cent. More than
700 new malls are being planned all over India. In this competitive environment, Vishal Mega
Mart has
also
created a
space
and image
in the
mind of
customer

 GROWTH OF RETAIL
SECTOR:The following are the reasons
for growth of retail sector in IndiaIncrease in disposableincome of
consumers, Increase in consuming
desire, Low share of organized
retailing.Purchasing power of Indian
urban consumer is growing and
branded merchandise incategories like
Apparels, Accessories, Food, and even
Jewellery, are slowly
becominglifestyle products. Retailers are taking benefit of this growth and accordingly are
aimingto expand. Indian retail is expanding at a fast pace. India's retail industry, which
iscurrently valued at nearly $350 billion, is expected to double in size by 2015. The IndianRetail
Industry is gradually moving ahead towards becoming the next boom industry.Modern LargeFormat retail, efficiently connects the producers and the consumers and ishelpful to both in the
long run. In India there is a huge wastage of fresh fruits
andvegetables. In this scenario, the Large-Format Retail provides all importantinfrastructures to
carry the farm produce to the consumers with lesser wastage. In thisway the farmers get better
returns and the consumer better quality and price

GROWTH OF RETAIL IN INDIA:Organized Share of retail sector is expected to increase to 8-9 percent in 2010-11
from 6 percent in 2008.
The Indian retailing market, it is a very fast growing sector. One reason that can be attributed to this
rapid entry of the foreign retail giants is that the Western Countries have reached a point of saturation in
their retail sector. Another reason as already mentioned earlier is the change in the tastes and preferences
or the psychographic of the consumers that is bent in their favour.
Although the retail sector in India contributes to about 10% in the GDP, it is the most underdeveloped
sector in terms of investments that are made in this sector. The organized sector is growing at 25-30 %
per annum. Developed market in US, Taiwan, Malaysia is still a dream to the Indian retail market. They
have registered a growth of 50% per annum.

GROWTH DRIVERS IN INDIA FOR RETAIL SECTOR

Liberalization of the Indian economy

Increase in spending Percapita Income.

Rising incomes and improvements in infrastructure are enlarging consumer markets and
accelerating the convergence of consumer tastes.

Introduction of dual income families also helps in the growth of retail sector.

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

Consumer preference for shopping in new environs.

Technology-savvy/Youth population.

Foreign companies' attraction to India is the billion-plus population.

Existing Indian middle classes with an increased purchasing power

Rise of upcoming business sectors like the IT and engineering firms

Change in the taste and attitude of the Indians

Effect of globalization

Heavy influx of FDI in the retail sectors in India.

FUTURE OF RETAIL IN INDIA:India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$
353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer
base, there will also be opportunities in India's tier II and III cities. The greater availability of personal
credit and a growing vehicle population to improve mobility also contribute to a trend towards annual
retail sales growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo
enormous growth over the forecast period. BMI further predicts that sales through MGR outlets will
increase by 154 per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic,
rapid shift from small independent retailers to large, modern outlets. consumer electronic sales at US$
29.86 billion in 2010, with over the counter pharmaceutical sales at US$ 3.28 billion. The latter is
predicted to be the fastest growing retail sub-sector and BMI forecasts that sales will reach US$ 6.18
billion by 2014, an increase of 88.5 per cent.

China and India are predicted to account for almost 91 per cent of regional retail sales in 2010 and by
2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail
sales for 2010-2014 is estimated by BMI at 72.2 per cent, an annual average of 14 per cent. India should
experience the most rapid rate of growth in the region, followed by China. For India, its forecast market
share of 13.9 per cent in 2010 is expected to increase to 14.3 per cent by 2014.

CHALLENGES OF RETAILING IN INDIA

The first challenge facing the organized retail sector is the competition from unorganized sector.

In retail sector, Automatic approval is not allowed for foreign investment.

Taxation, which favors small retail businesses.

Developed supply chain and integrated IT management is absent in retail sector.

Lack of trained work force.

Low skill level for retailing management.

Intrinsic complexity of retailing- rapid price changes, threat of product obsolescence and low
margins.
Organized retail sector has to pay huge taxes, which is negligible for small retail business.

