Growth of retail marketing in India

A Project Report
Under the guidance of

Prof . Poonam Arora

Submitted By

Santosh Kumar Gouda Debasish Saha

Reg. No.520927549 Reg. No.520927157

In partial fulfillment of the requirement

For the award of the degree
Of
MBA
In
Marketing

March 2011

 
 
 
 
 
 
 
 
 
 

ACKNOWLEDGEMENT

We are very much Thankful to our Prof. Poonam Arora ( Project

guide) for giving opportunity and his guidance help us out through
preparing this report. He has provided us a valuable suggestions and
excellence guidance about this project which proved very helpful to us to
utilize Theoretical knowledge in Practical knowledge.
I am also thankful to my friends, to all known & unknown individuals
who has given me their consecutive advice, educative suggestion,
encouragement, co-operation & motivation to prepare these report.
Last but not the least I would like to thank God- The Almighty for
rendering all his blessings on me, which has helped me to achieve
success in whatever I have pursued in life and wish to continue doing so
in the future.

Santosh kumar Gouda Debasish Saha

Reg.No-520927549 Reg.No-520927157

 
 
 
 
 
 
 
 
 
 

BONAFIDE CERTIFICATE

Certified that this project report titled “Growth of retail market

in India, its working requirement & its impact on Indian Retail
Market is the bonafide work of “ Santosh kumar Gouda &
Debasis Saha” who carried out the project work under my
supervision.

HEAD OF THE DEPARTMENT PROJECT GUIDE

Prof. B. N.Mehta Prof. Poonam Arora.

Signature Signature

IBMR Business School IBMR Business School

Near Asia School Near Asia School

Drive-in-Road Drive-in-Road

Ahmedabad-380054 Ahmedabad-380054

 
 
 
 
 
 
 
 
 
 

EXAMINER’S CERTIFICATE

The project report on

“Growth of Retail Market in India”

By

Debasish Saha

Reg. No-520927157

And

Santosh Kumar Gouda

Reg. No-520927549

Is approved and acceptable in quality and form.

Internal Examiner External Examiner

Name Name

Signature Signature

 
 
 
 
 
 
 
 
 
 

EXECUTIVE SUMMARY

The retail sector in Indi is witnessing a huge revamping exercise as

traditional markets make way for new formats such as departmental
stores, hypermarkets, supermarkets and specialty stores. Western-style
malls have begun appearing in metros and second-rung cities alike
introducing the Indian consumer to a shopping experience like never
before.
The sector is at an inflexion point where the growth of organised retailing
and growth in the consumption by the Indian population is going to take
a higher growth trajectory. The Indian population is witnessing a
significant change in its demographics. Organised retail is on all time
high in India. The growth is boosted by various factors such as
availability of professional practices, media proliferation, various brands
which are gaining value thereby enhancing industry growth, availability
of various funding options, regulations like VAT implementation to make
processes simple, sea change in demographics of country and
international exposure.
This report will be useful to entrepreneurs interested in getting insights of
Retail industry for doing direct and indirect business in the sector,
management consultants, banks evaluating retail sector proposals,
investors who are interested in this sunrise sector, retail professionals for
getting larger picture of the sector. Last but not the least this report can
also be useful for educational institutions imparting courses in retail.

 
 
 
 
 
 
 
 
 
 

INDEX
 

SR.NO  TITLE  PAGE NO

Chap-1. Introduction 1
A. Objective of the study 2

B. Retailing 3
B.1. Importance of retailing 5
B.2.Tradition retail in India 6
B.3.Quick facts of Indian retail 8
B.4.Industry analysis of Indian 9
Retail sector
B.5.Present Indian retail 11
scenario

Chap-2. A.Unorganized retail in India 12

A.1.Cause of low productivity 13
A.2.Low productivity but still 14
successful

B. Organized retail in India 18

C. Authorized vs unauthorized 22
retailing

D. Development of retail 25

E. Classification of Indian retail sector 30

F. Investment policy and initiatives 32

F.1.FDI policy of retail sector 33
F.2.Business models for entry in
Indian market

 
 
 
 
 
 
 
 
 
 

G. Major types of retail store 34

G.1.Instore retailing 35
G.2.Non store retailing 42
G.3.Franchising 47

H. Comparative advantages with 48

special reference to physical facilities

I. Key players in Indian retail market 50

J. Future trends 66

K. Expected growth of retail sales 70

L. Growth of Indian retail 2010 73

M. Opportunities and challenges 74

M.1.Investment opportunities 74
M.2.Potential of Indian retail 75
sector
M.3.Challenges of retailing in 77
India 
Chap-3 A.Comparative analysis of growth of 80
Big Bazaar and Reliance Mart

B. Research methodology 88
B.1.CRM policy of Reliance 88
Mart 89
B.2.CRM policy of Big Bazaar 100
B.3.Customer point of view

C. Limitation 106

D. Conclusion  107
Chap-4 Bibliography 108

 
 
 
 
 
 
 
 
 
 

LIST OF CHARTS AND TABLE

SL.NO TITLE PG.NO

Fig.1 Unorganized retail sector wise breakup 16
Fig.2 Growth of unorganized retail sector in India 17
2010
Fig.3 Organized Retailing : sector wish break up 19
Fig.4 Sector wish CAGR growth: organized 20
retailing
Fig.5 Growth of Retail sector in India 21
Fig.6 Comparative analysis of growth of Big
bazaar and Reliance Mart of 2010
6.a. Footwear 80
6.b.Clothing 81
6.c.Book 82
6.d.Jewllery 83
6.e. Durable 84
6.f. Home furnishing 85
Fig.7 Graphical representation of growth 87
Fig.8 Computation of growth increase of 87
different segments
Fig.9 Costumer point of view
9.a.Sales persons assistance 100
9.b.Expectation fulfillment 101
9.c.Discounts and offers 102
9.d.Product management 103
9.e. Accessibility 104
9.f. Preference 105
Table.1 Comparison between growth of Big 86
Bazaar and Reliance Mart 2010