ORGANIZED RETAIL IN INDIA:The Indian organized retail industry is valued at about $300 billion and is expected to grow to $427
billion in 2010 and $637 billion in 2015. Retail Market India today is the second fastest growing
economy of the world after China. Indian economy will grow larger than Britain's by 2022, Japan by
2032 and by 2050 will become the second largest economy of the world after China. Indian market has
become the most lucrative market for retail investment in the world. Some of the factors which have
contributed to the growth of organized retail in India are: increase in the purchasing power of Indians,
rapid urbanization, increase in the number of working women, large number of working young
population.
Today people look for better quality product at cheap rate, better service, better ambience for shopping
and better shopping experience. Organized retail promises to provide all these. The Industry The various
formats of organized retail are: Hypermarkets: They store products of multiple brands comprising food
items and non-food items. Supermarkets: These are self service stores selling food and personal care
products. E.g.: Departmental stores: Retails branded goods in non-food categories. E.g.: Shoppers Stop.

Specialty Chains: These stores focus on a branded product or a product category. E.g.: Bata
Convenience stores: These are small self service outlet located in crowded urban area. Malls: A huge
enclosures which has different retail formats. e.g.: Nucleus Key players in organized retail are:
Pantaloon Retail: It was started by Kishore Biyani- India's largest retailer. The various formats of
pantaloon retail are: Pantaloons, Big Bazaar, Food Bazaar, Central etc. RPG Retail: Its various formats
are: Food World, Music World, Health & Glow, Spencer's Tata Retail (known as TRENT): Its various
formats are: CromaWestsideStar India Bazaar K Raheja Corp. Group: Shoppers' Stop, Hyper city,
Crossword, InOrbit Mall Reliance Retail Job Opportunities: Retail accounts for 8% employment in the
country. In the next 2 years the sector is set to provide 2.5 lakh job opportunities.

UNORGANIZED RETAIL IN INDIA

Unorganized retailing is characterized by a distorted real-estate market, poor infrastructure and
inefficient upstream processes, lack of modern technology, inadequate funding and absence of skilled
manpower. Therefore, there is a need to promote organized retailing.
Facing stiff competition from corporate retail outlets, hawkers and small shopkeepers are not only
witnessing decline in business but also increased harassment and eviction drives. The 400 hawkers and
100 shopkeepers surveyed across five cities by India FDI Watch and Action Aid, about 85% of them said
their business was on a slide. Competition (from corporate retail outlet) was the number one reason cited
by the respondents for the decline of their business.
Shopkeepers have increased their work hours to compete with big retailers. About 60% of hawkers and
64% of shopkeepers are working 10-12 hours per day, while 24% worked for 13 hours or more.
Incidents of extortion and eviction have also increased because of the entry of big retailers, the study
pointed out. 45% of those surveyed said the levels of harassment and/or evictions had increased
recently.6%said it was a cause of decline in business.
India FDI Watch also slammed a think-tanks report that says the organized and unorganized sectors can
co-exist. Just because organized retail might grow nationwide does not mean that it will grow and coexist with unorganized retail especially given the anti-competitive practices that corporate retailers are
already employing.

VISHAL RETAIL PVT. LTD. HISTORY

Future is thinking beyond horizon & in order to keep its

pace with the modern retail, Vishal Retail Limited is
spreading its wings. Instead of resting on its laurels the
Group are busy identifying new avenues of growth by
venturing in other formats like cash & carry, convenios as
well as specialty stores and inspiring local retailers to
grow along with the big names. The group has tied up
with HPCL to open corner stores at their petrol pumps
and in addition to the above Vishal has come up with an
institute to train manpower for the service industry.
As of December 1, 2010, it operates 172 retail stores, including two stores which are operated by
their franchisees. These 172 stores are spread over about 24,00,000square feet and are located in
24 states across India. In its efforts to strengthen thier supply chain, it has set up seven regional
distributions centres and an apparel manufacturing plant.
Today Vishal Retail Limited, Flagship Company of Vishal Group, engaged in Hyper Market
stores with an average area of 25,000 to 30,000 sq. ft.
According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the group owes its origin
to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling readymade garments. In tune
with the pulse of the market, he envisioned a mega store that would sell garments at prices none
other could match. . The first big store opened in Calcutta's Esplanade area in 1997, under the
banner of Vishal Garments. He was involved in all the aspects of the business: right from
sourcing the garments to interacting with customers. And this led to his greatest finding The
Vishal Group.
After identifying the immense market in fashion garment for the masses, He moved to
Delhi in 2001 and opened his first store in Delhis Rajouri
Garden by the name of Vishal Mega Mart (The jewel in Vishal Groups crown) and then there
was no looking back for Mr. Ram Chandra Agarwal. At present, in addition to garments, Vishal
Mega Mart stores retail the entire range of household products, FMCG and electronic goods.
Vishal's prices are roughly 15 to 20 per cent less than other mass market garment labels.
Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited believes that the shopping habits of
Indians are changing due to their growing disposable income, higher aspirations, relative
increase in the younger population, and the change in attitudes towards shopping. The emphasis
has changed from price consideration to design, quality and trendy. Age is also a major factor
that affects the spending decisions of an individual. Consumer spending is an important factor
that affects the economic growth and development in a country. As a trend, consumer is more

educated. He has access to all reforms taking place through various arrays of communication. He
is becoming a value shopper everyday.
Keeping this in mind, the group is now looking for franchisees to join hands with Vishal
and grow under common banner. This partnership will help small retailers to survive the
onslaught of organized retail as it will enhance their competitiveness. Small stores can avail of
the benefits on account of the economies of scale, a key advantage for big retailers.
As per the plans, Vishal Retail will completely take over the supply chain of its franchisees
and provide them with technology, new practices, visual merchandising skill and special
promotional schemes, besides its brand and customer base.
Some of the Franchisee exclusive business categories are:

Mens Fashion
Ladies and Kids
Footwear
Toys and Games
Home General
Convenience (FMCG)
CDIT
Watches
Mobile

It follows the concept of value retail in India. In other words, their business approach is to sell
quality goods at reasonable prices by either manufacturing themself or directly procuring from
manufacturers (primarily from small and medium size vendors and manufacturers). It endeavour
to facilitate one-stop-shop convenience for their customers and to cater to the needs of the entire
family. It
believes this concept has helped them grow to thier current size within a short time frame of their
years. Mr. Ram Chandra Agarwal has been ranked as the 28th most pitiful person in the Indian
retail industry.
In order to reduce costs and take advantage of economies of scale it has embarked on backward
integration of their products. Thier apparel manufacturing plant is located at Gurgaon, Haryana.
For ensuring efficiency in supply chain, it has set up seven regional distribution centres located
around Kolkata, Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana
(Punjab), Gurgaon (Haryana) and Delhi. Further, it has focussed on developing a cost and time
efficient distribution and logistics network, which currently comprises seven distribution centers
and a fleet of trucks for transportation.

Retailing is an engine for taking merchandise to the end-users. There is a lot of

opportunity in this sector for us since demand of the potential consumers are not being met under
the existing facilities. Therein lies the road to success. says Mr. R C Agarwal

THE FOUNDERS:-

Mr. Ramchandra Agarwal

Mrs. Uma Agarwal

VISION STATEMANT:
We share the vision and belief that our customers and stakeholders shall be served only by
creating and executing future scenarios in the consumption space leading to economic
development

MISSION STATEMENT:
We shall deliver Everything, everywhere, everytime for every Indian Consumer in nthe most
profitable manner.

 VRPLs BUSINESS:VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, VRPL acquired
the manufacturing facilities from Vishal Fashions Private Limited and M/s Vishal Apparels.
Subsequently, with evolution of retail industry in India and change in consumer aspirations,
VRPL diversified their portfolio of offerings to include other retail goods. Currently, VRPL sell
ready-made apparels and a wide range of household merchandise and other consumer goods such
as footwear, toys, watches, toiletries, grocery items, sports items, crockery, home furnishing,
beverages, drinks, gift and novelties.
VRPL follow the concept of value retail in India. In other words, VRPLs business approach is to
sell quality goods at reasonable prices by either manufacturing themselves or directly procuring
from manufacturers (primarily from small and medium size vendors and manufacturers). VRPL
endeavor to facilitate one-stop-shop convenience for their customers and to cater to the needs of
the entire family. VRPL believe this concept has helped them grow to their current size within a
short time frame of 10 years.
In order to reduce costs and take advantage of economies of scale VRPL have embarked
on backward integration of their products. VRPLs apparel manufacturing plant is located at
Gurgaon, Haryana. For ensuring efficiency in supply chain, VRPL have set up seven regional
distribution centers located around Kolkata (West Bengal), Thane (Maharashtra), Jaipur
(Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi.
Further, VRPL have focused on developing a cost and time efficient distribution and logistics
network, which currently comprises seven distribution centers and a fleet of trucks for
transportation.

MARKETING-MIX OF VISHAL MEGAMart 7P Marketing Mix is more useful for services industries and knowledge intensive industries.
Successful marketing depends on number of key issues. The seven keys issues are explained as:
PRODUCT
VMM offers a wide range of products which range from apparels, food, farm products, furniture, child
care, toys, etc. Products of all the major brands are available at VMM. Also, there are many in house

brands promoted by VMM. Vishal Mega-mart sold over 300,000 pairs of jeans, 50,000 DVD-players
and 25,000 microwave-ovens. In all, the fashion, electronics and travel segments made up about 70% of
sales. Last year, these categories made up only about 60%.

1. IN-HOUSE MANUFACTURING HELP SUSTAIN MARGIN

Vishal Retail operates two manufacturing facilities with a capacity of 1.5 mn pieces each. The Gurgaon
manufacturing facility began operations in 2004 and currently operates at 80% utilization. The Dehradun
facility, currently operating at 40% utilization, commenced operations in September, 2007. The company
also makes FMCG products, like napkins, farsans, ketch-ups, etc., through a bakery in Gurgaon. The inhouse manufactured products enable improvement in operating margin. In FY 06, the products
manufactured by company contributed 9.7% to sales. This contribution is decreasing every year due to
inclusion of other categories in the product mix. We expect the share of manufactured products to reduce
further due to further addition in categories going forward.
2. CHANGING PRODUCT MIX
Vishal Retail commenced operations with the retailing of readymade apparels for kids, women and men.
Gradually, it expanded its product portfolio to include non-apparels and FMCG products. With over
100,000 SKUs, apparel (63.2% in FY07) is the largest contributor to sales. However this mix is expected
to change with the increase in the variety of products. We expect the share of apparels to reduce to 50%
over the next two years. Consequently the share of non-apparels and FMCG collectively is expected to
increase to 50%. The change in the product mix will enable the company to reduce seasonality, attract
more footfalls and maintain margins.
PRICE
They work on the model of economics of scale. There pricing objective is to get "Maximum Market
Share". The various techniques used at Vishal Mega-mart are: -

Value Pricing (EDLP - Every Day Low Pricing): Vishal Mega-mart promises consumers the
lowest available price without coupon clipping, waiting for discount promotions, or comparison
shopping.
-Promotional Pricing: Vishal Mega-mart offers financing at low interest rate. The concept of
psychological discounting (Rs. 99, Rs. 49, etc.) is used as promotional tool. Vishal Mega-mart
also caters on Special Event Pricing (Close to Diwali, Holi, Raksha- Bandhan and Durga Pooja).
-Differentiated Pricing: Time pricing i.e. difference in rate based on peak and non-peak hours
or days of shopping is also a pricing technique used in Indian retail, which is aggressively used
by Vishal Mega-mart.
Bundling: Selling combo-packs and offering discount to customers. The combo-packs add value
to customer.

 PLACE
Vishal Mega-mart stores are located in 129 cities with 172 outlets. VMM has presence in almost
all the major Indian cities. They are aggressive on their expansion plans
Vishal Retail targets cities with urban population of 1 million people or above or can be
classified as Tier-2 and Tier-3 cities. In Tier-1 cities, the company opens retail outlets on the
outskirts, rather than the prime area. Its target market includes people with middle income and
lower income levels. This enables the company to overcome competition to some extent due to
its first mover advantage (as competitors have relatively less space in tier-2 and tier-3 cities) and
helps to lower rental cost. As at 3Q FY08, 78% of the companys 82 stores are in Tier-2 and Tier3 cities . The company plans to maintain the ratio of Tier-2 and Tier-3 to Tier-1 cities at 80:20.
PROMOTION
Advertising has played a crucial role in building of the brand. VMM advertisements are seen in
print media, TV, Radio (FM) and road-side bill-boards.
Vishal Mega-mart started many new and innovative cross-sell and up-sell strategies in Indian
retail market. The various promotion techniques used at VMM include:
-5 Din Ki Maha Bachat
-2 din Ki Maha Loot
-Dhan-teras Dhamaal
-Great Savings
Vishal Mega Mart Gift Voucher Rs. 1000.
-Discount Offers At Various Festive occasions
-Grand Winter Sale 50% & 60% discount for 2 days
-Paise Bachao Aandolan 9 Din Ki Maha Loot
-Vishal Reward Plus: Consumers can make purchases at any store and accumulate points at
a central level. These points are redeemable at any of our stores.

-Cross category promotions are now catching up where discounts are being offered on
grocery purchases, redeemable against purchase of apparel and household products.

SWOT ANALYSIS OF VISHAL MEGA MART

OPPORTUNITIES:-

STRENGTHS

Demographic favour.

Potential for investment.

Rising disposable income

Location advantage.

Increase in number of people in earner

category.

Sectors with high growth potential.

Urbanization

Shopping convenience

Low labour cost of skilled ones.

Fastest growing format.

Falling real estate cost.
Retail franchising.
Poor inventory turns and stock availability
measures.

WEAKNESS:-

THREATS:-

Policy related issues

Political issues.

Lack of industry status for retail.

Social issues.

Numerous licence, permits and registration.

Inflation.

Requirement.

Nostalgia.

-farmer and retailer unfriendly APMC act.

Lack of differentiation among the malls that

are coming.

Limited consumer insight.

VISHAL MEGA MART PRODUCTS :PRODUCTS

FOODMART

Beverage
Cooked Indian
Cooked Chinese
Drinks
Fruits & Vegetables

FOOTWARE
Boys

Girls

Shoes

Slippers

Sandals

Sandals

Ladies

Mens

Shoes

Shoes

Slippers

Slippers

HOUSEHOLD
Acrylic Ware
Dinner Set
Glass Ware
Home Aids
Floor Wiper
Sanitary Brush
Cup
General Plastic Goods
Coffee Mug
Bucket
Lemon Set

Steel
Cake Server
Porcelain
Non Stick
Handi
Dosa Tawa
Cup & Saucer
Bone China
Soup Set
Dessert Set
etc.

LADIES ACCESSORIES
Personal Items
Cap(LCA)
Socks(Las)

Copper
Jug
Thermo Ware
Pressure Cooker
Cooker
Pressure Pan
Tiffin
Electrical App.
Chopper
Microwave Oven
Container

LIFESTYLE

Nail Polish
Necklace
Ring

Cosmetics
Lip Gloss

Time Zone
Ladies Wrist Watch
Mens Wrist Watch
Mens Accessories
Belts
Wallets

Opticals
Ladies Sun Glass
Mens Sun Glass
Electric & Electronics
Battery(ABT)
Calculator(EEC)

GARMENTS
MEN
Upper
Shirt Casual
Shirt Formal
Ethnic & Sports

Lower
Jeans(MP)
Cotton- Trouser(MPC)
Winter Wear

Night Suits

Suit(WMC)

T-Shirts

Blazer (WMB)

Dupatta

Windcheater

Sherwani

Jacket

LADIES
Upper

Lower

Kurta

Pants Jeans

Skirt Top

Capri

Ethnic

Winter Wear

Nighty

Jackets

Lancha

Stawl

Sharara

Blazer

Salwar Suit

Track Suit

Gifts & Novelties

Flower Vase
Key Chain
Perfume/Deo
Spray
Deo

BOYS
Lower Sets

Winter Wear

Jeans

Night Suit

Bermudas

Baba Suit

Blazer

Jacket

Upper

Ethnic

Shirt Formal

Kurta- Pyjama

T-Shirt

Sherwani

GIRLS
Lower
Hot Pant

Winter Wear
Hipster Set

Skirt

Jacket

Upper

Ethnic

Tops (GWT)
Frock (GFK)

Sharara
Lancha

INFANTS

Garments

Accessories

Hot Pant

Bed Sheet

Frock

Under Garments

Baba Suit

Socks

Winter Wear
Sweater
Pull Over

HOME FURNISHING
Drawing Room

Bedroom

Door Mat

Bed Sheet

Carpet

Pillows

Curtains

Pillow Cover

Kitchen

Bathroom

Apron

Bath Mats

Kitchen Napkin

Towel Gift Sets

SPORTS & FITNESS

Indoor games

Outdoor games

Basket Ball

Cricket Bat

T.T. Bat

Football

Boxing Kit

Lawn Tennis

Swimming Costumes

Tennis Racket

Water Ball

Tennis Ball

Fitness Equip.
Personal Gym

STATIONERY
School

Office

Paper Mart

Exam Board

Office File

Diary

Clay

Punching Machine

File

Party Stuff
Balloons
Ribbons

TOYS & GAMES

Soft Toys

Dolls

Cycle & Scooters

Musical Toys

Barbie Doll

Cycles

Non-Musical

Other Dolls

Scooters

Board Games

Infant Toys

Video Games

Wooden Blocks

Teether

T.V. Video

Puzzles

Swing Hand

TRAVEL ACCESSORIES
Luggages

Portfolio Bags

Suitcase

Shoulder- Bags

Game